Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 05, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | RESOURCE CAPITAL CORP. | |
Entity Central Index Key | 1,332,551 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 134,187,213 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | |
ASSETS | |||
Cash and cash equivalents | [1] | $ 145,010,000 | $ 79,905,000 |
Restricted cash | [1] | 45,755,000 | 122,138,000 |
Investment securities, trading | [1] | 32,680,000 | 20,786,000 |
Investment securities available-for-sale, pledged as collateral, at fair value | [1] | 170,935,000 | 197,800,000 |
Investment securities available-for-sale, at fair value | [1] | 82,493,000 | 77,920,000 |
Linked transactions, net at fair value | [1] | 0 | 15,367,000 |
Loans held for sale ($105.1 million and $113.4 million at fair value) | [1] | 111,122,000 | 113,675,000 |
Property held for sale | [1] | 180,000 | 180,000 |
Loans, pledged as collateral and net of allowances of $46.3 million and $4.6 million | [1] | 2,042,885,000 | 1,925,980,000 |
Loans receivable–related party | [1] | 0 | 558,000 |
Investments in unconsolidated entities | [1] | 56,150,000 | 59,827,000 |
Derivatives, at fair value | [1] | 4,289,000 | 5,304,000 |
Interest receivable | [1] | 12,046,000 | 16,260,000 |
Deferred tax asset, net | [1] | 12,828,000 | 12,634,000 |
Principal paydown receivable | [1] | 11,525,000 | 40,920,000 |
Direct financing leases | [1] | 1,590,000 | 2,109,000 |
Intangible assets | [1] | 24,370,000 | 18,610,000 |
Prepaid expenses | [1] | 3,913,000 | 4,196,000 |
Other assets | [1] | 16,453,000 | 14,510,000 |
Total assets | [1] | 2,774,224,000 | 2,728,679,000 |
LIABILITIES | |||
Borrowings | [2] | 1,827,461,000 | 1,716,871,000 |
Distribution payable | [2] | 25,504,000 | 30,592,000 |
Accrued interest expense | [2] | 5,467,000 | 2,123,000 |
Derivatives, at fair value | [2] | 6,991,000 | 8,476,000 |
Accrued tax liability | [2] | 6,383,000 | 9,219,000 |
Accounts payable and other liabilities | [2] | 9,769,000 | 9,287,000 |
Total liabilities | [2] | 1,881,575,000 | 1,776,568,000 |
EQUITY | |||
Common stock, par value $0.001: 500,000,000 shares authorized; 134,172,504 and 132,975,177 shares issued and outstanding (including 2,767,809 and 2,023,639 unvested restricted shares) | 134,000 | 133,000 | |
Additional paid-in capital | 1,252,718,000 | 1,245,245,000 | |
Accumulated other comprehensive income (loss) | 1,344,000 | 6,043,000 | |
Distributions in excess of earnings | (380,389,000) | (315,910,000) | |
Total stockholders’ equity | 873,819,000 | 935,523,000 | |
Non-controlling interests | 18,830,000 | 16,588,000 | |
Total equity | 892,649,000 | 952,111,000 | |
TOTAL LIABILITIES AND EQUITY | 2,774,224,000 | 2,728,679,000 | |
Preferred Shares - Series A | |||
EQUITY | |||
Preferred stock, par value $0.001 | 1,000 | 1,000 | |
Preferred Shares - Series B | |||
EQUITY | |||
Preferred stock, par value $0.001 | 6,000 | 6,000 | |
Preferred Shares - Series C | |||
EQUITY | |||
Preferred stock, par value $0.001 | $ 5,000 | $ 5,000 | |
[1] | June 30, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$189 $25 Restricted cash43,954 121,247 Investment securities available-for-sale, pledged as collateral, at fair value84,858 119,203 Loans held for sale6,027 282Loans, pledged as collateral and net of allowances of $42.7 million and $3.3 million1,352,546 1,261,137 Interest receivable5,468 8,941 Prepaid expenses182 221 Principal paydown receivable— 25,767 Other assets9 (12) Total assets of consolidated VIEs$1,493,233 $1,536,811 | ||
[2] | June 30, 2015 December 31, 2014Liabilities of consolidated VIEs included in the total liabilities above: Borrowings $1,047,172 $1,046,494 Accrued interest expense852 1,000 Derivatives, at fair value5,946 8,439Unsettled loan purchases(529) (529) Accounts payable and other liabilities190 (386) Total liabilities of consolidated VIEs$1,053,631 $1,055,018 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
ASSETS | ||
Loans, pledged as collateral, amount at fair value | $ 105,100 | $ 113,400 |
Loans receivable, allowance | $ 46,300 | $ 4,600 |
STOCKHOLDERS’ EQUITY | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 132,975,177 | 132,975,177 |
Common stock, shares outstanding (in shares) | 132,975,177 | 132,975,177 |
Common stock, shares issued, non-vested restricted shares (in shares) | 2,023,639 | 2,023,639 |
Assets of consolidated VIEs included in total assets: | ||
Cash and cash equivalents | $ 189 | $ 25 |
Restricted cash | 43,954 | 121,247 |
Investment securities available-for-sale, pledged as collateral, at fair value | 84,858 | 119,203 |
Loans held for sale | 6,027 | 282 |
Loans, pledged as collateral and net of allowances of $42.7 million and $3.3 million | 1,352,546 | 1,261,137 |
Interest receivable | 5,468 | 8,941 |
Prepaid expenses | 182 | 221 |
Principal paydown receivable | 0 | 25,767 |
Other assets | 9 | (12) |
Total assets of consolidated VIEs | 1,493,233 | 1,536,811 |
Liabilities of consolidated VIEs included in total liabilities: | ||
Borrowings | 1,047,172 | 1,046,494 |
Accrued interest expense | 852 | 1,000 |
Derivatives, at fair value | 5,946 | 8,439 |
Unsettled loan purchases | (529) | (529) |
Accounts payable and other liabilities | 190 | (386) |
Total liabilities of consolidated VIEs | 1,053,631 | 1,055,018 |
Variable interest entity, loans, pledged as collateral, allowance | $ 42,700 | $ 3,300 |
Preferred Shares - Series A | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 |
Preferred stock, coupon authorized (in hundredths) | 8.50% | |
Preferred stock, shares issued (in shares) | 1,069,016 | 1,069,016 |
Preferred stock, shares outstanding (in shares) | 1,069,016 | 1,069,016 |
Preferred Shares - Series B | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 |
Preferred stock, coupon authorized (in hundredths) | 8.25% | |
Preferred stock, shares issued (in shares) | 5,740,479 | 5,601,146 |
Preferred stock, shares outstanding (in shares) | 5,740,479 | 5,601,146 |
Preferred Shares - Series C | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 |
Preferred stock, coupon authorized (in hundredths) | 8.625% | |
Preferred stock, shares issued (in shares) | 4,800,000 | 4,800,000 |
Preferred stock, shares outstanding (in shares) | 4,800,000 | 4,800,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest income: | ||||
Loans | $ 29,759 | $ 26,219 | $ 62,422 | $ 46,448 |
Securities | 5,500 | 3,391 | 9,552 | 7,395 |
Leases | 163 | 0 | 258 | 0 |
Interest income − other | 1,119 | 982 | 1,951 | 3,834 |
Total interest income | 36,541 | 30,592 | 74,183 | 57,677 |
Interest expense | 15,803 | 10,610 | 30,705 | 20,238 |
Net interest income | 20,738 | 19,982 | 43,478 | 37,439 |
Rental income | 0 | 1,507 | 0 | 6,659 |
Dividend income | 17 | 17 | 33 | 153 |
Fee income | 3,446 | 2,322 | 5,051 | 4,822 |
Total revenues | 24,201 | 23,828 | 48,562 | 49,073 |
OPERATING EXPENSES | ||||
Management fees − related party | 3,500 | 3,314 | 7,060 | 6,394 |
Equity compensation − related party | 791 | 2,032 | 1,786 | 3,699 |
Rental operating expense | 0 | 1,077 | 6 | 4,473 |
Lease operating | 24 | 0 | 47 | 0 |
General and administrative - Corporate | 4,067 | 4,750 | 8,850 | 7,589 |
General and administrative - PCM | 6,722 | 4,138 | 13,801 | 7,565 |
Depreciation and amortization | 621 | 760 | 1,186 | 1,596 |
Impairment losses | 0 | 0 | 59 | 0 |
Provision (recovery) for loan losses | 38,810 | 782 | 42,800 | (3,178) |
Total operating expenses | 54,535 | 16,853 | 75,595 | 28,138 |
Net interest and other revenues less operating expenses | (30,334) | 6,975 | (27,033) | 20,935 |
OTHER INCOME (EXPENSE) | ||||
Equity in earnings of unconsolidated subsidiaries | 662 | 1,762 | 1,368 | 3,776 |
Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives | 9,745 | 1,648 | 24,168 | 3,736 |
Net realized and unrealized gain (loss) on investment securities, trading | 279 | (650) | 2,353 | (2,210) |
Unrealized gain (loss) and net interest income on linked transactions, net | 0 | 5,012 | 235 | 7,317 |
(Loss) on reissuance/gain on extinguishment of debt | (171) | (533) | (1,071) | (602) |
(Loss) gain on sale of real estate | 22 | 3,042 | 0 | 3,042 |
Other income (expense) | 0 | 0 | 0 | (1,262) |
Total other income (expense) | 10,537 | 10,281 | 27,053 | 13,797 |
INCOME (LOSS) BEFORE TAXES | (19,797) | 17,256 | 20 | 34,732 |
Income tax (expense) benefit | (2,918) | 446 | (4,765) | 430 |
NET INCOME (LOSS) | (22,715) | 17,702 | (4,745) | 35,162 |
Net (income) loss allocated to preferred shares | (6,116) | (3,358) | (12,207) | (5,758) |
Net (income) loss allocable to non-controlling interest, net of taxes | (2,180) | 333 | (4,657) | 389 |
NET INCOME (LOSS) ALLOCABLE TO COMMON SHARES | $ (31,011) | $ 14,677 | $ (21,609) | $ 29,793 |
NET INCOME (LOSS) PER COMMON SHARE – BASIC (in dollars per share) | $ (0.24) | $ 0.12 | $ (0.16) | $ 0.24 |
NET INCOME (LOSS) PER COMMON SHARE – DILUTED (in dollars per share) | $ (0.24) | $ 0.11 | $ (0.16) | $ 0.23 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC (in shares) | 131,409,263 | 126,952,493 | 131,333,704 | 126,288,516 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - DILUTED (in shares) | 131,409,263 | 128,142,637 | 131,333,704 | 127,409,127 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (22,715) | $ 17,702 | $ (4,745) | $ 35,162 |
Other comprehensive income (loss): | ||||
Reclassification adjustment for realized (gains) losses on available-for-sale securities included in net income | (4,076) | 2,722 | (10,334) | 4,187 |
Unrealized gains (losses) on available-for-sale securities, net | (1,699) | 264 | 1,424 | (1,490) |
Reclassification adjustments associated with unrealized gains (losses) from interest rate hedges included in net income | 36 | 72 | 126 | 142 |
Unrealized gains on derivatives, net | 1,237 | 803 | 2,379 | 1,190 |
Foreign currency translation adjustments | 0 | 16 | 429 | (180) |
Total other comprehensive income (loss) | (4,502) | 3,877 | (5,976) | 3,849 |
Comprehensive income (loss) before allocation to non-controlling interests and preferred shares | (27,217) | 21,579 | (10,721) | 39,011 |
Unrealized (gains) losses on available-for-sale securities allocable to non-controlling interests | 470 | 0 | 1,277 | 0 |
Net (income) loss allocable to non-controlling interests | (2,180) | 333 | (4,657) | 389 |
Net (income) loss allocated to preferred shares | (6,116) | (3,358) | (12,207) | (5,758) |
Comprehensive income (loss) allocable to common shares | $ (35,043) | $ 18,554 | $ (26,308) | $ 33,642 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Parent [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Retained Earnings [Member] | Distributions in Excess of Earnings [Member] | Non-controlling Interest [Member] | Preferred Shares - Series APreferred Stock | Preferred Shares - Series BPreferred Stock | Preferred Shares - Series CPreferred Stock | Preferred Stock | Preferred StockParent [Member] | Preferred StockAdditional Paid-In Capital [Member] |
Stockholders' Equity Attributable to Parent | $ 935,523 | |||||||||||||
Balance (in shares) at Dec. 31, 2014 | 132,975,177 | 132,975,177 | ||||||||||||
Balance at Dec. 31, 2014 | $ 952,111 | $ 952,111 | $ 133 | $ 1,245,245 | $ 6,043 | $ 0 | $ (315,910) | $ 16,588 | $ 1 | $ 6 | $ 5 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Proceeds from dividend reinvestment and stock purchase plan (in shares) | 41,000 | 40,500 | ||||||||||||
Proceeds from dividend reinvestment and stock purchase plan | $ 187 | 187 | $ 0 | 187 | ||||||||||
Proceeds from issuance of preferred stock | 0 | 0 | 0 | $ 3,113 | $ 3,113 | $ 3,113 | ||||||||
Offering costs | (136) | (136) | (136) | |||||||||||
Discount on 8% convertible senior notes | 2,528 | 2,528 | 2,528 | |||||||||||
Stock based compensation (in shares) | 1,172,312 | |||||||||||||
Stock based compensation | 1 | 1 | $ 1 | 0 | ||||||||||
Amortization of stock based compensation | 1,786 | 1,786 | 1,786 | |||||||||||
Purchase and retirement of shares (in shares) | (1,003) | |||||||||||||
Purchase and retirement of shares | (5) | (5) | $ 0 | (5) | ||||||||||
Forfeiture of unvested stock | (14,482) | |||||||||||||
Contributions from (distributions to), net non-controlling interests | (1,138) | (1,138) | ||||||||||||
Net income (loss) | (9,402) | (4,745) | (9,402) | 4,657 | ||||||||||
Preferred dividends | (12,207) | (12,207) | (12,207) | |||||||||||
Securities available-for-sale, fair value adjustment, net | (7,633) | (8,910) | (7,633) | (1,277) | ||||||||||
Designated derivatives, fair value adjustment | 2,505 | 2,505 | 2,505 | |||||||||||
Foreign currency translation adjustment | 429 | 429 | 429 | |||||||||||
Distributions on common stock | $ (42,870) | (42,870) | 21,609 | (64,479) | ||||||||||
Balance (in shares) at Jun. 30, 2015 | 132,975,177 | 134,172,504 | ||||||||||||
Balance at Jun. 30, 2015 | $ 892,649 | $ 892,649 | $ 134 | $ 1,252,718 | $ 1,344 | $ 0 | $ (380,389) | $ 18,830 | $ 1 | $ 6 | $ 5 | |||
Stockholders' Equity Attributable to Parent | $ 873,819 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ (4,745) | $ 35,162 | |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | |||
Provision for (recovery of) loan losses | 42,800 | (3,178) | |
Depreciation, amortization, and accretion | 5,572 | 1,922 | |
Amortization of stock-based compensation | 1,786 | 3,699 | |
Amortization (accretion) of terminated derivative instruments | 134 | 142 | |
Amortization (accretion) of interest-only available-for-sales securities | 1,868 | (339) | |
Deferred income tax (benefit) expense | (194) | (689) | |
Sale (purchase) of residential mortgage loans held for sale, net | 15,229 | (12,162) | |
Capitalization of residential mortgage servicing rights | (7,848) | 0 | |
Sale (purchase) of securities, trading, net | (9,541) | 429 | |
Net realized and unrealized loss (gain) on investment securities, trading | (2,353) | 2,210 | |
Net realized and unrealized (gain) loss on sales of investment securities available-for-sale and loans | (24,168) | (2,148) | |
Loss (gain) on the reissuance (extinguishment) of debt | 1,071 | 602 | |
Loss (gain) on sale of real estate | 0 | (3,042) | |
Settlement of derivative instruments | 12,405 | 442 | |
Net impairment losses recognized in earnings | 59 | 0 | |
Unrealized gain (loss) and net interest income on linked transactions, net | (235) | (5,923) | |
Equity in net (earnings) losses of unconsolidated subsidiaries | (1,368) | (3,776) | |
Changes in operating assets and liabilities, net of acquisitions | 12,376 | 979 | |
Net cash provided by (used in) operating activities | 42,848 | 14,330 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
(Increase) decrease in restricted cash | 57,089 | 10,543 | |
Acquisition of controlling interest in Moselle CLO S.A. | 0 | (30,433) | |
Purchase of securities available-for-sale | (11,320) | (107,339) | |
Principal payments on securities available-for-sale | 49,819 | 25,774 | |
Proceeds from sale of securities available-for-sale | 37,221 | 99,151 | |
Return of capital from (investment in) unconsolidated entity | 5,000 | 8,911 | |
Proceeds from sale of real estate held-for-sale | 44 | 31,202 | |
Purchase of loans | (436,440) | (489,800) | |
Principal payments received on loans | 209,744 | 196,973 | |
Improvements of investments in real estate | 0 | 252 | |
Proceeds from sale of loans | 93,146 | 44,024 | |
Purchase of furniture and fixtures | (10) | (69) | |
Acquisition of property and equipment | (228) | (332) | |
Investment in loans - related parties | 0 | (244) | |
Principal payments received on loans – related parties | 558 | 1,759 | |
Net cash (used in) provided by investing activities | 4,623 | (209,628) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net proceeds from issuances of common stock and dividend reinvestment and stock purchase plan (net of offering costs of $58 and $0) | 129 | 14,554 | |
Repurchase of common stock | (5) | 0 | |
Proceeds from borrowings: | |||
Repurchase agreements, net of repayments | 0 | 142,019 | |
Securitizations | 282,127 | 43,000 | |
Convertible Senior Notes | 99,000 | 16,502 | |
Senior Secured Revolving Credit Facility | 99,500 | 0 | |
Reissuance of debt | 12,229 | 0 | |
Payments on borrowings: | |||
Securitizations | (290,190) | (152,556) | |
Repurchase agreements, net of borrowings | (56,383) | 0 | |
Senior Secured Revolving Credit Facility | (62,000) | 0 | |
Payment of debt issuance costs | (7,986) | (8) | |
Distributions to subordinated note holders | (519) | (799) | |
Proceeds received from non-controlling interests | 2,676 | 0 | |
Distributions paid to non-controlling interests | (3,814) | 0 | |
Distributions paid on preferred stock | (12,159) | (4,679) | |
Distributions paid on common stock | (48,006) | (51,457) | |
Net cash provided by (used in) financing activities | 17,634 | 155,341 | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 65,105 | (39,957) | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 79,905 | [1] | 262,270 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 145,010 | [1] | 222,313 |
SUPPLEMENTAL DISCLOSURE: | |||
Interest expense paid in cash | 21,402 | 17,438 | |
Income taxes paid in cash | 9,182 | 3,249 | |
Preferred Shares - Series A | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of preferred shares (net of offering costs of $78 and $4,878) | $ 3,035 | $ 148,765 | |
[1] | June 30, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$189 $25 Restricted cash43,954 121,247 Investment securities available-for-sale, pledged as collateral, at fair value84,858 119,203 Loans held for sale6,027 282Loans, pledged as collateral and net of allowances of $42.7 million and $3.3 million1,352,546 1,261,137 Interest receivable5,468 8,941 Prepaid expenses182 221 Principal paydown receivable— 25,767 Other assets9 (12) Total assets of consolidated VIEs$1,493,233 $1,536,811 |
CONSOLIDATED STATEMENTS OF CAS8
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net proceeds from dividend reinvestment and stock purchase plan, offering costs | $ 58 | $ 0 |
Common Stock [Member] | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Offering costs on stock issuance | 0 | 0 |
Preferred Shares - Series A | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Offering costs on stock issuance | $ 78 | $ 4,878 |
Preferred stock, coupon authorized (in hundredths) | 8.50% | |
Preferred Shares - Series B | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Preferred stock, coupon authorized (in hundredths) | 8.25% | |
Preferred Shares - Series C | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Preferred stock, coupon authorized (in hundredths) | 8.625% |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2015 | |
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 2014-CRE2”), a Cayman Islands limited liability company and QRS. RCC 2014-CRE2 was established to complete a CRE securitization issuance secured by a portfolio of CRE loans. ◦ Resource Capital Corp. 2015-CRE3, Ltd. (“RCC 2015-CRE3”), a Cayman Islands limited liability company and QRS. RCC 2015-CRE3 was established to complete a CRE securitization issuance secured by a portfolio of CRE loans. • RCC Commercial, Inc. (“RCC Commercial”) holds a 29.6% 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”). On March 31, 2015, the Company issued a notice of redemption to Apidos CDO III's trustee to call the CDO. In June 2015, the Company liquidated Apidos CDO III and substantially all of the assets were sold. The remaining assets have been classified as held for sale as of June 30, 2015. • RCC Commercial II, Inc. (“Commercial II”) holds structured notes, available-for-sale securities and investments in the subordinated notes of foreign, syndicated bank loan collateralized loan obligation ("CLO") vehicles. 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 consisted 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. In December 2014, the Company liquidated Moselle CLO and, as a result, all of the assets were sold. • RCC Commercial III, Inc. (“Commercial III”) holds bank loan investments. Commercial III owns 90% of the equity of the following VIE: ◦ Apidos CDO I, Ltd. (“Apidos CDO I”), a Cayman Islands limited liability company and TRS. Apidos CDO I was established to complete a CDO issuance secured by a portfolio of bank loans and ABS. In October 2014, the Company liquidated Apidos CLO I, and as a result, substantially 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 (through both direct and indirect investments in such securities). Resource TRS also owns equity in the following: ◦ Resource TRS, LLC, a Delaware limited liability company, which holds an 25.8% 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. Resource TRS owns 44.6% of the equity in Northport LLC as of June 30, 2015 . The remaining 29.6% 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 69.9% of the equity in Pelium Capital as of June 30, 2015 . • 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, L.P., formerly Apidos Capital Management ("ACM"), a subsidiary of CVC Capital Partners SICAV-FIS, S.A., a private equity firm (“CVC”). Resource America, Inc. owns a 33% interest in CVC Credit Partners, L.P., ("CVC Credit Partners"). • Resource TRS III, Inc. (“Resource TRS III”), a TRS directly owned by the Company, held 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 condominium units were sold as of December 31, 2013. • RSO EquityCo, LLC owned 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 that owns 100% of the following entities: ◦ Long Term Care Conversion Funding ("LTCC Funding"), a New York limited liability company, which owns a 60.7% 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. ◦ ZWH4, LLC ("ZAIS"), a Delaware limited liability company, owns a beneficial interest in the warehouse of ZAIS CLO 4, Limited, a Cayman Islands exempted limited liability company, in equity form, that will be used to finance the purchase of syndicated bank loans. • RCC Residential, Inc. ("RCC Residential"), a TRS directly owned by the Company, is a Delaware corporation which owns 100% of the following entities: ◦ Primary Capital Mortgage, LLC ("PCM"), (formerly known as Primary Capital Advisors, LLC), a limited liability company that originates and services residential mortgage loans. ◦ RCM Global Manager, LLC ("RCM Global Manager"), a Delaware limited liability company, owns 45.9% of the following entity: ▪ RCM Global, LLC ("RCM Global"), a Delaware limited liability company, holds a portfolio of investment securities, available-for-sale. ▪ RCC Residential Portfolio, Inc. ("RCC Resi Portfolio"), a Delaware corporation directly owned by the Company, invests in residential mortgage-backed securities (“RMBS”). ▪ RCC Residential Portfolio TRS, Inc. ("RCC Resi TRS"), a TRS directly owned by the Company, is a Delaware corporation which intends to hold strategic residential positions which cannot be held by RCC Resi Portfolio. ◦ RCC Residential Depositor, LLC ("RCC Resi Depositor"), a Delaware limited liability company, owns 100% of the following entity: ▪ RCC Opportunities Trust ("RCC Opp Trust"), a Delaware statutory trust, holds a portfolio of residential mortgage loans, available-for-sale. ◦ RCC Residential Acquisition, LLC ("RCC Resi Acquisition"), a Delaware limited liability company, purchases residential mortgage loans from PCM and transfers the assets to RCC Opp Trust. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of the Company. All inter-company transactions and balances have been eliminated. 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. At June 30, 2015 and December 31, 2014 , the reported cash balances of $145.0 million and $79.9 million exceeded Federal Deposit Insurance Corporation deposit insurance limit of $250,000 per institution, subjecting the Company to risk related to the uninsured balance. All of the Company's cash deposits are held at large, established financial institutions. Investment in Unconsolidated Entities The Company's non-controlling investments in unconsolidated entities are included in investments in unconsolidated entities on the balance sheet and may be accounted for under the equity method or the cost method. Under the equity method, capital contributions, distributions, profits and losses of the entities are allocated in accordance with the terms of the entities' operating agreements. Such allocations may differ from the stated percentage interests, if any, as a result of preferred returned and allocation formulas as described in the entities' operating agreements. The Company may account for an investment that does not qualify for equity method accounting using the cost method if the Company determines the investment in the unconsolidated investment is insignificant. Under the cost method, the Company records dividend income when declared to the extent it is not considered a return of capital, which is recorded as a reduction of the cost of the investment. Recent Accounting Standards In April 2015, the Financial Accounting Standards Board ("FASB") issued guidance that simplifies the presentation of debt issuance costs by requiring that debt issuance costs be presented in the balance sheet as a deduction from the carrying amount of the related debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. It is effective for annual reporting periods beginning after December 15, 2015, but early adoption is permitted. The Company has early adopted the provisions of this guidance. Note 12, Borrowings , reflects the presentation of debt issuance costs as prescribed by this accounting standards update. Adoption did not have a material impact on the Company's consolidated financial statements. In February 2015, the 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; and (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 December 15, 2015. Early application is permitted. The Company is currently evaluating the effect of adoption. 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 shares. 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 Accounting Standards Codification ("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. 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 alleviate 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 of the financial assets or the fair value of the 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 operations. 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. 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. The Company adopted this accounting standards update on January 1, 2015. Upon adoption, the Company unlinked its previously linked transactions and disclosed affected asset, liability, income and expense balances at their gross values in its consolidated financial statements. 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 was permitted for disposals that had not been reported in financial statements previously issued or available for issuance. The Company 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 was effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Adoption did not have a material impact on the Company's consolidated financial statements. Reclassifications Certain reclassifications have been made to the 2014 consolidated financial statements to conform to the 2015 presentation. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2015 | |
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 interests 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 continuously analyzes entities in which it holds variable interests, 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 twelve VIEs at June 30, 2015 : 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 2014-CRE2, RCC 2015-CRE3, 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 2014-CRE2, RCC 2015-CRE3 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 with 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 2014-CRE2 and RCC 2015-CRE3 were formed on behalf of the Company to invest in real estate-related securities, CMBS, property available-for-sale, bank loans, corporate bonds and asset-backed securities and were financed by the issuance of debt securities. The Manager manages the commercial real estate-related entities on behalf of the Company, and CVC Credit Partners manages the commercial finance-related 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 impacted the economic performance of the CLO. Though neither the Company nor one of its related parties managed 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 impacted 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 was expected to absorb both positive and negative variability in the CLO that could potentially be significant, the Company was determined to be the primary beneficiary of Moselle CLO and, therefore, consolidated the CLO. During the fourth quarter of 2014, the CLO began the liquidation process and all assets were subsequently sold. Whitney CLO I was 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 c ontributed $15.0 million for a 63.8% membership interest. E ach of the members of RCM Global is allocated revenues and expenses of RCM Global in accordance with his or her 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 primary beneficiary of RCM Global and, therefore, consolidated the entity. The Company's ownership interest of the portfolio's remaining assets was 45.9% as of June 30, 2015 . For a discussion of the Company’s securitizations, see Note 1 , and for a discussion of the debt issued through the securitizations, see Note 12 . For 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 operations. 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 twelve 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 future cash flows from the CDO. For the three and six months ended June 30, 2015 , the Company has provided no financial support. For the three and six months ended June 30, 2014 , the Company provided financial support of $10,000 and $549,000 , 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 the Company's consolidated VIEs as of June 30, 2015 (in thousands): Apidos I Apidos Apidos Whitney CLO I RREF RREF RCC CRE Notes 2013 RCC 2014-CRE2 RCC 2015-CRE3 Moselle RCM Global, LLC Total ASSETS (3) Cash and cash equivalents $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 189 $ 189 Restricted cash (1) 347 3,613 37,231 116 20 250 1,815 — 5 557 $ — 43,954 Investment securities available-for-sale, pledged as collateral, at fair value — — 10,268 — 5,854 56,448 — — — — 12,288 84,858 Loans, pledged as collateral — — 180,758 — 94,504 190,911 192,480 351,301 342,592 — — 1,352,546 Loans held for sale 153 1,358 4,516 — — — — — — — — 6,027 Interest receivable — — 734 — 374 1,302 792 1,324 1,240 — (298 ) 5,468 Prepaid assets — 10 24 — 15 95 28 10 — — — 182 Principal paydown receivable — — — — — — — — — — — — Other Assets — — — — — — — 9 — — — 9 Total assets (2) $ 500 $ 4,981 $ 233,531 $ 116 $ 100,767 $ 249,006 $ 195,115 $ 352,644 $ 343,837 $ 557 $ 12,179 $ 1,493,233 LIABILITIES Borrowings $ — $ — $ 208,893 $ — $ 57,205 $ 125,055 $ 145,786 $ 231,846 $ 278,228 $ 159 $ — $ 1,047,172 Accrued interest expense — — 253 — 33 97 132 125 212 — — 852 Derivatives, at fair value — — — — 346 5,600 — — — — — 5,946 Unsettled loan purchases — — — — — — — — — — (529 ) (529 ) Accounts payable and other liabilities — 3 14 — 9 1 — — — 161 2 190 Total liabilities $ — $ 3 $ 209,160 $ — $ 57,593 $ 130,753 $ 145,918 $ 231,971 $ 278,440 $ 320 $ (527 ) $ 1,053,631 (1) Includes $2.1 million designated to fund future commitments on specific commercial real estate loans 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. (3) In October 2013, the Company liquidated Apidos CLO VIII and all of the assets were sold. However, the Company still owns its share of beneficial interests that caused it to consolidate it. Unconsolidated VIEs (the Company is not the primary beneficiary, but has a variable interest) Based on management’s analysis, the Company is not the primary beneficiary of the VIEs discussed below since it does not have both (i) the power to direct the activities that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb the losses of the VIE or the right to receive the benefits from the VIE, which could be significant to the VIE. Accordingly, the following VIEs are not consolidated in the Company’s financial statements as of June 30, 2015 . 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. At the time of investment, 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, was 28.4% at June 30, 2015 . The Company’s investment in LCC was recorded at $39.8 million and $39.4 million as of June 30, 2015 and December 31, 2014 , 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 the 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 $8.5 million and $9.4 million at June 30, 2015 and December 31, 2014 , respectively. The Company recognized fee income of $896,000 and $1.9 million for the three and six months ended June 30, 2015 , respectively and $1.1 million and $2.8 million for the three and six months ended June 30, 2014 , respectively. With respect to four of these CLOs, the Company determined that it does not hold a controlling financial interest and, therefore, is not the primary beneficiary. One of 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. Investment in ZAIS In February 2015, the Company made an investment in ZAIS CLO 4 Limited, an offshore financing vehicle created to acquire and warehouse syndicated bank loans, through its wholly-owned, indirect subsidiary ZAIS and through its consolidated subsidiary Pelium Capital together with a certain Resource America employee. The Company, through ZAIS and Pelium Capital, committed to invest $10.0 million and $3.0 million , respectively, during the vehicles warehousing period. The vehicle is managed by ZAIS Leveraged Loan Manager 4, LLC (the “Collateral Manager”), an unrelated entity to the Company or to Pelium Capital, and such collateral management activities were determined to be the activities that most significantly impacted the economic performance of the entity. The Collateral Manager can be replaced either by cause by the entity’s administrative agent in an event of default or by a unanimous vote of the entity’s equity investors, excluding any preference shares held by the collateral managers or its affiliates. Although the Company has an investment in the entity that is potentially significant, because it was determined that the Company did not have the ability to kick out the collateral manager, the Company was not determined to be the primary beneficiary and, hence, not required to consolidate ZAIS CLO 4, Limited. As of June 30, 2015, the Company had invested $8.3 million and $1.8 million through ZAIS and Pelium Capital, respectively. The following table shows the classification, carrying value and maximum exposure to loss with respect to the Company’s unconsolidated VIEs as of June 30, 2015 (in thousands): Unconsolidated Variable Interest Entities LCC Unsecured Junior Subordinated Debentures Resource Capital Asset Management CDOs Investment in ZAIS Total Maximum Exposure to Loss Investment in unconsolidated entities $ 39,818 $ 1,548 $ — $ 10,228 $ 51,594 $ 51,594 Intangible assets — — 8,542 — 8,542 $ 8,542 Total assets 39,818 1,548 8,542 10,228 60,136 Borrowings — 51,308 — — 51,308 N/A Total liabilities — 51,308 — — 51,308 N/A Net asset (liability) $ 39,818 $ (49,760 ) $ 8,542 $ 10,228 $ 8,828 N/A As of June 30, 2015 , 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 INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 6 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | NOTE 4 - SUPPLEMENTAL CASH FLOW INFORMATION Supplemental disclosure of cash flow information is summarized for the periods indicated (in thousands): For the Six Months Ended June 30, 2015 2014 Non-cash investing activities include the following: Conversion of linked transaction assets to CMBS (1) $ 48,605 $ — Non-cash financing activities include the following: Distributions on common stock declared but not paid $ 21,426 $ 26,179 Distributions on preferred stock declared but not paid $ 4,078 $ 4,353 Issuance of restricted stock $ 1,158 $ 646 Conversion of linked transaction liabilities to repurchase agreement borrowings (1) $ 33,377 $ — (1) As a result of an accounting standards update adopted on January 1, 2015 (see Note 2), the Company unlinked its previously linked transactions, resulting in non-cash increases in both its CMBS and related repurchase borrowings balances. |
INVESTMENT SECURITIES TRADING
INVESTMENT SECURITIES TRADING | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES TRADING | NOTE 5 - INVESTMENT SECURITIES, TRADING The following table summarizes the Company's structured notes and RMBS that are classified as investment securities, trading and carried at fair value (in thousands). Structured notes are CLO debt securities collateralized by syndicated bank loans, and RMBS is a type of mortgage-backed debt obligation whose cash flows come from residential debt. Amortized Cost Unrealized Gains Unrealized Losses Fair Value As of June 30, 2015: Structured notes $ 32,519 $ 3,027 $ (2,866 ) $ 32,680 RMBS 1,896 — (1,896 ) — Total $ 34,415 $ 3,027 $ (4,762 ) $ 32,680 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 The Company sold ten and one securities during the six months ended June 30, 2015 and 2014, for a net realized gain of approximately $621,000 and $ 379,000 , respectively. The Company held 47 and 37 investment securities, trading as of June 30, 2015 and December 31, 2014 , respectively. |
INVESTMENT SECURITIES AVAILABLE
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | 6 Months Ended |
Jun. 30, 2015 | |
Available-for-sale Securities [Abstract] | |
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | NOTE 6 - INVESTMENT SECURITIES AVAILABLE-FOR-SALE 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 June 30, 2015: CMBS $ 181,399 $ 5,114 $ (1,191 ) $ 185,322 RMBS 2,422 112 (60 ) 2,474 ABS 55,039 8,755 (553 ) 63,241 Corporate bonds 2,419 5 (33 ) 2,391 Total $ 241,279 $ 13,986 $ (1,837 ) $ 253,428 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 (1) As of June 30, 2015 and December 31, 2014, $170.9 million and $197.8 million , respectively, of investment securities available-for-sale were pledged as collateral 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 June 30, 2015: Less than one year $ 108,353 (1) $ 107,588 6.72% Greater than one year and less than five years 95,677 88,814 6.94% Greater than five years and less than ten years 17,522 16,245 13.43% Greater than ten years 31,876 28,632 9.05% Total $ 253,428 $ 241,279 7.56% 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% (1) The Company expects that the maturity dates of these CMBS and ABS will either be extended or that they will be paid in full. At June 30, 2015 , the contractual maturities of the CMBS investment securities available-for-sale range from July 2015 to December 2022 . The contractual maturity date of RMBS investment securities available-for-sale is September 2026 . The contractual maturities of the ABS investment securities available-for-sale range from October 2015 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 Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities As of June 30, 2015: CMBS $ 31,158 $ (246 ) 24 $ 18,989 $ (945 ) 10 $ 50,147 $ (1,191 ) 34 ABS 3,258 (524 ) 11 691 (29 ) 2 3,949 (553 ) 13 Corporate bonds — — — 1,435 (33 ) 1 1,435 (33 ) 1 RMBS 1,132 (60 ) 2 — — — 1,132 (60 ) 2 Total temporarily impaired securities $ 35,548 $ (830 ) 37 $ 21,115 $ (1,007 ) 13 $ 56,663 $ (1,837 ) 50 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 impaired securities $ 38,307 $ (851 ) 31 $ 26,541 $ (2,705 ) 16 $ 64,848 $ (3,556 ) 47 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 six months ended June 30, 2015 and 2014 , the Company did not recognize any other-than-temporary impairment on its investment securities available-for-sale. The following table summarizes the Company's sales of investment securities available-for-sale (in thousands, except number of securities): For the Three Months Ended Positions Sold Par Amount Sold Realized Gain (Loss) June 30, 2015: ABS 3 $ 3,626 $ 1,838 RMBS 6 $ 28,305 $ 984 June 30, 2014: CMBS 3 $ 15,970 $ 480 The amounts above do not include redemptions. During the three and six months ended June 30, 2015 , the Company did not redeem any corporate bond positions. During the three and six months ended June 30, 2014 , the Company had one corporate bond position redeemed with a total par value of $630,000 , and recognized a loss of approximately $1,000 . In addition, during the three and six months ended June 30, 2015 , the Company redeemed one ABS position with a total par value of $400,000 , and recognized a gain of $2,900 . During the three and six months ended June 30, 2014 , the Company had one ABS position redeemed with a total par of $2.5 million , and recognized a gain of $25,500 . |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2015 | |
LOANS HELD FOR INVESTMENT [Abstract] | |
LOANS | NOTE 7 - LOANS The following is a summary of the Company’s loans (in thousands): Loan Description Principal Unamortized (Discount) Premium, net (1) Carrying Value (2) As of June 30, 2015: Commercial real estate loans: Whole loans $ 1,510,814 $ (8,211 ) $ 1,502,603 B notes 16,026 (29 ) 15,997 Mezzanine loans 54,821 1 54,822 Total commercial real estate loans 1,581,661 (8,239 ) 1,573,422 Bank loans 182,338 (581 ) 181,757 Middle market loans 331,822 (827 ) 330,995 Residential mortgage loans, held for investment 3,030 — 3,030 Subtotal loans before allowances 2,098,851 (9,647 ) 2,089,204 Allowance for loan loss (46,319 ) — (46,319 ) Total loans held for investment, net of allowances 2,052,532 (9,647 ) 2,042,885 Bank loans held for sale 6,028 — 6,028 Residential mortgage loans held for sale, at fair value (3) 105,094 — 105,094 Total loans held for sale 111,122 — 111,122 Total loans, net $ 2,163,654 $ (9,647 ) $ 2,154,007 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 held for investment, 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 $ 2,047,529 $ (9,813 ) $ 2,037,716 (1) Amounts include deferred amendment fees of $53,000 and $88,000 and deferred upfront fees of $27,000 and $82,000 being amortized over the life of the bank loans as of June 30, 2015 and December 31, 2014 , respectively. Amounts also include loan origination fees of $8.2 million and $7.6 million as of June 30, 2015 and December 31, 2014 , respectively. (2) Substantially all loans are pledged as collateral under various borrowings at June 30, 2015 and December 31, 2014 , respectively. (3) Residential mortgage loans held for sale, at fair value, consisted of $64.8 million and $40.3 million of agency-conforming and jumbo mortgage loans, respectively, as of June 30, 2015 . Residential mortgage loans held for sale, at fair value, consisted of $28.9 million and $82.6 million of agency-conforming and jumbo mortgage loans, respectively, as of December 31, 2014 . 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 Interest Rates Maturity Dates (3) As of June 30, 2015: Whole loans, floating rate (1) (4) (6) 83 $ 1,502,603 LIBOR plus 1.75% to July 2015 to February 2019 B notes, fixed rate 1 15,997 8.68% April 2016 Mezzanine loans, fixed rate (7) 3 54,822 9.01% to 16.00% January 2016 to Total (2) 87 $ 1,573,422 As of December 31, 2014: Whole loans, floating rate (1) (5) (6) 73 $ 1,263,592 LIBOR plus 1.75% to May 2015 to B notes, fixed rate 1 16,072 8.68% April 2016 Mezzanine loans, floating rate 1 12,558 LIBOR plus 15.32% April 2016 Mezzanine loans, fixed rate 3 54,808 0.50% to 18.71% January 2016 to Total (2) 78 $ 1,347,030 (1) Whole loans had $104.5 million and $105.1 million in unfunded loan commitments as of June 30, 2015 and December 31, 2014 , 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) Totals do not include allowance for loan losses of $42.1 million and $4.0 million as of June 30, 2015 and December 31, 2014 , respectively. (3) Maturity dates do not include possible extension options that may be available to the borrowers. Additionally, the whole loan set to mature in July 2015 paid off in full in July 2015. (4) Includes two whole loans with a combined $12.3 million mezzanine component that have fixed rates of 12.0% , and two whole loans with a combined $4.2 million mezzanine component that have fixed rates of 15.0% , as of June 30, 2015 . (5) Includes two whole loans with a combined $12.0 million mezzanine component that have fixed rates of 12.0% , and two whole loans with a combined $4.2 million mezzanine component that have fixed rates of 15.0% , as of December 31, 2014 . (6) Includes a $799,000 junior mezzanine tranche of a whole loan that has a fixed rate of 10.0% as of June 30, 2015 and December 31, 2014 . (7) Contracted interest rates and maturity dates do not include rates or maturity dates associated with one loan with an amortized cost of $38.1 million that was fully reserved as of June 30, 2015 . The Company does no t accrue interest on this loan as June 30, 2015 . The following is a summary of the weighted average maturity of the Company’s commercial real estate loans, at amortized cost (in thousands): Description 2015 2016 2017 and Thereafter Total As of June 30, 2015 B notes $ — $ 15,997 $ — $ 15,997 Mezzanine loans — 16,750 38,072 54,822 Whole loans 3,250 27,691 1,471,662 1,502,603 Total (1) $ 3,250 $ 60,438 $ 1,509,734 $ 1,573,422 As of December 31, 2014: 2015 2016 2017 and Thereafter Total 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 (1) Weighted average maturity of commercial real estate loans assumes full exercise of extension options available to borrowers. At June 30, 2015 and December 31, 2014 , approximately 22.7% and 27.4% , respectively, of the Company’s commercial real estate loan portfolio was concentrated in California; approximately 6.2% and 7.3% , respectively, in Arizona, and approximately 28.8% and 27.3% , respectively, in Texas. Bank Loans At June 30, 2015 , the Company’s bank loan portfolio, including loans held for sale, consisted of $186.8 million (net of allowance of $997,000 ) of floating rate loans, which bear interest ranging between the three month London Interbank Offered Rate (“LIBOR”) plus 1.50% and the three month LIBOR plus 8.50% with maturity dates ranging from July 2015 to February 2024 . At December 31, 2014 , the Company’s bank loan portfolio, including loans held for sale, consisted of $330.4 million (net of allowance of $570,000 ) of floating rate loans, which bear interest ranging between the three month LIBOR plus 1.25% and the three month LIBOR plus 8.75% with maturity dates ranging from January 2015 to February 2024 . The following table provides information as to the lien position and status of the Company's bank loans, at amortized cost (in thousands): Apidos I Apidos III Apidos Cinco Total As of June 30, 2015: Loans held for investment: First lien loans $ — $ — $ 179,219 $ 179,219 Second lien loans — — 2,064 2,064 Third lien loans — — — — Defaulted first lien loans — — 215 215 Defaulted second lien loans — — 259 259 Total — — 181,757 181,757 First lien loans held for sale at fair value 154 1,358 4,516 6,028 Total $ 154 $ 1,358 $ 186,273 $ 187,785 As of December 31, 2014: Loans held for investment: First lien loans $ 153 $ 80,196 $ 245,377 $ 325,726 Second lien loans — — 3,572 3,572 Third lien loans — — — — Defaulted first lien loans — — — — Defaulted second lien loans — 971 379 1,350 Total 153 81,167 249,328 330,648 First lien loans held for sale at fair value — — 282 $ 282 Total $ 153 $ 81,167 $ 249,610 $ 330,930 The following is a summary of the weighted average maturity of the Company’s bank loans, at amortized cost and loans held-for-sale, at the lower of cost or market (in thousands): June 30, December 31, Less than one year $ 6,580 $ 7,829 Greater than one year and less than five years 175,208 274,332 Five years or greater 5,997 48,769 $ 187,785 $ 330,930 At June 30, 2015 approximately 11.8% , 10.9% and 10.3% , of the Company’s bank loan portfolio was concentrated in the collective industry grouping of diversified/conglomerate service, automobile and healthcare, education and childcare, respectively. At December 31, 2014 , approximately 11.7% , 8.5% and 17.5% of the Company’s bank loan portfolio was concentrated in the collective industry grouping of diversified/conglomerate service, automobile and healthcare, education and childcare, respectively. Middle Market Loans At June 30, 2015 , the Company’s middle market loan portfolio consisted of $ 327.8 million (net of allowance of $3.2 million ) of floating rate loans, which bear interest ranging between the one or three month LIBOR plus 5.50% and one or three month LIBOR plus 11.75% with maturity dates ranging from December 2016 to May 2023 . At December 31, 2014 , the Company’s middle market loan portfolio consisted of $250.1 million of floating rate loans, which bore interest ranging between the three month LIBOR plus 5.50% and the three month LIBOR plus 9.25% with maturity dates ranging from December 2016 to November 2022 . The following table provides information as to the lien position and status of middle market loans, at amortized cost (in thousands): June 30, December 31, First Lien $ 218,013 $ 149,287 Second Lien 108,026 100,826 First Lien Defaulted — — Second Lien Defaulted 4,956 — $ 330,995 $ 250,113 The following is a summary of the weighted average maturity of the Company’s middle market loans, at amortized cost (in thousands): June 30, December 31, Less than one year $ — $ — Greater than one year and less than five years 191,670 132,353 Five years or greater 139,325 117,760 $ 330,995 $ 250,113 At June 30, 2015 and December 31, 2014 , approximately 12.3% and 2.8% , respectively, of the Company's middle market loan portfolio was concentrated in the collective industry grouping of diversified and conglomerate service and 11.2% and 13.7% , respectively, of the Company's middle market loan portfolio was concentrated in the collective industry grouping of personal, food and miscellaneous service. The following is a summary of the allocation of the allowance for loan loss with respect to the Company's loans (in thousands, except percentages) by asset class: Description Allowance for Loan Loss Percentage of Total Allowance As of June 30, 2015: B notes $ 20 0.04% Mezzanine loans 38,145 82.36% Whole loans 3,950 8.53% Bank loans 997 2.15% Middle market loans 3,207 6.92% Total $ 46,319 As of December 31, 2014: B notes $ 55 1.19% Mezzanine loans 230 4.99% Whole loans 3,758 81.46% Bank loans 570 12.36% Total $ 4,613 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 which, as of period end, the Company has not received and applied to the outstanding loan balance. At June 30, 2015 , principal paydown receivables relating to the Company's commercial real estate loan portfolio totaled $11.5 million , the entirety of which the Company received in cash in July 2015. At December 31, 2014 , principal paydown receivables relating to the Company's commercial real estate loan portfolio totaled $40.9 million , the entirety of which the Company received in cash during January 2015. During the quarter ended June 30, 2015 , approximately 43.8% of the Company's residential mortgage loans were originated in Georgia, 10.7% in Virgina, 9.8% in Utah, 5.0% in Florida, and 4.8% in North Carolina. 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. |
INVESTMENTS IN UNCONSOLIDATED E
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | NOTE 8 - INVESTMENTS IN UNCONSOLIDATED ENTITIES The following table shows the Company's investments in unconsolidated entities as of June 30, 2015 and December 31, 2014 and equity in earnings of unconsolidated subsidiaries for the three and six months ended June 30, 2015 and 2014 (in thousands): Equity in Earnings of Unconsolidated subsidiaries Balance as of Balance as of For the For the For the For the Ownership % June 30, December 31, June 30, June 30, June 30, June 30, Varde Investment Partners, L.P 7.5% $ 654 $ 654 $ — $ — $ (19 ) $ (20 ) RRE VIP Borrower, LLC (1) 3% to 5% — — — 46 870 1,736 Investment in LCC Preferred Stock 28.4% 39,819 39,416 350 402 (278 ) (872 ) Investment in CVC Global Credit Opportunities Fund (2) 17.4% 14,129 18,209 312 920 1,124 1,958 Investment in (3) 60.7% — — — — — (75 ) Investment in School Lane House (1) — — — — 65 1,049 Subtotal 54,602 58,279 662 1,368 1,762 3,776 Investment in RCT I and II (4) 3.0% 1,548 1,548 (602 ) (1,195 ) (594 ) (1,184 ) Investment in Preferred Equity (1) (5) — — — — 167 244 Total $ 56,150 $ 59,827 $ 60 $ 173 $ 1,335 $ 2,836 (1) Investment in School Lane House, Investment in RRE VIP Borrower and the Investment in Preferred Equity were sold or repaid as of December 31, 2014. (2) I n March 2015, the Company elected a partial redemption of $5.0 million from the fund. (3) 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. Ownership percentage represents ownership after consolidation. (4) For the three and six months ended June 30, 2015 and 2014 , these amounts are recorded in interest expense on the Company's consolidated statements of operations. (5) For the three and six months ended June 30, 2014 , these amounts are recorded in interest income on loans on the Company's consolidated statements of operations. |
FINANCING RECEIVABLES
FINANCING RECEIVABLES | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
FINANCING RECEIVABLES | NOTE 9 - 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 June 30, 2015: Allowance for Loan Losses: Allowance for losses at January 1, 2015 $ 4,043 $ 570 $ — $ — $ — $ 4,613 Provision (recovery) for loan losses 38,072 1,734 3,320 (110 ) (216 ) 42,800 Loans charged-off — (1,307 ) (113 ) 110 216 (1,094 ) Recoveries — — — — — — Allowance for losses at June 30, 2015 $ 42,115 $ 997 $ 3,207 $ — $ — $ 46,319 Ending balance: Individually evaluated for impairment $ 40,275 $ 257 $ 3,207 $ — $ — $ 43,739 Collectively evaluated for impairment $ 1,840 $ 740 $ — $ — $ — $ 2,580 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — Loans: Ending balance: Individually evaluated for impairment $ 128,927 $ 474 $ 330,995 $ — $ — $ 460,396 Collectively evaluated for impairment $ 1,444,495 $ 181,283 $ — $ 3,030 $ — $ 1,628,808 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — As of December 31, 2014: Allowance for Loan Losses: Allowance for losses at January 1, 2014 $ 10,416 $ 3,391 $ — $ — $ — $ 13,807 Provision for loan losses (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: 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 $ — $ — $ — $ — $ — $ — 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. A loan with a rating of a 1 is considered performing within expectations, a loan with a rating of a 2 is considered watching closely with limited liquidity concerns, a loan with a rating of a 3 is considered to have possible future liquidity concerns, a loan with a rating of a 4 is considered to have nearer term liquidity concerns, and a loan with a rating of a 5 has defaulted. The Company also designates loans that are sold after the period end as held for sale at the lower of their fair market value or cost, net of any allowances and costs associated with the loan sales. The Company considers metrics such as performance of the underlying company, liquidity, collectability of interest, enterprise valuation, default probability, ratings from rating agencies and industry dynamics in grading its bank loans. Credit risk profiles of bank loans were as follows (in thousands): Rating 1 Rating 2 Rating 3 Rating 4 Rating 5 Held for Sale Total As of June 30, 2015: Bank loans $ 162,007 $ 12,577 $ 4,249 $ 2,450 $ 474 $ 6,028 $ 187,785 As of December 31, 2014: Bank loans $ 291,214 $ 32,660 $ 5,424 $ — $ 1,350 $ 282 $ 330,930 All of the Company’s bank loans were current with respect to debt service with the exception of two loans with an aggregate amortized cost of $474,000 as of June 30, 2015 . As of December 31, 2014 , all of the Company's bank loans were current with respect to debt service with the exception of two loans with an amortized aggregate cost of $1.4 million , one of which defaulted as of March 31, 2014 and the other of which defaulted as of September 30, 2014. 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 1 is considered performing above expectations, a loan with a rating of a 2 is considered performing within expectations, a loan with a rating of a 3 is considered performing below expectations and requires close monitoring but no loss of interest or principal is expected, a loan with a rating of a 4 is considered to performing below expectations and some loss of interest or dividend is expected but no loss of principal, and a loan with a rating of a 5 is considered performing substantially below expectations, in default and some loss of principal is expected. 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 middle market loans were as follows (in thousands): Rating 1 Rating 2 Rating 3 Rating 4 Rating 5 Held for Sale Total As of June 30, 2015: Middle market loans $ 19,225 $ 292,983 $ 13,831 $ — $ 4,956 $ — $ 330,995 As of December 31, 2014: Middle market loans $ — $ 240,245 $ 9,868 $ — $ — $ — $ 250,113 As of June 30, 2015 , one loan was in default with a risk rating of a 5. The rest of the Company's portfolio is current with respect to debt service. All of the Company’s middle market loans were current with respect to debt service as of December 31, 2014 . 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. A loan with a rating of a 1 is considered to have satisfactory performance with no issues noted. A loan is graded with a rating of a 2 if a surveillance trigger event has occurred without mitigating circumstance to support such event. These loans are closely monitored and evaluated for possible migration to rating 3. A loan with a rating of 3 has experienced an extended decline in operating performance, a significant deviation from its origination plan or the occurrence of one or more surveillance trigger events which create an increased risk for potential default. A loan with a rating of a 4 is considered to be in default or that default is imminent and full recovery of the unpaid principal balance is improbable. The Company also designates loans that are sold after the period end at the lower of their fair market value or cost, net of any allowances and costs associated with the loan sales. In addition to the underlying performance of the loan collateral, the Company considers metrics such as the strength of underlying sponsorship, payment history, collectability of interest, structural credit enhancements, market trends and loan terms in grading its commercial real estate loans. During the quarter ended June 30, 2015 , the Company recorded an allowance for loan loss on a subordinated mezzanine loan position that was acquired in 2007. The outstanding loan balance of $38.1 million was fully reserved and associated accrued interest of $3.0 million was reversed against interest income, for a total charge to operations of $41.1 million . The loan was originally supported by a portfolio of 13 hotel properties, most of which were luxury brand hotels. An impairment analysis showed that the fair value of the underlying collateral declined from that as of March 31, 2015. Contributing to this decline was a modification of the senior mortgage that accelerated the time horizon for disposing of the three remaining properties collateralizing the loan. Compounding this fact, the remaining three luxury brand hotel properties securing the loan are located in or near San Juan, Puerto Rico, and recent economic and credit disruptions in Puerto Rico resulted in events that caused the Company to determine that realizable values had declined rapidly and that the troubled debt restructuring should be fully reserved as of June 30, 2015. Credit risk profiles of commercial real estate loans were as follows (in thousands): Rating 1 Rating 2 Rating 3 Rating 4 Held for Sale Total As of June 30, 2015 Whole loans $ 1,467,901 $ 32,500 $ — $ 2,202 $ — $ 1,502,603 B notes 15,997 — — — — 15,997 Mezzanine loans 16,750 — — 38,072 — 54,822 $ 1,500,648 $ 32,500 $ — $ 40,274 $ — $ 1,573,422 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 The Company had no delinquent commercial real estate loans as of June 30, 2015 and December 31, 2014 . Residential Mortgage Loans Residential mortgage loans are reviewed periodically for collectability in light of historical experience, the nature and amount of the loan portfolio, adverse situations that may affect the borrower's ability to repay, estimated value of any underlying collateral, and prevailing underlying conditions. The Company also designates loans that are sold after the period end as held for sale at the lower of their fair market value or cost. Loans Receivable - Related Party The Company recorded a recovery on loan losses of $216,000 during the six months ended June 30, 2015 for provisions recorded during the year ended December 31, 2014 . 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 onto the Company's books in lieu of cash settlement 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 (3) Total Loans Receivable Total Loans > 90 Days and Accruing As of June 30, 2015: Whole loans $ — $ — $ — $ — $ 1,502,603 $ 1,502,603 $ — B notes — — — — 15,997 15,997 — Mezzanine loans — — — — 54,822 54,822 — Bank loans (1) — — 474 474 187,311 187,785 — Middle market loans — 4,956 — 4,956 326,039 330,995 — Residential mortgage loans (2) — 80 116 196 107,928 108,124 — Total loans $ — $ 5,036 $ 590 $ 5,626 $ 2,194,700 $ 2,200,326 $ — 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 — — — — 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 $ — (1) Contains $6.0 million and $282,000 of bank loans held for sale at June 30, 2015 and December 31, 2014 , respectively. (2) Contains $105.1 million and $111.5 million of residential mortgage loans held for sale at June 30, 2015 and December 31, 2014 , respectively. (3) Current loans include one impaired mezzanine loan and one impaired whole loan with amortized costs of $38.1 million and $2.2 million , respectively, that were both fully reserved as of June 30, 2015 . 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 June 30, 2015: Loans without a specific valuation allowance: Whole loans $ 128,927 $ 128,927 $ — $ 128,520 $ 14,606 B notes $ — $ — $ — $ — $ — Mezzanine loans $ — $ — $ — $ — $ — Bank loans $ — $ — $ — $ — $ — Middle market loans $ — $ — $ — $ — $ — Residential mortgage loans $ 3,030 $ 3,030 $ — $ 2,818 $ 81 Loans receivable - related party $ — $ — $ — $ — $ — Loans with a specific valuation allowance: Whole loans $ 2,202 $ 2,202 $ (2,202 ) $ 2,202 $ 26 B notes $ — $ — $ — $ — $ — Mezzanine loans $ 38,072 $ 38,072 $ (38,072 ) $ 38,072 $ — Bank loans $ 474 $ 474 $ (257 ) $ 237 $ — Middle market loans $ 4,956 $ 4,956 $ (3,207 ) $ 4,956 $ — Residential mortgage loans $ — $ — $ — $ — $ — Loans receivable - related party $ — $ — $ — $ — $ — Total: Whole loans $ 131,129 $ 131,129 $ (2,202 ) $ 130,722 $ 14,632 B notes — — — — — Mezzanine loans 38,072 38,072 (38,072 ) 38,072 — Bank loans 474 474 (257 ) 237 — Middle market loans 4,956 4,956 (3,207 ) 4,956 — Residential mortgage loans 3,030 3,030 — 2,818 81 Loans receivable - related party — — — — — $ 177,661 $ 177,661 $ (43,738 ) $ 176,805 $ 14,713 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 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 Six Months Ended June 30, 2015 Whole loans 2 $ 67,459 $ 67,459 B notes — — — Mezzanine loans 1 38,072 0 Bank loans — — — Middle market loans — — — Residential mortgage loans — — — Loans receivable - related party — — — Total loans 3 $ 105,531 $ 67,459 The Company had no troubled-debt restructurings during the six months ended June 30, 2014 . As of June 30, 2015 and 2014 , there were no commercial real estate loan troubled-debt restructurings that subsequently defaulted. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | NOTE 10 - BUSINESS COMBINATIONS On February 26, 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. On April 30, 2015, the Company committed to another capital contribution in the amount of $750,000 increasing its ownership of LCF to 60.7% . The first installment of $375,000 was funded on April 30, 2015 and the second installment of $375,000 was funded on July 30, 2015. The Company engaged a third party expert to assist in determining the fair values of the assets and liabilities assumed on this investment. Based on the final valuation, which determined an enterprise value of LCF of approximately $4.1 million , and in accordance with FASB ASC Topic 805, the Company confirmed that no further adjustments are necessary. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 11 - INTANGIBLE ASSETS The following table summarizes the activity of intangible assets for the period indicated (in thousands): Management Contracts Wholesale/Correspondent Relationships Mortgage Servicing Rights Total Balance, January 1, 2015 $ 9,434 $ 302 $ 8,874 $ 18,610 Additions — — 8,360 8,360 Sales — — — — Amortization (892 ) (127 ) (1,831 ) (2,850 ) Total before impairment adjustment 8,542 175 15,403 24,120 Temporary impairment adjustment — — 250 250 Balance, June 30, 2015 $ 8,542 $ 175 $ 15,653 $ 24,370 For the three and six months ended June 30, 2015 , the Company recorded amortization expense of $513,000 and $1.0 million , respectively, in relation to the Company's management contracts and wholesale/correspondent relationships. For the three and six months ended June 30, 2014 , the Company recorded amortization expense of $512,000 and $1.0 million , respectively. The Company expects to record amortization expense on its management contracts and wholesale/correspondent relationships of approximately $2.0 million for the year ending December 31, 2015 , $1.8 million for the year ending December 31, 2016 , $1.8 million for the year ending December 31, 2017 , $1.6 million for the year ending 2018 , and $1.0 million for the year ending December 31, 2019 . The weighted average amortization period was 6.2 years and 6.6 years at June 30, 2015 and December 31, 2014 , respectively. Management Contracts and Wholesale/Correspondent Relationships The Company recognized fee income on management contracts and wholesale/correspondent relationships of $896,000 and $1.9 million for the three and six months ended June 30, 2015 , respectively, and $1.1 million and $2.8 million for the three and six months ended June 30, 2014 , respectively. For the three and six months ended June 30, 2015 , the Company recognized $1.0 million and $1.8 million , respectively, of amortization expense related to mortgage servicing rights. For the three and six months ended June 30, 2014 , the Company recognized $396,000 and $652,000 , respectively. The Company expects to recognize amortization related to its mortgage servicing rights portfolio in the amount of $ 3.5 million for the year ending December 31, 2015 , $3.4 million for the year ending December 31, 2016, $3.3 million for the year ending December 31, 2017, $3.1 million for the year ending December 31, 2018, and $2.5 million for the year ending December 31, 2019. The weighted average amortization period was 1.2 years and 1.4 years at June 30, 2015 and December 31, 2014 , respectively. 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 $1.4 billion and $894.8 million as of June 30, 2015 and 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 the following (in thousands): June 30, December 31, Balance, beginning of period $ 894,767 $ 433,153 Additions 633,511 519,915 Payoffs, sales and curtailments (79,666 ) (58,301 ) Balance, end of period $ 1,448,612 $ 894,767 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 fee income as follows (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 Servicing fees from capitalized portfolio $ 911 $ 336 $ 1,462 $ 644 Late fees $ 18 $ 16 $ 41 $ 39 Other ancillary servicing revenue $ 3 $ (1 ) $ 7 $ 3 |
BORROWINGS
BORROWINGS | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
BORROWINGS | NOTE 12 - BORROWINGS The Company historically has financed the acquisition of its investments, including investment securities and loans, through the use of secured and unsecured borrowings in the form of securitized notes, repurchase agreements, secured term facilities, warehouse facilities, convertible senior notes, senior secured revolving credit agreements and trust preferred securities issuances. Certain information with respect to the Company’s borrowings is summarized in the following table (in thousands, except percentages): Principal Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Weighted Average Value of As of June 30, 2015: RREF CDO 2006-1 Senior Notes $ 57,205 $ — $ 57,205 2.28% 31.1 years $ 100,062 RREF CDO 2007-1 Senior Notes 125,055 — 125,055 1.19% 31.3 years 247,292 RCC CRE Notes 2013 Senior Notes 148,115 2,329 145,786 2.28% 13.5 years 192,666 RCC 2014-CRE2 Senior Notes 235,344 3,498 231,846 1.48% 16.8 years 348,194 RCC 2015-CRE3 Senior Notes 282,127 3,899 278,228 2.08% 16.7 years 340,076 Apidos Cinco CDO Senior Notes 208,893 — 208,893 0.93% 4.9 years 229,238 Moselle CLO S.A. Securitized Borrowings, at fair value (1) 159 — 159 N/A N/A 557 Unsecured Junior Subordinated Debentures (2) 51,548 240 51,308 4.20% 21.3 years — 6.0% Convertible Senior Notes 115,000 5,762 109,238 6.00% 3.4 years — 8.0% Convertible Senior Notes 100,000 5,170 94,830 8.00% 4.5 years — CRE - Term Repurchase Facilities (3) 174,928 1,204 173,724 2.24% 18 days 273,686 CMBS - Term Repurchase Facility (4) 29,929 — 29,929 1.38% 18 days 34,330 Residential Mortgage Financing Agreements 96,580 — 96,580 2.74% 62 days 128,465 CMBS - Short Term Repurchase Agreements (5) 77,171 — 77,171 1.71% 20 days 113,381 Senior Secured Revolving Credit Agreement 151,000 3,491 147,509 3.05% 2.2 years 327,681 Total $ 1,853,054 $ 25,593 $ 1,827,461 2.56% 10.6 years $ 2,335,628 Principal Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Weighted Average Value of 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 2014-CRE2 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 S.A. Senior Notes, at fair value (6) 63,321 — 63,321 1.49% 5.0 years 93,576 Moselle CLO S.A. 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 Residential Investments - Term Repurchase Facility (6) 22,248 36 22,212 1.16% 1 day 27,885 Residential Mortgage Financing Agreements (7) 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 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 (1) The securitized borrowings were collateralized by the same assets as the Moselle CLO Senior Notes. (2) Amount represents junior subordinated debentures issued to RCT I and RCT II in May 2006 and September 2006, respectively. (3) Amounts also include accrued interest expense of $187,000 and $198,000 related to CRE repurchase facilities as of June 30, 2015 and December 31, 2014 , respectively. (4) Amounts also include accrued interest expense of $13,000 and $12,000 related to CMBS repurchase facilities as of June 30, 2015 and December 31, 2014 , respectively. Amounts do not reflect CMBS repurchase agreement borrowings that are components of linked transactions as of December 31, 2014 . (5) Amounts also includes accrued interest expense of $39,000 and $31,000 related to CMBS short term repurchase facilities as of June 30, 2015 and December 31, 2014 . (6) The fair value option was 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 . (7) Amount also includes interest expenses of $20,000 related to residential investment repurchase facilities as of 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 June 30, 2015 (in millions) RREF CDO 2006-1 Senior Notes August 2006 August 2046 September 2011 $ 194.2 RREF CDO 2007-1 Senior Notes June 2007 September 2046 June 2012 $ 215.9 RCC CRE Notes 2013 Senior Notes December 2013 December 2028 N/A $ 112.7 RCC 2014-CRE2 Senior Notes July 2014 April 2032 N/A $ — RCC 2015-CRE3 Senior Notes February 2015 March 2032 N/A $ — Apidos CDO III Senior Notes May 2006 September 2020 June 2012 $ 262.5 Apidos Cinco CDO Senior Notes May 2007 May 2020 May 2014 $ 113.1 Moselle CLO S.A. Securitized Borrowings October 2005 January 2020 January 2012 $ 5.0 In November 2014, the Company called Moselle CLO S.A, substantially liquidating the securitization's assets. Proceeds from the sale of these assets, plus proceeds from previous sales and paydowns in the CLO, were used to pay down $167.2 million of Senior Notes in full, and $5.0 million of the securitized borrowings as of June 30, 2015 . In June 2015, the Company called Apidos CDO III, substantially liquidating the securitization's assets. Proceeds from the sale of these assets, plus proceeds from previous sales and paydowns in the CDO, were used to pay down the securitization's $262.5 million of Senior Notes in full as of June 30, 2015 . The investments held by the Company's securitizations collateralize the securitization's borrowings and, as a result, are not available to the Company, its creditors, or stockholders. All senior notes retained at closing or subsequently repurchased by the Company as of June 30, 2015 eliminate in consolidation. RCC 2015-CRE3 In February 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 unrelated investors. RCC Real Estate purchased 100% of the Class E and Class F senior notes for $20.8 million and $15.6 million , respectively. In addition, Resource Real Estate Funding 2015-CRE3 Investor, LLC, a subsidiary of RCC Real Estate, purchased a $27.7 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 2015-CRE3, 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 2015-CRE3. At closing, the senior notes issued to investors by RCC 2015-CRE3 consisted of the following classes: (i) $193.9 million of Class A notes bearing interest at one-month LIBOR plus 1.40% ; (ii) $17.3 million of Class A-S notes bearing interest at one-month LIBOR plus 1.65% ; (iii) $19.5 million of Class B notes bearing interest at one-month LIBOR plus 2.40% ; (iv) $20.8 million of Class C notes bearing interest at one-month LIBOR plus 3.15% ; (v) $30.7 million of Class D notes bearing interest at one-month LIBOR plus 4.00% ; (vi) $20.8 million of Class E notes bearing interest at one-month LIBOR plus 4.75% ; (vii) and $15.6 million of Class F notes bearing interest at one-month LIBOR plus 5.50% . All of the notes issued mature in March 2032, although the Company has the right to call the notes anytime after March 2017 until maturity. There is no reinvestment period in RCC 2015-CRE3; however, principal repayments, for a period ending in February 2017, may be used to purchase funding participations with respect to existing collateral held outside of the securitization. 8.0% Convertible Senior Notes In January 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, ("8.0% Convertible Senior Notes"). The 8.0% Convertible Senior Notes are convertible at the option of the holder at a current conversion rate of 187.4414 common shares per $1,000 principal amount of 8.0% Convertible Senior Notes (equivalent to an initial conversion price of $5.34 per common share). Upon conversion of 8.0% Convertible Senior Notes by a holder, the holder will receive cash, the Company's common shares or a combination of cash and the Company's common shares, at the Company's election. After deducting a $1.0 million underwriting discount and deferred debt issuance costs totaling $2.1 million , the Company received approximately $97.0 million of net proceeds. In addition, the Company recorded a discount of $2.5 million on the 8.0% Convertible Senior Notes that 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. The aforementioned market discounts and the deferred debt issuance costs will be amortized on a straight-line basis as additional interest expense through maturity on January 15, 2020. Interest on the 8.0% Convertible Senior Notes is paid semi-annually. Repurchase and Credit Facilities Borrowings under the Company's 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 (dollars in thousands): As of June 30, 2015 As of December 31, 2014 Outstanding Value of Number of Weighted Average Outstanding Value of Number of Weighted Average CMBS Term Wells Fargo Bank $ 29,929 $ 34,330 35 1.38% $ 24,967 $ 30,180 33 1.35% CRE Term Wells Fargo Bank (1) 173,745 273,686 13 2.24% 179,762 258,223 15 2.38% Deutsche Bank AG (2) (21 ) — — —% 25,920 39,348 2 2.78% Short-Term Repurchase Deutsche Bank Securities, LLC 24,114 37,707 4 1.64% 33,783 44,751 8 1.62% Wells Fargo Securities, LLC 53,057 75,674 20 1.72% 10,442 17,695 1 1.66% Residential Investments Term Wells Fargo Bank (3) — — — —% 22,212 27,885 6 1.16% Residential Mortgage New Century Bank 40,313 46,849 195 2.73% 41,387 51,961 158 2.82% Wells Fargo Bank 56,267 81,616 170 2.75% 61,189 95,511 104 2.75% Totals $ 377,404 $ 549,862 $ 399,662 $ 565,554 (1) The Wells Fargo CRE term repurchase facility borrowing includes $1.2 million and $1.7 million of deferred debt issuance costs as of June 30, 2015 and December 31, 2014 , respectively. (2) The Deutsche Bank term repurchase facility includes $21,000 and $268,000 of deferred debt issuance costs as of June 30, 2015 and December 31, 2014 , respectively. (3) The Wells Fargo residential investments term repurchase facility includes $36,000 of deferred debt issuance costs as of December 31, 2014 . As the result of an accounting standards update adopted on January 1, 2015 ( see Note 2 ), the Company unlinked its previously linked transactions and disclosed affected asset, liability, income and expense balances at their gross values in its consolidated financial statements. Accordingly, the Company had no repurchase agreements being accounted for as linked transactions as of June 30, 2015 . The assets in the following table were accounted for as linked transactions as of December 31, 2014 . These linked repurchase agreements are not included in borrowings on the Company's consolidated balance sheets ( see Note 20 ). As of December 31, 2014 Borrowings (1) Value of Collateral Number Weighted Average CMBS Term Wells Fargo Bank $ 4,941 $ 6,371 7 1.67% Short-Term Repurchase JP Morgan Securities, LLC — — — —% Wells Fargo Securities, LLC 4,108 6,233 2 1.37% Deutsche Bank Securities, LLC 24,348 36,001 10 1.57% Totals $ 33,397 $ 48,605 The following table shows information about the amount at risk under the repurchase facilities (dollars in thousands): Amount at (1) Weighted Average Weighted Average As of June 30, 2015: CMBS Term Repurchase Facility Wells Fargo Bank, National Association $ 4,024 18 1.38% CRE Term Repurchase Facilities Wells Fargo Bank, National Association $ 99,791 18 2.24% Short-Term Repurchase Agreements - CMBS Wells Fargo Securities, LLC $ 13,236 11 1.64% Deutsche Bank Securities, LLC $ 22,784 24 1.72% Residential Mortgage Financing Agreements Wells Fargo Bank $ 25,349 62 2.75% New Century Bank $ 6,537 61 2.73% As of December 31, 2014: CMBS Term Repurchase Facility Wells Fargo Bank, National Association $ 6,486 20 1.35% Residential Investments 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 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% (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. The Company is in compliance with all financial covenants as defined in the respective agreements as of June 30, 2015 . Residential Investments – 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. 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. In January 2015, the Sellers amended the agreement with Wells Fargo to classify trust certificates as assets eligible for sale and repurchase under the 2014 Facility. The maximum borrowing amounts of the 2014 Facility under the amended agreement are $110.0 million with respect to purchased residential mortgage-backed securities, and $165.0 million with respect to trust certificates collateralized by jumbo mortgage loans. The 2014 Facility's maximum pricing margins are 1.45% and 3.00% on residential mortgage- backed securities and jumbo mortgage loans, respectively. In June 2015, the Company amended the agreement with Wells Fargo to extend the facility's termination date to August 21, 2015, with no other material changes made to the facility's terms. Residential Mortgage Financing Agreements PCM has master repurchase agreements with New Century Bank d/b/a Customer's Bank ("New Century") and Wells Fargo Bank, NA ("Wells Fargo") to finance the acquisition of residential mortgage loans. In June 2015, PCM amended its agreement with Wells Fargo to extend the facility's termination date to August 31, 2015, with no other material changes made to the facility's terms. PCM was in compliance with all financial covenant requirements under the New Century and Wells Fargo agreements as of June 30, 2015 . Senior Secured Revolving Credit Agreement 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 agent bank to finance the origination of middle market and syndicated loans. The availability under the Northport Credit Facility was increased to $125.0 million as of September 30, 2014 and again to $140.0 million with an additional commitment from ING Bank early in March 2015. During the second quarter 2015, the Company entered into the first and second amendments of the Northport Credit Facility which increased the original commitment from $225.0 million to $300.0 million and secured $85.0 million of additional availability, bringing the total available under the Northport Credit Facility to $225.0 million as of June 30, 2015 . As of June 30, 2015 , $151.0 million was outstanding on the Northport Credit Facility. Under the first amendment both the ability to access to draws on the Northport Credit Facility and maturity have been extended six months until March 31, 2018 and March 31, 2019 respectively. Under the terms of the amendment the Northport Credit Facility applicable margins increased 25 basis points. 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 2.75% or (ii) the applicable base rate (prime rate of 3.25% as of June 30, 2015 ) plus 1.75% . During the six month period following September 18, 2014, the Company was charged a commitment fee on any unused balance of 0.375% per annum if the unused balance was greater than 35% of the total commitment or 0.50% per annum if it was less than 35% of the total commitment. Following that period, the commitment fee on any unused balance became 0.375% per annum if the outstanding balance is greater than 35% of the total commitment or 1.00% per annum if the outstanding balance is 35% or less of the total commitment. At June 30, 2015 , there was an unused balance of $74.0 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 Northport 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 June 30, 2015 , the Company is in compliance with all covenants under the agreement. The Company guarantees Northport LLC's performance of its obligations under the Northport Credit Facility. Contractual maturity dates of the Company's borrowings by category and year are present in the table below: Total 2015 2016 2017 2018 2019 and Thereafter CDOs $ 391,312 $ 159 $ — $ — $ — $ 391,153 CRE Securitizations 655,860 — — — — 655,860 Repurchase Agreements 377,404 377,404 — — — — Unsecured Junior Subordinated Debentures 51,308 — — — — 51,308 6.0 % Convertible Notes 109,238 — — — 109,238 — 8.0 % Convertible Notes 94,830 — — — — 94,830 Senior Secured Revolving Credit Facility 147,509 — — — 147,509 — Total $ 1,827,461 $ 377,563 $ — $ — $ 256,747 $ 1,193,151 |
SHARE ISSUANCE AND REPURCHASE
SHARE ISSUANCE AND REPURCHASE | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
SHARE ISSUANCE AND REPURCHASE | NOTE 13 - SHARE ISSUANCE AND REPURCHASE Six Months Ended June 30, 2015 Total Outstanding Number of Shares Weighted Average Offering Price Number of Shares Weighted Average Offering Price 8.50% Series A Preferred Stock — $ — 1,069,016 $ 24.05 8.25% Series B Preferred Stock 139,333 $ 22.34 5,740,479 $ 23.81 8.625% Series C Preferred Stock — $ — 4,800,000 $ 25.00 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 three and six months ended June 30, 2015 , the Company sold approximately 18,000 and 41,000 shares of common stock through this program, resulting in proceeds of approximately $81,000 and $187,000 , respectively. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 14 - SHARE-BASED COMPENSATION The following table summarizes restricted common stock transactions: Non-Employee Directors Non-Employees Employees Total Unvested shares as of January 1, 2015 49,203 1,812,853 161,583 2,023,639 Issued 55,582 1,001,459 115,271 1,172,312 Vested (43,718 ) (362,503 ) (7,439 ) (413,660 ) Forfeited — (13,211 ) (1,271 ) (14,482 ) Unvested shares as of June 30, 2015 61,067 2,438,598 268,144 2,767,809 The Company is required to value any unvested shares of restricted common stock granted to non-employees at the current market price. The estimated fair value of the unvested shares of restricted stock granted during the six months ended June 30, 2015 and 2014 , including the grant date fair value of shares issued to the Company’s seven non-employee directors, was $5.7 million , and $3.7 million , respectively. The Company reports any unvested shares of restricted common stock granted to non-employee directors at the fair value on the grant date amortized over the service period. The amortization recognized during the three and six months ended June 30, 2015 and 2014 was $64,000 and $129,000 and $64,000 and $128,000 , respectively. As of June 30, 2015 the total unrecognized restricted common stock expense was $4.9 million , with a weighted average amortization period remaining of 2.2 years . The following table summarizes the restricted common stock grants during the six months ended June 30, 2015 : Date Shares (2) Vesting/Year Date(s) February 3, 2015 7,276 100% 2/3/16 February 5, 2015 966,095 33.3% 2/5/16, 2/5/17, 2/5/18 February 5, 2015 115,271 33.3% 2/5/16, 2/5/17, 2/5/18 March 9, 2015 32,186 100% 3/9/16 March 12, 2015 7,625 100% 3/12/16 March 31, 2015 35,364 100% 5/15/16 (1) June 8, 2015 8,495 100% 6/8/16 (1) 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 were achieved by personnel from the Company’s loan origination team. The performance criteria is measured at the end of two annual measurement periods beginning April 1, 2014 . 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 is not met, the accrued dividends will be forfeited. As a consequence, the Company does not record the dividend equivalent rights until earned. On March 31, 2015 , the first annual measurement period ended and 35,364 shares were earned. These shares will vest over the subsequent 12 months at a rate of one-fourth per quarter. In addition, approximately $21,000 of accrued dividend equivalent rights were earned and paid. (2) All shares were issued from the 2007 Plan with the exception of these shares which were issued from unregistered shares as part of the consideration for the purchase of PCM. The following table summarizes the status of the Company’s vested stock options as of June 30, 2015 : 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, 2015 640,666 $ 14.45 Vested — — Exercised — — Forfeited — — Vested as of June 30, 2015 640,666 $ 14.45 0.8 $ — There were no options granted during the six months ended June 30, 2015 or 2014 . The outstanding stock options have a weighted average remaining contractual term of three years. The components of equity compensation expense for the periods presented as follows (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 Options granted to Manager and non-employees $ — $ — $ — $ (2 ) Restricted shares granted to non-employees (1) 543 1,784 1,307 3,213 Restricted shares granted to employees 184 185 350 360 Restricted shares granted to non-employee directors 64 63 129 128 Total equity compensation expense $ 791 $ 2,032 $ 1,786 $ 3,699 (1) Non-employees are employees of Resource America. There were no incentive fees paid to the Manager for the three and six months ended June 30, 2015 and 2014 . Apart from incentive compensation payable under the Management Agreement, the Company has established no formal criteria for the issuance of equity awards as of June 30, 2015 . All awards are discretionary in nature and subject to approval by the Compensation Committee of the Company's board of directors. 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 three and six months ended June 30, 2015 , $184,000 and $350,000 of amortization of the stock grants were recorded to equity compensation expense and $43,000 and $86,000 of expense related to dividends on unvested shares was recorded to general and administrative expense on the Company’s consolidated statements of operations, respectively. For the three and six months ended June 30, 2014 , $163,000 and $323,000 of amortization of the stock grants were recorded to equity compensation expense and $52,000 and $104,000 of expense related to dividends on unvested shares was recorded to general and administrative expense on the Company’s consolidated statements of operations, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 15 - 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): For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 Basic: Net income (loss) allocable to common shares $ (31,011 ) $ 14,677 $ (21,609 ) $ 29,793 Weighted average number of shares outstanding 131,409,263 126,952,493 131,333,704 126,288,516 Basic net income per share $ (0.24 ) $ 0.12 $ (0.16 ) $ 0.24 Diluted: Net income (loss) allocable to common shares $ (31,011 ) $ 14,677 $ (21,609 ) $ 29,793 Weighted average number of shares outstanding 131,409,263 126,952,493 131,333,704 126,288,516 Additional shares due to assumed conversion of dilutive instruments — 1,190,144 — 1,120,611 Adjusted weighted-average number of common shares outstanding 131,409,263 128,142,637 131,333,704 127,409,127 Diluted net income (loss) per share $ (0.24 ) $ 0.11 $ (0.16 ) $ 0.23 Potentially dilutive shares relating to 1,399,519 and 1,223,513 shares of restricted stock are not included in the calculation of diluted net (loss) per share for the three and six months ended June 30, 2015, respectively, because the effect was anti-dilutive. Potentially dilutive shares consisting of 36,011,413 shares issuable in connection with the potential conversion of the Company's 6% and 8% Convertible Senior Notes ( see Note 12 ) for both the three and six months ended June 30, 2015 , respectively, and 17,907,939 shares for both the three and six months ended June 30, 2014 , were not included in the calculation of diluted net income (loss) per share because the effect was anti-dilutive. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | NOTE 16 - ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME The following table, which is presented gross of tax, presents the changes in each component of accumulated other comprehensive income for the six months ended June 30, 2015 (dollars in thousands): Net unrealized (loss) gain on derivatives Net unrealized (loss) gain on securities, Foreign Currency Translation Accumulated other comprehensive loss January 1, 2015 $ (8,967 ) $ 15,422 $ (412 ) $ 6,043 Other comprehensive gain (loss) before reclassifications 2,379 1,424 429 4,232 Amounts reclassified from accumulated other 126 (10,334 ) — (10,208 ) Net current-period other comprehensive income 2,505 (8,910 ) 429 (5,976 ) Unrealized gains (losses) on available-for-sale securities allocable to non-controlling interests — 1,277 — 1,277 June 30, 2015 $ (6,462 ) $ 7,789 $ 17 $ 1,344 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 17 - RELATED PARTY TRANSACTIONS Relationship with Resource America and Certain of its Subsidiaries Relationship with Resource America. On September 19, 2013, the Audit Committee of the Board of Directors of Resource America concluded that Resource America should consolidate the financial statements of the Company, which was previously treated as an unconsolidated variable interest entity. The Audit Committee reached this conclusion after consultations with the Office of the Chief Accountant of the Securities and Exchange Commission (the “Commission”) following comments received from the staff of the Division of Corporation Finance of the Commission and the Audit Committee's discussion with the Company's management and its independent registered public accounting firm. Resource America's Audit Committee noted that consolidation of the Company was not expected to materially affect Resource America's previously reported net income attributable to common shareholders. At June 30, 2015 , Resource America owned 2,861,592 shares, or 2.1% , of the Company’s outstanding common stock. In addition, Resource America held 2,166 options to purchase restricted stock which options expired on March 8, 2015. The Company is managed by the Manager, which is a wholly-owned subsidiary of Resource America, pursuant to a Management Agreement that provides for both base and incentive management fees. For the three and six months ended June 30, 2015 , the Manager earned base management fees of approximately $3.4 million and $6.8 million , respectively. For the three and six months ended June 30, 2014 , the Manager earned base management fees of approximately $3.2 million and $6.1 million , respectively. No incentive management fees were earned for the three and six months ended June 30, 2015 or 2014 . The Company also reimburses the Manager and Resource America for expenses, including the expenses of employees of Resource America who perform legal, accounting, due diligence and other services that outside professionals or consultants would otherwise perform, and for the wages, salaries and benefits of several Resource America personnel dedicated to the Company’s operations. For the three and six months ended June 30, 2015 the Company paid the Manager $1.6 million and $2.7 million , respectively, and for the three and six months ended June 30, 2014 , $1.4 million and $2.4 million , respectively, as expense reimbursements. On November 24, 2010, the Company entered into an Investment Management Agreement with Resource Capital Markets, Inc. (“RCM”), a wholly-owned subsidiary of Resource America. The initial agreement provided that: (a) RCM may invest up to $5.0 million of the Company’s funds, with the investable amount being adjusted by portfolio gains (losses) and collections, and offset by expenses, taxes and realized management fees, and (b) RCM can earn a management fee in any year that the net profits earned exceed a preferred return. On June 17, 2011, the Company entered into a revised Investment Management Agreement with RCM which provided an additional $8.0 million of the Company’s funds. The management fee is 20% of the amount by which the net profits exceed the preferred return. During the three and six months ended June 30, 2015 and 2014 , RCM earned no management fees. 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 $3.8 million in fair market value of trading securities as of June 30, 2015 , an increase of $400,000 from $3.4 million at fair market value as of December 31, 2014 . The Company and RCM also established an escrow account that allocates the net profit or net losses of the portfolio on a yearly basis based on the net asset value of the account. RCM did not earn profits from this account during the three and six months ended June 30, 2015 and 2014 . The Company also reimburses RCM for expenses paid on the Company's behalf. For the three and six months ended June 30, 2015 , the Company paid RCM $65,000 and $97,000 , respectively, as expense reimbursements. For the three and six months ended June 30, 2014 , the Company paid RCM $51,000 and $126,000 , respectively, as expense reimbursements. At June 30, 2015 , the Company was indebted to the Manager for $1.7 million , comprised of base management fees of $1.1 million and expense reimbursements of $587,000 . 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 June 30, 2015 , the Company was indebted to RCM under the Company’s Investment Management Agreement for $185,000 , comprised entirely of expense reimbursements. 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. The Company's base management fee payable as well as expense reimbursements payable are recorded in accounts payable and other liabilities on the consolidated balance sheets. During the year ended December 31, 2013, the Company, through one of its subsidiaries, began originating middle-market loans. Resource America is paid origination fees in connection with the Company’s middle-market lending operations, which fees may not exceed 2% of the loan balance for any loan originated. On November 7, 2013, the Company, through a wholly-owned subsidiary, purchased all of the membership interests in Elevation Home Loans, LLC, a start-up residential mortgage company, from an employee of Resource America for $830,000 , paid in the form of 136,659 shares of restricted Company common stock. The restricted stock vests in full on November 7, 2016, and includes dividend equivalent rights. The Company had executed ten and nine securitizations as of June 30, 2015 and December 31, 2014 , respectively, 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. LCC 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 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. At the end of 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. During the three and six months ended June 30, 2015 , the Company recorded a partial recovery of this provision in the amount of $28,000 and $216,000 . As of June 30, 2015 , the Company held $1.6 million of direct financing leases. On November 16, 2011, the Company, together with LEAF Financial and LCC, entered into the SPA with Eos ( see Note 3 ). The Company’s resulting interest is accounted for under the equity method. For the three and six months ended June 30, 2015 the Company recorded gains of $350,000 and $402,000 , respectively, which was recorded in equity in earnings of unconsolidated subsidiaries on the consolidated statements of operations. For the three and six months ended June 30, 2014 , the Company recorded losses of $278,000 and $872,000 , respectively, which was recorded in equity in earnings of unconsolidated subsidiaries on the consolidated statements of operations. The Company’s investment in LCC was $39.8 million and $39.4 million as of June 30, 2015 and December 31, 2014 , respectively. Relationship with CVC Credit Partners. On April 17, 2012, Apidos Capital Management (“ACM”), a former subsidiary of Resource America, was sold to CVC Credit Partners, L.P. ("CVC Credit Partners"), a joint venture entity in which Resource America owns a 33% interest. CVC Credit Partners manages internally and externally originated bank loan assets on the Company’s behalf. On February 24, 2011, a subsidiary of the Company purchased 100% of the ownership interests in Churchill Pacific Asset Management LLC ("CPAM") from Churchill Financial Holdings LLC for $22.5 million . CPAM subsequently changed its name to RCAM. Through RCAM, the Company was initially entitled to collect senior, subordinated and incentive fees related to five CLOs holding approximately $1.9 billion in assets managed by RCAM. RCAM is assisted by CVC Credit Partners in managing these CLOs. CVC Credit Partners is entitled to 10% of all subordinated fees and 50% of the incentive fees received by RCAM. For the three and six months ended June 30, 2015 , CVC Credit Partners earned subordinated fees of $221,000 and $458,000 , respectively. For the three and six months ended June 30, 2014 , CVC Credit Partners earned subordinated fees of $330,000 and $700,000 , 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, L.P. 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 because the Company is a related party of CVC Credit Partners. For the three and six months ended June 30, 2015 , the Company recorded earnings of $312,000 and $920,000 , respectively, which was recorded in equity in earnings of unconsolidated subsidiaries on the consolidated statements of operations. For the three and six months ended June 30, 2014 , the Company recorded earnings of $1.1 million and $2.0 million , respectively, which was recorded in equity in earnings of unconsolidated subsidiaries on the consolidated statements of operations. In March 2015, the Company elected to withdraw $5.0 million from the fund. The Company's investment balance was $14.1 million as of June 30, 2015 as compared to $18.2 million as of December 31, 2014 . The investment 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 in the amount of $150,000 and $100,000 due from Resource Real Estate for loan origination costs in connection with the Company’s commercial real estate loan portfolio as of June 30, 2015 and December 31, 2014 , respectively. On August 9, 2006, the Company, through its subsidiary, RCC Real Estate, originated a loan to Lynnfield Place, a multi-family apartment property, in the amount of $22.4 million . The loan was then purchased by RREF CDO 2006-1. The loan, which 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 for the three and six months ended June 30, 2014 in the amount of $35,000 and $69,000 , respectively. There were no fees incurred for the three and six months ended June 30, 2015 , as 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. 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 three and six months ended June 30, 2014 , the Company paid RREM management fees of $1,000 and $6,000 , respectively. There were no fees incurred for the three and six months ended June 30, 2015 , as the last property associated with the joint venture was sold in July 2014. For the three and six months ended June 30, 2015 , the Company recorded income of $0 and $46,000 , respectively, which was recorded in equity in earnings of unconsolidated subsidiaries on the consolidated statements of operations. For the three and six months ended June 30, 2014 , the Company recorded income of $870,000 and $1.7 million , respectively, which was recorded in equity in earnings of unconsolidated subsidiaries on the consolidated statements of operations. The income recorded in 2015 was due to a liquidation of an existing bank account with respect to one of the properties. 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 was secured by RCP’s partnership interest in the RRE Opportunity Fund. The promissory note beared interest at a fixed rate of 8.0% per annum on the unpaid principal balance. In the event of default, interest would accrue and be payable at a rate of 5.0% in excess of the fixed rate. Interest was 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 had an original maturity date of January 14, 2015, with two one-year extensions. RCP exercised the first option, extending the maturity to January 14, 2016. The loan balance was $558,000 at December 31, 2014 . In April 2015, RCP paid off the total loan balance of $558,000 . 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 was recorded on the Company's consolidated statements of operations in equity of earnings of unconsolidated subsidiaries. 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 2014-CRE2, 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. On February 24, 2015, the Company closed RCC 2015-CRE3, a $346.2 million real estate securitization that provides financing for transitional 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 $100,000 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 c ontributed $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 March and June 2015, the Company requested and received a proportional, in-kind distribution in certain securities held by RCM Global. The distribution of and subsequent sale of those securities by the Company through its subsidiary, RCC Residential, resulted in the realization of $5.6 million of gains for the six months ended June 30, 2015 . The Company's ownership interest decreased to 45.9% as of June 30, 2015 as a result of these distributions. 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 funded its final commitment of $2.5 million , as of February 1, 2015. The Company will receive 10% of the carried interest in the partnership for the first five years, and can increase its interest to 20% if the Company's capital contributions aggregate $40.0 million . Resource America contributed securities valued at $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. Pelium Capital was determined not to be a VIE as there was sufficient equity at risk, the Company does not have disproportionate voting rights and Pelium Capital's partners have all of the following characteristics: (1) the power to direct the activities of Pelium; (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 Pelium Capital is owned by Resource America and outside investors. All intercompany accounts and transactions have been eliminated in consolidation. The Company's ownership interest in Pelium Capital was 69.9% as of June 30, 2015 . On April 10, 2015, the Company entered into two first mortgage bridge loans in the amount of $2.5 million and $3.3 million with two funds sponsored by Resource America, Resource Real Estate Investors LP and Resource Real Estate Investors II, LP. Each loan carried an interest rate of LIBOR plus 5.75% with a LIBOR floor of 0.25% . The loans had a maturity date of May 5, 2016, with two consecutive one-year options to extend upon the first maturity date. The loan in the amount of $2.5 million was repaid in full with interest on April 29, 2015. The second loan in the amount of $3.3 million was repaid in full with interest on July 31, 2015. Relationship with Law Firm . Until 1996, Edward E. Cohen, a director who was the Company’s Chairman from its inception until November 2009, was of counsel to Ledgewood, P.C., a law firm. In addition, one of the Company’s executive officers, Jeffrey F. Brotman, was employed by Ledgewood until 2007. Mr. E. Cohen receives certain debt service payments from Ledgewood related to the termination of his affiliation with Ledgewood and its redemption of his interest in the firm. Mr. Brotman also receives certain debt service payments from Ledgewood related to the termination of his affiliation with the firm. For the three and six months ended June 30, 2015 , the Company paid Ledgewood $61,000 and $334,000 , respectively, in connection with legal services rendered to the Company. For the three and six months ended June 30, 2014 , the Company paid Ledgewood $120,000 and $158,000 , respectively, in connection with legal services rendered to the Company. |
DISTRIBUTIONS
DISTRIBUTIONS | 6 Months Ended |
Jun. 30, 2015 | |
DISTRIBUTIONS [Abstract] | |
DISTRIBUTIONS | NOTE 18 - DISTRIBUTIONS For the quarter ended June 30, 2015 , the Company declared and subsequently paid a dividend of $0.16 per common share. In order to qualify as a REIT, the Company must currently distribute at least 90% of its taxable income. In addition, the Company must distribute 100% of its taxable income in order not to be subject to corporate federal income taxes on retained income. The Company anticipates it will distribute substantially all of its taxable income to its stockholders. Because taxable income differs from cash flow from operations due to non-cash revenues or expenses (such as provisions for loan and lease losses and depreciation), in certain circumstances, the Company may generate operating cash flow in excess of its distributions or, alternatively, may be required to borrow to make sufficient distribution payments. The Company’s 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 three and six months ended June 30, 2015 and year ended December 31, 2014 : Common Stock Date Paid Total Dividend (in thousands) 2015 March 31 April 28 $ 21,444 $ 0.16 June 30 July 28 $ 21,426 $ 0.16 2014 March 31 April 28 $ 25,921 $ 0.20 June 30 July 28 $ 26,179 $ 0.20 September 30 October 28 $ 26,629 $ 0.20 December 31 January 28, 2015 $ 26,563 $ 0.20 Preferred Stock Series A Series B Series C Date Paid Total Dividend Date Paid Total Dividend Date Paid Total Dividend (in thousands) (in thousands) (in thousands) 2015 March 31 April 30 $ 568 $ 0.53125 April 30 $ 2,960 $ 0.515625 April 30 $ 2,588 $ 0.539063 June 30 July 30 $ 568 $ 0.53125 July 30 $ 2,960 $ 0.515625 July 30 $ 2,588 $ 0.539063 2014 March 31 April 30 $ 463 $ 0.53125 April 30 $ 2,057 $ 0.515625 — — — June 30 July 30 $ 537 $ 0.53125 July 30 $ 2,378 $ 0.515625 July 30 $ 1,437 $ 0.299479 September 30 October 30 $ 537 $ 0.53125 October 30 $ 2,430 $ 0.515625 October 30 $ 2,588 $ 0.539063 December 31 January 30, 2015 $ 568 $ 0.53125 January 30, 2015 $ 2,888 $ 0.515625 January 30, 2015 $ 2,588 $ 0.539063 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 19 - FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as follows (in thousands): Level 1 Level 2 Level 3 Total As of June 30, 2015: Assets: Investment securities, trading $ — $ — $ 32,680 $ 32,680 Investment securities available-for-sale — 4,865 248,563 253,428 Loans held for sale — 64,751 40,343 105,094 Derivatives — 1,275 3,014 4,289 Total assets at fair value $ — $ 70,891 $ 324,600 $ 395,491 Liabilities: Derivatives $ — $ (355 ) $ (6,636 ) $ (6,991 ) Total liabilities at fair value $ — $ (355 ) $ (6,636 ) $ (6,991 ) 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 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 — — 8,476 8,476 Total liabilities at fair value $ — $ — $ 77,416 $ 77,416 The Company's residential mortgage loan portfolio is comprised of both agency loans and non-agency jumbo loans. The fair values of the Company's agency loan portfolio are generally classified as Level 2 in the fair value hierarchy, as those values are determined based on quoted market prices or upon other observable inputs. The fair values of the Company's jumbo loan portfolio are generally classified as Level 3 in the fair value hierarchy, as those values are generally based upon valuation techniques that utilize unobservable inputs that reflect the assumptions that a market participant would use in pricing those assets. As of June 30, 2015 , except for a note balance of $159,000 , Moselle CLO paid off all of its outstanding CLO notes. The following table presents additional information about assets that 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 Structured Warrants Interest Rate Lock Commitments Loans Held for Sale Total Balance, January 1, 2015 $ 185,772 $ 72,157 $ 20,786 $ 898 $ 970 $ 83,380 $ 363,963 Included in earnings 849 4,226 1,673 76 19,135 (1,186 ) 24,773 Unlinked transactions 33,239 — — — — — 33,239 Purchases/Originations 7,219 10,350 19,264 — — 80,517 117,350 Sales (5,594 ) (9,339 ) — — (122,269 ) (137,202 ) Paydowns (41,706 ) (3,208 ) (488 ) — — (99 ) (45,501 ) Issuances — — — — — — — Settlements — (11,216 ) — — (18,065 ) — (29,281 ) Included in OCI (51 ) (7,345 ) 784 — — — (6,612 ) Transfers into Level 3 — 3,872 — — — — 3,872 Balance, June 30, 2015 $ 185,322 $ 63,242 $ 32,680 $ 974 $ 2,040 $ 40,343 $ 324,601 The following table presents additional information about liabilities that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs (in thousands): Interest rate swaps Beginning balance, January 1, 2015 $ 8,680 Unrealized gains - included in accumulated other comprehensive income (2,237 ) Included in earnings (134 ) Ending balance, June 30, 2015 $ 6,309 The following table summarizes the financial assets and liabilities measured at fair value on a nonrecurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as follows (in thousands): Level 1 Level 2 Level 3 Total As of June 30, 2015: Assets : Loans held for sale $ — $ 6,028 $ — $ 6,028 Impaired loans — 2,223 — 2,223 Total assets at fair value $ — $ 8,251 $ — $ 8,251 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 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 amounts of nonrecurring fair value losses for specifically impaired loans for the three and six months ended June 30, 2015 were $38.9 million and $41.4 million , respectively. The amounts of nonrecurring fair value losses for specifically impaired loans for the three and six months ended June 30, 2014 were $440,000 and $440,000 , respectively. The amounts of nonrecurring fair value losses for loans held for sale for the three and six months ended June 30, 2015 were $85,000 and $806,000 , respectively. The amounts of nonrecurring fair value losses for loans held for sale for the three and six months ended June 30, 2014 were $60,000 and $ 60,000 , respectively. In accordance with FASB ASC Topic 820-10-50-2-bbb, the Company is not required to disclose quantitative information with respect to unobservable inputs contained in fair value measurements that are not developed by the Company. As a consequence, the Company has not disclosed such information associated with fair values obtained from third-party pricing sources. For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of June 30, 2015 , the significant unobservable inputs used in the fair value measurements were as follows (in thousands): Fair Value at June 30, 2015 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Value Interest rate swap agreements $ 6,300 Discounted cash flow Weighted average credit spreads 4.55 % Additionally, as of June 30, 2015 , the Company also classified the valuation of its warrant derivative in Level 3 of the fair value hierarchy. The value of the warrant was determined using a Black-Scholes model using the following significant unobservable inputs: market capitalization of $143.7 million and volatility of 50.0% . The Company is required to disclose the fair value of financial instruments for which it is practicable to estimate that value. The fair values of the Company's short-term financial instruments such as cash and cash equivalents, restricted cash, principal paydown receivable, interest receivable, distribution payable, accrued interest expense, repurchase agreements and the secured revolving credit agreement approximate their carrying value on the consolidated balance sheets. The fair values of the Company’s investment securities, trading are reported in Investment Securities, Trading ( see Note 5 ). The fair values of the Company’s investment securities available-for-sale are reported in Investment Securities Available-for-Sale ( see Note 6 ). The fair values of the Company’s derivative instruments and linked transactions are reported in Market Risk and Derivative Instruments ( see Note 20 ). Loans held-for-investment: The fair value of the Company’s Level 2 Loans held-for-investment are primarily measured using a third-party pricing service. The fair value of the Company’s Level 3 Loans held-for-investment are measured by discounting the expected future cash flows using the current interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans receivable-related party are estimated by discounting the expected future cash flows using the current interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. CDO notes are valued using the dealer quotes, typically the dealer who underwrote the CDO in which the notes are held. Moselle CLO was valued using a third party pricing specialist. 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 in the following table (in thousands): Fair Value Measurements Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) As of June 30, 2015: Loans held-for-investment $ 2,042,885 $ 2,030,262 $ — $ 508,407 $ 1,521,855 CDO notes $ 1,047,172 $ 929,970 $ — $ — $ 929,970 Junior subordinated notes $ 51,308 $ 17,802 $ — $ — $ 17,802 Convertible notes $ 204,068 $ 204,068 $ — $ — $ 204,068 Repurchase agreements $ 377,404 $ 377,404 $ — $ — $ 377,404 Senior secured revolving credit agreement $ 147,509 $ 147,509 $ — $ — $ 147,509 As of December 31, 2014: Loans held-for-investment $ 1,925,980 $ 1,909,019 $ — $ 570,071 $ 1,338,948 Loans receivable-related party $ 558 $ 558 $ — $ — $ 558 CDO notes $ 1,046,493 $ 975,762 $ — $ — $ 975,762 Junior subordinated notes $ 51,205 $ 17,699 $ — $ — $ 17,699 Convertible notes $ 108,374 $ 108,374 $ — $ — $ 108,374 Repurchase agreements $ 399,662 $ 399,662 $ — $ — $ 399,662 Senior secured revolving credit agreement $ 111,137 $ 111,137 $ — $ — $ 111,137 |
MARKET RISK AND DERIVATIVE INST
MARKET RISK AND DERIVATIVE INSTRUMENTS | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
MARKET RISK AND DERIVATIVE INSTRUMENTS | 30 days to 90 days — — % Total $ 33,397 1.56 %" id="sjs-B4">NOTE 20 - 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 June 30, 2015 , the Company had 10 interest rate swap contracts outstanding whereby the Company paid an average fixed rate of 4.55% and received a variable rate equal to either one-month LIBOR or three-month LIBOR. The aggregate notional amount of these contracts was $147.8 million at June 30, 2015 . The counterparties for the Company’s designated interest rate hedge contracts at such date were Credit Suisse International and Wells Fargo. The Company had master netting agreements with Credit Suisse International and Wells Fargo at June 30, 2015 . Regulations promulgated under the Dodd-Frank Act mandate that the Company clear certain new interest rate swap transactions through a central counterparty. Transactions that are centrally cleared result in the Company facing a clearing house, rather than a swap dealer, as counterparty. Central clearing requires the Company to post collateral in the form of initial and variation margin to our Futures Commission Merchant. As of June 30, 2015 , the Company had centrally cleared derivative assets with a fair value of $9,000 . The Company classifies these hedges as cash flow hedges, which are hedges that eliminate the risk of changes in the cash flows of a financial asset or liability. The Company records changes in fair value of derivatives designated and effective as cash flow hedges in other comprehensive income, and records changes in fair value of derivatives designated and ineffective as cash flow hedges in earnings. 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 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 $6.3 million and $8.7 million as of June 30, 2015 and December 31, 2014 , respectively. The Company had aggregate unrealized losses of $6.5 million and $9.0 million on the interest rate swap agreements as of June 30, 2015 and December 31, 2014 , respectively, which is recorded in accumulated other comprehensive income. The amortization is reflected in interest expense in the Company’s consolidated statements of operations. 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 operations. 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 operations. 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. The Company is exposed to interest rate risk on loans held for sale and interest rate lock commitments. As market interest rates increase or decrease, the fair value of mortgage loans held for sale and rate lock commitments will decline or increase accordingly. To offset this interest rate risk, the Company may enter into derivatives such as forward contracts to sell loans. The fair value of these forward sales contracts will change as market interest rates change, and the change in the value of these instruments is expected to largely, though not entirely, offset the change in fair value of loans held for sale and rate lock commitments. The objective of this activity is to minimize the exposure to losses on rate lock commitments and loans held for sale due to market interest rate fluctuations. The net effect of derivatives on earnings will depend on risk management activities and a variety of other factors, including market interest rate volatility, the amount of interest rate lock commitments that close, the ability to fill the forward contracts before expiration, and the time period required to close and sell loans. During the warehousing phase of the Company’s investments in structured vehicles, the Company may enter into total return swaps to finance the Company’s exposure to assets that will ultimately be securitized. A total return swap is a swap agreement in which one party makes payments based on a set rate, while the other party makes payments based on the return of an underlying asset. Traditionally, the Company pays either an indexed or fixed interest payment to the warehousing lender and receives the net interest income and realized capital gains of the referenced portfolio of assets, generally loans, to be securitized that are owned and held by the warehousing lender. Upon the close of the warehousing period, the Company’s invested equity plus net interest and any capital gains realized during the warehousing period are returned to the Company. Additionally, upon the close of the securitization, the Company may purchase beneficial interests in the securitization at fair value. The following tables present the fair value of the Company’s derivative financial instruments as well as their classification on the Company's consolidated balance sheets and on the consolidated statements of operations for the years presented: Fair Value of Derivative Instruments as of June 30, 2015 (in thousands) Asset Derivatives Notional Amount Balance Sheet Location Fair Value Interest rate lock agreements $ 141,883 Derivatives, at fair value $ 2,040 Forward contracts - residential mortgage lending $ 136,007 Derivatives, at fair value $ 1,275 Warrants $ 492 Derivatives, at fair value $ 974 Liability Derivatives Notional Amount Balance Sheet Location Fair Value Interest rate swap contracts, hedging (3) $ 147,776 Derivatives, at fair value $ 6,300 Interest rate lock agreements $ 4,548 Derivatives, at fair value $ 19 Forward contracts - residential mortgage lending $ 140,414 Derivatives, at fair value $ 314 Forward contracts - foreign currency, hedging (1)(2) $ 43,430 Derivatives, at fair value $ 204 Forward contracts - TBA securities $ 22,500 Derivatives, at fair value $ 154 Interest rate swap contracts $ 147,776 Accumulated other comprehensive income $ 6,300 (1) Notional amount presented on currency converted basis. The notional amount of the Company's foreign currency hedging forward contracts was €40.1 million as of June 30, 2015 . (2) Foreign currency forward contracts are accounted for as fair value hedges. (3) Interest rate swap contracts are accounted for as cash flow hedges. 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 (1)(2) $ 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, hedging (3) $ 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 - TBA securities $ 15,000 Derivatives, at fair value $ 47 Interest rate swap contracts $ 124,017 Accumulated other comprehensive income $ 8,680 (1) Notional amount presented on currency converted basis. The notional amount of the Company's foreign currency hedging forward contracts was €45.4 million as of December 31, 2014. (2) Foreign currency forward contracts are accounted for as fair value hedges. (3) Interest rate swap contracts are accounted for as cash flow hedges. The Effect of Derivative Instruments on the Statements of Operations for the Six Months Ended June 30, 2015 (in thousands) Derivatives Statement of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ 3,152 Interest rate swap contracts, hedging Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 206 Interest rate lock agreements Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 1,061 Forward contracts - RMBS securities Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 57 Forward contracts - residential mortgage lending Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 1,989 Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 1,790 Options - U.S. Treasury futures Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 184 Forward contracts - TBA securities Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 56 (1) Negative values indicate a decrease to the associated balance sheets or consolidated statements of operations line items. The Effect of Derivative Instruments on the Statements of Operations for the Six Months Ended June 30, 2014 (in thousands) Derivatives Statement of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts Interest expense $ 3,267 Interest rate lock agreements Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 990 Forward contracts - residential mortgage lending Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 458 (1) Negative values indicate a decrease to the associated balance sheets or consolidated statements of operations line items. Linked Transactions As the result of an accounting standards update adopted on January 1, 2015 ( see Note 2 ), the Company unlinked its previously linked transactions and disclosed affected asset, liability, income and expense balances at their gross values in its consolidated financial statements. Accordingly, the Company had no financing arrangements being accounted for as linked transactions as of June 30, 2015 . The Company's linked transactions were evaluated on a combined basis, reported as forward (derivative) instruments and presented as assets on the Company's consolidated balance sheets in the line item linked transactions, net at fair value. The fair value of linked transactions reflected the value of the underlying CMBS, linked repurchase agreement borrowings and accrued interest payable on such instruments. The Company's linked transactions were not designated as hedging instruments and, as a result, the change in the fair value and net interest income from linked transactions was reported in unrealized gain (loss) and interest income on linked transactions, net on the Company's consolidated statements of operations. As of December 31, 2014 , the Company held non-hedging linked transactions, net at fair value of $15.4 million . During the three months ended June 30, 2014 , the Company recorded unrealized gain and net interest income on linked transactions of $5.0 million . The following table presents certain information about the components of the unrealized gain (loss) and net interest income from linked transactions, net, included in the Company's consolidated statements of operations for the periods presented as follows ( in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Components of Unrealized Net (Losses) Gains and Net Interest Income Income from linked transactions Interest income attributable to CMBS underlying linked transactions $ — $ 1,078 $ — $ 2,009 Interest expense attributable to linked repurchase agreement borrowings underlying linked transactions — (226 ) — (615 ) Change in fair value of linked transactions included in earnings — 4,160 — 5,923 Unrealized gain (loss) and net interest income from linked transactions, net $ — $ 5,012 $ — $ 7,317 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 As of December 31, 2014: CMBS linked transactions $ 48,138 $ 539 $ (72 ) $ 48,605 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% 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 ) The following table summarizes the Company's CMBS linked repurchase agreements (in thousands, except percentages): As of December 31, 2014 Maturity or Repricing Balance Weighted Average Interest Rate Within 30 days $ 33,397 1.56 % >30 days to 90 days — — % Total $ 33,397 1.56 % |
OFFSETTING OF FINANCIAL ASSETS
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | 6 Months Ended |
Jun. 30, 2015 | |
Offsetting [Abstract] | |
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | NOTE 21 - OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES As the result of an accounting standards update adopted on January 1, 2015 ( see Note 2 ), the Company unlinked its previously linked transactions and disclosed affected asset, liability, income and expense balances at their gross values in its consolidated financial statements. Accordingly, the Company had no financing arrangements being accounted for as linked transactions as of June 30, 2015 . The following table presents a summary of the Company's offsetting of derivative assets for the periods presented (in thousands): (iv) (i) (ii) (iii) = (i) - (ii) Financial Cash (v) = (iii) - (iv) As of June 30, 2015: Derivative hedging instruments,at fair value $ 2,249 $ — $ 2,249 $ — $ — $ 2,249 Total $ 2,249 $ — $ 2,249 $ — $ — $ 2,249 As of December 31, 2014: Derivative hedging instruments, at fair value $ 4,334 $ — $ 4,334 $ — $ — $ 4,334 Linked transactions 48,764 33,397 15,367 — — 15,367 Total $ 53,098 $ 33,397 $ 19,701 $ — $ — $ 19,701 The following table presents a summary of the Company's offsetting of financial liabilities and derivative liabilities for the periods presented as follows (in thousands): (iv) (i) (ii) (iii) = (i) - (ii) Financial (1) Cash (2) (v) = (iii) - (iv) As of June 30, 2015: Derivative hedging instruments, (3) $ 6,972 $ — $ 6,972 $ — $ 1,200 $ 5,772 Repurchase agreements and term facilities (4) 377,404 — 377,404 — — 377,404 Total $ 384,376 $ — $ 384,376 $ — $ 1,200 $ 383,176 As of December 31, 2014: Derivative hedging instruments, (3) $ 8,466 $ — $ 8,466 $ — $ 500 $ 7,966 Repurchase agreements and term facilities (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 (1) Amounts represent collateral pledged that is available to be offset against liability balances associated with term facilities, repurchase agreements and derivative transactions. (2) Amounts represent amounts pledged as collateral against derivative transactions. (3) The fair value of securities and/or cash and cash equivalents pledged against the Company's swaps was $1.2 million and $2.6 million at June 30, 2015 and December 31, 2014 , respectively. (4) The combined fair value of securities and loans pledged against the Company's various term facilities and repurchase agreements was $549.9 million and $565.6 million at June 30, 2015 and December 31, 2014 , respectively. In the Company's consolidated balance sheets, all balances associated with repurchase agreement and derivatives transactions are presented on a gross basis. Certain of the Company's repurchase agreement and derivative transactions are governed by underlying agreements that generally provide for a right of offset in the event of default or in the event of a bankruptcy of either party to the transaction. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 22 - 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 matters to be routine and in the ordinary conduct of its business. The resolution of these matters may result in adverse judgments, fines, penalties, injunctions and other relief against the Company as well as monetary payments or other agreements and obligations. Alternately, the Company may engage in settlement discussions on certain matters in order to avoid the additional costs of engaging in litigation. The Company is unaware of any contingencies arising from such routine litigation that would require accrual or disclosure in the consolidated financial statements as of June 30, 2015 . |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 23 - 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: On August 3, 2015, the Company's board of directors approved a one-for-four reverse stock split which is expected to be effective on August 31, 2015, after the close of business. On August 3, 2015, the Company's board of directors also authorized the Company to repurchase up to $50.0 million of its outstanding equity and debt securities. |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of the Company. All inter-company transactions and balances have been eliminated. |
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. At June 30, 2015 and December 31, 2014 , the reported cash balances of $145.0 million and $79.9 million exceeded Federal Deposit Insurance Corporation deposit insurance limit of $250,000 per institution, subjecting the Company to risk related to the uninsured balance. All of the Company's cash deposits are held at large, established financial institutions. |
Investments in Unconsolidated Entities | Investment in Unconsolidated Entities The Company's non-controlling investments in unconsolidated entities are included in investments in unconsolidated entities on the balance sheet and may be accounted for under the equity method or the cost method. Under the equity method, capital contributions, distributions, profits and losses of the entities are allocated in accordance with the terms of the entities' operating agreements. Such allocations may differ from the stated percentage interests, if any, as a result of preferred returned and allocation formulas as described in the entities' operating agreements. The Company may account for an investment that does not qualify for equity method accounting using the cost method if the Company determines the investment in the unconsolidated investment is insignificant. Under the cost method, the Company records dividend income when declared to the extent it is not considered a return of capital, which is recorded as a reduction of the cost of the investment. |
Recent Accounting Standards | Recent Accounting Standards In April 2015, the Financial Accounting Standards Board ("FASB") issued guidance that simplifies the presentation of debt issuance costs by requiring that debt issuance costs be presented in the balance sheet as a deduction from the carrying amount of the related debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. It is effective for annual reporting periods beginning after December 15, 2015, but early adoption is permitted. The Company has early adopted the provisions of this guidance. Note 12, Borrowings , reflects the presentation of debt issuance costs as prescribed by this accounting standards update. Adoption did not have a material impact on the Company's consolidated financial statements. In February 2015, the 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; and (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 December 15, 2015. Early application is permitted. The Company is currently evaluating the effect of adoption. 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 shares. 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 Accounting Standards Codification ("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. 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 alleviate 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 of the financial assets or the fair value of the 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 operations. 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. 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. The Company adopted this accounting standards update on January 1, 2015. Upon adoption, the Company unlinked its previously linked transactions and disclosed affected asset, liability, income and expense balances at their gross values in its consolidated financial statements. 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 was permitted for disposals that had not been reported in financial statements previously issued or available for issuance. The Company 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 was effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Adoption did not have a material impact on the Company's consolidated financial statements. |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2014 consolidated financial statements to conform to the 2015 presentation. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table shows the classification, carrying value and maximum exposure to loss with respect to the Company’s unconsolidated VIEs as of June 30, 2015 (in thousands): Unconsolidated Variable Interest Entities LCC Unsecured Junior Subordinated Debentures Resource Capital Asset Management CDOs Investment in ZAIS Total Maximum Exposure to Loss Investment in unconsolidated entities $ 39,818 $ 1,548 $ — $ 10,228 $ 51,594 $ 51,594 Intangible assets — — 8,542 — 8,542 $ 8,542 Total assets 39,818 1,548 8,542 10,228 60,136 Borrowings — 51,308 — — 51,308 N/A Total liabilities — 51,308 — — 51,308 N/A Net asset (liability) $ 39,818 $ (49,760 ) $ 8,542 $ 10,228 $ 8,828 N/A The following table shows the classification and carrying value of assets and liabilities of the Company's consolidated VIEs as of June 30, 2015 (in thousands): Apidos I Apidos Apidos Whitney CLO I RREF RREF RCC CRE Notes 2013 RCC 2014-CRE2 RCC 2015-CRE3 Moselle RCM Global, LLC Total ASSETS (3) Cash and cash equivalents $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 189 $ 189 Restricted cash (1) 347 3,613 37,231 116 20 250 1,815 — 5 557 $ — 43,954 Investment securities available-for-sale, pledged as collateral, at fair value — — 10,268 — 5,854 56,448 — — — — 12,288 84,858 Loans, pledged as collateral — — 180,758 — 94,504 190,911 192,480 351,301 342,592 — — 1,352,546 Loans held for sale 153 1,358 4,516 — — — — — — — — 6,027 Interest receivable — — 734 — 374 1,302 792 1,324 1,240 — (298 ) 5,468 Prepaid assets — 10 24 — 15 95 28 10 — — — 182 Principal paydown receivable — — — — — — — — — — — — Other Assets — — — — — — — 9 — — — 9 Total assets (2) $ 500 $ 4,981 $ 233,531 $ 116 $ 100,767 $ 249,006 $ 195,115 $ 352,644 $ 343,837 $ 557 $ 12,179 $ 1,493,233 LIABILITIES Borrowings $ — $ — $ 208,893 $ — $ 57,205 $ 125,055 $ 145,786 $ 231,846 $ 278,228 $ 159 $ — $ 1,047,172 Accrued interest expense — — 253 — 33 97 132 125 212 — — 852 Derivatives, at fair value — — — — 346 5,600 — — — — — 5,946 Unsettled loan purchases — — — — — — — — — — (529 ) (529 ) Accounts payable and other liabilities — 3 14 — 9 1 — — — 161 2 190 Total liabilities $ — $ 3 $ 209,160 $ — $ 57,593 $ 130,753 $ 145,918 $ 231,971 $ 278,440 $ 320 $ (527 ) $ 1,053,631 (1) Includes $2.1 million designated to fund future commitments on specific commercial real estate loans 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. (3) In October 2013, the Company liquidated Apidos CLO VIII and all of the assets were sold. However, the Company still owns its share of beneficial interests that caused it to consolidate it. |
SUPPLEMENTAL CASH FLOW INFORM34
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Other Significant Noncash Transactions | Supplemental disclosure of cash flow information is summarized for the periods indicated (in thousands): For the Six Months Ended June 30, 2015 2014 Non-cash investing activities include the following: Conversion of linked transaction assets to CMBS (1) $ 48,605 $ — Non-cash financing activities include the following: Distributions on common stock declared but not paid $ 21,426 $ 26,179 Distributions on preferred stock declared but not paid $ 4,078 $ 4,353 Issuance of restricted stock $ 1,158 $ 646 Conversion of linked transaction liabilities to repurchase agreement borrowings (1) $ 33,377 $ — (1) As a result of an accounting standards update adopted on January 1, 2015 (see Note 2), the Company unlinked its previously linked transactions, resulting in non-cash increases in both its CMBS and related repurchase borrowings balances. |
INVESTMENT SECURITIES TRADING (
INVESTMENT SECURITIES TRADING (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment trading securities at fair value | The following table summarizes the Company's structured notes and RMBS that are classified as investment securities, trading and carried at fair value (in thousands). Structured notes are CLO debt securities collateralized by syndicated bank loans, and RMBS is a type of mortgage-backed debt obligation whose cash flows come from residential debt. Amortized Cost Unrealized Gains Unrealized Losses Fair Value As of June 30, 2015: Structured notes $ 32,519 $ 3,027 $ (2,866 ) $ 32,680 RMBS 1,896 — (1,896 ) — Total $ 34,415 $ 3,027 $ (4,762 ) $ 32,680 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 |
INVESTMENT SECURITIES AVAILAB36
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Available-for-sale Securities [Abstract] | |
Available-for-sale Securities | The following table summarizes the Company's sales of investment securities available-for-sale (in thousands, except number of securities): For the Three Months Ended Positions Sold Par Amount Sold Realized Gain (Loss) June 30, 2015: ABS 3 $ 3,626 $ 1,838 RMBS 6 $ 28,305 $ 984 June 30, 2014: CMBS 3 $ 15,970 $ 480 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 June 30, 2015: CMBS $ 181,399 $ 5,114 $ (1,191 ) $ 185,322 RMBS 2,422 112 (60 ) 2,474 ABS 55,039 8,755 (553 ) 63,241 Corporate bonds 2,419 5 (33 ) 2,391 Total $ 241,279 $ 13,986 $ (1,837 ) $ 253,428 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 (1) As of June 30, 2015 and December 31, 2014, $170.9 million and $197.8 million , respectively, of investment securities available-for-sale were pledged as collateral under related financings. |
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 June 30, 2015: Less than one year $ 108,353 (1) $ 107,588 6.72% Greater than one year and less than five years 95,677 88,814 6.94% Greater than five years and less than ten years 17,522 16,245 13.43% Greater than ten years 31,876 28,632 9.05% Total $ 253,428 $ 241,279 7.56% 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% (1) The Company expects that the maturity dates of these CMBS and ABS will either be extended or that they 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 Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities As of June 30, 2015: CMBS $ 31,158 $ (246 ) 24 $ 18,989 $ (945 ) 10 $ 50,147 $ (1,191 ) 34 ABS 3,258 (524 ) 11 691 (29 ) 2 3,949 (553 ) 13 Corporate bonds — — — 1,435 (33 ) 1 1,435 (33 ) 1 RMBS 1,132 (60 ) 2 — — — 1,132 (60 ) 2 Total temporarily impaired securities $ 35,548 $ (830 ) 37 $ 21,115 $ (1,007 ) 13 $ 56,663 $ (1,837 ) 50 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 impaired securities $ 38,307 $ (851 ) 31 $ 26,541 $ (2,705 ) 16 $ 64,848 $ (3,556 ) 47 |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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) Premium, net (1) Carrying Value (2) As of June 30, 2015: Commercial real estate loans: Whole loans $ 1,510,814 $ (8,211 ) $ 1,502,603 B notes 16,026 (29 ) 15,997 Mezzanine loans 54,821 1 54,822 Total commercial real estate loans 1,581,661 (8,239 ) 1,573,422 Bank loans 182,338 (581 ) 181,757 Middle market loans 331,822 (827 ) 330,995 Residential mortgage loans, held for investment 3,030 — 3,030 Subtotal loans before allowances 2,098,851 (9,647 ) 2,089,204 Allowance for loan loss (46,319 ) — (46,319 ) Total loans held for investment, net of allowances 2,052,532 (9,647 ) 2,042,885 Bank loans held for sale 6,028 — 6,028 Residential mortgage loans held for sale, at fair value (3) 105,094 — 105,094 Total loans held for sale 111,122 — 111,122 Total loans, net $ 2,163,654 $ (9,647 ) $ 2,154,007 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 held for investment, 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 $ 2,047,529 $ (9,813 ) $ 2,037,716 (1) Amounts include deferred amendment fees of $53,000 and $88,000 and deferred upfront fees of $27,000 and $82,000 being amortized over the life of the bank loans as of June 30, 2015 and December 31, 2014 , respectively. Amounts also include loan origination fees of $8.2 million and $7.6 million as of June 30, 2015 and December 31, 2014 , respectively. (2) Substantially all loans are pledged as collateral under various borrowings at June 30, 2015 and December 31, 2014 , respectively. (3) Residential mortgage loans held for sale, at fair value, consisted of $64.8 million and $40.3 million of agency-conforming and jumbo mortgage loans, respectively, as of June 30, 2015 . Residential mortgage loans held for sale, at fair value, consisted of $28.9 million and $82.6 million of agency-conforming and jumbo mortgage loans, respectively, as of December 31, 2014 . 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 Interest Rates Maturity Dates (3) As of June 30, 2015: Whole loans, floating rate (1) (4) (6) 83 $ 1,502,603 LIBOR plus 1.75% to July 2015 to February 2019 B notes, fixed rate 1 15,997 8.68% April 2016 Mezzanine loans, fixed rate (7) 3 54,822 9.01% to 16.00% January 2016 to Total (2) 87 $ 1,573,422 As of December 31, 2014: Whole loans, floating rate (1) (5) (6) 73 $ 1,263,592 LIBOR plus 1.75% to May 2015 to B notes, fixed rate 1 16,072 8.68% April 2016 Mezzanine loans, floating rate 1 12,558 LIBOR plus 15.32% April 2016 Mezzanine loans, fixed rate 3 54,808 0.50% to 18.71% January 2016 to Total (2) 78 $ 1,347,030 (1) Whole loans had $104.5 million and $105.1 million in unfunded loan commitments as of June 30, 2015 and December 31, 2014 , 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) Totals do not include allowance for loan losses of $42.1 million and $4.0 million as of June 30, 2015 and December 31, 2014 , respectively. (3) Maturity dates do not include possible extension options that may be available to the borrowers. Additionally, the whole loan set to mature in July 2015 paid off in full in July 2015. (4) Includes two whole loans with a combined $12.3 million mezzanine component that have fixed rates of 12.0% , and two whole loans with a combined $4.2 million mezzanine component that have fixed rates of 15.0% , as of June 30, 2015 . (5) Includes two whole loans with a combined $12.0 million mezzanine component that have fixed rates of 12.0% , and two whole loans with a combined $4.2 million mezzanine component that have fixed rates of 15.0% , as of December 31, 2014 . (6) Includes a $799,000 junior mezzanine tranche of a whole loan that has a fixed rate of 10.0% as of June 30, 2015 and December 31, 2014 . (7) Contracted interest rates and maturity dates do not include rates or maturity dates associated with one loan with an amortized cost of $38.1 million that was fully reserved as of June 30, 2015 . The Company does no t accrue interest on this loan as June 30, 2015 . |
Summary of the weighted average life of bank loans at amortized cost | The following is a summary of the weighted average maturity of the Company’s bank loans, at amortized cost and loans held-for-sale, at the lower of cost or market (in thousands): June 30, December 31, Less than one year $ 6,580 $ 7,829 Greater than one year and less than five years 175,208 274,332 Five years or greater 5,997 48,769 $ 187,785 $ 330,930 The following is a summary of the weighted average maturity of the Company’s middle market loans, at amortized cost (in thousands): June 30, December 31, Less than one year $ — $ — Greater than one year and less than five years 191,670 132,353 Five years or greater 139,325 117,760 $ 330,995 $ 250,113 |
Summary lien position and status of our bank and middle market loans | The following table provides information as to the lien position and status of the Company's bank loans, at amortized cost (in thousands): Apidos I Apidos III Apidos Cinco Total As of June 30, 2015: Loans held for investment: First lien loans $ — $ — $ 179,219 $ 179,219 Second lien loans — — 2,064 2,064 Third lien loans — — — — Defaulted first lien loans — — 215 215 Defaulted second lien loans — — 259 259 Total — — 181,757 181,757 First lien loans held for sale at fair value 154 1,358 4,516 6,028 Total $ 154 $ 1,358 $ 186,273 $ 187,785 As of December 31, 2014: Loans held for investment: First lien loans $ 153 $ 80,196 $ 245,377 $ 325,726 Second lien loans — — 3,572 3,572 Third lien loans — — — — Defaulted first lien loans — — — — Defaulted second lien loans — 971 379 1,350 Total 153 81,167 249,328 330,648 First lien loans held for sale at fair value — — 282 $ 282 Total $ 153 $ 81,167 $ 249,610 $ 330,930 |
Schedule lien position and status of middle market loans, at amortized cost | The following table provides information as to the lien position and status of middle market loans, at amortized cost (in thousands): June 30, December 31, First Lien $ 218,013 $ 149,287 Second Lien 108,026 100,826 First Lien Defaulted — — Second Lien Defaulted 4,956 — $ 330,995 $ 250,113 |
Summary of the weighted average life of the commercial real estate loans at amortized cost | The following is a summary of the weighted average maturity of the Company’s commercial real estate loans, at amortized cost (in thousands): Description 2015 2016 2017 and Thereafter Total As of June 30, 2015 B notes $ — $ 15,997 $ — $ 15,997 Mezzanine loans — 16,750 38,072 54,822 Whole loans 3,250 27,691 1,471,662 1,502,603 Total (1) $ 3,250 $ 60,438 $ 1,509,734 $ 1,573,422 As of December 31, 2014: 2015 2016 2017 and Thereafter Total 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 (1) Weighted average maturity 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 loans (in thousands, except percentages) by asset class: Description Allowance for Loan Loss Percentage of Total Allowance As of June 30, 2015: B notes $ 20 0.04% Mezzanine loans 38,145 82.36% Whole loans 3,950 8.53% Bank loans 997 2.15% Middle market loans 3,207 6.92% Total $ 46,319 As of December 31, 2014: B notes $ 55 1.19% Mezzanine loans 230 4.99% Whole loans 3,758 81.46% Bank loans 570 12.36% Total $ 4,613 |
INVESTMENTS IN UNCONSOLIDATED38
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Unconsolidated Entities | The following table shows the Company's investments in unconsolidated entities as of June 30, 2015 and December 31, 2014 and equity in earnings of unconsolidated subsidiaries for the three and six months ended June 30, 2015 and 2014 (in thousands): Equity in Earnings of Unconsolidated subsidiaries Balance as of Balance as of For the For the For the For the Ownership % June 30, December 31, June 30, June 30, June 30, June 30, Varde Investment Partners, L.P 7.5% $ 654 $ 654 $ — $ — $ (19 ) $ (20 ) RRE VIP Borrower, LLC (1) 3% to 5% — — — 46 870 1,736 Investment in LCC Preferred Stock 28.4% 39,819 39,416 350 402 (278 ) (872 ) Investment in CVC Global Credit Opportunities Fund (2) 17.4% 14,129 18,209 312 920 1,124 1,958 Investment in (3) 60.7% — — — — — (75 ) Investment in School Lane House (1) — — — — 65 1,049 Subtotal 54,602 58,279 662 1,368 1,762 3,776 Investment in RCT I and II (4) 3.0% 1,548 1,548 (602 ) (1,195 ) (594 ) (1,184 ) Investment in Preferred Equity (1) (5) — — — — 167 244 Total $ 56,150 $ 59,827 $ 60 $ 173 $ 1,335 $ 2,836 (1) Investment in School Lane House, Investment in RRE VIP Borrower and the Investment in Preferred Equity were sold or repaid as of December 31, 2014. (2) I n March 2015, the Company elected a partial redemption of $5.0 million from the fund. (3) 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. Ownership percentage represents ownership after consolidation. (4) For the three and six months ended June 30, 2015 and 2014 , these amounts are recorded in interest expense on the Company's consolidated statements of operations. (5) For the three and six months ended June 30, 2014 , these amounts are recorded in interest income on loans on the Company's consolidated statements of operations. |
FINANCING RECEIVABLES (Tables)
FINANCING RECEIVABLES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015: Allowance for Loan Losses: Allowance for losses at January 1, 2015 $ 4,043 $ 570 $ — $ — $ — $ 4,613 Provision (recovery) for loan losses 38,072 1,734 3,320 (110 ) (216 ) 42,800 Loans charged-off — (1,307 ) (113 ) 110 216 (1,094 ) Recoveries — — — — — — Allowance for losses at June 30, 2015 $ 42,115 $ 997 $ 3,207 $ — $ — $ 46,319 Ending balance: Individually evaluated for impairment $ 40,275 $ 257 $ 3,207 $ — $ — $ 43,739 Collectively evaluated for impairment $ 1,840 $ 740 $ — $ — $ — $ 2,580 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — Loans: Ending balance: Individually evaluated for impairment $ 128,927 $ 474 $ 330,995 $ — $ — $ 460,396 Collectively evaluated for impairment $ 1,444,495 $ 181,283 $ — $ 3,030 $ — $ 1,628,808 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — As of December 31, 2014: Allowance for Loan Losses: Allowance for losses at January 1, 2014 $ 10,416 $ 3,391 $ — $ — $ — $ 13,807 Provision for loan losses (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: 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 $ — $ — $ — $ — $ — $ — |
Credit quality indicators for Bank loans and Commercial real estate loans | Credit risk profiles of middle market loans were as follows (in thousands): Rating 1 Rating 2 Rating 3 Rating 4 Rating 5 Held for Sale Total As of June 30, 2015: Middle market loans $ 19,225 $ 292,983 $ 13,831 $ — $ 4,956 $ — $ 330,995 As of December 31, 2014: Middle market loans $ — $ 240,245 $ 9,868 $ — $ — $ — $ 250,113 Credit risk profiles of bank loans were as follows (in thousands): Rating 1 Rating 2 Rating 3 Rating 4 Rating 5 Held for Sale Total As of June 30, 2015: Bank loans $ 162,007 $ 12,577 $ 4,249 $ 2,450 $ 474 $ 6,028 $ 187,785 As of December 31, 2014: Bank loans $ 291,214 $ 32,660 $ 5,424 $ — $ 1,350 $ 282 $ 330,930 Credit risk profiles of commercial real estate loans were as follows (in thousands): Rating 1 Rating 2 Rating 3 Rating 4 Held for Sale Total As of June 30, 2015 Whole loans $ 1,467,901 $ 32,500 $ — $ 2,202 $ — $ 1,502,603 B notes 15,997 — — — — 15,997 Mezzanine loans 16,750 — — 38,072 — 54,822 $ 1,500,648 $ 32,500 $ — $ 40,274 $ — $ 1,573,422 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 |
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 (3) Total Loans Receivable Total Loans > 90 Days and Accruing As of June 30, 2015: Whole loans $ — $ — $ — $ — $ 1,502,603 $ 1,502,603 $ — B notes — — — — 15,997 15,997 — Mezzanine loans — — — — 54,822 54,822 — Bank loans (1) — — 474 474 187,311 187,785 — Middle market loans — 4,956 — 4,956 326,039 330,995 — Residential mortgage loans (2) — 80 116 196 107,928 108,124 — Total loans $ — $ 5,036 $ 590 $ 5,626 $ 2,194,700 $ 2,200,326 $ — 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 — — — — 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 $ — (1) Contains $6.0 million and $282,000 of bank loans held for sale at June 30, 2015 and December 31, 2014 , respectively. (2) Contains $105.1 million and $111.5 million of residential mortgage loans held for sale at June 30, 2015 and December 31, 2014 , respectively. (3) Current loans include one impaired mezzanine loan and one impaired whole loan with amortized costs of $38.1 million and $2.2 million , respectively, that were both fully reserved as of June 30, 2015 . |
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 June 30, 2015: Loans without a specific valuation allowance: Whole loans $ 128,927 $ 128,927 $ — $ 128,520 $ 14,606 B notes $ — $ — $ — $ — $ — Mezzanine loans $ — $ — $ — $ — $ — Bank loans $ — $ — $ — $ — $ — Middle market loans $ — $ — $ — $ — $ — Residential mortgage loans $ 3,030 $ 3,030 $ — $ 2,818 $ 81 Loans receivable - related party $ — $ — $ — $ — $ — Loans with a specific valuation allowance: Whole loans $ 2,202 $ 2,202 $ (2,202 ) $ 2,202 $ 26 B notes $ — $ — $ — $ — $ — Mezzanine loans $ 38,072 $ 38,072 $ (38,072 ) $ 38,072 $ — Bank loans $ 474 $ 474 $ (257 ) $ 237 $ — Middle market loans $ 4,956 $ 4,956 $ (3,207 ) $ 4,956 $ — Residential mortgage loans $ — $ — $ — $ — $ — Loans receivable - related party $ — $ — $ — $ — $ — Total: Whole loans $ 131,129 $ 131,129 $ (2,202 ) $ 130,722 $ 14,632 B notes — — — — — Mezzanine loans 38,072 38,072 (38,072 ) 38,072 — Bank loans 474 474 (257 ) 237 — Middle market loans 4,956 4,956 (3,207 ) 4,956 — Residential mortgage loans 3,030 3,030 — 2,818 81 Loans receivable - related party — — — — — $ 177,661 $ 177,661 $ (43,738 ) $ 176,805 $ 14,713 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 |
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 Six Months Ended June 30, 2015 Whole loans 2 $ 67,459 $ 67,459 B notes — — — Mezzanine loans 1 38,072 0 Bank loans — — — Middle market loans — — — Residential mortgage loans — — — Loans receivable - related party — — — Total loans 3 $ 105,531 $ 67,459 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of intangible assets | The following table summarizes the activity of intangible assets for the period indicated (in thousands): Management Contracts Wholesale/Correspondent Relationships Mortgage Servicing Rights Total Balance, January 1, 2015 $ 9,434 $ 302 $ 8,874 $ 18,610 Additions — — 8,360 8,360 Sales — — — — Amortization (892 ) (127 ) (1,831 ) (2,850 ) Total before impairment adjustment 8,542 175 15,403 24,120 Temporary impairment adjustment — — 250 250 Balance, June 30, 2015 $ 8,542 $ 175 $ 15,653 $ 24,370 |
Schedule loan servicing portfolio | The activity in the loan servicing portfolio associated with capitalized servicing rights consisted of the following (in thousands): June 30, December 31, Balance, beginning of period $ 894,767 $ 433,153 Additions 633,511 519,915 Payoffs, sales and curtailments (79,666 ) (58,301 ) Balance, end of period $ 1,448,612 $ 894,767 |
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 fee income as follows (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 Servicing fees from capitalized portfolio $ 911 $ 336 $ 1,462 $ 644 Late fees $ 18 $ 16 $ 41 $ 39 Other ancillary servicing revenue $ 3 $ (1 ) $ 7 $ 3 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Instrument [Line Items] | |
Information with Respect to Borrowings | Certain information with respect to the Company’s borrowings is summarized in the following table (in thousands, except percentages): Principal Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Weighted Average Value of As of June 30, 2015: RREF CDO 2006-1 Senior Notes $ 57,205 $ — $ 57,205 2.28% 31.1 years $ 100,062 RREF CDO 2007-1 Senior Notes 125,055 — 125,055 1.19% 31.3 years 247,292 RCC CRE Notes 2013 Senior Notes 148,115 2,329 145,786 2.28% 13.5 years 192,666 RCC 2014-CRE2 Senior Notes 235,344 3,498 231,846 1.48% 16.8 years 348,194 RCC 2015-CRE3 Senior Notes 282,127 3,899 278,228 2.08% 16.7 years 340,076 Apidos Cinco CDO Senior Notes 208,893 — 208,893 0.93% 4.9 years 229,238 Moselle CLO S.A. Securitized Borrowings, at fair value (1) 159 — 159 N/A N/A 557 Unsecured Junior Subordinated Debentures (2) 51,548 240 51,308 4.20% 21.3 years — 6.0% Convertible Senior Notes 115,000 5,762 109,238 6.00% 3.4 years — 8.0% Convertible Senior Notes 100,000 5,170 94,830 8.00% 4.5 years — CRE - Term Repurchase Facilities (3) 174,928 1,204 173,724 2.24% 18 days 273,686 CMBS - Term Repurchase Facility (4) 29,929 — 29,929 1.38% 18 days 34,330 Residential Mortgage Financing Agreements 96,580 — 96,580 2.74% 62 days 128,465 CMBS - Short Term Repurchase Agreements (5) 77,171 — 77,171 1.71% 20 days 113,381 Senior Secured Revolving Credit Agreement 151,000 3,491 147,509 3.05% 2.2 years 327,681 Total $ 1,853,054 $ 25,593 $ 1,827,461 2.56% 10.6 years $ 2,335,628 Principal Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Weighted Average Value of 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 2014-CRE2 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 S.A. Senior Notes, at fair value (6) 63,321 — 63,321 1.49% 5.0 years 93,576 Moselle CLO S.A. 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 Residential Investments - Term Repurchase Facility (6) 22,248 36 22,212 1.16% 1 day 27,885 Residential Mortgage Financing Agreements (7) 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 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 (1) The securitized borrowings were collateralized by the same assets as the Moselle CLO Senior Notes. (2) Amount represents junior subordinated debentures issued to RCT I and RCT II in May 2006 and September 2006, respectively. (3) Amounts also include accrued interest expense of $187,000 and $198,000 related to CRE repurchase facilities as of June 30, 2015 and December 31, 2014 , respectively. (4) Amounts also include accrued interest expense of $13,000 and $12,000 related to CMBS repurchase facilities as of June 30, 2015 and December 31, 2014 , respectively. Amounts do not reflect CMBS repurchase agreement borrowings that are components of linked transactions as of December 31, 2014 . (5) Amounts also includes accrued interest expense of $39,000 and $31,000 related to CMBS short term repurchase facilities as of June 30, 2015 and December 31, 2014 . (6) The fair value option was 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 . (7) Amount also includes interest expenses of $20,000 related to residential investment repurchase facilities as of 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 June 30, 2015 (in millions) RREF CDO 2006-1 Senior Notes August 2006 August 2046 September 2011 $ 194.2 RREF CDO 2007-1 Senior Notes June 2007 September 2046 June 2012 $ 215.9 RCC CRE Notes 2013 Senior Notes December 2013 December 2028 N/A $ 112.7 RCC 2014-CRE2 Senior Notes July 2014 April 2032 N/A $ — RCC 2015-CRE3 Senior Notes February 2015 March 2032 N/A $ — Apidos CDO III Senior Notes May 2006 September 2020 June 2012 $ 262.5 Apidos Cinco CDO Senior Notes May 2007 May 2020 May 2014 $ 113.1 Moselle CLO S.A. Securitized Borrowings October 2005 January 2020 January 2012 $ 5.0 |
Schedule of Linked Transactions | The assets in the following table were accounted for as linked transactions as of December 31, 2014 . These linked repurchase agreements are not included in borrowings on the Company's consolidated balance sheets ( see Note 20 ). As of December 31, 2014 Borrowings (1) Value of Collateral Number Weighted Average CMBS Term Wells Fargo Bank $ 4,941 $ 6,371 7 1.67% Short-Term Repurchase JP Morgan Securities, LLC — — — —% Wells Fargo Securities, LLC 4,108 6,233 2 1.37% Deutsche Bank Securities, LLC 24,348 36,001 10 1.57% Totals $ 33,397 $ 48,605 |
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 (1) Weighted Average Weighted Average As of June 30, 2015: CMBS Term Repurchase Facility Wells Fargo Bank, National Association $ 4,024 18 1.38% CRE Term Repurchase Facilities Wells Fargo Bank, National Association $ 99,791 18 2.24% Short-Term Repurchase Agreements - CMBS Wells Fargo Securities, LLC $ 13,236 11 1.64% Deutsche Bank Securities, LLC $ 22,784 24 1.72% Residential Mortgage Financing Agreements Wells Fargo Bank $ 25,349 62 2.75% New Century Bank $ 6,537 61 2.73% As of December 31, 2014: CMBS Term Repurchase Facility Wells Fargo Bank, National Association $ 6,486 20 1.35% Residential Investments 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 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% (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. |
Schedule of Contractual Obligations and Commitments | Total 2015 2016 2017 2018 2019 and Thereafter CDOs $ 391,312 $ 159 $ — $ — $ — $ 391,153 CRE Securitizations 655,860 — — — — 655,860 Repurchase Agreements 377,404 377,404 — — — — Unsecured Junior Subordinated Debentures 51,308 — — — — 51,308 6.0 % Convertible Notes 109,238 — — — 109,238 — 8.0 % Convertible Notes 94,830 — — — — 94,830 Senior Secured Revolving Credit Facility 147,509 — — — 147,509 — Total $ 1,827,461 $ 377,563 $ — $ — $ 256,747 $ 1,193,151 |
CRE - Term Repurchase Facility [Member] | |
Debt Instrument [Line Items] | |
Repurchase and Mortgage Finance Facilities | The following table sets forth certain information with respect to the Company's borrowings (dollars in thousands): As of June 30, 2015 As of December 31, 2014 Outstanding Value of Number of Weighted Average Outstanding Value of Number of Weighted Average CMBS Term Wells Fargo Bank $ 29,929 $ 34,330 35 1.38% $ 24,967 $ 30,180 33 1.35% CRE Term Wells Fargo Bank (1) 173,745 273,686 13 2.24% 179,762 258,223 15 2.38% Deutsche Bank AG (2) (21 ) — — —% 25,920 39,348 2 2.78% Short-Term Repurchase Deutsche Bank Securities, LLC 24,114 37,707 4 1.64% 33,783 44,751 8 1.62% Wells Fargo Securities, LLC 53,057 75,674 20 1.72% 10,442 17,695 1 1.66% Residential Investments Term Wells Fargo Bank (3) — — — —% 22,212 27,885 6 1.16% Residential Mortgage New Century Bank 40,313 46,849 195 2.73% 41,387 51,961 158 2.82% Wells Fargo Bank 56,267 81,616 170 2.75% 61,189 95,511 104 2.75% Totals $ 377,404 $ 549,862 $ 399,662 $ 565,554 (1) The Wells Fargo CRE term repurchase facility borrowing includes $1.2 million and $1.7 million of deferred debt issuance costs as of June 30, 2015 and December 31, 2014 , respectively. (2) The Deutsche Bank term repurchase facility includes $21,000 and $268,000 of deferred debt issuance costs as of June 30, 2015 and December 31, 2014 , respectively. (3) The Wells Fargo residential investments term repurchase facility includes $36,000 of deferred debt issuance costs as of December 31, 2014 . |
SHARE ISSUANCE AND REPURCHASE (
SHARE ISSUANCE AND REPURCHASE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock by Class, Issues | Six Months Ended June 30, 2015 Total Outstanding Number of Shares Weighted Average Offering Price Number of Shares Weighted Average Offering Price 8.50% Series A Preferred Stock — $ — 1,069,016 $ 24.05 8.25% Series B Preferred Stock 139,333 $ 22.34 5,740,479 $ 23.81 8.625% Series C Preferred Stock — $ — 4,800,000 $ 25.00 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of restricted common stock transactions | The following table summarizes restricted common stock transactions: Non-Employee Directors Non-Employees Employees Total Unvested shares as of January 1, 2015 49,203 1,812,853 161,583 2,023,639 Issued 55,582 1,001,459 115,271 1,172,312 Vested (43,718 ) (362,503 ) (7,439 ) (413,660 ) Forfeited — (13,211 ) (1,271 ) (14,482 ) Unvested shares as of June 30, 2015 61,067 2,438,598 268,144 2,767,809 |
Schedule of restricted stock granted | The following table summarizes the restricted common stock grants during the six months ended June 30, 2015 : Date Shares (2) Vesting/Year Date(s) February 3, 2015 7,276 100% 2/3/16 February 5, 2015 966,095 33.3% 2/5/16, 2/5/17, 2/5/18 February 5, 2015 115,271 33.3% 2/5/16, 2/5/17, 2/5/18 March 9, 2015 32,186 100% 3/9/16 March 12, 2015 7,625 100% 3/12/16 March 31, 2015 35,364 100% 5/15/16 (1) June 8, 2015 8,495 100% 6/8/16 (1) 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 were achieved by personnel from the Company’s loan origination team. The performance criteria is measured at the end of two annual measurement periods beginning April 1, 2014 . 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 is not met, the accrued dividends will be forfeited. As a consequence, the Company does not record the dividend equivalent rights until earned. On March 31, 2015 , the first annual measurement period ended and 35,364 shares were earned. These shares will vest over the subsequent 12 months at a rate of one-fourth per quarter. In addition, approximately $21,000 of accrued dividend equivalent rights were earned and paid. (2) All shares were issued from the 2007 Plan with the exception of these shares which were issued from unregistered shares as part of the consideration for the purchase of PCM. |
Summary of stock option transactions | The following table summarizes the status of the Company’s vested stock options as of June 30, 2015 : 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, 2015 640,666 $ 14.45 Vested — — Exercised — — Forfeited — — Vested as of June 30, 2015 640,666 $ 14.45 0.8 $ — |
Summary of share based compensation expense | The components of equity compensation expense for the periods presented as follows (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 Options granted to Manager and non-employees $ — $ — $ — $ (2 ) Restricted shares granted to non-employees (1) 543 1,784 1,307 3,213 Restricted shares granted to employees 184 185 350 360 Restricted shares granted to non-employee directors 64 63 129 128 Total equity compensation expense $ 791 $ 2,032 $ 1,786 $ 3,699 (1) Non-employees are employees of Resource America. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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): For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 Basic: Net income (loss) allocable to common shares $ (31,011 ) $ 14,677 $ (21,609 ) $ 29,793 Weighted average number of shares outstanding 131,409,263 126,952,493 131,333,704 126,288,516 Basic net income per share $ (0.24 ) $ 0.12 $ (0.16 ) $ 0.24 Diluted: Net income (loss) allocable to common shares $ (31,011 ) $ 14,677 $ (21,609 ) $ 29,793 Weighted average number of shares outstanding 131,409,263 126,952,493 131,333,704 126,288,516 Additional shares due to assumed conversion of dilutive instruments — 1,190,144 — 1,120,611 Adjusted weighted-average number of common shares outstanding 131,409,263 128,142,637 131,333,704 127,409,127 Diluted net income (loss) per share $ (0.24 ) $ 0.11 $ (0.16 ) $ 0.23 |
ACCUMULATED OTHER COMPREHENSI45
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive loss | The following table, which is presented gross of tax, presents the changes in each component of accumulated other comprehensive income for the six months ended June 30, 2015 (dollars in thousands): Net unrealized (loss) gain on derivatives Net unrealized (loss) gain on securities, Foreign Currency Translation Accumulated other comprehensive loss January 1, 2015 $ (8,967 ) $ 15,422 $ (412 ) $ 6,043 Other comprehensive gain (loss) before reclassifications 2,379 1,424 429 4,232 Amounts reclassified from accumulated other 126 (10,334 ) — (10,208 ) Net current-period other comprehensive income 2,505 (8,910 ) 429 (5,976 ) Unrealized gains (losses) on available-for-sale securities allocable to non-controlling interests — 1,277 — 1,277 June 30, 2015 $ (6,462 ) $ 7,789 $ 17 $ 1,344 |
DISTRIBUTIONS (Tables)
DISTRIBUTIONS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
DISTRIBUTIONS [Abstract] | |
Dividends Declared | The following tables presents dividends declared (on a per share basis) for the three and six months ended June 30, 2015 and year ended December 31, 2014 : Common Stock Date Paid Total Dividend (in thousands) 2015 March 31 April 28 $ 21,444 $ 0.16 June 30 July 28 $ 21,426 $ 0.16 2014 March 31 April 28 $ 25,921 $ 0.20 June 30 July 28 $ 26,179 $ 0.20 September 30 October 28 $ 26,629 $ 0.20 December 31 January 28, 2015 $ 26,563 $ 0.20 Preferred Stock Series A Series B Series C Date Paid Total Dividend Date Paid Total Dividend Date Paid Total Dividend (in thousands) (in thousands) (in thousands) 2015 March 31 April 30 $ 568 $ 0.53125 April 30 $ 2,960 $ 0.515625 April 30 $ 2,588 $ 0.539063 June 30 July 30 $ 568 $ 0.53125 July 30 $ 2,960 $ 0.515625 July 30 $ 2,588 $ 0.539063 2014 March 31 April 30 $ 463 $ 0.53125 April 30 $ 2,057 $ 0.515625 — — — June 30 July 30 $ 537 $ 0.53125 July 30 $ 2,378 $ 0.515625 July 30 $ 1,437 $ 0.299479 September 30 October 30 $ 537 $ 0.53125 October 30 $ 2,430 $ 0.515625 October 30 $ 2,588 $ 0.539063 December 31 January 30, 2015 $ 568 $ 0.53125 January 30, 2015 $ 2,888 $ 0.515625 January 30, 2015 $ 2,588 $ 0.539063 |
FAIR VALUE OF FINANCIAL INSTR47
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value assets and liabilities measured on recurring basis | The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as follows (in thousands): Level 1 Level 2 Level 3 Total As of June 30, 2015: Assets: Investment securities, trading $ — $ — $ 32,680 $ 32,680 Investment securities available-for-sale — 4,865 248,563 253,428 Loans held for sale — 64,751 40,343 105,094 Derivatives — 1,275 3,014 4,289 Total assets at fair value $ — $ 70,891 $ 324,600 $ 395,491 Liabilities: Derivatives $ — $ (355 ) $ (6,636 ) $ (6,991 ) Total liabilities at fair value $ — $ (355 ) $ (6,636 ) $ (6,991 ) 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 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 — — 8,476 8,476 Total liabilities at fair value $ — $ — $ 77,416 $ 77,416 |
Fair value assets unobservable input reconciliation | The following table presents additional information about assets that 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 Structured Warrants Interest Rate Lock Commitments Loans Held for Sale Total Balance, January 1, 2015 $ 185,772 $ 72,157 $ 20,786 $ 898 $ 970 $ 83,380 $ 363,963 Included in earnings 849 4,226 1,673 76 19,135 (1,186 ) 24,773 Unlinked transactions 33,239 — — — — — 33,239 Purchases/Originations 7,219 10,350 19,264 — — 80,517 117,350 Sales (5,594 ) (9,339 ) — — (122,269 ) (137,202 ) Paydowns (41,706 ) (3,208 ) (488 ) — — (99 ) (45,501 ) Issuances — — — — — — — Settlements — (11,216 ) — — (18,065 ) — (29,281 ) Included in OCI (51 ) (7,345 ) 784 — — — (6,612 ) Transfers into Level 3 — 3,872 — — — — 3,872 Balance, June 30, 2015 $ 185,322 $ 63,242 $ 32,680 $ 974 $ 2,040 $ 40,343 $ 324,601 The following table presents additional information about liabilities that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs (in thousands): Interest rate swaps Beginning balance, January 1, 2015 $ 8,680 Unrealized gains - included in accumulated other comprehensive income (2,237 ) Included in earnings (134 ) Ending balance, June 30, 2015 $ 6,309 |
Fair value assets and liabilities measured on nonrecurring basis | The following table summarizes the financial assets and liabilities measured at fair value on a nonrecurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as follows (in thousands): Level 1 Level 2 Level 3 Total As of June 30, 2015: Assets : Loans held for sale $ — $ 6,028 $ — $ 6,028 Impaired loans — 2,223 — 2,223 Total assets at fair value $ — $ 8,251 $ — $ 8,251 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 |
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 June 30, 2015 , the significant unobservable inputs used in the fair value measurements were as follows (in thousands): Fair Value at June 30, 2015 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Value Interest rate swap agreements $ 6,300 Discounted cash flow Weighted average credit spreads 4.55 % |
Fair value financial instruments not reported at fair value | The fair values of the Company’s remaining financial instruments that are not reported at fair value on the consolidated balance sheets are reported in the following table (in thousands): Fair Value Measurements Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) As of June 30, 2015: Loans held-for-investment $ 2,042,885 $ 2,030,262 $ — $ 508,407 $ 1,521,855 CDO notes $ 1,047,172 $ 929,970 $ — $ — $ 929,970 Junior subordinated notes $ 51,308 $ 17,802 $ — $ — $ 17,802 Convertible notes $ 204,068 $ 204,068 $ — $ — $ 204,068 Repurchase agreements $ 377,404 $ 377,404 $ — $ — $ 377,404 Senior secured revolving credit agreement $ 147,509 $ 147,509 $ — $ — $ 147,509 As of December 31, 2014: Loans held-for-investment $ 1,925,980 $ 1,909,019 $ — $ 570,071 $ 1,338,948 Loans receivable-related party $ 558 $ 558 $ — $ — $ 558 CDO notes $ 1,046,493 $ 975,762 $ — $ — $ 975,762 Junior subordinated notes $ 51,205 $ 17,699 $ — $ — $ 17,699 Convertible notes $ 108,374 $ 108,374 $ — $ — $ 108,374 Repurchase agreements $ 399,662 $ 399,662 $ — $ — $ 399,662 Senior secured revolving credit agreement $ 111,137 $ 111,137 $ — $ — $ 111,137 |
MARKET RISK AND DERIVATIVE IN48
MARKET RISK AND DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivatives, Fair Value [Line Items] | |
Components of Unrealized Net Gains and Net Income from Linked Transactions | The following table presents certain information about the components of the unrealized gain (loss) and net interest income from linked transactions, net, included in the Company's consolidated statements of operations for the periods presented as follows ( in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Components of Unrealized Net (Losses) Gains and Net Interest Income Income from linked transactions Interest income attributable to CMBS underlying linked transactions $ — $ 1,078 $ — $ 2,009 Interest expense attributable to linked repurchase agreement borrowings underlying linked transactions — (226 ) — (615 ) Change in fair value of linked transactions included in earnings — 4,160 — 5,923 Unrealized gain (loss) and net interest income from linked transactions, net $ — $ 5,012 $ — $ 7,317 |
Available-for-sale Securities | The following table summarizes the Company's sales of investment securities available-for-sale (in thousands, except number of securities): For the Three Months Ended Positions Sold Par Amount Sold Realized Gain (Loss) June 30, 2015: ABS 3 $ 3,626 $ 1,838 RMBS 6 $ 28,305 $ 984 June 30, 2014: CMBS 3 $ 15,970 $ 480 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 June 30, 2015: CMBS $ 181,399 $ 5,114 $ (1,191 ) $ 185,322 RMBS 2,422 112 (60 ) 2,474 ABS 55,039 8,755 (553 ) 63,241 Corporate bonds 2,419 5 (33 ) 2,391 Total $ 241,279 $ 13,986 $ (1,837 ) $ 253,428 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 (1) As of June 30, 2015 and December 31, 2014, $170.9 million and $197.8 million , respectively, of investment securities available-for-sale were pledged as collateral under related financings. |
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 operations for the years presented: Fair Value of Derivative Instruments as of June 30, 2015 (in thousands) Asset Derivatives Notional Amount Balance Sheet Location Fair Value Interest rate lock agreements $ 141,883 Derivatives, at fair value $ 2,040 Forward contracts - residential mortgage lending $ 136,007 Derivatives, at fair value $ 1,275 Warrants $ 492 Derivatives, at fair value $ 974 Liability Derivatives Notional Amount Balance Sheet Location Fair Value Interest rate swap contracts, hedging (3) $ 147,776 Derivatives, at fair value $ 6,300 Interest rate lock agreements $ 4,548 Derivatives, at fair value $ 19 Forward contracts - residential mortgage lending $ 140,414 Derivatives, at fair value $ 314 Forward contracts - foreign currency, hedging (1)(2) $ 43,430 Derivatives, at fair value $ 204 Forward contracts - TBA securities $ 22,500 Derivatives, at fair value $ 154 Interest rate swap contracts $ 147,776 Accumulated other comprehensive income $ 6,300 (1) Notional amount presented on currency converted basis. The notional amount of the Company's foreign currency hedging forward contracts was €40.1 million as of June 30, 2015 . (2) Foreign currency forward contracts are accounted for as fair value hedges. (3) Interest rate swap contracts are accounted for as cash flow hedges. 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 (1)(2) $ 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, hedging (3) $ 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 - TBA securities $ 15,000 Derivatives, at fair value $ 47 Interest rate swap contracts $ 124,017 Accumulated other comprehensive income $ 8,680 (1) Notional amount presented on currency converted basis. The notional amount of the Company's foreign currency hedging forward contracts was €45.4 million as of December 31, 2014. (2) Foreign currency forward contracts are accounted for as fair value hedges. (3) Interest rate swap contracts are accounted for as cash flow hedges. |
The Effect of Derivative Instruments on the Statement of Income | he Effect of Derivative Instruments on the Statements of Operations for the Six Months Ended June 30, 2015 (in thousands) Derivatives Statement of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ 3,152 Interest rate swap contracts, hedging Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 206 Interest rate lock agreements Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 1,061 Forward contracts - RMBS securities Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 57 Forward contracts - residential mortgage lending Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 1,989 Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 1,790 Options - U.S. Treasury futures Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 184 Forward contracts - TBA securities Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 56 (1) Negative values indicate a decrease to the associated balance sheets or consolidated statements of operations line items. The Effect of Derivative Instruments on the Statements of Operations for the Six Months Ended June 30, 2014 (in thousands) Derivatives Statement of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts Interest expense $ 3,267 Interest rate lock agreements Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 990 Forward contracts - residential mortgage lending Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 458 (1) Negative values indicate a decrease to the associated balance sheets or consolidated statements of operations line items. |
Linked Transactions [Member] | |
Derivatives, Fair Value [Line Items] | |
Available-for-sale Securities | 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 As of December 31, 2014: CMBS linked transactions $ 48,138 $ 539 $ (72 ) $ 48,605 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% |
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 ) |
CMBS Linked Repurchase Agreements | The following table summarizes the Company's CMBS linked repurchase agreements (in thousands, except percentages): As of December 31, 2014 Maturity or Repricing Balance Weighted Average Interest Rate Within 30 days $ 33,397 1.56 % >30 days to 90 days — — % Total $ 33,397 1.56 % |
OFFSETTING OF FINANCIAL ASSET49
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Offsetting [Abstract] | |
Offsetting Financial Assets and Derivative Assets | The following table presents a summary of the Company's offsetting of derivative assets for the periods presented (in thousands): (iv) (i) (ii) (iii) = (i) - (ii) Financial Cash (v) = (iii) - (iv) As of June 30, 2015: Derivative hedging instruments,at fair value $ 2,249 $ — $ 2,249 $ — $ — $ 2,249 Total $ 2,249 $ — $ 2,249 $ — $ — $ 2,249 As of December 31, 2014: Derivative hedging instruments, at fair value $ 4,334 $ — $ 4,334 $ — $ — $ 4,334 Linked transactions 48,764 33,397 15,367 — — 15,367 Total $ 53,098 $ 33,397 $ 19,701 $ — $ — $ 19,701 |
Offsetting Financial Liabilities and Derivative Liabilities | The following table presents a summary of the Company's offsetting of financial liabilities and derivative liabilities for the periods presented as follows (in thousands): (iv) (i) (ii) (iii) = (i) - (ii) Financial (1) Cash (2) (v) = (iii) - (iv) As of June 30, 2015: Derivative hedging instruments, (3) $ 6,972 $ — $ 6,972 $ — $ 1,200 $ 5,772 Repurchase agreements and term facilities (4) 377,404 — 377,404 — — 377,404 Total $ 384,376 $ — $ 384,376 $ — $ 1,200 $ 383,176 As of December 31, 2014: Derivative hedging instruments, (3) $ 8,466 $ — $ 8,466 $ — $ 500 $ 7,966 Repurchase agreements and term facilities (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 (1) Amounts represent collateral pledged that is available to be offset against liability balances associated with term facilities, repurchase agreements and derivative transactions. (2) Amounts represent amounts pledged as collateral against derivative transactions. (3) The fair value of securities and/or cash and cash equivalents pledged against the Company's swaps was $1.2 million and $2.6 million at June 30, 2015 and December 31, 2014 , respectively. (4) The combined fair value of securities and loans pledged against the Company's various term facilities and repurchase agreements was $549.9 million and $565.6 million at June 30, 2015 and December 31, 2014 , respectively. |
ORGANIZATION AND BASIS OF PRE50
ORGANIZATION AND BASIS OF PRESENTATION (Details) - Entity | Apr. 30, 2015 | Jul. 09, 2014 | Feb. 26, 2014 | May. 31, 2013 | Jun. 30, 2015 |
RREF 2006-1 | RCC Real Estate [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage in VIE | 100.00% | ||||
Northport LLC [Member] | RCC Commercial [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage in VIE | 29.60% | ||||
Northport LLC [Member] | Resource TRS, LLC [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage in VIE | 25.80% | ||||
Northport LLC [Member] | Resource TRS, Inc [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage in VIE | 44.60% | ||||
Apidos III | RCC Commercial [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage in VIE | 100.00% | ||||
Apidos Cinco | RCC Commercial II [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage in VIE | 100.00% | ||||
Whitney CLO I | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage in VIE | 68.30% | ||||
Whitney CLO I | RCC Commercial II [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage in VIE | 68.30% | ||||
Moselle | RCC Commercial II [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage in VIE | 88.60% | ||||
Apidos I | RCC Commercial III [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage in VIE | 90.00% | ||||
Apidos I | RSO EquityCo, LLC [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage in VIE | 10.00% | ||||
RREF 2007-1 | RCC Real Estate [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Percentage of outstanding notes purchased | 100.00% | ||||
RCC CRE Notes 2013 | RCC Real Estate [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Percentage of outstanding notes purchased | 100.00% | ||||
Resource Capital Corp. 2014-CRE2, Ltd. [Member] | RCC Real Estate [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Percentage of outstanding notes purchased | 100.00% | ||||
Resource Capital Asset Management CDOs | 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 | 60.70% | 50.20% | |||
Life Care Funding, LLC [Member] | Long Term Care Conversion Funding [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage in VIE | 60.70% | ||||
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% | ||||
RCM Global, LLC | RCC Residential, Inc. [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage in VIE | 63.80% | 45.90% | |||
RCC Opportunities Trust [Member] | RCC Depositor, LLC [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage in VIE | 100.00% | ||||
Resource Capital Corp. 2015-CRE3, Ltd. [Member] | RCC Real Estate [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Percentage of outstanding notes purchased | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN51
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | [1] | Dec. 31, 2014 | [1] | Jun. 30, 2014 | Dec. 31, 2013 |
Accounting Policies [Abstract] | ||||||
Cash and cash equivalents | $ 145,010 | $ 79,905 | $ 222,313 | $ 262,270 | ||
[1] | June 30, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$189 $25 Restricted cash43,954 121,247 Investment securities available-for-sale, pledged as collateral, at fair value84,858 119,203 Loans held for sale6,027 282Loans, pledged as collateral and net of allowances of $42.7 million and $3.3 million1,352,546 1,261,137 Interest receivable5,468 8,941 Prepaid expenses182 221 Principal paydown receivable— 25,767 Other assets9 (12) Total assets of consolidated VIEs$1,493,233 $1,536,811 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) | Jul. 09, 2014USD ($) | Nov. 16, 2011USD ($)shares | Feb. 28, 2014 | May. 31, 2013 | Feb. 28, 2013Entity | Oct. 31, 2012 | Feb. 28, 2011USD ($)Entity | Jun. 30, 2015USD ($)EntityPosition | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)EntitycreditPosition | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($)shares | Apr. 30, 2015USD ($) | ||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Number of consolidated VIEs | Entity | 12 | 12 | |||||||||||||||
Number of credits supported in VIE | credit | 2 | ||||||||||||||||
Investments in unconsolidated entities | $ 56,150,000 | [1] | $ 56,150,000 | [1] | $ 59,827,000 | [1] | $ 750,000 | ||||||||||
Borrowings | [2] | 1,827,461,000 | 1,827,461,000 | 1,716,871,000 | |||||||||||||
Intangible assets | [1] | 24,370,000 | 24,370,000 | 18,610,000 | |||||||||||||
Fee income | 3,446,000 | $ 2,322,000 | 5,051,000 | $ 4,822,000 | |||||||||||||
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% | ||||||||||||||||
Investment in LCC Preferred Stock | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Investments in unconsolidated entities | $ 36,300,000 | 39,819,000 | 39,819,000 | 39,416,000 | |||||||||||||
Investment in RCAM [Member] | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Number of CLOs held by purchased entity | Entity | 5 | ||||||||||||||||
Acquisition | $ 22,500,000 | ||||||||||||||||
Fee income | $ 896,000 | 1,100,000 | $ 1,900,000 | 2,800,000 | |||||||||||||
VIE, Primary Beneficiary [Member] | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Number of consolidated VIEs | Entity | 12 | 12 | |||||||||||||||
Financial support provided to VIEs | $ 0 | $ 10,000 | $ 0 | $ 549,000 | |||||||||||||
VIE, Primary Beneficiary [Member] | Moselle | |||||||||||||||||
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 | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Percentage of outstanding notes purchased | 68.30% | ||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | Pelium [Member] | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Investment Maximum | 3,000,000 | 3,000,000 | |||||||||||||||
Investments in unconsolidated entities | $ 1,800,000 | $ 1,800,000 | |||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | LCC | |||||||||||||||||
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 | ||||||||||||||||
Variable interest entity, number of board positions held by the company | Position | 2 | 2 | |||||||||||||||
Variable interest entity, total number of board positions | Position | 6 | 6 | |||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | LCC | 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) | shares | 31,341 | ||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | LCC | Preferred Shares - Series B [Member] | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Shares received in equity method transaction (in shares) | shares | 4,872 | ||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | LCC | Series D Preferred Stock [Member] | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Shares received in equity method transaction (in shares) | shares | 2,364 | ||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | LCC | Series A1 Preferred Stock [Member] | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Shares received in equity method transaction (in shares) | shares | 3,682 | ||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | LCC | 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) | shares | 4,445 | ||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | LCC | Investment in LCC Preferred Stock | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Ownership percentage (percent) | 28.40% | 28.40% | |||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | Investment in RCT I and II | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Ownership percentage in VIE | 100.00% | ||||||||||||||||
Investments in unconsolidated entities | $ 1,500,000 | $ 1,500,000 | |||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | Interest in RCT I | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Percentage of total value of trusts owned | 3.00% | 3.00% | |||||||||||||||
Borrowings | $ 25,800,000 | $ 25,800,000 | |||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | Interest in RCT II | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Percentage of total value of trusts owned | 3.00% | 3.00% | |||||||||||||||
Borrowings | $ 25,800,000 | $ 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 | Entity | 4 | ||||||||||||||||
Number of CLOs liquidated | Entity | 1 | ||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | Investment in ZAIS | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Investment Maximum | 10,000,000 | 10,000,000 | |||||||||||||||
Investments in unconsolidated entities | 8,300,000 | $ 8,300,000 | |||||||||||||||
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% | ||||||||||||||||
RCC Residential, Inc. [Member] | RCM Global, LLC | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Ownership percentage in VIE | 63.80% | 45.90% | |||||||||||||||
Investment in RCAM [Member] | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Intangible assets | $ 8,542,000 | $ 8,542,000 | $ 9,400,000 | ||||||||||||||
[1] | June 30, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$189 $25 Restricted cash43,954 121,247 Investment securities available-for-sale, pledged as collateral, at fair value84,858 119,203 Loans held for sale6,027 282Loans, pledged as collateral and net of allowances of $42.7 million and $3.3 million1,352,546 1,261,137 Interest receivable5,468 8,941 Prepaid expenses182 221 Principal paydown receivable— 25,767 Other assets9 (12) Total assets of consolidated VIEs$1,493,233 $1,536,811 | ||||||||||||||||
[2] | June 30, 2015 December 31, 2014Liabilities of consolidated VIEs included in the total liabilities above: Borrowings $1,047,172 $1,046,494 Accrued interest expense852 1,000 Derivatives, at fair value5,946 8,439Unsettled loan purchases(529) (529) Accounts payable and other liabilities190 (386) Total liabilities of consolidated VIEs$1,053,631 $1,055,018 |
VARIABLE INTEREST ENTITIES (Sch
VARIABLE INTEREST ENTITIES (Schedule of Carrying Value of Assets and Liabilities of Consolidated VIEs) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 189 | $ 25 |
Restricted cash | 43,954 | 121,247 |
Investment securities available-for-sale, pledged as collateral, at fair value | 84,858 | 119,203 |
Loans, pledged as collateral | 1,352,546 | 1,261,137 |
Loans held for sale | 6,027 | 282 |
Interest receivable | 5,468 | 8,941 |
Prepaid assets | 182 | 221 |
Principal paydown receivable | 0 | 25,767 |
Other assets | 9 | (12) |
Total assets of consolidated VIEs | 1,493,233 | 1,536,811 |
LIABILITIES | ||
Borrowings | 1,047,172 | 1,046,494 |
Accrued interest expense | 852 | 1,000 |
Derivatives, at fair value | 5,946 | 8,439 |
Unsettled loan purchases | (529) | (529) |
Accounts payable and other liabilities | 190 | (386) |
Total liabilities of consolidated VIEs | 1,053,631 | $ 1,055,018 |
VIE, Primary Beneficiary [Member] | ||
ASSETS | ||
Cash and cash equivalents | 189 | |
Restricted cash | 43,954 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 84,858 | |
Loans, pledged as collateral | 1,352,546 | |
Loans held for sale | 6,027 | |
Interest receivable | 5,468 | |
Prepaid assets | 182 | |
Principal paydown receivable | 0 | |
Other assets | 9 | |
Total assets of consolidated VIEs | 1,493,233 | |
LIABILITIES | ||
Borrowings | 1,047,172 | |
Accrued interest expense | 852 | |
Derivatives, at fair value | 5,946 | |
Unsettled loan purchases | (529) | |
Accounts payable and other liabilities | 190 | |
Total liabilities of consolidated VIEs | 1,053,631 | |
Restricted cash available for reinvestment in certain of the CDOs | 2,100 | |
VIE, Primary Beneficiary [Member] | Apidos I | ||
ASSETS | ||
Cash and cash equivalents | 0 | |
Restricted cash | 347 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | |
Loans, pledged as collateral | 0 | |
Loans held for sale | 153 | |
Interest receivable | 0 | |
Prepaid assets | 0 | |
Principal paydown receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 500 | |
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] | Apidos III | ||
ASSETS | ||
Cash and cash equivalents | 0 | |
Restricted cash | 3,613 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | |
Loans, pledged as collateral | 0 | |
Loans held for sale | 1,358 | |
Interest receivable | 0 | |
Prepaid assets | 10 | |
Principal paydown receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 4,981 | |
LIABILITIES | ||
Borrowings | 0 | |
Accrued interest expense | 0 | |
Derivatives, at fair value | 0 | |
Unsettled loan purchases | 0 | |
Accounts payable and other liabilities | 3 | |
Total liabilities of consolidated VIEs | 3 | |
VIE, Primary Beneficiary [Member] | Apidos Cinco | ||
ASSETS | ||
Cash and cash equivalents | 0 | |
Restricted cash | 37,231 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 10,268 | |
Loans, pledged as collateral | 180,758 | |
Loans held for sale | 4,516 | |
Interest receivable | 734 | |
Prepaid assets | 24 | |
Principal paydown receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 233,531 | |
LIABILITIES | ||
Borrowings | 208,893 | |
Accrued interest expense | 253 | |
Derivatives, at fair value | 0 | |
Unsettled loan purchases | 0 | |
Accounts payable and other liabilities | 14 | |
Total liabilities of consolidated VIEs | 209,160 | |
VIE, Primary Beneficiary [Member] | Whitney CLO I | ||
ASSETS | ||
Cash and cash equivalents | 0 | |
Restricted cash | 116 | |
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 | |
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] | RREF 2006-1 | ||
ASSETS | ||
Cash and cash equivalents | 0 | |
Restricted cash | 20 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 5,854 | |
Loans, pledged as collateral | 94,504 | |
Loans held for sale | 0 | |
Interest receivable | 374 | |
Prepaid assets | 15 | |
Principal paydown receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 100,767 | |
LIABILITIES | ||
Borrowings | 57,205 | |
Accrued interest expense | 33 | |
Derivatives, at fair value | 346 | |
Unsettled loan purchases | 0 | |
Accounts payable and other liabilities | 9 | |
Total liabilities of consolidated VIEs | 57,593 | |
VIE, Primary Beneficiary [Member] | RREF 2007-1 | ||
ASSETS | ||
Cash and cash equivalents | 0 | |
Restricted cash | 250 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 56,448 | |
Loans, pledged as collateral | 190,911 | |
Loans held for sale | 0 | |
Interest receivable | 1,302 | |
Prepaid assets | 95 | |
Principal paydown receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 249,006 | |
LIABILITIES | ||
Borrowings | 125,055 | |
Accrued interest expense | 97 | |
Derivatives, at fair value | 5,600 | |
Unsettled loan purchases | 0 | |
Accounts payable and other liabilities | 1 | |
Total liabilities of consolidated VIEs | 130,753 | |
VIE, Primary Beneficiary [Member] | RCC CRE Notes 2013 | ||
ASSETS | ||
Cash and cash equivalents | 0 | |
Restricted cash | 1,815 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | |
Loans, pledged as collateral | 192,480 | |
Loans held for sale | 0 | |
Interest receivable | 792 | |
Prepaid assets | 28 | |
Principal paydown receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 195,115 | |
LIABILITIES | ||
Borrowings | 145,786 | |
Accrued interest expense | 132 | |
Derivatives, at fair value | 0 | |
Unsettled loan purchases | 0 | |
Accounts payable and other liabilities | 0 | |
Total liabilities of consolidated VIEs | 145,918 | |
VIE, Primary Beneficiary [Member] | RCC 2014-CRE2 | ||
ASSETS | ||
Cash and cash equivalents | 0 | |
Restricted cash | 0 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | |
Loans, pledged as collateral | 351,301 | |
Loans held for sale | 0 | |
Interest receivable | 1,324 | |
Prepaid assets | 10 | |
Principal paydown receivable | 0 | |
Other assets | 9 | |
Total assets of consolidated VIEs | 352,644 | |
LIABILITIES | ||
Borrowings | 231,846 | |
Accrued interest expense | 125 | |
Derivatives, at fair value | 0 | |
Unsettled loan purchases | 0 | |
Accounts payable and other liabilities | 0 | |
Total liabilities of consolidated VIEs | 231,971 | |
VIE, Primary Beneficiary [Member] | RCC 2015-CRE3 | ||
ASSETS | ||
Cash and cash equivalents | 0 | |
Restricted cash | 5 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | |
Loans, pledged as collateral | 342,592 | |
Loans held for sale | 0 | |
Interest receivable | 1,240 | |
Prepaid assets | 0 | |
Principal paydown receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 343,837 | |
LIABILITIES | ||
Borrowings | 278,228 | |
Accrued interest expense | 212 | |
Derivatives, at fair value | 0 | |
Unsettled loan purchases | 0 | |
Accounts payable and other liabilities | 0 | |
Total liabilities of consolidated VIEs | 278,440 | |
VIE, Primary Beneficiary [Member] | Moselle | ||
ASSETS | ||
Cash and cash equivalents | 0 | |
Restricted cash | 557 | |
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 | 557 | |
LIABILITIES | ||
Borrowings | 159 | |
Accrued interest expense | 0 | |
Derivatives, at fair value | 0 | |
Unsettled loan purchases | 0 | |
Accounts payable and other liabilities | 161 | |
Total liabilities of consolidated VIEs | 320 | |
VIE, Primary Beneficiary [Member] | RCM Global, LLC | ||
ASSETS | ||
Cash and cash equivalents | 189 | |
Restricted cash | 0 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 12,288 | |
Loans, pledged as collateral | 0 | |
Loans held for sale | 0 | |
Interest receivable | (298) | |
Prepaid assets | 0 | |
Principal paydown receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 12,179 | |
LIABILITIES | ||
Borrowings | 0 | |
Accrued interest expense | 0 | |
Derivatives, at fair value | 0 | |
Unsettled loan purchases | (529) | |
Accounts payable and other liabilities | 2 | |
Total liabilities of consolidated VIEs | $ (527) |
VARIABLE INTEREST ENTITIES (S54
VARIABLE INTEREST ENTITIES (Schedule of Classification, Carrying Value, and Maximum Exposure to Loss of Unconsolidated VIEs) (Details) - Variable Interest Entity, Not Primary Beneficiary [Member] $ in Thousands | Jun. 30, 2015USD ($) |
Variable Interest Entity [Line Items] | |
Investment in unconsolidated entities | $ 51,594 |
Intangible assets | 8,542 |
Total assets | 60,136 |
Borrowings | 51,308 |
Total liabilities | 51,308 |
Net asset (liability) | 8,828 |
Investments in Unconsolidated Entities | |
Variable Interest Entity [Line Items] | |
Unconsolidated Variable Interest Entities, Maximum Exposure to Loss | 51,594 |
Intangible Assets | |
Variable Interest Entity [Line Items] | |
Unconsolidated Variable Interest Entities, Maximum Exposure to Loss | 8,542 |
LCC | |
Variable Interest Entity [Line Items] | |
Investment in unconsolidated entities | 39,818 |
Intangible assets | 0 |
Total assets | 39,818 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | 39,818 |
Unsecured Junior Subordinated Debentures | |
Variable Interest Entity [Line Items] | |
Investment in unconsolidated entities | 1,548 |
Intangible assets | 0 |
Total assets | 1,548 |
Borrowings | 51,308 |
Total liabilities | 51,308 |
Net asset (liability) | (49,760) |
Resource Capital Asset Management CDOs | |
Variable Interest Entity [Line Items] | |
Investment in unconsolidated entities | 0 |
Intangible assets | 8,542 |
Total assets | 8,542 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | 8,542 |
Investment in ZAIS | |
Variable Interest Entity [Line Items] | |
Investment in unconsolidated entities | 10,228 |
Intangible assets | 0 |
Total assets | 10,228 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | $ 10,228 |
SUPPLEMENTAL CASH FLOW INFORM55
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Non-cash investing activities include the following: [Abstract] | ||
Conversion of linked transaction assets to CMBS | $ 48,605 | $ 0 |
Non-cash financing activities include the following: | ||
Issuance of restricted stock | 1,158 | 646 |
Conversion of linked transaction liabilities to repurchase agreement borrowings | 33,377 | 0 |
Common Stock [Member] | ||
Non-cash financing activities include the following: | ||
Distributions on common and preferred stock declared but not paid | 21,426 | 26,179 |
Preferred Stock [Member] | ||
Non-cash financing activities include the following: | ||
Distributions on common and preferred stock declared but not paid | $ 4,078 | $ 4,353 |
INVESTMENT SECURITIES TRADING56
INVESTMENT SECURITIES TRADING (Schedule of Investment Trading Securities at Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost | $ 34,415 | $ 24,772 | |
Unrealized Gains | 3,027 | 1,098 | |
Unrealized Losses | (4,762) | (5,084) | |
Fair Value | [1] | 32,680 | 20,786 |
Structured Notes [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost | 32,519 | 22,876 | |
Unrealized Gains | 3,027 | 1,098 | |
Unrealized Losses | (2,866) | (3,188) | |
Fair Value | 32,680 | 20,786 | |
RMBS [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost | 1,896 | 1,896 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | (1,896) | (1,896) | |
Fair Value | $ 0 | $ 0 | |
[1] | June 30, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$189 $25 Restricted cash43,954 121,247 Investment securities available-for-sale, pledged as collateral, at fair value84,858 119,203 Loans held for sale6,027 282Loans, pledged as collateral and net of allowances of $42.7 million and $3.3 million1,352,546 1,261,137 Interest receivable5,468 8,941 Prepaid expenses182 221 Principal paydown receivable— 25,767 Other assets9 (12) Total assets of consolidated VIEs$1,493,233 $1,536,811 |
INVESTMENT SECURITIES TRADING57
INVESTMENT SECURITIES TRADING (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015USD ($)Security | Jun. 30, 2014USD ($)Security | Dec. 31, 2014Security | |
Investments, Debt and Equity Securities [Abstract] | |||
Trading Securities, Number Sold | 10 | 1 | |
Trading Securities, Realized Gain | $ | $ 621 | $ 379 | |
Number of trading securities held | 47 | 37 |
INVESTMENT SECURITIES AVAILAB58
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Schedule of Available-for-Sale Securities, Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 241,279 | $ 256,515 |
Unrealized Gains | 13,986 | 22,761 |
Unrealized Losses | (1,837) | (3,556) |
Fair Value | 253,428 | 275,720 |
CMBS [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 181,399 | 168,669 |
Unrealized Gains | 5,114 | 4,938 |
Unrealized Losses | (1,191) | (3,202) |
Fair Value | 185,322 | 170,405 |
RMBS [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,422 | 29,814 |
Unrealized Gains | 112 | 937 |
Unrealized Losses | (60) | 0 |
Fair Value | 2,474 | 30,751 |
ABS [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 55,039 | 55,617 |
Unrealized Gains | 8,755 | 16,876 |
Unrealized Losses | (553) | (336) |
Fair Value | 63,241 | 72,157 |
Corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,419 | 2,415 |
Unrealized Gains | 5 | 10 |
Unrealized Losses | (33) | (18) |
Fair Value | $ 2,391 | $ 2,407 |
INVESTMENT SECURITIES AVAILAB59
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Estimated Maturities of Available-For-Sale Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value | ||
Less than one year | $ 108,353 | $ 78,095 |
Greater than one year and less than five years | 95,677 | 115,302 |
Greater than five years and less than ten years | 17,522 | 20,177 |
Greater than ten years | 31,876 | 62,146 |
Total | 253,428 | 275,720 |
Amortized Cost | ||
Less than one year | 107,588 | 79,649 |
Greater than one year and less than five years | 88,814 | 100,909 |
Greater than five years and less than ten years | 16,245 | 17,516 |
Greater than ten years | 28,632 | 58,441 |
Total | $ 241,279 | $ 256,515 |
Weighted Average Coupon | ||
Less than one year | 6.72% | 4.13% |
Greater than one year and less than five years | 6.94% | 4.64% |
Greater than five years and less than ten years | 13.43% | 16.45% |
Greater than ten years | 9.05% | 7.86% |
Total | 7.56% | 6.08% |
INVESTMENT SECURITIES AVAILAB60
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Gross Unrealized Loss and Fair Value of Securities) (Details) $ in Thousands | Jun. 30, 2015USD ($)Security | Dec. 31, 2014USD ($)Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, less than 12 months | $ 35,548 | $ 38,307 |
Unrealized Losses, less than 12 months | $ (830) | $ (851) |
Number of Securities, less than 12 months | Security | 37 | 31 |
Fair value, more than 12 months | $ 21,115 | $ 26,541 |
Unrealized losses, more than 12 Months | $ (1,007) | $ (2,705) |
Number of Securities, more than 12 Months | Security | 13 | 16 |
Fair value, total | $ 56,663 | $ 64,848 |
Unrealized losses, total | $ (1,837) | $ (3,556) |
Number of Securities, total | Security | 50 | 47 |
CMBS [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, less than 12 months | $ 31,158 | $ 35,860 |
Unrealized Losses, less than 12 months | $ (246) | $ (555) |
Number of Securities, less than 12 months | Security | 24 | 22 |
Fair value, more than 12 months | $ 18,989 | $ 25,583 |
Unrealized losses, more than 12 Months | $ (945) | $ (2,647) |
Number of Securities, more than 12 Months | Security | 10 | 13 |
Fair value, total | $ 50,147 | $ 61,443 |
Unrealized losses, total | $ (1,191) | $ (3,202) |
Number of Securities, total | Security | 34 | 35 |
ABS [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, less than 12 months | $ 3,258 | $ 1,000 |
Unrealized Losses, less than 12 months | $ (524) | $ (278) |
Number of Securities, less than 12 months | Security | 11 | 8 |
Fair value, more than 12 months | $ 691 | $ 958 |
Unrealized losses, more than 12 Months | $ (29) | $ (58) |
Number of Securities, more than 12 Months | Security | 2 | 3 |
Fair value, total | $ 3,949 | $ 1,958 |
Unrealized losses, total | $ (553) | $ (336) |
Number of Securities, total | Security | 13 | 11 |
Corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, less than 12 months | $ 0 | $ 1,447 |
Unrealized Losses, less than 12 months | $ 0 | $ (18) |
Number of Securities, less than 12 months | Security | 0 | 1 |
Fair value, more than 12 months | $ 1,435 | $ 0 |
Unrealized losses, more than 12 Months | $ (33) | $ 0 |
Number of Securities, more than 12 Months | Security | 1 | 0 |
Fair value, total | $ 1,435 | $ 1,447 |
Unrealized losses, total | $ (33) | $ (18) |
Number of Securities, total | Security | 1 | 1 |
RMBS [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, less than 12 months | $ 1,132 | |
Unrealized Losses, less than 12 months | $ (60) | |
Number of Securities, less than 12 months | Security | 2 | |
Fair value, more than 12 months | $ 0 | |
Unrealized losses, more than 12 Months | $ 0 | |
Number of Securities, more than 12 Months | Security | 0 | |
Fair value, total | $ 1,132 | |
Unrealized losses, total | $ (60) | |
Number of Securities, total | Security | 2 |
INVESTMENT SECURITIES AVAILAB61
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Summary of Sales of Investment Securities Available-for-Sale) (Details) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015USD ($)Security | Jun. 30, 2014USD ($)Security | |
ABS [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Positions Sold | Security | 3 | |
Par Amount Sold | $ 3,626 | |
Realized Gain (Loss) | $ 1,838 | |
RMBS [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Positions Sold | Security | 6,000 | |
Par Amount Sold | $ 28,305 | |
Realized Gain (Loss) | $ 984 | |
CMBS [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Positions Sold | Security | 3 | |
Par Amount Sold | $ 15,970 | |
Realized Gain (Loss) | $ 480 |
INVESTMENT SECURITIES AVAILAB62
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015USD ($)Security | Jun. 30, 2014USD ($)Security | Jun. 30, 2015USD ($)Security | Jun. 30, 2014USD ($)Security | Dec. 31, 2014USD ($) | ||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Investment securities available-for-sale, pledged as collateral, at fair value | [1] | $ 170,935,000 | $ 170,935,000 | $ 197,800,000 | ||
Corporate bonds [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Number of securities redeemed | Security | 0 | 1 | 0 | 1 | ||
Par value of securities redeemed | $ 0 | $ 630,000 | $ 0 | $ 630,000 | ||
Available-for-sale securities, losses | $ 0 | $ (1,000) | $ 0 | $ (1,000) | ||
ABS [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Number of securities redeemed | Security | 1 | 1 | 1 | 1 | ||
Par value of securities redeemed | $ 400,000 | $ 2,500,000 | $ 400,000 | $ 2,500,000 | ||
Loss on available-for-sale securities redeemed | $ 0 | |||||
Gain on available-for-sale securities redeemed | $ 0 | $ 0 | $ 25,500 | |||
[1] | June 30, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$189 $25 Restricted cash43,954 121,247 Investment securities available-for-sale, pledged as collateral, at fair value84,858 119,203 Loans held for sale6,027 282Loans, pledged as collateral and net of allowances of $42.7 million and $3.3 million1,352,546 1,261,137 Interest receivable5,468 8,941 Prepaid expenses182 221 Principal paydown receivable— 25,767 Other assets9 (12) Total assets of consolidated VIEs$1,493,233 $1,536,811 |
LOANS (Summary of Loans) (Detai
LOANS (Summary of Loans) (Details) $ in Thousands | Jun. 30, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan |
Receivables with Imputed Interest [Line Items] | ||
Principal, Gross | $ 2,098,851 | $ 1,940,406 |
Unamortized (Discount) Premium, net | (9,647) | (9,813) |
Gross carrying value of loans held for investment | 2,089,204 | 1,930,593 |
Allowance for loan loss | (46,319) | (4,613) |
Unamortized (discount) premium, gross, allowance for loan loss | 0 | 0 |
Carrying value, allowance for loan loss | (46,319) | (4,613) |
Principal, Net | 2,052,532 | 1,935,793 |
Unamortized (discount) premium, Loans Held for Investment, net | (9,647) | (9,813) |
Net carrying value of loans held for investment | 2,042,885 | 1,925,980 |
First lien loans held for sale at fair value | 111,122 | 111,736 |
Unamortized (discount) premium, Loans Held for Sale | 0 | |
Loans Receivable Held-for-sale, Amount, Carrying Value | 111,122 | |
Loans Receivable, Net | 111,736 | |
Loans held for investment and held for sale | 2,163,654 | 2,047,529 |
Unamortized (discount) premium, net | (9,647) | (9,813) |
Loans held for investment and held for sale, net carrying value | 2,154,007 | 2,037,716 |
Deferred amendment fees | $ 53 | $ 88 |
Number of defaulted loans | Loan | 2 | 2 |
Bank Loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Principal, Gross | $ 182,338 | $ 332,058 |
Unamortized (Discount) Premium, net | (581) | (1,410) |
Gross carrying value of loans held for investment | 181,757 | 330,648 |
First lien loans held for sale at fair value | 6,028 | 282 |
Deferred upfront fee | 27 | 82 |
Middle-market Loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Principal, Gross | 331,822 | 250,859 |
Unamortized (Discount) Premium, net | (827) | (746) |
Gross carrying value of loans held for investment | 330,995 | 250,113 |
Residential mortgage loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Principal, Gross | 3,030 | 2,802 |
Unamortized (Discount) Premium, net | 0 | 0 |
Gross carrying value of loans held for investment | 3,030 | 2,802 |
First lien loans held for sale at fair value | 105,094 | 111,454 |
Residential mortgage loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Unamortized (Discount) Premium, net | 0 | |
First lien loans held for sale at fair value | 105,094 | 111,454 |
Agency-Conforming [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
First lien loans held for sale at fair value | 64,800 | 28,900 |
Jumbo Mortgage Loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
First lien loans held for sale at fair value | 40,300 | 82,600 |
Commercial Real Estate Loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Principal, Gross | 1,581,661 | 1,354,687 |
Unamortized (Discount) Premium, net | (8,239) | (7,657) |
Gross carrying value of loans held for investment | 1,573,422 | 1,347,030 |
Loan origination fees | $ 8,200 | $ 7,600 |
Commercial Real Estate Loans [Member] | Whole Loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Fixed contractual interest in floating rate whole loan, Rate Two | 12.00% | 12.00% |
Fixed contractual interest in floating rate whole loan, Rate One | 15.00% | 15.00% |
Principal, Gross | $ 1,510,814 | $ 1,271,121 |
Unamortized (Discount) Premium, net | (8,211) | (7,529) |
Gross carrying value of loans held for investment | 1,502,603 | 1,263,592 |
Commercial Real Estate Loans [Member] | B Notes [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Principal, Gross | 16,026 | 16,120 |
Unamortized (Discount) Premium, net | (29) | (48) |
Gross carrying value of loans held for investment | 15,997 | 16,072 |
Commercial Real Estate Loans [Member] | Mezzanine Loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Principal, Gross | 54,821 | 67,446 |
Unamortized (Discount) Premium, net | 1 | (80) |
Gross carrying value of loans held for investment | $ 54,822 | $ 67,366 |
LOANS (Commercial Real Estate L
LOANS (Commercial Real Estate Loans Held for Investment) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015USD ($)Loan | Jun. 30, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan | ||
Receivables with Imputed Interest [Line Items] | ||||
Allowance for loan loss | $ 46,319,000 | $ 46,319,000 | $ 4,613,000 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 43,739,000 | 43,739,000 | 570,000 | |
Provision (recovery) for loan losses | 42,800,000 | 1,804,000 | ||
Interest receivable | [1] | $ 12,046,000 | $ 12,046,000 | $ 16,260,000 |
Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Quantity | Loan | 87 | 87 | 78 | |
Amortized Cost | $ 1,573,422,000 | $ 1,573,422,000 | $ 1,347,030,000 | |
Allowance for loan loss | 997,000 | 997,000 | 570,000 | |
Whole Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Allowance for loan loss | 3,950,000 | 3,950,000 | 3,758,000 | |
Whole Loans [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Amortized Cost | $ 1,502,603,000 | $ 1,502,603,000 | $ 1,263,592,000 | |
Fixed contractual interest in floating rate whole loan | 15.00% | 15.00% | 15.00% | |
Preferred equity tranche [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Amortized Cost | $ 799,000 | $ 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% | 10.00% | ||
Whole Loans, Floating Rate [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Loans held for investment, unfunded loan commitments | $ 104,500,000 | $ 104,500,000 | $ 105,100,000 | |
Whole Loans, Floating Rate [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Quantity | Loan | 83 | 83 | 73 | |
Amortized Cost | $ 1,502,603,000 | $ 1,502,603,000 | $ 1,263,592,000 | |
Quantity of Loans, Fixed Contractual Interest in Floating Rate Whole Loan, Rate One | Loan | 2 | 2 | ||
The amortized cost of loans held for investments, fixed rate whole loans included in floating rate whole loans. | $ 12,300,000 | $ 12,300,000 | $ 12,000,000 | |
Quantity of Loans, Fixed Contractual Interest in Floating Rate Whole Loan, Rate Two | Loan | 2 | 2 | 2 | |
B Notes [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Allowance for loan loss | $ 20,000 | $ 20,000 | $ 55,000 | |
B Notes [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Amortized Cost | $ 15,997,000 | $ 15,997,000 | $ 16,072,000 | |
B Notes, Fixed Rate [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Quantity | Loan | 1 | 1 | 1 | |
Amortized Cost | $ 15,997,000 | $ 15,997,000 | $ 16,072,000 | |
Stated interest rate | 8.68% | 8.68% | 8.68% | |
Maturity Dates | April 2,016 | April 2,016 | ||
Mezzanine Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Allowance for loan loss | $ 38,145,000 | $ 38,145,000 | $ 230,000 | |
Mezzanine Loans [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Amortized Cost | $ 54,822,000 | $ 54,822,000 | $ 67,366,000 | |
Mezzanine Loans, Fixed Rate, Tranche Two [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Stated interest rate | 0.50% | 0.50% | ||
Mezzanine Loans, Fixed Rate [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Quantity | Loan | 1 | 1 | ||
Mezzanine Loans, Fixed Rate [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Quantity | Loan | 3 | 3 | 3 | |
Amortized Cost | $ 54,822,000 | $ 54,822,000 | $ 54,808,000 | |
Mezzanine Loans, Floating Rate [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Quantity | Loan | 1 | |||
Amortized Cost | $ 12,558,000 | |||
Maturity Dates | April 2,016 | |||
The amortized cost of loans held for investments, fixed rate whole loans included in floating rate whole loans. | 4,200,000 | 4,200,000 | $ 4,200,000 | |
Variable rate basis | LIBOR | |||
Basis spread on variable rate | 15.32% | |||
Not included in total [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Allowance for loan loss | $ 42,100,000 | $ 42,100,000 | $ 4,000,000 | |
Minimum [Member] | Whole Loans, Floating Rate [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Maturity Dates | January 2,015 | March 2,014 | ||
Variable rate basis | LIBOR | LIBOR | ||
Basis spread on variable rate | 1.75% | 1.75% | 1.75% | |
Minimum [Member] | Mezzanine Loans, Fixed Rate [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Stated interest rate | 9.01% | 9.01% | 0.50% | |
Maturity Dates | January 2,016 | September 2,014 | ||
Maximum [Member] | Whole Loans, Floating Rate [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Maturity Dates | February 2,019 | February 2,019 | ||
Variable rate basis | LIBOR | LIBOR | ||
Basis spread on variable rate | 15.00% | 15.00% | 15.00% | |
Maximum [Member] | Mezzanine Loans, Fixed Rate [Member] | Commercial Real Estate Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Stated interest rate | 16.00% | 16.00% | 18.71% | |
Maturity Dates | September 2,016 | September 2,019 | ||
Commercial Portfolio Segment [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | $ 40,275,000 | $ 40,275,000 | $ 0 | |
Provision (recovery) for loan losses | 38,100,000 | 38,072,000 | $ (3,758,000) | |
Interest receivable | 0 | 0 | ||
Mezzanine Loans [Member] | ||||
Receivables with Imputed Interest [Line Items] | ||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | $ 41,100,000 | $ 41,100,000 | ||
[1] | June 30, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$189 $25 Restricted cash43,954 121,247 Investment securities available-for-sale, pledged as collateral, at fair value84,858 119,203 Loans held for sale6,027 282Loans, pledged as collateral and net of allowances of $42.7 million and $3.3 million1,352,546 1,261,137 Interest receivable5,468 8,941 Prepaid expenses182 221 Principal paydown receivable— 25,767 Other assets9 (12) Total assets of consolidated VIEs$1,493,233 $1,536,811 |
LOANS (Weighted Average Life of
LOANS (Weighted Average Life of Commercial Real Estate Loans, at Amortized Cost) (Details) - Range [Domain] - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Receivables with Imputed Interest [Line Items] | |||
Interest receivable | [1] | $ 12,046 | $ 16,260 |
Commercial Real Estate Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
2,015 | 3,250 | 0 | |
2,016 | 60,438 | 60,473 | |
2017 and thereafter | 1,509,734 | 1,286,557 | |
Total | 1,573,422 | 1,347,030 | |
Commercial Real Estate Loans [Member] | B Notes [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
2,015 | 0 | 0 | |
2,016 | 15,997 | 16,072 | |
2017 and thereafter | 0 | 0 | |
Total | 15,997 | 16,072 | |
Commercial Real Estate Loans [Member] | Mezzanine Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
2,015 | 0 | 0 | |
2,016 | 16,750 | 16,736 | |
2017 and thereafter | 38,072 | 50,630 | |
Total | 54,822 | 67,366 | |
Commercial Real Estate Loans [Member] | Whole Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
2,015 | 3,250 | 0 | |
2,016 | 27,691 | 27,665 | |
2017 and thereafter | 1,471,662 | 1,235,927 | |
Total | $ 1,502,603 | $ 1,263,592 | |
[1] | June 30, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$189 $25 Restricted cash43,954 121,247 Investment securities available-for-sale, pledged as collateral, at fair value84,858 119,203 Loans held for sale6,027 282Loans, pledged as collateral and net of allowances of $42.7 million and $3.3 million1,352,546 1,261,137 Interest receivable5,468 8,941 Prepaid expenses182 221 Principal paydown receivable— 25,767 Other assets9 (12) Total assets of consolidated VIEs$1,493,233 $1,536,811 |
LOANS (Weighted Average Life 66
LOANS (Weighted Average Life of Middle-Market and Bank Loans, at Amortized Cost) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Middle-market Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Less than one year | $ 0 | $ 0 |
Greater than one year and less than five years | 191,670 | 132,353 |
Five years or greater | 139,325 | 117,760 |
Total | 330,995 | 250,113 |
Bank Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Less than one year | 6,580 | 7,829 |
Greater than one year and less than five years | 175,208 | 274,332 |
Five years or greater | 5,997 | 48,769 |
Total | $ 187,785 | $ 330,930 |
LOANS (Allocation of Allowance
LOANS (Allocation of Allowance for Loan Loss for Commercial and Bank Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Receivables with Imputed Interest [Line Items] | ||
Allowance for Loan Loss | $ 46,319 | $ 4,613 |
B Notes [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Allowance for Loan Loss | $ 20 | $ 55 |
Percentage of Total Allowance | 0.04% | 1.19% |
Mezzanine Loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Allowance for Loan Loss | $ 38,145 | $ 230 |
Percentage of Total Allowance | 82.36% | 4.99% |
Whole Loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Allowance for Loan Loss | $ 3,950 | $ 3,758 |
Percentage of Total Allowance | 8.53% | 81.46% |
Bank Loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Allowance for Loan Loss | $ 997 | $ 570 |
Percentage of Total Allowance | 2.15% | 12.36% |
Middle-market Loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Allowance for Loan Loss | $ 3,207 | |
Percentage of Total Allowance | 6.92% |
LOANS (Loan Held for Investment
LOANS (Loan Held for Investment) (Details) | Jun. 30, 2015 | Dec. 31, 2014 |
Commercial Real Estate Loans [Member] | CALIFORNIA | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk (in hundredths) | 22.70% | 27.40% |
Commercial Real Estate Loans [Member] | ARIZONA | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk (in hundredths) | 6.20% | 7.30% |
Commercial Real Estate Loans [Member] | TEXAS | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk (in hundredths) | 28.80% | 27.30% |
Commercial Real Estate Loans [Member] | Industry Grouping of Diversified/conglomerate Service [Member] | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk (in hundredths) | 11.80% | 11.70% |
Commercial Real Estate Loans [Member] | Industry Grouping of Automobile and Healthcare [Member] | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk (in hundredths) | 10.90% | 8.50% |
Commercial Real Estate Loans [Member] | Industry Grouping of Healthcare, Education and Childcare [Member] | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk (in hundredths) | 10.30% | 17.50% |
Middle-market Loans [Member] | Hotels, Motels, Inns, and Gaming [Member] | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk (in hundredths) | 11.20% | 13.70% |
Middle-market Loans [Member] | Industry Grouping of Diversified/conglomerate Service [Member] | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk (in hundredths) | 12.30% | 2.80% |
Residential Mortgage Loans [Member] | GEORGIA | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk (in hundredths) | 43.80% | 56.00% |
Residential Mortgage Loans [Member] | VIRGINIA | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk (in hundredths) | 10.70% | 7.00% |
Residential Mortgage Loans [Member] | FLORIDA | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk (in hundredths) | 5.00% | |
Residential Mortgage Loans [Member] | NORTH CAROLINA | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk (in hundredths) | 4.80% | |
Residential Mortgage Loans [Member] | TENNESSEE | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk (in hundredths) | 4.00% | |
Residential Mortgage Loans [Member] | UTAH | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk (in hundredths) | 9.80% | 8.00% |
Residential Mortgage Loans [Member] | ALABAMA | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk (in hundredths) | 5.00% |
LOANS (Lien position and status
LOANS (Lien position and status of our bank and middle market loans (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||
Loans held for investment: | $ 181,757 | $ 330,648 |
First lien loans held for sale at fair value | 111,122 | 111,736 |
Total | 187,785 | 330,930 |
Apidos I | ||
Related Party Transaction [Line Items] | ||
Loans held for investment: | 0 | 153 |
Total | 154 | 153 |
Apidos III | ||
Related Party Transaction [Line Items] | ||
Loans held for investment: | 0 | 81,167 |
Total | 1,358 | 81,167 |
Apidos Cinco | ||
Related Party Transaction [Line Items] | ||
Loans held for investment: | 181,757 | 249,328 |
Total | 186,273 | 249,610 |
First Lien [Member] | ||
Related Party Transaction [Line Items] | ||
Loans held for investment: | 179,219 | 325,726 |
First lien loans held for sale at fair value | 6,028 | 282 |
First Lien [Member] | Apidos I | ||
Related Party Transaction [Line Items] | ||
Loans held for investment: | 0 | 153 |
First lien loans held for sale at fair value | 154 | 0 |
First Lien [Member] | Apidos III | ||
Related Party Transaction [Line Items] | ||
Loans held for investment: | 0 | 80,196 |
First lien loans held for sale at fair value | 1,358 | 0 |
First Lien [Member] | Apidos Cinco | ||
Related Party Transaction [Line Items] | ||
Loans held for investment: | 179,219 | 245,377 |
First lien loans held for sale at fair value | 4,516 | 282 |
Second Lien [Member] | ||
Related Party Transaction [Line Items] | ||
Loans held for investment: | 2,064 | 3,572 |
Second Lien [Member] | Apidos I | ||
Related Party Transaction [Line Items] | ||
Loans held for investment: | 0 | 0 |
Second Lien [Member] | Apidos III | ||
Related Party Transaction [Line Items] | ||
Loans held for investment: | 0 | 0 |
Second Lien [Member] | Apidos Cinco | ||
Related Party Transaction [Line Items] | ||
Loans held for investment: | 2,064 | 3,572 |
Third Lien [Member] | ||
Related Party Transaction [Line Items] | ||
Loans held for investment: | 0 | 0 |
Third Lien [Member] | Apidos I | ||
Related Party Transaction [Line Items] | ||
Loans held for investment: | 0 | 0 |
Third Lien [Member] | Apidos III | ||
Related Party Transaction [Line Items] | ||
Loans held for investment: | 0 | 0 |
Third Lien [Member] | Apidos Cinco | ||
Related Party Transaction [Line Items] | ||
Loans held for investment: | 0 | 0 |
Defaulted First Lien [Member] | ||
Related Party Transaction [Line Items] | ||
Loans held for investment: | 215 | 0 |
Defaulted First Lien [Member] | Apidos I | ||
Related Party Transaction [Line Items] | ||
Loans held for investment: | 0 | 0 |
Defaulted First Lien [Member] | Apidos III | ||
Related Party Transaction [Line Items] | ||
Loans held for investment: | 0 | 0 |
Defaulted First Lien [Member] | Apidos Cinco | ||
Related Party Transaction [Line Items] | ||
Loans held for investment: | 215 | 0 |
Defaulted Second Lien [Member] | ||
Related Party Transaction [Line Items] | ||
Loans held for investment: | 259 | 1,350 |
Defaulted Second Lien [Member] | Apidos I | ||
Related Party Transaction [Line Items] | ||
Loans held for investment: | 0 | 0 |
Defaulted Second Lien [Member] | Apidos III | ||
Related Party Transaction [Line Items] | ||
Loans held for investment: | 0 | 971 |
Defaulted Second Lien [Member] | Apidos Cinco | ||
Related Party Transaction [Line Items] | ||
Loans held for investment: | $ 259 | $ 379 |
LOANS (Loans Held for Investmen
LOANS (Loans Held for Investment, Middle-Market Loans) (Details) - Middle-market Loans [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Impaired [Line Items] | ||
Loans held for investment, amortized cost | $ 330,995 | $ 250,113 |
First Lien [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans held for investment, amortized cost | 218,013 | 149,287 |
Second Lien [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans held for investment, amortized cost | 108,026 | 100,826 |
Defaulted First Lien [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans held for investment, amortized cost | 0 | 0 |
Defaulted Second Lien [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans held for investment, amortized cost | $ 4,956 | $ 0 |
LOANS (Narrative) (Details)
LOANS (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | ||
Receivables with Imputed Interest [Line Items] | |||
Principal paydown receivable | [1] | $ 11,525 | $ 40,920 |
Loans held for sale, net | [1] | 111,122 | 113,675 |
Allowance for loan loss | 46,319 | 4,613 | |
Middle-market Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Loans held for sale, net | 327,800 | 250,100 | |
Allowance for loan loss | 3,207 | ||
Bank Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Loans held for sale, net | 186,800 | 330,400 | |
Allowance for loan loss | 997 | 570 | |
Whole Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Allowance for loan loss | $ 3,950 | $ 3,758 | |
Middle-market Loans [Member] | Minimum [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Basis spread on variable rate | 5.50% | 5.50% | |
Middle-market Loans [Member] | Maximum [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Basis spread on variable rate | 11.75% | 9.25% | |
Commercial Real Estate Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Allowance for loan loss | $ 997 | $ 570 | |
Bank Loans [Member] | Minimum [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Variable rate basis | three month London Interbank Offered Rate | ||
Basis spread on variable rate | 1.50% | 1.25% | |
Bank Loans [Member] | Maximum [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Variable rate basis | three month LIBOR | three month LIBOR | |
Basis spread on variable rate | 8.50% | 8.75% | |
[1] | June 30, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$189 $25 Restricted cash43,954 121,247 Investment securities available-for-sale, pledged as collateral, at fair value84,858 119,203 Loans held for sale6,027 282Loans, pledged as collateral and net of allowances of $42.7 million and $3.3 million1,352,546 1,261,137 Interest receivable5,468 8,941 Prepaid expenses182 221 Principal paydown receivable— 25,767 Other assets9 (12) Total assets of consolidated VIEs$1,493,233 $1,536,811 |
INVESTMENTS IN UNCONSOLIDATED72
INVESTMENTS IN UNCONSOLIDATED ENTITIES - Schedule of Unconsolidated Entities (Details) - USD ($) | Dec. 01, 2009 | Mar. 31, 2015 | Feb. 28, 2014 | Jan. 31, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Apr. 30, 2015 | Dec. 31, 2014 | Nov. 16, 2011 | |||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||||||||||
Investments in Unconsolidated Entities | $ 56,150,000 | [1] | $ 56,150,000 | [1] | $ 750,000 | $ 59,827,000 | [1] | |||||||
Equity in Earnings of Unconsolidated subsidiaries | $ 60,000 | $ 1,335,000 | $ 173,000 | $ 2,836,000 | ||||||||||
Varde Investment Partners, L.P | ||||||||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||||||||||
Ownership % | 7.50% | 7.50% | ||||||||||||
Investments in Unconsolidated Entities | $ 654,000 | $ 654,000 | 654,000 | |||||||||||
Equity in Earnings of Unconsolidated subsidiaries | 0 | (19,000) | 0 | (20,000) | ||||||||||
RRE VIP Borrower, LLC | ||||||||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||||||||||
Investments in Unconsolidated Entities | 0 | 0 | 0 | |||||||||||
Equity in Earnings of Unconsolidated subsidiaries | 0 | 870,000 | 46,000 | 1,736,000 | ||||||||||
Acquisition of membership interests | $ 2,100,000 | |||||||||||||
Investment in LCC Preferred Stock | ||||||||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||||||||||
Investments in Unconsolidated Entities | 39,819,000 | 39,819,000 | 39,416,000 | $ 36,300,000 | ||||||||||
Equity in Earnings of Unconsolidated subsidiaries | $ 350,000 | (278,000) | $ 402,000 | (872,000) | ||||||||||
Investment in CVC Global Credit Opportunities Fund | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Proceeds from Divestiture of Businesses and Interests in Affiliates | $ 5,000,000 | |||||||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||||||||||
Ownership % | 17.40% | 17.40% | ||||||||||||
Investments in Unconsolidated Entities | $ 14,129,000 | $ 14,129,000 | 18,209,000 | |||||||||||
Equity in Earnings of Unconsolidated subsidiaries | $ 312,000 | 1,124,000 | $ 920,000 | 1,958,000 | ||||||||||
Investment in Life Care Funding | ||||||||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||||||||||
Ownership % | 60.70% | 60.70% | ||||||||||||
Investments in Unconsolidated Entities | $ 0 | $ 0 | 0 | |||||||||||
Equity in Earnings of Unconsolidated subsidiaries | 0 | 0 | 0 | (75,000) | ||||||||||
Acquisition of membership interests | $ 1,400,000 | $ 2,000,000 | ||||||||||||
Investment in School Lane House | ||||||||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||||||||||
Investments in Unconsolidated Entities | 0 | 0 | 0 | |||||||||||
Equity in Earnings of Unconsolidated subsidiaries | 0 | 65,000 | 0 | 1,049,000 | ||||||||||
Investments in Unconsolidated Entities | ||||||||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||||||||||
Investments in Unconsolidated Entities | 54,602,000 | 54,602,000 | 58,279,000 | |||||||||||
Equity in Earnings of Unconsolidated subsidiaries | $ 662,000 | 1,762,000 | $ 1,368,000 | 3,776,000 | ||||||||||
Investment in RCT I and II | ||||||||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||||||||||
Ownership % | 3.00% | 3.00% | ||||||||||||
Investments in Unconsolidated Entities | $ 1,548,000 | $ 1,548,000 | 1,548,000 | |||||||||||
Equity in Earnings of Unconsolidated subsidiaries | (602,000) | (594,000) | (1,195,000) | (1,184,000) | ||||||||||
Investment in Preferred Equity | ||||||||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||||||||||
Investments in Unconsolidated Entities | 0 | 0 | $ 0 | |||||||||||
Equity in Earnings of Unconsolidated subsidiaries | $ 0 | $ 167,000 | $ 0 | $ 244,000 | ||||||||||
Minimum [Member] | RRE VIP Borrower, LLC | ||||||||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||||||||||
Ownership % | 3.00% | 3.00% | ||||||||||||
Maximum [Member] | RRE VIP Borrower, LLC | ||||||||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||||||||||
Ownership % | 5.00% | 5.00% | ||||||||||||
[1] | June 30, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$189 $25 Restricted cash43,954 121,247 Investment securities available-for-sale, pledged as collateral, at fair value84,858 119,203 Loans held for sale6,027 282Loans, pledged as collateral and net of allowances of $42.7 million and $3.3 million1,352,546 1,261,137 Interest receivable5,468 8,941 Prepaid expenses182 221 Principal paydown receivable— 25,767 Other assets9 (12) Total assets of consolidated VIEs$1,493,233 $1,536,811 |
FINANCING RECEIVABLES (Allowanc
FINANCING RECEIVABLES (Allowance for Loan Losses and Recorded Investments in Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for losses at beginning of period | $ 4,613 | $ 13,807 | |
Provision (recovery) for loan losses | 42,800 | 1,804 | |
Loans charged-off | (1,094) | (10,998) | |
Recoveries | 0 | ||
Allowance for losses at end of period | $ 46,319 | 46,319 | 4,613 |
Allowance for losses, ending balance: | |||
Individually evaluated for impairment | 43,739 | 43,739 | 570 |
Collectively evaluated for impairment | 2,580 | 2,580 | 4,043 |
Financing Receivable, Allowance for Credit Losses | 46,319 | 46,319 | 4,613 |
Loans, ending balance: | |||
Individually evaluated for impairment | 460,396 | 460,396 | 418,920 |
Individually evaluated for impairment | 1,628,808 | 1,628,808 | 1,513,232 |
Commercial Portfolio Segment [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for losses at beginning of period | 4,043 | 10,416 | |
Provision (recovery) for loan losses | 38,100 | 38,072 | (3,758) |
Loans charged-off | 0 | (2,615) | |
Recoveries | 0 | ||
Allowance for losses at end of period | 42,115 | 42,115 | 4,043 |
Allowance for losses, ending balance: | |||
Individually evaluated for impairment | 40,275 | 40,275 | 0 |
Collectively evaluated for impairment | 1,840 | 1,840 | 4,043 |
Loans, ending balance: | |||
Individually evaluated for impairment | 128,927 | 128,927 | 166,180 |
Individually evaluated for impairment | 1,444,495 | 1,444,495 | 1,180,850 |
Bank Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for losses at beginning of period | 570 | 3,391 | |
Provision (recovery) for loan losses | 1,734 | 4,173 | |
Loans charged-off | (1,307) | (6,994) | |
Recoveries | 0 | ||
Allowance for losses at end of period | 997 | 997 | 570 |
Allowance for losses, ending balance: | |||
Individually evaluated for impairment | 257 | 257 | 570 |
Collectively evaluated for impairment | 740 | 740 | 0 |
Loans, ending balance: | |||
Individually evaluated for impairment | 474 | 474 | 1,350 |
Individually evaluated for impairment | 181,283 | 181,283 | 329,580 |
Middle-market Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for losses at beginning of period | 0 | 0 | |
Provision (recovery) for loan losses | 3,320 | 92 | |
Loans charged-off | (113) | (92) | |
Recoveries | 0 | ||
Allowance for losses at end of period | 3,207 | 3,207 | 0 |
Allowance for losses, ending balance: | |||
Individually evaluated for impairment | 3,207 | 3,207 | 0 |
Collectively evaluated for impairment | 0 | 0 | 0 |
Loans, ending balance: | |||
Individually evaluated for impairment | 330,995 | 330,995 | 250,113 |
Individually evaluated for impairment | 0 | 0 | 0 |
Residential Mortgage Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for losses at beginning of period | 0 | 0 | |
Provision (recovery) for loan losses | (110) | 0 | |
Loans charged-off | 110 | 0 | |
Recoveries | 0 | ||
Allowance for losses at end of period | 0 | 0 | 0 |
Allowance for losses, ending balance: | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 0 | 0 | 0 |
Loans, ending balance: | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Individually evaluated for impairment | 3,030 | 3,030 | 2,802 |
Loans Receivable - Related Party [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for losses at beginning of period | 0 | 0 | |
Provision (recovery) for loan losses | (28) | (216) | 1,297 |
Loans charged-off | 216 | (1,297) | |
Recoveries | 0 | ||
Allowance for losses at end of period | 0 | 0 | 0 |
Allowance for losses, ending balance: | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 0 | 0 | 0 |
Loans, ending balance: | |||
Individually evaluated for impairment | 0 | 0 | 1,277 |
Individually evaluated for impairment | 0 | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Allowance for losses, ending balance: | |||
Financing Receivable, Allowance for Credit Losses | 0 | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial Portfolio Segment [Member] | |||
Allowance for losses, ending balance: | |||
Financing Receivable, Allowance for Credit Losses | 0 | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Bank Loans [Member] | |||
Allowance for losses, ending balance: | |||
Financing Receivable, Allowance for Credit Losses | 0 | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Middle-market Loans [Member] | |||
Allowance for losses, ending balance: | |||
Financing Receivable, Allowance for Credit Losses | 0 | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Residential Mortgage Loans [Member] | |||
Allowance for losses, ending balance: | |||
Financing Receivable, Allowance for Credit Losses | 0 | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Loans Receivable - Related Party [Member] | |||
Allowance for losses, ending balance: | |||
Financing Receivable, Allowance for Credit Losses | $ 0 | $ 0 | $ 0 |
FINANCING RECEIVABLES (Credit R
FINANCING RECEIVABLES (Credit Risk Profiles of Bank Loans, Middle Market Loans and Commercial Real Estate Loans) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2015USD ($)PropertyLoan | Jun. 29, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)PropertyLoan | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($)Loan | Sep. 30, 2014Loan | Mar. 31, 2014Loan | |
Schedule Of Financing Receivables [Line Items] | ||||||||
Provision (recovery) for loan losses | $ 42,800 | $ 1,804 | ||||||
Loans and receivables | $ 2,052,532 | 2,052,532 | 1,935,793 | |||||
Loans held for sale | $ 111,122 | $ 111,122 | $ 111,736 | |||||
Number of defaulted loans | Loan | 2 | 2 | 2 | |||||
Interest income − other | $ 1,119 | $ 982 | $ 1,951 | $ 3,834 | ||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 43,739 | 43,739 | $ 570 | |||||
Middle-market Loans [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Provision (recovery) for loan losses | 3,320 | 92 | ||||||
Loans and receivables | 330,995 | 330,995 | 250,113 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 3,207 | 3,207 | 0 | |||||
Middle-market Loans [Member] | Rating 1 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 19,225 | 19,225 | 0 | |||||
Middle-market Loans [Member] | Rating 2 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 292,983 | 292,983 | 240,245 | |||||
Middle-market Loans [Member] | Rating 3 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 13,831 | 13,831 | 9,868 | |||||
Middle-market Loans [Member] | Rating 4 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 0 | 0 | 0 | |||||
Middle-market Loans [Member] | Rating 5 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 4,956 | 4,956 | 0 | |||||
Middle-market Loans [Member] | Held for Sale [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans held for sale | 0 | 0 | 0 | |||||
Bank Loans [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Provision (recovery) for loan losses | 1,734 | 4,173 | ||||||
Loans and receivables | 187,785 | 187,785 | 330,930 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 257 | 257 | 570 | |||||
Bank Loans [Member] | Nonperforming Financing Receivable [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 474 | 474 | 1,400 | |||||
Number of defaulted loans | Loan | 1,000 | 1 | ||||||
Bank Loans [Member] | Rating 1 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 162,007 | 162,007 | 291,214 | |||||
Bank Loans [Member] | Rating 2 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 12,577 | 12,577 | 32,660 | |||||
Bank Loans [Member] | Rating 3 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 4,249 | 4,249 | 5,424 | |||||
Bank Loans [Member] | Rating 4 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 2,450 | 2,450 | 0 | |||||
Bank Loans [Member] | Rating 5 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 474 | 474 | 1,350 | |||||
Bank Loans [Member] | Held for Sale [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 6,000 | 6,000 | 282 | |||||
Loans held for sale | 6,028 | 6,028 | 282 | |||||
Whole Loans [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 1,502,603 | 1,502,603 | 1,263,592 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 2,200 | 2,200 | ||||||
Whole Loans [Member] | Rating 1 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 1,467,901 | 1,467,901 | 1,231,092 | |||||
Whole Loans [Member] | Rating 2 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 32,500 | 32,500 | 32,500 | |||||
Whole Loans [Member] | Rating 3 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 0 | 0 | 0 | |||||
Whole Loans [Member] | Rating 4 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 2,202 | 2,202 | 0 | |||||
Whole Loans [Member] | Held for Sale [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans held for sale | 0 | 0 | 0 | |||||
B Notes [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 15,997 | 15,997 | 16,072 | |||||
B Notes [Member] | Rating 1 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 15,997 | 15,997 | 16,072 | |||||
B Notes [Member] | Rating 2 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 0 | 0 | 0 | |||||
B Notes [Member] | Rating 3 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 0 | 0 | 0 | |||||
B Notes [Member] | Rating 4 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 0 | 0 | 0 | |||||
B Notes [Member] | Held for Sale [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans held for sale | $ 0 | $ 0 | 0 | |||||
Mezzanine Loans [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Number of Properties, Loan Portfolio | Property | 13 | 13 | ||||||
Loans and receivables | $ 54,822 | $ 54,822 | 67,366 | |||||
Interest income − other | 3,000 | $ 300,000 | ||||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 41,100 | 41,100 | ||||||
Mezzanine Loans [Member] | Rating 1 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 16,750 | 16,750 | 45,432 | |||||
Mezzanine Loans [Member] | Rating 2 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 0 | 0 | 21,934 | |||||
Mezzanine Loans [Member] | Rating 3 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 0 | 0 | 0 | |||||
Mezzanine Loans [Member] | Rating 4 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 38,072 | 38,072 | 0 | |||||
Mezzanine Loans [Member] | Held for Sale [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans held for sale | 0 | 0 | 0 | |||||
Commercial Portfolio Segment [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Provision (recovery) for loan losses | 38,100 | 38,072 | (3,758) | |||||
Loans and receivables | 1,573,422 | 1,573,422 | 1,347,030 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 40,275 | 40,275 | 0 | |||||
Commercial Portfolio Segment [Member] | Rating 1 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 1,500,648 | 1,500,648 | 1,292,596 | |||||
Commercial Portfolio Segment [Member] | Rating 2 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 32,500 | 32,500 | 54,434 | |||||
Commercial Portfolio Segment [Member] | Rating 3 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 0 | 0 | 0 | |||||
Commercial Portfolio Segment [Member] | Rating 4 [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans and receivables | 40,274 | 40,274 | 0 | |||||
Commercial Portfolio Segment [Member] | Held for Sale [Member] | ||||||||
Schedule Of Financing Receivables [Line Items] | ||||||||
Loans held for sale | $ 0 | $ 0 | $ 0 |
FINANCING RECEIVABLES Residenti
FINANCING RECEIVABLES Residential Mortgage Loans (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Provision (recovery) for loan losses | $ 42,800 | $ 1,804 |
Number of defaulted loans | Loan | 2 | 2 |
Residential Mortgage Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Provision (recovery) for loan losses | $ (110) | $ 0 |
FINANCING RECEIVABLES (Loans Re
FINANCING RECEIVABLES (Loans Receivable - Related Party) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015USD ($)Loan | Jun. 30, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Provision (recovery) for loan losses | $ 42,800 | $ 1,804 | |
Number of defaulted loans | Loan | 2 | 2 | 2 |
Capital Leases, Income Statement, Direct Financing Lease Revenue | $ 2,100 | ||
Total Past Due | $ 5,626 | $ 5,626 | 1,994 |
Current | 2,194,700 | 2,194,700 | 2,041,612 |
Total Loans Receivable | 2,200,326 | 2,200,326 | 2,043,606 |
Total Loans Greater Than 90 days and accruing | 0 | 0 | 0 |
Loans, fair value method elected, unpaid principal balance | 177,661 | 177,661 | 169,612 |
Loans and receivables | 2,052,532 | 2,052,532 | 1,935,793 |
First lien loans held for sale at fair value | 111,122 | 111,122 | 111,736 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | (43,739) | (43,739) | (570) |
Whole Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Current | 1,502,603 | 1,502,603 | 1,263,592 |
Total Loans Receivable | 1,502,603 | 1,502,603 | 1,263,592 |
Total Loans Greater Than 90 days and accruing | 0 | 0 | 0 |
Loans, fair value method elected, unpaid principal balance | 131,129 | 131,129 | 128,108 |
Loans and receivables | 1,502,603 | 1,502,603 | 1,263,592 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | (2,200) | (2,200) | |
B Notes [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Current | 15,997 | 15,997 | 16,072 |
Total Loans Receivable | 15,997 | 15,997 | 16,072 |
Total Loans Greater Than 90 days and accruing | 0 | 0 | 0 |
Loans, fair value method elected, unpaid principal balance | 0 | 0 | 0 |
Loans and receivables | 15,997 | 15,997 | 16,072 |
Mezzanine Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Current | 54,822 | 54,822 | 67,366 |
Total Loans Receivable | 54,822 | 54,822 | 67,366 |
Total Loans Greater Than 90 days and accruing | 0 | 0 | 0 |
Loans, fair value method elected, unpaid principal balance | 38,072 | 38,072 | 38,072 |
Loans and receivables | 54,822 | 54,822 | 67,366 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | (41,100) | (41,100) | |
Bank Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Provision (recovery) for loan losses | 1,734 | 4,173 | |
Total Past Due | 474 | 474 | 1,350 |
Current | 187,311 | 187,311 | 329,580 |
Total Loans Receivable | 187,785 | 187,785 | 330,930 |
Total Loans Greater Than 90 days and accruing | 0 | 0 | 0 |
Loans, fair value method elected, unpaid principal balance | 474 | 474 | 1,350 |
Loans and receivables | 187,785 | 187,785 | 330,930 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | (257) | (257) | (570) |
Commercial Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Provision (recovery) for loan losses | 38,100 | 38,072 | (3,758) |
Loans and receivables | 1,573,422 | 1,573,422 | 1,347,030 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | (40,275) | (40,275) | 0 |
Middle-market Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Provision (recovery) for loan losses | 3,320 | 92 | |
Total Past Due | 4,956 | 4,956 | 0 |
Current | 326,039 | 326,039 | 250,113 |
Total Loans Receivable | 330,995 | 330,995 | 250,113 |
Total Loans Greater Than 90 days and accruing | 0 | ||
Loans, fair value method elected, unpaid principal balance | 4,956 | 4,956 | 0 |
Loans and receivables | 330,995 | 330,995 | 250,113 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | (3,207) | (3,207) | 0 |
Residential Mortgage Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Provision (recovery) for loan losses | (110) | 0 | |
Total Past Due | 196 | 196 | 644 |
Current | 107,928 | 107,928 | 113,612 |
Total Loans Receivable | 108,124 | 108,124 | 114,256 |
Total Loans Greater Than 90 days and accruing | 0 | 0 | 0 |
Loans, fair value method elected, unpaid principal balance | 3,030 | 3,030 | 2,082 |
First lien loans held for sale at fair value | 105,094 | 105,094 | 111,454 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 |
Loans Receivable - Related Party [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Provision (recovery) for loan losses | (28) | (216) | $ 1,297 |
Number of defaulted loans | 0 | ||
Total Past Due | $ 0 | ||
Current | 1,277 | ||
Total Loans Receivable | 1,277 | ||
Total Loans Greater Than 90 days and accruing | 0 | ||
Loans, fair value method elected, unpaid principal balance | 0 | 0 | 0 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 |
Held for Sale [Member] | Whole Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
First lien loans held for sale at fair value | 0 | 0 | 0 |
Held for Sale [Member] | B Notes [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
First lien loans held for sale at fair value | 0 | 0 | 0 |
Held for Sale [Member] | Mezzanine Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
First lien loans held for sale at fair value | 0 | 0 | 0 |
Held for Sale [Member] | Bank Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans and receivables | 6,000 | 6,000 | 282 |
First lien loans held for sale at fair value | 6,028 | 6,028 | 282 |
Held for Sale [Member] | Commercial Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
First lien loans held for sale at fair value | 0 | 0 | 0 |
Held for Sale [Member] | Middle-market Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
First lien loans held for sale at fair value | 0 | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 443 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Whole Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | B Notes [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Mezzanine Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Bank Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Middle-market Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Mortgage Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 443 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Loans Receivable - Related Party [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 5,036 | 5,036 | 82 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Whole Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | B Notes [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Mezzanine Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Bank Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Middle-market Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4,956 | 4,956 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Mortgage Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 80 | 80 | 82 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Loans Receivable - Related Party [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 590 | 590 | 1,469 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Whole Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | B Notes [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Mezzanine Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Bank Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 474 | 474 | 1,350 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Middle-market Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Mortgage Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 116 | $ 116 | 119 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Loans Receivable - Related Party [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 0 |
FINANCING RECEIVABLES (Impaired
FINANCING RECEIVABLES (Impaired Loans) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Financing Receivable, Impaired [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | $ 0 | $ 0 |
Recorded Balance | 177,661 | 169,612 |
Unpaid Principal Balance | 177,661 | 169,612 |
Specific Allowance | (43,738) | (570) |
Average Investment in Impaired Loans | 176,805 | 170,599 |
Interest Income Recognized | 14,713 | 15,686 |
Whole Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans without a specific valuation allowance, Recorded balance | 128,927 | 128,108 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Loans with a specific valuation allowance, Recorded balance | 2,202 | 0 |
Recorded Balance | 131,129 | 128,108 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 128,927 | 128,108 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 2,202 | 0 |
Unpaid Principal Balance | 131,129 | 128,108 |
Specific Allowance | (2,202) | 0 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 128,520 | 130,445 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 2,202 | 0 |
Average Investment in Impaired Loans | 130,722 | 130,445 |
Loans with a specific valuation allowance, Interest Income Recognized | 26 | 0 |
Interest Income Recognized | 14,632 | 12,679 |
Loans without a specific valuation allowance, Interest Income Recognized | 14,606 | 12,679 |
B Notes [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans without a specific valuation allowance, Recorded balance | 0 | 0 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 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 with a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Loans without a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Mezzanine Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans without a specific valuation allowance, Recorded balance | 0 | 38,072 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Loans with a specific valuation allowance, Recorded balance | 38,072 | 0 |
Recorded Balance | 38,072 | 38,072 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 0 | 38,072 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 38,072 | 0 |
Unpaid Principal Balance | 38,072 | 38,072 |
Specific Allowance | (38,072) | 0 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 0 | 38,072 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 38,072 | 0 |
Average Investment in Impaired Loans | 38,072 | 38,072 |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Interest Income Recognized | 0 | 2,859 |
Loans without a specific valuation allowance, Interest Income Recognized | 0 | 2,859 |
Bank Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans without a specific valuation allowance, Recorded balance | 0 | 0 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Loans with a specific valuation allowance, Recorded balance | 474 | 1,350 |
Recorded Balance | 474 | 1,350 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 0 | 0 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 474 | 1,350 |
Unpaid Principal Balance | 474 | 1,350 |
Specific Allowance | (257) | (570) |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 237 | 0 |
Average Investment in Impaired Loans | 237 | 0 |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Loans without a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Middle-market Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans without a specific valuation allowance, Recorded balance | 0 | 0 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | |
Loans with a specific valuation allowance, Recorded balance | 4,956 | 0 |
Recorded Balance | 4,956 | 0 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 0 | |
Loans with a specific valuation allowance, Unpaid Principal Balance | 4,956 | 0 |
Unpaid Principal Balance | 4,956 | 0 |
Specific Allowance | (3,207) | 0 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 4,956 | 0 |
Average Investment in Impaired Loans | 4,956 | 0 |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Loans without a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Residential Mortgage Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans without a specific valuation allowance, Recorded balance | 3,030 | 2,082 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Loans with a specific valuation allowance, Recorded balance | 0 | 0 |
Recorded Balance | 3,030 | 2,082 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 3,030 | 2,082 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 0 | 0 |
Unpaid Principal Balance | 3,030 | 2,082 |
Specific Allowance | 0 | 0 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 2,818 | 2,082 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 |
Average Investment in Impaired Loans | 2,818 | 2,082 |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Interest Income Recognized | 81 | 148 |
Loans without a specific valuation allowance, Interest Income Recognized | 81 | 148 |
Loans Receivable - Related Party [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans without a specific valuation allowance, Recorded balance | 0 | 0 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 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 with a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Loans without a specific valuation allowance, Interest Income Recognized | $ 0 | $ 0 |
FINANCING RECEIVABLES (Loan Por
FINANCING RECEIVABLES (Loan Portfolio Troubled-debt Restructurings) (Details) - 6 months ended Jun. 30, 2015 $ in Thousands | USD ($)Loan |
Troubled debt restructuring [Abstract] | |
Number of Loans | Loan | 3 |
Pre-Modification Outstanding Recorded Balance | $ 105,531 |
Post-Modification Outstanding Recorded Balance | $ 67,459 |
Whole Loans [Member] | |
Troubled debt restructuring [Abstract] | |
Number of Loans | Loan | 2 |
Pre-Modification Outstanding Recorded Balance | $ 67,459 |
Post-Modification Outstanding Recorded Balance | $ 67,459 |
B Notes [Member] | |
Troubled debt restructuring [Abstract] | |
Number of Loans | Loan | 0 |
Pre-Modification Outstanding Recorded Balance | $ 0 |
Post-Modification Outstanding Recorded Balance | $ 0 |
Mezzanine Loans [Member] | |
Troubled debt restructuring [Abstract] | |
Number of Loans | Loan | 1 |
Pre-Modification Outstanding Recorded Balance | $ 38,072 |
Post-Modification Outstanding Recorded Balance | $ 0 |
Bank Loans [Member] | |
Troubled debt restructuring [Abstract] | |
Number of Loans | Loan | 0 |
Pre-Modification Outstanding Recorded Balance | $ 0 |
Post-Modification Outstanding Recorded Balance | $ 0 |
Middle-market Loans [Member] | |
Troubled debt restructuring [Abstract] | |
Number of Loans | Loan | 0 |
Pre-Modification Outstanding Recorded Balance | $ 0 |
Post-Modification Outstanding Recorded Balance | $ 0 |
Residential Mortgage Loans [Member] | |
Troubled debt restructuring [Abstract] | |
Number of Loans | Loan | 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 | Loan | 0 |
Pre-Modification Outstanding Recorded Balance | $ 0 |
Post-Modification Outstanding Recorded Balance | $ 0 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) | Jul. 31, 2015 | Apr. 30, 2015 | Feb. 26, 2014 | Jun. 30, 2015 | [1] | Feb. 27, 2015 | Dec. 31, 2014 | [1] |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Investments in unconsolidated entities | $ 750,000 | $ 56,150,000 | $ 59,827,000 | |||||
Life Care Funding, LLC [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Ownership percentage in VIE | 60.70% | 50.20% | ||||||
Payments to Acquire Equity Method Investments | $ 375,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $ 4,100,000 | |||||||
Subsequent Event [Member] | Life Care Funding, LLC [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Payments to Acquire Equity Method Investments | $ 375,000 | |||||||
[1] | June 30, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$189 $25 Restricted cash43,954 121,247 Investment securities available-for-sale, pledged as collateral, at fair value84,858 119,203 Loans held for sale6,027 282Loans, pledged as collateral and net of allowances of $42.7 million and $3.3 million1,352,546 1,261,137 Interest receivable5,468 8,941 Prepaid expenses182 221 Principal paydown receivable— 25,767 Other assets9 (12) Total assets of consolidated VIEs$1,493,233 $1,536,811 |
INTANGIBLE ASSETS (Intangible A
INTANGIBLE ASSETS (Intangible Assets) (Details) - Jun. 30, 2015 - USD ($) $ in Thousands | Total | |
Finite-lived Intangible Assets [Roll Forward] | ||
Balance, beginning of period | $ 18,610 | |
Additions | 8,360 | |
Sales | 0 | |
Amortization | (2,850) | |
Balance, beginning of end | 24,120 | |
Temporary impairment adjustment | 250 | |
Balance, end of period | [1] | 24,370 |
Investment in RCAM [Member] | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Balance, beginning of period | 9,434 | |
Additions | 0 | |
Sales | 0 | |
Amortization | (892) | |
Balance, beginning of end | 8,542 | |
Temporary impairment adjustment | 0 | |
Balance, end of period | 8,542 | |
Servicing Contracts [Member] | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Balance, beginning of period | 8,874 | |
Additions | 8,360 | |
Sales | 0 | |
Amortization | (1,831) | |
Balance, beginning of end | 15,403 | |
Temporary impairment adjustment | 250 | |
Balance, end of period | 15,653 | |
Wholesale or Correspondent Relationships [Member] | Investment in PCA [Member] | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Balance, beginning of period | 302 | |
Additions | 0 | |
Sales | 0 | |
Amortization | (127) | |
Balance, beginning of end | 175 | |
Temporary impairment adjustment | 0 | |
Balance, end of period | $ 175 | |
[1] | June 30, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$189 $25 Restricted cash43,954 121,247 Investment securities available-for-sale, pledged as collateral, at fair value84,858 119,203 Loans held for sale6,027 282Loans, pledged as collateral and net of allowances of $42.7 million and $3.3 million1,352,546 1,261,137 Interest receivable5,468 8,941 Prepaid expenses182 221 Principal paydown receivable— 25,767 Other assets9 (12) Total assets of consolidated VIEs$1,493,233 $1,536,811 |
INTANGIBLE ASSETS (Mortgage Ser
INTANGIBLE ASSETS (Mortgage Servicing Rights) (Details) - Servicing Contracts [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Principal Amount Outstanding of Loans Held-in-portfolio [Roll Forward] | ||
Balance, beginning of period | $ 894,767 | $ 433,153 |
Additions | 633,511 | 519,915 |
Payoffs, sales and curtailments | (79,666) | (58,301) |
Balance, end of period | $ 1,448,612 | $ 894,767 |
INTANGIBLE ASSETS (Servicing Ac
INTANGIBLE ASSETS (Servicing Activities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Expected amortization, 2019 | $ 1,000 | $ 1,000 | ||
Servicing Contracts [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Expected amortization, 2019 | 2,500 | 2,500 | ||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 3,500 | 3,500 | ||
Other Income [Member] | Servicing Contracts [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Servicing fees from capitalized portfolio | 911 | $ 336 | 1,462 | $ 644 |
Late fees | 18 | 16 | 41 | 39 |
Other ancillary servicing revenue | $ 3 | $ (1) | $ 7 | $ 3 |
INTANGIBLE ASSETS (Narrative) (
INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization of Intangible Assets | $ 513 | $ 512 | $ 1,000 | $ 1,000 | ||||
Expected amortization, 2015 | 2,000 | 2,000 | ||||||
Expected amortization, 2016 | 1,800 | 1,800 | ||||||
Expected amortization, 2017 | 1,800 | 1,800 | ||||||
Expected amortization, 2018 | 1,600 | 1,600 | ||||||
Expected amortization, 2019 | 1,000 | 1,000 | ||||||
Fee income | 3,446 | 2,322 | $ 5,051 | 4,822 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years 2 months 24 days | 6 years 7 months 6 days | ||||||
Servicing Contracts [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization of Intangible Assets | 1,000 | 396 | $ 1,800 | 652 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 3,500 | 3,500 | ||||||
Expected amortization, 2016 | 3,400 | 3,400 | ||||||
Expected amortization, 2017 | 3,300 | 3,300 | ||||||
Expected amortization, 2018 | 3,100 | 3,100 | ||||||
Expected amortization, 2019 | 2,500 | 2,500 | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year 2 months 12 days | 1 year 4 months 24 days | ||||||
Principal Amount Outstanding of Loans Held-in-portfolio | $ 894,767 | 1,448,612 | 1,448,612 | $ 894,767 | $ 433,153 | |||
Investment in RCAM [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Fee income | 896 | 1,100 | 1,900 | 2,800 | ||||
Other Income [Member] | Servicing Contracts [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Servicing fees from capitalized portfolio | $ 911 | $ 336 | $ 1,462 | $ 644 |
BORROWINGS (Schedule of Debt) (
BORROWINGS (Schedule of Debt) (Details) - Credit Facility [Domain] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | ||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 1,853,054 | $ 1,734,901 | |
Unamortized Issuance Costs and Discounts | 25,593 | 18,030 | |
Outstanding Borrowings | $ 1,827,461 | $ 1,716,871 | |
Weighted Average Borrowing Rate | 2.56% | 2.09% | |
Weighted Average Remaining Maturity | 10 years 7 months 6 days | 10 years | |
Value of Collateral | $ 2,335,628 | $ 2,287,115 | |
Accrued interest costs | [1] | 5,467 | 2,123 |
RREF CDO 2006-1 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 57,205 | 61,423 | |
Unamortized Issuance Costs and Discounts | 0 | 0 | |
Outstanding Borrowings | $ 57,205 | $ 61,423 | |
Weighted Average Borrowing Rate | 2.28% | 2.12% | |
Weighted Average Remaining Maturity | 31 years 1 month 6 days | 31 years 7 months 6 days | |
Value of Collateral | $ 100,062 | $ 139,242 | |
RREF CDO 2007-1 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 125,055 | 130,340 | |
Unamortized Issuance Costs and Discounts | 0 | 133 | |
Outstanding Borrowings | $ 125,055 | $ 130,207 | |
Weighted Average Borrowing Rate | 1.19% | 1.19% | |
Weighted Average Remaining Maturity | 31 years 3 months 18 days | 31 years 9 months 18 days | |
Value of Collateral | $ 247,292 | $ 271,423 | |
RCC CRE Notes 2013 | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 148,115 | 226,840 | |
Unamortized Issuance Costs and Discounts | 2,329 | 2,683 | |
Outstanding Borrowings | $ 145,786 | $ 224,157 | |
Weighted Average Borrowing Rate | 2.28% | 2.11% | |
Weighted Average Remaining Maturity | 13 years 5 months 24 days | 14 years | |
Value of Collateral | $ 192,666 | $ 249,983 | |
RCC 2014-CRE2 | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 235,344 | 235,344 | |
Unamortized Issuance Costs and Discounts | 3,498 | 3,687 | |
Outstanding Borrowings | $ 231,846 | $ 231,657 | |
Weighted Average Borrowing Rate | 1.48% | 1.45% | |
Weighted Average Remaining Maturity | 16 years 9 months 18 days | 17 years 3 months 18 days | |
Value of Collateral | $ 348,194 | $ 346,585 | |
RCC 2015-CRE3 | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 282,127 | ||
Unamortized Issuance Costs and Discounts | 3,899 | ||
Outstanding Borrowings | $ 278,228 | ||
Weighted Average Borrowing Rate | 2.08% | ||
Weighted Average Remaining Maturity | 16 years 8 months 12 days | ||
Value of Collateral | $ 340,076 | ||
Apidos CDO III Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 74,646 | ||
Unamortized Issuance Costs and Discounts | 0 | ||
Outstanding Borrowings | $ 74,646 | ||
Weighted Average Borrowing Rate | 1.18% | ||
Weighted Average Remaining Maturity | 5 years 8 months 12 days | ||
Value of Collateral | $ 85,553 | ||
Apidos Cinco CDO Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 208,893 | 255,664 | |
Unamortized Issuance Costs and Discounts | 0 | 201 | |
Outstanding Borrowings | $ 208,893 | $ 255,463 | |
Weighted Average Borrowing Rate | 0.93% | 0.81% | |
Weighted Average Remaining Maturity | 4 years 10 months 24 days | 5 years 4 months 24 days | |
Value of Collateral | $ 229,238 | $ 272,512 | |
Moselle CLO S.A. Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 63,321 | ||
Unamortized Issuance Costs and Discounts | 0 | ||
Outstanding Borrowings | $ 63,321 | ||
Weighted Average Borrowing Rate | 1.49% | ||
Weighted Average Remaining Maturity | 5 years | ||
Value of Collateral | $ 93,576 | ||
Accrued interest costs | 20 | ||
Line of Credit Facility, Fair Value of Amount Outstanding | 63,300 | ||
Moselle CLO S.A. Securitized Borrowings [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 159 | 5,619 | |
Unamortized Issuance Costs and Discounts | 0 | 0 | |
Outstanding Borrowings | 159 | $ 5,619 | |
Weighted Average Borrowing Rate | 1.49% | ||
Weighted Average Remaining Maturity | 5 years | ||
Value of Collateral | 557 | $ 0 | |
Unsecured Junior Subordinated Debentures | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 51,548 | 51,548 | |
Unamortized Issuance Costs and Discounts | 240 | 343 | |
Outstanding Borrowings | $ 51,308 | $ 51,205 | |
Weighted Average Borrowing Rate | 4.20% | 4.19% | |
Weighted Average Remaining Maturity | 21 years 3 months 18 days | 21 years 9 months 18 days | |
Value of Collateral | $ 0 | $ 0 | |
Six Percent Convertible Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 115,000 | 115,000 | |
Unamortized Issuance Costs and Discounts | 5,762 | 6,626 | |
Outstanding Borrowings | $ 109,238 | $ 108,374 | |
Weighted Average Borrowing Rate | 6.00% | 6.00% | |
Weighted Average Remaining Maturity | 3 years 4 months 24 days | 3 years 10 months 24 days | |
Value of Collateral | $ 0 | $ 0 | |
Eight Percent Convertible Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 100,000 | ||
Unamortized Issuance Costs and Discounts | 5,170 | ||
Outstanding Borrowings | $ 94,830 | ||
Weighted Average Borrowing Rate | 8.00% | ||
Weighted Average Remaining Maturity | 4 years 6 months | ||
Value of Collateral | $ 0 | ||
CRE - Term Repurchase Facility [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 174,928 | 207,640 | |
Unamortized Issuance Costs and Discounts | 1,204 | 1,958 | |
Outstanding Borrowings | $ 173,724 | $ 205,682 | |
Weighted Average Borrowing Rate | 2.24% | 2.43% | |
Weighted Average Remaining Maturity | 18 days | 20 days | |
Value of Collateral | $ 273,686 | $ 297,571 | |
Accrued interest costs | 187 | 198 | |
Repurchase Agreements Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 24,967 | ||
Unamortized Issuance Costs and Discounts | 0 | ||
Outstanding Borrowings | $ 24,967 | ||
Weighted Average Borrowing Rate | 1.35% | ||
Weighted Average Remaining Maturity | 20 days | ||
Value of Collateral | $ 30,180 | ||
CMBS - Term Repurchase Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 29,929 | ||
Unamortized Issuance Costs and Discounts | 0 | ||
Outstanding Borrowings | $ 29,929 | ||
Weighted Average Borrowing Rate | 1.38% | ||
Weighted Average Remaining Maturity | 18 days | ||
Value of Collateral | $ 34,330 | ||
Accrued interest costs | 13 | 12 | |
RMBS - Term Repurchase Facility [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 22,248 | ||
Unamortized Issuance Costs and Discounts | 36 | ||
Outstanding Borrowings | $ 22,212 | ||
Weighted Average Borrowing Rate | 1.16% | ||
Weighted Average Remaining Maturity | 1 day | ||
Value of Collateral | $ 27,885 | ||
Accrued interest costs | 39 | 31 | |
Mortgages [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 96,580 | 102,576 | |
Unamortized Issuance Costs and Discounts | 0 | 0 | |
Outstanding Borrowings | $ 96,580 | $ 102,576 | |
Weighted Average Borrowing Rate | 2.74% | 2.78% | |
Weighted Average Remaining Maturity | 62 days | 207 days | |
Value of Collateral | $ 128,465 | $ 147,472 | |
CMBS - Short Term Repurchase Agreements [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 77,171 | 44,225 | |
Unamortized Issuance Costs and Discounts | 0 | 0 | |
Outstanding Borrowings | $ 77,171 | $ 44,225 | |
Weighted Average Borrowing Rate | 1.71% | 1.63% | |
Weighted Average Remaining Maturity | 20 days | 17 days | |
Value of Collateral | $ 113,381 | $ 62,446 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 113,500 | ||
Unamortized Issuance Costs and Discounts | 3,491 | 2,363 | |
Outstanding Borrowings | $ 147,509 | $ 111,137 | |
Weighted Average Borrowing Rate | 3.05% | 2.66% | |
Weighted Average Remaining Maturity | 2 years 2 months 12 days | 2 years 8 months 12 days | |
Value of Collateral | $ 327,681 | $ 262,687 | |
[1] | June 30, 2015 December 31, 2014Liabilities of consolidated VIEs included in the total liabilities above: Borrowings $1,047,172 $1,046,494 Accrued interest expense852 1,000 Derivatives, at fair value5,946 8,439Unsettled loan purchases(529) (529) Accounts payable and other liabilities190 (386) Total liabilities of consolidated VIEs$1,053,631 $1,055,018 |
BORROWINGS (Securitization) (De
BORROWINGS (Securitization) (Details) $ in Millions | Jun. 30, 2015USD ($) |
Debt Instrument [Line Items] | |
Debt Instrument, Cumulative Amount Repaid | $ 262.5 |
RREF CDO 2006-1 Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Cumulative Amount Repaid | 194.2 |
RREF CDO 2007-1 Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Cumulative Amount Repaid | 215.9 |
RCC CRE Notes 2013 | |
Debt Instrument [Line Items] | |
Debt Instrument, Cumulative Amount Repaid | 112.7 |
RCC 2014-CRE2 | |
Debt Instrument [Line Items] | |
Debt Instrument, Cumulative Amount Repaid | 0 |
RCC 2015-CRE3 | |
Debt Instrument [Line Items] | |
Debt Instrument, Cumulative Amount Repaid | 0 |
Apidos Cinco CDO Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Cumulative Amount Repaid | 113.1 |
Moselle CLO S.A. Securitized Borrowings [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Cumulative Amount Repaid | 5 |
Moselle CLO S.A. Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Cumulative Amount Repaid | $ 167.2 |
BORROWINGS (Narrative)-RCC 2015
BORROWINGS (Narrative)-RCC 2015-CRE3 (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2015 | Dec. 31, 2014 | Feb. 24, 2015 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 282.1 | |||
Percentage of senior notes acquired by the parent | 100.00% | |||
RCC 2015-CRE3 | ||||
Debt Instrument [Line Items] | ||||
Closing transaction amount | $ 346.2 | |||
Ownership interests in variable interest entity | 100.00% | |||
RCC CRE Notes 2013 | ||||
Debt Instrument [Line Items] | ||||
Closing transaction amount | $ 307.8 | |||
RCC CRE Notes 2013 | Senior Notes Class E [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 20.8 | |||
Basis spread on variable rate | 4.75% | |||
RCC CRE Notes 2013 | Senior Notes Class F [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 15.6 | |||
Basis spread on variable rate | 5.50% | |||
RCC CRE Notes 2013 | Senior Notes Class A [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 193.9 | |||
Basis spread on variable rate | 1.40% | |||
RCC CRE Notes 2013 | Senior Notes Class A-S [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 17.3 | |||
Basis spread on variable rate | 1.65% | |||
RCC CRE Notes 2013 | Senior Notes Class B [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 19.5 | |||
Basis spread on variable rate | 2.40% | |||
RCC CRE Notes 2013 | Senior Notes Class C [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 20.8 | |||
Basis spread on variable rate | 3.15% | |||
RCC CRE Notes 2013 | Senior Notes Class D [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 30.7 | |||
Basis spread on variable rate | 4.00% | |||
RCC Commercial [Member] | RCC 2015-CRE3 | ||||
Debt Instrument [Line Items] | ||||
Payments by parent to acquire notes issued by VIE | $ 27.7 | |||
RCC Commercial [Member] | RCC 2015-CRE3 | Senior Notes Class E [Member] | ||||
Debt Instrument [Line Items] | ||||
Payments by parent to acquire notes issued by VIE | 20.8 | |||
RCC Commercial [Member] | RCC 2015-CRE3 | Senior Notes Class F [Member] | ||||
Debt Instrument [Line Items] | ||||
Payments by parent to acquire notes issued by VIE | $ 15.6 |
BORROWINGS (Narrative)-Converti
BORROWINGS (Narrative)-Convertible Senior Notes (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 13, 2015 | Oct. 21, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Feb. 28, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||||||
Debt Instrument, Cumulative Amount Repaid | $ 262,500 | |||||
Principal Outstanding | 1,853,054 | $ 1,734,901 | ||||
Debt Instrument, Face Amount | $ 282,100 | |||||
Outstanding Borrowings | 1,827,461 | $ 1,716,871 | ||||
Reissuance of debt | $ 12,229 | $ 0 | ||||
Convertible Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||||
Convertible Debt [Member] | Eight Percent Convertible Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 100,000 | |||||
Debt Instrument, Unamortized Discount | $ 1,000 | |||||
Outstanding Borrowings | $ 2,100 | |||||
Reissuance of debt | 97,000 | |||||
Debt Instrument, Convertible, Discount Adjustment, Fair Value Without Conversion Feature | $ 2,500 | |||||
Debt Conversion, Converted Instrument, Shares Issuable Upon Conversion | 187.4414 | |||||
Debt Instrument, Convertible, Conversion Price | $ 5.34 |
BORROWINGS (Repurchase and Mort
BORROWINGS (Repurchase and Mortgage Finance Facilities) (Details) $ in Thousands | Jun. 30, 2015USD ($)Loan | Feb. 28, 2015USD ($) | Dec. 31, 2014USD ($)Loan | |
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | $ 282,100 | |||
Weighted Average Interest Rate | 2.56% | 2.09% | ||
Long-term debt, gross | $ 1,853,054 | $ 1,734,901 | ||
Outstanding Borrowings | 1,827,461 | 1,716,871 | ||
Linked Transactions, Fair Value Disclosure | [1] | $ 0 | 15,367 | |
Linked Transactions [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | 33,397 | |||
Linked Transactions, Fair Value Disclosure | $ 48,605 | |||
CMBS - Term Repurchase Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Interest Rate | 1.38% | |||
Long-term debt, gross | $ 29,929 | |||
Outstanding Borrowings | $ 29,929 | |||
CRE - Term Repurchase Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Interest Rate | 2.24% | 2.43% | ||
Long-term debt, gross | $ 174,928 | $ 207,640 | ||
Outstanding Borrowings | 173,724 | 205,682 | ||
Repurchase Agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 377,404 | 399,662 | ||
CMBS bonds held as collateral, fair value | 549,862 | 565,554 | ||
Wells Fargo Bank, National Association [Member] | CRE - Term Repurchase Facility [Member] | RCC Real Estate [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | 1,200 | 1,700 | ||
Wells Fargo Bank, National Association [Member] | Repurchase Agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | 56,267 | 61,189 | ||
Value of Collateral | $ 81,616 | $ 95,511 | ||
Number of Positions as Collateral | Loan | 170 | 104 | ||
Weighted Average Interest Rate | 2.75% | 2.75% | ||
Deutsche Bank Securities, Inc [Member] | RCC Real Estate [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | $ 21 | $ 268 | ||
Deutsche Bank Securities, Inc [Member] | Repurchase Agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | 24,114 | 33,783 | ||
Value of Collateral | $ 37,707 | $ 44,751 | ||
Number of Positions as Collateral | Loan | 4 | 8 | ||
Weighted Average Interest Rate | 1.64% | 1.62% | ||
Deutsche Bank Securities, Inc [Member] | Repurchase Agreements [Member] | Linked Transactions [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | $ 24,348 | |||
Number of Positions as Collateral | Loan | 10 | |||
Weighted Average Interest Rate | 1.57% | |||
Linked Transactions, Fair Value Disclosure | $ 36,001 | |||
Wells Fargo Securities, LLC [Member] | Repurchase Agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | $ 53,057 | 10,442 | ||
Value of Collateral | $ 75,674 | $ 17,695 | ||
Number of Positions as Collateral | Loan | 20 | 1 | ||
Weighted Average Interest Rate | 1.72% | 1.66% | ||
Wells Fargo Securities, LLC [Member] | Repurchase Agreements [Member] | Linked Transactions [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | $ 4,108 | |||
Number of Positions as Collateral | Loan | 2 | |||
Weighted Average Interest Rate | 1.37% | |||
Linked Transactions, Fair Value Disclosure | $ 6,233 | |||
New Century Bank [Member] | Repurchase Agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | $ 40,313 | 41,387 | ||
Value of Collateral | $ 46,849 | $ 51,961 | ||
Number of Positions as Collateral | Loan | 195 | 158 | ||
Weighted Average Interest Rate | 2.73% | 2.82% | ||
JP Morgan Securities, LLC [Member] | Repurchase Agreements [Member] | Linked Transactions [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | $ 0 | |||
Number of Positions as Collateral | Loan | 0 | |||
Weighted Average Interest Rate | 0.00% | |||
Linked Transactions, Fair Value Disclosure | $ 0 | |||
CMBS - Term Repurchase Facilities [Member] | Wells Fargo Bank, National Association [Member] | Linked Transactions [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | $ 4,941 | |||
Number of Positions as Collateral | Loan | 7 | |||
Weighted Average Interest Rate | 1.67% | |||
Linked Transactions, Fair Value Disclosure | $ 6,371 | |||
CMBS - Term Repurchase Facilities [Member] | Wells Fargo Bank, National Association [Member] | Repurchase Agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | $ 29,929 | 24,967 | ||
Value of Collateral | $ 34,330 | $ 30,180 | ||
Number of Positions as Collateral | Loan | 35 | 33 | ||
Weighted Average Interest Rate | 1.38% | 1.35% | ||
CRE - Term Repurchase Facility [Member] | Wells Fargo Bank, National Association [Member] | Repurchase Agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | $ 173,745 | $ 179,762 | ||
Value of Collateral | $ 273,686 | $ 258,223 | ||
Number of Positions as Collateral | Loan | 13 | 15 | ||
Weighted Average Interest Rate | 2.24% | 2.38% | ||
CRE - Term Repurchase Facility [Member] | Deutsche Bank Securities, Inc [Member] | Repurchase Agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | $ (21) | $ 25,920 | ||
Value of Collateral | $ 0 | $ 39,348 | ||
Number of Positions as Collateral | Loan | 0 | 2 | ||
Weighted Average Interest Rate | 0.00% | 2.78% | ||
RMBS - Term Repurchase Facility [Member] | Wells Fargo Bank, National Association [Member] | Repurchase Agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | $ 0 | $ 22,212 | ||
Value of Collateral | $ 0 | $ 27,885 | ||
Number of Positions as Collateral | Loan | 0 | 6 | ||
Weighted Average Interest Rate | 0.00% | 1.16% | ||
Outstanding Borrowings | $ 36 | |||
[1] | June 30, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$189 $25 Restricted cash43,954 121,247 Investment securities available-for-sale, pledged as collateral, at fair value84,858 119,203 Loans held for sale6,027 282Loans, pledged as collateral and net of allowances of $42.7 million and $3.3 million1,352,546 1,261,137 Interest receivable5,468 8,941 Prepaid expenses182 221 Principal paydown receivable— 25,767 Other assets9 (12) Total assets of consolidated VIEs$1,493,233 $1,536,811 |
BORROWINGS (Amount at Risk Unde
BORROWINGS (Amount at Risk Under Repurchase Facilities) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 10 years 7 months 6 days | 10 years |
Weighted Average Interest Rate | 2.56% | 2.09% |
CMBS - Term Repurchase Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 18 days | |
Weighted Average Interest Rate | 1.38% | |
RMBS - Term Repurchase Facility [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 1 day | |
Weighted Average Interest Rate | 1.16% | |
CRE - Term Repurchase Facility [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 18 days | 20 days |
Weighted Average Interest Rate | 2.24% | 2.43% |
Repurchase Agreements [Member] | Wells Fargo Bank, National Association [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 2.75% | 2.75% |
Repurchase Agreements [Member] | Wells Fargo Securities, LLC [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 1.72% | 1.66% |
Repurchase Agreements [Member] | Deutsche Bank Securities, Inc [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 1.64% | 1.62% |
Repurchase Agreements [Member] | New Century Bank [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 2.73% | 2.82% |
Linked and Non-linked Transactions [Member] | CMBS - Term Repurchase Facilities [Member] | Wells Fargo Bank, National Association [Member] | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 4,024 | $ 6,486 |
Weighted Average Remaining Maturity | 18 days | 20 days |
Weighted Average Interest Rate | 1.38% | 1.35% |
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 | $ 99,791 | $ 76,148 |
Weighted Average Remaining Maturity | 18 days | 20 days |
Weighted Average Interest Rate | 2.24% | 2.38% |
Linked and Non-linked Transactions [Member] | CRE - Term Repurchase Facility [Member] | Deutsche Bank Securities, Inc [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 | $ 25,349 | $ 6,902 |
Weighted Average Remaining Maturity | 62 days | 183 days |
Weighted Average Interest Rate | 2.75% | 2.75% |
Linked and Non-linked Transactions [Member] | Repurchase Agreements [Member] | Wells Fargo Securities, LLC [Member] | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 13,236 | $ 2,127 |
Weighted Average Remaining Maturity | 11 days | 9 days |
Weighted Average Interest Rate | 1.64% | 1.66% |
Linked and Non-linked Transactions [Member] | Repurchase Agreements [Member] | Deutsche Bank Securities, Inc [Member] | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 22,784 | $ 11,810 |
Weighted Average Remaining Maturity | 24 days | 20 days |
Weighted Average Interest Rate | 1.72% | 1.62% |
Linked and Non-linked Transactions [Member] | Repurchase Agreements [Member] | New Century Bank [Member] | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 6,537 | $ 853 |
Weighted Average Remaining Maturity | 61 days | 242 days |
Weighted Average Interest Rate | 2.73% | 2.82% |
BORROWINGS (Narrative) Resident
BORROWINGS (Narrative) Residential Investments and Mortgage Financing (Details) - Wells Fargo Bank, National Association [Member] - Linked and Non-linked Transactions [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jan. 31, 2015 | |
RMBS - Term Repurchase Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maximum amount of facility | $ 110,000,000 | |
Debt instrument, interest rate, stated percentage rate range, maximum | 1.45% | |
Jumbo Loans - Term Repurchase Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maximum amount of facility | $ 165,000,000 | |
Debt instrument, interest rate, stated percentage rate range, maximum | 3.00% |
BORROWINGS (Narrative)-Senior S
BORROWINGS (Narrative)-Senior Secured Revolving Credit Facility (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Apr. 10, 2015 | Jun. 30, 2015 | Jun. 29, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Feb. 18, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Sep. 18, 2014 |
Debt Instrument [Line Items] | |||||||||||||
Interest income − other | $ 1,119 | $ 982 | $ 1,951 | $ 3,834 | |||||||||
Principal Outstanding | $ 1,853,054 | 1,853,054 | $ 1,853,054 | 1,853,054 | $ 1,734,901 | ||||||||
Northport LLC [Member] | Revolving Credit Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum amount of facility | $ 110,000 | ||||||||||||
Revolving Credit Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal Outstanding | $ 113,500 | ||||||||||||
Revolving Credit Facility [Member] | Northport LLC [Member] | Revolving Credit Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum amount of facility | 225,000 | 225,000 | 225,000 | 225,000 | |||||||||
Principal Outstanding | 151,000 | 151,000 | 151,000 | 151,000 | |||||||||
Line of credit facility, increase borrowing capacity | $ 85,000 | 85,000 | 85,000 | 85,000 | |||||||||
Line of credit facility, maximum borrowing capacity, effective commitment | $ 140,000 | $ 125,000 | |||||||||||
Northport LLC [Member] | Revolving Credit Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 25.00% | ||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 74,000 | 74,000 | $ 74,000 | $ 74,000 | |||||||||
Northport LLC [Member] | London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 2.75% | ||||||||||||
Northport LLC [Member] | Prime Rate [Member] | Revolving Credit Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 3.25% | ||||||||||||
Northport LLC [Member] | Base Rate [Member] | Revolving Credit Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 1.75% | ||||||||||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 0.25% | ||||||||||||
Minimum [Member] | Northport LLC [Member] | Revolving Credit Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of Credit Facility, Commitment Fee Percentage, Ramp Up Period | 0.375% | ||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage, Ramp Up Period | 35.00% | ||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 35.00% | ||||||||||||
Maximum [Member] | Northport LLC [Member] | Revolving Credit Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
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% | ||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 35.00% | ||||||||||||
Line of Credit Facility, Commitment Fee Percentage | 1.00% | ||||||||||||
Mezzanine Loans [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest income − other | $ 3,000 | $ 300,000 |
BORROWINGS (Contractual Commitm
BORROWINGS (Contractual Commitments) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Total | $ 1,827,461 | ||
2,015 | 377,563 | ||
2,016 | 0 | ||
2,017 | 0 | ||
2,018 | 256,747 | ||
2019 and Thereafter | 1,193,151 | ||
Accrued interest expense | [1] | 5,467 | $ 2,123 |
Collateralized Debt Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Total | 391,312 | ||
2,015 | 159 | ||
2,016 | 0 | ||
2,017 | 0 | ||
2,018 | 0 | ||
2019 and Thereafter | 391,153 | ||
CRE - Term Repurchase Facility [Member] | |||
Debt Instrument [Line Items] | |||
Total | 655,860 | ||
2,015 | 0 | ||
2,016 | 0 | ||
2,017 | 0 | ||
2,018 | 0 | ||
2019 and Thereafter | 655,860 | ||
Accrued interest expense | 187 | $ 198 | |
Repurchase Agreements Debt [Member] | |||
Debt Instrument [Line Items] | |||
Total | 377,404 | ||
2,015 | 377,404 | ||
2,016 | 0 | ||
2,017 | 0 | ||
2,018 | 0 | ||
2019 and Thereafter | 0 | ||
Unsecured Junior Subordinated Debentures | |||
Debt Instrument [Line Items] | |||
Total | 51,308 | ||
2,015 | 0 | ||
2,016 | 0 | ||
2,017 | 0 | ||
2,018 | 0 | ||
2019 and Thereafter | 51,308 | ||
Convertible Debt [Member] | Six Percent Convertible Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Total | 109,238 | ||
2,015 | 0 | ||
2,016 | 0 | ||
2,017 | 0 | ||
2,018 | 109,238 | ||
2019 and Thereafter | 0 | ||
Convertible Debt [Member] | Eight Percent Convertible Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Total | 94,830 | ||
2,015 | 0 | ||
2,016 | 0 | ||
2,017 | 0 | ||
2,018 | 0 | ||
2019 and Thereafter | 94,830 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Total | 147,509 | ||
2,015 | 0 | ||
2,016 | 0 | ||
2,017 | 0 | ||
2,018 | 147,509 | ||
2019 and Thereafter | $ 0 | ||
[1] | June 30, 2015 December 31, 2014Liabilities of consolidated VIEs included in the total liabilities above: Borrowings $1,047,172 $1,046,494 Accrued interest expense852 1,000 Derivatives, at fair value5,946 8,439Unsettled loan purchases(529) (529) Accounts payable and other liabilities190 (386) Total liabilities of consolidated VIEs$1,053,631 $1,055,018 |
SHARE ISSUANCE AND REPURCHASE93
SHARE ISSUANCE AND REPURCHASE (Details) - $ / shares | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Preferred Shares - Series A | ||||
Class of Stock [Line Items] | ||||
Stock issued during period, shares, new issues | 0 | |||
Stock issued during period, weighted average offering price per share, new issues | $ 24.05 | $ 0 | ||
Preferred stock, shares outstanding (in shares) | 1,069,016 | 1,069,016 | 1,069,016 | |
Preferred stock, coupon authorized (in hundredths) | 8.50% | |||
Preferred Shares - Series B | ||||
Class of Stock [Line Items] | ||||
Stock issued during period, shares, new issues | 139,333 | |||
Stock issued during period, weighted average offering price per share, new issues | 23.81 | $ 22.34 | ||
Preferred stock, shares outstanding (in shares) | 5,740,479 | 5,740,479 | 5,601,146 | |
Preferred stock, coupon authorized (in hundredths) | 8.25% | |||
Preferred Shares - Series C | ||||
Class of Stock [Line Items] | ||||
Stock issued during period, shares, new issues | 0 | |||
Stock issued during period, weighted average offering price per share, new issues | $ 25 | $ 0 | ||
Preferred stock, shares outstanding (in shares) | 4,800,000 | 4,800,000 | 4,800,000 | |
Preferred stock, coupon authorized (in hundredths) | 8.625% |
SHARE ISSUANCE AND REPURCHASE94
SHARE ISSUANCE AND REPURCHASE (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Mar. 21, 2013 | |
Class of Stock [Line Items] | ||||
Shares issued from dividend reinvestment plan (in shares) | 18,000 | 41,000 | ||
Proceeds from dividend reinvestment plan | $ 81 | $ 187 | ||
Preferred Shares - Series A | ||||
Class of Stock [Line Items] | ||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | $ 25 | |
Preferred Shares - Series B | ||||
Class of Stock [Line Items] | ||||
Preferred stock, liquidation preference (in dollars per share) | 25 | 25 | 25 | |
Preferred Shares - Series C | ||||
Class of Stock [Line Items] | ||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | $ 25 | |
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 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) $ in Thousands | Sep. 24, 2014shares | Mar. 30, 2014USD ($)shares | Oct. 31, 2013USD ($) | Jun. 30, 2015USD ($)shares | Jun. 30, 2014USD ($)shares | Jun. 30, 2015USD ($)Directorshares | Jun. 30, 2014USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued pursuant to the Management agreement (in shares) | shares | 0 | 0 | 0 | 0 | |||
Issuance of restricted stock | $ 1,158 | $ 646 | |||||
Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of non employee directors granted shares (directors) | Director | 7 | ||||||
Estimated fair value of shares granted | $ 5,700 | 3,700 | |||||
Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Contractual Term | 3 years | ||||||
Loan Origination Performance Plan [Member] | Common Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | shares | 70,728 | ||||||
Share grants on achievement of performance threshold (in shares) | shares | 35,364 | ||||||
Dividends payable on performance shares granted and earned | $ 21 | ||||||
Equity Compensation Expense [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated Share-based Compensation Expense | $ 184 | $ 163 | $ 350 | 323 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 4,900 | $ 4,900 | |||||
Weighted Average Remaining Contractual Term (in years) | 2 years 1 month 28 days | ||||||
General and Administrative Expense [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated Share-based Compensation Expense | 43 | 52 | $ 86 | 104 | |||
Primary Capital Advisors LLC [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 7,600 | ||||||
Issuance of restricted stock | $ 800 | ||||||
Non Employee Directors [Member] | Equity Compensation Expense [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated Share-based Compensation Expense | $ 64 | $ 64 | $ 129 | $ 128 | |||
Vested [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted Average Remaining Contractual Term (in years) | 9 months 18 days |
SHARE-BASED COMPENSATION (Restr
SHARE-BASED COMPENSATION (Restricted Stock Activity) (Details) - 6 months ended Jun. 30, 2015 - shares | Total |
February 3, 2015 | 2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | |
Restricted common stock transactions [Roll Forward] | |
Shares | 7,276 |
Vesting/Year | 100.00% |
February 5, 2015 | 2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | |
Restricted common stock transactions [Roll Forward] | |
Shares | 966,095 |
Vesting/Year | 33.30% |
February 5, 2015 | 2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | |
Restricted common stock transactions [Roll Forward] | |
Shares | 115,271 |
Vesting/Year | 33.30% |
March 9, 2015 | 2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | |
Restricted common stock transactions [Roll Forward] | |
Shares | 32,186 |
Vesting/Year | 100.00% |
March 12, 2015 | 2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | |
Restricted common stock transactions [Roll Forward] | |
Shares | 7,625 |
Vesting/Year | 100.00% |
March 31, 2015 | 2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | |
Restricted common stock transactions [Roll Forward] | |
Shares | 35,364 |
Vesting/Year | 100.00% |
June 8, 2015 | 2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | |
Restricted common stock transactions [Roll Forward] | |
Shares | 8,495 |
Vesting/Year | 100.00% |
Non Employee Directors [Member] | |
Restricted common stock transactions [Roll Forward] | |
Unvested shares, beginning of period (in shares) | 49,203 |
Issued (shares) | 55,582 |
Vested (shares) | (43,718) |
Forfeited (shares) | 0 |
Unvested shares, end of period (in shares) | 61,067 |
Non-Employees [Member] | |
Restricted common stock transactions [Roll Forward] | |
Unvested shares, beginning of period (in shares) | 1,812,853 |
Issued (shares) | 1,001,459 |
Vested (shares) | (362,503) |
Forfeited (shares) | (13,211) |
Unvested shares, end of period (in shares) | 2,438,598 |
Employees [Member] | |
Restricted common stock transactions [Roll Forward] | |
Unvested shares, beginning of period (in shares) | 161,583 |
Issued (shares) | 115,271 |
Vested (shares) | (7,439) |
Forfeited (shares) | (1,271) |
Unvested shares, end of period (in shares) | 268,144 |
Manager and Non Employees [Member] | |
Restricted common stock transactions [Roll Forward] | |
Unvested shares, beginning of period (in shares) | 2,023,639 |
Issued (shares) | 1,172,312 |
Vested (shares) | (413,660) |
Forfeited (shares) | (14,482) |
Unvested shares, end of period (in shares) | 2,767,809 |
SHARE-BASED COMPENSATION (Statu
SHARE-BASED COMPENSATION (Status of Vested Stock Options) (Details) - Jun. 30, 2015 - Vested [Member] - USD ($) $ / shares in Units, $ in Thousands | Total |
Stock options outstanding [Roll Forward] | |
Outstanding beginning of period (in shares) | 640,666 |
Vested (in shares) | 0 |
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) | $ 14.45 |
Vested (in dollars per share) | 0 |
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 |
SHARE-BASED COMPENSATION (Compo
SHARE-BASED COMPENSATION (Components of Equity Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total equity compensation expense | $ 791 | $ 2,032 | $ 1,786 | $ 3,699 |
Manager and Non Employees [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total equity compensation expense | 0 | 0 | 0 | (2) |
Manager and Non Employees [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total equity compensation expense | 543 | 1,784 | 1,307 | 3,213 |
Employees [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total equity compensation expense | 184 | 185 | 350 | 360 |
Non Employee Directors [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total equity compensation expense | $ 64 | $ 63 | $ 129 | $ 128 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Dilutive shares excluded from calculation of diluted net income per share | 36,011,413 | 17,907,939 | 17,907,939 | |
Basic: | ||||
Net income (loss) allocable to common shares | $ (31,011) | $ 14,677 | $ (21,609) | $ 29,793 |
Weighted average number of shares outstanding | 131,409,263 | 126,952,493 | 131,333,704 | 126,288,516 |
Basic net income per share (in dollars per share) | $ (0.24) | $ 0.12 | $ (0.16) | $ 0.24 |
Diluted: | ||||
Net income (loss) allocable to common shares | $ (31,011) | $ 14,677 | $ (21,609) | $ 29,793 |
Weighted average number of shares outstanding | 131,409,263 | 126,952,493 | 131,333,704 | 126,288,516 |
Additional shares due to assumed conversion of dilutive instruments | 0 | 1,190,144 | 0 | 1,120,611 |
Adjusted weighted-average number of common shares outstanding | 131,409,263 | 128,142,637 | 131,333,704 | 127,409,127 |
Diluted net income per share (in dollars per share) | $ (0.24) | $ 0.11 | $ (0.16) | $ 0.23 |
Restricted Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Dilutive shares excluded from calculation of diluted net income per share | 1,399,519 | 1,223,513 |
ACCUMULATED OTHER COMPREHENS100
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
January 1, 2015 | $ 6,043 | |||
Unrealized gains on derivatives, net | $ 1,237 | $ 803 | 2,379 | $ 1,190 |
Unrealized gains (losses) on available-for-sale securities, net | (1,699) | 264 | 1,424 | (1,490) |
Foreign currency translation adjustment | 0 | 16 | 429 | (180) |
Other comprehensive gain (loss) before reclassifications | 4,232 | |||
Reclassification adjustments associated with unrealized gains (losses) from interest rate hedges included in net income | 36 | 72 | 126 | 142 |
Reclassification adjustment for realized (gains) losses on available-for-sale securities included in net income | (4,076) | 2,722 | (10,334) | 4,187 |
Amounts reclassified from accumulated other comprehensive income | (10,208) | |||
Net current-period other comprehensive income | (5,976) | |||
Unrealized (gains) losses on available-for-sale securities allocable to non-controlling interests | 470 | $ 0 | 1,277 | $ 0 |
June 30, 2015 | 1,344 | 1,344 | ||
Net unrealized (loss) gain on derivatives [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
January 1, 2015 | (8,967) | |||
Unrealized gains on derivatives, net | 2,379 | |||
Reclassification adjustments associated with unrealized gains (losses) from interest rate hedges included in net income | 126 | |||
Net current-period other comprehensive income | 2,505 | |||
Unrealized (gains) losses on available-for-sale securities allocable to non-controlling interests | 0 | |||
June 30, 2015 | (6,462) | (6,462) | ||
Net unrealized (loss) gain on securities, available-for-sale [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
January 1, 2015 | 15,422 | |||
Unrealized gains (losses) on available-for-sale securities, net | 1,424 | |||
Reclassification adjustment for realized (gains) losses on available-for-sale securities included in net income | (10,334) | |||
Net current-period other comprehensive income | (8,910) | |||
Unrealized (gains) losses on available-for-sale securities allocable to non-controlling interests | 1,277 | |||
June 30, 2015 | 7,789 | 7,789 | ||
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
January 1, 2015 | (412) | |||
Foreign currency translation adjustment | 429 | |||
Net current-period other comprehensive income | 429 | |||
Unrealized (gains) losses on available-for-sale securities allocable to non-controlling interests | 0 | |||
June 30, 2015 | $ 17 | $ 17 |
RELATED PARTY TRANSACTIONS (Rel
RELATED PARTY TRANSACTIONS (Relationship with Resource America) (Details) - Variable Interest Entity, Classification [Domain] | Nov. 07, 2013USD ($)shares | Sep. 30, 2014USD ($) | Jun. 30, 2015USD ($)Transactionshares | Dec. 31, 2014USD ($)Transaction | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)Transactionshares | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($)Transaction | Apr. 30, 2015USD ($) | Nov. 16, 2011USD ($) | Jun. 17, 2011USD ($) | Nov. 24, 2010USD ($) | |||||
Related Party Transaction [Line Items] | |||||||||||||||||
Provision (recovery) for loan losses | $ 42,800,000 | $ 1,804,000 | |||||||||||||||
Direct financing leases | [1] | $ 1,590,000 | $ 2,109,000 | 1,590,000 | 2,109,000 | ||||||||||||
Base management fees paid by the Company | 3,500,000 | $ 3,314,000 | 7,060,000 | $ 6,394,000 | |||||||||||||
General and administrative - Corporate | 4,067,000 | 4,750,000 | 8,850,000 | 7,589,000 | |||||||||||||
Sale (purchase) of securities, trading, net | (9,541,000) | 429,000 | |||||||||||||||
Investment securities, trading | [1] | 32,680,000 | 20,786,000 | 32,680,000 | 20,786,000 | ||||||||||||
Equity in Earnings of Unconsolidated subsidiaries | 60,000 | 1,335,000 | 173,000 | 2,836,000 | |||||||||||||
Investments in unconsolidated entities | $ 56,150,000 | [1] | 59,827,000 | [1] | $ 56,150,000 | [1] | 59,827,000 | [1] | $ 750,000 | ||||||||
Resource America [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Loan origination fee | 2.00% | ||||||||||||||||
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) | shares | 2,861,592 | 2,861,592 | |||||||||||||||
Ownership percentage (percent) | 2.10% | 2.10% | |||||||||||||||
Restricted stock options to purchase restricted shares in Company owned by a related party (shares) | shares | 2,166 | 2,166 | |||||||||||||||
Resource Capital Corp [Member] | Manager pursuant to the Management Agreement [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Base management fees paid by the Company | $ 3,400,000 | 3,200,000 | $ 6,800,000 | 6,100,000 | |||||||||||||
Incentive management fees | 0 | 1,900,000 | 0 | 0 | 0 | ||||||||||||
General and administrative - Corporate | 1,600,000 | 1,400,000 | 2,700,000 | 2,400,000 | |||||||||||||
Investment Maximum | $ 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 | 1,700,000 | 1,600,000 | 1,700,000 | 1,600,000 | |||||||||||||
Accrued base management fees | 1,100,000 | 1,200,000 | 1,100,000 | 1,200,000 | |||||||||||||
Expense reimbursement payable | $ 587,000 | $ 480,000 | $ 587,000 | $ 480,000 | |||||||||||||
Number of executed CDO transactions (transactions) | Transaction | 10 | 9 | 10 | 9 | |||||||||||||
Resource Capital Corp [Member] | Resource Capital Markets, Inc. [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Base management fees paid by the Company | $ 0 | $ 0 | |||||||||||||||
Sale (purchase) of securities, trading, net | (400,000) | ||||||||||||||||
Share of net profits as per the Investment Management Agreement | 0 | ||||||||||||||||
Investment securities, trading | 3,800,000 | $ 3,400,000 | 3,800,000 | $ 3,400,000 | |||||||||||||
Expense reimbursements | 65,000 | 51,000 | 97,000 | 126,000 | |||||||||||||
Total indebtedness | 185,000 | 121,000 | 185,000 | 121,000 | |||||||||||||
Elevation Home Loans, LLC [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Purchase of membership interests | $ 830,000 | ||||||||||||||||
Purchase of membership interests, number of shares of restricted Company common stock issued as consideration | shares | 136,659 | ||||||||||||||||
Investment in LCC Preferred Stock | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Equity in Earnings of Unconsolidated subsidiaries | 350,000 | (278,000) | 402,000 | (872,000) | |||||||||||||
Investments in unconsolidated entities | $ 39,819,000 | 39,416,000 | $ 39,819,000 | 39,416,000 | $ 36,300,000 | ||||||||||||
Pelium [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Ownership percentage (percent) | 80.40% | 69.90% | 69.90% | ||||||||||||||
Acquisition of membership interests | $ 17,500,000 | ||||||||||||||||
Contributions | $ 40,000,000 | ||||||||||||||||
Ownership interest | 10.00% | ||||||||||||||||
Ownership interest increase | 20.00% | 20.00% | |||||||||||||||
CVC Global Credit Opportunities Fund, LP [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Ownership percentage (percent) | 17.40% | 17.40% | |||||||||||||||
Equity in Earnings of Unconsolidated subsidiaries | $ 312,000 | $ 1,124,000 | $ 920,000 | $ 1,958,000 | |||||||||||||
Investments in unconsolidated entities | 14,129,000 | 18,209,000 | 14,129,000 | 18,209,000 | |||||||||||||
Commercial Real Estate Loans [Member] | Resource Real Estate [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Related party transaction, due from (to) related party | $ 150,000 | $ 100,000 | $ 150,000 | $ 100,000 | |||||||||||||
[1] | June 30, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$189 $25 Restricted cash43,954 121,247 Investment securities available-for-sale, pledged as collateral, at fair value84,858 119,203 Loans held for sale6,027 282Loans, pledged as collateral and net of allowances of $42.7 million and $3.3 million1,352,546 1,261,137 Interest receivable5,468 8,941 Prepaid expenses182 221 Principal paydown receivable— 25,767 Other assets9 (12) Total assets of consolidated VIEs$1,493,233 $1,536,811 |
RELATED PARTY TRANSACTIONS (102
RELATED PARTY TRANSACTIONS (Relationship with LEAF Financial) (Details) - Variable Interest Entity, Classification [Domain] - USD ($) | Jan. 11, 2013 | Feb. 15, 2012 | Sep. 03, 2011 | Mar. 05, 2010 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Mar. 05, 2011 | Apr. 30, 2015 | Nov. 16, 2011 | ||||
Related Party Transaction [Line Items] | ||||||||||||||||
Income (Loss) and Interest Expense from Equity Method Investments | $ 60,000 | $ 1,335,000 | $ 173,000 | $ 2,836,000 | ||||||||||||
Investments in unconsolidated entities | 56,150,000 | [1] | 56,150,000 | [1] | $ 59,827,000 | [1] | $ 750,000 | |||||||||
Provision (recovery) for loan losses | (42,800,000) | (1,804,000) | ||||||||||||||
Direct financing leases | [1] | 1,590,000 | $ 1,590,000 | 2,109,000 | ||||||||||||
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] | ||||||||||||||||
Maximum amount of facility | $ 8,000,000 | |||||||||||||||
Line of credit facility, term (in years) | 1 year | |||||||||||||||
Line of credit facility, interest rate during period (in hundredths) | 12.00% | 10.00% | ||||||||||||||
Line of credit facility, extension fee percentage (in hundredths) | 1.00% | 1.00% | 1.00% | |||||||||||||
Investment in LCC Preferred Stock | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Income (Loss) and Interest Expense from Equity Method Investments | 350,000 | $ (278,000) | $ 402,000 | $ (872,000) | ||||||||||||
Investments in unconsolidated entities | 39,819,000 | 39,819,000 | 39,416,000 | $ 36,300,000 | ||||||||||||
Loans Receivable - Related Party [Member] | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Provision (recovery) for loan losses | $ 28,000 | $ 216,000 | $ (1,297,000) | |||||||||||||
[1] | June 30, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$189 $25 Restricted cash43,954 121,247 Investment securities available-for-sale, pledged as collateral, at fair value84,858 119,203 Loans held for sale6,027 282Loans, pledged as collateral and net of allowances of $42.7 million and $3.3 million1,352,546 1,261,137 Interest receivable5,468 8,941 Prepaid expenses182 221 Principal paydown receivable— 25,767 Other assets9 (12) Total assets of consolidated VIEs$1,493,233 $1,536,811 |
RELATED PARTY TRANSACTIONS (103
RELATED PARTY TRANSACTIONS (Relationship with CVC Credit Partners, LLC) (Details) | Feb. 24, 2011USD ($) | Mar. 31, 2015USD ($) | May. 31, 2013 | Oct. 31, 2012 | Jun. 30, 2015USD ($)Entity | Jun. 30, 2014USD ($) | Jul. 31, 2013USD ($) | Jun. 30, 2015USD ($)Entity | Jun. 30, 2014USD ($) | Apr. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Nov. 16, 2011USD ($) | |||
Related Party Transaction [Line Items] | |||||||||||||||
Number of CLO issuers | Entity | 5 | 5 | |||||||||||||
Income (Loss) and Interest Expense from Equity Method Investments | $ 60,000 | $ 1,335,000 | $ 173,000 | $ 2,836,000 | |||||||||||
Investments in unconsolidated entities | 56,150,000 | [1] | 56,150,000 | [1] | $ 750,000 | $ 59,827,000 | [1] | ||||||||
Churchill Pacific Asset Management LLC [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Assets under management, carrying amount | $ 1,900,000,000 | $ 1,900,000,000 | |||||||||||||
CVC Credit Partners, LLC [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Asset management fees percentage (in hundredths) | 1.50% | 1.50% | |||||||||||||
Resource America [Member] | CVC Capital Partners [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Ownership percentage (percent) | 33.00% | 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% | 10.00% | |||||||||||||
Percentage of incentive fees the company is entitled to collect (in hundredths) | 50.00% | 50.00% | |||||||||||||
Subordinated fees received | $ 221,000 | 330,000 | $ 458,000 | 700,000 | |||||||||||
Whitney CLO I | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Ownership percentage in VIE | 68.30% | ||||||||||||||
Investment in LCC Preferred Stock | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Income (Loss) and Interest Expense from Equity Method Investments | 350,000 | (278,000) | 402,000 | (872,000) | |||||||||||
Investments in unconsolidated entities | $ 39,819,000 | $ 39,819,000 | 39,416,000 | $ 36,300,000 | |||||||||||
CVC Global Credit Opportunities Fund, LP [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Ownership percentage (percent) | 17.40% | 17.40% | |||||||||||||
Income (Loss) and Interest Expense from Equity Method Investments | $ 312,000 | $ 1,124,000 | $ 920,000 | $ 1,958,000 | |||||||||||
Proceeds from Divestiture of Businesses and Interests in Affiliates | $ 5,000,000 | ||||||||||||||
Investments in unconsolidated entities | $ 14,129,000 | $ 14,129,000 | $ 18,209,000 | ||||||||||||
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 | ||||||||||||||
[1] | June 30, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$189 $25 Restricted cash43,954 121,247 Investment securities available-for-sale, pledged as collateral, at fair value84,858 119,203 Loans held for sale6,027 282Loans, pledged as collateral and net of allowances of $42.7 million and $3.3 million1,352,546 1,261,137 Interest receivable5,468 8,941 Prepaid expenses182 221 Principal paydown receivable— 25,767 Other assets9 (12) Total assets of consolidated VIEs$1,493,233 $1,536,811 |
RELATED PARTY TRANSACTIONS (104
RELATED PARTY TRANSACTIONS (Relationship with Resource Real Estate) (Details) - USD ($) | Apr. 10, 2015 | Feb. 24, 2015 | Jul. 30, 2014 | Jul. 09, 2014 | May. 23, 2012 | Jun. 21, 2011 | Jan. 15, 2010 | Dec. 01, 2009 | Aug. 09, 2006 | Sep. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | May. 23, 2012 | Dec. 31, 2014 | Apr. 30, 2015 | |
Related Party Transaction [Line Items] | ||||||||||||||||||||
Direct financing leases | [1] | $ 1,590,000 | $ 2,109,000 | $ 1,590,000 | $ 2,109,000 | |||||||||||||||
Base management fees paid by the Company | 3,500,000 | $ 3,314,000 | 7,060,000 | $ 6,394,000 | ||||||||||||||||
Equity in Earnings of Unconsolidated subsidiaries | 60,000 | 1,335,000 | 173,000 | 2,836,000 | ||||||||||||||||
Loans receivable–related party | [1] | 0 | 558,000 | 0 | 558,000 | |||||||||||||||
Placement agent fee | $ 175,000 | $ 205,000 | ||||||||||||||||||
Resource America [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Payments to acquire additional interest in subsidiaries | $ 2,800,000 | |||||||||||||||||||
RREF 2006-1 | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Description of variable rate basis | LIBOR | |||||||||||||||||||
Basis spread on variable rate | 3.50% | |||||||||||||||||||
Variable rate basis, floor | 2.50% | |||||||||||||||||||
CVC Global Credit Opportunities Fund, LP [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Equity in Earnings of Unconsolidated subsidiaries | $ 312,000 | 1,124,000 | $ 920,000 | 1,958,000 | ||||||||||||||||
Ownership percentage (percent) | 17.40% | 17.40% | ||||||||||||||||||
Pelium [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Ownership percentage (percent) | 80.40% | 69.90% | 69.90% | |||||||||||||||||
Payments to acquire additional interest in subsidiaries | $ 2,500,000 | |||||||||||||||||||
Acquisition of membership interests | $ 17,500,000 | |||||||||||||||||||
Ownership interest | 10.00% | |||||||||||||||||||
Ownership interest increase | 20.00% | 20.00% | ||||||||||||||||||
Contributions | $ 40,000,000 | |||||||||||||||||||
RRE VIP Borrower, LLC | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Equity in Earnings of Unconsolidated subsidiaries | $ 0 | 870,000 | $ 46,000 | 1,736,000 | ||||||||||||||||
Equity method investments | 0 | 0 | ||||||||||||||||||
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 method investments | 975,000 | |||||||||||||||||||
Gain on Sale of Investments | 912,000 | |||||||||||||||||||
Ownership percentage (percent) | 10.00% | |||||||||||||||||||
Loans receivable - related party, principal payments | $ 7,000,000 | |||||||||||||||||||
Line of credit facility, interest rate during period (in hundredths) | 10.00% | |||||||||||||||||||
Origination fee with establishment of line of credit facility (in hundredths) | 1.00% | |||||||||||||||||||
Exit fee | $ 70,000 | |||||||||||||||||||
Varde Investment Partners, L.P | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Equity in Earnings of Unconsolidated subsidiaries | $ 0 | (19,000) | $ 0 | (20,000) | ||||||||||||||||
Ownership percentage (percent) | 7.50% | 7.50% | ||||||||||||||||||
RCC Residential, Inc. [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Ownership percentage (percent) | 63.80% | |||||||||||||||||||
Acquisition of membership interests | $ 15,000,000 | |||||||||||||||||||
Manager pursuant to the Management Agreement [Member] | Resource Capital Corp [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Base management fees paid by the Company | $ 3,400,000 | 3,200,000 | $ 6,800,000 | 6,100,000 | ||||||||||||||||
Incentive management fees | $ 0 | 1,900,000 | 0 | $ 0 | 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] | 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 | 35,000 | $ 0 | 69,000 | |||||||||||||||||
Resource Real Estate Management, LLC [Member] | RRE VIP Borrower, LLC | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Asset management fees percentage (in hundredths) | 1.00% | 1.00% | ||||||||||||||||||
Base management fees paid by the Company | $ 0 | $ 1,000 | $ 6,000 | |||||||||||||||||
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 Real Estate Management, LLC [Member] | Varde Investment Partners, L.P | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Base management fees paid by the Company | $ 0 | |||||||||||||||||||
Resource Capital Partners Inc [Member] | Resource Capital Corp [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Amount of loan to related party | $ 2,000,000 | |||||||||||||||||||
Debt instrument, interest rate, stated percentage | 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 | $ 558,000 | |||||||||||||||||||
Resource Real Estate Opportunity Fund, L.P. [Member] | Resource America [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Ownership percentage (percent) | 5.00% | |||||||||||||||||||
RCC CRE Notes 2013 | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Closing transaction amount | $ 307,800,000 | |||||||||||||||||||
Special servicing fee rate | 0.25% | |||||||||||||||||||
RCC 2014-CRE2 | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Closing transaction amount | $ 353,900,000 | |||||||||||||||||||
Special servicing fee rate | 0.25% | |||||||||||||||||||
RCC 2015-CRE3 | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Closing transaction amount | $ 346,200,000 | |||||||||||||||||||
Special servicing fee rate | 0.25% | |||||||||||||||||||
Placement agent fee | $ 100,000 | |||||||||||||||||||
Commercial Real Estate Loans [Member] | Resource Real Estate [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Related party transaction, due from (to) related party | $ 150,000 | $ 100,000 | $ 150,000 | $ 100,000 | ||||||||||||||||
Whispertree Apartments [Member] | Resource Real Estate Management, LLC [Member] | RCC Real Estate [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Base management fees paid by the Company | $ 0 | |||||||||||||||||||
RCM Global, LLC | RCC Residential, Inc. [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Gain on Sale of Investments | $ 5,600,000 | |||||||||||||||||||
Ownership percentage in VIE | 63.80% | 45.90% | ||||||||||||||||||
Bridge Loan One [Member] | Bridge Loan [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Basis spread on variable rate | 5.75% | |||||||||||||||||||
Bridge Loan | $ 2,500,000 | |||||||||||||||||||
Bridge Loan Two [Member] | Bridge Loan [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Bridge Loan | $ 3,300,000 | |||||||||||||||||||
Minimum [Member] | RRE VIP Borrower, LLC | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Ownership percentage (percent) | 3.00% | 3.00% | ||||||||||||||||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Basis spread on variable rate | 0.25% | |||||||||||||||||||
[1] | June 30, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$189 $25 Restricted cash43,954 121,247 Investment securities available-for-sale, pledged as collateral, at fair value84,858 119,203 Loans held for sale6,027 282Loans, pledged as collateral and net of allowances of $42.7 million and $3.3 million1,352,546 1,261,137 Interest receivable5,468 8,941 Prepaid expenses182 221 Principal paydown receivable— 25,767 Other assets9 (12) Total assets of consolidated VIEs$1,493,233 $1,536,811 |
RELATED PARTY TRANSACTIONS (105
RELATED PARTY TRANSACTIONS (Relationship with Law Firm) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Resource Capital Corp [Member] | Ledgewood [Member] | ||||
Related Party Transaction [Line Items] | ||||
Legal fees | $ 61 | $ 120 | $ 334 | $ 158 |
DISTRIBUTIONS Dividends Declare
DISTRIBUTIONS Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | |
Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Total Dividend Paid | $ 21,426 | $ 21,444 | $ 26,563 | $ 26,629 | $ 26,179 | $ 25,921 |
Dividend Per Share | $ 0.16 | $ 0.16 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 |
Preferred Shares - Series A | ||||||
Class of Stock [Line Items] | ||||||
Total Dividend Paid | $ 568 | $ 568 | ||||
Dividend Per Share | $ 0.53125 | $ 0.53125 | ||||
Preferred Shares - Series B | ||||||
Class of Stock [Line Items] | ||||||
Total Dividend Paid | $ 2,960 | $ 2,960 | ||||
Dividend Per Share | $ 0.515625 | $ 0.515625 | ||||
Preferred Shares - Series A [Member] | ||||||
Class of Stock [Line Items] | ||||||
Total Dividend Paid | $ 568 | $ 537 | $ 537 | $ 463 | ||
Dividend Per Share | $ 0.53125 | $ 0.53125 | $ 0.53125 | $ 0.53125 | ||
Preferred Shares - Series B [Member] | ||||||
Class of Stock [Line Items] | ||||||
Total Dividend Paid | $ 2,888 | $ 2,430 | $ 2,378 | $ 2,057 | ||
Dividend Per Share | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | ||
Series C Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Total Dividend Paid | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 1,437 | |
Dividend Per Share | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.299479 |
DISTRIBUTIONS Narrative (Detail
DISTRIBUTIONS Narrative (Details) | 6 Months Ended |
Jun. 30, 2015 | |
DISTRIBUTIONS [Abstract] | |
REIT required taxable income distribution, percentage | 90.00% |
REIT taxable income distribution for exempt federal income taxes, Percentage | 100.00% |
FAIR VALUE OF FINANCIAL INST108
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale Securities | $ 253,428 | $ 253,428 | $ 275,720 | ||
Provision for (recovery of) loan losses | 38,810 | $ 782 | 42,800 | $ (3,178) | |
Principal Outstanding | 1,853,054 | 1,853,054 | 1,734,901 | ||
Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers into Level 3 | 3,872 | ||||
Recurring Basis [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale Securities | 253,428 | 253,428 | 275,720 | ||
Recurring Basis [Member] | Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale Securities | 4,865 | 4,865 | 33,158 | ||
Recurring Basis [Member] | Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale Securities | 248,563 | 248,563 | 242,562 | ||
Nonrecurring [Member] | Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Provision for (recovery of) loan losses | 38,900 | 440 | 41,400 | 440 | |
CMBS Including Linked Transactions [Member] | Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers into Level 3 | 0 | ||||
Moselle CLO S.A. Securitized Borrowings [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Principal Outstanding | 159 | 159 | $ 5,619 | ||
Assets Held-for-sale [Member] | Nonrecurring [Member] | Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Provision for (recovery of) loan losses | $ 85 | $ 60 | $ 806 | $ 60 |
FAIR VALUE OF FINANCIAL INST109
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Assets: | |||
Investment securities, trading | [1] | $ 32,680 | $ 20,786 |
Investment securities available-for-sale | 253,428 | 275,720 | |
CMBS - linked transactions | [1] | 0 | 15,367 |
Derivatives | [1] | 4,289 | 5,304 |
Recurring Basis [Member] | |||
Assets: | |||
Investment securities, trading | 32,680 | 20,786 | |
Investment securities available-for-sale | 253,428 | 275,720 | |
Loans held for sale | 105,094 | ||
CMBS - linked transactions | 15,367 | ||
Derivatives | 4,289 | 5,304 | |
Total assets at fair value | 395,491 | 317,177 | |
Liabilities: | |||
Moselle CLO Notes | 68,940 | ||
Derivatives | (6,991) | 8,476 | |
Total liabilities at fair value | (6,991) | 77,416 | |
Recurring Basis [Member] | Level 1 [Member] | |||
Assets: | |||
Investment securities, trading | 0 | 0 | |
Investment securities available-for-sale | 0 | 0 | |
Loans held for sale | 0 | ||
CMBS - linked transactions | 0 | ||
Derivatives | 0 | 3,429 | |
Total assets at fair value | 0 | 3,429 | |
Liabilities: | |||
Moselle CLO Notes | 0 | ||
Derivatives | 0 | 0 | |
Total liabilities at fair value | 0 | 0 | |
Recurring Basis [Member] | Level 2 [Member] | |||
Assets: | |||
Investment securities, trading | 0 | 0 | |
Investment securities available-for-sale | 4,865 | 33,158 | |
Loans held for sale | 64,751 | ||
CMBS - linked transactions | 0 | ||
Derivatives | 1,275 | 7 | |
Total assets at fair value | 70,891 | 33,165 | |
Liabilities: | |||
Moselle CLO Notes | 0 | ||
Derivatives | (355) | 0 | |
Total liabilities at fair value | (355) | 0 | |
Recurring Basis [Member] | Level 3 [Member] | |||
Assets: | |||
Investment securities, trading | 32,680 | 20,786 | |
Investment securities available-for-sale | 248,563 | 242,562 | |
Loans held for sale | 40,343 | ||
CMBS - linked transactions | 15,367 | ||
Derivatives | 3,014 | 1,868 | |
Total assets at fair value | 324,600 | 280,583 | |
Liabilities: | |||
Moselle CLO Notes | 68,940 | ||
Derivatives | (6,636) | 8,476 | |
Total liabilities at fair value | $ (6,636) | $ 77,416 | |
[1] | June 30, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$189 $25 Restricted cash43,954 121,247 Investment securities available-for-sale, pledged as collateral, at fair value84,858 119,203 Loans held for sale6,027 282Loans, pledged as collateral and net of allowances of $42.7 million and $3.3 million1,352,546 1,261,137 Interest receivable5,468 8,941 Prepaid expenses182 221 Principal paydown receivable— 25,767 Other assets9 (12) Total assets of consolidated VIEs$1,493,233 $1,536,811 |
FAIR VALUE OF FINANCIAL INST110
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets Measured on Recurring Basis) (Details) - Level 3 [Member] $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 363,963 |
Total gains or losses (realized or unrealized): | |
Included in earnings | 24,773 |
Unlinked transactions | 33,239 |
Purchases/Originations | 117,350 |
Sales | (137,202) |
Paydowns | (45,501) |
Issuances | 0 |
Settlements | (29,281) |
Included in OCI | (6,612) |
Transfers into Level 3 | 3,872 |
Ending balance | 324,601 |
CMBS Including Linked Transactions [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 185,772 |
Total gains or losses (realized or unrealized): | |
Included in earnings | 849 |
Unlinked transactions | 33,239 |
Purchases/Originations | $ 7,219 |
Sales | |
Paydowns | $ (41,706) |
Issuances | 0 |
Settlements | 0 |
Included in OCI | (51) |
Transfers into Level 3 | 0 |
Ending balance | 185,322 |
ABS [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 72,157 |
Total gains or losses (realized or unrealized): | |
Included in earnings | 4,226 |
Unlinked transactions | 0 |
Purchases/Originations | 10,350 |
Sales | (5,594) |
Paydowns | (3,208) |
Issuances | 0 |
Settlements | (11,216) |
Included in OCI | (7,345) |
Transfers into Level 3 | 3,872 |
Ending balance | 63,242 |
RMBS [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 20,786 |
Total gains or losses (realized or unrealized): | |
Included in earnings | 1,673 |
Unlinked transactions | 0 |
Purchases/Originations | 19,264 |
Sales | (9,339) |
Paydowns | (488) |
Issuances | 0 |
Settlements | 0 |
Included in OCI | 784 |
Transfers into Level 3 | 0 |
Ending balance | 32,680 |
Structured Finance [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 898 |
Total gains or losses (realized or unrealized): | |
Included in earnings | 76 |
Unlinked transactions | 0 |
Purchases/Originations | 0 |
Sales | 0 |
Paydowns | 0 |
Issuances | 0 |
Settlements | 0 |
Included in OCI | 0 |
Transfers into Level 3 | 0 |
Ending balance | 974 |
Interest rate lock agreements [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 970 |
Total gains or losses (realized or unrealized): | |
Included in earnings | 19,135 |
Unlinked transactions | 0 |
Purchases/Originations | 0 |
Sales | 0 |
Paydowns | 0 |
Issuances | 0 |
Settlements | (18,065) |
Included in OCI | 0 |
Transfers into Level 3 | 0 |
Ending balance | 2,040 |
Held for Sale [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 83,380 |
Total gains or losses (realized or unrealized): | |
Included in earnings | (1,186) |
Unlinked transactions | 0 |
Purchases/Originations | 80,517 |
Sales | (122,269) |
Paydowns | (99) |
Issuances | 0 |
Settlements | 0 |
Included in OCI | 0 |
Transfers into Level 3 | 0 |
Ending balance | $ 40,343 |
FAIR VALUE OF FINANCIAL INST111
FAIR VALUE OF FINANCIAL INSTRUMENTS (Liabilities Measured on Recurring Basis Level 3 Inputs) (Details) - Interest Rate Swap [Member] $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance, January 1, 2015 | $ 8,680 |
Unrealized gains - included in accumulated other comprehensive income | (2,237) |
Included in earnings | (134) |
Ending balance, June 30, 2015 | $ 6,309 |
FAIR VALUE OF FINANCIAL INST112
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities, Quantitative Information) (Details) - Nonrecurring [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale | $ 6,028 | $ 36,956 |
Impaired loans, fair value | 2,223 | 139,489 |
Total assets at fair value | 8,251 | 176,445 |
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, fair value | 0 | 0 |
Total assets at fair value | 0 | 0 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale | 6,028 | 36,956 |
Impaired loans, fair value | 2,223 | 1,678 |
Total assets at fair value | 8,251 | 38,634 |
Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale | 0 | 0 |
Impaired loans, fair value | 0 | 137,811 |
Total assets at fair value | $ 0 | $ 137,811 |
FAIR VALUE OF FINANCIAL INST113
FAIR VALUE OF FINANCIAL INSTRUMENTS (Significant Observable Outputs) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assumptions, Market Capitalization | $ 143,700 | |
Fair Value Assumptions, Expected Volatility Rate | 50.00% | |
Discounted Cash Flow Technique [Member] | Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets at fair value | $ 6,300 | |
Interest Rate Swap [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Average fixed interest rate (in hundredths) | 5.12% | |
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) | 4.55% |
FAIR VALUE OF FINANCIAL INST114
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held-for-investment | [1] | $ 2,042,885 | $ 1,925,980 |
Loans receivable-related party | [1] | 0 | 558 |
Senior secured revolving credit agreement | 25,593 | 18,030 | |
Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held-for-investment | 2,042,885 | 1,925,980 | |
Loans receivable-related party | 558 | ||
CDO notes | 1,047,172 | 1,046,493 | |
Junior subordinated notes | 51,308 | 51,205 | |
Convertible notes | 204,068 | 108,374 | |
Repurchase agreements | 377,404 | 399,662 | |
Senior secured revolving credit agreement | 147,509 | 111,137 | |
Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held-for-investment | 2,030,262 | 1,909,019 | |
Loans receivable-related party | 558 | ||
CDO notes | 929,970 | 975,762 | |
Junior subordinated notes | 17,802 | 17,699 | |
Convertible notes | 204,068 | 108,374 | |
Repurchase agreements | 377,404 | 399,662 | |
Senior secured revolving credit agreement | 147,509 | 111,137 | |
Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held-for-investment | 0 | 0 | |
Loans receivable-related party | 0 | ||
CDO notes | 0 | 0 | |
Junior subordinated notes | 0 | 0 | |
Convertible notes | 0 | 0 | |
Repurchase agreements | 0 | 0 | |
Senior secured revolving credit agreement | 0 | 0 | |
Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held-for-investment | 508,407 | 570,071 | |
Loans receivable-related party | 0 | ||
CDO notes | 0 | 0 | |
Junior subordinated notes | 0 | 0 | |
Convertible notes | 0 | 0 | |
Repurchase agreements | 0 | 0 | |
Senior secured revolving credit agreement | 0 | 0 | |
Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held-for-investment | 1,521,855 | 1,338,948 | |
Loans receivable-related party | 558 | ||
CDO notes | 929,970 | 975,762 | |
Junior subordinated notes | 17,802 | 17,699 | |
Convertible notes | 204,068 | 108,374 | |
Repurchase agreements | 377,404 | 399,662 | |
Senior secured revolving credit agreement | $ 147,509 | $ 111,137 | |
[1] | June 30, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$189 $25 Restricted cash43,954 121,247 Investment securities available-for-sale, pledged as collateral, at fair value84,858 119,203 Loans held for sale6,027 282Loans, pledged as collateral and net of allowances of $42.7 million and $3.3 million1,352,546 1,261,137 Interest receivable5,468 8,941 Prepaid expenses182 221 Principal paydown receivable— 25,767 Other assets9 (12) Total assets of consolidated VIEs$1,493,233 $1,536,811 |
MARKET RISK AND DERIVATIVE I115
MARKET RISK AND DERIVATIVE INSTRUMENTS (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Jun. 30, 2007USD ($) | Jun. 30, 2015USD ($)Derivative | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)Derivative | Jun. 30, 2014USD ($) | Sep. 30, 2008USD ($) | Dec. 31, 2014USD ($)Derivative | ||
Derivatives, Fair Value [Line Items] | ||||||||
Linked Transactions, Fair Value Disclosure | [1] | $ 0 | $ 0 | $ 15,367 | ||||
Fair value | $ (6,972) | $ (6,972) | $ (8,466) | |||||
Interest Rate Swap [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Number of derivative instruments held | Derivative | 10 | 10 | 10 | |||||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | $ 9 | $ 9 | ||||||
Average fixed interest rate (in hundredths) | 5.12% | |||||||
Notional amount | 147,800 | 147,800 | $ 45,000 | $ 124,000 | ||||
Fair value | (6,300) | (6,300) | (8,700) | |||||
Unrealized losses on non-designated derivative instruments | 6,500 | 6,500 | 9,000 | |||||
Gain (loss) on swap termination | $ 2,600 | (4,200) | ||||||
Notional amount of derivative instrument terminated | $ 53,600 | |||||||
Linked Transactions [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Linked Transactions, Fair Value Disclosure | 48,605 | |||||||
Fair value | 0 | |||||||
Unrealized Gain (Loss) and Net Interest Income on Derivatives | $ 0 | $ 5,012 | $ 0 | $ 7,317 | ||||
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) | 4.55% | 4.55% | ||||||
Linked Transactions, Net at Fair Value [Member] | Not Designated as Hedging Instrument [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Linked Transactions, Fair Value Disclosure | $ 15,400 | |||||||
[1] | June 30, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$189 $25 Restricted cash43,954 121,247 Investment securities available-for-sale, pledged as collateral, at fair value84,858 119,203 Loans held for sale6,027 282Loans, pledged as collateral and net of allowances of $42.7 million and $3.3 million1,352,546 1,261,137 Interest receivable5,468 8,941 Prepaid expenses182 221 Principal paydown receivable— 25,767 Other assets9 (12) Total assets of consolidated VIEs$1,493,233 $1,536,811 |
MARKET RISK AND DERIVATIVE I116
MARKET RISK AND DERIVATIVE INSTRUMENTS (Fair Value and Classification of Derivatives) (Details) $ in Thousands, € in Millions | 6 Months Ended | ||||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015EUR (€) | Dec. 31, 2014USD ($) | Dec. 31, 2014EUR (€) | |
Derivatives, Fair Value [Line Items] | |||||
Fair Value | $ 2,249 | $ 4,334 | |||
Fair Value | 6,972 | 8,466 | |||
Interest rate lock agreements [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 141,883 | 59,467 | |||
Notional Amount | 4,548 | 798 | |||
Interest rate lock agreements [Member] | Net realized gain on sales of investment securities available-for-sale and loans | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | 1,061 | $ 990 | |||
Interest rate lock agreements [Member] | Derivatives, at fair value [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair Value | 2,040 | 970 | |||
Fair Value | 19 | 10 | |||
Interest rate swap contracts [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 147,776 | 124,017 | |||
Interest rate swap contracts [Member] | Interest expense [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | 3,152 | 3,267 | |||
Interest rate swap contracts [Member] | Net realized gain on sales of investment securities available-for-sale and loans | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | 206 | ||||
Interest rate swap contracts [Member] | Derivatives, at fair value [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair Value | 6,300 | 8,680 | |||
Interest rate swap contracts [Member] | Accumulated other comprehensive loss [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair Value | 6,300 | 8,680 | |||
RMBS [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 42,614 | ||||
RMBS [Member] | Net realized gain on sales of investment securities available-for-sale and loans | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | 57 | ||||
RMBS [Member] | Derivatives, at fair value [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair Value | 1,297 | ||||
Forward Contracts [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 136,007 | 5,000 | |||
Notional Amount | 140,414 | 154,692 | |||
Forward Contracts [Member] | Net realized gain on sales of investment securities available-for-sale and loans | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | 1,989 | $ 458 | |||
Forward Contracts [Member] | Derivatives, at fair value [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair Value | 1,275 | 7 | |||
Fair Value | 314 | 1,036 | |||
Warrant [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 492 | 492 | |||
Warrant [Member] | Derivatives, at fair value [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair Value | 974 | 898 | |||
Forward contracts-foreign currency [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | € 40.1 | 54,948 | € 45.4 | ||
Notional Amount | 43,430 | ||||
Forward contracts-foreign currency [Member] | Net realized gain on sales of investment securities available-for-sale and loans | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | 1,790 | ||||
Forward contracts-foreign currency [Member] | Derivatives, at fair value [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair Value | 3,377 | ||||
Fair Value | 204 | ||||
US Treasury Securities [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 90 | ||||
US Treasury Securities [Member] | Net realized gain on sales of investment securities available-for-sale and loans | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | 184 | ||||
US Treasury Securities [Member] | Derivatives, at fair value [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair Value | 52 | ||||
Forward contracts-TBA securities [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 22,500 | 15,000 | |||
Forward contracts-TBA securities [Member] | Net realized gain on sales of investment securities available-for-sale and loans | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | 56 | ||||
Forward contracts-TBA securities [Member] | Derivatives, at fair value [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair Value | $ 154 | $ 47 |
MARKET RISK AND DERIVATIVE I117
MARKET RISK AND DERIVATIVE INSTRUMENTS (Summary of Linked Transactions) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Derivatives, Fair Value [Line Items] | ||||||
Linked transactions, net at fair value | [1] | $ 0 | $ 0 | $ 15,367 | ||
CMBS Linked Transactions [Abstract] | ||||||
Total | 241,279 | 241,279 | 256,515 | |||
Fair Value | ||||||
Less than one year | 108,353 | 108,353 | 78,095 | |||
Greater than one year and less than five years | 95,677 | 95,677 | 115,302 | |||
Greater than five years and less than ten years | 17,522 | 17,522 | 20,177 | |||
Greater than ten years | 31,876 | 31,876 | 62,146 | |||
Amortized Cost | ||||||
Less than one year | 107,588 | 107,588 | 79,649 | |||
Greater than one year and less than five years | 88,814 | 88,814 | 100,909 | |||
Greater than five years and less than ten years | 16,245 | 16,245 | 17,516 | |||
Greater than ten years | 28,632 | 28,632 | 58,441 | |||
Total | 241,279 | 241,279 | 256,515 | |||
Linked Transactions, Continuous Unrealized Loss Position [Abstract] | ||||||
Fair Value, less than 12 months | 35,548 | 35,548 | 38,307 | |||
Unrealized Losses, less than 12 months | (830) | (830) | (851) | |||
Fair value, more than 12 months | 21,115 | 21,115 | 26,541 | |||
Gross unrealized losses, more than 12 Months | (1,007) | (1,007) | (2,705) | |||
Fair value, total | 56,663 | 56,663 | 64,848 | |||
Unrealized losses, total | (1,837) | (1,837) | (3,556) | |||
Linked Transactions [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Linked transactions, net at fair value | 48,605 | |||||
Components of Unrealized Net Gains and Net Interest Income from Linked Transactions [Abstract] | ||||||
Interest income attributable to CMBS underlying linked transactions | 0 | $ 1,078 | 0 | $ 2,009 | ||
Interest expense attributable to linked repurchase agreement borrowings underlying linked transactions | 0 | (226) | 0 | (615) | ||
Change in fair value of linked transactions included in earnings | 0 | 4,160 | 0 | 5,923 | ||
Unrealized gain (loss) and net interest income from linked transactions, net | $ 0 | $ 5,012 | $ 0 | $ 7,317 | ||
Linked Transactions [Member] | CMBS [Member] | ||||||
CMBS Linked Transactions [Abstract] | ||||||
Total | 48,138 | |||||
Unrealized Gains | 539 | |||||
Unrealized Losses | (72) | |||||
Fair Value | 48,605 | |||||
Fair Value | ||||||
Less than one year | 7,834 | |||||
Greater than one year and less than five years | 36,587 | |||||
Greater than five years and less than ten years | 4,184 | |||||
Greater than ten years | 0 | |||||
Total | 48,605 | |||||
Amortized Cost | ||||||
Less than one year | 7,775 | |||||
Greater than one year and less than five years | 36,274 | |||||
Greater than five years and less than ten years | 4,089 | |||||
Greater than ten years | 0 | |||||
Total | $ 48,138 | |||||
Weighted Average Coupon | ||||||
Less than one year | 5.36% | |||||
Greater than one year and less than five years | 4.65% | |||||
Greater than five years and less than ten years | 4.52% | |||||
Greater than ten years | 0.00% | |||||
Total | 4.66% | |||||
Linked Transactions, Continuous Unrealized Loss Position [Abstract] | ||||||
Fair Value, less than 12 months | $ 7,609 | |||||
Unrealized Losses, less than 12 months | (57) | |||||
Fair value, more than 12 months | 777 | |||||
Gross unrealized losses, more than 12 Months | (15) | |||||
Fair value, total | 8,386 | |||||
Unrealized losses, total | (72) | |||||
CMBS Linked Repurchase Agreements [Abstract] | ||||||
CMBS Linked repurchase agreement, Balance | $ 33,397 | |||||
CMBS Linked repurchase agreement, Weighted Average Interest Rate | 1.56% | |||||
Linked Transactions [Member] | CMBS [Member] | Within 30 days [Member] | ||||||
CMBS Linked Repurchase Agreements [Abstract] | ||||||
CMBS Linked repurchase agreement, Balance | $ 33,397 | |||||
CMBS Linked repurchase agreement, Weighted Average Interest Rate | 1.56% | |||||
Linked Transactions [Member] | CMBS [Member] | 30 days to 90 days [Member] | ||||||
CMBS Linked Repurchase Agreements [Abstract] | ||||||
CMBS Linked repurchase agreement, Balance | $ 0 | |||||
CMBS Linked repurchase agreement, Weighted Average Interest Rate | 0.00% | |||||
Not Designated as Hedging Instrument [Member] | Linked Transactions, Net at Fair Value [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Linked transactions, net at fair value | $ 15,400 | |||||
[1] | June 30, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$189 $25 Restricted cash43,954 121,247 Investment securities available-for-sale, pledged as collateral, at fair value84,858 119,203 Loans held for sale6,027 282Loans, pledged as collateral and net of allowances of $42.7 million and $3.3 million1,352,546 1,261,137 Interest receivable5,468 8,941 Prepaid expenses182 221 Principal paydown receivable— 25,767 Other assets9 (12) Total assets of consolidated VIEs$1,493,233 $1,536,811 |
OFFSETTING OF FINANCIAL ASSE118
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Offsetting Derivative Assets [Abstract] | ||
Fair Value | $ 2,249 | $ 4,334 |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 2,249 | 4,334 |
Derivative, Collateral, Obligation to Return Securities | 0 | 0 |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 |
Derivative Asset, Fair Value, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | 2,249 | 4,334 |
Total-Assets | ||
Gross Amounts of Recognized Assets | 2,249 | 53,098 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 33,397 |
Net Amounts of Assets Included in the Consolidated Balance Sheets-Total | 2,249 | 19,701 |
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 | 2,249 | 19,701 |
Offsetting Derivative Liabilities [Abstract] | ||
Gross Amounts of Recognized Liabilities | 6,972 | 8,466 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 6,972 | 8,466 |
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 | 1,200 | 500 |
Net Amount | 5,772 | 7,966 |
Total-Liabilities | ||
Gross Amounts Offset in the Consolidated Balance Sheets | 384,376 | 441,525 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 33,397 |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 384,376 | 408,128 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 0 | 399,662 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | 1,200 | 500 |
Net Amount | 383,176 | 7,966 |
Repurchase agreements and term facilties | ||
Gross Amounts of Recognized Liabilities | 377,404 | 399,662 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 377,404 | 399,662 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 0 | 399,662 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | 0 |
Net Amount | 377,404 | 0 |
Fair value of securities pledged against swaps | 1,200 | 2,600 |
Fair value of securities pledged against repurchase agreements | $ 549,900 | 565,600 |
Linked Transactions [Member] | ||
Offsetting Derivative Assets [Abstract] | ||
Fair Value | 48,764 | |
Derivative Asset, Fair Value, Gross Liability | 33,397 | |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 15,367 | |
Derivative, Collateral, Obligation to Return Securities | 0 | |
Derivative, Collateral, Obligation to Return Cash | 0 | |
Derivative Asset, Fair Value, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | 15,367 | |
Offsetting Derivative Liabilities [Abstract] | ||
Gross Amounts of Recognized Liabilities | 33,397 | |
Gross Amounts Offset in the Consolidated Balance Sheets | 33,397 | |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 0 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 0 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | $ 0 |
SUBSEQUENT EVENTS Details (Deta
SUBSEQUENT EVENTS Details (Details) - Aug. 03, 2015 - Subsequent Event [Member] $ in Millions | USD ($) |
Subsequent Event [Line Items] | |
Stockholders' Equity Note, Stock Split, Conversion Ratio | 4 |
Equity and Debt Securities, Authorized Amount | $ 50 |