Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 26, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | RESOURCE CAPITAL CORP. | ||
Entity Central Index Key | 1332551 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-know Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 134,079,374 | ||
Public Float | $741,905,398 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
ASSETS | ||||
Cash and cash equivalents | $79,905,000 | [1] | $262,270,000 | [1] |
Restricted cash | 122,138,000 | [1] | 63,309,000 | [1] |
Investment securities, trading | 20,786,000 | [1] | 11,558,000 | [1] |
Investment securities available-for-sale, pledged as collateral, at fair value | 197,800,000 | [1] | 162,608,000 | [1] |
Investment securities available-for-sale, at fair value | 77,920,000 | [1] | 52,598,000 | [1] |
Linked transactions, net at fair value | 15,367,000 | [1] | 30,066,000 | [1] |
Loans held for sale, at fair value | 111,736,000 | [1] | 21,916,000 | [1] |
Property available-for-sale | 180,000 | 25,346,000 | ||
Investment in real estate | 0 | [1] | 29,778,000 | [1] |
Loans, pledged as collateral and net of allowances of $4.6 million and $13.8 million | 1,925,980,000 | [1] | 1,369,526,000 | [1] |
Loans receivable–related party | 1,277,000 | [1] | 6,966,000 | [1] |
Investments in unconsolidated entities | 59,827,000 | [1] | 69,069,000 | [1] |
Derivatives, at fair value | 5,304,000 | [1] | 0 | [1] |
Interest receivable | 16,260,000 | [1] | 8,965,000 | [1] |
Deferred tax asset | 13,094,000 | [1] | 5,212,000 | [1] |
Principal paydown receivable | 40,920,000 | [1] | 6,821,000 | [1] |
Direct financing leases | 2,109,000 | [1] | 0 | [1] |
Intangible assets | 9,736,000 | [1] | 11,822,000 | [1] |
Prepaid expenses | 4,196,000 | [1] | 2,871,000 | [1] |
Other assets | 24,604,000 | [1] | 10,726,000 | [1] |
Total assets | 2,729,139,000 | [1] | 2,151,427,000 | [1] |
LIABILITIES | ||||
Borrowings | 1,716,871,000 | [2] | 1,319,810,000 | [2] |
Distribution payable | 30,592,000 | [2] | 27,023,000 | [2] |
Accrued interest expense | 2,123,000 | [2] | 1,693,000 | [2] |
Derivatives, at fair value | 8,476,000 | [2] | 10,586,000 | [2] |
Accrued tax liability | 9,219,000 | [2] | 1,629,000 | [2] |
Deferred tax liability | 460,000 | [2] | 4,112,000 | [2] |
Accounts payable and other liabilities | 9,287,000 | [2] | 12,650,000 | [2] |
Total liabilities | 1,777,028,000 | [2] | 1,377,503,000 | [2] |
EQUITY | ||||
Common stock, par value $0.001: 500,000,000 shares authorized; 132,975,177 and 127,918,927 shares issued and outstanding (including 2,023,639 and 3,112,595 unvested restricted shares) | 133,000 | 128,000 | ||
Additional paid-in capital | 1,245,245,000 | 1,042,480,000 | ||
Accumulated other comprehensive income (loss) | 6,043,000 | -14,043,000 | ||
Distributions in excess of earnings | -315,910,000 | -254,645,000 | ||
Total stockholders’ equity | 952,111,000 | 773,924,000 | ||
Non-controlling interests | 16,588,000 | 0 | ||
Total equity | 935,523,000 | 773,924,000 | ||
TOTAL LIABILITIES AND EQUITY | 2,729,139,000 | 2,151,427,000 | ||
Redeemable Preferred Stock Series A [Member] | ||||
EQUITY | ||||
Preferred stock, par value $0.001 | 1,000 | 1,000 | ||
Redeemable Preferred Stock Series B [Member] | ||||
EQUITY | ||||
Preferred stock, par value $0.001 | 6,000 | 3,000 | ||
Redeemable Preferred Stock Series C [Member] | ||||
EQUITY | ||||
Preferred stock, par value $0.001 | $5,000 | $0 | ||
[1] | December 31, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $25 $— Restricted cash$121,247 $61,372 Investments securities available-for-sale, pledged as collateral, at fair value119,203 105,846 Loans held for sale282 2,376Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,261,137 1,219,569 Interest receivable8,941 5,627 Prepaid expenses221 247 Principal paydown receivable25,767 6,821 Other assets(12) — Total assets of consolidated VIEs$1,536,811 $1,401,858 | |||
[2] | December 31, 2014 December 31, 2013Liabilities of consolidated VIEs included in the total liabilities above: Borrowings$1,046,494 $1,070,339 Accrued interest expense1,000 918 Derivatives, at fair value8,439 10,191 Unsettled loan purchases(529) — Accounts payable and other liabilities(386) 1,604 Total liabilities of consolidated VIEs$1,055,018 $1,083,052 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
ASSETS | ||||
Loans Receivable Allowance | $4,600,000 | $13,800,000 | ||
STOCKHOLDERS’ EQUITY | ||||
Common stock, par value (in dollars per share) | $0.00 | $0.00 | ||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | ||
Common stock, shares issued (in shares) | 132,975,177 | 127,918,927 | ||
Common stock, shares outstanding (in shares) | 132,975,177 | 127,918,927 | ||
Common stock, shares issued, non-vested restricted shares (in shares) | 2,023,639 | 3,112,595 | ||
Assets of consolidated Variable Interest Entities (VIEs) included in the total assets above: | ||||
Cash and cash equivalents | 25,000 | [1] | 0 | [1] |
Restricted cash | 121,247,000 | 61,372,000 | ||
Investments securities available-for-sale, pledged as collateral, at fair value | 119,203,000 | 105,846,000 | ||
Loans held for sale | 282,000 | 2,376,000 | ||
Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million | 1,261,137,000 | 1,219,569,000 | ||
Interest receivable | 8,941,000 | 5,627,000 | ||
Prepaid expenses | 221,000 | 247,000 | ||
Principal paydown receivable | 25,767,000 | 6,821,000 | ||
Other assets | -12,000 | 0 | ||
Total assets of consolidated VIEs | 1,536,811,000 | 1,401,858,000 | ||
Liabilities of consolidated VIEs included in the total liabilities above: | ||||
Borrowings | 1,046,494,000 | 1,070,339,000 | ||
Accrued interest expense | 1,000,000 | 918,000 | ||
Derivatives, at fair value | 8,439,000 | 10,191,000 | ||
Unsettled loan purchases | -529,000 | 0 | ||
Accounts payable and other liabilities | -386,000 | 1,604,000 | ||
Total liabilities of consolidated VIEs | 1,055,018,000 | 1,083,052,000 | ||
Variable interest entity, loans, pledged as collateral, allowance | $3,300,000 | $8,800,000 | ||
Redeemable Preferred Stock Series A [Member] | ||||
STOCKHOLDERS’ EQUITY | ||||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 | ||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | ||
Preferred stock, liquidation preference (in dollars per share) | $25 | |||
Preferred stock, coupon authorized (in hundredths) | 8.50% | |||
Preferred stock, shares issued (in shares) | 1,069,016 | 680,952 | ||
Preferred stock, shares outstanding (in shares) | 1,069,016 | 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 | |||
Preferred stock, coupon authorized (in hundredths) | 8.25% | |||
Preferred stock, shares issued (in shares) | 5,601,146 | 3,485,078 | ||
Preferred stock, shares outstanding (in shares) | 5,601,146 | 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 | |||
Preferred stock, coupon authorized (in hundredths) | 8.63% | |||
Preferred stock, shares issued (in shares) | 4,800,000 | |||
Preferred stock, shares outstanding (in shares) | 4,800,000 | |||
[1] | Includes $3.0 million available for reinvestment in certain of the securitizations. |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest income: | |||
Loans | $102,857 | $99,455 | $109,030 |
Securities | 17,265 | 14,309 | 14,296 |
Interest income − other | 6,785 | 4,212 | 10,004 |
Total interest income | 126,907 | 117,976 | 133,330 |
Interest expense | 45,473 | 61,010 | 42,792 |
Net interest income | 81,434 | 56,966 | 90,538 |
Rental income | 8,441 | 19,923 | 11,463 |
Dividend income | 186 | 273 | 69 |
Fee income | 9,385 | 5,821 | 7,068 |
Total revenues | 99,446 | 82,983 | 109,138 |
OPERATING EXPENSES | |||
Management fees − related party | 13,584 | 14,220 | 18,512 |
Equity compensation − related party | 6,566 | 10,472 | 4,636 |
Rental operating expense | 5,443 | 14,062 | 8,046 |
General and administrative - Corporate | 15,263 | 12,304 | 9,773 |
General and administrative - PCM | 19,598 | 2,203 | 0 |
Depreciation and amortization | 2,737 | 3,855 | 5,885 |
Income tax (benefit) expense | -2,212 | -1,041 | 14,602 |
Net impairment losses recognized in earnings | 0 | 863 | 180 |
Provision for loan losses | 1,804 | 3,020 | 16,818 |
Total operating expenses | 62,783 | 59,958 | 78,452 |
Net interest and other revenues less operating expenses | 36,663 | 23,025 | 30,686 |
OTHER INCOME (EXPENSE) | |||
Equity in earnings (losses) of unconsolidated subsidiaries | 4,767 | 949 | -2,709 |
Net realized gain on sales of investment securities available-for-sale and loans | 15,283 | 9,637 | 4,106 |
Net realized and unrealized (loss) gain on investment securities, trading | -2,818 | -324 | 12,435 |
Unrealized gain (loss) and net interest income on linked transactions, net | 7,850 | -3,841 | 728 |
(Loss) on reissuance/gain on extinguishment of debt | -4,442 | 0 | 16,699 |
Gain on sale of real estate | 6,127 | 16,616 | 0 |
Other (expense) income | -1,262 | 391 | 2,498 |
Total other revenue | 25,505 | 23,428 | 33,757 |
NET INCOME | 62,168 | 46,453 | 64,443 |
Net income allocable to non-controlling interest, net of taxes | -17,176 | -7,221 | -1,244 |
Net income allocable to non-controlling interest, net of taxes | -965 | 0 | 0 |
NET INCOME ALLOCABLE TO COMMON SHARES | $44,027 | $39,232 | $63,199 |
NET INCOME PER SHARE - BASIC (in dollars per share) | $0.34 | $0.33 | $0.71 |
NET INCOME PER SHARE - DILUTED (in dollars per shares) | $0.34 | $0.33 | $0.71 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC (in shares) | 128,031,064 | 118,478,672 | 88,410,272 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - DILUTED (in shares) | 129,259,386 | 120,038,973 | 89,284,488 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $62,168 | $46,453 | $64,443 |
Other comprehensive income: | |||
Reclassification adjustment for gains (losses) included in net income | 9,051 | -2,459 | 1,728 |
Unrealized gains on available-for-sale securities, net | 13,937 | 10,858 | 18,770 |
Reclassification adjustments associated with unrealized losses from interest rate hedges included in net income | 282 | 395 | 227 |
Unrealized gains (losses) on derivatives, net | 1,906 | 4,045 | -1,476 |
Foreign currency translation | -608 | 196 | 0 |
Total other comprehensive income | 24,568 | 13,035 | 19,249 |
Comprehensive income before allocation to non-controlling interests and preferred shares | 86,736 | 59,488 | 83,692 |
Unrealized gains (losses) on available-for-sale securities allocable to non-controlling interests | -4,482 | 0 | 0 |
Allocation to non-controlling interests | -965 | 0 | 0 |
Allocation to preferred shares | -17,176 | -7,221 | -1,244 |
Comprehensive income allocable to common shares | $64,113 | $52,267 | $82,448 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive (Loss)/Income [Member] | Retained Earnings [Member] | Distributions in Excess of Earnings [Member] | Parent [Member] | Noncontrolling Interest [Member] | Preferred Shares - Series A [Member] | Preferred Shares - Series B [Member] | Redeemable Preferred Stock Series C [Member] | Redeemable Preferred Stock Series C [Member] | Preferred Stock [Member] | Preferred Stock [Member] | Preferred Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Preferred Stock [Member] | Preferred Stock [Member] | Preferred Stock [Member] | USD ($) | Additional Paid-In Capital [Member] | Parent [Member] | USD ($) | USD ($) | Additional Paid-In Capital [Member] | Parent [Member] | ||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||
Balance at Dec. 31, 2011 | $429,690,000 | $80,000 | $659,700,000 | ($46,327,000) | $0 | ($183,763,000) | $429,690,000 | $0 | $0 | $0 | |||||||||
Balance (in shares) at Dec. 31, 2011 | 79,877,516 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Proceeds from dividend reinvestment and stock purchase plan (in shares) | 13,130,333 | ||||||||||||||||||
Stock Issued During Period, Value, Dividend Reinvestment Plan and Stock Purchase Plan | 73,044,000 | 13,000 | 73,031,000 | 73,044,000 | |||||||||||||||
Proceeds from common stock (in shares) | 9,775,000 | ||||||||||||||||||
Proceeds from issuance of stock | 10,000 | 1,000 | 1,000 | 44,358,000 | 44,356,000 | 44,358,000 | 57,673,000 | 57,663,000 | 57,673,000 | ||||||||||
Offering costs | -4,147,000 | -4,147,000 | -4,147,000 | ||||||||||||||||
Stock based compensation (in shares) | 2,335,244 | ||||||||||||||||||
Stock based compensation | 816,000 | 2,000 | 814,000 | 816,000 | |||||||||||||||
Amortization of stock based compensation | 4,636,000 | 4,636,000 | 4,636,000 | ||||||||||||||||
Net income | 64,443,000 | 64,443,000 | 0 | 64,443,000 | |||||||||||||||
Preferred dividends | -1,244,000 | -1,244,000 | -1,244,000 | ||||||||||||||||
Securities available-for-sale, fair value adjustment, net | 20,498,000 | 20,498,000 | 20,498,000 | ||||||||||||||||
Designated derivatives, fair value adjustment | 1,249,000 | 1,249,000 | 1,249,000 | ||||||||||||||||
Foreign currency translation adjustment | 0 | ||||||||||||||||||
Distributions on common stock | -75,173,000 | -63,199,000 | -11,974,000 | -75,173,000 | |||||||||||||||
Balance at Dec. 31, 2012 | 613,345,000 | 105,000 | 836,053,000 | -27,078,000 | 0 | -195,737,000 | 613,345,000 | 0 | 1,000 | 1,000 | |||||||||
Balance (in shares) at Dec. 31, 2012 | 105,118,093 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Proceeds from dividend reinvestment and stock purchase plan (in shares) | 3,411,528 | ||||||||||||||||||
Stock Issued During Period, Value, Dividend Reinvestment Plan and Stock Purchase Plan | 19,211,000 | 3,000 | 19,208,000 | 19,211,000 | |||||||||||||||
Proceeds from common stock (in shares) | 18,687,500 | ||||||||||||||||||
Proceeds from issuance of stock | 58,012,000 | 19,000 | 58,010,000 | 58,012,000 | 0 | 2,000 | 0 | 118,278,000 | 118,259,000 | 118,278,000 | |||||||||
Offering costs | -5,510,000 | -5,510,000 | -5,510,000 | ||||||||||||||||
Discount on 6% convertible senior notes | 4,851,000 | 4,851,000 | 4,851,000 | ||||||||||||||||
Stock based compensation (in shares) | 701,806 | ||||||||||||||||||
Stock based compensation | 1,138,000 | 1,000 | 1,137,000 | 1,138,000 | |||||||||||||||
Amortization of stock based compensation | 10,472,000 | 10,472,000 | 10,472,000 | ||||||||||||||||
Net income | 46,453,000 | 46,453,000 | 0 | 46,453,000 | |||||||||||||||
Preferred dividends | -7,221,000 | -7,221,000 | -7,221,000 | ||||||||||||||||
Securities available-for-sale, fair value adjustment, net | 8,399,000 | 8,399,000 | 8,399,000 | ||||||||||||||||
Designated derivatives, fair value adjustment | 4,440,000 | 4,440,000 | 4,440,000 | ||||||||||||||||
Foreign currency translation adjustment | 196,000 | 196,000 | 196,000 | ||||||||||||||||
Distributions on common stock | -98,140,000 | -39,232,000 | -58,908,000 | -98,140,000 | |||||||||||||||
Balance at Dec. 31, 2013 | 773,924,000 | 128,000 | 1,042,480,000 | -14,043,000 | 0 | -254,645,000 | 773,924,000 | 0 | 1,000 | 3,000 | 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) | 5,500,000 | 5,531,903 | |||||||||||||||||
Stock Issued During Period, Value, Dividend Reinvestment Plan and Stock Purchase Plan | 30,297,000 | 5,000 | 30,292,000 | 30,297,000 | |||||||||||||||
Proceeds from common stock (in shares) | 4,800,000 | 0 | |||||||||||||||||
Proceeds from issuance of stock | 0 | 3,000 | 5,000 | 174,159,000 | 174,151,000 | 174,159,000 | 0 | 0 | 0 | 0 | |||||||||
Offering costs | -1,418,000 | -1,418,000 | -1,418,000 | ||||||||||||||||
Stock based compensation (in shares) | 889,931 | ||||||||||||||||||
Stock based compensation | 1,000 | 1,000 | 0 | 1,000 | |||||||||||||||
Amortization of stock based compensation | 6,566,000 | 6,566,000 | 6,566,000 | ||||||||||||||||
Purchase and retirement of shares, shares | -1,365,584 | ||||||||||||||||||
Purchase and retirement of shares | -6,827,000 | -1,000 | -6,826,000 | -6,827,000 | |||||||||||||||
Contributions, net of distributions from non-controlling interests | 11,141,000 | 11,141,000 | |||||||||||||||||
Net income | 61,203,000 | 61,203,000 | 0 | 62,168,000 | 965,000 | ||||||||||||||
Preferred dividends | -17,176,000 | -17,176,000 | -17,176,000 | ||||||||||||||||
Securities available-for-sale, fair value adjustment, net | 18,506,000 | 18,506,000 | 22,988,000 | 4,482,000 | |||||||||||||||
Designated derivatives, fair value adjustment | 2,188,000 | 2,188,000 | 2,188,000 | ||||||||||||||||
Foreign currency translation adjustment | -608,000 | -608,000 | -608,000 | ||||||||||||||||
Distributions on common stock | -105,292,000 | -44,027,000 | -61,265,000 | -105,292,000 | |||||||||||||||
Balance at Dec. 31, 2014 | $935,523,000 | $133,000 | $1,245,245,000 | $6,043,000 | $0 | ($315,910,000) | $952,111,000 | $16,588,000 | $1,000 | $6,000 | $5,000 | ||||||||
Balance (in shares) at Dec. 31, 2014 | 132,975,177 | 132,975,177 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Net income | $62,168 | $46,453 | $64,443 | ||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||
Provision for loan losses | 1,804 | 3,020 | 16,818 | ||
Depreciation of investments in real estate and other | 690 | 1,946 | 1,838 | ||
Amortization of intangible assets | 2,059 | 1,970 | 4,047 | ||
Amortization of term facilities | 2,508 | 1,395 | 957 | ||
Accretion of net discounts on loans held for investment | -2,223 | -9,521 | -17,817 | ||
Accretion of net discounts on securities available-for-sale | -3,941 | -2,712 | -3,177 | ||
Amortization of discount on notes of securitizations | 1,228 | 14,524 | 2,470 | ||
Amortization of debt issuance costs on notes of securitizations | 3,601 | 7,426 | 4,700 | ||
Amortization of stock-based compensation | 6,566 | 10,472 | 4,636 | ||
Amortization of terminated derivative instruments | 282 | 339 | 227 | ||
Accretion of interest-only available-for-sales securities | -790 | -1,005 | -719 | ||
Non-cash incentive compensation to the Manager | 0 | 484 | 1,468 | ||
Deferred income tax (benefit) expense | -11,536 | -6,710 | 2,329 | ||
Purchase of mortgage loans held for sale, net | -96,536 | -146 | 0 | ||
Purchase of securities, trading | -20,190 | -11,044 | -8,348 | ||
Principal payments on securities, trading | 1,928 | 4,309 | 1,027 | ||
Proceeds from sales of securities, trading | 1,747 | 19,696 | 33,579 | ||
Net realized and unrealized loss (gain) on investment securities, trading | 2,818 | 324 | -12,435 | ||
Net realized gain on sales of investment securities available-for-sale and loans | -15,283 | -10,986 | -4,106 | ||
(Loss) on reissuance/gain on extinguishment of debt | -4,442 | 0 | 16,699 | ||
Gain on sale of real estate | -6,127 | -16,616 | 0 | ||
Settlement of derivative instruments - investing | 4,142 | 0 | 0 | ||
Net impairment losses recognized in earnings | 0 | 855 | 180 | ||
Linked Transactions fair value adjustments | -5,615 | 6,018 | -168 | ||
Equity in net (earnings) losses of unconsolidated subsidiaries | -4,767 | -949 | 2,709 | ||
Adjust for impact of imputed interest on VIE accounting | 0 | 0 | 1,879 | ||
Changes in operating assets and liabilities, net of acquisitions | |||||
Decrease (increase) in restricted cash | 5,204 | 8,445 | -2,062 | ||
(Increase) decrease in interest receivable, net of purchased interest | -7,295 | -1,108 | 987 | ||
Increase (decrease) in management fee payable | 171 | -6,357 | 3,929 | ||
Increase (decrease) in security deposits | 4,696 | -337 | 25 | ||
(Decrease) increase in accounts payable and accrued liabilities | -3,363 | -16,327 | 6,329 | ||
Increase (decrease) in accrued interest expense | 430 | -1,445 | -193 | ||
(Increase) decrease in other assets | 9,873 | 7,259 | -22,505 | ||
Net cash (used in) provided by operating activities | -69,593 | 49,672 | 66,348 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
(Increase) decrease in restricted cash | -23,568 | 22,248 | 50,756 | ||
Purchase of securities available-for-sale | -180,990 | -136,282 | -119,779 | ||
Principal payments on securities available-for-sale | 56,053 | 52,812 | 47,284 | ||
Proceeds from sale of securities available-for-sale | 147,171 | 11,893 | 28,652 | ||
Return of investment in (investment in) unconsolidated entity | 9,557 | -28,034 | 474 | ||
Equity contribution to VIE | 0 | 0 | -710 | ||
Improvement of real estate held-for-sale | 0 | -404 | -138 | ||
Proceeds from sale of real estate held-for-sale | 65,753 | 37,001 | 2,886 | ||
Purchase of loans | -1,019,721 | -725,657 | -649,983 | ||
Principal payments received on loans | 376,219 | 590,663 | 544,811 | ||
Proceeds from sale of loans | 209,707 | 674,977 | 173,378 | ||
Distributions from investments in real estate | 0 | 1,094 | 1,152 | ||
Improvements in investments in real estate | -221 | -365 | -3,878 | ||
Purchase of furniture and fixtures | -69 | -133 | 0 | ||
Acquisition of property and equipment | -865 | -373 | 0 | ||
Investment in loans - related parties | -1,572 | -1,241 | 0 | ||
Principal payments received on loans b related parties | 3,848 | 1,685 | 1,251 | ||
Net cash (used in) provided by investing activities | -389,131 | 492,271 | 76,156 | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Net proceeds from issuances of common stock (net of offering costs of $0, $3,837 and $2,165) | 0 | 114,454 | 55,502 | ||
Net proceeds from dividend reinvestment and stock purchase plan (net of offering costs of $0, $0 and $19) | 30,297 | 19,211 | 73,044 | ||
Repurchase of common stock | -6,832 | 0 | 0 | ||
Proceeds from borrowings: | |||||
Repurchase agreements, net of repayments | 277,875 | 15,226 | 71,121 | ||
CRE Securitizations | 235,344 | 260,840 | 0 | ||
6.0% Convertible Senior Notes | 0 | 115,000 | 0 | ||
Senior Secured Revolving Credit Facility | 113,500 | 0 | 0 | ||
Payments on borrowings: | 52,663 | 0 | 0 | ||
Payments on borrowings: | |||||
Collateralized debt obligations | -451,991 | -797,573 | -243,539 | ||
CRE Securitizations | -34,000 | 0 | 0 | ||
Mortgage Payable | 0 | -13,600 | 0 | ||
Retirement of debt | 0 | 0 | -20,365 | ||
Settlement of derivative instruments | 3,052 | 0 | 0 | ||
Payment of debt issuance costs | -8,939 | -9,786 | -586 | ||
Cash distributions to non-controlling interests | -2,323 | -30,709 | -3,480 | ||
Noncontrolling Interest Equity | 14,213 | 5,531 | 114 | ||
Distributions paid on preferred stock | -15,008 | -6,413 | -613 | ||
Distributions paid on common stock | -104,225 | -93,458 | -74,050 | ||
Net cash provided by (used in) financing activities | 276,359 | -364,951 | -100,342 | ||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -182,365 | 176,992 | 42,162 | ||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 262,270 | [1] | 85,278 | 43,116 | |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 79,905 | [1] | 262,270 | [1] | 85,278 |
SUPPLEMENTAL DISCLOSURE: | |||||
Interest expense paid in cash | 35,690 | 41,453 | 41,369 | ||
Income taxes paid in cash | 3,305 | 10,710 | 22,758 | ||
Redeemable Preferred Stock Series A [Member] | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Proceeds from issuance of redeemable preferred shares, net of offering costs | 8,984 | 112 | 16,411 | ||
Redeemable Preferred Stock Series B [Member] | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Proceeds from issuance of redeemable preferred shares, net of offering costs | 47,481 | 56,214 | 26,099 | ||
Redeemable Preferred Stock Series C [Member] | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Proceeds from issuance of redeemable preferred shares, net of offering costs | 116,268 | 0 | 0 | ||
Moselle CLO [Member] | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
Acquisition of controlling interest in Moselle CLO S.A. | -30,433 | 0 | 0 | ||
Primary Capital Advisors LLC [Member] | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
Acquisition of controlling interest in Moselle CLO S.A. | $0 | ($7,613) | $0 | ||
[1] | DecemberB 31, 2014DecemberB 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $25B $b Restricted cash$121,247B $61,372 Investments securities available-for-sale, pledged as collateral, at fair value119,203B 105,846 Loans held for sale282B 2,376Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,261,137B 1,219,569 Interest receivable8,941B 5,627 Prepaid expenses221B 247 Principal paydown receivable25,767B 6,821 Other assets(12)B b Total assets of consolidated VIEs$1,536,811B $1,401,858 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net proceeds from dividend reinvestment and stock purchase plan, offering costs | $0 | $0 | $19 |
Common Stock [Member] | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Offering costs on stock issuance | 0 | 3,837 | 2,165 |
Redeemable Preferred Stock Series A [Member] | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Offering costs on stock issuance | 260 | 3 | 781 |
Preferred stock, coupon authorized (in hundredths) | 8.50% | ||
Redeemable Preferred Stock Series B [Member] | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Offering costs on stock issuance | 858 | 1,670 | 1,201 |
Preferred stock, coupon authorized (in hundredths) | 8.25% | ||
Redeemable Preferred Stock Series C [Member] | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Offering costs on stock issuance | $300 | $0 | $0 |
Preferred stock, coupon authorized (in hundredths) | 8.63% |
ORGANIZATION_AND_BASIS_OF_PRES
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended | |
Dec. 31, 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 are 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 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. During the fourth quarter of 2014, the CLO began the liquidation process and substantially all assets were sold as of December 31, 2014. | |
• | RCC Commercial III, Inc. (“Commercial III”) holds bank loan investments. Commercial III owned 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. In October 2014, the Company liquidated Apidos CLO I, and as a result, all of the assets were sold. | |
• | 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. The remainder of the equity is owned by RCC Commercial. | |
◦ | Pelium Capital Partners, L.P., ("Pelium Capital") a Delaware limited partnership, which holds investment securities, trading. Resource TRS owns 74.1% of the equity in Pelium Capital as of December 31, 2014. | |
• | 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 (“ACM”), a subsidiary of CVC Capital Partners SICAV-FIS, S.A., a private equity firm (“CVC ”). Resource America 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 owned 33% of the equity of the following VIE: | |
◦ | Apidos CLO VIII, Ltd (“Apidos CLO VIII”), a Cayman Islands limited liability company and TRS. In October 2013, the Company 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, held 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% equity interest in Life Care Funding, LLC ("LCF") and provides funding through a financing facility to fund the acquisition of life settlement contracts. LCF, a New York limited liability company, is a joint venture between LTCC and Life Care Funding Group Partners and was established for the purpose of originating and acquiring life settlement contracts. | |
• | RCC Residential, Inc., ("RCC Residential") a TRS directly owned by the Company, is a Delaware corporation, which owns 100% of the following entity: | |
◦ | Primary Capital Mortgage, LLC ("PCM"), (formerly known as Primary Capital Advisors, LLC) , a limited liability company that originates and services residential mortgage loans. | |
◦ | RCM Global Manager, LLC ("RCM Global Manager"), a Delaware limited liability company, which owns 63.8% of the following entity: | |
▪ | RCM Global, LLC ("RCM Global"), a Delaware limited liability company, which 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 | 12 Months Ended | |
Dec. 31, 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. | ||
A VIE is defined as an entity in which equity investors (i) do not have a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional financial support from other parties. A VIE is required to be consolidated by its primary beneficiary, which is defined as the party that (a) has the power to control the activities that most significantly impact the VIE's economic performance and (b) has the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. | ||
The Company considers the following criteria in determining whether an entity is a VIE: | ||
1. The equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by any parties, including the equity holders. | ||
2. The equity investors lack one or more of the following essential characteristics of a controlling financial interest. | ||
a. The direct ability to make decisions about the entity's activities through voting rights or similar rights. | ||
b. The obligation to absorb the expected losses of the entity. | ||
c. The right to receive the expected residual returns of the entity. | ||
3. The equity investors have voting rights that are not proportionate to their economic interests, and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. | ||
In determining whether the Company is the primary beneficiary of a VIE, the Company reviews governing contracts, formation documents and any other contractual arrangements for any relevant terms and determines the activities that have the most significant impact on the VIE and who has the power to direct those activities. The Company also looks for kick-out rights, protective rights and participating rights as well as any financial or other support provided to the VIE and the reason for that support, and the terms of any explicit or implicit arrangements that may require the Company to provide future support. The Company then makes a determination based on its power to direct the most significant activities of the VIE and/or a financial interest that is potentially significant. The Company continually reassesses whether it should be deemed to be the primary beneficiary of its VIEs. | ||
All inter-company transactions and balances have been eliminated. | ||
Use of Estimates | ||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates affecting the accompanying consolidated financial statements include the net realizable and fair values of the Company's investments and derivatives, the estimated life used on investments to calculate depreciation, amortization, and accretion of premiums and discounts, respectively, provisions for loan losses, valuation of servicing asset and the disclosure of contingent liabilities. | ||
Cash and Cash Equivalents | ||
Cash and cash equivalents include cash on hand and all highly liquid investments with original maturities of three months or less at the time of purchase. Cash, including amounts restricted, may at times exceed the Federal Deposit Insurance Corporation deposit insurance limit of $250,000 per institution. At December 31, 2014 and 2013, this included $31.8 million and $22.5 million, respectively, held in a prime brokerage and custody accounts, $32.6 million and $156.6 million, respectively, held in money market accounts, $15.4 million and $81.1 million, respectively, held in checking accounts, and $100,000 and $2.1 million, respectively, held in accounts at the Company's investment properties. | ||
Investment Securities | ||
The Company classifies its investment portfolio as trading or available-for-sale. The Company, from time to time, may sell any of its investments due to changes in market conditions or in accordance with its investment strategy. | ||
The Company’s investment securities, trading and investment securities, available-for-sale are reported at fair value. To determine fair value, the Company uses an independent third-party valuation firm utilizing data available in the market as well as appropriate prepayment, default, and recovery rates. These valuations are validated utilizing dealer quotes or bids. If there is a material difference between the value indicated by the third-party valuation firm and the dealer quote or bid, the Company will evaluate the difference, which could result in an updated valuation from the third-party or a revised dealer quote. Based on a prioritization of inputs used in valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. Any changes in fair value to the Company's investment securities, trading are recorded in the Company’s consolidated statements of income as net realized and unrealized (loss) gain on investment securities, trading. Any changes in fair value to the Company's investment securities available-for-sale are recorded in the Company’s consolidated balance sheets as a component of accumulated other comprehensive income (loss) in stockholders' equity. | ||
On a quarterly basis, the Company evaluates its available-for-sale investments for other-than-temporary impairment. An available-for-sale investment is impaired when its fair value has declined below its amortized cost basis. An impairment is considered other-than-temporary when the amortized cost basis of the investment or some portion thereof will not be recovered. | ||
The determination of other-than-temporary impairment is a subjective process, and different judgments and assumptions could affect the timing of loss realization. The Company reviews its portfolios and makes other-than-temporary impairment determinations at least quarterly. The Company considers the following factors when determining if there is an other-than-temporary impairment on a security: | ||
• | the length of time the market value has been less than amortized cost; | |
• | the severity of the impairment; | |
• | the expected loss of the security as generated by a third-party valuation model; | |
• | original and current credit ratings from the rating agencies; | |
• | underlying credit fundamentals of the collateral backing the securities; | |
• | whether, based upon the Company’s intent, it is more likely than not that the Company will sell the security before the recovery of the amortized cost basis; and | |
• | third-party support for default, for recovery, prepayment speed and reinvestment price assumptions. | |
Where credit quality is believed to be the cause of the other-than-temporary impairment, that component of the impairment is recognized as an impairment loss in the consolidated statements of income. Where other market components are believed to be the cause of the impairment, that component of the impairment is recognized as other comprehensive loss. | ||
The Company performs an on-going review of third-party reports and updated financial data on the underlying properties in order to analyze current and projected security performance. Rating agency downgrades are considered with respect to the Company’s income approach when determining other-than temporary impairment and, when inputs are subjected to testing for economic changes within possible ranges, the resulting projected cash flows reflect a full recovery of principal and interest indicating no impairment. | ||
Investment security transactions are recorded on the trade date. Realized gains and losses on investment securities are determined on the specific identification method. | ||
Investment Interest Income Recognition | ||
Interest income on the Company’s mortgage-backed and other asset-backed securities is accrued using the effective yield method based on the actual coupon rate and the outstanding principal amount of the underlying mortgages or other assets. Premiums and discounts are amortized or accreted into interest income over the lives of the securities also using the effective yield method, adjusted for the effects of estimated prepayments. For an investment purchased at par, the effective yield is the contractual interest rate on the investment. If the investment is purchased at a discount or at a premium, the effective yield is computed based on the contractual interest rate increased for the accretion of a purchase discount or decreased for the amortization of a purchase premium. The effective yield method requires the Company to make estimates of future prepayment rates for its investments that can be contractually prepaid before their contractual maturity date so that the purchase discount can be accreted, or the purchase premium can be amortized, over the estimated remaining life of the investment. The prepayment estimates that the Company uses directly impact the estimated remaining lives of its investments. Actual prepayment estimates are reviewed as of each quarter end or more frequently if the Company becomes aware of any material information that would lead it to believe that an adjustment is necessary. If prepayment estimates are incorrect, the amortization or accretion of premiums and discounts may have to be adjusted, which would have an impact on future income. | ||
To the extent that the Company invests in securities qualifying as beneficial interests in securitized financial assets, the Company will recognize the excess of all cash flows attributable to the beneficial interest estimated at the acquisition/transaction date over the initial investment (the accretable yield) as interest income over the life of the beneficial interest using the effective yield method. | ||
Loans | ||
The Company acquires loans through direct origination, through the acquisition of participations in commercial real estate loans and corporate leveraged loans in the secondary market and through syndications of newly originated loans. Loans are held for investment; therefore, the Company initially records them at their acquisition price, and subsequently, accounts for them based on their outstanding principal plus or minus unamortized premiums or discounts. The Company may sell a loan held for investment where the credit fundamentals underlying a particular loan have changed in such a manner that the Company's expected return on investment may decrease. Once the determination has been made by the Company that it no longer will hold the loan for investment, the Company identifies these loans as “Loans held for sale” and will account for them at the lower of amortized cost or fair value. | ||
Loan Interest Income Recognition | ||
Interest income on loans includes interest at stated rates adjusted for amortization or accretion of premiums and discounts. Premiums and discounts are amortized or accreted into income using the effective yield method. If a loan with a premium or discount is prepaid, the Company immediately recognizes the unamortized portion as a decrease or increase to interest income. In addition, the Company defers loan origination fees and loan origination costs and recognizes them over the life of the related loan against interest income using the effective yield method. | ||
Residential Loan Origination | ||
The Company originates residential loans to be funded by permanent investors. The Company originates loans in 35 states with a focus on the Southeast. The Company may sell or retain the right to service the loans. Servicing fees are recognized as income when the related mortgage payments are collected based on the outstanding balance of the related mortgage loans or on an agreed upon rate. Servicing fee income is reduced by amortization of capitalized servicing rights. | ||
The fair value option has been elected for all residential mortgage loans held for sale. As such, residential mortgage loans held for sale are valued at fair value, determined on an individual-loan basis. Additionally, due to such election, origination fees and direct origination costs are immediately recognized in earnings. Market value for conforming, agency loans is determined using sales commitments to permanent investors or on current market rates for loans of similar quality and type (generally Level 2 in the fair value hierarchy). Market value for non-agency, jumbo loans is determined using sales commitments to permanent investors, current market rates for loans of similar quality, or through the use of cash flow models (generally Level 3 in the fair value hierarchy). Mortgage loans are included as loans held for sale in the consolidated balance sheets. Conforming, agency loans are generally sold within 15 to 45 days of origination. Non-agency, jumbo loans may either be sold to private investors or held for securitization. | ||
Residential real estate properties acquired through foreclosure to be sold are initially recorded at fair value less selling costs at the date of foreclosure, establishing a new cost basis. Any write down to fair value at the time of foreclosure is charged to the allowance for loan losses. After foreclosure, valuations are periodically performed by management and the real estate is carried at the lower of the carrying amount or fair value less costs to sell. Costs related to holding foreclosed real estate and subsequent adjustments to value are expensed. The fair value of real estate owned is determined using unobservable inputs including estimates of selling costs and marketability of the property (Level 3). | ||
The unpaid principal balances of loans serviced by the Company for others are not included in the accompanying consolidated balance sheets. | ||
Mortgage Servicing Rights | ||
A mortgage servicing right is the right to receive a portion of the interest coupon and fees collected from the mortgagor for performing specified mortgage servicing activities, which consist of collecting loan payments, remitting principal and interest payments to investors, managing escrow funds for the payment of mortgage-related expenses such as taxes and insurance and otherwise administering the mortgage loan servicing portfolio. Mortgage servicing rights are created through either the direct purchase of servicing from a third party or through the sale of an originated mortgage loan. The servicing rights relate to a single class of residential mortgage loans. | ||
The fair value of residential servicing rights included in the consolidated balance sheets was determined using an estimated current market value at the date of loan origination and other assumptions. Capitalized servicing rights are amortized over the life of the loan, assuming certain prepayment and other assumptions. | ||
Allowance for Loan Loss | ||
The Company maintains an allowance for loan loss. For the Company's bank and CRE loan portfolios, loans held for investment are first individually evaluated for impairment to determine whether a specific reserve is required. Loans that are not determined to be impaired individually are then evaluated for impairment as a homogeneous pool of loans with substantially similar characteristics so that a general reserve can be established, if needed. The reviews are performed at least quarterly. | ||
The Company considers a loan to be impaired if one of two conditions exists. The first condition is if, based on current information and events, management believes it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The second condition is if the loan is deemed to be a troubled-debt restructuring (“TDR”) where a concession has been given to a borrower in financial difficulty. These TDRs may not have an associated specific loan loss allowance if the principal and interest amount is considered recoverable based on current market conditions, expected collateral performance and/or guarantees made by the borrowers. | ||
When a loan is impaired under either of these two conditions, the allowance for loan losses is increased by the amount of the excess of the amortized cost basis of the loan over its fair value. Fair value may be determined based on the present value of estimated cash flows; on market price, if available; or on the fair value of the collateral less estimated disposition costs. When a loan, or a portion thereof, is considered uncollectible and pursuit of collection is not warranted, the Company will record a charge-off or write-down of the loan against the allowance for loan losses. | ||
An impaired loan may remain on accrual status during the period in which the Company is pursuing repayment of the loan; however, the loan would be placed on non-accrual status at such time as (i) management believes that scheduled debt service payments will not be met within the coming 12 months; (ii) the loan becomes 90 days delinquent; (iii) management determines the borrower is incapable of, or has ceased efforts toward, curing the cause of the impairment; or (iv) the net realizable value of the loan’s underlying collateral approximates the Company’s carrying value for such loan. While on non-accrual status, the Company recognizes interest income only when an actual payment is received. When a loan is placed on non-accrual, previously accrued interest is reversed from interest income. | ||
For the Company's residential mortgage loans, the allowance is based upon management's periodic review of the collectability of the loans in light of historical experience, the nature and amount of the loan portfolio, adverse situations that may affect the borrower's ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific and general components. The specific component relates to loans that are classified as doubtful, substandard, or special mention. For such loans that are also identified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan are lower than the carrying value of that loan. A general component is maintained to cover uncertainties that could affect management's estimate of probable losses. The general component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. | ||
Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impaired loans are carried at fair value and are measured on a nonrecurring basis. The fair value is determined using unobservable inputs including estimates of selling costs (Level 3). | ||
Investments in Real Estate | ||
Investments in real estate are carried net of accumulated depreciation. Costs directly related to the acquisition are expensed as incurred. Ordinary repairs and maintenance which are not reimbursed by the tenants are expensed as incurred. Costs related to the improvement of the real property are capitalized and depreciated over their useful lives. | ||
Acquisitions of real estate assets and any related intangible assets are recorded initially at fair value under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 805, “Business Combinations”. The Company allocates the purchase price of its investments in real estate to land, building, site improvements, the value of in-place leases and the value of above or below market leases. The value allocated to above or below market leases is amortized over the remaining lease term as an adjustment to rental income. The Company amortizes the value allocated to in-place leases over the weighted average remaining lease term to depreciation and amortization expense. The Company depreciates real property using the straight-line method over the estimated useful lives of the assets as follows: | ||
Category | Term | |
Building | 25 – 40 years | |
Site improvements | Lesser of the remaining life of building or useful lives | |
Long-Lived and Intangible Assets | ||
Long-lived assets and certain identifiable intangibles to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. The review of recoverability is based on an estimate of the future undiscounted cash flows (excluding interest charges) expected to result from the long-lived asset’s use and eventual disposition. If impairment has occurred, the loss will be measured as the excess of the carrying amount of the asset over the fair value of the asset. | ||
There were no impairment charges recorded with respect to the Company’s investment in real estate or intangible assets during the years ended December 31, 2014, 2013 and 2012. | ||
Comprehensive Income (Loss) | ||
Comprehensive income (loss) for the Company includes net income and the change in net unrealized gains (losses) on available-for-sale securities, derivative instruments used to hedge exposure to interest rate fluctuations and protect against declines in the market value of assets resulting from general market trends as well as translation of currency as a result of the Company's investment in the equity of foreign CDOs. | ||
Income Taxes | ||
The Company operates in such a manner as to qualify as a real estate investment trust (“REIT”) under the provisions of the Internal Revenue Code of 1986, as amended (the "Code"); therefore, applicable REIT taxable income is included in the taxable income of its shareholders, to the extent distributed by the Company. To maintain REIT status for federal income tax purposes, the Company is generally required to distribute at least 90% of its REIT taxable income to its shareholders as well as comply with certain other qualification requirements as defined under the Code. As a REIT, the Company is not subject to federal corporate income tax to the extent that it distributes 100% of its REIT taxable income each year. | ||
Taxable income, from non-REIT activities managed through the Company's taxable REIT subsidiaries, is subject to federal, state and local income taxes. The Company's taxable REIT subsidiaries' income taxes are accounted for under the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for the temporary differences between the financial reporting basis and tax basis of assets and liabilities. | ||
Apidos CDO I, Apidos CDO III, Apidos Cinco CDO, Apidos CLO VIII, Whitney CLO I, Harvest CLO VII, Moselle CLO, Harvest CLO VIII, Harvest X Investor, and Harvest CLO X, the Company's foreign TRSs, are organized as exempted companies incorporated with limited liability under the laws of the Cayman Islands and, with respect to Moselle CLO, Luxembourg and, with respect to Harvest CLO VII, Harvest CLO VIII, and Harvest CLO X, Ireland, and are generally exempt from federal and state income tax at the corporate level because their activities in the United States are limited to trading in stock and securities for their own account. Therefore, despite their status as TRSs, they generally will not be subject to corporate tax on their earnings and no provision for income taxes is required; however, because they are “controlled foreign corporations,” the Company will generally be required to include Apidos CDO I's, Apidos CDO III's, Apidos Cinco CDO's, Apidos CLO VIII's, Whitney CLO I's, Harvest CLO VII’s, Moselle CLO’s, Harvest CLO VIII’s, Harvest X Investor’s, and Harvest X CLO’s current taxable income in its calculation of REIT taxable income. | ||
On October 27, 2011 the Company reorganized the ownership structure of Apidos CDO I and Apidos CDO III. As a result, the earnings from Apidos CDO I and Apidos CDO III are excluded from the Company's calculation of REIT taxable income and are subject to corporate tax. On January 24, 2012, the Company again reorganized the ownership structure of Apidos CDO I and Apidos CDO III. As a result, for the period January 1, 2012 through January 23, 2012, the earnings from Apidos CDO I and Apidos CDO III are excluded from the Company's calculation of REIT taxable income and are subject to corporate tax. For the period January 24, 2012 through December 31, 2012 the earnings from Apidos CDO I are included in the Company's calculation of REIT taxable income. | ||
On December 11, 2012, the Company further reorganized the ownership structure of Apidos CDO III. As a result, for the period from January 24, 2012 through December 10, 2012 the earnings from Apidos CDO III are included in the Company's calculation of REIT taxable income. Also as a result of the reorganization on December 11, 2012, for the period December 11, 2012 through December 31, 2012, the earnings from Apidos CDO III are excluded from the Company's calculation of REIT taxable income and are subject to corporate tax. | ||
On November 12, 2012, the Company reorganized the ownership structure of Apidos Cinco CDO and Whitney CLO I. As a result, for the period November 12, 2012 through December 31, 2012, the earnings from Apidos Cinco CDO and Whitney CLO I are excluded from the Company's calculation of REIT taxable income and are subject to corporate tax. Accordingly, a provision for income taxes on the earnings from November 12, 2012 through December 31, 2012 was recorded. | ||
On February 13, 2013, the Company reorganized the ownership structure of Apidos Cinco CDO and Whitney CLO I. As a result, for the period January 1, 2013 through February 12, 2013, the earnings from Apidos Cinco CDO and Whitney CLO I are excluded from the Company’s calculation of REIT taxable income and are subject to corporate tax. Accordingly, a provision for income taxes on the earnings from January 1, 2013 through February 12, 2013 has been recorded. Also as a result of the reorganization on February 13, 2013, for the period February 13, 2013 and ending December 31, 2013 the earnings from Apidos Cinco CDO and Whitney CLO I are included in the Company’s calculation of REIT taxable income. | ||
On March 8, 2013 the Company reorganized the ownership structure of Apidos CDO III. As a result, the earnings from Apidos CDO III for the period January 1, 2013 through March 7, 2013 are excluded from the Company’s calculation of REIT taxable income and are subject to corporate tax. Accordingly, a provision for income taxes on the earnings from January 1, 2013 through March 7, 2013 has been recorded. Also as a result of the reorganization on March 8, 2013, for the period March 8, 2013 and ending December 31, 2013 the earnings from Apidos CDO III are included in the Company’s calculation of REIT taxable income. | ||
On September 10, 2013, the Company acquired approximately 9.5% of the equity of Harvest CLO VII, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of Ireland. This equity is directly owned by a domestic QRS (Qualified REIT Subsidiary) of the Company; therefore, its earnings are included in the Company’s calculation of REIT taxable income. | ||
On February 24, 2014, the Company acquired approximately 88.6% of the equity of Moselle CLO S.A., which is a foreign TRS, incorporated in Luxembourg. This equity is directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. | ||
On March 27, 2014, the Company acquired approximately 12.6% of the equity of Harvest CLO VIII, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of Ireland. This equity is directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. | ||
On July 3, 2014, the Company acquired approximately 55% of the equity of Harvest X Investor, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of the Cayman Islands. As of November 6, 2014, the Company’s investment was returned and the Company no longer has an active ownership interest in Harvest X Investor. For the period July 3, 2014 through November 6, 2014 the equity was directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. | ||
On November 6, 2014, the Company acquired approximately 32.1% of the equity of Harvest CLO X, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of Ireland. This equity is directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. | ||
The Company accounts for taxes assessed by a governmental authority that is directly imposed on a revenue-producing transaction (e.g., sales, use, value added) on a net (excluded from revenue) basis. | ||
Stock Based Compensation | ||
Issuances of restricted stock and options are accounted for using the fair value based methodology whereby the fair value of the award is measured on the grant date and expensed monthly to equity compensation expense-related party on the consolidated statements of income with a corresponding entry to additional paid-in capital. For issuances to the Company's Manager and to non-employees, the unvested stock and options are adjusted quarterly to reflect changes in fair value as performance under the agreement is completed. For issuances to the Company's seven non-employee directors or to any direct employees of the Company's subsidiaries, the amount is not remeasured under the fair value-based method. The compensation for each of these issuances is amortized over the service period and included in equity compensation expense. | ||
Net Income Per Share | ||
The Company calculates basic income per share by dividing net income for the period by the weighted-average number of shares of its common stock, including vested restricted stock and participating securities, outstanding for that period. Diluted income per share takes into account the effect of dilutive instruments, such as stock options, unvested restricted stock and convertible debt, but uses the average share price for the period in determining the number of incremental shares that are to be added to the weighted-average number of shares outstanding. | ||
Derivative Instruments | ||
The Company's policies permit it to enter into derivative contracts, including interest rate swaps and interest rate caps, to add stability to its interest expense and to manage its exposure to interest rate movements or other identified risks. The Company has designated these transactions as cash flow hedges. The contracts or hedge instruments are evaluated at inception and at subsequent consolidated balance sheets dates to determine if they qualify for hedge accounting which requires that the Company recognize all derivatives on the consolidated balance sheets at fair value. The Company records changes in the estimated fair value of the derivative in other comprehensive income to the extent that it is effective. Any ineffective portion of a derivative's change in fair value is immediately recognized in earnings. | ||
The Company may also enter into forward currency contracts. 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. | ||
The Company may also enter into forward contracts for the sale of mortgage-backed securities for the purpose of hedging its closed residential mortgage loans held for sale and its pipeline of residential mortgage loans expected to close. As residential mortgage loans are closed, they are typically sold at prices specified in the forward contracts. Gains or losses may arise if the yields of the loans delivered vary from those specified in the forward contracts. Derivative mortgage loan commitments, or interest rate locks, may also be utilized and relate to the origination of a mortgage that will be held for sale upon funding. | ||
The Company may also hold warrants. Warrants give the holder the right, but not the obligation, to purchase equity in the Company at a specific price within a specified time period. Typically, the warrant contracts include expiration dates well into the future and an exercise price set above the current fair value of the common stock. With the expiration date set into the future, the warrant’s value is impacted by the time value of money. Both this factor and the fluctuation in the underlying stock’s price impact the value of the warrant, thereby causing the holder to consider this investment as a derivative. | ||
The Company may also hold options on future contracts. Options are contracts sold by one party to another that give the buyer the right, but not the obligation, to buy or sell a financial asset at an agreed-upon price during a certain period of time or on a specific date. | ||
Linked Transactions | ||
If the Company finances the purchase of securities with repurchase agreements with the same counterparty from whom the securities are purchased and both transactions are entered into contemporaneously or in contemplation of each other, the transactions are presumed not to meet sale accounting criteria and the Company will account for the purchase of such securities and the repurchase agreement on a net basis and record a forward purchase commitment to purchase securities (each, a “Linked Transaction”) at fair value on the Company's consolidated balance sheets in the line item linked transactions, at fair value. Changes in the fair value of the assets and liabilities underlying the linked transactions and associated interest income and interest expense are reported as unrealized (loss) gain and net interest income on linked transactions, net on the Company's consolidated statements of income. | ||
Recent Accounting Standards | ||
In February 2015, the Financial Accounting Standards Board ("FASB") issued guidance that requires an entity to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: (1) Modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; (2) Eliminate the presumption that a general partner should consolidate a limited partnership; (3) Affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; (4) Provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. This guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after after December 15, 2015. Early application is permitted. The Company does not expect adoption will have a material impact on its consolidated financial statements. | ||
In November 2014, the FASB issued guidance for determining whether and at what threshold an acquired entity can reflect the acquirer’s accounting and reporting basis (pushdown accounting) in its separate financial statements. In accordance with this guidance, management may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. An acquired entity should determine whether to elect to apply pushdown accounting for each individual change-in-control event in which an acquirer obtains control of the acquired entity. If pushdown accounting is not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period to the acquired entity’s most recent change-in-control event. An election to apply pushdown accounting in a reporting period after the reporting period in which the change-in-control event occurred should be considered a change in accounting principle in accordance with ASC Topic 250, Accounting Changes and Error Corrections. If pushdown accounting is applied to an individual change-in-control event, that election is irrevocable. If an acquired entity elects the option to apply pushdown accounting in its separate financial statements, it should disclose information in the current reporting period that enables users of financial statements to evaluate the effect of pushdown accounting. This guidance was effective after November 18, 2014. Adoption did not have a material impact on the Company's consolidated financial statements. | ||
In November 2014, the FASB issued guidance to eliminate the use of different methods in practice and thereby reduce existing diversity under GAAP in the accounting for hybrid financial instruments issued in the form of a share. An entity that issues or invests in a hybrid financial instrument is required to separate an embedded derivative feature from the host contract (for example, an underlying share) and account for the feature as a derivative according to ASC Subtopic 815-10 on derivatives and hedging if certain criteria are met. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015 and interim periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the effect of adoption. | ||
In August 2014, the 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 ASC 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 is effective for an entity’s interim and annual reporting periods in fiscal years that begin after December 15, 2013. Earlier application is prohibited. The Company is currently evaluating the effect of adoption, but does not expect adoption will have a material impact on its consolidated financial statements. | ||
Reclassifications | ||
Certain reclassifications have been made to the 2012 and 2013 consolidated financial statements to conform to the 2014 presentation. Previously, certain gains and losses related to the Company's residential mortgage loans were included in general and administrative expenses. These gains and losses are now included in net realized gain on sales of investment securities available-for-sale and loans. In 2013, the Company's middle market loans were reported with bank loans in the consolidated financial statements. In 2014, these loans were presented as a separate loan portfolio in the consolidated financial statements. | ||
Principal paydown receivables represent the portion of the Company's loan portfolio for which indication has been provided through its various servicers, trustees, or its asset management group that a payoff or paydown of a loan has been received but for which, as of period end, the Company has not received and applied such cash to the outstanding loan balance. To better reflect the nature of these activities, the Company has reclassified the net changes in these principal paydown receivables in the Consolidated Statement of Cash Flows from an operating activity to an investing activity included in principal payments received from loans and has supplemented this reclassification with a disclosure of cash received on principal paydown receivables subsequent to December 31, 2014. The reclassification had the impact of decreasing net cash flows from operations by $18.7 million and increasing net cash flows from operations by $25.5 million for the years ended December 31, 2013, and 2012, respectively. Conversely, the reclassification had the impact of increasing net cash flows from investing activities by $18.7 million and decreasing net cash flows from investing activities by $25.5 million for the years ended December 31, 2013, and 2012, respectively. This reclassification had no impact on the net changes in cash and cash equivalents or net income for any periods presented. |
VARIABLE_INTEREST_ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 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 they are variable interest in VIEs. The Company monitors these legal interests and, to the extent it has determined that it has a variable interest, analyzes the entity for potential consolidation. A VIE is required to be consolidated by its primary beneficiary. The Company will continually analyze entities for which it holds a variable interest, including when there is a reconsideration event, to determine whether such entities are VIEs and whether such potential VIEs should be consolidated or deconsolidated. This analysis requires considerable judgment in determining the primary beneficiary of a VIE and could result in the consolidation of an entity that would otherwise not have been consolidated or the non-consolidation of an entity that otherwise would have been consolidated. | ||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated VIEs (the Company is the primary beneficiary) | ||||||||||||||||||||||||||||||||||||||||||||||||
Based on management’s analysis, the Company is the primary beneficiary of eleven VIEs at December 31, 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 2014, Moselle CLO and RCM Global, LLC. 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, RCC CRE 2014 and RCM Global, LLC, 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, RCC CRE 2014 and RCM Global, LLC 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 and CVC Credit Partners manage 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 was a European securitization in which the Company purchased a $30.4 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 was 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 manage 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. During the fourth quarter of 2014, the CLO began the liquidation process and substantially all assets were sold as of December 31, 2014. | ||||||||||||||||||||||||||||||||||||||||||||||||
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 or his membership interest. RCM Global was determined to be a VIE based on the equity holders' inability to direct the activities that are most significant to the entity. The Company was determined to be the the primary beneficiary of RCM Global and, therefore, consolidated the entity. | ||||||||||||||||||||||||||||||||||||||||||||||||
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 which 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. The non-controlling interest in this vehicle is owned by Resource America. The Company's ownership interest in Pelium decreased to 74.1% as of December 31, 2014. | ||||||||||||||||||||||||||||||||||||||||||||||||
For a discussion of the Company’s securitizations, see Note 1, and for a discussion of the debt issued through the securitizations, see Note 14. | ||||||||||||||||||||||||||||||||||||||||||||||||
For consolidated 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 eleven consolidated VIEs have no recourse to the general credit of the Company. However, in its capacity as manager, the Company has voluntarily supported two credits in one of its commercial real estate CDOs as the credits went through a restructuring in order to maximize their future cash flows. For the years ended December 31, 2014, 2013 and 2012, the Company has provided financial support of $219,000, $166,000 and $156,000, 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 consolidated VIEs as of December 31, 2014 (in thousands): | ||||||||||||||||||||||||||||||||||||||||||||||||
Apidos I | Apidos | Apidos | Apidos | Whitney CLO I | RREF | RREF | RCC CRE Notes 2013 | RCC CRE 2014 | Moselle | RCM Global, LLC | Total | |||||||||||||||||||||||||||||||||||||
III | Cinco | VIII | 2006-1 | 2007-1 | ||||||||||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 25 | $ | 25 | ||||||||||||||||||||||||
Restricted cash (1) | 416 | 3,104 | 20,142 | 5 | 116 | 20 | 250 | 2,713 | — | 94,481 | — | 121,247 | ||||||||||||||||||||||||||||||||||||
Investment securities | — | 3,057 | 11,115 | — | — | 11,274 | 64,858 | — | — | — | 28,899 | 119,203 | ||||||||||||||||||||||||||||||||||||
available-for-sale, | ||||||||||||||||||||||||||||||||||||||||||||||||
pledged as collateral, | ||||||||||||||||||||||||||||||||||||||||||||||||
at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans, pledged as collateral | 153 | 80,761 | 249,164 | — | — | 128,398 | 206,207 | 248,662 | 347,792 | — | — | 1,261,137 | ||||||||||||||||||||||||||||||||||||
Loans held for sale | — | — | 282 | — | — | — | — | — | — | — | — | 282 | ||||||||||||||||||||||||||||||||||||
Interest receivable | — | 327 | 858 | — | — | 2,293 | 1,979 | 1,279 | 1,396 | — | 809 | 8,941 | ||||||||||||||||||||||||||||||||||||
Prepaid assets | 2 | 21 | 19 | — | — | 78 | 64 | 37 | — | — | — | 221 | ||||||||||||||||||||||||||||||||||||
Principal paydown receivable | — | — | — | — | — | — | — | 20,500 | 2,207 | 3,060 | — | 25,767 | ||||||||||||||||||||||||||||||||||||
Other assets | — | — | — | — | — | — | — | — | (12 | ) | — | — | (12 | ) | ||||||||||||||||||||||||||||||||||
Total assets (2) | $ | 571 | $ | 87,270 | $ | 281,580 | $ | 5 | $ | 116 | $ | 142,063 | $ | 273,358 | $ | 273,191 | $ | 351,383 | $ | 97,541 | $ | 29,733 | $ | 1,536,811 | ||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | $ | — | $ | 74,646 | $ | 255,463 | $ | — | $ | — | $ | 61,424 | $ | 130,207 | $ | 224,157 | $ | 231,657 | $ | 68,940 | $ | — | $ | 1,046,494 | ||||||||||||||||||||||||
Accrued interest | — | 46 | 270 | — | — | 36 | 97 | 186 | 133 | 232 | — | 1,000 | ||||||||||||||||||||||||||||||||||||
expense | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, | — | — | — | — | — | 864 | 7,575 | — | — | — | — | 8,439 | ||||||||||||||||||||||||||||||||||||
at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||
Unsettled loan purchases | — | — | — | — | — | — | — | — | — | — | (529 | ) | (529 | ) | ||||||||||||||||||||||||||||||||||
Accounts payable and | 8 | 40 | 17 | — | — | (1 | ) | 1 | — | — | (453 | ) | 2 | (386 | ) | |||||||||||||||||||||||||||||||||
other liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 8 | $ | 74,732 | $ | 255,750 | $ | — | $ | — | $ | 62,323 | $ | 137,880 | $ | 224,343 | $ | 231,790 | $ | 68,719 | $ | (527 | ) | $ | 1,055,018 | |||||||||||||||||||||||
(1) Includes $3.0 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 December 31, 2014. The Company’s maximum exposure to risk for each of these unconsolidated VIEs is set forth in the “Maximum Exposure to Loss” column in the table below. | ||||||||||||||||||||||||||||||||||||||||||||||||
LEAF Commercial Capital, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||
On November 16, 2011, the Company together with LEAF Financial, Inc. ("LEAF Financial"), a subsidiary of Resource America, and LEAF Commercial Capital, Inc. (“LCC”), another subsidiary of Resource America, entered into a stock purchase agreement and related agreements (collectively the “SPA”) with Eos Partners, L.P., a private investment firm, and its affiliates (“Eos”). In exchange for its prior interests in its lease related investments, the Company received 31,341 shares of Series A Preferred Stock (the "Series A Preferred Stock"), 4,872 shares of newly issued 8% Series B Redeemable Preferred Stock (the "Series B Preferred Stock") and 2,364 shares of newly issued Series D Redeemable Preferred Stock (the "Series D Preferred Stock"), collectively representing, on a fully-diluted basis assuming conversion, a 26.7% interest in LCC. The Company’s investment in LCC was valued at $36.3 million based on a third-party valuation at that time. During 2013, the Company entered into a third stock purchase agreement with LCC to purchase 3,682 shares of newly issued Series A-1 Preferred Stock (the "Series A-1 Preferred Stock") for $3.7 million and 4,445 shares of newly issued Series E Preferred Stock (the "Series E Preferred Stock") for $4.4 million. The Series E Preferred Stock has priority over all other classes of preferred stock. The Company's fully-diluted interest in LCC assuming conversion is 28.4%. The Company’s investment in LCC was recorded at $39.4 million and $41.0 million as of December 31, 2014 and 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 28.4% 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 $9.4 million and $11.2 million at December 31, 2014 and 2013, respectively. The Company recognized fee income of $5.1 million, $5.3 million and $7.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. With respect to four of these CLOs, the Company determined that it does not hold a controlling interest and, therefore, is not the primary beneficiary. One of the CLOs was liquidated in February 2013. With respect to the fifth CLO, Whitney CLO I, in October 2012, the Company purchased 66.6% of its preferred equity, which resulted in consolidation. Based upon that purchase, the Company determined that it had 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 Whitney CLO I. In September 2013, the Company 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 December 31, 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 | $ | 39,417 | $ | 1,548 | $ | — | $ | 40,965 | $ | 40,965 | ||||||||||||||||||||||||||||||||||||||
Intangible assets | — | — | 9,434 | 9,434 | 9,434 | |||||||||||||||||||||||||||||||||||||||||||
Total assets | 39,417 | 1,548 | 9,434 | 50,399 | ||||||||||||||||||||||||||||||||||||||||||||
Borrowings | — | 51,205 | — | 51,205 | N/A | |||||||||||||||||||||||||||||||||||||||||||
Total liabilities | — | 51,205 | — | 51,205 | N/A | |||||||||||||||||||||||||||||||||||||||||||
Net asset (liability) | $ | 39,417 | $ | (49,657 | ) | $ | 9,434 | $ | (806 | ) | N/A | |||||||||||||||||||||||||||||||||||||
As of December 31, 2014, 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 | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | NOTE 4 - SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||||
Supplemental disclosure of cash flow information (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Non-cash investing activities include the following: | ||||||||||||
Assumption of direct financing leases and other assets (1) | $ | 2,385 | $ | — | $ | — | ||||||
Acquisition of real estate investments | $ | — | $ | — | $ | (21,661 | ) | |||||
Conversion of loans to investment in real estate | $ | — | $ | — | $ | 21,661 | ||||||
Acquisition of loans, pledged as collateral | $ | — | $ | — | $ | (230,152 | ) | |||||
Non-cash financing activities include the following: | ||||||||||||
Distributions on common stock declared but not paid | $ | 26,563 | $ | 25,536 | $ | 21,024 | ||||||
Distribution on preferred stock declared but not paid | $ | 6,044 | $ | 2,159 | $ | 1,244 | ||||||
Issuance of restricted stock | $ | 890 | $ | 823 | $ | 2,189 | ||||||
Contribution of security deposits and other liabilities (1) | $ | 457 | $ | — | $ | — | ||||||
Subscription receivable | $ | — | $ | — | $ | 1,248 | ||||||
Assumption of collateralized debt obligations | $ | — | $ | — | $ | 206,408 | ||||||
-1 | On December 31, 2014, the Company assumed direct financing leases and related assets and liabilities in satisfaction of a loan receivable - related party. |
RESTRICTED_CASH
RESTRICTED CASH | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Cash and Cash Equivalents [Abstract] | ||||||||
RESTRICTED CASH | NOTE 5 - RESTRICTED CASH | |||||||
The following summarizes the Company's restricted cash (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Restricted cash: | ||||||||
Consolidated securitizations | $ | 121,247 | $ | 61,372 | ||||
Restricted account at investment properties | — | 848 | ||||||
Restricted cash pledged with minimum reserve balance requirements | 209 | 318 | ||||||
Cash collateralizing outstanding margin calls on cash flow hedges | 500 | 500 | ||||||
Cash collateralizing outstanding margin calls on borrowings | — | 271 | ||||||
Cash collateralizing margin posted on forward/short positions | 182 | — | ||||||
$ | 122,138 | $ | 63,309 | |||||
INVESTMENT_SECURITIES_TRADING
INVESTMENT SECURITIES, TRADING | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||
INVESTMENT SECURITIES, TRADING | NOTE 6 - INVESTMENT SECURITIES, TRADING | |||||||||||||||
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 December 31, 2014: | ||||||||||||||||
Structured notes | $ | 22,876 | $ | 1,098 | $ | (3,188 | ) | $ | 20,786 | |||||||
RMBS | 1,896 | — | (1,896 | ) | — | |||||||||||
Total | $ | 24,772 | $ | 1,098 | $ | (5,084 | ) | $ | 20,786 | |||||||
As of December 31, 2013: | ||||||||||||||||
Structured notes | $ | 8,057 | $ | 4,050 | $ | (1,000 | ) | $ | 11,107 | |||||||
RMBS | 1,919 | — | (1,468 | ) | 451 | |||||||||||
Total | $ | 9,976 | $ | 4,050 | $ | (2,468 | ) | $ | 11,558 | |||||||
The Company purchased 38 securities and sold nine securities during the year ended December 31, 2014, for a net realized gain of $3.0 million. The Company held 37 and eight investment securities, trading as of December 31, 2014 and 2013, respectively. |
INVESTMENT_SECURITIES_AVAILABL
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Available-for-sale Securities [Abstract] | |||||||||||||||||||||||||||||||||
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | NOTE 7 - 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. | |||||||||||||||||||||||||||||||||
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 (1) | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||||||||||
CMBS | $ | 168,669 | $ | 4,938 | $ | (3,202 | ) | $ | 170,405 | ||||||||||||||||||||||||
RMBS | 29,814 | 937 | — | 30,751 | |||||||||||||||||||||||||||||
ABS | 55,617 | 16,876 | (336 | ) | 72,157 | ||||||||||||||||||||||||||||
Corporate Bonds | 2,415 | 10 | (18 | ) | 2,407 | ||||||||||||||||||||||||||||
Total | $ | 256,515 | $ | 22,761 | $ | (3,556 | ) | $ | 275,720 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
-1 | As of December 31, 2014 and 2013, $197.8 million and $162.6 million, respectively, of securities were pledged as collateral security under related financings. | ||||||||||||||||||||||||||||||||
The following table summarizes the estimated maturities of the Company’s CMBS, RMBS, ABS and corporate bonds according to their estimated weighted average life classifications (in thousands, except percentages): | |||||||||||||||||||||||||||||||||
Weighted Average Life | Fair Value | Amortized Cost | Weighted Average Coupon | ||||||||||||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||||||||||
Less than one year | $ | 78,095 | (1) | $ | 79,649 | 4.13% | |||||||||||||||||||||||||||
Greater than one year and less than five years | 115,302 | 100,909 | 4.64% | ||||||||||||||||||||||||||||||
Greater than five years and less than ten years | 20,177 | 17,516 | 16.45% | ||||||||||||||||||||||||||||||
Greater than ten years | 62,146 | 58,441 | 7.86% | ||||||||||||||||||||||||||||||
Total | $ | 275,720 | $ | 256,515 | 6.08% | ||||||||||||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||||||||||
Less than one year | $ | 39,256 | (1) | $ | 40,931 | 5.25% | |||||||||||||||||||||||||||
Greater than one year and less than five years | 139,700 | 141,760 | 4.69% | ||||||||||||||||||||||||||||||
Greater than five years and less than ten years | 26,526 | 25,707 | 1.10% | ||||||||||||||||||||||||||||||
Greater than ten years | 9,724 | 10,072 | 7.90% | ||||||||||||||||||||||||||||||
Total | $ | 215,206 | $ | 218,470 | 4.49% | ||||||||||||||||||||||||||||
(1) The Company expects that the maturity date of these CMBS will either be extended or the CMBS will be paid in full. | |||||||||||||||||||||||||||||||||
The contractual maturities of the CMBS investment securities available-for-sale range from January 2015 to December 2022. The contractual maturity date of the RMBS investment securities available-for-sale is June 2029. The contractual maturities of the ABS investment securities available-for-sale range from October 2016 to October 2050. The contractual maturities of the corporate bond investment securities available-for-sale range from May 2016 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 of | Fair | Unrealized Losses | Number of | Fair | Unrealized Losses | Number of | |||||||||||||||||||||||||
Value | Securities | Value | Securities | Value | Securities | ||||||||||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||||||||||
CMBS | $ | 35,860 | $ | (555 | ) | 22 | $ | 25,583 | $ | (2,647 | ) | 13 | $ | 61,443 | $ | (3,202 | ) | 35 | |||||||||||||||
ABS | 1,000 | (278 | ) | 8 | 958 | (58 | ) | 3 | 1,958 | (336 | ) | 11 | |||||||||||||||||||||
Corporate bonds | 1,447 | (18 | ) | 1 | — | — | — | 1,447 | (18 | ) | 1 | ||||||||||||||||||||||
Total temporarily | $ | 38,307 | $ | (851 | ) | 31 | $ | 26,541 | $ | (2,705 | ) | 16 | $ | 64,848 | $ | (3,556 | ) | 47 | |||||||||||||||
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. | |||||||||||||||||||||||||||||||||
During the years ended December 31, 2014 and 2013, the Company recognized other-than-temporary impairment losses of zero and $328,000, respectively, on positions that supported the Company’s CMBS investments. | |||||||||||||||||||||||||||||||||
The following table summarizes the Company's sales of investment securities available-for-sale during the period indicated (in thousands, except number of securities): | |||||||||||||||||||||||||||||||||
Positions | Par Amount Sold | Realized Gain (Loss) | |||||||||||||||||||||||||||||||
Sold | |||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2014: | |||||||||||||||||||||||||||||||||
CMBS position | 5 | $ | 27,370 | $ | 573 | ||||||||||||||||||||||||||||
ABS | 8 | $ | 11,574 | $ | 2,922 | ||||||||||||||||||||||||||||
For the Year Ended 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 year ended December 31, 2014, the Company had two corporate bond positions redeemed with a total par of $1.6 million, and recognized a gain of $48,000. During the year ended December 31, 2013, the Company had three corporate bond positions redeemed with a total par of $4.3 million, and recognized a loss of $11,000. | |||||||||||||||||||||||||||||||||
During the year ended December 31, 2014, the Company had one ABS position redeemed with a total par of $2.5 million, and recognized a gain of $25,500. During the year ended December 31, 2013 the Company had no ABS positions redeemed. The Company also had one ABS position with a total par value of $3.0 million liquidated during the year ended December 31, 2014, which resulted in a gain of $570,000. |
INVESTMENTS_IN_REAL_ESTATE
INVESTMENTS IN REAL ESTATE | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Real Estate [Abstract] | ||||||
INVESTMENTS IN REAL ESTATE | NOTE 8 - 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 year ended December 31, 2014, the Company made no acquisitions and sold its remaining three properties for a combined gain of $6.1 million, which is recorded on the consolidated statements of income in gain on sale of real estate. One of the properties was reclassified to property available-for-sale on the balance sheet as of December 31, 2013. | ||||||
During the year ended December 31, 2013, the Company made no acquisitions and sold one of its multi-family properties for a gain of $16.6 million, which was recorded in gain on sale of real estate on the Company's consolidated statements of income. |
LOANS_HELD_FOR_INVESTMENT
LOANS HELD FOR INVESTMENT | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
LOANS HELD FOR INVESTMENT [Abstract] | |||||||||||||||||
LOANS HELD FOR INVESTMENT | NOTE 9 - 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 December 31, 2014: | |||||||||||||||||
Commercial real estate loans: | |||||||||||||||||
Whole loans | $ | 1,271,121 | $ | (7,529 | ) | $ | 1,263,592 | ||||||||||
B notes | 16,120 | (48 | ) | 16,072 | |||||||||||||
Mezzanine loans | 67,446 | (80 | ) | 67,366 | |||||||||||||
Total commercial real estate loans | 1,354,687 | (7,657 | ) | 1,347,030 | |||||||||||||
Bank loans | 332,058 | (1,410 | ) | 330,648 | |||||||||||||
Middle market loans | 250,859 | (746 | ) | 250,113 | |||||||||||||
Residential mortgage loans, held for investment | 2,802 | — | 2,802 | ||||||||||||||
Subtotal loans before allowances | 1,940,406 | (9,813 | ) | 1,930,593 | |||||||||||||
Allowance for loan loss | (4,613 | ) | — | (4,613 | ) | ||||||||||||
Total loans net of allowances | 1,935,793 | (9,813 | ) | 1,925,980 | |||||||||||||
Bank loans held for sale | 282 | — | 282 | ||||||||||||||
Residential mortgage loans held for sale, at fair value (3) | 111,454 | — | 111,454 | ||||||||||||||
Total loans held for sale | 111,736 | — | 111,736 | ||||||||||||||
Total loans, net of allowance | $ | 2,047,529 | $ | (9,813 | ) | $ | 2,037,716 | ||||||||||
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 | 519,343 | (3,950 | ) | 515,393 | |||||||||||||
Middle market loans | 39,864 | (84 | ) | 39,780 | |||||||||||||
Residential mortgage loans, held for investment | 1,849 | — | 1,849 | ||||||||||||||
Subtotal loans before allowances | 1,390,844 | (7,511 | ) | 1,383,333 | |||||||||||||
Allowance for loan loss | (13,807 | ) | — | (13,807 | ) | ||||||||||||
Total loans net of allowances | 1,377,037 | (7,511 | ) | 1,369,526 | |||||||||||||
Bank loans held for sale | 2,377 | — | 2,377 | ||||||||||||||
Middle market loans held for sale | 4,473 | — | 4,473 | ||||||||||||||
Residential mortgage loans held for sale, at fair value (3) | 15,066 | — | 15,066 | ||||||||||||||
Total loans held for sale | 21,916 | — | 21,916 | ||||||||||||||
Total loans, net of allowances | $ | 1,398,953 | $ | (7,511 | ) | $ | 1,391,442 | ||||||||||
-1 | Amounts include deferred amendment fees of $88,000 and $216,000 and deferred upfront fees of $82,000 and $141,000 being amortized over the life of the bank loans as of December 31, 2014 and 2013, respectively. Amounts include loan origination fees of $7.6 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 December 31, 2014 and 2013, respectively. | ||||||||||||||||
-2 | Substantially all loans are pledged as collateral under various borrowings at December 31, 2014 and 2013, respectively. | ||||||||||||||||
-3 | Residential mortgage loans held for sale, at fair value was comprised of $28.9 million and $82.6 million of agency-conforming and jumbo mortgage loans, respectively, as of December 31, 2014. The portfolio consisted of $15.1 million and $0 million of agency-conforming and jumbo mortgage loans, respectively, as of December 31, 2013. | ||||||||||||||||
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 December 31, 2014: | |||||||||||||||||
Whole loans, floating rate (1) (4) (6) | 73 | $ | 1,263,592 | LIBOR plus 1.75% to | May 2015 to February 2019 | ||||||||||||
LIBOR plus 15.00% | |||||||||||||||||
B notes, fixed rate | 1 | 16,072 | 8.68% | Apr-16 | |||||||||||||
Mezzanine loans, floating rate | 1 | 12,558 | LIBOR plus 15.32% | Apr-16 | |||||||||||||
Mezzanine loans, fixed rate (7) | 3 | 54,808 | 0.50% to 18.71% | January 2016 to | |||||||||||||
Sep-19 | |||||||||||||||||
Total (2) | 78 | $ | 1,347,030 | ||||||||||||||
As of December 31, 2013: | |||||||||||||||||
Whole loans, floating rate (1) (5) (6) | 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 (7) | 3 | 51,862 | 0.50% to 18.72% | September 2014 to September 2019 | |||||||||||||
Total (2) | 56 | $ | 826,311 | ||||||||||||||
-1 | Whole loans had $105.1 million and $13.7 million in unfunded loan commitments as of December 31, 2014 and 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 December 31, 2014 and 2013, respectively. | ||||||||||||||||
-3 | Maturity dates do not include possible extension options that may be available to the borrowers. | ||||||||||||||||
-4 | Floating rate whole loans include a combined $12.0 million mezzanine component of two whole loans, which have a fixed rate of 12.0%, and a $4.2 million mezzanine component of two whole loans that have a fixed rate of 15.0% at December 31, 2014. | ||||||||||||||||
-5 | Floating rate whole loans include a combined $11.4 million mezzanine component of two whole loans, which have a fixed rate of 12.0% as of December 31, 2013. | ||||||||||||||||
-6 | Floating rate whole loans include a $799,000 junior mezzanine tranche of a whole loan that has a fixed rate of 10.0% as of December 31, 2014 and December 31, 2013. | ||||||||||||||||
-7 | Fixed rate mezzanine loans include a mezzanine loan that was modified into two tranches, which both currently pay interest at 0.50%. In addition, the subordinate tranche accrues interest at LIBOR plus 18.50% which is deferred until maturity. | ||||||||||||||||
The following is a summary of the weighted average life of the Company’s commercial real estate loans, at amortized cost (in thousands): | |||||||||||||||||
Description | 2015 | 2016 | 2017 and Thereafter | Total | |||||||||||||
As of December 31, 2014: | |||||||||||||||||
B notes | $ | — | $ | 16,072 | $ | — | $ | 16,072 | |||||||||
Mezzanine loans | — | 16,736 | 50,630 | 67,366 | |||||||||||||
Whole loans | — | 27,665 | 1,235,927 | 1,263,592 | |||||||||||||
Total (1) | $ | — | $ | 60,473 | $ | 1,286,557 | $ | 1,347,030 | |||||||||
As of December 31, 2013: | 2014 | 2015 | 2016 and Thereafter | Total | |||||||||||||
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. | ||||||||||||||||
At December 31, 2014, the Company’s bank loan portfolio consisted of $330.4 million (net of allowance of $570,000) of floating rate loans, which bear interest ranging between the three month London Interbank Offered Rate (“LIBOR”) plus 1.25% and the three month LIBOR plus 8.75% with maturity dates ranging from January 2015 to February 2024. | |||||||||||||||||
At December 31, 2013, the Company’s bank loan portfolio consisted of $514.4 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 life of the Company’s bank loans loans, at amortized cost (in thousands): | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Less than one year | $ | 7,829 | $ | 36,985 | |||||||||||||
Greater than one year and less than five years | 274,332 | 366,848 | |||||||||||||||
Five years or greater | 48,769 | 113,937 | |||||||||||||||
$ | 330,930 | $ | 517,770 | ||||||||||||||
At December 31, 2014, the Company’s middle market loan portfolio consisted of $250.1 million of floating rate loans, which bear interest ranging between the one or three month LIBOR plus 5.5% and the one or three month LIBOR plus 9.25% with maturity dates ranging from December 2016 to November 2022. | |||||||||||||||||
At December 31, 2013, the Company’s middle market loan portfolio consisted of $44.3 million of floating rate loans, which bear interest ranging between the one or three month LIBOR plus 3.75%, and the one or three month LIBOR plus 10.5% with maturity dates ranging from October 2018 to December 2021. | |||||||||||||||||
The following is a summary of the weighted average life of the Company’s middle market loans, at amortized cost (in thousands): | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Less than one year | $ | — | $ | — | |||||||||||||
Greater than one year and less than five years | 132,353 | 13,027 | |||||||||||||||
Five years or greater | 117,760 | 31,226 | |||||||||||||||
$ | 250,113 | $ | 44,253 | ||||||||||||||
The following is a summary of the allocation of the allowance for loan loss with respect to the Company’s commercial real estate and bank loans (in thousands, except percentages) by asset class: | |||||||||||||||||
Description | Allowance for | Percentage of Total Allowance | |||||||||||||||
Loan Loss | |||||||||||||||||
As of December 31, 2014: | |||||||||||||||||
B notes | $ | 55 | 1.19% | ||||||||||||||
Mezzanine loans | 230 | 4.99% | |||||||||||||||
Whole loans | 3,758 | 81.47% | |||||||||||||||
Bank loans | 570 | 12.36% | |||||||||||||||
Total | $ | 4,613 | |||||||||||||||
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 December 31, 2014, the Company had recorded an allowance for loan losses of $4.6 million consisting of a $570,000 allowance on the Company’s bank loan portfolio and a $4.0 million allowance on the Company’s commercial real estate portfolio. There was no allowance on the Company’s middle market loan portfolio. The fair value option was elected for the Company’s residential mortgage loan portfolio and therefore, no allowance for loan losses is required. | |||||||||||||||||
As of December 31, 2013, the Company had recorded an allowance for loan losses of $13.8 million consisting of a $3.4 million allowance on the Company’s bank loan portfolio, a $10.4 million allowance on the Company’s commercial real estate portfolio. There was no allowance on the Company’s middle market loan portfolio. | |||||||||||||||||
Principal paydown receivables represent the portion of the Company's loan portfolio for which indication has been provided through its various servicers, trustees, or its asset management group that a payoff or paydown of a loan has been received but for which, as of period end, the Company has not received and applied such cash to the outstanding loan balance. At December 31, 2014, principal paydown receivables totaled $40.9 million, the entirety of which the Company received in cash during January 2015. | |||||||||||||||||
At December 31, 2014 and 2013, approximately 27.4% and 39.0%, respectively, of the Company’s commercial real estate loan portfolio was concentrated in commercial real estate loans located in California; approximately 7.3% and 6.4%, respectively, in Arizona, and approximately 27.3% and 14.6%, respectively, in Texas. At December 31, 2014 and 2013, approximately 17.5% and 15.8%, of the Company’s bank loan portfolio was concentrated in the collective industry grouping of healthcare, education and childcare. At December 31, 2014 approximately 13.7% of the Company’s middle market loan portfolio was concentrated in the collective industry grouping of personal, food and miscellaneous service. At December 31, 2013 approximately 23.1% of the Company's middle market loan portfolio was concentrated in hotels, motels, inns, and gaming. During the year ended December 31, 2014, approximately 56.0% of the Company's residential mortgage loans were originated in Georgia, 8.0% in Utah, 7.0% in Virginia, 5.0% in Alabama, and 4.0% in Tennessee. During the year ended December 31, 2013, approximately 66.0% of the Company's residential mortgage loans were originated in Georgia, 9.0% in North Carolina, 7.0% in Tennessee and Virginia and 6.0% in Alabama. |
INVESTMENTS_IN_UNCONSOLIDATED_
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||
INVESTMENTS IN UNCONSOLIDATED ENTITIES | NOTE 10 - INVESTMENTS IN UNCONSOLIDATED ENTITIES | |||||||||||||||||||||
The following table shows the Company's investments in unconsolidated entities as of 2014 and 2013 and equity in net earnings (losses) of unconsolidated subsidiaries for the years ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||||||||||||||||
Balance as of | Years Ended December 31, | |||||||||||||||||||||
Ownership % | December 31, | December 31, | 2014 | 2013 | 2012 | |||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Varde Investment Partners, L.P | 7.50% | $ | 654 | $ | 674 | $ | (20 | ) | $ | 148 | $ | (135 | ) | |||||||||
RRE VIP Borrower, LLC (1) | — | — | 3,473 | 277 | 682 | |||||||||||||||||
Investment in LCC Preferred Stock | 28.40% | 39,416 | 41,016 | (1,555 | ) | (183 | ) | (3,256 | ) | |||||||||||||
Investment in CVC Global Credit Opportunities Fund | 27.70% | 18,209 | 16,177 | 2,032 | 1,177 | — | ||||||||||||||||
Investment in | 50.20% | — | 1,530 | (75 | ) | (470 | ) | — | ||||||||||||||
Life Care Funding (2) | ||||||||||||||||||||||
Investment in School Lane House (1) | — | 975 | 912 | — | — | |||||||||||||||||
58,279 | 60,372 | 4,767 | 949 | (2,709 | ) | |||||||||||||||||
Investment in RCT I and II (3) | 3% | 1,548 | 1,548 | 2,387 | 2,401 | 2,494 | ||||||||||||||||
Investment in Preferred Equity (1) (4) | — | 7,149 | 410 | 992 | 705 | |||||||||||||||||
$ | 59,827 | $ | 69,069 | $ | 7,564 | $ | 4,342 | $ | 490 | |||||||||||||
-1 | Investment in School Lane House, Investment in RRE VIP Borrower and the Investments in preferred equity were sold as of December 31, 2014. | |||||||||||||||||||||
-2 | The Company began consolidating this investment during the first quarter of 2014. Ownership % represents ownership after consolidation. | |||||||||||||||||||||
-3 | For the years ended December 31, 2014, 2013, and 2012 these amounts are recorded in interest expense on the Company's consolidated statements of income. | |||||||||||||||||||||
-4 | For the years ended December 31, 2014, 2013 and 2012 these amounts are recorded in interest income on loans on the Company's consolidated statements of income. | |||||||||||||||||||||
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 | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||
FINANCING RECEIVABLES | NOTE 11 - 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 | Middle Market Loans | Residential Mortgage Loans | Loans Receivable-Related Party | Total | |||||||||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||||
Allowance for losses at January 1, 2014 | $ | 10,416 | $ | 3,391 | $ | — | $ | — | $ | — | $ | 13,807 | ||||||||||||||||
Provision (recovery) for loan loss | (3,758 | ) | 4,173 | 92 | — | 1,297 | 1,804 | |||||||||||||||||||||
Loans charged-off | (2,615 | ) | (6,994 | ) | (92 | ) | — | (1,297 | ) | (10,998 | ) | |||||||||||||||||
Allowance for losses at December 31, 2014 | $ | 4,043 | $ | 570 | $ | — | $ | — | $ | — | $ | 4,613 | ||||||||||||||||
Ending balance: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 570 | $ | — | $ | — | $ | — | $ | 570 | ||||||||||||||||
Collectively evaluated for impairment | $ | 4,043 | $ | — | $ | — | $ | — | $ | — | $ | 4,043 | ||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Ending balance: (1) | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 166,180 | $ | 1,350 | $ | 250,113 | $ | — | $ | 1,277 | $ | 418,920 | ||||||||||||||||
Collectively evaluated for impairment | $ | 1,180,850 | $ | 329,580 | $ | — | $ | 2,802 | $ | — | $ | 1,513,232 | ||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||||
Allowance for losses at January 1, 2013 | $ | 7,986 | $ | 9,705 | $ | — | $ | — | $ | — | $ | 17,691 | ||||||||||||||||
Provision for loan loss | 2,686 | 312 | 22 | — | — | 3,020 | ||||||||||||||||||||||
Loans charged-off | (256 | ) | (6,626 | ) | (22 | ) | — | — | (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: (1) | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 194,403 | $ | 3,554 | $ | — | $ | — | $ | 6,966 | $ | 204,923 | ||||||||||||||||
Collectively evaluated for impairment | $ | 631,908 | $ | 558,469 | (2) | $ | — | $ | 16,915 | $ | — | $ | 1,207,292 | |||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
(1) Loan balances as of December 31, 2014 and 2013 include loans held for sale. | ||||||||||||||||||||||||||||
(2) Includes $44.3 million of middle market loans at December 31, 2013. | ||||||||||||||||||||||||||||
Credit quality indicators | ||||||||||||||||||||||||||||
Bank Loans | ||||||||||||||||||||||||||||
The Company uses a risk grading matrix to assign grades to bank loans. Loans are graded at inception and updates to assigned grades are made continually as new information is received. Loans are graded on a scale of 1-5 with 1 representing the Company’s highest rating and 5 representing its lowest rating. The Company also designates loans that are sold after the period end as held for sale at the lower of their fair market value or cost, net of any allowances and costs associated with the loan sales. The Company considers metrics such as performance of the underlying company, liquidity, collectability of interest, enterprise valuation, default probability, ratings from rating agencies and industry dynamics in grading its bank loans. | ||||||||||||||||||||||||||||
Credit risk profiles of bank and middle market loans were as follows (in thousands): | ||||||||||||||||||||||||||||
Rating 1 | Rating 2 | Rating 3 | Rating 4 | Rating 5 | Held for Sale | Total | ||||||||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||||||||
Bank loans | $ | 291,214 | $ | 32,660 | $ | 5,424 | $ | — | $ | 1,350 | $ | 282 | $ | 330,930 | ||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||||||
Bank loans | $ | 448,224 | $ | 42,476 | $ | 18,806 | $ | 2,333 | $ | 3,554 | $ | 2,377 | $ | 517,770 | ||||||||||||||
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 December 31, 2014, one of which defaulted as of March 31, 2014 and the other defaulted 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 in 2012, one of which defaulted as of March 31, 2013 and one of which defaulted as of June 30, 2013. | ||||||||||||||||||||||||||||
Middle Market Loans | ||||||||||||||||||||||||||||
The Company uses a risk grading matrix to assign grades to middle market loans. At inception, all middle market loans are graded at a 2 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. A loan with a rating of a 2 is considered performing within expectations. The Company considers metrics such as performance of the underlying company, liquidity, collectability of interest and principal payments, enterprise valuation, default probability, and industry dynamics in grading its middle market loans. | ||||||||||||||||||||||||||||
Credit risk profiles of bank and middle market loans were as follows (in thousands): | ||||||||||||||||||||||||||||
Rating 1 | Rating 2 | Rating 3 | Rating 4 | Rating 5 | Held for Sale | Total | ||||||||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||||||||
Middle market loans | $ | — | $ | 240,245 | $ | 9,868 | $ | — | $ | — | $ | — | $ | 250,113 | ||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||||||
Middle market loans | $ | — | $ | 39,780 | $ | — | $ | — | $ | — | $ | 4,473 | $ | 44,253 | ||||||||||||||
All of the Company’s middle market loans were performing as of December 31, 2014 and 2013. | ||||||||||||||||||||||||||||
Commercial Real Estate Loans | ||||||||||||||||||||||||||||
The Company uses a risk grading matrix to assign grades to commercial real estate loans. Loans are graded at inception and updates to assigned grades are made continually as new information is received. Loans are graded on a scale of 1-4 with 1 representing the Company’s highest rating and 4 representing its lowest rating. The Company also designates loans that are sold after the period ends at the lower of their fair market value or cost, net of any allowances and costs associated with the loan sales. In addition to the underlying performance of the loan collateral, the Company considers metrics such as the strength of underlying sponsorship, payment history, collectability of interest, structural credit enhancements, market trends and loan terms in grading its commercial real estate loans. | ||||||||||||||||||||||||||||
Credit risk profiles of commercial real estate loans were as follows (in thousands): | ||||||||||||||||||||||||||||
Rating 1 | Rating 2 | Rating 3 | Rating 4 | Held for Sale | Total | |||||||||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||||||||
Whole loans | $ | 1,231,092 | $ | 32,500 | $ | — | $ | — | $ | — | $ | 1,263,592 | ||||||||||||||||
B notes | 16,072 | — | — | — | — | 16,072 | ||||||||||||||||||||||
Mezzanine loans | 45,432 | 21,934 | — | — | — | 67,366 | ||||||||||||||||||||||
$ | 1,292,596 | $ | 54,434 | $ | — | $ | — | $ | — | $ | 1,347,030 | |||||||||||||||||
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 performing as of December 31, 2014 and 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. | ||||||||||||||||||||||||||||
Loans Receivable - Related Party | ||||||||||||||||||||||||||||
During the year ended December 31, 2014, the Company recorded a provision for loan losses on one related party loan of $1.3 million before extinguishing the loan and bringing direct financing leases in the amount of $2.1 million on the Company's books in lieu of the loan receivable. | ||||||||||||||||||||||||||||
Loan Portfolios Aging Analysis | ||||||||||||||||||||||||||||
The following table shows the loan portfolio aging analysis as of the dates indicated at amortized cost (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 December 31, 2014: | ||||||||||||||||||||||||||||
Whole loans | $ | — | $ | — | $ | — | $ | — | $ | 1,263,592 | $ | 1,263,592 | $ | — | ||||||||||||||
B notes | — | — | — | — | 16,072 | 16,072 | — | |||||||||||||||||||||
Mezzanine loans | — | — | — | — | 67,366 | 67,366 | — | |||||||||||||||||||||
Bank loans (1) | — | — | 1,350 | 1,350 | 329,580 | 330,930 | — | |||||||||||||||||||||
Middle market loans (3) | — | — | — | — | 250,113 | 250,113 | — | |||||||||||||||||||||
Residential mortgage loans (2) | 443 | 82 | 119 | 644 | 113,612 | 114,256 | — | |||||||||||||||||||||
Loans receivable- related party | — | — | — | — | 1,277 | 1,277 | — | |||||||||||||||||||||
Total loans | $ | 443 | $ | 82 | $ | 1,469 | $ | 1,994 | $ | 2,041,612 | $ | 2,043,606 | $ | — | ||||||||||||||
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 (1) | — | — | 3,554 | 3,554 | 514,216 | 517,770 | — | |||||||||||||||||||||
Middle market loans (3) | — | — | — | — | 44,253 | 44,253 | — | |||||||||||||||||||||
Residential mortgage loans (2) | 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 $282,000 and $2.4 million of bank loans held for sale at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||
-2 | Contains $111.5 million and $15.1 million of residential mortgage loans held for sale at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||
-3 | Contains $0 and $4.5 million of middle market loans held for sale at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||||||
The following tables show impaired loans as of the dates indicated (in thousands): | ||||||||||||||||||||||||||||
Recorded Balance | Unpaid Principal Balance | Specific Allowance | Average Investment in Impaired Loans | Interest Income Recognized | ||||||||||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||||||||
Loans without a specific valuation allowance: | ||||||||||||||||||||||||||||
Whole loans | $ | 128,108 | $ | 128,108 | $ | — | $ | 130,445 | $ | 12,679 | ||||||||||||||||||
B notes | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mezzanine loans | $ | 38,072 | $ | 38,072 | $ | — | $ | 38,072 | $ | 2,859 | ||||||||||||||||||
Bank loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Middle market loans | ||||||||||||||||||||||||||||
Residential mortgage loans | $ | 2,082 | $ | 2,082 | $ | — | $ | 2,082 | $ | 148 | ||||||||||||||||||
Loans receivable - related party | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans with a specific valuation allowance: | ||||||||||||||||||||||||||||
Whole loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
B notes | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mezzanine loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Bank loans | $ | 1,350 | $ | 1,350 | $ | (570 | ) | $ | — | $ | — | |||||||||||||||||
Middle market loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Residential mortgage loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans receivable - related party | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Total: | ||||||||||||||||||||||||||||
Whole loans | $ | 128,108 | $ | 128,108 | $ | — | $ | 130,445 | $ | 12,679 | ||||||||||||||||||
B notes | — | — | — | — | — | |||||||||||||||||||||||
Mezzanine loans | 38,072 | 38,072 | — | 38,072 | 2,859 | |||||||||||||||||||||||
Bank loans | 1,350 | 1,350 | (570 | ) | — | — | ||||||||||||||||||||||
Middle market loans | — | — | — | — | — | |||||||||||||||||||||||
Residential mortgage loans | 2,082 | 2,082 | — | 2,082 | 148 | |||||||||||||||||||||||
Loans receivable - related party | — | — | — | — | — | |||||||||||||||||||||||
$ | 169,612 | $ | 169,612 | $ | (570 | ) | $ | 170,599 | $ | 15,686 | ||||||||||||||||||
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 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Middle market loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Residential mortgage loans | $ | 315 | $ | 268 | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans receivable - related party | $ | 5,733 | $ | 5,733 | $ | — | $ | — | $ | — | ||||||||||||||||||
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 | ) | $ | — | $ | — | |||||||||||||||||
Middle market loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
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 | ) | — | — | ||||||||||||||||||||||
Middle market loans | — | — | — | — | — | |||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
Year Ended December 31, 2014: | ||||||||||||||||||||||||||||
Whole loans | 3 | $ | 99,739 | $ | 99,739 | |||||||||||||||||||||||
B notes | — | — | — | |||||||||||||||||||||||||
Mezzanine loans | 1 | 38,072 | 38,072 | |||||||||||||||||||||||||
Bank loans | — | — | — | |||||||||||||||||||||||||
Middle market loans | — | — | — | |||||||||||||||||||||||||
Residential mortgage loans | — | — | — | |||||||||||||||||||||||||
Loans receivable - related party | — | — | — | |||||||||||||||||||||||||
Total loans | 4 | $ | 137,811 | $ | 137,811 | |||||||||||||||||||||||
Year Ended December 31, 2013: | ||||||||||||||||||||||||||||
Whole loans | 5 | $ | 143,484 | $ | 147,826 | |||||||||||||||||||||||
B notes | — | — | — | |||||||||||||||||||||||||
Mezzanine loans | — | — | — | |||||||||||||||||||||||||
Bank loans | — | — | — | |||||||||||||||||||||||||
Middle market loans | — | — | — | |||||||||||||||||||||||||
Loans receivable - related party | 1 | 6,592 | 6,592 | |||||||||||||||||||||||||
Total loans | 6 | $ | 150,076 | $ | 154,418 | |||||||||||||||||||||||
As of December 31, 2014 and 2013, there were no commercial real estate loan troubled-debt restructurings that subsequently defaulted. On December 31, 2014, the loan receivable - related party was extinguished and the underlying collateral was assigned to the Company. During the year ended December 31, 2014, the Company recorded $1.3 million in total write-downs on the loan. |
BUSINESS_COMBINATION
BUSINESS COMBINATION | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Business Combinations [Abstract] | ||||
BUSINESS COMBINATION | NOTE 12 - 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 grants for employees of PCM are accounted for as compensation and 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 are recorded as a distribution. For the years ended December 31, 2014 and 2013, $634,000 and $106,000 of amortization of the stock grants were recorded to equity compensation expense on the Company's consolidated statements of income and $189,000 and $48,000 of expense related to dividends on unvested shares was recorded to general and administrative expenses on the Company’s consolidated statements of income. | ||||
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 was 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 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 we do not anticipate further material purchase price adjustments for LCF, 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. |
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
INTANGIBLE ASSETS | NOTE 13 - INTANGIBLE ASSETS | |||||||||||
The Company recorded amortization expense on intangible assets of $2.1 million for the year ended December 31, 2014, and expects to record amortization expense on intangible assets of approximately $2.0 million for the year ended December 31, 2015, $1.8 million for the years ended December 31, 2016 and 2017, $1.6 million for the year ended December 31, 2018, and $1.0 million for the year ended December 31, 2019. The weighted average amortization period was 6.6 years and 7.7 years at December 31, 2014 and 2013, respectively. | ||||||||||||
The following table summarizes intangible assets at December 31, 2014 and 2013 (in thousands). | ||||||||||||
Beginning Balance | Accumulated Amortization | Net Asset | ||||||||||
As of December 31, 2014: | ||||||||||||
Investment in RCAM | $ | 21,213 | $ | (11,779 | ) | $ | 9,434 | |||||
Investments in PCM: | ||||||||||||
Wholesale or correspondent relationships | 600 | (298 | ) | 302 | ||||||||
Total intangible assets | $ | 21,813 | $ | (12,077 | ) | $ | 9,736 | |||||
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 | ) | — | ||||||||
Investments in PCM: | ||||||||||||
Wholesale or correspondent relationships | 600 | (42 | ) | 558 | ||||||||
Total intangible assets | $ | 24,303 | $ | (12,481 | ) | $ | 11,822 | |||||
For the years ended December 31, 2014, 2013, and 2012, the Company recognized $5.1 million, $5.3 million, and $7.0 million, respectively, of fee income related to the investment in RCAM. | ||||||||||||
Mortgage Servicing Rights | ||||||||||||
Through the Company's wholly-owned residential mortgage originator PCM, residential mortgage loans are sold through one of the following methods: (i) sales to or pursuant to programs sponsored by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and Government National Mortgage Association, or (ii) sales to private investors. The Company may have continuing involvement in mortgage loans sold by retaining servicing rights and servicing obligations. | ||||||||||||
The total servicing portfolio consists of loans associated with capitalized mortgage servicing rights (“MSRs”) and loans held for sale. The total servicing portfolio was $894.8 million as of December 31, 2014. MSRs recorded in the Company's consolidated balance sheets are related to the capitalized servicing portfolio and are created through the sale of originated loans. | ||||||||||||
The activity in the loan servicing portfolio associated with capitalized servicing rights consisted of (in thousands): | ||||||||||||
Year Ended | ||||||||||||
December 31, 2014 | ||||||||||||
Balance, beginning of Period | $ | 433,153 | ||||||||||
Additions | 519,915 | |||||||||||
Payoffs, sales and curtailments | (58,301 | ) | ||||||||||
Balance, end of period | $ | 894,767 | ||||||||||
The activity in capitalized MSRs is recorded in other assets and consists of the followings (in thousands): | ||||||||||||
Year Ended | ||||||||||||
December 31, 2014 | ||||||||||||
Balance, beginning of Period | $ | 4,885 | ||||||||||
Additions | 6,446 | |||||||||||
Sales | — | |||||||||||
Balance, end of period | $ | 11,331 | ||||||||||
Accumulated amortization | (2,457 | ) | ||||||||||
Balance, end of period | $ | 8,874 | ||||||||||
For the year ended December 31, 2014, the Company recognized $1.6 million in amortization. The Company expects to recognize $2.0 million for the year ended 2015, $2.0 million for the year ended 2016, $1.8 million for the year ended December 31, 2017, $1.7 million for the year ended December 31, 2018, and $1.1 million for the year ended December 31, 2019, in amortization related to its mortgage servicing rights portfolio. | ||||||||||||
The value of MSRs is driven by the net positive, or in some cases net negative, cash flows associated with servicing activities. These cash flows include contractually specified servicing fees, late fees and other ancillary servicing revenue and were recorded within Other income as follows (in thousands): | ||||||||||||
Year Ended | ||||||||||||
December 31, 2014 | ||||||||||||
Servicing fees from capitalized portfolio | $ | 1,649 | ||||||||||
Late Fees | $ | 81 | ||||||||||
Other ancillary servicing revenue | $ | 6 | ||||||||||
BORROWINGS
BORROWINGS | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||
BORROWINGS | NOTE 14 - BORROWINGS | |||||||||||||||||||||||
The Company historically has financed the acquisition of its investments, including investment securities, loan and lease receivables, through the use of secured and unsecured borrowings in the form of CDOs, securitized notes, repurchase agreements, secured term facilities, warehouse facilities and trust preferred securities issuances. Certain information with respect to the Company’s borrowings at December 31, 2014 and 2013 is summarized in the following table (in thousands, except percentages): | ||||||||||||||||||||||||
Principal Outstanding | Unamortized | Outstanding Borrowings | Weighted Average | Weighted Average | Value of | |||||||||||||||||||
Issuance Costs | Borrowing Rate | Remaining | Collateral | |||||||||||||||||||||
and Discounts | Maturity | |||||||||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||||
RREF CDO 2006-1 Senior Notes | $ | 61,423 | $ | — | $ | 61,423 | 2.12% | 31.6 years | $ | 139,242 | ||||||||||||||
RREF CDO 2007-1 Senior Notes | 130,340 | 133 | 130,207 | 1.19% | 31.8 years | 271,423 | ||||||||||||||||||
RCC CRE Notes 2013 Senior Notes | 226,840 | 2,683 | 224,157 | 2.11% | 14.0 years | 249,983 | ||||||||||||||||||
RCC CRE 2014 Senior Notes | 235,344 | 3,687 | 231,657 | 1.45% | 17.3 years | 346,585 | ||||||||||||||||||
Apidos CDO III Senior Notes | 74,646 | — | 74,646 | 1.18% | 5.7 years | 85,553 | ||||||||||||||||||
Apidos Cinco CDO Senior Notes | 255,664 | 201 | 255,463 | 0.81% | 5.4 years | 272,512 | ||||||||||||||||||
Moselle CLO Senior Notes, at fair value (7) | 63,321 | — | 63,321 | 1.49% | 5.0 years | 93,576 | ||||||||||||||||||
Moselle CLO Securitized Borrowings, at fair value (1) | 5,619 | — | 5,619 | 1.49% | 5.0 years | — | ||||||||||||||||||
Unsecured Junior Subordinated Debentures (2) | 51,548 | 343 | 51,205 | 4.19% | 21.8 years | — | ||||||||||||||||||
6.0% Convertible Senior Notes | 115,000 | 6,626 | 108,374 | 6.00% | 3.9 years | — | ||||||||||||||||||
CRE - Term Repurchase Facilities (3) | 207,640 | 1,958 | 205,682 | 2.43% | 20 days | 297,571 | ||||||||||||||||||
CMBS - Term Repurchase Facility (4) | 24,967 | — | 24,967 | 1.35% | 20 days | 30,180 | ||||||||||||||||||
RMBS - Term Repurchase Facility (6) | 22,248 | 36 | 22,212 | 1.16% | 1 day | 27,885 | ||||||||||||||||||
Residential Mortgage Financing Agreements | 102,576 | — | 102,576 | 2.78% | 207 days | 147,472 | ||||||||||||||||||
CMBS - Short Term Repurchase Agreements (5) | 44,225 | — | 44,225 | 1.63% | 17 days | 62,446 | ||||||||||||||||||
Senior Secured Revolving Credit Agreement (8) | 113,500 | 2,363 | 111,137 | 2.66% | 2.7 years | 262,687 | ||||||||||||||||||
Total | $ | 1,734,901 | $ | 18,030 | $ | 1,716,871 | 2.09% | 10.0 years | $ | 2,287,115 | ||||||||||||||
Principal Outstanding | Unamortized | Outstanding Borrowings | Weighted Average | Weighted Average | Value of | |||||||||||||||||||
Issuance Costs | Borrowing Rate | Remaining | Collateral | |||||||||||||||||||||
and Discounts | Maturity | |||||||||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||
RREF CDO 2006-1 Senior Notes | $ | 94,209 | $ | 205 | $ | 94,004 | 1.87% | 32.6 years | $ | 169,115 | ||||||||||||||
RREF CDO 2007-1 Senior Notes | 178,556 | 719 | 177,837 | 0.84% | 32.8 years | 318,933 | ||||||||||||||||||
RCC CRE Notes 2013 Senior Notes | 260,840 | 4,269 | 256,571 | 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 | 133,326 | 117 | 133,209 | 0.88% | 6.7 years | 145,930 | ||||||||||||||||||
Apidos Cinco CDO Senior Notes | 322,000 | 853 | 321,147 | 0.74% | 6.4 years | 342,796 | ||||||||||||||||||
Whitney CLO I Securitized | 440 | — | 440 | —% | N/A | 885 | ||||||||||||||||||
Borrowings (1) | ||||||||||||||||||||||||
Unsecured Junior | 51,548 | 543 | 51,005 | 4.19% | 22.8 years | — | ||||||||||||||||||
Subordinated Debentures (2) | ||||||||||||||||||||||||
6.0% Convertible Senior Notes | 115,000 | 8,465 | 106,535 | 6.00% | 4.9 years | — | ||||||||||||||||||
CRE - Term Repurchase Facilities (3) | 30,736 | 1,033 | 29,703 | 2.67% | 21 days | 48,186 | ||||||||||||||||||
CMBS - Term Repurchase Facility (4) | 47,613 | 12 | 47,601 | 1.38% | 21 days | 56,949 | ||||||||||||||||||
Residential Mortgage Financing Agreements | 14,627 | — | 14,627 | 4.24% | 56 days | 16,487 | ||||||||||||||||||
Total | $ | 1,336,026 | $ | 16,216 | $ | 1,319,810 | 1.87% | 13.1 years | $ | 1,508,603 | ||||||||||||||
-1 | The securitized borrowings were collateralized by the same assets as the Moselle CLO Senior Notes and the Whitney CLO I Senior Notes. | |||||||||||||||||||||||
-2 | Amount represents junior subordinated debentures issued to RCT I and RCT II in May 2006 and September 2006, respectively. | |||||||||||||||||||||||
-3 | Amount also includes accrued interest expense of $198,000 and $26,000 related to CRE repurchase facilities as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||
-4 | Amounts also include accrued interest expense of $12,000 and $22,000 related to CMBS repurchase facilities as of December 31, 2014 and 2013, respectively. Amount does not reflect CMBS repurchase agreement borrowings that are components of linked transactions. | |||||||||||||||||||||||
-5 | Amount also includes accrued interest expense of $31,000 related to CMBS short term repurchase facilities as of December 31, 2014. | |||||||||||||||||||||||
-6 | Amount also includes accrued interest expense of $20,000 related to RMBS repurchase facilities as of December 31, 2014. | |||||||||||||||||||||||
-7 | 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 $63.3 million at December 31, 2014. Unpaid principal does not include subordinated notes with a fair value of $27.8 million that are owned by the Company and eliminate in consolidation. | |||||||||||||||||||||||
-8 | Value of collateral includes$14.9 million of principal receivable at December 31, 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 December 31, 2014 | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
RREF CDO 2006-1 Senior Notes | Aug-06 | Aug-46 | Sep-11 | $ | 165.6 | |||||||||||||||||||
RREF CDO 2007-1 Senior Notes | Jun-07 | Sep-46 | Jun-12 | $ | 151.7 | |||||||||||||||||||
RCC CRE Notes 2013 Senior Notes | Dec-13 | Dec-28 | N/A | $ | 34 | |||||||||||||||||||
RCC CRE 2014 Senior Notes | Jul-14 | Apr-32 | N/A | $ | — | |||||||||||||||||||
Apidos CDO III Senior Notes | May-06 | Sep-20 | Jun-12 | $ | 187.9 | |||||||||||||||||||
Apidos Cinco CDO Senior Notes | May-07 | May-20 | May-14 | $ | 66.3 | |||||||||||||||||||
Moselle CLO S.A. Senior Notes | Oct-05 | Jan-20 | Jan-12 | $ | 100.3 | |||||||||||||||||||
Moselle CLO S.A. Securitized Borrowings | Oct-05 | Jan-20 | Jan-12 | $ | — | |||||||||||||||||||
In October 2014, Apidos CDO I was called and substantially all of the assets were sold. Total proceeds from the sale of these assets, plus proceeds from previous sales and paydowns in the CLO were used to pay down the remaining $321.5 million of the senior notes. | ||||||||||||||||||||||||
During the fourth quarter of 2014, Moselle CLO S.A. was called and liquidated, and as a result, all of the assets were sold. | ||||||||||||||||||||||||
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 December 31, 2014 eliminate in consolidation. | ||||||||||||||||||||||||
RCC CRE Notes 2013 | ||||||||||||||||||||||||
In December 2013, the Company closed RCC CRE Notes 2013, a $307.8 million CRE securitization transaction that provided financing for transitional commercial real estate loans. RCC CRE Notes 2013 issued a total of $260.8 million of senior notes at par to unrelated investors. RCC Real Estate purchased 100% of the Class D senior notes (rated BBB:DBRS), class E senior notes (rated BB:DBRS) and class F senior notes (rated B:DBRS) for $30.0 million. In addition, Resource Real Estate Funding 2013 Notes Investor, LLC, a subsidiary of RCC Real Estate, purchased a $16.9 million equity interest representing 100% of the outstanding preference shares. The senior notes purchased by RCC Real Estate are subordinated in right of payment to all other senior notes issued by RCC CRE Notes 2013 but are senior in right of payment to the preference shares. The equity interest is subordinated in right of payment to all other securities issued by RCC CRE Notes 2013. | ||||||||||||||||||||||||
At closing, the senior notes issued to investors by RCC CRE Notes 2013 consisted of the following classes: (i) $136.9 million of Class A notes bearing interest at one-month LIBOR plus 1.30%; (ii) $78.5 million of Class A-S notes bearing interest at one-month LIBOR plus 2.15%; (iii) $30.8 million of Class B notes bearing interest at one-month LIBOR plus 2.85%; (iv) $14.6 million of Class C notes bearing interest at one-month LIBOR plus 3.50%; (v) $13.8 million of Class D notes bearing interest at one-month LIBOR plus 4.50%; (vi) $9.2 million of Class E notes bearing interest at one-month LIBOR plus 5.50%; (vii) and $6.9 million of Class F notes bearing interest at one-month LIBOR plus 6.50%. All of the notes issued mature in December 2028, although the Company has the right to call the notes anytime after January 2016 until maturity. | ||||||||||||||||||||||||
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. RCC CRE 2014 issued a total of $253.3 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. | ||||||||||||||||||||||||
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 1.45% at December 31, 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 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 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%. | ||||||||||||||||||||||||
The Company had the right to call the notes anytime after January 6, 2010 until maturity and in November 2014, the Company exercised this right and substantially liquidated the securitization's assets. | ||||||||||||||||||||||||
Resource Real Estate Funding CDO 2007-1 | ||||||||||||||||||||||||
In June 2007, the Company closed RREF CDO 2007-1, a $500.0 million CDO transaction that provided financing for commercial real estate loans and commercial mortgage-backed securities. RREF CDO 2007-1 issued a total of $265.6 million of senior notes at par to unrelated investors. RCC Real Estate purchased 100% of the Class H senior notes (rated BBB+:Fitch), Class K senior notes (rated BBB-:Fitch), Class L senior notes (rated BB:Fitch) and Class M senior notes (rated B: Fitch) for $68.0 million. In addition, Resource Real Estate Funding 2007-1 CDO Investor, LLC, a subsidiary of RCC Real Estate, purchased a $41.3 million equity interest representing 100% of the outstanding preference shares. The senior notes purchased by RCC Real Estate are subordinated in right of payment to all other senior notes issued by RREF CDO 2007-1 but are senior in right of payment to the preference shares. The equity interest is subordinated in right of payment to all other securities issued by RREF CDO 2007-1. | ||||||||||||||||||||||||
At closing, the senior notes issued to investors by RREF CDO 2007-1 consisted of the following classes: (i) $180.0 million of Class A-1 notes bearing interest at one-month LIBOR plus 0.28%; (ii) $50.0 million of unissued Class A-1R notes, which allowed the CDO to fund future funding obligations under the existing whole loan participations that had future funding commitments; the undrawn balance of the Class A-1R notes accrued a commitment fee at a rate per annum equal to 0.18%, the drawn balance bore interest at one-month LIBOR plus 0.32%; (iii) $57.5 million of Class A-2 notes bearing interest at one-month LIBOR plus 0.46%; (iv) $22.5 million of Class B notes bearing interest at one-month LIBOR plus 0.80%; (v) $7.0 million of Class C notes bearing interest at a fixed rate of 6.423%; (vi) $26.8 million of Class D notes bearing interest at one-month LIBOR plus 0.95%; (vii) $11.9 million of Class E notes bearing interest at one-month LIBOR plus 1.15%; (viii) $11.9 million of Class F notes bearing interest at one-month LIBOR plus 1.30%; (ix) $11.3 million of Class G notes bearing interest at one-month LIBOR plus 1.55%; (x) $11.3 million of Class H notes bearing interest at one-month LIBOR plus 2.30%; (xi) $11.3 million of Class J notes bearing interest at one-month LIBOR plus 2.95%; (xii) $10.0 million of Class K notes bearing interest at one-month LIBOR plus 3.25%; (xiii) $18.8 million of Class L notes bearing interest at a fixed rate of 7.50% and (xiv) $28.8 million of Class M notes bearing interest at a fixed rate of 8.50%. The Company has the right to call the notes anytime after July 2017 until maturity. | ||||||||||||||||||||||||
During the years ended December 31, 2014 and 2013, the Company did not repurchase any notes. During the year ended December 31, 2012, the Company repurchased and redeemed $50.0 million of the Class A-1R notes and $26.8 million of the Class D notes in RREF CDO 2007-1 at a weighted average price of 78.85% to par which, after fees paid to an investment bank to finance the transaction and related expenses, resulting in a $14.9 million gain reported as a gain on the extinguishment of debt in the consolidated statements of income. | ||||||||||||||||||||||||
During the the year ended December 31, 2014 the company reissued $25.0 million of Class A-1 notes at a price of 92.53% to par, and $15.0 million of Class D notes at a weighted average price of 86.85% to par, which resulted in a $3.8 million loss on the reissuance of debt in the consolidated statements of income. | ||||||||||||||||||||||||
Resource Real Estate Funding CDO 2006-1 | ||||||||||||||||||||||||
In August 2006, the Company closed RREF CDO 2006-1, a $345.0 million CDO transaction that provided financing for commercial real estate loans. RREF CDO 2006-1 issued a total of $308.7 million of senior notes at par to investors of which RCC Real Estate purchased 100% of the Class J senior notes (rated BB: Fitch) and Class K senior notes (rated B:Fitch) for $43.1 million. In addition, Resource Real Estate Funding 2006-1 CDO Investor, LLC, a subsidiary of RCC Real Estate, purchased a $36.3 million equity interest representing 100% of the outstanding preference shares. The senior notes purchased by RCC Real Estate are subordinated in right of payment to all other senior notes issued by RREF CDO 2006-1 but are senior in right of payment to the preference shares. The equity interest is subordinated in right of payment to all other securities issued by RREF CDO 2006-1. As of December 31, 2013, $110.0 million of Class A-1 notes have been paid down. | ||||||||||||||||||||||||
At closing, the senior notes issued to investors by RREF CDO 2006-1 consisted of the following classes: (i) $129.4 million of Class A-1 notes bearing interest at one-month LIBOR plus 0.32%; (ii) $17.4 million of Class A-2 notes bearing interest at one-month LIBOR plus 0.35%; (iii) $5.0 million of Class A-2 notes bearing interest at a fixed rate of 5.842%; (iv) $6.9 million of Class B notes bearing interest at one-month LIBOR plus 0.40%; (v) $20.7 million of Class C notes bearing interest at one-month LIBOR plus 0.62%; (vi) $15.5 million of Class D notes bearing interest at one-month LIBOR plus 0.80%; (vii) $20.7 million of Class E notes bearing interest at one-month LIBOR plus 1.30%; (viii) $19.8 million of Class F notes bearing interest at one-month LIBOR plus 1.60%; (ix) $17.3 million of Class G notes bearing interest at one-month LIBOR plus 1.90%; (x) $12.9 million of Class H notes bearing interest at one-month LIBOR plus 3.75%, (xi) $14.7 million of Class J notes bearing interest at a fixed rate of 6.00% and (xii) $28.4 million of Class K notes bearing interest at a fixed rate of 6.00%. All of the notes issued mature in August 2046, although the Company has the right to call the notes anytime after August 2016 until maturity. | ||||||||||||||||||||||||
During the years ended December 31, 2014 and 2013, the Company did not repurchase any notes. During the year ended December 31, 2012, the Company repurchased $4.3 million of the Class A-1 notes and $4.0 million of the Class C notes in RREF CDO 2006-1 at a weighted average price of 81.63% to par which resulted in a $1.5 million gain reported as a gain on the extinguishment of debt in the consolidated statements of income. | ||||||||||||||||||||||||
During the the year ended December 31, 2014 the company reissued $6.7 million of Class A-1 notes at a price of 98.94% to par, and $12.0 million of Class A-2 notes at a price of 95.56% to par, which resulted in a $604,000 loss on the reissuance of debt in the consolidated statements of income. | ||||||||||||||||||||||||
Whitney CLO I | ||||||||||||||||||||||||
In February 2011, the Company acquired the rights to manage the assets held by Whitney CLO I. In October 2012, the Company purchased a $20.9 million preferred equity interest at a discount of 42.5% which represented 66.6% of the outstanding preference shares in Whitney CLO I. In May 2013 the Company purchased an additional $550,000 equity interest in Whitney CLO I and as of December 31, 2013 held 68.3% of the outstanding preference shares. Based upon those purchases, the Company determined that it had a controlling interest and consolidated Whitney CLO I. The preferred equity interest was subordinated in right of payment to all other securities issued by Whitney CLO I. In 2013, the Company liquidated Whitney CLO I, and as a result all of the assets were sold. | ||||||||||||||||||||||||
Apidos CLO VIII | ||||||||||||||||||||||||
In October 2011, the Company closed Apidos CLO VIII, a $350.0 million CLO transaction that provides financing for bank loans. Apidos CLO VIII issued a total of $317.6 million of senior notes at a discount of 4.4% to investors and Resource TRS III purchased a $15.0 million interest representing 43% of the outstanding subordinated debt. The remaining 57% of subordinated debt was owned by unrelated third parties. The subordinated debt interest was subordinated in right of payment to all other securities issued by Apidos CLO VIII. In October 2013, Apidos CLO VIII was called and liquidated and, as a result, all of the assets were sold. Total proceeds from the sale of these assets, plus proceeds from previous sales and paydowns in the CLO were used to pay down the notes in full. | ||||||||||||||||||||||||
Apidos Cinco CDO | ||||||||||||||||||||||||
In May 2007, the Company closed Apidos Cinco CDO, a $350.0 million CDO transaction that provides financing for bank loans. Apidos Cinco CDO issued a total of $322.0 million of senior notes at par to investors and RCC commercial purchased a $28.0 million equity interest representing 100% of the outstanding preference shares. The equity interest is subordinated in right of payment to all other securities issued by Apidos Cinco CDO. | ||||||||||||||||||||||||
The senior notes issued to investors by Apidos Cinco CDO consist of the following classes: (i) $37.5 million of Class A-1 notes bearing interest at LIBOR plus 0.24%; (ii) $200.0 million of Class A-2a notes bearing interest at LIBOR plus 0.23%; (iii) $22.5 million of Class A-2b notes bearing interest at LIBOR plus 0.32%; (iv) $19.0 million of Class A-3 notes bearing interest at LIBOR plus 0.42%; (v) $18.0 million of Class B notes bearing interest at LIBOR plus 0.80%; (vi) $14.0 million of Class C notes bearing interest at LIBOR plus 2.25% and (vii) $11.0 million of Class D notes bearing interest at LIBOR plus 4.25%. The Company has the right to call the notes anytime after May 14, 2011 until maturity. | ||||||||||||||||||||||||
Apidos CDO III | ||||||||||||||||||||||||
In May 2006, the Company closed Apidos CDO III, a $285.5 million CDO transaction that provides financing for bank loans. Apidos CDO III issued a total of $262.5 million of senior notes at par to investors and RCC Commercial purchased a $23.0 million equity interest representing 100% of the outstanding preference shares. The equity interest is subordinated in right of payment to all other securities issued by Apidos CDO III. | ||||||||||||||||||||||||
At closing, the senior notes issued to investors by Apidos CDO III consist of the following classes: (i) $212.0 million of Class A-1 notes bearing interest at 3-month LIBOR plus 0.26%; (ii) $19.0 million of Class A-2 notes bearing interest at 3-month LIBOR plus 0.45%; (iii) $15.0 million of Class B notes bearing interest at 3-month LIBOR plus 0.75%; (iv) $10.5 million of Class C notes bearing interest at 3-month LIBOR plus 1.75%; and (v) $6.0 million of Class D notes bearing interest at 3-month LIBOR plus 4.25%. All of the notes issued mature on September 12, 2020, although the Company has the right to call the notes anytime after September 12, 2011 until maturity. | ||||||||||||||||||||||||
Apidos CDO I | ||||||||||||||||||||||||
In August 2005, the Company closed Apidos CDO I, a $350.0 million CDO transaction that provides financing for bank loans. The investments held by Apidos CDO I collateralize the debt it issued and, as a result, the investments are not available to the Company, its creditors or stockholders. Apidos CDO I issued a total of $321.5 million of senior notes at par to investors and RCC Commercial purchased a $28.5 million equity interest representing 100% of the outstanding preference shares. The equity interest was subordinated in right of payment to all other securities issued by Apidos CDO I. | ||||||||||||||||||||||||
At closing, the senior notes issued to investors by Apidos CDO I consisted of the following classes: (i) $259.5 million of Class A-1 notes bearing interest at 3-month LIBOR plus 0.26%; (ii) $15.0 million of Class A-2 notes bearing interest at 3-month LIBOR plus 0.42%; (iii) $20.5 million of Class B notes bearing interest at 3-month LIBOR plus 0.75%; (iv) $13.0 million of Class C notes bearing interest at 3-month LIBOR plus 1.85%; and (v) $8.0 million of Class D notes bearing interest at a fixed rate of 9.25%. All of the notes issued matured on July 27, 2017, although the Company had the right to call the notes anytime after July 27, 2010 until maturity. | ||||||||||||||||||||||||
In October 2014, Apidos CLO I was called and substantially all of the assets were sold. Total proceeds from the sale of these assets, plus proceeds from previous sales and paydowns in the CLO were used to pay down the remaining notes. | ||||||||||||||||||||||||
6.0% Convertible Senior Notes | ||||||||||||||||||||||||
On October 21, 2013, the Company issued and sold in a public offering $115.0 million aggregate principal amount of its 6.0% Convertible Senior Notes due 2018, ("6.0% Convertible Senior Notes"). After deducting the underwriting discount and the estimated offering costs, the Company received approximately $111.1 million of net proceeds. The discount of $4.9 million on the 6.0% Convertible Senior Notes reflects the difference between the stated value of the debt and the fair value of the notes as if they were issued without a conversion feature and at a higher rate of interest that the Company estimated would have been applicable without the conversion feature. The discount will be amortized on a straight-line basis as additional interest expense through maturity on December 1, 2018. Interest on the 6.0% Convertible Senior Notes is paid semi-annually and the 6.0% Convertible Senior Notes mature on December 1, 2018. Prior to December 1, 2018, the 6.0% Convertible Senior Notes are not redeemable at the Company's option, except to preserve the Company's status as a REIT. On or after December 1, 2018, the Company may redeem all or a portion of the 6.0% Convertible Senior Notes at a redemption price equal to the principal amount plus accrued and unpaid interest. Holders of 6.0% Convertible Senior Notes may require the Company to repurchase all or a portion of the 6.0% Convertible Senior Notes at a purchase price equal to the principal amount plus accrued and unpaid interest on December 1, 2018, or upon the occurrence of certain defined fundamental changes. The 6.0% Convertible Senior Notes are convertible at the option of the holder at a current conversion rate of 150.1502 common shares per $1,000 principal amount of 6.0% Convertible Senior Notes (equivalent to a current conversion price of $6.66 per common share). Upon conversion of 6.0% Convertible Senior Notes by a holder, the holder will receive cash, common shares or a combination of cash and common shares, at the Company's election. | ||||||||||||||||||||||||
Unsecured Junior Subordinated Debentures | ||||||||||||||||||||||||
In May 2006 and September 2006, the Company formed RCT I and RCT II, respectively, for the sole purpose of issuing and selling capital securities representing preferred beneficial interests. Although the Company owns $774,000 of the common securities of RCT I and RCT II, RCT I and RCT II are not consolidated into the Company’s consolidated financial statements because the Company is not deemed to be the primary beneficiary of these entities. In connection with the issuance and sale of the capital securities, the Company issued junior subordinated debentures to RCT I and RCT II of $25.8 million each, representing the Company’s maximum exposure to loss. The debt issuance costs associated with the junior subordinated debentures for RCT I and RCT II are included in borrowings and are being amortized into interest expense in the consolidated statements of income using the effective yield method over a ten year period. | ||||||||||||||||||||||||
The debt issuance costs associated with the junior subordinated debentures for RCT I and RCT II at December 31, 2014 were $160,000 and $183,000, respectively. The debt issuance costs associated with the junior subordinated debentures for RCT I and RCT II at December 31, 2013 were $261,000 and $282,000, respectively. The rates for RCT I and RCT II, at December 31, 2014, were 4.21% and 4.18%, respectively. The rates for RCT I and RCT II, at December 31, 2013, were 4.20% and 4.19%, respectively. | ||||||||||||||||||||||||
The rights of holders of common securities of RCT I and RCT II are subordinate to the rights of the holders of capital securities only in the event of a default; otherwise, the common securities’ economic and voting rights are pari passu with the capital securities. The capital and common securities of RCT I and RCT II are subject to mandatory redemption upon the maturity or call of the junior subordinated debentures held by each. Unless earlier dissolved, RCT I will dissolve on May 25, 2041 and RCT II will dissolve on September 29, 2041. The junior subordinated debentures are the sole assets of RCT I and RCT II, mature on September 30, 2036 and October 30, 2036, respectively, and may be called at par by the Company any time after September 30, 2011 and October 30, 2011, respectively. The Company records its investments in RCT I and RCT II’s common securities of $774,000 each as investments in unconsolidated entities and records dividend income upon declaration by RCT I and RCT II. | ||||||||||||||||||||||||
Repurchase and Credit Facilities | ||||||||||||||||||||||||
Borrowings under the repurchase 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 at December 31, 2014 and 2013 (dollars in thousands): | ||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
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) | $ | 24,967 | $ | 30,180 | 33 | 1.35% | $ | 47,601 | $ | 56,949 | 44 | 1.38% | ||||||||||||
CRE Term | ||||||||||||||||||||||||
Repurchase Facilities | ||||||||||||||||||||||||
Wells Fargo Bank (2) | 179,762 | 258,223 | 15 | 2.38% | 30,003 | 48,186 | 3 | 2.67% | ||||||||||||||||
Deutsche Bank AG (3) | 25,920 | 39,348 | 2 | 2.78% | (300 | ) | — | — | —% | |||||||||||||||
Short-Term Repurchase | ||||||||||||||||||||||||
Agreements - CMBS | ||||||||||||||||||||||||
Wells Fargo Securities, LLC | 10,442 | 17,695 | 1 | 1.66% | — | — | — | —% | ||||||||||||||||
Deutsche Bank Securities, LLC | 33,783 | 44,751 | 8 | 1.62% | — | — | — | —% | ||||||||||||||||
RMBS Term | ||||||||||||||||||||||||
Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank (4) | 22,212 | 27,885 | 6 | 1.16% | ||||||||||||||||||||
Residential Mortgage | ||||||||||||||||||||||||
Financing Agreements | ||||||||||||||||||||||||
New Century Bank | 41,387 | 51,961 | 158 | 2.82% | 11,916 | 13,089 | 74 | 4.17% | ||||||||||||||||
ViewPoint Bank, NA | — | — | — | —% | 2,711 | 3,398 | 17 | 4.58% | ||||||||||||||||
Wells Fargo Bank | 61,189 | 95,511 | 104 | 2.75% | ||||||||||||||||||||
Totals | $ | 399,662 | $ | 565,554 | $ | 91,931 | $ | 121,622 | ||||||||||||||||
-1 | The Wells Fargo CMBS term facility borrowing includes $0 and $12,000, of deferred debt issuance costs as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||
-2 | The Wells Fargo CRE term repurchase facility borrowing includes $1.7 million and $732,000 of deferred debt issuance costs as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||
-3 | The Deutsche Bank term repurchase facility includes $268,000 and $300,000 of deferred debt issuance costs as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||
-4 | The Wells Fargo RMBS term repurchase facility includes $36,000 of deferred debt issuance costs as of December 31, 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 23). | ||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
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 (2) | as Collateral | of Linked | Transactions (1) | Transactions (2) | as Collateral | of Linked | |||||||||||||||||
Under Linked | Transactions | Under Linked | Transactions | |||||||||||||||||||||
Transactions | Transactions | |||||||||||||||||||||||
CMBS Term | ||||||||||||||||||||||||
Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank | $ | 4,941 | $ | 6,371 | 7 | 1.67% | $ | 6,506 | $ | 8,345 | 7 | 1.65% | ||||||||||||
Short-Term Repurchase | ||||||||||||||||||||||||
Agreements - CMBS | ||||||||||||||||||||||||
JP Morgan Securities, LLC | — | — | — | —% | 17,020 | 24,814 | 4 | 0.99% | ||||||||||||||||
Wells Fargo Securities, LLC | 4,108 | 6,233 | 2 | 1.37% | 21,969 | 30,803 | 9 | 1.19% | ||||||||||||||||
Deutsche Bank Securities, LLC | 24,348 | 36,001 | 10 | 1.57% | 18,599 | 29,861 | 9 | 1.43% | ||||||||||||||||
Totals | $ | 33,397 | $ | 48,605 | $ | 64,094 | $ | 93,823 | ||||||||||||||||
-1 | Equal to linked CMBS repurchase value plus accrued interest expenses totaling $20,000 and $38,000 as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||
-2 | Does not include linked CMBS accrued interest receivable totaling $159,000 and $337,000 as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||
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 December 31, 2014: | ||||||||||||||||||||||||
CMBS Term Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank, National Association | $ | 6,486 | 20 | 1.35% | ||||||||||||||||||||
RMBS Term Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank, National Association | $ | 5,017 | 1 | 1.16% | ||||||||||||||||||||
CRE Term Repurchase Facilities | ||||||||||||||||||||||||
Wells Fargo Bank, National Association | $ | 76,148 | 20 | 2.38% | ||||||||||||||||||||
Deutsche Bank Securities, LLC | $ | 13,017 | 19 | 2.78% | ||||||||||||||||||||
Short-Term Repurchase Agreements - CMBS | ||||||||||||||||||||||||
JP Morgan Securities, LLC | $ | — | 0 | —% | ||||||||||||||||||||
Wells Fargo Securities, LLC | $ | 2,127 | 9 | 1.66% | ||||||||||||||||||||
Deutsche Bank Securities, LLC | $ | 11,810 | 20 | 1.62% | ||||||||||||||||||||
Residential Mortgage Financing Agreements | ||||||||||||||||||||||||
New Century Bank | $ | 853 | 242 | 2.82% | ||||||||||||||||||||
Wells Fargo Bank | $ | 6,902 | 183 | 2.75% | ||||||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||
CMBS Term Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank, National Association | $ | 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 | $ | 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. | |||||||||||||||||||||||
RMBS – Term Repurchase Facility | ||||||||||||||||||||||||
In June 2014, the Company'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 Bank, NA ("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 extension option, and a maximum interest rate of 1.45%. 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 guaranteed the 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 December 31, 2014. | ||||||||||||||||||||||||
CMBS – Term Repurchase Facility | ||||||||||||||||||||||||
In February 2011, the Company's wholly-owned subsidiaries, RCC Commercial Inc. and RCC Real Estate, Inc. (collectively, the "RCC Subsidiaries"), entered into a master repurchase and securities contract (the “2011 Facility”) with Wells Fargo Bank, National Association (“Wells Fargo”). Under the 2011 Facility, from time to time, the parties may enter into transactions in which the RCC Subsidiaries and Wells Fargo agree to transfer from the RCC Subsidiaries to Wells Fargo all of their right, title and interest to certain commercial mortgage backed securities and other assets (the “Assets”) against the transfer of funds by Wells Fargo to the RCC Subsidiaries, with a simultaneous agreement by Wells Fargo to transfer back to the RCC Subsidiaries such Assets at a date certain or on demand, against the transfer of funds from the RCC Subsidiaries to Wells Fargo. The maximum amount of the Facility is $100.0 million which had an original two year term with a one year option to extend, and an interest rate equal to the one-month LIBOR plus 1.00% plus a .25% initial structuring fee and a .25% extension fee upon exercise. In April 2014, the Company agreed to a third amendment of the facility, which extended the termination date to January 31, 2016. The RCC Subsidiaries may enter into interest rate swaps and cap agreements for securities whose average life exceeds two years to mitigate interest rate risk under the 2011 Facility. | ||||||||||||||||||||||||
The 2011 Facility contains customary events of default, including payment defaults, breaches of covenants and/or certain representations and warranties, cross-defaults, guarantor defaults, and the institution of bankruptcy or insolvency proceedings that remain unstayed. The remedies for such events of default are also customary for this type of transaction and include the acceleration of all obligations of the RCC Subsidiaries to repay the purchase price for purchased assets. | ||||||||||||||||||||||||
The 2011 Facility also contains margin call provisions relating to a decline in the market value of a security. Under these circumstances, Wells Fargo may require the RCC Subsidiaries to transfer cash in an amount sufficient to eliminate any margin deficit resulting from such a decline. | ||||||||||||||||||||||||
Under the terms of the 2011 Facility and pursuant to a guarantee agreement dated February 1, 2011 (the “2011 Guaranty”), the Company guaranteed the payment and performance of (a) all payment obligations owing by the RCC Subsidiaries to Wells Fargo under or in connection with the Facility and any other governing agreements and any and all extensions, renewals, modifications, amendments or substitutions of the foregoing; (b) all expenses, including, without limitation, reasonable attorneys' fees and disbursements, that are incurred by Wells Fargo in the enforcement of any of the foregoing or any obligation of the registrant; and (c) any other obligations of the RCC Subsidiaries with respect to Wells Fargo under each of the governing documents. The 2011 Guaranty includes covenants that, among other things, limit the Company's leverage and debt service ratios and require maintenance of certain levels of cash and net worth. RCC Real Estate and RCC Commercial were in compliance with all financial debt covenants as of December 31, 2014. | ||||||||||||||||||||||||
CRE – Term Repurchase Facilities | ||||||||||||||||||||||||
On February 27, 2012, the RCC Real Estate's wholly-owned subsidiary, RCC Real Estate SPE 4 LLC ("SPE 4"), entered into a master repurchase and securities agreement (the "2012 Facility") with Wells Fargo to finance the origination of commercial real estate loans. The 2012 facility had an original maximum amount of $150.0 million and an initial 18 month term. The Company paid an origination fee of 37.5 basis points (0.375%). On April 2, 2013, the Company entered into an amendment which increased the size to $250.0 million and extended the current term of the 2012 Facility to February 27, 2015. The amendment also provides two additional one year extension options at the Company's discretion. The Company paid an additional structuring fee of $101,000 and an extension fee of $938,000 in connection with the amendment and will amortize the additional fees over the term of the extension. | ||||||||||||||||||||||||
On October 31, 2014, the Company agreed to a modification of the terms of the 2012 Facility. The modification increases the facility maximum by $150.0 million to $400.0 million and extends the facility's maturity date to August 27, 2016. The modification also increased the facility's maximum single asset concentration limit, reduced the minimum portfolio debt yield tests requirement, and decreased pricing spreads on select portfolio assets. The Company also provides for two additional one year extension options at the Company's discretion.The Company paid a structuring fee of $1.6 million upon the closing of the modification. | ||||||||||||||||||||||||
This 2012 Facility contains customary events of default, including payment defaults, breaches of covenants and/or certain representations and warranties, cross-defaults, guarantor defaults, and the institution of bankruptcy or insolvency proceedings that remain unstayed. The remedies for such events of default are also customary for this type of transaction and include the acceleration of all obligations of the Company to repay the purchase price for purchased assets. | ||||||||||||||||||||||||
The 2012 Facility also contains margin call provisions relating to a decline in the market value of a security. Under these circumstances, Wells Fargo may require the Company to transfer cash in an amount sufficient to eliminate any margin deficit resulting from such a decline. | ||||||||||||||||||||||||
Under the terms of the 2012 Facility and pursuant to a guarantee agreement dated February 27, 2012 (the “2012 Guaranty”), the Company guaranteed the payment and performance of (a) all payment obligations owing by the Company to Wells Fargo under or in connection with the 2012 Facility and any other governing agreements and any and all extensions, renewals, modifications, amendments or substitutions of the foregoing; (b) all expenses, including, without limitation, reasonable attorneys' fees and disbursements, that are incurred by Wells Fargo in the enforcement of any of the foregoing or any obligation of the registrant; and (c) any other obligations of the Company with respect to Wells Fargo under each of the governing documents. The 2012 Guaranty includes covenants that, among other things, limit the the Company's leverage and debt service ratios and require maintenance of certain levels of cash and net worth. SPE 4 was in compliance with all financial covenants as of December 31, 2014 and the Company was in compliance with all financial covenants under the 2012 Guaranty as of December 31, 2014. | ||||||||||||||||||||||||
On July 19, 2013, RCC Real Estate's wholly-owned subsidiary, RCC Real Estate SPE 5 ("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 Company paid a structuring fee of 0.25% of the maximum facility amount, as well as other reasonable closing costs. The DB Facility had 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 and subject further to the right of SPE 5 to repurchase the assets held in the facility earlier. The Company guaranteed SPE 5's performance of its obligations under the DB Facility. | ||||||||||||||||||||||||
The facility contains provisions that provide DB with certain rights if certain credit events have occurred with respect to one or more assets financed on the DB Facility to either repay a portion of the advance on such asset(s) or repay such advance in full (by repurchase of such asset(s)). Depending on the nature of the credit event, such repayment may be required notwithstanding the availability of interest and principal payments from assets financed on the DB Facility, or may only be required to the extent of the availability of such payments. | ||||||||||||||||||||||||
The DB Facility contains events of default (subject to certain materiality thresholds and grace periods) customary for this type of financing arrangement, including but not limited to: payment defaults; bankruptcy or insolvency proceedings; a change of control of SPE 5 or the Company; breaches of covenants and/or certain representations and warranties; performance defaults by the Company; a judgment in an amount greater than $100,000 against SPE 5 or $5.0 million in the aggregate against the Company; or a default involving the failure to pay or acceleration of a monetary obligation in excess of $100,000 of SPE 5 or $5.0 million of the Company. The remedies for such events of default are also customary for this type of transaction and include the acceleration of the principal amount outstanding under the DB Facility and the liquidation by DB of assets then subject to the DB Facility. The Company and SPE 5 were in compliance with all financial covenants under the terms of the guarantee as of December 31, 2014. | ||||||||||||||||||||||||
Short-Term Repurchase Agreements - CMBS | ||||||||||||||||||||||||
On November 6, 2012, RCC Real Estate entered into a master repurchase and securities agreement with JP Morgan Securities LLC to finance the purchase of CMBS. There is no stated maximum amount of the facility and the repurchase agreement has no stated maturity. Interest rates reset monthly. | ||||||||||||||||||||||||
On February 14, 2012, RCC Real Estate entered into a master repurchase and securities agreement with Wells Fargo Securities, LLC to finance the purchase of CMBS. There is no stated maximum amount of the facility and the repurchase agreement has no stated maturity date, interest rates reset monthly. The Company guaranteed RCC Real Estate’s performance of its obligations under the repurchase agreement. | ||||||||||||||||||||||||
On March 8, 2005, RCC Real Estate entered into a master repurchase and securities agreement with Deutsche Bank Securities Inc. to finance the purchase of CMBS and the origination commercial real estate loans. There is no stated maximum amount of the facility and the repurchase agreement had an initial 12 month term. The Company guaranteed RCC Real Estate’s performance of its obligations under the repurchase agreement. | ||||||||||||||||||||||||
Residential Mortgage Financing Agreements | ||||||||||||||||||||||||
PCM has a master repurchase agreement with New Century Bank d/b/a Customer's Bank ("New Century") to finance the acquisition of residential mortgage loans. The facility has a maximum amount of $30.0 million and a termination date of August 30, 2015, which was amended from the original terms over the course of seven amendments. The facility bears interest at one month LIBOR plus an applicable rate between 2.63% and 4.875%. | ||||||||||||||||||||||||
The New Century facility contains provisions that provide New Century with certain rights if certain credit events have occurred with respect to one or more assets financed on the New Century facility to either require PCM to repay a portion of the advance on such asset(s) or repay such advance in full (by repurchase of such asset(s)). Depending on the nature of the credit event, such repayment may be required notwithstanding the availability of interest and principal payments from assets financed on the New Century facility, or may only be required to the extent of the availability of such payments. | ||||||||||||||||||||||||
The New Century facility contains events of default (subject to certain materiality thresholds and grace periods) customary for this type of financing arrangement, including but not limited to: payment defaults; bankruptcy or insolvency proceedings; a change in the nature of PCM's business as a mortgage banker as presently conducted or a change in senior management, including the employment of two senior members of PCM's management staff; breaches of covenants and/or certain representations and warranties; performance defaults by PCM; a judgment in an amount greater than $10,000 against PCM or $50,000 in the aggregate against PCM. The remedies for such events of default are also customary for this type of transaction and include the acceleration of the principal amount outstanding under the New Century facility and the liquidation by New Century of assets then subject to the New Century facility. The agreement requires PCM to maintain a minimum maintenance balance account at all times of $1.5 million and PCM was in compliance as of December 31, 2014 and December 31, 2013. | ||||||||||||||||||||||||
On November 30, 2014, PCM received a waiver from New Century on the facility's minimum liquidity covenant. The waiver removed all existing defaults and waived the required covenants from December 1, 2014 through January 9, 2015. PCM was in compliance with all other covenants under the agreement as of December 31, 2014. | ||||||||||||||||||||||||
PCM had a loan participation agreement with ViewPoint Bank, NA ("ViewPoint") to finance the acquisition of residential mortgage loans. The facility had a maximum amount of $15.0 million and a termination date of December 30, 2014, which was amended from the original terms over the course of five amendments. The facility bore interest at one month LIBOR with a 4.00% floor. In November 2014, PCM terminated its agreement with Viewpoint and there were no borrowings outstanding under this facility as of December 31, 2014. | ||||||||||||||||||||||||
In July 2014, PCM entered into a master repurchase agreement with 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, a termination date of July 2, 2015, and bears interest at a rate of LIBOR plus an applicable loan margin. The loan margin for jumbo loans that have been purchased and held by Wells Fargo for over 180 days is 3.00%; the loan margin for all other assets financed is 2.50%. | ||||||||||||||||||||||||
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. | ||||||||||||||||||||||||
On November 30, 2014, PCM received a waiver from Wells Fargo on the facility's minimum liquidity requirement. The waiver removed all existing defaults and waived the required covenants from December 1, 2014 through January 9, 2015. PCM was in compliance with all other covenants under the agreement as of December 31, 2014. | ||||||||||||||||||||||||
Senior Secured Revolving Credit Facility | ||||||||||||||||||||||||
On September 18, 2014, the Company's wholly-owned subsidiary, Northport LLC, closed a $110.0 million syndicated senior secured revolving credit facility ("Northport Credit Facility") with JP Morgan as the agent bank to finance the origination of middle market and syndicated loans. On September 30, 2014, the accordion feature of the Credit 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 a new lendor to the syndicate, bringing the effective commitment to $125.0 million. The Company has access to draws on the Northport Credit Facility until September 18, 2017, all outstanding borrowings under the Northport Credit Facility must be repaid by the maturity date of September 18, 2018. | ||||||||||||||||||||||||
The Northport Credit Facility bears interest rates, at the Company's election, on a per annum basis equal to (i) the applicable LIBOR rate plus 2.50% or (ii) the applicable base rate (prime rate of 3.25% as of December 31, 2014) plus 1.50%. During the six month period following September 18, 2014, the Company is charged a commitment fee on any unused balance of 0.375% per annum if the unused balance is greater than 35% of the total commitment or 0.50% per annum if it is less than 35% of the total commitment. After the six month period, the commitment fee on any unused balance is 0.375% per annum if the unused balance is greater than 35% of the total commitment or 1.00% per annum if the unused balance is 35% or less of the total commitment. At December 31, 2014, there was an unused balance of $11.5 million on the facility. | ||||||||||||||||||||||||
Amounts available to borrow under the Credit Facility are subject to compliance with a borrowing base computation that applies different advance rates to different types of assets held by Northport LLC that are pledged as collateral. Under the Credit Facility, the Company has made certain customary representations and warranties and is required to comply with various covenants, including leverage restrictions, reporting requirements and other customary requirements for similar credit facilities. At December 31, 2014, the Company is in compliance with all covenants under the agreement. The Company guarantees Northport LLC's performance of its obligations under this Credit Facility. |
STOCK_INCENTIVE_PLANS_AND_SHAR
STOCK INCENTIVE PLANS AND SHARE ISSUANCE AND REPURCHASE | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||
STOCK INCENTIVE PLANS AND SHARE ISSUANCE AND REPURCHASE | NOTE 15 - STOCK INCENTIVE PLANS AND SHARE ISSUANCE AND REPURCHASE | |||||||||||||
Upon formation of the Company, the 2005 Stock Incentive Plan (the “2005 Plan”) was adopted for the purpose of attracting and retaining executive officers, employees, directors and other persons and entities that provide services to the Company. The 2005 Plan authorizes the issuance of up to 1,533,333 shares of common stock in the form of options to purchase common stock, stock awards, performance shares and stock appreciation rights. | ||||||||||||||
In July 2007, the Company’s shareholders approved the 2007 Omnibus Equity Compensation Plan (the “2007 Plan”). The 2007 Plan authorizes the issuance of up to 2,000,000 shares of common stock in the form of options to purchase common stock, stock awards, performance shares and stock appreciation rights. On June 23, 2011, the 2007 Plan was amended to: (i) increase the number of shares authorized for issuance under the Plan from 2,000,000 shares to 5,400,000 shares; (ii) extend the expiration date of the Plan to June 23, 2021; (iii) provide that the Administrator making certain determinations after a change of control, as defined in the 2007 Plan, will be comprised of the same persons who constitute the Administrator immediately before the change of control; and (iv) make other clarifying and updating amendments to the Plan. | ||||||||||||||
The following table summarizes the Company's preferred stock: | ||||||||||||||
Year ended December 31, 2014 | Total Outstanding | |||||||||||||
Number of Shares | Weighted Average Offering Price | Number of Shares | Weighted Average Offering Price | |||||||||||
8.50% Series A Preferred Stock | 388,064 | $ | 23.82 | 1,069,016 | $ | 24.05 | ||||||||
8.25% Series B Preferred Stock | 2,116,068 | $ | 23.02 | 5,601,146 | $ | 23.86 | ||||||||
8.625% Series C Preferred Stock | 4,800,000 | $ | 24.21 | 4,800,000 | $ | 24.21 | ||||||||
On or after June 14, 2017, the Company may, at its option, redeem the Series A preferred stock, in whole or part, at any time and from time to time, for cash at $25.00 per share, plus accrued and unpaid dividends, if any, to the redemption date. | ||||||||||||||
On or after October 2, 2017, the Company may, at its option, redeem the Series B preferred stock, in whole or part, at any time and from time to time, for cash at $25.00 per share, plus accrued and unpaid dividends, if any, to the redemption date. | ||||||||||||||
On 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 year ended December 31, 2014, the Company sold approximately 5.5 million shares of common stock through this program, resulting in proceeds of $30.3 million. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
SHARE-BASED COMPENSATION | NOTE 16 - SHARE-BASED COMPENSATION | |||||||||||||
The following table summarizes the Company's 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 | ) | (1,846,565 | ) | (99,103 | ) | (1,978,887 | ) | ||||||
Forfeited | — | — | — | — | ||||||||||
Unvested shares as of December 31, 2014 | 49,203 | 1,812,853 | 161,583 | 2,023,639 | ||||||||||
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 years ended December 31, 2014, 2013, and 2012, including the grant date fair value of shares issued to the Company’s seven non-employee directors, was $5.0 million, $5.1 million, and $12.9 million, respectively. | ||||||||||||||
The following table summarizes the restricted common stock grants during the year ended December 31, 2014: | ||||||||||||||
Date | Shares | Vesting/Year | Date(s) | |||||||||||
January 30, 2014 | 459,307 | 33.30% | 1/30/15, 1/30/16, 1/30/17 | |||||||||||
January 30, 2014 | 22,318 | 33.30% | 1/30/15, 1/30/16, 1/30/17 | |||||||||||
February 3, 2014 | 5,972 | 100% | 2/3/15 | |||||||||||
March 11, 2014 | 25,770 | 100% | 3/11/15 | |||||||||||
March 12, 2014 | 6,044 | 100% | 3/12/15 | |||||||||||
March 31, 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 | |||||||||||
Total shares | 889,931 | |||||||||||||
-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 31, 2014, the third annual measurement period ended and 112,000 shares were earned. In addition, $258,000 of accrued dividends equivalents rights were earned. | |||||||||||||
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 December 31, 2014, there were $21,000 of dividends payable upon achievement of performance criteria. If earned, the performance shares will vest over the subsequent 12 months at a rate of 25% per quarter. | ||||||||||||||
The following table summarizes the status of the Company’s unvested stock options as of December 31, 2014: | ||||||||||||||
Unvested Options | Options | Weighted Average Grant Date Fair Value | ||||||||||||
Unvested at January 1, 2014 | 13,334 | $ | 0.01 | |||||||||||
Granted | — | — | ||||||||||||
Vested | (13,334 | ) | 0.01 | |||||||||||
Forfeited | — | — | ||||||||||||
Unvested at December 31, 2014 | — | $ | — | |||||||||||
The following table summarizes the status of the Company’s vested stock options as of December 31, 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 December 31, 2014 | 640,666 | $ | 14.45 | 0.8 | $ | — | ||||||||
There were no options granted during the years ended December 31, 2014, and 2013. The outstanding stock options have a weighted average remaining contractual term of three years. | ||||||||||||||
For the years ended December 31, 2014, 2013, and 2012, the components of equity compensation expense were as follows: | ||||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Options granted to Manager and non-employees | (2 | ) | 6 | 2 | ||||||||||
Restricted shares granted to non-employees | 5,679 | 10,142 | 4,522 | |||||||||||
Restricted shares granted to employees | 633 | 106 | — | |||||||||||
Restricted shares granted to non-employee directors | 256 | 218 | 112 | |||||||||||
Total equity compensation expense | 6,566 | 10,472 | 4,636 | |||||||||||
There were no incentive fees owed to the Manager for the year ended December 31, 2014. During the years ended December 31, 2013 and 2012, the Manager received 190,828, and 146,534 shares as incentive compensation valued at $1.1 million, and $814,000, respectively pursuant to the Management Agreement. The incentive management fee is paid one quarter in arrears. | ||||||||||||||
Apart from incentive compensation payable under the Management Agreement, the Company has established no formal criteria for equity awards as of December 31, 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 | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
EARNINGS PER SHARE | NOTE 17 - 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): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Basic: | ||||||||||||
Net income allocable to common shares | $ | 44,027 | $ | 39,232 | $ | 63,199 | ||||||
Weighted average number of shares outstanding | 128,031,064 | 118,478,672 | 88,410,272 | |||||||||
Basic net income per share | $ | 0.34 | $ | 0.33 | $ | 0.71 | ||||||
Diluted: | ||||||||||||
Net income allocable to common shares | $ | 44,027 | $ | 39,232 | $ | 63,199 | ||||||
Weighted average number of shares outstanding | 128,031,064 | 118,478,672 | 88,410,272 | |||||||||
Additional shares due to assumed conversion of dilutive instruments | 1,228,322 | 1,560,301 | 874,216 | |||||||||
Adjusted weighted-average number of common shares outstanding | 129,259,386 | 120,038,973 | 89,284,488 | |||||||||
Diluted net income per share | $ | 0.34 | $ | 0.33 | $ | 0.71 | ||||||
Potentially dilutive shares relating to 17,267,273 shares issuable in connection with the Company's 6% Convertible Senior Notes (see Note 14) for the year ended December 31, 2014 and 3,999,505 and 641,666 shares for the years ended December 31, 2013 and 2012 respectively, were not included in the calculation of diluted net income per share because the effect was anti-dilutive. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 18 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||
The following table, which is presented gross of tax, presents the changes in each component of accumulated other comprehensive income for the year ended December 31, 2014 (dollars in thousands): | ||||||||||||||||
Net unrealized (loss) gain on derivatives | Net unrealized (loss) gain on securities, | Foreign currency translation | Net unrealized (loss) gain | |||||||||||||
available-for-sale | ||||||||||||||||
January 1, 2014 | $ | (11,155 | ) | $ | (3,084 | ) | $ | 196 | $ | (14,043 | ) | |||||
Other comprehensive gain (loss) before reclassifications | 1,906 | 13,937 | (608 | ) | 15,235 | |||||||||||
Amounts reclassified from accumulated other | 282 | 9,051 | — | 9,333 | ||||||||||||
comprehensive income | ||||||||||||||||
Net current-period other comprehensive income | 2,188 | 22,988 | (608 | ) | 24,568 | |||||||||||
Unrealized gains (losses) on available-for-sale securities allocable to non-controlling interests | — | (4,482 | ) | — | (4,482 | ) | ||||||||||
December 31, 2014 | $ | (8,967 | ) | $ | 15,422 | $ | (412 | ) | $ | 6,043 | ||||||
THE_MANAGEMENT_AGREEMENT
THE MANAGEMENT AGREEMENT | 12 Months Ended | |
Dec. 31, 2014 | ||
THE MANAGEMENT AGREEMENT [Abstract] | ||
THE MANAGEMENT AGREEMENT | NOTE 19 - THE MANAGEMENT AGREEMENT | |
On March 8, 2005, the Company entered into a Management Agreement with the Manager and Resource America pursuant to which the Manager provides the Company investment management, administrative and related services. The agreement has been amended several times over the years. Under the amended and restated agreement, the Manager receives fees and is reimbursed for its expenses as follows: | ||
• | A monthly base management fee equal to 1/12th of the amount of the Company's equity multiplied by 1.50%. Under the management agreement, ''equity'' is equal to the net proceeds from any issuance of shares of capital stock less offering related costs, plus or minus the Company's retained earnings (excluding non-cash equity compensation incurred in current or prior periods) less any amounts the Company has paid for common stock repurchases. The calculation is adjusted for one-time events due to changes in GAAP, as well as other non-cash charges, upon approval of the independent directors of the Company. | |
• | Incentive compensation is calculated as follows: (i) twenty-five percent (25%) of the dollar amount by which (A) the Company's adjusted operating earnings (before incentive compensation but after the base management fee) for such quarter per common share (based on the weighted average number of common shares outstanding for such quarter) exceeds (B) an amount equal to (1) the weighted average of the price per share of the common shares in the initial offering by the Company and the prices per share of the Common Shares in any subsequent offerings by the Company, in each case at the time of issuance thereof, multiplied by (2) the greater of (a) 2.0% and (b) 0.50% plus one-fourth of the Ten Year Treasury Rate for such quarter, multiplied by (ii) the weighted average number of common shares outstanding during such quarter, subject to adjustment, to exclude events pursuant to changes in GAAP or the application of GAAP, as well as non-recurring or unusual transactions or events, after discussion between the Manager and the Independent Directors and approval by a majority of the independent directors in the case of non-recurring or unusual transactions or events. The fees paid by a taxable REIT subsidiary of the Company to employees, agents or affiliates of the Manager with respect to profits of such taxable REIT subsidiary (or any subsidiary thereof) are deducted from the Company's quarterly calculation of incentive compensation payable to the Manager. Additionally, any income taxes payable by a taxable REIT subsidiary of the Company will be excluded from the Company's calculation of operating earnings. | |
• | Reimbursement of out-of-pocket expenses and certain other costs incurred by the Manager that relate directly to the Company and its operations. | |
Incentive compensation is paid quarterly. Up to 75% of the incentive compensation is paid in cash and at least 25% is paid in the form of an award of common stock. The Manager may elect to receive more than 25% in incentive compensation in common stock. All shares are fully vested upon issuance. However, the Manager may not sell such shares for one year after the incentive compensation becomes due and payable. Shares payable as incentive compensation are valued as follows: | ||
• | if such shares are traded on a securities exchange, at the average of the closing prices of the shares on such exchange over the thirty day period ending three days prior to the issuance of such shares; | |
• | if such shares are actively traded over-the-counter, at the average of the closing bid or sales price as applicable over the thirty day period ending three days prior to the issuance of such shares; and | |
• | if there is no active market for such shares, the value is the fair market value thereof, as reasonably determined in good faith by the board of directors of the Company. | |
On February 24, 2011, the Company entered into an amendment to the Management Agreement in where, the Company agreed to pay CVC Credit Partners, LLC, formerly Apidos Capital Management (“ACM”) such fees as are set forth in a Services Agreement dated as of February 24, 2011 among a subsidiary of the Company, RCAM and CVC. The Services Agreement provides that 10% of all base collateral management fees and additional collateral management fees paid to RCAM and 50% of all incentive collateral management fees will be paid by RCAM to CVC. During the years ended December 31, 2014, 2013 and 2012, RCAM paid CVC $1.3 million, $643,000 and $800,000 respectively in fees. | ||
The Manager provides the Company with a Chairman, a Chief Financial Officer, a Chief Accounting Officer and several accounting and tax professionals, each of whom is exclusively dedicated to the Company's operations. The Manager also provides the Company with a director of investor relations who is 50% dedicated to the Company's operations. The Company bears the expense of the wages, salaries and benefits of the Chief Financial Officer and a sufficient amount of additional accounting and tax professionals, and bears 50% of the salary and benefits of the director of investor relations. | ||
In November 2013, the Company amended the second amended and restated management agreement to allow an ancillary operating subsidiary (PCM), that is an operating entity principally engaged in the evaluation, underwriting, origination, servicing, holding, trading and financing of loans, securities, investments and credit products other than commercial real estate loans to directly incur and pay all of its own operating costs and expenses, including compensation of employees and reimbursement of any compensation costs incurred by the Manager for personnel principally devoted to such ancillary operating subsidiary. | ||
As amended, the Management Agreement's initial term ended March 31, 2013, with automatic annual one-year renewals unless at the end of the initial term or any renewal term at least two-thirds of the independent directors or a majority of the outstanding common shares agreed not to renew the Management Agreement. With a two-thirds vote of the independent directors, the independent directors may elect to terminate the Management Agreement because of the following: | ||
• | unsatisfactory performance; and/or | |
• | unfair compensation payable to the Manager where fair compensation cannot be agreed upon by the Company (pursuant to a vote of two-thirds of the independent directors) and the Manager. | |
If the Management Agreement is terminated based on the above provisions, the Company must pay the Manager a termination fee equal to four times the sum of the average annual base management fee and the average annual incentive during the two 12-month periods immediately preceding the date of such termination. The Company is also entitled to terminate the Management Agreement for cause (as defined therein) without payment of any termination fee. | ||
The base management fee for the years ended December 31, 2014, 2013 and 2012 was $13.0 million, $11.6 million and $8.3 million, respectively. There was no incentive management fee earned during the year ended December 31, 2014. The Manager earned an incentive management fee of $2.1 million of which $1.5 million was paid in cash, which also included $123,000 related to the Company's investment management agreement with a subsidiary of the Manager, and $484,000 paid in stock (80,189 shares) for the period from January 1, 2013 to December 31, 2013. The Manager earned an incentive management fee of $9.6 million of which $8.2 million was paid in cash, which also included $3.7 million related to the Company's investment management agreement with a subsidiary of the Manager, and $1.4 million was paid in stock (257,173 shares) for the period from January 1, 2012 to December 31, 2012. | ||
At December 31, 2014, the Company was indebted to the Manager for base management fees of $1.2 million, $63,000 of fees payable to CVC from RCAM, and expense reimbursements of $121,000. At December 31, 2013, the Company was indebted to the Manager for base management fees of $1.0 million, incentive management fees to a subsidiary of the Manager under the Company's investment management agreement of $123,000, $85,000 of fees payable to CVC from RCAM, and expense reimbursements of $166,000. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 20 - 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 December 31, 2014, Resource America owned 2,861,592 shares, or 2.2%, of the Company’s outstanding common stock. In addition, Resource America held 2,166 options to purchase restricted stock. | |
The Company is managed by the Manager, which is a wholly-owned subsidiary of Resource America, pursuant to a Management Agreement that provides for both base and incentive management fees. For the years ended December 31, 2014, 2013, and 2012, the Manager earned base management fees of approximately $13.0 million, $11.6 million and $8.3 million, respectively. For the years ended December 31, 2013 and 2012, the Manager earned incentive management fees of $1.9 million and $6.0 million, respectively. No fees were paid for the year ended December 31, 2014. The Company also reimburses the Manager and Resource America for expenses, including the expense of employees of Resource America who perform legal, accounting, due diligence and other services that outside professionals or consultants would otherwise perform, and for the wages, salaries and benefits of several Resource America personnel dedicated to the Company’s operations. For the years ended December 31, 2014, 2013, and 2012, the Company paid the Manager $5.0 million, $3.8 million and $3.6 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 years ended December 31, 2014, 2013 and 2012, RCM earned $0, $123,000 and $3.7 million in management fees, respectively. The portfolio began a partial liquidation during the year ended December 31, 2013 that has resulted in the outstanding portfolio balance being significantly decreased. The Company has reinvested gains from its activity and holds $3.4 million in fair market value of trading securities as of December 31, 2014, a decrease of $8.2 million from $11.6 million at fair market value as of December 31, 2013. During the years ended December 31, 2014, 2013 and 2012, RCM earned $0, $35,000 and $560,000, respectively, as its share of the net profits as defined in the Investment Management Agreement. The Company also reimburses RCM for expenses paid on the Company's behalf. For the years ended December 31, 2014, 2013 and 2012, the Company paid RCM $164,000, $258,000 and $167,000, respectively, as expense reimbursements. | |
At December 31, 2014, the Company was indebted to the Manager for $1.6 million, comprised of base management fees of $1.2 million and expense reimbursements of $480,000. 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 December 31, 2014, the Company was indebted to RCM, under the Company’s Investment Management Agreement for $121,000, comprised entirely of expense reimbursements. At December 31, 2013, the Company was indebted to RCM for $289,000, comprised of $123,000 of incentive management fees and $166,000 of expense reimbursements. | |
During the year ended December 31, 2013, the Company, through one of its subsidiaries, began originating middle-market loans, on which Resource America is paid origination fees. These 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 cliff vests in full on November 7, 2016, and includes dividend equivalent rights. | |
The Company had executed eight and seven securitizations as of December 31, 2014 and 2013, which were structured for the Company by the Manager. Under the Management Agreement, the Manager was not separately compensated by the Company for executing these transactions and is not separately compensated for managing the securitization's entities and their assets. The Company liquidated one of these securitizations in October 2013 and another in October 2014. | |
Relationship with LEAF Commercial Capital. Leaf Commercial Capital ("LCC"), formerly LEAF Financial, originated and managed equipment leases and notes on behalf of the Company. On March 5, 2010, the Company entered into agreements with Lease Equity Appreciation Fund II, L.P. (“LEAF II”) (an equipment leasing partnership sponsored by LEAF Financial and of which a LEAF Financial subsidiary is the general partner), pursuant to which the Company provided and funded an $8.0 million credit facility to LEAF II. The credit facility initially had a one year term at with interest at 12% per year, payable quarterly, and was secured by all the assets of LEAF II, including its entire ownership interest in LEAF II Receivables Funding. The Company received a 1% origination fee in connection with establishing the facility. The facility originally matured on March 3, 2011 and was extended until September 3, 2011 with a 1% extension fee paid on the outstanding loan balance. On June 3, 2011, the Company entered into an amendment to extend the maturity to February 15, 2012 and to decrease the interest rate from 12% to 10% per annum resulting in a troubled-debt restructuring under current accounting guidance. On February 15, 2012, the credit facility was further amended to extend the maturity to February 15, 2013 with a 1% extension fee accrued and added to the amount outstanding. On January 11, 2013, the Company entered into another amendment to extend the maturity to February 15, 2014 with an additional 1% extension fee accrued and added to the amount outstanding. On December 17, 2013, the Company entered into another amendment to extend the maturity to February 15, 2015. During the year ended December 31, 2014, the Company recorded a provision for loan loss on this loan of $1.3 million before extinguishing the loan and bringing direct financing leases in the amount of $2.1 million on the Company's books in lieu of the loan receivable. | |
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 years ended December 31, 2014, 2013 and 2012, the Company recorded losses of $1.6 million, $183,000 and $3.3 million, respectively, which were recorded in equity in net earnings (losses) of unconsolidated subsidiaries on the consolidated statement of income. The Company’s investment in LCC was valued at $39.4 million and $41.0 million as of December 31, 2014 and 2013, respectively. | |
Relationship with CVC Credit Partners. On April 17, 2012, ACM, a former subsidiary of Resource America, was sold to CVC Credit Partners, a joint venture entity in which Resource America owns a 33% interest. CVC Credit Partners manages internally and externally originated bank loan assets on the Company’s behalf. On February 24, 2011, a subsidiary of the Company purchased 100% of the ownership interests in Churchill Pacific Asset Management LLC ("CPAM") from Churchill Financial Holdings LLC for $22.5 million. CPAM subsequently changed its name to RCAM. Through RCAM, the Company is entitled to collect senior, subordinated and incentive fees related to five 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 years ended December 31, 2014, 2013 and 2012, CVC Credit Partners earned subordinated fees of $1.3 million, $643,000 and $800,000, respectively. In October 2012, the Company purchased 66.6% of the preferred equity in one of the RCAM CLOs. In May 2013, the Company purchased additional equity in this CLO, increasing its ownership percentage to 68.3%. In September 2013, this CLO was called and the notes were paid down in full. Another RCAM-managed CLO also elected to redeem its outstanding notes in whole in February 2013. | |
In May, June and July 2013, the Company invested a total of $15.0 million in CVC Global Credit Opportunities Fund which generally invests in assets through the Master Fund (see Note 3). The fund will pay the investment manager a quarterly management fee in advance calculated at the rate of 1.5% annually based on the balance of each limited partner's capital account. The Company's management fee was waived upon entering the agreement given that the Company is a related party of CVC Credit Partners. For the years ended December 31, 2014 and 2013, the Company recorded earnings of $2.0 million and $1.2 million, respectively, which was recorded in equity in net earnings (losses) of unconsolidated subsidiaries on the consolidated statement of income. The Company's investment balance of $18.2 million and $16.2 million, respectively, is recorded as an investment in unconsolidated entities on the Company's consolidated balance sheets using the equity method. | |
Relationship with Resource Real Estate. Resource Real Estate, a subsidiary of Resource America, originates, finances and manages the Company’s commercial real estate loan portfolio, including whole loans, B notes, mezzanine loans, and investments in real estate. The Company reimburses Resource Real Estate for loan origination costs associated with all loans originated. The Company had a receivable of $100,000 due from Resource Real Estate for loan origination costs in connection with the Company's commercial real estate loan portfolio as of December 31, 2014. The Company had no indebtedness to Resource Real Estate for loan origination costs in connection with the Company’s commercial real estate loan portfolio as of December 31, 2013. | |
On August 9, 2006, the Company, through its subsidiary, RCC Real Estate, originated a loan to Lynnfield Place, a multi-family apartment property, in the amount of $22.4 million. The loan was then purchased by RREF CDO 2006-1. The loan, which was set to mature on May 9, 2018, carried 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 was used as collateral in RREF CDO 2006-1. RREM was appointed as the asset manager as of August 1, 2011. RREM performed lease review and approval, debt service collection, loan workout, foreclosure, disposition and/or entitlements 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 4.0% of the gross receipts generated from the property. The Company incurred fees payable to RREM in the amounts of $127,000, $136,000 and $136,000 during the years ended December 31, 2014, 2013 and 2012, respectively. The property was sold during the last quarter of 2014 for a gain of $1.9 million. | |
On December 1, 2009, the Company purchased a membership interest in RRE VIP Borrower, LLC (an unconsolidated VIE that held an interest in a real estate joint venture) from Resource America for $2.1 million, its book value (see Note 3). RREM was asset manager of the venture and received 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 years ended December 31, 2014, 2013 and 2012, the Company paid RREM management fees of $6,000, $28,000 and $45,000, respectively. For the years ended December 31, 2014, 2013 and 2012, the Company recorded income from RRE VIP Borrower of $3.5 million, $278,000 and $683,000, respectively, which was recorded in equity in net earnings (losses) of unconsolidated subsidiaries on the consolidated statement of income. The last property associated with the joint venture 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 was set to mature on January 14, 2015, and RCP elected to extend the loan until January 14, 2016. RCP has one additional option to extend for another 12-month period after this maturity. Principal payments of $391,000 and $621,000 were made during the years ended December 31, 2014 and 2013. The loan balance was $558,000 and $950,000 at December 31, 2014 and 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 2.0% 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 $912,000 gain which is recorded on the Company's statement of income 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 amounts of $151,000 and $167,000 during the years ended December 31, 2013 and 2012, respectively. No fees were paid for the year ended December 31, 2014 as the property was sold on September 30, 2013 for a gain of $16.6 million, which was recorded in gain on sale of real estate on the consolidated statements of income. | |
On June 19, 2012, the Company entered into a joint venture with Värde Investment Partners, LP acting as lender, to purchase two condominium developments. RREM acted as asset manager and was responsible for engaging third parties to perform day-to-day property management, property leasing, rent collection, maintenance, and capital improvements. RREM received an annual asset management fee equal to 1% of outstanding contributions. No management fees were paid for the year ended December 31, 2014, as all condominiums were sold as of December 31, 2013. The Company paid RREM management fees of $38,000 and $39,000 for the years ended December 31, 2013 and 2012, respectively. For the years ended December 31, 2014, 2013 and 2012, the Company recorded a loss of $20,000, income of $148,000 and a loss of $135,000, 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, must be 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 to Pelium Capital for an initial ownership interest of 80.4%. 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 which can increase its interest 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. As of December 31, 2014, the Company held a 74.1% interest in Pelium Capital. | |
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 years ended December 31, 2014, 2013 and 2012, the Company paid Ledgewood $280,000, $360,000 and $438,000, respectively, in connection with legal services rendered to the Company. |
DISTRIBUTIONS
DISTRIBUTIONS | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||
DISTRIBUTIONS [Abstract] | |||||||||||||||||||||||||||||||
DISTRIBUTIONS | NOTE 21 - DISTRIBUTIONS | ||||||||||||||||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, the Company has declared and paid $0.80, $0.80, and $0.80 dividends per common share, respectively. | |||||||||||||||||||||||||||||||
In order to qualify as a REIT, the Company must currently distribute at least 90% of its REIT 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 2015 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 years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
30-Sep | 28-Oct | $ | 26,629 | $ | 0.2 | ||||||||||||||||||||||||||
31-Dec | January 28, 2015 | $ | 26,563 | $ | 0.2 | ||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||
31-Mar | 26-Apr | $ | 21,634 | $ | 0.2 | ||||||||||||||||||||||||||
30-Jun | 26-Jul | $ | 25,399 | $ | 0.2 | ||||||||||||||||||||||||||
30-Sep | 28-Oct | $ | 25,447 | $ | 0.2 | ||||||||||||||||||||||||||
31-Dec | 28-Jan-14 | $ | 25,536 | $ | 0.2 | ||||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||||
31-Mar | 27-Apr | $ | 16,921 | $ | 0.2 | ||||||||||||||||||||||||||
30-Jun | 26-Jul | $ | 17,253 | $ | 0.2 | ||||||||||||||||||||||||||
30-Sep | 26-Oct | $ | 19,897 | $ | 0.2 | ||||||||||||||||||||||||||
31-Dec | 28-Jan-13 | $ | 21,024 | $ | 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 | |||||||||||||||||||||||||||||||
31-Mar | 30-Apr | $ | 463 | $ | 0.53125 | 30-Apr | $ | 2,057 | $ | 0.515625 | 30-Apr | $ | — | $ | — | ||||||||||||||||
30-Jun | 30-Jul | $ | 537 | $ | 0.53125 | 30-Jul | $ | 2,378 | $ | 0.515625 | 30-Jul | $ | 1,437 | $ | 0.0299479 | ||||||||||||||||
30-Sep | 30-Oct | $ | 537 | $ | 0.53125 | 30-Oct | $ | 2,430 | $ | 0.515625 | 30-Oct | $ | 2,588 | $ | 0.5390625 | ||||||||||||||||
31-Dec | 30-Jan-15 | $ | 568 | $ | 0.53125 | 30-Jan-15 | $ | 2,888 | $ | 0.515625 | 30-Jan-15 | 2,588 | $ | 0.5390625 | |||||||||||||||||
2013 | |||||||||||||||||||||||||||||||
31-Mar | 30-Apr | $ | 359 | $ | 0.53125 | 30-Apr | $ | 1,152 | $ | 0.515625 | |||||||||||||||||||||
30-Jun | 30-Jul | $ | 359 | $ | 0.53125 | 30-Jul | $ | 1,584 | $ | 0.515625 | |||||||||||||||||||||
30-Sep | 30-Oct | $ | 362 | $ | 0.53125 | 30-Oct | $ | 1,662 | $ | 0.515625 | |||||||||||||||||||||
31-Dec | 30-Jan-14 | $ | 362 | $ | 0.53125 | 30-Jan-14 | $ | 1,797 | $ | 0.515625 | |||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||||
31-Mar | — | $ | — | $ | — | — | $ | — | $ | — | |||||||||||||||||||||
30-Jun | 30-Jul | $ | 93 | $ | 0.27153 | — | $ | — | $ | — | |||||||||||||||||||||
30-Sep | 30-Oct | $ | 359 | $ | 0.53125 | 30-Oct | $ | 160 | $ | 0.16042 | |||||||||||||||||||||
31-Dec | 30-Jan-13 | $ | 359 | $ | 0.53125 | 30-Jan-13 | $ | 576 | $ | 0.515625 | |||||||||||||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 22 - FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||||
In analyzing the fair value of its investments accounted for on a fair value basis, the Company uses the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company determines fair value based on quoted prices when available or, if quoted prices are not available, through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The hierarchy followed defines three levels of inputs that may be used to measure fair value: | ||||||||||||||||||||
Level 1 - Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date. | ||||||||||||||||||||
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability. | ||||||||||||||||||||
Level 3 - Unobservable inputs that reflect the entity’s own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques. | ||||||||||||||||||||
The determination of where an asset or liability falls in the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter; depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. However, the Company expects that changes in classifications between levels will be rare. | ||||||||||||||||||||
Certain assets and liabilities are measured at fair value on a recurring basis. The following is a discussion of these assets and liabilities as well as the valuation techniques applied to each for fair value measurement. | ||||||||||||||||||||
The Company reports its investment securities, available-for-sale at fair value. To determine fair value, the Company uses an independent third-party valuation firm utilizing data available in the market as well as appropriate prepayment, default, and recovery rates. These valuations are validated utilizing dealer quotes or bids. If there is a material difference between the value indicated by the third-party valuation firm and the dealer quote or bid, the Company will evaluate the difference, which could result in an updated valuation from the third party or a revised dealer quote. Any changes in the fair value of investment securities, available-for-sale are recorded in other comprehensive income. Based on a prioritization of inputs used in the valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. | ||||||||||||||||||||
The Company reports its investment securities, trading at fair value, based on an independent third-party valuation. The Company evaluates the reasonableness of the valuation it receives by using a dealer quote. If there is a material difference between the value indicated by the third party and a quote the Company receives, the Company will evaluate the difference, which could result in an updated valuation from the third party or a revised dealer quote. Any changes in fair value are recorded in the Company’s results of operations as net unrealized (loss) gain on investment securities, trading. The Company's investments securities, trading are generally classified as Level 2 or Level 3 in the fair value hierarchy. | ||||||||||||||||||||
The CMBS underlying the Company’s linked transactions are valued using the same techniques as those used for the Company’s other investment securities, available-for-sale. The value of the underlying CMBS is then netted against the carrying amount of the corresponding repurchase agreement obligation at the valuation date (which approximates its fair value). The fair value of linked transactions also includes accrued interest receivable on the CMBS and accrued interest payable on the underlying repurchase agreement obligations. The Company’s linked transactions are generally classified as Level 2 or Level 3 in the fair value hierarchy. | ||||||||||||||||||||
Derivatives (interest rate swaps and interest rate caps), both assets and liabilities, are reported at fair value, and are valued by a third-party pricing agent using an income approach with models that use, as their primary inputs, readily observable market parameters. This valuation process considers factors including interest rate yield curves, time value, credit factors and volatility factors. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparties. The Company assesses the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and, if material, categorizes those derivatives within Level 3 of the fair value hierarchy. | ||||||||||||||||||||
The following table presents information about the Company’s assets (including derivatives that are presented net) measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as follows (in thousands): | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Investment securities, trading | $ | — | $ | — | $ | 20,786 | $ | 20,786 | ||||||||||||
Investment securities available-for-sale | — | 33,158 | 242,562 | 275,720 | ||||||||||||||||
CMBS - linked transactions | — | — | 15,367 | 15,367 | ||||||||||||||||
Derivatives (net) | 3,429 | 7 | 1,868 | 5,304 | ||||||||||||||||
Total assets at fair value | $ | 3,429 | $ | 33,165 | $ | 280,583 | $ | 317,177 | ||||||||||||
Liabilities: | ||||||||||||||||||||
Moselle CLO Notes | $ | — | $ | — | $ | 68,940 | $ | 68,940 | ||||||||||||
Derivatives (net) | — | — | 8,476 | 8,476 | ||||||||||||||||
Total liabilities at fair value | $ | — | $ | — | $ | 77,416 | $ | 77,416 | ||||||||||||
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 | 235 | 3,740 | (36 | ) | (3,638 | ) | 301 | |||||||||||||
Purchases | 123,671 | 79,289 | 31,058 | 19,359 | 253,377 | |||||||||||||||
Sales | (110,825 | ) | (38,262 | ) | — | (2,396 | ) | (151,483 | ) | |||||||||||
Paydowns | (43,891 | ) | (11,928 | ) | (825 | ) | (2,165 | ) | (58,809 | ) | ||||||||||
Issuances | — | — | — | — | — | |||||||||||||||
Settlements | — | — | — | — | — | |||||||||||||||
Included in OCI | 5,797 | 12,662 | 897 | (1,481 | ) | 17,875 | ||||||||||||||
Transfers into Level 2 | — | — | (31,545 | ) | — | (31,545 | ) | |||||||||||||
Transfers into Level 3 | — | — | — | — | — | |||||||||||||||
Balance, December 31, 2014 | 185,772 | 72,157 | — | 20,786 | 278,715 | |||||||||||||||
The Company's Level 3 assets also included $898,000 related to the fair market value of warrants received as consideration as part of the origination of a middle market loan and approximately $970,000 related to the fair value of interest rate locks in the Company's residential mortgage loan origination business. | ||||||||||||||||||||
The Company began using a third-party valuation firm to determine fair value of its remaining RMBS portfolio, which is comprised of new issue mezzanine and interest-only strips in a fixed-pool securitization collateralized by residential jumbo loans. As a result, $31.5 million of RMBS were reclassified to Level 2 during the year ended December 31, 2014. | ||||||||||||||||||||
The Company had $0, $328,000 and $42,000 of losses included in earnings due to the other-than-temporary impairment charges during the years ended December 31, 2014, 2013 and 2012, respectively. With respect to the charge noted in December 31, 2013, the Company recorded a final charge-off adjustments on assets that had previous principal losses. For the year ended December 31, 2012, there was other-than-temporary impairment taken on one asset. These losses were included in the consolidated statements of income as net impairment losses recognized in earnings. | ||||||||||||||||||||
The following table presents additional information about liabilities which are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs (in thousands): | ||||||||||||||||||||
Level 3 | ||||||||||||||||||||
Beginning balance, January 1, 2013 | $ | 14,077 | ||||||||||||||||||
Unrealized losses – included in accumulated other comprehensive income | (3,886 | ) | ||||||||||||||||||
Beginning balance, January 1, 2014 | 10,191 | |||||||||||||||||||
Unrealized losses – included in accumulated other comprehensive income | (1,715 | ) | ||||||||||||||||||
Ending balance, December 31, 2014 | $ | 8,476 | ||||||||||||||||||
For the year ended December 31, 2014, the Company both acquired and liquidated the assets in Moselle CLO. As of December 31, 2014, all that remained of the Company's investment in Moselle CLO were cash, receivables related to the liquidation of Moselle CLO's assets, and the notes of the securitization (See Footnote 14 for further discussion of Moselle CLO's notes). At acquisition, the Company recorded $176.9 million as the fair value of the notes (including the fair value of the securitized borrowing described in Footnote 14). During the year ended December 31, 2014, paydowns of $100.3 million were received, and net fair value and foreign currency adjustments of $7.5 million were recognized through earnings, resulting in a combined fair value of $68.9 million ($63.3 million of which was attributable to Moselle CLO's senior notes and $5.6 million was attributable to Moselle CLO's securitized borrowings). | ||||||||||||||||||||
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 years ended December 31, 2014 , 2013 and 2012 was $1.3 million, $3.1 million and $7.8 million, respectively, and is included in the consolidated statements of income as provision for loan and lease losses. | ||||||||||||||||||||
The following table summarizes 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 December 31, 2014: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Loans held for sale | $ | — | $ | 36,956 | $ | — | $ | 36,956 | ||||||||||||
Impaired loans | — | 1,678 | 137,811 | 139,489 | ||||||||||||||||
Total assets at fair value | $ | — | $ | 38,634 | $ | 137,811 | $ | 176,445 | ||||||||||||
As of December 31, 2013: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Loans held for sale | $ | — | $ | 6,850 | $ | 15,066 | $ | 21,916 | ||||||||||||
Impaired loans | — | 225 | — | 225 | ||||||||||||||||
Total assets at fair value | $ | — | $ | 7,075 | $ | 15,066 | $ | 22,141 | ||||||||||||
For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2014, the significant unobservable inputs used in the fair value measurements were as follows (in thousands): | ||||||||||||||||||||
Fair Value at December 31, 2014 | Valuation Technique | Significant Unobservable Inputs | Significant Unobservable Input Value | |||||||||||||||||
Interest rate swap agreements | $ | 8,476 | Discounted cash flow | Weighted average credit spreads | 5.12 | % | ||||||||||||||
The Company is required to disclose the fair value of financial instruments for which it is practicable to estimate that value. The fair value of short-term financial instruments such as cash and cash equivalents, restricted cash, principal paydown receivable, interest receivable, distribution payable and accrued interest expense approximates their carrying value on the consolidated balance sheets. The fair value of the Company’s investment securities, trading is reported in see Note 6. The fair value of the Company’s investment securities available-for-sale is reported in see Note 7. The fair value of the Company’s derivative instruments and linked transactions is reported in this Note 21. | ||||||||||||||||||||
Loans held-for-investment: The fair value of the Company’s Level 2 Loans held-for-investment was primarily measured using a third-party pricing service. The fair value of the Company’s Level 3 Loans held-for-investment was measured by discounting the expected future cash flows using the current interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. | ||||||||||||||||||||
Loans receivable-related party are estimated by discounting the expected future cash flows using the current interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. | ||||||||||||||||||||
CDO notes are valued using the dealer quotes, typically the dealer who underwrote the CDO in which the notes are held. | ||||||||||||||||||||
Junior subordinated notes are estimated by obtaining quoted prices for similar assets in active markets. | ||||||||||||||||||||
The fair values of the Company’s remaining financial instruments that are not reported at fair value on the consolidated balance sheets are reported below (in thousands): | ||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
Carrying Amount | Fair Value | Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||
Loans held-for-investment | $ | 1,925,980 | $ | 1,909,019 | $ | — | $ | 570,071 | $ | 1,338,948 | ||||||||||
Loans receivable-related party | $ | 1,277 | $ | 1,277 | $ | — | $ | — | $ | 1,277 | ||||||||||
CDO notes | $ | 1,046,493 | $ | 975,762 | $ | — | $ | — | $ | 975,762 | ||||||||||
Junior subordinated notes | $ | 51,205 | $ | 17,699 | $ | — | $ | — | $ | 17,699 | ||||||||||
Repurchase agreements | $ | 399,662 | $ | 399,662 | $ | — | $ | — | $ | 399,662 | ||||||||||
Senior secured revolving credit agreement | $ | 111,137 | $ | 111,137 | $ | — | $ | — | $ | 111,137 | ||||||||||
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 | ||||||||||
MARKET_RISK_AND_DERIVATIVE_INS
MARKET RISK AND DERIVATIVE INSTRUMENTS | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||
MARKET RISK AND DERIVATIVE INSTRUMENTS | NOTE 23 - 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 hold various derivatives in the ordinary course of business, including warrants, interest rate swaps, forward contracts, options, and interest rate lock commitments. Warrants are securities that give the holder the right, but not the obligation, to purchase securities from an issuer at a specific price within a specified time period. Options are contracts sold by one party to another that give the buyer the right, but not the obligation, to buy or sell a financial asset at an agreed-upon price during a certain period of time or on a specific date. 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 December 31, 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 $124.0 million at December 31, 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 $8.7 million and $10.6 million as of December 31, 2014 and 2013, respectively. The Company had aggregate unrealized losses of $9.0 million and $10.8 million on the interest rate swap agreements as of December 31, 2014 and 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. The Company classifies these hedges as fair value hedges, which are hedges that eliminate the risk of changes in the fair values of assets, liabilities, and certain types of firm commitments. The Company records changes in fair value of derivatives designated and effective as fair value hedges in earnings, offset by corresponding changes in the fair values of the hedges items. | ||||||||||||||||||||||||
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. | ||||||||||||||||||||||||
In the next twelve months, the Company expects to reclassify $273,000 from accumulated other comprehensive loss to earnings. The amount relates to the termination of 18 hedges during the years ended December 31, 2006, 2007 and 2008 and the requirement for the remaining gains and losses to be amortized over the life of the remaining debt. In addition, in the next twelve months, the Company expects to pay $5.7 million in net interest expense for its hedges. | ||||||||||||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company recognized expense of $282,000, $288,000 and $279,000, respectively, into earnings related to the amortization of gains and losses on 18 terminated hedges. | ||||||||||||||||||||||||
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. | ||||||||||||||||||||||||
In March 2014, the Company was issued warrants in connection with the funding of a middle market loan. The warrants give the Company the right, but not the obligation, to purchase up to 1.3% of the total fully diluted common stock of Constellation Health LLC. As amended in September 2014, the warrants have an exercise price equal to the lesser of the Constellation Health's trailing twelve month earnings before interest, taxes, depreciation, and amortization times a multiplier of 6, or $50.0 million. The warrants also feature a seven-year term, allowances for either cash-based or cashless exercise, standard adjustments for stock splits, full-ratchet anti-dilution adjustments, and beneficial ownership limitations. The value of the warrants was calculated by performing a Black-Scholes analysis. | ||||||||||||||||||||||||
In December 2014, the Company, through its subsidiary, Pelium, purchased call options on U.S. Treasury futures to act as a hedge against interest rate risk. The options gave the Company the right, but not the obligation, to purchase futures contracts on March 2015 U.S. Treasury notes. The options have strike prices ranging from $127.0 to $128.50 and expired on February 20, 2015. | ||||||||||||||||||||||||
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 December 31, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||
Notional Amount | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
Interest rate lock agreements | $ | 59,467 | Derivatives, at fair value | $ | 970 | |||||||||||||||||||
Forward contracts - residential mortgage lending | $ | 5,000 | Derivatives, at fair value | $ | 7 | |||||||||||||||||||
Forward contracts - RMBS securities | $ | 42,614 | Derivatives, at fair value | $ | 1,297 | |||||||||||||||||||
Forward contracts - foreign currency, hedging | $ | 54,948 | Derivatives, at fair value | $ | 3,377 | |||||||||||||||||||
Options - U.S. Treasury futures | $ | 90 | Derivatives, at fair value | $ | 52 | |||||||||||||||||||
Warrants | $ | 492 | Derivatives, at fair value | $ | 898 | |||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||
Notional Amount | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
Interest rate swap contracts | $ | 124,017 | Derivatives, at fair value | $ | 8,680 | |||||||||||||||||||
Interest rate lock agreements | $ | 798 | Derivatives, at fair value | $ | 10 | |||||||||||||||||||
Forward contracts - residential mortgage lending | $ | 154,692 | Derivatives, at fair value | $ | 1,036 | |||||||||||||||||||
Forward contracts - foreign currency, hedging | $ | — | Derivatives, at fair value | $ | — | |||||||||||||||||||
Forward contracts - TBA securities | $ | 15,000 | Derivatives, at fair value | $ | 47 | |||||||||||||||||||
Interest rate swap contracts | $ | 124,017 | Accumulated other comprehensive loss | $ | 8,680 | |||||||||||||||||||
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, hedging | $ | — | 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, hedging | $ | — | 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 | ||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||
Notional Amount | Statement of Income Location | Unrealized Gains (Loss) (1) | ||||||||||||||||||||||
Interest rate swap contracts | $ | 124,017 | Interest expense | $ | 6,555 | |||||||||||||||||||
Interest rate lock agreements | $ | 60,265 | Net realized gain on sales of investment securities available-for-sale and loans | $ | 960 | |||||||||||||||||||
Forward contracts - residential mortgage lending | $ | 159,692 | Net realized gain on sales of investment securities available-for-sale and loans | $ | (1,029 | ) | ||||||||||||||||||
Forward contracts - RMBS securities | $ | 42,614 | Net realized gain on sales of investment securities available-for-sale and loans | $ | 1,297 | |||||||||||||||||||
Forward contracts - foreign currency, hedging | $ | 54,948 | Net realized gain on sales of investment securities available-for-sale and loans | $ | 3,377 | |||||||||||||||||||
Options - U.S. Treasury futures | $ | 90 | Net realized gain on sales of investment securities available-for-sale and loans | $ | (28 | ) | ||||||||||||||||||
Forward contracts - TBA securities | $ | 15,000 | Net realized gain on sales of investment securities available-for-sale and loans | $ | (47 | ) | ||||||||||||||||||
Warrants | $ | 492 | Net realized gain on sales of investment securities available-for-sale and loans | $ | 898 | |||||||||||||||||||
The Effect of Derivative Instruments on the Statements of Income for the | ||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||
Notional Amount | Statement of Income Location | Unrealized Loss (1) | ||||||||||||||||||||||
Interest rate swap contracts | $ | 129,497 | Interest expense | $ | 6,751 | |||||||||||||||||||
The Effect of Derivative Instruments on the Statements of Income for the | ||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||
Notional Amount | Statement of Income Location | Unrealized Loss (1) | ||||||||||||||||||||||
Interest rate swap contracts | $ | 135,241 | Interest expense | $ | 7,266 | |||||||||||||||||||
(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 December 31, 2014 and 2013. | ||||||||||||||||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||
Designation | Balance Sheet Location | Fair Value (1) | ||||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||
Linked transactions at fair value | Non-Hedging | Linked transactions, net at fair value | $ | 15,367 | ||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
Linked transactions at fair value | Non-Hedging | Linked transactions, net at fair value | $ | 30,066 | ||||||||||||||||||||
-1 | Fair value equals the sum of the cost basis, mark to market adjustments, and accrued interest receivable less repurchase agreement debt at fair value and accrued interest expense. | |||||||||||||||||||||||
The Effect of Derivative Instruments on the Statement of Income for the | ||||||||||||||||||||||||
Years Ended December 31, 2014, 2013 and 2012 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||
Designation | Statement of Income Location | Income (Expense) (1) | ||||||||||||||||||||||
Linked transactions at fair value, 2014 | Non-Hedging | Unrealized gain and net interest income on linked transactions, net | $ | 7,850 | ||||||||||||||||||||
Linked transactions at fair value, 2013 | Non-Hedging | Unrealized (loss) and net interest income on linked transactions, net | $ | (3,841 | ) | |||||||||||||||||||
Linked transactions at fair value, 2012 | Non-Hedging | Unrealized gain and net interest income on linked transactions, net | $ | 728 | ||||||||||||||||||||
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 years ended 2014, 2013 and 2012 (in thousands): | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Components of Unrealized Net (Losses) Gains and Net Interest Income | ||||||||||||||||||||||||
Income from Linked Transactions | ||||||||||||||||||||||||
Interest income attributable to CMBS underlying linked transactions | $ | 2,879 | $ | 2,912 | $ | 802 | ||||||||||||||||||
Interest expense attributable to linked repurchase | (644 | ) | (735 | ) | (242 | ) | ||||||||||||||||||
agreement borrowings underlying linked transactions | ||||||||||||||||||||||||
Change in fair value of linked transactions included in earnings | 5,615 | (6,018 | ) | 168 | ||||||||||||||||||||
Unrealized net (losses) gains and net interest income from linked transactions | $ | 7,850 | $ | (3,841 | ) | $ | 728 | |||||||||||||||||
The following table summarizes the Company's investment securities, underlying linked transactions, which are carried at fair value (in thousands): | ||||||||||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair | |||||||||||||||||||||
Value (1) | ||||||||||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||||
CMBS linked transactions | $ | 48,138 | $ | 539 | $ | (72 | ) | $ | 48,605 | |||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||
CMBS linked transactions | $ | 99,493 | $ | 446 | $ | (6,116 | ) | $ | 93,823 | |||||||||||||||
-1 | Does not include linked CMBS accrued interest receivable totaling $159,000 and $337,000 as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||
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 | |||||||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||||
Less than one year | $ | 7,834 | $ | 7,775 | 5.36% | |||||||||||||||||||
Greater than one year and less than five years | 36,587 | 36,274 | 4.65% | |||||||||||||||||||||
Greater than five years and less than ten years | 4,184 | 4,089 | 4.52% | |||||||||||||||||||||
Greater than ten years | — | — | —% | |||||||||||||||||||||
Total | $ | 48,605 | $ | 48,138 | 4.66% | |||||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||
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 December 31, 2014: | ||||||||||||||||||||||||
CMBS linked transactions | $ | 7,609 | $ | (57 | ) | $ | 777 | $ | (15 | ) | $ | 8,386 | $ | (72 | ) | |||||||||
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, 2013 | Net Purchases | Upgrades/Downgrades | Paydowns | MTM Change on Same Ratings | December 31, 2014 | |||||||||||||||||||
Moody's Ratings Category: | ||||||||||||||||||||||||
Aaa | $ | 26,682 | $ | (18,704 | ) | $ | — | $ | (498 | ) | $ | (332 | ) | $ | 7,148 | |||||||||
Aa1 through Aa3 | 8,919 | (9,589 | ) | — | — | 670 | — | |||||||||||||||||
A1 through A3 | — | — | — | — | — | — | ||||||||||||||||||
Baa1 through Baa3 | 6,473 | — | — | — | 17 | 6,490 | ||||||||||||||||||
Ba1 through Ba3 | 10,310 | (10,768 | ) | — | — | 458 | — | |||||||||||||||||
B1 through B3 | 12,155 | 8,258 | — | — | 763 | 21,176 | ||||||||||||||||||
Non-Rated | 29,284 | (16,358 | ) | — | — | 865 | 13,791 | |||||||||||||||||
Total | $ | 93,823 | $ | (47,161 | ) | $ | — | $ | (498 | ) | $ | 2,441 | $ | 48,605 | ||||||||||
S&P Ratings Category: | ||||||||||||||||||||||||
AAA | $ | 17,642 | $ | (9,773 | ) | $ | — | $ | (498 | ) | $ | (1,000 | ) | 6,371 | ||||||||||
BBB+ through BBB- | 9,953 | — | 1,034 | — | 123 | 11,110 | ||||||||||||||||||
BB+ through BB- | 2,865 | 102 | 4,422 | — | 254 | 7,643 | ||||||||||||||||||
B+ through B- | 19,619 | 5,065 | (5,456 | ) | — | 708 | 19,936 | |||||||||||||||||
CCC+ through CCC- | 2,769 | — | — | — | 2,769 | |||||||||||||||||||
Non-Rated | 43,744 | (45,324 | ) | — | — | 2,356 | 776 | |||||||||||||||||
Total | $ | 93,823 | $ | (47,161 | ) | $ | — | $ | (498 | ) | $ | 2,441 | $ | 48,605 | ||||||||||
The following table summarizes the Company's CMBS linked repurchase agreements (in thousands, except percentages): | ||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
Maturity or Repricing | Balance (1) | Weighted Average Interest Rate | Balance (1) | Weighted Average Interest Rate | ||||||||||||||||||||
Within 30 days | $ | 33,397 | 1.56 | % | $ | 64,094 | 1.25 | % | ||||||||||||||||
>30 days to 90 days | — | — | % | — | — | % | ||||||||||||||||||
Total | $ | 33,397 | 1.56 | % | $ | 64,094 | 1.25 | % | ||||||||||||||||
-1 | Equal to linked CMBS repurchase value plus accrued interest expenses totaling $20,000 and$38,000 as of December 31, 2014 and 2013, respectively. |
OFFSETTING_OF_FINANCIAL_ASSETS
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Offsetting [Abstract] | |||||||||||||||||||||||||
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | NOTE 24 - OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | ||||||||||||||||||||||||
The following table presents a summary of the Company's offsetting of derivative assets, presented(in thousands): | |||||||||||||||||||||||||
(i) | (ii) | (iii) =i) - (ii) | (iv) | ||||||||||||||||||||||
Gross Amounts of | Gross Amounts Offset in the | Net Amounts of Assets Presented in | Gross Amounts Not Offset in | ||||||||||||||||||||||
Recognized | Consolidated | the Consolidated | the Consolidated Balance Sheet | ||||||||||||||||||||||
Assets | Balance Sheet | Balance Sheet | Financial | Cash | (v) =iii) - (iv) | ||||||||||||||||||||
Instruments | Collateral | Net Amount | |||||||||||||||||||||||
Pledged | |||||||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||
Derivative hedging instruments, | $ | 4,334 | $ | — | $ | 4,334 | $ | — | $ | — | $ | 4,334 | |||||||||||||
at fair value | |||||||||||||||||||||||||
Linked transactions | $ | 48,764 | $ | 33,397 | $ | 15,367 | $ | — | $ | — | $ | 15,367 | |||||||||||||
Total | $ | 53,098 | $ | 33,397 | $ | 19,701 | $ | — | $ | — | $ | 19,701 | |||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Derivative hedging instruments, | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
at fair value | |||||||||||||||||||||||||
Linked transactions | $ | 94,160 | $ | 64,094 | $ | 30,066 | $ | — | $ | — | $ | 30,066 | |||||||||||||
Total | $ | 94,160 | $ | 64,094 | $ | 30,066 | $ | — | $ | — | $ | 30,066 | |||||||||||||
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): | |||||||||||||||||||||||||
(i) | (ii) | (iii) =i) - (ii) | (iv) | (v) =iii) - (iv) | |||||||||||||||||||||
Gross Amounts of | Gross Amounts Offset in the | Net Amounts of Liabilities Presented in | Gross Amounts Not Offset in | Net Amount | |||||||||||||||||||||
Recognized | Consolidated | the Consolidated | the Consolidated Balance Sheets | ||||||||||||||||||||||
Liabilities | Balance Sheets | Balance Sheets | Financial | Cash | |||||||||||||||||||||
Instruments (1) | Collateral | ||||||||||||||||||||||||
Pledged (2) | |||||||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||
Derivative hedging instruments, | $ | 8,466 | $ | — | $ | 8,466 | $ | — | $ | 500 | $ | 7,966 | |||||||||||||
at fair value (3) | |||||||||||||||||||||||||
Repurchase agreements (4) | 399,662 | — | 399,662 | 399,662 | — | — | |||||||||||||||||||
Linked transactions | 33,397 | 33,397 | — | — | — | — | |||||||||||||||||||
Total | $ | 441,525 | $ | 33,397 | $ | 408,128 | $ | 399,662 | $ | 500 | $ | 7,966 | |||||||||||||
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 | — | — | |||||||||||||||||||
Linked transactions | 64,094 | 64,094 | — | — | — | — | |||||||||||||||||||
Total | $ | 166,611 | $ | 64,094 | $ | 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 December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||
-4 | The fair value of securities pledged against the Company's repurchase agreements was $565.6 million and $121.6 million at December 31, 2014 and 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. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
INCOME TAXES | NOTE 25 - INCOME TAXES | |||||||||||
The Company operates in such a manner as to quality as a REIT, under the provisions of the Internal Revenue Code of 1986, as amended (the "Code"); therefore, applicable REIT taxable income is included in the taxable income of its shareholders, to the extent distributed by the Company. To maintain REIT status for federal income tax purposes, the Company is generally required to distribute at least 90% of its REIT taxable income to its shareholders as well as comply with certain other qualification requirements as defined under the Code. As a REIT, the Company is not subject to federal corporate income tax to extent that it distributes 100% of its REIT taxable income each year. | ||||||||||||
Taxable income from non-REIT activities managed through the Company's taxable REIT subsidiaries is subject to federal, state and local income taxes. The Company's taxable REIT subsidiaries' income taxes are accounted for under the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for the temporary differences between the financial reporting basis and tax basis of assets and liabilities. | ||||||||||||
The following table details the components of income taxes (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Provision (benefit) for income taxes: | ||||||||||||
Current: | ||||||||||||
Federal | $ | 6,819 | $ | 4,601 | $ | 11,497 | ||||||
State | 2,505 | 1,068 | 776 | |||||||||
Total current | 9,324 | 5,669 | 12,273 | |||||||||
Deferred: | ||||||||||||
Federal | (9,450 | ) | (5,116 | ) | 1,769 | |||||||
State | (2,086 | ) | (1,594 | ) | 560 | |||||||
Total deferred | (11,536 | ) | (6,710 | ) | 2,329 | |||||||
Income tax provision (benefit) | $ | (2,212 | ) | $ | (1,041 | ) | $ | 14,602 | ||||
A reconciliation of the income tax benefit (provision) based upon the statutory tax rate to the effective income tax rate is as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Statutory tax | $ | (2,232 | ) | $ | (588 | ) | $ | 9,518 | ||||
State and local taxes, net of federal benefit | (375 | ) | (728 | ) | 225 | |||||||
Permanent adjustments | 41 | 2 | 32 | |||||||||
Subpart F income | — | — | 3,458 | |||||||||
Basis difference in LCC investment | — | — | — | |||||||||
True-up of prior period tax expense | 353 | 253 | — | |||||||||
Other items | 1 | 20 | 1,369 | |||||||||
$ | (2,212 | ) | $ | (1,041 | ) | $ | 14,602 | |||||
The components of deferred tax assets and liabilities are as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets related to: | ||||||||||||
Investment in securities | $ | 1,030 | $ | 118 | ||||||||
Intangible assets basis difference | 2,533 | 2,725 | ||||||||||
Federal, state and local loss carryforwards | 7,848 | 941 | ||||||||||
Subpart F income | — | 1,359 | ||||||||||
Partnership investment | — | 2 | ||||||||||
Deferred revenue | 207 | 23 | ||||||||||
Accrued expenses | 56 | 44 | ||||||||||
Amortization of intangibles | 766 | — | ||||||||||
Unrealized gains/losses | 1,799 | — | ||||||||||
Mark to market adjustment | 188 | — | ||||||||||
Charitable contribution carryforwards | 6 | — | ||||||||||
Equity compensation | 167 | — | ||||||||||
Gain (loss) on sale of investments | 116 | — | ||||||||||
Partnership investment | (1,622 | ) | — | |||||||||
Total deferred tax assets | 13,094 | 5,212 | ||||||||||
Valuation allowance | — | — | ||||||||||
Total deferred tax assets | $ | 13,094 | $ | 5,212 | ||||||||
Deferred tax liabilities related to: | ||||||||||||
Unrealized loss on investments | $ | (366 | ) | $ | (3,764 | ) | ||||||
Equity investments | — | (153 | ) | |||||||||
Basis difference in LCC investment | — | (195 | ) | |||||||||
Depreciation | (1 | ) | — | |||||||||
Accrued expenses | (3 | ) | — | |||||||||
Partnership investment | (90 | ) | — | |||||||||
Total deferred tax liabilities | $ | (460 | ) | $ | (4,112 | ) | ||||||
Deferred tax assets, net (1) | $ | 12,634 | $ | 1,100 | ||||||||
-1 | Deferred tax asset, net agrees to the Deferred tax assets less Deferred tax liability presented on the Consolidated Balance Sheets as of December 31, 2014. | |||||||||||
Apidos CDO I, Apidos CDO III, Apidos Cinco CDO, Apidos CLO VIII, Whitney CLO I, Harvest CLO VII, Moselle CLO, Harvest CLO VIII, Harvest X Investor, and Harvest CLO X, the Company's foreign TRSs, are organized as exempted companies incorporated with limited liability under the laws of the Cayman Islands and, with respect to Moselle CLO, Luxembourg and, with respect to Harvest CLO VII, Harvest CLO VIII, and Harvest CLO X, Ireland, and are generally exempt from federal and state income tax at the corporate level because their activities in the United States are limited to trading in stock and securities for their own account. Therefore, despite their status as TRSs, they generally will not be subject to corporate tax on their earnings and no provision for income taxes is required; however, because they are “controlled foreign corporations,” the Company will generally be required to include Apidos CDO I's, Apidos CDO III's, Apidos Cinco CDO's, Apidos CLO VIII's, Whitney CLO I's, Harvest CLO VII’s, Moselle CLO’s, Harvest CLO VIII’s, Harvest X Investor’s, and Harvest X CLO’s current taxable income in its calculation of REIT taxable income. | ||||||||||||
On October 27, 2011 the Company reorganized the ownership structure of Apidos CDO I and Apidos CDO III. As a result, the earnings from Apidos CDO I and Apidos CDO III are excluded from the Company's calculation of REIT taxable income and are subject to corporate tax. On January 24, 2012, the Company again reorganized the ownership structure of Apidos CDO I and Apidos CDO III. As a result, for the period January 1, 2012 through January 23, 2012, the earnings from Apidos CDO I and Apidos CDO III are excluded from the Company's calculation of REIT taxable income and are subject to corporate tax. For the period January 24, 2012 through December 31, 2012 the earnings from Apidos CDO I are included in the Company's calculation of REIT taxable income. On December 11, 2012, the Company further reorganized the ownership structure of Apidos CDO III. As a result, for the period from January 24, 2012 through December 10, 2012 the earnings from Apidos CDO III are included in the Company's calculation of REIT taxable income. Also as a result of the reorganization on December 11, 2012, for the period December 11, 2012 through December 31, 2012, the earnings from Apidos CDO III are excluded from the Company's calculation of REIT taxable income and are subject to corporate tax. | ||||||||||||
On November 12, 2012, the Company reorganized the ownership structure of Apidos Cinco CDO and Whitney CLO I. As a result, for the period November 12, 2012 through December 31, 2012, the earnings from Apidos Cinco CDO and Whitney CLO I are excluded from the Company's calculation of REIT taxable income and are subject to corporate tax. Accordingly, a provision for income taxes on the earnings from November 12, 2012 through December 31, 2012 has been recorded. | ||||||||||||
On February 13, 2013, the Company reorganized the ownership structure of Apidos Cinco CDO and Whitney CLO I. As a result, for the period January 1, 2013 through February 12, 2013, the earnings from Apidos Cinco CDO and Whitney CLO I are excluded from the Company’s calculation of REIT taxable income and are subject to corporate tax. Accordingly, a provision for income taxes on the earnings from January 1, 2013 through February 12, 2013 has been recorded. Also as a result of the reorganization on February 13, 2013, for the period February 13, 2013 and ending December 31, 2013 the earnings from Apidos Cinco CDO and Whitney CLO I are included in the Company’s calculation of REIT taxable income. | ||||||||||||
On March 8, 2013 the Company reorganized the ownership structure of Apidos CDO III. As a result, the earnings from Apidos CDO III for the period January 1, 2013 through March 7, 2013 are excluded from the Company’s calculation of REIT taxable income and are subject to corporate tax. Accordingly, a provision for income taxes on the earnings from January 1, 2013 through March 7, 2013 has been recorded. Also as a result of the reorganization on March 8, 2013, for the period March 8, 2013 and ending December 31, 2013 the earnings from Apidos CDO III are included in the Company’s calculation of REIT taxable income. | ||||||||||||
On September 10, 2013, the Company acquired approximately 9.5% of the equity of Harvest CLO VII, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of Ireland. This equity is directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. | ||||||||||||
On February 24, 2014, the Company acquired approximately 88.6% of the equity of Moselle CLO S.A., which is a foreign TRS, incorporated in Luxembourg. This equity is directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. | ||||||||||||
On March 27, 2014, the Company acquired approximately 12.6% of the equity of Harvest CLO VIII, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of Ireland. This equity is directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. | ||||||||||||
On July 3, 2014, the Company acquired approximately 55% of the equity of Harvest X Investor, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of the Cayman Islands. As of November 6, 2014, the Company’s investment was returned and the Company no longer has an active ownership interest in Harvest X Investor. For the period July 3, 2014 through November 6, 2014 the equity was directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. | ||||||||||||
On November 6, 2014, the Company acquired approximately 32.1% of the equity of Harvest CLO X, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of Ireland. This equity is directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. | ||||||||||||
Effective January 1, 2007, the Company adopted the provisions of FASB's guidance for uncertain tax positions. This implementation did not have an impact on the Company's consolidated balance sheets or consolidated statements of income. The guidance prescribes that a tax position should only be recognized if it is more likely than not that the position will be sustained upon examination by the appropriate taxing authority. A tax position that meets this threshold is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. The Company is required to disclose its accounting policy for classifying interest and penalties, the amount of interest and penalties charged to expense each period as well as the cumulative amounts recorded in the consolidated balance sheets. The Company will continue to classify any tax penalties as other operating expenses and any interest as interest expense. The Company does not have any unrecognized tax benefits that would affect the Company's financial position. | ||||||||||||
As of December 31, 2014, the Company had gross federal $15.5 million and gross state and local $18.2 million net operating tax loss carryforwards ("NOLs") of $33.8 million (deferred tax asset of $6.1 million) that will begin to expire in 2032. Management believes it is more likely than not that the Company will be able to utilize all of these NOLs during the respective loss carry forward periods based on tax planning strategies that will generate future taxable income. As such, a valuation allowance has not been established against these deferred tax assets. Management will continue to assess the need for a valuation allowance in future periods | ||||||||||||
As of December 31, 2014, income tax returns for the calendar years 2011 - 2014 remain subject to examination by IRS and/or any state or local taxing jurisdiction. The Company has not executed any agreements with the IRS or any state and/or local taxing jurisdiction to extend a statue of limitations in relation to any previous year. |
QUARTERLY_RESULTS
QUARTERLY RESULTS | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
QUARTERLY RESULTS | NOTE 26 - QUARTERLY RESULTS | |||||||||||||||
The following is a presentation of the quarterly results of operations: | ||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Year Ended December 31, 2014: | ||||||||||||||||
Interest income | $ | 27,085 | $ | 30,592 | $ | 33,841 | $ | 35,389 | ||||||||
Interest expense (1) | 9,627 | 10,610 | 11,510 | 13,726 | ||||||||||||
Net interest income | $ | 17,458 | $ | 19,982 | $ | 22,331 | $ | 21,663 | ||||||||
Net income allocable to common shares | $ | 15,116 | $ | 14,677 | $ | 7,328 | $ | 6,906 | ||||||||
Net income per share − basic | $ | 0.12 | $ | 0.12 | $ | 0.06 | $ | 0.05 | ||||||||
Net income per share − diluted | $ | 0.12 | $ | 0.11 | $ | 0.06 | $ | 0.05 | ||||||||
Year Ended December 31, 2013: | ||||||||||||||||
Interest income | $ | 33,320 | $ | 30,715 | $ | 28,464 | $ | 25,477 | ||||||||
Interest expense | 11,165 | 11,134 | 11,762 | 26,949 | ||||||||||||
Net interest income | $ | 22,155 | $ | 19,581 | $ | 16,702 | $ | (1,472 | ) | |||||||
Net income | $ | 11,526 | $ | 6,533 | $ | 22,121 | $ | (948 | ) | |||||||
Net income per share − basic | $ | 0.11 | $ | 0.05 | $ | 0.18 | $ | (0.01 | ) | |||||||
Net income per share − diluted | $ | 0.11 | $ | 0.05 | $ | 0.18 | $ | (0.01 | ) | |||||||
-1 | Certain reclassifications have been made to the 2014 consolidated financial statements. |
Commitments_and_Contingency_No
Commitments and Contingency (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 27 - 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 additional disclosure in the consolidated financial statements as of December 31, 2014. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 28 - SUBSEQUENT EVENTS |
The Company has evaluated subsequent events through the filing of this report and determined that there have not been any events that have occurred that would require adjustments to or disclosures in the consolidated financial statements, except the following: | |
The Company received $3.0 million in proceeds from the issuance of 139,333 shares of Series B preferred stock through the Company’s dividend reinvestment plan during January and February 2015. | |
On January 13, 2015, the Company issued and sold in a public offering $100.0 million aggregate principal amount of its 8.0% Convertible Senior Notes due 2020. After deducting the underwriting discount and the estimated offering costs, the Company received approximately $97.0 million of net proceeds. | |
On January 23, 2015, the Company received $23.0 million from the 2014 fourth quarter liquidation of Moselle CLO S.A. after using the sales proceeds to pay down the securitization's remaining notes in full. | |
On February 24, 2015, the Company closed RCC 2015-CRE3, a $346.2 million CRE securitization transaction that provided financing for transitional commercial real estate loans. RCC 2015-CRE3 issued a total of $282.1 million of senior notes at par to outside investors. The Company also purchased 100% of the Class E and Class F senior notes for a total of $36.3 million. The Company also purchased a $27.7 million subordinated interest in the CLO, representing 100% of the preference shares. The weighted average cost of funds on the securitization at closing was LIBOR plus 190 basis points. |
Schedule_II_Valuation_and_Qual
Schedule II Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||
SCHEDULE II Valuation and Qualifying Accounts | SCHEDULE II | ||||||||||||||||||||
Resource Capital Corp. | |||||||||||||||||||||
Valuation and Qualifying Accounts | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Balance at | Charge to | Write-offs | Recoveries | Balance at | |||||||||||||||||
beginning of period | expense | end of period | |||||||||||||||||||
Allowance for loan and lease loss: | |||||||||||||||||||||
Year ended December 31, 2014 | $ | 13,807 | $ | 1,804 | $ | (10,998 | ) | $ | — | $ | 4,613 | ||||||||||
Year ended December 31, 2013 | $ | 17,691 | $ | 3,020 | $ | (6,904 | ) | $ | — | $ | 13,807 | ||||||||||
Year ended December 31, 2012 | $ | 27,518 | $ | 16,818 | $ | (26,645 | ) | $ | — | $ | 17,691 | ||||||||||
Schedule_III_Real_Estate_and_A
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | |||||||||||||
SCHEDULE III Real Estate and Accumulated Depreciation | SCHEDULE III | ||||||||||||
Resource Capital Corp. | |||||||||||||
Real Estate and Accumulated Depreciation | |||||||||||||
December 31, 2014 | |||||||||||||
(dollars in thousands) | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Real Estate | |||||||||||||
Balance, beginning of year | $ | 32,380 | $ | 77,936 | $ | 48,726 | |||||||
Additions: | |||||||||||||
Acquired through foreclosure | — | — | 25,608 | ||||||||||
Improvements | 25 | 268 | 3,645 | ||||||||||
25 | 268 | 29,253 | |||||||||||
Deductions: | |||||||||||||
Cost of real estate sold | (32,405 | ) | (20,216 | ) | — | ||||||||
Property available-for-sale | — | (25,608 | ) | — | |||||||||
Other−write-down | — | — | (43 | ) | |||||||||
Balance, end of year | $ | — | $ | 32,380 | $ | 77,936 | |||||||
Accumulated Depreciation | |||||||||||||
Balance, beginning of year | $ | 2,602 | $ | 2,550 | $ | 699 | |||||||
Additions: | |||||||||||||
Depreciation expense | 433 | 1,049 | 1,851 | ||||||||||
433 | 1,049 | 1,851 | |||||||||||
Deductions: | |||||||||||||
Sales | (3,035 | ) | (997 | ) | — | ||||||||
Balance, end of year | $ | — | $ | 2,602 | $ | 2,550 | |||||||
Schedule_IV_Mortgage_Loans_on_
Schedule IV Mortgage Loans on Real Estate | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Mortgage Loans on Real Estate [Abstract] | ||||||||||||||||||||
SCHEDULE IV Mortgage Loans on Real Estate | SCHEDULE IV | |||||||||||||||||||
Resource Capital Corp. | ||||||||||||||||||||
Mortgage Loans on Real Estate | ||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Type of Loan/ Borrower | Description / Location | Interest Payment Rates | Final Maturity Date | Periodic Payment | Prior Liens (2) | Face Amount of Loans (3) | Net Carrying Amount of Loans | |||||||||||||
Terms (1) | ||||||||||||||||||||
Whole Loans: | ||||||||||||||||||||
Borrower A | Multi-Family/Houston, TX | LIBOR FLOOR 0.25% + 4.50% | 7/5/17 | I/O | — | $ | 63,075 | $ | 62,578 | |||||||||||
Borrower B | Multi-Family/Tempe, AZ | LIBOR 0.75% + 4.25% | 4/5/17 | I/O | — | 45,750 | 45,488 | |||||||||||||
Borrower C | Multi-Family/Houston, TX | LIBOR FLOOR 0.25% + 5.55% | 11/5/17 | I/O | — | 43,974 | 43,583 | |||||||||||||
All other Whole Loans individually less than 3% | $ | 1,118,323 | $ | 1,111,942 | ||||||||||||||||
Total Whole Loans | $ | 1,271,122 | $ | 1,263,591 | ||||||||||||||||
Mezzanine Loans: | ||||||||||||||||||||
n/a | n/a | n/a | n/a | n/a | ||||||||||||||||
All Other Mezzanine Loans individually less than 3% | $ | 67,446 | $ | 67,367 | ||||||||||||||||
Total Mezzanine Loans | $ | 67,446 | $ | 67,367 | ||||||||||||||||
B Notes: | ||||||||||||||||||||
n/a | n/a | n/a | n/a | n/a | ||||||||||||||||
All Other B Notes | $ | 16,119 | $ | 16,072 | ||||||||||||||||
individually less than 3% | ||||||||||||||||||||
Total B Notes | $ | 16,119 | $ | 16,072 | ||||||||||||||||
Total Commercial Real Estate Loans | $ | 1,354,687 | (4) | $ | 1,347,030 | (5) | ||||||||||||||
Residential Mortgage Loans: | ||||||||||||||||||||
n/a | n/a | n/a | n/a | n/a | ||||||||||||||||
All other Residential Mortgage Loans individually less than 3% | $ | 114,238 | $ | 114,238 | ||||||||||||||||
Total Residential Mortgage Loans | $ | 114,238 | $ | 114,238 | ||||||||||||||||
Explanatory Notes: | ||||||||||||||||||||
-1 | IO =nterest only | |||||||||||||||||||
-2 | Represents only Third Party Liens. | |||||||||||||||||||
-3 | Does not includ unfunded commitments. | |||||||||||||||||||
-4 | All loans are current with respect to principal and interest payments. | |||||||||||||||||||
-5 | The net carrying amount of loans includes an allowance for loan loss of $4.0 million at December 31, 2014 allocated to as follows: Whole Loans $3.8 million, Mezzanine Loans $231,000, and B Notes $55,000. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |
Dec. 31, 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. | ||
A VIE is defined as an entity in which equity investors (i) do not have a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional financial support from other parties. A VIE is required to be consolidated by its primary beneficiary, which is defined as the party that (a) has the power to control the activities that most significantly impact the VIE's economic performance and (b) has the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. | ||
The Company considers the following criteria in determining whether an entity is a VIE: | ||
1. The equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by any parties, including the equity holders. | ||
2. The equity investors lack one or more of the following essential characteristics of a controlling financial interest. | ||
a. The direct ability to make decisions about the entity's activities through voting rights or similar rights. | ||
b. The obligation to absorb the expected losses of the entity. | ||
c. The right to receive the expected residual returns of the entity. | ||
3. The equity investors have voting rights that are not proportionate to their economic interests, and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. | ||
In determining whether the Company is the primary beneficiary of a VIE, the Company reviews governing contracts, formation documents and any other contractual arrangements for any relevant terms and determines the activities that have the most significant impact on the VIE and who has the power to direct those activities. The Company also looks for kick-out rights, protective rights and participating rights as well as any financial or other support provided to the VIE and the reason for that support, and the terms of any explicit or implicit arrangements that may require the Company to provide future support. The Company then makes a determination based on its power to direct the most significant activities of the VIE and/or a financial interest that is potentially significant. The Company continually reassesses whether it should be deemed to be the primary beneficiary of its VIEs. | ||
All inter-company transactions and balances have been eliminated. | ||
Use of Estimates | Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates affecting the accompanying consolidated financial statements include the net realizable and fair values of the Company's investments and derivatives, the estimated life used on investments to calculate depreciation, amortization, and accretion of premiums and discounts, respectively, provisions for loan losses, valuation of servicing asset and the disclosure of contingent liabilities. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
Cash and cash equivalents include cash on hand and all highly liquid investments with original maturities of three months or less at the time of purchase. | ||
Investment Securities | Investment Securities | |
The Company classifies its investment portfolio as trading or available-for-sale. The Company, from time to time, may sell any of its investments due to changes in market conditions or in accordance with its investment strategy. | ||
The Company’s investment securities, trading and investment securities, available-for-sale are reported at fair value. To determine fair value, the Company uses an independent third-party valuation firm utilizing data available in the market as well as appropriate prepayment, default, and recovery rates. These valuations are validated utilizing dealer quotes or bids. If there is a material difference between the value indicated by the third-party valuation firm and the dealer quote or bid, the Company will evaluate the difference, which could result in an updated valuation from the third-party or a revised dealer quote. Based on a prioritization of inputs used in valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. Any changes in fair value to the Company's investment securities, trading are recorded in the Company’s consolidated statements of income as net realized and unrealized (loss) gain on investment securities, trading. Any changes in fair value to the Company's investment securities available-for-sale are recorded in the Company’s consolidated balance sheets as a component of accumulated other comprehensive income (loss) in stockholders' equity. | ||
On a quarterly basis, the Company evaluates its available-for-sale investments for other-than-temporary impairment. An available-for-sale investment is impaired when its fair value has declined below its amortized cost basis. An impairment is considered other-than-temporary when the amortized cost basis of the investment or some portion thereof will not be recovered. | ||
The determination of other-than-temporary impairment is a subjective process, and different judgments and assumptions could affect the timing of loss realization. The Company reviews its portfolios and makes other-than-temporary impairment determinations at least quarterly. The Company considers the following factors when determining if there is an other-than-temporary impairment on a security: | ||
• | the length of time the market value has been less than amortized cost; | |
• | the severity of the impairment; | |
• | the expected loss of the security as generated by a third-party valuation model; | |
• | original and current credit ratings from the rating agencies; | |
• | underlying credit fundamentals of the collateral backing the securities; | |
• | whether, based upon the Company’s intent, it is more likely than not that the Company will sell the security before the recovery of the amortized cost basis; and | |
• | third-party support for default, for recovery, prepayment speed and reinvestment price assumptions. | |
Where credit quality is believed to be the cause of the other-than-temporary impairment, that component of the impairment is recognized as an impairment loss in the consolidated statements of income. Where other market components are believed to be the cause of the impairment, that component of the impairment is recognized as other comprehensive loss. | ||
The Company performs an on-going review of third-party reports and updated financial data on the underlying properties in order to analyze current and projected security performance. Rating agency downgrades are considered with respect to the Company’s income approach when determining other-than temporary impairment and, when inputs are subjected to testing for economic changes within possible ranges, the resulting projected cash flows reflect a full recovery of principal and interest indicating no impairment. | ||
Investment security transactions are recorded on the trade date. Realized gains and losses on investment securities are determined on the specific identification method. | ||
Investment Interest Income Recognition | Investment Interest Income Recognition | |
Interest income on the Company’s mortgage-backed and other asset-backed securities is accrued using the effective yield method based on the actual coupon rate and the outstanding principal amount of the underlying mortgages or other assets. Premiums and discounts are amortized or accreted into interest income over the lives of the securities also using the effective yield method, adjusted for the effects of estimated prepayments. For an investment purchased at par, the effective yield is the contractual interest rate on the investment. If the investment is purchased at a discount or at a premium, the effective yield is computed based on the contractual interest rate increased for the accretion of a purchase discount or decreased for the amortization of a purchase premium. The effective yield method requires the Company to make estimates of future prepayment rates for its investments that can be contractually prepaid before their contractual maturity date so that the purchase discount can be accreted, or the purchase premium can be amortized, over the estimated remaining life of the investment. The prepayment estimates that the Company uses directly impact the estimated remaining lives of its investments. Actual prepayment estimates are reviewed as of each quarter end or more frequently if the Company becomes aware of any material information that would lead it to believe that an adjustment is necessary. If prepayment estimates are incorrect, the amortization or accretion of premiums and discounts may have to be adjusted, which would have an impact on future income. | ||
Loans | Loans | |
The Company acquires loans through direct origination, through the acquisition of participations in commercial real estate loans and corporate leveraged loans in the secondary market and through syndications of newly originated loans. Loans are held for investment; therefore, the Company initially records them at their acquisition price, and subsequently, accounts for them based on their outstanding principal plus or minus unamortized premiums or discounts. The Company may sell a loan held for investment where the credit fundamentals underlying a particular loan have changed in such a manner that the Company's expected return on investment may decrease. Once the determination has been made by the Company that it no longer will hold the loan for investment, the Company identifies these loans as “Loans held for sale” and will account for them at the lower of amortized cost or fair value. | ||
Loan Interest Income Recognition | Loan Interest Income Recognition | |
Interest income on loans includes interest at stated rates adjusted for amortization or accretion of premiums and discounts. Premiums and discounts are amortized or accreted into income using the effective yield method. If a loan with a premium or discount is prepaid, the Company immediately recognizes the unamortized portion as a decrease or increase to interest income. In addition, the Company defers loan origination fees and loan origination costs and recognizes them over the life of the related loan against interest income using the effective yield method. | ||
Residential Loan Origination | Residential Loan Origination | |
The Company originates residential loans to be funded by permanent investors. The Company originates loans in 35 states with a focus on the Southeast. The Company may sell or retain the right to service the loans. Servicing fees are recognized as income when the related mortgage payments are collected based on the outstanding balance of the related mortgage loans or on an agreed upon rate. Servicing fee income is reduced by amortization of capitalized servicing rights. | ||
The fair value option has been elected for all residential mortgage loans held for sale. As such, residential mortgage loans held for sale are valued at fair value, determined on an individual-loan basis. Additionally, due to such election, origination fees and direct origination costs are immediately recognized in earnings. Market value for conforming, agency loans is determined using sales commitments to permanent investors or on current market rates for loans of similar quality and type (generally Level 2 in the fair value hierarchy). Market value for non-agency, jumbo loans is determined using sales commitments to permanent investors, current market rates for loans of similar quality, or through the use of cash flow models (generally Level 3 in the fair value hierarchy). Mortgage loans are included as loans held for sale in the consolidated balance sheets. Conforming, agency loans are generally sold within 15 to 45 days of origination. Non-agency, jumbo loans may either be sold to private investors or held for securitization. | ||
Residential real estate properties acquired through foreclosure to be sold are initially recorded at fair value less selling costs at the date of foreclosure, establishing a new cost basis. Any write down to fair value at the time of foreclosure is charged to the allowance for loan losses. After foreclosure, valuations are periodically performed by management and the real estate is carried at the lower of the carrying amount or fair value less costs to sell. Costs related to holding foreclosed real estate and subsequent adjustments to value are expensed. The fair value of real estate owned is determined using unobservable inputs including estimates of selling costs and marketability of the property (Level 3). | ||
The unpaid principal balances of loans serviced by the Company for others are not included in the accompanying consolidated balance sheets. | ||
Mortgage Servicing Rights | Mortgage Servicing Rights | |
A mortgage servicing right is the right to receive a portion of the interest coupon and fees collected from the mortgagor for performing specified mortgage servicing activities, which consist of collecting loan payments, remitting principal and interest payments to investors, managing escrow funds for the payment of mortgage-related expenses such as taxes and insurance and otherwise administering the mortgage loan servicing portfolio. Mortgage servicing rights are created through either the direct purchase of servicing from a third party or through the sale of an originated mortgage loan. The servicing rights relate to a single class of residential mortgage loans. | ||
The fair value of residential servicing rights included in the consolidated balance sheets was determined using an estimated current market value at the date of loan origination and other assumptions. Capitalized servicing rights are amortized over the life of the loan, assuming certain prepayment and other assumptions. | ||
Allowance for Loan Loss | Allowance for Loan Loss | |
The Company maintains an allowance for loan loss. For the Company's bank and CRE loan portfolios, loans held for investment are first individually evaluated for impairment to determine whether a specific reserve is required. Loans that are not determined to be impaired individually are then evaluated for impairment as a homogeneous pool of loans with substantially similar characteristics so that a general reserve can be established, if needed. The reviews are performed at least quarterly. | ||
The Company considers a loan to be impaired if one of two conditions exists. The first condition is if, based on current information and events, management believes it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The second condition is if the loan is deemed to be a troubled-debt restructuring (“TDR”) where a concession has been given to a borrower in financial difficulty. These TDRs may not have an associated specific loan loss allowance if the principal and interest amount is considered recoverable based on current market conditions, expected collateral performance and/or guarantees made by the borrowers. | ||
When a loan is impaired under either of these two conditions, the allowance for loan losses is increased by the amount of the excess of the amortized cost basis of the loan over its fair value. Fair value may be determined based on the present value of estimated cash flows; on market price, if available; or on the fair value of the collateral less estimated disposition costs. When a loan, or a portion thereof, is considered uncollectible and pursuit of collection is not warranted, the Company will record a charge-off or write-down of the loan against the allowance for loan losses. | ||
An impaired loan may remain on accrual status during the period in which the Company is pursuing repayment of the loan; however, the loan would be placed on non-accrual status at such time as (i) management believes that scheduled debt service payments will not be met within the coming 12 months; (ii) the loan becomes 90 days delinquent; (iii) management determines the borrower is incapable of, or has ceased efforts toward, curing the cause of the impairment; or (iv) the net realizable value of the loan’s underlying collateral approximates the Company’s carrying value for such loan. While on non-accrual status, the Company recognizes interest income only when an actual payment is received. When a loan is placed on non-accrual, previously accrued interest is reversed from interest income. | ||
For the Company's residential mortgage loans, the allowance is based upon management's periodic review of the collectability of the loans in light of historical experience, the nature and amount of the loan portfolio, adverse situations that may affect the borrower's ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific and general components. The specific component relates to loans that are classified as doubtful, substandard, or special mention. For such loans that are also identified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan are lower than the carrying value of that loan. A general component is maintained to cover uncertainties that could affect management's estimate of probable losses. The general component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. | ||
Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impaired loans are carried at fair value and are measured on a nonrecurring basis. The fair value is determined using unobservable inputs including estimates of selling costs (Level 3). | ||
Investments in Real Estate | Investments in Real Estate | |
Investments in real estate are carried net of accumulated depreciation. Costs directly related to the acquisition are expensed as incurred. Ordinary repairs and maintenance which are not reimbursed by the tenants are expensed as incurred. Costs related to the improvement of the real property are capitalized and depreciated over their useful lives. | ||
Acquisitions of real estate assets and any related intangible assets are recorded initially at fair value under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 805, “Business Combinations”. The Company allocates the purchase price of its investments in real estate to land, building, site improvements, the value of in-place leases and the value of above or below market leases. The value allocated to above or below market leases is amortized over the remaining lease term as an adjustment to rental income. The Company amortizes the value allocated to in-place leases over the weighted average remaining lease term to depreciation and amortization expense. The Company depreciates real property using the straight-line method over the estimated useful lives of the assets as follows: | ||
Category | Term | |
Building | 25 – 40 years | |
Site improvements | Lesser of the remaining life of building or useful lives | |
Long-Lived and Intangible Assets | Long-Lived and Intangible Assets | |
Long-lived assets and certain identifiable intangibles to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. The review of recoverability is based on an estimate of the future undiscounted cash flows (excluding interest charges) expected to result from the long-lived asset’s use and eventual disposition. If impairment has occurred, the loss will be measured as the excess of the carrying amount of the asset over the fair value of the asset. | ||
Comprehensive Income (Loss) | Comprehensive Income (Loss) | |
Comprehensive income (loss) for the Company includes net income and the change in net unrealized gains (losses) on available-for-sale securities, derivative instruments used to hedge exposure to interest rate fluctuations and protect against declines in the market value of assets resulting from general market trends as well as translation of currency as a result of the Company's investment in the equity of foreign CDOs. | ||
Income Taxes | Income Taxes | |
The Company operates in such a manner as to qualify as a real estate investment trust (“REIT”) under the provisions of the Internal Revenue Code of 1986, as amended (the "Code"); therefore, applicable REIT taxable income is included in the taxable income of its shareholders, to the extent distributed by the Company. To maintain REIT status for federal income tax purposes, the Company is generally required to distribute at least 90% of its REIT taxable income to its shareholders as well as comply with certain other qualification requirements as defined under the Code. As a REIT, the Company is not subject to federal corporate income tax to the extent that it distributes 100% of its REIT taxable income each year. | ||
Taxable income, from non-REIT activities managed through the Company's taxable REIT subsidiaries, is subject to federal, state and local income taxes. The Company's taxable REIT subsidiaries' income taxes are accounted for under the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for the temporary differences between the financial reporting basis and tax basis of assets and liabilities. | ||
Apidos CDO I, Apidos CDO III, Apidos Cinco CDO, Apidos CLO VIII, Whitney CLO I, Harvest CLO VII, Moselle CLO, Harvest CLO VIII, Harvest X Investor, and Harvest CLO X, the Company's foreign TRSs, are organized as exempted companies incorporated with limited liability under the laws of the Cayman Islands and, with respect to Moselle CLO, Luxembourg and, with respect to Harvest CLO VII, Harvest CLO VIII, and Harvest CLO X, Ireland, and are generally exempt from federal and state income tax at the corporate level because their activities in the United States are limited to trading in stock and securities for their own account. Therefore, despite their status as TRSs, they generally will not be subject to corporate tax on their earnings and no provision for income taxes is required; however, because they are “controlled foreign corporations,” the Company will generally be required to include Apidos CDO I's, Apidos CDO III's, Apidos Cinco CDO's, Apidos CLO VIII's, Whitney CLO I's, Harvest CLO VII’s, Moselle CLO’s, Harvest CLO VIII’s, Harvest X Investor’s, and Harvest X CLO’s current taxable income in its calculation of REIT taxable income. | ||
On October 27, 2011 the Company reorganized the ownership structure of Apidos CDO I and Apidos CDO III. As a result, the earnings from Apidos CDO I and Apidos CDO III are excluded from the Company's calculation of REIT taxable income and are subject to corporate tax. On January 24, 2012, the Company again reorganized the ownership structure of Apidos CDO I and Apidos CDO III. As a result, for the period January 1, 2012 through January 23, 2012, the earnings from Apidos CDO I and Apidos CDO III are excluded from the Company's calculation of REIT taxable income and are subject to corporate tax. For the period January 24, 2012 through December 31, 2012 the earnings from Apidos CDO I are included in the Company's calculation of REIT taxable income. | ||
On December 11, 2012, the Company further reorganized the ownership structure of Apidos CDO III. As a result, for the period from January 24, 2012 through December 10, 2012 the earnings from Apidos CDO III are included in the Company's calculation of REIT taxable income. Also as a result of the reorganization on December 11, 2012, for the period December 11, 2012 through December 31, 2012, the earnings from Apidos CDO III are excluded from the Company's calculation of REIT taxable income and are subject to corporate tax. | ||
On November 12, 2012, the Company reorganized the ownership structure of Apidos Cinco CDO and Whitney CLO I. As a result, for the period November 12, 2012 through December 31, 2012, the earnings from Apidos Cinco CDO and Whitney CLO I are excluded from the Company's calculation of REIT taxable income and are subject to corporate tax. Accordingly, a provision for income taxes on the earnings from November 12, 2012 through December 31, 2012 was recorded. | ||
On February 13, 2013, the Company reorganized the ownership structure of Apidos Cinco CDO and Whitney CLO I. As a result, for the period January 1, 2013 through February 12, 2013, the earnings from Apidos Cinco CDO and Whitney CLO I are excluded from the Company’s calculation of REIT taxable income and are subject to corporate tax. Accordingly, a provision for income taxes on the earnings from January 1, 2013 through February 12, 2013 has been recorded. Also as a result of the reorganization on February 13, 2013, for the period February 13, 2013 and ending December 31, 2013 the earnings from Apidos Cinco CDO and Whitney CLO I are included in the Company’s calculation of REIT taxable income. | ||
On March 8, 2013 the Company reorganized the ownership structure of Apidos CDO III. As a result, the earnings from Apidos CDO III for the period January 1, 2013 through March 7, 2013 are excluded from the Company’s calculation of REIT taxable income and are subject to corporate tax. Accordingly, a provision for income taxes on the earnings from January 1, 2013 through March 7, 2013 has been recorded. Also as a result of the reorganization on March 8, 2013, for the period March 8, 2013 and ending December 31, 2013 the earnings from Apidos CDO III are included in the Company’s calculation of REIT taxable income. | ||
On September 10, 2013, the Company acquired approximately 9.5% of the equity of Harvest CLO VII, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of Ireland. This equity is directly owned by a domestic QRS (Qualified REIT Subsidiary) of the Company; therefore, its earnings are included in the Company’s calculation of REIT taxable income. | ||
On February 24, 2014, the Company acquired approximately 88.6% of the equity of Moselle CLO S.A., which is a foreign TRS, incorporated in Luxembourg. This equity is directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. | ||
On March 27, 2014, the Company acquired approximately 12.6% of the equity of Harvest CLO VIII, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of Ireland. This equity is directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. | ||
On July 3, 2014, the Company acquired approximately 55% of the equity of Harvest X Investor, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of the Cayman Islands. As of November 6, 2014, the Company’s investment was returned and the Company no longer has an active ownership interest in Harvest X Investor. For the period July 3, 2014 through November 6, 2014 the equity was directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. | ||
On November 6, 2014, the Company acquired approximately 32.1% of the equity of Harvest CLO X, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of Ireland. This equity is directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. | ||
The Company accounts for taxes assessed by a governmental authority that is directly imposed on a revenue-producing transaction (e.g., sales, use, value added) on a net (excluded from revenue) basis. | ||
Stock Based Compensation | Stock Based Compensation | |
Issuances of restricted stock and options are accounted for using the fair value based methodology whereby the fair value of the award is measured on the grant date and expensed monthly to equity compensation expense-related party on the consolidated statements of income with a corresponding entry to additional paid-in capital. For issuances to the Company's Manager and to non-employees, the unvested stock and options are adjusted quarterly to reflect changes in fair value as performance under the agreement is completed. For issuances to the Company's seven non-employee directors or to any direct employees of the Company's subsidiaries, the amount is not remeasured under the fair value-based method. The compensation for each of these issuances is amortized over the service period and included in equity compensation expense. | ||
Net Income Per Share | Net Income Per Share | |
The Company calculates basic income per share by dividing net income for the period by the weighted-average number of shares of its common stock, including vested restricted stock and participating securities, outstanding for that period. Diluted income per share takes into account the effect of dilutive instruments, such as stock options, unvested restricted stock and convertible debt, but uses the average share price for the period in determining the number of incremental shares that are to be added to the weighted-average number of shares outstanding. | ||
Derivative Instruments | Derivative Instruments | |
The Company's policies permit it to enter into derivative contracts, including interest rate swaps and interest rate caps, to add stability to its interest expense and to manage its exposure to interest rate movements or other identified risks. The Company has designated these transactions as cash flow hedges. The contracts or hedge instruments are evaluated at inception and at subsequent consolidated balance sheets dates to determine if they qualify for hedge accounting which requires that the Company recognize all derivatives on the consolidated balance sheets at fair value. The Company records changes in the estimated fair value of the derivative in other comprehensive income to the extent that it is effective. Any ineffective portion of a derivative's change in fair value is immediately recognized in earnings. | ||
The Company may also enter into forward currency contracts. 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. | ||
The Company may also enter into forward contracts for the sale of mortgage-backed securities for the purpose of hedging its closed residential mortgage loans held for sale and its pipeline of residential mortgage loans expected to close. As residential mortgage loans are closed, they are typically sold at prices specified in the forward contracts. Gains or losses may arise if the yields of the loans delivered vary from those specified in the forward contracts. Derivative mortgage loan commitments, or interest rate locks, may also be utilized and relate to the origination of a mortgage that will be held for sale upon funding. | ||
The Company may also hold warrants. Warrants give the holder the right, but not the obligation, to purchase equity in the Company at a specific price within a specified time period. Typically, the warrant contracts include expiration dates well into the future and an exercise price set above the current fair value of the common stock. With the expiration date set into the future, the warrant’s value is impacted by the time value of money. Both this factor and the fluctuation in the underlying stock’s price impact the value of the warrant, thereby causing the holder to consider this investment as a derivative. | ||
The Company may also hold options on future contracts. Options are contracts sold by one party to another that give the buyer the right, but not the obligation, to buy or sell a financial asset at an agreed-upon price during a certain period of time or on a specific date. | ||
Linked Transactions | Linked Transactions | |
If the Company finances the purchase of securities with repurchase agreements with the same counterparty from whom the securities are purchased and both transactions are entered into contemporaneously or in contemplation of each other, the transactions are presumed not to meet sale accounting criteria and the Company will account for the purchase of such securities and the repurchase agreement on a net basis and record a forward purchase commitment to purchase securities (each, a “Linked Transaction”) at fair value on the Company's consolidated balance sheets in the line item linked transactions, at fair value. Changes in the fair value of the assets and liabilities underlying the linked transactions and associated interest income and interest expense are reported as unrealized (loss) gain and net interest income on linked transactions, net on the Company's consolidated statements of income. | ||
Recent Accounting Standards | Recent Accounting Standards | |
In February 2015, the Financial Accounting Standards Board ("FASB") issued guidance that requires an entity to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: (1) Modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; (2) Eliminate the presumption that a general partner should consolidate a limited partnership; (3) Affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; (4) Provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. This guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after after December 15, 2015. Early application is permitted. The Company does not expect adoption will have a material impact on its consolidated financial statements. | ||
In November 2014, the FASB issued guidance for determining whether and at what threshold an acquired entity can reflect the acquirer’s accounting and reporting basis (pushdown accounting) in its separate financial statements. In accordance with this guidance, management may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. An acquired entity should determine whether to elect to apply pushdown accounting for each individual change-in-control event in which an acquirer obtains control of the acquired entity. If pushdown accounting is not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period to the acquired entity’s most recent change-in-control event. An election to apply pushdown accounting in a reporting period after the reporting period in which the change-in-control event occurred should be considered a change in accounting principle in accordance with ASC Topic 250, Accounting Changes and Error Corrections. If pushdown accounting is applied to an individual change-in-control event, that election is irrevocable. If an acquired entity elects the option to apply pushdown accounting in its separate financial statements, it should disclose information in the current reporting period that enables users of financial statements to evaluate the effect of pushdown accounting. This guidance was effective after November 18, 2014. Adoption did not have a material impact on the Company's consolidated financial statements. | ||
In November 2014, the FASB issued guidance to eliminate the use of different methods in practice and thereby reduce existing diversity under GAAP in the accounting for hybrid financial instruments issued in the form of a share. An entity that issues or invests in a hybrid financial instrument is required to separate an embedded derivative feature from the host contract (for example, an underlying share) and account for the feature as a derivative according to ASC Subtopic 815-10 on derivatives and hedging if certain criteria are met. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015 and interim periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the effect of adoption. | ||
In August 2014, the 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 ASC 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 is effective for an entity’s interim and annual reporting periods in fiscal years that begin after December 15, 2013. Earlier application is prohibited. The Company is currently evaluating the effect of adoption, but does not expect adoption will have a material impact on its consolidated financial statements. | ||
Reclassifications | Reclassifications | |
Certain reclassifications have been made to the 2012 and 2013 consolidated financial statements to conform to the 2014 presentation. Previously, certain gains and losses related to the Company's residential mortgage loans were included in general and administrative expenses. These gains and losses are now included in net realized gain on sales of investment securities available-for-sale and loans. In 2013, the Company's middle market loans were reported with bank loans in the consolidated financial statements. In 2014, these loans were presented as a separate loan portfolio in the consolidated financial statements. | ||
Principal paydown receivables represent the portion of the Company's loan portfolio for which indication has been provided through its various servicers, trustees, or its asset management group that a payoff or paydown of a loan has been received but for which, as of period end, the Company has not received and applied such cash to the outstanding loan balance. To better reflect the nature of these activities, the Company has reclassified the net changes in these principal paydown receivables in the Consolidated Statement of Cash Flows from an operating activity to an investing activity included in principal payments received from loans and has supplemented this reclassification with a disclosure of cash received on principal paydown receivables subsequent to December 31, 2014. The reclassification had the impact of decreasing net cash flows from operations by $18.7 million and increasing net cash flows from operations by $25.5 million for the years ended December 31, 2013, and 2012, respectively. Conversely, the reclassification had the impact of increasing net cash flows from investing activities by $18.7 million and decreasing net cash flows from investing activities by $25.5 million for the years ended December 31, 2013, and 2012, respectively. This reclassification had no impact on the net changes in cash and cash equivalents or net income for any periods presented. | ||
Distributions | In order to qualify as a REIT, the Company must currently distribute at least 90% of its REIT 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 2015 dividends will be determined by the Company’s board of directors which will also consider the composition of any dividends declared, including the option of paying a portion in cash and the balance in additional common shares. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Property, Plant and Equipment | The Company depreciates real property using the straight-line method over the estimated useful lives of the assets as follows: | |
Category | Term | |
Building | 25 – 40 years | |
Site improvements | Lesser of the remaining life of building or useful lives |
VARIABLE_INTEREST_ENTITIES_Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | The following table shows the classification and carrying value of assets and liabilities of consolidated VIEs as of December 31, 2014 (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||
Apidos I | Apidos | Apidos | Apidos | Whitney CLO I | RREF | RREF | RCC CRE Notes 2013 | RCC CRE 2014 | Moselle | RCM Global, LLC | Total | |||||||||||||||||||||||||||||||||||||
III | Cinco | VIII | 2006-1 | 2007-1 | ||||||||||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 25 | $ | 25 | ||||||||||||||||||||||||
Restricted cash (1) | 416 | 3,104 | 20,142 | 5 | 116 | 20 | 250 | 2,713 | — | 94,481 | — | 121,247 | ||||||||||||||||||||||||||||||||||||
Investment securities | — | 3,057 | 11,115 | — | — | 11,274 | 64,858 | — | — | — | 28,899 | 119,203 | ||||||||||||||||||||||||||||||||||||
available-for-sale, | ||||||||||||||||||||||||||||||||||||||||||||||||
pledged as collateral, | ||||||||||||||||||||||||||||||||||||||||||||||||
at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans, pledged as collateral | 153 | 80,761 | 249,164 | — | — | 128,398 | 206,207 | 248,662 | 347,792 | — | — | 1,261,137 | ||||||||||||||||||||||||||||||||||||
Loans held for sale | — | — | 282 | — | — | — | — | — | — | — | — | 282 | ||||||||||||||||||||||||||||||||||||
Interest receivable | — | 327 | 858 | — | — | 2,293 | 1,979 | 1,279 | 1,396 | — | 809 | 8,941 | ||||||||||||||||||||||||||||||||||||
Prepaid assets | 2 | 21 | 19 | — | — | 78 | 64 | 37 | — | — | — | 221 | ||||||||||||||||||||||||||||||||||||
Principal paydown receivable | — | — | — | — | — | — | — | 20,500 | 2,207 | 3,060 | — | 25,767 | ||||||||||||||||||||||||||||||||||||
Other assets | — | — | — | — | — | — | — | — | (12 | ) | — | — | (12 | ) | ||||||||||||||||||||||||||||||||||
Total assets (2) | $ | 571 | $ | 87,270 | $ | 281,580 | $ | 5 | $ | 116 | $ | 142,063 | $ | 273,358 | $ | 273,191 | $ | 351,383 | $ | 97,541 | $ | 29,733 | $ | 1,536,811 | ||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | $ | — | $ | 74,646 | $ | 255,463 | $ | — | $ | — | $ | 61,424 | $ | 130,207 | $ | 224,157 | $ | 231,657 | $ | 68,940 | $ | — | $ | 1,046,494 | ||||||||||||||||||||||||
Accrued interest | — | 46 | 270 | — | — | 36 | 97 | 186 | 133 | 232 | — | 1,000 | ||||||||||||||||||||||||||||||||||||
expense | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, | — | — | — | — | — | 864 | 7,575 | — | — | — | — | 8,439 | ||||||||||||||||||||||||||||||||||||
at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||
Unsettled loan purchases | — | — | — | — | — | — | — | — | — | — | (529 | ) | (529 | ) | ||||||||||||||||||||||||||||||||||
Accounts payable and | 8 | 40 | 17 | — | — | (1 | ) | 1 | — | — | (453 | ) | 2 | (386 | ) | |||||||||||||||||||||||||||||||||
other liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 8 | $ | 74,732 | $ | 255,750 | $ | — | $ | — | $ | 62,323 | $ | 137,880 | $ | 224,343 | $ | 231,790 | $ | 68,719 | $ | (527 | ) | $ | 1,055,018 | |||||||||||||||||||||||
(1) Includes $3.0 million available for reinvestment in certain of the securitizations. | ||||||||||||||||||||||||||||||||||||||||||||||||
(2) Assets of each of the consolidated VIEs may only be used to settle the obligations of each respective VIE. | ||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity, Maximum Exposure | The following table shows the classification, carrying value and maximum exposure to loss with respect to the Company’s unconsolidated VIEs as of December 31, 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 | $ | 39,417 | $ | 1,548 | $ | — | $ | 40,965 | $ | 40,965 | ||||||||||||||||||||||||||||||||||||||
Intangible assets | — | — | 9,434 | 9,434 | 9,434 | |||||||||||||||||||||||||||||||||||||||||||
Total assets | 39,417 | 1,548 | 9,434 | 50,399 | ||||||||||||||||||||||||||||||||||||||||||||
Borrowings | — | 51,205 | — | 51,205 | N/A | |||||||||||||||||||||||||||||||||||||||||||
Total liabilities | — | 51,205 | — | 51,205 | N/A | |||||||||||||||||||||||||||||||||||||||||||
Net asset (liability) | $ | 39,417 | $ | (49,657 | ) | $ | 9,434 | $ | (806 | ) | N/A | |||||||||||||||||||||||||||||||||||||
SUPPLEMENTAL_CASH_FLOW_INFORMA1
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||||||
Schedule of Other Significant Noncash Transactions | Supplemental disclosure of cash flow information (in thousands): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Non-cash investing activities include the following: | ||||||||||||
Assumption of direct financing leases and other assets (1) | $ | 2,385 | $ | — | $ | — | ||||||
Acquisition of real estate investments | $ | — | $ | — | $ | (21,661 | ) | |||||
Conversion of loans to investment in real estate | $ | — | $ | — | $ | 21,661 | ||||||
Acquisition of loans, pledged as collateral | $ | — | $ | — | $ | (230,152 | ) | |||||
Non-cash financing activities include the following: | ||||||||||||
Distributions on common stock declared but not paid | $ | 26,563 | $ | 25,536 | $ | 21,024 | ||||||
Distribution on preferred stock declared but not paid | $ | 6,044 | $ | 2,159 | $ | 1,244 | ||||||
Issuance of restricted stock | $ | 890 | $ | 823 | $ | 2,189 | ||||||
Contribution of security deposits and other liabilities (1) | $ | 457 | $ | — | $ | — | ||||||
Subscription receivable | $ | — | $ | — | $ | 1,248 | ||||||
Assumption of collateralized debt obligations | $ | — | $ | — | $ | 206,408 | ||||||
-1 | On December 31, 2014, the Company assumed direct financing leases and related assets and liabilities in satisfaction of a loan receivable - related party. |
RESTRICTED_CASH_Tables
RESTRICTED CASH (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Cash and Cash Equivalents [Abstract] | ||||||||
Schedule of restricted cash | The following summarizes the Company's restricted cash (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Restricted cash: | ||||||||
Consolidated securitizations | $ | 121,247 | $ | 61,372 | ||||
Restricted account at investment properties | — | 848 | ||||||
Restricted cash pledged with minimum reserve balance requirements | 209 | 318 | ||||||
Cash collateralizing outstanding margin calls on cash flow hedges | 500 | 500 | ||||||
Cash collateralizing outstanding margin calls on borrowings | — | 271 | ||||||
Cash collateralizing margin posted on forward/short positions | 182 | — | ||||||
$ | 122,138 | $ | 63,309 | |||||
INVESTMENT_SECURITIES_TRADING_
INVESTMENT SECURITIES, TRADING (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 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 December 31, 2014: | ||||||||||||||||
Structured notes | $ | 22,876 | $ | 1,098 | $ | (3,188 | ) | $ | 20,786 | |||||||
RMBS | 1,896 | — | (1,896 | ) | — | |||||||||||
Total | $ | 24,772 | $ | 1,098 | $ | (5,084 | ) | $ | 20,786 | |||||||
As of December 31, 2013: | ||||||||||||||||
Structured notes | $ | 8,057 | $ | 4,050 | $ | (1,000 | ) | $ | 11,107 | |||||||
RMBS | 1,919 | — | (1,468 | ) | 451 | |||||||||||
Total | $ | 9,976 | $ | 4,050 | $ | (2,468 | ) | $ | 11,558 | |||||||
INVESTMENT_SECURITIES_AVAILABL1
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Available-for-sale Securities [Abstract] | |||||||||||||||||||||||||||||||||
Available-for-sale Securities | The following table summarizes the Company's investment securities, including those pledged as collateral and classified as available-for-sale, which are carried at fair value (in thousands): | ||||||||||||||||||||||||||||||||
Amortized Cost (1) | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||||||||||
CMBS | $ | 168,669 | $ | 4,938 | $ | (3,202 | ) | $ | 170,405 | ||||||||||||||||||||||||
RMBS | 29,814 | 937 | — | 30,751 | |||||||||||||||||||||||||||||
ABS | 55,617 | 16,876 | (336 | ) | 72,157 | ||||||||||||||||||||||||||||
Corporate Bonds | 2,415 | 10 | (18 | ) | 2,407 | ||||||||||||||||||||||||||||
Total | $ | 256,515 | $ | 22,761 | $ | (3,556 | ) | $ | 275,720 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
-1 | As of December 31, 2014 and 2013, $197.8 million and $162.6 million, respectively, of securities were pledged as collateral security under related financings. | ||||||||||||||||||||||||||||||||
The following table summarizes the Company's sales of investment securities available-for-sale during the period indicated (in thousands, except number of securities): | |||||||||||||||||||||||||||||||||
Positions | Par Amount Sold | Realized Gain (Loss) | |||||||||||||||||||||||||||||||
Sold | |||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2014: | |||||||||||||||||||||||||||||||||
CMBS position | 5 | $ | 27,370 | $ | 573 | ||||||||||||||||||||||||||||
ABS | 8 | $ | 11,574 | $ | 2,922 | ||||||||||||||||||||||||||||
For the Year Ended December 31, 2013: | |||||||||||||||||||||||||||||||||
CMBS position | 4 | $ | 14,500 | $ | 466 | ||||||||||||||||||||||||||||
Corporate bond position | 35 | $ | 34,253 | $ | (474 | ) | |||||||||||||||||||||||||||
Estimated maturities of available-for-sale securities | The following table summarizes the estimated maturities of the Company’s CMBS, RMBS, ABS and corporate bonds according to their estimated weighted average life classifications (in thousands, except percentages): | ||||||||||||||||||||||||||||||||
Weighted Average Life | Fair Value | Amortized Cost | Weighted Average Coupon | ||||||||||||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||||||||||
Less than one year | $ | 78,095 | (1) | $ | 79,649 | 4.13% | |||||||||||||||||||||||||||
Greater than one year and less than five years | 115,302 | 100,909 | 4.64% | ||||||||||||||||||||||||||||||
Greater than five years and less than ten years | 20,177 | 17,516 | 16.45% | ||||||||||||||||||||||||||||||
Greater than ten years | 62,146 | 58,441 | 7.86% | ||||||||||||||||||||||||||||||
Total | $ | 275,720 | $ | 256,515 | 6.08% | ||||||||||||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||||||||||
Less than one year | $ | 39,256 | (1) | $ | 40,931 | 5.25% | |||||||||||||||||||||||||||
Greater than one year and less than five years | 139,700 | 141,760 | 4.69% | ||||||||||||||||||||||||||||||
Greater than five years and less than ten years | 26,526 | 25,707 | 1.10% | ||||||||||||||||||||||||||||||
Greater than ten years | 9,724 | 10,072 | 7.90% | ||||||||||||||||||||||||||||||
Total | $ | 215,206 | $ | 218,470 | 4.49% | ||||||||||||||||||||||||||||
(1) The Company expects that the maturity date of these CMBS will either be extended or the CMBS will be paid in full. | |||||||||||||||||||||||||||||||||
Gross unrealized loss and fair value of securities | The following table shows the fair value, gross unrealized losses and number of securities aggregated by investment category and length of time, that individual investment securities available-for-sale have been in a continuous unrealized loss position during the periods specified (in thousands, except number of securities): | ||||||||||||||||||||||||||||||||
Less than 12 Months | More than 12 Months | Total | |||||||||||||||||||||||||||||||
Fair | Unrealized Losses | Number of | Fair | Unrealized Losses | Number of | Fair | Unrealized Losses | Number of | |||||||||||||||||||||||||
Value | Securities | Value | Securities | Value | Securities | ||||||||||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||||||||||
CMBS | $ | 35,860 | $ | (555 | ) | 22 | $ | 25,583 | $ | (2,647 | ) | 13 | $ | 61,443 | $ | (3,202 | ) | 35 | |||||||||||||||
ABS | 1,000 | (278 | ) | 8 | 958 | (58 | ) | 3 | 1,958 | (336 | ) | 11 | |||||||||||||||||||||
Corporate bonds | 1,447 | (18 | ) | 1 | — | — | — | 1,447 | (18 | ) | 1 | ||||||||||||||||||||||
Total temporarily | $ | 38,307 | $ | (851 | ) | 31 | $ | 26,541 | $ | (2,705 | ) | 16 | $ | 64,848 | $ | (3,556 | ) | 47 | |||||||||||||||
impaired securities | |||||||||||||||||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||||||||||
CMBS | $ | 52,012 | $ | (7,496 | ) | 34 | $ | 14,159 | $ | (4,534 | ) | 10 | $ | 66,171 | $ | (12,030 | ) | 44 | |||||||||||||||
ABS | 143 | (1 | ) | 1 | 6,692 | (393 | ) | 9 | 6,835 | (394 | ) | 10 | |||||||||||||||||||||
Corporate bonds | 865 | (70 | ) | 1 | — | — | — | 865 | (70 | ) | 1 | ||||||||||||||||||||||
Total temporarily | $ | 53,020 | $ | (7,567 | ) | 36 | $ | 20,851 | $ | (4,927 | ) | 19 | $ | 73,871 | $ | (12,494 | ) | 55 | |||||||||||||||
impaired securities | |||||||||||||||||||||||||||||||||
INVESTMENTS_IN_REAL_ESTATE_Tab
INVESTMENTS IN REAL ESTATE (Tables) | 12 Months Ended | |||||
Dec. 31, 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) | 12 Months Ended | ||||||||||||||||
Dec. 31, 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 December 31, 2014: | |||||||||||||||||
Commercial real estate loans: | |||||||||||||||||
Whole loans | $ | 1,271,121 | $ | (7,529 | ) | $ | 1,263,592 | ||||||||||
B notes | 16,120 | (48 | ) | 16,072 | |||||||||||||
Mezzanine loans | 67,446 | (80 | ) | 67,366 | |||||||||||||
Total commercial real estate loans | 1,354,687 | (7,657 | ) | 1,347,030 | |||||||||||||
Bank loans | 332,058 | (1,410 | ) | 330,648 | |||||||||||||
Middle market loans | 250,859 | (746 | ) | 250,113 | |||||||||||||
Residential mortgage loans, held for investment | 2,802 | — | 2,802 | ||||||||||||||
Subtotal loans before allowances | 1,940,406 | (9,813 | ) | 1,930,593 | |||||||||||||
Allowance for loan loss | (4,613 | ) | — | (4,613 | ) | ||||||||||||
Total loans net of allowances | 1,935,793 | (9,813 | ) | 1,925,980 | |||||||||||||
Bank loans held for sale | 282 | — | 282 | ||||||||||||||
Residential mortgage loans held for sale, at fair value (3) | 111,454 | — | 111,454 | ||||||||||||||
Total loans held for sale | 111,736 | — | 111,736 | ||||||||||||||
Total loans, net of allowance | $ | 2,047,529 | $ | (9,813 | ) | $ | 2,037,716 | ||||||||||
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 | 519,343 | (3,950 | ) | 515,393 | |||||||||||||
Middle market loans | 39,864 | (84 | ) | 39,780 | |||||||||||||
Residential mortgage loans, held for investment | 1,849 | — | 1,849 | ||||||||||||||
Subtotal loans before allowances | 1,390,844 | (7,511 | ) | 1,383,333 | |||||||||||||
Allowance for loan loss | (13,807 | ) | — | (13,807 | ) | ||||||||||||
Total loans net of allowances | 1,377,037 | (7,511 | ) | 1,369,526 | |||||||||||||
Bank loans held for sale | 2,377 | — | 2,377 | ||||||||||||||
Middle market loans held for sale | 4,473 | — | 4,473 | ||||||||||||||
Residential mortgage loans held for sale, at fair value (3) | 15,066 | — | 15,066 | ||||||||||||||
Total loans held for sale | 21,916 | — | 21,916 | ||||||||||||||
Total loans, net of allowances | $ | 1,398,953 | $ | (7,511 | ) | $ | 1,391,442 | ||||||||||
-1 | Amounts include deferred amendment fees of $88,000 and $216,000 and deferred upfront fees of $82,000 and $141,000 being amortized over the life of the bank loans as of December 31, 2014 and 2013, respectively. Amounts include loan origination fees of $7.6 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 December 31, 2014 and 2013, respectively. | ||||||||||||||||
-2 | Substantially all loans are pledged as collateral under various borrowings at December 31, 2014 and 2013, respectively. | ||||||||||||||||
-3 | Residential mortgage loans held for sale, at fair value was comprised of $28.9 million and $82.6 million of agency-conforming and jumbo mortgage loans, respectively, as of December 31, 2014. The portfolio consisted of $15.1 million and $0 million of agency-conforming and jumbo mortgage loans, respectively, as of December 31, 2013. | ||||||||||||||||
Summary of the weighted average life of bank loans at amortized cost | The following is a summary of the weighted average life of the Company’s middle market loans, at amortized cost (in thousands): | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Less than one year | $ | — | $ | — | |||||||||||||
Greater than one year and less than five years | 132,353 | 13,027 | |||||||||||||||
Five years or greater | 117,760 | 31,226 | |||||||||||||||
$ | 250,113 | $ | 44,253 | ||||||||||||||
The following is a summary of the weighted average life of the Company’s bank loans loans, at amortized cost (in thousands): | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Less than one year | $ | 7,829 | $ | 36,985 | |||||||||||||
Greater than one year and less than five years | 274,332 | 366,848 | |||||||||||||||
Five years or greater | 48,769 | 113,937 | |||||||||||||||
$ | 330,930 | $ | 517,770 | ||||||||||||||
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 December 31, 2014: | |||||||||||||||||
Whole loans, floating rate (1) (4) (6) | 73 | $ | 1,263,592 | LIBOR plus 1.75% to | May 2015 to February 2019 | ||||||||||||
LIBOR plus 15.00% | |||||||||||||||||
B notes, fixed rate | 1 | 16,072 | 8.68% | Apr-16 | |||||||||||||
Mezzanine loans, floating rate | 1 | 12,558 | LIBOR plus 15.32% | Apr-16 | |||||||||||||
Mezzanine loans, fixed rate (7) | 3 | 54,808 | 0.50% to 18.71% | January 2016 to | |||||||||||||
Sep-19 | |||||||||||||||||
Total (2) | 78 | $ | 1,347,030 | ||||||||||||||
As of December 31, 2013: | |||||||||||||||||
Whole loans, floating rate (1) (5) (6) | 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 (7) | 3 | 51,862 | 0.50% to 18.72% | September 2014 to September 2019 | |||||||||||||
Total (2) | 56 | $ | 826,311 | ||||||||||||||
-1 | Whole loans had $105.1 million and $13.7 million in unfunded loan commitments as of December 31, 2014 and 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 December 31, 2014 and 2013, respectively. | ||||||||||||||||
-3 | Maturity dates do not include possible extension options that may be available to the borrowers. | ||||||||||||||||
-4 | Floating rate whole loans include a combined $12.0 million mezzanine component of two whole loans, which have a fixed rate of 12.0%, and a $4.2 million mezzanine component of two whole loans that have a fixed rate of 15.0% at December 31, 2014. | ||||||||||||||||
-5 | Floating rate whole loans include a combined $11.4 million mezzanine component of two whole loans, which have a fixed rate of 12.0% as of December 31, 2013. | ||||||||||||||||
-6 | Floating rate whole loans include a $799,000 junior mezzanine tranche of a whole loan that has a fixed rate of 10.0% as of December 31, 2014 and December 31, 2013. | ||||||||||||||||
-7 | Fixed rate mezzanine loans include a mezzanine loan that was modified into two tranches, which both currently pay interest at 0.50%. In addition, the subordinate tranche accrues interest at LIBOR plus 18.50% which is deferred until maturity. | ||||||||||||||||
Summary of the weighted average life of the commercial real estate loans at amortized cost | The following is a summary of the weighted average life of the Company’s commercial real estate loans, at amortized cost (in thousands): | ||||||||||||||||
Description | 2015 | 2016 | 2017 and Thereafter | Total | |||||||||||||
As of December 31, 2014: | |||||||||||||||||
B notes | $ | — | $ | 16,072 | $ | — | $ | 16,072 | |||||||||
Mezzanine loans | — | 16,736 | 50,630 | 67,366 | |||||||||||||
Whole loans | — | 27,665 | 1,235,927 | 1,263,592 | |||||||||||||
Total (1) | $ | — | $ | 60,473 | $ | 1,286,557 | $ | 1,347,030 | |||||||||
As of December 31, 2013: | 2014 | 2015 | 2016 and Thereafter | Total | |||||||||||||
B notes | $ | — | $ | — | $ | 16,205 | $ | 16,205 | |||||||||
Mezzanine loans | 5,711 | — | 58,606 | 64,317 | |||||||||||||
Whole loans | — | 17,949 | 727,840 | 745,789 | |||||||||||||
Total (1) | $ | 5,711 | $ | 17,949 | $ | 802,651 | $ | 826,311 | |||||||||
-1 | Weighted average life of commercial real estate loans assumes full exercise of extension options available to borrowers. | ||||||||||||||||
Allocation of allowance for loan loss | The following is a summary of the allocation of the allowance for loan loss with respect to the Company’s commercial real estate and bank loans (in thousands, except percentages) by asset class: | ||||||||||||||||
Description | Allowance for | Percentage of Total Allowance | |||||||||||||||
Loan Loss | |||||||||||||||||
As of December 31, 2014: | |||||||||||||||||
B notes | $ | 55 | 1.19% | ||||||||||||||
Mezzanine loans | 230 | 4.99% | |||||||||||||||
Whole loans | 3,758 | 81.47% | |||||||||||||||
Bank loans | 570 | 12.36% | |||||||||||||||
Total | $ | 4,613 | |||||||||||||||
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 (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||
Equity Method Investments | The following table shows the Company's investments in unconsolidated entities as of 2014 and 2013 and equity in net earnings (losses) of unconsolidated subsidiaries for the years ended December 31, 2014, 2013 and 2012 (in thousands): | |||||||||||||||||||||
Balance as of | Years Ended December 31, | |||||||||||||||||||||
Ownership % | December 31, | December 31, | 2014 | 2013 | 2012 | |||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Varde Investment Partners, L.P | 7.50% | $ | 654 | $ | 674 | $ | (20 | ) | $ | 148 | $ | (135 | ) | |||||||||
RRE VIP Borrower, LLC (1) | — | — | 3,473 | 277 | 682 | |||||||||||||||||
Investment in LCC Preferred Stock | 28.40% | 39,416 | 41,016 | (1,555 | ) | (183 | ) | (3,256 | ) | |||||||||||||
Investment in CVC Global Credit Opportunities Fund | 27.70% | 18,209 | 16,177 | 2,032 | 1,177 | — | ||||||||||||||||
Investment in | 50.20% | — | 1,530 | (75 | ) | (470 | ) | — | ||||||||||||||
Life Care Funding (2) | ||||||||||||||||||||||
Investment in School Lane House (1) | — | 975 | 912 | — | — | |||||||||||||||||
58,279 | 60,372 | 4,767 | 949 | (2,709 | ) | |||||||||||||||||
Investment in RCT I and II (3) | 3% | 1,548 | 1,548 | 2,387 | 2,401 | 2,494 | ||||||||||||||||
Investment in Preferred Equity (1) (4) | — | 7,149 | 410 | 992 | 705 | |||||||||||||||||
$ | 59,827 | $ | 69,069 | $ | 7,564 | $ | 4,342 | $ | 490 | |||||||||||||
-1 | Investment in School Lane House, Investment in RRE VIP Borrower and the Investments in preferred equity were sold as of December 31, 2014. | |||||||||||||||||||||
-2 | The Company began consolidating this investment during the first quarter of 2014. Ownership % represents ownership after consolidation. | |||||||||||||||||||||
-3 | For the years ended December 31, 2014, 2013, and 2012 these amounts are recorded in interest expense on the Company's consolidated statements of income. | |||||||||||||||||||||
-4 | For the years ended December 31, 2014, 2013 and 2012 these amounts are recorded in interest income on loans on the Company's consolidated statements of income. |
FINANCING_RECEIVABLES_Tables
FINANCING RECEIVABLES (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 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 | Middle Market Loans | Residential Mortgage Loans | Loans Receivable-Related Party | Total | |||||||||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||||
Allowance for losses at January 1, 2014 | $ | 10,416 | $ | 3,391 | $ | — | $ | — | $ | — | $ | 13,807 | ||||||||||||||||
Provision (recovery) for loan loss | (3,758 | ) | 4,173 | 92 | — | 1,297 | 1,804 | |||||||||||||||||||||
Loans charged-off | (2,615 | ) | (6,994 | ) | (92 | ) | — | (1,297 | ) | (10,998 | ) | |||||||||||||||||
Allowance for losses at December 31, 2014 | $ | 4,043 | $ | 570 | $ | — | $ | — | $ | — | $ | 4,613 | ||||||||||||||||
Ending balance: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 570 | $ | — | $ | — | $ | — | $ | 570 | ||||||||||||||||
Collectively evaluated for impairment | $ | 4,043 | $ | — | $ | — | $ | — | $ | — | $ | 4,043 | ||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Ending balance: (1) | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 166,180 | $ | 1,350 | $ | 250,113 | $ | — | $ | 1,277 | $ | 418,920 | ||||||||||||||||
Collectively evaluated for impairment | $ | 1,180,850 | $ | 329,580 | $ | — | $ | 2,802 | $ | — | $ | 1,513,232 | ||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||||
Allowance for losses at January 1, 2013 | $ | 7,986 | $ | 9,705 | $ | — | $ | — | $ | — | $ | 17,691 | ||||||||||||||||
Provision for loan loss | 2,686 | 312 | 22 | — | — | 3,020 | ||||||||||||||||||||||
Loans charged-off | (256 | ) | (6,626 | ) | (22 | ) | — | — | (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: (1) | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 194,403 | $ | 3,554 | $ | — | $ | — | $ | 6,966 | $ | 204,923 | ||||||||||||||||
Collectively evaluated for impairment | $ | 631,908 | $ | 558,469 | (2) | $ | — | $ | 16,915 | $ | — | $ | 1,207,292 | |||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
(1) Loan balances as of December 31, 2014 and 2013 include loans held for sale. | ||||||||||||||||||||||||||||
(2) Includes $44.3 million of middle market loans at December 31, 2013. | ||||||||||||||||||||||||||||
Credit quality indicators for Bank loans, Middle market and Commercial real estate loans | Credit risk profiles of bank and middle market loans were as follows (in thousands): | |||||||||||||||||||||||||||
Rating 1 | Rating 2 | Rating 3 | Rating 4 | Rating 5 | Held for Sale | Total | ||||||||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||||||||
Bank loans | $ | 291,214 | $ | 32,660 | $ | 5,424 | $ | — | $ | 1,350 | $ | 282 | $ | 330,930 | ||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||||||
Bank loans | $ | 448,224 | $ | 42,476 | $ | 18,806 | $ | 2,333 | $ | 3,554 | $ | 2,377 | $ | 517,770 | ||||||||||||||
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 December 31, 2014: | ||||||||||||||||||||||||||||
Whole loans | $ | 1,231,092 | $ | 32,500 | $ | — | $ | — | $ | — | $ | 1,263,592 | ||||||||||||||||
B notes | 16,072 | — | — | — | — | 16,072 | ||||||||||||||||||||||
Mezzanine loans | 45,432 | 21,934 | — | — | — | 67,366 | ||||||||||||||||||||||
$ | 1,292,596 | $ | 54,434 | $ | — | $ | — | $ | — | $ | 1,347,030 | |||||||||||||||||
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 and middle market loans were as follows (in thousands): | ||||||||||||||||||||||||||||
Rating 1 | Rating 2 | Rating 3 | Rating 4 | Rating 5 | Held for Sale | Total | ||||||||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||||||||
Middle market loans | $ | — | $ | 240,245 | $ | 9,868 | $ | — | $ | — | $ | — | $ | 250,113 | ||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||||||
Middle market loans | $ | — | $ | 39,780 | $ | — | $ | — | $ | — | $ | 4,473 | $ | 44,253 | ||||||||||||||
Loan portfolios aging analysis | The following table shows the loan portfolio aging analysis as of the dates indicated at amortized cost (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 December 31, 2014: | ||||||||||||||||||||||||||||
Whole loans | $ | — | $ | — | $ | — | $ | — | $ | 1,263,592 | $ | 1,263,592 | $ | — | ||||||||||||||
B notes | — | — | — | — | 16,072 | 16,072 | — | |||||||||||||||||||||
Mezzanine loans | — | — | — | — | 67,366 | 67,366 | — | |||||||||||||||||||||
Bank loans (1) | — | — | 1,350 | 1,350 | 329,580 | 330,930 | — | |||||||||||||||||||||
Middle market loans (3) | — | — | — | — | 250,113 | 250,113 | — | |||||||||||||||||||||
Residential mortgage loans (2) | 443 | 82 | 119 | 644 | 113,612 | 114,256 | — | |||||||||||||||||||||
Loans receivable- related party | — | — | — | — | 1,277 | 1,277 | — | |||||||||||||||||||||
Total loans | $ | 443 | $ | 82 | $ | 1,469 | $ | 1,994 | $ | 2,041,612 | $ | 2,043,606 | $ | — | ||||||||||||||
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 (1) | — | — | 3,554 | 3,554 | 514,216 | 517,770 | — | |||||||||||||||||||||
Middle market loans (3) | — | — | — | — | 44,253 | 44,253 | — | |||||||||||||||||||||
Residential mortgage loans (2) | 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 $282,000 and $2.4 million of bank loans held for sale at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||
-2 | Contains $111.5 million and $15.1 million of residential mortgage loans held for sale at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||
-3 | Contains $0 and $4.5 million of middle market loans held for sale at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||
Impaired loans | The following tables show impaired loans as of the dates indicated (in thousands): | |||||||||||||||||||||||||||
Recorded Balance | Unpaid Principal Balance | Specific Allowance | Average Investment in Impaired Loans | Interest Income Recognized | ||||||||||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||||||||
Loans without a specific valuation allowance: | ||||||||||||||||||||||||||||
Whole loans | $ | 128,108 | $ | 128,108 | $ | — | $ | 130,445 | $ | 12,679 | ||||||||||||||||||
B notes | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mezzanine loans | $ | 38,072 | $ | 38,072 | $ | — | $ | 38,072 | $ | 2,859 | ||||||||||||||||||
Bank loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Middle market loans | ||||||||||||||||||||||||||||
Residential mortgage loans | $ | 2,082 | $ | 2,082 | $ | — | $ | 2,082 | $ | 148 | ||||||||||||||||||
Loans receivable - related party | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans with a specific valuation allowance: | ||||||||||||||||||||||||||||
Whole loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
B notes | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mezzanine loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Bank loans | $ | 1,350 | $ | 1,350 | $ | (570 | ) | $ | — | $ | — | |||||||||||||||||
Middle market loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Residential mortgage loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans receivable - related party | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Total: | ||||||||||||||||||||||||||||
Whole loans | $ | 128,108 | $ | 128,108 | $ | — | $ | 130,445 | $ | 12,679 | ||||||||||||||||||
B notes | — | — | — | — | — | |||||||||||||||||||||||
Mezzanine loans | 38,072 | 38,072 | — | 38,072 | 2,859 | |||||||||||||||||||||||
Bank loans | 1,350 | 1,350 | (570 | ) | — | — | ||||||||||||||||||||||
Middle market loans | — | — | — | — | — | |||||||||||||||||||||||
Residential mortgage loans | 2,082 | 2,082 | — | 2,082 | 148 | |||||||||||||||||||||||
Loans receivable - related party | — | — | — | — | — | |||||||||||||||||||||||
$ | 169,612 | $ | 169,612 | $ | (570 | ) | $ | 170,599 | $ | 15,686 | ||||||||||||||||||
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 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Middle market loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Residential mortgage loans | $ | 315 | $ | 268 | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans receivable - related party | $ | 5,733 | $ | 5,733 | $ | — | $ | — | $ | — | ||||||||||||||||||
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 | ) | $ | — | $ | — | |||||||||||||||||
Middle market loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
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 | ) | — | — | ||||||||||||||||||||||
Middle market loans | — | — | — | — | — | |||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
Year Ended December 31, 2014: | ||||||||||||||||||||||||||||
Whole loans | 3 | $ | 99,739 | $ | 99,739 | |||||||||||||||||||||||
B notes | — | — | — | |||||||||||||||||||||||||
Mezzanine loans | 1 | 38,072 | 38,072 | |||||||||||||||||||||||||
Bank loans | — | — | — | |||||||||||||||||||||||||
Middle market loans | — | — | — | |||||||||||||||||||||||||
Residential mortgage loans | — | — | — | |||||||||||||||||||||||||
Loans receivable - related party | — | — | — | |||||||||||||||||||||||||
Total loans | 4 | $ | 137,811 | $ | 137,811 | |||||||||||||||||||||||
Year Ended December 31, 2013: | ||||||||||||||||||||||||||||
Whole loans | 5 | $ | 143,484 | $ | 147,826 | |||||||||||||||||||||||
B notes | — | — | — | |||||||||||||||||||||||||
Mezzanine loans | — | — | — | |||||||||||||||||||||||||
Bank loans | — | — | — | |||||||||||||||||||||||||
Middle market loans | — | — | — | |||||||||||||||||||||||||
Loans receivable - related party | 1 | 6,592 | 6,592 | |||||||||||||||||||||||||
Total loans | 6 | $ | 150,076 | $ | 154,418 | |||||||||||||||||||||||
BUSINESS_COMBINATION_Tables
BUSINESS COMBINATION (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Business Combinations [Abstract] | ||||
Aggregate estimated fair value of assets and liabilities acquired | 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) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Summary of intangible assets | The following table summarizes intangible assets at December 31, 2014 and 2013 (in thousands). | |||||||||||
Beginning Balance | Accumulated Amortization | Net Asset | ||||||||||
As of December 31, 2014: | ||||||||||||
Investment in RCAM | $ | 21,213 | $ | (11,779 | ) | $ | 9,434 | |||||
Investments in PCM: | ||||||||||||
Wholesale or correspondent relationships | 600 | (298 | ) | 302 | ||||||||
Total intangible assets | $ | 21,813 | $ | (12,077 | ) | $ | 9,736 | |||||
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 | ) | — | ||||||||
Investments in PCM: | ||||||||||||
Wholesale or correspondent relationships | 600 | (42 | ) | 558 | ||||||||
Total intangible assets | $ | 24,303 | $ | (12,481 | ) | $ | 11,822 | |||||
Schedule Loan Servicing Portfolio | The activity in the loan servicing portfolio associated with capitalized servicing rights consisted of (in thousands): | |||||||||||
Year Ended | ||||||||||||
December 31, 2014 | ||||||||||||
Balance, beginning of Period | $ | 433,153 | ||||||||||
Additions | 519,915 | |||||||||||
Payoffs, sales and curtailments | (58,301 | ) | ||||||||||
Balance, end of period | $ | 894,767 | ||||||||||
The activity in capitalized MSRs is recorded in other assets and consists of the followings (in thousands): | ||||||||||||
Year Ended | ||||||||||||
December 31, 2014 | ||||||||||||
Balance, beginning of Period | $ | 4,885 | ||||||||||
Additions | 6,446 | |||||||||||
Sales | — | |||||||||||
Balance, end of period | $ | 11,331 | ||||||||||
Accumulated amortization | (2,457 | ) | ||||||||||
Balance, end of period | $ | 8,874 | ||||||||||
Servicing Fees | The value of MSRs is driven by the net positive, or in some cases net negative, cash flows associated with servicing activities. These cash flows include contractually specified servicing fees, late fees and other ancillary servicing revenue and were recorded within Other income as follows (in thousands): | |||||||||||
Year Ended | ||||||||||||
December 31, 2014 | ||||||||||||
Servicing fees from capitalized portfolio | $ | 1,649 | ||||||||||
Late Fees | $ | 81 | ||||||||||
Other ancillary servicing revenue | $ | 6 | ||||||||||
BORROWINGS_Tables
BORROWINGS (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Information with Respect to Borrowings | Certain information with respect to the Company’s borrowings at December 31, 2014 and 2013 is summarized in the following table (in thousands, except percentages): | |||||||||||||||||||||||
Principal Outstanding | Unamortized | Outstanding Borrowings | Weighted Average | Weighted Average | Value of | |||||||||||||||||||
Issuance Costs | Borrowing Rate | Remaining | Collateral | |||||||||||||||||||||
and Discounts | Maturity | |||||||||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||||
RREF CDO 2006-1 Senior Notes | $ | 61,423 | $ | — | $ | 61,423 | 2.12% | 31.6 years | $ | 139,242 | ||||||||||||||
RREF CDO 2007-1 Senior Notes | 130,340 | 133 | 130,207 | 1.19% | 31.8 years | 271,423 | ||||||||||||||||||
RCC CRE Notes 2013 Senior Notes | 226,840 | 2,683 | 224,157 | 2.11% | 14.0 years | 249,983 | ||||||||||||||||||
RCC CRE 2014 Senior Notes | 235,344 | 3,687 | 231,657 | 1.45% | 17.3 years | 346,585 | ||||||||||||||||||
Apidos CDO III Senior Notes | 74,646 | — | 74,646 | 1.18% | 5.7 years | 85,553 | ||||||||||||||||||
Apidos Cinco CDO Senior Notes | 255,664 | 201 | 255,463 | 0.81% | 5.4 years | 272,512 | ||||||||||||||||||
Moselle CLO Senior Notes, at fair value (7) | 63,321 | — | 63,321 | 1.49% | 5.0 years | 93,576 | ||||||||||||||||||
Moselle CLO Securitized Borrowings, at fair value (1) | 5,619 | — | 5,619 | 1.49% | 5.0 years | — | ||||||||||||||||||
Unsecured Junior Subordinated Debentures (2) | 51,548 | 343 | 51,205 | 4.19% | 21.8 years | — | ||||||||||||||||||
6.0% Convertible Senior Notes | 115,000 | 6,626 | 108,374 | 6.00% | 3.9 years | — | ||||||||||||||||||
CRE - Term Repurchase Facilities (3) | 207,640 | 1,958 | 205,682 | 2.43% | 20 days | 297,571 | ||||||||||||||||||
CMBS - Term Repurchase Facility (4) | 24,967 | — | 24,967 | 1.35% | 20 days | 30,180 | ||||||||||||||||||
RMBS - Term Repurchase Facility (6) | 22,248 | 36 | 22,212 | 1.16% | 1 day | 27,885 | ||||||||||||||||||
Residential Mortgage Financing Agreements | 102,576 | — | 102,576 | 2.78% | 207 days | 147,472 | ||||||||||||||||||
CMBS - Short Term Repurchase Agreements (5) | 44,225 | — | 44,225 | 1.63% | 17 days | 62,446 | ||||||||||||||||||
Senior Secured Revolving Credit Agreement (8) | 113,500 | 2,363 | 111,137 | 2.66% | 2.7 years | 262,687 | ||||||||||||||||||
Total | $ | 1,734,901 | $ | 18,030 | $ | 1,716,871 | 2.09% | 10.0 years | $ | 2,287,115 | ||||||||||||||
Principal Outstanding | Unamortized | Outstanding Borrowings | Weighted Average | Weighted Average | Value of | |||||||||||||||||||
Issuance Costs | Borrowing Rate | Remaining | Collateral | |||||||||||||||||||||
and Discounts | Maturity | |||||||||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||
RREF CDO 2006-1 Senior Notes | $ | 94,209 | $ | 205 | $ | 94,004 | 1.87% | 32.6 years | $ | 169,115 | ||||||||||||||
RREF CDO 2007-1 Senior Notes | 178,556 | 719 | 177,837 | 0.84% | 32.8 years | 318,933 | ||||||||||||||||||
RCC CRE Notes 2013 Senior Notes | 260,840 | 4,269 | 256,571 | 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 | 133,326 | 117 | 133,209 | 0.88% | 6.7 years | 145,930 | ||||||||||||||||||
Apidos Cinco CDO Senior Notes | 322,000 | 853 | 321,147 | 0.74% | 6.4 years | 342,796 | ||||||||||||||||||
Whitney CLO I Securitized | 440 | — | 440 | —% | N/A | 885 | ||||||||||||||||||
Borrowings (1) | ||||||||||||||||||||||||
Unsecured Junior | 51,548 | 543 | 51,005 | 4.19% | 22.8 years | — | ||||||||||||||||||
Subordinated Debentures (2) | ||||||||||||||||||||||||
6.0% Convertible Senior Notes | 115,000 | 8,465 | 106,535 | 6.00% | 4.9 years | — | ||||||||||||||||||
CRE - Term Repurchase Facilities (3) | 30,736 | 1,033 | 29,703 | 2.67% | 21 days | 48,186 | ||||||||||||||||||
CMBS - Term Repurchase Facility (4) | 47,613 | 12 | 47,601 | 1.38% | 21 days | 56,949 | ||||||||||||||||||
Residential Mortgage Financing Agreements | 14,627 | — | 14,627 | 4.24% | 56 days | 16,487 | ||||||||||||||||||
Total | $ | 1,336,026 | $ | 16,216 | $ | 1,319,810 | 1.87% | 13.1 years | $ | 1,508,603 | ||||||||||||||
-1 | The securitized borrowings were collateralized by the same assets as the Moselle CLO Senior Notes and the Whitney CLO I Senior Notes. | |||||||||||||||||||||||
-2 | Amount represents junior subordinated debentures issued to RCT I and RCT II in May 2006 and September 2006, respectively. | |||||||||||||||||||||||
-3 | Amount also includes accrued interest expense of $198,000 and $26,000 related to CRE repurchase facilities as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||
-4 | Amounts also include accrued interest expense of $12,000 and $22,000 related to CMBS repurchase facilities as of December 31, 2014 and 2013, respectively. Amount does not reflect CMBS repurchase agreement borrowings that are components of linked transactions. | |||||||||||||||||||||||
-5 | Amount also includes accrued interest expense of $31,000 related to CMBS short term repurchase facilities as of December 31, 2014. | |||||||||||||||||||||||
-6 | Amount also includes accrued interest expense of $20,000 related to RMBS repurchase facilities as of December 31, 2014. | |||||||||||||||||||||||
-7 | 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 $63.3 million at December 31, 2014. Unpaid principal does not include subordinated notes with a fair value of $27.8 million that are owned by the Company and eliminate in consolidation. | |||||||||||||||||||||||
-8 | Value of collateral includes$14.9 million of principal receivable at December 31, 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 December 31, 2014 | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
RREF CDO 2006-1 Senior Notes | Aug-06 | Aug-46 | Sep-11 | $ | 165.6 | |||||||||||||||||||
RREF CDO 2007-1 Senior Notes | Jun-07 | Sep-46 | Jun-12 | $ | 151.7 | |||||||||||||||||||
RCC CRE Notes 2013 Senior Notes | Dec-13 | Dec-28 | N/A | $ | 34 | |||||||||||||||||||
RCC CRE 2014 Senior Notes | Jul-14 | Apr-32 | N/A | $ | — | |||||||||||||||||||
Apidos CDO III Senior Notes | May-06 | Sep-20 | Jun-12 | $ | 187.9 | |||||||||||||||||||
Apidos Cinco CDO Senior Notes | May-07 | May-20 | May-14 | $ | 66.3 | |||||||||||||||||||
Moselle CLO S.A. Senior Notes | Oct-05 | Jan-20 | Jan-12 | $ | 100.3 | |||||||||||||||||||
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 23). | |||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
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 (2) | as Collateral | of Linked | Transactions (1) | Transactions (2) | as Collateral | of Linked | |||||||||||||||||
Under Linked | Transactions | Under Linked | Transactions | |||||||||||||||||||||
Transactions | Transactions | |||||||||||||||||||||||
CMBS Term | ||||||||||||||||||||||||
Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank | $ | 4,941 | $ | 6,371 | 7 | 1.67% | $ | 6,506 | $ | 8,345 | 7 | 1.65% | ||||||||||||
Short-Term Repurchase | ||||||||||||||||||||||||
Agreements - CMBS | ||||||||||||||||||||||||
JP Morgan Securities, LLC | — | — | — | —% | 17,020 | 24,814 | 4 | 0.99% | ||||||||||||||||
Wells Fargo Securities, LLC | 4,108 | 6,233 | 2 | 1.37% | 21,969 | 30,803 | 9 | 1.19% | ||||||||||||||||
Deutsche Bank Securities, LLC | 24,348 | 36,001 | 10 | 1.57% | 18,599 | 29,861 | 9 | 1.43% | ||||||||||||||||
Totals | $ | 33,397 | $ | 48,605 | $ | 64,094 | $ | 93,823 | ||||||||||||||||
-1 | Equal to linked CMBS repurchase value plus accrued interest expenses totaling $20,000 and $38,000 as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||
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 December 31, 2014: | ||||||||||||||||||||||||
CMBS Term Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank, National Association | $ | 6,486 | 20 | 1.35% | ||||||||||||||||||||
RMBS Term Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank, National Association | $ | 5,017 | 1 | 1.16% | ||||||||||||||||||||
CRE Term Repurchase Facilities | ||||||||||||||||||||||||
Wells Fargo Bank, National Association | $ | 76,148 | 20 | 2.38% | ||||||||||||||||||||
Deutsche Bank Securities, LLC | $ | 13,017 | 19 | 2.78% | ||||||||||||||||||||
Short-Term Repurchase Agreements - CMBS | ||||||||||||||||||||||||
JP Morgan Securities, LLC | $ | — | 0 | —% | ||||||||||||||||||||
Wells Fargo Securities, LLC | $ | 2,127 | 9 | 1.66% | ||||||||||||||||||||
Deutsche Bank Securities, LLC | $ | 11,810 | 20 | 1.62% | ||||||||||||||||||||
Residential Mortgage Financing Agreements | ||||||||||||||||||||||||
New Century Bank | $ | 853 | 242 | 2.82% | ||||||||||||||||||||
Wells Fargo Bank | $ | 6,902 | 183 | 2.75% | ||||||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||
CMBS Term Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank, National Association | $ | 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 | $ | 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. | |||||||||||||||||||||||
CRE - Term Repurchase Facility [Member] | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Repurchase and Credit Facilities | The following table sets forth certain information with respect to the Company's borrowings at December 31, 2014 and 2013 (dollars in thousands): | |||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
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) | $ | 24,967 | $ | 30,180 | 33 | 1.35% | $ | 47,601 | $ | 56,949 | 44 | 1.38% | ||||||||||||
CRE Term | ||||||||||||||||||||||||
Repurchase Facilities | ||||||||||||||||||||||||
Wells Fargo Bank (2) | 179,762 | 258,223 | 15 | 2.38% | 30,003 | 48,186 | 3 | 2.67% | ||||||||||||||||
Deutsche Bank AG (3) | 25,920 | 39,348 | 2 | 2.78% | (300 | ) | — | — | —% | |||||||||||||||
Short-Term Repurchase | ||||||||||||||||||||||||
Agreements - CMBS | ||||||||||||||||||||||||
Wells Fargo Securities, LLC | 10,442 | 17,695 | 1 | 1.66% | — | — | — | —% | ||||||||||||||||
Deutsche Bank Securities, LLC | 33,783 | 44,751 | 8 | 1.62% | — | — | — | —% | ||||||||||||||||
RMBS Term | ||||||||||||||||||||||||
Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank (4) | 22,212 | 27,885 | 6 | 1.16% | ||||||||||||||||||||
Residential Mortgage | ||||||||||||||||||||||||
Financing Agreements | ||||||||||||||||||||||||
New Century Bank | 41,387 | 51,961 | 158 | 2.82% | 11,916 | 13,089 | 74 | 4.17% | ||||||||||||||||
ViewPoint Bank, NA | — | — | — | —% | 2,711 | 3,398 | 17 | 4.58% | ||||||||||||||||
Wells Fargo Bank | 61,189 | 95,511 | 104 | 2.75% | ||||||||||||||||||||
Totals | $ | 399,662 | $ | 565,554 | $ | 91,931 | $ | 121,622 | ||||||||||||||||
-1 | The Wells Fargo CMBS term facility borrowing includes $0 and $12,000, of deferred debt issuance costs as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||
-2 | The Wells Fargo CRE term repurchase facility borrowing includes $1.7 million and $732,000 of deferred debt issuance costs as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||
-3 | The Deutsche Bank term repurchase facility includes $268,000 and $300,000 of deferred debt issuance costs as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||
-4 | The Wells Fargo RMBS term repurchase facility includes $36,000 of deferred debt issuance costs as of December 31, 2014 |
STOCK_INCENTIVE_PLANS_AND_SHAR1
STOCK INCENTIVE PLANS AND SHARE ISSUANCE AND REPURCHASE (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes the Company's preferred stock: | |||||||||||||
Year ended December 31, 2014 | Total Outstanding | |||||||||||||
Number of Shares | Weighted Average Offering Price | Number of Shares | Weighted Average Offering Price | |||||||||||
8.50% Series A Preferred Stock | 388,064 | $ | 23.82 | 1,069,016 | $ | 24.05 | ||||||||
8.25% Series B Preferred Stock | 2,116,068 | $ | 23.02 | 5,601,146 | $ | 23.86 | ||||||||
8.625% Series C Preferred Stock | 4,800,000 | $ | 24.21 | 4,800,000 | $ | 24.21 | ||||||||
The following table summarizes the status of the Company’s vested stock options as of December 31, 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 December 31, 2014 | 640,666 | $ | 14.45 | 0.8 | $ | — | ||||||||
The following table summarizes the status of the Company’s unvested stock options as of December 31, 2014: | ||||||||||||||
Unvested Options | Options | Weighted Average Grant Date Fair Value | ||||||||||||
Unvested at January 1, 2014 | 13,334 | $ | 0.01 | |||||||||||
Granted | — | — | ||||||||||||
Vested | (13,334 | ) | 0.01 | |||||||||||
Forfeited | — | — | ||||||||||||
Unvested at December 31, 2014 | — | $ | — | |||||||||||
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Summary of restricted common stock transactions | The following table summarizes the Company's 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 | ) | (1,846,565 | ) | (99,103 | ) | (1,978,887 | ) | ||||||
Forfeited | — | — | — | — | ||||||||||
Unvested shares as of December 31, 2014 | 49,203 | 1,812,853 | 161,583 | 2,023,639 | ||||||||||
Schedule of restricted stock granted | The following table summarizes the restricted common stock grants during the year ended December 31, 2014: | |||||||||||||
Date | Shares | Vesting/Year | Date(s) | |||||||||||
January 30, 2014 | 459,307 | 33.30% | 1/30/15, 1/30/16, 1/30/17 | |||||||||||
January 30, 2014 | 22,318 | 33.30% | 1/30/15, 1/30/16, 1/30/17 | |||||||||||
February 3, 2014 | 5,972 | 100% | 2/3/15 | |||||||||||
March 11, 2014 | 25,770 | 100% | 3/11/15 | |||||||||||
March 12, 2014 | 6,044 | 100% | 3/12/15 | |||||||||||
March 31, 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 | |||||||||||
Total shares | 889,931 | |||||||||||||
-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 31, 2014, the third annual measurement period ended and 112,000 shares were earned. In addition, $258,000 of accrued dividends equivalents rights were earned. | |||||||||||||
Summary of stock option transactions | The following table summarizes the Company's preferred stock: | |||||||||||||
Year ended December 31, 2014 | Total Outstanding | |||||||||||||
Number of Shares | Weighted Average Offering Price | Number of Shares | Weighted Average Offering Price | |||||||||||
8.50% Series A Preferred Stock | 388,064 | $ | 23.82 | 1,069,016 | $ | 24.05 | ||||||||
8.25% Series B Preferred Stock | 2,116,068 | $ | 23.02 | 5,601,146 | $ | 23.86 | ||||||||
8.625% Series C Preferred Stock | 4,800,000 | $ | 24.21 | 4,800,000 | $ | 24.21 | ||||||||
The following table summarizes the status of the Company’s vested stock options as of December 31, 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 December 31, 2014 | 640,666 | $ | 14.45 | 0.8 | $ | — | ||||||||
The following table summarizes the status of the Company’s unvested stock options as of December 31, 2014: | ||||||||||||||
Unvested Options | Options | Weighted Average Grant Date Fair Value | ||||||||||||
Unvested at January 1, 2014 | 13,334 | $ | 0.01 | |||||||||||
Granted | — | — | ||||||||||||
Vested | (13,334 | ) | 0.01 | |||||||||||
Forfeited | — | — | ||||||||||||
Unvested at December 31, 2014 | — | $ | — | |||||||||||
Summary of share based compensation expense | For the years ended December 31, 2014, 2013, and 2012, the components of equity compensation expense were as follows: | |||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Options granted to Manager and non-employees | (2 | ) | 6 | 2 | ||||||||||
Restricted shares granted to non-employees | 5,679 | 10,142 | 4,522 | |||||||||||
Restricted shares granted to employees | 633 | 106 | — | |||||||||||
Restricted shares granted to non-employee directors | 256 | 218 | 112 | |||||||||||
Total equity compensation expense | 6,566 | 10,472 | 4,636 | |||||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 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): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Basic: | ||||||||||||
Net income allocable to common shares | $ | 44,027 | $ | 39,232 | $ | 63,199 | ||||||
Weighted average number of shares outstanding | 128,031,064 | 118,478,672 | 88,410,272 | |||||||||
Basic net income per share | $ | 0.34 | $ | 0.33 | $ | 0.71 | ||||||
Diluted: | ||||||||||||
Net income allocable to common shares | $ | 44,027 | $ | 39,232 | $ | 63,199 | ||||||
Weighted average number of shares outstanding | 128,031,064 | 118,478,672 | 88,410,272 | |||||||||
Additional shares due to assumed conversion of dilutive instruments | 1,228,322 | 1,560,301 | 874,216 | |||||||||
Adjusted weighted-average number of common shares outstanding | 129,259,386 | 120,038,973 | 89,284,488 | |||||||||
Diluted net income per share | $ | 0.34 | $ | 0.33 | $ | 0.71 | ||||||
Recovered_Sheet1
Accumulated Other Comprehensive (Loss) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | The following table, which is presented gross of tax, presents the changes in each component of accumulated other comprehensive income for the year ended December 31, 2014 (dollars in thousands): | |||||||||||||||
Net unrealized (loss) gain on derivatives | Net unrealized (loss) gain on securities, | Foreign currency translation | Net unrealized (loss) gain | |||||||||||||
available-for-sale | ||||||||||||||||
January 1, 2014 | $ | (11,155 | ) | $ | (3,084 | ) | $ | 196 | $ | (14,043 | ) | |||||
Other comprehensive gain (loss) before reclassifications | 1,906 | 13,937 | (608 | ) | 15,235 | |||||||||||
Amounts reclassified from accumulated other | 282 | 9,051 | — | 9,333 | ||||||||||||
comprehensive income | ||||||||||||||||
Net current-period other comprehensive income | 2,188 | 22,988 | (608 | ) | 24,568 | |||||||||||
Unrealized gains (losses) on available-for-sale securities allocable to non-controlling interests | — | (4,482 | ) | — | (4,482 | ) | ||||||||||
December 31, 2014 | $ | (8,967 | ) | $ | 15,422 | $ | (412 | ) | $ | 6,043 | ||||||
DISTRIBUTIONS_Tables
DISTRIBUTIONS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||
DISTRIBUTIONS [Abstract] | |||||||||||||||||||||||||||||||
Dividends Declared | The following tables presents dividends declared (on a per share basis) for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
30-Sep | 28-Oct | $ | 26,629 | $ | 0.2 | ||||||||||||||||||||||||||
31-Dec | January 28, 2015 | $ | 26,563 | $ | 0.2 | ||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||
31-Mar | 26-Apr | $ | 21,634 | $ | 0.2 | ||||||||||||||||||||||||||
30-Jun | 26-Jul | $ | 25,399 | $ | 0.2 | ||||||||||||||||||||||||||
30-Sep | 28-Oct | $ | 25,447 | $ | 0.2 | ||||||||||||||||||||||||||
31-Dec | 28-Jan-14 | $ | 25,536 | $ | 0.2 | ||||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||||
31-Mar | 27-Apr | $ | 16,921 | $ | 0.2 | ||||||||||||||||||||||||||
30-Jun | 26-Jul | $ | 17,253 | $ | 0.2 | ||||||||||||||||||||||||||
30-Sep | 26-Oct | $ | 19,897 | $ | 0.2 | ||||||||||||||||||||||||||
31-Dec | 28-Jan-13 | $ | 21,024 | $ | 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 | |||||||||||||||||||||||||||||||
31-Mar | 30-Apr | $ | 463 | $ | 0.53125 | 30-Apr | $ | 2,057 | $ | 0.515625 | 30-Apr | $ | — | $ | — | ||||||||||||||||
30-Jun | 30-Jul | $ | 537 | $ | 0.53125 | 30-Jul | $ | 2,378 | $ | 0.515625 | 30-Jul | $ | 1,437 | $ | 0.0299479 | ||||||||||||||||
30-Sep | 30-Oct | $ | 537 | $ | 0.53125 | 30-Oct | $ | 2,430 | $ | 0.515625 | 30-Oct | $ | 2,588 | $ | 0.5390625 | ||||||||||||||||
31-Dec | 30-Jan-15 | $ | 568 | $ | 0.53125 | 30-Jan-15 | $ | 2,888 | $ | 0.515625 | 30-Jan-15 | 2,588 | $ | 0.5390625 | |||||||||||||||||
2013 | |||||||||||||||||||||||||||||||
31-Mar | 30-Apr | $ | 359 | $ | 0.53125 | 30-Apr | $ | 1,152 | $ | 0.515625 | |||||||||||||||||||||
30-Jun | 30-Jul | $ | 359 | $ | 0.53125 | 30-Jul | $ | 1,584 | $ | 0.515625 | |||||||||||||||||||||
30-Sep | 30-Oct | $ | 362 | $ | 0.53125 | 30-Oct | $ | 1,662 | $ | 0.515625 | |||||||||||||||||||||
31-Dec | 30-Jan-14 | $ | 362 | $ | 0.53125 | 30-Jan-14 | $ | 1,797 | $ | 0.515625 | |||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||||
31-Mar | — | $ | — | $ | — | — | $ | — | $ | — | |||||||||||||||||||||
30-Jun | 30-Jul | $ | 93 | $ | 0.27153 | — | $ | — | $ | — | |||||||||||||||||||||
30-Sep | 30-Oct | $ | 359 | $ | 0.53125 | 30-Oct | $ | 160 | $ | 0.16042 | |||||||||||||||||||||
31-Dec | 30-Jan-13 | $ | 359 | $ | 0.53125 | 30-Jan-13 | $ | 576 | $ | 0.515625 | |||||||||||||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
Fair value assets and liabilities measured on recurring basis | The following table presents information about the Company’s assets (including derivatives that are presented net) measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as follows (in thousands): | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Investment securities, trading | $ | — | $ | — | $ | 20,786 | $ | 20,786 | ||||||||||||
Investment securities available-for-sale | — | 33,158 | 242,562 | 275,720 | ||||||||||||||||
CMBS - linked transactions | — | — | 15,367 | 15,367 | ||||||||||||||||
Derivatives (net) | 3,429 | 7 | 1,868 | 5,304 | ||||||||||||||||
Total assets at fair value | $ | 3,429 | $ | 33,165 | $ | 280,583 | $ | 317,177 | ||||||||||||
Liabilities: | ||||||||||||||||||||
Moselle CLO Notes | $ | — | $ | — | $ | 68,940 | $ | 68,940 | ||||||||||||
Derivatives (net) | — | — | 8,476 | 8,476 | ||||||||||||||||
Total liabilities at fair value | $ | — | $ | — | $ | 77,416 | $ | 77,416 | ||||||||||||
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 | 235 | 3,740 | (36 | ) | (3,638 | ) | 301 | |||||||||||||
Purchases | 123,671 | 79,289 | 31,058 | 19,359 | 253,377 | |||||||||||||||
Sales | (110,825 | ) | (38,262 | ) | — | (2,396 | ) | (151,483 | ) | |||||||||||
Paydowns | (43,891 | ) | (11,928 | ) | (825 | ) | (2,165 | ) | (58,809 | ) | ||||||||||
Issuances | — | — | — | — | — | |||||||||||||||
Settlements | — | — | — | — | — | |||||||||||||||
Included in OCI | 5,797 | 12,662 | 897 | (1,481 | ) | 17,875 | ||||||||||||||
Transfers into Level 2 | — | — | (31,545 | ) | — | (31,545 | ) | |||||||||||||
Transfers into Level 3 | — | — | — | — | — | |||||||||||||||
Balance, December 31, 2014 | 185,772 | 72,157 | — | 20,786 | 278,715 | |||||||||||||||
Fair value liabilities unobservable input reconciliation | The following table presents additional information about liabilities which are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs (in thousands): | |||||||||||||||||||
Level 3 | ||||||||||||||||||||
Beginning balance, January 1, 2013 | $ | 14,077 | ||||||||||||||||||
Unrealized losses – included in accumulated other comprehensive income | (3,886 | ) | ||||||||||||||||||
Beginning balance, January 1, 2014 | 10,191 | |||||||||||||||||||
Unrealized losses – included in accumulated other comprehensive income | (1,715 | ) | ||||||||||||||||||
Ending balance, December 31, 2014 | $ | 8,476 | ||||||||||||||||||
Fair value assets and liabilities measured on nonrecurring basis | The following table summarizes 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 December 31, 2014: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Loans held for sale | $ | — | $ | 36,956 | $ | — | $ | 36,956 | ||||||||||||
Impaired loans | — | 1,678 | 137,811 | 139,489 | ||||||||||||||||
Total assets at fair value | $ | — | $ | 38,634 | $ | 137,811 | $ | 176,445 | ||||||||||||
As of December 31, 2013: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Loans held for sale | $ | — | $ | 6,850 | $ | 15,066 | $ | 21,916 | ||||||||||||
Impaired loans | — | 225 | — | 225 | ||||||||||||||||
Total assets at fair value | $ | — | $ | 7,075 | $ | 15,066 | $ | 22,141 | ||||||||||||
Significant unobservable inputs used in fair value measurements | For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2014, the significant unobservable inputs used in the fair value measurements were as follows (in thousands): | |||||||||||||||||||
Fair Value at December 31, 2014 | Valuation Technique | Significant Unobservable Inputs | Significant Unobservable Input Value | |||||||||||||||||
Interest rate swap agreements | $ | 8,476 | 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 below (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 December 31, 2014: | ||||||||||||||||||||
Loans held-for-investment | $ | 1,925,980 | $ | 1,909,019 | $ | — | $ | 570,071 | $ | 1,338,948 | ||||||||||
Loans receivable-related party | $ | 1,277 | $ | 1,277 | $ | — | $ | — | $ | 1,277 | ||||||||||
CDO notes | $ | 1,046,493 | $ | 975,762 | $ | — | $ | — | $ | 975,762 | ||||||||||
Junior subordinated notes | $ | 51,205 | $ | 17,699 | $ | — | $ | — | $ | 17,699 | ||||||||||
Repurchase agreements | $ | 399,662 | $ | 399,662 | $ | — | $ | — | $ | 399,662 | ||||||||||
Senior secured revolving credit agreement | $ | 111,137 | $ | 111,137 | $ | — | $ | — | $ | 111,137 | ||||||||||
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 | ||||||||||
MARKET_RISK_AND_DERIVATIVE_INS1
MARKET RISK AND DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 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 23). | |||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
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 (2) | as Collateral | of Linked | Transactions (1) | Transactions (2) | as Collateral | of Linked | |||||||||||||||||
Under Linked | Transactions | Under Linked | Transactions | |||||||||||||||||||||
Transactions | Transactions | |||||||||||||||||||||||
CMBS Term | ||||||||||||||||||||||||
Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank | $ | 4,941 | $ | 6,371 | 7 | 1.67% | $ | 6,506 | $ | 8,345 | 7 | 1.65% | ||||||||||||
Short-Term Repurchase | ||||||||||||||||||||||||
Agreements - CMBS | ||||||||||||||||||||||||
JP Morgan Securities, LLC | — | — | — | —% | 17,020 | 24,814 | 4 | 0.99% | ||||||||||||||||
Wells Fargo Securities, LLC | 4,108 | 6,233 | 2 | 1.37% | 21,969 | 30,803 | 9 | 1.19% | ||||||||||||||||
Deutsche Bank Securities, LLC | 24,348 | 36,001 | 10 | 1.57% | 18,599 | 29,861 | 9 | 1.43% | ||||||||||||||||
Totals | $ | 33,397 | $ | 48,605 | $ | 64,094 | $ | 93,823 | ||||||||||||||||
-1 | Equal to linked CMBS repurchase value plus accrued interest expenses totaling $20,000 and $38,000 as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||
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 years ended 2014, 2013 and 2012 (in thousands): | |||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Components of Unrealized Net (Losses) Gains and Net Interest Income | ||||||||||||||||||||||||
Income from Linked Transactions | ||||||||||||||||||||||||
Interest income attributable to CMBS underlying linked transactions | $ | 2,879 | $ | 2,912 | $ | 802 | ||||||||||||||||||
Interest expense attributable to linked repurchase | (644 | ) | (735 | ) | (242 | ) | ||||||||||||||||||
agreement borrowings underlying linked transactions | ||||||||||||||||||||||||
Change in fair value of linked transactions included in earnings | 5,615 | (6,018 | ) | 168 | ||||||||||||||||||||
Unrealized net (losses) gains and net interest income from linked transactions | $ | 7,850 | $ | (3,841 | ) | $ | 728 | |||||||||||||||||
Available-for-sale Securities | The following table summarizes the Company's investment securities, including those pledged as collateral and classified as available-for-sale, which are carried at fair value (in thousands): | |||||||||||||||||||||||
Amortized Cost (1) | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||||
CMBS | $ | 168,669 | $ | 4,938 | $ | (3,202 | ) | $ | 170,405 | |||||||||||||||
RMBS | 29,814 | 937 | — | 30,751 | ||||||||||||||||||||
ABS | 55,617 | 16,876 | (336 | ) | 72,157 | |||||||||||||||||||
Corporate Bonds | 2,415 | 10 | (18 | ) | 2,407 | |||||||||||||||||||
Total | $ | 256,515 | $ | 22,761 | $ | (3,556 | ) | $ | 275,720 | |||||||||||||||
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 | |||||||||||||||
-1 | As of December 31, 2014 and 2013, $197.8 million and $162.6 million, respectively, of securities were pledged as collateral security under related financings. | |||||||||||||||||||||||
The following table summarizes the Company's sales of investment securities available-for-sale during the period indicated (in thousands, except number of securities): | ||||||||||||||||||||||||
Positions | Par Amount Sold | Realized Gain (Loss) | ||||||||||||||||||||||
Sold | ||||||||||||||||||||||||
For the Year Ended December 31, 2014: | ||||||||||||||||||||||||
CMBS position | 5 | $ | 27,370 | $ | 573 | |||||||||||||||||||
ABS | 8 | $ | 11,574 | $ | 2,922 | |||||||||||||||||||
For the Year Ended December 31, 2013: | ||||||||||||||||||||||||
CMBS position | 4 | $ | 14,500 | $ | 466 | |||||||||||||||||||
Corporate bond position | 35 | $ | 34,253 | $ | (474 | ) | ||||||||||||||||||
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 December 31, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||
Notional Amount | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
Interest rate lock agreements | $ | 59,467 | Derivatives, at fair value | $ | 970 | |||||||||||||||||||
Forward contracts - residential mortgage lending | $ | 5,000 | Derivatives, at fair value | $ | 7 | |||||||||||||||||||
Forward contracts - RMBS securities | $ | 42,614 | Derivatives, at fair value | $ | 1,297 | |||||||||||||||||||
Forward contracts - foreign currency, hedging | $ | 54,948 | Derivatives, at fair value | $ | 3,377 | |||||||||||||||||||
Options - U.S. Treasury futures | $ | 90 | Derivatives, at fair value | $ | 52 | |||||||||||||||||||
Warrants | $ | 492 | Derivatives, at fair value | $ | 898 | |||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||
Notional Amount | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
Interest rate swap contracts | $ | 124,017 | Derivatives, at fair value | $ | 8,680 | |||||||||||||||||||
Interest rate lock agreements | $ | 798 | Derivatives, at fair value | $ | 10 | |||||||||||||||||||
Forward contracts - residential mortgage lending | $ | 154,692 | Derivatives, at fair value | $ | 1,036 | |||||||||||||||||||
Forward contracts - foreign currency, hedging | $ | — | Derivatives, at fair value | $ | — | |||||||||||||||||||
Forward contracts - TBA securities | $ | 15,000 | Derivatives, at fair value | $ | 47 | |||||||||||||||||||
Interest rate swap contracts | $ | 124,017 | Accumulated other comprehensive loss | $ | 8,680 | |||||||||||||||||||
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, hedging | $ | — | 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, hedging | $ | — | 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 | |||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||
Notional Amount | Statement of Income Location | Unrealized Loss (1) | ||||||||||||||||||||||
Interest rate swap contracts | $ | 129,497 | Interest expense | $ | 6,751 | |||||||||||||||||||
The Effect of Derivative Instruments on the Statements of Income for the | ||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||
Notional Amount | Statement of Income Location | Unrealized Loss (1) | ||||||||||||||||||||||
Interest rate swap contracts | $ | 135,241 | Interest expense | $ | 7,266 | |||||||||||||||||||
(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 | |||||||||||||||||||||||
Years Ended December 31, 2014, 2013 and 2012 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||
Designation | Statement of Income Location | Income (Expense) (1) | ||||||||||||||||||||||
Linked transactions at fair value, 2014 | Non-Hedging | Unrealized gain and net interest income on linked transactions, net | $ | 7,850 | ||||||||||||||||||||
Linked transactions at fair value, 2013 | Non-Hedging | Unrealized (loss) and net interest income on linked transactions, net | $ | (3,841 | ) | |||||||||||||||||||
Linked transactions at fair value, 2012 | Non-Hedging | Unrealized gain and net interest income on linked transactions, net | $ | 728 | ||||||||||||||||||||
Schedule of Linked Transactions | Fair Value of Derivative Instruments | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||
Designation | Balance Sheet Location | Fair Value (1) | ||||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||
Linked transactions at fair value | Non-Hedging | Linked transactions, net at fair value | $ | 15,367 | ||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
Linked transactions at fair value | Non-Hedging | Linked transactions, net at fair value | $ | 30,066 | ||||||||||||||||||||
-1 | Fair value equals the sum of the cost basis, mark to market adjustments, and accrued interest receivable less repurchase agreement debt at fair value and accrued interest expense. | |||||||||||||||||||||||
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 | |||||||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||||
Less than one year | $ | 7,834 | $ | 7,775 | 5.36% | |||||||||||||||||||
Greater than one year and less than five years | 36,587 | 36,274 | 4.65% | |||||||||||||||||||||
Greater than five years and less than ten years | 4,184 | 4,089 | 4.52% | |||||||||||||||||||||
Greater than ten years | — | — | —% | |||||||||||||||||||||
Total | $ | 48,605 | $ | 48,138 | 4.66% | |||||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||
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, underlying linked transactions, which are carried at fair value (in thousands): | ||||||||||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair | |||||||||||||||||||||
Value (1) | ||||||||||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||||
CMBS linked transactions | $ | 48,138 | $ | 539 | $ | (72 | ) | $ | 48,605 | |||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||
CMBS linked transactions | $ | 99,493 | $ | 446 | $ | (6,116 | ) | $ | 93,823 | |||||||||||||||
-1 | Does not include linked CMBS accrued interest receivable totaling $159,000 and $337,000 as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||
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 December 31, 2014: | ||||||||||||||||||||||||
CMBS linked transactions | $ | 7,609 | $ | (57 | ) | $ | 777 | $ | (15 | ) | $ | 8,386 | $ | (72 | ) | |||||||||
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, 2013 | Net Purchases | Upgrades/Downgrades | Paydowns | MTM Change on Same Ratings | December 31, 2014 | |||||||||||||||||||
Moody's Ratings Category: | ||||||||||||||||||||||||
Aaa | $ | 26,682 | $ | (18,704 | ) | $ | — | $ | (498 | ) | $ | (332 | ) | $ | 7,148 | |||||||||
Aa1 through Aa3 | 8,919 | (9,589 | ) | — | — | 670 | — | |||||||||||||||||
A1 through A3 | — | — | — | — | — | — | ||||||||||||||||||
Baa1 through Baa3 | 6,473 | — | — | — | 17 | 6,490 | ||||||||||||||||||
Ba1 through Ba3 | 10,310 | (10,768 | ) | — | — | 458 | — | |||||||||||||||||
B1 through B3 | 12,155 | 8,258 | — | — | 763 | 21,176 | ||||||||||||||||||
Non-Rated | 29,284 | (16,358 | ) | — | — | 865 | 13,791 | |||||||||||||||||
Total | $ | 93,823 | $ | (47,161 | ) | $ | — | $ | (498 | ) | $ | 2,441 | $ | 48,605 | ||||||||||
S&P Ratings Category: | ||||||||||||||||||||||||
AAA | $ | 17,642 | $ | (9,773 | ) | $ | — | $ | (498 | ) | $ | (1,000 | ) | 6,371 | ||||||||||
BBB+ through BBB- | 9,953 | — | 1,034 | — | 123 | 11,110 | ||||||||||||||||||
BB+ through BB- | 2,865 | 102 | 4,422 | — | 254 | 7,643 | ||||||||||||||||||
B+ through B- | 19,619 | 5,065 | (5,456 | ) | — | 708 | 19,936 | |||||||||||||||||
CCC+ through CCC- | 2,769 | — | — | — | 2,769 | |||||||||||||||||||
Non-Rated | 43,744 | (45,324 | ) | — | — | 2,356 | 776 | |||||||||||||||||
Total | $ | 93,823 | $ | (47,161 | ) | $ | — | $ | (498 | ) | $ | 2,441 | $ | 48,605 | ||||||||||
CMBS Linked Repurchase Agreements | The following table summarizes the Company's CMBS linked repurchase agreements (in thousands, except percentages): | |||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
Maturity or Repricing | Balance (1) | Weighted Average Interest Rate | Balance (1) | Weighted Average Interest Rate | ||||||||||||||||||||
Within 30 days | $ | 33,397 | 1.56 | % | $ | 64,094 | 1.25 | % | ||||||||||||||||
>30 days to 90 days | — | — | % | — | — | % | ||||||||||||||||||
Total | $ | 33,397 | 1.56 | % | $ | 64,094 | 1.25 | % | ||||||||||||||||
-1 | Equal to linked CMBS repurchase value plus accrued interest expenses totaling $20,000 and$38,000 as of December 31, 2014 and 2013, respectively. |
OFFSETTING_OF_FINANCIAL_ASSETS1
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Offsetting [Abstract] | |||||||||||||||||||||||||
Offsetting Financial Liabilities and Derivative Liabilities | The following table presents a summary of the Company's offsetting of derivative assets, presented(in thousands): | ||||||||||||||||||||||||
(i) | (ii) | (iii) =i) - (ii) | (iv) | ||||||||||||||||||||||
Gross Amounts of | Gross Amounts Offset in the | Net Amounts of Assets Presented in | Gross Amounts Not Offset in | ||||||||||||||||||||||
Recognized | Consolidated | the Consolidated | the Consolidated Balance Sheet | ||||||||||||||||||||||
Assets | Balance Sheet | Balance Sheet | Financial | Cash | (v) =iii) - (iv) | ||||||||||||||||||||
Instruments | Collateral | Net Amount | |||||||||||||||||||||||
Pledged | |||||||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||
Derivative hedging instruments, | $ | 4,334 | $ | — | $ | 4,334 | $ | — | $ | — | $ | 4,334 | |||||||||||||
at fair value | |||||||||||||||||||||||||
Linked transactions | $ | 48,764 | $ | 33,397 | $ | 15,367 | $ | — | $ | — | $ | 15,367 | |||||||||||||
Total | $ | 53,098 | $ | 33,397 | $ | 19,701 | $ | — | $ | — | $ | 19,701 | |||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Derivative hedging instruments, | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
at fair value | |||||||||||||||||||||||||
Linked transactions | $ | 94,160 | $ | 64,094 | $ | 30,066 | $ | — | $ | — | $ | 30,066 | |||||||||||||
Total | $ | 94,160 | $ | 64,094 | $ | 30,066 | $ | — | $ | — | $ | 30,066 | |||||||||||||
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): | |||||||||||||||||||||||||
(i) | (ii) | (iii) =i) - (ii) | (iv) | (v) =iii) - (iv) | |||||||||||||||||||||
Gross Amounts of | Gross Amounts Offset in the | Net Amounts of Liabilities Presented in | Gross Amounts Not Offset in | Net Amount | |||||||||||||||||||||
Recognized | Consolidated | the Consolidated | the Consolidated Balance Sheets | ||||||||||||||||||||||
Liabilities | Balance Sheets | Balance Sheets | Financial | Cash | |||||||||||||||||||||
Instruments (1) | Collateral | ||||||||||||||||||||||||
Pledged (2) | |||||||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||
Derivative hedging instruments, | $ | 8,466 | $ | — | $ | 8,466 | $ | — | $ | 500 | $ | 7,966 | |||||||||||||
at fair value (3) | |||||||||||||||||||||||||
Repurchase agreements (4) | 399,662 | — | 399,662 | 399,662 | — | — | |||||||||||||||||||
Linked transactions | 33,397 | 33,397 | — | — | — | — | |||||||||||||||||||
Total | $ | 441,525 | $ | 33,397 | $ | 408,128 | $ | 399,662 | $ | 500 | $ | 7,966 | |||||||||||||
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 | — | — | |||||||||||||||||||
Linked transactions | 64,094 | 64,094 | — | — | — | — | |||||||||||||||||||
Total | $ | 166,611 | $ | 64,094 | $ | 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 December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||
-4 | The fair value of securities pledged against the Company's repurchase agreements was $565.6 million and $121.6 million at December 31, 2014 and 2013, respectively. |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Components of Income Taxes | The following table details the components of income taxes (in thousands): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Provision (benefit) for income taxes: | ||||||||||||
Current: | ||||||||||||
Federal | $ | 6,819 | $ | 4,601 | $ | 11,497 | ||||||
State | 2,505 | 1,068 | 776 | |||||||||
Total current | 9,324 | 5,669 | 12,273 | |||||||||
Deferred: | ||||||||||||
Federal | (9,450 | ) | (5,116 | ) | 1,769 | |||||||
State | (2,086 | ) | (1,594 | ) | 560 | |||||||
Total deferred | (11,536 | ) | (6,710 | ) | 2,329 | |||||||
Income tax provision (benefit) | $ | (2,212 | ) | $ | (1,041 | ) | $ | 14,602 | ||||
Reconciliation Between Federal Statutory Income Tax Rate and Effective Income Tax Rate | A reconciliation of the income tax benefit (provision) based upon the statutory tax rate to the effective income tax rate is as follows (in thousands): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Statutory tax | $ | (2,232 | ) | $ | (588 | ) | $ | 9,518 | ||||
State and local taxes, net of federal benefit | (375 | ) | (728 | ) | 225 | |||||||
Permanent adjustments | 41 | 2 | 32 | |||||||||
Subpart F income | — | — | 3,458 | |||||||||
Basis difference in LCC investment | — | — | — | |||||||||
True-up of prior period tax expense | 353 | 253 | — | |||||||||
Other items | 1 | 20 | 1,369 | |||||||||
$ | (2,212 | ) | $ | (1,041 | ) | $ | 14,602 | |||||
Components of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities are as follows (in thousands): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets related to: | ||||||||||||
Investment in securities | $ | 1,030 | $ | 118 | ||||||||
Intangible assets basis difference | 2,533 | 2,725 | ||||||||||
Federal, state and local loss carryforwards | 7,848 | 941 | ||||||||||
Subpart F income | — | 1,359 | ||||||||||
Partnership investment | — | 2 | ||||||||||
Deferred revenue | 207 | 23 | ||||||||||
Accrued expenses | 56 | 44 | ||||||||||
Amortization of intangibles | 766 | — | ||||||||||
Unrealized gains/losses | 1,799 | — | ||||||||||
Mark to market adjustment | 188 | — | ||||||||||
Charitable contribution carryforwards | 6 | — | ||||||||||
Equity compensation | 167 | — | ||||||||||
Gain (loss) on sale of investments | 116 | — | ||||||||||
Partnership investment | (1,622 | ) | — | |||||||||
Total deferred tax assets | 13,094 | 5,212 | ||||||||||
Valuation allowance | — | — | ||||||||||
Total deferred tax assets | $ | 13,094 | $ | 5,212 | ||||||||
Deferred tax liabilities related to: | ||||||||||||
Unrealized loss on investments | $ | (366 | ) | $ | (3,764 | ) | ||||||
Equity investments | — | (153 | ) | |||||||||
Basis difference in LCC investment | — | (195 | ) | |||||||||
Depreciation | (1 | ) | — | |||||||||
Accrued expenses | (3 | ) | — | |||||||||
Partnership investment | (90 | ) | — | |||||||||
Total deferred tax liabilities | $ | (460 | ) | $ | (4,112 | ) | ||||||
Deferred tax assets, net (1) | $ | 12,634 | $ | 1,100 | ||||||||
-1 | Deferred tax asset, net agrees to the Deferred tax assets less Deferred tax liability presented on the Consolidated Balance Sheets as of December 31, 2014. |
QUARTERLY_RESULTS_Tables
QUARTERLY RESULTS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Quarterly Results of Operations | The following is a presentation of the quarterly results of operations: | |||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Year Ended December 31, 2014: | ||||||||||||||||
Interest income | $ | 27,085 | $ | 30,592 | $ | 33,841 | $ | 35,389 | ||||||||
Interest expense (1) | 9,627 | 10,610 | 11,510 | 13,726 | ||||||||||||
Net interest income | $ | 17,458 | $ | 19,982 | $ | 22,331 | $ | 21,663 | ||||||||
Net income allocable to common shares | $ | 15,116 | $ | 14,677 | $ | 7,328 | $ | 6,906 | ||||||||
Net income per share − basic | $ | 0.12 | $ | 0.12 | $ | 0.06 | $ | 0.05 | ||||||||
Net income per share − diluted | $ | 0.12 | $ | 0.11 | $ | 0.06 | $ | 0.05 | ||||||||
Year Ended December 31, 2013: | ||||||||||||||||
Interest income | $ | 33,320 | $ | 30,715 | $ | 28,464 | $ | 25,477 | ||||||||
Interest expense | 11,165 | 11,134 | 11,762 | 26,949 | ||||||||||||
Net interest income | $ | 22,155 | $ | 19,581 | $ | 16,702 | $ | (1,472 | ) | |||||||
Net income | $ | 11,526 | $ | 6,533 | $ | 22,121 | $ | (948 | ) | |||||||
Net income per share − basic | $ | 0.11 | $ | 0.05 | $ | 0.18 | $ | (0.01 | ) | |||||||
Net income per share − diluted | $ | 0.11 | $ | 0.05 | $ | 0.18 | $ | (0.01 | ) | |||||||
-1 | Certain reclassifications have been made to the 2014 consolidated financial statements. |
ORGANIZATION_AND_BASIS_OF_PRES1
ORGANIZATION AND BASIS OF PRESENTATION (Details) | 12 Months Ended | 0 Months Ended |
Dec. 31, 2014 | Feb. 27, 2014 | |
Resource Real Estate Funding CDO 2006-1 [Member] | RCC Real Estate [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 100.00% | |
Resource Real Estate Funding CDO 2007-1 [Member] | RCC Real Estate [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 100.00% | |
RCC CRE Notes 2013 [Member] | RCC Real Estate [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 100.00% | |
Apidos CDO III Ltd. [Member] | RCC Commercial [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 100.00% | |
Apidos Cinco CDO Ltd [Member] | RCC Commercial II [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 100.00% | |
Whitney CLO I, Ltd. [Member] | RCC Commercial II [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 68.30% | |
Moselle CLO [Member] | RCC Commercial II [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 88.60% | |
Apidos CDO I Ltd. [Member] | RCC Commercial III [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 90.00% | |
Apidos CDO I Ltd. [Member] | RSO EquityCo, LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 10.00% | |
Resource Capital Asset Management [Member] | Resource TRS II [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 100.00% | |
Number of CDO issuers | 3 | |
CVC Credit Partners, LLC [Member] | Resource America [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 33.00% | |
Apidos CLO VIII Ltd. [Member] | Resource TRS III [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 33.00% | |
Apidos CLO VIII Ltd. [Member] | RSO EquityCo, LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 10.00% | |
Life Care Funding, LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 50.20% | |
Life Care Funding, LLC [Member] | Long Term Care Conversion Funding [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 50.20% | |
Long Term Care Conversion Funding [Member] | Long Term Care Conversion, Inc [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 100.00% | |
Primary Capital Advisors LLC [Member] | RCC Residential, Inc. [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 100.00% | |
Resource Capital Corp. 2014-CRE2, Ltd. [Member] | RCC Real Estate [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 100.00% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 4 Months Ended | 0 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Feb. 24, 2014 | Mar. 27, 2014 | Jul. 03, 2014 | Nov. 06, 2014 | Nov. 06, 2014 | Dec. 31, 2012 | Dec. 31, 2011 | |||
state | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Cash and cash equivalents | $79,905,000 | [1] | $262,270,000 | [1] | $85,278,000 | $43,116,000 | ||||||
Number of states where the Company originates loans | 35 | |||||||||||
Impairment charges | 0 | 0 | ||||||||||
Building [Member] | Minimum [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful life | 25 years | |||||||||||
Building [Member] | Maximum [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful life | 40 years | |||||||||||
Site Improvements [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful life | Lesser of the remaining life of building or useful lives | |||||||||||
Prime Brokerage Account [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Cash and cash equivalents | 31,800,000 | 22,500,000 | ||||||||||
Money Market Account [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Cash and cash equivalents | 32,600,000 | 156,600,000 | ||||||||||
Checking Accounts [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Cash and cash equivalents | 15,400,000 | 81,100,000 | ||||||||||
Accounts at Investment Properties [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Cash and cash equivalents | 100,000 | 2,100,000 | ||||||||||
Harvest CLO VII Limited [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Ownership percentage in VIE | 9.50% | |||||||||||
Moselle CLO S.A. [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Ownership percentage in VIE | 88.60% | |||||||||||
Harvest CLO VIII Limited [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Ownership percentage in VIE | 12.60% | |||||||||||
Harvest X Investor [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Ownership percentage in VIE | 55.00% | 55.00% | ||||||||||
Harvest CLO X [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Ownership percentage in VIE | 32.10% | |||||||||||
Increase (Decrease) in Net Cash Flows from Operating Activities [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Prior Period Reclassification Adjustment Increase (Decrease) | -18,700,000 | 25,500,000 | ||||||||||
Increase (Decrease) in Net Cash Flows from Investing Activities [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Prior Period Reclassification Adjustment Increase (Decrease) | $18,700,000 | ($25,500,000) | ||||||||||
[1] | DecemberB 31, 2014DecemberB 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $25B $b Restricted cash$121,247B $61,372 Investments securities available-for-sale, pledged as collateral, at fair value119,203B 105,846 Loans held for sale282B 2,376Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,261,137B 1,219,569 Interest receivable8,941B 5,627 Prepaid expenses221B 247 Principal paydown receivable25,767B 6,821 Other assets(12)B b Total assets of consolidated VIEs$1,536,811B $1,401,858 |
VARIABLE_INTEREST_ENTITIES_Det
VARIABLE INTEREST ENTITIES (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 09, 2014 | Sep. 30, 2014 | Feb. 28, 2014 | Feb. 28, 2011 | Sep. 30, 2014 | Oct. 31, 2012 | Nov. 16, 2011 | Feb. 28, 2013 | 31-May-13 | |||
credit | Entity | Entity | ||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||
Number of credits supported in VIE | 2 | |||||||||||||
Investments in unconsolidated entities | $59,827,000 | [1] | $69,069,000 | [1] | ||||||||||
Borrowings | 1,716,871,000 | [2] | 1,319,810,000 | [2] | ||||||||||
Intangible assets | 9,736,000 | [1] | 11,822,000 | [1] | ||||||||||
Fee income | 9,385,000 | 5,821,000 | 7,068,000 | |||||||||||
RCC Residential, Inc. [Member] | ||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||
Acquisition of membership interests | 15,000,000 | |||||||||||||
Payments to Acquire Businesses and Interest in Affiliates | 23,500,000 | |||||||||||||
Ownership percentage (percent) | 63.80% | |||||||||||||
Pelium [Member] | ||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||
Acquisition of membership interests | 17,500,000 | |||||||||||||
Ownership percentage (percent) | 74.10% | 80.40% | 80.40% | |||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 10.00% | |||||||||||||
Ownership Percentage, Duration | 5 years | |||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest Increase | 20.00% | 20.00% | ||||||||||||
Partners' Capital Account, Contributions | 40,000,000 | |||||||||||||
Interest in LCC [Member] | ||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||
Investments in unconsolidated entities | 39,416,000 | 41,016,000 | 36,300,000 | |||||||||||
Moselle CLO [Member] | ||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||
Ownership percentage in VIE | 88.60% | |||||||||||||
Investment in RCAM [Member] | ||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||
Acquisition | 22,500,000 | |||||||||||||
Number of CLOs held by purchased entity | 5 | |||||||||||||
Intangible assets | 9,400,000 | 11,200,000 | ||||||||||||
Fee income | 5,100,000 | 5,300,000 | 7,000,000 | |||||||||||
Whitney CLO I, Ltd. [Member] | ||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||
Ownership interests in variable interest entity | 68.30% | 66.60% | ||||||||||||
VIE, Primary Beneficiary [Member] | ||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||
Number of consolidated VIEs | 11 | |||||||||||||
Variable Interest Entity, Financial or Other Support, Amount | 219,000 | 166,000 | 156,000 | |||||||||||
VIE, Primary Beneficiary [Member] | Moselle CLO [Member] | ||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||
Acquisition of membership interests | 30,400,000 | |||||||||||||
VIE, Primary Beneficiary [Member] | Investment in RCAM [Member] | ||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||
Preferred equity interest acquired | 66.60% | |||||||||||||
VIE, Primary Beneficiary [Member] | Whitney CLO I, Ltd. [Member] | ||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||
Ownership interests in variable interest entity | 68.30% | |||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | LEAF Commercial Capital, Inc. [Member] | ||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||
Preferred stock, coupon authorized (in hundredths) | 8.00% | |||||||||||||
Ownership percentage in VIE | 26.70% | |||||||||||||
Investments in unconsolidated entities | 39,400,000 | 41,000,000 | ||||||||||||
Variable interest entity, number of board positions held by the company | 2 | |||||||||||||
Variable interest entity, total number of board positions | 6 | |||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | LEAF Commercial Capital, Inc. [Member] | Preferred Shares - Series A [Member] | ||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||
Acquisition of membership interests | 3,700,000 | |||||||||||||
Shares received in equity method transaction (in shares) | 31,341 | |||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | LEAF Commercial Capital, Inc. [Member] | Preferred Shares - Series B [Member] | ||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||
Shares received in equity method transaction (in shares) | 4,872 | |||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | LEAF Commercial Capital, Inc. [Member] | Series D Preferred Stock [Member] | ||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||
Shares received in equity method transaction (in shares) | 2,364 | |||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | LEAF Commercial Capital, Inc. [Member] | Series A1 Preferred Stock [Member] | ||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||
Shares received in equity method transaction (in shares) | 3,682 | |||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | LEAF Commercial Capital, Inc. [Member] | Series E Preferred Stock [Member] | ||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||
Acquisition of membership interests | 4,400,000 | |||||||||||||
Shares received in equity method transaction (in shares) | 4,445 | |||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | LEAF Commercial Capital, Inc. [Member] | Interest in LCC [Member] | ||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||
Ownership percentage (percent) | 28.40% | 28.40% | ||||||||||||
Ownership percentage in VIE | 28.40% | |||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | Interest in RCT I and RCT II [Member] | ||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||
Ownership percentage in VIE | 100.00% | |||||||||||||
Investments in unconsolidated entities | 1,500,000 | |||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | Interest in RCT I [Member] | ||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||
Percentage of total value of trusts owned | 3.00% | |||||||||||||
Borrowings | 25,800,000 | |||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | Interest in RCT II [Member] | ||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||
Percentage of total value of trusts owned | 3.00% | |||||||||||||
Borrowings | $25,800,000 | |||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | Investment in RCAM [Member] | ||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||
Number of CLOs held by purchased entity | 4 | |||||||||||||
Number of CLOs liquidated | 1 | |||||||||||||
Class 1 Subordinated Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | ||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||
Percentage of outstanding notes purchased | 100.00% | |||||||||||||
Class 2 Subordinated Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | ||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||
Percentage of outstanding notes purchased | 67.90% | |||||||||||||
[1] | DecemberB 31, 2014DecemberB 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $25B $b Restricted cash$121,247B $61,372 Investments securities available-for-sale, pledged as collateral, at fair value119,203B 105,846 Loans held for sale282B 2,376Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,261,137B 1,219,569 Interest receivable8,941B 5,627 Prepaid expenses221B 247 Principal paydown receivable25,767B 6,821 Other assets(12)B b Total assets of consolidated VIEs$1,536,811B $1,401,858 | |||||||||||||
[2] | DecemberB 31, 2014B DecemberB 31, 2013Liabilities of consolidated VIEs included in the total liabilities above: Borrowings$1,046,494B $1,070,339 Accrued interest expense1,000B 918 Derivatives, at fair value8,439B 10,191 Unsettled loan purchases(529)B b Accounts payable and other liabilities(386)B 1,604 Total liabilities of consolidated VIEs$1,055,018B $1,083,052 |
VARIABLE_INTEREST_ENTITIES_Sch
VARIABLE INTEREST ENTITIES (Schedule of Carrying Value of Assets and Liabilities of Consolidated VIEs) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $25,000 | [1] | $0 | [1] |
ASSETS | ||||
Restricted cash | 121,247,000 | 61,372,000 | ||
Investment securities available-for-sale, pledged as collateral, at fair value | 119,203,000 | 105,846,000 | ||
Loans, pledged as collateral | 1,261,137,000 | 1,219,569,000 | ||
Loans held for sale | 282,000 | 2,376,000 | ||
Interest receivable | 8,941,000 | 5,627,000 | ||
Prepaid assets | 221,000 | 247,000 | ||
Principal paydown receivable | 25,767,000 | 6,821,000 | ||
Other assets | -12,000 | 0 | ||
Total assets of consolidated VIEs | 1,536,811,000 | 1,401,858,000 | ||
LIABILITIES | ||||
Borrowings | 1,046,494,000 | 1,070,339,000 | ||
Accrued interest expense | 1,000,000 | 918,000 | ||
Derivatives, at fair value | 8,439,000 | 10,191,000 | ||
Unsettled loan purchases | -529,000 | 0 | ||
Accounts payable and other liabilities | -386,000 | 1,604,000 | ||
Total liabilities of consolidated VIEs | 1,055,018,000 | 1,083,052,000 | ||
VIE, Primary Beneficiary [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 25,000 | [1] | ||
ASSETS | ||||
Restricted cash | 121,247,000 | [1] | ||
Investment securities available-for-sale, pledged as collateral, at fair value | 119,203,000 | |||
Loans, pledged as collateral | 1,261,137,000 | |||
Loans held for sale | 282,000 | |||
Interest receivable | 8,941,000 | |||
Prepaid assets | 221,000 | |||
Principal paydown receivable | 25,767,000 | |||
Other assets | -12,000 | |||
Total assets of consolidated VIEs | 1,536,811,000 | [2] | ||
LIABILITIES | ||||
Borrowings | 1,046,494,000 | |||
Accrued interest expense | 1,000,000 | |||
Derivatives, at fair value | 8,439,000 | |||
Unsettled loan purchases | -529,000 | |||
Accounts payable and other liabilities | -386,000 | |||
Total liabilities of consolidated VIEs | 1,055,018,000 | |||
Restricted cash available for reinvestment in certain of the CDOs | 3,000,000 | |||
VIE, Primary Beneficiary [Member] | Apidos CDO I Ltd. [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 0 | [1] | ||
ASSETS | ||||
Restricted cash | 416,000 | [1] | ||
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | |||
Loans, pledged as collateral | 153,000 | |||
Loans held for sale | 0 | |||
Interest receivable | 0 | |||
Prepaid assets | 2,000 | |||
Principal paydown receivable | 0 | |||
Other assets | 0 | |||
Total assets of consolidated VIEs | 571,000 | [2] | ||
LIABILITIES | ||||
Borrowings | 0 | |||
Accrued interest expense | 0 | |||
Derivatives, at fair value | 0 | |||
Unsettled loan purchases | 0 | |||
Accounts payable and other liabilities | 8,000 | |||
Total liabilities of consolidated VIEs | 8,000 | |||
VIE, Primary Beneficiary [Member] | Apidos CDO III Ltd. [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 0 | [1] | ||
ASSETS | ||||
Restricted cash | 3,104,000 | [1] | ||
Investment securities available-for-sale, pledged as collateral, at fair value | 3,057,000 | |||
Loans, pledged as collateral | 80,761,000 | |||
Loans held for sale | 0 | |||
Interest receivable | 327,000 | |||
Prepaid assets | 21,000 | |||
Principal paydown receivable | 0 | |||
Other assets | 0 | |||
Total assets of consolidated VIEs | 87,270,000 | [2] | ||
LIABILITIES | ||||
Borrowings | 74,646,000 | |||
Accrued interest expense | 46,000 | |||
Derivatives, at fair value | 0 | |||
Unsettled loan purchases | 0 | |||
Accounts payable and other liabilities | 40,000 | |||
Total liabilities of consolidated VIEs | 74,732,000 | |||
VIE, Primary Beneficiary [Member] | Apidos Cinco CDO Ltd [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 0 | [1] | ||
ASSETS | ||||
Restricted cash | 20,142,000 | [1] | ||
Investment securities available-for-sale, pledged as collateral, at fair value | 11,115,000 | |||
Loans, pledged as collateral | 249,164,000 | |||
Loans held for sale | 282,000 | |||
Interest receivable | 858,000 | |||
Prepaid assets | 19,000 | |||
Principal paydown receivable | 0 | |||
Other assets | 0 | |||
Total assets of consolidated VIEs | 281,580,000 | [2] | ||
LIABILITIES | ||||
Borrowings | 255,463,000 | |||
Accrued interest expense | 270,000 | |||
Derivatives, at fair value | 0 | |||
Unsettled loan purchases | 0 | |||
Accounts payable and other liabilities | 17,000 | |||
Total liabilities of consolidated VIEs | 255,750,000 | |||
VIE, Primary Beneficiary [Member] | Apidos CLO VIII Ltd. [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 0 | [1] | ||
ASSETS | ||||
Restricted cash | 5,000 | [1] | ||
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | |||
Loans, pledged as collateral | 0 | |||
Loans held for sale | 0 | |||
Interest receivable | 0 | |||
Prepaid assets | 0 | |||
Principal paydown receivable | 0 | |||
Other assets | 0 | |||
Total assets of consolidated VIEs | 5,000 | [2] | ||
LIABILITIES | ||||
Borrowings | 0 | |||
Accrued interest expense | 0 | |||
Derivatives, at fair value | 0 | |||
Unsettled loan purchases | 0 | |||
Accounts payable and other liabilities | 0 | |||
Total liabilities of consolidated VIEs | 0 | |||
VIE, Primary Beneficiary [Member] | Whitney CLO I, Ltd. [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 0 | [1] | ||
ASSETS | ||||
Restricted cash | 116,000 | [1] | ||
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | |||
Loans, pledged as collateral | 0 | |||
Loans held for sale | 0 | |||
Interest receivable | 0 | |||
Prepaid assets | 0 | |||
Principal paydown receivable | 0 | |||
Other assets | 0 | |||
Total assets of consolidated VIEs | 116,000 | [2] | ||
LIABILITIES | ||||
Borrowings | 0 | |||
Accrued interest expense | 0 | |||
Derivatives, at fair value | 0 | |||
Unsettled loan purchases | 0 | |||
Accounts payable and other liabilities | 0 | |||
Total liabilities of consolidated VIEs | 0 | |||
VIE, Primary Beneficiary [Member] | RCC CRE Notes 2013 [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 0 | [1] | ||
ASSETS | ||||
Restricted cash | 2,713,000 | [1] | ||
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | |||
Loans, pledged as collateral | 248,662,000 | |||
Loans held for sale | 0 | |||
Interest receivable | 1,279,000 | |||
Prepaid assets | 37,000 | |||
Principal paydown receivable | 20,500,000 | |||
Other assets | 0 | |||
Total assets of consolidated VIEs | 273,191,000 | [2] | ||
LIABILITIES | ||||
Borrowings | 224,157,000 | |||
Accrued interest expense | 186,000 | |||
Derivatives, at fair value | 0 | |||
Unsettled loan purchases | 0 | |||
Accounts payable and other liabilities | 0 | |||
Total liabilities of consolidated VIEs | 224,343,000 | |||
VIE, Primary Beneficiary [Member] | RCC CRE Notes 2014 [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 0 | [1] | ||
ASSETS | ||||
Restricted cash | 0 | [1] | ||
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | |||
Loans, pledged as collateral | 347,792,000 | |||
Loans held for sale | 0 | |||
Interest receivable | 1,396,000 | |||
Prepaid assets | 0 | |||
Principal paydown receivable | 2,207,000 | |||
Other assets | -12,000 | |||
Total assets of consolidated VIEs | 351,383,000 | [2] | ||
LIABILITIES | ||||
Borrowings | 231,657,000 | |||
Accrued interest expense | 133,000 | |||
Derivatives, at fair value | 0 | |||
Unsettled loan purchases | 0 | |||
Accounts payable and other liabilities | 0 | |||
Total liabilities of consolidated VIEs | 231,790,000 | |||
VIE, Primary Beneficiary [Member] | Moselle CLO [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 0 | [1] | ||
ASSETS | ||||
Restricted cash | 94,481,000 | [1] | ||
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | |||
Loans, pledged as collateral | 0 | |||
Loans held for sale | 0 | |||
Interest receivable | 0 | |||
Prepaid assets | 0 | |||
Principal paydown receivable | 3,060,000 | |||
Other assets | 0 | |||
Total assets of consolidated VIEs | 97,541,000 | [2] | ||
LIABILITIES | ||||
Borrowings | 68,940,000 | |||
Accrued interest expense | 232,000 | |||
Derivatives, at fair value | 0 | |||
Unsettled loan purchases | 0 | |||
Accounts payable and other liabilities | -453,000 | |||
Total liabilities of consolidated VIEs | 68,719,000 | |||
VIE, Primary Beneficiary [Member] | RCM Global Manager, LLC [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 25,000 | [1] | ||
ASSETS | ||||
Restricted cash | 0 | [1] | ||
Investment securities available-for-sale, pledged as collateral, at fair value | 28,899,000 | |||
Loans, pledged as collateral | 0 | |||
Loans held for sale | 0 | |||
Interest receivable | 809,000 | |||
Prepaid assets | 0 | |||
Principal paydown receivable | 0 | |||
Other assets | 0 | |||
Total assets of consolidated VIEs | 29,733,000 | [2] | ||
LIABILITIES | ||||
Borrowings | 0 | |||
Accrued interest expense | 0 | |||
Derivatives, at fair value | 0 | |||
Unsettled loan purchases | -529,000 | |||
Accounts payable and other liabilities | 2,000 | |||
Total liabilities of consolidated VIEs | -527,000 | |||
VIE, Primary Beneficiary [Member] | Resource Real Estate Funding CDO 2006-1 [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 0 | [1] | ||
ASSETS | ||||
Restricted cash | 20,000 | [1] | ||
Investment securities available-for-sale, pledged as collateral, at fair value | 11,274,000 | |||
Loans, pledged as collateral | 128,398,000 | |||
Loans held for sale | 0 | |||
Interest receivable | 2,293,000 | |||
Prepaid assets | 78,000 | |||
Principal paydown receivable | 0 | |||
Other assets | 0 | |||
Total assets of consolidated VIEs | 142,063,000 | [2] | ||
LIABILITIES | ||||
Borrowings | 61,424,000 | |||
Accrued interest expense | 36,000 | |||
Derivatives, at fair value | 864,000 | |||
Unsettled loan purchases | 0 | |||
Accounts payable and other liabilities | -1,000 | |||
Total liabilities of consolidated VIEs | 62,323,000 | |||
VIE, Primary Beneficiary [Member] | Resource Real Estate Funding CDO 2007-1 [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 0 | [1] | ||
ASSETS | ||||
Restricted cash | 250,000 | [1] | ||
Investment securities available-for-sale, pledged as collateral, at fair value | 64,858,000 | |||
Loans, pledged as collateral | 206,207,000 | |||
Loans held for sale | 0 | |||
Interest receivable | 1,979,000 | |||
Prepaid assets | 64,000 | |||
Principal paydown receivable | 0 | |||
Other assets | 0 | |||
Total assets of consolidated VIEs | 273,358,000 | [2] | ||
LIABILITIES | ||||
Borrowings | 130,207,000 | |||
Accrued interest expense | 97,000 | |||
Derivatives, at fair value | 7,575,000 | |||
Unsettled loan purchases | 0 | |||
Accounts payable and other liabilities | 1,000 | |||
Total liabilities of consolidated VIEs | $137,880,000 | |||
[1] | Includes $3.0 million available for reinvestment in certain of the securitizations. | |||
[2] | Assets of each of the consolidated VIEs may only be used to settle the obligations of each respective VIE. |
VARIABLE_INTEREST_ENTITIES_Sch1
VARIABLE INTEREST ENTITIES (Schedule of Classification, Carrying Value, and Maximum Exposure to Loss of Unconsolidated VIEs) (Details) (Variable Interest Entity, Not Primary Beneficiary [Member], USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Variable Interest Entity [Line Items] | |
Investment in unconsolidated entities | $40,965 |
Intangible assets | 9,434 |
Total assets | 50,399 |
Borrowings | 51,205 |
Total liabilities | 51,205 |
Net asset (liability) | -806 |
Investments in Unconsolidated Entities [Member] | |
Variable Interest Entity [Line Items] | |
Unconsolidated Variable Interest Entities, Maximum Exposure to Loss | 40,965 |
Intangible Assets [Member] | |
Variable Interest Entity [Line Items] | |
Unconsolidated Variable Interest Entities, Maximum Exposure to Loss | 9,434 |
LEAF Commercial Capital, Inc. [Member] | |
Variable Interest Entity [Line Items] | |
Investment in unconsolidated entities | 39,417 |
Intangible assets | 0 |
Total assets | 39,417 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | 39,417 |
Unsecured Junior Subordinated Debentures [Member] | |
Variable Interest Entity [Line Items] | |
Investment in unconsolidated entities | 1,548 |
Intangible assets | 0 |
Total assets | 1,548 |
Borrowings | 51,205 |
Total liabilities | 51,205 |
Net asset (liability) | -49,657 |
Resource Capital Asset Management [Member] | |
Variable Interest Entity [Line Items] | |
Investment in unconsolidated entities | 0 |
Intangible assets | 9,434 |
Total assets | 9,434 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | $9,434 |
SUPPLEMENTAL_CASH_FLOW_INFORMA2
SUPPLEMENTAL CASH FLOW INFORMATION (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Non-cash investing activities include the following: | |||
Contribution of lease receivables and other assets | $2,385 | $0 | $0 |
Acquisition of real estate investments | 0 | 0 | -21,661 |
Conversion of loans to investment in real estate | 0 | 0 | 21,661 |
Acquisition of loans, pledged as collateral | 0 | 0 | -230,152 |
Non-cash financing activities include the following: | |||
Issuance of restricted stock | 890 | 823 | 2,189 |
Contribution of security deposits and other liabilities | 457 | 0 | 0 |
Subscription receivable | 0 | 0 | 1,248 |
Assumption of collateralized debt obligations | 0 | 0 | 206,408 |
Common Stock [Member] | |||
Non-cash financing activities include the following: | |||
Distributions on common and preferred stock declared but not paid | 26,563 | 25,536 | 21,024 |
Preferred Stock [Member] | |||
Non-cash financing activities include the following: | |||
Distributions on common and preferred stock declared but not paid | $6,044 | $2,159 | $1,244 |
RESTRICTED_CASH_Details
RESTRICTED CASH (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | $122,138 | [1] | $63,309 | [1] |
Consolidated securitizations | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 121,247 | 61,372 | ||
Restricted account at investment properties | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 0 | 848 | ||
Restricted cash pledged with minimum reserve balance requirements | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 209 | 318 | ||
Cash collateralizing outstanding margin calls on cash flow hedges | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 500 | 500 | ||
Cash collateralizing outstanding margin calls on borrowings | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 0 | 271 | ||
Cash collateralizing margin posted on forward/short positions [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | $182 | $0 | ||
[1] | DecemberB 31, 2014DecemberB 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $25B $b Restricted cash$121,247B $61,372 Investments securities available-for-sale, pledged as collateral, at fair value119,203B 105,846 Loans held for sale282B 2,376Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,261,137B 1,219,569 Interest receivable8,941B 5,627 Prepaid expenses221B 247 Principal paydown receivable25,767B 6,821 Other assets(12)B b Total assets of consolidated VIEs$1,536,811B $1,401,858 |
INVESTMENT_SECURITIES_TRADING_1
INVESTMENT SECURITIES, TRADING (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Security | Security | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Securities purchased | 38 | |
Securities sold | 9 | |
Net realized gain (loss) | $3 | |
Number of trading securities held | 37 | 8 |
INVESTMENT_SECURITIES_TRADING_2
INVESTMENT SECURITIES, TRADING (Schedule of Investment Trading Securities at Fair Value) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Amortized Cost | $24,772 | $9,976 | ||
Unrealized Gains | 1,098 | 4,050 | ||
Unrealized Losses | -5,084 | -2,468 | ||
Fair Value | 20,786 | [1] | 11,558 | [1] |
Structured Notes [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Amortized Cost | 22,876 | 8,057 | ||
Unrealized Gains | 1,098 | 4,050 | ||
Unrealized Losses | -3,188 | -1,000 | ||
Fair Value | 20,786 | 11,107 | ||
RMBS [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Amortized Cost | 1,896 | 1,919 | ||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | -1,896 | -1,468 | ||
Fair Value | $0 | $451 | ||
[1] | DecemberB 31, 2014DecemberB 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $25B $b Restricted cash$121,247B $61,372 Investments securities available-for-sale, pledged as collateral, at fair value119,203B 105,846 Loans held for sale282B 2,376Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,261,137B 1,219,569 Interest receivable8,941B 5,627 Prepaid expenses221B 247 Principal paydown receivable25,767B 6,821 Other assets(12)B b Total assets of consolidated VIEs$1,536,811B $1,401,858 |
INVESTMENT_SECURITIES_AVAILABL2
INVESTMENT SECURITIES AVAILABLE-FOR-SALE - Textuals(Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Other-than-temporary impairment losses | $0 | $855,000 | $180,000 |
CMBS [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Other-than-temporary impairment losses | 0 | 328,000 | 42,000 |
Corporate bonds [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-Sale Securities, Redeemed During Period, Number | 2 | 3 | |
Available-for-Sale Securities, Redeemed During Period, Par Value | 1,600,000 | 4,300,000 | |
Available-for-sale Securities, Gross Realized Losses on Redemption | 48,000 | -11,000 | |
Asset-backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-Sale Securities, Redeemed During Period, Number | 1 | 0 | |
Available-for-Sale Securities, Redeemed During Period, Par Value | 2,500,000 | ||
Available-for-sale Securities, Gross Realized Losses on Redemption | 25,500 | ||
Available-for-Sale Securities, Liquidated During Period, Number | 1 | ||
Available-for-Sale Securities, Liquidated During Period, Par Value | 3,000,000 | ||
Available-for-sale Securities, Gross Realized Losses on Liquidation | $570,000 |
INVESTMENT_SECURITIES_AVAILABL3
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Schedule of Available-for-Sale Securities, Fair Value) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | $256,515 | [1] | $218,470 | [1] |
Unrealized Gains | 22,761 | 9,230 | ||
Unrealized Losses | -3,556 | -12,494 | ||
Fair Value | 275,720 | 215,206 | ||
Investment securities available-for-sale, pledged as collateral, at fair value | 197,800 | [2] | 162,608 | [2] |
CMBS [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 168,669 | [1] | 185,178 | [1] |
Unrealized Gains | 4,938 | 7,570 | ||
Unrealized Losses | -3,202 | -12,030 | ||
Fair Value | 170,405 | 180,718 | ||
RMBS [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 29,814 | [1] | ||
Unrealized Gains | 937 | |||
Unrealized Losses | 0 | |||
Fair Value | 30,751 | |||
ABS [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 55,617 | [1] | 30,775 | [1] |
Unrealized Gains | 16,876 | 1,644 | ||
Unrealized Losses | -336 | -394 | ||
Fair Value | 72,157 | 32,025 | ||
Corporate bonds [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 2,415 | [1] | 2,517 | [1] |
Unrealized Gains | 10 | 16 | ||
Unrealized Losses | -18 | -70 | ||
Fair Value | $2,407 | $2,463 | ||
[1] | As of DecemberB 31, 2014 and 2013, $197.8 million and $162.6 million, respectively, of securities were pledged as collateral security under related financings. | |||
[2] | DecemberB 31, 2014DecemberB 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $25B $b Restricted cash$121,247B $61,372 Investments securities available-for-sale, pledged as collateral, at fair value119,203B 105,846 Loans held for sale282B 2,376Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,261,137B 1,219,569 Interest receivable8,941B 5,627 Prepaid expenses221B 247 Principal paydown receivable25,767B 6,821 Other assets(12)B b Total assets of consolidated VIEs$1,536,811B $1,401,858 |
INVESTMENT_SECURITIES_AVAILABL4
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Estimated Maturities of Available-For-Sale Securities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value | ||||
Less than one year | $78,095 | [1] | $39,256 | [1] |
Greater than one year and less than five years | 115,302 | 139,700 | ||
Greater than five years and less than ten years | 20,177 | 26,526 | ||
Greater than ten years | 62,146 | 9,724 | ||
Total | 275,720 | 215,206 | ||
Amortized Cost | ||||
Less than one year | 79,649 | 40,931 | ||
Greater than one year and less than five years | 100,909 | 141,760 | ||
Greater than five years and less than ten years | 17,516 | 25,707 | ||
Greater than ten years | 58,441 | 10,072 | ||
Total | $256,515 | $218,470 | ||
Weighted Average Coupon | ||||
Less than one year | 4.13% | 5.25% | ||
Greater than one year and less than five years | 4.64% | 4.69% | ||
Greater than five years and less than ten years | 16.45% | 1.10% | ||
Greater than ten years | 7.86% | 7.90% | ||
Total | 6.08% | 4.49% | ||
[1] | The Company expects that the maturity date of these CMBS will either be extended or the CMBS will be paid in full. |
INVESTMENT_SECURITIES_AVAILABL5
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Gross Unrealized Loss and Fair Value of Securities) (Details) (USD $) | Dec. 31, 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 | $38,307 | $53,020 |
Unrealized Losses, less than 12 months | -851 | -7,567 |
Number of Securities, less than 12 months | 31 | 36 |
Fair value, more than 12 months | 26,541 | 20,851 |
Unrealized losses, more than 12 Months | -2,705 | -4,927 |
Number of Securities, more than 12 Months | 16 | 19 |
Fair value, total | 64,848 | 73,871 |
Unrealized losses, total | -3,556 | -12,494 |
Number of Securities, total | 47 | 55 |
CMBS [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, less than 12 months | 35,860 | 52,012 |
Unrealized Losses, less than 12 months | -555 | -7,496 |
Number of Securities, less than 12 months | 22 | 34 |
Fair value, more than 12 months | 25,583 | 14,159 |
Unrealized losses, more than 12 Months | -2,647 | -4,534 |
Number of Securities, more than 12 Months | 13 | 10 |
Fair value, total | 61,443 | 66,171 |
Unrealized losses, total | -3,202 | -12,030 |
Number of Securities, total | 35 | 44 |
ABS [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, less than 12 months | 1,000 | 143 |
Unrealized Losses, less than 12 months | -278 | -1 |
Number of Securities, less than 12 months | 8 | 1 |
Fair value, more than 12 months | 958 | 6,692 |
Unrealized losses, more than 12 Months | -58 | -393 |
Number of Securities, more than 12 Months | 3 | 9 |
Fair value, total | 1,958 | 6,835 |
Unrealized losses, total | -336 | -394 |
Number of Securities, total | 11 | 10 |
Corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, less than 12 months | 1,447 | 865 |
Unrealized Losses, less than 12 months | -18 | -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 | 1,447 | 865 |
Unrealized losses, total | ($18) | ($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 $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Security | Security | |
CMBS [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Positions Sold | 5 | 4 |
Par Amount Sold | $27,370 | $14,500 |
Realized Gain (Loss) | 573 | 466 |
Corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Positions Sold | 8 | 35 |
Par Amount Sold | 11,574 | 34,253 |
Realized Gain (Loss) | $2,922 | ($474) |
INVESTMENTS_IN_REAL_ESTATE_Det
INVESTMENTS IN REAL ESTATE (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property | Property | ||
Real Estate Line Items [Line Items] | |||
Number of real estate properties sold | 3 | 1 | |
Gain on sale of real estate | $6,127 | $16,616 | $0 |
INVESTMENTS_IN_REAL_ESTATE_Inv
INVESTMENTS IN REAL ESTATE (Investments in Real Estate) (Details) (USD $) | Dec. 31, 2014 |
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 [Member] | |
Book Value | $10,273 |
Number of Properties | 1 |
LOANS_HELD_FOR_INVESTMENT_Text
LOANS HELD FOR INVESTMENT (Textuals) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
Receivables with Imputed Interest [Line Items] | ||||
Loans held for sale, net | 111,736,000 | [1] | 21,916,000 | [1] |
Allowance for loan loss | 4,613,000 | 13,807,000 | ||
Loans, allowances | 4,600,000 | 13,800,000 | ||
Georgia [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Loans Held for Investment, Percentage of Loans Originated | 56.00% | 66.00% | ||
UTAH | ||||
Receivables with Imputed Interest [Line Items] | ||||
Loans Held for Investment, Percentage of Loans Originated | 8.00% | |||
North Carolina [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Loans Held for Investment, Percentage of Loans Originated | 9.00% | |||
Tennessee [Member} | ||||
Receivables with Imputed Interest [Line Items] | ||||
Loans Held for Investment, Percentage of Loans Originated | 4.00% | 7.00% | ||
Virginia [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Loans Held for Investment, Percentage of Loans Originated | 7.00% | 6.00% | ||
Alabama [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Loans Held for Investment, Percentage of Loans Originated | 5.00% | 6.00% | ||
Middle-market Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Loans held for sale, net | 250,100,000 | 44,300,000 | ||
Bank and Middle Market Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Loans held for sale, net | 330,400,000 | 514,400,000 | ||
Allowance for loan loss | 3,400,000 | |||
Bank Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Allowance for loan loss | 570,000 | 3,391,000 | ||
Whole Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Allowance for loan loss | 3,758,000 | 9,683,000 | ||
Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Loans, allowances | 4,000,000 | 10,400,000 | ||
Principle Receivable | 40,900,000 | |||
Commercial Real Estate Loans [Member] | California [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Concentration of loan portfolio risk (in hundredths) | 27.40% | 39.00% | ||
Commercial Real Estate Loans [Member] | Arizona [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Concentration of loan portfolio risk (in hundredths) | 7.30% | 6.40% | ||
Commercial Real Estate Loans [Member] | Texas [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Concentration of loan portfolio risk (in hundredths) | 27.30% | 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) | 17.50% | 15.80% | ||
Bank Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Allowance for loan loss | 570,000 | |||
Loans, allowances | 570,000 | 3,400,000 | ||
Bank Loans [Member] | Minimum [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Basis spread on variable rate | 1.25% | 1.50% | ||
Bank Loans [Member] | Maximum [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Basis spread on variable rate | 8.75% | 10.50% | ||
Middle-market Loans [Member] | Minimum [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Basis spread on variable rate | 5.50% | 3.75% | ||
Middle-market Loans [Member] | Maximum [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Basis spread on variable rate | 9.25% | 10.50% | ||
Middle-market Loans [Member] | Industry Grouping of Persona, Food and Miscellaneous Service [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Concentration of loan portfolio risk (in hundredths) | 13.70% | |||
Middle-market Loans [Member] | Hotels, Motels, Inns, and Gaming [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Concentration of loan portfolio risk (in hundredths) | 23.10% | |||
[1] | DecemberB 31, 2014DecemberB 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $25B $b Restricted cash$121,247B $61,372 Investments securities available-for-sale, pledged as collateral, at fair value119,203B 105,846 Loans held for sale282B 2,376Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,261,137B 1,219,569 Interest receivable8,941B 5,627 Prepaid expenses221B 247 Principal paydown receivable25,767B 6,821 Other assets(12)B b Total assets of consolidated VIEs$1,536,811B $1,401,858 |
LOANS_HELD_FOR_INVESTMENT_Summ
LOANS HELD FOR INVESTMENT (Summary of Loans) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Receivables with Imputed Interest [Line Items] | |||
Principal, Gross | $1,940,406,000 | $1,390,844,000 | |
Unamortized (discount) premium, gross | -9,813,000 | -7,511,000 | |
Gross carrying value of loans held for investment | 1,930,593,000 | 1,383,333,000 | |
Allowance for loan loss | -4,613,000 | -13,807,000 | -17,691,000 |
Unamortized (discount) premium, gross, allowance for loan loss | 0 | 0 | |
Carrying value, allowance for loan loss | -4,613,000 | -13,807,000 | |
Principal, Net | 1,935,793,000 | 1,377,037,000 | |
Unamortized (discount) premium, net | -9,813,000 | -7,511,000 | |
Net carrying value of loans held for investment | 1,925,980,000 | 1,369,526,000 | |
Loans Receivable Held-for-sale, Amount | 111,736,000 | 21,916,000 | |
Financing Receivable, Net and Loans Receivable Held-for-sale | 2,047,529,000 | 1,398,953,000 | |
Net Carrying Value of Loans Held for Investment and Loans Held for Sale | 2,037,716,000 | 1,391,442,000 | |
Deferred amendment fees | 88,000 | 216,000 | |
Bank Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Principal, Gross | 332,058,000 | 519,343,000 | |
Unamortized (discount) premium, gross | -1,410,000 | -3,950,000 | |
Gross carrying value of loans held for investment | 330,648,000 | 515,393,000 | |
Loans Receivable Held-for-sale, Amount | 282,000 | 2,377,000 | |
Deferred upfront fee | 82,000 | 141,000 | |
Residential mortgage loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Principal, Gross | 2,802,000 | 1,849,000 | |
Unamortized (discount) premium, gross | 0 | 0 | |
Gross carrying value of loans held for investment | 2,802,000 | 1,849,000 | |
Loans Receivable Held-for-sale, Amount | 111,454,000 | 15,066,000 | |
Middle-market Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Principal, Gross | 250,859,000 | 39,864,000 | |
Unamortized (discount) premium, gross | -746,000 | -84,000 | |
Gross carrying value of loans held for investment | 250,113,000 | 39,780,000 | |
Loans Receivable Held-for-sale, Amount | 4,473,000 | ||
Commercial Real Estate Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Principal, Gross | 1,354,687,000 | 829,788,000 | |
Unamortized (discount) premium, gross | -7,657,000 | -3,477,000 | |
Gross carrying value of loans held for investment | 1,347,030,000 | 826,311,000 | |
Loan origination fees | 7,600,000 | 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 | 1,271,121,000 | 749,083,000 | |
Unamortized (discount) premium, gross | -7,529,000 | -3,294,000 | |
Gross carrying value of loans held for investment | 1,263,592,000 | 745,789,000 | |
Commercial Real Estate Loans [Member] | B Notes [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Principal, Gross | 16,120,000 | 16,288,000 | |
Unamortized (discount) premium, gross | -48,000 | -83,000 | |
Gross carrying value of loans held for investment | 16,072,000 | 16,205,000 | |
Commercial Real Estate Loans [Member] | Mezzanine Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Principal, Gross | 67,446,000 | 64,417,000 | |
Unamortized (discount) premium, gross | -80,000 | -100,000 | |
Gross carrying value of loans held for investment | 67,366,000 | 64,317,000 | |
Residential Mortgage Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Loans Receivable Held-for-sale, Amount | 28,900,000 | 15,100,000 | |
Jumbo Mortgage Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Loans Receivable Held-for-sale, Amount | $82,600,000 | $0 |
LOANS_HELD_FOR_INVESTMENT_Weig
LOANS HELD FOR INVESTMENT (Weighted Average Life of Bank Loans, at Amortized Cost) (Details) (Bank Loans [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Bank Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Less than one year | $7,829 | $36,985 |
Greater than one year and less than five years | 274,332 | 366,848 |
Five years or greater | 48,769 | 113,937 |
Total | $330,930 | $517,770 |
LOANS_HELD_FOR_INVESTMENT_Comm
LOANS HELD FOR INVESTMENT (Commercial Real Estate Loans Held for Investment) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
Receivables with Imputed Interest [Line Items] | ||||
Allowance for loan loss | 4,613,000 | 13,807,000 | ||
Loans held for sale, net | 111,736,000 | [1] | 21,916,000 | [1] |
Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Quantity of loans | 78 | 56 | ||
Amortized Cost | 1,347,030,000 | 826,311,000 | ||
Bank Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Allowance for loan loss | 570,000 | |||
Minimum [Member] | Bank Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Basis spread on variable rate | 1.25% | 1.50% | ||
Minimum [Member] | Middle-market Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Basis spread on variable rate | 5.50% | 3.75% | ||
Maximum [Member] | Bank Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Basis spread on variable rate | 8.75% | 10.50% | ||
Maximum [Member] | Middle-market Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Basis spread on variable rate | 9.25% | 10.50% | ||
Whole Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Allowance for loan loss | 3,758,000 | 9,683,000 | ||
Whole Loans [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Amortized Cost | 1,263,592,000 | 745,789,000 | ||
Fixed contractual interest in floating rate whole loan, Rate Two | 15.00% | |||
Fixed contractual interest in floating rate whole loan | 12.00% | |||
Whole Loans, Floating Rate [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Loans held for investment, unfunded loan commitments | 105,100,000 | 13,700,000 | ||
Whole Loans, Floating Rate [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Quantity of loans | 73 | 51 | ||
Quantity | 2 | 2 | ||
Amortized Cost | 1,263,592,000 | 745,789,000 | ||
The amortized cost of loans held for investments, fixed rate whole loans included in floating rate whole loans. | 12,000,000 | 11,400,000 | ||
Quantity of Loans, Fixed Contractual Interest in Floating Rate Whole Loan, Rate Two | 2 | |||
Whole Loans, Floating Rate [Member] | Minimum [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Variable rate basis | LIBOR | [2],[3],[4] | LIBOR | [2],[3] |
Basis spread on variable rate | 1.75% | [2],[3],[4] | 2.68% | [2],[3] |
Maturity Dates | May-15 | [2],[3],[4],[5] | Mar-14 | [2],[3],[5] |
Whole Loans, Floating Rate [Member] | Maximum [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Variable rate basis | LIBOR | [2],[3],[4] | LIBOR | [2],[3] |
Basis spread on variable rate | 15.00% | [2],[3],[4] | 12.14% | [2],[3] |
Maturity Dates | Feb-19 | [2],[3],[4],[5] | Feb-19 | [2],[3],[5] |
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 | 55,000 | 174,000 | ||
B Notes [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Amortized Cost | 16,072,000 | 16,205,000 | ||
B Notes, Fixed Rate [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Quantity of loans | 1 | 1 | ||
Amortized Cost | 16,072,000 | 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 | Apr-16 | Apr-16 | ||
Mezzanine Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Allowance for loan loss | 230,000 | 559,000 | ||
Mezzanine Loans [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Amortized Cost | 67,366,000 | 64,317,000 | ||
Mezzanine Loans, Floating Rate [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Quantity of loans | 1 | 1 | ||
Amortized Cost | 12,558,000 | 12,455,000 | ||
Basis spread on variable rate | 15.32% | |||
Maturity Dates | Apr-16 | [5] | ||
The amortized cost of loans held for investments, fixed rate whole loans included in floating rate whole loans. | 4,200,000 | |||
Mezzanine 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 | 15.32% | |||
Maturity Dates | Apr-16 | [5] | ||
Mezzanine Loans, Floating Rate [Member] | Maximum [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Variable rate basis | LIBOR | LIBOR | ||
Mezzanine Loans, Fixed Rate [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Quantity of loans | 3 | 3 | ||
Amortized Cost | 54,808,000 | 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% | [6] | 0.50% | [6] |
Maturity Dates | Jan-16 | [5],[6] | Sep-14 | [5],[6] |
Mezzanine Loans, Fixed Rate [Member] | Maximum [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Stated interest rate | 18.71% | [6] | 18.72% | [6] |
Maturity Dates | Sep-19 | [5],[6] | Sep-19 | [5],[6] |
Mezzanine Loans, Fixed Rate, Tranche One [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Stated interest rate | 0.50% | |||
Mezzanine Loans, Fixed Rate, Tranche Two [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
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 | ||
[1] | DecemberB 31, 2014DecemberB 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $25B $b Restricted cash$121,247B $61,372 Investments securities available-for-sale, pledged as collateral, at fair value119,203B 105,846 Loans held for sale282B 2,376Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,261,137B 1,219,569 Interest receivable8,941B 5,627 Prepaid expenses221B 247 Principal paydown receivable25,767B 6,821 Other assets(12)B b Total assets of consolidated VIEs$1,536,811B $1,401,858 | |||
[2] | Floating rate whole loans include a combined $11.4 million mezzanine component of two whole loans, which have a fixed rate of 12.0% as of DecemberB 31, 2013. | |||
[3] | Whole loans had $105.1 million and $13.7 million in unfunded loan commitments as of DecemberB 31, 2014 and 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. | |||
[4] | 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 DecemberB 31, 2014 and DecemberB 31, 2013. | |||
[5] | Maturity dates do not include possible extension options that may be available to the borrowers. | |||
[6] | Fixed rate mezzanine loans include a mezzanine loan that was modified into two tranches, which both currently pay interest at 0.50%. In addition, the subordinate tranche accrues interest at LIBOR plus 18.50% which is deferred until maturity. |
LOANS_HELD_FOR_INVESTMENT_Weig1
LOANS HELD FOR INVESTMENT (Weighted Average Life of Commercial Real Estate Loans, at Amortized Cost) (Details) (Commercial Real Estate Loans [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Receivables with Imputed Interest [Line Items] | ||
2015 | $0 | $5,711 |
2016 | 60,473 | 17,949 |
2017 and Thereafter | 1,286,557 | 802,651 |
Total | 1,347,030 | 826,311 |
B Notes [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
2015 | 0 | 0 |
2016 | 16,072 | 0 |
2017 and Thereafter | 0 | 16,205 |
Total | 16,072 | 16,205 |
Mezzanine Loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
2015 | 0 | 5,711 |
2016 | 16,736 | 0 |
2017 and Thereafter | 50,630 | 58,606 |
Total | 67,366 | 64,317 |
Whole Loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
2015 | 0 | 0 |
2016 | 27,665 | 17,949 |
2017 and Thereafter | 1,235,927 | 727,840 |
Total | $1,263,592 | $745,789 |
LOANS_HELD_FOR_INVESTMENT_Allo
LOANS HELD FOR INVESTMENT (Allocation of Allowance for Loan Loss for Commercial and Bank Loans) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Receivables with Imputed Interest [Line Items] | ||
Allowance for Loan Loss | $4,613,000 | $13,807,000 |
B Notes [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Allowance for Loan Loss | 55,000 | 174,000 |
Percentage of Total Allowance | 1.19% | 1.26% |
Mezzanine Loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Allowance for Loan Loss | 230,000 | 559,000 |
Percentage of Total Allowance | 4.99% | 4.05% |
Whole Loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Allowance for Loan Loss | 3,758,000 | 9,683,000 |
Percentage of Total Allowance | 81.47% | 70.13% |
Bank Loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Allowance for Loan Loss | $570,000 | $3,391,000 |
Percentage of Total Allowance | 12.36% | 24.56% |
LOANS_HELD_FOR_INVESTMENT_Weig2
LOANS HELD FOR INVESTMENT (Weighted Average Life of Middle Market Loans, at Amortized Cost) (Details) (Middle-market Loans [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Middle-market Loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Less than one year | $0 | $0 |
Greater than one year and less than five years | 132,353 | 13,027 |
Five years or greater | 117,760 | 31,226 |
Amortized Cost | $250,113 | $44,253 |
INVESTMENTS_IN_UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 01, 2009 | Feb. 28, 2014 | Jul. 31, 2013 | Jan. 31, 2013 | Sep. 30, 2014 | Nov. 16, 2011 | |||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Investments in unconsolidated entities | $59,827,000 | [1] | $69,069,000 | [1] | |||||||
Income (Loss) and Interest Expense from Equity Method Investments | 7,564,000 | 4,342,000 | 490,000 | ||||||||
Varde Investment Partners, LP [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership percentage (percent) | 7.50% | ||||||||||
Investments in unconsolidated entities | 654,000 | 674,000 | |||||||||
Income (Loss) and Interest Expense from Equity Method Investments | -20,000 | 148,000 | -135,000 | ||||||||
RRE VIP Borrower, LLC [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Investments in unconsolidated entities | 0 | 0 | |||||||||
Income (Loss) and Interest Expense from Equity Method Investments | 3,473,000 | 277,000 | 682,000 | ||||||||
Acquisition of membership interests | 2,100,000 | ||||||||||
Interest in LCC [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Investments in unconsolidated entities | 39,416,000 | 41,016,000 | 36,300,000 | ||||||||
Income (Loss) and Interest Expense from Equity Method Investments | -1,555,000 | -183,000 | -3,256,000 | ||||||||
CVC Global Credit Opportunities Fund, LP [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership percentage (percent) | 27.70% | ||||||||||
Investments in unconsolidated entities | 18,209,000 | 16,177,000 | |||||||||
Income (Loss) and Interest Expense from Equity Method Investments | 2,032,000 | 1,177,000 | 0 | ||||||||
Life Care Funding, LLC [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership percentage (percent) | 50.20% | ||||||||||
Investments in unconsolidated entities | 0 | 1,530,000 | |||||||||
Income (Loss) and Interest Expense from Equity Method Investments | -75,000 | -470,000 | 0 | ||||||||
Acquisition of membership interests | 1,400,000 | ||||||||||
Investment in School Lane House [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Investments in unconsolidated entities | 0 | 975,000 | |||||||||
Income (Loss) and Interest Expense from Equity Method Investments | 912,000 | 0 | 0 | ||||||||
Investments in Unconsolidated Entities [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Investments in unconsolidated entities | 58,279,000 | 60,372,000 | |||||||||
Income (Loss) and Interest Expense from Equity Method Investments | 4,767,000 | 949,000 | -2,709,000 | ||||||||
Interest in RCT I and RCT II [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership percentage (percent) | 3.00% | ||||||||||
Investments in unconsolidated entities | 1,548,000 | 1,548,000 | |||||||||
Income (Loss) and Interest Expense from Equity Method Investments | 2,387,000 | 2,401,000 | 2,494,000 | ||||||||
Investment in Preferred Equity [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Investments in unconsolidated entities | 0 | 7,149,000 | |||||||||
Income (Loss) and Interest Expense from Equity Method Investments | 410,000 | 992,000 | 705,000 | ||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | CVC Global Credit Opportunities Fund, LP [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Investments in unconsolidated entities | 18,200,000 | 16,200,000 | |||||||||
Acquisition of membership interests | 15,000,000 | ||||||||||
LEAF Commercial Capital, Inc. [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Investments in unconsolidated entities | 39,400,000 | 41,000,000 | |||||||||
LEAF Commercial Capital, Inc. [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Interest in LCC [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership percentage (percent) | 28.40% | ||||||||||
Life Care Funding, LLC [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Acquisition of membership interests | $2,000,000 | ||||||||||
Minimum [Member] | RRE VIP Borrower, LLC [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership percentage (percent) | 3.00% | ||||||||||
Maximum [Member] | RRE VIP Borrower, LLC [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership percentage (percent) | 5.00% | ||||||||||
[1] | DecemberB 31, 2014DecemberB 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $25B $b Restricted cash$121,247B $61,372 Investments securities available-for-sale, pledged as collateral, at fair value119,203B 105,846 Loans held for sale282B 2,376Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,261,137B 1,219,569 Interest receivable8,941B 5,627 Prepaid expenses221B 247 Principal paydown receivable25,767B 6,821 Other assets(12)B b Total assets of consolidated VIEs$1,536,811B $1,401,858 |
FINANCING_RECEIVABLES_Textuals
FINANCING RECEIVABLES (Textuals) (Details) (USD $) | 12 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | |
Loan | Loan | Loan | Loan | Loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans and receivables | $1,935,793,000 | $1,377,037,000 | |||||
Capital Leases, Income Statement, Direct Financing Lease Revenue | 2,100,000 | ||||||
Bank Loans [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans and receivables | 330,930,000 | 517,770,000 | |||||
Bank Loans [Member] | Nonperforming Financing Receivable [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of defaulted loans | 2 | 3 | 1,000 | 1 | 1 | 1 | 1 |
Loans and receivables | $1,400,000 | $3,600,000 |
FINANCING_RECEIVABLES_Allowanc
FINANCING RECEIVABLES (Allowance for Loan Losses and Recorded Investments in Loans) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule Of Financing Receivables [Line Items] | ||
Financing Receivable, Net | $1,935,793 | $1,377,037 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 13,807 | 17,691 |
Provision (recovery) for loan loss | 1,804 | 3,020 |
Loans charged-off | -10,998 | -6,904 |
Allowance for losses at end of period | 4,613 | 13,807 |
Allowance for losses, ending balance: | ||
Individually evaluated for impairment | 570 | 7,193 |
Collectively evaluated for impairment | 4,043 | 6,614 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Loans, ending balance: | ||
Individually evaluated for impairment | 418,920 | 204,923 |
Collectively evaluated for impairment | 1,513,232 | 1,207,292 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Commercial Portfolio Segment [Member] | ||
Schedule Of Financing Receivables [Line Items] | ||
Financing Receivable, Net | 1,347,030 | 826,311 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 10,416 | 7,986 |
Provision (recovery) for loan loss | -3,758 | 2,686 |
Loans charged-off | -2,615 | -256 |
Allowance for losses at end of period | 4,043 | 10,416 |
Allowance for losses, ending balance: | ||
Individually evaluated for impairment | 0 | 4,572 |
Collectively evaluated for impairment | 4,043 | 5,844 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Loans, ending balance: | ||
Individually evaluated for impairment | 166,180 | 194,403 |
Collectively evaluated for impairment | 1,180,850 | 631,908 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Bank Loans [Member] | ||
Schedule Of Financing Receivables [Line Items] | ||
Financing Receivable, Net | 330,930 | 517,770 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 3,391 | 9,705 |
Provision (recovery) for loan loss | 4,173 | 312 |
Loans charged-off | -6,994 | -6,626 |
Allowance for losses at end of period | 570 | 3,391 |
Allowance for losses, ending balance: | ||
Individually evaluated for impairment | 570 | 2,621 |
Collectively evaluated for impairment | 0 | 770 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Loans, ending balance: | ||
Individually evaluated for impairment | 1,350 | 3,554 |
Collectively evaluated for impairment | 329,580 | 558,469 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Middle-market Loans [Member] | ||
Schedule Of Financing Receivables [Line Items] | ||
Financing Receivable, Net | 250,113 | 44,253 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 0 | 0 |
Provision (recovery) for loan loss | 92 | 22 |
Loans charged-off | -92 | -22 |
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 | 250,113 | 0 |
Collectively evaluated for impairment | 0 | 0 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Lease Receivables [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 0 | 0 |
Provision (recovery) for loan loss | 0 | 0 |
Loans charged-off | 0 | 0 |
Allowance for losses at end of period | 0 | 0 |
Allowance for losses, ending balance: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 0 | 0 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Loans, ending balance: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 2,802 | 16,915 |
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 loss | 1,297 | 0 |
Loans charged-off | -1,297 | 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 | 1,277 | 6,966 |
Collectively evaluated for impairment | 0 | 0 |
Loans acquired with deteriorated credit quality | $0 | $0 |
FINANCING_RECEIVABLES_Credit_R
FINANCING RECEIVABLES (Credit Risk Profiles of Bank Loans) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | $1,935,793 | $1,377,037 |
Bank Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | 330,930 | 517,770 |
Bank Loans [Member] | Rating 1 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | 291,214 | 448,224 |
Bank Loans [Member] | Rating 2 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | 32,660 | 42,476 |
Bank Loans [Member] | Rating 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | 5,424 | 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 | 1,350 | 3,554 |
Bank Loans [Member] | Held for Sale [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | 282 | 2,377 |
Middle-market Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | 250,113 | 44,253 |
Middle-market Loans [Member] | Rating 1 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | 0 | 0 |
Middle-market Loans [Member] | Rating 2 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | 240,245 | 39,780 |
Middle-market Loans [Member] | Rating 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | 9,868 | 0 |
Middle-market Loans [Member] | Rating 4 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | 0 | 0 |
Middle-market Loans [Member] | Rating 5 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | 0 | 0 |
Middle-market Loans [Member] | Held for Sale [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | $0 | $4,473 |
FINANCING_RECEIVABLES_Credit_R1
FINANCING RECEIVABLES (Credit Risk Profiles of Middle Market Loans) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Impaired [Line Items] | ||
Principal, Net | $1,935,793 | $1,377,037 |
Middle-market Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Principal, Net | 250,113 | 44,253 |
Rating 1 [Member] | Middle-market Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Principal, Net | 0 | 0 |
Rating 2 [Member] | Middle-market Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Principal, Net | 240,245 | 39,780 |
Rating 3 [Member] | Middle-market Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Principal, Net | 9,868 | 0 |
Rating 4 [Member] | Middle-market Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Principal, Net | 0 | 0 |
Rating 5 [Member] | Middle-market Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Principal, Net | 0 | 0 |
Held for Sale [Member] | Middle-market Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Principal, Net | $0 | $4,473 |
FINANCING_RECEIVABLES_Credit_R2
FINANCING RECEIVABLES (Credit Risk Profiles of Commercial Real Estate Loans) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | $1,935,793 | $1,377,037 |
Whole Loans [Member] | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 1,263,592 | 745,789 |
Whole Loans [Member] | Rating 1 [Member] | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 1,231,092 | 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 | 16,072 | 16,205 |
B Notes [Member] | Rating 1 [Member] | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 16,072 | 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 | 67,366 | 64,317 |
Mezzanine Loans [Member] | Rating 1 [Member] | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 45,432 | 51,862 |
Mezzanine Loans [Member] | Rating 2 [Member] | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 21,934 | 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 | 1,347,030 | 826,311 |
Commercial Portfolio Segment [Member] | Rating 1 [Member] | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 1,292,596 | 748,785 |
Commercial Portfolio Segment [Member] | Rating 2 [Member] | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 54,434 | 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 $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days | $443 | $234 |
60-89 Days | 82 | 91 |
Greater than 90 Days | 1,469 | 3,822 |
Total Past Due | 1,994 | 4,147 |
Current | 2,041,612 | 1,408,068 |
Total Loans Receivable | 2,043,606 | 1,412,215 |
Total Loans Greater Than 90 days and accruing | 0 | 0 |
Financing Receivable, Net | 1,935,793 | 1,377,037 |
Loans Receivable Held-for-sale, Amount | 111,736 | 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 | 1,263,592 | 745,789 |
Total Loans Receivable | 1,263,592 | 745,789 |
Total Loans Greater Than 90 days and accruing | 0 | |
Financing Receivable, Net | 1,263,592 | 745,789 |
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 | 16,072 | 16,205 |
Total Loans Receivable | 16,072 | 16,205 |
Total Loans Greater Than 90 days and accruing | 0 | 0 |
Financing Receivable, Net | 16,072 | 16,205 |
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 | 67,366 | 64,317 |
Total Loans Receivable | 67,366 | 64,317 |
Total Loans Greater Than 90 days and accruing | 0 | 0 |
Financing Receivable, Net | 67,366 | 64,317 |
Bank Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days | 0 | 0 |
60-89 Days | 0 | 0 |
Greater than 90 Days | 1,350 | 3,554 |
Total Past Due | 1,350 | 3,554 |
Current | 329,580 | 514,216 |
Total Loans Receivable | 330,930 | 517,770 |
Total Loans Greater Than 90 days and accruing | 0 | 0 |
Financing Receivable, Net | 330,930 | 517,770 |
Middle-market 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 | 250,113 | 44,253 |
Total Loans Receivable | 250,113 | 44,253 |
Total Loans Greater Than 90 days and accruing | 0 | 0 |
Financing Receivable, Net | 250,113 | 44,253 |
Residential Mortgage Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days | 443 | 234 |
60-89 Days | 82 | 91 |
Greater than 90 Days | 119 | 268 |
Total Past Due | 644 | 593 |
Current | 113,612 | 16,322 |
Total Loans Receivable | 114,256 | 16,915 |
Total Loans Greater Than 90 days and accruing | 0 | 0 |
Loans Receivable Held-for-sale, Amount | 111,454 | 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 | 1,277 | 6,966 |
Total Loans Receivable | 1,277 | 6,966 |
Total Loans Greater Than 90 days and accruing | 0 | 0 |
Held for Sale [Member] | Whole Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Net | 0 | 0 |
Held for Sale [Member] | B Notes [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Net | 0 | 0 |
Held for Sale [Member] | Mezzanine Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Net | 0 | 0 |
Held for Sale [Member] | Bank Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Net | 282 | 2,377 |
Held for Sale [Member] | Middle-market Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Net | $0 | $4,473 |
FINANCING_RECEIVABLES_Impaired
FINANCING RECEIVABLES (Impaired Loans) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance | $169,612 | $204,005 |
Unpaid Principal Balance | 169,612 | 203,958 |
Specific Allowance | -570 | -7,193 |
Average Investment in Impaired Loans | 170,599 | 186,315 |
Interest Income Recognized | 15,686 | 11,676 |
Whole Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans without a specific valuation allowance, Recorded balance | 128,108 | 130,759 |
Loans with a specific valuation allowance, Recorded balance | 0 | 25,572 |
Recorded Balance | 128,108 | 156,331 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 128,108 | 130,759 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 0 | 25,572 |
Unpaid Principal Balance | 128,108 | 156,331 |
Specific Allowance | 0 | -4,572 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 130,445 | 123,495 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 0 | 24,748 |
Average Investment in Impaired Loans | 130,445 | 148,243 |
Loans without a specific valuation allowance, Interest Income Recognized | 12,679 | 8,439 |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | 1,622 |
Interest Income Recognized | 12,679 | 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 | 2,859 | 1,615 |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Interest Income Recognized | 2,859 | 1,615 |
Bank Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans without a specific valuation allowance, Recorded balance | 0 | 0 |
Loans with a specific valuation allowance, Recorded balance | 1,350 | 3,554 |
Recorded Balance | 1,350 | 3,554 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 0 | 0 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 1,350 | 3,554 |
Unpaid Principal Balance | 1,350 | 3,554 |
Specific Allowance | -570 | -2,621 |
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 |
Middle-market Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans without a specific valuation allowance, Recorded balance | 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 | |
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 | |
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 | |
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 | 2,082 | 315 |
Loans with a specific valuation allowance, Recorded balance | 0 | 0 |
Recorded Balance | 2,082 | 315 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 2,082 | 268 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 0 | 0 |
Unpaid Principal Balance | 2,082 | 268 |
Specific Allowance | 0 | 0 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 2,082 | 0 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 |
Average Investment in Impaired Loans | 2,082 | 0 |
Loans without a specific valuation allowance, Interest Income Recognized | 148 | 0 |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Interest Income Recognized | 148 | 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 | 0 | 0 |
Recorded Balance | 0 | 5,733 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 0 | 5,733 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 0 | 0 |
Unpaid Principal Balance | 0 | 5,733 |
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 |
FINANCING_RECEIVABLES_Loan_Por1
FINANCING RECEIVABLES (Loan Portfolio Troubled-debt Restructurings) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Loan | Loan | |
Troubled debt restructuring [Abstract] | ||
Number of Loans | 4 | 6 |
Pre-Modification Outstanding Recorded Balance | $137,811 | $150,076 |
Post-Modification Outstanding Recorded Balance | 137,811 | 154,418 |
Whole Loans [Member] | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | 3 | 5 |
Pre-Modification Outstanding Recorded Balance | 99,739 | 143,484 |
Post-Modification Outstanding Recorded Balance | 99,739 | 147,826 |
B Notes [Member] | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | 0 | 0 |
Pre-Modification Outstanding Recorded Balance | 0 | 0 |
Post-Modification Outstanding Recorded Balance | 0 | 0 |
Mezzanine Loans [Member] | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | 1 | 0 |
Pre-Modification Outstanding Recorded Balance | 38,072 | 0 |
Post-Modification Outstanding Recorded Balance | 38,072 | 0 |
Bank Loans [Member] | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | 0 | 0 |
Pre-Modification Outstanding Recorded Balance | 0 | 0 |
Post-Modification Outstanding Recorded Balance | 0 | 0 |
Middle-market Loans [Member] | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | 0 | 0 |
Pre-Modification Outstanding Recorded Balance | 0 | 0 |
Post-Modification Outstanding Recorded Balance | 0 | 0 |
Residential Mortgage Loans [Member] | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | 0 | |
Pre-Modification Outstanding Recorded Balance | 0 | |
Post-Modification Outstanding Recorded Balance | 0 | |
Loans Receivable - Related Party [Member] | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | 0 | 1 |
Pre-Modification Outstanding Recorded Balance | 0 | 6,592 |
Post-Modification Outstanding Recorded Balance | $0 | $6,592 |
BUSINESS_COMBINATION_Details
BUSINESS COMBINATION (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2013 | Feb. 27, 2014 | Feb. 28, 2014 | Sep. 30, 2014 | |
Business Acquisition [Line Items] | |||||||
Issuance of restricted stock | $890,000 | $823,000 | $2,189,000 | ||||
Allocated share-based compensation expense | 6,566,000 | 10,472,000 | 4,636,000 | ||||
Primary Capital Advisors LLC [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total cash purchase price | 0 | 7,613,000 | 0 | 7,613,000 | |||
Issuance of restricted stock | 800,000 | ||||||
Wholesale and correspondent relationships | 600,000 | ||||||
Cash and cash equivalents | 1,233,000 | ||||||
Loans held for sale | 15,021,000 | ||||||
Loans held for investment | 2,071,000 | ||||||
Other assets | 5,828,000 | ||||||
Total assets | 24,753,000 | ||||||
Borrowings | 14,584,000 | ||||||
Other liabilities | 2,165,000 | ||||||
Total liabilities | 16,749,000 | ||||||
Gain on bargain purchase | 391,000 | ||||||
Equity Compensation Expense [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Allocated share-based compensation expense | 634,000 | 106,000 | |||||
General and Administrative Expense [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Allocated share-based compensation expense | 189,000 | 48,000 | |||||
Wholesale or Correspondent Relationships [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-Lived intangible asset, useful life | 2 years | ||||||
Life Care Funding, LLC [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Ownership percentage in VIE | 50.20% | ||||||
Moselle CLO [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Ownership percentage in VIE | 88.60% | ||||||
Moselle CLO [Member] | VIE, Primary Beneficiary [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition of membership interests | $30,400,000 | ||||||
Class 1 Subordinated Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of outstanding notes purchased | 100.00% | ||||||
Class 2 Subordinated Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of outstanding notes purchased | 67.90% |
INTANGIBLE_ASSETS_Details
INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets | $21,813,000 | $24,303,000 | |
Expected amortization, 2014 | 2,100,000 | ||
Expected amortization, 2015 | 2,000,000 | ||
Expected amortization, 2016 | 1,800,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 1,600,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 1,000,000 | ||
Expected amortization, 2017 | 1,800,000 | ||
Weighted average amortization period (in years) | 6 years 7 months 6 days | 7 years 8 months 12 days | |
Accumulated amortization | 12,077,000 | 12,481,000 | |
Fee income | 9,385,000 | 5,821,000 | 7,068,000 |
Investment in PCM [Member] | Wholesale or Correspondent Relationships [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets | 600,000 | 600,000 | |
Accumulated amortization | 298,000 | 42,000 | |
Investment in RCAM [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets | 21,213,000 | 21,213,000 | |
Accumulated amortization | 11,779,000 | 9,980,000 | |
Fee income | $5,100,000 | $5,300,000 | $7,000,000 |
INTANGIBLE_ASSETS_Summary_of_I
INTANGIBLE ASSETS (Summary of Intangible Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Beginning Balance | $21,813 | $24,303 | ||
Accumulated Amortization | -12,077 | -12,481 | ||
Net Asset | 9,736 | [1] | 11,822 | [1] |
Investment in RCAM [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Beginning Balance | 21,213 | 21,213 | ||
Accumulated Amortization | -11,779 | -9,980 | ||
Net Asset | 9,434 | 11,233 | ||
Investments in Real Estate [Member] | In Place Leases [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Beginning Balance | 2,461 | |||
Accumulated Amortization | -2,430 | |||
Net Asset | 31 | |||
Investments in Real Estate [Member] | Above (Below) Market Leases [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Beginning Balance | 29 | |||
Accumulated Amortization | -29 | |||
Net Asset | 0 | |||
Investment in PCM [Member] | Wholesale or Correspondent Relationships [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Beginning Balance | 600 | 600 | ||
Accumulated Amortization | -298 | -42 | ||
Net Asset | $302 | $558 | ||
[1] | DecemberB 31, 2014DecemberB 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $25B $b Restricted cash$121,247B $61,372 Investments securities available-for-sale, pledged as collateral, at fair value119,203B 105,846 Loans held for sale282B 2,376Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,261,137B 1,219,569 Interest receivable8,941B 5,627 Prepaid expenses221B 247 Principal paydown receivable25,767B 6,821 Other assets(12)B b Total assets of consolidated VIEs$1,536,811B $1,401,858 |
INTANGIBLE_ASSETS_Mortgage_Ser
INTANGIBLE ASSETS Mortgage Servicing Rights (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $2,100,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 2,000,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 1,800,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 1,800,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 1,600,000 | |||
Finite-lived Intangible Assets [Roll Forward] | ||||
Balance, beginning of Period | 24,303,000 | |||
Balance, end of period | 21,813,000 | 24,303,000 | ||
Accumulated amortization | -12,077,000 | -12,481,000 | ||
Balance, end of period | 9,736,000 | [1] | 11,822,000 | [1] |
Mortgage Servicing Rights [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Mortgage Servicing Rights (MSRs) | 1,600,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 2,000,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 2,000,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 1,800,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 1,700,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 1,100,000 | |||
Finite-lived Intangible Assets [Roll Forward] | ||||
Balance, beginning of Period | 433,153,000 | |||
Additions | 519,915,000 | |||
Payoffs, sales and curtailments | -58,301,000 | |||
Balance, end of period | 894,767,000 | |||
Other Income [Member] | Mortgage Servicing Rights [Member] | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Servicing fees from capitalized portfolio | 1,649,000 | |||
Late Fees | 81,000 | |||
Other ancillary servicing revenue | 6,000 | |||
Other Assets [Member] | Mortgage Servicing Rights [Member] | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Balance, beginning of Period | 4,885,000 | |||
Additions | 6,446,000 | |||
Sales | 0 | |||
Balance, end of period | 11,331,000 | |||
Accumulated amortization | -2,457,000 | |||
Balance, end of period | $8,874,000 | |||
[1] | DecemberB 31, 2014DecemberB 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $25B $b Restricted cash$121,247B $61,372 Investments securities available-for-sale, pledged as collateral, at fair value119,203B 105,846 Loans held for sale282B 2,376Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,261,137B 1,219,569 Interest receivable8,941B 5,627 Prepaid expenses221B 247 Principal paydown receivable25,767B 6,821 Other assets(12)B b Total assets of consolidated VIEs$1,536,811B $1,401,858 |
BORROWINGS_Schedule_of_Debt_De
BORROWINGS (Schedule of Debt) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
Debt Instrument [Line Items] | ||||
Principal Outstanding | $1,734,901,000 | $1,336,026,000 | ||
Unamortized Issuance Costs and Discounts | 18,030,000 | 16,216,000 | ||
Outstanding Borrowings | 1,716,871,000 | 1,319,810,000 | ||
Weighted Average Borrowing Rate | 2.09% | 1.87% | ||
Weighted Average Remaining Maturity | 10 years 0 months | 13 years 1 month | ||
Value of Collateral | 2,287,115,000 | 1,508,603,000 | ||
Accrued interest costs | 2,123,000 | [1] | 1,693,000 | [1] |
RREF CDO 2006-1 Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 61,423,000 | 94,209,000 | ||
Unamortized Issuance Costs and Discounts | 0 | 205,000 | ||
Outstanding Borrowings | 61,423,000 | 94,004,000 | ||
Weighted Average Borrowing Rate | 2.12% | 1.87% | ||
Weighted Average Remaining Maturity | 31 years 7 months | 32 years 7 months | ||
Value of Collateral | 139,242,000 | 169,115,000 | ||
RREF CDO 2007-1 Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 130,340,000 | 178,556,000 | ||
Unamortized Issuance Costs and Discounts | 133,000 | 719,000 | ||
Outstanding Borrowings | 130,207,000 | 177,837,000 | ||
Weighted Average Borrowing Rate | 1.19% | 0.84% | ||
Weighted Average Remaining Maturity | 31 years 9 months | 32 years 9 months | ||
Value of Collateral | 271,423,000 | 318,933,000 | ||
RCC CRE Notes 2013 [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 226,840,000 | 260,840,000 | ||
Unamortized Issuance Costs and Discounts | 2,683,000 | 4,269,000 | ||
Outstanding Borrowings | 224,157,000 | 256,571,000 | ||
Weighted Average Borrowing Rate | 2.11% | 2.03% | ||
Weighted Average Remaining Maturity | 14 years 0 months | 15 years 0 months | ||
Value of Collateral | 249,983,000 | 305,586,000 | ||
RCC CRE Notes 2014 [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 235,344,000 | |||
Unamortized Issuance Costs and Discounts | 3,687,000 | |||
Outstanding Borrowings | 231,657,000 | |||
Weighted Average Borrowing Rate | 1.45% | |||
Weighted Average Remaining Maturity | 17 years 4 months | |||
Value of Collateral | 346,585,000 | |||
Apidos CDO I Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 87,131,000 | |||
Unamortized Issuance Costs and Discounts | 0 | |||
Outstanding Borrowings | 87,131,000 | |||
Weighted Average Borrowing Rate | 1.68% | |||
Weighted Average Remaining Maturity | 3 years 7 months | |||
Value of Collateral | 103,736,000 | |||
Apidos CDO III Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 74,646,000 | 133,326,000 | ||
Unamortized Issuance Costs and Discounts | 0 | 117,000 | ||
Outstanding Borrowings | 74,646,000 | 133,209,000 | ||
Weighted Average Borrowing Rate | 1.18% | 0.88% | ||
Weighted Average Remaining Maturity | 5 years 8 months | 6 years 8 months | ||
Value of Collateral | 85,553,000 | 145,930,000 | ||
Apidos Cinco CDO Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 255,664,000 | 322,000,000 | ||
Unamortized Issuance Costs and Discounts | 201,000 | 853,000 | ||
Outstanding Borrowings | 255,463,000 | 321,147,000 | ||
Weighted Average Borrowing Rate | 0.81% | 0.74% | ||
Weighted Average Remaining Maturity | 5 years 5 months | 6 years 5 months | ||
Value of Collateral | 272,512,000 | 342,796,000 | ||
Moselle CLO S.A. Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 63,321,000 | |||
Unamortized Issuance Costs and Discounts | 0 | |||
Outstanding Borrowings | 63,321,000 | |||
Weighted Average Borrowing Rate | 1.49% | |||
Weighted Average Remaining Maturity | 5 years 0 months | |||
Value of Collateral | 93,576,000 | |||
Line of Credit Facility, Fair Value of Amount Outstanding | 63,300,000 | |||
Subordinated Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | 27,800,000 | [2] | ||
Moselle CLO S.A. Securitized Borrowings [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 5,619,000 | |||
Unamortized Issuance Costs and Discounts | 0 | |||
Outstanding Borrowings | 5,619,000 | |||
Weighted Average Borrowing Rate | 1.49% | |||
Weighted Average Remaining Maturity | 5 years 0 months | |||
Value of Collateral | 0 | |||
Whitney CLO I Securitized Borrowings [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 440,000 | |||
Unamortized Issuance Costs and Discounts | 0 | |||
Outstanding Borrowings | 440,000 | [3] | ||
Weighted Average Borrowing Rate | 0.00% | |||
Value of Collateral | 885,000 | |||
Unsecured Junior Subordinated Debentures [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 51,548,000 | [2] | 51,548,000 | [2] |
Unamortized Issuance Costs and Discounts | 343,000 | [2] | 543,000 | [2] |
Outstanding Borrowings | 51,205,000 | [2] | 51,005,000 | [2] |
Weighted Average Borrowing Rate | 4.19% | [2] | 4.19% | [2] |
Weighted Average Remaining Maturity | 21 years 9 months | [2] | 22 years 9 months | [2] |
Value of Collateral | 0 | [2] | 0 | [2] |
6% Convertible Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 115,000,000 | |||
Unamortized Issuance Costs and Discounts | 8,465,000 | |||
Outstanding Borrowings | 106,535,000 | |||
Weighted Average Borrowing Rate | 6.00% | |||
Weighted Average Remaining Maturity | 4 years 11 months | |||
Value of Collateral | 0 | |||
Short-Term Repurchase Agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 47,613,000 | [4] | ||
Unamortized Issuance Costs and Discounts | 12,000 | [4] | ||
Outstanding Borrowings | 47,601,000 | [4] | ||
Weighted Average Borrowing Rate | 1.38% | [4] | ||
Weighted Average Remaining Maturity | 21 days | [4] | ||
Value of Collateral | 56,949,000 | [4] | ||
Mortgages [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 14,627,000 | |||
Unamortized Issuance Costs and Discounts | 0 | |||
Outstanding Borrowings | 14,627,000 | |||
Weighted Average Borrowing Rate | 4.24% | |||
Weighted Average Remaining Maturity | 56 days | |||
Value of Collateral | 16,487,000 | |||
Convertible Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 115,000,000 | |||
Unamortized Issuance Costs and Discounts | 6,626,000 | |||
Outstanding Borrowings | 108,374,000 | |||
Weighted Average Borrowing Rate | 6.00% | |||
Weighted Average Remaining Maturity | 3 years 11 months | |||
Value of Collateral | 0 | |||
CRE - Term Repurchase Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 207,640,000 | 30,736,000 | [5] | |
Unamortized Issuance Costs and Discounts | 1,958,000 | [5] | 1,033,000 | [5] |
Outstanding Borrowings | 205,682,000 | [5] | 29,703,000 | [5] |
Weighted Average Borrowing Rate | 2.43% | [5] | 2.67% | [5] |
Weighted Average Remaining Maturity | 20 days | [5] | 21 days | [5] |
Value of Collateral | 297,571,000 | [5] | 48,186,000 | [5] |
Accrued interest costs | 198,000 | 26,000 | ||
CMBS - Term Repurchase Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 24,967,000 | [4] | ||
Unamortized Issuance Costs and Discounts | 0 | [4] | ||
Outstanding Borrowings | 24,967,000 | [4] | ||
Weighted Average Borrowing Rate | 1.35% | [4] | ||
Weighted Average Remaining Maturity | 20 days | [4] | ||
Value of Collateral | 30,180,000 | [4] | ||
Accrued interest costs | 12,000 | 22,000 | ||
RMBS - Term Repurchase Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 22,248,000 | [4] | ||
Unamortized Issuance Costs and Discounts | 36,000 | [4] | ||
Outstanding Borrowings | 22,212,000 | [4] | ||
Weighted Average Borrowing Rate | 1.16% | [4] | ||
Weighted Average Remaining Maturity | 1 day | [4] | ||
Value of Collateral | 27,885,000 | [4] | ||
Accrued interest costs | 20,000 | |||
Residential Mortgage Financing Agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 102,576,000 | |||
Unamortized Issuance Costs and Discounts | 0 | |||
Outstanding Borrowings | 102,576,000 | |||
Weighted Average Borrowing Rate | 2.78% | |||
Weighted Average Remaining Maturity | 207 days | |||
Value of Collateral | 147,472,000 | |||
CMBS - Short Term Repurchase Agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 44,225,000 | |||
Unamortized Issuance Costs and Discounts | 0 | |||
Outstanding Borrowings | 44,225,000 | |||
Weighted Average Borrowing Rate | 1.63% | |||
Weighted Average Remaining Maturity | 17 days | |||
Value of Collateral | 62,446,000 | |||
Accrued interest costs | 31,000 | |||
Senior Secured Revolving Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 113,500,000 | |||
Unamortized Issuance Costs and Discounts | 2,363,000 | |||
Outstanding Borrowings | 111,137,000 | |||
Weighted Average Borrowing Rate | 2.66% | |||
Weighted Average Remaining Maturity | 2 years 8 months | |||
Value of Collateral | 262,687,000 | |||
Principle Receivable | $14,900,000 | |||
[1] | DecemberB 31, 2014B DecemberB 31, 2013Liabilities of consolidated VIEs included in the total liabilities above: Borrowings$1,046,494B $1,070,339 Accrued interest expense1,000B 918 Derivatives, at fair value8,439B 10,191 Unsettled loan purchases(529)B b Accounts payable and other liabilities(386)B 1,604 Total liabilities of consolidated VIEs$1,055,018B $1,083,052 | |||
[2] | Amount represents junior subordinated debentures issued to RCT I and RCT II in May 2006 and September 2006, respectively. | |||
[3] | The securitized borrowings were collateralized by the same assets as the Moselle CLO Senior Notes and the Whitney CLO I Senior Notes | |||
[4] | Amounts also include accrued interest expense of $12,000 and $22,000 related to CMBS repurchase facilities as of DecemberB 31, 2014 and 2013, respectively. Amount does not reflect CMBS repurchase agreement borrowings that are components of linked transactions. | |||
[5] | Amount also includes accrued interest expense of $198,000 and $26,000 related to CRE repurchase facilities as of DecemberB 31, 2014 and 2013, respectively. |
BORROWINGS_RCC_CRE_Notes_2013_
BORROWINGS (RCC CRE Notes 2013) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||||
31-May-07 | 31-May-06 | Aug. 31, 2005 | Dec. 31, 2013 | Dec. 31, 2014 | Jul. 30, 2014 | |
Debt Instrument [Line Items] | ||||||
Weighted Average Interest Rate of Linked Transactions | 1.87% | 2.09% | ||||
Senior Notes Class D [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Description of variable rate basis | LIBOR | 3-month LIBOR | ||||
Basis spread on variable rate | 4.25% | 4.25% | ||||
Senior Notes Class B [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Description of variable rate basis | LIBOR | 3-month LIBOR | 3-month LIBOR | |||
Basis spread on variable rate | 0.80% | 0.75% | 0.75% | |||
Senior Notes Class C [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Description of variable rate basis | LIBOR | 3-month LIBOR | 3-month LIBOR | |||
Basis spread on variable rate | 2.25% | 1.75% | 1.85% | |||
RCC CRE Notes 2013 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Closing transaction amount | $307,800,000 | $353,900,000 | ||||
Face amount of debt issued | 260,800,000 | |||||
Percentage of senior notes acquired by the parent | 100.00% | |||||
Payments by parent to acquire notes issued by VIE | 30,000,000 | |||||
Weighted Average Interest Rate of Linked Transactions | 2.03% | 2.11% | ||||
RCC CRE Notes 2013 [Member] | RCC CRE Notes 2012 Investor, LLC [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Purchased equity interests | 16,900,000 | |||||
RCC CRE Notes 2013 [Member] | Senior Notes Class D [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 13,800,000 | |||||
Percentage of senior notes acquired by the parent | 100.00% | |||||
Description of variable rate basis | one-month LIBOR | |||||
Basis spread on variable rate | 4.50% | |||||
RCC CRE Notes 2013 [Member] | Senior Notes Class A [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 136,900,000 | |||||
Description of variable rate basis | one-month LIBOR | |||||
Basis spread on variable rate | 1.30% | |||||
RCC CRE Notes 2013 [Member] | Senior Notes Class A-S [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 78,500,000 | |||||
Description of variable rate basis | one-month LIBOR | |||||
Basis spread on variable rate | 2.15% | |||||
RCC CRE Notes 2013 [Member] | Senior Notes Class B [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 30,800,000 | |||||
Description of variable rate basis | one-month LIBOR | |||||
Basis spread on variable rate | 2.85% | |||||
RCC CRE Notes 2013 [Member] | Senior Notes Class C [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 14,600,000 | |||||
Description of variable rate basis | one-month LIBOR | |||||
Basis spread on variable rate | 3.50% | |||||
RCC CRE Notes 2013 [Member] | Senior Notes Class E [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 9,200,000 | |||||
Description of variable rate basis | one-month LIBOR | |||||
Basis spread on variable rate | 5.50% | |||||
RCC CRE Notes 2013 [Member] | Senior Notes Class F [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | $6,900,000 | |||||
Description of variable rate basis | one-month LIBOR | |||||
Basis spread on variable rate | 6.50% |
BORROWINGS_Resource_Real_Estat
BORROWINGS (Resource Real Estate Funding CDO 2007-1) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2007 | 31-May-07 | 31-May-06 | Aug. 31, 2005 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ||||||
Weighted Average Interest Rate of Linked Transactions | 2.09% | 1.87% | ||||
Resource Real Estate Funding 2007-1 CDO Investor LLC [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Payments by parent to acquire notes issued by VIE | $41,300,000 | |||||
Senior Notes Class A-1 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Description of variable rate basis | LIBOR | 3-month LIBOR | 3-month LIBOR | |||
Basis spread on variable rate | 0.24% | 0.26% | 0.26% | |||
Senior Notes Class A-2 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Description of variable rate basis | 3-month LIBOR | 3-month LIBOR | ||||
Basis spread on variable rate | 0.45% | 0.42% | ||||
Senior Notes Class B [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Description of variable rate basis | LIBOR | 3-month LIBOR | 3-month LIBOR | |||
Basis spread on variable rate | 0.80% | 0.75% | 0.75% | |||
Senior Notes Class C [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Description of variable rate basis | LIBOR | 3-month LIBOR | 3-month LIBOR | |||
Basis spread on variable rate | 2.25% | 1.75% | 1.85% | |||
Senior Notes Class D [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Description of variable rate basis | LIBOR | 3-month LIBOR | ||||
Basis spread on variable rate | 4.25% | 4.25% | ||||
RREF CDO 2007-1 Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Closing transaction amount | 500,000,000 | |||||
Percentage of senior notes acquired by the parent | 100.00% | |||||
Cumulative amount of debt paid down | 151,700,000 | |||||
Weighted Average Interest Rate of Linked Transactions | 1.19% | 0.84% | ||||
RREF CDO 2007-1 Senior Notes [Member] | RCC Real Estate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of senior notes acquired by the parent | 100.00% | |||||
Payments by parent to acquire notes issued by VIE | 68,000,000 | |||||
RREF CDO 2007-1 Senior Notes [Member] | Resource Real Estate Funding 2007-1 CDO Investor LLC [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 265,600,000 | |||||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class A-1 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 180,000,000 | |||||
Reissuance Price to par | 92.53% | |||||
Description of variable rate basis | one-month LIBOR | |||||
Basis spread on variable rate | 0.28% | |||||
Debt Instrument, Amount, Reissuance | 25,000,000 | |||||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class A-1R [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 50,000,000 | |||||
Description of variable rate basis | one-month LIBOR | |||||
Basis spread on variable rate | 0.32% | |||||
Commitment fee percentage on undrawn balance of notes | 0.18% | |||||
Repurchase amount of debt | 50,000,000 | |||||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class A-2 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 57,500,000 | |||||
Description of variable rate basis | one-month LIBOR | |||||
Basis spread on variable rate | 0.46% | |||||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class B [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 22,500,000 | |||||
Description of variable rate basis | one-month LIBOR | |||||
Basis spread on variable rate | 0.80% | |||||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class C [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 7,000,000 | |||||
Interest rate at period end | 6.42% | |||||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class D [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 26,800,000 | |||||
Description of variable rate basis | one-month LIBOR | |||||
Basis spread on variable rate | 0.95% | |||||
Repurchase amount of debt | 26,800,000 | |||||
Weighted average price to par paid to repurchase debt | 86.85% | |||||
Debt Instrument, Amount, Reissuance | 15,000,000 | |||||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class E [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 11,900,000 | |||||
Description of variable rate basis | one-month LIBOR | |||||
Basis spread on variable rate | 1.15% | |||||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class F [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 11,900,000 | |||||
Description of variable rate basis | one-month LIBOR | |||||
Basis spread on variable rate | 1.30% | |||||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class G [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 11,300,000 | |||||
Description of variable rate basis | one-month LIBOR | |||||
Basis spread on variable rate | 1.55% | |||||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class H [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 11,300,000 | |||||
Description of variable rate basis | one-month LIBOR | |||||
Basis spread on variable rate | 2.30% | |||||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class J [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 11,300,000 | |||||
Description of variable rate basis | one-month LIBOR | |||||
Basis spread on variable rate | 2.95% | |||||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class K [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 10,000,000 | |||||
Description of variable rate basis | one-month LIBOR | |||||
Basis spread on variable rate | 3.25% | |||||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class L [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 18,800,000 | |||||
Interest rate at period end | 7.50% | |||||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class M [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 28,800,000 | |||||
Interest rate at period end | 8.50% | |||||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class A-1R and Class D [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average price to par paid to repurchase debt | 78.85% | |||||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class A-1R and Class D [Member] | Gain on Extinguishment of Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Gain on repurchase of debt instrument | 14,900,000 | |||||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class A1 and D [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Gain (Loss) on Rissuance of Debt Instrument | $3,800,000 |
BORROWINGS_Resource_Real_Estat1
BORROWINGS (Resource Real Estate Funding CDO 2006-1) (Details) (USD $) | 1 Months Ended | 12 Months Ended | |||||
31-May-07 | 31-May-06 | Aug. 31, 2005 | Aug. 31, 2006 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||||||
Weighted Average Interest Rate of Linked Transactions | 2.09% | 1.87% | |||||
Senior Notes Class A-1 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Description of variable rate basis | LIBOR | 3-month LIBOR | 3-month LIBOR | ||||
Basis spread on variable rate | 0.24% | 0.26% | 0.26% | ||||
Senior Notes Class A-2 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Description of variable rate basis | 3-month LIBOR | 3-month LIBOR | |||||
Basis spread on variable rate | 0.45% | 0.42% | |||||
Senior Notes Class A-2b [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Description of variable rate basis | LIBOR | ||||||
Basis spread on variable rate | 0.32% | ||||||
Senior Notes Class B [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Description of variable rate basis | LIBOR | 3-month LIBOR | 3-month LIBOR | ||||
Basis spread on variable rate | 0.80% | 0.75% | 0.75% | ||||
Senior Notes Class C [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Description of variable rate basis | LIBOR | 3-month LIBOR | 3-month LIBOR | ||||
Basis spread on variable rate | 2.25% | 1.75% | 1.85% | ||||
Senior Notes Class D [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Description of variable rate basis | LIBOR | 3-month LIBOR | |||||
Basis spread on variable rate | 4.25% | 4.25% | |||||
Resource Real Estate Funding CDO 2006-1 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Closing transaction amount | $345,000,000 | ||||||
Face amount of debt issued | 308,700,000 | ||||||
Resource Real Estate Funding CDO 2006-1 [Member] | Resource Real Estate Funding 2006-1 CDO Investor LLC [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Purchased equity interests | 36,300,000 | ||||||
Percentage of total preference shares (in hundredths) | 100.00% | ||||||
Resource Real Estate Funding CDO 2006-1 [Member] | RCC Real Estate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of senior notes acquired by the parent | 100.00% | ||||||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class J and K [Member] | RCC Real Estate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | 43,100,000 | ||||||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class A-1 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | 129,400,000 | ||||||
Cumulative amount of debt paid down | 110,000,000 | ||||||
Description of variable rate basis | one-month LIBOR | ||||||
Basis spread on variable rate | 0.32% | ||||||
Repurchase amount of debt | 4,300,000 | ||||||
Debt Instrument, Amount, Reissuance | 6,700,000 | ||||||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class A-2 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | 17,400,000 | ||||||
Description of variable rate basis | one-month LIBOR | ||||||
Basis spread on variable rate | 0.35% | ||||||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class A-2b [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | 5,000,000 | ||||||
Interest rate at period end | 5.84% | ||||||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class B [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | 6,900,000 | ||||||
Description of variable rate basis | one-month LIBOR | ||||||
Basis spread on variable rate | 0.40% | ||||||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class C [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | 20,700,000 | ||||||
Description of variable rate basis | one-month LIBOR | ||||||
Basis spread on variable rate | 0.62% | ||||||
Repurchase amount of debt | 4,000,000 | ||||||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class D [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | 15,500,000 | ||||||
Description of variable rate basis | one-month LIBOR | ||||||
Basis spread on variable rate | 0.80% | ||||||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class E [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | 20,700,000 | ||||||
Description of variable rate basis | one-month LIBOR | ||||||
Basis spread on variable rate | 1.30% | ||||||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class F [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | 19,800,000 | ||||||
Description of variable rate basis | one-month LIBOR | ||||||
Basis spread on variable rate | 1.60% | ||||||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class G [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | 17,300,000 | ||||||
Description of variable rate basis | one-month LIBOR | ||||||
Basis spread on variable rate | 1.90% | ||||||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class H [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | 12,900,000 | ||||||
Description of variable rate basis | one-month LIBOR | ||||||
Basis spread on variable rate | 3.75% | ||||||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class J [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | 14,700,000 | ||||||
Interest rate at period end | 6.00% | ||||||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class K [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | 28,400,000 | ||||||
Interest rate at period end | 6.00% | ||||||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class A-1 and Class C [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average price to par paid to repurchase debt | 81.63% | ||||||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class A-1 and Class C [Member] | RCC Real Estate [Member] | Gain on Extinguishment of Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Gain on repurchase of debt instrument | 1,500,000 | ||||||
RREF CDO 2006-1 Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Cumulative amount of debt paid down | 165,600,000 | ||||||
Weighted Average Interest Rate of Linked Transactions | 2.12% | 1.87% | |||||
RREF CDO 2006-1 Senior Notes [Member] | Senior Notes Class A-1 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Reissuance Price to par | 98.94% | ||||||
RREF CDO 2006-1 Senior Notes [Member] | Senior Notes Class A-2 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Amount, Reissuance | 12,000,000 | ||||||
Reissuance Price to par | 95.56% | ||||||
RREF CDO 2006-1 Senior Notes [Member] | Senior Notes Class A1 and A2 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Gain (Loss) on Rissuance of Debt Instrument | $604,000 |
BORROWINGS_Whitney_CLO_I_Detai
BORROWINGS (Whitney CLO I) (Details) (USD $) | 1 Months Ended | ||||||
In Thousands, unless otherwise specified | 31-May-07 | 31-May-06 | Aug. 31, 2005 | Dec. 31, 2014 | Dec. 31, 2013 | 31-May-13 | Oct. 31, 2012 |
Debt Instrument [Line Items] | |||||||
Weighted Average Interest Rate of Linked Transactions | 2.09% | 1.87% | |||||
Whitney CLO I, Ltd. [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Purchased equity interests | $550 | $20,900 | |||||
Purchased equity interests discount, percentage | 42.50% | ||||||
Ownership interests in variable interest entity | 68.30% | 66.60% | |||||
Senior Notes Class A-1 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Description of variable rate basis | LIBOR | 3-month LIBOR | 3-month LIBOR | ||||
Basis spread on variable rate | 0.24% | 0.26% | 0.26% |
BORROWINGS_Apidos_CLO_VIII_Det
BORROWINGS (Apidos CLO VIII) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2011 |
Debt Instrument [Line Items] | |||
Weighted Average Interest Rate of Linked Transactions | 2.09% | 1.87% | |
Apidos CLO VIII Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Closing transaction amount | $350,000,000 | ||
Face amount of debt issued | 317,600,000 | ||
Discount to investors | 4.40% | ||
Percentage of senior note acquired by unrelated third party (in hundredths) | 57.00% | ||
Apidos CLO VIII Senior Notes [Member] | RCC Commercial [Member] | |||
Debt Instrument [Line Items] | |||
Purchased equity interests | $15,000,000 | ||
Percentage of senior note acquired from VIE (in hundredths) | 43.00% |
BORROWINGS_Apidos_Cinco_CDO_De
BORROWINGS (Apidos Cinco CDO) (Details) (USD $) | 1 Months Ended | 5 Months Ended | ||||
31-May-07 | 31-May-06 | Aug. 31, 2005 | 31-May-07 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ||||||
Weighted Average Interest Rate of Linked Transactions | 2.09% | 1.87% | ||||
Senior Notes Class A-1 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Description of variable rate basis | LIBOR | 3-month LIBOR | 3-month LIBOR | |||
Basis spread on variable rate | 0.24% | 0.26% | 0.26% | |||
Senior Notes Class A-2a [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Description of variable rate basis | LIBOR | |||||
Basis spread on variable rate | 0.23% | |||||
Senior Notes Class A-2b [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Description of variable rate basis | LIBOR | |||||
Basis spread on variable rate | 0.32% | |||||
Senior Notes Class A-3 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Description of variable rate basis | LIBOR | |||||
Basis spread on variable rate | 0.42% | |||||
Senior Notes Class B [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Description of variable rate basis | LIBOR | 3-month LIBOR | 3-month LIBOR | |||
Basis spread on variable rate | 0.80% | 0.75% | 0.75% | |||
Senior Notes Class C [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Description of variable rate basis | LIBOR | 3-month LIBOR | 3-month LIBOR | |||
Basis spread on variable rate | 2.25% | 1.75% | 1.85% | |||
Senior Notes Class D [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Description of variable rate basis | LIBOR | 3-month LIBOR | ||||
Basis spread on variable rate | 4.25% | 4.25% | ||||
Apidos Cinco CDO Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Closing transaction amount | 350,000,000 | $350,000,000 | ||||
Percentage of senior notes acquired by the parent | 100.00% | 100.00% | ||||
Weighted Average Interest Rate of Linked Transactions | 0.81% | 0.74% | ||||
Apidos Cinco CDO Senior Notes [Member] | Senior Notes Class A-1 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 37,500,000 | 37,500,000 | ||||
Apidos Cinco CDO Senior Notes [Member] | Senior Notes Class A-2a [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 200,000,000 | 200,000,000 | ||||
Apidos Cinco CDO Senior Notes [Member] | Senior Notes Class A-2b [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 22,500,000 | 22,500,000 | ||||
Apidos Cinco CDO Senior Notes [Member] | Senior Notes Class A-3 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 19,000,000 | 19,000,000 | ||||
Apidos Cinco CDO Senior Notes [Member] | Senior Notes Class B [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 18,000,000 | 18,000,000 | ||||
Apidos Cinco CDO Senior Notes [Member] | Senior Notes Class C [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 14,000,000 | 14,000,000 | ||||
Apidos Cinco CDO Senior Notes [Member] | Senior Notes Class D [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 11,000,000 | 11,000,000 | ||||
Apidos Cinco CDO Senior Notes [Member] | RCC Commercial [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Payments by parent to acquire notes issued by VIE | 28,000,000 | |||||
Apidos Cinco CDO Senior Notes [Member] | Apidos Cinco CDO Ltd [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 322,000,000 | $322,000,000 |
BORROWINGS_Apidos_CDO_III_Deta
BORROWINGS (Apidos CDO III) (Details) (USD $) | 1 Months Ended | 5 Months Ended | ||||
31-May-07 | 31-May-06 | Aug. 31, 2005 | 31-May-06 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ||||||
Weighted Average Interest Rate of Linked Transactions | 2.09% | 1.87% | ||||
Senior Notes Class A-1 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Description of variable rate basis | LIBOR | 3-month LIBOR | 3-month LIBOR | |||
Basis spread on variable rate | 0.24% | 0.26% | 0.26% | |||
Senior Notes Class A-2 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Description of variable rate basis | 3-month LIBOR | 3-month LIBOR | ||||
Basis spread on variable rate | 0.45% | 0.42% | ||||
Senior Notes Class B [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Description of variable rate basis | LIBOR | 3-month LIBOR | 3-month LIBOR | |||
Basis spread on variable rate | 0.80% | 0.75% | 0.75% | |||
Senior Notes Class C [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Description of variable rate basis | LIBOR | 3-month LIBOR | 3-month LIBOR | |||
Basis spread on variable rate | 2.25% | 1.75% | 1.85% | |||
Senior Notes Class D [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Description of variable rate basis | LIBOR | 3-month LIBOR | ||||
Basis spread on variable rate | 4.25% | 4.25% | ||||
Apidos CDO III Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Closing transaction amount | 285,500,000 | $285,500,000 | ||||
Face amount of debt issued | 262,500,000 | 262,500,000 | ||||
Weighted Average Interest Rate of Linked Transactions | 1.18% | 0.88% | ||||
Cumulative amount of debt paid down | 66,300,000 | |||||
Apidos CDO III Senior Notes [Member] | RCC Commercial [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Payments by parent to acquire notes issued by VIE | 23,000,000 | |||||
Percentage of senior notes acquired by the parent | 100.00% | 100.00% | ||||
Apidos CDO III Senior Notes [Member] | Senior Notes Class A-1 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 212,000,000 | 212,000,000 | ||||
Apidos CDO III Senior Notes [Member] | Senior Notes Class A-2 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 19,000,000 | 19,000,000 | ||||
Apidos CDO III Senior Notes [Member] | Senior Notes Class B [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 15,000,000 | 15,000,000 | ||||
Apidos CDO III Senior Notes [Member] | Senior Notes Class C [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 10,500,000 | 10,500,000 | ||||
Apidos CDO III Senior Notes [Member] | Senior Notes Class D [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 6,000,000 | $6,000,000 |
BORROWINGS_Apidos_CDO_I_Detail
BORROWINGS (Apidos CDO I) (Details) (USD $) | 1 Months Ended | ||||
31-May-07 | 31-May-06 | Aug. 31, 2005 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||||
Weighted Average Interest Rate of Linked Transactions | 2.09% | 1.87% | |||
Senior Notes Class A-1 [Member] | |||||
Debt Instrument [Line Items] | |||||
Description of variable rate basis | LIBOR | 3-month LIBOR | 3-month LIBOR | ||
Basis spread on variable rate | 0.24% | 0.26% | 0.26% | ||
Senior Notes Class A-2 [Member] | |||||
Debt Instrument [Line Items] | |||||
Description of variable rate basis | 3-month LIBOR | 3-month LIBOR | |||
Basis spread on variable rate | 0.45% | 0.42% | |||
Senior Notes Class B [Member] | |||||
Debt Instrument [Line Items] | |||||
Description of variable rate basis | LIBOR | 3-month LIBOR | 3-month LIBOR | ||
Basis spread on variable rate | 0.80% | 0.75% | 0.75% | ||
Senior Notes Class C [Member] | |||||
Debt Instrument [Line Items] | |||||
Description of variable rate basis | LIBOR | 3-month LIBOR | 3-month LIBOR | ||
Basis spread on variable rate | 2.25% | 1.75% | 1.85% | ||
Senior Notes Class D [Member] | |||||
Debt Instrument [Line Items] | |||||
Description of variable rate basis | LIBOR | 3-month LIBOR | |||
Basis spread on variable rate | 4.25% | 4.25% | |||
Apidos CDO I Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Closing transaction amount | 350,000,000 | ||||
Face amount of debt issued | 321,500,000 | ||||
Percentage of senior notes acquired by the parent | 100.00% | ||||
Weighted Average Interest Rate of Linked Transactions | 1.68% | ||||
Cumulative amount of debt paid down | 187,900,000 | ||||
Apidos CDO I Senior Notes [Member] | RCC Commercial [Member] | |||||
Debt Instrument [Line Items] | |||||
Payments by parent to acquire notes issued by VIE | 28,500,000 | ||||
Apidos CDO I Senior Notes [Member] | Senior Notes Class A-1 [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | 259,500,000 | ||||
Apidos CDO I Senior Notes [Member] | Senior Notes Class A-2 [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | 15,000,000 | ||||
Apidos CDO I Senior Notes [Member] | Senior Notes Class B [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | 20,500,000 | ||||
Apidos CDO I Senior Notes [Member] | Senior Notes Class C [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | 13,000,000 | ||||
Apidos CDO I Senior Notes [Member] | Senior Notes Class D [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | 8,000,000 | ||||
Interest rate at period end | 9.25% |
BORROWINGS_6_Convertible_Senio
BORROWINGS (6% Convertible Senior Notes) (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 21, 2013 | |
Debt Instrument [Line Items] | ||||
Payments on borrowings: | $52,663,000 | $0 | $0 | |
6% Convertible Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | 115,000,000 | |||
Debt instrument, interest rate, stated percentage | 6.00% | |||
Payments on borrowings: | 111,100,000 | |||
Unamortized discount | $4,900,000 | |||
Shares issuable upon conversion | 150.1502 | |||
Conversion price per common share | $6.66 |
BORROWINGS_Unsecured_Junior_Su
BORROWINGS (Unsecured Junior Subordinated Debentures) (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | 31-May-06 | Sep. 30, 2006 | |||
Debt Instrument [Line Items] | ||||||
Investments in unconsolidated entities | $59,827,000 | [1] | $69,069,000 | [1] | ||
Unamortized Issuance Costs and Discounts | 18,030,000 | 16,216,000 | ||||
Unsecured Junior Subordinated Debentures [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt issuance costs, amortization period | 10 years | |||||
Unamortized Issuance Costs and Discounts | 343,000 | [2] | 543,000 | [2] | ||
Unsecured Junior Subordinated Debentures [Member] | Interest in RCT I [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Investments in unconsolidated entities | 774,000 | |||||
Unsecured Junior Subordinated Debentures [Member] | Interest in RCT II [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Investments in unconsolidated entities | 774,000 | |||||
Unsecured Junior Subordinated Debentures [Member] | RCT I entity [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 25,800,000 | |||||
Unamortized Issuance Costs and Discounts | 160,000 | 261,000 | ||||
Interest rate at period end | 4.21% | 4.20% | ||||
Unsecured Junior Subordinated Debentures [Member] | RCT II entity [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 25,800,000 | |||||
Unamortized Issuance Costs and Discounts | $183,000 | $282,000 | ||||
Interest rate at period end | 4.18% | 4.19% | ||||
[1] | DecemberB 31, 2014DecemberB 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $25B $b Restricted cash$121,247B $61,372 Investments securities available-for-sale, pledged as collateral, at fair value119,203B 105,846 Loans held for sale282B 2,376Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,261,137B 1,219,569 Interest receivable8,941B 5,627 Prepaid expenses221B 247 Principal paydown receivable25,767B 6,821 Other assets(12)B b Total assets of consolidated VIEs$1,536,811B $1,401,858 | |||||
[2] | Amount represents junior subordinated debentures issued to RCT I and RCT II in May 2006 and September 2006, respectively. |
BORROWINGS_Repurchase_and_Cred
BORROWINGS (Repurchase and Credit Facilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 2.09% | 1.87% |
Long-term Debt, Gross | $1,716,871,000 | $1,319,810,000 |
Unamortized Issuance Costs and Discounts | 18,030,000 | 16,216,000 |
Repurchase Agreements [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 399,662,000 | |
Value of Collateral | 565,554,000 | |
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 | 61,189,000 | |
Value of Collateral | 95,511,000 | |
Number of Positions as Collateral | 104 | |
Weighted Average Interest Rate | 2.75% | |
Repurchase Agreements [Member] | Wells Fargo Securities, LLC [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 10,442,000 | 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, LLC [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 33,783,000 | 0 |
Value of Collateral | 44,751,000 | 0 |
Number of Positions as Collateral | 8 | 0 |
Weighted Average Interest Rate | 1.62% | 0.00% |
Repurchase Agreements [Member] | New Century Bank [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 41,387,000 | 11,916,000 |
Value of Collateral | 51,961,000 | 13,089,000 |
Number of Positions as Collateral | 158 | 74 |
Weighted Average Interest Rate | 2.82% | 4.17% |
Repurchase Agreements [Member] | ViewPoint Bank, NA [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 0 | 2,711,000 |
Value of Collateral | 0 | 3,398,000 |
Number of Positions as Collateral | 0 | 17 |
Weighted Average Interest Rate | 0.00% | 4.58% |
CMBS - Term Repurchase Facilities [Member] | Repurchase Agreements [Member] | Wells Fargo Bank, National Association [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 24,967,000 | 47,601,000 |
Value of Collateral | 30,180,000 | 56,949,000 |
Number of Positions as Collateral | 33 | 44 |
Weighted Average Interest Rate | 1.35% | 1.38% |
CRE - Term Repurchase Facility [Member] | Repurchase Agreements [Member] | Wells Fargo Bank, National Association [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 179,762,000 | 30,003,000 |
Value of Collateral | 258,223,000 | 48,186,000 |
Number of Positions as Collateral | 15 | 3 |
Weighted Average Interest Rate | 2.38% | 2.67% |
CRE - Term Repurchase Facility [Member] | Repurchase Agreements [Member] | Deutsche Bank Securities, LLC [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 25,920,000 | -300,000 |
Value of Collateral | 39,348,000 | 0 |
Number of Positions as Collateral | 2 | 0 |
Weighted Average Interest Rate | 2.78% | 0.00% |
RMBS - Term Repurchase Facility [Member] | Repurchase Agreements [Member] | Wells Fargo Bank, National Association [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 22,212,000 | |
Value of Collateral | $27,885,000 | |
Number of Positions as Collateral | 6 | |
Weighted Average Interest Rate | 1.16% |
BORROWINGS_Linked_Transactions
BORROWINGS (Linked Transactions) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
Debt Instrument [Line Items] | ||||
Value of Collateral Under Linked Transactions (2) | $15,367,000 | [1] | $30,066,000 | [1] |
Weighted Average Interest Rate of Linked Transactions | 2.09% | 1.87% | ||
CMBS - Term Repurchase Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Value of Collateral Under Linked Transactions (2) | 159,000 | [2] | 337,000 | [2] |
Repurchase Agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowings Under Linked Transactions | 399,662,000 | |||
Repurchase Agreements [Member] | Wells Fargo Bank, National Association [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowings Under Linked Transactions | 61,189,000 | |||
Number of Positions as Collateral Under Linked Transactions | 104 | |||
Weighted Average Interest Rate of Linked Transactions | 2.75% | |||
Repurchase Agreements [Member] | Wells Fargo Securities, LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowings Under Linked Transactions | 10,442,000 | 0 | ||
Number of Positions as Collateral Under Linked Transactions | 1 | 0 | ||
Weighted Average Interest Rate of Linked Transactions | 1.66% | 0.00% | ||
Repurchase Agreements [Member] | Deutsche Bank Securities, LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowings Under Linked Transactions | 33,783,000 | 0 | ||
Number of Positions as Collateral Under Linked Transactions | 8 | 0 | ||
Weighted Average Interest Rate of Linked Transactions | 1.62% | 0.00% | ||
Repurchase Agreements [Member] | CMBS - Term Repurchase Facilities [Member] | Wells Fargo Bank, National Association [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowings Under Linked Transactions | 24,967,000 | 47,601,000 | ||
Number of Positions as Collateral Under Linked Transactions | 33 | 44 | ||
Weighted Average Interest Rate of Linked Transactions | 1.35% | 1.38% | ||
Repurchase Agreements [Member] | CRE - Term Repurchase Facility [Member] | Wells Fargo Bank, National Association [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowings Under Linked Transactions | 179,762,000 | 30,003,000 | ||
Number of Positions as Collateral Under Linked Transactions | 15 | 3 | ||
Weighted Average Interest Rate of Linked Transactions | 2.38% | 2.67% | ||
Repurchase Agreements [Member] | CRE - Term Repurchase Facility [Member] | Deutsche Bank Securities, LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowings Under Linked Transactions | 25,920,000 | -300,000 | ||
Number of Positions as Collateral Under Linked Transactions | 2 | 0 | ||
Weighted Average Interest Rate of Linked Transactions | 2.78% | 0.00% | ||
Linked Transactions [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowings Under Linked Transactions | 33,397,000 | 64,094,000 | ||
Value of Collateral Under Linked Transactions (2) | 48,605,000 | 93,823,000 | ||
Linked Transactions [Member] | CMBS - Term Repurchase Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Value of Collateral Under Linked Transactions (2) | 20,000 | [2] | 38,000 | [2] |
Linked Transactions [Member] | CMBS - Term Repurchase Facilities [Member] | Wells Fargo Bank, National Association [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowings Under Linked Transactions | 4,941,000 | [2] | 6,506,000 | |
Value of Collateral Under Linked Transactions (2) | 6,371,000 | [2] | 8,345,000 | |
Number of Positions as Collateral Under Linked Transactions | 7 | 7 | ||
Weighted Average Interest Rate of Linked Transactions | 1.67% | 1.65% | ||
Linked Transactions [Member] | Repurchase Agreements [Member] | JP Morgan Securities, LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowings Under Linked Transactions | 0 | 17,020,000 | ||
Value of Collateral Under Linked Transactions (2) | 0 | 24,814,000 | ||
Number of Positions as Collateral Under Linked Transactions | 0 | 4 | ||
Weighted Average Interest Rate of Linked Transactions | 0.00% | 0.99% | ||
Linked Transactions [Member] | Repurchase Agreements [Member] | Wells Fargo Securities, LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowings Under Linked Transactions | 4,108,000 | 21,969,000 | ||
Value of Collateral Under Linked Transactions (2) | 6,233,000 | 30,803,000 | ||
Number of Positions as Collateral Under Linked Transactions | 2 | 9 | ||
Weighted Average Interest Rate of Linked Transactions | 1.37% | 1.19% | ||
Linked Transactions [Member] | Repurchase Agreements [Member] | Deutsche Bank Securities, LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowings Under Linked Transactions | 24,348,000 | 18,599,000 | ||
Value of Collateral Under Linked Transactions (2) | $36,001,000 | $29,861,000 | ||
Number of Positions as Collateral Under Linked Transactions | 10 | 9 | ||
Weighted Average Interest Rate of Linked Transactions | 1.57% | 1.43% | ||
[1] | DecemberB 31, 2014DecemberB 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $25B $b Restricted cash$121,247B $61,372 Investments securities available-for-sale, pledged as collateral, at fair value119,203B 105,846 Loans held for sale282B 2,376Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,261,137B 1,219,569 Interest receivable8,941B 5,627 Prepaid expenses221B 247 Principal paydown receivable25,767B 6,821 Other assets(12)B b Total assets of consolidated VIEs$1,536,811B $1,401,858 | |||
[2] | The Wells Fargo CMBS term facility borrowing includes $0 and $12,000, of deferred debt issuance costs as of DecemberB 31, 2014 and 2013, respectively. |
BORROWINGS_Amount_at_Risk_Unde
BORROWINGS (Amount at Risk Under Repurchase Facilities) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Debt Instrument [Line Items] | ||||
Weighted Average Remaining Maturity | 10 years 0 months | 13 years 1 month | ||
Weighted Average Interest Rate | 2.09% | 1.87% | ||
CMBS - Term Repurchase Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Remaining Maturity | 20 days | [1] | ||
Weighted Average Interest Rate | 1.35% | [1] | ||
RMBS - Term Repurchase Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Remaining Maturity | 1 day | [1] | ||
Weighted Average Interest Rate | 1.16% | [1] | ||
CRE - Term Repurchase Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Remaining Maturity | 20 days | [2] | 21 days | [2] |
Weighted Average Interest Rate | 2.43% | [2] | 2.67% | [2] |
Repurchase Agreements [Member] | Wells Fargo Bank, National Association [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Interest Rate | 2.75% | |||
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, LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Interest Rate | 1.62% | 0.00% | ||
Repurchase Agreements [Member] | New Century Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Interest Rate | 2.82% | 4.17% | ||
Linked and Non-linked Transactions [Member] | CMBS - Term Repurchase Facilities [Member] | Wells Fargo Bank, National Association [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount at Risk | 6,486 | [3] | 10,796 | [3] |
Weighted Average Remaining Maturity | 20 days | 21 days | ||
Weighted Average Interest Rate | 1.35% | 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 | 5,017 | |||
Weighted Average Remaining Maturity | 1 day | |||
Weighted Average Interest Rate | 1.16% | |||
Linked and Non-linked Transactions [Member] | CRE - Term Repurchase Facility [Member] | Wells Fargo Bank, National Association [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount at Risk | 76,148 | [3] | 20,718 | [3] |
Weighted Average Remaining Maturity | 20 days | 21 days | ||
Weighted Average Interest Rate | 2.38% | 2.67% | ||
Linked and Non-linked Transactions [Member] | CRE - Term Repurchase Facility [Member] | Deutsche Bank Securities, LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount at Risk | 13,017 | |||
Weighted Average Remaining Maturity | 19 days | |||
Weighted Average Interest Rate | 2.78% | |||
Linked and Non-linked Transactions [Member] | Repurchase Agreements [Member] | Wells Fargo Bank, National Association [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount at Risk | 6,902 | 8,925 | [3] | |
Weighted Average Remaining Maturity | 183 days | 2 days | ||
Weighted Average Interest Rate | 2.75% | 1.19% | ||
Linked and Non-linked Transactions [Member] | Repurchase Agreements [Member] | JP Morgan Securities, LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount at Risk | 0 | [3] | 7,882 | [3] |
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 | 2,127 | |||
Weighted Average Remaining Maturity | 9 days | |||
Weighted Average Interest Rate | 1.66% | |||
Linked and Non-linked Transactions [Member] | Repurchase Agreements [Member] | Deutsche Bank Securities, LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount at Risk | 11,810 | [3] | 11,418 | [3] |
Weighted Average Remaining Maturity | 20 days | 22 days | ||
Weighted Average Interest Rate | 1.62% | 1.43% | ||
Linked and Non-linked Transactions [Member] | Repurchase Agreements [Member] | New Century Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount at Risk | 853 | |||
Weighted Average Remaining Maturity | 242 days | |||
Weighted Average Interest Rate | 2.82% | |||
[1] | Amounts also include accrued interest expense of $12,000 and $22,000 related to CMBS repurchase facilities as of DecemberB 31, 2014 and 2013, respectively. Amount does not reflect CMBS repurchase agreement borrowings that are components of linked transactions. | |||
[2] | Amount also includes accrued interest expense of $198,000 and $26,000 related to CRE repurchase facilities as of DecemberB 31, 2014 and 2013, respectively. | |||
[3] | Equal to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense. |
BORROWINGS_Term_Repurchase_Fac
BORROWINGS (Term Repurchase Facilities) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | |||||||||
Dec. 31, 2014 | Apr. 02, 2013 | Jul. 19, 2013 | Mar. 08, 2005 | Jun. 30, 2014 | Oct. 31, 2014 | Dec. 31, 2013 | Feb. 27, 2012 | Apr. 01, 2013 | Sep. 30, 2014 | |||
option | option | |||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loan origination fee | 2.00% | |||||||||||
Unamortized Issuance Costs and Discounts | 18,030,000 | $16,216,000 | ||||||||||
Line of Credit Facility, Increase Borrowing Capacity | 400,000,000 | 150,000,000 | ||||||||||
CMBS - Term Repurchase Facilities [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Unamortized Issuance Costs and Discounts | 0 | [1] | ||||||||||
RMBS - Term Repurchase Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Unamortized Issuance Costs and Discounts | 36,000 | [1] | ||||||||||
CRE - Term Repurchase Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Unamortized Issuance Costs and Discounts | 1,958,000 | [2] | 1,033,000 | [2] | ||||||||
RCC Real Estate [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loan origination fee | 0.38% | |||||||||||
Maximum amount of facility | 250,000,000 | |||||||||||
Wells Fargo Bank, National Association [Member] | RCC Real Estate And RCC Commercial [Member] | CMBS - Term Repurchase Facilities [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument term | 2 years | |||||||||||
Debt instrument term, option to extend | 1 year | |||||||||||
Description of variable rate basis | one-month LIBOR | |||||||||||
Basis spread on variable rate | 1.00% | |||||||||||
Structuring fee, percent | 0.25% | |||||||||||
Line of credit facility, extension fee percentage (in hundredths) | 0.25% | |||||||||||
Wells Fargo Bank, National Association [Member] | RCC Real Estate [Member] | CMBS - Term Repurchase Facilities [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Unamortized Issuance Costs and Discounts | 0 | 12,000 | ||||||||||
Wells Fargo Bank, National Association [Member] | RCC Real Estate [Member] | RMBS - Term Repurchase Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Unamortized Issuance Costs and Discounts | 36,000 | |||||||||||
Wells Fargo Bank, National Association [Member] | RCC Real Estate [Member] | CRE - Term Repurchase Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument term | 18 months | |||||||||||
Debt instrument term, number of options to extend | 2 | |||||||||||
Debt instrument term, option to extend | 1 year | |||||||||||
Maximum amount of facility | 150,000,000 | |||||||||||
Unamortized Issuance Costs and Discounts | 1,700,000 | 732,000 | ||||||||||
Structuring fee | 101,000 | |||||||||||
Extension fee | 938,000 | |||||||||||
Debt Instrument, Fee Amount | 1,600,000 | |||||||||||
Deutsche Bank AG [Member] | CRE - Term Repurchase Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Judgment allowed against Company | 5,000,000 | |||||||||||
Deutsche Bank AG [Member] | RCC Real Estate [Member] | CMBS - Term Repurchase Facilities [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Unamortized Issuance Costs and Discounts | 268,000 | 300,000 | ||||||||||
Deutsche Bank AG [Member] | RCC Real Estate SPE 5 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument term | 12 months | |||||||||||
Debt instrument term, number of options to extend | 2 | |||||||||||
Debt instrument term, option to extend | 1 year | |||||||||||
Structuring fee, percent | 0.25% | |||||||||||
Line of credit facility, extension fee percentage (in hundredths) | 0.25% | |||||||||||
Maximum amount of facility | 200,000,000 | |||||||||||
Deutsche Bank AG [Member] | RCC Real Estate SPE 5 [Member] | CRE - Term Repurchase Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Judgment allowed against subsidiary | 100,000 | |||||||||||
Deutsche Bank Securities, Inc [Member] | RCC Real Estate [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument term | 12 months | |||||||||||
Maximum [Member] | Wells Fargo Bank, National Association [Member] | RCC Real Estate And RCC Commercial [Member] | CMBS - Term Repurchase Facilities [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount of debt issued | 100,000,000 | |||||||||||
Linked and Non-linked Transactions [Member] | Wells Fargo Bank, National Association [Member] | RCC Residential Portfolio Inc. and RCC Residential Portfolio TRS Inc. [Member] | RMBS - Term Repurchase Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount of debt issued | $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% | |||||||||||
[1] | Amounts also include accrued interest expense of $12,000 and $22,000 related to CMBS repurchase facilities as of DecemberB 31, 2014 and 2013, respectively. Amount does not reflect CMBS repurchase agreement borrowings that are components of linked transactions. | |||||||||||
[2] | Amount also includes accrued interest expense of $198,000 and $26,000 related to CRE repurchase facilities as of DecemberB 31, 2014 and 2013, respectively. |
BORROWINGS_Residential_Mortgag
BORROWINGS (Residential Mortgage Financing Agreements) (Details) (USD $) | 1 Months Ended | 12 Months Ended | |||
31-May-07 | 31-May-06 | Aug. 31, 2005 | Dec. 31, 2014 | Apr. 02, 2013 | |
Amendment | |||||
Debt Instrument [Line Items] | |||||
Judgment allowed against subsidiary or guarantor | $250,000 | ||||
Senior Notes Class A-1 [Member] | |||||
Debt Instrument [Line Items] | |||||
Description of variable rate basis | LIBOR | 3-month LIBOR | 3-month LIBOR | ||
Basis spread on variable rate | 0.24% | 0.26% | 0.26% | ||
RCC Real Estate [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility, maximum borrowing capacity | 250,000,000 | ||||
New Century Bank [Member] | Primary Capital Advisors LLC [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility, maximum borrowing capacity | 30,000,000 | ||||
Number of amendments to facility | 7 | ||||
Judgment allowed against subsidiary | 10,000 | ||||
Judgment allowed against subsidiary or guarantor | 50,000 | ||||
Minimum maintenance balance required to be maintained | 1,500,000 | ||||
ViewPoint Bank, NA [Member] | Primary Capital Advisors LLC [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility, maximum borrowing capacity | 15,000,000 | ||||
Number of amendments to facility | 5 | ||||
Description of variable rate basis | one month LIBOR | ||||
Basis spread on variable rate | 4.00% | ||||
Wells Fargo Bank, National Association [Member] | Primary Capital Advisors LLC [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility, maximum borrowing capacity | $75,000,000 | ||||
Minimum [Member] | New Century Bank [Member] | Primary Capital Advisors LLC [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.63% | ||||
Maximum [Member] | New Century Bank [Member] | Primary Capital Advisors LLC [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 4.88% |
BORROWINGS_Mortgage_Payable_De
BORROWINGS (Mortgage Payable) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $1,716,871 | $1,319,810 |
Mortgages [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $14,627 |
BORROWINGS_RCC_CRE_2014_Detail
BORROWINGS RCC CRE 2014 (Details) (USD $) | 1 Months Ended | |||||
31-May-07 | 31-May-06 | Aug. 31, 2005 | Jul. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ||||||
Weighted Average Interest Rate of Linked Transactions | 2.09% | 1.87% | ||||
Senior Notes Class C [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.25% | 1.75% | 1.85% | |||
Senior Notes Class B [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.80% | 0.75% | 0.75% | |||
RCC CRE Notes 2014 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Closing transaction amount | $353,900,000 | |||||
Face amount of debt issued | 253,300,000 | |||||
Percentage of senior notes acquired by the parent | 100.00% | |||||
Ownership interests in variable interest entity | 100.00% | |||||
Weighted Average Interest Rate of Linked Transactions | 1.45% | |||||
RCC CRE Notes 2014 [Member] | Senior Notes Class C [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 17,700,000 | |||||
Basis spread on variable rate | 4.25% | |||||
RCC CRE Notes 2014 [Member] | Senior Notes Class A [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 196,400,000 | |||||
Basis spread on variable rate | 1.05% | |||||
RCC CRE Notes 2014 [Member] | Senior Notes Class B [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 38,900,000 | |||||
Basis spread on variable rate | 2.50% | |||||
RCC Commercial [Member] | RCC CRE Notes 2014 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Payments by parent to acquire notes issued by VIE | 100,900,000 | |||||
RCC Commercial [Member] | RCC CRE Notes 2014 [Member] | Senior Notes Class C [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Payments by parent to acquire notes issued by VIE | $17,700,000 |
BORROWINGS_Moselle_CLO_SA_Deta
BORROWINGS Moselle CLO S.A. (Details) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Jun. 30, 2007 | Feb. 28, 2014 | Jun. 30, 2007 | Feb. 28, 2014 | Jun. 30, 2007 | Feb. 28, 2014 | Feb. 28, 2014 | Jun. 30, 2007 | Jun. 30, 2007 | Feb. 28, 2014 | Jun. 30, 2007 | Feb. 28, 2014 | Jun. 30, 2007 | Feb. 28, 2014 | Jun. 30, 2007 | Feb. 28, 2014 | Jun. 30, 2007 | Feb. 28, 2014 | Jun. 30, 2007 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 |
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] | 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 [Member] | |||
Senior Notes Class A-1E [Member] | Senior Notes Class A-1E [Member] | Senior Notes Class A-1L [Member] | Senior Notes Class A-1L [Member] | Senior Notes Class A-1LE [Member] | Senior Notes Class A-1LE [Member] | Senior Notes Class A-1LE [Member] | Senior Notes Class A-1LE USD [Member] [Member] | Senior Notes Class A-2E [Member] | Senior Notes Class A-2E [Member] | Senior Notes Class A-2L [Member] | Senior Notes Class A-2L [Member] | Senior Notes Class A-3E [Member] | Senior Notes Class A-3E [Member] | Senior Notes Class A-3L [Member] | Senior Notes Class A-3L [Member] | Senior Notes Class B-1E [Member] | Senior Notes Class B-1E [Member] | Senior Notes Class B-1L [Member] | Senior Notes Class B-1L [Member] | Class 1 Subordinated Notes [Member] | Class 2 Subordinated Notes [Member] | |||||
EUR (€) | USD ($) | USD ($) | EUR (€) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | |||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Percentage of outstanding notes purchased | 100.00% | 67.90% | ||||||||||||||||||||||||
Ownership percentage in VIE | 88.60% | |||||||||||||||||||||||||
Face amount of debt issued | € 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 | ||||||||||||||||
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 of Linked Transactions | 2.09% | 1.87% | 1.49% |
BORROWINGS_Senior_Secured_Revo
BORROWINGS Senior Secured Revolving Credit Facility (Details) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | |||||||||||
Jun. 30, 2014 | Dec. 31, 2014 | Apr. 02, 2013 | Mar. 08, 2005 | Jul. 19, 2013 | Dec. 31, 2014 | Oct. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Feb. 27, 2012 | Apr. 01, 2013 | Sep. 18, 2014 | ||||
option | option | ||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Loan origination fee | 2.00% | 2.00% | |||||||||||||
Weighted Average Interest Rate of Linked Transactions | 2.09% | 2.09% | 1.87% | ||||||||||||
Judgment allowed against subsidiary or guarantor | 250,000 | $250,000 | |||||||||||||
Line of Credit Facility, Increase Borrowing Capacity | 400,000,000 | 400,000,000 | 150,000,000 | ||||||||||||
RMBS - Term Repurchase Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Weighted Average Interest Rate of Linked Transactions | 1.16% | [1] | 1.16% | [1] | |||||||||||
CMBS - Term Repurchase Facilities [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Weighted Average Interest Rate of Linked Transactions | 1.35% | [1] | 1.35% | [1] | |||||||||||
CRE - Term Repurchase Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Weighted Average Interest Rate of Linked Transactions | 2.43% | [2] | 2.43% | [2] | 2.67% | [2] | |||||||||
Wells Fargo Bank, National Association [Member] | RMBS - Term Repurchase Facility [Member] | Linked and Non-linked Transactions [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Weighted Average Interest Rate of Linked Transactions | 1.16% | 1.16% | |||||||||||||
Wells Fargo Bank, National Association [Member] | CMBS - Term Repurchase Facilities [Member] | Linked and Non-linked Transactions [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Weighted Average Interest Rate of Linked Transactions | 1.35% | 1.35% | 1.38% | ||||||||||||
Wells Fargo Bank, National Association [Member] | CRE - Term Repurchase Facility [Member] | Linked and Non-linked Transactions [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Weighted Average Interest Rate of Linked Transactions | 2.38% | 2.38% | 2.67% | ||||||||||||
Deutsche Bank AG [Member] | CRE - Term Repurchase Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Judgment allowed against Company | 5,000,000 | 5,000,000 | |||||||||||||
Deutsche Bank Securities, Inc [Member] | CRE - Term Repurchase Facility [Member] | Linked and Non-linked Transactions [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Weighted Average Interest Rate of Linked Transactions | 2.78% | 2.78% | |||||||||||||
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] | |||||||||||||||
Face amount of debt issued | 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% | ||||||||||||||
RCC Real Estate And RCC Commercial [Member] | Wells Fargo Bank, National Association [Member] | CMBS - Term Repurchase Facilities [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument term | 2 years | ||||||||||||||
Debt instrument term, option to extend | 1 year | ||||||||||||||
Description of variable rate basis | one-month LIBOR | ||||||||||||||
Basis spread on variable rate | 1.00% | ||||||||||||||
Structuring fee, percent | 0.25% | 0.25% | |||||||||||||
Line of credit facility, extension fee percentage (in hundredths) | 0.25% | ||||||||||||||
RCC Real Estate [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Loan origination fee | 0.38% | ||||||||||||||
Revolving credit facility, maximum borrowing capacity | 250,000,000 | ||||||||||||||
RCC Real Estate [Member] | Wells Fargo Bank, National Association [Member] | CRE - Term Repurchase Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument term | 18 months | ||||||||||||||
Debt instrument term, option to extend | 1 year | ||||||||||||||
Revolving credit facility, maximum borrowing capacity | 150,000,000 | ||||||||||||||
Debt instrument term, number of options to extend | 2 | ||||||||||||||
Structuring fee | 101,000 | ||||||||||||||
Extension fee | 938,000 | ||||||||||||||
RCC Real Estate [Member] | Deutsche Bank Securities, Inc [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument term | 12 months | ||||||||||||||
Primary Capital Advisors LLC [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Weighted Average Interest Rate of Linked Transactions | 2.50% | ||||||||||||||
Primary Capital Advisors LLC [Member] | Wells Fargo Bank, National Association [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Revolving credit facility, maximum borrowing capacity | 75,000,000 | 75,000,000 | |||||||||||||
Weighted Average Interest Rate of Linked Transactions | 3.00% | ||||||||||||||
Primary Capital Advisors LLC [Member] | New Century Bank [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Judgment allowed against subsidiary | 10,000 | 10,000 | |||||||||||||
Revolving credit facility, maximum borrowing capacity | 30,000,000 | 30,000,000 | |||||||||||||
Number of amendments to facility | 7 | 7 | |||||||||||||
Judgment allowed against subsidiary or guarantor | 50,000 | 50,000 | |||||||||||||
Minimum maintenance balance required to be maintained | 1,500,000 | 1,500,000 | |||||||||||||
Primary Capital Advisors LLC [Member] | ViewPoint Bank, NA [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Description of variable rate basis | one month LIBOR | ||||||||||||||
Basis spread on variable rate | 4.00% | ||||||||||||||
Revolving credit facility, maximum borrowing capacity | 15,000,000 | 15,000,000 | |||||||||||||
Number of amendments to facility | 5 | 5 | |||||||||||||
RCC Real Estate SPE 5 [Member] | Deutsche Bank AG [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument term | 12 months | ||||||||||||||
Debt instrument term, option to extend | 1 year | ||||||||||||||
Structuring fee, percent | 0.25% | ||||||||||||||
Line of credit facility, extension fee percentage (in hundredths) | 0.25% | ||||||||||||||
Revolving credit facility, maximum borrowing capacity | 200,000,000 | ||||||||||||||
Debt instrument term, number of options to extend | 2 | ||||||||||||||
RCC Real Estate SPE 5 [Member] | Deutsche Bank AG [Member] | CRE - Term Repurchase Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Judgment allowed against subsidiary | 100,000 | 100,000 | |||||||||||||
Maximum [Member] | RCC Real Estate And RCC Commercial [Member] | Wells Fargo Bank, National Association [Member] | CMBS - Term Repurchase Facilities [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Face amount of debt issued | 100,000,000 | 100,000,000 | |||||||||||||
Maximum [Member] | Primary Capital Advisors LLC [Member] | New Century Bank [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 4.88% | ||||||||||||||
Minimum [Member] | Primary Capital Advisors LLC [Member] | New Century Bank [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 2.63% | ||||||||||||||
Revolving Credit Facility [Member] | Northport LLC [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Revolving credit facility, maximum borrowing capacity | 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 | ||||||||||||||
Ramp Up Period | 6 months | ||||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 11,500,000 | $11,500,000 | |||||||||||||
Revolving Credit Facility [Member] | Northport LLC [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 2.50% | ||||||||||||||
Revolving Credit Facility [Member] | Northport LLC [Member] | Prime Rate [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 3.25% | ||||||||||||||
Revolving Credit Facility [Member] | Northport LLC [Member] | Base Rate [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 1.50% | ||||||||||||||
Revolving Credit Facility [Member] | Maximum [Member] | Northport LLC [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Origination fee with establishment of line of credit facility (in hundredths) | 1.00% | ||||||||||||||
Commitment fee percentage on undrawn balance of notes | 35.00% | ||||||||||||||
Line of Credit Facility, Commitment Fee Percentage, Ramp Up Period | 0.50% | ||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage, Ramp Up Period | 35.00% | ||||||||||||||
Revolving Credit Facility [Member] | Minimum [Member] | Northport LLC [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Origination fee with establishment of line of credit facility (in hundredths) | 0.38% | ||||||||||||||
Commitment fee percentage on undrawn balance of notes | 35.00% | ||||||||||||||
Line of Credit Facility, Commitment Fee Percentage, Ramp Up Period | 0.38% | ||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage, Ramp Up Period | 35.00% | ||||||||||||||
[1] | Amounts also include accrued interest expense of $12,000 and $22,000 related to CMBS repurchase facilities as of DecemberB 31, 2014 and 2013, respectively. Amount does not reflect CMBS repurchase agreement borrowings that are components of linked transactions. | ||||||||||||||
[2] | Amount also includes accrued interest expense of $198,000 and $26,000 related to CRE repurchase facilities as of DecemberB 31, 2014 and 2013, respectively. |
BORROWINGS_Securitzation_Detai
BORROWINGS Securitzation (Details) (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 |
Debt Instrument [Line Items] | |
Shares issued from dividend reinvestment plan (in shares) | 5,500,000 |
Moselle CLO S.A. Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Cumulative amount of debt paid down | 0 |
Apidos Cinco CDO Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Cumulative amount of debt paid down | 100.3 |
Apidos CDO III Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Cumulative amount of debt paid down | 66.3 |
Apidos CDO I Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Cumulative amount of debt paid down | 187.9 |
RCC CRE Notes 2014 [Member] | |
Debt Instrument [Line Items] | |
Cumulative amount of debt paid down | 0 |
RREF CDO 2007-1 Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Cumulative amount of debt paid down | 151.7 |
RREF CDO 2006-1 Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Cumulative amount of debt paid down | 165.6 |
RCC CRE Notes 2013 [Member] | |
Debt Instrument [Line Items] | |
Cumulative amount of debt paid down | 34 |
STOCK_INCENTIVE_PLANS_AND_SHAR2
STOCK INCENTIVE PLANS AND SHARE ISSUANCE AND REPURCHASE (Details) (USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Jun. 23, 2011 | Jul. 31, 2007 | Mar. 21, 2013 |
Class of Stock [Line Items] | ||||
Shares issued from dividend reinvestment plan (in shares) | 5,500,000 | |||
Stock Issued During Period, Value, Dividend Reinvestment Plan | $30.30 | |||
Redeemable Preferred Stock Series C [Member] | ||||
Class of Stock [Line Items] | ||||
Stock issued during period (in shares) | 4,800,000 | |||
Weighted Average Offering Price | $24.21 | |||
Redeemable Preferred Stock Series B [Member] | ||||
Class of Stock [Line Items] | ||||
Stock issued during period (in shares) | 2,116,068 | |||
Weighted Average Offering Price | $23.86 | |||
Redeemable Preferred Stock Series A [Member] | ||||
Class of Stock [Line Items] | ||||
Stock issued during period (in shares) | 388,064 | |||
Weighted Average Offering Price | $24.05 | |||
2005 Stock Incentive Plan [Member] | ||||
Class of Stock [Line Items] | ||||
Number of share options authorized for issue (in shares) | 1,533,333 | |||
2007 Omnibus Equity Compensation Plan [Member] | ||||
Class of Stock [Line Items] | ||||
Number of share options authorized for issue (in shares) | 5,400,000 | 2,000,000 | ||
Dividend Reinvestment Plan March 21 2013 [Member] | Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Shares authorized for dividend reinvestment plan (in shares) | 20,000,000 |
STOCK_INCENTIVE_PLANS_AND_SHAR3
STOCK INCENTIVE PLANS AND SHARE ISSUANCE AND REPURCHASE Share Issuance (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
Redeemable Preferred Stock Series A [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, liquidation preference (in dollars per share) | $25 | $25 | |
Stock issued during period (in shares) | 388,064 | ||
Weighted Average Offering Price | $23.82 | ||
Number of Shares | 1,069,016 | 680,952 | |
Weighted Average Offering Price | $24.05 | ||
Redeemable Preferred Stock Series B [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, liquidation preference (in dollars per share) | $25 | $25 | |
Stock issued during period (in shares) | 2,116,068 | ||
Weighted Average Offering Price | $23.02 | ||
Number of Shares | 5,601,146 | 3,485,078 | |
Weighted Average Offering Price | $23.86 | ||
Redeemable Preferred Stock Series C [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, liquidation preference (in dollars per share) | $25 | $25 | |
Stock issued during period (in shares) | 4,800,000 | ||
Weighted Average Offering Price | $24.21 | ||
Number of Shares | 4,800,000 | ||
Weighted Average Offering Price | $24.21 |
SHAREBASED_COMPENSATION_Detail
SHARE-BASED COMPENSATION (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 24, 2014 | Apr. 02, 2013 | Aug. 25, 2011 | Dec. 12, 2013 | Oct. 30, 2013 | Jun. 06, 2013 | Mar. 08, 2013 | Feb. 02, 2013 | Aug. 07, 2013 | Mar. 21, 2013 | Mar. 30, 2014 | |
Restricted common stock and stock options [Abstract] | ||||||||||||||
Shares issued pursuant to the Management agreement (in shares) | 0 | 190,828 | 146,534 | |||||||||||
Incentive compensation value | $1,100,000 | $814,000 | ||||||||||||
Restricted 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 | 5,100,000 | 12,900,000 | |||||||||||
Stock Options [Member] | ||||||||||||||
Restricted common stock and stock options [Abstract] | ||||||||||||||
Options granted (in shares) | 0 | |||||||||||||
Weighted average remaining contractual term | 3 years | |||||||||||||
Loan Origination Performance Plan [Member] | Common Stock [Member] | ||||||||||||||
Restricted common stock and stock options [Abstract] | ||||||||||||||
Additional shares authorized upon meeting performance thresholds (in shares) | 70,728,000 | 336,000 | ||||||||||||
Share grants on achievement of performance threshold (in shares) | 112,000 | |||||||||||||
Dividends payable on performance shares granted | 21,000 | $258,000 | ||||||||||||
Annual Vesting, 100 Percent [Member] | 2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | ||||||||||||||
Restricted common stock and stock options [Abstract] | ||||||||||||||
Stock issued during period (shares) | 5,972 | 5,932 | 25,770 | 22,318 | 459,307 | |||||||||
Annual award vesting percentage (percent) | 100.00% | 100.00% | 100.00% | 33.30% | 33.30% | |||||||||
Annual Vesting, 50 Percent [Member] | 2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | ||||||||||||||
Restricted common stock and stock options [Abstract] | ||||||||||||||
Stock issued during period (shares) | 165,028 | |||||||||||||
Annual award vesting percentage (percent) | 50.00% | |||||||||||||
Annual Vesting, 33.3 Percent [Member] | 2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | ||||||||||||||
Restricted common stock and stock options [Abstract] | ||||||||||||||
Stock issued during period (shares) | 889,931 | 78,584 | 8,976 | 6,044 | ||||||||||
Annual award vesting percentage (percent) | 100.00% | 25.00% | 100.00% | |||||||||||
Annual Vesting, 66.6% Percent [Member] | 2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | ||||||||||||||
Restricted common stock and stock options [Abstract] | ||||||||||||||
Stock issued during period (shares) | 112,000 | |||||||||||||
Annual award vesting percentage (percent) | 66.60% |
SHAREBASED_COMPENSATION_Restri
SHARE-BASED COMPENSATION (Restricted Stock Activity) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
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) | -1,846,565 |
Forfeited (shares) | 0 |
Unvested shares, end of period (in shares) | 1,812,853 |
Employees [Member] | |
Restricted common stock transactions [Roll Forward] | |
Unvested shares, beginning of period (in shares) | 238,368 |
Issued (shares) | 22,318 |
Vested (shares) | -99,103 |
Forfeited (shares) | 0 |
Unvested shares, end of period (in shares) | 161,583 |
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) | -1,978,887 |
Forfeited (shares) | 0 |
Unvested shares, end of period (in shares) | 2,023,639 |
SHAREBASED_COMPENSATION_Status
SHARE-BASED COMPENSATION (Status of Unvested Stock Options) (Details) (Unvested [Member], USD $) | 12 Months Ended |
Dec. 31, 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) | $0.01 |
Vested (in dollars per share) | $0.01 |
Outstanding end of period (in dollars per share) | $0 |
SHAREBASED_COMPENSATION_Status1
SHARE-BASED COMPENSATION (Status of Vested Stock Options) (Details) (Vested [Member], USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 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) | 9 months 18 days |
Aggregate Intrinsic Value (in thousands) | $0 |
SHAREBASED_COMPENSATION_Compon
SHARE-BASED COMPENSATION (Components of Equity Compensation Expense) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $6,566,000 | $10,472,000 | $4,636,000 |
Manager and Non Employees [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | -2,000 | 6,000 | 2,000 |
Manager and Non Employees [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 5,679,000 | 10,142,000 | 4,522,000 |
Employees [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 633,000 | 106,000 | 0 |
Non Employee Directors [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $256,000 | $218,000 | $112,000 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Basic: [Abstract] | |||||||||||
Net income allocable to common shares | $44,027 | $39,232 | $63,199 | ||||||||
Weighted average number of shares outstanding | 128,031,064 | 118,478,672 | 88,410,272 | ||||||||
Basic net income per share (in dollars per share) | $0.05 | $0.06 | $0.12 | $0.12 | ($0.01) | $0.18 | $0.05 | $0.11 | $0.34 | $0.33 | $0.71 |
Diluted: [Abstract] | |||||||||||
Net income allocable to common shares | $44,027 | $39,232 | $63,199 | ||||||||
Weighted average number of shares outstanding | 128,031,064 | 118,478,672 | 88,410,272 | ||||||||
Additional shares due to assumed conversion of dilutive instruments | 1,228,322 | 1,560,301 | 874,216 | ||||||||
Adjusted weighted-average number of common shares outstanding | 129,259,386 | 120,038,973 | 89,284,488 | ||||||||
Diluted net income per share (in dollars per share) | $0.05 | $0.06 | $0.11 | $0.12 | ($0.01) | $0.18 | $0.05 | $0.11 | $0.34 | $0.33 | $0.71 |
Dilutive shares excluded from calculation of diluted net income per share | 17,267,273 | 3,999,505 | 641,666 |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE (LOSS) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
1-Jan-14 | ($14,043) | ||
Unrealized gains (losses) on derivatives, net | 1,906 | 4,045 | -1,476 |
Unrealized gains on available-for-sale securities, net | 13,937 | 10,858 | 18,770 |
Foreign currency translation adjustment | -608 | 196 | 0 |
Other comprehensive gain (loss) before reclassifications | 15,235 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | -282 | -395 | -227 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | -9,051 | 2,459 | -1,728 |
Amounts reclassified from accumulated other comprehensive income | 9,333 | ||
Net current-period other comprehensive income | 24,568 | ||
Unrealized gains (losses) on available-for-sale securities allocable to non-controlling interests | -4,482 | 0 | 0 |
31-Dec-14 | 6,043 | -14,043 | |
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 | 2,188 | ||
Unrealized gains (losses) on available-for-sale securities allocable to non-controlling interests | 0 | ||
31-Dec-14 | -8,967 | ||
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 | 22,988 | ||
Unrealized gains (losses) on available-for-sale securities allocable to non-controlling interests | -4,482 | ||
31-Dec-14 | 15,422 | ||
Foreign Currency Translation [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
1-Jan-14 | 196 | ||
Amounts reclassified from accumulated other comprehensive income | 0 | ||
Net current-period other comprehensive income | -608 | ||
Unrealized gains (losses) on available-for-sale securities allocable to non-controlling interests | 0 | ||
31-Dec-14 | ($412) |
THE_MANAGEMENT_AGREEMENT_Detai
THE MANAGEMENT AGREEMENT (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
period | |||
Management Agreement [Line Items] | |||
Monthly base management fee percent of total (percent) | 8.33% | ||
Investment management fee equity multiplier (percent) | 1.50% | ||
Incentive compensation multiplier (percent) | 25.00% | ||
Incentive Compensation, Weighted Average Price Share Multiplier, One | 2.00% | ||
Weighted average price share multiplier (percent) | 0.50% | ||
Weighted average price share multiplier, spread on multiplier, percentage of base rate (percent) | 25.00% | ||
Incentive compensation paid in common stock minimum holding period before sale | 1 year | ||
Average closing price period for shares traded on a Securities Exchange | 30 days | ||
Average closing price time period before issuance for shares traded on a Securities Exchange | 3 days | ||
Average closing price period for shares traded Over-The-Counter | 30 days | ||
Average closing price time period before issuance for shares traded Over-The-Counter | 3 days | ||
Director of Investor Relations percentage dedicated to company operations (percent) | 50.00% | ||
Percentage of salary and benefits company must pay for Director of Investor Relations (percent) | 50.00% | ||
Renewal period | 1 year | ||
Voting percentage of independent auditors required to cancel investment manager agreement (percent) | 66.66% | ||
Investment management agreement termination fee multiplier (percent) | 400.00% | ||
Number of 12-month periods for measurement of termination fee for investment management agreement | 2 | ||
Base investment management fee | $13,000,000 | $11,600,000 | $8,300,000 |
Shares issued pursuant to the Management agreement (in shares) | 0 | 190,828 | 146,534 |
Investment management fee | 2,100,000 | 9,600,000 | |
Payments for investments management fee | 1,500,000 | 8,200,000 | |
Investment management fee value | 484,000 | 1,400,000 | |
Investment management fee (in shares) | 80,189 | 257,173 | |
Base investment management fees payable | 1,200,000 | 1,000,000 | |
Reimbursable expenses | 121,000 | 166,000 | |
Incentive investment management fees due to a subsidiary | 123,000 | ||
Resource Capital Asset Management [Member] | |||
Management Agreement [Line Items] | |||
Base investment management fees paid to subsidiary (percent) | 10.00% | ||
CVC Credit Partners, LLC [Member] | |||
Management Agreement [Line Items] | |||
Incentive investment management fees paid by subsidiary (percent) | 50.00% | ||
Incentive investment management fees paid to subsidiary | 1,300,000 | 643,000 | 800,000 |
Investment management fees payable | 63,000 | 85,000 | |
Maximum [Member] | |||
Management Agreement [Line Items] | |||
Incentive compensation paid in cash (up to 75%) (percent) | 75.00% | ||
Minimum [Member] | |||
Management Agreement [Line Items] | |||
Incentive compensation paid in common stock (at least 25%) (percent) | 25.00% | ||
Percentage of incentive compensation that Manager may elect to receive in common stock (more than 25%) (percent) | 25.00% | ||
Subsidiaries [Member] | |||
Management Agreement [Line Items] | |||
Investment management fee | $123,000 | $3,700,000 |
RELATED_PARTY_TRANSACTIONS_Rel
RELATED PARTY TRANSACTIONS (Relationship with Resource America) (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 07, 2013 | Jun. 17, 2011 | Nov. 24, 2010 | |||
Related Party Transaction [Line Items] | ||||||||
Base management fees paid by the Company | $13,584,000 | $14,220,000 | $18,512,000 | |||||
General and administrative - Corporate | 15,263,000 | 12,304,000 | 9,773,000 | |||||
Purchase of securities, trading | -20,190,000 | -11,044,000 | -8,348,000 | |||||
Fair Value | 20,786,000 | [1] | 11,558,000 | [1] | ||||
Loan origination fee | 2.00% | |||||||
Equity in earnings (losses) of unconsolidated subsidiaries | 4,767,000 | 949,000 | -2,709,000 | |||||
Resource Capital Corp [Member] | Resource America [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of common shares of the Company owned by a related party (in shares) | 2,861,592 | |||||||
Ownership percentage (percent) | 2.20% | |||||||
Restricted stock options to purchase restricted shares in Company owned by a related party (shares) | 2,166 | |||||||
Resource Capital Corp [Member] | Manager pursuant to the Management Agreement [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Base management fees paid by the Company | 13,000,000 | 11,600,000 | 8,300,000 | |||||
Incentive management fees | 0 | 1,900,000 | 6,000,000 | |||||
General and administrative - Corporate | 5,000,000 | 3,800,000 | 3,600,000 | |||||
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% | |||||||
Total indebtedness | 1,600,000 | 1,600,000 | ||||||
Accrued base management fees | 1,200,000 | 997,000 | ||||||
Expense reimbursement payable | 480,000 | 572,000 | ||||||
Number of executed CDO transactions (transactions) | 8 | 7 | ||||||
Resource Capital Corp [Member] | Resource Capital Markets, Inc. [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Base management fees paid by the Company | 0 | 123,000 | 3,700,000 | |||||
Purchase of securities, trading | 8,200,000 | |||||||
Fair Value | 3,400,000 | 11,600,000 | ||||||
Share of net profits as per the Investment Management Agreement | 0 | 35,000 | 560,000 | |||||
Expense reimbursements | 164,000 | 258,000 | 167,000 | |||||
Total indebtedness | 121,000 | 289,000 | ||||||
Expense reimbursement payable | 166,000 | |||||||
Accrued incentive management fees payable | 123,000 | |||||||
Elevation Home Loans, LLC [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $830,000 | |||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 136,659 | |||||||
[1] | DecemberB 31, 2014DecemberB 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $25B $b Restricted cash$121,247B $61,372 Investments securities available-for-sale, pledged as collateral, at fair value119,203B 105,846 Loans held for sale282B 2,376Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,261,137B 1,219,569 Interest receivable8,941B 5,627 Prepaid expenses221B 247 Principal paydown receivable25,767B 6,821 Other assets(12)B b Total assets of consolidated VIEs$1,536,811B $1,401,858 |
RELATED_PARTY_TRANSACTIONS_Rel1
RELATED PARTY TRANSACTIONS (Relationship with LEAF Financial) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 15 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 05, 2010 | Jan. 11, 2013 | Feb. 15, 2012 | Sep. 03, 2011 | Mar. 05, 2011 | Jun. 03, 2011 | |||
Related Party Transaction [Line Items] | |||||||||||
Financing Receivable, Allowance for Credit Losses | $10,998,000 | $6,904,000 | |||||||||
Financing Receivable, Allowance for Credit Losses | 4,613,000 | 13,807,000 | 17,691,000 | ||||||||
Provision (recovery) for loan loss | 1,804,000 | 3,020,000 | |||||||||
Equity in earnings (losses) of unconsolidated subsidiaries | 4,767,000 | 949,000 | -2,709,000 | ||||||||
Investments in unconsolidated entities | 59,827,000 | [1] | 69,069,000 | [1] | |||||||
Lease Equity Appreciation Fund II [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Origination fee with establishment of line of credit facility (in hundredths) | 1.00% | ||||||||||
Resource Capital Corp [Member] | Lease Equity Appreciation Fund II [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Revolving credit facility, maximum borrowing capacity | 8,000,000 | ||||||||||
Line of credit facility, term (in years) | 1 year | ||||||||||
Line of credit facility, interest rate during period (in hundredths) | 12.00% | 10.00% | |||||||||
Line of credit facility, extension fee percentage (in hundredths) | 1.00% | 1.00% | 1.00% | ||||||||
LEAF Commercial Capital, Inc. [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Equity in earnings (losses) of unconsolidated subsidiaries | 1,600,000 | 183,000 | 3,300,000 | ||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | LEAF Commercial Capital, Inc. [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Investments in unconsolidated entities | $39,400,000 | $41,000,000 | |||||||||
[1] | DecemberB 31, 2014DecemberB 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $25B $b Restricted cash$121,247B $61,372 Investments securities available-for-sale, pledged as collateral, at fair value119,203B 105,846 Loans held for sale282B 2,376Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,261,137B 1,219,569 Interest receivable8,941B 5,627 Prepaid expenses221B 247 Principal paydown receivable25,767B 6,821 Other assets(12)B b Total assets of consolidated VIEs$1,536,811B $1,401,858 |
RELATED_PARTY_TRANSACTIONS_Rel2
RELATED PARTY TRANSACTIONS (Relationship with CVC Credit Partners, LLC) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2012 | Feb. 24, 2011 | Jul. 31, 2013 | Sep. 30, 2014 | |||
Entity | |||||||||
Related Party Transaction [Line Items] | |||||||||
Number of CLO issuers | 5 | ||||||||
Equity in earnings (losses) of unconsolidated subsidiaries | $4,767,000 | $949,000 | ($2,709,000) | ||||||
Investments in unconsolidated entities | 59,827,000 | [1] | 69,069,000 | [1] | |||||
Churchill Pacific Asset Management LLC [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Assets under management, carrying amount | 1,900,000,000 | ||||||||
CVC Credit Partners, LLC [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Asset management fees percentage (in hundredths) | 1.50% | ||||||||
Resource America [Member] | CVC Capital Partners [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Ownership percentage (percent) | 33.00% | ||||||||
Resource Capital Corp [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Preferred equity interest acquired | 66.60% | ||||||||
Resource Capital Corp [Member] | Churchill Pacific Asset Management LLC [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Ownership percentage (percent) | 100.00% | ||||||||
Purchase price of acquired entity paid by acquiring entity | 22,500,000 | ||||||||
Apidos Capital Management LLC [Member] | CVC Capital Partners [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Percentage of subordinated fees the company is entitled to collect (in hundredths) | 10.00% | ||||||||
Percentage of incentive fees the company is entitled to collect (in hundredths) | 50.00% | ||||||||
Subordinated fees received | 1,300,000 | 643,000 | 800,000 | ||||||
Whitney CLO I, Ltd. [Member] | RCC Commercial II [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Ownership percentage in VIE | 68.30% | ||||||||
CVC Global Credit Opportunities Fund, LP [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Ownership percentage (percent) | 27.70% | ||||||||
Investments in unconsolidated entities | 18,209,000 | 16,177,000 | |||||||
CVC Global Credit Opportunities Fund, LP [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Acquisition of membership interests | 15,000,000 | ||||||||
Investments in unconsolidated entities | 18,200,000 | 16,200,000 | |||||||
CVC Global Credit Opportunities Fund, LP [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Equity in earnings (losses) of unconsolidated subsidiaries | $2,000,000 | $1,200,000 | |||||||
[1] | DecemberB 31, 2014DecemberB 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $25B $b Restricted cash$121,247B $61,372 Investments securities available-for-sale, pledged as collateral, at fair value119,203B 105,846 Loans held for sale282B 2,376Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,261,137B 1,219,569 Interest receivable8,941B 5,627 Prepaid expenses221B 247 Principal paydown receivable25,767B 6,821 Other assets(12)B b Total assets of consolidated VIEs$1,536,811B $1,401,858 |
RELATED_PARTY_TRANSACTIONS_Rel3
RELATED PARTY TRANSACTIONS (Relationship with Resource Real Estate) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 11 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | |||||||||||
Jul. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Aug. 09, 2006 | Dec. 01, 2009 | 23-May-12 | Jun. 21, 2011 | 23-May-12 | Dec. 31, 2014 | Jan. 15, 2010 | Aug. 01, 2011 | Dec. 31, 2013 | Jun. 19, 2012 | |||||
Property | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Base management fees paid by the Company | $13,584,000 | $14,220,000 | $18,512,000 | |||||||||||||||||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | 16,600,000 | |||||||||||||||||||
Equity in net (earnings) losses of unconsolidated subsidiaries | -4,767,000 | -949,000 | 2,709,000 | |||||||||||||||||
Loans receivablebrelated party | 1,277,000 | [1] | 6,966,000 | [1] | 1,277,000 | [1] | 6,966,000 | [1] | ||||||||||||
Placement Agent Fee | 175,000 | |||||||||||||||||||
Resource America [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Payments to Acquire Additional Interest in Subsidiaries | 2,800,000 | |||||||||||||||||||
Resource Real Estate Funding CDO 2006-1 [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Description of variable rate basis | LIBOR | |||||||||||||||||||
Basis spread on variable rate | 3.50% | |||||||||||||||||||
Variable rate basis, floor | 2.50% | |||||||||||||||||||
Pelium [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Acquisition of membership interests | 17,500,000 | |||||||||||||||||||
Ownership percentage (percent) | 74.10% | 80.40% | 74.10% | |||||||||||||||||
Payments to Acquire Additional Interest in Subsidiaries | 2,500,000 | |||||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 10.00% | |||||||||||||||||||
Ownership Percentage, Duration | 5 years | |||||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest Increase | 20.00% | |||||||||||||||||||
Partners' Capital Account, Contributions | 40,000,000 | |||||||||||||||||||
RRE VIP Borrower, LLC [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Acquisition of membership interests | 2,100,000 | |||||||||||||||||||
SLH Partners [Member] | Resource Capital Corp [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Amount of loan to related party | 7,000,000 | |||||||||||||||||||
Equity in net (earnings) losses of unconsolidated subsidiaries | -912,000 | |||||||||||||||||||
Ownership percentage (percent) | 10.00% | |||||||||||||||||||
Loans receivable - related party, principal payments | 7,000,000 | |||||||||||||||||||
Equity method investments | 975,000 | 975,000 | ||||||||||||||||||
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 | |||||||||||||||||||
Varde Investment Partners, LP [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Equity in net (earnings) losses of unconsolidated subsidiaries | 20,000 | -148,000 | 135,000 | |||||||||||||||||
Ownership percentage (percent) | 7.50% | |||||||||||||||||||
Number of condominium developments purchased by joint venture | 2 | |||||||||||||||||||
Resource Real Estate [Member] | Commercial Real Estate Loans [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Payable to related party | 100,000 | 0 | 100,000 | 0 | ||||||||||||||||
Lynnfield Place [Member] | RCC Real Estate [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Amount of loan to related party | 22,400,000 | |||||||||||||||||||
Resource Real Estate Management, LLC [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Asset management fees percentage (in hundredths) | 1.00% | 1.00% | ||||||||||||||||||
Base management fees paid by the Company | 0 | 38,000 | 39,000 | |||||||||||||||||
Resource Real Estate Management, LLC [Member] | RCC Real Estate [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Asset management fees percentage (in hundredths) | 4.00% | 4.00% | ||||||||||||||||||
Base management fees paid by the Company | 127,000 | 136,000 | 136,000 | |||||||||||||||||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | 1,900,000 | |||||||||||||||||||
Resource Real Estate Management, LLC [Member] | Resource Capital Corp [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Base management fees paid by the Company | 0 | 151,000 | 167,000 | |||||||||||||||||
Resource Real Estate Management, LLC [Member] | RRE VIP Borrower, LLC [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Asset management fees percentage (in hundredths) | 1.00% | 1.00% | ||||||||||||||||||
Base management fees paid by the Company | 6,000 | 28,000 | 45,000 | |||||||||||||||||
Equity in net (earnings) losses of unconsolidated subsidiaries | -3,500,000 | -278,000 | -683,000 | |||||||||||||||||
Resource Real Estate Management, LLC [Member] | SLH Partners [Member] | Resource Capital Corp [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Asset management fees percentage (in hundredths) | 2.00% | 2.00% | ||||||||||||||||||
Resource Capital Partners Inc [Member] | Resource Capital Corp [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Amount of loan to related party | 2,000,000 | |||||||||||||||||||
Related party loan, stated interest rate (in hundredths) | 8.00% | 8.00% | ||||||||||||||||||
Related party loan, additional interest in addition to stated interest rate (in hundredths) | 5.00% | 5.00% | ||||||||||||||||||
Loans receivable - related party, principal payments | 391,000 | 621,000 | ||||||||||||||||||
Loans receivablebrelated party | 558,000 | 950,000 | 558,000 | 950,000 | ||||||||||||||||
Resource Real Estate Opportunity Fund, L.P. [Member] | Resource America [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Ownership percentage (percent) | 5.00% | |||||||||||||||||||
Whispertree Apartments [Member] | RCC Real Estate [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Purchase price of acquired entity paid by acquiring entity | 18,100,000 | |||||||||||||||||||
Maximum management fee entitlement | 12,600 | 12,600 | ||||||||||||||||||
RCC CRE Notes 2013 [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Closing transaction amount | 353,900,000 | 307,800,000 | 307,800,000 | |||||||||||||||||
Special Servicing Fee Rate | 0.25% | 0.25% | ||||||||||||||||||
Placement Agent Fee | $205,000 | |||||||||||||||||||
[1] | DecemberB 31, 2014DecemberB 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $25B $b Restricted cash$121,247B $61,372 Investments securities available-for-sale, pledged as collateral, at fair value119,203B 105,846 Loans held for sale282B 2,376Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,261,137B 1,219,569 Interest receivable8,941B 5,627 Prepaid expenses221B 247 Principal paydown receivable25,767B 6,821 Other assets(12)B b Total assets of consolidated VIEs$1,536,811B $1,401,858 |
RELATED_PARTY_TRANSACTIONS_Rel4
RELATED PARTY TRANSACTIONS (Relationship with Law Firm) (Details) (Resource Capital Corp [Member], Ledgewood [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Resource Capital Corp [Member] | Ledgewood [Member] | |||
Related Party Transaction [Line Items] | |||
Legal fees | $280 | $360 | $438 |
DISTRIBUTIONS_Details
DISTRIBUTIONS (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 |
Class of Stock [Line Items] | ||||||||||||||||||
Dividend Per Share | $0.80 | $0.80 | $0.80 | |||||||||||||||
Preferred Shares - Series A [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Total Dividend Paid | $568 | $537 | $537 | $463 | $362 | $362 | $359 | $359 | $359 | $359 | $93 | $0 | ||||||
Dividend Per Share | $0.53 | $0.53 | $0.53 | $0.53 | $0.53 | $0.53 | $0.53 | $0.53 | $0.53 | $0.53 | $0.27 | $0 | ||||||
Preferred Shares - Series B [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Total Dividend Paid | 2,888 | 2,430 | 2,378 | 2,057 | 1,797 | 1,662 | 1,584 | 1,152 | 576 | 160 | 0 | 0 | ||||||
Dividend Per Share | $0.52 | $0.52 | $0.52 | $0.52 | $0.52 | $0.52 | $0.52 | $0.52 | $0.52 | $0.16 | $0 | $0 | ||||||
Series C Preferred Stock [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Total Dividend Paid | 2,588 | 2,588 | 1,437 | 0 | ||||||||||||||
Dividend Per Share | $0.54 | $0.54 | $0.03 | $0 | ||||||||||||||
Common Stock [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Total Dividend Paid | $26,563 | $26,629 | $26,179 | $25,663 | $25,536 | $21,024 | $25,447 | $25,399 | $21,634 | $19,897 | $17,253 | $16,921 | ||||||
Dividend Per Share | $0.20 | $0.20 | $0.20 | $0.20 | $0.20 | $0.20 | $0.20 | $0.20 | $0.20 | $0.20 | $0.20 | $0.20 |
FAIR_VALUE_OF_FINANCIAL_INSTRU2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Outstanding Borrowings | $1,716,871,000 | $1,319,810,000 | ||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | 7,500,000 | |||
Net impairment losses recognized in earnings | 0 | 855,000 | 180,000 | |
Provision for loan losses | 1,804,000 | 3,020,000 | 16,818,000 | |
Principal Outstanding | 1,734,901,000 | 1,336,026,000 | ||
Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Warrants Not Settleable in Cash, Fair Value Disclosure | 898,000 | |||
Interest Rate Derivative Assets, at Fair Value | 970,000 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Out of Level 2 | 31,545,000 | |||
Transfers into level 3 | 0 | |||
Principal Outstanding | 111,137,000 | |||
Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Moselle CLO Notes | 68,940,000 | |||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Moselle CLO Notes | 68,940,000 | |||
Nonrecurring [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Provision for loan losses | 1,300,000 | 3,100,000 | 7,800,000 | |
CMBS [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net impairment losses recognized in earnings | 0 | 328,000 | 42,000 | |
Moselle CLO [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Outstanding Borrowings | 176,871,000 | |||
Apidos Cinco CDO Senior Notes [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Outstanding Borrowings | 255,463,000 | 321,147,000 | ||
Cumulative amount of debt paid down | 100,300,000 | |||
Principal Outstanding | 255,664,000 | 322,000,000 | ||
Moselle CLO S.A. Senior Notes [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Outstanding Borrowings | 63,321,000 | |||
Cumulative amount of debt paid down | 0 | |||
Principal Outstanding | 63,321,000 | |||
Moselle CLO S.A. Securitized Borrowings [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Outstanding Borrowings | 5,619,000 | |||
Principal Outstanding | $5,619,000 |
FAIR_VALUE_OF_FINANCIAL_INSTRU3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
Assets: | ||||
Investment securities, trading | $20,786,000 | [1] | $11,558,000 | [1] |
Investment securities available-for-sale | 275,720,000 | 215,206,000 | ||
CMBS - linked transactions | 15,367,000 | [1] | 30,066,000 | [1] |
Derivatives (net) | 5,304,000 | [1] | 0 | [1] |
Fair Value, Measurements, Recurring [Member] | ||||
Assets: | ||||
Investment securities, trading | 20,786,000 | 11,558,000 | ||
Investment securities available-for-sale | 275,720,000 | 209,837,000 | ||
CMBS - linked transactions | 15,367,000 | 30,066,000 | ||
Derivatives (net) | 5,304,000 | |||
Total assets at fair value | 317,177,000 | 251,461,000 | ||
Liabilities: | ||||
Moselle CLO Notes | 68,940,000 | |||
Derivatives (net) | 8,476,000 | 10,586,000 | ||
Total liabilities at fair value | 77,416,000 | 10,586,000 | ||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||||
Assets: | ||||
Investment securities, trading | 0 | 0 | ||
Investment securities available-for-sale | 0 | 2,370,000 | ||
CMBS - linked transactions | 0 | 0 | ||
Derivatives (net) | 3,429,000 | |||
Total assets at fair value | 3,429,000 | 2,370,000 | ||
Liabilities: | ||||
Moselle CLO Notes | 0 | |||
Derivatives (net) | 0 | 0 | ||
Total liabilities at fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Assets: | ||||
Investment securities, trading | 0 | 0 | ||
Investment securities available-for-sale | 33,158,000 | 92,000 | ||
CMBS - linked transactions | 0 | 0 | ||
Derivatives (net) | 7,000 | |||
Total assets at fair value | 33,165,000 | 92,000 | ||
Liabilities: | ||||
Moselle CLO Notes | 0 | |||
Derivatives (net) | 0 | 395,000 | ||
Total liabilities at fair value | 0 | 395,000 | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||||
Assets: | ||||
Investment securities, trading | 20,786,000 | 11,558,000 | ||
Investment securities available-for-sale | 242,562,000 | 207,375,000 | ||
CMBS - linked transactions | 15,367,000 | 30,066,000 | ||
Derivatives (net) | 1,868,000 | |||
Total assets at fair value | 280,583,000 | 248,999,000 | ||
Liabilities: | ||||
Moselle CLO Notes | 68,940,000 | |||
Derivatives (net) | 8,476,000 | 10,191,000 | ||
Total liabilities at fair value | $77,416,000 | $10,191,000 | ||
[1] | DecemberB 31, 2014DecemberB 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $25B $b Restricted cash$121,247B $61,372 Investments securities available-for-sale, pledged as collateral, at fair value119,203B 105,846 Loans held for sale282B 2,376Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,261,137B 1,219,569 Interest receivable8,941B 5,627 Prepaid expenses221B 247 Principal paydown receivable25,767B 6,821 Other assets(12)B b Total assets of consolidated VIEs$1,536,811B $1,401,858 |
FAIR_VALUE_OF_FINANCIAL_INSTRU4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets Measured on Recurring Basis) (Details) (Level 3 [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance, January 1 | $248,999 |
Total gains or losses (realized or unrealized): | |
Included in earnings | 301 |
Purchases | 253,377 |
Sales | -151,483 |
Paydowns | -58,809 |
Issuances | 0 |
Settlements | 0 |
Included in OCI | 17,875 |
Transfers into Level 2 | -31,545 |
Transfers into level 3 | 0 |
Ending balance, December 31 | 278,715 |
Asset-backed Securities [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance, January 1 | 26,656 |
Total gains or losses (realized or unrealized): | |
Included in earnings | 3,740 |
Purchases | 79,289 |
Sales | -38,262 |
Paydowns | -11,928 |
Issuances | 0 |
Settlements | 0 |
Included in OCI | 12,662 |
Transfers into Level 2 | 0 |
Transfers into level 3 | 0 |
Ending balance, December 31 | 72,157 |
RMBS [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance, January 1 | 451 |
Total gains or losses (realized or unrealized): | |
Included in earnings | -36 |
Purchases | 31,058 |
Sales | 0 |
Paydowns | -825 |
Issuances | 0 |
Settlements | 0 |
Included in OCI | 897 |
Transfers into Level 2 | -31,545 |
Transfers into level 3 | 0 |
Ending balance, December 31 | 0 |
Structured Notes [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance, January 1 | 11,107 |
Total gains or losses (realized or unrealized): | |
Included in earnings | -3,638 |
Purchases | 19,359 |
Sales | -2,396 |
Paydowns | -2,165 |
Issuances | 0 |
Settlements | 0 |
Included in OCI | -1,481 |
Transfers into Level 2 | 0 |
Transfers into level 3 | 0 |
Ending balance, December 31 | 20,786 |
CMBS | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance, January 1 | 210,785 |
Total gains or losses (realized or unrealized): | |
Included in earnings | 235 |
Purchases | 123,671 |
Sales | -110,825 |
Paydowns | -43,891 |
Issuances | 0 |
Settlements | 0 |
Included in OCI | 5,797 |
Transfers into Level 2 | 0 |
Transfers into level 3 | 0 |
Ending balance, December 31 | $185,772 |
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 $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
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 | $14,077 |
Unrealized losses b included in accumulated other comprehensive income | -1,715 | -3,886 |
Ending balance | $8,476 | $10,191 |
FAIR_VALUE_OF_FINANCIAL_INSTRU6
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities, Quantitative Information) (Details) (Nonrecurring [Member], USD $) | Dec. 31, 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 | $36,956 | $21,916 |
Impaired loans | 139,489 | 225 |
Total assets at fair value | 176,445 | 22,141 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale | 0 | 0 |
Impaired loans | 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 | 36,956 | 6,850 |
Impaired loans | 1,678 | 225 |
Total assets at fair value | 38,634 | 7,075 |
Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale | 0 | 15,066 |
Impaired loans | 137,811 | 0 |
Total assets at fair value | $137,811 | $15,066 |
FAIR_VALUE_OF_FINANCIAL_INSTRU7
FAIR VALUE OF FINANCIAL INSTRUMENTS (Significant Observable Outputs) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Discounted Cash Flow Technique [Member] | Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value at December 31, 2014 | $8,476 | |
Interest Rate Swap [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Average fixed interest rate (in hundredths) | 5.03% | |
Interest Rate Swap [Member] | Discounted Cash Flow Technique [Member] | Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Average fixed interest rate (in hundredths) | 5.12% |
FAIR_VALUE_OF_FINANCIAL_INSTRU8
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value, by Balance Sheet Grouping) (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Principal Outstanding | $1,734,901 | $1,336,026 | |||
Loans held-for-investment | 1,925,980 | [1] | 1,369,526 | [1] | |
Loans receivable-related party | 1,277 | [1] | 6,966 | [1] | |
CDO notes | 1,046,493 | 1,070,339 | |||
Long-term Debt, Gross | 1,716,871 | 1,319,810 | |||
Junior subordinated notes | 51,005 | ||||
Repurchase agreements | 399,662 | 77,304 | |||
Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Principal Outstanding | 111,137 | ||||
Loans held-for-investment | 1,909,019 | 1,358,434 | |||
Loans receivable-related party | 1,277 | 6,966 | |||
CDO notes | 975,762 | 653,617 | |||
Junior subordinated notes | 17,699 | 17,499 | |||
Repurchase agreements | 399,662 | 77,304 | |||
Level 1 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Principal Outstanding | 0 | ||||
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 | |||
Level 2 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Principal Outstanding | 0 | ||||
Loans held-for-investment | 570,071 | 545,352 | |||
Loans receivable-related party | 0 | 0 | |||
CDO notes | 0 | 653,617 | |||
Junior subordinated notes | 0 | 0 | |||
Repurchase agreements | 0 | 0 | |||
Level 3 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Principal Outstanding | 111,137 | ||||
Loans held-for-investment | 1,338,948 | 813,082 | |||
Loans receivable-related party | 1,277 | 6,966 | |||
CDO notes | 975,762 | 0 | |||
Junior subordinated notes | 17,699 | 17,499 | |||
Repurchase agreements | 399,662 | 77,304 | |||
Unsecured Junior Subordinated Debentures [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Principal Outstanding | 51,548 | [2] | 51,548 | [2] | |
Long-term Debt, Gross | 51,205 | [2] | 51,005 | [2] | |
Senior Secured Revolving Credit Agreement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Principal Outstanding | 113,500 | ||||
Long-term Debt, Gross | $111,137 | ||||
[1] | DecemberB 31, 2014DecemberB 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $25B $b Restricted cash$121,247B $61,372 Investments securities available-for-sale, pledged as collateral, at fair value119,203B 105,846 Loans held for sale282B 2,376Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,261,137B 1,219,569 Interest receivable8,941B 5,627 Prepaid expenses221B 247 Principal paydown receivable25,767B 6,821 Other assets(12)B b Total assets of consolidated VIEs$1,536,811B $1,401,858 | ||||
[2] | Amount represents junior subordinated debentures issued to RCT I and RCT II in May 2006 and September 2006, respectively. |
MARKET_RISK_AND_DERIVATIVE_INS2
MARKET RISK AND DERIVATIVE INSTRUMENTS (Details) (USD $) | 10 Months Ended | 12 Months Ended | 36 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2008 | Dec. 31, 2012 | Sep. 30, 2008 | Sep. 30, 2008 | Dec. 31, 2007 | Dec. 31, 2006 | |
Derivative | Derivative | |||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Notional amount | $492,000 | $492,000 | ||||||||
Fair Value | -8,466,000 | -8,466,000 | -10,586,000 | |||||||
Gain on terminated hedges to be recognized in the next twelve months | 273,000 | |||||||||
Number of hedges terminated | 18 | 18 | ||||||||
Warrant Exercise Price | 50,000,000 | |||||||||
Amount of net interest expense for hedges the Company expects to pay over the next twelve months | 5,700,000 | |||||||||
Expense recognized in earnings for amortization of gains and losses on terminated hedges | 282,000 | 288,000 | 279,000 | |||||||
Warrant, Term | 7 years | |||||||||
Interest Rate Swap [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Number of derivative instruments held | 10 | 10 | 12 | |||||||
Average fixed interest rate (in hundredths) | 5.03% | |||||||||
Notional amount | 124,017,000 | 124,017,000 | 129,497,000 | 135,241,000 | 45,000,000 | 135,241,000 | ||||
Fair Value | 8,700,000 | 8,700,000 | 10,600,000 | |||||||
Unrealized losses on non-designated derivative instruments | 9,000,000 | 10,800,000 | ||||||||
Gain (loss) on swap termination | -4,200,000 | -574,000 | 2,600,000 | -119,000 | ||||||
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% | 5.12% | ||||||||
Maximum [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Warrant Conversation, Percentage | 1.30% | |||||||||
Derivative, Price Risk Option Strike Price | 128.5 | 128.5 | ||||||||
Minimum [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Derivative, Price Risk Option Strike Price | 127 | 127 |
MARKET_RISK_AND_DERIVATIVE_INS3
MARKET RISK AND DERIVATIVE INSTRUMENTS (Fair Value and Classification of Derivatives) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2008 |
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset, Notional Amount | $0 | |||
Notional Amount | 492 | |||
Fair Value | 8,466 | 10,586 | ||
Gross Amounts of Recognized Assets | 4,334 | 0 | ||
Derivative Liability, Notional Amount | 15,000 | 0 | ||
Gross Amounts of Recognized Liabilities | 8,466 | 10,586 | ||
Derivatives, at fair value [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Gross Amounts of Recognized Assets | 0 | |||
Gross Amounts of Recognized Liabilities | 47 | 0 | ||
Interest Rate Lock Commitments [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset, Notional Amount | 59,467 | 0 | ||
Notional Amount | 60,265 | |||
Gross Amounts of Recognized Assets | 970 | 0 | ||
Derivative Liability, Notional Amount | 798 | 0 | ||
Gross Amounts of Recognized Liabilities | 10 | 0 | ||
Interest Rate Lock Commitments [Member] | Net Realized Gain on Sales of Investment Securities Available-for-sale and Loans [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | 960 | |||
Interest Rate Swap [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 124,017 | 129,497 | 135,241 | 45,000 |
Fair Value | -8,700 | -10,600 | ||
Derivative Liability, Notional Amount | 124,017 | 129,497 | ||
Gross Amounts of Recognized Liabilities | 8,680 | 10,586 | ||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | 8,680 | 10,586 | ||
Interest Rate Swap [Member] | Interest Expense [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | 6,555 | |||
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | -6,751 | -7,266 | ||
Forward Contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset, Notional Amount | 5,000 | 0 | ||
Notional Amount | 159,692 | |||
Gross Amounts of Recognized Assets | 7 | 0 | ||
Derivative Liability, Notional Amount | 154,692 | 0 | ||
Gross Amounts of Recognized Liabilities | 1,036 | 0 | ||
Forward Contracts [Member] | Net Realized Gain on Sales of Investment Securities Available-for-sale and Loans [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | -1,029 | |||
RMBS [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset, Notional Amount | 42,614 | |||
Notional Amount | 42,614 | |||
Gross Amounts of Recognized Assets | 1,297 | |||
RMBS [Member] | Net Realized Gain on Sales of Investment Securities Available-for-sale and Loans [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | 1,297 | |||
Foreign Exchange Forward [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset, Notional Amount | 54,948 | 0 | ||
Notional Amount | 54,948 | |||
Gross Amounts of Recognized Assets | 3,377 | 0 | ||
Derivative Liability, Notional Amount | 0 | 0 | ||
Gross Amounts of Recognized Liabilities | 0 | 0 | ||
Foreign Exchange Forward [Member] | Net Realized Gain on Sales of Investment Securities Available-for-sale and Loans [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | 3,377 | |||
US Treasury Securities [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset, Notional Amount | 90 | |||
Notional Amount | 90 | |||
Gross Amounts of Recognized Assets | 52 | |||
US Treasury Securities [Member] | Net Realized Gain on Sales of Investment Securities Available-for-sale and Loans [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | -28 | |||
Other Contract [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 15,000 | |||
Other Contract [Member] | Net Realized Gain on Sales of Investment Securities Available-for-sale and Loans [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | -47 | |||
Warrant [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset, Notional Amount | 492 | |||
Gross Amounts of Recognized Assets | 898 | |||
Warrant [Member] | Net Realized Gain on Sales of Investment Securities Available-for-sale and Loans [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | $898 |
MARKET_RISK_AND_DERIVATIVE_INS4
MARKET RISK AND DERIVATIVE INSTRUMENTS (Summary of Linked Transactions) (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Derivatives, Fair Value [Line Items] | |||||
Interest receivable | $16,260,000 | [1] | $8,965,000 | [1] | |
Linked transactions, net at fair value | 15,367,000 | [1] | 30,066,000 | [1] | |
Income (Expense) | 7,850,000 | -3,841,000 | 728,000 | ||
CMBS Linked Transactions [Abstract] | |||||
Amortized Cost | 256,515,000 | 218,470,000 | |||
Unrealized Losses | -3,556,000 | -12,494,000 | |||
Fair Value | |||||
Less than one year | 78,095,000 | [2] | 39,256,000 | [2] | |
Greater than one year and less than five years | 115,302,000 | 139,700,000 | |||
Greater than five years and less than ten years | 20,177,000 | 26,526,000 | |||
Greater than ten years | 62,146,000 | 9,724,000 | |||
Amortized Cost | |||||
Less than one year | 79,649,000 | 40,931,000 | |||
Greater than one year and less than five years | 100,909,000 | 141,760,000 | |||
Greater than five years and less than ten years | 17,516,000 | 25,707,000 | |||
Greater than ten years | 58,441,000 | 10,072,000 | |||
Amortized Cost | 256,515,000 | 218,470,000 | |||
Linked Transactions, Continuous Unrealized Loss Position [Abstract] | |||||
Fair Value, less than 12 months | 38,307,000 | 53,020,000 | |||
Unrealized Losses, less than 12 months | -851,000 | -7,567,000 | |||
Fair value, more than 12 months | 26,541,000 | 20,851,000 | |||
Gross unrealized losses, more than 12 Months | -2,705,000 | -4,927,000 | |||
Fair value, total | 64,848,000 | 73,871,000 | |||
Unrealized losses, total | -3,556,000 | -12,494,000 | |||
Linked Transactions [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Linked transactions, net at fair value | 48,605,000 | 93,823,000 | |||
Components of Unrealized Net Gains and Net Interest Income from Linked Transactions [Abstract] | |||||
Interest income attributable to CMBS underlying linked transactions | 2,879,000 | 2,912,000 | 802,000 | ||
Interest expense attributable to linked repurchase agreement borrowings underlying linked transactions | -644,000 | -735,000 | -242,000 | ||
Change in fair value of linked transactions included in earnings | 5,615,000 | -6,018,000 | 168,000 | ||
Unrealized net (losses) gains and net interest income from linked transactions | 7,850,000 | -3,841,000 | 728,000 | ||
Linked Transactions [Member] | CMBS [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Interest receivable | 159,000 | 337,000 | |||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 539,000 | 446,000 | |||
CMBS Linked Transactions [Abstract] | |||||
Amortized Cost | 48,138,000 | 99,493,000 | |||
Unrealized Losses | -72,000 | -6,116,000 | |||
Total | 48,605,000 | ||||
Fair Value | |||||
Less than one year | 7,834,000 | 540,000 | |||
Greater than one year and less than five years | 36,587,000 | 26,120,000 | |||
Greater than five years and less than ten years | 4,184,000 | 53,688,000 | |||
Greater than ten years | 0 | 13,475,000 | |||
Total | 48,605,000 | ||||
Amortized Cost | |||||
Less than one year | 7,775,000 | 540,000 | |||
Greater than one year and less than five years | 36,274,000 | 26,516,000 | |||
Greater than five years and less than ten years | 4,089,000 | 57,282,000 | |||
Greater than ten years | 0 | 15,155,000 | |||
Amortized Cost | 48,138,000 | 99,493,000 | |||
Weighted Average Coupon | |||||
Less than one year | 5.36% | 5.58% | |||
Greater than one year and less than five years | 4.65% | 5.32% | |||
Greater than five years and less than ten years | 4.52% | 3.35% | |||
Greater than ten years | 0.00% | 3.34% | |||
Total | 4.66% | 3.84% | |||
Linked Transactions, Continuous Unrealized Loss Position [Abstract] | |||||
Fair Value, less than 12 months | 7,609,000 | 70,727,000 | |||
Unrealized Losses, less than 12 months | -57,000 | -5,198,000 | |||
Fair value, more than 12 months | 777,000 | 9,318,000 | |||
Gross unrealized losses, more than 12 Months | -15,000 | -918,000 | |||
Fair value, total | 8,386,000 | 80,045,000 | |||
Unrealized losses, total | -72,000 | -6,116,000 | |||
CMBS Linked Transactions [Roll Forward] | |||||
Fair Value at December 31, 2012 | 93,823,000 | ||||
Net Purchases | -47,161,000 | ||||
Available-for-sale Securities, Increase (Decrease) in Balance by Credit Rating | 0 | ||||
Available-for-sale Securities, Debt Securities, Paydowns During Period | -498,000 | ||||
MTM Change Same Ratings | 2,441,000 | ||||
Fair Value at December 31, 2013 | 48,605,000 | ||||
CMBS Linked Repurchase Agreements [Abstract] | |||||
CMBS Linked repurchase agreement, Balance | 33,397,000 | 64,094,000 | |||
CMBS Linked repurchase agreement, Weighted Average Interest Rate | 1.56% | 1.25% | |||
Linked Transactions [Member] | CMBS [Member] | Within 30 days [Member] | |||||
CMBS Linked Repurchase Agreements [Abstract] | |||||
CMBS Linked repurchase agreement, Balance | 33,397,000 | 64,094,000 | |||
CMBS Linked repurchase agreement, Weighted Average Interest Rate | 1.56% | 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 | |||
CMBS Linked repurchase agreement, Weighted Average Interest Rate | 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] | |||||
Income (Expense) | 7,850,000 | -3,841,000 | 728,000 | ||
Not Designated as Hedging Instrument [Member] | Linked Transactions, Net at Fair Value [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Linked transactions, net at fair value | 15,367,000 | 30,066,000 | |||
S&P Rating, AAA [Member] | Linked Transactions [Member] | CMBS [Member] | |||||
CMBS Linked Transactions [Abstract] | |||||
Total | 6,371,000 | ||||
Fair Value | |||||
Total | 6,371,000 | ||||
CMBS Linked Transactions [Roll Forward] | |||||
Fair Value at December 31, 2012 | 17,642,000 | ||||
Net Purchases | -9,773,000 | ||||
Available-for-sale Securities, Increase (Decrease) in Balance by Credit Rating | 0 | ||||
Available-for-sale Securities, Debt Securities, Paydowns During Period | -498,000 | ||||
MTM Change Same Ratings | -1,000,000 | ||||
Fair Value at December 31, 2013 | 6,371,000 | ||||
S&P Rating, BBB Plus through BBB Minus [Member] | Linked Transactions [Member] | CMBS [Member] | |||||
CMBS Linked Transactions [Abstract] | |||||
Total | 11,110,000 | ||||
Fair Value | |||||
Total | 11,110,000 | ||||
CMBS Linked Transactions [Roll Forward] | |||||
Fair Value at December 31, 2012 | 9,953,000 | ||||
Net Purchases | 0 | ||||
Available-for-sale Securities, Increase (Decrease) in Balance by Credit Rating | 1,034,000 | ||||
MTM Change Same Ratings | 123,000 | ||||
Fair Value at December 31, 2013 | 11,110,000 | ||||
S&P Rating, BB Plus through BB Minus [Member] | Linked Transactions [Member] | CMBS [Member] | |||||
CMBS Linked Transactions [Abstract] | |||||
Total | 7,643,000 | ||||
Fair Value | |||||
Total | 7,643,000 | ||||
CMBS Linked Transactions [Roll Forward] | |||||
Fair Value at December 31, 2012 | 2,865,000 | ||||
Net Purchases | 102,000 | ||||
Available-for-sale Securities, Increase (Decrease) in Balance by Credit Rating | 4,422,000 | ||||
MTM Change Same Ratings | 254,000 | ||||
Fair Value at December 31, 2013 | 7,643,000 | ||||
S&P Rating, B Plus through B Minus [Member] | Linked Transactions [Member] | CMBS [Member] | |||||
CMBS Linked Transactions [Abstract] | |||||
Total | 19,936,000 | ||||
Fair Value | |||||
Total | 19,936,000 | ||||
CMBS Linked Transactions [Roll Forward] | |||||
Fair Value at December 31, 2012 | 19,619,000 | ||||
Net Purchases | 5,065,000 | ||||
Available-for-sale Securities, Increase (Decrease) in Balance by Credit Rating | -5,456,000 | ||||
MTM Change Same Ratings | 708,000 | ||||
Fair Value at December 31, 2013 | 19,936,000 | ||||
Standard & Poor's, CCC Plus through CCC Minus [Member] | Linked Transactions [Member] | CMBS [Member] | |||||
CMBS Linked Transactions [Abstract] | |||||
Total | 2,769,000 | ||||
Fair Value | |||||
Total | 2,769,000 | ||||
CMBS Linked Transactions [Roll Forward] | |||||
Net Purchases | 2,769,000 | ||||
Available-for-sale Securities, Increase (Decrease) in Balance by Credit Rating | 0 | ||||
MTM Change Same Ratings | 0 | ||||
Fair Value at December 31, 2013 | 2,769,000 | ||||
S&P Rating, Non-Rated [Member] | Linked Transactions [Member] | CMBS [Member] | |||||
CMBS Linked Transactions [Abstract] | |||||
Total | 776,000 | ||||
Fair Value | |||||
Total | 776,000 | ||||
CMBS Linked Transactions [Roll Forward] | |||||
Fair Value at December 31, 2012 | 43,744,000 | ||||
Net Purchases | -45,324,000 | ||||
Available-for-sale Securities, Increase (Decrease) in Balance by Credit Rating | 0 | ||||
MTM Change Same Ratings | 2,356,000 | ||||
Fair Value at December 31, 2013 | 776,000 | ||||
Moody's Rating, Aaa [Member] | Linked Transactions [Member] | CMBS [Member] | |||||
CMBS Linked Transactions [Abstract] | |||||
Total | 7,148,000 | ||||
Fair Value | |||||
Total | 7,148,000 | ||||
CMBS Linked Transactions [Roll Forward] | |||||
Fair Value at December 31, 2012 | 26,682,000 | ||||
Net Purchases | -18,704,000 | ||||
Available-for-sale Securities, Increase (Decrease) in Balance by Credit Rating | 0 | ||||
Available-for-sale Securities, Debt Securities, Paydowns During Period | -498,000 | ||||
MTM Change Same Ratings | -332,000 | ||||
Fair Value at December 31, 2013 | 7,148,000 | ||||
Moody's, Aa1 through Aa3 [Member] | Linked Transactions [Member] | CMBS [Member] | |||||
CMBS Linked Transactions [Abstract] | |||||
Total | 0 | ||||
Fair Value | |||||
Total | 0 | ||||
CMBS Linked Transactions [Roll Forward] | |||||
Fair Value at December 31, 2012 | 8,919,000 | ||||
Net Purchases | -9,589,000 | ||||
Available-for-sale Securities, Increase (Decrease) in Balance by Credit Rating | 0 | ||||
MTM Change Same Ratings | 670,000 | ||||
Fair Value at December 31, 2013 | 0 | ||||
Moody's Rating, A1 through A3 [Member] | Linked Transactions [Member] | CMBS [Member] | |||||
CMBS Linked Transactions [Abstract] | |||||
Total | 0 | ||||
Fair Value | |||||
Total | 0 | ||||
CMBS Linked Transactions [Roll Forward] | |||||
Fair Value at December 31, 2012 | 0 | ||||
Net Purchases | 0 | ||||
Available-for-sale Securities, Increase (Decrease) in Balance by Credit Rating | 0 | ||||
MTM Change Same Ratings | 0 | ||||
Fair Value at December 31, 2013 | 0 | ||||
Moody's, Baa1 through Baa3 Rating [Member] | Linked Transactions [Member] | CMBS [Member] | |||||
CMBS Linked Transactions [Abstract] | |||||
Total | 6,490,000 | ||||
Fair Value | |||||
Total | 6,490,000 | ||||
CMBS Linked Transactions [Roll Forward] | |||||
Fair Value at December 31, 2012 | 6,473,000 | ||||
Net Purchases | 0 | ||||
Available-for-sale Securities, Increase (Decrease) in Balance by Credit Rating | 0 | ||||
MTM Change Same Ratings | 17,000 | ||||
Fair Value at December 31, 2013 | 6,490,000 | ||||
Moody's, Ba1 through Ba3 Rating [Member] | Linked Transactions [Member] | CMBS [Member] | |||||
CMBS Linked Transactions [Abstract] | |||||
Total | 0 | ||||
Fair Value | |||||
Total | 0 | ||||
CMBS Linked Transactions [Roll Forward] | |||||
Fair Value at December 31, 2012 | 10,310,000 | ||||
Net Purchases | -10,768,000 | ||||
Available-for-sale Securities, Increase (Decrease) in Balance by Credit Rating | 0 | ||||
MTM Change Same Ratings | 458,000 | ||||
Fair Value at December 31, 2013 | 0 | ||||
Moody's, B1 through B3 Rating [Member] | Linked Transactions [Member] | CMBS [Member] | |||||
CMBS Linked Transactions [Abstract] | |||||
Total | 21,176,000 | ||||
Fair Value | |||||
Total | 21,176,000 | ||||
CMBS Linked Transactions [Roll Forward] | |||||
Fair Value at December 31, 2012 | 12,155,000 | ||||
Net Purchases | 8,258,000 | ||||
Available-for-sale Securities, Increase (Decrease) in Balance by Credit Rating | 0 | ||||
MTM Change Same Ratings | 763,000 | ||||
Fair Value at December 31, 2013 | 21,176,000 | ||||
Moody's Rating, Non-Rated [Member] | Linked Transactions [Member] | CMBS [Member] | |||||
CMBS Linked Transactions [Abstract] | |||||
Total | 13,791,000 | ||||
Fair Value | |||||
Total | 13,791,000 | ||||
CMBS Linked Transactions [Roll Forward] | |||||
Fair Value at December 31, 2012 | 29,284,000 | ||||
Net Purchases | -16,358,000 | ||||
Available-for-sale Securities, Increase (Decrease) in Balance by Credit Rating | 0 | ||||
MTM Change Same Ratings | 865,000 | ||||
Fair Value at December 31, 2013 | 13,791,000 | ||||
CMBS - Term Repurchase Facilities [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Linked transactions, net at fair value | 159,000 | [3] | 337,000 | [3] | |
CMBS - Term Repurchase Facilities [Member] | Linked Transactions [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Linked transactions, net at fair value | $20,000 | [3] | $38,000 | [3] | |
[1] | DecemberB 31, 2014DecemberB 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $25B $b Restricted cash$121,247B $61,372 Investments securities available-for-sale, pledged as collateral, at fair value119,203B 105,846 Loans held for sale282B 2,376Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,261,137B 1,219,569 Interest receivable8,941B 5,627 Prepaid expenses221B 247 Principal paydown receivable25,767B 6,821 Other assets(12)B b Total assets of consolidated VIEs$1,536,811B $1,401,858 | ||||
[2] | The Company expects that the maturity date of these CMBS will either be extended or the CMBS will be paid in full. | ||||
[3] | The Wells Fargo CMBS term facility borrowing includes $0 and $12,000, of deferred debt issuance costs as of DecemberB 31, 2014 and 2013, respectively. |
OFFSETTING_OF_FINANCIAL_ASSETS2
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative hedging instruments, at fair value-Liabilities | ||
Gross Amounts of Recognized Liabilities | $8,466,000 | $10,586,000 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 8,466,000 | 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 | 7,966,000 | 10,086,000 |
Derivative hedging instruments, at fair value-Assets | ||
Gross Amounts of Recognized Assets | 4,334,000 | 0 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Included in the Consolidated Balance Sheets | 4,334,000 | 0 |
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 | 0 | 0 |
Net Amount | 4,334,000 | 0 |
Total-Assets | ||
Gross Amounts of Recognized Assets | 53,098,000 | 94,160,000 |
Gross Amounts Offset in the Consolidated Balance Sheets | 33,397,000 | 64,094,000 |
Net Amounts of Assets Included in the Consolidated Balance Sheets | 19,701,000 | 30,066,000 |
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 | 0 | 0 |
Net Amount | 19,701,000 | 30,066,000 |
Repurchase agreements-Liabilities | ||
Gross Amounts of Recognized Liabilities | 399,662,000 | 91,931,000 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 399,662,000 | 91,931,000 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 399,662,000 | 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 of Recognized Liabilities | 441,525,000 | 166,611,000 |
Gross Amounts Offset in the Consolidated Balance Sheets | 33,397,000 | 64,094,000 |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 408,128,000 | 102,517,000 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 399,662,000 | 91,931,000 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | 500,000 | 500,000 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | 7,966,000 | 10,086,000 |
Fair value of securities pledged against swaps | 2,600,000 | 3,500,000 |
Fair value of securities pledged against repurchase agreements | 565,600,000 | 121,600,000 |
Linked Transactions [Member] | ||
Derivative hedging instruments, at fair value-Liabilities | ||
Gross Amounts of Recognized Liabilities | 33,397,000 | 64,094,000 |
Gross Amounts Offset in the Consolidated Balance Sheets | 33,397,000 | 64,094,000 |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 0 | 0 |
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 | 0 | 0 |
Net Amount | 0 | 0 |
Derivative hedging instruments, at fair value-Assets | ||
Gross Amounts of Recognized Assets | 48,764,000 | 94,160,000 |
Gross Amounts Offset in the Consolidated Balance Sheets | 33,397,000 | 64,094,000 |
Net Amounts of Assets Included in the Consolidated Balance Sheets | 15,367,000 | 30,066,000 |
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 | 0 | 0 |
Net Amount | $15,367,000 | $30,066,000 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 1 Months Ended | 0 Months Ended | 4 Months Ended | 0 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Feb. 24, 2014 | Mar. 27, 2014 | Jul. 03, 2014 | Nov. 06, 2014 | Nov. 06, 2014 | Dec. 31, 2014 |
Variable Interest Entity [Line Items] | |||||||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | ($18.20) | ||||||
Operating Loss Carryforwards | 33.8 | ||||||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | -15.5 | ||||||
Net operating loss carryforwards | $6.10 | ||||||
Harvest CLO VII Limited [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 9.50% | ||||||
Moselle CLO S.A. [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 88.60% | ||||||
Harvest CLO VIII Limited [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 12.60% | ||||||
Harvest X Investor [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 55.00% | 55.00% | |||||
Harvest CLO X [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 32.10% |
INCOME_TAXES_Components_of_Inc
INCOME TAXES (Components of Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $6,819 | $4,601 | $11,497 |
State | 2,505 | 1,068 | 776 |
Total current | 9,324 | 5,669 | 12,273 |
Deferred: | |||
Federal | -9,450 | -5,116 | 1,769 |
State | -2,086 | -1,594 | 560 |
Total deferred | -11,536 | -6,710 | 2,329 |
Income tax provision (benefit) | ($2,212) | ($1,041) | $14,602 |
INCOME_TAXES_Reconciliation_Be
INCOME TAXES (Reconciliation Between Federal Statutory Income Tax Rate and Effective Income Tax Rate) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Statutory tax | ($2,232) | ($588) | $9,518 |
State and local taxes, net of federal benefit | -375 | -728 | 225 |
Permanent adjustments | 41 | 2 | 32 |
Subpart F income | 0 | 0 | 3,458 |
Basis difference in LCC investment | 0 | 0 | 0 |
True-up of prior period tax expense | 353 | 253 | 0 |
Other items | 1 | 20 | 1,369 |
Income tax provision (benefit) | ($2,212) | ($1,041) | $14,602 |
INCOME_TAXES_Components_of_Def
INCOME TAXES (Components of Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Income Tax Disclosure [Abstract] | ||||
Deferred Tax Assets, Net | $12,634 | $1,100 | ||
Deferred tax assets related to: | ||||
Investment in securities | 1,030 | 118 | ||
Intangible assets basis difference | 2,533 | 2,725 | ||
Federal, state and local loss carryforwards | 7,848 | 941 | ||
Subpart F income | 0 | 1,359 | ||
Partnership investment | 0 | 2 | ||
Deferred revenue | 207 | 23 | ||
Accrued expenses | -56 | -44 | ||
Amortization of intangibles | 766 | 0 | ||
Unrealized gains/losses | 1,799 | 0 | ||
Mark to market adjustment | 188 | 0 | ||
Charitable contribution carryforwards | 6 | 0 | ||
Equity compensation | 167 | 0 | ||
Gain (loss) on sale of investments | 116 | 0 | ||
Partnership investment | -1,622 | 0 | ||
Total deferred tax assets | 13,094 | 5,212 | ||
Valuation allowance | 0 | 0 | ||
Total deferred tax assets | 13,094 | [1] | 5,212 | [1] |
Deferred tax liabilities related to: | ||||
Unrealized loss on investments | -366 | -3,764 | ||
Equity investments | 0 | -153 | ||
Basis difference in LCC investment | 0 | -195 | ||
Depreciation | -1 | 0 | ||
Accrued expenses | -3 | 0 | ||
Partnership investment | -90 | 0 | ||
Total deferred tax liabilities | ($460) | [2] | ($4,112) | [2] |
[1] | DecemberB 31, 2014DecemberB 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $25B $b Restricted cash$121,247B $61,372 Investments securities available-for-sale, pledged as collateral, at fair value119,203B 105,846 Loans held for sale282B 2,376Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,261,137B 1,219,569 Interest receivable8,941B 5,627 Prepaid expenses221B 247 Principal paydown receivable25,767B 6,821 Other assets(12)B b Total assets of consolidated VIEs$1,536,811B $1,401,858 | |||
[2] | DecemberB 31, 2014B DecemberB 31, 2013Liabilities of consolidated VIEs included in the total liabilities above: Borrowings$1,046,494B $1,070,339 Accrued interest expense1,000B 918 Derivatives, at fair value8,439B 10,191 Unsettled loan purchases(529)B b Accounts payable and other liabilities(386)B 1,604 Total liabilities of consolidated VIEs$1,055,018B $1,083,052 |
QUARTERLY_RESULTS_Details
QUARTERLY RESULTS (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $35,389 | $33,841 | $30,592 | $27,085 | $25,477 | $28,464 | $30,715 | $33,320 | $126,907 | $117,976 | $133,330 |
Interest expense | 13,726 | 11,510 | 10,610 | 9,627 | 26,949 | 11,762 | 11,134 | 11,165 | 45,473 | 61,010 | 42,792 |
Net interest income | 21,663 | 22,331 | 19,982 | 17,458 | -1,472 | 16,702 | 19,581 | 22,155 | 81,434 | 56,966 | 90,538 |
Net income | $6,906 | $7,328 | $14,677 | $15,116 | ($948) | $22,121 | $6,533 | $11,526 | $62,168 | $46,453 | $64,443 |
NET INCOME PER SHARE - BASIC (in dollars per share) | $0.05 | $0.06 | $0.12 | $0.12 | ($0.01) | $0.18 | $0.05 | $0.11 | $0.34 | $0.33 | $0.71 |
NET INCOME PER SHARE - DILUTED (in dollars per shares) | $0.05 | $0.06 | $0.11 | $0.12 | ($0.01) | $0.18 | $0.05 | $0.11 | $0.34 | $0.33 | $0.71 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 12 Months Ended | 0 Months Ended | 2 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 13, 2015 | Feb. 24, 2015 | Feb. 28, 2015 | Jan. 23, 2015 | |
Subsequent Event [Line Items] | |||||||
Shares issued from dividend reinvestment plan (in shares) | 5,500,000 | ||||||
Payments on borrowings: | $52,663,000 | $0 | $0 | ||||
Moselle CLO S.A. Senior Notes [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Face amount of debt issued | 23,000,000 | ||||||
Eight Percent Convertible Senior Notes [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Face amount of debt issued | 100,000,000 | ||||||
Payments on borrowings: | 97,000,000 | ||||||
RCC CRE Notes 2015 [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Face amount of debt issued | 282,100,000 | ||||||
Closing transaction amount | 346,200,000 | ||||||
Percentage of senior notes acquired by the parent | 100.00% | ||||||
Payments by parent to acquire notes issued by VIE | 27,700,000 | ||||||
Senior Notes Class E [Member] | RCC CRE Notes 2015 [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Percentage of senior notes acquired by the parent | 100.00% | ||||||
Senior Notes Class F [Member] | RCC CRE Notes 2015 [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Percentage of senior notes acquired by the parent | 1.00% | ||||||
Senior Notes Class E and F [Member] | RCC CRE Notes 2015 [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Payments by parent to acquire notes issued by VIE | 36,300,000 | ||||||
Preferred Shares - Series B [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Proceeds from dividend reinvestment and stock purchase plan | $3,000,000 | ||||||
Shares issued from dividend reinvestment plan (in shares) | 139,333 |
Schedule_II_Valuation_and_Qual1
Schedule II Valuation and Qualifying Accounts (Details) (Allowance for Loan and Lease Losses, Real Estate [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Loan and Lease Losses, Real Estate [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $13,807 | $17,691 | $27,518 |
Charge to expense | 1,804 | 3,020 | 16,818 |
Write-offs | -10,998 | -6,904 | -26,645 |
Recoveries | 0 | 0 | 0 |
Balance at end of period | $4,613 | $13,807 | $17,691 |
Schedule_III_Real_Estate_and_A1
Schedule III - Real Estate and Accumulated Depreciation (Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||
Balance, beginning of year | $32,380 | $77,936 | $48,726 |
Additions: | |||
Acquired through foreclosure | 0 | 0 | 25,608 |
Improvements | 25 | 268 | 3,645 |
Total additions | 25 | 268 | 29,253 |
Deductions: | |||
Cost of real estate sold | -32,405 | -20,216 | 0 |
Property available-for-sale | 0 | -25,608 | 0 |
Otherbwrite-down | 0 | 0 | -43 |
Balance, end of year | 0 | 32,380 | 77,936 |
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||
Balance, beginning of year | 2,602 | 2,550 | 699 |
Depreciation expense | 433 | 1,049 | 1,851 |
Total additions | 433 | 1,049 | 1,851 |
Sales | -3,035 | -997 | 0 |
Balance, end of year | $0 | $2,602 | $2,550 |
Schedule_IV_Mortgage_Loans_on_1
Schedule IV Mortgage Loans on Real Estate (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Mortgage Loans on Real Estate [Line Items] | ||
Allowance for Loan Loss | $4,613,000 | $13,807,000 |
Whole Loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of face amount and carrying amount of loans, less than 3% | 3.00% | |
Face Amount of Loans | 1,271,122,000 | |
Net Carrying Amount of Loans | 1,263,591,000 | |
Allowance for Loan Loss | 3,800,000 | |
Whole Loans, Not Separately Disclosed [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount of Loans | 1,118,323,000 | |
Net Carrying Amount of Loans | 1,111,942,000 | |
B Notes, Not Separately Disclosed [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount of Loans | 16,119,000 | |
Net Carrying Amount of Loans | 16,072,000 | |
Mezzanine Loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of face amount and carrying amount of loans, less than 3% | 3.00% | |
Face Amount of Loans | 67,446,000 | |
Net Carrying Amount of Loans | 67,367,000 | |
Allowance for Loan Loss | 231,000 | |
Mezzanine Loans, Not Separately Disclosed [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount of Loans | 67,446,000 | |
Net Carrying Amount of Loans | 67,367,000 | |
B Notes [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of face amount and carrying amount of loans, less than 3% | 3.00% | |
Face Amount of Loans | 16,119,000 | |
Net Carrying Amount of Loans | 16,072,000 | |
Allowance for Loan Loss | 55,000 | |
Residential Mortgage Loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of face amount and carrying amount of loans, less than 3% | 3.00% | |
Face Amount of Loans | 114,238,000 | |
Net Carrying Amount of Loans | 114,238,000 | |
Commercial Real Estate Loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount of Loans | 1,354,687,000 | |
Net Carrying Amount of Loans | 1,347,030,000 | |
Allowance for Loan Loss | 4,000,000 | |
Residential Mortgage Loans, Not Separately Disclosed [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount of Loans | 114,238,000 | |
Net Carrying Amount of Loans | 114,238,000 | |
Multi-Family Property [Member] | Houston, Texas- Borrower A [Member] | Whole Loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Description of variable rate basis | LIBOR | |
Basis spread on variable rate | 2.50% | |
Face Amount of Loans | 63,075,000 | |
Net Carrying Amount of Loans | 62,578,000 | |
Mortgage Loans on Real Estate, Prior Liens | 0 | |
Multi-Family Property [Member] | Tempe. Arizona- Borrower B [Member] | Whole Loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Description of variable rate basis | LIBOR | |
Basis spread on variable rate | 3.00% | |
Face Amount of Loans | 45,750,000 | |
Net Carrying Amount of Loans | 45,488,000 | |
Mortgage Loans on Real Estate, Prior Liens | 0 | |
Multi-Family Property [Member] | Houston, Texas- Borrower C [Member] | Whole Loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Description of variable rate basis | LIBOR | |
Basis spread on variable rate | 12.00% | |
Face Amount of Loans | 43,974,000 | |
Net Carrying Amount of Loans | 43,583,000 | |
Mortgage Loans on Real Estate, Prior Liens | $0 |