Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 04, 2016 | |
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 | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 31,165,637 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
ASSETS: | |||
Cash and cash equivalents | [1] | $ 65,167 | $ 78,756 |
Restricted cash | [1] | 6,823 | 40,635 |
Investment securities, trading | [1] | 3,982 | 25,550 |
Investment securities available-for-sale, pledged as collateral, at fair value | [1] | 88,122 | 162,306 |
Investment securities available-for-sale, at fair value | [1] | 167,158 | 45,782 |
Loans held for sale ($161.1 million and $94.5 million at fair value) | [1] | 420,308 | 95,946 |
Loans, pledged as collateral and net of allowances of $1.4 million and $47.1 million | [1] | 1,476,880 | 2,160,751 |
Investments in unconsolidated entities | [1] | 76,801 | 50,030 |
Derivatives, at fair value | [1] | 6,133 | 3,446 |
Interest receivable | [1] | 8,868 | 14,009 |
Deferred tax asset, net | [1] | 16,916 | 12,646 |
Principal paydown receivable | [1] | 8,100 | 17,941 |
Direct financing leases, net of allowances of $0.5 million | [1] | 665 | 931 |
Intangible assets | [1] | 26,726 | 26,228 |
Prepaid expenses | [1] | 5,058 | 3,180 |
Other assets | [1] | 12,137 | 22,295 |
Total assets | [1] | 2,389,844 | 2,760,432 |
LIABILTITES: | |||
Borrowings | [2] | 1,575,219 | 1,895,288 |
Distribution payable | [2] | 17,060 | 17,351 |
Accrued interest expense | [2] | 5,282 | 5,604 |
Derivatives, at fair value | [2] | 3,084 | 3,941 |
Accrued tax liability | [2] | 139 | 549 |
Accounts payable and other liabilities | [2] | 12,629 | 10,939 |
Total liabilities | [2] | 1,613,413 | 1,933,672 |
EQUITY | |||
Common stock, par value $0.001: 125,000,000 shares authorized; 31,163,780 and 31,562,724 shares issued and outstanding (including 655,775 and 691,369 unvested restricted shares) | 31 | 32 | |
Additional paid-in capital | 1,218,340 | 1,228,346 | |
Accumulated other comprehensive income (loss) | 700 | (2,923) | |
Distributions in excess of earnings | (441,522) | (406,603) | |
Total stockholders’ equity | 777,561 | 818,864 | |
Non-controlling interests | (1,130) | 7,896 | |
Total equity | 776,431 | 826,760 | |
TOTAL LIABILITIES AND EQUITY | 2,389,844 | 2,760,432 | |
Preferred Shares - Series A | |||
EQUITY | |||
Preferred stock, par value $0.001 | 1 | 1 | |
Preferred Shares - Series B | |||
EQUITY | |||
Preferred stock, par value $0.001 | 6 | 6 | |
Preferred Shares - Series C | |||
EQUITY | |||
Preferred stock, par value $0.001 | $ 5 | $ 5 | |
[1] | June 30, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$— $95 Restricted cash6,595 39,061 Investment securities available-for-sale, pledged as collateral, at fair value— 66,137 Loans held for sale— 1,475Loans, pledged as collateral and net of allowances of $1.0 million and $42.8 million942,182 1,416,441 Interest receivable3,767 6,592 Prepaid expenses42 238 Principal paydown receivable8,100 17,800 Other assets41 833 Total assets of consolidated VIEs$960,727 $1,548,672 | ||
[2] | June 30, 2016 December 31, 2015Liabilities of consolidated VIEs included in the total liabilities above: Borrowings $634,553 $1,032,581 Accrued interest expense549 923 Derivatives, at fair value— 3,346 Accounts payable and other liabilities157 (117) Total liabilities of consolidated VIEs$635,259 $1,036,733 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
ASSETS: | ||
Loans, pledged as collateral, amount at fair value | $ 161,100 | $ 94,500 |
Loans receivable, allowance | 1,400 | 47,100 |
Provision (recovery) for loan and lease losses | $ 1,901 | $ 47,536 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, shares authorized (in shares) | 100,000,000 | |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock, shares issued (in shares) | 31,163,780 | 31,562,724 |
Common stock, shares outstanding (in shares) | 31,217,415 | 31,562,724 |
Common stock, shares issued, non-vested restricted shares (in shares) | 655,775 | 691,369 |
Assets of consolidated Variable Interest Entities (VIEs) included in the total assets above: | ||
Cash and cash equivalents | $ 0 | $ 95 |
Restricted cash | 6,595 | 39,061 |
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | 66,137 |
Loans held for sale | 0 | 1,475 |
Loans, pledged as collateral and net of allowances of $1.0 million and $42.8 million | 942,182 | 1,416,441 |
Interest receivable | 3,767 | 6,592 |
Prepaid expenses | 42 | 238 |
Principal paydown receivable | 8,100 | 17,800 |
Other assets | 41 | 833 |
Total assets of consolidated VIEs | 960,727 | 1,548,672 |
Liabilities of consolidated VIEs included in the total liabilities above: | ||
Borrowings | 634,553 | 1,032,581 |
Accrued interest expense | 549 | 923 |
Derivatives, at fair value | 0 | 3,346 |
Accounts payable and other liabilities | 157 | (117) |
Total liabilities of consolidated VIEs | 635,259 | 1,036,733 |
Loan allowances, VIEs | $ 1,000 | $ 42,800 |
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) | 5,544,579 | 5,740,479 |
Preferred stock, shares outstanding (in shares) | 5,544,579 | 5,740,479 |
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 |
Direct Financing Leases | ||
ASSETS: | ||
Provision (recovery) for loan and lease losses | $ 465 | $ 465 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest income: | ||||
Loans | $ 31,365 | $ 29,759 | $ 65,477 | $ 62,422 |
Securities | 4,291 | 5,500 | 9,089 | 9,552 |
Leases | 39 | 163 | (15) | 258 |
Interest income - other | 2,307 | 1,119 | 3,548 | 1,951 |
Total interest income | 38,002 | 36,541 | 78,099 | 74,183 |
Interest expense | 18,636 | 15,803 | 34,407 | 30,705 |
Net interest income | 19,366 | 20,738 | 43,692 | 43,478 |
Dividend income | 18 | 17 | 35 | 33 |
Fee income | 103 | 2,816 | (598) | 3,986 |
Total revenues | 19,487 | 23,571 | 43,129 | 47,497 |
OPERATING EXPENSES | ||||
Management fees - related party | 3,099 | 3,500 | 7,136 | 7,060 |
Equity compensation - related party | 1,415 | 791 | 2,678 | 1,786 |
Rental operating expense | 0 | 0 | 0 | 6 |
Lease operating | 1 | 24 | 4 | 47 |
General and administrative | 11,153 | 9,994 | 21,223 | 19,605 |
Depreciation and amortization | 504 | 621 | 1,145 | 1,186 |
Impairment losses | 0 | 0 | 0 | 59 |
Provision (recovery) for loan and lease losses | 12,099 | 38,810 | 12,136 | 42,800 |
Total operating expenses | 28,271 | 53,740 | 44,322 | 72,549 |
Net interest and other revenues less operating expenses | (8,784) | (30,169) | (1,193) | (25,052) |
OTHER INCOME (EXPENSE) | ||||
Equity in earnings of unconsolidated subsidiaries | 2,696 | 662 | 4,918 | 1,368 |
Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives | 6,946 | 9,580 | 11,774 | 22,187 |
Net realized and unrealized gain (loss) on investment securities, trading | 183 | 279 | 328 | 2,353 |
Unrealized gain (loss) and net interest income on linked transactions, net | 0 | 0 | 0 | 235 |
(Loss) on reissuance/gain on extinguishment of debt | 0 | (171) | 0 | (1,071) |
(Loss) gain on sale of real estate | 0 | 22 | (3) | 0 |
Total other income (expense) | 9,825 | 10,372 | 17,017 | 25,072 |
INCOME (LOSS) BEFORE TAXES | 1,041 | (19,797) | 15,824 | 20 |
Income tax (expense) benefit | 3,488 | (2,918) | 2,725 | (4,765) |
NET INCOME (LOSS) | 4,529 | (22,715) | 18,549 | (4,745) |
Net (income) loss allocated to preferred shares | (6,014) | (6,116) | (12,062) | (12,207) |
Carrying value in excess of consideration paid for preferred shares | (111) | 0 | 1,500 | 0 |
Net (income) loss allocable to non-controlling interest, net of taxes | 60 | (2,180) | 150 | (4,657) |
NET INCOME (LOSS) ALLOCABLE TO COMMON SHARES | $ (1,536) | $ (31,011) | $ 8,137 | $ (21,609) |
NET INCOME (LOSS) PER COMMON SHARE – BASIC (in dollars per share) | $ (0.05) | $ (0.94) | $ 0.27 | $ (0.66) |
NET INCOME (LOSS) PER COMMON SHARE – DILUTED (in dollars per share) | $ (0.05) | $ (0.94) | $ 0.26 | $ (0.66) |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC (in shares) | 30,410,451 | 32,852,316 | 30,505,428 | 32,833,426 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - DILUTED (in shares) | 30,410,451 | 32,852,316 | 30,724,272 | 32,833,426 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 4,529 | $ (22,715) | $ 18,549 | $ (4,745) |
Other comprehensive income (loss): | ||||
Reclassification adjustment for realized (gains) losses on available-for-sale securities included in net income | (897) | (4,076) | (596) | (10,334) |
Unrealized gains (losses) on available-for-sale securities, net | 3,518 | (1,699) | 2,200 | 1,424 |
Reclassification adjustments associated with unrealized gains (losses) from interest rate hedges included in net income | (116) | 36 | (55) | 126 |
Unrealized gains on derivatives, net | 90 | 1,237 | 117 | 2,379 |
Foreign currency translation adjustments | 0 | 0 | 0 | 429 |
Total other comprehensive income (loss) | 2,595 | (4,502) | 1,666 | (5,976) |
Comprehensive income (loss) before allocation to non-controlling interests and preferred shares | 7,124 | (27,217) | 20,215 | (10,721) |
Unrealized (gains) losses on available-for-sale securities allocable to non-controlling interests | 0 | 470 | 0 | 1,277 |
Net (income) loss allocable to non-controlling interests | 60 | (2,180) | 150 | (4,657) |
Net (income) loss allocated to preferred shares | (6,014) | (6,116) | (12,062) | (12,207) |
Carrying value in excess of consideration paid for preferred shares | (111) | 0 | 1,500 | 0 |
Comprehensive income (loss) allocable to common shares | $ 1,059 | $ (35,043) | $ 9,803 | $ (26,308) |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Parent [Member] | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings | Distributions in Excess of Earnings | Non-Controlling Interests | Preferred Shares - Series APreferred Stock | Preferred Shares - Series BPreferred Stock | Preferred Shares - Series CPreferred Stock |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance prior to adjustment | $ 826,760 | $ 818,864 | $ 32 | $ 1,228,346 | $ (2,923) | $ 0 | $ (406,603) | $ 7,896 | $ 1 | $ 6 | $ 5 |
Deconsolidation of variable interest entities | (23,851) | (14,975) | 1,957 | (16,932) | (8,876) | ||||||
Balance at Dec. 31, 2015 | $ 802,909 | 803,889 | $ 32 | 1,228,346 | (966) | 0 | (423,535) | (980) | 1 | 6 | 5 |
Balance (in shares) at Dec. 31, 2015 | 31,562,724 | 31,562,724 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Proceeds from dividend reinvestment and stock purchase plan (in shares) | 6,000 | 6,417 | |||||||||
Proceeds from dividend reinvestment and stock purchase plan | $ 70 | 70 | 70 | ||||||||
Discount on 8.0% convertible senior notes | 19 | 19 | 19 | ||||||||
Stock based compensation (in shares) | 304,315 | ||||||||||
Stock based compensation | 0 | 0 | 0 | ||||||||
Amortization of stock based compensation | 2,678 | 2,678 | 2,678 | ||||||||
Purchase and retirement of shares (in shares) | (709,676) | ||||||||||
Purchase and retirement of common shares | (8,159) | (8,159) | $ (1) | (8,158) | |||||||
Net income (loss) | 18,549 | 18,699 | 18,699 | (150) | |||||||
Preferred dividends | (12,062) | (12,062) | (12,062) | ||||||||
Preferred stock redemption | (3,115) | (3,115) | (4,615) | 1,500 | |||||||
Securities available-for-sale, fair value adjustment, net | 1,604 | 1,604 | 1,604 | ||||||||
Designated derivatives, fair value adjustment | 62 | 62 | 62 | ||||||||
Distributions on common stock | $ (26,124) | (26,124) | (8,137) | (17,987) | |||||||
Balance (in shares) at Jun. 30, 2016 | 31,217,415 | 31,163,780 | |||||||||
Balance at Jun. 30, 2016 | $ 776,431 | $ 777,561 | $ 31 | $ 1,218,340 | $ 700 | $ 0 | $ (441,522) | $ (1,130) | $ 1 | $ 6 | $ 5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance prior to adjustment | $ 776,431 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 6 Months Ended | |||
Jun. 30, 2016USD ($)Entity | Jun. 30, 2015USD ($) | |||
Cash and cash equivalents | $ 0 | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net income (loss) | 18,549 | $ (4,745) | ||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||||
Provision for (recovery of) loan losses | 12,136 | 42,800 | ||
Depreciation, amortization, and accretion | 4,090 | 7,574 | ||
Amortization of stock-based compensation | 2,678 | 1,786 | ||
Deferred income tax (benefit) expense | 0 | (194) | ||
Sale (origination) of residential mortgage loans held for sale, net | (83,829) | 15,229 | ||
Sale (purchase) of and principal payments on securities, trading, net | 140 | (9,541) | ||
Net realized and unrealized loss (gain) on investment securities, trading | (328) | (2,353) | ||
Net realized and unrealized (gain) loss on sales of investment securities available-for-sale and loans | (11,774) | (32,016) | ||
Loss (gain) on the reissuance (extinguishment) of debt | 0 | 1,071 | ||
Loss (gain) on sale of real estate | 3 | 0 | ||
Settlement of derivative instruments | (4,035) | 12,405 | ||
Net impairment losses recognized in earnings | 0 | 59 | ||
Unrealized gain (loss) and net interest income on linked transactions, net | 0 | (235) | ||
Equity in net (earnings) losses of unconsolidated subsidiaries | (4,918) | (1,368) | ||
Changes in operating assets and liabilities, net of acquisitions | 20,353 | (6,371) | ||
Net cash provided by (used in) operating activities | (46,935) | 24,101 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
(Increase) decrease in restricted cash | 15,727 | 75,836 | ||
Deconsolidation of VIEs | (472) | [1] | 0 | [1] |
Purchase of securities available-for-sale | (6,537) | (11,320) | ||
Principal payments on securities available-for-sale | 29,827 | 49,819 | ||
Proceeds from sale of securities available-for-sale | 0 | 37,221 | ||
Acquisition of legacy collateralized debt obligation assets | (7,511) | 0 | ||
Return of capital from (investment in) unconsolidated entity | 9,530 | 5,000 | ||
Proceeds from sale of real estate held-for-sale | 0 | 44 | ||
Purchase and origination of loans | (160,677) | (436,440) | ||
Principal payments received on loans | 241,613 | 209,744 | ||
Proceeds from sale of loans | 8,881 | 93,146 | ||
Purchase of property and equipment | (28) | (238) | ||
Principal payments received on loans – related parties | 0 | 558 | ||
Settlement of derivative instruments | (50) | 0 | ||
Net cash (used in) provided by investing activities | 130,303 | 23,370 | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Net proceeds from issuances of common stock and dividend reinvestment and stock purchase plan (net of offering costs of $0 and $58) | 68 | 129 | ||
Proceeds from issuance of preferred shares (net of offering costs of $0 and $78) | 0 | 3,035 | ||
Repurchase of common stock | (7,914) | (5) | ||
Repurchase of preferred shares | (3,359) | 0 | ||
Net proceeds (borrowings) from repurchase agreements | 118,574 | (56,383) | ||
Proceeds from borrowings: | ||||
Securitizations | 0 | 282,127 | ||
Convertible senior notes | 0 | 99,000 | ||
Senior secured revolving credit facility | 33,000 | 99,500 | ||
Reissuance of debt | 0 | 12,229 | ||
Payments on borrowings: | ||||
Securitizations | (119,810) | (290,190) | ||
Senior secured revolving credit facility | (79,000) | (62,000) | ||
Payment of debt issuance costs | (39) | (7,986) | ||
Distributions to non-controlling interest and subordinated note holders | 0 | (4,333) | ||
Proceeds received from non-controlling interests | 0 | 2,676 | ||
Distributions paid on preferred stock | (12,130) | (12,159) | ||
Distributions paid on common stock | (26,347) | (48,006) | ||
Net cash provided by (used in) financing activities | (96,957) | 17,634 | ||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (13,589) | 65,105 | ||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 78,756 | [2] | 79,905 | |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 65,167 | [2] | 145,010 | |
SUPPLEMENTAL DISCLOSURE: | ||||
Interest expense paid in cash | 28,786 | 21,402 | ||
Income taxes paid in cash | $ 6,240 | $ 9,182 | ||
VIE, Primary Beneficiary | ||||
Number of consolidated VIEs | Entity | 7 | |||
[1] | Cash and cash equivalents as of January 1, 2016 decreased by $472,000 due to the adoption of the amendments to the consolidation accounting guidance resulting in the deconsolidation of five variable interest entities (see Note 2). | |||
[2] | June 30, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$— $95 Restricted cash6,595 39,061 Investment securities available-for-sale, pledged as collateral, at fair value— 66,137 Loans held for sale— 1,475Loans, pledged as collateral and net of allowances of $1.0 million and $42.8 million942,182 1,416,441 Interest receivable3,767 6,592 Prepaid expenses42 238 Principal paydown receivable8,100 17,800 Other assets41 833 Total assets of consolidated VIEs$960,727 $1,548,672 |
CONSOLIDATED STATEMENTS OF CAS8
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net proceeds from dividend reinvestment and stock purchase plan, offering costs | $ 0 | $ 58 |
Offering costs on stock issuance | $ 0 | $ 78 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2016 | |
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 originate, 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 was the primary beneficiary of the Company. In December 2015, Resource America early adopted the consolidation guidance issued by the Financial Accounting Standards Board ("FASB") ( see Note 2 ) and it was determined that the Company was no longer a VIE. Therefore, the Company's financial statements are no longer consolidated into Resource America's financial statements. On January 1, 2016, the Company adopted the amendments to the consolidation guidance as outlined in Note 2. As a result of its evaluation, the Company determined that it is no longer the primary beneficiary of the following VIEs and therefore, deconsolidated these entities: Resource Real Estate Funding CDO 2006-1, Ltd. ("RREF CDO 2006-1"), Resource Real Estate Funding CDO 2007-1, Ltd. ("RREF CDO 2007-1"), Apidos Cinco CDO, Ltd. ("Apidos Cinco CDO"), Pelium Capital Partners, L.P., ("Pelium Capital") and RCM Global, LLC ("RCM Global"). 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 direct investments in real estate. RCC Real Estate owns 100% of the equity of the following VIEs: ◦ 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"). This entity was deconsolidated as of January 1, 2016 and the retained investment is now accounted for as an investment security, available-for-sale ( see Note 2 ) in its consolidated financial statements. On April 25, 2016, RREF CDO 2006-1 was liquidated, and in exchange for the Company's interests in RREF CDO 2006-1, the Company was distributed the remaining assets of the CDO, comprised of investment securities available-for-sale and loans held for investment, which were recorded at fair value. ◦ 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. This entity was deconsolidated as of January 1, 2016 and the retained investment is now accounted for as an investment security, available-for-sale ( see Note 2 ) in its consolidated financial statements. ◦ Resource Capital Corp. CRE Notes 2013, Ltd. ("RCC CRE Notes 2013"), a Cayman Islands limited liability company and QRS, 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, 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, was established to complete a CRE securitization issuance secured by a portfolio of CRE loans. ◦ Resource Capital Corp. 2015-CRE4, Ltd. ("RCC 2015-CRE4"), a Cayman Islands limited liability company and QRS, 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"), 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, as a result, all of the assets were sold. • 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, a Cayman Islands limited liability company and TRS, was established to complete a CDO issuance secured by a portfolio of bank loans, ABS and corporate bonds. This entity was deconsolidated as of January 1, 2016 and the retained investment is now accounted for as an investment security, available-for-sale ( see Note 2 ). ◦ 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, substantially 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 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 a 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, 2016 . The remaining 29.6% of the equity is owned by RCC Commercial. ◦ Pelium Capital, a Delaware limited partnership, which holds investment securities, trading. Resource TRS owns 80.2% of the equity in Pelium Capital as of June 30, 2016 . This entity was deconsolidated as of January 1, 2016 and the retained investment is now accounted for as an equity method investment ( see Note 2 ). • 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 two 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 24% 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 previously owned 33% of the equity of Apidos CLO VIII, Ltd ("Apidos CLO VIII"), a Cayman Islands limited liability company and TRS, which was liquidated in October 2013. • 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 70.9% 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 acquiring life settlement contracts. ◦ ZWH4, LLC ("ZAIS"), a Delaware limited liability company, which owned a beneficial interest in the warehouse credit facility of ZAIS CLO 4, Limited, is a Cayman Islands exempted limited liability company, in equity form, that is used to finance the purchase of syndicated bank loans. The warehouse credit facility closed on May 5, 2016, at which time, Resource TRS III purchased a beneficial interest in ZAIS CLO 4. • 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 25.9% of the following entity: ▪ RCM Global, a Delaware limited liability company, holds a portfolio of investment securities, available-for-sale. This entity was deconsolidated as of January 1, 2016 and the retained investment is now accounted for as an equity method investment ( see Note 2 ). ▪ 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 mortgage 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 Residential Acquisition, LLC ("RCC Resi Acquisition"), a Delaware limited liability company, purchases residential mortgage loans from PCM and transfers the assets to RCC Opportunities Trust ("RCC Opp Trust"). * RCC Opp Trust, a Delaware statutory trust, which holds a portfolio of residential mortgage loans, available-for-sale. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reverse Stock Split and Amended and Restated Certificate of Incorporation Effective August 31, 2015, the Company completed a one-for-four reverse stock split of its outstanding common stock. The accompanying financial statements and notes to the financial statements give retroactive effect to the reverse stock split for all periods presented. In addition, the Company adopted an Amended and Restated Certificate of Incorporation, which provides that its authorized capital stock consists of 125,000,000 shares of common stock, $0.001 par value per share, and 100,000,000 shares of preferred stock, $0.001 par value per share. 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") and the accounting policies set forth in Note 2 included in our annual report on Form 10-K for the year ended December 31, 2015. 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, 2016 and December 31, 2015 , approximately $61.7 million and $74.3 million of the reported cash balances exceeded the 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. Income Taxes Because modest changes in projected income or loss produce a significant variance in estimates of the Company's annual effective tax rate, the Company records its tax provision (benefit) based on its actual effective tax rate. Recent Accounting Standards In June 2016, the FASB issued guidance which will change how credit losses for most financial assets and certain other instruments that are measured at fair value through net income are determined. The new guidance will replace the current incurred loss approach with an expected loss model for instruments measured at amortized cost. For available-for-sale debt securities, the guidance requires recording allowances rather than reducing the carrying amount, as it is currently under the other-than-temporary impairment model. It also simplifies the accounting model for credit-impaired debt securities and loans. This guidance is effective for annual reporting periods beginning after December 15, 2019, and interim periods within that reporting period. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods within that reporting period, with any adjustments reflected as of the beginning of the fiscal year of adoption. The Company is in the process of evaluating the impact of this new guidance. In March 2016, the FASB issued guidance intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. The new guidance allows for entities to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. In addition, the guidance allows employers to withhold shares to satisfy minimum statutory tax withholding requirements up to the employees’ maximum individual tax rate without causing the award to be classified as a liability. The guidance also stipulates that cash paid by an employer to a taxing authority when directly withholding shares for tax-withholding purposes should be classified as a financing activity on the statement of cash flows. This guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. Early adoption is permitted in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. The Company is in the process of evaluating the impact of this new guidance. In February 2016, the FASB issued guidance requiring lessees to recognize a lease liability and a right-of-use asset for all leases. Lessor accounting will remain largely unchanged. The guidance will also require new qualitative and quantitative disclosures to help financial statement users better understand the timing, amount and uncertainty of cash flows arising from leases. This guidance will be effective for reporting periods beginning on or after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of this guidance and its impact on our consolidated financial statements. In January 2016, the FASB issued guidance to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments in order to provide users of financial statements with more decision-useful information. The guidance requires equity investments to be measured at fair value with changes in fair value recognized in net income; simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; requires separate presentation of financial assets and financial liabilities by measurement category and form of financial assets on the balance sheet or the accompanying notes to the financial statements and clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. It is effective for annual reporting periods, and the interim periods within those periods, beginning after December 15, 2017 and early adoption is permitted for certain provisions. The Company is currently evaluating the effect of adoption. In September 2015, the FASB issued guidance that simplifies the accounting for adjustments made to provisional amounts recognized in a business combination, which are currently recognized on a retrospective basis. Under the new requirements, adjustments to provisional amounts will be recognized in the reporting period in which the adjustments are determined. The effects of changes in depreciation, amortization, or other income arising from changes to the provisional amounts, if any, are included in earnings of the reporting period in which the adjustments to the provisional amounts are determined. An entity is also required to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. It is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Adoption did not have a material impact on the Company's consolidated financial statements. In April 2015, the 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. 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 it 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 VIEs; (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. On January 1, 2016, the Company adopted the above guidance as required. As a result of its re-evaluation, the Company determined it is no longer the primary beneficiary of the following VIEs and, therefore, they were deconsolidated: RREF CDO 2006-1, RREF CDO 2007-1, Apidos Cinco CDO, Pelium Capital, and RCM Global. As a result of these deconsolidations, the Company will no longer reflect the underlying collateral (loans and securities) of those VIEs in its consolidated financial statements. Instead, the Company will prospectively reflect in its consolidated balance sheet, its direct investments (the "retained investments") in the issued and outstanding securities of those VIEs. The Company's retained investments in RREF CDO 2006-1, RREF CDO 2007-1, Apidos Cinco CDO are now accounted for as investment securities, available-for-sale and, as a result, are marked-to-market while the Company's retained investments in Pelium Capital and RCM Global are accounted for as equity method investments. The Company has elected to retrospectively reflect the deconsolidation of these entities on a modified basis, which resulted in a reduction to the beginning balance of retained earnings as of January 1, 2016, of $16.9 million . The reduction to retained earnings represents the effect of marking the investments to market as of the date of the required adoption. The following table summarizes the net impact of the deconsolidation of the five VIEs upon adoption on January 1, 2016 (in thousands) net of eliminations: Total Deconsolidated VIEs Retained Interest as of 1/1/2016 Net Impact on Deconsolidation ASSETS: Cash and cash equivalents $ 472 $ — $ 472 Restricted cash 17,076 — 17,076 Loans, pledged as collateral and net of allowances (1)(2)(3) 364,589 — 364,589 Loans held for sale 1,322 — 1,322 Investment securities available-for-sale, at fair value 68,997 166,769 (97,772 ) Investment securities, trading 21,851 — 21,851 Investments in deconsolidated entities 17,250 23,175 (5,925 ) Interest receivable 4,299 — 4,299 Principal paydown receivable 17,800 — 17,800 Prepaid expenses 256 — 256 Other assets 972 — 972 Total assets $ 514,884 $ 189,944 $ 324,940 LIABILTITES: Borrowings $ 297,191 $ — $ 297,191 Accrued interest expense 297 — 297 Derivative liabilities, at fair value 3,346 — 3,346 Accounts payable and other liabilities 255 — 255 Total liabilities 301,089 — 301,089 Retained earnings 206,876 189,944 16,932 Non-controlling interests 8,876 — 8,876 Accumulated other comprehensive loss (1,957 ) — (1,957 ) Total equity 213,795 189,944 23,851 Total liabilities and equity $ 514,884 $ 189,944 $ 324,940 (1) As part of the deconsolidation of RREF CDO 2006-1 and RREF CDO 2007-1, $40.3 million of specific reserves and $142,000 of general reserves on CRE loans were deconsolidated as of January 1, 2016. (2) As part of the deconsolidation of Apidos Cinco CDO, $1.3 million of specific reserves on the bank loans were deconsolidated as of January 1, 2016. (3) As part of the deconsolidation of RREF CDO 2006-1 and RREF CDO 2007-1, the Company deconsolidated four loans representing the senior participations in commercial real estate loans totaling $91.3 million that were previously disclosed as both impaired loans and troubled debt restructurings as of December 31, 2015. 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. Adoption did not have a material impact on the Company's consolidated financial statements. 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 is currently evaluating the effect of adoption. 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 and the fair value of any beneficial interests retained by the reporting entity (including those beneficial interests 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 that any difference in the fair value of the financial assets and the fair value of the financial liabilities 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. Adoption did not have a material impact on the Company's consolidated financial statements. Reclassifications Certain reclassifications have been made to the 2015 consolidated financial statements to conform to the 2016 presentation. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2016 | |
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), securitizations, guarantees and other financial contracts in order to determine if they are variable interests in VIEs. The Company regularly monitors these legal interests and contracts and, to the extent it has determined that it has a variable interest, analyzes the related entity for potential consolidation. A VIE is required to be consolidated by its primary beneficiary, which, generally, is the entity that has the power to direct the activities that are most significant to the VIE and the right to receive benefits or the obligation to absorb losses that could potentially be significant to the VIE. 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. Consolidated VIEs (the Company is the primary beneficiary) Based on management’s analysis, the Company is the primary beneficiary of seven VIEs at June 30, 2016 : Apidos CDO I, Apidos CDO III, Whitney CLO I, RCC CRE Notes 2013, RCC 2014-CRE2, RCC 2015-CRE3 and RCC 2015-CRE4 (collectively the "Consolidated VIEs"). The Consolidated VIEs 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. All of the Company's VIEs were reevaluated under the revised consolidation model effective for the Company on January 1, 2016 (see Note 2). As of December 31, 2015, the Company was the primary beneficiary of thirteen VIEs: 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, RCC 2015-CRE4, Moselle CLO and RCM Global, LLC (collectively, the "Consolidated VIEs at December 31, 2015"). In performing the primary beneficiary analysis for the Consolidated VIEs at December 31, 2015, it was determined that the parties that have the power to direct the activities that are most significant to each of these VIEs and that had the right to receive benefits or the obligation to absorb losses that could potentially be significant to these VIEs, were a related-party group. It was then determined that the Company was the party within that group that was 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, RCC 2015-CRE3 and RCC 2015-CRE4 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. The Company's interest in the Moselle CLO Subordinated Notes was fully redeemed in March 2016. 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. For a discussion of the Company’s consolidated 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 seven consolidated VIEs have no recourse to the general credit of the Company. During the three months ended June 30, 2016 , the Company has provided no financial support to any 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, 2016 (in thousands): Apidos I Apidos III Whitney CLO I RCC CRE Notes 2013 RCC 2014-CRE2 RCC 2015-CRE3 RCC 2015-CRE4 Total ASSETS Restricted cash (1) $ 65 $ 62 $ 163 $ — $ 4,220 $ 2,083 $ 2 $ 6,595 Loans held for investment — — — 86,397 263,303 281,980 310,502 942,182 Interest receivable — — — 404 1,025 1,165 1,173 3,767 Prepaid assets — — — 11 11 10 10 42 Principal paydown receivable — — — 8,100 — — — 8,100 Other assets — — — 41 — — — 41 Total assets (2) $ 65 $ 62 $ 163 $ 94,953 $ 268,559 $ 285,238 $ 311,687 $ 960,727 LIABILITIES Borrowings $ — $ — $ — $ 47,305 $ 147,566 $ 218,762 $ 220,920 $ 634,553 Accrued interest expense — — — 60 101 214 174 549 Accounts payable and other liabilities — — — 23 41 53 40 157 Total liabilities $ — $ — $ — $ 47,388 $ 147,708 $ 219,029 $ 221,134 $ 635,259 (1) Includes $4.2 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. 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, 2016 . 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. RREF CDO 2006-1, RREF CDO 2007-1 and Apidos Cinco CDO RREF CDO 2006-1, RREF CDO 2007-1 and Apidos Cinco CDO 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. On January 1, 2016, the Company adopted the amendments to the consolidation guidance as outlined in Note 2 . As a result of its evaluation, the Company determined that it was no longer the primary beneficiary of these VIEs as its investments in these vehicles do not provide the Company with a controlling financial interest. As a results of its evaluation, these investments were deconsolidated. At deconsolidation, the Company recorded its investments in RREF CDO 2006-1, RREF CDO 2007-1 and Apidos Cinco CDO at fair value and will account for these investments as investment securities available-for-sale in its consolidated financial statements. On April 25, 2016, the Company called and liquidated its investment in RREF CDO 2006-1, and in exchange for the Company's interest in RREF CDO 2006-1, the Company was distributed the remaining assets of $65.6 million at fair value after paying off the CDO debt owed to third parties of $7.5 million and recognized a gain of approximately $846,000 as a result of this transaction. RCM Global, LLC 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. On January 1, 2016, the Company adopted the amendments to the consolidation guidance as outlined in Note 2 . Upon adoption, the Company reevaluated its variable interest in RCM Global and determined it would not be the primary beneficiary of RCM Global, as its investment in the limited liability company does not provide the Company with a controlling financial interest. As a result of its evaluation, the Company deconsolidated its investment in RCM Global. As of January 1, 2016, the Company accounted for its investment in RCM Global as an investment in an unconsolidated entity in its consolidated financial statements. As of June 30, 2016 , the Company holds a 25.9% interest in RCM Global. Pelium Capital 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 which can increase its interest to 20% if the Company's capital contributions aggregate $40.0 million . Resource America contributed cash of $2.8 million to the formation of Pelium Capital. At December 31, 2015, Pelium Capital was accounted for as a consolidated voting interest subsidiary. On January 1, 2016, the Company adopted the amendments to the consolidation guidance as outlined in Note 2 . Upon adoption, the Company reevaluated its interest in Pelium Capital and determined that although it now possessed a variable interest in Pelium Capital, it would not be the primary beneficiary of Pelium Capital, as its investment in the limited liability company does not provide the Company with a controlling financial interest. As a result of its reevaluation, the Company deconsolidated its investment in Pelium Capital on January 1, 2016, and accounted for its investment in Pelium Capital as an investment in an unconsolidated entity in its consolidated financial statements. As of June 30, 2016 , the Company holds an 80.2% interest in Pelium Capital. 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. 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 expired and the Company was issued additional Series A-1 Preferred Stock in exchange for its investment in the Series E Preferred Stock. The Company's fully-diluted interest in LCC, assuming conversion, was 29.0% at June 30, 2016 . The Company’s investment in LCC was recorded at $44.4 million and $42.0 million as of June 30, 2016 and December 31, 2015 , 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 29.0% 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 (see Note 17 ). 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 $4.5 million and $5.3 million at June 30, 2016 and December 31, 2015 , respectively. The Company recognized fee income of $510,000 and $912,000 for the three and six months ended June 30, 2016 , respectively. The Company recognized fee income of $896,000 and $1.9 million for the three and six months ended June 30, 2015 , 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 ownership of the outstanding preferred equity to 68.3% . In September 2013, the Company liquidated Whitney CLO I, and, as a result, all of the assets were sold. In January 2016 another RCAM-managed CLO was called and $2.4 million of impairment, on a pre-tax basis, was recorded in depreciation and amortization on the Company's consolidated statements of operations the related intangible asset, as of December 31, 2015. 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 unconsolidated subsidiary Pelium Capital together with a Resource America employee. The Company, through ZAIS and Pelium Capital, committed to invest $10.0 million and $3.0 million , respectively, during the vehicle's warehousing period. The warehouse credit facility closed on May 5, 2016, at which time, Resource TRS III purchased a beneficial interest in ZAIS CLO 4. The vehicle is managed by ZAIS Leveraged Loan Manager 4, LLC (the “Collateral Manager”), an entity unrelated 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 for cause by the entity’s administrative agent if there is an event of default or by a unanimous vote of the entity’s equity investors, excluding any preference shares held by the Collateral Manager 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. As of June 30, 2016 , the Company had a beneficial interest of $9.9 million through ZAIS CLO 4. The Company accounts for its investment in ZAIS CLO 4 as an investment security available-for-sale in its consolidated financial statements. Investments in the Harvest CLO Securities In September 2013 and March 2014, the Company made investments in Harvest CLO VII Limited and Harvest CLO VIII Limited (collectively, the “Harvest Securities”), respectively, offshore limited liability companies created to acquire syndicated bank loans and issue collateral loan obligations, through its wholly-owned, direct subsidiary Commercial II. The Harvest Securities are managed by 3i Debt Management Investments Limited (the “Portfolio Manager”), an entity unrelated to the Company, and such collateral management activities were determined to be the activities that most significantly impacted the economic performance of the entity. The Portfolio Manager can be replaced only for cause by the Harvest Securities’ trustee. Although the Company has investments in the Harvest Securities that are potentially significant, because it was determined that the Company did not have the ability to unilaterally kick out the Portfolio Manager, the Company was not determined to be the primary beneficiary and, hence, not required to consolidate the Harvest Securities. As of June 30, 2016 , the Company had investments of $4.0 million in Harvest CLO VII Limited and $4.8 million in Harvest CLO VIII Limited. The Company accounts for its investments in the Harvest Securities as investment securities available-for-sale in its consolidated financial statements. Investment in Harvest CLO XV Designated Activity Company In September 2015, the Company made an investment in Harvest CLO XV Designated Activity Company ("Harvest XV"), an offshore financing vehicle created to acquire and warehouse syndicated bank loans, through its wholly-owned, direct subsidiary Commercial II. In May 2016, the warehouse closed and the Company invested in Harvest CLO XV DAC ("Harvest CLO XV"). The CLO is managed by the Portfolio Manager, and such collateral management activities were determined to be the activities that most significantly impacted the economic performance of the entity. The Portfolio Manager can be replaced only for cause by the entity’s administrative agent. 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 unilaterally kick out the collateral manager, the Company was not determined to be the primary beneficiary and, hence, not required to consolidate Harvest CLO XV. As of June 30, 2016 , the Company's investment in Harvest CLO XV is $13.4 million . The Company accounts for its investment in Harvest CLO XV as an investment security available-for-sale in its consolidated financial statements. 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, 2016 (in thousands): Unconsolidated Variable Interest Entities LCC Unsecured Junior Subordinated Debentures Resource Capital Asset Management CDOs Investment in ZAIS and Harvest RREF CDO 2007-1 Apidos Cinco CDO RCM Global LLC Pelium Capital Total Maximum Exposure to Loss Investments in unconsolidated entities and Investment securities, available-for-sale $ 44,361 $ 1,548 $ — $ 32,114 $ 109,913 $ 18,838 $ 584 $ 23,723 $ 231,081 $ 231,081 Intangible assets — — 4,514 — — — — — 4,514 $ 4,514 Total assets 44,361 1,548 4,514 32,114 109,913 18,838 584 23,723 235,595 Borrowings — 51,521 — — — — — — 51,521 N/A Total liabilities — 51,521 — — — — — — 51,521 N/A Net asset (liability) $ 44,361 $ (49,973 ) $ 4,514 $ 32,114 $ 109,913 $ 18,838 $ 584 $ 23,723 $ 184,074 N/A As of June 30, 2016 , 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, 2016 | |
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, 2016 2015 Non-cash investing activities include the following: Reclassification of linked transactions, net at fair value to investment securities available-for-sale, pledged as collateral, at fair value (1) $ — $ 48,605 Retained beneficial interest in unconsolidated securitization entities $ (22,476 ) $ — Loans acquired through collateralized debt obligation liquidation $ (44,893 ) $ — Securities acquired through collateralized debt obligation liquidation $ (20,837 ) $ — Non-cash financing activities include the following: Distributions on common stock accrued but not paid $ 13,051 $ 21,426 Distributions on preferred stock accrued but not paid $ 4,009 $ 4,078 Reclassification of linked transactions, net at fair value to borrowings (1) $ — $ 33,377 (1) As a result of an accounting standards update adopted on January 1, 2015, the Company unlinked its previously linked transactions, resulting in non-cash increases in both its investment securities available-for-sale, pledged as collateral, at fair value and related repurchase agreements borrowings balances. |
INVESTMENT SECURITIES TRADING
INVESTMENT SECURITIES TRADING | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES TRADING | NOTE 5 - INVESTMENT SECURITIES, TRADING Structured notes are CLO debt securities collateralized by syndicated bank loans, and RMBS is a type of mortgage-backed debt obligation whose cash flows come from residential mortgage debt. 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): Amortized Cost Unrealized Gains Unrealized Losses Fair Value As of June 30, 2016: Structured notes $ 5,907 $ 255 $ (2,180 ) $ 3,982 RMBS 1,896 — (1,896 ) — Total $ 7,803 $ 255 $ (4,076 ) $ 3,982 As of December 31, 2015: Structured notes $ 28,576 $ 1,674 $ (4,700 ) $ 25,550 RMBS 1,896 — (1,896 ) — Total $ 30,472 $ 1,674 $ (6,596 ) $ 25,550 As a result of updated accounting guidance, effective January 1, 2016 ( see Note 2 ), the Company deconsolidated all of the assets of Pelium Capital, resulting in the removal of $21.9 million of investment securities, trading from its balance sheet which is the primary cause of the decrease of securities during the period. The Company sold no investment securities during the three and six months ended June 30, 2016 . The Company sold four and ten investment securities during the three and six months ended June 30, 2015 for a net realized gain of approximately $189,000 and $621,000 , respectively. The Company held six and 56 investment securities, trading as of June 30, 2016 and December 31, 2015 , respectively. |
INVESTMENT SECURITIES AVAILABLE
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | 6 Months Ended |
Jun. 30, 2016 | |
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. ABS may include, but are not limited to the Company's investments in RREF CDO 2007-1, Apidos Cinco CDO, Harvest CLO Securities, ZAIS and other securities backed by syndicated bank loans, and other loan obligations. These securities are carried at fair value (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value (1) As of June 30, 2016: ABS $ 162,759 $ 2,865 $ (519 ) $ 165,105 CMBS 89,621 441 (1,904 ) 88,158 RMBS 1,919 144 (46 ) 2,017 Total $ 254,299 $ 3,450 $ (2,469 ) $ 255,280 As of December 31, 2015: ABS $ 41,994 $ 3,218 $ (998 ) $ 44,214 CMBS 158,584 2,631 (1,791 ) 159,424 RMBS 2,156 122 (88 ) 2,190 Corporate bonds 2,422 — (162 ) 2,260 Total $ 205,156 $ 5,971 $ (3,039 ) $ 208,088 (1) As of June 30, 2016 and December 31, 2015 , $88.1 million and $162.3 million , respectively, of investment securities available-for-sale were pledged as collateral under related financings. As a result of updated accounting guidance, effective January 1, 2016 ( see Note 2 ), the Company deconsolidated all of the assets of RREF CDO 2006-1, RREF CDO 2007-1 and Apidos Cinco CDO, resulting in the removal of $364.6 million of loans, pledged as collateral from its balance sheet. These investments are now recorded as investment securities available-for-sale, which is the primary cause of the increase in securities during the period. 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, 2016: Less than one year $ 180,947 (1) $ 182,143 8.10% Greater than one year and less than five years 34,010 34,207 5.09% Greater than five years and less than ten years 23,699 22,177 9.02% Greater than ten years 16,624 15,772 14.25% Total $ 255,280 $ 254,299 8.16% As of December 31, 2015: Less than one year $ 117,221 (1) $ 118,215 7.13% Greater than one year and less than five years 71,370 68,808 5.31% Greater than five years and less than ten years 12,382 11,271 10.45% Greater than ten years 7,115 6,862 16.85% Total $ 208,088 $ 205,156 7.03% (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, 2016 , the contractual maturities of the CMBS investment securities available-for-sale range from July 2016 to December 2022 . The contractual maturity date of RMBS investment securities available-for-sale is June 2029 . The contractual maturities of the ABS investment securities available-for-sale range from October 2018 to May 2029 . 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, 2016: ABS $ 2,135 $ (519 ) 3 $ — $ — — $ 2,135 $ (519 ) 3 CMBS 59,858 (1,503 ) 26 7,028 (401 ) 7 66,886 (1,904 ) 33 RMBS 1,065 (46 ) 2 — — — 1,065 (46 ) 2 Total temporarily impaired securities $ 63,058 $ (2,068 ) 31 $ 7,028 $ (401 ) 7 $ 70,086 $ (2,469 ) 38 As of December 31, 2015: ABS $ 2,330 $ (824 ) 5 $ 668 $ (174 ) 5 $ 2,998 $ (998 ) 10 CMBS 79,570 (849 ) 31 13,783 (942 ) 15 93,353 (1,791 ) 46 RMBS 1,157 (88 ) 2 — — — 1,157 (88 ) 2 Corporate bonds 65 (18 ) 1 1,327 (144 ) 1 1,392 (162 ) 2 Total temporarily impaired securities $ 83,122 $ (1,779 ) 39 $ 15,778 $ (1,260 ) 21 $ 98,900 $ (3,039 ) 60 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, 2016 and 2015 , 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 For the Six Months Ended Positions Sold Positions Redeemed Par Amount Sold/Redeemed Realized Gain (Loss) Positions Sold Positions Redeemed Par Amount Sold/Redeemed Realized Gain (Loss) June 30, 2015: ABS 3 1 $4,026 $1,841 7 3 $ 15,937 $ 8,110 RMBS 6 — $28,305 $984 6 — $ 28,305 $ 984 There were no sales or redemptions during the three or six months ended June 30, 2016 . |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2016 | |
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) (3) As of June 30, 2016: CRE whole loans $ 1,428,656 $ (7,466 ) $ 1,421,190 Mezzanine loans (5) — — — Middle market loans 54,850 (365 ) 54,485 Residential mortgage loans, held for investment 2,641 — 2,641 Subtotal loans before allowance 1,486,147 (7,831 ) 1,478,316 Allowance for loan loss (1,436 ) — (1,436 ) Total loans held for investment, net of allowance 1,484,711 (7,831 ) 1,476,880 Middle market loans held for sale 259,179 — 259,179 Residential mortgage loans held for sale, at fair value (4) 161,129 — 161,129 Total loans held for sale 420,308 — 420,308 Total loans, net $ 1,905,019 $ (7,831 ) $ 1,897,188 As of December 31, 2015: Commercial real estate loans: Whole loans $ 1,640,744 $ (9,943 ) $ 1,630,801 B notes 15,934 — 15,934 Mezzanine loans 45,368 4 45,372 Total commercial real estate loans 1,702,046 (9,939 ) 1,692,107 Bank loans 134,890 (373 ) 134,517 Middle market loans 380,687 (1,235 ) 379,452 Residential mortgage loans, held for investment 1,746 — 1,746 Subtotal loans before allowance 2,219,369 (11,547 ) 2,207,822 Allowance for loan loss (47,071 ) — (47,071 ) Total loans held for investment, net of allowance 2,172,298 (11,547 ) 2,160,751 Bank loans held for sale 1,475 — 1,475 Residential mortgage loans held for sale, at fair value (4) 94,471 — 94,471 Total loans held for sale 95,946 — 95,946 Total loans, net $ 2,268,244 $ (11,547 ) $ 2,256,697 (1) Amounts included deferred amendment fees of $10,000 and deferred upfront fees of $0 being amortized over the life of the loans as of June 30, 2016 . Amounts include deferred amendment fees of $42,000 and deferred upfront fees of $12,000 being amortized over the life of the loans as of December 31, 2015 . Amounts also include loan origination fees of $7.4 million and $9.9 million as of June 30, 2016 and December 31, 2015 , respectively. (2) As a result of the consolidation guidance adopted January 1, 2016, the Company deconsolidated loans held for investment in the amount of $271.8 million of its CRE loans and $134.5 million of its bank loans and the related allowance for loan losses of $41.7 million ( see Note 2 ). (3) Substantially all loans are pledged as collateral under various borrowings at June 30, 2016 and December 31, 2015 , respectively. (4) Amortized cost approximates fair value. (5) The Company has one mezzanine loan with a par value of $28.8 million that was acquired at fair value as a result of the liquidation of RREF CDO 2006-1. Commercial Real Estate Loans The following is a s(in thousands): Description Quantity Amortized Cost Contracted Interest Rates Maturity Dates (3) As of June 30, 2016: Whole loans, floating rate (1) (3) (4) (5) (6) (7) 80 $ 1,421,190 LIBOR plus 2.50% to August 2016 to May 2019 Mezzanine loans (10) 1 — N/A September 2021 Total (2) (9) 81 $ 1,421,190 As of December 31, 2015: Whole loans, floating rate (1) (3) (4) (5) (6) (7) 87 $ 1,630,801 LIBOR plus 1.75% to February 2016 to February 2019 B notes, fixed rate 1 15,934 8.68% April 2016 Mezzanine loans, fixed rate (8) 2 45,372 9.01% September 2016 Total (2) 90 $ 1,692,107 (1) Whole loans had $78.8 million and $112.6 million in unfunded loan commitments as of June 30, 2016 and December 31, 2015 , 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 $1.4 million and $41.8 million as of June 30, 2016 and December 31, 2015 , respectively. (3) Maturity dates do not include possible extension options that may be available to the borrowers. (4) Includes two whole loans with a combined $11.2 million and $51.2 million senior component that entered into modifications in 2016 and 2015 that resulted in a fixed rate of 0.50% as of June 30, 2016 and December 31, 2015 , respectively (the difference of which was a result of the deconsolidation of RREF CDO 2006-1 and RREF CDO 2007-1 - see Note 2). The two loans were previously identified as troubled debt restructurings ("TDR's"). (5) Includes four whole loans with combined $4.5 million mezzanine components that have interest rates ranging from 1.4% to 5.2% as of June 30, 2016 and December 31, 2015 . (6) Includes a $799,000 junior mezzanine tranche of a whole loan that has a fixed rate of 10.0% as of June 30, 2016 and December 31, 2015 . (7) Contracted interest rates do not include a whole loan with an amortized cost of $2.0 million and $32.5 million that entered into a modification in 2016 and 2015 which reduced the floating rate spread to 1.00% as of June 30, 2016 and December 31, 2015 , respectively (the difference of which was a result of the deconsolidation of RREF CDO 2007-1 - see Note 2). The loan was previously identified as a TDR. (8) 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. (9) As a result of updated accounting guidance, effective January 1, 2016 ( see Note 2 ), the Company deconsolidated all of the assets of RREF CDO 2006-1 and RREF CDO 2007-1, resulting in the removal of $271.8 million of loans, pledged as collateral from its balance sheet. (10) As a result of RREF CDO 2006-1 being called and liquidated on April 25, 2016, a mezzanine loan with a par value of $28.8 million was acquired as part of the liquidation proceeds and is reflected on the Company's balance sheet at a fair value of zero at June 30, 2016 . The mezzanine loan is comprised of two tranches, with maturity dates of November 2016 and September 2021. The following is a summary of the weighted average maturity of the Company’s commercial real estate loans, at amortized cost (in thousands): Description 2016 2017 2018 and Thereafter Total As of June 30, 2016: Whole loans $ — $ 60,446 $ 1,360,744 $ 1,421,190 Mezzanine loans (2) — — — — Total (1) $ — $ 60,446 $ 1,360,744 $ 1,421,190 As of December 31, 2015: 2016 2017 2018 and Thereafter Total B notes $ 15,934 $ — $ — $ 15,934 Mezzanine loans 13,011 — 32,361 45,372 Whole loans 9,958 140,712 1,480,131 1,630,801 Total (1) $ 38,903 $ 140,712 $ 1,512,492 $ 1,692,107 (1) Contractual maturity of commercial real estate loans assumes full exercise of extension options available to borrowers. (2) The Company has one mezzanine loan with a par value of $28.8 million that was acquired at fair value as a result of the liquidation of RREF 2006-1. At June 30, 2016 , approximately 27.7% , 25.9% and 8.7% of the Company's commercial real estate portfolio was concentrated in Texas, California, and Georgia, respectively. At December 31, 2015 , approximately 28.7% , 26.8% , and 7.4% of the Company's commercial real estate loan portfolio was concentrated in California, Texas, and Georgia, respectively. Bank Loans The following table provides information as to the lien position and status of the Company's bank loans, at amortized cost (in thousands) prior to deconsolidation of Apidos Cinco CDO as of January 1, 2016: Apidos I Apidos Cinco Total As of December 31, 2015: Loans held for investment: First lien loans $ — $ 131,281 $ 131,281 Second lien loans — 1,692 1,692 Defaulted first lien loans — 1,544 1,544 Defaulted second lien loans — — — Total — 134,517 134,517 First lien loans held for sale at fair value 153 1,322 1,475 Total $ 153 $ 135,839 $ 135,992 At June 30, 2016 , the Company held no bank loans. At December 31, 2015 , the Company’s bank loan portfolio, including loans held for sale, consisted of $134.7 million (net of allowance of $1.3 million ) of floating rate loans, which bear interest ranging between the three month LIBOR plus 1.25% and the three month LIBOR plus 8% with maturity dates ranging from January 2016 to August 2021 . 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): December 31, Less than one year $ 3,922 Greater than one year and less than five years 128,480 Five years or greater 3,590 $ 135,992 At December 31, 2015 , approximately 13.5% , 13.0% and 9.6% of the Company’s bank loan portfolio was concentrated in the collective industry grouping of automobile, diversified/conglomerate service and retail stores, respectively. Middle Market Loans The following table provides information as to the lien position and status of middle market loans, at carrying value (in thousands): June 30, December 31, First Lien $ — $ 248,367 Second Lien 54,485 127,146 First lien loans held for sale, at fair value 188,378 — Second lien loans held for sale, at fair value 70,801 — $ 313,664 $ 375,513 At June 30, 2016 , the Company’s middle market loan portfolio consisted of $313.7 million of floating rate loans, which bear interest ranging between one or three month LIBOR plus 6.75% and one or three month LIBOR plus 12.00% with maturity dates ranging from June 2017 to July 2023 . At December 31, 2015 , the Company’s middle market loan portfolio consisted of $375.5 million (net of allowance of $3.9 million ) of floating rate loans, which bore interest ranging between one or three month LIBOR plus 6.25% and three month LIBOR plus 12.00% with maturity dates ranging from December 2016 to July 2023 . The following is a summary of the weighted average maturity of the Company’s middle market loans, at carrying value (in thousands): June 30, December 31, Less than one year $ 9,319 $ 14,960 Greater than one year and less than five years 210,385 250,709 Five years or greater 93,960 109,844 $ 313,664 $ 375,513 At June 30, 2016 and December 31, 2015 , approximately 14.7% and 12.8% , respectively, of the Company's middle market loan portfolio was concentrated in the collective industry grouping of diversified and conglomerate service and 15.6% and 12.4% , respectively, of the Company's middle market loan portfolio was concentrated in the collective industry grouping of healthcare, education, and childcare. Residential Mortgage Loans The Company originates and services residential mortgage loans through its indirect wholly-owned subsidiary PCM. PCM is an approved seller/servicer for the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Government National Mortgage Association and is licensed to originate loans insured by the Federal Housing Administration, the Department of Veterans Affairs and the United States Department of Agriculture and is licensed to transact business in 41 states. In order to maintain its licenses and status as an approved seller/servicer, PCM must meet certain capital requirements. PCM was in compliance with those capital requirements as of June 30, 2016 . Residential mortgage loans held for sale, at fair value, consisted of $116.4 million and $44.7 million of agency-conforming and jumbo mortgage loans (net of allowance of $11,000 ), respectively, as of June 30, 2016 . Residential mortgage loans held for sale, at fair value, consisted of $29.2 million and $65.3 million of agency-conforming and jumbo mortgage loans (net of allowance of $11,000 ), respectively, as of December 31, 2015 . During the quarter ended June 30, 2016 , approximately 40.2% of the Company's residential mortgage loans were originated in Georgia, 15.8% in Utah, 14.7% in California, 6.0% in Virginia, and 4.9% in Florida. During the year ended December 31, 2015 , approximately 44.9% of the Company's residential mortgage loans were originated in Georgia, 11.2% in Utah, 9.1% in Virginia, 4.4% in Florida, and 4.1% in Colorado. Allowance for Loan Losses 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 (in thousands): Description Allowance for Loan Loss Percentage of Total Allowance As of June 30, 2016: CRE whole loans $ 1,425 99.23% Mezzanine loans (2) — —% Middle market loans — —% Residential mortgage loans 11 0.77% Total (1) $ 1,436 As of December 31, 2015: B notes $ 15 0.03% Mezzanine loans 38,079 80.90% CRE whole loans 3,745 7.96% Bank loans 1,282 2.72% Middle market loans 3,939 8.37% Residential mortgage loans 11 0.02% Total $ 47,071 (1) As a result of amendments to consolidation accounting guidance adopted January 1, 2016, the Company deconsolidated loans held for investment in the amount of $271.8 million of its CRE loans and $134.5 million of its bank loans and the related allowance for loan losses of $41.7 million ( see Note 2 ). (2) The Company has one mezzanine loan with a par value of $28.8 million that was acquired at fair value as a result of the liquidation of RREF 2006-1. Principal Paydown Receivables 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, 2016 , the Company had $8.1 million principal paydown receivables, the entirety of which the Company received in cash during July 2016. At December 31, 2015 , principal paydown receivables relating to the Company's loan portfolio totaled $17.9 million , the entirety of which the Company received in cash during January 2016. |
INVESTMENTS IN UNCONSOLIDATED E
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 and December 31, 2015 and equity in earnings of unconsolidated subsidiaries for the three and six months ended June 30, 2016 and 2015 (in thousands): Equity in Earnings of Unconsolidated Subsidiaries Balance as of Balance as of For the For the six months ended For the For the six months ended Ownership % June 30, December 31, June 30, June 30, June 30, June 30, RRE VIP Borrower, LLC (1) —% $ — $ — $ 10 $ 35 $ — $ 46 Investment in LCC Preferred Stock 29.0% 44,361 42,017 933 2,344 350 402 Investment in CVC Global Credit Opportunities Fund (2) —% — — — — 312 920 Pearlmark Mezz IV L.P. (3) 47.4% 6,585 6,465 171 419 — — RCM Global, LLC (4) 25.4% 584 — 222 399 — — Pelium Capital Partners, L.P. (4) 80.2% 23,723 — 1,360 1,721 — — Subtotal 75,253 48,482 2,696 4,918 662 1,368 Investment in RCT I and II (5) 3.0% 1,548 1,548 (651 ) (1,292 ) (602 ) (1,195 ) Total $ 76,801 $ 50,030 $ 2,045 $ 3,626 $ 60 $ 173 (1) The investment in RRE VIP Borrower was sold as of December 31, 2014. Earnings for the three and six months ended June 31, 2016 and 2015 are related to insurance premium refunds and the liquidation of bank accounts with respect to the underlying sold properties of the portfolio. (2) In December 2015, the Company elected a full redemption of its remaining investment from the fund. (3) The Company has committed to invest up to $50.0 million in Pearlmark Mezzanine Realty Partners IV, L.P. The commitment termination date ends the earlier of when the original commitment is fully funded, or the fifth anniversary following the final closing date of June 24, 2015. (4) Pursuant to the new consolidation guidance adopted January 1, 2016, these previously consolidated VIEs are now accounted for under the equity method. (5) For the three and six months ended June 30, 2016 and 2015 , these amounts are recorded in interest expense on the Company's consolidated statements of operations. |
FINANCING RECEIVABLES
FINANCING RECEIVABLES | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
FINANCING RECEIVABLES | NOTE 9 - FINANCING RECEIVABLES The following tables show the allowance for loan and lease losses and recorded investments in loans and leases for the years indicated (in thousands): Commercial Real Estate Loans Bank Loans Middle Market Loans Residential Mortgage Loans Direct Financing Leases Total As of June 30, 2016: Allowance for Loan and Leases Losses: Allowance for losses at January 1, 2016 $ 41,839 $ 1,282 $ 3,939 $ 11 $ 465 $ 47,536 Provision (recovery) for loan and lease losses — 77 12,059 — — 12,136 Loans charged-off — (77 ) (15,998 ) — — (16,075 ) Recoveries — — — — — — Deconsolidation of VIEs (40,414 ) (1,282 ) — — — (41,696 ) Allowance for losses at June 30, 2016 $ 1,425 $ — $ — $ 11 $ 465 $ 1,901 Ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ 465 $ 465 Collectively evaluated for impairment $ 1,425 $ — $ — $ 11 $ — $ 1,436 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — Loans and Leases: Ending balance: Individually evaluated for impairment $ 38,133 $ — $ — $ — $ 1,130 $ 39,263 Collectively evaluated for impairment $ 1,383,057 $ — $ 54,485 $ 2,641 $ — $ 1,440,183 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — As of December 31, 2015: Allowance for Loan and Lease Losses: Allowance for losses at January 1, 2015 $ 4,043 $ 570 $ — $ — $ — $ 4,613 Provision for loan and lease losses 37,735 2,887 8,901 (99 ) 465 49,889 Loans charged-off — (2,175 ) (4,962 ) 110 — (7,027 ) Recoveries 61 — — — — 61 Allowance for losses at December 31, 2015 $ 41,839 $ 1,282 $ 3,939 $ 11 $ 465 $ 47,536 Ending balance: Individually evaluated for impairment $ 40,274 $ 1,282 $ — $ — $ 465 $ 42,021 Collectively evaluated for impairment $ 1,565 $ — $ 3,939 $ 11 $ — $ 5,515 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — Loans and Leases: Ending balance: Individually evaluated for impairment $ 169,707 $ 1,544 $ — $ — $ 1,396 $ 172,647 Collectively evaluated for impairment $ 1,522,400 $ 132,973 $ 379,452 $ 1,746 $ — $ 2,036,571 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — Credit quality indicators 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 to 5 with 1 representing the Company’s highest rating and 5 representing its lowest rating. Bank loans are first individually evaluated for impairment. To the extent no individual impairment is determined, a general reserve is established. The characteristics of each rating category are as follows: 1. Loans with a rating of 1 are considered performing within expectations. All interest and principal payments are current, all future payments are anticipated and loss is not probable; 2. Loans with a rating of a 2 are considered to have limited liquidity concerns and are watched closely. Loans identified in this category show remote signs of liquidity concerns, loss is not probable and therefore no reserve is established; 3. Loans with a rating of a 3 are considered to have possible future liquidity concerns. Loans identified in this category show some liquidity concerns, but the ability to estimate potential defaults is not quantifiable and therefore no reserve is established; 4. Loans with a rating of a 4 are considered to have nearer term liquidity concerns. These loans have a reasonable possibility of future default. However, the risk of loss is not assignable to one specific credit. The noted risk of the loans in this category is covered by general reserves; and 5. Loans with a rating of a 5 have defaulted in payment of principal and interest or default is imminent. It is probable that impairment has occurred on these loans based on their payment status and that impairment is estimable. The noted risk of the loans in this category is covered by specific reserves. 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 December 31, 2015: Bank loans $ 113,897 $ 17,578 $ 1,498 $ — $ 1,544 $ 1,475 $ 135,992 As of June 30, 2016 all of the Company's bank loans were deconsolidated (see Note 2). As of December 31, 2015 , all of the Company's bank loans were current with respect to debt service with the exception of one loan with an amortized aggregate cost of $1.5 million , on which there was a reserve. Middle Market Loans At inception, all middle market loans are graded at a 2. Updates to assigned grades are made continually as new information is received. Loans are graded on a scale of 1 to 5 with 1 representing the Company’s highest rating and 5 representing its lowest rating. Middle market loans are only evaluated individually for impairment. The characteristics of each rating category are as follows: 1. A loan with a rating of a 1 is considered performing above expectations and the likelihood of loss is remote; 2. A loan with a rating of a 2 is considered performing within expectations and the likelihood of loss is remote; 3. 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. Loans receiving this rating may be out of compliance with financial covenants; however, these loans are current with respect to interest and principal; 4. A loan with a rating of a 4 is considered performing below expectations and some loss of interest or dividend is expected but no loss of principal. In addition to the borrower being generally out of compliance with debt covenants, loan payments may be past due, but generally not more than 180 days past due; and 5. A loan with a rating of a 5 is considered performing substantially below expectations, in default and some loss of principal is expected. The borrower is out of compliance with most or all of the debt covenants and payments are substantially delinquent. 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, 2016: Middle market loans $ — $ 48,452 $ 6,033 $ — $ — $ 259,179 $ 313,664 As of December 31, 2015: Middle market loans $ 44,252 $ 305,578 $ 29,622 $ — $ — $ — $ 379,452 All of the Company’s middle market loans were current with respect to debt service as of June 30, 2016 and December 31, 2015 . Commercial Real Estate Loans Loans are graded at inception and updates to assigned grades are made continually as new information is received, as such, a loan previously rated 4 may, over time and with improved performance, be rated better than 4. Loans are graded on a scale of 1 to 4 with 1 representing the Company’s highest rating and 4 representing its lowest rating. Commercial real estate loans are first individually evaluated for impairment. To the extent no individual impairment is determined, a general reserve is established. The characteristics of each rating category are as follows: 1. A loan with a rating of a 1 is considered to have satisfactory performance with no issues noted. All interest and principal payments are current and the probability of loss is remote; 2. A loan is graded with a rating of a 2 if a surveillance trigger event has occurred, but loss is not probable at this time. Such trigger events could include but are not limited to a trending decrease in occupancy rates or a flattening of lease revenues; and to a lesser extent, ground lease defaults, ground lease expirations that occur in the next six months or the borrower is delinquent on payment of property taxes or insurance.; 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. Loans identified in this category show some liquidity concerns. However, the risk of loss is not specifically assignable to any individual loan. The noted risk of the loans in this category is generally covered by general reserves; 4. A loan with a rating of a 4 is considered to be in payment default or default is expected, full recovery of the unpaid principal balance is improbable and loss is considered probable. The noted risk of the loans in this category is covered by specific reserves. Credit risk profiles of commercial real estate loans were as follows (in thousands): Rating 1 (2) Rating 2 Rating 3 Rating 4 Held for Sale Total As of June 30, 2016: CRE whole loans $ 1,419,190 $ 2,000 $ — $ — $ — $ 1,421,190 Mezzanine loans (1) — — — — — — $ 1,419,190 $ 2,000 $ — $ — $ — $ 1,421,190 As of December 31, 2015: CRE whole loans $ 1,596,099 $ 32,500 $ — $ 2,202 $ — $ 1,630,801 B notes 15,934 — — — — 15,934 Mezzanine loans 7,300 — — 38,072 — 45,372 $ 1,619,333 $ 32,500 $ — $ 40,274 $ — $ 1,692,107 (1) The Company has one mezzanine loan with a par value of $28.8 million that was acquired at fair value as a result of the liquidation of RREF 2006-1. (2) Includes three and four loans which were impaired as of June 30, 2016 and December 31, 2015 , respectively. The Company had no delinquent commercial real estate loans as of June 30, 2016 . All of the Company's commercial real estate loans were current with exception of one mezzanine loan that had defaulted as of December 31, 2015 . This loan was deconsolidated as part of the Company's adoption of amendments to consolidation accounting guidance as required on January 1, 2016 (see Note 2). However, as a result of RREF CDO 2006-1 being called and liquidated on April 25, 2016, par value of $28.8 million of this mezzanine loan was acquired as part of the liquidation proceeds and is reflected on the Company's balance sheet at a fair value of zero at June 30, 2016 . 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. Direct Financing Leases During the year ended December 31, 2015, the Company recorded a provision against the value of the direct financing leases in the amount of $465,000 . As of June 30, 2016 , the Company held $665,000 of direct financing leases, net of reserves. Loan Portfolios Aging Analysis The following table presents the loan and lease portfolio aging analysis as of the dates indicated at amortized cost (in thousands): 30-59 Days 60-89 Days Greater than 90 Days Total Past Due Current Total Loans Receivable Total Loans > 90 Days and Accruing As of June 30, 2016: CRE whole loans $ — $ — $ — $ — $ 1,421,190 $ 1,421,190 $ — Mezzanine loans (3) — — — — — — — Middle market loans — — — — 54,485 54,485 — Direct Financing Leases — — 59 59 1,071 1,130 — Residential mortgage loans (1) — — 169 169 163,601 163,770 — Total loans $ — $ — $ 228 $ 228 $ 1,640,347 $ 1,640,575 $ — As of December 31, 2015: CRE whole loans (2) $ — $ — $ — $ — $ 1,630,801 $ 1,630,801 $ — B notes — — — — 15,934 15,934 — Mezzanine loans — 38,072 — 38,072 7,300 45,372 — Bank loans 1,544 — — 1,544 132,973 134,517 — Middle market loans — — — — 379,452 379,452 — Direct Financing Leases 12 214 — 226 1,170 1,396 — Residential mortgage loans (1) 27 41 80 148 96,069 96,217 — Total loans $ 1,583 $ 38,327 $ 80 $ 39,990 $ 2,263,699 $ 2,303,689 $ — (1) Contains $161.1 million and $94.5 million of residential mortgage loans held for sale at fair value at June 30, 2016 and December 31, 2015 , respectively. (2) Current loans include one impaired whole loan with an amortized costs of $2.2 million , which was fully reserved as of December 31, 2015 . (3) The Company has one mezzanine loan with a par value of $28.8 million that was acquired at fair value as a result of the liquidation of RREF 2006-1. Impaired Loans The following tables show impaired loans as of the dates indicated (in thousands): Recorded Balance (1) Unpaid Principal Balance Specific Allowance Average Investment in Impaired Loans Interest Income Recognized As of June 30, 2016: Loans without a specific valuation allowance: CRE whole loans $ 38,133 $ 38,133 $ — $ 38,133 $ 353 Mezzanine loans $ — $ — $ — $ — $ — Middle market loans $ — $ — $ — $ — $ — Residential mortgage loans $ — $ — $ — $ — $ — Loans with a specific valuation allowance: CRE whole loans $ — $ — $ — $ — $ — Mezzanine loans $ — $ — $ — $ — $ — Bank loans $ — $ — $ — $ — $ — Middle market loans $ — $ — $ — $ — $ — Residential mortgage loans $ — $ — $ — $ — $ — Total: CRE whole loans $ 38,133 $ 38,133 $ — $ 38,133 $ 353 Mezzanine loans — — — — — Middle market loans — — — — — Residential mortgage loans — — — — — $ 38,133 $ 38,133 $ — $ 38,133 $ 353 As of December 31, 2015: Loans without a specific valuation allowance: CRE whole loans $ 129,433 $ 129,433 $ — $ 128,591 $ 3,939 B notes $ — $ — $ — $ — $ — Mezzanine loans $ — $ — $ — $ — $ — Bank loans $ — $ — $ — $ — $ — Middle market loans $ — $ — $ — $ — $ — Residential mortgage loans $ — $ — $ — $ — $ — Loans with a specific valuation allowance: CRE whole loans $ 2,202 $ 2,202 $ (2,202 ) $ 2,202 $ 63 B notes $ — $ — $ — $ — $ — Mezzanine loans $ 38,072 $ 38,072 $ (38,072 ) $ 38,072 $ (2,879 ) Bank loans $ 1,544 $ 1,551 $ (1,282 ) $ 1,544 $ — Middle market loans $ — $ — $ — $ — $ — Residential mortgage loans $ — $ — $ — $ — $ — Total: CRE whole loans $ 131,635 $ 131,635 $ (2,202 ) $ 130,793 $ 4,002 B notes — — — — — Mezzanine loans 38,072 38,072 (38,072 ) 38,072 (2,879 ) Bank loans 1,544 1,551 (1,282 ) 1,544 — Middle market loans — — — — — Residential mortgage loans — — — — — $ 171,251 $ 171,258 $ (41,556 ) $ 170,409 $ 1,123 (1) As a result of the adoption of new consolidation accounting guidance as required on January 1, 2016, the Company deconsolidated $91.3 million in senior participations of four loans that were previously classified as impaired loans in the Company's consolidated financial statements as of December 31, 2015 (see Note 2). 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, 2016 CRE whole loans 3 $ 29,459 $ 29,459 Mezzanine loans — — — Middle market loans — — — Residential mortgage loans — — — Total loans 3 $ 29,459 $ 29,459 Number of Loans Pre-Modification Outstanding Recorded Balance Post-Modification Outstanding Recorded Balance Six Months Ended June 30, 2015 CRE whole loans 2 $ 67,459 $ 67,459 B notes — — — Mezzanine loans 1 38,072 — Bank loans — — — Middle market loans — — — Residential mortgage loans — — — Total loans 3 $ 105,531 $ 67,459 As of June 30, 2016 and 2015 , there were no commercial real estate loan troubled-debt restructurings that subsequently defaulted. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 6 Months Ended |
Jun. 30, 2016 | |
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 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. On December 15, 2015, the Company committed to an additional capital contribution in the amount of $1.3 million , increasing its ownership of LCF to 70.9% . The first installment of $750,000 was funded on January 5, 2016 and the second installment of $500,000 was funded June 30, 2016 . 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 guidance on business combinations, the Company confirmed that no further adjustments are necessary. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 $ 5,316 $ 90 $ 20,822 $ 26,228 Additions — — 8,362 8,362 Sales — — — — Amortization (802 ) — (2,262 ) (3,064 ) Total before impairment adjustment 4,514 90 26,922 31,526 Temporary impairment adjustment — — (4,800 ) (4,800 ) Balance, June 30, 2016 $ 4,514 $ 90 $ 22,122 $ 26,726 Management Contracts and Wholesale/Correspondent Relationships The Company recognized fee income on management contracts of $510,000 and $912,000 for the three and six months ended June 30, 2016 , respectively, and $896,000 and $1.9 million for the three and six months ended June 30, 2015 , respectively. For the three and six months ended June 30, 2016 the Company recorded amortization expense of $327,000 and $802,000 , respectively, in relation to the Company's management contracts. For the three and six months ended June 30, 2015 the Company recorded amortization expense of $512,000 and $1.0 million in relation to the Company's management contracts and wholesale/correspondent relationships, respectively. The Company expects to record amortization expense on its management contracts of approximately $1.5 million for the year ending December 31, 2016 , $1.3 million for the year ending December 31, 2017 , $1.2 million for the year ending December 31, 2018 , $514,000 for the year ending December 31, 2019 , and $515,000 for the year ending December 31, 2020 . The weighted average amortization period was 5.3 years and 5.8 years at June 30, 2016 and December 31, 2015 , respectively. Mortgage Servicing Rights Through the Company's wholly-owned residential mortgage loan 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. In accordance with guidance on servicing assets and liabilities, the Company utilizes the amortization method for the subsequent measurement of its MSRs. The total servicing portfolio was $2.6 billion and $2.0 billion as of June 30, 2016 and December 31, 2015 , respectively. MSRs recorded in the Company's consolidated balance sheets are related to the capitalized servicing portfolio and are created through the sale of originated residential mortgage loans. Amounts related to capitalized MSRs are recorded in net realized an unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives line item in the Company's statement of operations. Amounts related to temporary impairment adjustments are recorded in fee income in the Company's statement of operations. For the three and six months ended June 30, 2016 , the Company recognized $1.2 million and $2.3 million of amortization expense related to MSRs, respectively. For the three and six months ended June 30, 2015 , the Company recognized $1.0 million and $1.8 million , respectively. The Company expects to recognize amortization related to its MSRs portfolio in the amount of $ 4.7 million for the year ending December 31, 2016 , $3.9 million for the year ending December 31, 2017, $3.1 million for the year ending December 31, 2018, $2.6 million for the year ending December 31, 2019, and $2.2 million for the year ending December 31, 2020. The weighted average amortization period was 1.3 years and 1.2 years at June 30, 2016 and December 31, 2015 , respectively. The weighted average remaining life was 5.2 years and 6.7 years at June 30, 2016 and December 31, 2015 , respectively. The Company also records MSRs at fair value on a non-recurring basis. MSRs are recorded at fair value at inception and at the end of each reporting period if the fair value is less than unamortized cost. The Company uses a discounted cash flow approach to estimate the fair value of MSRs utilizing the valuation services of an independent third party. The key assumptions used in the estimation of the fair value of MSRs include prepayment speeds, discount rates, default rates, cost to service, contractual servicing fees and escrow earnings. The Company recorded temporary impairment of $2.3 million and $4.8 million for the three and six months ended June 30, 2016 . The fair value of MSRs was $22.0 million and $21.3 million at June 30, 2016 and December 31, 2015 , respectively. 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 $ 1,998,273 $ 894,767 Additions 752,329 1,236,145 Payoffs, sales and curtailments (162,102 ) (132,639 ) Balance, end of period $ 2,588,500 $ 1,998,273 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, 2016 2015 2016 2015 Servicing fees from capitalized portfolio $ 1,559 $ 911 $ 2,992 $ 1,462 Late fees $ 50 $ 18 $ 99 $ 41 Other ancillary servicing revenue $ 7 $ 3 $ 12 $ 7 |
BORROWINGS
BORROWINGS | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016: RCC CRE Notes 2013 Senior Notes $ 47,724 $ 419 $ 47,305 3.46% 12.5 years $ 86,307 RCC 2014-CRE2 Senior Notes 149,960 2,394 147,566 1.87% 15.8 years 266,977 RCC 2015-CRE3 Senior Notes 221,692 2,930 218,762 2.48% 15.7 years 283,354 RCC 2015-CRE4 Senior Notes 223,735 2,815 220,920 2.16% 16.1 years 309,729 Unsecured Junior Subordinated Debentures 51,548 27 51,521 4.58% 20.3 years — 6.0% Convertible Senior Notes 115,000 4,076 110,924 6.00% 2.4 years — 8.0% Convertible Senior Notes 100,000 4,045 95,955 8.00% 3.5 years — CRE - Term Repurchase Facilities (2) 282,863 1,583 281,280 2.78% 17 days 418,236 CMBS - Term Repurchase Facilities (3) 83,073 37 83,036 2.48% 244 days 119,531 Trust Certificate - Term Repurchase Facility (4) 26,655 357 26,298 5.95% 2.4 years 89,181 Residential Investments - Term Repurchase Facility (5) 888 — 888 3.00% 5 days 1,018 Residential Mortgage Financing Agreements (6) 146,764 — 146,764 3.07% 80 days 201,114 Senior Secured Revolving Credit Agreement (8) 144,000 — 144,000 3.22% 2.8 years 320,447 Total $ 1,593,902 $ 18,683 $ 1,575,219 3.31% 7.7 years $ 2,095,894 Principal Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Weighted Average Value of As of December 31, 2015: RREF CDO 2006-1 Senior Notes (1) $ 52,772 $ — $ 52,772 2.60% 30.6 years $ 94,379 RREF CDO 2007-1 Senior Notes (1) 91,752 — 91,752 1.65% 30.8 years 210,904 RCC CRE Notes 2013 Senior Notes 58,465 664 57,801 3.21% 13.0 years 104,439 RCC 2014-CRE2 Senior Notes 198,594 2,991 195,603 1.68% 16.3 years 313,663 RCC 2015-CRE3 Senior Notes 282,127 3,466 278,661 2.25% 16.2 years 341,099 RCC 2015-CRE4 Senior Notes 223,735 3,160 220,575 2.06% 16.6 years 308,042 Apidos Cinco CDO Senior Notes (1) 135,417 — 135,417 1.25% 4.4 years 154,584 Unsecured Junior Subordinated Debentures 51,548 135 51,413 4.40% 20.8 years — 6.0% Convertible Senior Notes 115,000 4,917 110,083 6.00% 2.9 years — 8.0% Convertible Senior Notes 100,000 4,599 95,401 8.00% 4.0 years — CRE - Term Repurchase Facilities (2) 225,346 2,418 222,928 2.64% 17 days 321,267 CMBS - Term Repurchase Facility (3) 25,658 2 25,656 1.57% 18 days 31,650 Trust Certificates - Term Repurchase Facility (4) 26,659 415 26,244 5.85% 2.9 years 89,181 Residential Investments - Term Repurchase Facility (5) 782 — 782 2.75% 264 days 835 Residential Mortgage Financing Agreements (6) 85,819 — 85,819 3.10% 257 days 120,952 CMBS - Short Term Repurchase Agreements (7) 57,407 — 57,407 2.06% 18 days 79,347 Senior Secured Revolving Credit Agreement (8) 190,000 3,026 186,974 3.09% 3.2 years 376,306 Total $ 1,921,081 $ 25,793 $ 1,895,288 2.89% 10.4 years $ 2,546,648 (1) On January 1, 2016, RREF CDO 2006-1, RREF CDO 2007-1 and Apidos Cinco CDO were deconsolidated in accordance with guidance on consolidation ( see Note 2 ). (2) Amounts also include accrued interest expense of $356,000 and $315,000 related to CRE repurchase facilities as of June 30, 2016 and December 31, 2015 , respectively. (3) Amounts also include accrued interest expense of $157,000 and $18,000 related to CMBS repurchase facilities as of June 30, 2016 and December 31, 2015 , respectively. Amounts do not reflect CMBS repurchase agreement borrowings that are components of linked transactions as of December 31, 2015 . (4) Amounts also include accrued interest expense of $57,000 and $61,000 related to trust certificate repurchase facilities as of June 30, 2016 and December 31, 2015 , respectively. (5) Amounts also include accrued interest expense of $26,000 and $30,000 related to residential investment facilities as of June 30, 2016 and December 31, 2015 , respectively. (6) The value of collateral related to residential mortgage financing agreements is the appraised value of the collateral underlying the residential mortgage loans subject to repurchase as of June 30, 2016 and December 31, 2015 . (7) Amounts also include accrued interest expense of $0 and $40,000 related to CMBS short term repurchase facilities as of June 30, 2016 and December 31, 2015 . (8) Subsequent to June 30, 2016, the Company entered into and closed on a purchase agreement to sell its interest in Northport TRS, LLC. As a result of the transaction, $2.6 million of amortization of the remaining deferred debt issuance costs related to the credit facility was accelerated and recorded as of June 30, 2016 ( see Note 24 ). The Company is in compliance with all covenants in the respective agreements as of June 30, 2016 . Securitizations The following table sets forth certain information with respect to the Company's consolidated securitizations: Securitization Closing Date Maturity Date End of Designated Principal Reinvestment Period (1) Total Note Paydowns as of June 30, 2016 (in millions) RCC CRE Notes 2013 December 2013 December 2028 N/A $ 213.1 RCC 2014-CRE2 July 2014 April 2032 July 2016 $ 85.3 RCC 2015-CRE3 February 2015 March 2032 February 2017 $ 60.4 RCC 2015-CRE4 August 2015 August 2032 August 2017 $ — (1) The designated principal reinvestment period is the period where principal payments received by each respective securitization may be designated by the Company to purchase funding participations of existing collateral originally underwritten at the close of each securitization, which was funded outside of the deal structure. 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, 2016 eliminate in consolidation. On January 1, 2016, the Company adopted the amendments to the consolidation guidance ( see Note 2 ). As a result of its evaluation, the Company deconsolidated RREF CDO 2006-1, RREF CDO 2007-1 and Apidos Cinco CDO. 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 (in thousands, except percentages): As of June 30, 2016 As of December 31, 2015 Outstanding Value of Number of Weighted Average Outstanding Value of Number of Weighted Average CMBS Term Wells Fargo Bank (1) $ 22,593 $ 28,204 20 1.67% $ 25,656 $ 31,650 21 1.57% Deutsche Bank (2) 60,443 91,327 20 2.78% — — — —% CRE Term Wells Fargo Bank (3) 159,276 234,122 13 2.56% 123,937 179,169 9 2.39% Morgan Stanley Bank (4) 122,004 184,114 10 3.06% 98,991 142,098 7 2.96% Trust Certificates Term Repurchase Facility RSO Repo SPE Trust 2015 (5) 26,298 89,181 1 5.95% 26,244 89,181 1 5.85% Short-Term Repurchase Wells Fargo Securities, LLC — — — —% 13,548 19,829 3 1.93% Deutsche Bank Securities, LLC — — — —% 43,859 59,518 17 2.10% Residential Investments Term Repurchase Facility Wells Fargo Bank 888 1,018 2 3.00% 782 835 1 2.75% Residential Mortgage New Century Bank 52,064 67,152 241 3.13% 43,789 61,111 199 3.17% Wells Fargo Bank 94,700 133,962 334 3.03% 42,030 59,841 166 3.03% Totals $ 538,266 $ 829,080 $ 418,836 $ 643,232 (1) The Wells Fargo Bank CMBS term repurchase facility includes $1,000 and $2,000 of deferred debt issuance costs as of June 30, 2016 and December 31, 2015 , respectively. (2) The Deutsche Bank CMBS term repurchase facility includes $36,000 and $0 of deferred debt issuance costs as of June 30, 2016 and December 31, 2015 , respectively. (3) The Wells Fargo Bank CRE term repurchase facility includes $163,000 and $675,000 of deferred debt issuance costs as of June 30, 2016 and December 31, 2015 , respectively. (4) The Morgan Stanley Bank CRE term repurchase facility includes $1.4 million and $1.7 million of deferred debt issuance costs as of June 30, 2016 and December 31, 2015 , respectively. (5) The RSO Repo SPE Trust 2015 term repurchase facility includes $357,000 and $415,000 of deferred debt issuance costs as of June 30, 2016 and December 31, 2015 , respectively. 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, 2016: CMBS Term Repurchase Facilities Wells Fargo Bank, National Association $ 5,533 18 days 1.67% Deutsche Bank AG $ 32,692 329 days 2.78% CRE Term Repurchase Facilities Wells Fargo Bank, National Association $ 74,444 18 days 2.56% Morgan Stanley Bank, National Association $ 60,571 15 days 3.06% Trust Certificates Term Repurchase Facility RSO Repo SPE Trust 2015 $ 62,576 2.4 years 5.95% Residential Investments Term Repurchase Facility Wells Fargo Bank, National Association $ 130 5 days 3.00% Residential Mortgage Financing Agreements New Century Bank $ 15,088 22 days 3.13% Wells Fargo Bank, National Association $ 39,262 59 days 3.03% As of December 31, 2015: CMBS Term Repurchase Facility Wells Fargo Bank, National Association $ 6,053 18 days 1.57% CRE Term Repurchase Facilities Wells Fargo Bank, National Association $ 54,674 18 days 2.39% Morgan Stanley Bank, National Association $ 41,248 15 days 2.96% Trust Certificates Term Repurchase Facility RSO Repo SPE Trust 2015 $ 62,575 2.9 years 5.85% Short-Term Repurchase Agreements - CMBS Wells Fargo Securities, LLC $ 6,288 11 days 1.93% Deutsche Bank Securities, LLC $ 16,330 20 days 2.05% Residential Investments Term Repurchase Facility Wells Fargo Bank, National Association $ 54 264 days 2.75% Residential Mortgage Financing Agreements New Century Bank $ 17,322 124 days 3.17% Wells Fargo Bank, National Association $ 17,811 134 days 3.03% (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. Residential Investments – Term Repurchase Facility In June 2014, the Company's wholly-owned subsidiaries, RCC Resi Portfolio, RCC Resi TRS, and RCC Resi Depositor (the “Sellers”) entered into a master repurchase and securities contract (the “2014 Facility”) with Wells Fargo Bank, NA ("Wells Fargo"). Under the 2014 Facility, from time to time, the parties may enter into transactions in which the Sellers and Wells Fargo agree to transfer from the Sellers to Wells Fargo all of their right, title and interest to certain residential mortgage backed securities and other assets against the transfer of funds by Wells Fargo to the Sellers, with a simultaneous agreement by Wells Fargo to transfer back to the Sellers such assets at a date certain or on demand, against the transfer of funds from the Sellers to Wells Fargo. In May 2016, the Company entered into a sixth amendment of the 2014 Facility that made no material changes to the facility's terms. In July 2016, the Company agreed to terminate the 2014 Facility. CMBS – Term Repurchase Facilities In May 2016, the Company's wholly-owned subsidiary RCC Real Estate entered into a global master repurchase agreement (the “2016 Facility”) with Deutsche Bank, AG (“DB”). Under the 2016 Facility, from time to time, the parties may enter into transactions in which RCC Real Estate and DB agree to transfer from the RCC Real Estate to DB all of their right, title and interest to certain CMBS and other assets (the "Assets") against the transfer of funds by DB to the RCC Real Estate, with a simultaneous agreement by DB to transfer back to the RCC Real Estate such Assets at a date certain, against the transfer of funds from the RCC Real Estate to DB. The maximum amount of the 2016 Facility is at DB's discretion and the minimum amount of the 2016 Facility is $50.0 million . The original term of the 2016 Facility is one year with subsequent one year extensions subject to DB's approval. The 2016 Facility includes a "makewhole" clause which entitles DB to the full original term's interest in the event of an optional termination. The 2016 Facility contains customary events of default, including payment defaults, acts of insolvency, breaches of certain representations, and expulsion from any securities exchange and/or self-regulating organization. The remedies for such events of default are also customary for this type of transaction and include the acceleration of all obligations of the RCC Real Estate to repay the purchase price for purchased assets. The 2016 Facility also contains margin call provisions relating to a decline in the market value of a security. Under these circumstances, DB may require the RCC Real Estate to transfer cash or securities in an amount sufficient to eliminate any margin deficit resulting from such a decline. Under the terms of the 2016 Facility and pursuant to a guarantee agreement dated May 23, 2016 (the “2016 Guaranty”), the Company guaranteed the payment and performance of (a) all payment obligations owing by the RCC Real Estate to DB under or in connection with the 2016 Facility and any other governing agreements; and (b) all expenses, including, without limitation, reasonable attorneys' fees and disbursements, that are incurred by DB in the enforcement of any of the foregoing or any obligation of the registrant. The 2016 Guaranty includes a reporting covenant with which the Company was in compliance as of June 30, 2016 . Residential Mortgage Financing Agreements In July 2014, PCM entered into a master repurchase agreement (the "Wells Fargo Facility") with Wells Fargo to finance the acquisition of residential mortgage loans. In May 2016, PCM amended its agreement with Wells Fargo to increase the maximum of the amount of the Wells Fargo Facility from $100.0 million to $115.0 million for the period from May 27, 2016 to June 26, 2016. In June 2016, PCM amended its agreement with Wells Fargo to increase the maximum of the amount of the Wells Fargo Facility from $115.0 million to $150.0 million . The maximum duration for jumbo loans was increased from 90 days to 270 days. No other material changes were made to the Wells Fargo Facility's terms. Contractual maturity dates of the Company's borrowings by category and year are presented in the table below (in thousands): Total 2016 2017 2018 2019 2020 and Thereafter CRE Securitizations $ 634,553 $ — $ — $ — $ — $ 634,553 Repurchase Agreements 538,266 451,525 60,443 26,298 — — Unsecured Junior Subordinated Debentures 51,521 — — — — 51,521 6.0 % Convertible Notes 110,924 — — 110,924 — — 8.0 % Convertible Notes 95,955 — — — — 95,955 Senior Secured Revolving Credit Facility 144,000 — — — 144,000 — Total $ 1,575,219 $ 451,525 $ 60,443 $ 137,222 $ 144,000 $ 782,029 |
SHARE ISSUANCE AND REPURCHASE
SHARE ISSUANCE AND REPURCHASE | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
SHARE ISSUANCE AND REPURCHASE | NOTE 13 - SHARE ISSUANCE AND REPURCHASE For the Six Months Ended Total Outstanding Number of Shares Repurchased Weighted Average Purchase Price Number of Shares Weighted Average Offering Price 8.50% Series A Preferred Stock — $ — 1,069,016 $ 24.29 8.25% Series B Preferred Stock 195,900 $ 15.80 5,544,579 $ 24.02 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 5,000,000 shares of common stock. During the three and six months ended June 30, 2016 , the Company sold approximately 3,000 and 6,000 shares of common stock through this program, resulting in proceeds of approximately $35,000 and $70,000 , respectively. Under a share repurchase plan authorized by the board of directors on August 3, 2015, the Company is authorized to repurchase up to $50.0 million of its outstanding equity and debt securities. During the six months ended June 30, 2016 , the Company repurchased approximately $8.0 million of its common stock, representing approximately 703,000 shares. Since the inception of the program through June 30, 2016 , the Company has repurchased $33.9 million of its common stock, representing approximately 2.7 million shares or 8.0% of the outstanding balance. During the six months ended June 30, 2016 , the Company repurchased approximately $3.1 million of its outstanding Series B preferred stock, representing approximately 196,000 shares or 3.4% of the initial outstanding balance. In March 2016, the Company's board of directors approved a new securities repurchase program for up to $50.0 million of its outstanding securities, which replaced the August 2015 repurchase plan. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 14 - SHARE-BASED COMPENSATION The following table summarizes the Company's restricted common stock transactions: Non-Employee Directors Non-Employees Employees Total Unvested shares as of January 1, 2016 15,267 617,657 58,445 691,369 Issued 23,193 230,338 50,784 304,315 Vested (13,895 ) (307,562 ) (18,452 ) (339,909 ) Forfeited — — — — Unvested shares as of June 30, 2016 24,565 540,433 90,777 655,775 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 at grant date of the unvested shares of restricted common stock granted to non-employees during the six months ended June 30, 2016 and 2015 , was $2.3 million and $4.9 million , respectively. The estimated fair value at grant date of unvested shares of restricted common stock issued to the Company’s seven non-employee directors during the six months ended June 30, 2016 and 2015 was $255,000 and $256,000 , respectively. The estimated fair value of the unvested shares of restricted common stock granted during the six months ended June 30, 2016 and 2015 , including the grant date fair value of shares issued to the Company’s employees, was $483,000 and $561,000 , respectively. The Company records 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, 2016 and 2015 was $64,000 and $128,000 and $64,000 and $129,000 , respectively. As of June 30, 2016 , the total unrecognized restricted common stock expense was $3.4 million , with a weighted average amortization period remaining of 2.1 years . The following table summarizes restricted common stock grants during the six months ended June 30, 2016 : Date Shares Vesting/Year Date(s) January 21, 2016 130,903 33.3% 1/21/17, 1/21/18, 1/21/19 January 21, 2016 50,784 33.3% 1/21/17, 1/21/18, 1/21/19 February 1, 2016 3,421 100% 2/1/17 February 5, 2016 90,595 33.3% 2/5/17, 2/5/18, 2/5/19 March 8, 2016 13,912 100% 3/8/17 March 14, 2016 3,158 100% 3/14/17 March 31, 2016 8,840 100% 5/15/17 (1) June 6, 2016 2,702 100% 6/6/17 (1) In connection with a grant of restricted common stock made on September 24, 2014 , the Company agreed to issue up to 17,682 shares of common stock if certain loan origination performance thresholds were achieved by personnel from the Company’s loan origination team. The performance criteria were measured at the end of two annual measurement periods which began 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 were not met, the accrued dividends would be forfeited. As a consequence, the Company did not record the dividend equivalent rights until earned. On March 31, 2016 , the final measurement period ended and 8,840 shares were earned. Approximately $42,000 of accrued dividend equivalent rights were paid in April 2016. These shares will vest over the subsequent 12 months at a rate of one-fourth per quarter. The following table summarizes the status of the Company’s vested stock options as of June 30, 2016 : 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, 2016 26,250 $ 46.60 Vested — — Exercised — — Forfeited — — Expired — — Vested as of June 30, 2016 26,250 $ 46.60 2.45 $ — There were no options granted during the six months ended June 30, 2016 or 2015 . The outstanding stock options have a contractual term of ten years, and will expire in May 2021. 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, 2016 2015 2016 2015 Restricted shares granted to non-employees (1) $ 1,288 $ 543 $ 1,713 $ 1,307 Restricted shares granted to employees 63 184 837 350 Restricted shares granted to non-employee directors 64 64 128 129 Total equity compensation expense $ 1,415 $ 791 $ 2,678 $ 1,786 (1) Non-employees are employees of Resource America. Under the Company's Management Agreement, incentive compensation is paid quarterly. Up to 75% of the incentive compensation is paid in cash and at least 25% is paid in the form of an award of common stock. There were no incentive fees paid to the Manager for the three and six months ended June 30, 2016 and 2015 . 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, 2016 . 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. In March 2016, this key employee ended his service period and all remaining amortization expense on unvested stock in the amount of $555,000 was accelerated. 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, 2016 , $63,000 and $837,000 of amortization of the stock grants was recorded to equity compensation expense, respectively. For the three and six months ended June 30, 2015 , $184,000 and $350,000 of amortization of the stock grants was recorded to equity compensation expense, respectively. For the three and six months ended June 30, 2016 , $38,000 and $76,000 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, 2015 , $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. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 15 - EARNINGS PER SHARE On August 3, 2015, the Company's board of directors approved a one-for-four reverse stock split of its outstanding common stock which took effect after the close of business on August 31, 2015. Outstanding share and per-share amounts disclosed as of June 30, 2016 and for all other comparative periods provided have been retroactively adjusted to reflect the effects of the stock split. 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, 2016 2015 2016 2015 Basic: Net income (loss) allocable to common shares $ (1,536 ) $ (31,011 ) $ 8,137 $ (21,609 ) Weighted average number of shares outstanding 30,410,451 32,852,316 30,505,428 32,833,426 Basic net income (loss) per share $ (0.05 ) $ (0.94 ) $ 0.27 $ (0.66 ) Diluted: Net income (loss) allocable to common shares $ (1,536 ) $ (31,011 ) $ 8,137 $ (21,609 ) Weighted average number of shares outstanding 30,410,451 32,852,316 30,505,428 32,833,426 Additional shares due to assumed conversion of dilutive instruments — — 218,844 — Adjusted weighted-average number of common shares outstanding 30,410,451 32,852,316 30,724,272 32,833,426 Diluted net income (loss) per share $ (0.05 ) $ (0.94 ) $ 0.26 $ (0.66 ) Potentially dilutive shares consisting of 324,524 and 381,106 shares of restricted stock are not included in the calculation of diluted net income (loss) per share for the three and six months ended June 30, 2016 , respectively, because the effect was anti-dilutive. Potentially dilutive shares consisting of 9,002,864 shares issuable in connection with the potential conversion of the Company's 6.0% and 8.0% Convertible Senior Notes ( see Note 12 ) for the three and six months ended June 30, 2016 were not included in the calculation of diluted net income (loss) per share because the effect was anti-dilutive. Potentially dilutive shares consisting of 349,880 and 305,878 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 9,002,864 shares issuable in connection with the potential conversion of the Company's 6.0% and 8.0% Convertible Senior Notes for both the three and six months ended June 30, 2015 were not included in the calculation of diluted net loss per share because the effect was anti-dilutive. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | NOTE 16 - ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME The following table presents the changes in each component of accumulated other comprehensive income for the six months ended June 30, 2016 (dollars in thousands): Net unrealized (loss) gain on derivatives Net unrealized (loss) gain on securities, Foreign Currency Translation Accumulated other comprehensive income (loss) January 1, 2016 $ (3,471 ) $ 2,568 $ (63 ) $ (966 ) Other comprehensive gain (loss) before reclassifications 117 1,936 — 2,053 Amounts reclassified from accumulated other (55 ) (332 ) — (387 ) June 30, 2016 $ (3,409 ) $ 4,172 $ (63 ) $ 700 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2016 | |
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 VIE. Resource America's 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. In December 2015, Resource America elected to early adopt consolidation guidance issued by the FASB in February 2015 (see Note 2) and was required to reevaluate whether or not the Company should be consolidated into Resource America’s financial statements. It was determined that the Company is no longer a VIE and Resource America will no longer consolidate the Company’s financial statements. On May 22, 2016 Resource America agreed to be acquired by C-III Capital Partners LLC ("C-III"), a leading commercial real estate services company engaged in a broad range of activities, including primary and special loan servicing, loan origination, fund management, CDO management, principal investment, investment sales and multifamily property management. As part of the transaction, C-III will assume the Company's management contract from Resource America and will acquire 715,396 shares of the Company's common equity ( 2.3% of outstanding the Company's shares) currently held by Resource America. The transaction is expected to close late in the third quarter or early in the fourth quarter of 2016. At June 30, 2016 , Resource America owned 715,396 shares, or 2.3% , of the Company’s outstanding common stock. On May 21, 2016, Resource America entered into a letter agreement with the Company pursuant to which the Company irrevocably waived its right to terminate the management agreement as a result of a “Change of Control” (as defined in the management agreement) resulting from the merger. Resource America agreed to pay $1.5 million to the Company at the closing of the merger. 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, 2016 the Manager earned base management fees of approximately $3.0 million and $6.9 million , respectively. For the three and six months ended June 30, 2015 the Manager earned base management fees of approximately and $3.4 million and $6.8 million , respectively. No incentive management fees were earned for the three and six months ended June 30, 2016 or 2015 . 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. The Company also reimburses Resource America for additional costs incurred related to the Company's life care business, Long Term Care Conversion Funding, established for the purpose of originating and acquiring life settlement contracts. The initial agreement, authorized in December 2012, provided for an annual fee of $550,000 , with a two -year term. In March 2015, the agreement was amended for an additional year through 2016. This fee is paid quarterly. For the three and six months ended June 30, 2016 the Company paid the Manager $1.5 million and $2.6 million , respectively, as expense reimbursements. For the three and six months ended June 30, 2015 the Company paid the Manager $1.6 million and $2.7 million , respectively, as expense reimbursements. On November 24, 2010, the Company entered into an Investment Management Agreement with Resource Capital Markets, Inc. (“RCM”), a wholly-owned subsidiary of Resource America. The initial agreement provided that: (a) RCM may invest up to $5.0 million of the Company’s funds, with the investable amount being adjusted by portfolio gains (losses) and collections, and offset by expenses, taxes and realized management fees, and (b) RCM can earn a management fee in any year that the net profits earned exceed a preferred return. On June 17, 2011, the Company entered into a revised Investment Management Agreement with RCM which provided an additional $8.0 million of the Company’s funds. The management fee is 20% of the amount by which the net profits exceed the preferred return. During the three and six months ended June 30, 2016 and 2015 , 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 holds $4.0 million in fair market value of trading securities as of June 30, 2016 , an increase of $300,000 from $3.7 million at fair market value as of December 31, 2015 . The Company also reimburses RCM for expenses paid on the Company's behalf. For the three and six months ended June 30, 2016 the Company paid RCM $0 and $8,000 , respectively, as expense reimbursements. For the three and six months ended June 30, 2015 the Company paid RCM $65,000 and $97,000 , respectively, as expense reimbursements. At June 30, 2016 , the Company was indebted to the Manager for $1.7 million , comprised of base management fees of $978,000 and expense reimbursements of $677,000 . At December 31, 2015 , the Company was indebted to the Manager for $2.5 million , comprised of base management fees of $978,000 and expense reimbursements of $1.6 million . At June 30, 2016 , the Company was indebted to RCM under the Company’s Investment Management Agreement for $127,000 , comprised entirely of expense reimbursements. At December 31, 2015 , the Company was indebted to RCM under the Company’s Investment Management Agreement for $152,000 , 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. The Company was indebted to RCM for $59,000 and $93,000 as of June 30, 2016 and December 31, 2015 , respectively, for the middle-market operations. 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 a person who subsequently became an employee of Resource America for $830,000 , paid in the form of 34,165 shares of restricted Company common stock. The restricted stock vests in full on November 7, 2016, and includes dividend equivalent rights. In May 2016, the Company made an €12.5 million investment in Harvest CLO XV, a European CLO with a total par value of €413.0 million with an unrelated third-party collateral manager. In connection with this transaction, the Company paid a $2.3 million structuring and placement fee for underwriting to Resource America. As of June 30, 2016 , the Company retained equity in eight securitizations, 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 securitizations' entities and their assets. The Company has since liquidated three of these securitizations, one in October 2013, one in October 2014 and another in June 2015. On January 1, 2016, the Company adopted new consolidation guidance on variable interest entities and, as a result, three of the Company's remaining securitizations were deconsolidated. 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. There was no provision taken during the three and six months ended June 30, 2016 . During the three and six months ended June 30, 2015 , the Company recorded a partial recovery of the previously taken provision in the amount $28,000 and $216,000 , respectively. As of June 30, 2016 , the Company held $665,000 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, 2016 the Company recorded income of $933,000 and $2.3 million , 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, 2015 the Company recorded income of $350,000 and $402,000 , respectively, which was recorded in equity in earnings of unconsolidated subsidiaries on the consolidated statements of operations. The Company’s investment in LCC was $44.4 million and $42.0 million as of June 30, 2016 and December 31, 2015 , 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 24% 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, 2016 CVC Credit Partners earned subordinated fees of $198,000 and $307,000 , respectively, and no incentive fees. For the three and six months ended June 30, 2015 CVC Credit Partners earned subordinated fees of $221,000 and $458,000 , respectively, and no incentive fees. 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 2013 two of the five CLOs were called and the notes were paid down in full. In January 2016 another RCAM-managed CLO was called and $2.4 million of the impairment, on a pre-tax basis, was recorded in depreciation and amortization on the Company's consolidated statements of operations on the related intangible asset as of December 31, 2015. In May, June and July 2013, the Company invested a total of $15.0 million in CVC Global Credit Opportunities Fund, L.P. which generally invests in assets through the Master Fund. The fund pays 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 , 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. In July 2015, a $625,000 withdrawal was requested and received. In October 2015, another $4.0 million withdrawal was requested and received. In December 2015, the Company elected to withdraw the remaining $8.6 million from the fund. The Company retained no investment in the fund as of December 31, 2015. 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. The Company reimburses Resource Real Estate for loan origination costs associated with all loans originated. The Company had a receivable in the amount of $0 and $2,500 due from Resource Real Estate for loan origination costs in connection with the Company’s commercial real estate loan portfolio as of June 30, 2016 and December 31, 2015 , respectively. 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. There were no fees incurred for the three and six months ended June 30, 2016 and 2015 , as the last property associated with the joint venture was sold in July 2014. For the three and six months ended June 30, 2016 the Company recorded income of $10,000 and $35,000 , 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, 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. The income recorded in 2016 and 2015 was related to insurance premium refunds and the liquidation of bank accounts with respect to the underlying sold properties of the portfolio. 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 bore interest at a fixed rate of 8.0% per annum on the unpaid principal balance. In the event of default, interest accrued at a rate of 5.0% in excess of the fixed rate. Interest was payable quarterly. Mandatory principal payments were required to the extent distributable cash or other proceeds from RRE Opportunity Fund 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 was paid in full in April 2015 . The Company has closed the following four real estate securitization transactions, which provide financing for commercial real estate loans: RCC CRE Notes 2013, a $307.8 million securitization in December 2013; RCC 2014-CRE2, a $353.9 million securitization on July 30, 2014; RCC 2015-CRE3, a $346.2 million securitization on February 24, 2015; and RCC 2015-CRE4, a $312.9 million securitization on August 18, 2015. Resource Real Estate serves as special servicer for each transaction. 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 placement agent fees in connection with each transaction as follows: $205,000 , $175,000 , $100,000 , and $85,000 , respectively. In July 2014, the Company formed RCM Global Manager to invest in RCM Global, an entity formed to hold a portfolio of structured product securities. The Company contributed $15.0 million for a 63.8% membership interest in RCM Global. A five member board manages RCM Global, and all actions, including purchases and sales, must be approved by no less than three of the five members of the board. The portion of RCM Global that the Company does not own is presented as non-controlling interests as of the dates and for the periods presented in the Company's consolidated financial statements. All intercompany accounts and transactions have been eliminated in consolidation. In 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 $5.0 million of net gains for the year ended December 31, 2015. During the six months ended June 30, 2016 RCC Residential received a cash distribution in the amount of $599,000 . The Company's ownership interest decreased to 25.9% as of June 30, 2016 . On January 1, 2016, the Company adopted new consolidation guidance on variable interest entities and, as a result, the Company deconsolidated RCM Global and now accounts for this investment as an investment in unconsolidated entities on the consolidated balance sheet ( see Note 2 ). For the three and six months ended June 30, 2016 , the Company recorded earnings of $222,000 and $399,000 which was recorded in equity in earnings of unconsolidated subsidiaries on the consolidated statements of operations, respectively. 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 were eliminated in consolidation as of December 31, 2015. The Company's ownership interest in Pelium Capital was 80.2% as of June 30, 2016 . On January 1, 2016, the Company adopted new consolidation guidance on variable interest entities and, as a result, the Company deconsolidated Pelium Capital and now accounts for this investment as an investment in unconsolidated entities on the consolidated balance sheet ( see Note 2 ). For the three and six months ended June 30, 2016 , the Company recorded earnings of $1.4 million and $1.7 million which was recorded in equity in earnings of unconsolidated subsidiaries on the consolidated statements of operations, respectively. 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. On June 24, 2015, the Company committed to invest up to $50.0 million in Pearlmark Mezzanine Realty Partners IV, L.P. ("Pearlmark Mezz IV L.P."), a Delaware limited partnership. The contractual fund manager of the fund is Pearlmark Real Estate LLC ("Pearlmark"), a Delaware limited liability company that is 50% owned by Resource America. The Company will pay Pearlmark Mezz IV L.P management fees of 1.0% on the unfunded committed capital and 1.5% on the invested capital. The Company is entitled to a management fee rebate of 25% for the first year of the fund. As of June 30, 2016 , the Company is indebted for $193,000 for management fees, net of the rebate. Resource America has agreed that it will credit any such fees paid by the Company to Pearlmark against the base management fee that the Company pays to Resource America. The Company has invested an aggregate of $7.6 million in capital in Pearlmark Mezz IV L.P. For the three and six months ended June 30, 2016 , the Company recorded earnings of $171,000 and $419,000 which was recorded in equity in earnings of unconsolidated subsidiaries on the consolidated statements of operations. As of June 30, 2016 , the Company has an investment balance of $6.6 million and a 47.4% ownership interest in the fund. 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, 2016 the Company paid Ledgewood $72,000 and $168,000 , respectively, in connection with legal services rendered to the Company. 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. |
DISTRIBUTIONS
DISTRIBUTIONS | 6 Months Ended |
Jun. 30, 2016 | |
DISTRIBUTIONS [Abstract] | |
DISTRIBUTIONS | NOTE 18 - DISTRIBUTIONS For the quarter ended June 30, 2016 , the Company declared and subsequently paid a dividend of $0.42 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 2016 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 present dividends declared (on a per share basis) for the three and six months ended June 30, 2016 and for the year ended December 31, 2015 : Common Stock Date Paid Total Dividend (in thousands) 2016 March 31 April 28 $ 13,073 $ 0.42 June 30 July 28 $ 13,051 $ 0.42 2015 March 31 April 28 $ 21,444 $ 0.64 June 30 July 28 $ 21,426 $ 0.64 September 30 October 28 $ 20,667 $ 0.64 December 31 January 28, 2016 $ 13,274 $ 0.42 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) 2016 March 31 May 2 $ 568 $ 0.531250 May 2 $ 2,859 $ 0.515625 May 2 $ 2,588 $ 0.539063 June 30 August 1 $ 568 $ 0.531250 August 1 $ 2,859 $ 0.515625 August 1 $ 2,588 $ 0.539063 2015 March 31 April 30 $ 568 $ 0.531250 April 30 $ 2,960 $ 0.515625 April 30 $ 2,588 $ 0.539063 June 30 July 30 $ 568 $ 0.531250 July 30 $ 2,960 $ 0.515625 July 30 $ 2,588 $ 0.539063 September 30 October 30 $ 568 $ 0.531250 October 30 $ 2,960 $ 0.515625 October 30 $ 2,588 $ 0.539063 December 31 February 1, 2016 $ 568 $ 0.531250 February 1, 2016 $ 2,960 $ 0.515625 February 1, 2016 $ 2,588 $ 0.539063 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016: Assets: Investment securities, trading $ — $ — $ 3,982 $ 3,982 Investment securities available-for-sale — 2,017 253,263 255,280 Loans held for sale — 116,385 44,744 161,129 Derivatives — 722 5,411 6,133 Total assets at fair value $ — $ 119,124 $ 307,400 $ 426,524 Liabilities: Derivatives $ — $ 3,035 $ 49 $ 3,084 Total liabilities at fair value $ — $ 3,035 $ 49 $ 3,084 As of December 31, 2015: Assets: Investment securities, trading $ — $ — $ 25,550 $ 25,550 Investment securities available-for-sale — 4,451 203,637 208,088 Loans held for sale — 66,588 29,358 95,946 Derivatives (net) — 826 2,620 3,446 Total assets at fair value $ — $ 71,865 $ 261,165 $ 333,030 Liabilities: Derivatives $ — $ — $ 3,941 $ 3,941 Total liabilities at fair value $ — $ — $ 3,941 $ 3,941 The Company's residential mortgage loan portfolio included in loans held for sale 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 for similar assets 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 based upon the fair value of securities backed by similar mortgage loans, adjusted for certain factors to approximate the fair value of a whole mortgage loan including the value attributable to servicing rights and credit risk. Loans are adjusted for spread to agency mortgage back securities of similar mortgage loans, at rates ranging between 0.7% and 7.0% . The fair value of interest rate lock commitments ("IRLCs") is estimated as the fair value of the of the underlying mortgage loan to be sold, which is based on quoted mortgage-backed securities ("MBSs") prices, plus the estimated fair value of the mortgage servicing rights, less the price committed to the borrower or mortgage lender and direct origination costs, adjusted for the probability that the mortgage will fund ("pull-through" rate). The estimated pull-through rate is based on the Company's historical data. IRLCs are included in derivatives on the Company's consolidated balance sheets. The average pull-through percentage used in measuring the fair value of IRLCs as of June 30, 2016 was 81.9% for assets and 68.1% for liabilities. The pull-through percentage is considered a significant unobservable input and is estimated based on changes in pricing and actual borrower behavior using a historical analysis of loan closing data. Generally, a change in interest rates is accompanied by a directionally opposite change in the assumption used for the pull-through percentage, and the impact to fair value of a change in pull-through would be partially offset by the related change in price. Forwards - residential mortgage loans fix the forward sales price that will be realized upon the sale of mortgage loans into the secondary market. The fair value of forward delivery commitments is primarily based upon the current agency mortgage-backed security market to-be-announced pricing specific to the loan program, delivery coupon and delivery date of the trade. Best effort sales commitments are also executed for certain loans at the time the borrower commitment is made. These best effort sales commitments are valued using the committed price to the counterparty against the current market price of the interest rate lock commitment or mortgage loan held for sale. Forwards are included in derivatives on the Company's consolidated balance sheets. As part of the origination of a certain middle market loan, the Company received warrants as consideration at the loan's origination.The fair value of the warrants was $850,000 and calculated by performing a Black-Scholes analysis and the significant unobservable inputs were a measure of 50.0% for the annual volatility over the term of the warrants and a market capitalization of $172.7 million . In accordance with guidance on fair value measurements and disclosures, 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 for investment securities trading and investment securities available for sale from third-party pricing sources. 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 ABS Structured Loans Held for Sale Warrants Interest Rate Lock Commitments Forwards - Residential Mortgage Loans Total Balance, January 1, 2016 $ 159,424 $ 44,213 $ 25,550 $ 29,358 $ 1,051 $ 1,224 $ 345 $ 261,165 Included in earnings (1) (302 ) 295 328 (330 ) (198 ) 14,165 (199 ) 13,759 Purchases/Originations 5,138 44,700 — 77,745 — — — 127,583 Sales — (67,639 ) — (60,595 ) — — — (128,234 ) Paydowns (19,283 ) (27,837 ) (140 ) (1,434 ) — — — (48,694 ) Issuances — — — — — — — — Settlements — — 96 — — (10,992 ) 15 (10,881 ) Capitalized Interest — 8,437 — — — — — 8,437 Included in OCI (1,043 ) (9,218 ) — — — — — (10,261 ) Deconsolidation of VIEs (55,776 ) 172,154 (21,852 ) — — — — 94,526 Transfers into Level 3 — — — — — — — Balance, June 30, 2016 $ 88,158 $ 165,105 $ 3,982 $ 44,744 $ 853 $ 4,397 $ 161 $ 307,400 (1) Structured finance securities, loans held for sale, interest rate lock commitments, and forwards on residential mortgage loans include $328,000 , $(3,400) , $0 , and $(8,000) , respectively, in earnings attributable to the change in unrealized gains or (losses) relating to assets still held at the reporting date for the six months ended June 30, 2016 . 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 Forwards - Residential Mortgage Loans Interest Rate Lock Commitments Total Beginning balance, January 1, 2016 $ 3,459 $ 479 $ 3 $ 3,941 Included in earnings 50 (252 ) 67 (135 ) Settlements — (214 ) (34 ) (248 ) Unrealized gains - included in accumulated other comprehensive income (3,509 ) — — (3,509 ) Ending balance, June 30, 2016 $ — $ 13 $ 36 $ 49 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, 2016: Assets : Loans held for sale $ — $ 2,564 $ 256,615 $ 259,179 Impaired loans — — 38,133 38,133 Mortgage servicing rights — — 20,560 20,560 Total assets at fair value $ — $ 2,564 $ 315,308 $ 317,872 As of December 31, 2015: Assets : Loans held for sale $ — $ 1,279 $ 153 $ 1,432 Impaired loans — 262 129,433 129,695 Total assets at fair value $ — $ 1,541 $ 129,586 $ 131,127 Loans held for sale consist of middle market loans identified for sale. The fair value of Level 2 middle market loans held for sale are based on quoted market prices for similar assets or upon other observable inputs. The fair value of Level 3 middle market loans held for sale may be determined using a market or income approach methodology, both of which may require significant judgment or estimation for factors such as EBITA multiples, market capitalization rates or discount rates, depending on the methodology used. The following unobservable inputs were used in the determination of fair value with respect to Level 3 middle market loans at June 30, 2016: market yields ranged from 9.0% to 14.7% and EBITDA multiples ranged from 6.0 x - 11.8 x . Impaired loans consist of CRE loans for which an impairment analysis was conducted during the period. For the Company’s CRE loans for which 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. For the three and six months ended June 30, 2016 there were no nonrecurring fair value losses for specifically impaired loans. 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 loans held for sale for the three and six months ended June 30, 2016 were $14.5 million and $14.5 million , respectively. The amounts of nonrecurring fair value losses for loans held for sale for the three and six months ended June 30, 2015 were $86,000 and $806,000 , respectively. 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 Note 5 . The fair values of the Company’s investment securities available-for-sale are reported in Note 6 . The fair values of the Company’s derivative instruments are reported in Note 20 . 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. CDO notes are valued using dealer quotes, typically the dealer who underwrote the CDO in which the notes are held. Junior subordinated notes are estimated by discounted cash flows with discount rates of 13.28% and 13.29% used in the evaluation of RCT I and RCT II, respectively. Repurchase agreements and the senior secured revolving credit agreement are variable rate debt instruments indexed to LIBOR that reset periodically and, as a result, their carrying value approximates their fair value. The fair value of the convertible notes was determined using a discounted cash flow model that discounts the expected future cash flows using current interest rates on similar debts that do not have a conversion option. The 6.0% Convertible Senior Notes are discounted at a rate of 7.00% and the 8.0% Convertible Senior Notes are discounted at a rate of 8.60% . The fair value of the CRE portfolio was determined using a discounted cash flow model that discounts the expected future cash flows at current rates at which similar loans would be made to borrowers with similar credit ratings and with the same remaining maturities. Discount rates used range between 15%-25% . 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, 2016: Loans held-for-investment $ 1,476,880 $ 1,471,811 $ — $ 51,602 $ 1,420,209 CDO notes $ 634,553 $ 628,499 $ — $ — $ 628,499 Junior subordinated notes $ 51,521 $ 24,369 $ — $ — $ 24,369 Convertible notes $ 206,879 $ 215,000 $ — $ — $ 215,000 Repurchase agreements $ 537,670 $ 539,648 $ — $ — $ 539,648 Senior secured revolving credit agreement $ 144,000 $ 144,000 $ — $ — $ 144,000 As of December 31, 2015: Loans held-for-investment $ 2,160,751 $ 2,150,061 $ — $ 222,100 $ 1,927,961 CDO notes $ 1,032,581 $ 923,817 $ — $ — $ 923,817 Junior subordinated notes $ 51,413 $ 17,907 $ — $ — $ 17,907 Convertible notes $ 205,484 $ 205,484 $ — $ — $ 205,484 Repurchase agreements $ 418,836 $ 418,836 $ — $ — $ 418,836 Senior secured revolving credit agreement $ 186,974 $ 186,974 $ — $ — $ 186,974 |
MARKET RISK AND DERIVATIVE INST
MARKET RISK AND DERIVATIVE INSTRUMENTS | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
MARKET RISK AND DERIVATIVE INSTRUMENTS | 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 and 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 (residential mortgage lending), securities (TBA securities) or a quantity of a currency (foreign currency hedging) 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. 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. On January 1, 2016, RREF CDO 2006-1 and RREF CDO 2007-1 were deconsolidated in accordance with new guidance on consolidation of VIEs ( see Note 2 ). The Company deconsolidated six interest rate swap contracts as part of the deconsolidation. The aggregate notional amount of these deconsolidated interest rate swaps was $99.9 million at January 1, 2016. During the three months ended June 30, 2016, the Company requested and canceled its remaining interest rate swap contract through accumulated other comprehensive income (loss), to be amortized through earnings over the life of the remaining debt. As of June 30, 2016 , the Company had no interest rate swap contracts outstanding. The Company had master netting agreements with Credit Suisse International and Wells Fargo at June 30, 2016 . 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 satisfy potential future obligations. As of June 30, 2016 , there were no centrally cleared interest rate swap contracts. The Company classifies its 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, 2015 , the Company had nine interest rate swap contracts outstanding whereby the Company paid an average fixed rate of 5.38% and received a variable rate equal to one-month LIBOR . The aggregate notional amount of these contracts was $102.8 million at December 31, 2015 . 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 $0 and $3.5 million as of June 30, 2016 and December 31, 2015 , respectively. The Company had aggregate unrealized losses of $67,000 and $3.5 million on the interest rate swap agreements as of June 30, 2016 and December 31, 2015 , respectively, which is recorded in accumulated other comprehensive income and a portion is recognized through earnings. The amortization is reflected in interest expense in the Company’s consolidated statements of operations. The Company is also exposed to foreign 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, to a lesser extent, 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 foreign currency forward contracts. The Company classifies these hedges as fair value hedges, which are hedges that mitigate 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 hedged 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 certain 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 periods presented: Fair Value of Derivative Instruments as of June 30, 2016 (in thousands) Asset Derivatives Notional Amount Balance Sheet Location Fair Value Interest rate lock agreements $ 270,487 Derivatives, at fair value $ 4,397 Forward contracts - residential mortgage lending $ 60,857 Derivatives, at fair value $ 161 Forward contracts - foreign currency, hedging (1)(2) $ 26,640 Derivatives, at fair value $ 722 Warrants (3) $ 553 Derivatives, at fair value $ 853 Liability Derivatives Notional Amount Balance Sheet Location Fair Value Interest rate lock agreements $ 2,646 Derivatives, at fair value $ 36 Forward contracts - residential mortgage lending $ 363,721 Derivatives, at fair value $ 2,881 Forward contracts - TBA securities $ 41,000 Derivatives, at fair value $ 167 Interest rate swap contracts, hedging $ — Accumulated other comprehensive (income) loss $ 67 (1) Foreign currency forward contracts are accounted for as fair value hedges. (2) Notional amount presented on currency converted basis. The base currency notional amount of the Company's foreign currency hedging forward contracts was €24.0 million as of June 30, 2016 . (3) The notional amount of the Company's warrants is calculated by multiplying the number of shares available for purchase by exercise price. Fair Value of Derivative Instruments as of December 31, 2015 (in thousands) Asset Derivatives Notional Amount Balance Sheet Location Fair Value Interest rate lock agreements (1) $ 105,385 Derivatives, at fair value $ 1,224 Forward contracts - residential mortgage lending $ 92,413 Derivatives, at fair value $ 345 Forward contracts - foreign currency, hedging (2)(3) $ 24,850 Derivatives, at fair value $ 727 Forward contracts - TBA securities $ 29,500 Derivatives, at fair value $ 99 Warrants (4) $ 553 Derivatives, at fair value $ 1,051 Liability Derivatives Notional Amount Balance Sheet Location Fair Value Interest rate swap contracts, hedging (5) $ 102,799 Derivatives, at fair value $ 3,459 Interest rate lock agreements (6) $ 505 Derivatives, at fair value $ 3 Forward contracts - residential mortgage lending $ 143,553 Derivatives, at fair value $ 479 Forward contracts - TBA securities $ 1,500 Derivatives, at fair value $ — Interest rate swap contracts, hedging $ 102,799 Accumulated other comprehensive (income) loss $ (3,471 ) (1) The notional amount of the Company's interest rate lock agreements in an asset position is the pull-through weighted total commitments with a weighted average pull-through percentage of 85.9% . (2) Notional amount presented on currency converted basis. The base currency notional amount of the Company's foreign currency hedging forward contracts was €22.9 million as of December 31, 2015 . (3) Foreign currency forward contracts are accounted for as fair value hedges. (4) The notional amount of the Company's warrants is calculated by multiplying the number of shares available for purchase by the exercise price. (5) Interest rate swap contracts are accounted for as cash flow hedges. (6) The notional amount of the Company's interest rate lock agreements in a liability position is the pull-through weighted total commitments with a weighted average pull-through percentage of 19.5% . The Effect of Derivative Instruments on the Statements of Operations for the Six Months Ended June 30, 2016 (in thousands) Derivatives Statement of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (70 ) Interest rate lock agreements Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 3,141 Forward contracts - residential mortgage lending Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ (2,587 ) Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ (62 ) Forward contracts - TBA securities Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ (830 ) (1) Negative values indicate a decrease to the associated consolidated statements of operations line items. 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 consolidated statements of operations line items. |
OFFSETTING OF FINANCIAL ASSETS
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | 6 Months Ended |
Jun. 30, 2016 | |
Offsetting [Abstract] | |
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | NOTE 21 - OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES 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, 2016: Derivative hedging instruments, at fair value $ 6,133 $ — $ 6,133 $ — $ — $ 6,133 Total $ 6,133 $ — $ 6,133 $ — $ — $ 6,133 As of December 31, 2015: Derivative hedging instruments, at fair value $ 3,446 $ — $ 3,446 $ — $ — $ 3,446 Total $ 3,446 $ — $ 3,446 $ — $ — $ 3,446 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, 2016: Derivative hedging instruments, $ 3,084 $ — $ 3,084 $ — $ — $ 3,084 Repurchase agreements and term facilities (4) 538,266 — 538,266 538,266 — — Total $ 541,350 $ — $ 541,350 $ 538,266 $ — $ 3,084 As of December 31, 2015: Derivative hedging instruments, (3) $ 3,941 $ — $ 3,941 $ — $ 500 $ 3,441 Repurchase agreements and term facilities (4) 418,836 — 418,836 418,836 — — Total $ 422,777 $ — $ 422,777 $ 418,836 $ 500 $ 3,441 (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 $500,000 at December 31, 2015 . (4) The combined fair value of securities and loans pledged against the Company's various term facilities and repurchase agreements was $829.1 million and $643.2 million at June 30, 2016 and December 31, 2015 , 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 agreements 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, 2016 | |
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. In September 2015, Daren Levin filed a putative class action in the United States District Court for the Southern District of New York on behalf of all persons who purchased the Company's common stock between March 2, 2015 and August 4, 2015. In November 2015, the Court appointed Douglas Drees as the lead plaintiff in the action, and thereafter entered a stipulation and order directing the lead plaintiff to file an amended complaint. In February 2016, the lead plaintiff filed an amended complaint, alleging that the Company and certain of its officers and directors materially misrepresented certain risks of its commercial loan portfolio and its processes and controls for assessing the quality of its portfolio. Based on these allegations, the amended complaint asserts claims for violation of the securities laws and seeks a variety of relief, including unspecified monetary damages as well as costs and attorneys’ fees. The Company believes the amended complaint is without merit and intends to defend itself vigorously. In April 2016, the Company filed a motion to dismiss the amended complaint, which remains pending. In December 2015, Josh Reaves filed a shareholder derivative suit in the Supreme Court of New York alleging that the Company's directors and certain officers breached their fiduciary duties by causing the Company to misrepresent certain risks in its commercial loan portfolio, by failing to employ adequate internal and financial controls, and by failing to disclose the alleged internal control deficiencies. The complaint purports to seek relief on behalf of the Company for unspecified damages as well as costs and attorneys’ fees. The Company believes that the plaintiff, who failed to make a pre-suit demand on the board of directors, lacks standing to assert claims derivatively on the Company's behalf, and the Company intends to respond accordingly. In April 2016, the parties entered into a stipulation staying this proceeding until such time as the court has ruled on the pending motion to dismiss the Levin action referenced above or certain other triggering events occur. PCM is a party to various claims and legal proceedings at various times. If PCM believes that a loss arising from any of these matters is probable and can be reasonably estimated, the loss is recorded. Some of these claims may relate to claims for repurchases or indemnifications on loans that PCM has sold to investors. Such claims are included in the reserve for mortgage repurchases and indemnifications. There was no additional accrual for litigation outcomes as of June 30, 2016 or December 31, 2015. On May 13, 2014, ResCap Liquidating Trust (“ResCap”), as successor to Residential Funding Company, LLC (“RFC”), filed an adversary proceeding against PCM in United States Bankruptcy Court of the Southern District of New York. ResCap has sued some 90 sellers of residential mortgage loans for alleged breaches of warranty in various loans sold to RFC. RFC contends that such breaches caused it damages from loan losses and liability to other transferee's of the loans. The case remains pending and has been consolidated with other cases for discovery and pre-trial purposes. PCM intends to defend the action vigorously. Loans on one-to-four family residential mortgages originated by PCM are sold to various financial institutions and governmental entities with representations and warranties that are usual and customary for the industry. In the event of a breach of any of the representations and warranties related to a loan sold, PCM may be required to indemnify the investor against future losses, repurchase the mortgage loan or reimburse the investor for actual losses incurred (referred to as “make whole payments”). The maximum exposure to credit loss in the event of an indemnification or loan repurchase would be the unpaid principal balance of the loan along with any premium paid by the investor when the loan was purchased, accrued but unpaid interest and other minor cost reimbursements. This maximum exposure is at least partially mitigated by the value of the collateral underlying the mortgage loan. As of June 30, 2016 , outstanding demands for indemnification, repurchase or make whole payments totaled approximately $20.5 million , of which a substantial portion related to loans sold to four investors prior to 2011. Furthermore, a significant portion of these demands are involved in litigation with the investor. On February 3, 2016, Lehman Brothers Holding, Inc. (“LBHI”) filed an adversary proceeding against PCM in United States Bankruptcy Court of the Southern District of New York. LBHI has sued approximately 145 sellers of residential mortgage loans for alleged breaches of warranty in various loans sold to it. LBHI contends that such breaches caused it damages from loan losses and liability to other transferees of the loans. PCM intends to defend the action vigorously. Unfunded commitments on the Company’s originated CRE loans generally fall into two categories: (1) pre-approved capital improvement projects; and (2) new or additional construction costs subject, in each case, to the borrower meeting specified criteria. Upon completion of the improvements or construction, the Company would receive additional interest income on the advanced amount. Unfunded commitments on the Company's originated middle market loans fall into two categories: (1) revolving credit facility; and (2) unfunded commitments subject to the borrower meeting pre-specified criteria. Except as previously discussed, 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, 2016 . |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 23 - SEGMENT REPORTING The Company has five reportable operating segments: Commercial Real Estate Lending, Commercial Finance, Middle Market Lending, Residential Mortgage Lending, and Corporate & Other. The reportable operating segments are business units that offer different products and services. The Commercial Real Estate Lending operating segment includes the Company’s activities and operations related to commercial real estate loans, commercial real estate-related securities, and investments in real estate. The Commercial Finance operating segment includes the Company’s activities and operations related to bank loans, bank loan-related securities, and direct financing leases. The Middle Market Lending operating segment includes the Company’s activities and operations related to the origination and purchase of middle market loans. The Residential Mortgage Lending operating segment includes the Company’s activities and operations related to the origination and servicing of residential mortgage loans and the investment in RMBS. The Corporate & Other segment includes corporate level interest income, interest expense, and general and administrative expense. The accounting policies of the operating segments are the same as those described in Note 2 . The Company accounts for inter-segment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. Relevant expenses incurred at the Corporate & Other segment are allocated to TRS subsidiaries based on their percentage of adjusted pre-tax net income (loss), which excludes unrealized gains and losses and provisions on loan and lease losses that are specific to the periods presented. Summarized operating segment data are as follows (in thousands): Commercial Real Estate Lending Commercial Finance Middle Market Lending Residential Mortgage Lending Corporate & Other (1)(2)(3) Total For the Three Months Ended June 30, 2016: Interest income: External customers $ 25,201 $ 737 $ 8,176 $ 1,468 $ 113 $ 35,695 Other 3 2,288 11 1 4 2,307 Total interest income 25,204 3,025 8,187 1,469 117 38,002 Interest expense 8,364 (2 ) 4,017 1,174 5,083 18,636 Net interest income 16,840 3,027 4,170 295 (4,966 ) 19,366 Amortization of MSRs — — — (1,205 ) — (1,205 ) Other income from external customers — 762 — 546 17 1,325 Total revenues 16,840 3,789 4,170 (364 ) (4,949 ) 19,486 Less: Segment operating expenses 67 301 997 102 3,048 4,515 General and administrative 865 350 959 7,111 1,868 11,153 Depreciation and amortization — 327 4 140 33 504 Provision (recovery) for loan losses (68 ) 215 11,952 — — 12,099 Equity in earnings of unconsolidated subsidiaries (181 ) (2,515 ) — — — (2,696 ) Gain on sale of mortgages — — — (4,768 ) — (4,768 ) Other (income) expense (847 ) 465 198 (687 ) (1,490 ) (2,361 ) Income (loss) before taxes 17,004 4,646 (9,940 ) (2,262 ) (8,408 ) 1,040 Income tax (expense) benefit — 2,629 — 1,007 (147 ) 3,489 Net income (loss) $ 17,004 $ 7,275 $ (9,940 ) $ (1,255 ) $ (8,555 ) $ 4,529 Commercial Real Estate Lending Commercial Finance Middle Market Lending Residential Mortgage Lending Corporate & Other (1)(2)(3) Total For the Three Months Ended June 30, 2015: Interest income: External customers $ 22,245 $ 4,843 $ 7,324 $ 1,010 $ — $ 35,422 Other 66 1,039 1 1 12 1,119 Total interest income 22,311 5,882 7,325 1,011 12 36,541 Interest expense 7,838 787 1,321 872 4,985 15,803 Net interest income 14,473 5,095 6,004 139 (4,973 ) 20,738 Amortization of MSRs — — — (1,006 ) — (1,006 ) Other income from external customers — 1,150 — 2,672 17 3,839 Total revenues 14,473 6,245 6,004 1,805 (4,956 ) 23,571 Less: Segment operating expenses — 249 663 (110 ) 3,513 4,315 General and administrative 333 498 797 5,846 2,520 9,994 Depreciation and amortization — 448 — 140 33 621 Provision (recovery) for loan losses 38,072 290 755 (307 ) — 38,810 Equity in earnings of unconsolidated subsidiaries — (662 ) — — — (662 ) Gain on sale of mortgages — — — (4,168 ) — (4,168 ) Other (income) expense 154 (5,680 ) (125 ) (3,581 ) 3,690 (5,542 ) Income (loss) before taxes (24,086 ) 11,102 3,914 3,985 (14,712 ) (19,797 ) Income tax (expense) benefit 1 (1,548 ) — (1,475 ) 104 (2,918 ) Net income (loss) $ (24,085 ) $ 9,554 $ 3,914 $ 2,510 $ (14,608 ) $ (22,715 ) Commercial Real Estate Lending Commercial Finance Middle Market Lending Residential Mortgage Lending Corporate & Other (1)(2)(3) Total For the Six Months Ended June 30, 2016: Interest income: External customers $ 50,240 $ 1,366 $ 20,381 $ 2,451 $ 113 $ 74,551 Other 24 3,497 16 — 11 3,548 Total interest income 50,264 4,863 20,397 2,451 124 78,099 Interest expense 16,588 (2 ) 5,714 1,946 10,161 34,407 Net interest income 33,676 4,865 14,683 505 (10,037 ) 43,692 Amortization of MSRs — — — (2,262 ) — (2,262 ) Other income from external customers — 1,334 — 330 35 1,699 Total revenues 33,676 6,199 14,683 (1,427 ) (10,002 ) 43,129 Less: Segment operating expenses 133 570 2,511 909 5,695 9,818 General and administrative 1,256 701 2,013 13,400 3,853 21,223 Depreciation and amortization — 802 4 271 68 1,145 Impairment losses — — — — — — Provision (recovery) for loan losses — 76 12,060 — — 12,136 Equity in earnings of unconsolidated subsidiaries (453 ) (4,465 ) — — — (4,918 ) Gain on sale of mortgages — — — (7,901 ) — (7,901 ) Other (income) expense (843 ) (976 ) 198 (1,610 ) (967 ) (4,198 ) Income (loss) before taxes 33,583 9,491 (2,103 ) (6,496 ) (18,651 ) 15,824 Income tax (expense) benefit — 264 — 2,592 (131 ) 2,725 Net income (loss) $ 33,583 $ 9,755 $ (2,103 ) $ (3,904 ) $ (18,782 ) $ 18,549 Commercial Real Estate Lending Commercial Finance Middle Market Lending Residential Mortgage Lending Corporate & Other (1)(2)(3) Total For the Six Months Ended June 30, 2015: Interest income: External customers $ 44,591 $ 11,159 $ 13,835 $ 2,647 $ — $ 72,232 Other 70 1,804 2 1 74 1,951 Total interest income 44,661 12,963 13,837 2,648 74 74,183 Interest expense 14,929 1,857 2,201 1,989 9,729 30,705 Net interest income 29,732 11,106 11,636 659 (9,655 ) 43,478 Amortization of MSRs — — — (1,831 ) — (1,831 ) Other income from external customers — 2,365 — 3,452 33 5,850 Total revenues 29,732 13,471 11,636 2,280 (9,622 ) 47,497 Less: Segment operating expenses 6 668 1,203 1,544 5,478 8,899 General and administrative 749 1,669 1,284 11,880 4,023 19,605 Depreciation and amortization — 892 1 231 62 1,186 Impairment losses — 59 — — — 59 Provision (recovery) for loan losses 38,072 1,518 3,320 (110 ) — 42,800 Equity in earnings of unconsolidated subsidiaries (46 ) (1,322 ) — — — (1,368 ) Gain on sale of mortgages — — — (7,702 ) — (7,702 ) Other (income) expense 847 (8,694 ) (108 ) (5,882 ) (2,165 ) (16,002 ) Income (loss) before taxes (9,896 ) 18,681 5,936 2,319 (17,020 ) 20 Income tax (expense) benefit (39 ) (1,497 ) — (2,981 ) (248 ) (4,765 ) Net income (loss) $ (9,935 ) $ 17,184 $ 5,936 $ (662 ) $ (17,268 ) $ (4,745 ) (1) Includes interest expense for the Convertible Senior Notes of $4.4 million and $8.9 million for the three and six months ended June 30, 2016 and $4.4 million and $8.5 million for the three and six months ended June 30, 2015 . (2) Includes interest expense for the Unsecured Junior Subordinated Debentures of $651,000 and $1.3 million for the three and six months ended June 30, 2016 and $602,000 and $1.2 million for the three months and six ended June 30, 2015 . (3) Includes general corporate expenses not allocable to any particular operating segment. The following table presents total assets by segment for the periods indicated (in thousands): Total Assets (2) Commercial Real Estate Lending Commercial Finance Middle Market Lending Residential Mortgage Lending Corporate & Other (1) Total June 30, 2016 $ 1,680,996 $ 137,621 $ 321,460 $ 223,326 $ 26,441 $ 2,389,844 December 31, 2015 $ 1,907,951 $ 298,028 $ 384,973 $ 149,351 $ 20,129 $ 2,760,432 (1) Includes assets not allocable to any particular operating segment. (2) On January 1, 2016, we adopted amendments to the consolidation accounting guidance (see Note 2) and deconsolidated two and three VIEs in the Commercial Real Estate Lending and Commercial Finance operating segments, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 24 - 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 July 21, 2016, the Company agreed to a modification of the terms of the Wells CRE repurchase facility agreement. The modification extends the facility's maturity date to July 21, 2018, subject to the Company’s three one -year extension rights which may extend the maturity to July 21, 2021. The amendment also modified certain financing rates and required debt yields. The Company paid an extension fee as well as other reasonable closing costs. On August 1, 2016, the Company entered into a purchase agreement to sell Northport TRS, LLC to CVC Credit Partners, an affiliated party, and to other third parties for $247.0 million . The transaction includes substantially all of the direct origination middle market loans and one syndicated loan with a par balance of $257.0 million and the assumption of the senior secured revolving credit agreement, for net proceeds of approximately $102.0 million . The Company will retain the remaining broadly syndicated middle market loans and one direct origination middle market loan totaling $68.0 million , at carrying value, with an weighted average interest rate of 9.83% . During the second quarter, the Company recorded $9.0 million provision for loan losses on the loans sold to adjust the portfolio to fair value included in the purchase price and accelerated the amortization of the remaining deferred debt issuance costs of $2.6 million pertaining to the Credit Facility. The ownership of Northport TRS, LLC is held approximately 70.0% in a taxable subsidiary and 30.0% in a non-taxable subsidiary. The impact of the added provisions and write-off of the remaining debt issuance costs, net of tax, is $8.2 million during the three months ended June 30, 2016. |
SUMMARY OF SIGNIFICANT ACCOUN33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
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") and the accounting policies set forth in Note 2 included in our annual report on Form 10-K for the year ended December 31, 2015. 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, 2016 and December 31, 2015 , approximately $61.7 million and $74.3 million of the reported cash balances exceeded the 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. |
Income Tax | Income Taxes Because modest changes in projected income or loss produce a significant variance in estimates of the Company's annual effective tax rate, the Company records its tax provision (benefit) based on its actual effective tax rate. |
Recent Accounting Standards | Recent Accounting Standards In June 2016, the FASB issued guidance which will change how credit losses for most financial assets and certain other instruments that are measured at fair value through net income are determined. The new guidance will replace the current incurred loss approach with an expected loss model for instruments measured at amortized cost. For available-for-sale debt securities, the guidance requires recording allowances rather than reducing the carrying amount, as it is currently under the other-than-temporary impairment model. It also simplifies the accounting model for credit-impaired debt securities and loans. This guidance is effective for annual reporting periods beginning after December 15, 2019, and interim periods within that reporting period. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods within that reporting period, with any adjustments reflected as of the beginning of the fiscal year of adoption. The Company is in the process of evaluating the impact of this new guidance. In March 2016, the FASB issued guidance intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. The new guidance allows for entities to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. In addition, the guidance allows employers to withhold shares to satisfy minimum statutory tax withholding requirements up to the employees’ maximum individual tax rate without causing the award to be classified as a liability. The guidance also stipulates that cash paid by an employer to a taxing authority when directly withholding shares for tax-withholding purposes should be classified as a financing activity on the statement of cash flows. This guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. Early adoption is permitted in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. The Company is in the process of evaluating the impact of this new guidance. In February 2016, the FASB issued guidance requiring lessees to recognize a lease liability and a right-of-use asset for all leases. Lessor accounting will remain largely unchanged. The guidance will also require new qualitative and quantitative disclosures to help financial statement users better understand the timing, amount and uncertainty of cash flows arising from leases. This guidance will be effective for reporting periods beginning on or after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of this guidance and its impact on our consolidated financial statements. In January 2016, the FASB issued guidance to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments in order to provide users of financial statements with more decision-useful information. The guidance requires equity investments to be measured at fair value with changes in fair value recognized in net income; simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; requires separate presentation of financial assets and financial liabilities by measurement category and form of financial assets on the balance sheet or the accompanying notes to the financial statements and clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. It is effective for annual reporting periods, and the interim periods within those periods, beginning after December 15, 2017 and early adoption is permitted for certain provisions. The Company is currently evaluating the effect of adoption. In September 2015, the FASB issued guidance that simplifies the accounting for adjustments made to provisional amounts recognized in a business combination, which are currently recognized on a retrospective basis. Under the new requirements, adjustments to provisional amounts will be recognized in the reporting period in which the adjustments are determined. The effects of changes in depreciation, amortization, or other income arising from changes to the provisional amounts, if any, are included in earnings of the reporting period in which the adjustments to the provisional amounts are determined. An entity is also required to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. It is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Adoption did not have a material impact on the Company's consolidated financial statements. In April 2015, the 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. 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 it 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 VIEs; (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. On January 1, 2016, the Company adopted the above guidance as required. As a result of its re-evaluation, the Company determined it is no longer the primary beneficiary of the following VIEs and, therefore, they were deconsolidated: RREF CDO 2006-1, RREF CDO 2007-1, Apidos Cinco CDO, Pelium Capital, and RCM Global. As a result of these deconsolidations, the Company will no longer reflect the underlying collateral (loans and securities) of those VIEs in its consolidated financial statements. Instead, the Company will prospectively reflect in its consolidated balance sheet, its direct investments (the "retained investments") in the issued and outstanding securities of those VIEs. The Company's retained investments in RREF CDO 2006-1, RREF CDO 2007-1, Apidos Cinco CDO are now accounted for as investment securities, available-for-sale and, as a result, are marked-to-market while the Company's retained investments in Pelium Capital and RCM Global are accounted for as equity method investments. The Company has elected to retrospectively reflect the deconsolidation of these entities on a modified basis, which resulted in a reduction to the beginning balance of retained earnings as of January 1, 2016, of $16.9 million . The reduction to retained earnings represents the effect of marking the investments to market as of the date of the required adoption. The following table summarizes the net impact of the deconsolidation of the five VIEs upon adoption on January 1, 2016 (in thousands) net of eliminations: Total Deconsolidated VIEs Retained Interest as of 1/1/2016 Net Impact on Deconsolidation ASSETS: Cash and cash equivalents $ 472 $ — $ 472 Restricted cash 17,076 — 17,076 Loans, pledged as collateral and net of allowances (1)(2)(3) 364,589 — 364,589 Loans held for sale 1,322 — 1,322 Investment securities available-for-sale, at fair value 68,997 166,769 (97,772 ) Investment securities, trading 21,851 — 21,851 Investments in deconsolidated entities 17,250 23,175 (5,925 ) Interest receivable 4,299 — 4,299 Principal paydown receivable 17,800 — 17,800 Prepaid expenses 256 — 256 Other assets 972 — 972 Total assets $ 514,884 $ 189,944 $ 324,940 LIABILTITES: Borrowings $ 297,191 $ — $ 297,191 Accrued interest expense 297 — 297 Derivative liabilities, at fair value 3,346 — 3,346 Accounts payable and other liabilities 255 — 255 Total liabilities 301,089 — 301,089 Retained earnings 206,876 189,944 16,932 Non-controlling interests 8,876 — 8,876 Accumulated other comprehensive loss (1,957 ) — (1,957 ) Total equity 213,795 189,944 23,851 Total liabilities and equity $ 514,884 $ 189,944 $ 324,940 (1) As part of the deconsolidation of RREF CDO 2006-1 and RREF CDO 2007-1, $40.3 million of specific reserves and $142,000 of general reserves on CRE loans were deconsolidated as of January 1, 2016. (2) As part of the deconsolidation of Apidos Cinco CDO, $1.3 million of specific reserves on the bank loans were deconsolidated as of January 1, 2016. (3) As part of the deconsolidation of RREF CDO 2006-1 and RREF CDO 2007-1, the Company deconsolidated four loans representing the senior participations in commercial real estate loans totaling $91.3 million that were previously disclosed as both impaired loans and troubled debt restructurings as of December 31, 2015. 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. Adoption did not have a material impact on the Company's consolidated financial statements. 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 is currently evaluating the effect of adoption. 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 and the fair value of any beneficial interests retained by the reporting entity (including those beneficial interests 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 that any difference in the fair value of the financial assets and the fair value of the financial liabilities 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. Adoption did not have a material impact on the Company's consolidated financial statements. |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2015 consolidated financial statements to conform to the 2016 presentation. |
SUMMARY OF SIGNIFICANT ACCOUN34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Variable Interest Entity | The following table summarizes the net impact of the deconsolidation of the five VIEs upon adoption on January 1, 2016 (in thousands) net of eliminations: Total Deconsolidated VIEs Retained Interest as of 1/1/2016 Net Impact on Deconsolidation ASSETS: Cash and cash equivalents $ 472 $ — $ 472 Restricted cash 17,076 — 17,076 Loans, pledged as collateral and net of allowances (1)(2)(3) 364,589 — 364,589 Loans held for sale 1,322 — 1,322 Investment securities available-for-sale, at fair value 68,997 166,769 (97,772 ) Investment securities, trading 21,851 — 21,851 Investments in deconsolidated entities 17,250 23,175 (5,925 ) Interest receivable 4,299 — 4,299 Principal paydown receivable 17,800 — 17,800 Prepaid expenses 256 — 256 Other assets 972 — 972 Total assets $ 514,884 $ 189,944 $ 324,940 LIABILTITES: Borrowings $ 297,191 $ — $ 297,191 Accrued interest expense 297 — 297 Derivative liabilities, at fair value 3,346 — 3,346 Accounts payable and other liabilities 255 — 255 Total liabilities 301,089 — 301,089 Retained earnings 206,876 189,944 16,932 Non-controlling interests 8,876 — 8,876 Accumulated other comprehensive loss (1,957 ) — (1,957 ) Total equity 213,795 189,944 23,851 Total liabilities and equity $ 514,884 $ 189,944 $ 324,940 (1) As part of the deconsolidation of RREF CDO 2006-1 and RREF CDO 2007-1, $40.3 million of specific reserves and $142,000 of general reserves on CRE loans were deconsolidated as of January 1, 2016. (2) As part of the deconsolidation of Apidos Cinco CDO, $1.3 million of specific reserves on the bank loans were deconsolidated as of January 1, 2016. (3) As part of the deconsolidation of RREF CDO 2006-1 and RREF CDO 2007-1, the Company deconsolidated four loans representing the senior participations in commercial real estate loans totaling $91.3 million that were previously disclosed as both impaired loans and troubled debt restructurings as of December 31, 2015. 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, 2016 (in thousands): Unconsolidated Variable Interest Entities LCC Unsecured Junior Subordinated Debentures Resource Capital Asset Management CDOs Investment in ZAIS and Harvest RREF CDO 2007-1 Apidos Cinco CDO RCM Global LLC Pelium Capital Total Maximum Exposure to Loss Investments in unconsolidated entities and Investment securities, available-for-sale $ 44,361 $ 1,548 $ — $ 32,114 $ 109,913 $ 18,838 $ 584 $ 23,723 $ 231,081 $ 231,081 Intangible assets — — 4,514 — — — — — 4,514 $ 4,514 Total assets 44,361 1,548 4,514 32,114 109,913 18,838 584 23,723 235,595 Borrowings — 51,521 — — — — — — 51,521 N/A Total liabilities — 51,521 — — — — — — 51,521 N/A Net asset (liability) $ 44,361 $ (49,973 ) $ 4,514 $ 32,114 $ 109,913 $ 18,838 $ 584 $ 23,723 $ 184,074 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, 2016 (in thousands): Apidos I Apidos III Whitney CLO I RCC CRE Notes 2013 RCC 2014-CRE2 RCC 2015-CRE3 RCC 2015-CRE4 Total ASSETS Restricted cash (1) $ 65 $ 62 $ 163 $ — $ 4,220 $ 2,083 $ 2 $ 6,595 Loans held for investment — — — 86,397 263,303 281,980 310,502 942,182 Interest receivable — — — 404 1,025 1,165 1,173 3,767 Prepaid assets — — — 11 11 10 10 42 Principal paydown receivable — — — 8,100 — — — 8,100 Other assets — — — 41 — — — 41 Total assets (2) $ 65 $ 62 $ 163 $ 94,953 $ 268,559 $ 285,238 $ 311,687 $ 960,727 LIABILITIES Borrowings $ — $ — $ — $ 47,305 $ 147,566 $ 218,762 $ 220,920 $ 634,553 Accrued interest expense — — — 60 101 214 174 549 Accounts payable and other liabilities — — — 23 41 53 40 157 Total liabilities $ — $ — $ — $ 47,388 $ 147,708 $ 219,029 $ 221,134 $ 635,259 (1) Includes $4.2 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. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity | The following table summarizes the net impact of the deconsolidation of the five VIEs upon adoption on January 1, 2016 (in thousands) net of eliminations: Total Deconsolidated VIEs Retained Interest as of 1/1/2016 Net Impact on Deconsolidation ASSETS: Cash and cash equivalents $ 472 $ — $ 472 Restricted cash 17,076 — 17,076 Loans, pledged as collateral and net of allowances (1)(2)(3) 364,589 — 364,589 Loans held for sale 1,322 — 1,322 Investment securities available-for-sale, at fair value 68,997 166,769 (97,772 ) Investment securities, trading 21,851 — 21,851 Investments in deconsolidated entities 17,250 23,175 (5,925 ) Interest receivable 4,299 — 4,299 Principal paydown receivable 17,800 — 17,800 Prepaid expenses 256 — 256 Other assets 972 — 972 Total assets $ 514,884 $ 189,944 $ 324,940 LIABILTITES: Borrowings $ 297,191 $ — $ 297,191 Accrued interest expense 297 — 297 Derivative liabilities, at fair value 3,346 — 3,346 Accounts payable and other liabilities 255 — 255 Total liabilities 301,089 — 301,089 Retained earnings 206,876 189,944 16,932 Non-controlling interests 8,876 — 8,876 Accumulated other comprehensive loss (1,957 ) — (1,957 ) Total equity 213,795 189,944 23,851 Total liabilities and equity $ 514,884 $ 189,944 $ 324,940 (1) As part of the deconsolidation of RREF CDO 2006-1 and RREF CDO 2007-1, $40.3 million of specific reserves and $142,000 of general reserves on CRE loans were deconsolidated as of January 1, 2016. (2) As part of the deconsolidation of Apidos Cinco CDO, $1.3 million of specific reserves on the bank loans were deconsolidated as of January 1, 2016. (3) As part of the deconsolidation of RREF CDO 2006-1 and RREF CDO 2007-1, the Company deconsolidated four loans representing the senior participations in commercial real estate loans totaling $91.3 million that were previously disclosed as both impaired loans and troubled debt restructurings as of December 31, 2015. 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, 2016 (in thousands): Unconsolidated Variable Interest Entities LCC Unsecured Junior Subordinated Debentures Resource Capital Asset Management CDOs Investment in ZAIS and Harvest RREF CDO 2007-1 Apidos Cinco CDO RCM Global LLC Pelium Capital Total Maximum Exposure to Loss Investments in unconsolidated entities and Investment securities, available-for-sale $ 44,361 $ 1,548 $ — $ 32,114 $ 109,913 $ 18,838 $ 584 $ 23,723 $ 231,081 $ 231,081 Intangible assets — — 4,514 — — — — — 4,514 $ 4,514 Total assets 44,361 1,548 4,514 32,114 109,913 18,838 584 23,723 235,595 Borrowings — 51,521 — — — — — — 51,521 N/A Total liabilities — 51,521 — — — — — — 51,521 N/A Net asset (liability) $ 44,361 $ (49,973 ) $ 4,514 $ 32,114 $ 109,913 $ 18,838 $ 584 $ 23,723 $ 184,074 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, 2016 (in thousands): Apidos I Apidos III Whitney CLO I RCC CRE Notes 2013 RCC 2014-CRE2 RCC 2015-CRE3 RCC 2015-CRE4 Total ASSETS Restricted cash (1) $ 65 $ 62 $ 163 $ — $ 4,220 $ 2,083 $ 2 $ 6,595 Loans held for investment — — — 86,397 263,303 281,980 310,502 942,182 Interest receivable — — — 404 1,025 1,165 1,173 3,767 Prepaid assets — — — 11 11 10 10 42 Principal paydown receivable — — — 8,100 — — — 8,100 Other assets — — — 41 — — — 41 Total assets (2) $ 65 $ 62 $ 163 $ 94,953 $ 268,559 $ 285,238 $ 311,687 $ 960,727 LIABILITIES Borrowings $ — $ — $ — $ 47,305 $ 147,566 $ 218,762 $ 220,920 $ 634,553 Accrued interest expense — — — 60 101 214 174 549 Accounts payable and other liabilities — — — 23 41 53 40 157 Total liabilities $ — $ — $ — $ 47,388 $ 147,708 $ 219,029 $ 221,134 $ 635,259 (1) Includes $4.2 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. |
SUPPLEMENTAL CASH FLOW INFORM36
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 2015 Non-cash investing activities include the following: Reclassification of linked transactions, net at fair value to investment securities available-for-sale, pledged as collateral, at fair value (1) $ — $ 48,605 Retained beneficial interest in unconsolidated securitization entities $ (22,476 ) $ — Loans acquired through collateralized debt obligation liquidation $ (44,893 ) $ — Securities acquired through collateralized debt obligation liquidation $ (20,837 ) $ — Non-cash financing activities include the following: Distributions on common stock accrued but not paid $ 13,051 $ 21,426 Distributions on preferred stock accrued but not paid $ 4,009 $ 4,078 Reclassification of linked transactions, net at fair value to borrowings (1) $ — $ 33,377 (1) As a result of an accounting standards update adopted on January 1, 2015, the Company unlinked its previously linked transactions, resulting in non-cash increases in both its investment securities available-for-sale, pledged as collateral, at fair value and related repurchase agreements borrowings balances. |
INVESTMENT SECURITIES TRADING (
INVESTMENT SECURITIES TRADING (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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): Amortized Cost Unrealized Gains Unrealized Losses Fair Value As of June 30, 2016: Structured notes $ 5,907 $ 255 $ (2,180 ) $ 3,982 RMBS 1,896 — (1,896 ) — Total $ 7,803 $ 255 $ (4,076 ) $ 3,982 As of December 31, 2015: Structured notes $ 28,576 $ 1,674 $ (4,700 ) $ 25,550 RMBS 1,896 — (1,896 ) — Total $ 30,472 $ 1,674 $ (6,596 ) $ 25,550 |
INVESTMENT SECURITIES AVAILAB38
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Available-for-sale Securities [Abstract] | |
Available-for-sale Securities | The following table summarizes the Company's investment securities, including those pledged as collateral and classified as available-for-sale. ABS may include, but are not limited to the Company's investments in RREF CDO 2007-1, Apidos Cinco CDO, Harvest CLO Securities, ZAIS and other securities backed by syndicated bank loans, and other loan obligations. These securities are carried at fair value (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value (1) As of June 30, 2016: ABS $ 162,759 $ 2,865 $ (519 ) $ 165,105 CMBS 89,621 441 (1,904 ) 88,158 RMBS 1,919 144 (46 ) 2,017 Total $ 254,299 $ 3,450 $ (2,469 ) $ 255,280 As of December 31, 2015: ABS $ 41,994 $ 3,218 $ (998 ) $ 44,214 CMBS 158,584 2,631 (1,791 ) 159,424 RMBS 2,156 122 (88 ) 2,190 Corporate bonds 2,422 — (162 ) 2,260 Total $ 205,156 $ 5,971 $ (3,039 ) $ 208,088 (1) As of June 30, 2016 and December 31, 2015 , $88.1 million and $162.3 million , respectively, of investment securities available-for-sale were pledged as collateral under related financings. 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 For the Six Months Ended Positions Sold Positions Redeemed Par Amount Sold/Redeemed Realized Gain (Loss) Positions Sold Positions Redeemed Par Amount Sold/Redeemed Realized Gain (Loss) June 30, 2015: ABS 3 1 $4,026 $1,841 7 3 $ 15,937 $ 8,110 RMBS 6 — $28,305 $984 6 — $ 28,305 $ 984 |
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, 2016: Less than one year $ 180,947 (1) $ 182,143 8.10% Greater than one year and less than five years 34,010 34,207 5.09% Greater than five years and less than ten years 23,699 22,177 9.02% Greater than ten years 16,624 15,772 14.25% Total $ 255,280 $ 254,299 8.16% As of December 31, 2015: Less than one year $ 117,221 (1) $ 118,215 7.13% Greater than one year and less than five years 71,370 68,808 5.31% Greater than five years and less than ten years 12,382 11,271 10.45% Greater than ten years 7,115 6,862 16.85% Total $ 208,088 $ 205,156 7.03% (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, 2016: ABS $ 2,135 $ (519 ) 3 $ — $ — — $ 2,135 $ (519 ) 3 CMBS 59,858 (1,503 ) 26 7,028 (401 ) 7 66,886 (1,904 ) 33 RMBS 1,065 (46 ) 2 — — — 1,065 (46 ) 2 Total temporarily impaired securities $ 63,058 $ (2,068 ) 31 $ 7,028 $ (401 ) 7 $ 70,086 $ (2,469 ) 38 As of December 31, 2015: ABS $ 2,330 $ (824 ) 5 $ 668 $ (174 ) 5 $ 2,998 $ (998 ) 10 CMBS 79,570 (849 ) 31 13,783 (942 ) 15 93,353 (1,791 ) 46 RMBS 1,157 (88 ) 2 — — — 1,157 (88 ) 2 Corporate bonds 65 (18 ) 1 1,327 (144 ) 1 1,392 (162 ) 2 Total temporarily impaired securities $ 83,122 $ (1,779 ) 39 $ 15,778 $ (1,260 ) 21 $ 98,900 $ (3,039 ) 60 |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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) (3) As of June 30, 2016: CRE whole loans $ 1,428,656 $ (7,466 ) $ 1,421,190 Mezzanine loans (5) — — — Middle market loans 54,850 (365 ) 54,485 Residential mortgage loans, held for investment 2,641 — 2,641 Subtotal loans before allowance 1,486,147 (7,831 ) 1,478,316 Allowance for loan loss (1,436 ) — (1,436 ) Total loans held for investment, net of allowance 1,484,711 (7,831 ) 1,476,880 Middle market loans held for sale 259,179 — 259,179 Residential mortgage loans held for sale, at fair value (4) 161,129 — 161,129 Total loans held for sale 420,308 — 420,308 Total loans, net $ 1,905,019 $ (7,831 ) $ 1,897,188 As of December 31, 2015: Commercial real estate loans: Whole loans $ 1,640,744 $ (9,943 ) $ 1,630,801 B notes 15,934 — 15,934 Mezzanine loans 45,368 4 45,372 Total commercial real estate loans 1,702,046 (9,939 ) 1,692,107 Bank loans 134,890 (373 ) 134,517 Middle market loans 380,687 (1,235 ) 379,452 Residential mortgage loans, held for investment 1,746 — 1,746 Subtotal loans before allowance 2,219,369 (11,547 ) 2,207,822 Allowance for loan loss (47,071 ) — (47,071 ) Total loans held for investment, net of allowance 2,172,298 (11,547 ) 2,160,751 Bank loans held for sale 1,475 — 1,475 Residential mortgage loans held for sale, at fair value (4) 94,471 — 94,471 Total loans held for sale 95,946 — 95,946 Total loans, net $ 2,268,244 $ (11,547 ) $ 2,256,697 (1) Amounts included deferred amendment fees of $10,000 and deferred upfront fees of $0 being amortized over the life of the loans as of June 30, 2016 . Amounts include deferred amendment fees of $42,000 and deferred upfront fees of $12,000 being amortized over the life of the loans as of December 31, 2015 . Amounts also include loan origination fees of $7.4 million and $9.9 million as of June 30, 2016 and December 31, 2015 , respectively. (2) As a result of the consolidation guidance adopted January 1, 2016, the Company deconsolidated loans held for investment in the amount of $271.8 million of its CRE loans and $134.5 million of its bank loans and the related allowance for loan losses of $41.7 million ( see Note 2 ). (3) Substantially all loans are pledged as collateral under various borrowings at June 30, 2016 and December 31, 2015 , respectively. (4) Amortized cost approximates fair value. (5) The Company has one mezzanine loan with a par value of $28.8 million that was acquired at fair value as a result of the liquidation of RREF CDO 2006-1. |
Summary of commercial real estate loans held for investment [Table Text Block] | The following is a s(in thousands): Description Quantity Amortized Cost Contracted Interest Rates Maturity Dates (3) As of June 30, 2016: Whole loans, floating rate (1) (3) (4) (5) (6) (7) 80 $ 1,421,190 LIBOR plus 2.50% to August 2016 to May 2019 Mezzanine loans (10) 1 — N/A September 2021 Total (2) (9) 81 $ 1,421,190 As of December 31, 2015: Whole loans, floating rate (1) (3) (4) (5) (6) (7) 87 $ 1,630,801 LIBOR plus 1.75% to February 2016 to February 2019 B notes, fixed rate 1 15,934 8.68% April 2016 Mezzanine loans, fixed rate (8) 2 45,372 9.01% September 2016 Total (2) 90 $ 1,692,107 (1) Whole loans had $78.8 million and $112.6 million in unfunded loan commitments as of June 30, 2016 and December 31, 2015 , 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 $1.4 million and $41.8 million as of June 30, 2016 and December 31, 2015 , respectively. (3) Maturity dates do not include possible extension options that may be available to the borrowers. (4) Includes two whole loans with a combined $11.2 million and $51.2 million senior component that entered into modifications in 2016 and 2015 that resulted in a fixed rate of 0.50% as of June 30, 2016 and December 31, 2015 , respectively (the difference of which was a result of the deconsolidation of RREF CDO 2006-1 and RREF CDO 2007-1 - see Note 2). The two loans were previously identified as troubled debt restructurings ("TDR's"). (5) Includes four whole loans with combined $4.5 million mezzanine components that have interest rates ranging from 1.4% to 5.2% as of June 30, 2016 and December 31, 2015 . (6) Includes a $799,000 junior mezzanine tranche of a whole loan that has a fixed rate of 10.0% as of June 30, 2016 and December 31, 2015 . (7) Contracted interest rates do not include a whole loan with an amortized cost of $2.0 million and $32.5 million that entered into a modification in 2016 and 2015 which reduced the floating rate spread to 1.00% as of June 30, 2016 and December 31, 2015 , respectively (the difference of which was a result of the deconsolidation of RREF CDO 2007-1 - see Note 2). The loan was previously identified as a TDR. (8) 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. (9) As a result of updated accounting guidance, effective January 1, 2016 ( see Note 2 ), the Company deconsolidated all of the assets of RREF CDO 2006-1 and RREF CDO 2007-1, resulting in the removal of $271.8 million of loans, pledged as collateral from its balance sheet. (10) As a result of RREF CDO 2006-1 being called and liquidated on April 25, 2016, a mezzanine loan with a par value of $28.8 million was acquired as part of the liquidation proceeds and is reflected on the Company's balance sheet at a fair value of zero at June 30, 2016 . The mezzanine loan is comprised of two tranches, with maturity dates of November 2016 and September 2021. |
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) prior to deconsolidation of Apidos Cinco CDO as of January 1, 2016: Apidos I Apidos Cinco Total As of December 31, 2015: Loans held for investment: First lien loans $ — $ 131,281 $ 131,281 Second lien loans — 1,692 1,692 Defaulted first lien loans — 1,544 1,544 Defaulted second lien loans — — — Total — 134,517 134,517 First lien loans held for sale at fair value 153 1,322 1,475 Total $ 153 $ 135,839 $ 135,992 |
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 middle market loans, at carrying value (in thousands): June 30, December 31, Less than one year $ 9,319 $ 14,960 Greater than one year and less than five years 210,385 250,709 Five years or greater 93,960 109,844 $ 313,664 $ 375,513 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): December 31, Less than one year $ 3,922 Greater than one year and less than five years 128,480 Five years or greater 3,590 $ 135,992 |
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 carrying value (in thousands): June 30, December 31, First Lien $ — $ 248,367 Second Lien 54,485 127,146 First lien loans held for sale, at fair value 188,378 — Second lien loans held for sale, at fair value 70,801 — $ 313,664 $ 375,513 |
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 2016 2017 2018 and Thereafter Total As of June 30, 2016: Whole loans $ — $ 60,446 $ 1,360,744 $ 1,421,190 Mezzanine loans (2) — — — — Total (1) $ — $ 60,446 $ 1,360,744 $ 1,421,190 As of December 31, 2015: 2016 2017 2018 and Thereafter Total B notes $ 15,934 $ — $ — $ 15,934 Mezzanine loans 13,011 — 32,361 45,372 Whole loans 9,958 140,712 1,480,131 1,630,801 Total (1) $ 38,903 $ 140,712 $ 1,512,492 $ 1,692,107 (1) Contractual maturity of commercial real estate loans assumes full exercise of extension options available to borrowers. (2) The Company has one mezzanine loan with a par value of $28.8 million that was acquired at fair value as a result of the liquidation of RREF |
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 (in thousands): Description Allowance for Loan Loss Percentage of Total Allowance As of June 30, 2016: CRE whole loans $ 1,425 99.23% Mezzanine loans (2) — —% Middle market loans — —% Residential mortgage loans 11 0.77% Total (1) $ 1,436 As of December 31, 2015: B notes $ 15 0.03% Mezzanine loans 38,079 80.90% CRE whole loans 3,745 7.96% Bank loans 1,282 2.72% Middle market loans 3,939 8.37% Residential mortgage loans 11 0.02% Total $ 47,071 (1) As a result of amendments to consolidation accounting guidance adopted January 1, 2016, the Company deconsolidated loans held for investment in the amount of $271.8 million of its CRE loans and $134.5 million of its bank loans and the related allowance for loan losses of $41.7 million ( see Note 2 ). (2) The Company has one mezzanine loan with a par value of $28.8 million that was acquired at fair value as a result of the liquidation of RREF 2006-1. |
INVESTMENTS IN UNCONSOLIDATED40
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 and December 31, 2015 and equity in earnings of unconsolidated subsidiaries for the three and six months ended June 30, 2016 and 2015 (in thousands): Equity in Earnings of Unconsolidated Subsidiaries Balance as of Balance as of For the For the six months ended For the For the six months ended Ownership % June 30, December 31, June 30, June 30, June 30, June 30, RRE VIP Borrower, LLC (1) —% $ — $ — $ 10 $ 35 $ — $ 46 Investment in LCC Preferred Stock 29.0% 44,361 42,017 933 2,344 350 402 Investment in CVC Global Credit Opportunities Fund (2) —% — — — — 312 920 Pearlmark Mezz IV L.P. (3) 47.4% 6,585 6,465 171 419 — — RCM Global, LLC (4) 25.4% 584 — 222 399 — — Pelium Capital Partners, L.P. (4) 80.2% 23,723 — 1,360 1,721 — — Subtotal 75,253 48,482 2,696 4,918 662 1,368 Investment in RCT I and II (5) 3.0% 1,548 1,548 (651 ) (1,292 ) (602 ) (1,195 ) Total $ 76,801 $ 50,030 $ 2,045 $ 3,626 $ 60 $ 173 (1) The investment in RRE VIP Borrower was sold as of December 31, 2014. Earnings for the three and six months ended June 31, 2016 and 2015 are related to insurance premium refunds and the liquidation of bank accounts with respect to the underlying sold properties of the portfolio. (2) In December 2015, the Company elected a full redemption of its remaining investment from the fund. (3) The Company has committed to invest up to $50.0 million in Pearlmark Mezzanine Realty Partners IV, L.P. The commitment termination date ends the earlier of when the original commitment is fully funded, or the fifth anniversary following the final closing date of June 24, 2015. (4) Pursuant to the new consolidation guidance adopted January 1, 2016, these previously consolidated VIEs are now accounted for under the equity method. (5) For the three and six months ended June 30, 2016 and 2015 , these amounts are recorded in interest expense on the Company's consolidated statements of operations. |
FINANCING RECEIVABLES (Tables)
FINANCING RECEIVABLES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Allowance for loan losses and recorded investments in loans | The following tables show the allowance for loan and lease losses and recorded investments in loans and leases for the years indicated (in thousands): Commercial Real Estate Loans Bank Loans Middle Market Loans Residential Mortgage Loans Direct Financing Leases Total As of June 30, 2016: Allowance for Loan and Leases Losses: Allowance for losses at January 1, 2016 $ 41,839 $ 1,282 $ 3,939 $ 11 $ 465 $ 47,536 Provision (recovery) for loan and lease losses — 77 12,059 — — 12,136 Loans charged-off — (77 ) (15,998 ) — — (16,075 ) Recoveries — — — — — — Deconsolidation of VIEs (40,414 ) (1,282 ) — — — (41,696 ) Allowance for losses at June 30, 2016 $ 1,425 $ — $ — $ 11 $ 465 $ 1,901 Ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ 465 $ 465 Collectively evaluated for impairment $ 1,425 $ — $ — $ 11 $ — $ 1,436 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — Loans and Leases: Ending balance: Individually evaluated for impairment $ 38,133 $ — $ — $ — $ 1,130 $ 39,263 Collectively evaluated for impairment $ 1,383,057 $ — $ 54,485 $ 2,641 $ — $ 1,440,183 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — As of December 31, 2015: Allowance for Loan and Lease Losses: Allowance for losses at January 1, 2015 $ 4,043 $ 570 $ — $ — $ — $ 4,613 Provision for loan and lease losses 37,735 2,887 8,901 (99 ) 465 49,889 Loans charged-off — (2,175 ) (4,962 ) 110 — (7,027 ) Recoveries 61 — — — — 61 Allowance for losses at December 31, 2015 $ 41,839 $ 1,282 $ 3,939 $ 11 $ 465 $ 47,536 Ending balance: Individually evaluated for impairment $ 40,274 $ 1,282 $ — $ — $ 465 $ 42,021 Collectively evaluated for impairment $ 1,565 $ — $ 3,939 $ 11 $ — $ 5,515 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — Loans and Leases: Ending balance: Individually evaluated for impairment $ 169,707 $ 1,544 $ — $ — $ 1,396 $ 172,647 Collectively evaluated for impairment $ 1,522,400 $ 132,973 $ 379,452 $ 1,746 $ — $ 2,036,571 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — |
Credit quality indicators for Bank loans and Commercial real estate loans | Credit risk profiles of commercial real estate loans were as follows (in thousands): Rating 1 (2) Rating 2 Rating 3 Rating 4 Held for Sale Total As of June 30, 2016: CRE whole loans $ 1,419,190 $ 2,000 $ — $ — $ — $ 1,421,190 Mezzanine loans (1) — — — — — — $ 1,419,190 $ 2,000 $ — $ — $ — $ 1,421,190 As of December 31, 2015: CRE whole loans $ 1,596,099 $ 32,500 $ — $ 2,202 $ — $ 1,630,801 B notes 15,934 — — — — 15,934 Mezzanine loans 7,300 — — 38,072 — 45,372 $ 1,619,333 $ 32,500 $ — $ 40,274 $ — $ 1,692,107 (1) The Company has one mezzanine loan with a par value of $28.8 million that was acquired at fair value as a result of the liquidation of RREF 2006-1. (2) Includes three and four loans which were impaired as of June 30, 2016 and December 31, 2015 , respectively. 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, 2016: Middle market loans $ — $ 48,452 $ 6,033 $ — $ — $ 259,179 $ 313,664 As of December 31, 2015: Middle market loans $ 44,252 $ 305,578 $ 29,622 $ — $ — $ — $ 379,452 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 December 31, 2015: Bank loans $ 113,897 $ 17,578 $ 1,498 $ — $ 1,544 $ 1,475 $ 135,992 |
Loan portfolios aging analysis | The following table presents the loan and lease portfolio aging analysis as of the dates indicated at amortized cost (in thousands): 30-59 Days 60-89 Days Greater than 90 Days Total Past Due Current Total Loans Receivable Total Loans > 90 Days and Accruing As of June 30, 2016: CRE whole loans $ — $ — $ — $ — $ 1,421,190 $ 1,421,190 $ — Mezzanine loans (3) — — — — — — — Middle market loans — — — — 54,485 54,485 — Direct Financing Leases — — 59 59 1,071 1,130 — Residential mortgage loans (1) — — 169 169 163,601 163,770 — Total loans $ — $ — $ 228 $ 228 $ 1,640,347 $ 1,640,575 $ — As of December 31, 2015: CRE whole loans (2) $ — $ — $ — $ — $ 1,630,801 $ 1,630,801 $ — B notes — — — — 15,934 15,934 — Mezzanine loans — 38,072 — 38,072 7,300 45,372 — Bank loans 1,544 — — 1,544 132,973 134,517 — Middle market loans — — — — 379,452 379,452 — Direct Financing Leases 12 214 — 226 1,170 1,396 — Residential mortgage loans (1) 27 41 80 148 96,069 96,217 — Total loans $ 1,583 $ 38,327 $ 80 $ 39,990 $ 2,263,699 $ 2,303,689 $ — (1) Contains $161.1 million and $94.5 million of residential mortgage loans held for sale at fair value at June 30, 2016 and December 31, 2015 , respectively. (2) Current loans include one impaired whole loan with an amortized costs of $2.2 million , which was fully reserved as of December 31, 2015 . (3) The Company has one mezzanine loan with a par value of $28.8 million that was acquired at fair value as a result of the liquidation of RREF 2006-1. |
Impaired loans | The following tables show impaired loans as of the dates indicated (in thousands): Recorded Balance (1) Unpaid Principal Balance Specific Allowance Average Investment in Impaired Loans Interest Income Recognized As of June 30, 2016: Loans without a specific valuation allowance: CRE whole loans $ 38,133 $ 38,133 $ — $ 38,133 $ 353 Mezzanine loans $ — $ — $ — $ — $ — Middle market loans $ — $ — $ — $ — $ — Residential mortgage loans $ — $ — $ — $ — $ — Loans with a specific valuation allowance: CRE whole loans $ — $ — $ — $ — $ — Mezzanine loans $ — $ — $ — $ — $ — Bank loans $ — $ — $ — $ — $ — Middle market loans $ — $ — $ — $ — $ — Residential mortgage loans $ — $ — $ — $ — $ — Total: CRE whole loans $ 38,133 $ 38,133 $ — $ 38,133 $ 353 Mezzanine loans — — — — — Middle market loans — — — — — Residential mortgage loans — — — — — $ 38,133 $ 38,133 $ — $ 38,133 $ 353 As of December 31, 2015: Loans without a specific valuation allowance: CRE whole loans $ 129,433 $ 129,433 $ — $ 128,591 $ 3,939 B notes $ — $ — $ — $ — $ — Mezzanine loans $ — $ — $ — $ — $ — Bank loans $ — $ — $ — $ — $ — Middle market loans $ — $ — $ — $ — $ — Residential mortgage loans $ — $ — $ — $ — $ — Loans with a specific valuation allowance: CRE whole loans $ 2,202 $ 2,202 $ (2,202 ) $ 2,202 $ 63 B notes $ — $ — $ — $ — $ — Mezzanine loans $ 38,072 $ 38,072 $ (38,072 ) $ 38,072 $ (2,879 ) Bank loans $ 1,544 $ 1,551 $ (1,282 ) $ 1,544 $ — Middle market loans $ — $ — $ — $ — $ — Residential mortgage loans $ — $ — $ — $ — $ — Total: CRE whole loans $ 131,635 $ 131,635 $ (2,202 ) $ 130,793 $ 4,002 B notes — — — — — Mezzanine loans 38,072 38,072 (38,072 ) 38,072 (2,879 ) Bank loans 1,544 1,551 (1,282 ) 1,544 — Middle market loans — — — — — Residential mortgage loans — — — — — $ 171,251 $ 171,258 $ (41,556 ) $ 170,409 $ 1,123 (1) As a result of the adoption of new consolidation accounting guidance as required on January 1, 2016, the Company deconsolidated $91.3 million in senior participations of four loans that were previously classified as impaired loans in the Company's consolidated financial statements as of December 31, 2015 (see Note 2). |
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, 2016 CRE whole loans 3 $ 29,459 $ 29,459 Mezzanine loans — — — Middle market loans — — — Residential mortgage loans — — — Total loans 3 $ 29,459 $ 29,459 Number of Loans Pre-Modification Outstanding Recorded Balance Post-Modification Outstanding Recorded Balance Six Months Ended June 30, 2015 CRE whole loans 2 $ 67,459 $ 67,459 B notes — — — Mezzanine loans 1 38,072 — Bank loans — — — Middle market loans — — — Residential mortgage loans — — — Total loans 3 $ 105,531 $ 67,459 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 $ 5,316 $ 90 $ 20,822 $ 26,228 Additions — — 8,362 8,362 Sales — — — — Amortization (802 ) — (2,262 ) (3,064 ) Total before impairment adjustment 4,514 90 26,922 31,526 Temporary impairment adjustment — — (4,800 ) (4,800 ) Balance, June 30, 2016 $ 4,514 $ 90 $ 22,122 $ 26,726 |
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 $ 1,998,273 $ 894,767 Additions 752,329 1,236,145 Payoffs, sales and curtailments (162,102 ) (132,639 ) Balance, end of period $ 2,588,500 $ 1,998,273 |
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, 2016 2015 2016 2015 Servicing fees from capitalized portfolio $ 1,559 $ 911 $ 2,992 $ 1,462 Late fees $ 50 $ 18 $ 99 $ 41 Other ancillary servicing revenue $ 7 $ 3 $ 12 $ 7 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016: RCC CRE Notes 2013 Senior Notes $ 47,724 $ 419 $ 47,305 3.46% 12.5 years $ 86,307 RCC 2014-CRE2 Senior Notes 149,960 2,394 147,566 1.87% 15.8 years 266,977 RCC 2015-CRE3 Senior Notes 221,692 2,930 218,762 2.48% 15.7 years 283,354 RCC 2015-CRE4 Senior Notes 223,735 2,815 220,920 2.16% 16.1 years 309,729 Unsecured Junior Subordinated Debentures 51,548 27 51,521 4.58% 20.3 years — 6.0% Convertible Senior Notes 115,000 4,076 110,924 6.00% 2.4 years — 8.0% Convertible Senior Notes 100,000 4,045 95,955 8.00% 3.5 years — CRE - Term Repurchase Facilities (2) 282,863 1,583 281,280 2.78% 17 days 418,236 CMBS - Term Repurchase Facilities (3) 83,073 37 83,036 2.48% 244 days 119,531 Trust Certificate - Term Repurchase Facility (4) 26,655 357 26,298 5.95% 2.4 years 89,181 Residential Investments - Term Repurchase Facility (5) 888 — 888 3.00% 5 days 1,018 Residential Mortgage Financing Agreements (6) 146,764 — 146,764 3.07% 80 days 201,114 Senior Secured Revolving Credit Agreement (8) 144,000 — 144,000 3.22% 2.8 years 320,447 Total $ 1,593,902 $ 18,683 $ 1,575,219 3.31% 7.7 years $ 2,095,894 Principal Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Weighted Average Value of As of December 31, 2015: RREF CDO 2006-1 Senior Notes (1) $ 52,772 $ — $ 52,772 2.60% 30.6 years $ 94,379 RREF CDO 2007-1 Senior Notes (1) 91,752 — 91,752 1.65% 30.8 years 210,904 RCC CRE Notes 2013 Senior Notes 58,465 664 57,801 3.21% 13.0 years 104,439 RCC 2014-CRE2 Senior Notes 198,594 2,991 195,603 1.68% 16.3 years 313,663 RCC 2015-CRE3 Senior Notes 282,127 3,466 278,661 2.25% 16.2 years 341,099 RCC 2015-CRE4 Senior Notes 223,735 3,160 220,575 2.06% 16.6 years 308,042 Apidos Cinco CDO Senior Notes (1) 135,417 — 135,417 1.25% 4.4 years 154,584 Unsecured Junior Subordinated Debentures 51,548 135 51,413 4.40% 20.8 years — 6.0% Convertible Senior Notes 115,000 4,917 110,083 6.00% 2.9 years — 8.0% Convertible Senior Notes 100,000 4,599 95,401 8.00% 4.0 years — CRE - Term Repurchase Facilities (2) 225,346 2,418 222,928 2.64% 17 days 321,267 CMBS - Term Repurchase Facility (3) 25,658 2 25,656 1.57% 18 days 31,650 Trust Certificates - Term Repurchase Facility (4) 26,659 415 26,244 5.85% 2.9 years 89,181 Residential Investments - Term Repurchase Facility (5) 782 — 782 2.75% 264 days 835 Residential Mortgage Financing Agreements (6) 85,819 — 85,819 3.10% 257 days 120,952 CMBS - Short Term Repurchase Agreements (7) 57,407 — 57,407 2.06% 18 days 79,347 Senior Secured Revolving Credit Agreement (8) 190,000 3,026 186,974 3.09% 3.2 years 376,306 Total $ 1,921,081 $ 25,793 $ 1,895,288 2.89% 10.4 years $ 2,546,648 (1) On January 1, 2016, RREF CDO 2006-1, RREF CDO 2007-1 and Apidos Cinco CDO were deconsolidated in accordance with guidance on consolidation ( see Note 2 ). (2) Amounts also include accrued interest expense of $356,000 and $315,000 related to CRE repurchase facilities as of June 30, 2016 and December 31, 2015 , respectively. (3) Amounts also include accrued interest expense of $157,000 and $18,000 related to CMBS repurchase facilities as of June 30, 2016 and December 31, 2015 , respectively. Amounts do not reflect CMBS repurchase agreement borrowings that are components of linked transactions as of December 31, 2015 . (4) Amounts also include accrued interest expense of $57,000 and $61,000 related to trust certificate repurchase facilities as of June 30, 2016 and December 31, 2015 , respectively. (5) Amounts also include accrued interest expense of $26,000 and $30,000 related to residential investment facilities as of June 30, 2016 and December 31, 2015 , respectively. (6) The value of collateral related to residential mortgage financing agreements is the appraised value of the collateral underlying the residential mortgage loans subject to repurchase as of June 30, 2016 and December 31, 2015 . (7) Amounts also include accrued interest expense of $0 and $40,000 related to CMBS short term repurchase facilities as of June 30, 2016 and December 31, 2015 . (8) Subsequent to June 30, 2016, the Company entered into and closed on a purchase agreement to sell its interest in Northport TRS, LLC. As a result of the transaction, $2.6 million of amortization of the remaining deferred debt issuance costs related to the credit facility was accelerated and recorded as of June 30, 2016 ( see Note 24 ). |
Schedule of Securitizations | The following table sets forth certain information with respect to the Company's consolidated securitizations: Securitization Closing Date Maturity Date End of Designated Principal Reinvestment Period (1) Total Note Paydowns as of June 30, 2016 (in millions) RCC CRE Notes 2013 December 2013 December 2028 N/A $ 213.1 RCC 2014-CRE2 July 2014 April 2032 July 2016 $ 85.3 RCC 2015-CRE3 February 2015 March 2032 February 2017 $ 60.4 RCC 2015-CRE4 August 2015 August 2032 August 2017 $ — (1) The designated principal reinvestment period is the period where principal payments received by each respective securitization may be designated by the Company to purchase funding participations of existing collateral originally underwritten at the close of each securitization, which was funded outside of the deal structure. |
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, 2016: CMBS Term Repurchase Facilities Wells Fargo Bank, National Association $ 5,533 18 days 1.67% Deutsche Bank AG $ 32,692 329 days 2.78% CRE Term Repurchase Facilities Wells Fargo Bank, National Association $ 74,444 18 days 2.56% Morgan Stanley Bank, National Association $ 60,571 15 days 3.06% Trust Certificates Term Repurchase Facility RSO Repo SPE Trust 2015 $ 62,576 2.4 years 5.95% Residential Investments Term Repurchase Facility Wells Fargo Bank, National Association $ 130 5 days 3.00% Residential Mortgage Financing Agreements New Century Bank $ 15,088 22 days 3.13% Wells Fargo Bank, National Association $ 39,262 59 days 3.03% As of December 31, 2015: CMBS Term Repurchase Facility Wells Fargo Bank, National Association $ 6,053 18 days 1.57% CRE Term Repurchase Facilities Wells Fargo Bank, National Association $ 54,674 18 days 2.39% Morgan Stanley Bank, National Association $ 41,248 15 days 2.96% Trust Certificates Term Repurchase Facility RSO Repo SPE Trust 2015 $ 62,575 2.9 years 5.85% Short-Term Repurchase Agreements - CMBS Wells Fargo Securities, LLC $ 6,288 11 days 1.93% Deutsche Bank Securities, LLC $ 16,330 20 days 2.05% Residential Investments Term Repurchase Facility Wells Fargo Bank, National Association $ 54 264 days 2.75% Residential Mortgage Financing Agreements New Century Bank $ 17,322 124 days 3.17% Wells Fargo Bank, National Association $ 17,811 134 days 3.03% (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 | Contractual maturity dates of the Company's borrowings by category and year are presented in the table below (in thousands): Total 2016 2017 2018 2019 2020 and Thereafter CRE Securitizations $ 634,553 $ — $ — $ — $ — $ 634,553 Repurchase Agreements 538,266 451,525 60,443 26,298 — — Unsecured Junior Subordinated Debentures 51,521 — — — — 51,521 6.0 % Convertible Notes 110,924 — — 110,924 — — 8.0 % Convertible Notes 95,955 — — — — 95,955 Senior Secured Revolving Credit Facility 144,000 — — — 144,000 — Total $ 1,575,219 $ 451,525 $ 60,443 $ 137,222 $ 144,000 $ 782,029 |
CRE - Term Repurchase Facility | |
Debt Instrument [Line Items] | |
Repurchase and Mortgage Finance Facilities | The following table sets forth certain information with respect to the Company's borrowings (in thousands, except percentages): As of June 30, 2016 As of December 31, 2015 Outstanding Value of Number of Weighted Average Outstanding Value of Number of Weighted Average CMBS Term Wells Fargo Bank (1) $ 22,593 $ 28,204 20 1.67% $ 25,656 $ 31,650 21 1.57% Deutsche Bank (2) 60,443 91,327 20 2.78% — — — —% CRE Term Wells Fargo Bank (3) 159,276 234,122 13 2.56% 123,937 179,169 9 2.39% Morgan Stanley Bank (4) 122,004 184,114 10 3.06% 98,991 142,098 7 2.96% Trust Certificates Term Repurchase Facility RSO Repo SPE Trust 2015 (5) 26,298 89,181 1 5.95% 26,244 89,181 1 5.85% Short-Term Repurchase Wells Fargo Securities, LLC — — — —% 13,548 19,829 3 1.93% Deutsche Bank Securities, LLC — — — —% 43,859 59,518 17 2.10% Residential Investments Term Repurchase Facility Wells Fargo Bank 888 1,018 2 3.00% 782 835 1 2.75% Residential Mortgage New Century Bank 52,064 67,152 241 3.13% 43,789 61,111 199 3.17% Wells Fargo Bank 94,700 133,962 334 3.03% 42,030 59,841 166 3.03% Totals $ 538,266 $ 829,080 $ 418,836 $ 643,232 (1) The Wells Fargo Bank CMBS term repurchase facility includes $1,000 and $2,000 of deferred debt issuance costs as of June 30, 2016 and December 31, 2015 , respectively. (2) The Deutsche Bank CMBS term repurchase facility includes $36,000 and $0 of deferred debt issuance costs as of June 30, 2016 and December 31, 2015 , respectively. (3) The Wells Fargo Bank CRE term repurchase facility includes $163,000 and $675,000 of deferred debt issuance costs as of June 30, 2016 and December 31, 2015 , respectively. (4) The Morgan Stanley Bank CRE term repurchase facility includes $1.4 million and $1.7 million of deferred debt issuance costs as of June 30, 2016 and December 31, 2015 , respectively. (5) The RSO Repo SPE Trust 2015 term repurchase facility includes $357,000 and $415,000 of deferred debt issuance costs as of June 30, 2016 and December 31, 2015 , respectively. |
SHARE ISSUANCE AND REPURCHASE (
SHARE ISSUANCE AND REPURCHASE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock by Class, Issues | For the Six Months Ended Total Outstanding Number of Shares Repurchased Weighted Average Purchase Price Number of Shares Weighted Average Offering Price 8.50% Series A Preferred Stock — $ — 1,069,016 $ 24.29 8.25% Series B Preferred Stock 195,900 $ 15.80 5,544,579 $ 24.02 8.625% Series C Preferred Stock — $ — 4,800,000 $ 25.00 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of restricted common stock transactions | The following table summarizes the Company's restricted common stock transactions: Non-Employee Directors Non-Employees Employees Total Unvested shares as of January 1, 2016 15,267 617,657 58,445 691,369 Issued 23,193 230,338 50,784 304,315 Vested (13,895 ) (307,562 ) (18,452 ) (339,909 ) Forfeited — — — — Unvested shares as of June 30, 2016 24,565 540,433 90,777 655,775 |
Schedule of restricted stock granted | The following table summarizes restricted common stock grants during the six months ended June 30, 2016 : Date Shares Vesting/Year Date(s) January 21, 2016 130,903 33.3% 1/21/17, 1/21/18, 1/21/19 January 21, 2016 50,784 33.3% 1/21/17, 1/21/18, 1/21/19 February 1, 2016 3,421 100% 2/1/17 February 5, 2016 90,595 33.3% 2/5/17, 2/5/18, 2/5/19 March 8, 2016 13,912 100% 3/8/17 March 14, 2016 3,158 100% 3/14/17 March 31, 2016 8,840 100% 5/15/17 (1) June 6, 2016 2,702 100% 6/6/17 (1) In connection with a grant of restricted common stock made on September 24, 2014 , the Company agreed to issue up to 17,682 shares of common stock if certain loan origination performance thresholds were achieved by personnel from the Company’s loan origination team. The performance criteria were measured at the end of two annual measurement periods which began 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 were not met, the accrued dividends would be forfeited. As a consequence, the Company did not record the dividend equivalent rights until earned. On March 31, 2016 , the final measurement period ended and 8,840 shares were earned. Approximately $42,000 of accrued dividend equivalent rights were paid in April 2016. These shares will vest over the subsequent 12 months at a rate of one-fourth per quarter. |
Summary of stock option transactions | The following table summarizes the status of the Company’s vested stock options as of June 30, 2016 : 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, 2016 26,250 $ 46.60 Vested — — Exercised — — Forfeited — — Expired — — Vested as of June 30, 2016 26,250 $ 46.60 2.45 $ — |
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, 2016 2015 2016 2015 Restricted shares granted to non-employees (1) $ 1,288 $ 543 $ 1,713 $ 1,307 Restricted shares granted to employees 63 184 837 350 Restricted shares granted to non-employee directors 64 64 128 129 Total equity compensation expense $ 1,415 $ 791 $ 2,678 $ 1,786 (1) Non-employees are employees of Resource America. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 2015 2016 2015 Basic: Net income (loss) allocable to common shares $ (1,536 ) $ (31,011 ) $ 8,137 $ (21,609 ) Weighted average number of shares outstanding 30,410,451 32,852,316 30,505,428 32,833,426 Basic net income (loss) per share $ (0.05 ) $ (0.94 ) $ 0.27 $ (0.66 ) Diluted: Net income (loss) allocable to common shares $ (1,536 ) $ (31,011 ) $ 8,137 $ (21,609 ) Weighted average number of shares outstanding 30,410,451 32,852,316 30,505,428 32,833,426 Additional shares due to assumed conversion of dilutive instruments — — 218,844 — Adjusted weighted-average number of common shares outstanding 30,410,451 32,852,316 30,724,272 32,833,426 Diluted net income (loss) per share $ (0.05 ) $ (0.94 ) $ 0.26 $ (0.66 ) |
ACCUMULATED OTHER COMPREHENSI47
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive loss | The following table presents the changes in each component of accumulated other comprehensive income for the six months ended June 30, 2016 (dollars in thousands): Net unrealized (loss) gain on derivatives Net unrealized (loss) gain on securities, Foreign Currency Translation Accumulated other comprehensive income (loss) January 1, 2016 $ (3,471 ) $ 2,568 $ (63 ) $ (966 ) Other comprehensive gain (loss) before reclassifications 117 1,936 — 2,053 Amounts reclassified from accumulated other (55 ) (332 ) — (387 ) June 30, 2016 $ (3,409 ) $ 4,172 $ (63 ) $ 700 |
DISTRIBUTIONS (Tables)
DISTRIBUTIONS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
DISTRIBUTIONS [Abstract] | |
Dividends Declared | The following tables present dividends declared (on a per share basis) for the three and six months ended June 30, 2016 and for the year ended December 31, 2015 : Common Stock Date Paid Total Dividend (in thousands) 2016 March 31 April 28 $ 13,073 $ 0.42 June 30 July 28 $ 13,051 $ 0.42 2015 March 31 April 28 $ 21,444 $ 0.64 June 30 July 28 $ 21,426 $ 0.64 September 30 October 28 $ 20,667 $ 0.64 December 31 January 28, 2016 $ 13,274 $ 0.42 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) 2016 March 31 May 2 $ 568 $ 0.531250 May 2 $ 2,859 $ 0.515625 May 2 $ 2,588 $ 0.539063 June 30 August 1 $ 568 $ 0.531250 August 1 $ 2,859 $ 0.515625 August 1 $ 2,588 $ 0.539063 2015 March 31 April 30 $ 568 $ 0.531250 April 30 $ 2,960 $ 0.515625 April 30 $ 2,588 $ 0.539063 June 30 July 30 $ 568 $ 0.531250 July 30 $ 2,960 $ 0.515625 July 30 $ 2,588 $ 0.539063 September 30 October 30 $ 568 $ 0.531250 October 30 $ 2,960 $ 0.515625 October 30 $ 2,588 $ 0.539063 December 31 February 1, 2016 $ 568 $ 0.531250 February 1, 2016 $ 2,960 $ 0.515625 February 1, 2016 $ 2,588 $ 0.539063 |
FAIR VALUE OF FINANCIAL INSTR49
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016: Assets: Investment securities, trading $ — $ — $ 3,982 $ 3,982 Investment securities available-for-sale — 2,017 253,263 255,280 Loans held for sale — 116,385 44,744 161,129 Derivatives — 722 5,411 6,133 Total assets at fair value $ — $ 119,124 $ 307,400 $ 426,524 Liabilities: Derivatives $ — $ 3,035 $ 49 $ 3,084 Total liabilities at fair value $ — $ 3,035 $ 49 $ 3,084 As of December 31, 2015: Assets: Investment securities, trading $ — $ — $ 25,550 $ 25,550 Investment securities available-for-sale — 4,451 203,637 208,088 Loans held for sale — 66,588 29,358 95,946 Derivatives (net) — 826 2,620 3,446 Total assets at fair value $ — $ 71,865 $ 261,165 $ 333,030 Liabilities: Derivatives $ — $ — $ 3,941 $ 3,941 Total liabilities at fair value $ — $ — $ 3,941 $ 3,941 |
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 ABS Structured Loans Held for Sale Warrants Interest Rate Lock Commitments Forwards - Residential Mortgage Loans Total Balance, January 1, 2016 $ 159,424 $ 44,213 $ 25,550 $ 29,358 $ 1,051 $ 1,224 $ 345 $ 261,165 Included in earnings (1) (302 ) 295 328 (330 ) (198 ) 14,165 (199 ) 13,759 Purchases/Originations 5,138 44,700 — 77,745 — — — 127,583 Sales — (67,639 ) — (60,595 ) — — — (128,234 ) Paydowns (19,283 ) (27,837 ) (140 ) (1,434 ) — — — (48,694 ) Issuances — — — — — — — — Settlements — — 96 — — (10,992 ) 15 (10,881 ) Capitalized Interest — 8,437 — — — — — 8,437 Included in OCI (1,043 ) (9,218 ) — — — — — (10,261 ) Deconsolidation of VIEs (55,776 ) 172,154 (21,852 ) — — — — 94,526 Transfers into Level 3 — — — — — — — Balance, June 30, 2016 $ 88,158 $ 165,105 $ 3,982 $ 44,744 $ 853 $ 4,397 $ 161 $ 307,400 (1) Structured finance securities, loans held for sale, interest rate lock commitments, and forwards on residential mortgage loans include $328,000 , $(3,400) , $0 , and $(8,000) , respectively, in earnings attributable to the change in unrealized gains or (losses) relating to assets still held at the reporting date for the six months ended June 30, 2016 . 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 Forwards - Residential Mortgage Loans Interest Rate Lock Commitments Total Beginning balance, January 1, 2016 $ 3,459 $ 479 $ 3 $ 3,941 Included in earnings 50 (252 ) 67 (135 ) Settlements — (214 ) (34 ) (248 ) Unrealized gains - included in accumulated other comprehensive income (3,509 ) — — (3,509 ) Ending balance, June 30, 2016 $ — $ 13 $ 36 $ 49 |
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, 2016: Assets : Loans held for sale $ — $ 2,564 $ 256,615 $ 259,179 Impaired loans — — 38,133 38,133 Mortgage servicing rights — — 20,560 20,560 Total assets at fair value $ — $ 2,564 $ 315,308 $ 317,872 As of December 31, 2015: Assets : Loans held for sale $ — $ 1,279 $ 153 $ 1,432 Impaired loans — 262 129,433 129,695 Total assets at fair value $ — $ 1,541 $ 129,586 $ 131,127 |
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, 2016: Loans held-for-investment $ 1,476,880 $ 1,471,811 $ — $ 51,602 $ 1,420,209 CDO notes $ 634,553 $ 628,499 $ — $ — $ 628,499 Junior subordinated notes $ 51,521 $ 24,369 $ — $ — $ 24,369 Convertible notes $ 206,879 $ 215,000 $ — $ — $ 215,000 Repurchase agreements $ 537,670 $ 539,648 $ — $ — $ 539,648 Senior secured revolving credit agreement $ 144,000 $ 144,000 $ — $ — $ 144,000 As of December 31, 2015: Loans held-for-investment $ 2,160,751 $ 2,150,061 $ — $ 222,100 $ 1,927,961 CDO notes $ 1,032,581 $ 923,817 $ — $ — $ 923,817 Junior subordinated notes $ 51,413 $ 17,907 $ — $ — $ 17,907 Convertible notes $ 205,484 $ 205,484 $ — $ — $ 205,484 Repurchase agreements $ 418,836 $ 418,836 $ — $ — $ 418,836 Senior secured revolving credit agreement $ 186,974 $ 186,974 $ — $ — $ 186,974 |
MARKET RISK AND DERIVATIVE IN50
MARKET RISK AND DERIVATIVE INSTRUMENTS (Tables) - Interest Rate Swaps | 6 Months Ended |
Jun. 30, 2016 | |
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 periods presented: Fair Value of Derivative Instruments as of June 30, 2016 (in thousands) Asset Derivatives Notional Amount Balance Sheet Location Fair Value Interest rate lock agreements $ 270,487 Derivatives, at fair value $ 4,397 Forward contracts - residential mortgage lending $ 60,857 Derivatives, at fair value $ 161 Forward contracts - foreign currency, hedging (1)(2) $ 26,640 Derivatives, at fair value $ 722 Warrants (3) $ 553 Derivatives, at fair value $ 853 Liability Derivatives Notional Amount Balance Sheet Location Fair Value Interest rate lock agreements $ 2,646 Derivatives, at fair value $ 36 Forward contracts - residential mortgage lending $ 363,721 Derivatives, at fair value $ 2,881 Forward contracts - TBA securities $ 41,000 Derivatives, at fair value $ 167 Interest rate swap contracts, hedging $ — Accumulated other comprehensive (income) loss $ 67 (1) Foreign currency forward contracts are accounted for as fair value hedges. (2) Notional amount presented on currency converted basis. The base currency notional amount of the Company's foreign currency hedging forward contracts was €24.0 million as of June 30, 2016 . (3) The notional amount of the Company's warrants is calculated by multiplying the number of shares available for purchase by exercise price. Fair Value of Derivative Instruments as of December 31, 2015 (in thousands) Asset Derivatives Notional Amount Balance Sheet Location Fair Value Interest rate lock agreements (1) $ 105,385 Derivatives, at fair value $ 1,224 Forward contracts - residential mortgage lending $ 92,413 Derivatives, at fair value $ 345 Forward contracts - foreign currency, hedging (2)(3) $ 24,850 Derivatives, at fair value $ 727 Forward contracts - TBA securities $ 29,500 Derivatives, at fair value $ 99 Warrants (4) $ 553 Derivatives, at fair value $ 1,051 Liability Derivatives Notional Amount Balance Sheet Location Fair Value Interest rate swap contracts, hedging (5) $ 102,799 Derivatives, at fair value $ 3,459 Interest rate lock agreements (6) $ 505 Derivatives, at fair value $ 3 Forward contracts - residential mortgage lending $ 143,553 Derivatives, at fair value $ 479 Forward contracts - TBA securities $ 1,500 Derivatives, at fair value $ — Interest rate swap contracts, hedging $ 102,799 Accumulated other comprehensive (income) loss $ (3,471 ) (1) The notional amount of the Company's interest rate lock agreements in an asset position is the pull-through weighted total commitments with a weighted average pull-through percentage of 85.9% . (2) Notional amount presented on currency converted basis. The base currency notional amount of the Company's foreign currency hedging forward contracts was €22.9 million as of December 31, 2015 . (3) Foreign currency forward contracts are accounted for as fair value hedges. (4) The notional amount of the Company's warrants is calculated by multiplying the number of shares available for purchase by the exercise price. (5) Interest rate swap contracts are accounted for as cash flow hedges. (6) The notional amount of the Company's interest rate lock agreements in a liability position is the pull-through weighted total commitments with a weighted average pull-through percentage of 19.5% . |
The Effect of Derivative Instruments on the Statement of Income | The Effect of Derivative Instruments on the Statements of Operations for the Six Months Ended June 30, 2016 (in thousands) Derivatives Statement of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (70 ) Interest rate lock agreements Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 3,141 Forward contracts - residential mortgage lending Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ (2,587 ) Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ (62 ) Forward contracts - TBA securities Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ (830 ) (1) Negative values indicate a decrease to the associated consolidated statements of operations line items. 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 consolidated statements of operations line items. |
OFFSETTING OF FINANCIAL ASSET51
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016: Derivative hedging instruments, at fair value $ 6,133 $ — $ 6,133 $ — $ — $ 6,133 Total $ 6,133 $ — $ 6,133 $ — $ — $ 6,133 As of December 31, 2015: Derivative hedging instruments, at fair value $ 3,446 $ — $ 3,446 $ — $ — $ 3,446 Total $ 3,446 $ — $ 3,446 $ — $ — $ 3,446 |
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, 2016: Derivative hedging instruments, $ 3,084 $ — $ 3,084 $ — $ — $ 3,084 Repurchase agreements and term facilities (4) 538,266 — 538,266 538,266 — — Total $ 541,350 $ — $ 541,350 $ 538,266 $ — $ 3,084 As of December 31, 2015: Derivative hedging instruments, (3) $ 3,941 $ — $ 3,941 $ — $ 500 $ 3,441 Repurchase agreements and term facilities (4) 418,836 — 418,836 418,836 — — Total $ 422,777 $ — $ 422,777 $ 418,836 $ 500 $ 3,441 (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 $500,000 at December 31, 2015 . (4) The combined fair value of securities and loans pledged against the Company's various term facilities and repurchase agreements was $829.1 million and $643.2 million at June 30, 2016 and December 31, 2015 , respectively. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Summarized operating segment data are as follows (in thousands): Commercial Real Estate Lending Commercial Finance Middle Market Lending Residential Mortgage Lending Corporate & Other (1)(2)(3) Total For the Three Months Ended June 30, 2016: Interest income: External customers $ 25,201 $ 737 $ 8,176 $ 1,468 $ 113 $ 35,695 Other 3 2,288 11 1 4 2,307 Total interest income 25,204 3,025 8,187 1,469 117 38,002 Interest expense 8,364 (2 ) 4,017 1,174 5,083 18,636 Net interest income 16,840 3,027 4,170 295 (4,966 ) 19,366 Amortization of MSRs — — — (1,205 ) — (1,205 ) Other income from external customers — 762 — 546 17 1,325 Total revenues 16,840 3,789 4,170 (364 ) (4,949 ) 19,486 Less: Segment operating expenses 67 301 997 102 3,048 4,515 General and administrative 865 350 959 7,111 1,868 11,153 Depreciation and amortization — 327 4 140 33 504 Provision (recovery) for loan losses (68 ) 215 11,952 — — 12,099 Equity in earnings of unconsolidated subsidiaries (181 ) (2,515 ) — — — (2,696 ) Gain on sale of mortgages — — — (4,768 ) — (4,768 ) Other (income) expense (847 ) 465 198 (687 ) (1,490 ) (2,361 ) Income (loss) before taxes 17,004 4,646 (9,940 ) (2,262 ) (8,408 ) 1,040 Income tax (expense) benefit — 2,629 — 1,007 (147 ) 3,489 Net income (loss) $ 17,004 $ 7,275 $ (9,940 ) $ (1,255 ) $ (8,555 ) $ 4,529 Commercial Real Estate Lending Commercial Finance Middle Market Lending Residential Mortgage Lending Corporate & Other (1)(2)(3) Total For the Three Months Ended June 30, 2015: Interest income: External customers $ 22,245 $ 4,843 $ 7,324 $ 1,010 $ — $ 35,422 Other 66 1,039 1 1 12 1,119 Total interest income 22,311 5,882 7,325 1,011 12 36,541 Interest expense 7,838 787 1,321 872 4,985 15,803 Net interest income 14,473 5,095 6,004 139 (4,973 ) 20,738 Amortization of MSRs — — — (1,006 ) — (1,006 ) Other income from external customers — 1,150 — 2,672 17 3,839 Total revenues 14,473 6,245 6,004 1,805 (4,956 ) 23,571 Less: Segment operating expenses — 249 663 (110 ) 3,513 4,315 General and administrative 333 498 797 5,846 2,520 9,994 Depreciation and amortization — 448 — 140 33 621 Provision (recovery) for loan losses 38,072 290 755 (307 ) — 38,810 Equity in earnings of unconsolidated subsidiaries — (662 ) — — — (662 ) Gain on sale of mortgages — — — (4,168 ) — (4,168 ) Other (income) expense 154 (5,680 ) (125 ) (3,581 ) 3,690 (5,542 ) Income (loss) before taxes (24,086 ) 11,102 3,914 3,985 (14,712 ) (19,797 ) Income tax (expense) benefit 1 (1,548 ) — (1,475 ) 104 (2,918 ) Net income (loss) $ (24,085 ) $ 9,554 $ 3,914 $ 2,510 $ (14,608 ) $ (22,715 ) Commercial Real Estate Lending Commercial Finance Middle Market Lending Residential Mortgage Lending Corporate & Other (1)(2)(3) Total For the Six Months Ended June 30, 2016: Interest income: External customers $ 50,240 $ 1,366 $ 20,381 $ 2,451 $ 113 $ 74,551 Other 24 3,497 16 — 11 3,548 Total interest income 50,264 4,863 20,397 2,451 124 78,099 Interest expense 16,588 (2 ) 5,714 1,946 10,161 34,407 Net interest income 33,676 4,865 14,683 505 (10,037 ) 43,692 Amortization of MSRs — — — (2,262 ) — (2,262 ) Other income from external customers — 1,334 — 330 35 1,699 Total revenues 33,676 6,199 14,683 (1,427 ) (10,002 ) 43,129 Less: Segment operating expenses 133 570 2,511 909 5,695 9,818 General and administrative 1,256 701 2,013 13,400 3,853 21,223 Depreciation and amortization — 802 4 271 68 1,145 Impairment losses — — — — — — Provision (recovery) for loan losses — 76 12,060 — — 12,136 Equity in earnings of unconsolidated subsidiaries (453 ) (4,465 ) — — — (4,918 ) Gain on sale of mortgages — — — (7,901 ) — (7,901 ) Other (income) expense (843 ) (976 ) 198 (1,610 ) (967 ) (4,198 ) Income (loss) before taxes 33,583 9,491 (2,103 ) (6,496 ) (18,651 ) 15,824 Income tax (expense) benefit — 264 — 2,592 (131 ) 2,725 Net income (loss) $ 33,583 $ 9,755 $ (2,103 ) $ (3,904 ) $ (18,782 ) $ 18,549 Commercial Real Estate Lending Commercial Finance Middle Market Lending Residential Mortgage Lending Corporate & Other (1)(2)(3) Total For the Six Months Ended June 30, 2015: Interest income: External customers $ 44,591 $ 11,159 $ 13,835 $ 2,647 $ — $ 72,232 Other 70 1,804 2 1 74 1,951 Total interest income 44,661 12,963 13,837 2,648 74 74,183 Interest expense 14,929 1,857 2,201 1,989 9,729 30,705 Net interest income 29,732 11,106 11,636 659 (9,655 ) 43,478 Amortization of MSRs — — — (1,831 ) — (1,831 ) Other income from external customers — 2,365 — 3,452 33 5,850 Total revenues 29,732 13,471 11,636 2,280 (9,622 ) 47,497 Less: Segment operating expenses 6 668 1,203 1,544 5,478 8,899 General and administrative 749 1,669 1,284 11,880 4,023 19,605 Depreciation and amortization — 892 1 231 62 1,186 Impairment losses — 59 — — — 59 Provision (recovery) for loan losses 38,072 1,518 3,320 (110 ) — 42,800 Equity in earnings of unconsolidated subsidiaries (46 ) (1,322 ) — — — (1,368 ) Gain on sale of mortgages — — — (7,702 ) — (7,702 ) Other (income) expense 847 (8,694 ) (108 ) (5,882 ) (2,165 ) (16,002 ) Income (loss) before taxes (9,896 ) 18,681 5,936 2,319 (17,020 ) 20 Income tax (expense) benefit (39 ) (1,497 ) — (2,981 ) (248 ) (4,765 ) Net income (loss) $ (9,935 ) $ 17,184 $ 5,936 $ (662 ) $ (17,268 ) $ (4,745 ) (1) Includes interest expense for the Convertible Senior Notes of $4.4 million and $8.9 million for the three and six months ended June 30, 2016 and $4.4 million and $8.5 million for the three and six months ended June 30, 2015 . (2) Includes interest expense for the Unsecured Junior Subordinated Debentures of $651,000 and $1.3 million for the three and six months ended June 30, 2016 and $602,000 and $1.2 million for the three months and six ended June 30, 2015 . (3) Includes general corporate expenses not allocable to any particular operating segment. The following table presents total assets by segment for the periods indicated (in thousands): Total Assets (2) Commercial Real Estate Lending Commercial Finance Middle Market Lending Residential Mortgage Lending Corporate & Other (1) Total June 30, 2016 $ 1,680,996 $ 137,621 $ 321,460 $ 223,326 $ 26,441 $ 2,389,844 December 31, 2015 $ 1,907,951 $ 298,028 $ 384,973 $ 149,351 $ 20,129 $ 2,760,432 (1) Includes assets not allocable to any particular operating segment. (2) On January 1, 2016, we adopted amendments to the consolidation accounting guidance (see Note 2) and deconsolidated two and three VIEs in the Commercial Real Estate Lending and Commercial Finance operating segments, respectively. |
ORGANIZATION AND BASIS OF PRE53
ORGANIZATION AND BASIS OF PRESENTATION (Details) - Entity | Dec. 15, 2015 | Apr. 30, 2015 | Feb. 26, 2014 | Jul. 31, 2014 | May 31, 2013 | Jun. 30, 2016 | Sep. 30, 2014 |
RREF 2006-1 | RCC Real Estate | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 100.00% | ||||||
Northport LLC | RCC Commercial | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 29.60% | ||||||
Northport LLC | Resource TRS, LLC | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 25.80% | ||||||
Northport LLC | Resource TRS, Inc | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 44.60% | ||||||
Apidos III | RCC Commercial | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 100.00% | ||||||
Apidos Cinco | RCC Commercial II | |||||||
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 | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 68.30% | ||||||
Moselle | RCC Commercial II | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 88.60% | ||||||
Apidos I | RCC Commercial III | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 90.00% | ||||||
Apidos I | RSO EquityCo, LLC | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 10.00% | ||||||
RREF 2007-1 | RCC Real Estate | |||||||
Variable Interest Entity [Line Items] | |||||||
Percentage of outstanding notes purchased | 100.00% | ||||||
RCC CRE Notes 2013 Senior Notes | RCC Real Estate | |||||||
Variable Interest Entity [Line Items] | |||||||
Percentage of outstanding notes purchased | 100.00% | ||||||
Resource Capital Corp. 2014-CRE2, Ltd. | RCC Real Estate | |||||||
Variable Interest Entity [Line Items] | |||||||
Percentage of outstanding notes purchased | 100.00% | ||||||
Resource Capital Asset Management CDOs | Resource TRS II | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 100.00% | ||||||
Number of CDO issuers | 2 | ||||||
Apidos CLO VIII Ltd. | Resource TRS III | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 33.00% | ||||||
Apidos CLO VIII Ltd. | RSO EquityCo, LLC | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 10.00% | ||||||
Life Care Funding, LLC | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 70.90% | 60.70% | 50.20% | ||||
Life Care Funding, LLC | Long Term Care Conversion Funding | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 70.90% | ||||||
Long Term Care Conversion Funding | Long Term Care Conversion, Inc | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 100.00% | ||||||
Primary Capital Advisors LLC | RCC Residential, Inc. | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 100.00% | ||||||
RCM Global, LLC | RCC Residential, Inc. | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 63.80% | 25.90% | |||||
RCC Opportunities Trust | RCC Depositor, LLC | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 100.00% | ||||||
Resource Capital Corp. 2015-CRE3, Ltd. | RCC Real Estate | |||||||
Variable Interest Entity [Line Items] | |||||||
Percentage of outstanding notes purchased | 100.00% | ||||||
Pelium | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage (percent) | 80.20% | 80.40% | |||||
CVC Capital Partners | Resource America | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage (percent) | 24.00% |
SUMMARY OF SIGNIFICANT ACCOUN54
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | Aug. 31, 2015 | Aug. 03, 2015 | Jun. 30, 2016USD ($)Entityshares | Jan. 01, 2016Entity | Dec. 31, 2015USD ($)Entityshares | |
Variable Interest Entity [Line Items] | ||||||
Common stock, shares authorized (in shares) | shares | 125,000,000 | 125,000,000 | ||||
Preferred stock, shares authorized (in shares) | shares | 100,000,000 | |||||
Cash balance in excess of federal deposit Insurance limit, amount | [1] | $ 61,700 | $ 74,300 | |||
Deconsolidation of variable interest entities | (23,851) | |||||
Stock split, conversion ratio | 0.25 | 4 | ||||
Accumulated Distributions in Excess of Net Income | ||||||
Variable Interest Entity [Line Items] | ||||||
Deconsolidation of variable interest entities | $ (16,932) | |||||
VIE, Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of consolidated VIEs | Entity | 7 | 5 | 13 | |||
[1] | June 30, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$— $95 Restricted cash6,595 39,061 Investment securities available-for-sale, pledged as collateral, at fair value— 66,137 Loans held for sale— 1,475Loans, pledged as collateral and net of allowances of $1.0 million and $42.8 million942,182 1,416,441 Interest receivable3,767 6,592 Prepaid expenses42 238 Principal paydown receivable8,100 17,800 Other assets41 833 Total assets of consolidated VIEs$960,727 $1,548,672 |
SUMMARY OF SIGNIFICANT ACCOUN55
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Variable Interest Entity (Details) | Jun. 30, 2016USD ($) | Jan. 01, 2016USD ($)Loan | Dec. 31, 2015USD ($) |
ASSETS: | |||
Cash and cash equivalents | $ 0 | $ 95,000 | |
Restricted cash | 6,595,000 | 39,061,000 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | 66,137,000 | |
Loans, pledged as collateral and net of allowances of $1.0 million and $42.8 million | 942,182,000 | 1,416,441,000 | |
Loans held for sale | 0 | 1,475,000 | |
Interest receivable | 3,767,000 | 6,592,000 | |
Prepaid expenses | 42,000 | 238,000 | |
Principal paydown receivable | 8,100,000 | 17,800,000 | |
Other assets | 41,000 | 833,000 | |
Total assets of consolidated VIEs | 960,727,000 | 1,548,672,000 | |
LIABILTITES: | |||
Borrowings | 634,553,000 | 1,032,581,000 | |
Accrued interest expense | 549,000 | 923,000 | |
Derivatives, at fair value | 0 | 3,346,000 | |
Accounts payable and other liabilities | 157,000 | (117,000) | |
Total liabilities of consolidated VIEs | 635,259,000 | 1,036,733,000 | |
Equity [Abstract] | |||
Specific Allowance | 0 | 41,556,000 | |
Allowance for loan loss | 1,436,000 | 47,071,000 | |
Impaired financing receivable, recorded investment | $ 38,133,000 | $ 171,251,000 | |
Total Deconsolidated VIEs | |||
ASSETS: | |||
Cash and cash equivalents | $ 472,000 | ||
Restricted cash | 17,076,000 | ||
Investment securities available-for-sale, pledged as collateral, at fair value | 364,589,000 | ||
Loans, pledged as collateral and net of allowances of $1.0 million and $42.8 million | 1,322,000 | ||
Loans held for sale | 68,997,000 | ||
Investment securities, trading | 21,851,000 | ||
Investments in deconsolidated entities | 17,250,000 | ||
Interest receivable | 4,299,000 | ||
Prepaid expenses | 256,000 | ||
Principal paydown receivable | 17,800,000 | ||
Other assets | 972,000 | ||
Total assets of consolidated VIEs | 514,884,000 | ||
LIABILTITES: | |||
Borrowings | 297,191,000 | ||
Accrued interest expense | 297,000 | ||
Derivatives, at fair value | 3,346,000 | ||
Accounts payable and other liabilities | 255,000 | ||
Total liabilities of consolidated VIEs | 301,089,000 | ||
Equity [Abstract] | |||
Retained earnings | 206,876,000 | ||
Non-controlling interests | 8,876,000 | ||
Accumulated other comprehensive loss | (1,957,000) | ||
Total equity | 213,795,000 | ||
Total liabilities and equity | $ 514,884,000 | ||
Number of impaired loans | Loan | 4 | ||
Impaired financing receivable, recorded investment | $ 91,300,000 | ||
Retained Interest | |||
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 and net of allowances of $1.0 million and $42.8 million | 0 | ||
Loans held for sale | 166,769,000 | ||
Investment securities, trading | 0 | ||
Investments in deconsolidated entities | 23,175,000 | ||
Interest receivable | 0 | ||
Prepaid expenses | 0 | ||
Principal paydown receivable | 0 | ||
Other assets | 0 | ||
Total assets of consolidated VIEs | 189,944,000 | ||
LIABILTITES: | |||
Borrowings | 0 | ||
Accrued interest expense | 0 | ||
Derivatives, at fair value | 0 | ||
Accounts payable and other liabilities | 0 | ||
Total liabilities of consolidated VIEs | 0 | ||
Equity [Abstract] | |||
Retained earnings | 189,944,000 | ||
Non-controlling interests | 0 | ||
Accumulated other comprehensive loss | 0 | ||
Total equity | 189,944,000 | ||
Total liabilities and equity | 189,944,000 | ||
Net Impact on Deconsolidation | |||
ASSETS: | |||
Cash and cash equivalents | 472,000 | ||
Restricted cash | 17,076,000 | ||
Investment securities available-for-sale, pledged as collateral, at fair value | 364,589,000 | ||
Loans, pledged as collateral and net of allowances of $1.0 million and $42.8 million | 1,322,000 | ||
Loans held for sale | (97,772,000) | ||
Investment securities, trading | 21,851,000 | ||
Investments in deconsolidated entities | (5,925,000) | ||
Interest receivable | 4,299,000 | ||
Prepaid expenses | 256,000 | ||
Principal paydown receivable | 17,800,000 | ||
Other assets | 972,000 | ||
Total assets of consolidated VIEs | 324,940,000 | ||
LIABILTITES: | |||
Borrowings | 297,191,000 | ||
Accrued interest expense | 297,000 | ||
Derivatives, at fair value | 3,346,000 | ||
Accounts payable and other liabilities | 255,000 | ||
Total liabilities of consolidated VIEs | 301,089,000 | ||
Equity [Abstract] | |||
Retained earnings | 16,932,000 | ||
Non-controlling interests | 8,876,000 | ||
Accumulated other comprehensive loss | (1,957,000) | ||
Total equity | 23,851,000 | ||
Total liabilities and equity | 324,940,000 | ||
Apidos Cinco CDO Senior Notes | |||
Equity [Abstract] | |||
Specific Allowance | 1,300,000 | ||
RREF CDO 2006-1, CDO 2007-1 Senior Notes | |||
Equity [Abstract] | |||
Specific Allowance | 40,300,000 | ||
Commercial Real Estate Loans | |||
Equity [Abstract] | |||
Allowance for loan loss | $ 142,000 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) $ in Thousands | Apr. 25, 2016USD ($) | Mar. 31, 2016 | Feb. 01, 2015USD ($) | Jul. 09, 2014USD ($) | Nov. 16, 2011USD ($)shares | Sep. 30, 2014USD ($) | Jul. 31, 2014USD ($) | Feb. 28, 2014 | May 31, 2013 | Feb. 28, 2013Entity | Oct. 31, 2012 | Feb. 28, 2011USD ($)Entity | Jun. 30, 2016USD ($)EntityPositionpartyDirector | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)EntityPositionpartyDirector | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)Entity | Dec. 31, 2013USD ($)shares | Jan. 01, 2016Entity | Dec. 15, 2015USD ($) | Apr. 30, 2015USD ($) | ||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Number of related parties | party | 1 | 1 | |||||||||||||||||||||||
Investments in unconsolidated entities | $ 76,801 | [1] | $ 76,801 | [1] | $ 50,030 | [1] | $ 1,300 | $ 750 | |||||||||||||||||
Borrowings | [2] | 1,575,219 | 1,575,219 | 1,895,288 | |||||||||||||||||||||
Intangible assets | [1] | 26,726 | 26,726 | 26,228 | |||||||||||||||||||||
Fee income | $ 103 | $ 2,816 | $ (598) | $ 3,986 | |||||||||||||||||||||
Pelium | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Acquisition of membership interests | $ 17,500 | ||||||||||||||||||||||||
Ownership percentage (percent) | 80.40% | 80.20% | 80.20% | ||||||||||||||||||||||
Payments to acquire additional interest in subsidiaries | $ 2,500 | $ 2,500 | |||||||||||||||||||||||
Ownership interest | 10.00% | ||||||||||||||||||||||||
Ownership percentage | 5 years | ||||||||||||||||||||||||
Ownership interest increase | 20.00% | 20.00% | |||||||||||||||||||||||
Contributions | $ 40,000 | ||||||||||||||||||||||||
RCC Residential, Inc. | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Acquisition of membership interests | $ 15,000 | ||||||||||||||||||||||||
Payments to acquire businesses and interest in affiliates | $ 23,500 | ||||||||||||||||||||||||
Ownership percentage (percent) | 63.80% | ||||||||||||||||||||||||
Investment in LCC Preferred Stock | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Ownership percentage (percent) | 29.00% | 29.00% | |||||||||||||||||||||||
Investments in unconsolidated entities | $ 36,300 | $ 44,361 | $ 44,361 | 42,017 | |||||||||||||||||||||
Management Contracts | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Number of CLOs held by purchased entity | Entity | 5 | ||||||||||||||||||||||||
Acquisition | $ 22,500 | ||||||||||||||||||||||||
Fee income | $ 510 | $ 896 | 912 | $ 1,900 | |||||||||||||||||||||
Impairment of intangible assets | $ 2,400 | $ 2,400 | |||||||||||||||||||||||
VIE, Primary Beneficiary | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Number of consolidated VIEs | Entity | 7 | 7 | 13 | 5 | |||||||||||||||||||||
VIE, Primary Beneficiary | Moselle | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Acquisition of membership interests | $ 30,400 | ||||||||||||||||||||||||
VIE, Primary Beneficiary | Management Contracts | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Preferred equity interest acquired | 66.60% | ||||||||||||||||||||||||
VIE, Primary Beneficiary | Whitney CLO I | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Percentage of outstanding notes purchased | 68.30% | ||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Investments in unconsolidated entities and Investment securities, available-for-sale | $ 231,081 | 231,081 | |||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Pelium | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Investment maximum | $ 3,000 | $ 3,000 | |||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | LCC | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Ownership percentage in VIE | 29.00% | 26.70% | |||||||||||||||||||||||
Preferred stock, coupon authorized (in hundredths) | 8.00% | ||||||||||||||||||||||||
Investments in unconsolidated entities | $ 42,000 | ||||||||||||||||||||||||
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 | |||||||||||||||||||||||
Investments in unconsolidated entities and Investment securities, available-for-sale | $ 44,361 | $ 44,361 | |||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | LCC | Preferred Shares - Series A | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Acquisition of membership interests | $ 3,700 | ||||||||||||||||||||||||
Shares received in equity method transaction (in shares) | shares | 31,341 | ||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | LCC | Preferred Shares - Series B | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Shares received in equity method transaction (in shares) | shares | 4,872 | ||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | LCC | Series D Preferred Stock | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Shares received in equity method transaction (in shares) | shares | 2,364 | ||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | LCC | Series A1 Preferred Stock | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Shares received in equity method transaction (in shares) | shares | 3,682 | ||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | LCC | Series E Preferred Stock | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Acquisition of membership interests | $ 4,400 | ||||||||||||||||||||||||
Shares received in equity method transaction (in shares) | shares | 4,445 | ||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Investment in RCT I and II | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Ownership percentage in VIE | 100.00% | ||||||||||||||||||||||||
Investments in unconsolidated entities | $ 1,500 | $ 1,500 | |||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Interest in RCT I | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Percentage of total value of trusts owned | 3.00% | 3.00% | |||||||||||||||||||||||
Borrowings | $ 25,800 | $ 25,800 | |||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Interest in RCT II | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Percentage of total value of trusts owned | 3.00% | 3.00% | |||||||||||||||||||||||
Borrowings | $ 25,800 | $ 25,800 | |||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Management Contracts | |||||||||||||||||||||||||
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 | Investment in ZAIS | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Investments in unconsolidated entities | 9,900 | 9,900 | |||||||||||||||||||||||
Investment maximum | 10,000 | 10,000 | |||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Harvest CLO XV | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Investments in unconsolidated entities and Investment securities, available-for-sale | 13,400 | 13,400 | |||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Harvest CLO VII Limited | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Investments in unconsolidated entities | 4,000 | 4,000 | |||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Harvest CLO VIII Limited | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Investments in unconsolidated entities | $ 4,800 | $ 4,800 | |||||||||||||||||||||||
Class 1 Subordinated Notes | Moselle CLO S.A. Senior Notes | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Percentage of outstanding notes purchased | 100.00% | ||||||||||||||||||||||||
Class 2 Subordinated Notes | Moselle CLO S.A. Senior Notes | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Percentage of outstanding notes purchased | 67.90% | ||||||||||||||||||||||||
Resource America | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Payments to acquire additional interest in subsidiaries | $ 2,800 | ||||||||||||||||||||||||
RCC Residential, Inc. | RCM Global, LLC | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Ownership percentage in VIE | 63.80% | 25.90% | |||||||||||||||||||||||
Variable interest entity, total number of board positions | Director | 5 | 5 | |||||||||||||||||||||||
Management Contracts | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Intangible assets | $ 4,514 | $ 4,514 | $ 5,300 | ||||||||||||||||||||||
RREF 2006-1 | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Value of Collateral | $ 65,600 | ||||||||||||||||||||||||
Debt instrument, collateral amount | 7,500 | ||||||||||||||||||||||||
Gain on liquidation | $ 846 | ||||||||||||||||||||||||
[1] | June 30, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$— $95 Restricted cash6,595 39,061 Investment securities available-for-sale, pledged as collateral, at fair value— 66,137 Loans held for sale— 1,475Loans, pledged as collateral and net of allowances of $1.0 million and $42.8 million942,182 1,416,441 Interest receivable3,767 6,592 Prepaid expenses42 238 Principal paydown receivable8,100 17,800 Other assets41 833 Total assets of consolidated VIEs$960,727 $1,548,672 | ||||||||||||||||||||||||
[2] | June 30, 2016 December 31, 2015Liabilities of consolidated VIEs included in the total liabilities above: Borrowings $634,553 $1,032,581 Accrued interest expense549 923 Derivatives, at fair value— 3,346 Accounts payable and other liabilities157 (117) Total liabilities of consolidated VIEs$635,259 $1,036,733 |
VARIABLE INTEREST ENTITIES (Sch
VARIABLE INTEREST ENTITIES (Schedule of Carrying Value of Assets and Liabilities of Consolidated VIEs) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS: | ||
Restricted cash | $ 6,595 | $ 39,061 |
Loans held for investment | 942,182 | 1,416,441 |
Interest receivable | 3,767 | 6,592 |
Prepaid assets | 42 | 238 |
Principal paydown receivable | 8,100 | 17,800 |
Other assets | 41 | 833 |
Total assets of consolidated VIEs | 960,727 | 1,548,672 |
LIABILITIES | ||
Borrowings | 634,553 | 1,032,581 |
Accrued interest expense | 549 | 923 |
Accounts payable and other liabilities | 157 | (117) |
Total liabilities of consolidated VIEs | 635,259 | $ 1,036,733 |
VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 6,595 | |
Loans held for investment | 942,182 | |
Interest receivable | 3,767 | |
Prepaid assets | 42 | |
Principal paydown receivable | 8,100 | |
Other assets | 41 | |
Total assets of consolidated VIEs | 960,727 | |
LIABILITIES | ||
Borrowings | 634,553 | |
Accrued interest expense | 549 | |
Accounts payable and other liabilities | 157 | |
Total liabilities of consolidated VIEs | 635,259 | |
Restricted cash available for reinvestment in certain of the CDOs | 4,200 | |
Apidos I | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 65 | |
Loans held for investment | 0 | |
Interest receivable | 0 | |
Prepaid assets | 0 | |
Principal paydown receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 65 | |
LIABILITIES | ||
Borrowings | 0 | |
Accrued interest expense | 0 | |
Accounts payable and other liabilities | 0 | |
Total liabilities of consolidated VIEs | 0 | |
Apidos III | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 62 | |
Loans held for investment | 0 | |
Interest receivable | 0 | |
Prepaid assets | 0 | |
Principal paydown receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 62 | |
LIABILITIES | ||
Borrowings | 0 | |
Accrued interest expense | 0 | |
Accounts payable and other liabilities | 0 | |
Total liabilities of consolidated VIEs | 0 | |
Whitney CLO I | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 163 | |
Loans held for investment | 0 | |
Interest receivable | 0 | |
Prepaid assets | 0 | |
Principal paydown receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 163 | |
LIABILITIES | ||
Borrowings | 0 | |
Accrued interest expense | 0 | |
Accounts payable and other liabilities | 0 | |
Total liabilities of consolidated VIEs | 0 | |
RCC CRE Notes 2013 Senior Notes | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 0 | |
Loans held for investment | 86,397 | |
Interest receivable | 404 | |
Prepaid assets | 11 | |
Principal paydown receivable | 8,100 | |
Other assets | 41 | |
Total assets of consolidated VIEs | 94,953 | |
LIABILITIES | ||
Borrowings | 47,305 | |
Accrued interest expense | 60 | |
Accounts payable and other liabilities | 23 | |
Total liabilities of consolidated VIEs | 47,388 | |
RCC 2014-CRE2 Senior Notes | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 4,220 | |
Loans held for investment | 263,303 | |
Interest receivable | 1,025 | |
Prepaid assets | 11 | |
Principal paydown receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 268,559 | |
LIABILITIES | ||
Borrowings | 147,566 | |
Accrued interest expense | 101 | |
Accounts payable and other liabilities | 41 | |
Total liabilities of consolidated VIEs | 147,708 | |
RCC 2015-CRE3 | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 2,083 | |
Loans held for investment | 281,980 | |
Interest receivable | 1,165 | |
Prepaid assets | 10 | |
Principal paydown receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 285,238 | |
LIABILITIES | ||
Borrowings | 218,762 | |
Accrued interest expense | 214 | |
Accounts payable and other liabilities | 53 | |
Total liabilities of consolidated VIEs | 219,029 | |
RCC 2015-CRE4 | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 2 | |
Loans held for investment | 310,502 | |
Interest receivable | 1,173 | |
Prepaid assets | 10 | |
Principal paydown receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 311,687 | |
LIABILITIES | ||
Borrowings | 220,920 | |
Accrued interest expense | 174 | |
Accounts payable and other liabilities | 40 | |
Total liabilities of consolidated VIEs | $ 221,134 |
VARIABLE INTEREST ENTITIES (S58
VARIABLE INTEREST ENTITIES (Schedule of Classification, Carrying Value, and Maximum Exposure to Loss of Unconsolidated VIEs) (Details) - Variable Interest Entity, Not Primary Beneficiary $ in Thousands | Jun. 30, 2016USD ($) |
Variable Interest Entity [Line Items] | |
Investments in unconsolidated entities and Investment securities, available-for-sale | $ 231,081 |
Intangible assets | 4,514 |
Total assets | 235,595 |
Borrowings | 51,521 |
Total liabilities | 51,521 |
Net asset (liability) | 184,074 |
Investments in Unconsolidated Entities | |
Variable Interest Entity [Line Items] | |
Maximum Exposure to Loss | 231,081 |
Intangible Assets | |
Variable Interest Entity [Line Items] | |
Maximum Exposure to Loss | 4,514 |
LCC | |
Variable Interest Entity [Line Items] | |
Investments in unconsolidated entities and Investment securities, available-for-sale | 44,361 |
Intangible assets | 0 |
Total assets | 44,361 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | 44,361 |
Unsecured Junior Subordinated Debentures | |
Variable Interest Entity [Line Items] | |
Investments in unconsolidated entities and Investment securities, available-for-sale | 1,548 |
Intangible assets | 0 |
Total assets | 1,548 |
Borrowings | 51,521 |
Total liabilities | 51,521 |
Net asset (liability) | (49,973) |
Resource Capital Asset Management CDOs | |
Variable Interest Entity [Line Items] | |
Investments in unconsolidated entities and Investment securities, available-for-sale | 0 |
Intangible assets | 4,514 |
Total assets | 4,514 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | 4,514 |
Investment in ZAIS and Harvest | |
Variable Interest Entity [Line Items] | |
Investments in unconsolidated entities and Investment securities, available-for-sale | 32,114 |
Intangible assets | 0 |
Total assets | 32,114 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | 32,114 |
RREF CDO 2007-1 Senior Notes | |
Variable Interest Entity [Line Items] | |
Investments in unconsolidated entities and Investment securities, available-for-sale | 109,913 |
Intangible assets | 0 |
Total assets | 109,913 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | 109,913 |
Apidos Cinco CDO Senior Notes | |
Variable Interest Entity [Line Items] | |
Investments in unconsolidated entities and Investment securities, available-for-sale | 18,838 |
Intangible assets | 0 |
Total assets | 18,838 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | 18,838 |
RCM Global, LLC | |
Variable Interest Entity [Line Items] | |
Investments in unconsolidated entities and Investment securities, available-for-sale | 584 |
Intangible assets | 0 |
Total assets | 584 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | 584 |
Pelium Capital | |
Variable Interest Entity [Line Items] | |
Investments in unconsolidated entities and Investment securities, available-for-sale | 23,723 |
Intangible assets | 0 |
Total assets | 23,723 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | $ 23,723 |
SUPPLEMENTAL CASH FLOW INFORM59
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Non-cash investing activities include the following: [Abstract] | ||
Reclassification of linked transactions, net at fair value to investment securities available-for-sale, pledged as collateral, at fair value | $ 0 | $ 48,605 |
Loans acquired through collateralized debt obligation liquidation | 22,476 | 0 |
Loans acquired through collateralized debt obligation liquidation | 44,893 | 0 |
Securities acquired through collateralized debt obligation liquidation | 20,837 | 0 |
Non-cash financing activities include the following: | ||
Reclassification of linked transactions, net at fair value to borrowings | 0 | 33,377 |
Common Stock | ||
Non-cash financing activities include the following: | ||
Distributions on common and preferred stock declared but not paid | 13,051 | 21,426 |
Preferred Stock | ||
Non-cash financing activities include the following: | ||
Distributions on common and preferred stock declared but not paid | $ 4,009 | $ 4,078 |
INVESTMENT SECURITIES TRADING60
INVESTMENT SECURITIES TRADING (Schedule of Investment Trading Securities at Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost | $ 7,803 | $ 30,472 | |
Unrealized Gains | 255 | 1,674 | |
Unrealized Losses | (4,076) | (6,596) | |
Fair Value | [1] | 3,982 | 25,550 |
Structured notes | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost | 5,907 | 28,576 | |
Unrealized Gains | 255 | 1,674 | |
Unrealized Losses | (2,180) | (4,700) | |
Fair Value | 3,982 | 25,550 | |
RMBS | |||
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, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$— $95 Restricted cash6,595 39,061 Investment securities available-for-sale, pledged as collateral, at fair value— 66,137 Loans held for sale— 1,475Loans, pledged as collateral and net of allowances of $1.0 million and $42.8 million942,182 1,416,441 Interest receivable3,767 6,592 Prepaid expenses42 238 Principal paydown receivable8,100 17,800 Other assets41 833 Total assets of consolidated VIEs$960,727 $1,548,672 |
INVESTMENT SECURITIES TRADING61
INVESTMENT SECURITIES TRADING (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2016USD ($)Security | Jun. 30, 2015USD ($)Security | Jun. 30, 2016USD ($)Security | Jun. 30, 2015USD ($)Security | Jan. 01, 2016USD ($) | Dec. 31, 2015USD ($)Security | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Investment securities, trading | [1] | $ 3,982 | $ 3,982 | $ 25,550 | |||
Trading securities, number sold | Security | 0 | 4 | 0 | 10 | |||
Trading securities, realized gain | $ 189 | $ 621 | |||||
Number of trading securities held | Security | 6 | 6 | 56 | ||||
Pelium | |||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Investment securities, trading | $ 21,900 | ||||||
[1] | June 30, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$— $95 Restricted cash6,595 39,061 Investment securities available-for-sale, pledged as collateral, at fair value— 66,137 Loans held for sale— 1,475Loans, pledged as collateral and net of allowances of $1.0 million and $42.8 million942,182 1,416,441 Interest receivable3,767 6,592 Prepaid expenses42 238 Principal paydown receivable8,100 17,800 Other assets41 833 Total assets of consolidated VIEs$960,727 $1,548,672 |
INVESTMENT SECURITIES AVAILAB62
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Schedule of Available-for-Sale Securities, Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 254,299 | $ 205,156 |
Unrealized Gains | 3,450 | 5,971 |
Unrealized Losses | (2,469) | (3,039) |
Fair Value | 255,280 | 208,088 |
ABS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 162,759 | 41,994 |
Unrealized Gains | 2,865 | 3,218 |
Unrealized Losses | (519) | (998) |
Fair Value | 165,105 | 44,214 |
CMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 89,621 | 158,584 |
Unrealized Gains | 441 | 2,631 |
Unrealized Losses | (1,904) | (1,791) |
Fair Value | 88,158 | 159,424 |
RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,919 | 2,156 |
Unrealized Gains | 144 | 122 |
Unrealized Losses | (46) | (88) |
Fair Value | $ 2,017 | 2,190 |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,422 | |
Unrealized Gains | 0 | |
Unrealized Losses | (162) | |
Fair Value | $ 2,260 |
INVESTMENT SECURITIES AVAILAB63
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Estimated Maturities of Available-For-Sale Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value | ||
Less than one year | $ 180,947 | $ 117,221 |
Greater than one year and less than five years | 34,010 | 71,370 |
Greater than five years and less than ten years | 23,699 | 12,382 |
Greater than ten years | 16,624 | 7,115 |
Total | 255,280 | 208,088 |
Amortized Cost | ||
Less than one year | 182,143 | 118,215 |
Greater than one year and less than five years | 34,207 | 68,808 |
Greater than five years and less than ten years | 22,177 | 11,271 |
Greater than ten years | 15,772 | 6,862 |
Total | $ 254,299 | $ 205,156 |
Weighted Average Coupon | ||
Less than one year | 8.10% | 7.13% |
Greater than one year and less than five years | 5.09% | 5.31% |
Greater than five years and less than ten years | 9.02% | 10.45% |
Greater than ten years | 14.25% | 16.85% |
Total | 8.16% | 7.03% |
INVESTMENT SECURITIES AVAILAB64
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Gross Unrealized Loss and Fair Value of Securities) (Details) $ in Thousands | Jun. 30, 2016USD ($)Security | Dec. 31, 2015USD ($)Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, less than 12 months | $ 63,058 | $ 83,122 |
Unrealized Losses, less than 12 months | $ (2,068) | $ (1,779) |
Number of Securities, less than 12 months | Security | 31 | 39 |
Fair value, more than 12 months | $ 7,028 | $ 15,778 |
Unrealized losses, more than 12 Months | $ (401) | $ (1,260) |
Number of Securities, more than 12 Months | Security | 7 | 21 |
Fair value, total | $ 70,086 | $ 98,900 |
Unrealized losses, total | $ (2,469) | $ (3,039) |
Number of Securities, total | Security | 38 | 60 |
ABS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, less than 12 months | $ 2,135 | $ 2,330 |
Unrealized Losses, less than 12 months | $ (519) | $ (824) |
Number of Securities, less than 12 months | Security | 3 | 5 |
Fair value, more than 12 months | $ 0 | $ 668 |
Unrealized losses, more than 12 Months | $ 0 | $ (174) |
Number of Securities, more than 12 Months | Security | 0 | 5 |
Fair value, total | $ 2,135 | $ 2,998 |
Unrealized losses, total | $ (519) | $ (998) |
Number of Securities, total | Security | 3 | 10 |
CMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, less than 12 months | $ 59,858 | $ 79,570 |
Unrealized Losses, less than 12 months | $ (1,503) | $ (849) |
Number of Securities, less than 12 months | Security | 26 | 31 |
Fair value, more than 12 months | $ 7,028 | $ 13,783 |
Unrealized losses, more than 12 Months | $ (401) | $ (942) |
Number of Securities, more than 12 Months | Security | 7 | 15 |
Fair value, total | $ 66,886 | $ 93,353 |
Unrealized losses, total | $ (1,904) | $ (1,791) |
Number of Securities, total | Security | 33 | 46 |
RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, less than 12 months | $ 1,065 | $ 1,157 |
Unrealized Losses, less than 12 months | $ (46) | $ (88) |
Number of Securities, less than 12 months | Security | 2 | 2 |
Fair value, more than 12 months | $ 0 | $ 0 |
Unrealized losses, more than 12 Months | $ 0 | $ 0 |
Number of Securities, more than 12 Months | Security | 0 | 0 |
Fair value, total | $ 1,065 | $ 1,157 |
Unrealized losses, total | $ (46) | $ (88) |
Number of Securities, total | Security | 2 | 2 |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, less than 12 months | $ 65 | |
Unrealized Losses, less than 12 months | $ (18) | |
Number of Securities, less than 12 months | Security | 1 | |
Fair value, more than 12 months | $ 1,327 | |
Unrealized losses, more than 12 Months | $ (144) | |
Number of Securities, more than 12 Months | Security | 1 | |
Fair value, total | $ 1,392 | |
Unrealized losses, total | $ (162) | |
Number of Securities, total | Security | 2 |
INVESTMENT SECURITIES AVAILAB65
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Summary of Sales of Investment Securities Available-for-Sale) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016Security | Jun. 30, 2015USD ($)Security | Jun. 30, 2015USD ($)Security | |
ABS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Positions Sold | Security | 0 | 3 | 7 |
Positions Redeemed | Security | 1 | 3 | |
Par Amount Sold/Redeemed | $ | $ 4,026 | $ 15,937 | |
Realized Gain (Loss) | $ | $ 1,841 | $ 8,110 | |
RMBS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Positions Sold | Security | 6 | 6 | |
Positions Redeemed | Security | 0 | 0 | |
Par Amount Sold/Redeemed | $ | $ 28,305 | $ 28,305 | |
Realized Gain (Loss) | $ | $ 984 | $ 984 |
INVESTMENT SECURITIES AVAILAB66
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016USD ($)Security | Jun. 30, 2015Security | Jun. 30, 2015Security | Jan. 01, 2016USD ($) | Dec. 31, 2015USD ($) | ||
Variable Interest Entity [Line Items] | ||||||
Investment securities available-for-sale, pledged as collateral, at fair value | [1] | $ 88,122 | $ 162,306 | |||
Investment securities available-for-sale, pledged as collateral, at fair value | $ 0 | $ 66,137 | ||||
VIE, Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Investment securities available-for-sale, pledged as collateral, at fair value | $ 364,600 | |||||
ABS | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of investment securities available for sale sold | Security | 0 | 3 | 7 | |||
[1] | June 30, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$— $95 Restricted cash6,595 39,061 Investment securities available-for-sale, pledged as collateral, at fair value— 66,137 Loans held for sale— 1,475Loans, pledged as collateral and net of allowances of $1.0 million and $42.8 million942,182 1,416,441 Interest receivable3,767 6,592 Prepaid expenses42 238 Principal paydown receivable8,100 17,800 Other assets41 833 Total assets of consolidated VIEs$960,727 $1,548,672 |
LOANS (Summary of Loans) (Detai
LOANS (Summary of Loans) (Details) | Jun. 30, 2016USD ($) | Apr. 25, 2016USD ($) | Jan. 01, 2016USD ($) | Dec. 31, 2015USD ($)Loan |
Receivables with Imputed Interest [Line Items] | ||||
Principal, gross | $ 1,486,147,000 | $ 2,219,369,000 | ||
Unamortized (Discount) Premium, net | (7,831,000) | (11,547,000) | ||
Gross carrying value of loans held for investment | 1,478,316,000 | 2,207,822,000 | ||
Allowance for loan loss | (1,436,000) | (47,071,000) | ||
Unamortized (discount) premium, gross, allowance for loan loss | 0 | 0 | ||
Carrying value, allowance for loan loss | (1,436,000) | (47,071,000) | ||
Principal, Net | 1,484,711,000 | 2,172,298,000 | ||
Unamortized (discount) premium, Loans Held for Investment, net | (7,831,000) | (11,547,000) | ||
Net carrying value of loans held for investment | 1,476,880,000 | 2,160,751,000 | ||
First lien loans held for sale at fair value | 420,308,000 | 95,946,000 | ||
Unamortized (discount) premium, Loans Held for Sale | 0 | |||
Loans Receivable Held-for-sale, Amount, Carrying Value | 420,308,000 | |||
Loans Receivable, Net | 95,946,000 | |||
Loans held for investment and held for sale | 1,905,019,000 | 2,268,244,000 | ||
Unamortized (discount) premium, net | (7,831,000) | (11,547,000) | ||
Loans held for investment and held for sale, net carrying value | 1,897,188,000 | 2,256,697,000 | ||
Deferred amendment fees | 10,000 | $ 42,000 | ||
Number of defaulted loans | Loan | 1 | |||
CRE whole loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal, gross | 1,428,656,000 | |||
Unamortized (Discount) Premium, net | (7,466,000) | |||
Gross carrying value of loans held for investment | 1,421,190,000 | |||
Mezzanine loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal, gross | 0 | |||
Unamortized (Discount) Premium, net | 0 | |||
Gross carrying value of loans held for investment | 0 | |||
Bank Loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal, gross | $ 134,500,000 | $ 134,890,000 | ||
Unamortized (Discount) Premium, net | (373,000) | |||
Gross carrying value of loans held for investment | 134,517,000 | |||
Allowance for loan loss | (41,700,000) | |||
First lien loans held for sale at fair value | 1,475,000 | |||
Deferred upfront fee | 0 | 12,000 | ||
Middle Market Loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal, gross | 54,850,000 | 380,687,000 | ||
Unamortized (Discount) Premium, net | (365,000) | (1,235,000) | ||
Gross carrying value of loans held for investment | 54,485,000 | 379,452,000 | ||
First lien loans held for sale at fair value | 259,179,000 | |||
Residential Mortgage Loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal, gross | 2,641,000 | 1,746,000 | ||
Unamortized (Discount) Premium, net | 0 | 0 | ||
Gross carrying value of loans held for investment | 2,641,000 | 1,746,000 | ||
Residential Mortgage Loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Unamortized (Discount) Premium, net | 0 | |||
First lien loans held for sale at fair value | 161,129,000 | 94,471,000 | ||
Commercial Real Estate Lending | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal, gross | 1,702,046,000 | |||
Unamortized (Discount) Premium, net | (9,939,000) | |||
Gross carrying value of loans held for investment | 1,692,107,000 | |||
Loan origination fees | 7,400,000 | 9,900,000 | ||
Commercial Real Estate Lending | CRE whole loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal, gross | $ 271,800,000 | 1,640,744,000 | ||
Unamortized (Discount) Premium, net | (9,943,000) | |||
Gross carrying value of loans held for investment | 1,630,801,000 | |||
Commercial Real Estate Lending | B notes | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal, gross | 15,934,000 | |||
Unamortized (Discount) Premium, net | 0 | |||
Gross carrying value of loans held for investment | 15,934,000 | |||
Commercial Real Estate Lending | Mezzanine loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal, gross | 45,368,000 | |||
Unamortized (Discount) Premium, net | 4,000 | |||
Gross carrying value of loans held for investment | $ 45,372,000 | |||
RREF CDO 2006-1 Senior Notes | Variable Interest Entity, Not Primary Beneficiary | ||||
Receivables with Imputed Interest [Line Items] | ||||
Value of Collateral | 0 | |||
Debt instrument, par value | $ 28,800,000 | $ 28,800,000 |
LOANS (Commercial Real Estate L
LOANS (Commercial Real Estate Loans Held for Investment) (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016USD ($)Loan | Dec. 31, 2015USD ($)Loan | Jan. 01, 2016USD ($) | |
Receivables with Imputed Interest [Line Items] | |||
Allowance for loan loss | $ 1,436 | $ 47,071 | |
Individually evaluated for impairment | 465 | 42,021 | |
Principal, gross | $ 1,486,147 | $ 2,219,369 | |
Commercial Real Estate Lending | |||
Receivables with Imputed Interest [Line Items] | |||
Quantity | Loan | 81 | 90 | |
Amortized Cost | $ 1,421,190 | $ 1,692,107 | |
Allowance for loan loss | 1,300 | ||
Principal, gross | 1,702,046 | ||
Whole Loans, Floating Rate | |||
Receivables with Imputed Interest [Line Items] | |||
Loans held for investment, unfunded loan commitments | $ 78,800 | $ 112,600 | |
Whole Loans, Floating Rate | Commercial Real Estate Lending | |||
Receivables with Imputed Interest [Line Items] | |||
Quantity | Loan | 80 | 87 | |
Amortized Cost | $ 1,421,190 | $ 1,630,801 | |
Quantity of Loans, Fixed Contractual Interest in Floating Rate Whole Loan, Rate One | Loan | 4 | ||
The amortized cost of loans held for investments, fixed rate whole loans included in floating rate whole loans. | $ 4,500 | ||
B notes, fixed rate | Commercial Real Estate Lending | |||
Receivables with Imputed Interest [Line Items] | |||
Quantity | Loan | 1 | ||
Amortized Cost | $ 15,934 | ||
Stated interest rate | 8.68% | ||
Maturity Dates | April 2,016 | ||
Mezzanine Loans, Fixed Rate | |||
Receivables with Imputed Interest [Line Items] | |||
Quantity | Loan | 1 | ||
Mezzanine Loans, Fixed Rate | Commercial Real Estate Lending | |||
Receivables with Imputed Interest [Line Items] | |||
Quantity | Loan | 2 | ||
Amortized Cost | $ 45,372 | ||
Stated interest rate | 9.01% | ||
Maturity Dates | September 2,016 | ||
CRE whole loans | |||
Receivables with Imputed Interest [Line Items] | |||
Allowance for loan loss | $ 1,425 | $ 3,745 | |
Principal, gross | 1,428,656 | ||
CRE whole loans | Commercial Real Estate Lending | |||
Receivables with Imputed Interest [Line Items] | |||
Amortized Cost | 1,421,190 | 1,630,801 | |
Principal, gross | 1,640,744 | $ 271,800 | |
Preferred equity tranche | |||
Receivables with Imputed Interest [Line Items] | |||
Amortized Cost | $ 799 | 799 | |
Preferred equity tranche | Commercial Real Estate Lending | |||
Receivables with Imputed Interest [Line Items] | |||
Fixed preferred equity interest in floating rate whole loan | 10.00% | ||
Mezzanine loans | |||
Receivables with Imputed Interest [Line Items] | |||
Allowance for loan loss | $ 0 | 38,079 | |
Principal, gross | $ 0 | ||
Mezzanine loans | Commercial Real Estate Lending | |||
Receivables with Imputed Interest [Line Items] | |||
Quantity | Loan | 1 | ||
Amortized Cost | $ 0 | 45,372 | |
Principal, gross | 45,368 | ||
Not included in total | |||
Receivables with Imputed Interest [Line Items] | |||
Allowance for loan loss | 1,400 | 41,800 | |
Whole Loans, Floating Rate, Modification [Member] | Commercial Real Estate Lending | |||
Receivables with Imputed Interest [Line Items] | |||
Amortized Cost | $ 2,000 | $ 32,500 | |
Minimum | Whole Loans, Floating Rate | Commercial Real Estate Lending | |||
Receivables with Imputed Interest [Line Items] | |||
Maturity Dates | January 2,015 | March 2,014 | |
Basis spread on variable rate | 2.50% | 1.75% | |
Variable rate basis | LIBOR | LIBOR | |
Minimum | CRE whole loans | Commercial Real Estate Lending | |||
Receivables with Imputed Interest [Line Items] | |||
Fixed contractual interest in floating rate whole loan, Rate Two | 1.40% | ||
Minimum | Whole Loans, Floating Rate, Modification [Member] | Commercial Real Estate Lending | |||
Receivables with Imputed Interest [Line Items] | |||
Basis spread on variable rate | 1.00% | 1.00% | |
Maximum | Whole Loans, Floating Rate | Commercial Real Estate Lending | |||
Receivables with Imputed Interest [Line Items] | |||
Maturity Dates | April 2,019 | February 2,019 | |
Basis spread on variable rate | 12.00% | 12.00% | |
Variable rate basis | LIBOR | LIBOR | |
Maximum | CRE whole loans | Commercial Real Estate Lending | |||
Receivables with Imputed Interest [Line Items] | |||
Fixed contractual interest in floating rate whole loan, Rate Two | 5.22% | ||
Senior Component | Whole Loans, Floating Rate | Commercial Real Estate Lending | |||
Receivables with Imputed Interest [Line Items] | |||
Quantity of Loans, Fixed Contractual Interest in Floating Rate Whole Loan, Rate One | Loan | 2 | ||
The amortized cost of loans held for investments, fixed rate whole loans included in floating rate whole loans. | $ 11,200 | $ 51,200 | |
Senior Component | CRE whole loans | Commercial Real Estate Lending | |||
Receivables with Imputed Interest [Line Items] | |||
Fixed contractual interest in floating rate whole loan | 0.50% | 0.50% | |
Commercial Real Estate Loans | |||
Receivables with Imputed Interest [Line Items] | |||
Individually evaluated for impairment | $ 0 | $ 40,274 | |
Mezzanine loans | |||
Receivables with Imputed Interest [Line Items] | |||
Individually evaluated for impairment | $ 38,100 |
LOANS (Weighted Average Life of
LOANS (Weighted Average Life of Commercial Real Estate Loans, at Amortized Cost) (Details) - Commercial Real Estate Lending - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Receivables with Imputed Interest [Line Items] | ||
2,016 | $ 0 | $ 38,903 |
2,017 | 60,446 | 140,712 |
2018 and Thereafter | 1,360,744 | 1,512,492 |
Total | 1,421,190 | 1,692,107 |
B notes | ||
Receivables with Imputed Interest [Line Items] | ||
2,016 | 15,934 | |
2,017 | 0 | |
2018 and Thereafter | 0 | |
Total | 15,934 | |
Mezzanine loans | ||
Receivables with Imputed Interest [Line Items] | ||
2,016 | 0 | 13,011 |
2,017 | 0 | 0 |
2018 and Thereafter | 0 | 32,361 |
Total | 0 | 45,372 |
CRE whole loans | ||
Receivables with Imputed Interest [Line Items] | ||
2,016 | 0 | 9,958 |
2,017 | 60,446 | 140,712 |
2018 and Thereafter | 1,360,744 | 1,480,131 |
Total | $ 1,421,190 | $ 1,630,801 |
LOANS (Weighted Average Life 70
LOANS (Weighted Average Life of Middle-Market and Bank Loans, at Amortized Cost) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Middle Market Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Less than one year | $ 9,319 | $ 14,960 |
Greater than one year and less than five years | 210,385 | 250,709 |
Five years or greater | 93,960 | 109,844 |
Total | $ 313,664 | 375,513 |
Bank Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Less than one year | 3,922 | |
Greater than one year and less than five years | 128,480 | |
Five years or greater | 3,590 | |
Total | $ 135,992 |
LOANS (Loan Held for Investment
LOANS (Loan Held for Investment) (Details) | Jun. 30, 2016 | Dec. 31, 2015 |
Middle Market Loans | Industry Grouping of Diversified/conglomerate Service | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk (in hundredths) | 14.70% | 12.80% |
Middle Market Loans | Industry Grouping of Healthcare, Education and Childcare | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk (in hundredths) | 15.60% | 12.40% |
Residential Mortgage Loans | CALIFORNIA | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk (in hundredths) | 14.70% | |
Residential Mortgage Loans | GEORGIA | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk (in hundredths) | 40.20% | 44.90% |
Residential Mortgage Loans | VIRGINIA | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk (in hundredths) | 6.00% | 9.10% |
Residential Mortgage Loans | FLORIDA | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk (in hundredths) | 4.90% | 4.40% |
Residential Mortgage Loans | UTAH | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk (in hundredths) | 15.80% | 11.20% |
Residential Mortgage Loans | COLORADO | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk (in hundredths) | 4.10% |
LOANS (Lien position and status
LOANS (Lien position and status of our bank and middle market loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||
First lien loans held for sale at fair value | $ 420,308 | $ 95,946 |
Total | 135,992 | |
Apidos I | ||
Related Party Transaction [Line Items] | ||
Total | 153 | |
Apidos Cinco | ||
Related Party Transaction [Line Items] | ||
Total | 135,839 | |
First lien loans | ||
Related Party Transaction [Line Items] | ||
First lien loans held for sale at fair value | 1,475 | |
First lien loans | Apidos I | ||
Related Party Transaction [Line Items] | ||
First lien loans held for sale at fair value | 153 | |
First lien loans | Apidos Cinco | ||
Related Party Transaction [Line Items] | ||
First lien loans held for sale at fair value | 1,322 | |
Commercial Real Estate Loans | ||
Related Party Transaction [Line Items] | ||
Total | 134,517 | |
Commercial Real Estate Loans | Apidos I | ||
Related Party Transaction [Line Items] | ||
Total | 0 | |
Commercial Real Estate Loans | Apidos Cinco | ||
Related Party Transaction [Line Items] | ||
Total | 134,517 | |
Commercial Real Estate Loans | First lien loans | ||
Related Party Transaction [Line Items] | ||
Total | 131,281 | |
Commercial Real Estate Loans | First lien loans | Apidos I | ||
Related Party Transaction [Line Items] | ||
Total | 0 | |
Commercial Real Estate Loans | First lien loans | Apidos Cinco | ||
Related Party Transaction [Line Items] | ||
Total | 131,281 | |
Commercial Real Estate Loans | Second lien loans | ||
Related Party Transaction [Line Items] | ||
Total | 1,692 | |
Commercial Real Estate Loans | Second lien loans | Apidos I | ||
Related Party Transaction [Line Items] | ||
Total | 0 | |
Commercial Real Estate Loans | Second lien loans | Apidos Cinco | ||
Related Party Transaction [Line Items] | ||
Total | 1,692 | |
Commercial Real Estate Loans | Defaulted first lien loans | ||
Related Party Transaction [Line Items] | ||
Total | 1,544 | |
Commercial Real Estate Loans | Defaulted first lien loans | Apidos I | ||
Related Party Transaction [Line Items] | ||
Total | 0 | |
Commercial Real Estate Loans | Defaulted first lien loans | Apidos Cinco | ||
Related Party Transaction [Line Items] | ||
Total | 1,544 | |
Commercial Real Estate Loans | Defaulted second lien loans | ||
Related Party Transaction [Line Items] | ||
Total | 0 | |
Commercial Real Estate Loans | Defaulted second lien loans | Apidos I | ||
Related Party Transaction [Line Items] | ||
Total | 0 | |
Commercial Real Estate Loans | Defaulted second lien loans | Apidos Cinco | ||
Related Party Transaction [Line Items] | ||
Total | $ 0 |
LOANS (Loans Held for Investmen
LOANS (Loans Held for Investment, Middle-Market Loans) (Details) - Middle Market Loans - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Impaired [Line Items] | ||
Loans held for investment, amortized cost | $ 313,664 | $ 375,513 |
First Lien | ||
Financing Receivable, Impaired [Line Items] | ||
Loans held for investment, amortized cost | 0 | 248,367 |
Second Lien | ||
Financing Receivable, Impaired [Line Items] | ||
Loans held for investment, amortized cost | 54,485 | 127,146 |
First lien loans held for sale, at fair value | ||
Financing Receivable, Impaired [Line Items] | ||
Loans held for investment, amortized cost | 188,378 | 0 |
Second lien loans held for sale, at fair value | ||
Financing Receivable, Impaired [Line Items] | ||
Loans held for investment, amortized cost | $ 70,801 | $ 0 |
LOANS (Allocation of Allowance
LOANS (Allocation of Allowance for Loan Loss for Commercial and Bank Loans) (Details) - USD ($) | Jun. 30, 2016 | Apr. 25, 2016 | Jan. 01, 2016 | Dec. 31, 2015 |
Receivables with Imputed Interest [Line Items] | ||||
Principal, gross | $ 1,486,147,000 | $ 2,219,369,000 | ||
Allowance for Loan Loss | 1,436,000 | 47,071,000 | ||
Loans acquired with deteriorated credit quality | 1,436,000 | 47,071,000 | ||
B notes | ||||
Receivables with Imputed Interest [Line Items] | ||||
Allowance for Loan Loss | $ 15,000 | |||
Percentage of Total Allowance | 0.03% | |||
Mezzanine loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal, gross | 0 | |||
Allowance for Loan Loss | $ 0 | $ 38,079,000 | ||
Percentage of Total Allowance | 0.00% | 80.90% | ||
CRE whole loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal, gross | $ 1,428,656,000 | |||
Allowance for Loan Loss | $ 1,425,000 | $ 3,745,000 | ||
Percentage of Total Allowance | 99.23% | 7.96% | ||
Bank Loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal, gross | $ 134,500,000 | $ 134,890,000 | ||
Allowance for Loan Loss | $ 1,282,000 | |||
Percentage of Total Allowance | 2.72% | |||
Loans acquired with deteriorated credit quality | 41,700,000 | |||
Middle Market Loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal, gross | $ 54,850,000 | $ 380,687,000 | ||
Allowance for Loan Loss | $ 0 | $ 3,939,000 | ||
Percentage of Total Allowance | 0.00% | 8.37% | ||
Residential Mortgage Loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal, gross | $ 2,641,000 | $ 1,746,000 | ||
Allowance for Loan Loss | $ 11,000 | $ 11,000 | ||
Percentage of Total Allowance | 0.77% | 0.02% | ||
Commercial Real Estate Lending | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal, gross | $ 1,702,046,000 | |||
Allowance for Loan Loss | 1,300,000 | |||
Commercial Real Estate Lending | B notes | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal, gross | 15,934,000 | |||
Commercial Real Estate Lending | Mezzanine loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal, gross | 45,368,000 | |||
Commercial Real Estate Lending | CRE whole loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal, gross | $ 271,800,000 | $ 1,640,744,000 | ||
Variable Interest Entity, Not Primary Beneficiary | RREF CDO 2006-1 Senior Notes | ||||
Receivables with Imputed Interest [Line Items] | ||||
Value of Collateral | $ 0 | |||
Debt instrument, par value | $ 28,800,000 | $ 28,800,000 |
LOANS (Narrative) (Details)
LOANS (Narrative) (Details) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2016USD ($)state | Dec. 31, 2015USD ($) | Jan. 01, 2016USD ($) | ||
Receivables with Imputed Interest [Line Items] | ||||
Number of States in which Entity Operates | state | 41 | |||
Principal paydown receivable | [1] | $ 8,100,000 | $ 17,941,000 | |
Loans held for sale, net | [1] | 420,308,000 | 95,946,000 | |
Allowance for loan loss | 1,436,000 | 47,071,000 | ||
Loans held for sale | 420,308,000 | 95,946,000 | ||
Collectively evaluated for impairment | 1,436,000 | 5,515,000 | ||
Principal, gross | 1,486,147,000 | 2,219,369,000 | ||
Loans acquired with deteriorated credit quality | 1,436,000 | 47,071,000 | ||
Middle Market Loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Loans held for sale, net | 313,700,000 | 375,500,000 | ||
Allowance for loan loss | 0 | 3,939,000 | ||
Loans held for sale | 259,179,000 | |||
Principal, gross | 54,850,000 | 380,687,000 | ||
Bank Loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Loans held for sale, net | 0 | 134,700,000 | ||
Allowance for loan loss | 1,282,000 | |||
Loans held for sale | 1,475,000 | |||
Principal, gross | 134,890,000 | $ 134,500,000 | ||
Loans acquired with deteriorated credit quality | 41,700,000 | |||
Residential Mortgage Loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Allowance for loan loss | 11,000 | 11,000 | ||
Principal, gross | 2,641,000 | 1,746,000 | ||
CRE whole loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Allowance for loan loss | 1,425,000 | $ 3,745,000 | ||
Principal, gross | $ 1,428,656,000 | |||
Middle Market Loans | Minimum | ||||
Receivables with Imputed Interest [Line Items] | ||||
Basis spread on variable rate | 6.75% | 6.25% | ||
Middle Market Loans | Maximum | ||||
Receivables with Imputed Interest [Line Items] | ||||
Basis spread on variable rate | 12.00% | 12.00% | ||
Commercial Real Estate Lending | ||||
Receivables with Imputed Interest [Line Items] | ||||
Allowance for loan loss | $ 1,300,000 | |||
Principal, gross | 1,702,046,000 | |||
Commercial Real Estate Lending | CRE whole loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal, gross | $ 1,640,744,000 | $ 271,800,000 | ||
Bank Loans | Minimum | ||||
Receivables with Imputed Interest [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
Bank Loans | Maximum | ||||
Receivables with Imputed Interest [Line Items] | ||||
Variable rate basis | three month LIBOR | three month LIBOR | ||
Basis spread on variable rate | 8.00% | |||
TEXAS | Commercial Real Estate Lending | ||||
Receivables with Imputed Interest [Line Items] | ||||
Concentration of loan portfolio risk (in hundredths) | 27.70% | 26.80% | ||
CALIFORNIA | Commercial Real Estate Lending | ||||
Receivables with Imputed Interest [Line Items] | ||||
Concentration of loan portfolio risk (in hundredths) | 25.90% | 28.70% | ||
CALIFORNIA | Residential Mortgage Loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Concentration of loan portfolio risk (in hundredths) | 14.70% | |||
GEORGIA | Commercial Real Estate Lending | ||||
Receivables with Imputed Interest [Line Items] | ||||
Concentration of loan portfolio risk (in hundredths) | 8.70% | 7.40% | ||
GEORGIA | Residential Mortgage Loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Concentration of loan portfolio risk (in hundredths) | 40.20% | 44.90% | ||
UTAH | Residential Mortgage Loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Concentration of loan portfolio risk (in hundredths) | 15.80% | 11.20% | ||
VIRGINIA | Residential Mortgage Loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Concentration of loan portfolio risk (in hundredths) | 6.00% | 9.10% | ||
COLORADO | Residential Mortgage Loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Concentration of loan portfolio risk (in hundredths) | 4.10% | |||
FLORIDA | Residential Mortgage Loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Concentration of loan portfolio risk (in hundredths) | 4.90% | 4.40% | ||
Industry Grouping of Automobile | Bank Loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Concentration of loan portfolio risk (in hundredths) | 13.50% | |||
Industry Grouping of Diversified/conglomerate Service | Middle Market Loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Concentration of loan portfolio risk (in hundredths) | 14.70% | 12.80% | ||
Industry Grouping of Diversified/conglomerate Service | Bank Loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Concentration of loan portfolio risk (in hundredths) | 13.00% | |||
Industry Grouping of Retail Stores | Bank Loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Concentration of loan portfolio risk (in hundredths) | 9.60% | |||
Industry Grouping of Healthcare, Education and Childcare | Middle Market Loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Concentration of loan portfolio risk (in hundredths) | 15.60% | 12.40% | ||
Agency-Conforming | ||||
Receivables with Imputed Interest [Line Items] | ||||
Loans held for sale | $ 116,400,000 | $ 29,200,000 | ||
Jumbo Mortgage Loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Loans held for sale | $ 44,700,000 | $ 65,300,000 | ||
[1] | June 30, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$— $95 Restricted cash6,595 39,061 Investment securities available-for-sale, pledged as collateral, at fair value— 66,137 Loans held for sale— 1,475Loans, pledged as collateral and net of allowances of $1.0 million and $42.8 million942,182 1,416,441 Interest receivable3,767 6,592 Prepaid expenses42 238 Principal paydown receivable8,100 17,800 Other assets41 833 Total assets of consolidated VIEs$960,727 $1,548,672 |
INVESTMENTS IN UNCONSOLIDATED76
INVESTMENTS IN UNCONSOLIDATED ENTITIES - Schedule of Unconsolidated Entities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 15, 2015 | Jun. 24, 2015 | Apr. 30, 2015 | Nov. 16, 2011 | ||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||||||||
Investments in Unconsolidated Entities | $ 76,801 | [1] | $ 76,801 | [1] | $ 50,030 | [1] | $ 1,300 | $ 750 | ||||
Equity in Earnings of Unconsolidated Subsidiaries | $ 2,045 | $ 60 | $ 3,626 | $ 173 | ||||||||
RRE VIP Borrower, LLC | ||||||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||||||||
Ownership % | 0.00% | 0.00% | ||||||||||
Investments in Unconsolidated Entities | $ 0 | $ 0 | 0 | |||||||||
Equity in Earnings of Unconsolidated Subsidiaries | $ 10 | 0 | $ 35 | 46 | ||||||||
Investment in LCC Preferred Stock | ||||||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||||||||
Ownership % | 29.00% | 29.00% | ||||||||||
Investments in Unconsolidated Entities | $ 44,361 | $ 44,361 | 42,017 | $ 36,300 | ||||||||
Equity in Earnings of Unconsolidated Subsidiaries | $ 933 | 350 | $ 2,344 | 402 | ||||||||
Investment in CVC Global Credit Opportunities Fund | ||||||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||||||||
Ownership % | 0.00% | 0.00% | ||||||||||
Investments in Unconsolidated Entities | $ 0 | $ 0 | 0 | |||||||||
Equity in Earnings of Unconsolidated Subsidiaries | $ 0 | 312 | $ 0 | 920 | ||||||||
Pearlmark Mezzanine Realty Partners IV, L.P. | ||||||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||||||||
Ownership % | 47.40% | 47.40% | ||||||||||
Investments in Unconsolidated Entities | $ 6,585 | $ 6,585 | 6,465 | |||||||||
Equity in Earnings of Unconsolidated Subsidiaries | $ 171 | 0 | $ 419 | 0 | ||||||||
Other commitment | $ 50,000 | |||||||||||
RCM Global, LLC | ||||||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||||||||
Ownership % | 25.40% | 25.40% | ||||||||||
Investments in Unconsolidated Entities | $ 584 | $ 584 | 0 | |||||||||
Equity in Earnings of Unconsolidated Subsidiaries | $ 222 | 0 | $ 399 | 0 | ||||||||
Pelium Capital | ||||||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||||||||
Ownership % | 80.20% | 80.20% | ||||||||||
Investments in Unconsolidated Entities | $ 23,723 | $ 23,723 | 0 | |||||||||
Equity in Earnings of Unconsolidated Subsidiaries | 1,360 | 0 | 1,721 | 0 | ||||||||
Investments in Unconsolidated Entities | ||||||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||||||||
Investments in Unconsolidated Entities | 75,253 | 75,253 | 48,482 | |||||||||
Equity in Earnings of Unconsolidated Subsidiaries | $ 2,696 | 662 | $ 4,918 | 1,368 | ||||||||
Investment in RCT I and II | ||||||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||||||||
Ownership % | 3.00% | 3.00% | ||||||||||
Investments in Unconsolidated Entities | $ 1,548 | $ 1,548 | $ 1,548 | |||||||||
Equity in Earnings of Unconsolidated Subsidiaries | $ (651) | $ (602) | $ (1,292) | $ (1,195) | ||||||||
[1] | June 30, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$— $95 Restricted cash6,595 39,061 Investment securities available-for-sale, pledged as collateral, at fair value— 66,137 Loans held for sale— 1,475Loans, pledged as collateral and net of allowances of $1.0 million and $42.8 million942,182 1,416,441 Interest receivable3,767 6,592 Prepaid expenses42 238 Principal paydown receivable8,100 17,800 Other assets41 833 Total assets of consolidated VIEs$960,727 $1,548,672 |
FINANCING RECEIVABLES (Allowanc
FINANCING RECEIVABLES (Allowance for Loan Losses and Recorded Investments in Loans) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | Jan. 01, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for losses at beginning of period | $ 47,536,000 | $ 4,613,000 | |
Provision (recovery) for loan and lease losses | 12,136,000 | 49,889,000 | |
Loans charged-off | (16,075,000) | (7,027,000) | |
Recoveries | 0 | 61,000 | |
Deconsolidation of VIEs | (41,696,000) | ||
Allowance for losses at end of period | 1,901,000 | 47,536,000 | |
Allowance for losses, ending balance: | |||
Individually evaluated for impairment | 465,000 | 42,021,000 | |
Collectively evaluated for impairment | 1,436,000 | 5,515,000 | |
Loans acquired with deteriorated credit quality | 1,436,000 | 47,071,000 | |
Loans, ending balance: | |||
Individually evaluated for impairment | 39,263,000 | 172,647,000 | |
Individually evaluated for impairment | 1,440,183,000 | 2,036,571,000 | |
Loans acquired with deteriorated credit quality | 1,484,711,000 | 2,172,298,000 | |
Commercial Real Estate Loans | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for losses at beginning of period | 41,839,000 | 4,043,000 | |
Provision (recovery) for loan and lease losses | 0 | 37,735,000 | |
Loans charged-off | 0 | 0 | |
Recoveries | 0 | 61,000 | |
Deconsolidation of VIEs | (40,414,000) | ||
Allowance for losses at end of period | 1,425,000 | 41,839,000 | |
Allowance for losses, ending balance: | |||
Individually evaluated for impairment | 0 | 40,274,000 | |
Collectively evaluated for impairment | 1,425,000 | 1,565,000 | |
Loans acquired with deteriorated credit quality | $ 142,000 | ||
Loans, ending balance: | |||
Individually evaluated for impairment | 38,133,000 | 169,707,000 | |
Individually evaluated for impairment | 1,383,057,000 | 1,522,400,000 | |
Loans acquired with deteriorated credit quality | 1,421,190,000 | 1,692,107,000 | |
Bank Loans | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for losses at beginning of period | 1,282,000 | 570,000 | |
Provision (recovery) for loan and lease losses | 77,000 | 2,887,000 | |
Loans charged-off | (77,000) | (2,175,000) | |
Recoveries | 0 | 0 | |
Deconsolidation of VIEs | (1,282,000) | ||
Allowance for losses at end of period | 0 | 1,282,000 | |
Allowance for losses, ending balance: | |||
Individually evaluated for impairment | 0 | 1,282,000 | |
Collectively evaluated for impairment | 0 | 0 | |
Loans, ending balance: | |||
Individually evaluated for impairment | 0 | 1,544,000 | |
Individually evaluated for impairment | 0 | 132,973,000 | |
Loans acquired with deteriorated credit quality | 135,992,000 | ||
Middle Market Loans | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for losses at beginning of period | 3,939,000 | 0 | |
Provision (recovery) for loan and lease losses | 12,059,000 | 8,901,000 | |
Loans charged-off | (15,998,000) | (4,962,000) | |
Recoveries | 0 | 0 | |
Deconsolidation of VIEs | 0 | ||
Allowance for losses at end of period | 0 | 3,939,000 | |
Allowance for losses, ending balance: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 0 | 3,939,000 | |
Loans, ending balance: | |||
Individually evaluated for impairment | 0 | 0 | |
Individually evaluated for impairment | 54,485,000 | 379,452,000 | |
Loans acquired with deteriorated credit quality | 313,664,000 | 379,452,000 | |
Residential Mortgage Loans | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for losses at beginning of period | 11,000 | 0 | |
Provision (recovery) for loan and lease losses | 0 | (99,000) | |
Loans charged-off | 0 | 110,000 | |
Recoveries | 0 | 0 | |
Deconsolidation of VIEs | 0 | ||
Allowance for losses at end of period | 11,000 | 11,000 | |
Allowance for losses, ending balance: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 11,000 | 11,000 | |
Loans, ending balance: | |||
Individually evaluated for impairment | 0 | 0 | |
Individually evaluated for impairment | 2,641,000 | 1,746,000 | |
Direct Financing Leases | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for losses at beginning of period | 465,000 | 0 | |
Provision (recovery) for loan and lease losses | 0 | 465,000 | |
Loans charged-off | 0 | 0 | |
Recoveries | 0 | 0 | |
Deconsolidation of VIEs | 0 | ||
Allowance for losses at end of period | 465,000 | 465,000 | |
Allowance for losses, ending balance: | |||
Individually evaluated for impairment | 465,000 | 465,000 | |
Collectively evaluated for impairment | 0 | 0 | |
Loans, ending balance: | |||
Individually evaluated for impairment | 1,130,000 | 1,396,000 | |
Individually evaluated for impairment | 0 | 0 | |
Receivables Acquired with Deteriorated Credit Quality | |||
Allowance for losses, ending balance: | |||
Loans acquired with deteriorated credit quality | 0 | 0 | |
Loans, ending balance: | |||
Loans acquired with deteriorated credit quality | 0 | 0 | |
Receivables Acquired with Deteriorated Credit Quality | Commercial Real Estate Loans | |||
Allowance for losses, ending balance: | |||
Loans acquired with deteriorated credit quality | 0 | 0 | |
Loans, ending balance: | |||
Loans acquired with deteriorated credit quality | 0 | 0 | |
Receivables Acquired with Deteriorated Credit Quality | Bank Loans | |||
Allowance for losses, ending balance: | |||
Loans acquired with deteriorated credit quality | 0 | 0 | |
Loans, ending balance: | |||
Loans acquired with deteriorated credit quality | 0 | 0 | |
Receivables Acquired with Deteriorated Credit Quality | Middle Market Loans | |||
Allowance for losses, ending balance: | |||
Loans acquired with deteriorated credit quality | 0 | 0 | |
Loans, ending balance: | |||
Loans acquired with deteriorated credit quality | 0 | 0 | |
Receivables Acquired with Deteriorated Credit Quality | Residential Mortgage Loans | |||
Allowance for losses, ending balance: | |||
Loans acquired with deteriorated credit quality | 0 | 0 | |
Loans, ending balance: | |||
Loans acquired with deteriorated credit quality | 0 | 0 | |
Receivables Acquired with Deteriorated Credit Quality | Direct Financing Leases | |||
Allowance for losses, ending balance: | |||
Loans acquired with deteriorated credit quality | 0 | 0 | |
Loans, ending balance: | |||
Loans acquired with deteriorated credit quality | $ 0 | $ 0 |
FINANCING RECEIVABLES (Credit R
FINANCING RECEIVABLES (Credit Risk Profiles of Bank Loans, Middle Market Loans and Commercial Real Estate Loans) (Details) | Jun. 30, 2016USD ($)Loan | Apr. 25, 2016USD ($) | Dec. 31, 2015USD ($)Loan |
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | $ 1,484,711,000 | $ 2,172,298,000 | |
Loans held for sale | 420,308,000 | 95,946,000 | |
Middle Market Loans | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 313,664,000 | 379,452,000 | |
Middle Market Loans | Rating 1 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | 44,252,000 | |
Middle Market Loans | Rating 2 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 48,452,000 | 305,578,000 | |
Middle Market Loans | Rating 3 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 6,033,000 | 29,622,000 | |
Middle Market Loans | Rating 4 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | 0 | |
Middle Market Loans | Rating 5 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | 0 | |
Middle Market Loans | Held for Sale | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans held for sale | 259,179,000 | 0 | |
Bank Loans | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 135,992,000 | ||
Bank Loans | Rating 1 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 113,897,000 | ||
Bank Loans | Rating 2 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 17,578,000 | ||
Bank Loans | Rating 3 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 1,498,000 | ||
Bank Loans | Rating 4 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | ||
Bank Loans | Rating 5 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 1,544,000 | ||
Bank Loans | Held for Sale | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans held for sale | 1,475,000 | ||
CRE whole loans | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 1,421,190,000 | $ 1,630,801,000 | |
Number of impaired loans | Loan | 1 | ||
CRE whole loans | Rating 1 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 1,419,190,000 | $ 1,596,099,000 | |
CRE whole loans | Rating 2 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 2,000,000 | 32,500,000 | |
CRE whole loans | Rating 3 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | 0 | |
CRE whole loans | Rating 4 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | 2,202,000 | |
CRE whole loans | Held for Sale | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans held for sale | 0 | 0 | |
B notes | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 15,934,000 | ||
B notes | Rating 1 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 15,934,000 | ||
B notes | Rating 2 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | ||
B notes | Rating 3 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | ||
B notes | Rating 4 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | ||
B notes | Held for Sale | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans held for sale | 0 | ||
Mezzanine loans | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | 45,372,000 | |
Mezzanine loans | Rating 1 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | 7,300,000 | |
Mezzanine loans | Rating 2 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | 0 | |
Mezzanine loans | Rating 3 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | 0 | |
Mezzanine loans | Rating 4 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | 38,072,000 | |
Mezzanine loans | Held for Sale | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans held for sale | 0 | 0 | |
Commercial Real Estate Loans | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 1,421,190,000 | 1,692,107,000 | |
Commercial Real Estate Loans | Rating 1 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | $ 1,419,190,000 | $ 1,619,333,000 | |
Number of impaired loans | Loan | 3 | 4 | |
Commercial Real Estate Loans | Rating 2 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | $ 2,000,000 | $ 32,500,000 | |
Commercial Real Estate Loans | Rating 3 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | 0 | |
Commercial Real Estate Loans | Rating 4 | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | 40,274,000 | |
Commercial Real Estate Loans | Held for Sale | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans held for sale | 0 | $ 0 | |
Variable Interest Entity, Not Primary Beneficiary | RREF CDO 2006-1 Senior Notes | |||
Schedule Of Financing Receivables [Line Items] | |||
Value of Collateral | 0 | ||
Debt instrument, par value | $ 28,800,000 | $ 28,800,000 |
FINANCING RECEIVABLES (Loans Re
FINANCING RECEIVABLES (Loans Receivable - Related Party) (Details) $ in Thousands | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($)Loan |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 228 | $ 39,990 |
Current | 1,640,347 | 2,263,699 |
Total Loans Receivable | 1,640,575 | 2,303,689 |
Total Loans Greater Than 90 days and accruing | 0 | 0 |
First lien loans held for sale at fair value | 420,308 | 95,946 |
Individually evaluated for impairment | (465) | (42,021) |
CRE whole loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 1,421,190 | 1,630,801 |
Total Loans Receivable | 1,421,190 | 1,630,801 |
Total Loans Greater Than 90 days and accruing | 0 | $ 0 |
Number of impaired loans | Loan | 1 | |
Individually evaluated for impairment | $ (2,200) | |
B notes | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | |
Current | 15,934 | |
Total Loans Receivable | 15,934 | |
Total Loans Greater Than 90 days and accruing | 0 | |
Mezzanine loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 38,072 |
Current | 0 | 7,300 |
Total Loans Receivable | 0 | 45,372 |
Total Loans Greater Than 90 days and accruing | 0 | 0 |
Individually evaluated for impairment | (38,100) | |
Bank Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,544 | |
Current | 132,973 | |
Total Loans Receivable | 134,517 | |
Total Loans Greater Than 90 days and accruing | 0 | |
Individually evaluated for impairment | 0 | (1,282) |
Middle Market Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 54,485 | 379,452 |
Total Loans Receivable | 54,485 | 379,452 |
Total Loans Greater Than 90 days and accruing | 0 | 0 |
Individually evaluated for impairment | 0 | 0 |
Direct Financing Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 59 | 226 |
Current | 1,071 | 1,170 |
Total Loans Receivable | 1,130 | 1,396 |
Total Loans Greater Than 90 days and accruing | 0 | 0 |
Residential Mortgage Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 169 | 148 |
Current | 163,601 | 96,069 |
Total Loans Receivable | 163,770 | 96,217 |
Total Loans Greater Than 90 days and accruing | 0 | 0 |
First lien loans held for sale at fair value | 161,129 | 94,471 |
Individually evaluated for impairment | 0 | 0 |
30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 1,583 |
30-59 Days | CRE whole loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
30-59 Days | B notes | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | |
30-59 Days | Mezzanine loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
30-59 Days | Bank Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,544 | |
30-59 Days | Middle Market Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
30-59 Days | Direct Financing Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 12 |
30-59 Days | Residential Mortgage Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 27 |
60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 38,327 |
60-89 Days | CRE whole loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
60-89 Days | B notes | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | |
60-89 Days | Mezzanine loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 38,072 |
60-89 Days | Bank Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | |
60-89 Days | Middle Market Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
60-89 Days | Direct Financing Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 214 |
60-89 Days | Residential Mortgage Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 41 |
Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 228 | 80 |
Greater than 90 Days | CRE whole loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Greater than 90 Days | B notes | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | |
Greater than 90 Days | Mezzanine loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Greater than 90 Days | Bank Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | |
Greater than 90 Days | Middle Market Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Greater than 90 Days | Direct Financing Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 59 | 0 |
Greater than 90 Days | Residential Mortgage Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 169 | $ 80 |
FINANCING RECEIVABLES (Impaired
FINANCING RECEIVABLES (Impaired Loans) (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($)Loan | Jan. 01, 2016USD ($)Loan | |
Financing Receivable, Impaired [Line Items] | |||
Recorded Balance | $ 38,133 | $ 171,251 | |
Unpaid Principal Balance | 38,133 | 171,258 | |
Specific Allowance | 0 | (41,556) | |
Average Investment in Impaired Loans | 38,133 | 170,409 | |
Interest Income Recognized | 353 | 1,123 | |
CRE whole loans | |||
Financing Receivable, Impaired [Line Items] | |||
Loans without a specific valuation allowance, Recorded balance | 38,133 | 129,433 | |
Loans with a specific valuation allowance, Recorded balance | 0 | 2,202 | |
Recorded Balance | 38,133 | 131,635 | |
Loans without a specific valuation allowance, Unpaid Principal Balance | 38,133 | 129,433 | |
Loans with a specific valuation allowance, Unpaid Principal Balance | 0 | 2,202 | |
Unpaid Principal Balance | 38,133 | 131,635 | |
Specific Allowance | 0 | (2,202) | |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 38,133 | 128,591 | |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 0 | 2,202 | |
Average Investment in Impaired Loans | 38,133 | 130,793 | |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | 63 | |
Interest Income Recognized | 353 | 4,002 | |
Loans without a specific valuation allowance, Interest Income Recognized | 353 | $ 3,939 | |
Number of impaired loans | Loan | 1 | ||
B notes | |||
Financing Receivable, Impaired [Line Items] | |||
Loans without a specific valuation allowance, Recorded balance | $ 0 | ||
Loans with a specific valuation allowance, Recorded balance | 0 | ||
Recorded Balance | 0 | ||
Loans without a specific valuation allowance, Unpaid Principal Balance | 0 | ||
Loans with a specific valuation allowance, Unpaid Principal Balance | 0 | ||
Unpaid Principal Balance | 0 | ||
Specific Allowance | 0 | ||
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 0 | ||
Loans with specific valuation allowance, Average Investment in Impaired Loans | 0 | ||
Average Investment in Impaired Loans | 0 | ||
Loans with a specific valuation allowance, Interest Income Recognized | 0 | ||
Interest Income Recognized | 0 | ||
Loans without a specific valuation allowance, Interest Income Recognized | 0 | ||
Mezzanine loans | |||
Financing Receivable, Impaired [Line Items] | |||
Loans without a specific valuation allowance, Recorded balance | 0 | 0 | |
Loans with a specific valuation allowance, Recorded balance | 0 | 38,072 | |
Recorded Balance | 0 | 38,072 | |
Loans without a specific valuation allowance, Unpaid Principal Balance | 0 | 0 | |
Loans with a specific valuation allowance, Unpaid Principal Balance | 0 | 38,072 | |
Unpaid Principal Balance | 0 | 38,072 | |
Specific Allowance | 0 | (38,072) | |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 | |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 0 | 38,072 | |
Average Investment in Impaired Loans | 0 | 38,072 | |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | (2,879) | |
Interest Income Recognized | 0 | (2,879) | |
Loans without a specific valuation allowance, Interest Income Recognized | 0 | 0 | |
Bank Loans | |||
Financing Receivable, Impaired [Line Items] | |||
Loans without a specific valuation allowance, Recorded balance | 0 | ||
Loans with a specific valuation allowance, Recorded balance | 0 | 1,544 | |
Recorded Balance | 1,544 | ||
Loans without a specific valuation allowance, Unpaid Principal Balance | 0 | ||
Loans with a specific valuation allowance, Unpaid Principal Balance | 0 | 1,551 | |
Unpaid Principal Balance | 1,551 | ||
Specific Allowance | 0 | (1,282) | |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 0 | ||
Loans with specific valuation allowance, Average Investment in Impaired Loans | 0 | 1,544 | |
Average Investment in Impaired Loans | 1,544 | ||
Loans with a specific valuation allowance, Interest Income Recognized | 0 | 0 | |
Interest Income Recognized | 0 | ||
Loans without a specific valuation allowance, Interest Income Recognized | 0 | ||
Middle Market Loans | |||
Financing Receivable, Impaired [Line Items] | |||
Loans without a specific valuation allowance, Recorded balance | 0 | 0 | |
Loans with a specific valuation allowance, Recorded balance | 0 | 0 | |
Recorded Balance | 0 | 0 | |
Loans without a specific valuation allowance, Unpaid Principal Balance | 0 | 0 | |
Loans with a specific valuation allowance, Unpaid Principal Balance | 0 | 0 | |
Unpaid Principal Balance | 0 | 0 | |
Specific Allowance | 0 | 0 | |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 | |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 | |
Average Investment in Impaired Loans | 0 | 0 | |
Loans 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 | |||
Financing Receivable, Impaired [Line Items] | |||
Loans without a specific valuation allowance, Recorded balance | 0 | 0 | |
Loans with a specific valuation allowance, Recorded balance | 0 | 0 | |
Recorded Balance | 0 | 0 | |
Loans without a specific valuation allowance, Unpaid Principal Balance | 0 | 0 | |
Loans with a specific valuation allowance, Unpaid Principal Balance | 0 | 0 | |
Unpaid Principal Balance | 0 | 0 | |
Specific Allowance | 0 | 0 | |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 | |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 | |
Average Investment in Impaired Loans | 0 | 0 | |
Loans 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 | |
Total Deconsolidated VIEs | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Balance | $ 91,300 | ||
Number of impaired loans | Loan | 4 |
FINANCING RECEIVABLES (Loan Por
FINANCING RECEIVABLES (Loan Portfolio Troubled-debt Restructurings) (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016USD ($)Loan | Jun. 30, 2015USD ($)Loan | |
Troubled debt restructuring [Abstract] | ||
Number of Loans | Loan | 3 | 3 |
Pre-Modification Outstanding Recorded Balance | $ 29,459 | $ 105,531 |
Post-Modification Outstanding Recorded Balance | $ 29,459 | $ 67,459 |
CRE whole loans | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | Loan | 3 | 2 |
Pre-Modification Outstanding Recorded Balance | $ 29,459 | $ 67,459 |
Post-Modification Outstanding Recorded Balance | $ 29,459 | $ 67,459 |
B notes | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | Loan | 0 | |
Pre-Modification Outstanding Recorded Balance | $ 0 | |
Post-Modification Outstanding Recorded Balance | $ 0 | |
Mezzanine loans | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | Loan | 0 | 1 |
Pre-Modification Outstanding Recorded Balance | $ 0 | $ 38,072 |
Post-Modification Outstanding Recorded Balance | $ 0 | $ 0 |
Bank Loans | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | Loan | 0 | |
Pre-Modification Outstanding Recorded Balance | $ 0 | |
Post-Modification Outstanding Recorded Balance | $ 0 | |
Middle Market Loans | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | Loan | 0 | 0 |
Pre-Modification Outstanding Recorded Balance | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Balance | $ 0 | $ 0 |
Residential Mortgage Loans | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | Loan | 0 | 0 |
Pre-Modification Outstanding Recorded Balance | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Balance | $ 0 | $ 0 |
FINANCING RECEIVABLES Narrative
FINANCING RECEIVABLES Narrative (Details) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016USD ($)Loan | Dec. 31, 2015USD ($)Loan | Apr. 25, 2016USD ($) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans in default | Loan | 0 | 1 | ||
Number of defaulted loans | Loan | 1 | |||
Loans acquired with deteriorated credit quality | $ 1,484,711,000 | $ 2,172,298,000 | ||
Provision (recovery) for loan and lease losses | 12,136,000 | 49,889,000 | ||
Direct financing leases, net of allowances | [1] | 665,000 | 931,000 | |
Bank Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans acquired with deteriorated credit quality | 135,992,000 | |||
Provision (recovery) for loan and lease losses | 77,000 | 2,887,000 | ||
Direct Financing Leases | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision (recovery) for loan and lease losses | 0 | 465,000 | ||
Nonperforming Financing Receivable | Bank Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans acquired with deteriorated credit quality | $ 1,500,000 | |||
Variable Interest Entity, Not Primary Beneficiary | RREF CDO 2006-1 Senior Notes | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Debt instrument, par value | 28,800,000 | $ 28,800,000 | ||
Value of Collateral | $ 0 | |||
[1] | June 30, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$— $95 Restricted cash6,595 39,061 Investment securities available-for-sale, pledged as collateral, at fair value— 66,137 Loans held for sale— 1,475Loans, pledged as collateral and net of allowances of $1.0 million and $42.8 million942,182 1,416,441 Interest receivable3,767 6,592 Prepaid expenses42 238 Principal paydown receivable8,100 17,800 Other assets41 833 Total assets of consolidated VIEs$960,727 $1,548,672 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jan. 05, 2016 | Dec. 15, 2015 | Jul. 30, 2015 | Apr. 30, 2015 | Feb. 26, 2014 | Dec. 31, 2015 | [1] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Investments in unconsolidated entities | $ 76,801 | [1] | $ 1,300 | $ 750 | $ 50,030 | ||||
Life Care Funding, LLC | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Ownership percentage in VIE | 70.90% | 60.70% | 50.20% | ||||||
Acquisition of membership interests | $ 500 | $ 750 | $ 375 | $ 375 | |||||
Recognized identifiable assets acquired, goodwill, and liabilities assumed | $ 4,100 | ||||||||
[1] | June 30, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$— $95 Restricted cash6,595 39,061 Investment securities available-for-sale, pledged as collateral, at fair value— 66,137 Loans held for sale— 1,475Loans, pledged as collateral and net of allowances of $1.0 million and $42.8 million942,182 1,416,441 Interest receivable3,767 6,592 Prepaid expenses42 238 Principal paydown receivable8,100 17,800 Other assets41 833 Total assets of consolidated VIEs$960,727 $1,548,672 |
INTANGIBLE ASSETS (Intangible A
INTANGIBLE ASSETS (Intangible Assets) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($) | |||
Finite-lived Intangible Assets [Roll Forward] | ||||
Balance, beginning of period | $ 26,228 | |||
Additions | 8,362 | |||
Sales | 0 | |||
Amortization | $ (3,064) | (3,064) | ||
Balance, beginning of end | 31,526 | 31,526 | ||
Temporary impairment adjustment | (4,800) | |||
Balance, end of period | 26,726 | [1] | 26,726 | [1] |
Management Contracts | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Balance, beginning of period | 5,316 | |||
Additions | 0 | |||
Sales | 0 | |||
Amortization | (802) | (802) | ||
Balance, beginning of end | 4,514 | 4,514 | ||
Temporary impairment adjustment | 0 | |||
Balance, end of period | 4,514 | 4,514 | ||
Mortgage Servicing Rights | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Balance, beginning of period | 20,822 | |||
Additions | 8,362 | |||
Sales | 0 | |||
Amortization | (2,262) | (2,262) | ||
Balance, beginning of end | 26,922 | 26,922 | ||
Temporary impairment adjustment | (2,300) | (4,800) | ||
Balance, end of period | 22,122 | 22,122 | ||
Wholesale or Correspondent Relationships [Member] | Wholesale/Correspondent Relationships | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Balance, beginning of period | 90 | |||
Additions | 0 | |||
Sales | 0 | |||
Amortization | 0 | 0 | ||
Balance, beginning of end | 90 | 90 | ||
Temporary impairment adjustment | 0 | |||
Balance, end of period | $ 90 | $ 90 | ||
[1] | June 30, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$— $95 Restricted cash6,595 39,061 Investment securities available-for-sale, pledged as collateral, at fair value— 66,137 Loans held for sale— 1,475Loans, pledged as collateral and net of allowances of $1.0 million and $42.8 million942,182 1,416,441 Interest receivable3,767 6,592 Prepaid expenses42 238 Principal paydown receivable8,100 17,800 Other assets41 833 Total assets of consolidated VIEs$960,727 $1,548,672 |
INTANGIBLE ASSETS (Mortgage Ser
INTANGIBLE ASSETS (Mortgage Servicing Rights) (Details) - Mortgage Servicing Rights - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Principal Amount Outstanding of Loans Held-in-portfolio [Roll Forward] | ||
Balance, beginning of period | $ 1,998,273 | $ 894,767 |
Additions | 752,329 | 1,236,145 |
Payoffs, sales and curtailments | (162,102) | (132,639) |
Balance, end of period | $ 2,588,500 | $ 1,998,273 |
INTANGIBLE ASSETS (Servicing Ac
INTANGIBLE ASSETS (Servicing Activities) (Details) - Other Income - Mortgage Servicing Rights - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Servicing fees from capitalized portfolio | $ 1,559 | $ 911 | $ 2,992 | $ 1,462 |
Late fees | 50 | 18 | 99 | 41 |
Other ancillary servicing revenue | $ 7 | $ 3 | $ 12 | $ 7 |
INTANGIBLE ASSETS (Narrative) (
INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||||||||
Fee income | $ 103 | $ 2,816 | $ (598) | $ 3,986 | ||||
Amortization of MSRs | 327 | 512 | 802 | 1,000 | ||||
Expected amortization, 2016 | $ 1,500 | 1,500 | 1,500 | |||||
Expected amortization, 2017 | 1,300 | 1,300 | 1,300 | |||||
Expected amortization, 2018 | 1,200 | 1,200 | 1,200 | |||||
Expected amortization, 2019 | 514 | 514 | 514 | |||||
Expected amortization, 2020 | 515 | 515 | $ 515 | |||||
Acquired finite-lived intangible assets, weighted average useful life | 5 years 3 months 18 days | 5 years 9 months 18 days | ||||||
Temporary impairment adjustment | $ 4,800 | |||||||
Mortgage Servicing Rights | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization of MSRs | 1,200 | 1,000 | 2,300 | 1,800 | ||||
Expected amortization, reminder of year | 4,700 | 4,700 | 4,700 | |||||
Expected amortization, 2017 | 3,900 | 3,900 | 3,900 | |||||
Expected amortization, 2018 | 3,100 | 3,100 | 3,100 | |||||
Expected amortization, 2019 | 2,600 | 2,600 | 2,600 | |||||
Expected amortization, 2020 | 2,200 | 2,200 | 2,200 | |||||
Principal amount outstanding | $ 2,588,500 | $ 1,998,273 | 2,588,500 | 2,588,500 | $ 1,998,273 | $ 894,767 | ||
Acquired finite-lived intangible assets, weighted average useful life | 1 year 3 months 18 days | 1 year 2 months 12 days | ||||||
Finite-Lived intangible assets, remaining amortization period | 5 years 2 months 12 days | 6 years 8 months 12 days | ||||||
Temporary impairment adjustment | 2,300 | 4,800 | ||||||
Finite-lived intangible assets, fair value | $ 22,000 | $ 21,300 | 22,000 | 22,000 | $ 21,300 | |||
Management Contracts | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Fee income | $ 510 | $ 896 | $ 912 | $ 1,900 |
BORROWINGS (Schedule of Debt) (
BORROWINGS (Schedule of Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 1,593,902 | $ 1,593,902 | $ 1,921,081 | |
Unamortized Issuance Costs and Discounts | 18,683 | 18,683 | 25,793 | |
Outstanding Borrowings | $ 1,575,219 | $ 1,575,219 | $ 1,895,288 | |
Weighted Average Borrowing Rate | 3.31% | 3.31% | 2.89% | |
Weighted Average Remaining Maturity | 7 years 8 months 12 days | 10 years 5 months | ||
Value of Collateral | $ 2,095,894 | $ 2,095,894 | $ 2,546,648 | |
Accrued interest costs | [1] | 5,282 | 5,282 | 5,604 |
RREF CDO 2006-1 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 52,772 | |||
Unamortized Issuance Costs and Discounts | 0 | |||
Outstanding Borrowings | $ 52,772 | |||
Weighted Average Borrowing Rate | 2.60% | |||
Weighted Average Remaining Maturity | 30 years 7 months 6 days | |||
Value of Collateral | $ 94,379 | |||
RREF CDO 2007-1 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 91,752 | |||
Unamortized Issuance Costs and Discounts | 0 | |||
Outstanding Borrowings | $ 91,752 | |||
Weighted Average Borrowing Rate | 1.65% | |||
Weighted Average Remaining Maturity | 30 years 9 months 18 days | |||
Value of Collateral | $ 210,904 | |||
RCC CRE Notes 2013 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 47,724 | 47,724 | 58,465 | |
Unamortized Issuance Costs and Discounts | 419 | 419 | 664 | |
Outstanding Borrowings | $ 47,305 | $ 47,305 | $ 57,801 | |
Weighted Average Borrowing Rate | 3.46% | 3.46% | 3.21% | |
Weighted Average Remaining Maturity | 12 years 6 months | 13 years | ||
Value of Collateral | $ 86,307 | $ 86,307 | $ 104,439 | |
RCC 2014-CRE2 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 149,960 | 149,960 | 198,594 | |
Unamortized Issuance Costs and Discounts | 2,394 | 2,394 | 2,991 | |
Outstanding Borrowings | $ 147,566 | $ 147,566 | $ 195,603 | |
Weighted Average Borrowing Rate | 1.87% | 1.87% | 1.68% | |
Weighted Average Remaining Maturity | 15 years 9 months 18 days | 16 years 3 months 18 days | ||
Value of Collateral | $ 266,977 | $ 266,977 | $ 313,663 | |
RCC 2015-CRE3 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 221,692 | 221,692 | 282,127 | |
Unamortized Issuance Costs and Discounts | 2,930 | 2,930 | 3,466 | |
Outstanding Borrowings | $ 218,762 | $ 218,762 | $ 278,661 | |
Weighted Average Borrowing Rate | 2.48% | 2.48% | 2.25% | |
Weighted Average Remaining Maturity | 15 years 8 months 12 days | 16 years 2 months 18 days | ||
Value of Collateral | $ 283,354 | $ 283,354 | $ 341,099 | |
RCC 2015-CRE4 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 223,735 | 223,735 | 223,735 | |
Unamortized Issuance Costs and Discounts | 2,815 | 2,815 | 3,160 | |
Outstanding Borrowings | $ 220,920 | $ 220,920 | $ 220,575 | |
Weighted Average Borrowing Rate | 2.16% | 2.16% | 2.06% | |
Weighted Average Remaining Maturity | 16 years 1 month 6 days | 16 years 7 months 18 days | ||
Value of Collateral | $ 309,729 | $ 309,729 | $ 308,042 | |
Apidos Cinco CDO Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 135,417 | |||
Unamortized Issuance Costs and Discounts | 0 | |||
Outstanding Borrowings | $ 135,417 | |||
Weighted Average Borrowing Rate | 1.25% | |||
Weighted Average Remaining Maturity | 4 years 4 months 24 days | |||
Value of Collateral | $ 154,584 | |||
Unsecured Junior Subordinated Debentures | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 51,548 | 51,548 | 51,548 | |
Unamortized Issuance Costs and Discounts | 27 | 27 | 135 | |
Outstanding Borrowings | $ 51,521 | $ 51,521 | $ 51,413 | |
Weighted Average Borrowing Rate | 4.58% | 4.58% | 4.40% | |
Weighted Average Remaining Maturity | 20 years 3 months 18 days | 20 years 9 months 18 days | ||
Value of Collateral | $ 0 | $ 0 | $ 0 | |
6.0% Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 115,000 | 115,000 | 115,000 | |
Unamortized Issuance Costs and Discounts | 4,076 | 4,076 | 4,917 | |
Outstanding Borrowings | $ 110,924 | $ 110,924 | $ 110,083 | |
Weighted Average Borrowing Rate | 6.00% | 6.00% | 6.00% | |
Weighted Average Remaining Maturity | 2 years 4 months 24 days | 2 years 10 months 24 days | ||
Value of Collateral | $ 0 | $ 0 | $ 0 | |
Interest date, stated percentage | 6.00% | 6.00% | ||
8.0% Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 100,000 | $ 100,000 | 100,000 | |
Unamortized Issuance Costs and Discounts | 4,045 | 4,045 | 4,599 | |
Outstanding Borrowings | $ 95,955 | $ 95,955 | $ 95,401 | |
Weighted Average Borrowing Rate | 8.00% | 8.00% | 8.00% | |
Weighted Average Remaining Maturity | 3 years 6 months | 4 years | ||
Value of Collateral | $ 0 | $ 0 | $ 0 | |
Interest date, stated percentage | 8.00% | 8.00% | ||
CRE - Term Repurchase Facility | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 282,863 | $ 282,863 | 225,346 | |
Unamortized Issuance Costs and Discounts | 1,583 | 1,583 | 2,418 | |
Outstanding Borrowings | $ 281,280 | $ 281,280 | $ 222,928 | |
Weighted Average Borrowing Rate | 2.78% | 2.78% | 2.64% | |
Weighted Average Remaining Maturity | 17 days | 17 days | ||
Value of Collateral | $ 418,236 | $ 418,236 | $ 321,267 | |
Accrued interest costs | 356 | 356 | 315 | |
CMBS - Term Repurchase Facilities | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 83,073 | 83,073 | 25,658 | |
Unamortized Issuance Costs and Discounts | 37 | 37 | 2 | |
Outstanding Borrowings | $ 83,036 | $ 83,036 | $ 25,656 | |
Weighted Average Borrowing Rate | 2.48% | 2.48% | 1.57% | |
Weighted Average Remaining Maturity | 244 days | 18 days | ||
Value of Collateral | $ 119,531 | $ 119,531 | $ 31,650 | |
Accrued interest costs | 157 | 157 | 18 | |
Trust Certificate - Term Repurchase Facility | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 26,655 | 26,655 | 26,659 | |
Unamortized Issuance Costs and Discounts | 357 | 357 | 415 | |
Outstanding Borrowings | $ 26,298 | $ 26,298 | $ 26,244 | |
Weighted Average Borrowing Rate | 5.95% | 5.95% | 5.85% | |
Weighted Average Remaining Maturity | 2 years 4 months 24 days | 2 years 10 months 24 days | ||
Value of Collateral | $ 89,181 | $ 89,181 | $ 89,181 | |
Accrued interest costs | 57 | 57 | 61 | |
Residential Investments - Term Repurchase Facility | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 888 | 888 | 782 | |
Unamortized Issuance Costs and Discounts | 0 | 0 | 0 | |
Outstanding Borrowings | $ 888 | $ 888 | $ 782 | |
Weighted Average Borrowing Rate | 3.00% | 3.00% | 2.75% | |
Weighted Average Remaining Maturity | 5 days | 264 days | ||
Value of Collateral | $ 1,018 | $ 1,018 | $ 835 | |
Accrued interest costs | 26 | 26 | 30 | |
Residential Mortgage Financing Agreements | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 146,764 | 146,764 | 85,819 | |
Unamortized Issuance Costs and Discounts | 0 | 0 | 0 | |
Outstanding Borrowings | $ 146,764 | $ 146,764 | $ 85,819 | |
Weighted Average Borrowing Rate | 3.07% | 3.07% | 3.10% | |
Weighted Average Remaining Maturity | 80 days | 257 days | ||
Value of Collateral | $ 201,114 | $ 201,114 | $ 120,952 | |
CMBS - Short Term Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 57,407 | |||
Unamortized Issuance Costs and Discounts | 0 | |||
Outstanding Borrowings | $ 57,407 | |||
Weighted Average Borrowing Rate | 2.06% | |||
Weighted Average Remaining Maturity | 18 days | |||
Value of Collateral | $ 79,347 | |||
Accrued interest costs | 0 | 0 | 40 | |
Senior Secured Revolving Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 144,000 | 144,000 | 190,000 | |
Unamortized Issuance Costs and Discounts | 0 | 0 | 3,026 | |
Outstanding Borrowings | $ 144,000 | $ 144,000 | $ 186,974 | |
Weighted Average Borrowing Rate | 3.22% | 3.22% | 3.09% | |
Weighted Average Remaining Maturity | 2 years 9 months 18 days | 3 years 2 months 1 day | ||
Value of Collateral | $ 320,447 | $ 320,447 | $ 376,306 | |
Northport LLC | ||||
Debt Instrument [Line Items] | ||||
Amortization of debt issuance costs | $ 2,600 | |||
[1] | June 30, 2016 December 31, 2015Liabilities of consolidated VIEs included in the total liabilities above: Borrowings $634,553 $1,032,581 Accrued interest expense549 923 Derivatives, at fair value— 3,346 Accounts payable and other liabilities157 (117) Total liabilities of consolidated VIEs$635,259 $1,036,733 |
BORROWINGS (Securitization) (De
BORROWINGS (Securitization) (Details) $ in Millions | Jun. 30, 2016USD ($) |
RCC CRE Notes 2013 Senior Notes | |
Debt Instrument [Line Items] | |
Cumulative amount repaid | $ 213.1 |
RCC 2014-CRE2 Senior Notes | |
Debt Instrument [Line Items] | |
Cumulative amount repaid | 85.3 |
RCC 2015-CRE3 | |
Debt Instrument [Line Items] | |
Cumulative amount repaid | 60.4 |
RCC 2015-CRE4 Senior Notes | |
Debt Instrument [Line Items] | |
Cumulative amount repaid | $ 0 |
BORROWINGS (Repurchase and Mort
BORROWINGS (Repurchase and Mortgage Finance Facilities) (Details) | Jun. 30, 2016USD ($)Loan | Dec. 31, 2015USD ($)Loan |
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 3.31% | 2.89% |
Principal Outstanding | $ 1,593,902,000 | $ 1,921,081,000 |
Unamortized Issuance Costs and Discounts | $ 18,683,000 | $ 25,793,000 |
Senior Secured Revolving Credit Agreement | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 3.22% | 3.09% |
Principal Outstanding | $ 144,000,000 | $ 190,000,000 |
Unamortized Issuance Costs and Discounts | $ 0 | $ 3,026,000 |
CMBS - Term Repurchase Facilities | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 2.48% | 1.57% |
Principal Outstanding | $ 83,073,000 | $ 25,658,000 |
Unamortized Issuance Costs and Discounts | $ 37,000 | $ 2,000 |
CRE - Term Repurchase Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 2.78% | 2.64% |
Principal Outstanding | $ 282,863,000 | $ 225,346,000 |
Unamortized Issuance Costs and Discounts | 1,583,000 | 2,418,000 |
Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 538,266,000 | 418,836,000 |
CMBS bonds held as collateral, fair value | 829,080,000 | 643,232,000 |
Wells Fargo Bank | CRE - Term Repurchase Facility | RCC Real Estate | ||
Debt Instrument [Line Items] | ||
Unamortized Issuance Costs and Discounts | 163,000 | 675,000 |
Wells Fargo Bank | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 94,700,000 | 42,030,000 |
Value of Collateral | $ 133,962,000 | $ 59,841,000 |
Number of Positions as Collateral | Loan | 334 | 166 |
Weighted Average Interest Rate | 3.03% | 3.03% |
Wells Fargo Securities, LLC | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 0 | $ 13,548,000 |
Value of Collateral | $ 0 | $ 19,829,000 |
Number of Positions as Collateral | Loan | 0 | 3 |
Weighted Average Interest Rate | 0.00% | 1.93% |
Deutsche Bank Securities, LLC | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 0 | $ 43,859,000 |
Value of Collateral | $ 0 | $ 59,518,000 |
Number of Positions as Collateral | Loan | 0 | 17 |
Weighted Average Interest Rate | 0.00% | 2.10% |
New Century Bank | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 52,064,000 | $ 43,789,000 |
Value of Collateral | $ 67,152,000 | $ 61,111,000 |
Number of Positions as Collateral | Loan | 241 | 199 |
Weighted Average Interest Rate | 3.13% | 3.17% |
CMBS - Term Repurchase Facilities | Wells Fargo Bank | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 22,593,000 | $ 25,656,000 |
Value of Collateral | $ 28,204,000 | $ 31,650,000 |
Number of Positions as Collateral | Loan | 20 | 21 |
Weighted Average Interest Rate | 1.67% | 1.57% |
Unamortized Issuance Costs and Discounts | $ 1,000 | $ 2,000 |
CMBS - Term Repurchase Facilities | Deutsche Bank | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 60,443,000 | 0 |
Value of Collateral | $ 91,327,000 | $ 0 |
Number of Positions as Collateral | Loan | 20 | 0 |
Weighted Average Interest Rate | 2.78% | 0.00% |
CMBS - Term Repurchase Facilities | Deutsche Bank Securities, LLC | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Unamortized Issuance Costs and Discounts | $ 36,000 | $ 0 |
CRE - Term Repurchase Facility | Wells Fargo Bank | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 159,276,000 | 123,937,000 |
Value of Collateral | $ 234,122,000 | $ 179,169,000 |
Number of Positions as Collateral | Loan | 13 | 9 |
Weighted Average Interest Rate | 2.56% | 2.39% |
CRE - Term Repurchase Facility | Morgan Stanley Bank | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 122,004,000 | $ 98,991,000 |
Value of Collateral | $ 184,114,000 | $ 142,098,000 |
Number of Positions as Collateral | Loan | 10 | 7 |
Weighted Average Interest Rate | 3.06% | 2.96% |
Unamortized Issuance Costs and Discounts | $ 1,400,000 | $ 1,700,000 |
CRE - Term Repurchase Facility | RSO Repo SPE Trust 2015 | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Unamortized Issuance Costs and Discounts | 357,000 | 415,000 |
Trust Certificate - Term Repurchase Facility | RSO Repo SPE Trust 2015 | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 26,298,000 | 26,244,000 |
Value of Collateral | $ 89,181,000 | $ 89,181,000 |
Number of Positions as Collateral | Loan | 1 | 1 |
Weighted Average Interest Rate | 5.95% | 5.85% |
RMBS - Term Repurchase Facility | Wells Fargo Bank | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 888,000 | $ 782,000 |
Value of Collateral | $ 1,018,000 | $ 835,000 |
Number of Positions as Collateral | Loan | 2 | 1 |
Weighted Average Interest Rate | 3.00% | 2.75% |
BORROWINGS (Amount at Risk Unde
BORROWINGS (Amount at Risk Under Repurchase Facilities) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 7 years 8 months 12 days | 10 years 5 months |
Weighted Average Interest Rate | 3.31% | 2.89% |
CMBS - Term Repurchase Facilities | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 244 days | 18 days |
Weighted Average Interest Rate | 2.48% | 1.57% |
CRE - Term Repurchase Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 17 days | 17 days |
Weighted Average Interest Rate | 2.78% | 2.64% |
Residential Investments - Term Repurchase Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 5 days | 264 days |
Weighted Average Interest Rate | 3.00% | 2.75% |
Trust Certificate - Term Repurchase Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 2 years 4 months 24 days | 2 years 10 months 24 days |
Weighted Average Interest Rate | 5.95% | 5.85% |
Repurchase Agreements | Wells Fargo Bank | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 3.03% | 3.03% |
Repurchase Agreements | Wells Fargo Securities, LLC | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 0.00% | 1.93% |
Repurchase Agreements | Deutsche Bank Securities, LLC | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 0.00% | 2.10% |
Repurchase Agreements | New Century Bank | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 3.13% | 3.17% |
Linked and Non-linked Transactions | CMBS - Term Repurchase Facilities | Wells Fargo Bank | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 5,533 | $ 6,053 |
Weighted Average Remaining Maturity | 18 days | 18 days |
Weighted Average Interest Rate | 1.67% | 1.57% |
Linked and Non-linked Transactions | CMBS - Term Repurchase Facilities | Deutsche Bank | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 32,692 | |
Weighted Average Remaining Maturity | 329 days | |
Weighted Average Interest Rate | 2.78% | |
Linked and Non-linked Transactions | CRE - Term Repurchase Facility | Wells Fargo Bank | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 74,444 | $ 54,674 |
Weighted Average Remaining Maturity | 18 days | 18 days |
Weighted Average Interest Rate | 2.56% | 2.39% |
Linked and Non-linked Transactions | CRE - Term Repurchase Facility | Morgan Stanley Bank, National Association | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 60,571 | $ 41,248 |
Weighted Average Remaining Maturity | 15 days | 15 days |
Weighted Average Interest Rate | 3.06% | 2.96% |
Linked and Non-linked Transactions | Residential Investments - Term Repurchase Facility | Wells Fargo Bank | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 130 | |
Weighted Average Remaining Maturity | 5 days | |
Weighted Average Interest Rate | 3.00% | |
Linked and Non-linked Transactions | Trust Certificate - Term Repurchase Facility | RSO Repo SPE Trust 2015 | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 62,576 | $ 62,575 |
Weighted Average Remaining Maturity | 2 years 4 months 24 days | 2 years 10 months 24 days |
Weighted Average Interest Rate | 5.95% | 5.85% |
Linked and Non-linked Transactions | RMBS - Term Repurchase Facility | Wells Fargo Bank | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 54 | |
Weighted Average Remaining Maturity | 264 days | |
Weighted Average Interest Rate | 2.75% | |
Linked and Non-linked Transactions | Repurchase Agreements | Wells Fargo Bank | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 39,262 | $ 17,811 |
Weighted Average Remaining Maturity | 59 days | 134 days |
Weighted Average Interest Rate | 3.03% | 3.03% |
Linked and Non-linked Transactions | Repurchase Agreements | Wells Fargo Securities, LLC | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 6,288 | |
Weighted Average Remaining Maturity | 11 days | |
Weighted Average Interest Rate | 1.93% | |
Linked and Non-linked Transactions | Repurchase Agreements | Deutsche Bank Securities, LLC | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 16,330 | |
Weighted Average Remaining Maturity | 20 days | |
Weighted Average Interest Rate | 2.05% | |
Linked and Non-linked Transactions | Repurchase Agreements | New Century Bank | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 15,088 | $ 17,322 |
Weighted Average Remaining Maturity | 22 days | 124 days |
Weighted Average Interest Rate | 3.13% | 3.17% |
BORROWINGS (Contractual Commitm
BORROWINGS (Contractual Commitments) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Total | $ 1,575,219 | ||
2,016 | 451,525 | ||
2,017 | 60,443 | ||
2,018 | 137,222 | ||
2,019 | 144,000 | ||
2020 and Thereafter | 782,029 | ||
Accrued interest expense | [1] | 5,282 | $ 5,604 |
CRE - Term Repurchase Facility | |||
Debt Instrument [Line Items] | |||
Total | 634,553 | ||
2,016 | 0 | ||
2,017 | 0 | ||
2,018 | 0 | ||
2,019 | 0 | ||
2020 and Thereafter | 634,553 | ||
Accrued interest expense | 356 | $ 315 | |
Repurchase Agreements | |||
Debt Instrument [Line Items] | |||
Total | 538,266 | ||
2,016 | 451,525 | ||
2,017 | 60,443 | ||
2,018 | 26,298 | ||
2,019 | 0 | ||
2020 and Thereafter | 0 | ||
Unsecured Junior Subordinated Debentures | |||
Debt Instrument [Line Items] | |||
Total | 51,521 | ||
2,016 | 0 | ||
2,017 | 0 | ||
2,018 | 0 | ||
2,019 | 0 | ||
2020 and Thereafter | 51,521 | ||
Convertible Debt | 6.0% Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Total | 110,924 | ||
2,016 | 0 | ||
2,017 | 0 | ||
2,018 | 110,924 | ||
2,019 | 0 | ||
2020 and Thereafter | 0 | ||
Convertible Debt | 8.0% Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Total | 95,955 | ||
2,016 | 0 | ||
2,017 | 0 | ||
2,018 | 0 | ||
2,019 | 0 | ||
2020 and Thereafter | 95,955 | ||
Senior Secured Revolving Credit Agreement | |||
Debt Instrument [Line Items] | |||
Total | 144,000 | ||
2,016 | 0 | ||
2,017 | 0 | ||
2,018 | 0 | ||
2,019 | 144,000 | ||
2020 and Thereafter | $ 0 | ||
[1] | June 30, 2016 December 31, 2015Liabilities of consolidated VIEs included in the total liabilities above: Borrowings $634,553 $1,032,581 Accrued interest expense549 923 Derivatives, at fair value— 3,346 Accounts payable and other liabilities157 (117) Total liabilities of consolidated VIEs$635,259 $1,036,733 |
BORROWINGS (Narrative)-Senior S
BORROWINGS (Narrative)-Senior Secured Revolving Credit Facility (Details) - USD ($) | May 31, 2016 | Jun. 30, 2016 | May 31, 2016 | May 30, 2016 |
Wells Fargo Bank | Primary Capital Advisors LLC | ||||
Debt Instrument [Line Items] | ||||
Maximum amount of facility | $ 115,000,000 | $ 150,000,000 | $ 115,000,000 | $ 100,000,000 |
Wells Fargo Bank | Primary Capital Advisors LLC | Jumbo Mortgage Loans | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, term | 90 days | 270 days | ||
Deutsche Bank | RCC Real Estate | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | $ 50,000,000 | ||
Repurchase agreement counterparty, term of agreement | 1 year | |||
Repurchase agreement counterparty, term of agreement, extension | 1 year |
SHARE ISSUANCE AND REPURCHASE94
SHARE ISSUANCE AND REPURCHASE (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Preferred Shares - Series A | ||
Class of Stock [Line Items] | ||
Stock issued during period, shares, new issues (in shares) | 0 | |
Stock issued during period, weighted average offering price per share, new issues (in usd per share) | $ 0 | |
Preferred stock, shares outstanding (in shares) | 1,069,016 | 1,069,016 |
Weighted Average Offering Price (in usd per share) | $ 24.29 | |
Preferred stock, coupon authorized (in hundredths) | 8.50% | |
Preferred Shares - Series B | ||
Class of Stock [Line Items] | ||
Stock issued during period, shares, new issues (in shares) | 195,900 | |
Stock issued during period, weighted average offering price per share, new issues (in usd per share) | $ 15.80 | |
Preferred stock, shares outstanding (in shares) | 5,544,579 | 5,740,479 |
Weighted Average Offering Price (in usd per share) | $ 24.02 | |
Preferred stock, coupon authorized (in hundredths) | 8.25% | |
Preferred Shares - Series C | ||
Class of Stock [Line Items] | ||
Stock issued during period, shares, new issues (in shares) | 0 | |
Stock issued during period, weighted average offering price per share, new issues (in usd per share) | $ 0 | |
Preferred stock, shares outstanding (in shares) | 4,800,000 | 4,800,000 |
Weighted Average Offering Price (in usd per share) | $ 25 | |
Preferred stock, coupon authorized (in hundredths) | 8.625% |
SHARE ISSUANCE AND REPURCHASE95
SHARE ISSUANCE AND REPURCHASE (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 11 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Aug. 03, 2015 | Mar. 21, 2013 | |
Class of Stock [Line Items] | |||||||
Shares issued from dividend reinvestment plan (in shares) | 3,000 | 6,000 | |||||
Proceeds from dividend reinvestment plan | $ 35 | $ 70 | |||||
Treasury stock, value | $ 8,000 | $ 33,900 | |||||
Treasury stock, (in shares) | 703,000 | 2,700,000 | |||||
Outstanding shares, stock acquired, percentage | 8.00% | ||||||
Preferred Shares - Series A | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | $ 25 | $ 25 | |||
Preferred Shares - Series B | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, liquidation preference (in dollars per share) | 25 | $ 25 | 25 | 25 | |||
Treasury stock, value | $ 3,100 | ||||||
Treasury stock, (in shares) | 196,000 | ||||||
Outstanding shares, stock acquired, percentage | 3.40% | ||||||
Preferred Shares - Series C | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | $ 25 | $ 25 | |||
Dividend Reinvestment Plan March 21 2013 | Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Shares authorized for dividend reinvestment plan (in shares) | 5,000,000 | ||||||
Equity and Debt Securities Repurchase Program | |||||||
Class of Stock [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 50,000 | $ 50,000 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) $ in Thousands | Aug. 31, 2015 | Aug. 03, 2015 | Oct. 31, 2013USD ($) | Jun. 30, 2016USD ($)shares | Jun. 30, 2015USD ($)shares | Jun. 30, 2016USD ($)Directorshares | Jun. 30, 2015USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock split, conversion ratio | 0.25 | 4 | |||||
Allocated share-based compensation expense | $ 555 | ||||||
Cash awards, percentage | 75.00% | ||||||
Common stock awards, percentage | 25.00% | ||||||
Shares issued pursuant to the Management agreement (in shares) | shares | 0 | 0 | 0 | 0 | |||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Estimated fair value of shares granted | $ 2,300 | $ 4,900 | |||||
Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Contractual term | 10 years | ||||||
Loan Origination Performance Plan | Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock split, conversion ratio | 0.25 | ||||||
Equity Compensation Expense | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated share-based compensation expense | $ 63 | $ 184 | $ 837 | 350 | |||
Compensation cost not yet recognized | 3,400 | $ 3,400 | |||||
Weighted Average Remaining Contractual Term (in years) | 2 years 1 month 24 days | ||||||
General and Administrative Expense | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated share-based compensation expense | 38 | 43 | $ 76 | 86 | |||
Primary Capital Advisors LLC | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Payments to acquire businesses | $ 7,600 | ||||||
Issuance of restricted stock | $ 800 | ||||||
Employees | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Payment award, grant date fair value | $ 483 | 561 | |||||
Non-Employee Directors | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of non employee directors granted shares (directors) | Director | 7 | ||||||
Payment award, grant date fair value | $ 255 | 256 | |||||
Non-Employee Directors | Equity Compensation Expense | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated share-based compensation expense | $ 64 | $ 64 | $ 128 | $ 129 | |||
Vested | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted Average Remaining Contractual Term (in years) | 2 years 5 months 12 days |
SHARE-BASED COMPENSATION (Restr
SHARE-BASED COMPENSATION (Restricted Stock Activity) (Details) $ in Thousands | Mar. 31, 2016shares | Sep. 24, 2014periodshares | Jun. 30, 2016shares | Apr. 30, 2016USD ($) |
January 21, 2016 | 2007 Omnibus Equity Compensation Plan | Restricted Stock | ||||
Restricted common stock transactions [Roll Forward] | ||||
Stock based compensation (in shares) | 130,903 | |||
Vesting/Year | 33.30% | |||
January 21, 2016 | 2007 Omnibus Equity Compensation Plan | Restricted Stock | ||||
Restricted common stock transactions [Roll Forward] | ||||
Stock based compensation (in shares) | 50,784 | |||
Vesting/Year | 33.30% | |||
February 1, 2016 | 2007 Omnibus Equity Compensation Plan | Restricted Stock | ||||
Restricted common stock transactions [Roll Forward] | ||||
Stock based compensation (in shares) | 3,421 | |||
Vesting/Year | 100.00% | |||
February 5, 2016 | 2007 Omnibus Equity Compensation Plan | Restricted Stock | ||||
Restricted common stock transactions [Roll Forward] | ||||
Stock based compensation (in shares) | 90,595 | |||
Vesting/Year | 33.30% | |||
March 8, 2016 | 2007 Omnibus Equity Compensation Plan | Restricted Stock | ||||
Restricted common stock transactions [Roll Forward] | ||||
Stock based compensation (in shares) | 13,912 | |||
Vesting/Year | 100.00% | |||
March 14, 2016 | 2007 Omnibus Equity Compensation Plan | Restricted Stock | ||||
Restricted common stock transactions [Roll Forward] | ||||
Stock based compensation (in shares) | 3,158 | |||
Vesting/Year | 100.00% | |||
March 31, 2016 | 2007 Omnibus Equity Compensation Plan | Restricted Stock | ||||
Restricted common stock transactions [Roll Forward] | ||||
Stock based compensation (in shares) | 8,840 | |||
Vesting/Year | 100.00% | |||
June 6, 2016 | 2007 Omnibus Equity Compensation Plan | Restricted Stock | ||||
Restricted common stock transactions [Roll Forward] | ||||
Stock based compensation (in shares) | 2,702 | |||
Vesting/Year | 100.00% | |||
Non-Employee Directors | ||||
Restricted common stock transactions [Roll Forward] | ||||
Unvested shares, beginning of period (in shares) | 15,267 | |||
Issued (shares) | 23,193 | |||
Vested (shares) | (13,895) | |||
Forfeited (shares) | 0 | |||
Unvested shares, end of period (in shares) | 24,565 | |||
Non-Employees | ||||
Restricted common stock transactions [Roll Forward] | ||||
Unvested shares, beginning of period (in shares) | 617,657 | |||
Issued (shares) | 230,338 | |||
Vested (shares) | (307,562) | |||
Forfeited (shares) | 0 | |||
Unvested shares, end of period (in shares) | 540,433 | |||
Employees | ||||
Restricted common stock transactions [Roll Forward] | ||||
Unvested shares, beginning of period (in shares) | 58,445 | |||
Issued (shares) | 50,784 | |||
Vested (shares) | (18,452) | |||
Forfeited (shares) | 0 | |||
Unvested shares, end of period (in shares) | 90,777 | |||
Manager and Non Employees | ||||
Restricted common stock transactions [Roll Forward] | ||||
Unvested shares, beginning of period (in shares) | 691,369 | |||
Issued (shares) | 304,315 | |||
Vested (shares) | (339,909) | |||
Forfeited (shares) | 0 | |||
Unvested shares, end of period (in shares) | 655,775 | |||
Common Stock | Loan Origination Performance Plan | ||||
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 | 17,682 | |||
Restricted common stock transactions [Roll Forward] | ||||
Annual measurement periods | period | 2 | |||
Share grants on achievement of performance threshold, Tier II (in share) | 8,840 | |||
Dividends Payable on performance shares granted and earned | $ | $ 42 |
SHARE-BASED COMPENSATION (Statu
SHARE-BASED COMPENSATION (Status of Vested Stock Options) (Details) - Vested $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($)$ / sharesshares | |
Stock options outstanding [Roll Forward] | |
Outstanding beginning of period (in shares) | shares | 26,250 |
Vested (in shares) | shares | 0 |
Exercised (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Expired (in shares) | shares | 0 |
Outstanding end of period (in shares) | shares | 26,250 |
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) | $ / shares | $ 46.60 |
Vested (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited (usd per share) | $ / shares | 0 |
Expired (in shares) | $ / shares | 0 |
Outstanding end of period (in dollars per share) | $ / shares | $ 46.60 |
Weighted Average Remaining Contractual Term (in years) | 2 years 5 months 12 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, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total equity compensation expense | $ 1,415 | $ 791 | $ 2,678 | $ 1,786 |
Manager and Non Employees | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total equity compensation expense | 1,288 | 543 | 1,713 | 1,307 |
Employees | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total equity compensation expense | 63 | 184 | 837 | 350 |
Non-Employee Directors | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total equity compensation expense | $ 64 | $ 64 | $ 128 | $ 129 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded (in shares) | 324,524 | 349,880 | 381,106 | 305,878 |
Basic: | ||||
Net income (loss) allocable to common shares | $ (1,536) | $ (31,011) | $ 8,137 | $ (21,609) |
Weighted average number of shares outstanding | 30,410,451 | 32,852,316 | 30,505,428 | 32,833,426 |
Basic net income (loss) per share (in dollars per share) | $ (0.05) | $ (0.94) | $ 0.27 | $ (0.66) |
Diluted: | ||||
Net income (loss) allocable to common shares | $ (1,536) | $ (31,011) | $ 8,137 | $ (21,609) |
Weighted average number of shares outstanding | 30,410,451 | 32,852,316 | 30,505,428 | 32,833,426 |
Additional shares due to assumed conversion of dilutive instruments | 0 | 0 | 218,844 | 0 |
Adjusted weighted-average number of common shares outstanding | 30,410,451 | 32,852,316 | 30,724,272 | 32,833,426 |
Diluted net income (loss) per share (in dollars per share) | $ (0.05) | $ (0.94) | $ 0.26 | $ (0.66) |
Six Percent and Eight Convertible Senior Notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded (in shares) | 9,002,864 | 9,002,864 | 9,002,864,000 | |
6.0% Convertible Senior Notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Interest date, stated percentage | 6.00% | 6.00% | ||
8.0% Convertible Senior Notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Interest date, stated percentage | 8.00% | 8.00% |
ACCUMULATED OTHER COMPREHENS101
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
January 1, 2016 | $ (966) | |||
Unrealized gains on derivatives, net | $ 90 | $ 1,237 | 117 | $ 2,379 |
Unrealized gains (losses) on available-for-sale securities, net | 3,518 | (1,699) | 2,200 | 1,424 |
Foreign currency translation adjustment | 0 | 0 | 0 | 429 |
Other comprehensive gain (loss) before reclassifications | 2,053 | |||
Reclassification adjustments associated with unrealized gains (losses) from interest rate hedges included in net income | (116) | 36 | (55) | 126 |
Reclassification adjustment for realized (gains) losses on available-for-sale securities included in net income | (897) | $ (4,076) | (596) | $ (10,334) |
Amounts reclassified from accumulated other comprehensive income | (387) | |||
June 30, 2016 | 700 | 700 | ||
Net unrealized (loss) gain on derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
January 1, 2016 | (3,471) | |||
Unrealized gains on derivatives, net | 117 | |||
Reclassification adjustments associated with unrealized gains (losses) from interest rate hedges included in net income | (55) | |||
June 30, 2016 | (3,409) | (3,409) | ||
Net unrealized (loss) gain on securities, available-for-sale | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
January 1, 2016 | 2,568 | |||
Unrealized gains (losses) on available-for-sale securities, net | 1,936 | |||
Reclassification adjustment for realized (gains) losses on available-for-sale securities included in net income | (332) | |||
June 30, 2016 | 4,172 | 4,172 | ||
Foreign Currency Translation | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
January 1, 2016 | (63) | |||
Foreign currency translation adjustment | 0 | |||
June 30, 2016 | $ (63) | $ (63) |
RELATED PARTY TRANSACTIONS (Rel
RELATED PARTY TRANSACTIONS (Relationship with Resource America) (Details) € in Millions | Nov. 07, 2013USD ($)shares | May 31, 2016USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2012USD ($) | Jun. 30, 2016USD ($)Transactionshares | Jun. 30, 2015USD ($)Transaction | Jun. 30, 2016USD ($)Transactionshares | Jun. 30, 2015USD ($)Transaction | Dec. 31, 2015USD ($) | Jun. 30, 2016EUR (€)Transactionshares | May 22, 2016USD ($) | Jan. 01, 2016USD ($)Transaction | Dec. 15, 2015USD ($) | Apr. 30, 2015USD ($) | Oct. 31, 2014Transaction | Oct. 31, 2013Transaction | Nov. 16, 2011USD ($) | Jun. 17, 2011USD ($) | Nov. 24, 2010USD ($) | ||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Provision (recovery) for loan and lease losses | $ 12,136,000 | $ 49,889,000 | |||||||||||||||||||||
Direct financing leases, net of allowances | [1] | $ 665,000 | 665,000 | 931,000 | |||||||||||||||||||
Base management fees paid by the Company | 3,099,000 | $ 3,500,000 | 7,136,000 | $ 7,060,000 | |||||||||||||||||||
General and administrative | 11,153,000 | 9,994,000 | 21,223,000 | 19,605,000 | |||||||||||||||||||
Sale (purchase) of and principal payments on securities, trading, net | 140,000 | (9,541,000) | |||||||||||||||||||||
Investment securities, trading | [1] | 3,982,000 | 3,982,000 | 25,550,000 | |||||||||||||||||||
Equity in Earnings of Unconsolidated Subsidiaries | 2,045,000 | 60,000 | 3,626,000 | 173,000 | |||||||||||||||||||
Investments in unconsolidated entities | 76,801,000 | [1] | $ 76,801,000 | [1] | 50,030,000 | [1] | $ 1,300,000 | $ 750,000 | |||||||||||||||
Payment for structuring and placement fee | $ 2,300,000 | ||||||||||||||||||||||
Resource America | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Loan origination fee | 2.00% | ||||||||||||||||||||||
Manager pursuant to the Management Agreement | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Related party, expense reimbursements, annual Fee | $ 550,000 | ||||||||||||||||||||||
Related party, expense reimbursements, annual fee, term | 2 years | ||||||||||||||||||||||
Resource Capital Corp | Lease Equity Appreciation Fund II | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Direct financing leases, net of allowances | [1] | $ 665,000 | $ 665,000 | ||||||||||||||||||||
Resource Capital Corp | Resource America | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Number of common shares of the Company owned by a related party (in shares) | shares | 715,396 | 715,396 | 715,396 | ||||||||||||||||||||
Ownership percentage (percent) | 2.30% | 2.30% | 2.30% | ||||||||||||||||||||
Due from related parties | $ 1,500,000 | ||||||||||||||||||||||
Resource Capital Corp | Manager pursuant to the Management Agreement | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Base management fees paid by the Company | $ 3,000,000 | 3,400,000 | $ 6,900,000 | 6,800,000 | |||||||||||||||||||
Incentive management fees | 0 | 0 | 0 | 0 | |||||||||||||||||||
General and administrative | 1,500,000 | $ 1,600,000 | 2,600,000 | $ 2,700,000 | |||||||||||||||||||
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 | 1,700,000 | 2,500,000 | ||||||||||||||||||||
Accrued base management fees | 978,000 | 978,000 | 978,000 | ||||||||||||||||||||
Expense reimbursement payable | $ 677,000 | $ 677,000 | 1,600,000 | ||||||||||||||||||||
Number of executed CDO transactions (transactions) | Transaction | 8 | 1 | 8 | 1 | 8 | 1 | 1 | ||||||||||||||||
Number of liquidated CDO transactions | Transaction | 3 | ||||||||||||||||||||||
Number of deconsolidated CDO transactions | Transaction | 3 | ||||||||||||||||||||||
Resource Capital Corp | Resource Capital Markets, Inc. | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Base management fees paid by the Company | $ 0 | $ 0 | |||||||||||||||||||||
Sale (purchase) of and principal payments on securities, trading, net | (300,000) | ||||||||||||||||||||||
Investment securities, trading | 4,000,000 | 4,000,000 | 3,700,000 | ||||||||||||||||||||
Expense reimbursements | 0 | $ 65,000 | 8,000 | $ 97,000 | |||||||||||||||||||
Total indebtedness | 127,000 | 127,000 | 152,000 | ||||||||||||||||||||
Due to related parties | $ 59,000 | $ 59,000 | 93,000 | ||||||||||||||||||||
Elevation Home Loans, LLC | |||||||||||||||||||||||
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 | 34,165 | ||||||||||||||||||||||
Harvest CLO XV | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Investments in unconsolidated entities | € | € 12.5 | ||||||||||||||||||||||
Collateralized loan pbligation, par value | $ 413,000,000 | ||||||||||||||||||||||
Investment in LCC Preferred Stock | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Ownership percentage (percent) | 29.00% | 29.00% | 29.00% | ||||||||||||||||||||
Equity in Earnings of Unconsolidated Subsidiaries | $ 933,000 | 350,000 | $ 2,344,000 | 402,000 | |||||||||||||||||||
Investments in unconsolidated entities | $ 44,361,000 | $ 44,361,000 | 42,017,000 | $ 36,300,000 | |||||||||||||||||||
Pelium | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Ownership percentage (percent) | 80.40% | 80.20% | 80.20% | 80.20% | |||||||||||||||||||
Investment securities, trading | $ 21,900,000 | ||||||||||||||||||||||
Acquisition of membership interests | $ 17,500,000 | ||||||||||||||||||||||
Contributions | $ 40,000,000 | ||||||||||||||||||||||
Ownership interest | 10.00% | ||||||||||||||||||||||
Ownership interest increase | 20.00% | 20.00% | 20.00% | ||||||||||||||||||||
Investment in CVC Global Credit Opportunities Fund | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Ownership percentage (percent) | 0.00% | 0.00% | 0.00% | ||||||||||||||||||||
Equity in Earnings of Unconsolidated Subsidiaries | $ 0 | $ 312,000 | $ 0 | $ 920,000 | |||||||||||||||||||
Investments in unconsolidated entities | 0 | 0 | 0 | ||||||||||||||||||||
Commercial Real Estate Lending | Resource Real Estate | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Related party transaction, due from (to) related party | $ 0 | $ 0 | $ 2,500 | ||||||||||||||||||||
[1] | June 30, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$— $95 Restricted cash6,595 39,061 Investment securities available-for-sale, pledged as collateral, at fair value— 66,137 Loans held for sale— 1,475Loans, pledged as collateral and net of allowances of $1.0 million and $42.8 million942,182 1,416,441 Interest receivable3,767 6,592 Prepaid expenses42 238 Principal paydown receivable8,100 17,800 Other assets41 833 Total assets of consolidated VIEs$960,727 $1,548,672 |
RELATED PARTY TRANSACTIONS (103
RELATED PARTY TRANSACTIONS (Relationship with LEAF Financial) (Details) - USD ($) | Feb. 15, 2016 | Jan. 11, 2013 | Feb. 15, 2012 | Feb. 14, 2012 | Sep. 03, 2011 | Mar. 05, 2010 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 05, 2011 | Dec. 15, 2015 | Apr. 30, 2015 | Nov. 16, 2011 | ||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Income (Loss) and Interest Expense from Equity Method Investments | $ 2,045,000 | $ 60,000 | $ 3,626,000 | $ 173,000 | ||||||||||||||||
Investments in unconsolidated entities | 76,801,000 | [1] | 76,801,000 | [1] | $ 50,030,000 | [1] | $ 1,300,000 | $ 750,000 | ||||||||||||
Provision (recovery) for loan losses | (12,136,000) | (49,889,000) | ||||||||||||||||||
Capital Leases, Income Statement, Direct Financing Lease Revenue | $ 2,100,000 | |||||||||||||||||||
Direct financing leases, net of allowances | [1] | 665,000 | 665,000 | 931,000 | ||||||||||||||||
Lease Equity Appreciation Fund II | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Line of credit facility, commitment fee percentage | 1.00% | |||||||||||||||||||
Resource Capital Corp | Lease Equity Appreciation Fund II | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Maximum amount of facility | $ 8,000,000 | |||||||||||||||||||
Line of credit facility, term (in years) | 1 year | |||||||||||||||||||
Interest rate during period (in hundredths) | 10.00% | 12.00% | ||||||||||||||||||
Line of credit facility, extension fee percentage (in hundredths) | 1.00% | 1.00% | 1.00% | |||||||||||||||||
Direct financing leases, net of allowances | [1] | 665,000 | 665,000 | |||||||||||||||||
Investment in LCC Preferred Stock | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Income (Loss) and Interest Expense from Equity Method Investments | 933,000 | 350,000 | 2,344,000 | 402,000 | ||||||||||||||||
Investments in unconsolidated entities | 44,361,000 | 44,361,000 | $ 42,017,000 | $ 36,300,000 | ||||||||||||||||
Loans Receivable-Related Party | Resource Capital Corp | Lease Equity Appreciation Fund II | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Provision (recovery) for loan losses | $ 0 | $ 28,000 | $ 0 | $ 216,000 | $ (1,300,000) | |||||||||||||||
[1] | June 30, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$— $95 Restricted cash6,595 39,061 Investment securities available-for-sale, pledged as collateral, at fair value— 66,137 Loans held for sale— 1,475Loans, pledged as collateral and net of allowances of $1.0 million and $42.8 million942,182 1,416,441 Interest receivable3,767 6,592 Prepaid expenses42 238 Principal paydown receivable8,100 17,800 Other assets41 833 Total assets of consolidated VIEs$960,727 $1,548,672 |
RELATED PARTY TRANSACTIONS (104
RELATED PARTY TRANSACTIONS (Relationship with CVC Credit Partners, LLC) (Details) | Feb. 24, 2011USD ($) | Dec. 31, 2015USD ($)Entity | Oct. 31, 2015USD ($) | Jul. 31, 2015USD ($) | Mar. 31, 2015USD ($) | May 31, 2013 | Oct. 31, 2012Entity | Jun. 30, 2016USD ($)Entity | Jun. 30, 2015USD ($) | Jul. 31, 2013USD ($) | Jun. 30, 2016USD ($)Entity | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)Entity | Dec. 15, 2015USD ($) | Apr. 30, 2015USD ($) | Dec. 31, 2013Entity | Nov. 16, 2011USD ($) | ||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Number of CLO issuers | Entity | 5 | 1 | 5 | 5 | 5 | 2 | |||||||||||||||
Income (Loss) and Interest Expense from Equity Method Investments | $ 2,045,000 | $ 60,000 | $ 3,626,000 | $ 173,000 | |||||||||||||||||
Investments in unconsolidated entities | $ 50,030,000 | [1] | 76,801,000 | [1] | 76,801,000 | [1] | $ 50,030,000 | [1] | $ 1,300,000 | $ 750,000 | |||||||||||
Churchill Pacific Asset Management LLC | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Assets under management, carrying amount | $ 1,900,000,000 | $ 1,900,000,000 | |||||||||||||||||||
CVC Credit Partners, LLC | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Asset management fees percentage (in hundredths) | 1.50% | 1.50% | |||||||||||||||||||
Resource America | CVC Capital Partners | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Ownership percentage (percent) | 24.00% | 24.00% | |||||||||||||||||||
Resource Capital Corp | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Preferred equity interest acquired | 66.60% | ||||||||||||||||||||
Resource Capital Corp | Churchill Pacific Asset Management LLC | |||||||||||||||||||||
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 | CVC Capital Partners | |||||||||||||||||||||
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 | $ 198,000 | 221,000 | $ 307,000 | 458,000 | |||||||||||||||||
Incentive Fee Expense | 0 | ||||||||||||||||||||
Whitney CLO I | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Ownership percentage in VIE | 68.30% | ||||||||||||||||||||
Investment in LCC Preferred Stock | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Ownership percentage (percent) | 29.00% | 29.00% | |||||||||||||||||||
Income (Loss) and Interest Expense from Equity Method Investments | $ 933,000 | 350,000 | $ 2,344,000 | 402,000 | |||||||||||||||||
Investments in unconsolidated entities | 42,017,000 | $ 44,361,000 | $ 44,361,000 | 42,017,000 | $ 36,300,000 | ||||||||||||||||
Investment in CVC Global Credit Opportunities Fund | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Ownership percentage (percent) | 0.00% | 0.00% | |||||||||||||||||||
Income (Loss) and Interest Expense from Equity Method Investments | $ 0 | $ 312,000 | $ 0 | $ 920,000 | |||||||||||||||||
Proceeds from Divestiture of Businesses and Interests in Affiliates | 8,600,000 | $ 4,000,000 | $ 625,000 | $ 5,000,000 | |||||||||||||||||
Investments in unconsolidated entities | $ 0 | $ 0 | 0 | 0 | |||||||||||||||||
Investment in CVC Global Credit Opportunities Fund | Variable Interest Entity, Not Primary Beneficiary | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Acquisition of membership interests | $ 15,000,000 | ||||||||||||||||||||
Management Contracts | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Impairment of intangible assets | $ 2,400,000 | $ 2,400,000 | |||||||||||||||||||
[1] | June 30, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$— $95 Restricted cash6,595 39,061 Investment securities available-for-sale, pledged as collateral, at fair value— 66,137 Loans held for sale— 1,475Loans, pledged as collateral and net of allowances of $1.0 million and $42.8 million942,182 1,416,441 Interest receivable3,767 6,592 Prepaid expenses42 238 Principal paydown receivable8,100 17,800 Other assets41 833 Total assets of consolidated VIEs$960,727 $1,548,672 |
RELATED PARTY TRANSACTIONS (105
RELATED PARTY TRANSACTIONS (Relationship with Resource Real Estate) (Details) | Aug. 18, 2015USD ($) | Jun. 24, 2015USD ($) | Apr. 10, 2015USD ($)Loanoptionfund | Feb. 24, 2015USD ($) | Feb. 01, 2015USD ($) | Jul. 30, 2014USD ($) | Feb. 15, 2012 | Feb. 14, 2012 | Mar. 05, 2010 | Jan. 15, 2010USD ($)extension | Dec. 01, 2009USD ($) | Sep. 30, 2014USD ($) | Jul. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jun. 30, 2016USD ($)DirectorTransaction | Jun. 30, 2015USD ($)Transaction | Jun. 30, 2016USD ($)DirectorTransaction | Jun. 30, 2015USD ($)Transaction | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 15, 2015USD ($) | Apr. 30, 2015USD ($) | Oct. 31, 2014Transaction | Jul. 09, 2014 | Oct. 31, 2013Transaction | ||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Direct financing leases, net of allowances | [1] | $ 665,000 | $ 665,000 | $ 931,000 | |||||||||||||||||||||||||
Number of options to extend | option | 2 | ||||||||||||||||||||||||||||
Option to extend | 1 year | ||||||||||||||||||||||||||||
Base management fees paid by the Company | 3,099,000 | $ 3,500,000 | 7,136,000 | $ 7,060,000 | |||||||||||||||||||||||||
Equity in Earnings of Unconsolidated Subsidiaries | 2,045,000 | 60,000 | 3,626,000 | 173,000 | |||||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries | 2,696,000 | 662,000 | 4,918,000 | 1,368,000 | |||||||||||||||||||||||||
Investments in unconsolidated entities | 76,801,000 | [1] | 76,801,000 | [1] | 50,030,000 | [1] | $ 1,300,000 | $ 750,000 | |||||||||||||||||||||
Number of bridge loans | Loan | 2 | ||||||||||||||||||||||||||||
Number of Funds | fund | 2 | ||||||||||||||||||||||||||||
Placement agent fee | $ 175,000 | $ 205,000 | |||||||||||||||||||||||||||
Provision (recovery) for loan losses | (12,136,000) | (49,889,000) | |||||||||||||||||||||||||||
Resource America | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Payments to acquire additional interest in subsidiaries | $ 2,800,000 | ||||||||||||||||||||||||||||
Investment in CVC Global Credit Opportunities Fund | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Equity in Earnings of Unconsolidated Subsidiaries | $ 0 | 312,000 | $ 0 | 920,000 | |||||||||||||||||||||||||
Ownership percentage (percent) | 0.00% | 0.00% | |||||||||||||||||||||||||||
Investments in unconsolidated entities | $ 0 | $ 0 | 0 | ||||||||||||||||||||||||||
Pelium | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Ownership percentage (percent) | 80.40% | 80.20% | 80.20% | ||||||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries | $ 1,400,000 | $ 1,700,000 | |||||||||||||||||||||||||||
Payments to acquire additional interest in subsidiaries | $ 2,500,000 | $ 2,500,000 | |||||||||||||||||||||||||||
Acquisition of membership interests | $ 17,500,000 | ||||||||||||||||||||||||||||
Ownership interest | 10.00% | ||||||||||||||||||||||||||||
Ownership percentage | 5 years | ||||||||||||||||||||||||||||
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 | $ 10,000 | 0 | $ 35,000 | 46,000 | |||||||||||||||||||||||||
Ownership percentage (percent) | 0.00% | 0.00% | |||||||||||||||||||||||||||
Investments in unconsolidated entities | $ 0 | $ 0 | 0 | ||||||||||||||||||||||||||
Acquisition of membership interests | $ 2,100,000 | ||||||||||||||||||||||||||||
RCC Residential, Inc. | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Ownership percentage (percent) | 63.80% | ||||||||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries | 222,000 | 399,000 | |||||||||||||||||||||||||||
Acquisition of membership interests | $ 15,000,000 | ||||||||||||||||||||||||||||
Pearlmark Mezzanine Realty Partners IV, L.P. | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Equity in Earnings of Unconsolidated Subsidiaries | $ 171,000 | 0 | $ 419,000 | 0 | |||||||||||||||||||||||||
Ownership percentage (percent) | 47.40% | 47.40% | |||||||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries | $ 171,000 | $ 419,000 | |||||||||||||||||||||||||||
Investments in unconsolidated entities | 6,585,000 | 6,585,000 | 6,465,000 | ||||||||||||||||||||||||||
Other commitment | $ 50,000,000 | ||||||||||||||||||||||||||||
Acquisition of membership interests | 7,600,000 | ||||||||||||||||||||||||||||
Property ,anagement fee, percent fee | 1.00% | ||||||||||||||||||||||||||||
Management fee, invested capital, percent fee | 1.50% | ||||||||||||||||||||||||||||
Rebate, percentage | 25.00% | ||||||||||||||||||||||||||||
Investment management fees payable | 193,000 | 193,000 | |||||||||||||||||||||||||||
Lease Equity Appreciation Fund II | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Line of credit facility, commitment fee percentage | 1.00% | ||||||||||||||||||||||||||||
Lease Equity Appreciation Fund II | Resource Capital Corp | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Direct financing leases, net of allowances | [1] | $ 665,000 | $ 665,000 | ||||||||||||||||||||||||||
Interest rate during period (in hundredths) | 10.00% | 12.00% | |||||||||||||||||||||||||||
CVC Capital Partners | Resource America | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Ownership percentage (percent) | 24.00% | 24.00% | |||||||||||||||||||||||||||
Resource America | Resource Capital Corp | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Ownership percentage (percent) | 2.30% | 2.30% | |||||||||||||||||||||||||||
Resource America | Pearlmark Mezzanine Realty Partners IV, L.P. | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Ownership percentage in VIE | 50.00% | ||||||||||||||||||||||||||||
Manager pursuant to the Management Agreement | Resource Capital Corp | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Base management fees paid by the Company | $ 3,000,000 | 3,400,000 | $ 6,900,000 | 6,800,000 | |||||||||||||||||||||||||
Incentive management fees | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||||||||||||||||||
Number of liquidated CDO transactions | Transaction | 3 | ||||||||||||||||||||||||||||
Number of executed CDO transactions (transactions) | Transaction | 8 | 1 | 8 | 1 | 1 | 1 | |||||||||||||||||||||||
Resource Real Estate Management, LLC | 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 | ||||||||||||||||||||||||||||
Resource Real Estate Management, LLC | Varde Investment Partners, L.P | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Base management fees paid by the Company | $ 0 | ||||||||||||||||||||||||||||
Resource Capital Partners Inc | Resource Capital Corp | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Amount of loan to related party | $ 2,000,000 | ||||||||||||||||||||||||||||
Interest date, stated percentage | 8.00% | 8.00% | |||||||||||||||||||||||||||
Related party loan, additional interest in addition to stated interest rate (in hundredths) | 5.00% | 5.00% | |||||||||||||||||||||||||||
Number of extensions | extension | 2 | ||||||||||||||||||||||||||||
Period of time | 1 year | ||||||||||||||||||||||||||||
Resource Real Estate Opportunity Fund, L.P. | Resource America | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Ownership percentage (percent) | 5.00% | ||||||||||||||||||||||||||||
RCC CRE Notes 2013 Senior Notes | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Closing transaction amount | $ 307,800,000 | ||||||||||||||||||||||||||||
Special servicing fee rate | 0.25% | ||||||||||||||||||||||||||||
RCC 2014-CRE2 Senior Notes | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Closing transaction amount | $ 353,900,000 | ||||||||||||||||||||||||||||
RCC 2015-CRE3 | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Closing transaction amount | $ 346,200,000 | ||||||||||||||||||||||||||||
Placement agent fee | $ 100,000 | ||||||||||||||||||||||||||||
RCC 2015-CRE4 | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Closing transaction amount | $ 312,900,000 | ||||||||||||||||||||||||||||
Placement agent fee | $ 85,000 | ||||||||||||||||||||||||||||
Loans Receivable-Related Party | Lease Equity Appreciation Fund II | Resource Capital Corp | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Provision (recovery) for loan losses | $ 0 | $ 28,000 | $ 0 | $ 216,000 | $ (1,300,000) | ||||||||||||||||||||||||
Commercial Real Estate Lending | Resource Real Estate | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Related party transaction, due from (to) related party | 0 | 0 | $ 2,500 | ||||||||||||||||||||||||||
Whispertree Apartments | Resource Real Estate Management, LLC | RCC Real Estate | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Base management fees paid by the Company | $ 0 | ||||||||||||||||||||||||||||
RCM Global, LLC | RCC Residential, Inc. | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Gain on sale of investments | 5,000,000 | ||||||||||||||||||||||||||||
Variable Interest Entity, Distribution | $ 599,000 | ||||||||||||||||||||||||||||
Ownership percentage in VIE | 63.80% | 25.90% | |||||||||||||||||||||||||||
Variable interest entity, total number of board positions | Director | 5 | 5 | |||||||||||||||||||||||||||
Variable interest entity, approval number of board positions | Director | 3 | 3 | |||||||||||||||||||||||||||
Bridge Loan One | Bridge Loan | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Basis spread on variable rate | 5.75% | ||||||||||||||||||||||||||||
Bridge loan | $ 2,500,000 | ||||||||||||||||||||||||||||
Bridge Loan Two | Bridge Loan | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Bridge loan | $ 3,300,000 | ||||||||||||||||||||||||||||
Minimum | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Basis spread on variable rate | 0.25% | ||||||||||||||||||||||||||||
[1] | June 30, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$— $95 Restricted cash6,595 39,061 Investment securities available-for-sale, pledged as collateral, at fair value— 66,137 Loans held for sale— 1,475Loans, pledged as collateral and net of allowances of $1.0 million and $42.8 million942,182 1,416,441 Interest receivable3,767 6,592 Prepaid expenses42 238 Principal paydown receivable8,100 17,800 Other assets41 833 Total assets of consolidated VIEs$960,727 $1,548,672 |
RELATED PARTY TRANSACTIONS (106
RELATED PARTY TRANSACTIONS (Relationship with Law Firm) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Resource Capital Corp | Ledgewood | ||||
Related Party Transaction [Line Items] | ||||
Legal fees | $ 72 | $ 61 | $ 168 | $ 334 |
DISTRIBUTIONS Dividends Declare
DISTRIBUTIONS Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||
Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | |
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Total Dividend Paid | $ 13,051 | $ 13,073 | $ 13,274 | $ 20,667 | $ 21,426 | $ 21,444 |
Dividend Per Share (in $ per share) | $ 0.42 | $ 0.42 | $ 0.42 | $ 0.64 | $ 0.64 | $ 0.64 |
Preferred Shares - Series A | ||||||
Class of Stock [Line Items] | ||||||
Total Dividend Paid | $ 568 | $ 568 | $ 568 | $ 568 | $ 568 | $ 568 |
Dividend Per Share (in $ per share) | $ 0.531250 | $ 0.531250 | $ 0.531250 | $ 0.531250 | $ 0.531250 | $ 0.531250 |
Preferred Shares - Series B | ||||||
Class of Stock [Line Items] | ||||||
Total Dividend Paid | $ 2,859 | $ 2,859 | $ 2,960 | $ 2,960 | $ 2,960 | $ 2,960 |
Dividend Per Share (in $ per share) | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 |
Series C Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Total Dividend Paid | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 |
Dividend Per Share (in $ per share) | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 |
DISTRIBUTIONS Narrative (Detail
DISTRIBUTIONS Narrative (Details) | Aug. 31, 2015 | Aug. 03, 2015 | Jun. 30, 2016 |
DISTRIBUTIONS [Abstract] | |||
Stock split, conversion ratio | 0.25 | 4 | |
REIT required taxable income distribution, percentage | 90.00% | ||
REIT taxable income distribution for exempt federal income taxes, percentage | 100.00% |
FAIR VALUE OF FINANCIAL INST109
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Average pull-through rate, assets | 81.90% | 81.90% | 81.90% | |||
Average pull-through rate, liabilities | 68.10% | 68.10% | 68.10% | |||
Investment securities available-for-sale | $ 255,280,000 | $ 255,280,000 | $ 255,280,000 | $ 208,088,000 | ||
Provision for (recovery of) loan losses | 12,099,000 | $ 38,810,000 | 12,136,000 | $ 42,800,000 | ||
Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Transfers into Level 3 | 0 | |||||
Recurring Basis | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets at fair value | 426,524,000 | 426,524,000 | 426,524,000 | 333,030,000 | ||
Investment securities available-for-sale | 255,280,000 | 255,280,000 | 255,280,000 | 208,088,000 | ||
Recurring Basis | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets at fair value | 119,124,000 | 119,124,000 | 119,124,000 | 71,865,000 | ||
Investment securities available-for-sale | 2,017,000 | 2,017,000 | 2,017,000 | 4,451,000 | ||
Recurring Basis | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets at fair value | 307,400,000 | 307,400,000 | 307,400,000 | 261,165,000 | ||
Investment securities available-for-sale | 253,263,000 | 253,263,000 | 253,263,000 | 203,637,000 | ||
Nonrecurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets at fair value | 317,872,000 | 317,872,000 | 317,872,000 | 131,127,000 | ||
Nonrecurring | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets at fair value | 2,564,000 | 2,564,000 | 2,564,000 | 1,541,000 | ||
Nonrecurring | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets at fair value | $ 315,308,000 | 315,308,000 | 315,308,000 | $ 129,586,000 | ||
Provision for (recovery of) loan losses | $ 0 | 38,900,000 | $ 0 | 41,400,000 | ||
8.0% Convertible Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 8.60% | |||||
Interest date, stated percentage | 8.00% | 8.00% | 8.00% | |||
6.0% Convertible Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 7.00% | |||||
Interest date, stated percentage | 6.00% | 6.00% | 6.00% | |||
Assets Held-for-sale | Nonrecurring | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Provision for (recovery of) loan losses | $ 14,500,000 | $ 86,000 | $ 14,500,000 | $ 806,000 | ||
Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, comparability adjustments | 0.70% | |||||
Minimum | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, market yield | 9.00% | |||||
Fair value inputs, EBITDA | 6 | |||||
Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, comparability adjustments | 7.00% | |||||
Maximum | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, market yield | 14.70% | |||||
Fair value inputs, EBITDA | 11.8 | |||||
Expected Future Cash Flows | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 15.00% | |||||
Expected Future Cash Flows | Minimum | Unsecured Junior Subordinated Debentures | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 13.28% | |||||
Expected Future Cash Flows | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 25.00% | |||||
Expected Future Cash Flows | Maximum | Unsecured Junior Subordinated Debentures | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 13.29% | |||||
Structured Finance Securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Unrealized gain (loss) on investments | $ 328,000 | |||||
Structured Finance Securities | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Transfers into Level 3 | 0 | |||||
Held for Sale | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Unrealized gain (loss) on investments | (3,400) | |||||
Held for Sale | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Transfers into Level 3 | ||||||
Interest Rate Lock Commitments | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Unrealized gain (loss) on investments | 0 | |||||
Interest Rate Lock Commitments | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Transfers into Level 3 | 0 | |||||
Forwards - Residential Mortgage Loans | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Unrealized gain (loss) on investments | (8,000) | |||||
Forwards - Residential Mortgage Loans | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Transfers into Level 3 | 0 | |||||
Derivative Financial Instruments, Liabilities | Option pricing model | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets at fair value | $ 850,000 | $ 850,000 | $ 850,000 | |||
Fair value assumptions, expected volatility rate | 50.00% | |||||
Fair value assumptions, market capitalization | $ 172,700,000 |
FAIR VALUE OF FINANCIAL INST110
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Assets: | |||
Investment securities, trading | [1] | $ 3,982 | $ 25,550 |
Investment securities available-for-sale | 255,280 | 208,088 | |
Derivatives | [1] | 6,133 | 3,446 |
Recurring Basis | |||
Assets: | |||
Investment securities, trading | 3,982 | 25,550 | |
Investment securities available-for-sale | 255,280 | 208,088 | |
Loans held for sale | 161,129 | 95,946 | |
Derivatives | 6,133 | 3,446 | |
Total assets at fair value | 426,524 | 333,030 | |
Liabilities: | |||
Derivatives | 3,084 | 3,941 | |
Total liabilities at fair value | 3,084 | 3,941 | |
Recurring Basis | Level 1 | |||
Assets: | |||
Investment securities, trading | 0 | 0 | |
Investment securities available-for-sale | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Derivatives | 0 | 0 | |
Total assets at fair value | 0 | 0 | |
Liabilities: | |||
Derivatives | 0 | 0 | |
Total liabilities at fair value | 0 | 0 | |
Recurring Basis | Level 2 | |||
Assets: | |||
Investment securities, trading | 0 | 0 | |
Investment securities available-for-sale | 2,017 | 4,451 | |
Loans held for sale | 116,385 | 66,588 | |
Derivatives | 722 | 826 | |
Total assets at fair value | 119,124 | 71,865 | |
Liabilities: | |||
Derivatives | 3,035 | 0 | |
Total liabilities at fair value | 3,035 | 0 | |
Recurring Basis | Level 3 | |||
Assets: | |||
Investment securities, trading | 3,982 | 25,550 | |
Investment securities available-for-sale | 253,263 | 203,637 | |
Loans held for sale | 44,744 | 29,358 | |
Derivatives | 5,411 | 2,620 | |
Total assets at fair value | 307,400 | 261,165 | |
Liabilities: | |||
Derivatives | 49 | 3,941 | |
Total liabilities at fair value | $ 49 | $ 3,941 | |
[1] | June 30, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$— $95 Restricted cash6,595 39,061 Investment securities available-for-sale, pledged as collateral, at fair value— 66,137 Loans held for sale— 1,475Loans, pledged as collateral and net of allowances of $1.0 million and $42.8 million942,182 1,416,441 Interest receivable3,767 6,592 Prepaid expenses42 238 Principal paydown receivable8,100 17,800 Other assets41 833 Total assets of consolidated VIEs$960,727 $1,548,672 |
FAIR VALUE OF FINANCIAL INST111
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets Measured on Recurring Basis) (Details) - Level 3 $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 261,165 |
Total gains or losses (realized or unrealized): | |
Included in earnings | 13,759 |
Purchases/Originations | 127,583 |
Sales | (128,234) |
Paydowns | (48,694) |
Issuances | 0 |
Settlements | (10,881) |
Capitalized Interest | 8,437 |
Included in OCI | (10,261) |
Deconsolidation of VIEs | 94,526 |
Transfers into Level 3 | 0 |
Ending balance | 307,400 |
CMBS | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 159,424 |
Total gains or losses (realized or unrealized): | |
Included in earnings | (302) |
Purchases/Originations | 5,138 |
Sales | 0 |
Paydowns | (19,283) |
Issuances | 0 |
Settlements | 0 |
Capitalized Interest | 0 |
Included in OCI | (1,043) |
Deconsolidation of VIEs | (55,776) |
Transfers into Level 3 | 0 |
Ending balance | 88,158 |
ABS | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 44,213 |
Total gains or losses (realized or unrealized): | |
Included in earnings | 295 |
Purchases/Originations | 44,700 |
Sales | (67,639) |
Paydowns | (27,837) |
Issuances | 0 |
Settlements | 0 |
Capitalized Interest | 8,437 |
Included in OCI | (9,218) |
Deconsolidation of VIEs | 172,154 |
Transfers into Level 3 | 0 |
Ending balance | 165,105 |
Structured Finance Securities | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 25,550 |
Total gains or losses (realized or unrealized): | |
Included in earnings | 328 |
Purchases/Originations | 0 |
Sales | 0 |
Paydowns | (140) |
Issuances | 0 |
Settlements | 96 |
Capitalized Interest | 0 |
Included in OCI | 0 |
Deconsolidation of VIEs | (21,852) |
Transfers into Level 3 | 0 |
Ending balance | 3,982 |
Loans Held for Sale | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 29,358 |
Total gains or losses (realized or unrealized): | |
Included in earnings | (330) |
Purchases/Originations | 77,745 |
Sales | (60,595) |
Paydowns | (1,434) |
Issuances | 0 |
Settlements | 0 |
Capitalized Interest | 0 |
Included in OCI | 0 |
Deconsolidation of VIEs | 0 |
Transfers into Level 3 | |
Ending balance | 44,744 |
Structured notes | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 1,051 |
Total gains or losses (realized or unrealized): | |
Included in earnings | (198) |
Purchases/Originations | 0 |
Sales | 0 |
Paydowns | 0 |
Issuances | 0 |
Settlements | 0 |
Capitalized Interest | 0 |
Included in OCI | 0 |
Deconsolidation of VIEs | 0 |
Transfers into Level 3 | 0 |
Ending balance | 853 |
Interest Rate Lock Commitments | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 1,224 |
Total gains or losses (realized or unrealized): | |
Included in earnings | 14,165 |
Purchases/Originations | 0 |
Sales | 0 |
Paydowns | 0 |
Issuances | 0 |
Settlements | (10,992) |
Capitalized Interest | 0 |
Included in OCI | 0 |
Deconsolidation of VIEs | 0 |
Transfers into Level 3 | 0 |
Ending balance | 4,397 |
Forwards - Residential Mortgage Loans | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 345 |
Total gains or losses (realized or unrealized): | |
Included in earnings | (199) |
Purchases/Originations | 0 |
Sales | 0 |
Paydowns | 0 |
Issuances | 0 |
Settlements | 15 |
Capitalized Interest | 0 |
Included in OCI | 0 |
Deconsolidation of VIEs | 0 |
Transfers into Level 3 | 0 |
Ending balance | $ 161 |
FAIR VALUE OF FINANCIAL INST112
FAIR VALUE OF FINANCIAL INSTRUMENTS (Liabilities Measured on Recurring Basis Level 3 Inputs) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Interest Rate Swaps | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance, January 1, 2016 | $ 3,459 |
Included in earnings | 50 |
Settlements | 0 |
Unrealized gains - included in accumulated other comprehensive income | (3,509) |
Ending balance, June 30, 2016 | 0 |
Level 3 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance, January 1, 2016 | 3,941 |
Included in earnings | (135) |
Settlements | (248) |
Unrealized gains - included in accumulated other comprehensive income | (3,509) |
Ending balance, June 30, 2016 | 49 |
Level 3 | Interest Rate Lock Commitments | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance, January 1, 2016 | 3 |
Included in earnings | 67 |
Settlements | (34) |
Unrealized gains - included in accumulated other comprehensive income | 0 |
Ending balance, June 30, 2016 | 36 |
Level 3 | Forwards - Residential Mortgage Loans | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance, January 1, 2016 | 479 |
Included in earnings | (252) |
Settlements | (214) |
Unrealized gains - included in accumulated other comprehensive income | 0 |
Ending balance, June 30, 2016 | $ 13 |
FAIR VALUE OF FINANCIAL INST113
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities, Quantitative Information) (Details) - Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale | $ 259,179 | $ 1,432 |
Impaired loans | 38,133 | 129,695 |
Mortgage servicing rights | 20,560 | |
Total assets at fair value | 317,872 | 131,127 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale | 0 | 0 |
Impaired loans | 0 | 0 |
Mortgage servicing rights | 0 | |
Total assets at fair value | 0 | 0 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale | 2,564 | 1,279 |
Impaired loans | 0 | 262 |
Mortgage servicing rights | 0 | |
Total assets at fair value | 2,564 | 1,541 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale | 256,615 | 153 |
Impaired loans | 38,133 | 129,433 |
Mortgage servicing rights | 20,560 | |
Total assets at fair value | $ 315,308 | $ 129,586 |
FAIR VALUE OF FINANCIAL INST114
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held-for-investment | [1] | $ 1,476,880 | $ 2,160,751 |
Senior secured revolving credit agreement | 1,575,219 | 1,895,288 | |
Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held-for-investment | 1,476,880 | 2,160,751 | |
CDO notes | 634,553 | 1,032,581 | |
Junior subordinated notes | 51,521 | 51,413 | |
Convertible notes | 206,879 | 205,484 | |
Repurchase agreements | 537,670 | 418,836 | |
Senior secured revolving credit agreement | 144,000 | 186,974 | |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held-for-investment | 1,471,811 | 2,150,061 | |
CDO notes | 628,499 | 923,817 | |
Junior subordinated notes | 24,369 | 17,907 | |
Convertible notes | 215,000 | 205,484 | |
Repurchase agreements | 539,648 | 418,836 | |
Senior secured revolving credit agreement | 144,000 | 186,974 | |
Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held-for-investment | 0 | 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 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held-for-investment | 51,602 | 222,100 | |
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 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held-for-investment | 1,420,209 | 1,927,961 | |
CDO notes | 628,499 | 923,817 | |
Junior subordinated notes | 24,369 | 17,907 | |
Convertible notes | 215,000 | 205,484 | |
Repurchase agreements | 539,648 | 418,836 | |
Senior secured revolving credit agreement | $ 144,000 | $ 186,974 | |
[1] | June 30, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$— $95 Restricted cash6,595 39,061 Investment securities available-for-sale, pledged as collateral, at fair value— 66,137 Loans held for sale— 1,475Loans, pledged as collateral and net of allowances of $1.0 million and $42.8 million942,182 1,416,441 Interest receivable3,767 6,592 Prepaid expenses42 238 Principal paydown receivable8,100 17,800 Other assets41 833 Total assets of consolidated VIEs$960,727 $1,548,672 |
MARKET RISK AND DERIVATIVE I115
MARKET RISK AND DERIVATIVE INSTRUMENTS (Details) | Jun. 30, 2016USD ($) | Jan. 01, 2016USD ($)Derivative | Dec. 31, 2015USD ($)Derivative |
Derivatives, Fair Value [Line Items] | |||
Fair value | $ (3,084,000) | $ (3,941,000) | |
Interest Rate Swaps | |||
Derivatives, Fair Value [Line Items] | |||
Number of derivative instruments held | Derivative | 9 | ||
Average fixed interest rate (in hundredths) | 5.38% | ||
Notional amount | $ 102,800,000 | ||
Fair value | 0 | (3,500,000) | |
Unrealized losses on non-designated derivative instruments | $ 67,000 | $ 3,500,000 | |
RREF CDO 2006-1, CDO 2007-1 Senior Notes | Interest Rate Swaps | |||
Derivatives, Fair Value [Line Items] | |||
Number of derivative instruments held | Derivative | 6 | ||
Notional amount | $ 99,900,000 |
MARKET RISK AND DERIVATIVE I116
MARKET RISK AND DERIVATIVE INSTRUMENTS (Fair Value and Classification of Derivatives) (Details) $ in Thousands, € in Millions | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2016EUR (€) | Dec. 31, 2015EUR (€) | |
Derivatives, Fair Value [Line Items] | |||||
Fair Value | $ 6,133 | $ 3,446 | |||
Fair Value | 3,084 | $ 3,941 | |||
Derivative asset, pass-through, weighted average, percentage | 85.90% | ||||
Derivative liability, pass-through, weighted average, percentage | 19.50% | ||||
Interest Rate Lock Commitments | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 270,487 | $ 105,385 | |||
Notional Amount | 2,646 | 505 | |||
Interest Rate Lock Commitments | Net realized gain on sales of investment securities available-for-sale and loans | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | 3,141 | $ 1,061 | |||
Interest Rate Lock Commitments | Derivatives, at fair value | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair Value | 4,397 | 1,224 | |||
Fair Value | 36 | 3 | |||
Interest Rate Swaps | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 102,799 | ||||
Interest Rate Swaps | Interest expense | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | (70) | 3,152 | |||
Interest Rate Swaps | Net realized gain on sales of investment securities available-for-sale and loans | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | 206 | ||||
Interest Rate Swaps | Derivatives, at fair value | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair Value | 3,459 | ||||
Interest Rate Swaps | Accumulated Other Comprehensive (Loss) Income | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 0 | ||||
Fair Value | 67 | (3,471) | |||
RMBS | Net realized gain on sales of investment securities available-for-sale and loans | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | 57 | ||||
Forward Contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 60,857 | 92,413 | |||
Notional Amount | 363,721 | 143,553 | |||
Forward Contracts | Net realized gain on sales of investment securities available-for-sale and loans | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | (2,587) | 1,989 | |||
Forward Contracts | Derivatives, at fair value | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair Value | 161 | 345 | |||
Fair Value | 2,881 | 479 | |||
Warrant | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 553 | 553 | |||
Warrant | Derivatives, at fair value | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair Value | 853 | 1,051 | |||
Forward contracts-foreign currency | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 26,640 | 24,850 | € 22.9 | ||
Notional Amount | € | € 24 | ||||
Forward contracts-foreign currency | Net realized gain on sales of investment securities available-for-sale and loans | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | (62) | 1,790 | |||
Forward contracts-foreign currency | Derivatives, at fair value | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair Value | 722 | 727 | |||
US Treasury Securities | Net realized gain on sales of investment securities available-for-sale and loans | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | 184 | ||||
Forward contracts - TBA securities | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 29,500 | ||||
Notional Amount | 41,000 | 1,500 | |||
Forward contracts - TBA securities | Net realized gain on sales of investment securities available-for-sale and loans | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | (830) | $ 56 | |||
Forward contracts - TBA securities | Derivatives, at fair value | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair Value | 99 | ||||
Fair Value | $ 167 | $ 0 |
OFFSETTING OF FINANCIAL ASSE117
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Offsetting Derivative Assets [Abstract] | ||
Fair Value | $ 6,133 | $ 3,446 |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 6,133 | 3,446 |
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 | 6,133 | 3,446 |
Total-Assets | ||
Gross Amounts of Recognized Assets | 6,133 | 3,446 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Included in the Consolidated Balance Sheets-Total | 6,133 | 3,446 |
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 | 6,133 | 3,446 |
Offsetting Derivative Liabilities [Abstract] | ||
Gross Amounts of Recognized Liabilities | 3,084 | 3,941 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 3,084 | 3,941 |
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 | 500 |
Net Amount | 3,084 | 3,441 |
Repurchase agreements and term facilties | ||
Gross Amounts of Recognized Liabilities | 538,266 | 418,836 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 538,266 | 418,836 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 538,266 | 418,836 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | 0 |
Net Amount | 0 | 0 |
Total-Liabilities | ||
Gross Amounts Offset in the Consolidated Balance Sheets | 541,350 | 422,777 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 541,350 | 422,777 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 538,266 | 418,836 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | 500 |
Net Amount | 3,084 | 3,441 |
Fair value of securities pledged against swaps | 500 | |
Fair value of securities pledged against repurchase agreements | $ 829,100 | $ 643,200 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Feb. 03, 2016Loanplantiff | May 13, 2014Defendant | Jun. 30, 2016USD ($)plantiff |
PCM | |||
Loss Contingencies [Line Items] | |||
Loss contingency, number of defendants | Defendant | 90 | ||
Loss contingency, estimate of possible loss | $ | $ 20.5 | ||
Loss contingency, number of plaintiffs | plantiff | 150 | 4 | |
Commercial Real Estate Portfolio Segment | |||
Loss Contingencies [Line Items] | |||
Financing receivable, category of loans | Loan | 2 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Loan | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | ||
Segment Reporting Information [Line Items] | ||||||
Number of operating segments | Loan | 5 | |||||
Interest income | $ 38,002 | $ 36,541 | $ 78,099 | $ 74,183 | ||
Interest expense | 18,636 | 15,803 | 34,407 | 30,705 | ||
Net interest income | 19,366 | 20,738 | 43,692 | 43,478 | ||
Amortization of MSRs | (327) | (512) | (802) | (1,000) | ||
Interest income - other | 2,307 | 1,119 | 3,548 | 1,951 | ||
Total revenues | 19,487 | 23,571 | 43,129 | 47,497 | ||
Segment operating expenses | 28,271 | 53,740 | 44,322 | 72,549 | ||
General and administrative | 11,153 | 9,994 | 21,223 | 19,605 | ||
Depreciation and amortization | 504 | 621 | 1,145 | 1,186 | ||
Impairment losses | 0 | 0 | 0 | 59 | ||
Provision (recovery) for loan and lease losses | 12,099 | 38,810 | 12,136 | 42,800 | ||
Equity in net (earnings) losses of unconsolidated subsidiaries | (2,696) | (662) | (4,918) | (1,368) | ||
INCOME (LOSS) BEFORE TAXES | 1,041 | (19,797) | 15,824 | 20 | ||
Income tax (expense) benefit | 3,488 | (2,918) | 2,725 | (4,765) | ||
NET INCOME (LOSS) | 4,529 | (22,715) | 18,549 | (4,745) | ||
Total Assets | [1] | 2,389,844 | 2,389,844 | $ 2,760,432 | ||
Commercial Real Estate Lending | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest income | 25,204 | 22,311 | 50,264 | 44,661 | ||
Other | 3 | 66 | 24 | 70 | ||
Interest expense | 8,364 | 7,838 | 16,588 | 14,929 | ||
Net interest income | 16,840 | 14,473 | 33,676 | 29,732 | ||
Amortization of MSRs | 0 | 0 | 0 | 0 | ||
Interest income - other | 0 | 0 | 0 | 0 | ||
Total revenues | 16,840 | 14,473 | 33,676 | 29,732 | ||
Segment operating expenses | 67 | 0 | 133 | 6 | ||
General and administrative | 865 | 333 | 1,256 | 749 | ||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||
Impairment losses | 0 | 0 | ||||
Provision (recovery) for loan and lease losses | (68) | 38,072 | 0 | 38,072 | ||
Equity in net (earnings) losses of unconsolidated subsidiaries | (181) | 0 | (453) | (46) | ||
Gain on sale of mortgages | 0 | 0 | 0 | 0 | ||
Other (income) expense | (847) | 154 | (843) | 847 | ||
INCOME (LOSS) BEFORE TAXES | 17,004 | (24,086) | 33,583 | (9,896) | ||
Income tax (expense) benefit | 0 | 1 | 0 | (39) | ||
NET INCOME (LOSS) | 17,004 | (24,085) | 33,583 | (9,935) | ||
Total Assets | 1,680,996 | 1,680,996 | 1,907,951 | |||
Commercial Finance | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest income | 3,025 | 5,882 | 4,863 | 12,963 | ||
Other | 2,288 | 1,039 | 3,497 | 1,804 | ||
Interest expense | (2) | 787 | (2) | 1,857 | ||
Net interest income | 3,027 | 5,095 | 4,865 | 11,106 | ||
Amortization of MSRs | 0 | 0 | 0 | 0 | ||
Interest income - other | 762 | 1,150 | 1,334 | 2,365 | ||
Total revenues | 3,789 | 6,245 | 6,199 | 13,471 | ||
Segment operating expenses | 301 | 249 | 570 | 668 | ||
General and administrative | 350 | 498 | 701 | 1,669 | ||
Depreciation and amortization | 327 | 448 | 802 | 892 | ||
Impairment losses | 0 | 59 | ||||
Provision (recovery) for loan and lease losses | 215 | 290 | 76 | 1,518 | ||
Equity in net (earnings) losses of unconsolidated subsidiaries | (2,515) | (662) | (4,465) | (1,322) | ||
Gain on sale of mortgages | 0 | 0 | 0 | 0 | ||
Other (income) expense | 465 | (5,680) | (976) | (8,694) | ||
INCOME (LOSS) BEFORE TAXES | 4,646 | 11,102 | 9,491 | 18,681 | ||
Income tax (expense) benefit | 2,629 | (1,548) | 264 | (1,497) | ||
NET INCOME (LOSS) | 7,275 | 9,554 | 9,755 | 17,184 | ||
Total Assets | 137,621 | 137,621 | 298,028 | |||
Middle Market Lending | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest income | 8,187 | 7,325 | 20,397 | 13,837 | ||
Other | 11 | 1 | 16 | 2 | ||
Interest expense | 4,017 | 1,321 | 5,714 | 2,201 | ||
Net interest income | 4,170 | 6,004 | 14,683 | 11,636 | ||
Amortization of MSRs | 0 | 0 | 0 | 0 | ||
Interest income - other | 0 | 0 | 0 | 0 | ||
Total revenues | 4,170 | 6,004 | 14,683 | 11,636 | ||
Segment operating expenses | 997 | 663 | 2,511 | 1,203 | ||
General and administrative | 959 | 797 | 2,013 | 1,284 | ||
Depreciation and amortization | 4 | 0 | 4 | 1 | ||
Impairment losses | 0 | 0 | ||||
Provision (recovery) for loan and lease losses | 11,952 | 755 | 12,060 | 3,320 | ||
Equity in net (earnings) losses of unconsolidated subsidiaries | 0 | 0 | 0 | 0 | ||
Gain on sale of mortgages | 0 | 0 | 0 | 0 | ||
Other (income) expense | 198 | (125) | 198 | (108) | ||
INCOME (LOSS) BEFORE TAXES | (9,940) | 3,914 | (2,103) | 5,936 | ||
Income tax (expense) benefit | 0 | 0 | 0 | 0 | ||
NET INCOME (LOSS) | (9,940) | 3,914 | (2,103) | 5,936 | ||
Total Assets | 321,460 | 321,460 | 384,973 | |||
Residential Mortgage Lending | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest income | 1,469 | 1,011 | 2,451 | 2,648 | ||
Other | 1 | 1 | 0 | 1 | ||
Interest expense | 1,174 | 872 | 1,946 | 1,989 | ||
Net interest income | 295 | 139 | 505 | 659 | ||
Amortization of MSRs | (1,205) | (1,006) | (2,262) | (1,831) | ||
Interest income - other | 546 | 2,672 | 330 | 3,452 | ||
Total revenues | (364) | 1,805 | (1,427) | 2,280 | ||
Segment operating expenses | 102 | (110) | 909 | 1,544 | ||
General and administrative | 7,111 | 5,846 | 13,400 | 11,880 | ||
Depreciation and amortization | 140 | 140 | 271 | 231 | ||
Impairment losses | 0 | 0 | ||||
Provision (recovery) for loan and lease losses | 0 | (307) | 0 | (110) | ||
Equity in net (earnings) losses of unconsolidated subsidiaries | 0 | 0 | 0 | 0 | ||
Gain on sale of mortgages | (4,768) | (4,168) | (7,901) | (7,702) | ||
Other (income) expense | (687) | (3,581) | (1,610) | (5,882) | ||
INCOME (LOSS) BEFORE TAXES | (2,262) | 3,985 | (6,496) | 2,319 | ||
Income tax (expense) benefit | 1,007 | (1,475) | 2,592 | (2,981) | ||
NET INCOME (LOSS) | (1,255) | 2,510 | (3,904) | (662) | ||
Total Assets | 223,326 | 223,326 | 149,351 | |||
Corporate and Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest income | 117 | 12 | 124 | 74 | ||
Other | 4 | 12 | 11 | 74 | ||
Interest expense | 5,083 | 4,985 | 10,161 | 9,729 | ||
Net interest income | (4,966) | (4,973) | (10,037) | (9,655) | ||
Amortization of MSRs | 0 | 0 | 0 | 0 | ||
Interest income - other | 17 | 17 | 35 | 33 | ||
Total revenues | (4,949) | (4,956) | (10,002) | (9,622) | ||
Segment operating expenses | 3,048 | 3,513 | 5,695 | 5,478 | ||
General and administrative | 1,868 | 2,520 | 3,853 | 4,023 | ||
Depreciation and amortization | 33 | 33 | 68 | 62 | ||
Impairment losses | 0 | 0 | ||||
Provision (recovery) for loan and lease losses | 0 | 0 | 0 | 0 | ||
Equity in net (earnings) losses of unconsolidated subsidiaries | 0 | 0 | 0 | 0 | ||
Gain on sale of mortgages | 0 | 0 | 0 | 0 | ||
Other (income) expense | (1,490) | 3,690 | (967) | (2,165) | ||
INCOME (LOSS) BEFORE TAXES | (8,408) | (14,712) | (18,651) | (17,020) | ||
Income tax (expense) benefit | (147) | 104 | (131) | (248) | ||
NET INCOME (LOSS) | (8,555) | (14,608) | (18,782) | (17,268) | ||
Total Assets | 26,441 | 26,441 | $ 20,129 | |||
Total | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest income | 38,002 | 36,541 | 78,099 | 74,183 | ||
Other | 2,307 | 1,119 | 3,548 | 1,951 | ||
Interest expense | 18,636 | 15,803 | 34,407 | 30,705 | ||
Net interest income | 19,366 | 20,738 | 43,692 | 43,478 | ||
Amortization of MSRs | (1,205) | (1,006) | (2,262) | (1,831) | ||
Interest income - other | 1,325 | 3,839 | 1,699 | 5,850 | ||
Total revenues | 19,486 | 23,571 | 43,129 | 47,497 | ||
Segment operating expenses | 4,515 | 4,315 | 9,818 | 8,899 | ||
General and administrative | 11,153 | 9,994 | 21,223 | 19,605 | ||
Depreciation and amortization | 504 | 621 | 1,145 | 1,186 | ||
Provision (recovery) for loan and lease losses | 12,099 | 38,810 | 12,136 | 42,800 | ||
Equity in net (earnings) losses of unconsolidated subsidiaries | (2,696) | (662) | (4,918) | (1,368) | ||
Gain on sale of mortgages | (4,768) | (4,168) | (7,901) | (7,702) | ||
Other (income) expense | (2,361) | (5,542) | (4,198) | (16,002) | ||
INCOME (LOSS) BEFORE TAXES | 1,040 | (19,797) | 15,824 | 20 | ||
Income tax (expense) benefit | 3,489 | (2,918) | 2,725 | (4,765) | ||
NET INCOME (LOSS) | 4,529 | (22,715) | 18,549 | (4,745) | ||
Total interest income | Commercial Real Estate Lending | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest income | 25,201 | 22,245 | 50,240 | 44,591 | ||
Total interest income | Commercial Finance | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest income | 737 | 4,843 | 1,366 | 11,159 | ||
Total interest income | Middle Market Lending | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest income | 8,176 | 7,324 | 20,381 | 13,835 | ||
Total interest income | Residential Mortgage Lending | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest income | 1,468 | 1,010 | 2,451 | 2,647 | ||
Total interest income | Corporate and Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest income | 113 | 0 | 113 | 0 | ||
Total interest income | Total | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest income | 35,695 | 35,422 | 74,551 | 72,232 | ||
Convertible Debt | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest expense | $ 4,400 | $ 4,400 | $ 8,900 | $ 8,500 | ||
[1] | June 30, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents$— $95 Restricted cash6,595 39,061 Investment securities available-for-sale, pledged as collateral, at fair value— 66,137 Loans held for sale— 1,475Loans, pledged as collateral and net of allowances of $1.0 million and $42.8 million942,182 1,416,441 Interest receivable3,767 6,592 Prepaid expenses42 238 Principal paydown receivable8,100 17,800 Other assets41 833 Total assets of consolidated VIEs$960,727 $1,548,672 |
SEGMENT REPORTING Footnotes (De
SEGMENT REPORTING Footnotes (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016USD ($)Entity | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Entity | Jun. 30, 2015USD ($) | Jan. 01, 2016Entity | Dec. 31, 2015Entity | |
Debt Instrument [Line Items] | ||||||
Interest expense | $ 18,636 | $ 15,803 | $ 34,407 | $ 30,705 | ||
Convertible Debt | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense | 4,400 | 4,400 | 8,900 | 8,500 | ||
Unsecured Junior Subordinated Debentures | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense | 651 | 602 | 1,300 | 1,200 | ||
Commercial Real Estate Lending | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense | 8,364 | 7,838 | 16,588 | 14,929 | ||
Commercial Finance | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense | $ (2) | $ 787 | $ (2) | $ 1,857 | ||
VIE, Primary Beneficiary | ||||||
Debt Instrument [Line Items] | ||||||
Number of consolidated VIEs | Entity | 7 | 7 | 5 | 13 | ||
VIE, Primary Beneficiary | Commercial Real Estate Lending | ||||||
Debt Instrument [Line Items] | ||||||
Number of consolidated VIEs | Entity | 2 | |||||
VIE, Primary Beneficiary | Commercial Finance | ||||||
Debt Instrument [Line Items] | ||||||
Number of consolidated VIEs | Entity | 3 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Thousands | Aug. 08, 2016USD ($) | Aug. 01, 2016USD ($) | Jul. 21, 2016extension | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) |
Subsequent Event [Line Items] | |||||
Loans held for sale | $ 420,308 | $ 95,946 | |||
Gross carrying value of loans held for investment | 1,478,316 | 2,207,822 | |||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Proceeds from divestiture of businesses and interests in affiliates | $ 247,000 | ||||
Proceeds from sale of equity method investments | 102,000 | ||||
Amortization of debt issuance costs | $ 2,600 | ||||
Divestiture of businesses and interests in affiliates, gain (loss), net of tax | $ 8,200 | ||||
Northport LLC | |||||
Subsequent Event [Line Items] | |||||
Amortization of debt issuance costs | 2,600 | ||||
Northport LLC | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Taxable subsidiary, percentage | 70.00% | ||||
Non-Taxable subsidiary, percentage | 30.00% | ||||
Middle Market Lending | |||||
Subsequent Event [Line Items] | |||||
Loans held for sale | 259,179 | ||||
Gross carrying value of loans held for investment | $ 54,485 | $ 379,452 | |||
Middle Market Lending | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Loans held for sale | $ 257,000 | ||||
Number of loans | 1 | ||||
Gross carrying value of loans held for investment | $ 68,000 | ||||
Loans held for investment, weighted average interest rate | 9.83% | ||||
Allowance for loan and lease losses, loans sold | $ 9,000 | ||||
Wells Fargo Bank | RMBS - Term Repurchase Facility | Repurchase Agreements | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Number of extensions | extension | 3 | ||||
Repurchase agreement counterparty, term of agreement, extension | 1 year |