Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 10, 2017 | Jun. 30, 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 Well-know Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 31,398,186 | ||
Public Float | $ 375,434,727 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
ASSETS | |||
Cash and cash equivalents | [1] | $ 116,026 | $ 78,756 |
Restricted cash | [1] | 3,544 | 40,635 |
Interest receivable | [1] | 6,404 | 11,494 |
CRE loans, pledged as collateral and net of allowances of $3.8 million and $43.1 million | [1] | 1,286,278 | 1,783,503 |
Loans held for sale | [1] | 1,007 | 1,475 |
Principal paydowns receivable | [1] | 19,280 | 17,941 |
Investment securities, trading | [1] | 4,492 | 25,550 |
Investment securities available-for-sale, including securities pledged as collateral of $97.5 million and $162.3 million | [1] | 124,968 | 208,088 |
Investments in unconsolidated entities | [1] | 87,919 | 50,030 |
Derivatives, at fair value | [1] | 647 | 727 |
Direct financing leases, net of allowances of $0.5 million and $0.5 million | [1] | 527 | 931 |
Intangible assets | [1] | 213 | 5,316 |
Other assets | [1] | 14,673 | 17,562 |
Deferred tax asset, net | [1] | 4,255 | 12,646 |
Assets held for sale (amount includes $158.2 million of legacy CRE loans held for sale in continuing operations, see Note 27) | [1] | 383,310 | 510,908 |
Total assets | [1] | 2,053,543 | 2,765,562 |
LIABILITIES | |||
Accounts payable and other liabilities | [2] | 4,480 | 3,286 |
Management fee payable - related party | [2] | 1,318 | 1,227 |
Accrued interest expense | [2] | 4,979 | 5,361 |
Borrowings | [2] | 1,191,456 | 1,621,713 |
Distributions payable | [2] | 5,560 | 17,351 |
Derivatives, at fair value | [2] | 97 | 3,458 |
Liabilities held for sale (see Note 27) | [2] | 142,563 | 286,406 |
Total liabilities | [2] | 1,350,453 | 1,938,802 |
EQUITY | |||
Common stock, par value $0.001: 125,000,000 shares authorized; 31,050,020 and 31,562,724 shares issued and outstanding (including 400,050 and 691,369 unvested restricted shares) | 31 | 32 | |
Additional paid-in capital | 1,218,352 | 1,228,346 | |
Accumulated other comprehensive income (loss) | 3,081 | (2,923) | |
Distributions in excess of earnings | (517,177) | (406,603) | |
Total stockholders’ equity | 704,299 | 818,864 | |
Non-controlling interests | (1,209) | 7,896 | |
Total equity | 703,090 | 826,760 | |
TOTAL LIABILITIES AND EQUITY | 2,053,543 | 2,765,562 | |
8.50% Series A Preferred Stock | |||
EQUITY | |||
Preferred stock, par value $0.001 | 1 | 1 | |
8.25% Series B Preferred Stock | |||
EQUITY | |||
Preferred stock, par value $0.001 | 6 | 6 | |
Preferred Shares - Series C | |||
EQUITY | |||
Preferred stock, par value $0.001 | $ 5 | $ 5 | |
[1] | December 31, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $95 Restricted cash$3,308 $39,061 Investments securities available-for-sale, pledged as collateral, at fair value369 66,137 Loans held for sale1,007 1,475Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million747,726 1,416,441 Interest receivable3,153 6,592 Principal paydown receivable5,820 17,800Investment securities available-for-sale, pledged as collateral, at fair value369 66,137 Other assets58 1,071 Total assets of consolidated VIEs$761,441 $1,548,672 | ||
[2] | December 31, 2016 December 31, 2015Liabilities of consolidated VIEs included in the total liabilities above: Borrowings$480,103 $1,032,581 Accrued interest expense519 923 Derivatives, at fair value— 3,346 Unsettled loan purchases— — Accounts payable and other liabilities133 (117) Total liabilities of consolidated VIEs$480,755 $1,036,733 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Financing receivable, allowance for credit losses | $ 4,294 | $ 43,586 |
Assets pledged as collateral | 97,500 | 162,300 |
Available-for-sale Securities | $ 124,968 | $ 208,088 |
Preferred stock, par value (in dollars per share) | $ 0.001 | |
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) | 31,050,020 | 31,562,724 |
Common stock, shares outstanding (in shares) | 31,050,020 | 31,562,724 |
Common stock, shares issued, non-vested restricted shares (in shares) | 400,050 | 691,369 |
Assets of consolidated Variable Interest Entities (VIEs) included in the total assets above: | ||
Cash and cash equivalents | $ 0 | $ 95 |
Restricted cash | 3,308 | 39,061 |
Investments securities available-for-sale, pledged as collateral, at fair value | 369 | 66,137 |
Loans held for sale | 1,007 | 1,475 |
Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million | 747,726 | 1,416,441 |
Interest receivable | 3,153 | 6,592 |
Principal paydown receivable | 5,820 | 17,800 |
Other assets | 58 | 1,071 |
Total assets of consolidated VIEs | 761,441 | 1,548,672 |
Liabilities of consolidated VIEs included in the total liabilities above: | ||
Borrowings | 480,103 | 1,032,581 |
Accrued interest expense | 519 | 923 |
Derivatives, at fair value | 0 | 3,346 |
Unsettled loan purchases | 0 | 0 |
Accounts payable and other liabilities | 133 | (117) |
Total liabilities of consolidated VIEs | 480,755 | 1,036,733 |
Variable interest entity, loans, pledged as collateral, allowance | $ 763 | $ 42,800 |
8.50% Series A Preferred Stock | ||
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 | |
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 |
8.25% Series B Preferred Stock | ||
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 | |
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 | ||
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 | |
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 |
CRE Loans | ||
Financing receivable, allowance for credit losses | $ 3,800 | $ 43,100 |
Commercial Real Estate Loans | ||
Financing receivable, allowance for credit losses | 3,829 | 41,839 |
Syndicated corporate loans | ||
Financing receivable, allowance for credit losses | 0 | 1,282 |
Loans Receivable - Direct Financing Leases | ||
Financing receivable, allowance for credit losses | 465 | 465 |
Discontinued Operations, Held-for-sale | ||
Available-for-sale Securities | 346,761 | $ 471,720 |
CRE legacy whole loans | Discontinued Operations, Held-for-sale | ||
Available-for-sale Securities | $ 158,178 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest income: | |||
CRE loans | $ 85,229 | $ 99,334 | $ 89,231 |
Securities | 22,384 | 18,332 | 17,265 |
Leases | 0 | 556 | 0 |
Interest income − other | 5,005 | 4,252 | 6,785 |
Total interest income | 112,618 | 122,474 | 113,281 |
Interest expense | 53,747 | 56,530 | 43,493 |
Net interest income | 58,871 | 65,944 | 69,788 |
Rental income | 0 | 0 | 8,441 |
Dividend income | (134) | 66 | 186 |
Fee income | 3,943 | 4,865 | 5,891 |
Total revenues | 62,680 | 70,875 | 84,306 |
OPERATING EXPENSES | |||
Management fees − related party | 12,991 | 13,306 | 13,584 |
Equity compensation − related party | 3,025 | 2,420 | 5,933 |
Rental operating | 0 | 6 | 5,443 |
Lease operating | 9 | 57 | 0 |
General and administrative | 15,197 | 16,346 | 14,705 |
Depreciation and amortization | 1,566 | 4,245 | 2,358 |
Impairment losses | 26,470 | 372 | 0 |
Provision for loan and lease losses | 17,765 | 41,088 | 1,712 |
Total operating expenses | 77,023 | 77,840 | 43,735 |
Net interest and other revenues less operating expenses | (14,343) | (6,965) | 40,571 |
OTHER INCOME (EXPENSE) | |||
Equity in earnings of unconsolidated entities | 5,973 | 2,388 | 4,767 |
Net realized and unrealized gain (loss) on derivatives and sales of investment securities available-for-sale and loans | 4,066 | 18,459 | 6,925 |
Net realized and unrealized gain (loss) on investment securities, trading | 2,398 | (547) | (2,818) |
Unrealized gain (loss) and net interest income on linked transactions, net | 0 | 235 | 7,850 |
(Loss) on reissuance/gain on extinguishment of debt | 0 | (1,403) | (4,442) |
Gain on sale of real estate | 64 | 206 | 6,127 |
Other income (expense) | 1,500 | 60 | (1,262) |
Total other income (expense) | 14,001 | 19,398 | 17,147 |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES | (342) | 12,433 | 57,718 |
Income tax (expense) benefit | (10,992) | (1,354) | 1,867 |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | (11,334) | 11,079 | 59,585 |
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX | (19,260) | 6,104 | 2,583 |
NET INCOME (LOSS) | (30,594) | 17,183 | 62,168 |
Net (income) loss allocable to non-controlling interest, net of taxes | (24,091) | (24,437) | (17,176) |
Carrying value in excess of consideration paid for preferred shares | 1,500 | 0 | 0 |
Net (income) loss allocable to non-controlling interest, net of taxes | 229 | (6,628) | (965) |
NET INCOME (LOSS) ALLOCABLE TO COMMON SHARES | $ (52,956) | $ (13,882) | $ 44,027 |
NET INCOME (LOSS) PER COMMON SHARE – BASIC: | |||
Continuing operations (in dollars per share) | $ (1.10) | $ (0.62) | $ 1.30 |
Discontinued operations (in dollars per share) | (0.63) | 0.19 | 0.08 |
TOTAL NET INCOME (LOSS) PER COMMON SHARE - BASIC (in dollars per shares) | (1.73) | (0.43) | 1.38 |
NET INCOME (LOSS) PER COMMON SHARE – DILUTED: | |||
Continuing operations (in dollars per share) | (1.10) | (0.62) | 1.28 |
Discontinued operations (in dollars per share) | (0.63) | 0.19 | 0.08 |
NET INCOME PER SHARE - DILUTED (in dollars per shares) | $ (1.73) | $ (0.43) | $ 1.36 |
Weighted average number of shares outstanding (in shares) | 30,539,369 | 32,280,319 | 32,007,766 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - DILUTED (in shares) | 30,539,369 | 32,280,319 | 32,314,847 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (30,594) | $ 17,183 | $ 62,168 |
Other comprehensive income (loss): | |||
Reclassification adjustment for realized (gains) losses on available-for-sale securities included in net income | (1,916) | (13,435) | 9,051 |
Unrealized gains (losses) on available-for-sale securities, net | 5,850 | (4,781) | 13,937 |
Reclassification adjustments associated with unrealized gains (losses) from interest rate hedges included in net income | (5) | 275 | 282 |
Unrealized gains on derivatives, net | 118 | 5,221 | 1,906 |
Foreign currency translation adjustments | 0 | 349 | (608) |
Total other comprehensive income (loss) | 4,047 | (12,371) | 24,568 |
Comprehensive income (loss) before allocation to non-controlling interests and preferred shares | (26,547) | 4,812 | 86,736 |
Unrealized (gains) losses on available-for-sale securities allocable to non-controlling interests | 0 | 3,405 | (4,482) |
Net (income) loss allocable to non-controlling interests | 229 | (6,628) | (965) |
Net (income) loss allocated to preferred shares | (24,091) | (24,437) | (17,176) |
Carrying value in excess of consideration paid for preferred shares | 1,500 | 0 | 0 |
Comprehensive income (loss) allocable to common shares | $ (48,909) | $ (22,848) | $ 64,113 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Total Stockholders' Equity | 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 | Preferred Stock | Preferred StockTotal Stockholders' Equity | Preferred StockAdditional Paid-In Capital |
Balance (in shares) at Dec. 31, 2013 | 31,979,731 | |||||||||||||
Balance at Dec. 31, 2013 | $ 773,924 | $ 773,924 | $ 32 | $ 1,042,576 | $ (14,043) | $ 0 | $ (254,645) | $ 0 | $ 1 | $ 3 | $ 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Proceeds from dividend reinvestment and stock purchase plan (in shares) | 1,382,976 | |||||||||||||
Proceeds from dividend reinvestment and stock purchase plan | 30,293 | 30,293 | $ 1 | 30,292 | ||||||||||
Proceeds from issuance of preferred stock | 174,159 | 174,159 | 174,151 | 3 | 5 | |||||||||
Offering costs | (1,414) | (1,414) | (1,414) | |||||||||||
Stock based compensation (in shares) | 222,483 | |||||||||||||
Stock based compensation | 0 | 0 | $ 0 | 0 | ||||||||||
Amortization of stock based compensation | 6,566 | 6,566 | 6,566 | |||||||||||
Purchase and retirement of shares, shares | (341,396) | |||||||||||||
Purchase and retirement of common shares | (6,826) | (6,826) | $ 0 | (6,826) | ||||||||||
Contributions from (distributions to), net non-controlling interests | 11,141 | 11,141 | ||||||||||||
Net income | 62,168 | 61,203 | 61,203 | 0 | 965 | |||||||||
Preferred dividends | (17,176) | (17,176) | (17,176) | 0 | ||||||||||
Securities available-for-sale, fair value adjustment, net | 22,988 | 18,506 | 18,506 | 4,482 | ||||||||||
Designated derivatives, fair value adjustment | 2,188 | 2,188 | 2,188 | 0 | ||||||||||
Foreign currency translation adjustment | (608) | (608) | (608) | |||||||||||
Distributions on common stock | (105,292) | (105,292) | (44,027) | (61,265) | ||||||||||
Balance (in shares) at Dec. 31, 2014 | 33,243,794 | |||||||||||||
Balance at Dec. 31, 2014 | 952,111 | 935,523 | $ 33 | 1,245,345 | 6,043 | 0 | (315,910) | 16,588 | 1 | 6 | 5 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Proceeds from dividend reinvestment and stock purchase plan (in shares) | 20,963 | |||||||||||||
Proceeds from dividend reinvestment and stock purchase plan | 328 | 328 | $ 0 | 328 | ||||||||||
Proceeds from issuance of preferred stock | 0 | 0 | 0 | $ 3,113 | $ 3,113 | $ 3,113 | ||||||||
Offering costs | (185) | (185) | (185) | |||||||||||
Discount on 8% convertible senior notes | 2,528 | 2,528 | ||||||||||||
Stock based compensation (in shares) | 307,611 | |||||||||||||
Stock based compensation | 0 | 0 | $ 0 | 0 | ||||||||||
Amortization of stock based compensation | 3,145 | 3,145 | 3,145 | |||||||||||
Purchase and retirement of shares, shares | (2,001,263) | |||||||||||||
Purchase and retirement of common shares | (25,929) | (25,929) | $ (1) | (25,928) | ||||||||||
Forfeiture of unvested stock, In shares | (8,381) | |||||||||||||
Contributions from (distributions to), net non-controlling interests | (11,915) | (11,915) | ||||||||||||
Net income | 17,183 | 10,555 | 10,555 | 0 | 6,628 | |||||||||
Preferred dividends | (24,437) | (24,437) | (24,437) | |||||||||||
Securities available-for-sale, fair value adjustment, net | (18,216) | (14,811) | (14,811) | (3,405) | ||||||||||
Designated derivatives, fair value adjustment | 5,496 | 5,496 | 5,496 | |||||||||||
Foreign currency translation adjustment | 349 | 349 | 349 | |||||||||||
Distributions on common stock | $ (76,811) | (76,811) | 13,882 | (90,693) | ||||||||||
Balance (in shares) at Dec. 31, 2015 | 31,562,724 | 31,562,724 | ||||||||||||
Balance at Dec. 31, 2015 | $ 826,760 | 818,864 | $ 32 | 1,228,346 | (2,923) | 0 | (406,603) | 7,896 | 1 | 6 | 5 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Deconsolidation of variable interest entities | (23,851) | (14,975) | 1,957 | (16,932) | (8,876) | |||||||||
Balance | $ 802,909 | 803,889 | $ 32 | 1,228,346 | (966) | 0 | (423,535) | (980) | 1 | 6 | 5 | |||
Proceeds from dividend reinvestment and stock purchase plan (in shares) | 10,000 | 9,980 | ||||||||||||
Proceeds from dividend reinvestment and stock purchase plan | $ 117 | 117 | $ 0 | 117 | ||||||||||
Discount on 8% convertible senior notes | 19 | 19 | ||||||||||||
Stock based compensation (in shares) | 307,070 | |||||||||||||
Stock based compensation | 0 | 0 | $ 0 | 0 | ||||||||||
Amortization of stock based compensation | 3,964 | 3,964 | 3,964 | |||||||||||
Purchase and retirement of shares, shares | (813,834) | |||||||||||||
Purchase and retirement of common shares | (9,480) | (9,480) | $ (1) | (9,479) | ||||||||||
Forfeiture of unvested stock, In shares | (15,920) | |||||||||||||
Net income | (30,594) | (30,365) | (30,365) | 0 | (229) | |||||||||
Preferred dividends | (24,091) | (24,091) | (24,091) | |||||||||||
Preferred stock redemption | (3,115) | (3,115) | (4,615) | 1,500 | ||||||||||
Securities available-for-sale, fair value adjustment, net | 3,934 | 3,934 | 3,934 | 0 | ||||||||||
Designated derivatives, fair value adjustment | 113 | 113 | 113 | |||||||||||
Foreign currency translation adjustment | 0 | |||||||||||||
Distributions on common stock | $ (40,686) | (40,686) | 52,956 | (93,642) | ||||||||||
Balance (in shares) at Dec. 31, 2016 | 31,050,020 | 31,050,020 | ||||||||||||
Balance at Dec. 31, 2016 | $ 703,090 | $ 704,299 | $ 31 | $ 1,218,352 | $ 3,081 | $ 0 | $ (517,177) | $ (1,209) | $ 1 | $ 6 | $ 5 |
CONSOLIDATED STATEMENT OF CHAN7
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY Parenthetical | Jan. 31, 2015 | Oct. 21, 2013 |
8.0% Convertible Senior Notes | ||
Debt instrument, interest rate, stated percentage | 8.00% | |
6.0% Convertible Senior Notes | ||
Debt instrument, interest rate, stated percentage | 6.00% |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016USD ($)Entity | Dec. 31, 2015USD ($)Entity | Dec. 31, 2014USD ($) | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net income (loss) from continuing operations | $ (11,334) | $ 11,079 | $ 59,585 | |||
TOTAL INCOME (LOSS) FROM DISCONTINUED OPERATIONS | (19,260) | 6,104 | 2,583 | |||
NET INCOME (LOSS) | (30,594) | 17,183 | 62,168 | |||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||||||
Provision (recovery) for loan and lease losses | 17,765 | 41,088 | 1,712 | |||
Depreciation, amortization and accretion | (16,458) | 13,812 | 2,805 | |||
Amortization of stock-based compensation | 3,025 | 2,420 | 5,933 | |||
Deferred income tax (benefit) expense | 8,293 | (781) | (11,191) | |||
Provision (benefit) for deferred taxes | 11,294 | 0 | 0 | |||
Sale (purchase) of and principal payments on securities, trading, net | 269 | (5,486) | (16,515) | |||
Net realized and unrealized (gain) loss on investment securities, trading | (2,398) | 547 | 2,818 | |||
Net realized and unrealized (gain) loss on derivatives and sales of investment securities available-for-sale and loans | (4,066) | (18,459) | (6,925) | |||
Loss (gain) on the reissuance/(extinguishment) of debt | 0 | 1,403 | 4,442 | |||
(Gain) loss on sale of real estate | (64) | (206) | (6,127) | |||
Settlement of derivative instruments | (72) | 3,944 | 0 | |||
Impairment losses | 26,470 | 372 | 0 | |||
Unrealized gain (loss) and net interest income on linked transactions, net | 0 | (235) | (5,615) | |||
Equity in net (earnings) losses of unconsolidated entities | (5,973) | (2,388) | (4,767) | |||
Changes in operating assets and liabilities, net of acquisitions | ||||||
Decrease (increase) in restricted cash | 551 | 2,292 | 4,937 | |||
Decrease (increase) in interest receivable, net of purchased interest | 738 | 1,688 | (5,140) | |||
Increase (decrease) in management fee payable | 185 | 0 | 171 | |||
Increase (decrease) in security deposits | 0 | 0 | 4,696 | |||
Increase (decrease) in accounts payable and accrued liabilities | 447 | (2,569) | (5,801) | |||
(Decrease) increase in accrued interest expense | (91) | 3,063 | 235 | |||
(Increase) decrease in other assets | (3,071) | (10,025) | 10,267 | |||
Net cash provided by (used in) continuing operating activities | 6,250 | 47,663 | 38,103 | |||
Net cash provided by (used in) discontinued operating activities | 35,563 | 22,332 | (103,577) | |||
Net cash (used in) provided by operating activities | 41,813 | 69,995 | (65,474) | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Decrease (increase) in restricted cash | 19,904 | 79,799 | (23,568) | |||
Deconsolidation of VIEs | [1] | (472) | 0 | 0 | ||
Origination and purchase of loans | (238,189) | (731,207) | (774,966) | |||
Principal payments received on loans and leases | 337,656 | 496,564 | 361,897 | |||
Proceeds from sale of loans | 556 | 102,906 | 208,714 | |||
Purchase of securities available-for-sale | (17,428) | (40,375) | (180,990) | |||
Principal payments on securities available-for-sale | 100,802 | 75,960 | 56,053 | |||
Proceeds from sale of securities available-for-sale | 2,818 | 65,787 | 147,171 | |||
Acquisition of securitization assets | (67,781) | 0 | 0 | |||
Proceeds from sale of Northport TRS, LLC | 2,361 | 0 | 0 | |||
Acquisition of controlling interest in Moselle CLO S.A. | 0 | 0 | (30,433) | |||
Return of capital from (investment in) unconsolidated entity | (119) | 2,715 | 9,557 | |||
Settlement of derivative instruments | 1,013 | 5,553 | (1,232) | |||
Proceeds from sale of real estate held-for-sale | 0 | 121 | 65,753 | |||
Improvements in investments in real estate | 0 | 0 | (221) | |||
Purchase of furniture and fixtures | (28) | 0 | (69) | |||
Acquisition of property and equipment | 0 | (14) | 0 | |||
Investment in loans - related parties | 0 | 0 | (1,572) | |||
Principal payments received on loans – related parties | 0 | 558 | 3,848 | |||
Net cash provided by (used in) continuing investing activities | 141,093 | 58,367 | (160,058) | |||
Net cash provided by (used in) discontinued investing activities | 101,826 | (117,872) | (233,192) | |||
Net cash provided (used in) by investing activities | 242,919 | (59,505) | (393,250) | |||
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, $100 and $0) | 115 | 228 | 30,297 | |||
Repurchase of common stock | (9,480) | (25,929) | (6,832) | |||
Repurchase of preferred shares | (3,114) | 0 | 0 | |||
Net proceeds (borrowings) from repurchase agreements | 119,420 | 2,432 | 189,927 | |||
Proceeds from borrowings: | ||||||
Securitizations | 0 | 505,862 | 235,344 | |||
Convertible senior notes | 0 | 99,000 | 0 | |||
Reissuance of debt | 0 | 16,597 | 52,663 | |||
Payments on borrowings: | ||||||
Collateralized debt obligations | 0 | (327,537) | (451,991) | |||
Securitizations | (276,397) | (205,125) | (34,000) | |||
Settlement of derivative instruments | 0 | 0 | 1,865 | |||
Payment of debt issuance costs | (1,977) | (12,136) | (6,313) | |||
Distributions to non-controlling interest and subordinated note holders | 0 | (12,433) | (2,323) | |||
Proceeds received from non-controlling interests | 0 | 0 | 14,213 | |||
Distributions paid on preferred stock | (24,158) | (24,390) | (15,008) | |||
Distributions paid on common stock | (52,409) | (90,100) | (104,225) | |||
Net cash (used in) provided by continuing financing activities | (248,000) | (70,503) | 76,350 | |||
Net cash provided (used in) by discontinued financing activities | 538 | 58,864 | 200,009 | |||
Net cash provided by (used in) financing activities | (247,462) | (11,639) | 276,359 | |||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 37,270 | (1,149) | (182,365) | |||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 78,756 | [2] | 79,905 | 262,270 | ||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 116,026 | [2] | 78,756 | [2] | 79,905 | |
SUPPLEMENTAL DISCLOSURE: | ||||||
Interest expense paid in cash | 46,959 | 48,089 | 35,690 | |||
Income taxes paid in cash | 4,051 | 11,710 | 3,305 | |||
8.50% Series A Preferred Stock | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Proceeds from issuance of redeemable preferred shares, net of offering costs | 0 | 0 | 8,984 | |||
8.25% Series B Preferred Stock | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Proceeds from issuance of redeemable preferred shares, net of offering costs | 0 | 3,028 | 47,481 | |||
Preferred Shares - Series C | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Proceeds from issuance of redeemable preferred shares, net of offering costs | $ 0 | $ 0 | $ 116,268 | |||
VIE, Primary Beneficiary | ||||||
SUPPLEMENTAL DISCLOSURE: | ||||||
Number of consolidated VIEs | Entity | 7 | 13 | ||||
[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] | December 31, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $95 Restricted cash$3,308 $39,061 Investments securities available-for-sale, pledged as collateral, at fair value369 66,137 Loans held for sale1,007 1,475Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million747,726 1,416,441 Interest receivable3,153 6,592 Principal paydown receivable5,820 17,800Investment securities available-for-sale, pledged as collateral, at fair value369 66,137 Other assets58 1,071 Total assets of consolidated VIEs$761,441 $1,548,672 |
CONSOLIDATED STATEMENTS OF CAS9
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net proceeds from dividend reinvestment and stock purchase plan, offering costs | $ 0 | $ 0 | $ 0 |
Common Stock | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Offering costs on stock issuance | 0 | 100 | 0 |
8.50% Series A Preferred Stock | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Offering costs on stock issuance | $ 0 | 0 | 260 |
Preferred stock, coupon authorized (in hundredths) | 8.50% | ||
8.25% Series B Preferred Stock | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Offering costs on stock issuance | $ 0 | 85 | 858 |
Preferred stock, coupon authorized (in hundredths) | 8.25% | ||
Preferred Shares - Series C | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Offering costs on stock issuance | $ 0 | $ 0 | $ 300 |
Preferred stock, coupon authorized (in hundredths) | 8.625% |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 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 its subsidiaries’ (collectively the "Company") originate, purchase and manage a diversified portfolio of commercial real estate ("CRE") debt investments. Historically, the Company has also made investments in CRE-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") (formerly traded on NASDAQ: REXI). On September 8, 2016, Resource America was acquired by C-III Capital Partners LLC ("C-III"), a commercial real estate services company engaged in a broad range of activities, including primary and special loan servicing, loan origination, fund management, collateralized debt obligation ("CDO") management, principal investment, investment sales and multifamily property management. As part of the transaction, C-III took over control of the Manager with respect to the Management Agreement and became the beneficial owner of the Company’s common shares owned by Resource America, approximately 2.3% of the Company’s outstanding shares at December 31, 2016 . 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"). On July 1, 2016, the Company underwent an internal tax restructuring in order to reduce the costs associated with ownership of multiple legal entities, simplify its overall legal entity structure, ease deployment of cash throughout the business for operations and opportunities and consolidate operations into one centralized entity or group of entities. As a result of this tax restructuring, several of the Company’s directly owned subsidiaries converted from corporations to single member LLCs. Also, the following directly owned subsidiaries of the Company merged into RCC Residential Portfolio TRS, Inc. ("RCC Resi TRS") and were dissolved upon the restructuring: Long Term Care Conversion, Inc. ("LTCC") and Resource TRS II, Inc. ("Resource TRS II"). On October 1, 2016, RCC Residential, Inc. ("RCC Residential") merged into RCC Resi TRS. In November 2016, the Company received approval from its board of directors to execute a strategic plan ( the "Plan") to focus its strategy on CRE debt investments. The Plan contemplates disposing of certain legacy CRE loans, exit underperforming non-core asset classes and establishing a dividend policy based on sustainable earnings. Legacy CRE loans are loans underwritten prior to 2010. The Company met all of the criteria to classify the residential mortgage and middle market lending segments' assets and liabilities as held for sale in the fourth quarter of 2016. As a result of the reclassification, these segments were reported as discontinued operations and excluded from continuing operations and from segment results for all periods presented. 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 CRE loans and commercial mortgage-backed securities ("CMBS"). This entity was deconsolidated at January 1, 2016 and the retained investment is accounted for as an investment security, available-for-sale ( see Note 2 ) in the Company's 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 remaining assets of the CDO were distributed to the Company, comprised of investment securities available-for-sale and CRE 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 at January 1, 2016 and the retained investment is now accounted for as an investment security, available-for-sale ( see Note 2 ) in the Company's consolidated financial statements. On November 25, 2016, RREF CDO 2007-1 was liquidated and, in exchange for the Company's interests in RREF CDO 2007-1, the remaining assets of the CDO were distributed to the Company, comprised of investment securities available-for-sale and loans held for investment, which were recorded at fair value. ◦ 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. RCC CRE Notes 2013 was liquidated in December 2016 and, as a result, the remaining assets were returned to the Company in exchange for the Company's preference shares and equity notes in the securitization. ◦ 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 NEW NP, LLC ("NEW NP, LLC"), a Delaware limited liability company, which holds syndicated corporate loans and the Company's self-originated middle market loans, 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 syndicated corporate loans and asset-backed securities ("ABS"). 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 corporate 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 syndicated corporate loans, ABS and corporate bonds. This entity was deconsolidated at January 1, 2016 and the retained investment was accounted for as an investment security, available-for-sale ( see Note 2 ). In November 2016, the Company liquidated Apidos Cinco CDO and, as a result, substantially all of the assets were sold. The remaining assets were consolidated by the Company upon liquidation and are marked at fair value. ◦ Whitney CLO I, Ltd. ("Whitney CLO I"), a Cayman Islands limited liability company and TRS. In September 2013, the Company liquidated Whitney CLO I and, as a result, all of the assets were sold. ◦ Moselle CLO S.A. ("Moselle CLO"), incorporated in Luxembourg, is a CLO issuer whose assets consisted of European senior secured loans, U.S. senior secured loans, U.S. senior unsecured loans, U.S. second lien loans, European mezzanine loans, and a limited amount of synthetic securities and other eligible debt obligations. In December 2014, the Company liquidated Moselle CLO and, as a result, all of the assets were sold. • RCC Commercial III, Inc. ("Commercial III") holds syndicated corporate 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 syndicated corporate loans and ABS. In October 2014, the Company liquidated Apidos CLO I, and as a result, substantially all of the assets were sold. • RSO EquityCo, LLC ("RSO Equity") owned 10% of the equity of Apidos CDO I and 10% of the equity of Apidos CLO VIII, Ltd ("Apidos CLO VIII"), a Cayman Islands limited liability company and TRS. • RCC Residential Portfolio, Inc. ("RCC Resi Portfolio"), a Delaware corporation directly owned by the Company, invests in residential mortgage-backed securities ("RMBS"). • RCC Resi TRS, a TRS directly owned by the Company, is a Delaware corporation which was formed to hold strategic residential mortgage positions which could not be held by RCC Resi Portfolio. RCC Resi TRS also owns 100% of the equity, unless otherwise stated, in the following: ◦ Primary Capital Mortgage, LLC ("PCM"), (formerly known as Primary Capital Advisors, LLC), a limited liability company that originates and services residential mortgage loans. In November 2016, PCM's operations were reclassified to discontinued operations. See Note 27 for further discussion. ◦ RCM Global Manager, LLC ("RCM Global Manager"), a Delaware limited liability company, owns 21.6% of the following entity: ▪ RCM Global, a Delaware limited liability company, holds a portfolio of investment securities, available-for-sale. This entity was deconsolidated at January 1, 2016 and the retained investment is now accounted for as an equity method investment ( see Note 2 ). ◦ 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, which was formed to purchase residential mortgage loans from PCM and transfer the assets to RCC Residential Opportunities Trust ("RCC Opp Trust"). * RCC Opp Trust, a Delaware statutory trust, which was formed to hold a portfolio of residential mortgage loans, available-for-sale. ◦ Resource TRS III, LLC, formerly Resource TRS III, Inc. ("Resource TRS III"), a TRS directly owned by the Company, held the Company’s interests in a syndicated corporate loan CDO originated by the Company. Resource TRS III previously owned 33% of the equity of Apidos CLO VIII, which was liquidated in October 2013. ◦ Resource TRS IV, LLC, formerly 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, LLC, formerly 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 at December 31, 2013. ◦ Long Term Care Conversion Funding ("LTCC Funding"), a New York limited liability company, which provides funding through a financing facility to fund the acquisition of life settlement contracts. ◦ Life Care Funding, LLC ("LCF"), a New York limited liability company, is a joint venture between RCC Resi TRS, which owns a 70.9% equity interest, and Life Care Funding Group Partners. LCF was established for the purpose of acquiring life settlement contracts. As part of the Company's plan to exit under-performing non-core asset classes, the assets and liabilities of LCF were reclassified as held for sale status at December 31, 2016. ◦ 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 corporate loans. The warehouse credit facility closed on May 5, 2016, at which time, Resource TRS III purchased a beneficial interest in ZAIS CLO 4, which was sold in November 2016. Resource TRS, LLC, a Delaware limited liability company, which holds a 25.8% investment in NEW NP LLC. ◦ RCC TRS, LLC, formerly Resource TRS, Inc. ("Resource TRS"), 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: ▪ NEW NP, LLC holds syndicated corporate loan investments and the Company's self-originated middle market loans. Resource TRS owns 44.6% of the equity in NEW NP, LLC at December 31, 2016 . An additional 29.6% of the equity is owned by RCC Commercial. NEW NP, LLC owned 100% of Northport TRS, LLC, a Delaware limited liability company, which held middle market loans. NEW NP, LLC sold its interest in Northport TRS, LLC on August 4, 2016. In November 2016, NP, LLC's operations were reclassified to discontinued operations. See Note 27 for further discussion. ▪ Pelium Capital, a Delaware limited partnership, which holds investment securities, trading. Resource TRS owns 80.2% of the equity in Pelium Capital at December 31, 2016 . This entity was deconsolidated at January 1, 2016 and the retained investment is now accounted for as an equity method investment ( see Note 2 ). ◦ Resource Capital Asset Management ("RCAM"), a domestic limited liability company, which is entitled to collect senior, subordinated, and incentive fees related to one remaining CLO issuer 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 indirectly owns a 24% interest in CVC Credit Partners, L.P., ("CVC Credit Partners"). |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The consolidated financial statements include the accounts of the Company. All inter-company transactions and balances have been eliminated. Variable Interest Entities A VIE is defined as an entity in which equity investors (i) do not have a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional financial support from other parties. A VIE is required to be consolidated by its primary beneficiary, which is defined as the party that (a) has the power to control the activities that most significantly impact the VIE's economic performance and (b) has the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company considers the following criteria in determining whether an entity is a VIE: 1. The equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by any parties, including the equity holders. 2. The equity investors lack one or more of the following essential characteristics of a controlling financial interest. a. The direct ability to make decisions about the entity's activities through voting rights or similar rights. b. The obligation to absorb the expected losses of the entity. c. The right to receive the expected residual returns of the entity. 3. The equity investors have voting rights that are not proportionate to their economic interests, and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. In determining whether the Company is the primary beneficiary of a VIE, the Company reviews governing contracts, formation documents and any other contractual arrangements for any relevant terms and determines the activities that have the most significant impact on the VIE and who has the power to direct those activities. The Company also looks for kick-out rights, protective rights and participating rights as well as any financial or other support provided to the VIE and the reason for that support, and the terms of any explicit or implicit arrangements that may require the Company to provide future support. The Company then makes a determination based on its power to direct the most significant activities of the VIE and/or a financial interest that is potentially significant. The Company continually reassesses whether it should be deemed to be the primary beneficiary of its VIEs. Voting Interest Entities A voting interest entity is an entity in which the total equity investment at risk is sufficient to enable it to finance its activities independently and the equity holders have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the losses of the entity and the right to receive the residual returns of the entity. The usual condition for a controlling financial interest in a voting interest entity is ownership of a majority voting interest. If the Company has a majority voting interest in a voting interest entity, the entity will generally be consolidated. The Company does not consolidate a voting interest entity if there are substantive participating rights by other parties and/or kick-out rights by a single party or through a simple majority vote. The Company performs on-going reassessments of whether entities previously evaluated under the voting interest framework have become VIEs, based on certain events, and therefore subject to the VIE consolidation framework. 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. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates affecting the accompanying consolidated financial statements include the net realizable and fair values of the Company's investments and derivatives, the estimated life used on investments to calculate depreciation, amortization and accretion of premiums and discounts, respectively, provisions for loan losses, valuation of servicing assets and the disclosure of contingent liabilities. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and all highly liquid investments with original maturities of three months or less at the time of purchase. At December 31, 2016 and 2015 , approximately $111.6 million and $74.3 million , respectively, 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. Investment in Unconsolidated Entities The Company's non-controlling investments in unconsolidated entities are included in investments in unconsolidated entities on the consolidated balance sheets and may be accounted for under the equity method or the cost method. Under the equity method, capital contributions, distributions, profits and losses of the entities are allocated in accordance with the terms of the entities' operating agreements. Such allocations may differ from the stated percentage interests, if any, as a result of preferred returns and allocation formulas as described in the entities' operating agreements. For non-controlling investments in unconsolidated entities qualifying for equity method treatment with substantive profit-sharing arrangements, the hypothetical liquidation at book value ("HLBV") method may be used for recognizing earnings. Under the HLBV method, earnings are calculated and recognized based on the change in how the unconsolidated entity would allocate and distribute its cash if it were to liquidate the carrying value of its assets and liabilities on the beginning and end dates of the earnings period; excluding contributions made or distributions received. The Company may account for an investment that does not qualify for equity method accounting using the cost method. Under the cost method, the Company records dividend income when declared to the extent it is not considered a return of capital, which is recorded as a reduction of the cost of the investment. Investment Securities The Company classifies its investment portfolio as trading or available-for-sale. The Company, from time to time, may sell any of its investments due to changes in market conditions or in accordance with its investment strategy. The Company’s investment securities, trading and investment securities available-for-sale are reported at fair value. To determine fair value, the Company uses an independent third-party valuation firm utilizing data available in the market as well as appropriate prepayment, default and recovery rates. These valuations are validated utilizing dealer quotes or bids or internal models. If there is a material difference between the value indicated by the third-party valuation firm and the dealer quote, bid or internal models, the Company will evaluate the difference, which could result in an updated valuation from the third-party or a revised dealer quote. Based on a prioritization of inputs used in valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. Any changes in fair value to the Company's investment securities, trading are recorded in the Company’s consolidated statements of operations as net realized and unrealized gain (loss) on investment securities, trading. Any changes in fair value to the Company's investment securities available-for-sale are recorded in the Company’s consolidated balance sheets as a component of accumulated other comprehensive income (loss) in stockholders' equity. On a quarterly basis, the Company evaluates its available-for-sale investments for other-than-temporary impairment. An available-for-sale investment is impaired when its fair value has declined below its amortized cost basis. An impairment is considered other-than-temporary when the amortized cost basis of the investment or some portion thereof will not be recovered. The determination of other-than-temporary impairment is a subjective process, and different judgments and assumptions could affect the timing of loss realization. The Company reviews its portfolios and makes other-than-temporary impairment determinations at least quarterly. The Company considers the following factors when determining if there is an other-than-temporary impairment on a security: • the length of time the market value has been less than amortized cost; • the severity of the impairment; • the expected loss of the security as generated by a third-party valuation model; • original and current credit ratings from the rating agencies; • underlying credit fundamentals of the collateral backing the securities; • whether, based upon the Company’s intent, it is more likely than not that the Company will sell the security before the recovery of the amortized cost basis; and • third-party support for default, for recovery, prepayment speed and reinvestment price assumptions. Where credit quality is believed to be the cause of the other-than-temporary impairment, that component of the impairment is recognized as an impairment loss in the consolidated statements of operations. Where other market components are believed to be the cause of the impairment, that component of the impairment is recognized as other comprehensive loss. The Company performs an on-going review of third-party reports and updated financial data on the underlying properties in order to analyze current and projected security performance. Rating agency downgrades are considered with respect to the Company’s income approach when determining other-than-temporary impairment and, when inputs are subjected to testing for economic changes within possible ranges, the resulting projected cash flows reflect a full recovery of principal and interest indicating no impairment. Investment security transactions are recorded on the trade date. Realized gains and losses on investment securities are determined on the specific identification method. Investment Interest Income Recognition Interest income on the Company’s mortgage-backed and other asset-backed securities is accrued using the effective yield method based on the actual coupon rate and the outstanding principal amount of the underlying mortgages or other assets. Premiums and discounts are amortized or accreted into interest income over the expected lives of the securities also using the effective yield method, adjusted for the effects of estimated prepayments. For an investment purchased at par, the effective yield is the contractual interest rate on the investment. If the investment is purchased at a discount or at a premium, the effective yield is computed based on the contractual interest rate increased for the accretion of a purchase discount or decreased for the amortization of a purchase premium. The effective yield method requires the Company to make estimates of future prepayment rates for its investments that can be contractually prepaid before their contractual maturity date so that the purchase discount can be accreted, or the purchase premium can be amortized, over the estimated remaining life of the investment. The prepayment estimates that the Company uses directly impact the estimated remaining lives of its investments. Actual prepayment estimates are reviewed as of each quarter end or more frequently if the Company becomes aware of any material information that would lead it to believe that an adjustment is necessary. If prepayment estimates are incorrect, the amortization or accretion of premiums and discounts may have to be adjusted, which would have an impact on future income. To the extent that the Company invests in securities qualifying as beneficial interests in securitized financial assets, the Company will recognize the excess of all cash flows attributable to the beneficial interest estimated at the acquisition/transaction date over the initial investment (the accretable yield) as interest income over the life of the beneficial interest using the effective yield method. Loans The Company acquires loans through direct origination, through the acquisition of participations in commercial real estate loans and corporate leveraged loans in the secondary market and through syndications of newly originated loans. Loans are held for investment; therefore, the Company initially records them at their acquisition price, and subsequently, accounts for them based on their outstanding principal plus or minus unamortized premiums or discounts. The Company may sell a loan held for investment where the credit fundamentals underlying a particular loan have changed in such a manner that the Company's expected return on investment may decrease. Once the determination has been made by the Company that it no longer will hold the loan for investment, the Company identifies these loans as loans held for sale. Any credit-related impairment considerations prior to the transfer to loans held for sale are accounted for through the allowance for loan and lease losses. At December 31, 2016 , the Company has disclosed certain legacy CRE loans in assets held for sale in its consolidated balance sheet. Loan Interest Income Recognition Interest income on loans includes interest at stated rates adjusted for amortization or accretion of premiums and discounts. Premiums and discounts are amortized or accreted into income using the effective yield method. If a loan with a premium or discount is prepaid, the Company immediately recognizes the unamortized portion as a decrease or increase to interest income. In addition, the Company defers loan origination fees and loan origination costs and recognizes them over the life of the related loan against interest income using the straight line method which approximates the effective yield method. Allowance for Loan Loss The Company maintains an allowance for loan loss. For the Company's CRE and syndicated corporate loan portfolios, loans held for investment are first individually evaluated for impairment to determine whether a specific reserve is required. Loans that are not determined to be impaired individually are then evaluated for impairment as a homogeneous pool of loans with substantially similar characteristics so that a general reserve can be established, if needed. The reviews are performed at least quarterly. The Company considers a loan to be impaired if one of two conditions exists. The first condition is if, based on current information and events, management believes that a loss event has occurred which makes it probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The second condition is if the loan is deemed to be a troubled-debt restructuring ("TDR") where a concession has been given to a borrower in financial difficulty. These TDRs may not have an associated specific loan loss allowance if the principal and interest amount is considered recoverable based on current market conditions, expected collateral performance and/or guarantees made by the borrowers. When a loan is impaired under either of these two conditions, the allowance for loan losses is increased by the amount of the excess of the amortized cost basis of the loan over its fair value. Fair value may be determined based on the present value of estimated cash flows; on market price, if available; or on the fair value of the collateral less estimated disposition costs. When a loan, or a portion thereof, is considered uncollectible and pursuit of collection is not warranted, the Company will record a charge-off or write-down of the loan against the allowance for loan losses. An impaired loan may remain on accrual status during the period in which the Company is pursuing repayment of the loan; however, the loan would be placed on non-accrual status at such time as (i) management believes that scheduled debt service payments will not be met within the coming 12 months; (ii) the loan becomes 90 days delinquent; (iii) management determines the borrower is incapable of, or has ceased efforts toward, curing the cause of the impairment; or (iv) the net realizable value of the loan’s underlying collateral approximates the Company’s carrying value for such loan. While on non-accrual status, the Company recognizes interest income only when an actual payment is received if a credit analysis supports the borrower's principal repayment capacity. When a loan is placed on non-accrual, previously accrued interest is reversed from interest income. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed. All impaired loans are carried at fair value and are measured on a quarterly basis. The fair value is determined using unobservable inputs including estimates of selling costs (Level 3). Long-Lived and Intangible Assets Long-lived assets and certain identifiable intangibles to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. The review of recoverability is based on an estimate of the future undiscounted cash flows (excluding interest charges) expected to result from the long-lived asset’s use and eventual disposition. If impairment has occurred, the loss will be measured as the excess of the carrying amount of the asset over the fair value of the asset. During the year ended December 31, 2016 , the Company recorded an impairment charge of $3.7 million , on a pre-tax basis, with respect to the Company's intangible assets in impairment losses on the Company's consolidated statement of operations. During the year ended December 31, 2015 , the Company recorded an impairment charge of $2.4 million , on a pre-tax basis, with respect to the Company's intangible assets in depreciation and amortization on the Company's consolidated statement of operations. There were no impairment charges recorded with respect to the Company’s investment in real estate or intangible assets during the year ended December 31, 2014 . Assets and Liabilities Held for Sale The Company classifies long-lived assets or a disposal group to be sold as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the asset or the disposal group; the asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; an active program to locate a buyer and other actions required to complete the plan to sell the asset or disposal group have been initiated; the sale of the asset or disposal group is probable, and transfer of the asset or disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond the Company's control extend the period of time required to sell the asset or disposal group beyond one year; the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A long-lived asset or disposal group that is classified as held for sale is initially measured at the lower of its cost or fair value less any costs to sell. Any loss resulting from the transfer of long-lived assets or disposal groups to assets held for sale is recognized in the period in which the held for sale criteria are met. Legacy CRE loans included as assets held for sale were measured at the lower of cost or fair value on the date the legacy CRE loan was transferred to assets held for sale. Any specific loan loss reserves for legacy CRE loans transferred to assets held for sale were measured and charged off on the date of transfer, establishing a new cost basis for the loans. The fair values of assets held for sale are assessed each reporting period and changes in such fair values are reported as an adjustment to the carrying value of the asset or disposal group with an offset to the income statement line item "Fair value adjustments on financial assets held for sale" to the extent that any subsequent changes in fair value do not exceed the cost basis of the asset or disposal group. Additionally, upon determining that a long-lived asset or disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group, if material, in the line items assets or liabilities held for sale in the consolidated balance sheets. See Note 27 . Discontinued Operations The results of operations of a component or a group of components of the Company that either has been disposed of or is classified as held for sale is reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results. Comprehensive Income (Loss) Comprehensive income (loss) for the Company includes net income and the change in net unrealized gains (losses) on available-for-sale securities, derivative instruments used to hedge exposure to interest rate fluctuations and protect against declines in the market value of assets resulting from general market trends as well as translation of currency as a result of the Company's investment in the equity of foreign CDOs. Income Taxes The Company operates in such a manner as to qualify as a REIT under the provisions of the Internal Revenue Code of 1986, as amended (the "Code"); therefore, applicable REIT taxable income is included in the taxable income of its shareholders, to the extent distributed by the Company. To maintain REIT status for federal income tax purposes, the Company is generally required to distribute at least 90% of its REIT taxable income to its shareholders as well as comply with certain other qualification requirements as defined under the Code. As a REIT, the Company is not subject to federal corporate income tax to the extent that it distributes 100% of its REIT taxable income each year. Taxable income, from non-REIT activities managed through the Company's TRSs, are subject to federal, state and local income taxes. The Company's TRS' income taxes are accounted for under the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for the temporary differences between the financial reporting basis and tax basis of assets and liabilities. In addition, Apidos CDO I, Apidos CDO III, Apidos Cinco CDO, Harvest CLO VII, Harvest CLO VIII, and Harvest CLO XV Designated Activity Company ("Harvest CLO XV"), the Company's foreign TRSs, are organized as exempted companies incorporated with limited liability under the laws of the Cayman Islands and, with respect to Harvest CLO VII, Harvest CLO VIII, and Harvest CLO XV, Ireland, and are generally exempt from federal and state income tax at the corporate level because their activities in the United States are limited to trading in stock and securities for their own account. Therefore, despite their status as TRSs, they generally will not be subject to corporate tax on their earnings and no provision for income taxes is required. However, because they are either controlled foreign corporations or passive foreign investment companies (in which the Company has made a Qualified Electing Fund election), the Company will generally be required to include its share of current taxable income from the foreign TRSs in its calculation of REIT taxable income. The Company accounts for taxes assessed by a governmental authority that is directly imposed on a revenue-producing transaction (e.g., sales, use, value added) on a net (excluded from revenue) basis. Stock Based Compensation Issuances of restricted stock and options are accounted for using the fair value based methodology whereby the fair value of the award is measured on the grant date and expensed monthly to equity compensation expense-related party on the consolidated statements of operations with a corresponding entry to additional paid-in capital. For issuances to the Company's Manager and to non-employees, the unvested stock and options are adjusted quarterly to reflect changes in fair value as performance under the agreement is completed. For issuances to the Company's eight non-employee directors or to any direct employees of the Company's subsidiaries, the amount is not remeasured under the fair value-based method. The compensation for each of these issuances is amortized over the service period and included in equity compensation expense. Net Income (Loss) Per Share The Company calculates basic income per share by dividing net income for the period by the weighted-average number of shares of its common stock, including vested restricted stock and participating securities, outstanding for that period. Diluted income per share takes into account the effect of dilutive investments, such as stock options, unvested restricted stock and convertible debt, but uses the average share price for the period in determining the number of incremental shares that are to be added to the weighted-average number of shares outstanding. Derivative Instruments The Company's policies permit it to enter into derivative contracts, including interest rate swaps and interest rate caps, to add stability to its interest expense and to manage its exposure to interest rate movements or other identified risks. The Company has designated these transactions as cash flow hedges. The contracts or hedge instruments are evaluated at inception and at subsequent consolidated balance sheets dates to determine if they qualify for hedge accounting which requires that the Company recognize all derivatives on the consolidated balance sheets at fair value. The Company records changes in the estimated fair value of the derivative in other comprehensive income to the extent that it is effective. Any ineffective portion of a derivative's change in fair value is immediately recognized in earnings. The Company may also enter into forward currency contracts. Forward contracts represent future commitments to either purchase or to deliver loans, securities or a quantity of a currency at a predetermined future date, at a predetermined rate or price and are used to manage interest rate risk on loan commitments and mortgage loans held for sale as well as currency risk with respect to the Company's long positions in foreign currency-denominated investment securities. Linked Transactions Prior to January 1, 2015, if the Company financed the purchase of securities with repurchase agreements with the same counterparty from whom the securities were purchased and both transactions were entered into contemporaneously or in contemplation of each other, the transactions were presumed not to meet sale accounting criteria and the Company accounted for the purchase of such securities and the repurchase agreement on a net basis and recorded a forward purchase commitment to purchase securities (each, a "Linked Transaction") at fair value on the Company's consolidated balance sheets in the line item linked transactions, at fair value. Changes in the fair value of the assets and liabilities underlying the linked transactions and associated interest income and interest expense were reported as unrealized (loss) gain and net interest income on linked transactions, net on the Company's consolidated statements of operations. Due to a change in accounting guidance, as of January 1, 2015, the concept of linked transactions no longer exists. Recent Accounting Standards In January 2017, the Financial Accounting Standards Board, or FASB, issued guidance to add the SEC Staff Announcement "Disclosure of the Impact that Recently Issued Accounting Standards will have on the Financial Statements of a Registrant when such Standards are Adopted in a Future Period (in accordance with Staff Accounting Bulletin Topic 11.M)." The announcement applies to the May 2014 guidance on revenue recognition from contracts with customers, the February 2016 guidance on leases and the June 2016 guidance on how credit losses for most financial assets and certain other instruments that are measured at fair value through net income are determined. The announcement provides the SEC staff view that a registrant should evaluate certain recent accounting standards that have not yet been adopted to determine appropriate financial statement disclosures about the potential material effects of those recent accounting standards. If a registrant does not know or cannot reasonably estimate the impact that adoption of the recent accounting standards referenced in this announcement is expected to have on the financial statements, then the registrant should make a statement to that effect and consider the additional qualitative financial statement disclosures to assist the reader in assessing the significance of the impact that the recent accounting standards will have on the financial statements of the registrant when adopted. The Company has not completed its assessment under the new guidance on revenue recognition from contracts with customers, however, it expects to identify similar performance obligations as currently identified; therefore, the Company does not expect a material impact upon the application of this guidance. The Company is currently evaluating the impact of this guidance on leases and the measurement of credit losses on financial instruments and its impact on its consolidated financial statements. In January 2017, the FASB issued guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions, or disposals, of assets or businesses. The guidance provides a screen to determine when an integrated set of assets and activities (a "set") is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired, or disposed of, is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, the guidance requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output; and remove the evaluation of whether a market participant could replace missing elements. The guidance also narrows the definition of an output to: the result of inputs and processes applied to those inputs that provide goods or services to customers, investment income (such as dividends or interest), or other revenues. The guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within that reporting period. Early adoption is permitted only for |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 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 December 31, 2016 : Apidos CDO I, Apidos CDO III, Apidos Cinco CDO, Whitney CLO I, 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, syndicated corporate 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). At December 31, 2015 , the Company was the primary beneficiary of 13 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 (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, syndicated corporate 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. The primary beneficiary determination for each of these VIEs was made at each VIE’s inception and is continually assessed. In December 2016, RCC CRE Notes 2013 was liquidated and, as a result, the remaining assets were returned to the Company in exchange for the Company's preference shares and equity notes in the securitization. On November 14, 2016, the Company substantially liquidated Apidos Cinco CDO, a syndicated corporate loan CLO determined to be a VIE that is managed by CVC Credit Partners, a related party to the Company. As a result of the liquidation, all senior and mezzanine notes of the securitization were repaid, leaving only the Company's equity interest in the securitization outstanding as of December 31, 2016. Because substantially all of the VIE's activities are being conducted on behalf of a single variable interest holder that is a related party of the decision maker, it was determined that the Company is the primary beneficiary of the transaction and, as such, should consolidate Apidos Cinco CDO. The Company consolidated the remaining restricted cash, one structured security and three syndicated corporate loans for a combined fair value of $2.3 million . The Company received $20.4 million as a result of the liquidation through December 2016. The Company elected the fair value option for the structured security and syndicated bank loans upon acquisition, as given the short hold period, the Company believes fair value is the most useful indication of value for these asset. 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 13 . 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 year ended December 31, 2016 , the Company 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 at December 31, 2016 (in thousands): Apidos I Apidos Apidos Cinco Whitney CLO I RCC 2014-CRE2 RCC 2015-CRE3 RCC 2015-CRE4 Total ASSETS Restricted cash (1) $ 255 $ 125 $ 934 $ 195 $ — $ — $ 1,799 $ 3,308 Investment securities available-for-sale, — — 369 — — — — 369 Loans, pledged as collateral — — — — 249,957 259,144 238,625 747,726 Loans held for sale — — 1,007 — — — — 1,007 Interest receivable — — — — 1,034 1,145 974 3,153 Principal paydown receivable — — — — — — 5,820 5,820 Other assets 9 2 — — — — 47 58 Total assets (2) $ 264 $ 127 $ 2,310 $ 195 $ 250,991 $ 260,289 $ 247,265 $ 761,441 LIABILITIES Borrowings $ — $ — $ — $ — $ 130,066 $ 193,755 $ 156,282 $ 480,103 Accrued interest expense — — — — 120 231 168 519 Accounts payable and other liabilities — — — — 21 53 59 133 Total liabilities $ — $ — $ — $ — $ 130,207 $ 194,039 $ 156,509 $ 480,755 (1) Includes $1.8 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 at December 31, 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 and RREF CDO 2007-1 RREF CDO 2006-1 and RREF CDO 2007-1 were formed on behalf of the Company to invest in real estate-related securities, CMBS, property available-for-sale, syndicated corporate 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. 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 result of its evaluation, these investments were deconsolidated. At deconsolidation, the Company recorded its investments in RREF CDO 2006-1 and RREF CDO 2007-1 at fair value and accounts 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 $65.7 million at fair value after paying off the CDO debt owed to third parties of $7.5 million . The Company recognized a gain of approximately $846,000 as a result of this transaction, which was recorded in net realized and unrealized gain (loss) on derivatives and sales of investment securities available-for-sale and loans on the consolidated statements of operations. On November 25, 2016, the Company called and liquidated its investment in RREF CDO 2007-1 and, in exchange for the Company's interest in RREF CDO 2007-1, the Company was distributed the remaining assets of $130.9 million at fair value after paying off the CDO debt owed to third parties of $33.7 million . T he Company recognized a gain of approximately $2.1 million as a result of this transaction, which was recorded in net realized and unrealized gain (loss) on derivatives and sales of investment securities available-for-sale and loans on the consolidated statements of operations. 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 equity method investment in an unconsolidated entity in its consolidated financial statements. At December 31, 2016 , the Company holds a 21.6% 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 and 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 equity method investment in an unconsolidated entity in its consolidated financial statements. At December 31, 2016 , the Company holds an 80.2% interest in Pelium Capital. Pearlmark Mezzanine Realty Partners IV, L.P. On June 24, 2015, the Company committed up to $50.0 million in Pearlmark Mezzanine Realty Partners IV, L.P. ("Pearlmark Mezz"), a Delaware limited partnership created to acquire and manage financial interests in commercial real estate property. 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 determined it possessed a variable interest in Pearlmark Mezz, however, it would not be the primary beneficiary of Pearlmark Mezz, as its investment in the limited liability company does not provide the Company with a controlling financial interest. The Company accounts for its investment in Pearlmark as an equity method investment in an unconsolidated entity in its consolidated financial statements. The Company will pay Pearlmark Mezz management fees of 1% on the unfunded committed capital and 1.5% on the invested capital. The Company was entitled to a management fee rebate of 25% for the first year of the fund, which ended June 24, 2016. At December 31, 2016 , the Company has an investment balance of $17.0 million and a 47.7% ownership interest in the fund. 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 is 29.0% at December 31, 2016 . The Company accounts for its investment in LCC as an equity method investment in an unconsolidated entity in its consolidated financial statements. The Company’s investment in LCC was recorded at $43.0 million and $42.0 million at December 31, 2016 and 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 19 ). 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 syndicated corporate 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 $213,000 and $5.3 million at December 31, 2016 and 2015 , respectively. The Company recognized fee income of $2.8 million , $3.9 million and $5.1 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. With respect to four of these CLOs, the Company determined that it does not hold a controlling financial interest and, therefore, is not the primary beneficiary. One of the CLOs was liquidated in February 2013. 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 on the related intangible asset, at December 31, 2015 . In September 2016, the third RCAM-managed CLO was called and $1.5 million of impairment, on a pre-tax basis, was recorded in impairment losses on the Company's consolidated statements of operations on the related intangible asset, during the year ended December 31, 2016. In September 2016, the Company recorded impairment on the one remaining CLO management contract of $2.2 million , on a pre-tax basis, which was recorded in impairment losses on the Company's consolidated statements of operations on the related intangible asset, on which the Company anticipates redemption in early 2017. 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. 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 corporate 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. On November 22, 2016, the Company sold its beneficial interest in ZAIS CLO 4 for $9.4 million and recognized a gain of $418,000 as a result of this transaction, which was recorded in net realized and unrealized gain (loss) on derivatives and sales of investment securities available-for-sale and loans on the Company's consolidated statements of operations. 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 corporate 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. At December 31, 2016 , the Company had investments of $3.9 million in Harvest CLO VII Limited and $5.0 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 corporate 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. At December 31, 2016 , the Company's investment in Harvest CLO XV is $11.3 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 at December 31, 2016 (in thousands): Unconsolidated Variable Interest Entities LCC Unsecured RCAM Managed CDOs Investment in Harvest CLOs RCM Global LLC Pelium Capital Pearlmark Mezz Total Maximum Investment in unconsolidated entities $ 42,960 $ 1,548 $ — $ — $ 465 $ 25,993 $ 16,953 $ 87,919 $ 87,919 Investment securities, available-for-sale — — — 20,115 — — — 20,115 $ 20,115 Intangible assets — — 213 — — — — 213 $ 213 Total assets 42,960 1,548 213 20,115 465 25,993 16,953 108,247 Borrowings — 51,548 — — — — — 51,548 N/A Total liabilities — 51,548 — — — — — 51,548 N/A Net asset (liability) $ 42,960 $ (50,000 ) $ 213 $ 20,115 $ 465 $ 25,993 $ 16,953 $ 56,699 N/A At December 31, 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. The Company's maximum exposure to loss is its direct investment in the unconsolidated VIE. The following represents combined financial information for all equity method investees. This aggregated summarized financial data does not represent the Company's proportionate share of equity method investees' assets, liabilities or earnings. At December 31, 2016 and 2015 , combined total assets were $891.4 million and $1.2 billion , respectively. During those same periods, combined total liabilities were $718.2 million and $749.6 million , respectively. For the one year periods ended December 31, 2016 , 2015 , and 2014 , combined net income (loss) was $12.5 million , $(14.1) million and $13.7 million , respectively. Combined net income (loss) attributable to the investees for that same period was $7.0 million , $(14.1) million and $13.7 million , respectively. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | NOTE 4 - SUPPLEMENTAL CASH FLOW INFORMATION Supplemental disclosure of cash flow information (in thousands): Years Ended December 31, 2016 2015 2014 Non-cash continuing operating activities include the following: Reclassification of linked transactions, net at fair value to investment securities available-for-sale, pledged as collateral, at fair value and borrowings (1) $ — $ 15,367 $ — Non-cash discontinued operating activities include the following: Interest expense paid by third party (2) $ (107 ) $ — $ — Operating liabilities assumed by third party (2) $ (192 ) $ — $ — Non-cash continuing 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) $ — $ 48,764 $ — Retained beneficial interest in unconsolidated securitization entities $ (22,476 ) $ — $ — Restricted cash acquired through securitizations called or liquidated $ (934 ) $ — $ — Loans acquired through securitizations called or liquidated $ (157,070 ) $ — $ — Securities acquired through securitizations called or liquidated $ (40,892 ) $ — $ — Assumption of direct financing leases and other assets (3) $ — $ — $ 2,385 Non-cash continuing financing activities include the following: Distributions on common stock accrued but not paid $ 1,550 $ 13,274 $ 26,563 Distributions on preferred stock accrued but not paid $ 4,010 $ 4,077 $ 6,044 Contribution of security deposits and other liabilities (3) $ — $ — $ 457 Reclassification of linked transactions, net at fair value to borrowings (1) $ — $ 33,397 $ — Non-cash discontinued financing activities include the following: Senior secured revolving credit facility assumed by third party (2) $ (122,000 ) $ — $ — Senior secured revolving credit facility paid down by third party (2) $ (22,000 ) $ — $ — (1) As a result of an accounting standards update adopted on January 1, 2015 ( see Note 2 ), the Company unlinked its previously linked transactions, resulting in non-cash increases in both its investment securities available-for-sale, pledged as collateral, at fair value and related repurchase agreements borrowings balances. (2) On August 4, 2016, the Company completed the sale of Northport TRS, LLC. The Purchaser assumed $122.0 million and paid down $22.0 million of principal and $107,000 of interest expense on the Company’s behalf of the senior secured revolving credit agreement. The Purchaser assumed $192,000 of accounts payable and accrued legal fees recorded to complete the sale. (3) On December 31, 2014, the Company assumed direct financing leases and related assets and liabilities in satisfaction of a loan receivable from a related party. |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2016 | |
Cash and Cash Equivalents [Abstract] | |
RESTRICTED CASH | NOTE 5 - RESTRICTED CASH The following table summarizes the Company's restricted cash as of the periods presented (in thousands): December 31, 2016 2015 Restricted cash: Cash held by consolidated securitizations $ 3,308 $ 39,062 Restricted cash pledged with minimum reserve balance requirements 216 218 Cash collateralizing outstanding margin calls on cash flow hedges — 500 Cash collateralizing margin posted to clearing house interest rate agreements 20 855 $ 3,544 $ 40,635 |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2016 | |
LOANS HELD FOR INVESTMENT [Abstract] | |
LOANS | NOTE 6 - LOANS The following is a summary of the Company’s loans (in thousands): Loan Description Principal Unamortized (Discount) (1) Carrying (2)(3) At December 31, 2016: CRE whole loans $ 1,295,926 $ (5,819 ) $ 1,290,107 Allowance for loan loss (3,829 ) — (3,829 ) Total CRE loans held for investment, net of allowance 1,292,097 (5,819 ) 1,286,278 Syndicated corporate loans 1,007 — 1,007 Total loans held for sale 1,007 — 1,007 Total loans, net (4) $ 1,293,104 $ (5,819 ) $ 1,287,285 At December 31, 2015: CRE 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 CRE loans 1,702,046 (9,939 ) 1,692,107 Syndicated corporate loans 134,890 (373 ) 134,517 Subtotal loans before allowance 1,836,936 (10,312 ) 1,826,624 Allowance for loan loss (43,121 ) — (43,121 ) Total loans held for investment, net of allowance 1,793,815 (10,312 ) 1,783,503 Syndicated corporate loans 1,475 — 1,475 Total loans held for sale 1,475 — 1,475 Total loans, net $ 1,795,290 $ (10,312 ) $ 1,784,978 (1) Amounts include unamortized loan origination fees of $5.8 million and $9.9 million at December 31, 2016 and 2015 , respectively. Amounts also include deferred amendment fees of $4,000 being amortized over the life of the loans at December 31, 2016 and deferred amendment fees of $42,000 and deferred upfront fees of $12,000 being amortized over the life of the loans at December 31, 2015 . (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 syndicated corporate 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 December 31, 2016 and 2015 , respectively. (4) As part of the Company's strategic plan to dispose of certain underperforming legacy CRE debt investments, legacy CRE loans were moved to loans held for sale status and included in Assets held for sale on the Company's balance sheet at December 31, 2016 ( see Note 27 ). Commercial Real Estate Loans The following is a summary of the Company’s commercial real estate loans held for investment (in thousands): Description Quantity Amortized Cost Contracted Interest Rates Maturity Dates (3) At December 31, 2016: Whole loans, floating rate (1) 67 $ 1,290,107 LIBOR plus 3.75% to April 2017 to January 2020 Total (2) 67 $ 1,290,107 At December 31, 2015: Whole loans, floating rate (1) (4) (5) (6) (7) (9) 87 $ 1,630,801 LIBOR plus 1.75% to February 2016 to February 2019 B notes, fixed rate (10) 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 $55.5 million and $112.6 million in unfunded loan commitments at December 31, 2016 and 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 allowances for loan losses of $3.8 million and $41.8 million at December 31, 2016 and 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 $51.2 million senior component that entered into modifications in 2015 that resulted in a fixed rate of 0.50% at December 31, 2015 . The two loans were previously identified as troubled debt restructurings ("TDR's"). (5) Includes two whole loans with a combined $12.0 million mezzanine component that have fixed rates of 12.0% , and two whole loans with a combined $4.2 million mezzanine component that have fixed rates of 15.0% at December 31, 2015 . (6) Includes a $799,000 junior mezzanine tranche of a whole loan that has a fixed rate of 10.0% at December 31, 2015 . (7) Contracted interest rates do not include a whole loan of $32.5 million at December 31, 2015 that entered into a modification in 2015 which reduced the floating rate spread to 1.0% at December 31, 2015 . The loan was previously identified as a TDR. (8) Contracted interest rates and maturity dates do not include the interest rate or maturity date associated with one loan with an amortized cost of $38.1 million that was fully reserved as of June 30, 2015. (9) Whole loans, floating rate includes a loan with an amortized cost of $13.0 million which extended to February 2017 from February 2016. (10) B notes, fixed rate includes a loan with an amortized cost of $15.9 million which paid off in January 2016. The following is a summary of the maturities of the Company’s commercial real estate loans, held for investment, at amortized cost (in thousands): Description 2017 2018 2019 and Thereafter Total At December 31, 2016: Whole loans $ 7,000 $ 24,476 $ 1,258,631 $ 1,290,107 Total (1) $ 7,000 $ 24,476 $ 1,258,631 $ 1,290,107 At December 31, 2015: 2016 2017 2018 and Thereafter Total Whole loans $ 9,958 $ 140,712 $ 1,480,131 $ 1,630,801 B notes 15,934 — — 15,934 Mezzanine loans 13,011 — 32,361 45,372 Total (1) $ 38,903 $ 140,712 $ 1,512,492 $ 1,692,107 (1) Contractual maturities of commercial real estate loans assumes full exercise of extension options available to borrowers, to the extent they qualify. At December 31, 2016 , approximately 30.7% , 19.2% and 7.3% 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. Syndicated Corporate Loans On January 1, 2016 Apidos Cinco CDO was deconsolidated (see Note 2). On November 16 , 2016, the Company liquidated Apidos Cinco CDO and substantially all of the assets were sold. As a result, all senior and mezzanine notes of the securitization were repaid, leaving only the Company's equity in Apidos Cinco CDO at December 31, 2016 . Therefore, the Company consolidated Apidos Cinco CDO and recorded the remaining three loans as of the date of the liquidation at a fair value of $1.0 million . At December 31, 2016 , the Company's syndicated corporate loans were classified as second lien loans held for sale at fair value, $221,000 of such loans had a weighted average maturity of less than one year and $786,000 of such loans had a weighted average maturity of greater than one year and less than five years. At December 31, 2016 the syndicated corporate loan held for sale portfolio was concentrated in the collective industry grouping of healthcare, education and childcare, retail stores and aerospace and defense. The following table provides information as to the lien position and status of the Company's syndicated corporate loans, at amortized cost (in thousands) prior to deconsolidation of Apidos Cinco CDO as of January 1, 2016 ( see Note 2 ): Apidos I Apidos Cinco Total At 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 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 December 31, 2015 , the Company’s syndicated corporate loan portfolio, including loans held for sale, consisted of $134.7 million (net of allowance of $1.3 million ) of floating rate loans, which bore interest ranging between the three month London Interbank Offered Rate ("LIBOR") plus 1.25% , and the three month LIBOR plus 8.0% with maturity dates ranging from January 2016 to August 2021 . The following is a summary of the weighted average maturity of the Company’s syndicated corporate 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 Total $ 135,992 At December 31, 2015 , approximately 13.5% , 13.0% and 9.6% of the Company’s syndicated corporate loan portfolio was concentrated in the collective industry grouping of automobile, diversified/conglomerate service and retail stores, respectively. 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 by asset class (in thousands, except percentages): Description Allowance for Loan Loss Percentage of Total Allowance At December 31, 2016: CRE Whole loans $ 3,829 100.00% Total (1) $ 3,829 At December 31, 2015: CRE Whole loans $ 3,745 8.68% CRE B notes 15 0.04% CRE Mezzanine loans 38,079 88.31% Syndicated corporate loans 1,282 2.97% Total $ 43,121 ( 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 syndicated corporate loans and the related allowance for loan losses of $41.7 million (see Note 2). 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 December 31, 2016 , the Company had $19.3 million of principal paydown receivables, which the Company received in cash during January 2017. 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. |
FINANCING RECEIVABLES
FINANCING RECEIVABLES | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
FINANCING RECEIVABLES | NOTE 7 - 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 Syndicated Corporate Loans Direct Financing Leases Total At December 31, 2016: Allowance for Loan and Lease Losses: Allowance for losses at January 1, 2016 $ 41,839 $ 1,282 $ 465 $ 43,586 Provision (recovery) for loan and lease losses 18,167 (402 ) — 17,765 Loans charged-off — 402 — 402 Transfer to Loans Held For Sale (15,763 ) — — (15,763 ) Deconsolidation of VIEs (40,414 ) (1,282 ) — (41,696 ) Allowance for losses at December 31, 2016 $ 3,829 $ — $ 465 $ 4,294 Ending balance: Individually evaluated for impairment $ 2,500 $ — $ 465 $ 2,965 Collectively evaluated for impairment $ 1,329 $ — $ — $ 1,329 Loans acquired with deteriorated credit quality $ — $ — $ — $ — Loans and Leases: Ending balance: Individually evaluated for impairment $ 7,000 $ — $ 992 $ 7,992 Collectively evaluated for impairment $ 1,283,107 $ — $ — $ 1,283,107 Loans acquired with deteriorated credit quality $ — $ — $ — $ — At December 31, 2015: Allowance for Loan and Lease Losses: Allowance for losses at January 1, 2015 $ 4,043 $ 570 $ — $ 4,613 Provision (recovery)for loan and lease losses 37,735 2,887 465 41,087 Loans charged-off — (2,175 ) — (2,175 ) Recoveries 61 — — 61 Allowance for losses at December 31, 2015 $ 41,839 $ 1,282 $ 465 $ 43,586 Ending balance: Individually evaluated for impairment $ 40,274 $ 1,282 $ 465 $ 42,021 Collectively evaluated for impairment $ 1,565 $ — $ — $ 1,565 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 $ — $ 1,655,373 Loans acquired with deteriorated credit quality $ — $ — $ — $ — Credit quality indicators Commercial Real Estate Loans Loans are graded at inception and updates to assigned grades are made continually as new information is received. As a result, 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 at amortized cost were as follows (in thousands): Rating 1 (2) Rating 2 Rating 3 Rating 4 Held for Sale Total At December 31, 2016: CRE whole loans (1) $ 1,186,292 $ 96,815 $ — $ 7,000 $ — $ 1,290,107 Legacy CRE whole loans (1) — — — — 158,178 158,178 Mezzanine loans (1) — — — — — — $ 1,186,292 $ 96,815 $ — $ 7,000 $ 158,178 $ 1,448,285 At 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) As part of the Company's strategic plan as described in Note 1 , certain legacy CRE loans were moved to loans held for sale and included in assets held for sale, carried at LCOM on the Company's balance sheet at December 31, 2016 ( see Note 27 ). (2) Includes four loans which were impaired at December 31, 2015 . At December 31, 2016 , these loans moved to held for sale. At December 31, 2016 , the Company had one CRE loan with a credit quality rating of 4 due to short term vacancy/tenant concerns and a near term maturity. The loan was collateralized by a retail shopping center in Roswell, GA and had an amortized cost of $7.0 million . The Company obtained an appraisal and used the value indicated in the appraisal as a practical expedient in determining the fair value of the loan. The appraisal indicated a fair value of $4.5 million . As such, the Company recorded a specific provision of $2.5 million on the loan. At December 31, 2016, the Company had eight legacy CRE whole loans and one mezzanine loan classified as assets held for sale with a total carrying value of $158.2 million . Appraisals, as a practical expedient for fair value, were obtained for all eight legacy CRE whole loans classified as assets held for sale. The mezzanine loan, classified as an asset held for sale, had a fair value of $0 . The Company recorded, and subsequently charged off upon transfer of the loans to assets held for sale, specific reserves on four of the five loans transferred to assets held for sale totaling $15.8 million , where the carrying values of the loans exceed their fair values. These five loans had a collective carrying value of $110.7 million at December 31, 2016 and were comprised of the following: • Two loans cross-collateralized by a hotel in Studio City, CA with an initial par value of $67.5 million . These loans were written down to their collective appraised value of $61.4 million ; • One loan collateralized by a hotel in Tucson, AZ with an initial par value of $32.5 million . This loan was written down to its appraised value of $14.3 million . On February 28, 2017, the Company sold this loan for $21.3 million ; • One loan collateralized by an office property in Phoenix, AZ with an initial par value of $17.7 million . This loan was written down to its appraised value of $11.0 million ; • One loan collateralized by a hotel in Palm Springs, CA with an initial par value of $29.5 million . This loan was written down to its appraised value of $24.0 million . All five loans were risk-rated category 4 prior to being transferred to assets held for sale. At December 31, 2016 , 54% , 39% and 7% of the Company's legacy CRE whole loans were concentrated in hotel, retail and office. Of these loans, 84% are within California and 16% are within Arizona. Three loans with a collective carrying value of $47.5 million at December 31, 2016 that are held for sale, had fair values in excess of their carrying values. Before being transferred to assets held for sale, these loans were risked-rated in category 1 or category 2. At December 31, 2015 , the Company had one CRE whole loan with a credit quality rating of 4 due to operating performance. The loan was collateralized by a multifamily property located in Las Vegas, NV and had an amortized cost of $2.2 million that was fully reserved at December 31, 2015 . At December 31, 2015 , the Company had one mezzanine loan with a credit quality rating of 4. The loan was originally supported by a portfolio of 13 hotel properties, most of which were luxury brand hotels. An impairment analysis showed that the fair value of the underlying collateral declined during the six months ended June 30, 2015 notably due to a modification of the senior mortgage that accelerated the time horizon for disposing of the remaining properties collateralizing the loan. In addition, the two remaining properties were in or near San Juan, Puerto Rico, and economic and credit disruptions in Puerto Rico at the time resulted in events that caused the Company to determine that the realizable values had declined rapidly and that the troubled debt restructuring should be fully reserved as of June 30, 2015 and the loan remained fully reserved at December 31, 2015. The outstanding loan balance of $38.1 million was fully reserved and associated accrued interest of $3.0 million was reversed against interest income, for a total charge to operations in 2015 of $41.1 million . The loan was held in the Company's two legacy CRE CDO's and upon adoption of updated accounting guidance on January 1, 2016, the loan was deconsolidated along with RREF CDO 2006-1 and RREF CDO 2007-1. The loan was also included in the collateral that returned to the Company in the liquidation of RREF CDO 2006-1 on April 25, 2016 and RREF CDO 2007-1 on November 25, 2016 ( see Note 9 ) and the fair value of the loan was $0 at the time of acquisition and subsequently classified as an asset held for sale. All of the Company's CRE whole loans are current with respect to contractual principal and interest except one of the Company's legacy CRE whole loans at December 31, 2016 . The one defaulted loan is supported by a property in Studio City, California. The loan has a carrying value, which is the lower of its cost or fair market value, of $61.4 million at December 31, 2016 . All of the Company's commercial real estate loans were current at December 31, 2015 , with exception of one mezzanine loan that defaulted during the year. Syndicated Corporate 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. Syndicated corporate 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 syndicated corporate loans at amortized cost were as follows (in thousands): Rating 1 Rating 2 Rating 3 Rating 4 Rating 5 Held for Sale Total At December 31, 2016: Syndicated corporate loans $ — $ — $ — $ — $ — $ 1,007 $ 1,007 At December 31, 2015: Syndicated corporate loans $ 113,897 $ 17,578 $ 1,498 $ — $ 1,544 $ 1,475 $ 135,992 At December 31, 2016 , two of the Company's syndicated corporate loans with a fair value of $221,000 were defaulted with respect to debt service. In 2016, no interest income has been recorded on these two defaulted loans. At December 31, 2015 , all of the Company’s syndicated corporate loans were current with respect to debt service with the exception of one loan with an amortized cost of $1.5 million , on which there was a reserve. Residential Mortgage Loans At December 31, 2016 , the Company's residential mortgage loans were reclassified to discontinued operations and as a result, the loans held for sale are included in the assets held for sale on the balance sheet (See Note 27). Middle Market Loans At December 31, 2016 , the Company's middle market loan portfolio was reclassified to discontinued operations and as a result, the loans held for sale are included in the assets held for sale on the balance sheet (See Note 27). Direct Financing Leases During the years ended December 31, 2016 and December 31, 2015 , the Company recorded a provision against the value of the direct financing leases in the amount of $0 and $465,000 , respectively. At December 31, 2016 , the Company held $527,000 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 > 90 Days and Accruing At December 31, 2016: CRE whole loans $ — $ — $ — $ — $ 1,290,107 $ 1,290,107 $ — Legacy CRE loans 61,400 — — 61,400 96,792 158,192 B notes — — — — — — — Mezzanine loans — — — — — — — Syndicated corporate loans — — — — — — — Direct financing leases 137 — 128 265 727 992 — Total loans $ 61,537 $ — $ 128 $ 61,665 $ 1,387,626 $ 1,449,291 $ — At December 31, 2015: CRE whole loans (1) $ — $ — $ — $ — $ 1,630,801 $ 1,630,801 $ — B notes — — — — 15,934 15,934 — Mezzanine loans — 38,072 — 38,072 7,300 45,372 — Syndicated corporate loans 1,544 — — 1,544 132,973 134,517 — Direct financing leases 12 214 — 226 1,170 1,396 — Total loans $ 1,556 $ 38,286 $ — $ 39,842 $ 1,788,178 $ 1,828,020 $ — (1) Current loans include one impaired whole loan with an amortized cost of $2.2 million that was fully reserved at December 31, 2015 . 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 At December 31, 2016: Loans without a specific valuation allowance: CRE whole loans $ — $ — $ — $ — $ — Mezzanine loans $ — $ — $ — $ — $ — Syndicated corporate loans $ — $ — $ — $ — $ — Loans with a specific valuation allowance: CRE whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ 480 Mezzanine loans $ — $ — $ — $ — $ — Syndicated corporate loans $ — $ — $ — $ — $ — Total: CRE whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ 480 Mezzanine loans — — — — — Syndicated corporate loans — — — — — $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ 480 At December 31, 2015: Loans without a specific valuation allowance: CRE whole loans $ 129,433 $ 129,433 $ — $ 128,591 $ 3,939 B notes $ — $ — $ — $ — $ — Mezzanine loans $ — $ — $ — $ — $ — Syndicated corporate 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 ) Syndicated corporate loans $ 1,544 $ 1,551 $ (1,282 ) $ 1,544 $ — 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 ) Syndicated corporate loans 1,544 1,551 (1,282 ) 1,544 — $ 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 of senior participations in four loans that were previously classified as impaired loans in the Company's consolidated financial statements at December 31, 2015 (see Note 2). Impaired loans do not include four CRE legacy loans held for sale, which were previously disclosed with an amortized cost of $38.1 million . These loans are classified as assets held for sale at December 31, 2016. Troubled- Debt Restructurings The following tables show TDRs in the Company's loan portfolio (in thousands): Number of Loans Pre-Modification Outstanding Recorded Balance Post-Modification Outstanding Recorded Balance Year Ended December 31, 2016: CRE whole loans — $ — $ — Legacy CRE whole loans held for sale (1) (2) 3 29,459 21,400 Mezzanine loans — — — Syndicated corporate loans — — — Total loans 3 $ 29,459 $ 21,400 Year Ended December 31, 2015: CRE whole loans 3 $ 99,959 $ 99,959 B notes — — — Mezzanine loans 1 38,072 — Syndicated corporate loans — — — Total loans 4 $ 138,031 $ 99,959 (1) Legacy CRE whole loans held for sale represent CRE whole loans designated as and transferred to assets held for sale at December 31, 2016 . (2) Legacy CRE whole loans held for sale included in the TDR table refer only to the mezzanine components of three whole loan relationships. The senior components of these loans have not been modified since they were reacquired as a result of the liquidation of RREF 2007-1. At December 31, 2016 , the senior loans have a total par balance of $70.5 million and a carrying value of $54.3 million . At December 31, 2016 , two legacy CRE whole loans held for sale reported as TDRs were in default. At December 31, 2015 , one commercial real estate loan reported as a TDR had subsequently defaulted. |
INVESTMENT SECURITIES, TRADING
INVESTMENT SECURITIES, TRADING | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES, TRADING | NOTE 8 - INVESTMENT SECURITIES, TRADING Structured notes are CLO debt securities collateralized by syndicated corporate 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 At December 31, 2016: Structured notes $ 6,242 $ 920 $ (2,670 ) $ 4,492 Total $ 6,242 $ 920 $ (2,670 ) $ 4,492 At December 31, 2015: Structured notes $ 28,576 $ 1,674 $ (4,700 ) $ 25,550 RMBS (1) 1,896 — (1,896 ) — Total $ 30,472 $ 1,674 $ (6,596 ) $ 25,550 (1) This security was written off during the year ended December 31, 2016 . As a result of updated accounting guidance, effective January 1, 2016 (see Note 2), the Company deconsolidated Pelium Capital, resulting in the removal of $21.9 million of investment securities, trading from its balance sheet. On November 14, 2016, Apidos Cinco CDO was liquidated. As a result of the liquidation, the Company consolidated the remaining cash and assets of the securitization, including one structured note security, classified as trading, at a fair value of $369,000 . The Company sold zero , 19 and nine investment securities during the years ended December 31, 2016 , 2015 and 2014 for a net realized gain of approximately $0 , $1.4 million and $3.0 million , respectively. The Company held six and 56 investment securities, trading at December 31, 2016 and 2015 , respectively. |
INVESTMENT SECURITIES AVAILABLE
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | 12 Months Ended |
Dec. 31, 2016 | |
Available-for-sale Securities [Abstract] | |
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | NOTE 9 - 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 Harvest CLO Securities, ZAIS and other securities backed by syndicated corporate loans, and other loan obligations. These securities are carried at fair value (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value (1) At December 31, 2016: ABS $ 21,365 $ 3,988 $ (73 ) $ 25,280 CMBS 98,525 425 (863 ) 98,087 RMBS 1,526 77 (2 ) 1,601 Total $ 121,416 $ 4,490 $ (938 ) $ 124,968 At 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) At December 31, 2016 and 2015 , $97.5 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, Apidos Cinco CDO, Pelium Capital and RCM Global, resulting in the removal of $364.6 million of loans pledged as collateral and $69.0 million of investment securities available-for-sale, from the Company's balance sheet. 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 $65.7 million at fair value after paying off the CDO debt owed to third parties of $7.5 million . A gain of approximately $846,000 was recognized as a result of this transaction. Of the assets distributed from RREF CDO 2006-1, one position, a CMBS bond with a fair value of $3.8 million at the date of acquisition, was subsequently sold during the quarter ended December 31, 2016 . On November 25, 2016, the Company called and liquidated its investment in RREF CDO 2007-1, and in exchange for the Company's interest in RREF CDO 2007-1, the Company was distributed the remaining assets of $130.9 million at fair value after paying off the CDO debt of approximately $60.3 million , of which $26.6 million was returned to the Company in the form of principal payments on notes held by the company. A gain of $2.1 million was recognized as a result of this transaction during the quarter ended December 31, 2016 . Of the assets distributed from RREF CDO 2007-1, 10 CMBS bonds with a combined fair value of $19.7 million at the date of acquisition, are now recorded as investment securities available-for-sale. On November 14, 2016, Apidos Cinco CDO was called, and substantially all the assets were liquidated. As a result of the transaction, $20.4 million of cash was returned to the Company as well as the remaining assets. The remaining assets are classified as investment securities, trading, and syndicated corporate loans held for sale at December 31, 2016 . The remaining assets are classified as $369,000 investment securities, trading, and $1.0 million syndicated corporate loans held for sale at December 31, 2016 . On November 22, 2016, the Company sold its beneficial interest in ZAIS CLO 4 for $9.4 million and recognized a gain of $418,000 . The proceeds from the sale are a receivable in other assets on the balance sheet at December 31, 2016 and were received in January 2017. 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 Amortized Cost Fair Value Weighted Average Coupon At December 31, 2016: Less than one year (1) $ 80,801 $ 80,325 5.60% Greater than one year and less than five years 17,197 17,408 4.52% Greater than five years and less than ten years 9,622 12,936 10.68% Greater than ten years 13,796 14,299 10.39% Total $ 121,416 $ 124,968 6.39% At December 31, 2015: Less than one year (1) $ 118,215 $ 117,221 7.13% Greater than one year and less than five years 68,808 71,370 5.31% Greater than five years and less than ten years 11,271 12,382 10.45% Greater than ten years 6,862 7,115 16.85% Total $ 205,156 $ 208,088 7.03% (1) The Company expects that the maturity dates of underlying assets of these CMBS and ABS securities will either be extended or that they will be paid in full. At December 31, 2016 , the contractual maturities of the ABS investment securities available-for-sale range from May 2018 to May 2029 . The contractual maturities of the CMBS investment securities available-for-sale range from June 2022 to February 2051 . The contractual maturity date of RMBS investment securities available-for-sale is June 2029 . The following table shows the fair value, gross unrealized losses and number of securities aggregated by investment category and length of time, for those individual investment securities available-for-sale that have been in a continuous unrealized loss position during the periods specified (in thousands, except number of securities): Less than 12 Months More than 12 Months Total Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized Number of At December 31, 2016: ABS $ — $ — — $ 828 $ (73 ) 1 $ 828 $ (73 ) 1 CMBS 30,869 (436 ) 10 26,616 (427 ) 15 57,485 (863 ) 25 RMBS 662 (2 ) 1 — — — 662 (2 ) 1 Total temporarily $ 31,531 $ (438 ) 11 $ 27,444 $ (500 ) 16 $ 58,975 $ (938 ) 27 At 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 $ 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 years ended December 31, 2016 and 2015 , the Company recognized $20.9 million and $372,000 of other-than-temporary impairment losses, respectively, on investment securities available-for-sale. During the year ended December 31, 2014 , the Company recognized no other-than-temporary impairment on its investment securities available-for-sale. Of the amount recognized during the year ended December 31, 2016 , $19.9 million relates to the Company’s previously consolidated legacy CRE CDO, RREF CDO 2007-1. Prior to the liquidation of the securitization on November 25, 2016, the Company’s security interest in the vehicle was supported by 12 CMBS securities and seven CRE loans at September 30, 2016 and the Company classified its investment as an investment security available-for-sale. As part of the Company's ongoing credit evaluation of its investment securities, third-party appraisals were obtained on six of the seven remaining legacy CRE loans, which were part of the asset pool of the vehicle. The remaining loan paid off. The properties supporting the loans were appraised during the third quarter of 2016 and as a result, two of the CRE loans in the vehicle were determined to have cost bases in excess of their estimated fair value, causing a collective impairment charge to the cash flows of the vehicle of $19.9 million . The impairment charge on the security reflects the credit impact to the fair value of the security given the results of the updated appraisals and reduced the Company's cost basis in the security permanently. The impairment charge was calculated by comparing the previous projected cash flows of the security to the revised cash flows including the results of the updated appraisals. Certain assets of RREF CDO 2007-1 were subsequently received by the Company in liquidation of the CDO, at which point they were recorded on the Company's balance sheet at their liquidation date fair value. The Company recorded other-than-temporary impairment of $241,000 on three positions classified as securities available-for-sale, RMBS during the year ended December 31, 2016 after it was determined the Company would not be able to recover the full cost basis of these positions due to declines in the future projected cash flows of the securities. One CMBS position that was acquired at the liquidation of RREF CDO 2006-1, which was classified as a security available-for-sale with a par value of $4.0 million , was identified as a position the Company would be required to sell before it could recover its cost basis in the security. As such, the Company recorded the difference between its amortized cost basis and the estimated fair value. Other-than-temporary impairment of $732,000 was recognized during the year ended December 31, 2016 as a result of the anticipated sale of this security. Subsequent to the impairment, the position was sold and an additional loss of $450,000 was realized for a total recognized loss of $1.2 million . The following table summarizes the Company's sales of investment securities available-for-sale during the period indicated (in thousands, except number of securities): Positions Positions Redeemed Par Amount Sold/Redeemed Realized Gain (Loss) For the Year Ended December 31, 2016: ABS 1 — $ 10,830 $ 418 CMBS 1 — $ 4,000 $ (450 ) For the Year Ended December 31, 2015: ABS 24 3 $ 69,901 $ 9,197 RMBS 6 — $ 28,305 $ 984 CMBS 1 — $ 3,000 $ (58 ) |
INVESTMENTS IN UNCONSOLIDATED S
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES | NOTE 10 - INVESTMENTS IN UNCONSOLIDATED ENTITIES The following table shows the Company's investments in unconsolidated entities at December 31, 2016 and 2015 and equity in earnings of unconsolidated entities for the years ended December 31, 2016 , 2015 and 2014 (in thousands): Equity in Earnings of Unconsolidated Entities Balance at Years Ended December 31, Ownership % at December 31, 2016 December 31, December 31, 2016 2015 2014 Varde Investment Partners, L.P —% $ — $ — $ — $ (90 ) $ (20 ) RRE VIP Borrower, LLC (1) —% — — 58 325 3,473 Investment in LCC Preferred Stock 29.0% 42,960 42,017 943 2,601 (1,555 ) Investment in CVC Global Credit Opportunities Fund (2) —% — — — 8 2,032 RCM Global, LLC (3) 21.6% 465 — 14 — — Pelium Capital Partners, L.P. (3) 80.2% 25,993 — 3,991 — — Investment in Life Care Funding (4) —% — — — — (75 ) Pearlmark Mezz (5) 47.7% 16,953 6,465 968 (460 ) — Investment in School Lane House (6) —% — — (1 ) 4 912 Subtotal 86,371 48,482 5,973 2,388 4,767 Investment in RCT I and II (7) 3.0% 1,548 1,548 (2,560 ) (2,421 ) (2,387 ) Investment in Preferred Equity (8) —% — — — — 410 Total $ 87,919 $ 50,030 $ 3,413 $ (33 ) $ 2,790 (1) The investment in RRE VIP Borrower was sold at December 31, 2014. Earnings for the years ended December 31, 2016 , 2015 , and 2014 are related to insurance premium and property tax 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 investment in the fund. (3) Pursuant to the new consolidation guidance adopted January 1, 2016, these previously consolidated VIEs are now accounted for under the equity method. (4) In January 2013, LTCC invested $2.0 million into LCF for the purpose of originating and acquiring life settlement contracts. In February 2014, the Company invested an additional $1.4 million which resulted in the consolidation of LCF during the first quarter of 2014. (5) 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, June 24, 2015. (6) Investment in School Lane House was sold as of December 31, 2014. Earnings for the years ended December 31, 2016 , 2015 , and 2014 related to the return of a security deposit and payment of an insurance claim. (7) For the years ended December 31, 2016 , 2015 , and 2014 these amounts are recorded in interest expense on the Company's consolidated statements of operations. (8) The investment in Preferred Equity was repaid as of December 31, 2014. For the year ended December 31, 2014 , these amounts are recorded in interest income on loans on the Company's consolidated statements of operations. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | NOTE 11 - BUSINESS COMBINATIONS On February 26, 2014, the Company made an additional capital contribution to LCF which gave the Company majority ownership of 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% which was funded in 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% which was funded in 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 were necessary. As part of the Company's strategic plan to exit underperforming non-core asset classes, the Company met all of the criteria to classify the life settlement portfolio's assets and liabilities as held for sale in the fourth quarter of 2016. 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. As part of the board approved plan to exit underperforming non-core asset classes, the Company met all of the criteria to classify the residential mortgage segment's assets and liabilities as held for sale and present the operating results as discontinued operations for all periods presented. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 12 - INTANGIBLE ASSETS The following table summarizes the activity of intangible assets (in thousands): For the Year Ended December 31, 2016 December 31, 2015 Management Contracts Management Contracts Balance, January 1, 2016 $ 5,316 $ 9,434 Additions — — Sales — — Amortization (1,432 ) (4,118 ) Total before impairment losses 3,884 5,316 Impairment losses (3,671 ) — Balance, December 31, 2016 $ 213 $ 5,316 Management Contracts The Company recognized fee income on management contracts of $2.8 million , $3.9 million , and $5.1 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. For the years ended December 31, 2016 , 2015 , and 2014 , the Company recorded amortization expense of $1.4 million , $4.1 million , and $1.8 million , respectively, related to the Company's management contracts. In October 2016, one of the two remaining CLOs associated with the management contracts was called, and the anticipated call date of the other CLO was determined to be early 2017. In accordance with guidance on intangible assets other than goodwill, the Company tested its two remaining management contracts for impairment. The carrying amounts of the management contracts were deemed to be unrecoverable and in excess of their fair values, calculated using a discounted cash flow analysis. As a result, $3.7 million in impairment losses was recognized on the Company’s consolidated statement of operations and is included in the commercial finance segment for the year ended December 31, 2016 . The Company expects to record the remaining amortization expense on its management contracts of approximately $213,000 for the year ending December 31, 2017 . |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
BORROWINGS | NOTE 13 - 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 Outstanding Unamortized Outstanding Borrowings Weighted Average Weighted Average Value of At December 31, 2016: RCC 2014-CRE2 Senior Notes $ 131,936 $ 1,871 $ 130,065 2.19% 15.3 years $ 250,255 RCC 2015-CRE3 Senior Notes 196,112 2,358 193,754 2.82% 15.2 years 259,889 RCC 2015-CRE4 Senior Notes 158,475 2,193 156,282 2.55% 15.6 years 247,414 Unsecured Junior Subordinated Debentures 51,548 — 51,548 4.89% 19.8 years — 6.0% Convertible Senior Notes 115,000 3,231 111,769 6.00% 1.9 years — 8.0% Convertible Senior Notes 100,000 3,472 96,528 8.00% 3.0 years — CRE - Term Repurchase Facilities (2) 349,318 2,680 346,638 3.04% 1.6 years 520,503 CMBS - Term Repurchase Facility (3) 78,503 16 78,487 2.73% 129 days 115,157 Trust Certificates - Term Repurchase Facility (4) 26,667 282 26,385 6.21% 1.9 years 89,181 Total $ 1,207,559 $ 16,103 $ 1,191,456 3.67% 8.0 years $ 1,482,399 Principal Outstanding Unamortized Outstanding Borrowings Weighted Average Weighted Average Value of At 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 CMBS - Short Term Repurchase Agreements (5) 57,407 — 57,407 2.06% 18 days 79,347 Total $ 1,644,480 $ 22,767 $ 1,621,713 2.86% 11.7 years $ 2,048,555 (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 $468,000 and $315,000 related to CRE repurchase facilities at December 31, 2016 and 2015 , respectively. (3) Amounts also include accrued interest expense of $157,000 and $18,000 related to CMBS repurchase facilities at December 31, 2016 and 2015 , respectively. (4) Amount also includes accrued interest expense of $69,000 and $61,000 related to trust certificate repurchase facilities at December 31, 2016 and 2015 , respectively. (5) Amounts also include accrued interest expense of $0 and $40,000 related to CMBS short term repurchase facilities at December 31, 2016 and 2015 , respectively. The Company obtained three waivers for violation of the EBITDA to fixed charge coverage ratio financial covenants for its two CRE repurchase facilities and its Wells Fargo Bank, NA ("Wells Fargo") CMBS repurchase facility at December 31, 2016 . In addition, the Company received a waiver for violation on its Wells Fargo CMBS Term Facility and Wells Fargo CRE Term Facility on the required capital amount covenant at December 31, 2016 . The Company is in compliance with all other covenants in the respective agreements at December 31, 2016 . Securitizations 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. Resource Real Estate Funding CDO 2006-1 In August 2006, the Company closed RREF CDO 2006-1, a $345.0 million CDO transaction that provided financing for commercial real estate loans. RREF CDO 2006-1 issued a total of $308.7 million of senior notes at par to investors of which RCC Real Estate purchased 100% of the Class J senior notes (rated BB: Fitch) and Class K senior notes (rated B:Fitch) for $43.1 million . In addition, Resource Real Estate Funding 2006-1 CDO Investor, LLC, a subsidiary of RCC Real Estate, purchased a $36.3 million equity interest representing 100% of the outstanding preference shares. The senior notes purchased by RCC Real Estate are subordinated in right of payment to all other senior notes issued by RREF CDO 2006-1 but are senior in right of payment to the preference shares. The equity interest is subordinated in right of payment to all other securities issued by RREF CDO 2006-1. At closing, the senior notes issued to investors by RREF CDO 2006-1 consisted of the following classes: (i) $129.4 million of Class A-1 notes bearing interest at one-month LIBOR plus 0.32% ; (ii) $17.4 million of Class A-2 notes bearing interest at one-month LIBOR plus 0.35% ; (iii) $5.0 million of Class A-2 notes bearing interest at a fixed rate of 5.842% ; (iv) $6.9 million of Class B notes bearing interest at one-month LIBOR plus 0.40% ; (v) $20.7 million of Class C notes bearing interest at one-month LIBOR plus 0.62% ; (vi) $15.5 million of Class D notes bearing interest at one-month LIBOR plus 0.80% ; (vii) $20.7 million of Class E notes bearing interest at one-month LIBOR plus 1.30% ; (viii) $19.8 million of Class F notes bearing interest at one-month LIBOR plus 1.60% ; (ix) $17.3 million of Class G notes bearing interest at one-month LIBOR plus 1.90% ; (x) $12.9 million of Class H notes bearing interest at one-month LIBOR plus 3.75% ; (xi) $14.7 million of Class J notes bearing interest at a fixed rate of 6.00% ; and (xii) $28.4 million of Class K notes bearing interest at a fixed rate of 6.00% . During the year ended December 31, 2016 , the Company called and liquidated RREF CDO 2006-1 by transferring the remaining assets to RCC Real Estate and paying off, in full, the remaining CDO debt owed to third parties of $7.5 million . During the year ended December 31, 2015 , the Company did not repurchase any notes. During the year ended December 31, 2015 , the Company reissued $6.3 million of Class F notes at a weighted average price of 96.02% to par which resulted in a $249,000 loss on the reissuance of debt in the consolidated statements of operations. During the year ended December 31, 2014 , the Company reissued $6.7 million of Class A-1 notes at a price of 98.94% to par, and $12.0 million of Class A-2 notes at a price of 95.56% to par, which resulted in a $604,000 loss on the reissuance of debt in the consolidated statements of operations. Resource Real Estate Funding CDO 2007-1 In June 2007, the Company closed RREF CDO 2007-1, a $500.0 million CDO transaction that provided financing for commercial real estate loans and commercial mortgage-backed securities. RREF CDO 2007-1 issued a total of $265.6 million of senior notes at par to unrelated investors. RCC Real Estate purchased 100% of the Class H senior notes (rated BBB+:Fitch), Class K senior notes (rated BBB-:Fitch), Class L senior notes (rated BB:Fitch) and Class M senior notes (rated B: Fitch) for $68.0 million . In addition, Resource Real Estate Funding 2007-1 CDO Investor, LLC, a subsidiary of RCC Real Estate, purchased a $41.3 million equity interest representing 100% of the outstanding preference shares. The senior notes purchased by RCC Real Estate are subordinated in right of payment to all other senior notes issued by RREF CDO 2007-1 but are senior in right of payment to the preference shares. The equity interest is subordinated in right of payment to all other securities issued by RREF CDO 2007-1. At closing, the senior notes issued to investors by RREF CDO 2007-1 consisted of the following classes: (i) $180.0 million of Class A-1 notes bearing interest at one-month LIBOR plus 0.28% ; (ii) $50.0 million of unissued Class A-1R notes, which allowed the CDO to fund future funding obligations under the existing whole loan participations that had future funding commitments; the undrawn balance of the Class A-1R notes accrued a commitment fee at a rate per annum equal to 0.18% , the drawn balance bore interest at one-month LIBOR plus 0.32% ; (iii) $57.5 million of Class A-2 notes bearing interest at one-month LIBOR plus 0.46% ; (iv) $22.5 million of Class B notes bearing interest at one-month LIBOR plus 0.80% ; (v) $7.0 million of Class C notes bearing interest at a fixed rate of 6.423% ; (vi) $26.8 million of Class D notes bearing interest at one-month LIBOR plus 0.95% ; (vii) $11.9 million of Class E notes bearing interest at one-month LIBOR plus 1.15% ; (viii) $11.9 million of Class F notes bearing interest at one-month LIBOR plus 1.30% ; (ix) $11.3 million of Class G notes bearing interest at one-month LIBOR plus 1.55% ; (x) $11.3 million of Class H notes bearing interest at one-month LIBOR plus 2.30% ; (xi) $11.3 million of Class J notes bearing interest at one-month LIBOR plus 2.95% ; (xii) $10.0 million of Class K notes bearing interest at one-month LIBOR plus 3.25% ; (xiii) $18.8 million of Class L notes bearing interest at a fixed rate of 7.50% ; and (xiv) $28.8 million of Class M notes bearing interest at a fixed rate of 8.50% . During the year ended December 31, 2016 , the Company called and liquidated RREF CDO 2007-1 by transferring the remaining assets to RCC Real Estate and paying off, in full, the remaining CDO debt owed to third parties of $33.7 million . During the year ended December 31, 2015 , the Company did not repurchase any notes. During the year ended December 31, 2015 , the Company reissued $11.8 million of Class D notes at a weighted average price of 90.18% to par, which resulted in a $1.2 million loss on the reissuance of debt in the consolidated statements of operations. During the year ended December 31, 2014 , the Company reissued $25.0 million of Class A-1 notes at a price of 92.53% to par, and $15.0 million of Class D notes at a weighted average price of 86.85% to par, which resulted in a $3.8 million loss on the reissuance of debt in the consolidated statements of operations. Apidos Cinco CDO In May 2007, the Company closed Apidos Cinco CDO, a $350.0 million CDO transaction that provided financing for syndicated corporate loans. Apidos Cinco CDO issued a total of $322.0 million of senior notes at par to investors and RCC Commercial II purchased a $28.0 million equity interest representing 100% of the outstanding preference shares. The equity interest is subordinated in right of payment to all other securities issued by Apidos Cinco CDO. The senior notes issued to investors by Apidos Cinco CDO consist of the following classes: (i) $37.5 million of Class A-1 notes bearing interest at LIBOR plus 0.24% ; (ii) $200.0 million of Class A-2a notes bearing interest at LIBOR plus 0.23% ; (iii) $22.5 million of Class A-2b notes bearing interest at LIBOR plus 0.32% ; (iv) $19.0 million of Class A-3 notes bearing interest at LIBOR plus 0.42% ; (v) $18.0 million of Class B notes bearing interest at LIBOR plus 0.80% ; (vi) $14.0 million of Class C notes bearing interest at LIBOR plus 2.25% ; and (vii) $11.0 million of Class D notes bearing interest at LIBOR plus 4.25% . During the year ended December 31, 2016 , the Company called Apidos Cinco CDO by substantially liquidating the CDO's assets and paying off, in full, the remaining senior notes. The Company reconsolidated the remaining assets of Apidos Cinco CDO as a result of the liquidation, however, as the senior notes had paid off there was no impact to the Company's borrowings. The following table sets forth certain information with respect to the Company's consolidated securitizations at December 31, 2016 : Securitization Closing Date Maturity Date End of Designated Principal Reinvestment Period (1) Total Note Paydowns at December 31, 2016 (in millions) RCC 2014-CRE2 July 2014 April 2032 July 2016 $ 103.4 RCC 2015-CRE3 February 2015 March 2032 February 2017 $ 86.0 RCC 2015-CRE4 August 2015 August 2032 August 2017 $ 65.3 (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 securitizations' 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 at December 31, 2016 eliminate in consolidation. RCC CRE Notes 2013 In December 2013, the Company closed RCC CRE Notes 2013, a $307.8 million CRE securitization transaction that provided financing for transitional commercial real estate loans. RCC CRE Notes 2013 issued a total of $260.8 million of senior notes at par to unrelated investors. RCC Real Estate purchased 100% of the Class D senior notes (rated BBB:DBRS), Class E senior notes (rated BB:DBRS) and Class F senior notes (rated B:DBRS) for $30.0 million . In addition, Resource Real Estate Funding 2013 Notes Investor, LLC ("RREF 2013 Notes Investor"), a subsidiary of RCC Real Estate, purchased a $16.9 million equity interest representing 100% of the outstanding preference shares. The senior notes purchased by RCC Real Estate are subordinated in right of payment to all other senior notes issued by RCC CRE Notes 2013 but are senior in right of payment to the preference shares. The equity interest is subordinated in right of payment to all other securities issued by RCC CRE Notes 2013. At closing, the senior notes issued to investors by RCC CRE Notes 2013 consisted of the following classes: (i) $136.9 million of Class A notes bearing interest at one-month LIBOR plus 1.30% ; (ii) $78.5 million of Class A-S notes bearing interest at one-month LIBOR plus 2.15% ; (iii) $30.8 million of Class B notes bearing interest at one-month LIBOR plus 2.85% ; (iv) $14.6 million of Class C notes bearing interest at one-month LIBOR plus 3.50% ; (v) $13.8 million of Class D notes bearing interest at one-month LIBOR plus 4.50% ; (vi) $9.2 million of Class E notes bearing interest at one-month LIBOR plus 5.50% ; (vii) and $6.9 million of Class F notes bearing interest at one-month LIBOR plus 6.50% . At December 31, 2015 , total note paydowns on RCC CRE Notes 2013 totaled $202.4 million . In December 2016, RREF 2013 Notes Investor exercised the optional redemption feature of RCC CRE Notes 2013 and the outstanding senior notes were paid off as a result of the maturities of certain of the securitization's assets. RCC 2014-CRE2 In July 2014, the Company closed RCC 2014-CRE2, a $353.9 million CRE securitization transaction that provided financing for transitional commercial real estate loans. RCC 2014-CRE2 issued a total of $253.3 million of senior notes at par to unrelated investors. RCC Real Estate purchased 100% of the Class C senior notes (rated B2:Moody's) for $17.7 million . In addition, Resource Real Estate Funding 2014-CRE2 Investor, LLC, a subsidiary of RCC Real Estate, purchased a $100.9 million equity interest representing 100% of the outstanding preference shares. The senior notes purchased by RCC Real Estate are subordinated in right of payment to all other senior notes issued by RCC 2014-CRE2, but are senior in right of payment to the preference shares. The equity interest is subordinated in right of payment to all other securities issued by RCC 2014-CRE2. At closing, the senior notes issued to investors by RCC 2014-CRE2 consisted of the following classes: (i) $196.4 million of Class A notes bearing interest at one-month LIBOR plus 1.05% ; (ii) $38.9 million of Class B notes bearing interest at one-month LIBOR plus 2.50% ; and (iii) $17.7 million of Class C notes bearing interest at one-month LIBOR plus 4.25% . All of the notes issued mature in April 2032 , although the Company has the right to call the notes any time after July 2016 until maturity. RCC 2015-CRE3 In February 2015, the Company closed RCC 2015-CRE3, a $346.2 million CRE securitization transaction that provided financing for transitional commercial real estate loans. RCC 2015-CRE3 issued a total of $282.1 million of senior notes at par to unrelated investors. RCC Real Estate purchased 100% of the Class E and Class F senior notes for $20.8 million and $15.6 million , respectively. In addition, Resource Real Estate Funding 2015-CRE3 Investor, LLC, a subsidiary of RCC Real Estate, purchased a $27.7 million equity interest representing 100% of the outstanding preference shares. The senior notes purchased by RCC Real Estate are subordinated in right of payment to all other senior notes issued by RCC 2015-CRE3, but are senior in right of payment to the preference shares. The equity interest is subordinated in right of payment to all other securities issued by RCC 2015-CRE3. At closing, the senior notes issued to investors by RCC 2015-CRE3 consisted of the following classes: (i) $193.9 million of Class A notes bearing interest at one-month LIBOR plus 1.40% ; (ii) $17.3 million of Class A-S notes bearing interest at one-month LIBOR plus 1.65% ; (iii) $19.5 million of Class B notes bearing interest at one-month LIBOR plus 2.40% ; (iv) $20.8 million of Class C notes bearing interest at one-month LIBOR plus 3.15% ; (v) $30.7 million of Class D notes bearing interest at one-month LIBOR plus 4.00% ; (vi) $20.8 million of Class E notes bearing interest at one-month LIBOR plus 4.75% ; (vii) and $15.6 million of Class F notes bearing interest at one-month LIBOR plus 5.50% . All of the notes issued mature in March 2032 , although the Company has the right to call the notes any time after March 2017 until maturity. RCC 2015-CRE4 In August 2015, the Company closed RCC 2015-CRE4, a $312.9 million CRE securitization transaction that provided financing for transitional commercial real estate loans. RCC 2015-CRE4 issued a total of $223.7 million of senior notes at par to unrelated investors. RCC Real Estate purchased 100% of the Class C senior notes for $26.6 million . In addition, Resource Real Estate Funding 2015-CRE4 Investor, LLC , a subsidiary of RCC Real Estate purchased a $62.6 million equity interest representing 100% of the outstanding preference shares. The senior notes purchased by RCC Real Estate are subordinated in right of payment to all other senior notes issued by RCC 2015-CRE4, but are senior in right of the payment to the preference shares. The equity interest is subordinated in right of payment to all other securities issued by RCC 2015-CRE4. At closing, the senior notes issued to investors by RCC 2015-CRE4 consisted of the following classes: (i) $179.9 million of Class A notes bearing interest at one-month LIBOR plus 1.40% ; (ii) $43.8 million of Class B notes bearing interest at one-month LIBOR plus 3.00% ; (iii) $26.6 million of Class C notes bearing interest at one-month LIBOR plus 4.75% . All of the notes issued mature in August 2032 , although the Company has the right to call the notes any time after September 2017 until maturity. Apidos CDO III In May 2006, the Company closed Apidos CDO III, a $285.5 million CDO transaction that provided financing for syndicated corporate loans. Apidos CDO III issued a total of $262.5 million of senior notes at par to investors and RCC Commercial purchased a $23.0 million equity interest representing 100% of the outstanding preference shares. The equity interest is subordinated in right of payment to all other securities issued by Apidos CDO III. At closing, the senior notes issued to investors by Apidos CDO III consist of the following classes: (i) $212.0 million of Class A-1 notes bearing interest at three-month LIBOR plus 0.26% ; (ii) $19.0 million of Class A-2 notes bearing interest at three-month LIBOR plus 0.45% ; (iii) $15.0 million of Class B notes bearing interest at three-month LIBOR plus 0.75% ; (iv) $10.5 million of Class C notes bearing interest at three-month LIBOR plus 1.75% ; and (v) $6.0 million of Class D notes bearing interest at three-month LIBOR plus 4.25% . In June 2015, the Company called Apidos CDO III, substantially liquidating the securitization's assets. Proceeds from the sale of these assets, plus proceeds from previous sales and paydowns in the CDO, were used to pay down the securitization's remaining senior notes. Unsecured Junior Subordinated Debentures In May 2006 and September 2006, the Company formed RCT I and RCT II, respectively, for the sole purpose of issuing and selling capital securities representing preferred beneficial interests. Although the Company owns $774,000 of the common securities of RCT I and RCT II, RCT I and RCT II are not consolidated into the Company’s consolidated financial statements because the Company is not deemed to be the primary beneficiary of these entities. In connection with the issuance and sale of the capital securities, the Company issued junior subordinated debentures to RCT I and RCT II of $25.8 million each, representing the Company’s maximum exposure to loss. The debt issuance costs associated with the junior subordinated debentures for RCT I and RCT II were included in borrowings and were amortized into interest expense in the consolidated statements of operations using the effective yield method over a ten year period. There was no unamortized debt issuance costs associated with the junior subordinated debentures for RCT I and RCT II outstanding at December 31, 2016 . The debt issuance costs associated with the junior subordinated debentures for RCT I and RCT II at December 31, 2015 were $54,000 and $80,000 , respectively. The rates for RCT I and RCT II, at December 31, 2016 , were 4.95% and 4.84% , respectively. The rates for RCT I and RCT II, at December 31, 2015 , were 4.55% and 4.25% , respectively. The rights of holders of common securities of RCT I and RCT II are subordinate to the rights of the holders of capital securities only in the event of a default; otherwise, the common securities’ economic and voting rights are pari passu with the capital securities. The capital and common securities of RCT I and RCT II are subject to mandatory redemption upon the maturity or call of the junior subordinated debentures held by each. Unless earlier dissolved, RCT I will dissolve on May 25, 2041 and RCT II will dissolve on September 29, 2041. The junior subordinated debentures are the sole assets of RCT I and RCT II, mature on September 30, 2036 and October 30, 2036, respectively, and may be called at par by the Company any time after September 30, 2011 and October 30, 2011, respectively. The Company records its investments in RCT I and RCT II’s common securities of $774,000 each as investments in unconsolidated entities and records dividend income upon declaration by RCT I and RCT II. 6.0% Convertible Senior Notes On October 21, 2013, the Company issued and sold in a public offering $115.0 million aggregate principal amount of its 6.0% Convertible Senior Notes due 2018, (" 6.0% Convertible Senior Notes"). After deducting the underwriting discount and the estimated offering costs, the Company received approximately $111.1 million of net proceeds. The discount of $4.9 million on the 6.0% Convertible Senior Notes reflects the difference between the stated value of the debt and the fair value of the notes as if they were issued without a conversion feature and at a higher rate of interest that the Company estimated would have been applicable without the conversion feature. The discount is amortized into interest expense in the consolidated statements of operations on a straight-line basis over the period ended on December 1, 2018 . Interest on the 6.0% Convertible Senior Notes is paid semi-annually. Prior to December 1, 2018 , the 6.0% Convertible Senior Notes are not redeemable at the Company's option, except to preserve the Company's status as a REIT. On or after December 1, 2018 , the Company may redeem all or a portion of the 6.0% Convertible Senior Notes at a redemption price equal to the principal amount plus accrued and unpaid interest. Holders of 6.0% Convertible Senior Notes may require the Company to repurchase all or a portion of the 6.0% Convertible Senior Notes at a purchase price equal to the principal amount plus accrued and unpaid interest on December 1, 2018 , or upon the occurrence of certain defined fundamental changes. The 6.0% Convertible Senior Notes had an original conversion rate of 150.1502 common shares per $1,000 principal amount of 6.0% Convertible Senior Notes (equivalent to an initial conversion price of $6.66 per common share). Upon conversion of 6.0% Convertible Senior Notes by a holder, the holder will receive cash, the Company's common shares or a combination of cash and common shares, at the Company's election. In connection with the Company's one-for-four reverse stock split, the 6.0% Convertible Senior Notes automatically adjusted from 150.1502 common shares per $1,000 principal amount of such notes to 37.5376 common shares per $1,000 principal amount of such notes. The conversion price was adjusted from $6.66 to $26.64 as a result of the stock split. 8.0% Convertible Senior Notes In January 2015, the Company issued and sold in a public offering $100.0 million aggregate principal amount of its 8.0% Convertible Senior Notes due 2020, (" 8.0% Convertible Senior Notes"). After deducting a $1.0 million underwriting discount and deferred debt issuance costs totaling $2.1 million , the Company received approximately $97.0 million of net proceeds. In addition, the Company recorded a discount of $2.5 million (the offset of which was recorded in additional paid-in capital) on the 8.0% Convertible Senior Notes that reflects the difference between the stated value of the debt and the fair value of the notes as if they were issued without a conversion feature. The aforementioned market discounts and the deferred debt issuance costs are amortized into interest expense in the consolidation statements of operations on a straight-line basis over the period ended on January 15, 2020. Interest on the 8.0% Convertible Senior Notes is paid semi-annually. Prior to January 15, 2020, the 8.0% Convertible Senior Notes are not redeemable at the Company's option, except to preserve the Company's status as a REIT. On or after January 15, 2020, the Company may redeem all or a portion of the 8.0% Convertible Senior Notes at a redemption price equal to the principal amount plus accrued and unpaid interest. Holders of 8.0% Convertible Senior Notes may require the Company to repurchase all or a portion of the 8.0% Convertible Senior Notes at a purchase price equal to the principal amount plus accrued and unpaid interest on January 15, 2020, or upon the occurrence of certain defined fundamental changes. The 8.0% Convertible Senior Notes had an original conversion rate of 187.4414 common shares per $1,000 principal amount of 8.0% Convertible Senior Notes (equivalent to an initial conversion price of $5.34 per common share). Upon conversion of 8.0% Convertible Senior Notes by a holder, the holder will receive cash, the Company's common shares or a combination of cash and common shares, at the Company's election. In connection with the Company's one-for-four reverse stock split, the 8.0% Convertible Senior Notes automatically adjusted from 187.4414 common shares per $1,000 principal amount of such notes to 46.86035 shares of common stock per $1,000 principal amount of such notes. The conversion price was adjusted from $5.34 to $21.36 as a result of the stock split. Repurchase and Credit Facilities Borrowings under the Company's repurchase agreements are 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): At December 31, 2016 At December 31, 2015 Outstanding Value of Number of Weighted Average Outstanding Value of Number of Weighted Average CMBS Term Wells Fargo Bank (1) $ 22,506 $ 28,514 13 1.96% $ 25,656 $ 31,650 21 1.57% Deutsche Bank (2) 55,981 86,643 23 3.04% — — — —% CRE Term Wells Fargo Bank (3) 215,283 313,126 16 2.86% 123,937 179,169 9 2.39% Morgan Stanley Bank (4) 131,355 207,377 11 3.34% 98,991 142,098 7 2.96% Trust Certificates Term Repurchase Facility RSO Repo SPE Trust 2015 (5) 26,385 89,181 1 6.21% 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% Totals $ 451,510 $ 724,841 $ 332,235 $ 521,445 (1) The Wells Fargo Bank CMBS term repurchase facility includes $0 and $2,000 , of deferred debt issuance costs at December 31, 2016 and 2015 , respectively. (2) The Deutsche Bank CMBS term repurchase facility includes $16,000 and $0 of deferred debt issuance costs at December 31, 2016 and 2015 , respectively. (3) The Wells Fargo Bank CRE term repurchase facility includes $1.6 million and $675,000 of deferred debt issuance costs at December 31, 2016 and 2015 , respectively. (4) The Morgan Stanley Bank CRE term repurchase facility includes $1.1 million and $1.7 million of deferred debt issuance costs at December 31, 2016 and 2015 , respectively. (5) The RSO Repo SPE Trust 2015 term repurchase facility includes $282,000 and $415,000 of deferred debt issuance costs at December 31, 2016 and 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 At December 31, 2016: CMBS Term Repurchase Facilities Wells Fargo Bank, National Association $ 6,059 90 days 1.96% Deutsche Bank, AG $ 30,971 145 days 3.04% CRE Term Repurchase Facilities Wells Fargo Bank, National Association $ 97,482 1.6 years 2.86% Morgan Stanley Bank, National Association $ 75,772 1.7 years 3.34% Trust Certificates Term Repurchase Facility RSO Repo SPE Trust 2015 $ 62,575 1.9 years 6.21% Amount at (1) Weighted Average Weighted Average At 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% (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. CMBS – Term Repurchase Facilities In February 2011, the Company's wholly-owned subsidiaries, RCC Commercial and RCC Real Estate (collectively, the "RCC Subsidiaries"), entered into a master repurchase and securities contract (the "2011 Facility") with Wells Fargo. Under the 2011 Facility, from time to time, the parties may enter into transactions in which the RCC Subsidiaries and Wells Fargo agree to transfer from the RCC Subsidiaries to Wells Fargo all of their right, title and interest to certain commercial mortgage backed securities and other assets (the "Assets") against the transfer of funds by Wells Fargo to the RCC Subsidiaries, with a simultaneous agreement by Wells Fargo to transfer back to the RCC Subsidiaries such Assets at a date certain or on demand, against the transfer of funds from the RCC Subsidiaries to Wells Fargo. The maximum amount of the 2011 Facility is $100.0 million which had an original two year term with a one year option to extend, and an interest rate equal to the one-month LIBOR plus 1.00% plus a .25% initial structuring fee and a .25% extension fee upon exercise. Amendments to the facility have extended the current termination date to March 31, 2017 and the Company expects to conclude a credit review process with its lender and receive a new term repurchase facility for an additional year. The 2011 Facility contains customary events of default, |
STOCK INCENTIVE PLANS AND SHARE
STOCK INCENTIVE PLANS AND SHARE ISSUANCE AND REPURCHASE | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK INCENTIVE PLANS AND SHARE ISSUANCE AND REPURCHASE | NOTE 14 - STOCK INCENTIVE PLANS AND SHARE ISSUANCE AND REPURCHASE Upon formation of the Company, the 2005 Stock Incentive Plan (the "2005 Plan") was adopted for the purpose of attracting and retaining executive officers, employees, directors and other persons and entities that provide services to the Company. The 2005 Plan authorized the issuance of up to 383,333 shares of common stock in the form of options to purchase common stock, stock awards, performance shares and stock appreciation rights. In July 2007, the Company’s shareholders approved the 2007 Omnibus Equity Compensation Plan (the "2007 Plan"). The 2007 Plan authorized the issuance of up to 500,000 shares of common stock in the form of options to purchase common stock, stock awards, performance shares and stock appreciation rights. On June 23, 2011, the 2007 Plan was amended to: (i) increase the number of shares authorized for issuance under the Plan from 500,000 shares to 1,350,000 shares; (ii) extend the expiration date of the Plan to June 23, 2021; (iii) provide that the administrator making certain determinations after a change of control, as defined in the 2007 Plan, will be comprised of the same persons who constitute the administrator immediately before the change of control; and (iv) make other clarifying and updating amendments to the Plan. The following table summarizes the Company's repurchases of preferred stock: Year ended December 31, 2016 Total Outstanding Number of Shares Repurchased Weighted Average Offering 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 its 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 its 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 its 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 was authorized to issue up to 5,000,000 shares of common stock. During the year ended December 31, 2016 , the Company sold approximately 10,000 shares of common stock through this program, resulting in proceeds of approximately $117,000 . Under a share repurchase plan authorized by the board of directors on August 3, 2015, the Company was authorized to repurchase up to $50.0 million of its outstanding equity and debt securities. During the year ended December 31, 2016 , the Company repurchased $9.2 million of its common stock, representing approximately 800,000 shares. Since the inception of the program through December 31, 2016 , the Company has repurchased $35.2 million of its common stock, representing approximately 2.8 million shares or 8.3% of the outstanding balance. During the year ended December 31, 2016 , the Company repurchased $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 plan for up to $50.0 million of its outstanding securities, which replaced the August 2015 repurchase plan and $44.9 million remains available in this repurchase plan at December 31, 2016 . |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 15 - SHARE-BASED COMPENSATION The following table summarizes the Company's restricted common stock transactions: Non-Employee Directors Non-Employees (1) Employees Total Unvested shares at January 1, 2016 15,267 617,657 58,445 691,369 Issued 25,948 230,338 50,784 307,070 Vested (13,895 ) (536,016 ) (32,558 ) (582,469 ) Forfeited — (10,493 ) (5,427 ) (15,920 ) Unvested shares at December 31, 2016 27,320 301,486 71,244 400,050 (1) Non-employees are employees of Resource America. 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 years ended December 31, 2016 , 2015 and 2014 was $2.3 million , $4.9 million and $4.7 million , respectively. The estimated fair value at grant date of unvested shares of restricted common stock issued to the Company’s eight non-employee directors during the years ended December 31, 2016 , 2015 and 2014 was $290,000 , $256,000 and $219,000 , 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 years ended December 31, 2016 , 2015 , and 2014 was $267,000 and $257,000 and $256,000 , respectively. At December 31, 2016 the total unrecognized restricted common stock expense for non-employees was $891,000 , with a weighted average amortization period remaining of 2.6 years . The following table summarizes restricted common stock grants during the year ended December 31, 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 September 29, 2016 2,755 100% 9/29/17 (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 annual 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 at December 31, 2016 : Vested Options Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Vested at January 1, 2016 26,250 $ 46.60 Vested — $ — Exercised — $ — Forfeited — $ — Expired — $ — Vested at December 31, 2016 26,250 $ 46.60 1.95 $ — There were no options granted during the years ended December 31, 2016 or 2015 . The outstanding stock options have a contractual term of ten years and will expire in 2017 and 2021. The components of equity compensation expense for the periods presented is as follows (in thousands): December 31, 2016 2015 2014 Options granted to Manager and non-employees (1) $ — $ — $ (2 ) Restricted shares granted to non-employees (1)(2) 2,758 2,163 5,679 Restricted shares granted to non-employee directors 267 257 256 Total equity compensation expense (3) $ 3,025 $ 2,420 $ 5,933 (1) Non-employees are employees of Resource America. (2) Amounts include $691,000 of equity compensation expense, for the year ended December 31, 2016 , associated with the accelerated stock vesting of former executives of the Company. (3) Amounts do not include equity compensation expense for employees of our subsidiary PCM, which is included in net income (loss) for discontinued operations, net of tax. 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 years ended December 31, 2016 , 2015 and 2014 . Apart from incentive compensation payable under the Management Agreement, the Company has established no formal criteria for the issuance of equity awards as of December 31, 2016 . All awards are discretionary in nature and subject to approval by the compensation committee of the Company's board of directors. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 16 - 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 at December 31, 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 (loss) per share for the periods presented as follows (in thousands, except share and per share amounts): Years Ended December 31, 2016 2015 2014 Net income (loss) from continuing operations $ (11,334 ) $ 11,079 $ 59,585 Net (income) loss allocated to preferred shares (24,091 ) (24,437 ) (17,176 ) Carrying value in excess of consideration paid for preferred shares 1,500 — — Net (income) loss allocable to non-controlling interest, net of taxes 229 (6,628 ) (965 ) Net income (loss) from continuing operations allocable to common shares (33,696 ) (19,986 ) 41,444 Net income (loss) from discontinued operations, net of tax (19,260 ) 6,104 2,583 Net income (loss) allocable to common shares $ (52,956 ) $ (13,882 ) $ 44,027 Basic: Weighted average number of shares outstanding 30,539,369 32,280,319 32,007,766 Continuing operations $ (1.10 ) $ (0.62 ) $ 1.30 Discontinued operations (0.63 ) 0.19 0.08 Basic net income (loss) per share $ (1.73 ) $ (0.43 ) $ 1.38 Diluted: Weighted average number of shares outstanding 30,539,369 32,280,319 32,007,766 Additional shares due to assumed conversion of dilutive instruments — — 307,081 Adjusted weighted-average number of common shares outstanding 30,539,369 32,280,319 32,314,847 Continuing operations $ (1.10 ) $ (0.62 ) $ 1.28 Discontinued operations (0.63 ) 0.19 0.08 Diluted net income (loss) per share $ (1.73 ) $ (0.43 ) $ 1.36 Potentially dilutive shares consisting of 400,050 and 691,369 shares of restricted stock are not included in the calculation of diluted net income (loss) per share for the years ended December 31, 2016 and 2015 , respectively, because the effect was anti-dilutive. Potentially dilutive shares consisting of 9,002,864 and 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 13 ) for the year ended December 31, 2016 and 2015 , respectively, were not included in the calculation of diluted net income (loss) per share because the effect would be anti-dilutive. Potentially dilutive shares consisting of 4,316,818 shares issuable in connection with the potential conversion of the Company's 6.0% Convertible Senior Notes for the year ended December 31, 2014 were not included in the calculation of diluted net income per share because the effect was anti-dilutive. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 17 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents the changes in each component of accumulated other comprehensive income (loss) for the year ended December 31, 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 (as adjusted) $ (131 ) $ (835 ) $ — $ (966 ) Other comprehensive gain (loss) before reclassifications (net of taxes of $0.5 million) 118 5,850 — 5,968 Amounts reclassified from accumulated other (5 ) (1,916 ) — (1,921 ) Net current-period other comprehensive income 113 3,934 — 4,047 Unrealized gains (losses) on available-for-sale securities allocable to non-controlling interests — — — — December 31, 2016 $ (18 ) $ 3,099 $ — $ 3,081 |
THE MANAGEMENT AGREEMENT
THE MANAGEMENT AGREEMENT | 12 Months Ended |
Dec. 31, 2016 | |
THE MANAGEMENT AGREEMENT [Abstract] | |
THE MANAGEMENT AGREEMENT | NOTE 18 - THE MANAGEMENT AGREEMENT On March 8, 2005, the Company entered into a Management Agreement with the Manager and Resource America pursuant to which the Manager provides the Company investment management, administrative and related services. The agreement has been amended and restated several times over the years. On September 8, 2016, Resource America was acquired by 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 took over control of the Company's Manager with respect to the management agreement. On May 22, 2016, Resource America had previously 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 and in exchange was paid a fee by Resource America ( see Note 19 ). Under the agreement, the Manager receives fees and is reimbursed for its expenses as follows: • A monthly base management fee equal to 1/12 th of the amount of the Company's equity multiplied by 1.5% . Under the management agreement, ''equity'' is equal to the net proceeds from any issuance of shares of capital stock less offering related costs, plus or minus the Company's retained earnings (excluding non-cash equity compensation incurred in current or prior periods) less any amounts the Company has paid for common stock repurchases. The calculation is adjusted for one-time events due to changes in GAAP, as well as other non-cash charges, upon approval of the independent directors of the Company. • Incentive compensation is calculated as follows: (i) twenty-five percent ( 25% ) of the dollar amount by which (A) the Company's adjusted operating earnings (before incentive compensation but after the base management fee) for such quarter per common share (based on the weighted average number of common shares outstanding for such quarter) exceeds (B) an amount equal to (1) the weighted average of the price per share of the common shares in the initial offering by the Company and the prices per share of the Common Shares in any subsequent offerings by the Company, in each case at the time of issuance thereof, multiplied by (2) the greater of (a) 2% and (b) 0.5% plus one-fourth of the Ten Year Treasury Rate for such quarter, multiplied by (ii) the weighted average number of common shares outstanding during such quarter, subject to adjustment, to exclude events pursuant to changes in GAAP or the application of GAAP, as well as non-recurring or unusual transactions or events, after discussion between the Manager and the Independent Directors and approval by a majority of the independent directors in the case of non-recurring or unusual transactions or events. The fees paid by a taxable REIT subsidiary of the Company to employees, agents or affiliates of the Manager with respect to profits of such taxable REIT subsidiary (or any subsidiary thereof) are deducted from the Company's quarterly calculation of incentive compensation payable to the Manager. Additionally, any income taxes payable by a taxable REIT subsidiary of the Company will be excluded from the Company's calculation of operating earnings. • Reimbursement of out-of-pocket expenses and certain other costs incurred by the Manager that relate directly to the Company and its operations. Incentive compensation is paid quarterly. Up to 75% of the incentive compensation is paid in cash and at least 25% is paid in the form of an award of common stock. The Manager may elect to receive more than 25% in incentive compensation in common stock. All shares are fully vested upon issuance. However, the Manager may not sell such shares for one year after the incentive compensation becomes due and payable. Shares payable as incentive compensation are valued as follows: • if such shares are traded on a securities exchange, at the average of the closing prices of the shares on such exchange over the thirty day period ending three days prior to the issuance of such shares; • if such shares are actively traded over-the-counter, at the average of the closing bid or sales price as applicable over the thirty day period ending three days prior to the issuance of such shares; and • if there is no active market for such shares, the value is the fair market value thereof, as reasonably determined in good faith by the board of directors of the Company. On February 24, 2011, the Company entered into an amendment to the Management Agreement in where, the Company agreed to pay CVC Credit Partners, LLC, formerly Apidos Capital Management ("ACM") such fees as are set forth in a Services Agreement dated as of February 24, 2011 among a subsidiary of the Company, RCAM and CVC. The Services Agreement provides that 10% of all base collateral management fees and additional collateral management fees paid to RCAM and 50% of all incentive collateral management fees will be paid by RCAM to CVC. During the years ended December 31, 2016 , 2015 and 2014 , RCAM paid CVC $1.8 million , $1.4 million and $1.3 million , respectively, in fees. The Manager provides the Company with a Chief Financial Officer, a Chief Accounting Officer and several accounting and tax professionals, each of whom is exclusively dedicated to the Company's operations. The Manager also provides the Company with a director of investor relations. The Company bears the expense of the wages, salaries and benefits of the Chief Financial Officer and Chief Accounting Officer and a sufficient amount of additional accounting and tax professionals, and bears 50% of the salary and benefits of the director of investor relations. Up until the close of the transaction with C-III on September 8, 2016, the Company also bore the expense of the wages, salary and benefits of the Chairman. In November 2013, the Company amended the second amended and restated Management Agreement to allow an ancillary operating subsidiary (PCM), that is an operating entity principally engaged in the evaluation, underwriting, origination, servicing, holding, trading and financing of loans, securities, investments and credit products other than commercial real estate loans to directly incur and pay all of its own operating costs and expenses, including compensation of employees and reimbursement of any compensation costs incurred by the Manager for personnel principally devoted to such ancillary operating subsidiary. As amended, the management agreement's term ends on March 31, 2017. The agreement provides for automatic one -year renewals on each March 31 thereafter until terminated unless at the end of the initial term or any renewal term at least two-thirds of the independent directors or a majority of the outstanding common shares agreed not to renew the Management Agreement. With a two-thirds vote of the independent directors, the independent directors may elect to terminate the Management Agreement because of the following: • unsatisfactory performance; and/or • unfair compensation payable to the Manager where fair compensation cannot be agreed upon by the Company (pursuant to a vote of two-thirds of the independent directors) and the Manager. If the Management Agreement is terminated based on the above provisions, the Company must pay the Manager a termination fee equal to four times the sum of the average annual base management fee and the average annual incentive during the two 12 -month periods immediately preceding the date of such termination. The Company is also entitled to terminate the Management Agreement for cause (as defined therein) without payment of any termination fee. The base management fee for the years ended December 31, 2016 , 2015 and 2014 was $12.4 million , $12.8 million and $13.0 million , respectively. There were no incentive management fees earned during the years ended December 31, 2016 , 2015 and 2014 . At December 31, 2016 , the Company was indebted to the Manager for base management fees of $854,000 , $3,000 of fees payable to CVC from RCAM, and expense reimbursements of $216,000 . At December 31, 2015 , the Company was indebted to the Manager for base management fees of $978,000 , $805,000 of fees payable to CVC from RCAM, and expense reimbursements of $152,000 . |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 19 - RELATED PARTY TRANSACTIONS Relationship with Resource America and Certain of its Subsidiaries Relationship with Resource America and C-III. 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 as a result was required to reevaluate whether or not the Company should be consolidated into Resource America’s financial statements. At such time, it was determined that the Company is no longer a VIE and Resource America would no longer consolidate the Company’s financial statements. On September 8, 2016, Resource America was acquired by 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, Resource America is no longer a public company and C-III took over control of the Company's Manager with respect to the management agreement (described below) and became beneficial owner of 715,396 shares of the Company's common equity ( 2.3% of the Company’s outstanding shares) held by Resource America. C-III is partially owned and controlled by Island Capital Group of which Mr. Farkas, Chairman of the Company, is the managing member. The Company's Chairman is also Chairman and CEO of C-III. In addition, Robert C. Lieber, the Company's Chief Executive Officer and President, is an executive managing director of C-III. Jeffrey P. Cohen, who is on the Company's board of directors, is an executive managing member of C-III and president of Island Capital Group. On May 22, 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. At the close of the transaction on September 8, 2016, Resource America paid a $1.5 million fee to the Company for the waiver which was recorded in other income (expense) on the consolidated statements of operations. The Company is managed by the Manager, which is a wholly-owned subsidiary of Resource America, pursuant to a management agreement that provides for both base and incentive management fees. For the years ended December 31, 2016 , 2015 and 2014 , the Manager earned base management fees of approximately $12.4 million , $12.8 million and $13.0 million , respectively. No incentive management fees were earned for the years ended December 31, 2016 , 2015 and 2014 . The Company also reimburses the Manager and Resource America for expenses, including the expenses of employees of Resource America who perform legal, accounting, due diligence and other services that outside professionals or consultants would otherwise perform, and for the wages, salaries and benefits of several Resource America personnel dedicated to the Company’s operations. 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 to extend the term for an additional two years terminating in December 2016. The agreement was amended again in December 2016 to extend the term for one additional year through December 2017 for a reduced fee of $250,000 . This fee is paid quarterly. For the years ended December 31, 2016 , 2015 , and 2014 , the Company paid the Manager $5.0 million , $5.5 million and $5.0 million , respectively, as expense reimbursements. On November 24, 2010, the Company entered into an Investment Management Agreement with Resource Capital Markets, Inc. ("RCM"), a wholly-owned subsidiary of Resource America. The initial agreement provided that: (a) RCM may invest up to $5.0 million of the Company’s funds, with the investable amount being adjusted by portfolio gains (losses) and collections, and offset by expenses, taxes and realized management fees, and (b) RCM can earn a management fee in any year that the net profits earned exceed a preferred return. On June 17, 2011, the Company entered into a revised Investment Management Agreement with RCM which provided an additional $8.0 million of the Company’s funds. The management fee is 20% of the amount by which the net profits exceed the preferred return. During the years ended December 31, 2016 , 2015 and 2014 , RCM earned no management fees. The portfolio began a partial liquidation during the year ended December 31, 2013 that has resulted in the outstanding portfolio balance being significantly decreased . The Company holds $4.1 million in fair market value of trading securities at December 31, 2016 , a slight increase of $400,000 from $3.7 million at fair market value at December 31, 2015 . The Company also reimburses RCM for expenses paid on the Company's behalf. For the years ended December 31, 2016 , 2015 and 2014 , the Company paid RCM $10,000 , $128,000 and $164,000 , respectively, as expense reimbursements. At December 31, 2016 , the Company was indebted to the Manager for $1.4 million , comprised of base management fees of $1.3 million and expense reimbursements of $35,000 . The Company was also indebted to the Manager for an oversight fee of $138,000 which was recorded in liabilities held for sale. 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 December 31, 2016 , the Company was indebted to RCM under the Company’s Investment Management Agreement for $216,000 , 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, Northport TRS, LLC, began originating middle-market loans. Resource America was paid origination fees in connection with the Company's middle-market lending operations, which capped out at 2% of the loan balance for any loan originated. The Company was indebted to RCM for $0 and $93,000 at December 31, 2016 and December 31, 2015 , respectively for the middle-market lending operations. As a result of its sale of Northport TRS, LLC in August 2016, the Company has sold substantially all of its direct origination middle market loans and one syndicated loan, with an aggregate par balance of $257.3 million . CVC Credit Partners U.S Lending I, L.P. ,a related party to the Company, was also party to the sale transaction. As part of our plan to exit underperforming non-core asset classes, our middle market business is reported as discontinued operations on the Company's consolidated statements of operations. As such, the remaining assets were required to be marked to the lower of cost or market and transferred to hold for sale status at December 31, 2016. 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 vested in full on November 7, 2016, and included dividend equivalent rights. Elevation Home Loans, LLC was liquidated in 2016. 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, Resource America received a $2.3 million structuring and placement fee. At December 31, 2016 , the Company retained equity in six 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 liquidated two of these securitizations, 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, two of the Company's remaining securitizations were deconsolidated. The first securitization, Apidos Cinco, was liquidated in November 2016 and, as a result, the Company consolidated the remaining cash, one structured security and three syndicated corporate loans for a combined fair value of $2.3 million . The second securitization, RCC CRE Notes 2013, was liquidated in December 2016 and, as a result, the remaining assets were returned to the Company in exchange for the Company's preference shares and equity notes in the securitization. Relationship with LEAF Commercial Capital. LCC originated and managed equipment leases and notes on behalf of the Company. On March 5, 2010, the Company entered into agreements with Lease Equity Appreciation Fund II, L.P. ("LEAF II") (an equipment leasing partnership sponsored by LEAF Financial and of which a LEAF Financial subsidiary is the general partner), pursuant to which the Company provided and funded an $8.0 million credit facility to LEAF II. The credit facility initially had a one year term with interest at 12% per year, payable quarterly, and was secured by all the assets of LEAF II, including its entire ownership interest in LEAF II Receivables Funding. The Company received a 1% origination fee in connection with establishing the facility. The facility originally matured on March 3, 2011 and was extended until September 3, 2011 with a 1% extension fee paid on the outstanding loan balance. On June 3, 2011, the Company entered into an amendment to extend the maturity to February 15, 2012 and to decrease the interest rate from 12% to 10% per annum resulting in a troubled-debt restructuring under current accounting guidance. On February 15, 2012, the credit facility was further amended to extend the maturity to February 15, 2013 with a 1% extension fee accrued and added to the amount outstanding. On January 11, 2013, the Company entered into another amendment to extend the maturity to February 15, 2014 with an additional 1% extension fee accrued and added to the amount outstanding. On December 17, 2013, the Company entered into another amendment to extend the maturity to February 15, 2015. At the end of 2014, the Company recorded a provision for loan loss on this loan of $1.3 million before extinguishing the loan and bringing direct financing leases in the amount of $2.1 million on the Company's books in lieu of the loan receivable. During the year ended December 31, 2016 , no provision was taken against the value of the direct financing leases. During the year ended December 31, 2015 , the Company recorded a provision of $465,000 against the value of the direct financing leases. At December 31, 2016 , the Company held $527,000 of direct financing leases, net of reserves. On November 16, 2011, the Company, together with LEAF Financial and LCC, entered into the SPA with Eos ( see Note 3 ). The Company’s resulting interest is accounted for under the equity method. For the years ended December 31, 2016 , 2015 and 2014 , the Company recorded income of $943,000 and losses of $2.6 million and $1.6 million , respectively, which was recorded in equity in earnings of unconsolidated subsidiaries on the consolidated statements of operations. The Company’s investment in LCC was $43.0 million and $42.0 million at December 31, 2016 and 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 syndicated corporate loans on the Company’s behalf. Also 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 years ended December 31, 2016 , 2015 and 2014 , CVC Credit Partners earned subordinated and incentive fees of $1.8 million , $1.4 million and $1.3 million , respectively. In October 2012, the Company purchased 66.6% of the preferred equity in one of the RCAM CLOs. In May 2013, the Company purchased additional equity in this CLO, increasing its ownership percentage to 68.3% . In 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 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, at December 31, 2015 . In September 2016, another RCAM-managed CLO was called and $1.5 million of impairment, on a pre-tax basis, was recorded in impairment losses on the Company's consolidated statements of operations on the related intangible asset during the year ended December 31, 2016 . In September 2016, the Company recorded impairment on the remaining CLO of $2.2 million , on a pre-tax basis, which was recorded in impairment losses on the Company's consolidated statements of operations on the related intangible asset for its anticipated redemption in early 2017. 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 its 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 years ended December 31, 2016 , 2015 and 2014 , the Company recorded earnings of $0 , $8,000 and $2.0 million , respectively, which was recorded in equity in earnings of unconsolidated subsidiaries on the consolidated statements of operations. In March 2015, the Company elected to withdraw $5.0 million from the fund. 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 $50,000 and $3,000 due from Resource Real Estate for loan origination costs in connection with the Company's commercial real estate loan portfolio at December 31, 2016 and 2015 , respectively. The Company also reimburses the Resource Real Estate 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. At December 31, 2016 and 2015 the Company was indebted to Resource Real Estate for $899,000 and $0 for expense reimbursements, respectively. On August 9, 2006, the Company, through its subsidiary, RCC Real Estate, originated a loan to Lynnfield Place, a multi-family apartment property, in the amount of $22.4 million . The loan was then purchased by RREF CDO 2006-1. The loan, which was set to mature on May 9, 2018, carried an interest rate of LIBOR plus a spread of 3.5% with a LIBOR floor of 2.5% . On June 14, 2011, RCC Real Estate converted this loan collateralized by a multi-family building, to equity. The loan was kept outstanding and was used as collateral in RREF CDO 2006-1. RREM was appointed as the asset manager as of August 1, 2011. RREM performed lease review and approval, debt service collection, loan workout, foreclosure, disposition and/or entitlements and permitting, as applicable. RREM was also responsible for engaging third parties to perform day-to-day property management, property leasing, rent collection, maintenance, and capital improvements. RREM was entitled to a monthly asset management fee equal to 4.0% of the gross receipts generated from the property. There were no fees incurred during the years ended December 31, 2016 and 2015 as the property was sold during the last quarter of 2014 for a gain of $1.9 million . On December 1, 2009, the Company purchased a membership interest in RRE VIP Borrower, LLC (an unconsolidated VIE that held an interest in a real estate joint venture) from Resource America for $2.1 million , its book value. RREM was asset manager of the venture and received a monthly asset management fee equal to 1% of the combined investment calculated as of the last calendar day of the month. For the year ended December 31, 2014 , the Company paid RREM management fees of $6,000 . There were no fees incurred for the years ended December 31, 2016 and 2015 , as the last property associated with the joint venture was sold in July 2014. For the years ended December 31, 2016 , 2015 and 2014 , the Company recorded income from RRE VIP Borrower of $58,000 , $325,000 and $3.5 million , respectively, which was recorded in equity in earnings of unconsolidated entities 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% 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% per annum on the unpaid principal balance. In the event of default, interest accrued at a rate of 5% 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. On June 21, 2011, the Company entered into a joint venture with an unaffiliated third party to form CR SLH Partners, L.P. ("SLH Partners") to purchase a defaulted promissory note secured by a mortgage on a multi-family apartment building. The Company purchased a 10% equity interest in the venture and also loaned SLH Partners $7.0 million to finance the project secured by a first mortgage lien on the property. The loan had a maturity date of September 21, 2012 and bore interest at a fixed rate of 10% per annum on the unpaid principal balance, payable monthly. The Company received a commitment fee equal to 1% of the loan amount at the origination of the loan and received a $70,000 exit fee upon repayment. On May 23, 2012, SLH Partners repaid the $7.0 million loan in its entirety. RREM was appointed as the asset manager of the venture. RREM performed lease review and approval, debt service collection, loan workout, foreclosure, disposition and permitting, as applicable. RREM was also responsible for engaging third parties to perform day-to-day property management, property leasing, rent collection, maintenance, and capital improvements. RREM received an annual asset management fee equal to 2% of the gross receipts generated from the property. The Company held a $975,000 preferred equity investment in SLH Partners at December 31, 2013. The investment was sold in 2014 for a $912,000 gain which was recorded on the Company's statements of operations in equity in earnings of unconsolidated entities. 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 December 2016, RCC CRE Notes 2013 was liquidated, as a result, the remaining assets were returned to the Company in exchange for the Company's preference shares and equity notes in the securitization. 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 interest at December 31, 2015 and for the years ended December 31, 2015 and 2014 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 gain for the year ended December 31, 2015. During the year ended December 31, 2016 , RCC Residential received a cash distribution in the amount of $753,000 . The Company's ownership interest was 21.6% at December 31, 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 under the equity method as an investment in unconsolidated entities on the consolidated balance sheet (see Note 2). For the year ended December 31, 2016 , the Company recorded losses of $14,000 which was recorded in equity in earnings of unconsolidated entities on the consolidated statements of operations. 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 interests in Pelium Capital are owned by Resource America and outside investors. All intercompany accounts and transactions were eliminated in consolidation at December 31, 2015. The Company's ownership interest in Pelium Capital was 80.2% at December 31, 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 year ended December 31, 2016 , the Company recorded earnings of $4.0 million which was recorded in equity in earnings of unconsolidated entities on the consolidated statements of operations. 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 Mezz, 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 management fees of 1% on the unfunded committed capital and 1.5% on the invested capital. The Company was entitled to a management fee rebate of 25% for the first year of the fund, which ended June 24, 2016. At December 31, 2016 and 2015 , the Company is indebted for $403,000 and $94,000 for management fees, net of the rebate, respectively. 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 $18.1 million in capital in Pearlmark Mezz. For the years ended December 31, 2016 and 2015 , the Company recorded earnings of $968,000 and a loss of $460,000 , respectively, which was recorded in equity in earnings of unconsolidated entities on the consolidated statements of operations. The Company has an investment balance of $17.0 million and $6.5 million at December 31, 2016 and 2015 , respectively. The Company's ownership interest in the fund was 47.7% at December 31, 2016 . Relationship with Law Firm . Until 1996, Edward E. Cohen, a former director who was the Company’s Chairman from its inception until November 2009, was of counsel to Ledgewood, P.C. ("Ledgewood"), a law firm. In addition, one of the Company’s former executive officers, Jeffrey F. Brotman, was employed by Ledgewood until 2007. Mr. E. Cohen receives certain debt service payments from Ledgewood related to the termination of his affiliation with Ledgewood and its redemption of his interest in the firm. Mr. Brotman also receives certain debt service payments from Ledgewood related to the termination of his affiliation with the firm. For the years ended December 31, 2016 , 2015 and 2014 , the Company paid Ledgewood $319,000 , $434,000 and $280,000 , respectively, in connection with legal services rendered to the Company. On September 8, 2016, as part of the merger with C-III, Mr. E. Cohen and Mr. Brotman stepped down from their positions in the Company, and, as a result, Ledgewood is no longer considered a related party of the Company. |
DISTRIBUTIONS
DISTRIBUTIONS | 12 Months Ended |
Dec. 31, 2016 | |
DISTRIBUTIONS [Abstract] | |
DISTRIBUTIONS | NOTE 20 - DISTRIBUTIONS For the years ended December 31, 2016 , 2015 and 2014 , the Company declared and subsequently paid dividends of $1.31 , $2.34 , and $3.20 per common share, respectively. 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 2017 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 years ended December 31, 2016 , 2015 and 2014 : 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 September 30 October 28 $ 13,012 $ 0.42 December 31 January 27, 2017 $ 1,550 $ 0.05 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 2014 March 31 April 28 $ 25,921 $ 0.80 June 30 July 28 $ 26,179 $ 0.80 September 30 October 28 $ 26,629 $ 0.80 December 31 January 28, 2015 $ 26,563 $ 0.80 Preferred Stock 8.50% Series A 8.25% 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 September 30 October 31 $ 568 $ 0.531250 October 31 $ 2,859 $ 0.515625 October 31 $ 2,588 $ 0.539063 December 31 January 30, 2017 $ 568 $ 0.531250 January 30, 2017 $ 2,859 $ 0.515625 January 30, 2017 $ 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 2014 March 31 April 30 $ 463 $ 0.531250 April 30 $ 2,057 $ 0.515625 April 30 $ — $ — June 30 July 30 $ 537 $ 0.531250 July 30 $ 2,378 $ 0.515625 July 30 $ 1,437 $ 0.299479 September 30 October 30 $ 537 $ 0.531250 October 30 $ 2,430 $ 0.515625 October 30 $ 2,588 $ 0.539063 December 31 January 30, 2015 $ 568 $ 0.531250 January 30, 2015 $ 2,888 $ 0.515625 January 30, 2015 $ 2,588 $ 0.539063 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 21 - FAIR VALUE OF FINANCIAL INSTRUMENTS In analyzing the fair value of its investments accounted for on a fair value basis, the Company uses the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company determines fair value based on quoted prices when available or, if quoted prices are not available, through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The hierarchy followed defines three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability. Level 3 - Unobservable inputs that reflect the entity’s own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques. The determination of where an asset or liability falls in the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter; depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. However, the Company expects that changes in classifications between levels will be rare. Assets or liabilities that are both designated for sale or disposition and reported as discontinued operations are disclosed in Note 27. Certain assets and liabilities are measured at fair value on a recurring basis. The following is a discussion of these assets and liabilities as well as the valuation techniques applied to each for fair value measurement. The Company reports its investment securities, available-for-sale at fair value. To determine fair value, the Company uses an independent third-party valuation firm utilizing data available in the market as well as appropriate prepayment, default, and recovery rates. These valuations are validated utilizing dealer quotes, bids, or internal models. If there is a material difference between the value indicated by the third-party valuation firm and the dealer quote or bid, the Company will evaluate the difference, which could result in an updated valuation from the third party or a revised dealer quote. Any changes in the fair value of investment securities, available-for-sale are recorded in other comprehensive income. Based on a prioritization of inputs used in the valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. The Company reports its investment securities, trading at fair value, based on an independent third-party valuation. The Company evaluates the reasonableness of the valuation it receives by using a dealer quote, bid, or internal model. If there is a material difference between the value indicated by the third party and a quote the Company receives, the Company will evaluate the difference, which could result in an updated valuation from the third party or a revised dealer quote. Any changes in fair value are recorded in the Company’s results of operations as net unrealized and unrealized (loss) gain on investment securities, trading. The Company's investments securities, trading are generally classified as Level 2 or Level 3 in the fair value hierarchy. The Company reports its loans held for sale at fair value. To determine fair value, the Company uses an independent third-party valuation firm utilizing dealer quotes, bids, or internal models. These valuations are validated utilizing data available in the market. If there is a material difference between the value indicated by the third-party valuation firm and the market data, the Company will evaluate the difference, which could result in an updated valuation from the third party. Any changes in the fair value of loans held for sale are recorded in fair value adjustments on financial assets held for sale. Based on a prioritization of inputs used in the valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. Derivatives, both assets and liabilities, are reported at fair value, and are valued by a third-party pricing agent using an income approach with models that use, as their primary inputs, readily observable market parameters. This valuation process considers factors including interest rate yield curves, time value, credit factors and volatility factors. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparties. The Company assesses the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and, if material, categorizes those derivatives within Level 3 of the fair value hierarchy . The following table presents information about the Company’s assets 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 At December 31, 2016: Assets: Investment securities, trading $ — $ 369 $ 4,123 $ 4,492 Investment securities available-for-sale — — 124,968 124,968 Loans held for sale — 787 220 1,007 Derivatives — 647 — 647 Total assets at fair value $ — $ 1,803 $ 129,311 $ 131,114 Liabilities: Derivatives $ — $ (97 ) $ — $ (97 ) Total liabilities at fair value $ — $ (97 ) $ — $ (97 ) At 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 — 1,322 153 1,475 Derivatives — 727 — 727 Total assets at fair value $ — $ 6,500 $ 229,340 $ 235,840 Liabilities: Derivatives $ — $ — $ (3,458 ) $ (3,458 ) Total liabilities at fair value $ — $ — $ (3,458 ) $ (3,458 ) 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 RMBS Structured Finance Securities Loans Held for Sale Total Balance, January 1, 2016 $ 159,424 $ 44,213 $ — $ 25,550 $ 153 $ 229,340 Included in earnings (1,028 ) (21,756 ) — 502 (153 ) (22,435 ) Purchases/Originations 34,824 44,819 — — 220 79,863 Sales (3,268 ) (133,969 ) — — — (137,237 ) Paydowns (36,070 ) (57,271 ) (98 ) (267 ) — (93,706 ) Issuances — — — — — — Settlements — (28,425 ) — — — (28,425 ) Capitalized Interest — 20,014 — 190 — 20,204 Included in OCI (19 ) 4,156 (99 ) — — 4,038 Deconsolidation of VIEs (55,776 ) 153,499 (21,852 ) — 75,871 Transfers into Level 3 — — 1,798 — 1,798 Balance, December 31, 2016 $ 98,087 $ 25,280 $ 1,601 $ 4,123 $ 220 $ 129,311 The following table presents additional information about significant 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 Balance, January 1, 2016 $ 3,458 Included in earnings 50 Settlements — Unrealized gains - included in accumulated other comprehensive income (162 ) Deconsolidation of VIEs (3,346 ) Transfers into Level 3 — Balance, December 31, 2016 $ — 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 At December 31, 2016: Assets : Legacy CRE whole loans held for sale $ — $ — $ 158,178 $ 158,178 Impaired loans — — 4,500 4,500 Total assets at fair value $ — $ — $ 162,678 $ 162,678 At 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 Assets held for sale consists of CRE legacy loans that have been reclassified as held for sale as part of the Company's plan to dispose of underperforming CRE loans. For the Company’s CRE loans for which there is no primary market, fair value is measured using a discounted cash flow analysis, appraisal or another valuation technique; and these loans are classified as nonrecurring Level 3. The capitalization rates used in the appraisals of the underlying assets of loans presented as assets held for sale ranged from 5.3% to 9.0% . 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 a discounted cash flow analysis, appraisal or another valuation technique; and these loans are classified as nonrecurring Level 3. The capitalization rate used in the appraisal of the underlying assets of impaired loan was 9.0% . For the years ended December 31, 2016 , 2015 and 2014 , the amounts of nonrecurring fair value losses for specifically impaired loans were $18.3 million , $39.2 million and $1.3 million , respectively. The amounts of nonrecurring fair value losses for loans held for sale for the years ended December 31, 2016 , 2015 and 2014 were $0 , $1.3 million , and $680,000 . 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 8 . The fair values of the Company’s investment securities available-for-sale are reported in Note 9 . The fair values of the Company’s derivative instruments are reported in Note 22. 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. Fair values of loans with variable interest rates are expected to approximate fair value. 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 11.34% and 11.34% and used in the evaluation of RCT I and RCT II. 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 7.0% and the 8.0% Convertible Senior Notes are discounted at a rate of 8.6% . 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% . 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 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) At December 31, 2016: Loans held-for-investment $ 1,286,278 $ 1,292,099 $ — $ — $ 1,292,099 Senior Notes in CRE Securitizations $ 480,101 $ 486,524 $ — $ — $ 486,524 Junior subordinated notes $ 51,548 $ 27,246 $ — $ — $ 27,246 Convertible notes $ 208,297 $ 215,000 $ — $ — $ 215,000 Repurchase agreements $ 451,540 $ 453,794 $ — $ — $ 453,794 At December 31, 2015: Loans held-for-investment $ 2,160,751 $ 2,150,061 $ — $ 222,100 $ 1,927,961 Loans receivable-related party $ — $ — $ — $ — $ — Senior Notes in CRE Securitizations $ 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 $ 332,235 $ 332,235 $ — $ — $ 332,235 |
MARKET RISK AND DERIVATIVE INST
MARKET RISK AND DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
MARKET RISK AND DERIVATIVE INSTRUMENTS | NOTE 22 - 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, interest rate swaps, forward contracts and options. 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 a quantity of a currency (foreign currency hedging) at a predetermined future date, at a predetermined rate or price and are used to manage currency risk with respect to the Company's long positions in foreign currency-denominated investment securities. 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 seeks to mitigate 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 years ended December 31, 2006, 2007 and 2008, the Company terminated 18 hedges through accumulated other comprehensive loss, to be amortized through earnings over the life of the remaining debt. During the years ended December 31, 2016 , 2015 and 2014 , the Company recognized expense of $39,000 , $275,000 and $282,000 , respectively, into earnings related to the amortization of gains and losses on the 18 terminated hedges. These hedges were fully amortized at December 31, 2016 . During April 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. During the year ended December 31, 2016 the Company recognized expense of $53,000 , and in the next twelve months the Company expects to recognize the remaining expense of $18,000 . At December 31, 2016 , the Company had no interest rate swap contracts outstanding. The Company had master netting agreements with Credit Suisse International and Wells Fargo at December 31, 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. At December 31, 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 were 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 at December 31, 2016 and December 31, 2015 , respectively. The Company had aggregate unrealized losses of $18,000 and $3.5 million on the interest rate swap agreements at December 31, 2016 and December 31, 2015 , respectively, which is recorded in accumulated other comprehensive income. The amortization is reflected in interest expense in the Company’s consolidated statements of operations. The Company is also exposed to foreign currency exchange rate 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. 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 years presented: Fair Value of Derivative Instruments at December 31, 2016 (in thousands) Asset Derivatives Notional Amount Balance Sheet Location Fair Value Forward contracts - foreign currency, hedging (1)(2) $ 12,489 Derivatives, at fair value $ 647 Liability Derivatives Notional Amount Balance Sheet Location Fair Value Forward contracts - foreign currency, hedging (1)(3) $ 11,700 Derivatives, at fair value $ 97 Interest rate swap contracts, hedging $ — Accumulated other comprehensive income (loss) $ (18 ) (1) Foreign currency forward contracts are accounted for as fair value hedges. (2) The notional amount is presented on a currency converted basis. The notional amount of our foreign currency hedging forward contracts in an asset position was €11.9 million at December 31, 2016 . (3) The notional amount is presented on a currency converted basis. The notional amount of our foreign currency hedging forward contracts in a liability position was €11.1 million at December 31, 2016 . Fair Value of Derivative Instruments at December 31, 2015 (in thousands) Asset Derivatives Notional Amount Balance Sheet Location Fair Value Forward contracts - foreign currency, hedging (1)(2) $ 24,850 Derivatives, at fair value $ 727 Liability Derivatives Notional Amount Balance Sheet Location Fair Value Interest rate swap contracts, hedging (3) $ 102,799 Derivatives, at fair value $ 3,458 Interest rate swap contracts, hedging $ 102,799 Accumulated other comprehensive income (loss) $ (3,471 ) (1) 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 at December 31, 2015 . (2) Foreign currency forward contracts are accounted for as fair value hedges. (3) Interest rate swap contracts are accounted for as cash flow hedges. The Effect of Derivative Instruments on the Consolidated Statements of Operations for the Year Ended December 31, 2016 (in thousands) Derivatives Consolidated Statement of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ 119 Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on derivatives and sales of investment securities available-for-sale and loans $ 764 The Effect of Derivative Instruments on the Consolidated Statements of Operations for the Year Ended December 31, 2015 (in thousands) Derivatives Consolidated Statement of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ 6,098 Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on derivatives and sales of investment securities available-for-sale and loans $ 2,925 Options - U.S. Treasury futures Net realized and unrealized gain (loss) on derivatives and sales of investment securities available-for-sale and loans $ 184 The Effect of Derivative Instruments on the Consolidated Statements of Operations for the Year Ended December 31, 2014 (in thousands) Derivatives Consolidated Statement of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ 6,555 Forward contracts - RMBS securities Net realized and unrealized gain (loss) on derivatives and sales of investment securities available-for-sale and loans $ 1,297 Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on derivatives and sales of investment securities available-for-sale and loans $ 3,377 Options - U.S. Treasury futures Net realized and unrealized gain (loss) on derivatives and sales of investment securities available-for-sale and loans $ (28 ) (1) Negative values indicate a decrease to the associated balance sheets or consolidated statements of operations line items. |
OFFSETTING OF FINANCIAL ASSETS
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Offsetting [Abstract] | |
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | NOTE 23 - OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES The following table presents a summary of the Company's offsetting of derivative assets, presented (in thousands): (i) Recognized Assets (ii) Consolidated Balance Sheets (iii) = (i) - (ii) Balance Sheets (iv) Gross Amounts Not Offset in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged (v) = (iii) - (iv) Net Amount At December 31, 2016: Derivative hedging instruments, $ 647 $ — $ 647 $ — $ — $ 647 Total $ 647 $ — $ 647 $ — $ — $ 647 At December 31, 2015: Derivative hedging instruments, $ 727 $ — $ 727 $ — $ — $ 727 Total $ 727 $ — $ 727 $ — $ — $ 727 The following table presents a summary of the Company's offsetting of financial liabilities and derivative liabilities for the periods presented as follows (in thousands): (i) (ii) (iii) = (i) - (ii) (iv) (v) = (iii) - (iv) Financial (1) Cash (2) At December 31, 2016: Derivative hedging instruments, (3) $ 97 $ — $ 97 $ — $ — $ 97 Repurchase agreements and term facilities (4) 451,510 — 451,510 451,510 — — Total $ 451,607 $ — $ 451,607 $ 451,510 $ — $ 97 At December 31, 2015: Derivative hedging instruments, (3) $ 3,458 $ — $ 3,458 $ — $ 500 $ 2,958 Repurchase agreements and term facilities (4) 332,235 — 332,235 332,235 — — Total $ 335,693 $ — $ 335,693 $ 332,235 $ 500 $ 2,958 (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 $0 and $500,000 at December 31, 2016 and 2015 , respectively. (4) The combined fair value of securities and loans pledged against the Company's various term facilities and repurchase agreements was $724.8 million and $521.4 million at December 31, 2016 and 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. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 24 - INCOME TAXES The Company operates in such a manner as to quality as a REIT, under the provisions of the Internal Revenue Code of 1986, as amended (the "Code"); therefore, applicable REIT taxable income is included in the taxable income of its shareholders, to the extent distributed by the Company. To maintain REIT status for federal income tax purposes, the Company is generally required to distribute at least 90% of its REIT taxable income to its shareholders as well as comply with certain other qualification requirements as defined under the Code. As a REIT, the Company is not subject to federal corporate income tax to the extent that it distributes 100% of its REIT taxable income each year. Taxable income from non-REIT activities managed primarily through the Company's taxable REIT subsidiaries is subject to federal, state and local income taxes. The Company's taxable REIT subsidiaries' income taxes are accounted for under the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for the temporary differences between the financial reporting basis and tax basis of assets and liabilities. The following table details the components of income taxes (in thousands): Years Ended December 31, 2016 2015 2014 Provision (benefit) for income taxes: Current: Federal $ 1,733 $ 1,705 $ 6,819 State 966 430 2,505 Total current 2,699 2,135 9,324 Deferred: Federal 6,707 (423 ) (8,808 ) State 1,586 (358 ) (2,383 ) Total deferred 8,293 (781 ) (11,191 ) Income tax provision (benefit) $ 10,992 $ 1,354 $ (1,867 ) A reconciliation of the income tax expense (benefit) based upon the statutory tax rate to the effective income tax rate is as follows for the periods presented (in thousands): Years Ended December 31, 2016 2015 2014 Statutory tax $ (1,103 ) $ 945 $ (1,591 ) State and local taxes, net of federal benefit 1,005 (271 ) (670 ) Permanent adjustments — 149 41 True-up of prior period tax expense (256 ) 530 353 Valuation allowance 11,294 — — Other items 52 1 — $ 10,992 $ 1,354 $ (1,867 ) The components of deferred tax assets and liabilities are as follows (in thousands): December 31, 2016 2015 Deferred tax assets related to: Investment in securities $ — $ 1,657 Federal, state and local loss carryforwards 7,933 11,156 Bad debt for reserves — 208 Reserve on MSR valuation 237 222 Accrued expenses 118 895 Amortization of intangibles — 3,182 Unrealized gains/losses 1,673 1,725 Charitable contribution carryforwards — 6 CLCO carryforwards 5,680 1,826 Foreign exchange gain (loss) — 156 Equity compensation — 34 Partnership investment 2,902 1,965 Total deferred tax assets 18,543 23,032 Valuation allowance (11,294 ) — Total deferred tax assets $ 7,249 $ 23,032 Deferred tax liabilities related to: Unrealized gain (loss) on investments $ — $ (951 ) Amortization of intangibles (1,589 ) (6,319 ) Gain (loss) on sale of investments — (1,389 ) Investment in securities (1,320 ) — Depreciation (85 ) (80 ) Deferred revenue — (2 ) Partnership investment — (1,645 ) Total deferred tax liabilities $ (2,994 ) $ (10,386 ) Deferred tax assets, net $ 4,255 $ 12,646 Effective January 1, 2007, the Company adopted the provisions of FASB's guidance for uncertain tax positions. This implementation did not have an impact on the Company's consolidated balance sheets or consolidated statements of income. The guidance prescribes that a tax position should only be recognized if it is more likely than not that the position will be sustained upon examination by the appropriate taxing authority. A tax position that meets this threshold is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. The Company is required to disclose its accounting policy for classifying interest and penalties, the amount of interest and penalties charged to expense each period as well as the cumulative amounts recorded in the consolidated balance sheets. The Company will continue to classify any tax penalties as other operating expenses and any interest as interest expense. The Company does not have any unrecognized tax benefits that would affect the Company's financial position. At December 31, 2016 , excluding discontinued operations, the Company had $22.1 million of gross federal and $9.1 million of gross state and local net operating tax loss carryforwards ("NOLs"), or $31.2 million (deferred tax asset of $7.9 million ) in total that will begin to expire in 2032. Due to changes in management’s focus regarding the non-core asset classes, the Company determined that it no longer expects to have sufficient forecasted taxable income to completely realize the tax benefits of the deferred tax assets as of December 31, 2016 . Therefore, a gross valuation allowance of $28.5 million (tax effected expense of $11.3 million ) has been recorded against the deferred tax asset as of December 31, 2016 . Management will continue to assess its estimate of the amount of deferred tax assets that the Company will be able to utilize. The Company is subject to examination by the IRS for calendar years including and subsequent to 2013, and is subject to examination by state and local jurisdictions for calendar years including and subsequent to 2010. RCC Residential is currently undergoing an IRS audit for the year 2014. The Company has not executed any agreements with the IRS or any state and/or local taxing jurisdiction to extend a statute of limitations in relation to any previous year. |
QUARTERLY RESULTS
QUARTERLY RESULTS | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY RESULTS | NOTE 25 - QUARTERLY RESULTS The following is a presentation of the quarterly results of operations (unaudited): March 31 June 30 September 30 December 31 (unaudited) (unaudited) (unaudited) (unaudited) (in thousands, except per share data) Year Ended December 31, 2016: Interest income $ 26,962 $ 28,447 $ 27,085 $ 30,124 Interest expense 13,302 13,446 13,653 13,346 Net interest income $ 13,660 $ 15,001 $ 13,432 $ 16,778 Net income (loss) from continuing operations $ 8,852 $ 10,908 $ (34,300 ) $ 3,206 Net income (loss) from discontinued operations 5,168 (6,379 ) (11,321 ) (6,728 ) Net income (loss) 14,020 4,529 (45,621 ) (3,522 ) Net income (loss) allocated to preferred shares (6,048 ) (6,014 ) (6,015 ) (6,014 ) Carrying value in excess of consideration paid for preferred shares 1,611 (111 ) — — Net (income) loss allocable to non-controlling interest, net of taxes 90 60 63 16 Net income (loss) allocable to common shares $ 9,673 $ (1,536 ) $ (51,573 ) $ (9,520 ) Net income (loss) per common share from continuing operations - basic $ 0.15 $ 0.16 $ (1.32 ) $ (0.09 ) Net income (loss) per common share from discontinued operations – basic 0.17 (0.21 ) (0.37 ) (0.22 ) Total net income (loss) per common share - basic $ 0.32 $ (0.05 ) $ (1.69 ) $ (0.31 ) Net income (loss) per common share from continuing operations - diluted $ 0.15 $ 0.16 $ (1.32 ) $ (0.09 ) Net income (loss) per common share from discontinued operations – diluted 0.17 (0.21 ) (0.37 ) (0.22 ) Total net income (loss) per common share - diluted $ 0.32 $ (0.05 ) $ (1.69 ) $ (0.31 ) Year Ended December 31, 2015: Interest income $ 29,734 $ 28,259 $ 30,149 $ 34,332 Interest expense (1) 12,988 13,637 14,562 15,343 Net interest income $ 16,746 $ 14,622 $ 15,587 $ 18,989 Net income (loss) from continuing operations $ 18,109 $ (28,769 ) $ 12,356 $ 9,382 Net income (loss) from discontinued operations (139 ) 6,053 2,366 (2,175 ) Net income (loss) 17,970 (22,716 ) 14,722 7,207 Net income (loss) allocated to preferred shares (6,091 ) (6,115 ) (6,115 ) (6,116 ) Net (income) loss allocable to non-controlling interest, net of taxes (2,477 ) (2,180 ) (1,829 ) (142 ) Net income (loss) allocable to common shares $ 9,402 $ (31,011 ) $ 6,778 $ 949 Net income (loss) per common share from continuing operations - basic $ 0.29 $ (1.12 ) $ 0.14 $ 0.10 Net income (loss) per common share from discontinued operations – basic — 0.18 0.07 (0.07 ) Total net income (loss) per common share - basic $ 0.29 $ (0.94 ) $ 0.21 $ 0.03 Net income (loss) per common share from continuing operations - diluted $ 0.28 $ (1.12 ) $ 0.14 $ 0.10 Net income (loss) per common share from discontinued operations – diluted — 0.18 0.07 (0.07 ) Total net income (loss) per common share - diluted $ 0.28 $ (0.94 ) $ 0.21 $ 0.03 (1) Certain reclassifications have been made to the 2016 and 2015 consolidated financial statements, including the impact of discontinued operations. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 26 - 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 our 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 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. In April 2016, the Company filed a motion to dismiss the amended complaint, which the court denied on October 5, 2016. The parties have now commenced discovery. The Company believes the amended complaint is without merit and intends to defend itself vigorously. In December 2015, Josh Reaves filed a shareholder derivative suit in the Supreme Court of New York alleging that certain current and former officers and directors breached their fiduciary duties by causing the Company to misrepresent certain risks of 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, which also asserts an unjust enrichment claim against the defendants, 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. In April 2016, the parties entered into a stipulation staying this proceeding until such time as the court ruled on the motion to dismiss the Levin action referenced above or certain other triggering events occur. That stay has now been lifted because the motion to dismiss the Levin action was denied. The parties have agreed to discuss whether to continue the stay and other litigation-related scheduling matters. In January 2017, Joseph Greenberg filed a shareholder derivative suit in the United States District Court for the Southern District of New York against certain of the Company's current and former officers and directors, as well as Resource Capital Manager, Inc. and Resource America, Inc. In addition to asserting breach of fiduciary duty and unjust enrichment claims against certain of the Company's current and former officers and directors that are substantially similarly to those at issue in the Reaves action, the Greenberg complaint asserts three new claims on our behalf: (i) a claim under Section 14(a) of the Securities Exchange Act, based on allegations that the defendants caused the Company to issue misleading proxy statements between 2014 and 2015, (ii) a claim against the individual defendants for waste of corporate assets, based on allegations that the defendants caused the Company to pay excessive fees to Resource Capital Manager, Inc., to expend resources in defending against the Levin Action, and to pay improper compensation and bonuses to certain officers and directors, and (iii) a claim against Resource America, Inc. and Resource Capital Manager, Inc. for unjust enrichment, based on allegations that these defendants were unjustly enriched through the payment of excessive management 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. In January 2017, Robert Canoles filed a shareholder derivative suit in the United States District Court for the Southern District of New York against certain of the Company's current and former officers and directors. The Canoles complaint asserts a single claim on behalf of the Company under Section 14(a) of the Securities Exchange Act, based on allegations that the defendants caused the Company to issue misleading proxy statements from 2013 to 2015. 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 its behalf. In January 2017, James M. DeCaro, for the benefit of Charles J. DeCaro, filed a shareholder derivative suit in the United States District Court for the Southern District of New York against certain of the Company's current and former officers and directors, as well as Resource Capital Manager, Inc. and Resource America, Inc. The DeCaro complaint asserts a claim for breach of fiduciary duty, a claim under Section 14(a) of the Securities Exchange Act, and claims for corporate waste and unjust enrichment, all of which are substantially similar to the claims at issue in the Greenberg action. 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 its behalf. In February 2017, Patrick Caito filed a shareholder derivative suit in the Supreme Court of New York against certain of the Company's current and former officers and directors, as well as Resource Capital Manager, Inc. and Resource America, Inc. The complaint asserts breach of fiduciary duty and unjust enrichment claims that are substantially similar to those at issue in the Reaves, Greenberg, and DeCaro actions. 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 its behalf. In February 2017, Mark McKinney filed a shareholder derivative suit in the Southern District of New York against certain of the Company's current and former officers and directors alleging claims under Section 14(a) of the Securities Act and for breach of fiduciary duty and unjust enrichment that are substantially similar to claims asserted in the Reaves, Greenberg, Canoles, DeCaro, and Caito actions. Although Mr. McKinney previously made a demand on the board of directors to investigate certain of these claims, he filed suit before receiving a final response to his demand from the board, alleging that the board “functionally refused” the demand. The Company believes Mr. McKinney’s action was filed prematurely, that his allegations that the demand was wrongfully refused are without merit, and that he lacks standing to assert claims derivatively on its behalf. In March 2017, John Simpson filed a shareholder derivative suit in the Supreme Court of New York against certain of the Company's current and former officers and directors, as well as the Company's Manager and Resource America. The complaint asserts breach of fiduciary duty and unjust enrichment claims that are substantially similar to those at issue in the Reaves, Greenberg, DeCaro and Caito actions. 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 its behalf. In March 2017, Kelly Sue Heckel filed a shareholder derivative suit in the Supreme Court of New York against certain of the Company's current and former officers and directors, as well as the Company's Manager and Resource America. The complaint asserts breach of fiduciary duty and unjust enrichment claims that are substantially similar to those at issue in the Reaves, Greenberg, DeCaro and Caito actions. 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 our behalf. A subsidiary of the Company is the subject of a lawsuit brought in 2014 by the purchaser of a hotel from such subsidiary. The complaint asserts breach of contract claims for non-payment of certain fees and expenses. The Company believes the complaint is without merit and intends to defend itself vigorously. 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. Currently, the only litigation involving PCM is related 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. The reserve for mortgage repurchases and indemnifications was $4.8 million and $3.7 million at December 31, 2016 and 2015 , respectively. 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. At December 31, 2016, outstanding demands for indemnification, repurchase or make whole payments totaled approximately $10.2 million . This amount excludes claims asserted by ResCap Liquidating Trust, as successor to Residential Funding Company, LLC, since these claims were settled by PCM in October 2016. 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 contended that such breaches caused it damages from loan losses and liability to other transferees of the loans. PCM has since settled repurchase claims with two of the four investors including those subject to the litigation initiated by ResCap. The most significant remaining demands against PCM are from Lehman Brothers Holding, Inc. (“LBHI”), which filed suit against PCM and approximately 150 sellers on February 3, 2016 alleging breaches of representations and warranties made on loans sold to LBHI. The repurchase claims asserted by LBHI relate to loans sold to LBHI that were subsequently sold by LBHI to either FNMA or FHLMC. PCM has established a reserve for these asserted claims at December 31, 2016. PCM sold additional loans to LBHI that were subsequently securitized and sold as residential MBS (RMBS) by LBHI. Claims have been asserted by the RMBS investors against LBHI but no amounts have been paid by LBHI and no claims have been asserted by LBHI against PCM. No reserve has been established by PCM at December 31, 2016 for potential future claims related to loans sold to and securitized by LBHI. PCM intends to defend the actions 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. 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 at December 31, 2016 . |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | In November 2016, the board of directors approved the Plan that would allow the Company to focus on making CRE debt investments, exit underperforming non-core asset classes and dispose of certain underperforming legacy CRE loans. Non-real estate businesses identified for sale were the residential mortgage and middle market lending segments as well as the Company's life settlement policy portfolio, or LCF. The Company met all of the criteria to classify the operating results of the residential mortgage and middle market lending segments as discontinued operations and exclude from continuing operations for all periods presented. In addition, the Company transferred the assets and liabilities of LCF and non-performing legacy CRE loans to held for sale in the fourth quarter of 2016. The following table summarizes the operating results of the residential mortgage and middle market lending segments discontinued operations as reported separately as income (loss) from discontinued operations, net of tax for the years ended December 31, 2016 , 2015 and 2014 (in thousands): Years Ended December 31, 2016 2015 2014 REVENUES Interest income: Loans $ 25,325 $ 32,224 $ 11,878 Interest income - Other 50 7 — Total interest income 25,375 32,231 11,878 Interest expense 6,181 6,629 806 Net interest income 19,194 25,602 11,072 Gain (loss) on sale of residential mortgage loans 19,061 13,544 4,815 Fee income 1,221 2,617 2,377 Total revenues 39,476 41,763 18,264 OPERATING EXPENSES Equity compensation expense - related party 939 725 633 General and administrative 30,570 25,350 16,306 Depreciation/Amortization 563 613 379 Provision for loan and lease loss 12,989 8,801 92 Total operating expenses 45,061 35,489 17,410 (5,585 ) 6,274 854 OTHER INCOME (EXPENSE) Net realized gain/(loss) on investment securities available-for-sale and loans (11,850 ) 221 1,384 Total other income (expense) (11,850 ) 221 1,384 INCOME (LOSS) FROM DISCONTINUED OPERATIONS BEFORE TAXES (17,435 ) 6,495 2,238 Income Tax Benefit (Expense) — (391 ) 345 NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAXES (17,435 ) 6,104 2,583 Gain (loss) from disposal of discontinued operations (1,825 ) — — TOTAL INCOME (LOSS) FROM DISCONTINUED OPERATIONS $ (19,260 ) $ 6,104 $ 2,583 The assets and liabilities of business segments classified as discontinued operations and other assets and liabilities classified as held for sale are reported separately in the accompanying consolidated financial statements and are summarized as follows at December 31, 2016 and 2015 (in thousands): December 31, 2016 2015 ASSETS Interest receivable $ 312 $ 2,515 Loans held for sale, at fair value 346,761 471,720 Property available for sale 125 — Derivatives, at fair value 3,773 2,719 Intangible assets (1) 14,466 20,912 Other assets (2)(3)(4) 17,873 13,042 Total assets held for sale $ 383,310 $ 510,908 LIABILITIES Accounts payable and other liabilities $ 8,398 $ 6,427 Management fee payable - related party 138 — Accrued interest expense 203 243 Borrowings (5) 133,139 273,575 Derivatives, at fair value 685 482 Accrued tax liability — 5,679 Total liabilities held for sale $ 142,563 $ 286,406 (1) Includes mortgage services rights ("MSRs") with a fair value of $14.4 million and $20.8 million at December 31, 2016 and 2015 , respectively. MSRs are recorded at fair value using a discounted cash flow approach to estimate the fair value utilizing the valuation services of an independent third party. The key assumptions used in the estimation of fair value include prepayment speeds, discount rates, default rates, cost to service, contractual servicing fees and escrow earnings. (2) Includes an income tax benefit of $0 and $391,000 allocated to discontinued operations at December 31, 2016 and 2015 , respectively. (3) A valuation allowance against discontinued operations' tax benefits as of December 31, 2015 is included in the valuation allowance recorded in continuing operations. (4) Includes the Company's investment in life settlement contracts of $5.8 million at December 31, 2016 which were transferred to held for sale in the fourth quarter of 2016. (5) Borrowings at December 31, 2016 is entirely related to PCM. The following table summarizes the loans held for sale in the residential mortgage and middle market lending segments as well as the non-performing legacy CRE loans transferred to held for sale in the fourth quarter of 2016. The loans held for sale are carried at the lower of cost or market ("LCOM") (in thousands): Loan Description Quantity Amortized Cost Fair Value At December 31, 2016: Legacy CRE whole loans (1) 8 $ 158,192 $ 158,178 Mezzanine loans (2) 1 — — Middle market loans (3)(4) 7 52,382 40,443 Residential mortgage loans (5)(6)(7) 529 148,140 148,140 Total loans 545 $ 358,714 $ 346,761 At December 31, 2015: Middle market loans (8) 32 $ 379,452 $ 375,514 Residential mortgage loans (9) 333 96,206 96,206 Total loans 365 $ 475,658 $ 471,720 (1) Third party appraisals were obtained on six of the legacy CRE whole loans and, as a result, specific provisions of $8.1 million were recorded prior to the loans being reclassified to held for sale status. Additional provisions in the amount of $7.7 million were recognized after the transfer of loans to held for sale to write down the loans to LCOM. (2) Includes a mezzanine loan with a par value of $38.1 million that was acquired at a fair value of zero as a result of the liquidation of RREF CDO 2006-1 in April 2016 and RREF 2007-1 in November 2016. The mezzanine loan is comprised of two tranches, with maturity dates of November 2016 and September 2021. (3) A provision of $2.6 million was recognized on the remaining middle market loan based upon receiving an updated third party valuation. In addition, a provision of $819,000 was recognized to write down the syndicated middle market loans to LCOM. (4) The Company's middle market loans are in several industry categories including: healthcare, education and childcare - 24.4% , diversified/conglomerate service - 17.2% , insurance - 17.1% , cargo transport - 14.2% , beverage, food and tobacco - 12.5% , buildings and real estate - 9.8% and hotels, motels, Inns and gaming - 4.8% . (5) The fair value option was elected for residential mortgage loans, held for sale. (6) The Company's residential mortgage loan portfolio is comprised of both agency loans and non-agency jumbo loans. The fair values of the 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 jumbo loan portfolio are generally classified as Level 3 in the fair value hierarchy, as those values are generally based upon valuation techniques that utilize unobservable inputs that reflect the assumptions that a market participant would use in pricing those assets. (7) At December 31, 2016 , approximately 39.2% % of the Company's residential mortgage loans were originated in Georgia, 16.2% in California, 14.6% in Utah, 5.9% in Virginia and 5.9% in Florida. (8) At December 31, 2015 , approximately 12.8% and 12.4% , respectively, of the Company's middle market loan portfolio was concentrated in the collective industry groupings of diversified/conglomerate service and healthcare, education and childcare. (9) At 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. Debt Facilities Associated with Discontinued Operations Senior Secured Revolving Credit Facility On September 18, 2014, the Company's wholly-owned subsidiary, Northport LLC, closed a syndicated senior secured revolving credit facility with JP Morgan as the agent bank to finance the origination of middle market and syndicated loans. The last availability under this facility was $225.0 million before the Company sold its interest in Northport LLC on August 4, 2016 and the Senior Secured Revolving Credit Agreement was assumed by the purchaser. 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. Over the course of five amendments to modify the terms, the most recent of which was entered into in September 2015, the maximum borrowing amount was reduced from the original $285.0 million to $30.0 million . In July 2016, the Company elected to terminate the 2014 Facility. Residential Mortgage Financing Agreements In February 2011, PCM entered into a master repurchase agreement (the "New Century Facility") with New Century Bank d/b/a Customer's Bank ("New Century") to finance the acquisition of residential mortgage loans. Over the course of ten amendments to modify the terms, the most recent of which was executed in August 2016, the maximum borrowing amount declined to $0 . In December 2016, the Company elected to terminate the New Century Facility. 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. The Wells Fargo Facility was executed with an original maximum amount of $100.0 million an interest rate of one-month LIBOR plus applicable margins of 3.00% for jumbo loans outstanding over 90 days, 2.50% for other jumbo loans and 2.38% for agency loans and a maturity date in July 2015. Over the course of nine amendments, the most recent of which was executed in October 2016, the maximum amount was modified to $150.0 million and the maturity date was modified to November 2017. The Wells Fargo Facility contains certain financial covenants and certain customary events of default and remedies for default. In November 2016, PCM entered into a repurchase agreement (the "First Tennessee Facility") with First Tennessee Bank ("First Tennessee") to finance the origination and acquisition of residential mortgage loans. The First Tennessee Facility was executed with a maximum amount of $25.0 million , an interest rate of one-month LIBOR plus a 2.75% margin and a maturity date in September 2017 . The First Tennessee Facility contains certain financial covenants and certain customary events of default and remedies for default. PCM was in compliance with all financial covenants under the agreements at December 31, 2016 . |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 28 - SEGMENT REPORTING The Company has four reportable operating segments: Commercial Real Estate Debt Investments, Commercial Finance, Residential Mortgage Lending and Corporate & Other. The reportable operating segments are business units that offer different products and services. The Commercial Real Estate Debt Investments 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 syndicated corporate loans, syndicated corporate loan-related securities and direct financing leases. The Residential Mortgage Lending operating segment includes the Company’s activities and operations related to the investment in RMBS, only the continuing operations of this segment are presented here. The Corporate & Other segment includes corporate level interest income, interest expense, inter-segment eliminations not allocable to any particular operating segment, 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. No single customer represents 10% or more of the consolidated revenues. Consequently, management believes that the Company’s revenues are appropriately diversified. Commercial Real Estate Debt Investments Commercial Finance Residential Mortgage Lending Corporate & Other (1)(2)(3) Total For the Year Ended December 31, 2016: Interest income: External customers $ 98,588 $ 8,569 $ 456 $ — $ 107,613 Other 43 4,935 — 27 5,005 Total interest income 98,631 13,504 456 27 112,618 Interest expense 33,444 (6 ) — 20,309 53,747 Net interest income 65,187 13,510 456 (20,282 ) 58,871 Other income from external customers — 3,736 — 73 3,809 Total revenues 65,187 17,246 456 (20,209 ) 62,680 Less: Segment operating expenses 340 1,337 84 14,264 16,025 General and administrative 2,246 1,141 424 11,386 15,197 Depreciation and amortization — 1,432 — 134 1,566 Impairment losses 20,662 5,567 241 — 26,470 Provision (recovery) for loan and lease losses 18,167 (402 ) — — 17,765 Equity in earnings of unconsolidated entities (1,025 ) (4,948 ) — — (5,973 ) Other (income) expense (2,530 ) (3,363 ) 63 (2,198 ) (8,028 ) Income (loss) from continuing operations before taxes 27,327 16,482 (356 ) (43,795 ) (342 ) Income tax (expense) benefit — (980 ) (9,889 ) (123 ) (10,992 ) Net income (loss) from continuing operations $ 27,327 $ 15,502 $ (10,245 ) $ (43,918 ) $ (11,334 ) Commercial Real Estate Debt Investments Commercial Finance Residential Mortgage Lending Corporate & Other (1)(2)(3) Total For the Year Ended December 31, 2015: Interest income: External customers $ 100,203 $ 17,479 $ 540 $ — $ 118,222 Other 89 4,072 — 91 4,252 Total interest income 100,292 21,551 540 91 122,474 Interest expense 33,775 2,818 111 19,826 56,530 Net interest income 66,517 18,733 429 (19,735 ) 65,944 Other income from external customers — 4,865 — 66 4,931 Total revenues 66,517 23,598 429 (19,669 ) 70,875 Less: Segment operating expenses 130 1,507 1,136 13,016 15,789 General and administrative 2,263 3,469 937 9,677 16,346 Depreciation and amortization — 4,118 — 127 4,245 Impairment losses — 372 — — 372 Provision (recovery) for loan and lease losses 37,736 3,352 — — 41,088 Equity in earnings of unconsolidated entities 277 (2,608 ) — (57 ) (2,388 ) Other (income) expense 216 (8,582 ) (4,710 ) (3,934 ) (17,010 ) Income (loss) from continuing operations before taxes 25,895 21,970 3,066 (38,498 ) 12,433 Income tax (expense) benefit 37 1,001 (1,949 ) (443 ) (1,354 ) Net income (loss) from continuing operations $ 25,932 $ 22,971 $ 1,117 $ (38,941 ) $ 11,079 Commercial Real Estate Debt Investments Commercial Finance Residential Mortgage Lending Corporate & Other (1)(2)(3) Total For the Year Ended December 31, 2014: Interest income: External customers $ 76,619 $ 29,228 $ 649 $ — $ 106,496 Other 1 6,556 — 228 6,785 Total interest income 76,620 35,784 649 228 113,281 Interest expense 23,958 8,182 173 11,180 43,493 Net interest income 52,662 27,602 476 (10,952 ) 69,788 Other income from external customers 8,441 6,011 — 66 14,518 Total revenues 61,103 33,613 476 (10,886 ) 84,306 Less: Segment operating expenses 5,443 3,071 824 15,622 24,960 General and administrative 2,088 4,130 721 7,766 14,705 Depreciation and amortization 484 1,800 — 74 2,358 Impairment losses — — — — — Provision (recovery) for loan and lease losses (3,808 ) 5,469 — 51 1,712 Equity in earnings of unconsolidated entities (4,364 ) (478 ) — 75 (4,767 ) Other (income) expense (8,003 ) 1,500 — (5,877 ) (12,380 ) Income (loss) from continuing operations before taxes 69,263 18,121 (1,069 ) (28,597 ) 57,718 Income tax (expense) benefit 300 1,699 411 (543 ) 1,867 Net income (loss) from continuing operations $ 69,563 $ 19,820 $ (658 ) $ (29,140 ) $ 59,585 (1) Includes interest expense for the Convertible Senior Notes of $17.7 million , $17.4 million , and $8.8 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. (2) Includes interest expense for the Unsecured Junior Subordinated Debentures of $2.6 million , $2.4 million , and $2.4 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. (3) Includes general corporate expenses and inter-segment eliminations not allocable to any particular operating segment. The following table presents total investments in unconsolidated entities and total assets by segment for the periods indicated (in thousands): Commercial Real Estate Debt Investments Commercial Finance Residential Mortgage Lending Corporate & Other (1) Total Investments in unconsolidated entities December 31, 2016 $ 16,953 $ 69,418 $ — $ 1,548 $ 87,919 Total Assets (2) December 31, 2016 $ 1,624,779 $ 160,414 $ 12,460 $ 15,020 $ 1,812,673 Investments in unconsolidated entities December 31, 2015 $ 6,465 $ 42,017 $ — $ 1,548 $ 50,030 Total Assets (2) December 31, 2015 $ 1,907,945 $ 306,654 $ 1,860 $ 16,313 $ 2,232,772 (1) Includes assets not allocable to any particular operating segment. (2) Total assets does not include $240.9 million and $532.8 million of assets attributable to discontinued operations, of which, $22.9 million and $21.2 million of cash from continuing operations is included at December 31, 2016 and 2015 , respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 29 - SUBSEQUENT EVENTS The Company has evaluated subsequent events through the filing of this report and determined that there have not been any events that have occurred that would require adjustments to or disclosures in the consolidated financial statements, except the following: The Company agreed to an extension of the Wells CMBS Term Repurchase Facility from January 31, 2017 to February 28, 2017 then extended the facility again to March 31, 2017 as the Company continues to negotiate a longer term agreement. In addition, an updated waiver of violation letter was provided that waives certain financial covenants through March 31, 2017. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II Valuation and Qualifying Accounts | SCHEDULE II Resource Capital Corp. Valuation and Qualifying Accounts (in thousands) Balance at Charge to Loans Charged off/Recovered Deconsolidation of VIEs Transfer to Loans Held For Sale Balance at Allowance for loan and lease loss: Year ended December 31, 2016 $ 43,586 $ 17,765 $ 402 $ (41,696 ) $ (15,763 ) $ 4,294 Year ended December 31, 2015 $ 4,613 $ 41,087 $ (2,175 ) $ 61 $ — $ 43,586 Year ended December 31, 2014 $ 13,807 $ 1,712 $ (10,906 ) $ — $ — $ 4,613 |
Schedule III - Real Estate and
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2016 | |
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
SCHEDULE III Real Estate and Accumulated Depreciation | SCHEDULE III Resource Capital Corp. Real Estate and Accumulated Depreciation December 31, 2016 (in thousands) 2016 2015 2014 Real Estate Balance, beginning of year $ — $ — $ 32,380 Additions: Improvements — — 25 — — 25 Deductions: Cost of real estate sold — — (32,405 ) Property available-for-sale — — — Balance, end of year $ — $ — $ — Accumulated Depreciation Balance, beginning of year $ — $ — $ 2,602 Additions: Depreciation expense — — 433 — — 433 Deductions: Sales — — (3,035 ) Balance, end of year $ — $ — $ — |
Schedule IV Mortgage Loans on R
Schedule IV Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2016 | |
Mortgage Loans on Real Estate [Abstract] | |
SCHEDULE IV Mortgage Loans on Real Estate | SCHEDULE IV Resource Capital Corp. Mortgage Loans on Real Estate At December 31, 2016 (in thousands) Type of Loan/ Borrower Description / Location Interest Payment Rates Final Maturity Date Periodic Payment (1) Prior Liens (2) Face Amount of Loans (3) Net Carrying Amount of Loans Principal Amount of Loans subject to delinquent principal or interest Whole Loans: Borrower A Multi-Family/ LIBOR FLOOR 0.25% + 4.50% 7/5/2019 I/O — $ 75,575 $ 75,400 $ — Borrower B Retail/Various LIBOR FLOOR 0.25% + 5.24% 12/5/2020 I/O — 66,615 66,065 — Borrower C Multi-Family/ LIBOR FLOOR 0.20% + 4.60% 9/5/2020 I/O — 58,998 58,625 — All other Whole Loans individually less than 3% 1,094,738 1,086,188 — Total Whole Loans $ 1,295,926 (4) $ 1,286,278 $ — Legacy CRE Loans: Borrower A Hotel/Studio City, CA 0.50% 2/5/2017 I/O $ 67,459 $ 61,400 $ 67,459 All Other Mezzanine Loans individually less than 3% 127,232 96,778 — Total Legacy CRE Loans $ 194,691 $ 158,178 $ 67,459 Mezzanine Loans: All Other Mezzanine Loans individually less than 3% $ 38,072 $ — $ 38,072 Total Mezzanine Loans $ 38,072 $ — $ 38,072 Total Loans $ 1,528,689 $ 1,444,456 (5) $ 105,531 Explanatory Notes: (1) IO = interest only (2) Represents only Third Party Liens. (3) Does not include unfunded commitments. (4) All Whole Loans are current with respect to principal and interest payments. (5) The net carrying amount of loans includes an allowance for loan loss of $3.8 million at December 31, 2016 , all allocated to Whole Loans. |
SUMMARY OF SIGNIFICANT ACCOUN42
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 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"). The consolidated financial statements include the accounts of the Company. All inter-company transactions and balances have been eliminated. Variable Interest Entities A VIE is defined as an entity in which equity investors (i) do not have a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional financial support from other parties. A VIE is required to be consolidated by its primary beneficiary, which is defined as the party that (a) has the power to control the activities that most significantly impact the VIE's economic performance and (b) has the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company considers the following criteria in determining whether an entity is a VIE: 1. The equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by any parties, including the equity holders. 2. The equity investors lack one or more of the following essential characteristics of a controlling financial interest. a. The direct ability to make decisions about the entity's activities through voting rights or similar rights. b. The obligation to absorb the expected losses of the entity. c. The right to receive the expected residual returns of the entity. 3. The equity investors have voting rights that are not proportionate to their economic interests, and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. In determining whether the Company is the primary beneficiary of a VIE, the Company reviews governing contracts, formation documents and any other contractual arrangements for any relevant terms and determines the activities that have the most significant impact on the VIE and who has the power to direct those activities. The Company also looks for kick-out rights, protective rights and participating rights as well as any financial or other support provided to the VIE and the reason for that support, and the terms of any explicit or implicit arrangements that may require the Company to provide future support. The Company then makes a determination based on its power to direct the most significant activities of the VIE and/or a financial interest that is potentially significant. The Company continually reassesses whether it should be deemed to be the primary beneficiary of its VIEs. Voting Interest Entities A voting interest entity is an entity in which the total equity investment at risk is sufficient to enable it to finance its activities independently and the equity holders have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the losses of the entity and the right to receive the residual returns of the entity. The usual condition for a controlling financial interest in a voting interest entity is ownership of a majority voting interest. If the Company has a majority voting interest in a voting interest entity, the entity will generally be consolidated. The Company does not consolidate a voting interest entity if there are substantive participating rights by other parties and/or kick-out rights by a single party or through a simple majority vote. The Company performs on-going reassessments of whether entities previously evaluated under the voting interest framework have become VIEs, based on certain events, and therefore subject to the VIE consolidation framework. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates affecting the accompanying consolidated financial statements include the net realizable and fair values of the Company's investments and derivatives, the estimated life used on investments to calculate depreciation, amortization and accretion of premiums and discounts, respectively, provisions for loan losses, valuation of servicing assets and the disclosure of contingent liabilities. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and all highly liquid investments with original maturities of three months or less at the time of purchase. |
Investment in Unconsolidated Entities | Investment in Unconsolidated Entities The Company's non-controlling investments in unconsolidated entities are included in investments in unconsolidated entities on the consolidated balance sheets and may be accounted for under the equity method or the cost method. Under the equity method, capital contributions, distributions, profits and losses of the entities are allocated in accordance with the terms of the entities' operating agreements. Such allocations may differ from the stated percentage interests, if any, as a result of preferred returns and allocation formulas as described in the entities' operating agreements. For non-controlling investments in unconsolidated entities qualifying for equity method treatment with substantive profit-sharing arrangements, the hypothetical liquidation at book value ("HLBV") method may be used for recognizing earnings. Under the HLBV method, earnings are calculated and recognized based on the change in how the unconsolidated entity would allocate and distribute its cash if it were to liquidate the carrying value of its assets and liabilities on the beginning and end dates of the earnings period; excluding contributions made or distributions received. The Company may account for an investment that does not qualify for equity method accounting using the cost method. Under the cost method, the Company records dividend income when declared to the extent it is not considered a return of capital, which is recorded as a reduction of the cost of the investment. |
Investment Securities | Investment Securities The Company classifies its investment portfolio as trading or available-for-sale. The Company, from time to time, may sell any of its investments due to changes in market conditions or in accordance with its investment strategy. The Company’s investment securities, trading and investment securities available-for-sale are reported at fair value. To determine fair value, the Company uses an independent third-party valuation firm utilizing data available in the market as well as appropriate prepayment, default and recovery rates. These valuations are validated utilizing dealer quotes or bids or internal models. If there is a material difference between the value indicated by the third-party valuation firm and the dealer quote, bid or internal models, the Company will evaluate the difference, which could result in an updated valuation from the third-party or a revised dealer quote. Based on a prioritization of inputs used in valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. Any changes in fair value to the Company's investment securities, trading are recorded in the Company’s consolidated statements of operations as net realized and unrealized gain (loss) on investment securities, trading. Any changes in fair value to the Company's investment securities available-for-sale are recorded in the Company’s consolidated balance sheets as a component of accumulated other comprehensive income (loss) in stockholders' equity. On a quarterly basis, the Company evaluates its available-for-sale investments for other-than-temporary impairment. An available-for-sale investment is impaired when its fair value has declined below its amortized cost basis. An impairment is considered other-than-temporary when the amortized cost basis of the investment or some portion thereof will not be recovered. The determination of other-than-temporary impairment is a subjective process, and different judgments and assumptions could affect the timing of loss realization. The Company reviews its portfolios and makes other-than-temporary impairment determinations at least quarterly. The Company considers the following factors when determining if there is an other-than-temporary impairment on a security: • the length of time the market value has been less than amortized cost; • the severity of the impairment; • the expected loss of the security as generated by a third-party valuation model; • original and current credit ratings from the rating agencies; • underlying credit fundamentals of the collateral backing the securities; • whether, based upon the Company’s intent, it is more likely than not that the Company will sell the security before the recovery of the amortized cost basis; and • third-party support for default, for recovery, prepayment speed and reinvestment price assumptions. Where credit quality is believed to be the cause of the other-than-temporary impairment, that component of the impairment is recognized as an impairment loss in the consolidated statements of operations. Where other market components are believed to be the cause of the impairment, that component of the impairment is recognized as other comprehensive loss. The Company performs an on-going review of third-party reports and updated financial data on the underlying properties in order to analyze current and projected security performance. Rating agency downgrades are considered with respect to the Company’s income approach when determining other-than-temporary impairment and, when inputs are subjected to testing for economic changes within possible ranges, the resulting projected cash flows reflect a full recovery of principal and interest indicating no impairment. Investment security transactions are recorded on the trade date. Realized gains and losses on investment securities are determined on the specific identification method. |
Investment Interest Income Recognition | Investment Interest Income Recognition Interest income on the Company’s mortgage-backed and other asset-backed securities is accrued using the effective yield method based on the actual coupon rate and the outstanding principal amount of the underlying mortgages or other assets. Premiums and discounts are amortized or accreted into interest income over the expected lives of the securities also using the effective yield method, adjusted for the effects of estimated prepayments. For an investment purchased at par, the effective yield is the contractual interest rate on the investment. If the investment is purchased at a discount or at a premium, the effective yield is computed based on the contractual interest rate increased for the accretion of a purchase discount or decreased for the amortization of a purchase premium. The effective yield method requires the Company to make estimates of future prepayment rates for its investments that can be contractually prepaid before their contractual maturity date so that the purchase discount can be accreted, or the purchase premium can be amortized, over the estimated remaining life of the investment. The prepayment estimates that the Company uses directly impact the estimated remaining lives of its investments. Actual prepayment estimates are reviewed as of each quarter end or more frequently if the Company becomes aware of any material information that would lead it to believe that an adjustment is necessary. If prepayment estimates are incorrect, the amortization or accretion of premiums and discounts may have to be adjusted, which would have an impact on future income. To the extent that the Company invests in securities qualifying as beneficial interests in securitized financial assets, the Company will recognize the excess of all cash flows attributable to the beneficial interest estimated at the acquisition/transaction date over the initial investment (the accretable yield) as interest income over the life of the beneficial interest using the effective yield method. |
Loans | Loans The Company acquires loans through direct origination, through the acquisition of participations in commercial real estate loans and corporate leveraged loans in the secondary market and through syndications of newly originated loans. Loans are held for investment; therefore, the Company initially records them at their acquisition price, and subsequently, accounts for them based on their outstanding principal plus or minus unamortized premiums or discounts. The Company may sell a loan held for investment where the credit fundamentals underlying a particular loan have changed in such a manner that the Company's expected return on investment may decrease. Once the determination has been made by the Company that it no longer will hold the loan for investment, the Company identifies these loans as loans held for sale. Any credit-related impairment considerations prior to the transfer to loans held for sale are accounted for through the allowance for loan and lease losses. |
Loan Interest Income Recognition | Loan Interest Income Recognition Interest income on loans includes interest at stated rates adjusted for amortization or accretion of premiums and discounts. Premiums and discounts are amortized or accreted into income using the effective yield method. If a loan with a premium or discount is prepaid, the Company immediately recognizes the unamortized portion as a decrease or increase to interest income. In addition, the Company defers loan origination fees and loan origination costs and recognizes them over the life of the related loan against interest income using the straight line method which approximates the effective yield method. |
Allowance for Loan Loss | Allowance for Loan Loss The Company maintains an allowance for loan loss. For the Company's CRE and syndicated corporate loan portfolios, loans held for investment are first individually evaluated for impairment to determine whether a specific reserve is required. Loans that are not determined to be impaired individually are then evaluated for impairment as a homogeneous pool of loans with substantially similar characteristics so that a general reserve can be established, if needed. The reviews are performed at least quarterly. The Company considers a loan to be impaired if one of two conditions exists. The first condition is if, based on current information and events, management believes that a loss event has occurred which makes it probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The second condition is if the loan is deemed to be a troubled-debt restructuring ("TDR") where a concession has been given to a borrower in financial difficulty. These TDRs may not have an associated specific loan loss allowance if the principal and interest amount is considered recoverable based on current market conditions, expected collateral performance and/or guarantees made by the borrowers. When a loan is impaired under either of these two conditions, the allowance for loan losses is increased by the amount of the excess of the amortized cost basis of the loan over its fair value. Fair value may be determined based on the present value of estimated cash flows; on market price, if available; or on the fair value of the collateral less estimated disposition costs. When a loan, or a portion thereof, is considered uncollectible and pursuit of collection is not warranted, the Company will record a charge-off or write-down of the loan against the allowance for loan losses. An impaired loan may remain on accrual status during the period in which the Company is pursuing repayment of the loan; however, the loan would be placed on non-accrual status at such time as (i) management believes that scheduled debt service payments will not be met within the coming 12 months; (ii) the loan becomes 90 days delinquent; (iii) management determines the borrower is incapable of, or has ceased efforts toward, curing the cause of the impairment; or (iv) the net realizable value of the loan’s underlying collateral approximates the Company’s carrying value for such loan. While on non-accrual status, the Company recognizes interest income only when an actual payment is received if a credit analysis supports the borrower's principal repayment capacity. When a loan is placed on non-accrual, previously accrued interest is reversed from interest income. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed. All impaired loans are carried at fair value and are measured on a quarterly basis. The fair value is determined using unobservable inputs including estimates of selling costs (Level 3). |
Long-Lived and Intangible Assets | Long-Lived and Intangible Assets Long-lived assets and certain identifiable intangibles to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. The review of recoverability is based on an estimate of the future undiscounted cash flows (excluding interest charges) expected to result from the long-lived asset’s use and eventual disposition. If impairment has occurred, the loss will be measured as the excess of the carrying amount of the asset over the fair value of the asset. |
Assets and Liabilities Held for Sale | Assets and Liabilities Held for Sale The Company classifies long-lived assets or a disposal group to be sold as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the asset or the disposal group; the asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; an active program to locate a buyer and other actions required to complete the plan to sell the asset or disposal group have been initiated; the sale of the asset or disposal group is probable, and transfer of the asset or disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond the Company's control extend the period of time required to sell the asset or disposal group beyond one year; the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A long-lived asset or disposal group that is classified as held for sale is initially measured at the lower of its cost or fair value less any costs to sell. Any loss resulting from the transfer of long-lived assets or disposal groups to assets held for sale is recognized in the period in which the held for sale criteria are met. Legacy CRE loans included as assets held for sale were measured at the lower of cost or fair value on the date the legacy CRE loan was transferred to assets held for sale. Any specific loan loss reserves for legacy CRE loans transferred to assets held for sale were measured and charged off on the date of transfer, establishing a new cost basis for the loans. The fair values of assets held for sale are assessed each reporting period and changes in such fair values are reported as an adjustment to the carrying value of the asset or disposal group with an offset to the income statement line item "Fair value adjustments on financial assets held for sale" to the extent that any subsequent changes in fair value do not exceed the cost basis of the asset or disposal group. Additionally, upon determining that a long-lived asset or disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group, if material, in the line items assets or liabilities held for sale in the consolidated balance sheets. See Note 27 . |
Discontinued Operations | Discontinued Operations The results of operations of a component or a group of components of the Company that either has been disposed of or is classified as held for sale is reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) for the Company includes net income and the change in net unrealized gains (losses) on available-for-sale securities, derivative instruments used to hedge exposure to interest rate fluctuations and protect against declines in the market value of assets resulting from general market trends as well as translation of currency as a result of the Company's investment in the equity of foreign CDOs. |
Income Taxes | Income Taxes The Company operates in such a manner as to qualify as a REIT under the provisions of the Internal Revenue Code of 1986, as amended (the "Code"); therefore, applicable REIT taxable income is included in the taxable income of its shareholders, to the extent distributed by the Company. To maintain REIT status for federal income tax purposes, the Company is generally required to distribute at least 90% of its REIT taxable income to its shareholders as well as comply with certain other qualification requirements as defined under the Code. As a REIT, the Company is not subject to federal corporate income tax to the extent that it distributes 100% of its REIT taxable income each year. Taxable income, from non-REIT activities managed through the Company's TRSs, are subject to federal, state and local income taxes. The Company's TRS' income taxes are accounted for under the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for the temporary differences between the financial reporting basis and tax basis of assets and liabilities. In addition, Apidos CDO I, Apidos CDO III, Apidos Cinco CDO, Harvest CLO VII, Harvest CLO VIII, and Harvest CLO XV Designated Activity Company ("Harvest CLO XV"), the Company's foreign TRSs, are organized as exempted companies incorporated with limited liability under the laws of the Cayman Islands and, with respect to Harvest CLO VII, Harvest CLO VIII, and Harvest CLO XV, Ireland, and are generally exempt from federal and state income tax at the corporate level because their activities in the United States are limited to trading in stock and securities for their own account. Therefore, despite their status as TRSs, they generally will not be subject to corporate tax on their earnings and no provision for income taxes is required. However, because they are either controlled foreign corporations or passive foreign investment companies (in which the Company has made a Qualified Electing Fund election), the Company will generally be required to include its share of current taxable income from the foreign TRSs in its calculation of REIT taxable income. The Company accounts for taxes assessed by a governmental authority that is directly imposed on a revenue-producing transaction (e.g., sales, use, value added) on a net (excluded from revenue) basis. |
Stock Based Compensation | Stock Based Compensation Issuances of restricted stock and options are accounted for using the fair value based methodology whereby the fair value of the award is measured on the grant date and expensed monthly to equity compensation expense-related party on the consolidated statements of operations with a corresponding entry to additional paid-in capital. For issuances to the Company's Manager and to non-employees, the unvested stock and options are adjusted quarterly to reflect changes in fair value as performance under the agreement is completed. For issuances to the Company's eight non-employee directors or to any direct employees of the Company's subsidiaries, the amount is not remeasured under the fair value-based method. The compensation for each of these issuances is amortized over the service period and included in equity compensation expense. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The Company calculates basic income per share by dividing net income for the period by the weighted-average number of shares of its common stock, including vested restricted stock and participating securities, outstanding for that period. Diluted income per share takes into account the effect of dilutive investments, such as stock options, unvested restricted stock and convertible debt, but uses the average share price for the period in determining the number of incremental shares that are to be added to the weighted-average number of shares outstanding. |
Derivative Instruments | Derivative Instruments The Company's policies permit it to enter into derivative contracts, including interest rate swaps and interest rate caps, to add stability to its interest expense and to manage its exposure to interest rate movements or other identified risks. The Company has designated these transactions as cash flow hedges. The contracts or hedge instruments are evaluated at inception and at subsequent consolidated balance sheets dates to determine if they qualify for hedge accounting which requires that the Company recognize all derivatives on the consolidated balance sheets at fair value. The Company records changes in the estimated fair value of the derivative in other comprehensive income to the extent that it is effective. Any ineffective portion of a derivative's change in fair value is immediately recognized in earnings. The Company may also enter into forward currency contracts. Forward contracts represent future commitments to either purchase or to deliver loans, securities or a quantity of a currency at a predetermined future date, at a predetermined rate or price and are used to manage interest rate risk on loan commitments and mortgage loans held for sale as well as currency risk with respect to the Company's long positions in foreign currency-denominated investment securities. |
Linked Transactions | Linked Transactions Prior to January 1, 2015, if the Company financed the purchase of securities with repurchase agreements with the same counterparty from whom the securities were purchased and both transactions were entered into contemporaneously or in contemplation of each other, the transactions were presumed not to meet sale accounting criteria and the Company accounted for the purchase of such securities and the repurchase agreement on a net basis and recorded a forward purchase commitment to purchase securities (each, a "Linked Transaction") at fair value on the Company's consolidated balance sheets in the line item linked transactions, at fair value. Changes in the fair value of the assets and liabilities underlying the linked transactions and associated interest income and interest expense were reported as unrealized (loss) gain and net interest income on linked transactions, net on the Company's consolidated statements of operations. Due to a change in accounting guidance, as of January 1, 2015, the concept of linked transactions no longer exists. |
Recent Accounting Standards | Recent Accounting Standards In January 2017, the Financial Accounting Standards Board, or FASB, issued guidance to add the SEC Staff Announcement "Disclosure of the Impact that Recently Issued Accounting Standards will have on the Financial Statements of a Registrant when such Standards are Adopted in a Future Period (in accordance with Staff Accounting Bulletin Topic 11.M)." The announcement applies to the May 2014 guidance on revenue recognition from contracts with customers, the February 2016 guidance on leases and the June 2016 guidance on how credit losses for most financial assets and certain other instruments that are measured at fair value through net income are determined. The announcement provides the SEC staff view that a registrant should evaluate certain recent accounting standards that have not yet been adopted to determine appropriate financial statement disclosures about the potential material effects of those recent accounting standards. If a registrant does not know or cannot reasonably estimate the impact that adoption of the recent accounting standards referenced in this announcement is expected to have on the financial statements, then the registrant should make a statement to that effect and consider the additional qualitative financial statement disclosures to assist the reader in assessing the significance of the impact that the recent accounting standards will have on the financial statements of the registrant when adopted. The Company has not completed its assessment under the new guidance on revenue recognition from contracts with customers, however, it expects to identify similar performance obligations as currently identified; therefore, the Company does not expect a material impact upon the application of this guidance. The Company is currently evaluating the impact of this guidance on leases and the measurement of credit losses on financial instruments and its impact on its consolidated financial statements. In January 2017, the FASB issued guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions, or disposals, of assets or businesses. The guidance provides a screen to determine when an integrated set of assets and activities (a "set") is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired, or disposed of, is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, the guidance requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output; and remove the evaluation of whether a market participant could replace missing elements. The guidance also narrows the definition of an output to: the result of inputs and processes applied to those inputs that provide goods or services to customers, investment income (such as dividends or interest), or other revenues. The guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within that reporting period. Early adoption is permitted only for certain transactions. The Company is in the process of evaluating the impact of this new guidance. In November 2016, the FASB issued guidance to reduce the diversity in practice of the classification and presentation of changes in restricted cash on the statement of cash flows. The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. The guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within that reporting period. Early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance. In October 2016, the FASB issued guidance to amend how a reporting entity that is the single decision maker of a VIE should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. The guidance requires that if, under the first characteristic of a primary beneficiary, the reporting entity determines that it is the single decision maker of a VIE, then the reporting entity is required to include all of its direct variable interests in a VIE and, on a proportionate basis, its indirect variable interests in a VIE held through related parties, including related parties that are under common control with the reporting entity, in determining whether it satisfies the second characteristic of a primary beneficiary, the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. If the reporting entity does not satisfy the second characteristic of a primary beneficiary after performing the assessment, the reporting entity is required to evaluate whether it and one or more of its related parties under common control, as a group, have the characteristics of a primary beneficiary. If the characteristics of a primary beneficiary are met as a group, then the party within the related party group that is most closely associated with the VIE is the primary beneficiary. The guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. Early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance. In August 2016, the FASB issued new guidance to reduce the diversity in practice around the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. The guidance addresses the following eight specific cash flow issues : debt prepayments or extinguishment costs; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); settlement of zero-coupon debt instruments or other debt instruments with insignificant coupon rates; distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within that reporting period. Early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance. 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 was 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 early adopted the provisions of this guidance. Note 13, 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 was 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 was 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 no longer reflects the underlying collateral (loans and securities) of those VIEs in its consolidated financial statements. Instead, the Company prospectively reflects 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 value as of the date of the 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 at 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 LIABILITIES: 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 syndicated corporate loans were deconsolidated as of January 1, 2016. Apidos Cinco CDO liquidated on November 14, 2016 and, as a result, the Company acquired and re-consolidated the remaining cash and assets of the CDO. (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 at December 31, 2015. In May 2014, the FASB issued guidance that establishes key principles by which an entity determines the amount and timing of revenue recognized from customer contracts. At issuance, the guidance was effective for the first interim or annual period beginning after December 15, 2016. In August 2015, the FASB issued additional guidance that delayed the previous effective date by one year, resulting in the original guidance becoming effective for the first interim or annual period beginning after December 15, 2017. Early application, which was not permissible under the initial effectiveness timeline, is now permissible though no earlier than as of the first interim or annual period beginning after December 15, 2016. In 2016, the FASB issued multiple amendments to the accounting standard to provide further clarification. The Company has not completed its assessment under the new guidance, however, it expects to identify similar performance obligations as currently identified; therefore, the Company does not expect a material impact upon the application of this guidance. 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 was 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. Adoption did not have a material impact on the disclosures in the Company's consolidated financial statements. In August 2014, the FASB issued guidance that provides for the election of a measurement alternative when a reporting entity determines that it is the primary beneficiary of a collateralized financing entity and, hence, is required to consolidate that collateralized financing entity. The measurement alternative allows a qualifying consolidated collateralized financing entity to use the more observable of the fair value of the financial assets or the fair value of the financial liabilities adjusted by the carrying amount of non-financial assets 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 was 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 2014 and 2015 consolidated financial statements to conform to the 2016 presentation, including the impact of discontinued operations and assets and liabilities held for sale. |
Distributions | In order to qualify as a REIT, the Company must currently distribute at least 90% of its taxable income. In addition, the Company must distribute 100% of its taxable income in order not to be subject to corporate federal income taxes on retained income. The Company anticipates it will distribute substantially all of its taxable income to its stockholders. Because taxable income differs from cash flow from operations due to non-cash revenues or expenses (such as provisions for loan and lease losses and depreciation), in certain circumstances, the Company may generate operating cash flow in excess of its distributions or, alternatively, may be required to borrow to make sufficient distribution payments. The Company’s 2017 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. |
Fair Value Measurement | In analyzing the fair value of its investments accounted for on a fair value basis, the Company uses the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company determines fair value based on quoted prices when available or, if quoted prices are not available, through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The hierarchy followed defines three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability. Level 3 - Unobservable inputs that reflect the entity’s own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques. The determination of where an asset or liability falls in the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter; depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. However, the Company expects that changes in classifications between levels will be rare. Assets or liabilities that are both designated for sale or disposition and reported as discontinued operations are disclosed in Note 27. Certain assets and liabilities are measured at fair value on a recurring basis. The following is a discussion of these assets and liabilities as well as the valuation techniques applied to each for fair value measurement. The Company reports its investment securities, available-for-sale at fair value. To determine fair value, the Company uses an independent third-party valuation firm utilizing data available in the market as well as appropriate prepayment, default, and recovery rates. These valuations are validated utilizing dealer quotes, bids, or internal models. If there is a material difference between the value indicated by the third-party valuation firm and the dealer quote or bid, the Company will evaluate the difference, which could result in an updated valuation from the third party or a revised dealer quote. Any changes in the fair value of investment securities, available-for-sale are recorded in other comprehensive income. Based on a prioritization of inputs used in the valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. The Company reports its investment securities, trading at fair value, based on an independent third-party valuation. The Company evaluates the reasonableness of the valuation it receives by using a dealer quote, bid, or internal model. If there is a material difference between the value indicated by the third party and a quote the Company receives, the Company will evaluate the difference, which could result in an updated valuation from the third party or a revised dealer quote. Any changes in fair value are recorded in the Company’s results of operations as net unrealized and unrealized (loss) gain on investment securities, trading. The Company's investments securities, trading are generally classified as Level 2 or Level 3 in the fair value hierarchy. The Company reports its loans held for sale at fair value. To determine fair value, the Company uses an independent third-party valuation firm utilizing dealer quotes, bids, or internal models. These valuations are validated utilizing data available in the market. If there is a material difference between the value indicated by the third-party valuation firm and the market data, the Company will evaluate the difference, which could result in an updated valuation from the third party. Any changes in the fair value of loans held for sale are recorded in fair value adjustments on financial assets held for sale. Based on a prioritization of inputs used in the valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. Derivatives, both assets and liabilities, are reported at fair value, and are valued by a third-party pricing agent using an income approach with models that use, as their primary inputs, readily observable market parameters. This valuation process considers factors including interest rate yield curves, time value, credit factors and volatility factors. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparties. The Company assesses the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and, if material, categorizes those derivatives within Level 3 of the fair value hierarchy . |
SUMMARY OF SIGNIFICANT ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Variable Interest Entities | 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 at 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 LIABILITIES: 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 syndicated corporate loans were deconsolidated as of January 1, 2016. Apidos Cinco CDO liquidated on November 14, 2016 and, as a result, the Company acquired and re-consolidated the remaining cash and assets of the CDO. (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 at December 31, 2015. The following table shows the classification and carrying value of assets and liabilities of the Company's consolidated VIEs at December 31, 2016 (in thousands): Apidos I Apidos Apidos Cinco Whitney CLO I RCC 2014-CRE2 RCC 2015-CRE3 RCC 2015-CRE4 Total ASSETS Restricted cash (1) $ 255 $ 125 $ 934 $ 195 $ — $ — $ 1,799 $ 3,308 Investment securities available-for-sale, — — 369 — — — — 369 Loans, pledged as collateral — — — — 249,957 259,144 238,625 747,726 Loans held for sale — — 1,007 — — — — 1,007 Interest receivable — — — — 1,034 1,145 974 3,153 Principal paydown receivable — — — — — — 5,820 5,820 Other assets 9 2 — — — — 47 58 Total assets (2) $ 264 $ 127 $ 2,310 $ 195 $ 250,991 $ 260,289 $ 247,265 $ 761,441 LIABILITIES Borrowings $ — $ — $ — $ — $ 130,066 $ 193,755 $ 156,282 $ 480,103 Accrued interest expense — — — — 120 231 168 519 Accounts payable and other liabilities — — — — 21 53 59 133 Total liabilities $ — $ — $ — $ — $ 130,207 $ 194,039 $ 156,509 $ 480,755 (1) Includes $1.8 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) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | 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 at 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 LIABILITIES: 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 syndicated corporate loans were deconsolidated as of January 1, 2016. Apidos Cinco CDO liquidated on November 14, 2016 and, as a result, the Company acquired and re-consolidated the remaining cash and assets of the CDO. (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 at December 31, 2015. The following table shows the classification and carrying value of assets and liabilities of the Company's consolidated VIEs at December 31, 2016 (in thousands): Apidos I Apidos Apidos Cinco Whitney CLO I RCC 2014-CRE2 RCC 2015-CRE3 RCC 2015-CRE4 Total ASSETS Restricted cash (1) $ 255 $ 125 $ 934 $ 195 $ — $ — $ 1,799 $ 3,308 Investment securities available-for-sale, — — 369 — — — — 369 Loans, pledged as collateral — — — — 249,957 259,144 238,625 747,726 Loans held for sale — — 1,007 — — — — 1,007 Interest receivable — — — — 1,034 1,145 974 3,153 Principal paydown receivable — — — — — — 5,820 5,820 Other assets 9 2 — — — — 47 58 Total assets (2) $ 264 $ 127 $ 2,310 $ 195 $ 250,991 $ 260,289 $ 247,265 $ 761,441 LIABILITIES Borrowings $ — $ — $ — $ — $ 130,066 $ 193,755 $ 156,282 $ 480,103 Accrued interest expense — — — — 120 231 168 519 Accounts payable and other liabilities — — — — 21 53 59 133 Total liabilities $ — $ — $ — $ — $ 130,207 $ 194,039 $ 156,509 $ 480,755 (1) Includes $1.8 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 Entity, Maximum Exposure | The following table shows the classification, carrying value and maximum exposure to loss with respect to the Company’s unconsolidated VIEs at December 31, 2016 (in thousands): Unconsolidated Variable Interest Entities LCC Unsecured RCAM Managed CDOs Investment in Harvest CLOs RCM Global LLC Pelium Capital Pearlmark Mezz Total Maximum Investment in unconsolidated entities $ 42,960 $ 1,548 $ — $ — $ 465 $ 25,993 $ 16,953 $ 87,919 $ 87,919 Investment securities, available-for-sale — — — 20,115 — — — 20,115 $ 20,115 Intangible assets — — 213 — — — — 213 $ 213 Total assets 42,960 1,548 213 20,115 465 25,993 16,953 108,247 Borrowings — 51,548 — — — — — 51,548 N/A Total liabilities — 51,548 — — — — — 51,548 N/A Net asset (liability) $ 42,960 $ (50,000 ) $ 213 $ 20,115 $ 465 $ 25,993 $ 16,953 $ 56,699 N/A |
SUPPLEMENTAL CASH FLOW INFORM45
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Other Significant Noncash Transactions | Supplemental disclosure of cash flow information (in thousands): Years Ended December 31, 2016 2015 2014 Non-cash continuing operating activities include the following: Reclassification of linked transactions, net at fair value to investment securities available-for-sale, pledged as collateral, at fair value and borrowings (1) $ — $ 15,367 $ — Non-cash discontinued operating activities include the following: Interest expense paid by third party (2) $ (107 ) $ — $ — Operating liabilities assumed by third party (2) $ (192 ) $ — $ — Non-cash continuing 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) $ — $ 48,764 $ — Retained beneficial interest in unconsolidated securitization entities $ (22,476 ) $ — $ — Restricted cash acquired through securitizations called or liquidated $ (934 ) $ — $ — Loans acquired through securitizations called or liquidated $ (157,070 ) $ — $ — Securities acquired through securitizations called or liquidated $ (40,892 ) $ — $ — Assumption of direct financing leases and other assets (3) $ — $ — $ 2,385 Non-cash continuing financing activities include the following: Distributions on common stock accrued but not paid $ 1,550 $ 13,274 $ 26,563 Distributions on preferred stock accrued but not paid $ 4,010 $ 4,077 $ 6,044 Contribution of security deposits and other liabilities (3) $ — $ — $ 457 Reclassification of linked transactions, net at fair value to borrowings (1) $ — $ 33,397 $ — Non-cash discontinued financing activities include the following: Senior secured revolving credit facility assumed by third party (2) $ (122,000 ) $ — $ — Senior secured revolving credit facility paid down by third party (2) $ (22,000 ) $ — $ — (1) As a result of an accounting standards update adopted on January 1, 2015 ( see Note 2 ), the Company unlinked its previously linked transactions, resulting in non-cash increases in both its investment securities available-for-sale, pledged as collateral, at fair value and related repurchase agreements borrowings balances. (2) On August 4, 2016, the Company completed the sale of Northport TRS, LLC. The Purchaser assumed $122.0 million and paid down $22.0 million of principal and $107,000 of interest expense on the Company’s behalf of the senior secured revolving credit agreement. The Purchaser assumed $192,000 of accounts payable and accrued legal fees recorded to complete the sale. (3) On December 31, 2014, the Company assumed direct financing leases and related assets and liabilities in satisfaction of a loan receivable from a related party. |
RESTRICTED CASH (Tables)
RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of restricted cash | The following table summarizes the Company's restricted cash as of the periods presented (in thousands): December 31, 2016 2015 Restricted cash: Cash held by consolidated securitizations $ 3,308 $ 39,062 Restricted cash pledged with minimum reserve balance requirements 216 218 Cash collateralizing outstanding margin calls on cash flow hedges — 500 Cash collateralizing margin posted to clearing house interest rate agreements 20 855 $ 3,544 $ 40,635 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 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) (1) Carrying (2)(3) At December 31, 2016: CRE whole loans $ 1,295,926 $ (5,819 ) $ 1,290,107 Allowance for loan loss (3,829 ) — (3,829 ) Total CRE loans held for investment, net of allowance 1,292,097 (5,819 ) 1,286,278 Syndicated corporate loans 1,007 — 1,007 Total loans held for sale 1,007 — 1,007 Total loans, net (4) $ 1,293,104 $ (5,819 ) $ 1,287,285 At December 31, 2015: CRE 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 CRE loans 1,702,046 (9,939 ) 1,692,107 Syndicated corporate loans 134,890 (373 ) 134,517 Subtotal loans before allowance 1,836,936 (10,312 ) 1,826,624 Allowance for loan loss (43,121 ) — (43,121 ) Total loans held for investment, net of allowance 1,793,815 (10,312 ) 1,783,503 Syndicated corporate loans 1,475 — 1,475 Total loans held for sale 1,475 — 1,475 Total loans, net $ 1,795,290 $ (10,312 ) $ 1,784,978 (1) Amounts include unamortized loan origination fees of $5.8 million and $9.9 million at December 31, 2016 and 2015 , respectively. Amounts also include deferred amendment fees of $4,000 being amortized over the life of the loans at December 31, 2016 and deferred amendment fees of $42,000 and deferred upfront fees of $12,000 being amortized over the life of the loans at December 31, 2015 . (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 syndicated corporate 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 December 31, 2016 and 2015 , respectively. (4) As part of the Company's strategic plan to dispose of certain underperforming legacy CRE debt investments, legacy CRE loans were moved to loans held for sale status and included in Assets held for sale on the Company's balance sheet at December 31, 2016 ( see Note 27 ). |
Summary of the commercial real estate loans | The following is a summary of the Company’s commercial real estate loans held for investment (in thousands): Description Quantity Amortized Cost Contracted Interest Rates Maturity Dates (3) At December 31, 2016: Whole loans, floating rate (1) 67 $ 1,290,107 LIBOR plus 3.75% to April 2017 to January 2020 Total (2) 67 $ 1,290,107 At December 31, 2015: Whole loans, floating rate (1) (4) (5) (6) (7) (9) 87 $ 1,630,801 LIBOR plus 1.75% to February 2016 to February 2019 B notes, fixed rate (10) 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 $55.5 million and $112.6 million in unfunded loan commitments at December 31, 2016 and 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 allowances for loan losses of $3.8 million and $41.8 million at December 31, 2016 and 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 $51.2 million senior component that entered into modifications in 2015 that resulted in a fixed rate of 0.50% at December 31, 2015 . The two loans were previously identified as troubled debt restructurings ("TDR's"). (5) Includes two whole loans with a combined $12.0 million mezzanine component that have fixed rates of 12.0% , and two whole loans with a combined $4.2 million mezzanine component that have fixed rates of 15.0% at December 31, 2015 . (6) Includes a $799,000 junior mezzanine tranche of a whole loan that has a fixed rate of 10.0% at December 31, 2015 . (7) Contracted interest rates do not include a whole loan of $32.5 million at December 31, 2015 that entered into a modification in 2015 which reduced the floating rate spread to 1.0% at December 31, 2015 . The loan was previously identified as a TDR. (8) Contracted interest rates and maturity dates do not include the interest rate or maturity date associated with one loan with an amortized cost of $38.1 million that was fully reserved as of June 30, 2015. (9) Whole loans, floating rate includes a loan with an amortized cost of $13.0 million which extended to February 2017 from February 2016. (10) B notes, fixed rate includes a loan with an amortized cost of $15.9 million which paid off in January 2016. |
Summary of the weighted average life of the commercial real estate loans at amortized cost | The following is a summary of the maturities of the Company’s commercial real estate loans, held for investment, at amortized cost (in thousands): Description 2017 2018 2019 and Thereafter Total At December 31, 2016: Whole loans $ 7,000 $ 24,476 $ 1,258,631 $ 1,290,107 Total (1) $ 7,000 $ 24,476 $ 1,258,631 $ 1,290,107 At December 31, 2015: 2016 2017 2018 and Thereafter Total Whole loans $ 9,958 $ 140,712 $ 1,480,131 $ 1,630,801 B notes 15,934 — — 15,934 Mezzanine loans 13,011 — 32,361 45,372 Total (1) $ 38,903 $ 140,712 $ 1,512,492 $ 1,692,107 (1) Contractual maturities of commercial real estate loans assumes full exercise of extension options available to borrowers, to the extent they qualify. |
Summary lien position and status of our bank and middle market loans [Table Text Block] | The following table provides information as to the lien position and status of the Company's syndicated corporate loans, at amortized cost (in thousands) prior to deconsolidation of Apidos Cinco CDO as of January 1, 2016 ( see Note 2 ): Apidos I Apidos Cinco Total At 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 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 syndicated corporate 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 Total $ 135,992 |
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 by asset class (in thousands, except percentages): Description Allowance for Loan Loss Percentage of Total Allowance At December 31, 2016: CRE Whole loans $ 3,829 100.00% Total (1) $ 3,829 At December 31, 2015: CRE Whole loans $ 3,745 8.68% CRE B notes 15 0.04% CRE Mezzanine loans 38,079 88.31% Syndicated corporate loans 1,282 2.97% Total $ 43,121 ( 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 syndicated corporate loans and the related allowance for loan losses of $41.7 million (see Note 2). |
FINANCING RECEIVABLES (Tables)
FINANCING RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 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 Syndicated Corporate Loans Direct Financing Leases Total At December 31, 2016: Allowance for Loan and Lease Losses: Allowance for losses at January 1, 2016 $ 41,839 $ 1,282 $ 465 $ 43,586 Provision (recovery) for loan and lease losses 18,167 (402 ) — 17,765 Loans charged-off — 402 — 402 Transfer to Loans Held For Sale (15,763 ) — — (15,763 ) Deconsolidation of VIEs (40,414 ) (1,282 ) — (41,696 ) Allowance for losses at December 31, 2016 $ 3,829 $ — $ 465 $ 4,294 Ending balance: Individually evaluated for impairment $ 2,500 $ — $ 465 $ 2,965 Collectively evaluated for impairment $ 1,329 $ — $ — $ 1,329 Loans acquired with deteriorated credit quality $ — $ — $ — $ — Loans and Leases: Ending balance: Individually evaluated for impairment $ 7,000 $ — $ 992 $ 7,992 Collectively evaluated for impairment $ 1,283,107 $ — $ — $ 1,283,107 Loans acquired with deteriorated credit quality $ — $ — $ — $ — At December 31, 2015: Allowance for Loan and Lease Losses: Allowance for losses at January 1, 2015 $ 4,043 $ 570 $ — $ 4,613 Provision (recovery)for loan and lease losses 37,735 2,887 465 41,087 Loans charged-off — (2,175 ) — (2,175 ) Recoveries 61 — — 61 Allowance for losses at December 31, 2015 $ 41,839 $ 1,282 $ 465 $ 43,586 Ending balance: Individually evaluated for impairment $ 40,274 $ 1,282 $ 465 $ 42,021 Collectively evaluated for impairment $ 1,565 $ — $ — $ 1,565 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 $ — $ 1,655,373 Loans acquired with deteriorated credit quality $ — $ — $ — $ — |
Credit quality indicators for Bank loans, Middle market and Commercial real estate loans | Credit risk profiles of syndicated corporate loans at amortized cost were as follows (in thousands): Rating 1 Rating 2 Rating 3 Rating 4 Rating 5 Held for Sale Total At December 31, 2016: Syndicated corporate loans $ — $ — $ — $ — $ — $ 1,007 $ 1,007 At December 31, 2015: Syndicated corporate loans $ 113,897 $ 17,578 $ 1,498 $ — $ 1,544 $ 1,475 $ 135,992 Credit risk profiles of commercial real estate loans at amortized cost were as follows (in thousands): Rating 1 (2) Rating 2 Rating 3 Rating 4 Held for Sale Total At December 31, 2016: CRE whole loans (1) $ 1,186,292 $ 96,815 $ — $ 7,000 $ — $ 1,290,107 Legacy CRE whole loans (1) — — — — 158,178 158,178 Mezzanine loans (1) — — — — — — $ 1,186,292 $ 96,815 $ — $ 7,000 $ 158,178 $ 1,448,285 At 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) As part of the Company's strategic plan as described in Note 1 , certain legacy CRE loans were moved to loans held for sale and included in assets held for sale, carried at LCOM on the Company's balance sheet at December 31, 2016 ( see Note 27 ). (2) Includes four loans which were impaired at December 31, 2015 . At December 31, 2016 , these loans moved to held for sale. |
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 > 90 Days and Accruing At December 31, 2016: CRE whole loans $ — $ — $ — $ — $ 1,290,107 $ 1,290,107 $ — Legacy CRE loans 61,400 — — 61,400 96,792 158,192 B notes — — — — — — — Mezzanine loans — — — — — — — Syndicated corporate loans — — — — — — — Direct financing leases 137 — 128 265 727 992 — Total loans $ 61,537 $ — $ 128 $ 61,665 $ 1,387,626 $ 1,449,291 $ — At December 31, 2015: CRE whole loans (1) $ — $ — $ — $ — $ 1,630,801 $ 1,630,801 $ — B notes — — — — 15,934 15,934 — Mezzanine loans — 38,072 — 38,072 7,300 45,372 — Syndicated corporate loans 1,544 — — 1,544 132,973 134,517 — Direct financing leases 12 214 — 226 1,170 1,396 — Total loans $ 1,556 $ 38,286 $ — $ 39,842 $ 1,788,178 $ 1,828,020 $ — (1) Current loans include one impaired whole loan with an amortized cost of $2.2 million that was fully reserved at December 31, 2015 . |
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 At December 31, 2016: Loans without a specific valuation allowance: CRE whole loans $ — $ — $ — $ — $ — Mezzanine loans $ — $ — $ — $ — $ — Syndicated corporate loans $ — $ — $ — $ — $ — Loans with a specific valuation allowance: CRE whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ 480 Mezzanine loans $ — $ — $ — $ — $ — Syndicated corporate loans $ — $ — $ — $ — $ — Total: CRE whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ 480 Mezzanine loans — — — — — Syndicated corporate loans — — — — — $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ 480 At December 31, 2015: Loans without a specific valuation allowance: CRE whole loans $ 129,433 $ 129,433 $ — $ 128,591 $ 3,939 B notes $ — $ — $ — $ — $ — Mezzanine loans $ — $ — $ — $ — $ — Syndicated corporate 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 ) Syndicated corporate loans $ 1,544 $ 1,551 $ (1,282 ) $ 1,544 $ — 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 ) Syndicated corporate loans 1,544 1,551 (1,282 ) 1,544 — $ 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 of senior participations in four loans that were previously classified as impaired loans in the Company's consolidated financial statements at December 31, 2015 (see Note 2). |
Troubled debt restructurings on financing receivables | The following tables show TDRs in the Company's loan portfolio (in thousands): Number of Loans Pre-Modification Outstanding Recorded Balance Post-Modification Outstanding Recorded Balance Year Ended December 31, 2016: CRE whole loans — $ — $ — Legacy CRE whole loans held for sale (1) (2) 3 29,459 21,400 Mezzanine loans — — — Syndicated corporate loans — — — Total loans 3 $ 29,459 $ 21,400 Year Ended December 31, 2015: CRE whole loans 3 $ 99,959 $ 99,959 B notes — — — Mezzanine loans 1 38,072 — Syndicated corporate loans — — — Total loans 4 $ 138,031 $ 99,959 |
INVESTMENT SECURITIES, TRADING
INVESTMENT SECURITIES, TRADING (Tables) | 12 Months Ended |
Dec. 31, 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 At December 31, 2016: Structured notes $ 6,242 $ 920 $ (2,670 ) $ 4,492 Total $ 6,242 $ 920 $ (2,670 ) $ 4,492 At December 31, 2015: Structured notes $ 28,576 $ 1,674 $ (4,700 ) $ 25,550 RMBS (1) 1,896 — (1,896 ) — Total $ 30,472 $ 1,674 $ (6,596 ) $ 25,550 (1) This security was written off during the year ended December 31, 2016 . |
INVESTMENT SECURITIES AVAILAB50
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Available-for-sale Securities [Abstract] | |
Available-for-sale Securities | The following table summarizes the Company's sales of investment securities available-for-sale during the period indicated (in thousands, except number of securities): Positions Positions Redeemed Par Amount Sold/Redeemed Realized Gain (Loss) For the Year Ended December 31, 2016: ABS 1 — $ 10,830 $ 418 CMBS 1 — $ 4,000 $ (450 ) For the Year Ended December 31, 2015: ABS 24 3 $ 69,901 $ 9,197 RMBS 6 — $ 28,305 $ 984 CMBS 1 — $ 3,000 $ (58 ) These securities are carried at fair value (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value (1) At December 31, 2016: ABS $ 21,365 $ 3,988 $ (73 ) $ 25,280 CMBS 98,525 425 (863 ) 98,087 RMBS 1,526 77 (2 ) 1,601 Total $ 121,416 $ 4,490 $ (938 ) $ 124,968 At 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) At December 31, 2016 and 2015 , $97.5 million and $162.3 million , respectively, of investment securities available-for-sale were pledged as collateral under related financings. |
Estimated maturities of available-for-sale securities | The following table summarizes the estimated maturities of the Company’s CMBS, RMBS, ABS and corporate bonds according to their estimated weighted average life classifications (in thousands, except percentages): Weighted Average Life Amortized Cost Fair Value Weighted Average Coupon At December 31, 2016: Less than one year (1) $ 80,801 $ 80,325 5.60% Greater than one year and less than five years 17,197 17,408 4.52% Greater than five years and less than ten years 9,622 12,936 10.68% Greater than ten years 13,796 14,299 10.39% Total $ 121,416 $ 124,968 6.39% At December 31, 2015: Less than one year (1) $ 118,215 $ 117,221 7.13% Greater than one year and less than five years 68,808 71,370 5.31% Greater than five years and less than ten years 11,271 12,382 10.45% Greater than ten years 6,862 7,115 16.85% Total $ 205,156 $ 208,088 7.03% (1) The Company expects that the maturity dates of underlying assets of these CMBS and ABS securities 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, for those individual investment securities available-for-sale that have been in a continuous unrealized loss position during the periods specified (in thousands, except number of securities): Less than 12 Months More than 12 Months Total Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized Number of At December 31, 2016: ABS $ — $ — — $ 828 $ (73 ) 1 $ 828 $ (73 ) 1 CMBS 30,869 (436 ) 10 26,616 (427 ) 15 57,485 (863 ) 25 RMBS 662 (2 ) 1 — — — 662 (2 ) 1 Total temporarily $ 31,531 $ (438 ) 11 $ 27,444 $ (500 ) 16 $ 58,975 $ (938 ) 27 At 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 $ 83,122 $ (1,779 ) 39 $ 15,778 $ (1,260 ) 21 $ 98,900 $ (3,039 ) 60 |
INVESTMENTS IN UNCONSOLIDATED51
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The following table shows the Company's investments in unconsolidated entities at December 31, 2016 and 2015 and equity in earnings of unconsolidated entities for the years ended December 31, 2016 , 2015 and 2014 (in thousands): Equity in Earnings of Unconsolidated Entities Balance at Years Ended December 31, Ownership % at December 31, 2016 December 31, December 31, 2016 2015 2014 Varde Investment Partners, L.P —% $ — $ — $ — $ (90 ) $ (20 ) RRE VIP Borrower, LLC (1) —% — — 58 325 3,473 Investment in LCC Preferred Stock 29.0% 42,960 42,017 943 2,601 (1,555 ) Investment in CVC Global Credit Opportunities Fund (2) —% — — — 8 2,032 RCM Global, LLC (3) 21.6% 465 — 14 — — Pelium Capital Partners, L.P. (3) 80.2% 25,993 — 3,991 — — Investment in Life Care Funding (4) —% — — — — (75 ) Pearlmark Mezz (5) 47.7% 16,953 6,465 968 (460 ) — Investment in School Lane House (6) —% — — (1 ) 4 912 Subtotal 86,371 48,482 5,973 2,388 4,767 Investment in RCT I and II (7) 3.0% 1,548 1,548 (2,560 ) (2,421 ) (2,387 ) Investment in Preferred Equity (8) —% — — — — 410 Total $ 87,919 $ 50,030 $ 3,413 $ (33 ) $ 2,790 (1) The investment in RRE VIP Borrower was sold at December 31, 2014. Earnings for the years ended December 31, 2016 , 2015 , and 2014 are related to insurance premium and property tax 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 investment in the fund. (3) Pursuant to the new consolidation guidance adopted January 1, 2016, these previously consolidated VIEs are now accounted for under the equity method. (4) In January 2013, LTCC invested $2.0 million into LCF for the purpose of originating and acquiring life settlement contracts. In February 2014, the Company invested an additional $1.4 million which resulted in the consolidation of LCF during the first quarter of 2014. (5) 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, June 24, 2015. (6) Investment in School Lane House was sold as of December 31, 2014. Earnings for the years ended December 31, 2016 , 2015 , and 2014 related to the return of a security deposit and payment of an insurance claim. (7) For the years ended December 31, 2016 , 2015 , and 2014 these amounts are recorded in interest expense on the Company's consolidated statements of operations. (8) The investment in Preferred Equity was repaid as of December 31, 2014. For the year ended December 31, 2014 , these amounts are recorded in interest income on loans on the Company's consolidated statements of operations. |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of intangible assets | The following table summarizes the activity of intangible assets (in thousands): For the Year Ended December 31, 2016 December 31, 2015 Management Contracts Management Contracts Balance, January 1, 2016 $ 5,316 $ 9,434 Additions — — Sales — — Amortization (1,432 ) (4,118 ) Total before impairment losses 3,884 5,316 Impairment losses (3,671 ) — Balance, December 31, 2016 $ 213 $ 5,316 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
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 Outstanding Unamortized Outstanding Borrowings Weighted Average Weighted Average Value of At December 31, 2016: RCC 2014-CRE2 Senior Notes $ 131,936 $ 1,871 $ 130,065 2.19% 15.3 years $ 250,255 RCC 2015-CRE3 Senior Notes 196,112 2,358 193,754 2.82% 15.2 years 259,889 RCC 2015-CRE4 Senior Notes 158,475 2,193 156,282 2.55% 15.6 years 247,414 Unsecured Junior Subordinated Debentures 51,548 — 51,548 4.89% 19.8 years — 6.0% Convertible Senior Notes 115,000 3,231 111,769 6.00% 1.9 years — 8.0% Convertible Senior Notes 100,000 3,472 96,528 8.00% 3.0 years — CRE - Term Repurchase Facilities (2) 349,318 2,680 346,638 3.04% 1.6 years 520,503 CMBS - Term Repurchase Facility (3) 78,503 16 78,487 2.73% 129 days 115,157 Trust Certificates - Term Repurchase Facility (4) 26,667 282 26,385 6.21% 1.9 years 89,181 Total $ 1,207,559 $ 16,103 $ 1,191,456 3.67% 8.0 years $ 1,482,399 Principal Outstanding Unamortized Outstanding Borrowings Weighted Average Weighted Average Value of At 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 CMBS - Short Term Repurchase Agreements (5) 57,407 — 57,407 2.06% 18 days 79,347 Total $ 1,644,480 $ 22,767 $ 1,621,713 2.86% 11.7 years $ 2,048,555 (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 $468,000 and $315,000 related to CRE repurchase facilities at December 31, 2016 and 2015 , respectively. (3) Amounts also include accrued interest expense of $157,000 and $18,000 related to CMBS repurchase facilities at December 31, 2016 and 2015 , respectively. (4) Amount also includes accrued interest expense of $69,000 and $61,000 related to trust certificate repurchase facilities at December 31, 2016 and 2015 , respectively. (5) Amounts also include accrued interest expense of $0 and $40,000 related to CMBS short term repurchase facilities at December 31, 2016 and 2015 , respectively. |
Schedule of Securitizations | The following table sets forth certain information with respect to the Company's consolidated securitizations at December 31, 2016 : Securitization Closing Date Maturity Date End of Designated Principal Reinvestment Period (1) Total Note Paydowns at December 31, 2016 (in millions) RCC 2014-CRE2 July 2014 April 2032 July 2016 $ 103.4 RCC 2015-CRE3 February 2015 March 2032 February 2017 $ 86.0 RCC 2015-CRE4 August 2015 August 2032 August 2017 $ 65.3 (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. |
Repurchase and Credit Facilities | The following table sets forth certain information with respect to the Company's borrowings (in thousands, except percentages): At December 31, 2016 At December 31, 2015 Outstanding Value of Number of Weighted Average Outstanding Value of Number of Weighted Average CMBS Term Wells Fargo Bank (1) $ 22,506 $ 28,514 13 1.96% $ 25,656 $ 31,650 21 1.57% Deutsche Bank (2) 55,981 86,643 23 3.04% — — — —% CRE Term Wells Fargo Bank (3) 215,283 313,126 16 2.86% 123,937 179,169 9 2.39% Morgan Stanley Bank (4) 131,355 207,377 11 3.34% 98,991 142,098 7 2.96% Trust Certificates Term Repurchase Facility RSO Repo SPE Trust 2015 (5) 26,385 89,181 1 6.21% 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% Totals $ 451,510 $ 724,841 $ 332,235 $ 521,445 (1) The Wells Fargo Bank CMBS term repurchase facility includes $0 and $2,000 , of deferred debt issuance costs at December 31, 2016 and 2015 , respectively. (2) The Deutsche Bank CMBS term repurchase facility includes $16,000 and $0 of deferred debt issuance costs at December 31, 2016 and 2015 , respectively. (3) The Wells Fargo Bank CRE term repurchase facility includes $1.6 million and $675,000 of deferred debt issuance costs at December 31, 2016 and 2015 , respectively. (4) The Morgan Stanley Bank CRE term repurchase facility includes $1.1 million and $1.7 million of deferred debt issuance costs at December 31, 2016 and 2015 , respectively. (5) The RSO Repo SPE Trust 2015 term repurchase facility includes $282,000 and $415,000 of deferred debt issuance costs at December 31, 2016 and 2015 , respectively. |
Schedule of Amount at Risk under Credit Facility | The following table shows information about the amount at risk under the repurchase facilities (dollars in thousands): Amount at (1) Weighted Average Weighted Average At December 31, 2016: CMBS Term Repurchase Facilities Wells Fargo Bank, National Association $ 6,059 90 days 1.96% Deutsche Bank, AG $ 30,971 145 days 3.04% CRE Term Repurchase Facilities Wells Fargo Bank, National Association $ 97,482 1.6 years 2.86% Morgan Stanley Bank, National Association $ 75,772 1.7 years 3.34% Trust Certificates Term Repurchase Facility RSO Repo SPE Trust 2015 $ 62,575 1.9 years 6.21% Amount at (1) Weighted Average Weighted Average At 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% (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. |
Contractual Obligation | Contractual maturity dates of the Company's borrowings by category and year are presented in the table below (in thousands): Total 2017 2018 2019 2020 2021 and Thereafter CRE Securitizations $ 480,101 $ — $ — $ — $ — $ 480,101 Repurchase Agreements 451,510 78,487 373,023 — — — Unsecured Junior Subordinated Debentures 51,548 — — — — 51,548 6.0 % Convertible Senior Notes 111,769 — 111,769 — — — 8.0 % Convertible Senior Notes 96,528 — — — 96,528 — Total $ 1,191,456 $ 78,487 $ 484,792 $ — $ 96,528 $ 531,649 |
STOCK INCENTIVE PLANS AND SHA54
STOCK INCENTIVE PLANS AND SHARE ISSUANCE AND REPURCHASE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes the Company's repurchases of preferred stock: Year ended December 31, 2016 Total Outstanding Number of Shares Repurchased Weighted Average Offering 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 The following table summarizes the status of the Company’s vested stock options at December 31, 2016 : Vested Options Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Vested at January 1, 2016 26,250 $ 46.60 Vested — $ — Exercised — $ — Forfeited — $ — Expired — $ — Vested at December 31, 2016 26,250 $ 46.60 1.95 $ — |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 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 (1) Employees Total Unvested shares at January 1, 2016 15,267 617,657 58,445 691,369 Issued 25,948 230,338 50,784 307,070 Vested (13,895 ) (536,016 ) (32,558 ) (582,469 ) Forfeited — (10,493 ) (5,427 ) (15,920 ) Unvested shares at December 31, 2016 27,320 301,486 71,244 400,050 (1) Non-employees are employees of Resource America. |
Schedule of restricted stock granted | The following table summarizes restricted common stock grants during the year ended December 31, 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 September 29, 2016 2,755 100% 9/29/17 (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 annual 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 Company's repurchases of preferred stock: Year ended December 31, 2016 Total Outstanding Number of Shares Repurchased Weighted Average Offering 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 The following table summarizes the status of the Company’s vested stock options at December 31, 2016 : Vested Options Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Vested at January 1, 2016 26,250 $ 46.60 Vested — $ — Exercised — $ — Forfeited — $ — Expired — $ — Vested at December 31, 2016 26,250 $ 46.60 1.95 $ — |
Summary of share based compensation expense | The components of equity compensation expense for the periods presented is as follows (in thousands): December 31, 2016 2015 2014 Options granted to Manager and non-employees (1) $ — $ — $ (2 ) Restricted shares granted to non-employees (1)(2) 2,758 2,163 5,679 Restricted shares granted to non-employee directors 267 257 256 Total equity compensation expense (3) $ 3,025 $ 2,420 $ 5,933 (1) Non-employees are employees of Resource America. (2) Amounts include $691,000 of equity compensation expense, for the year ended December 31, 2016 , associated with the accelerated stock vesting of former executives of the Company. (3) Amounts do not include equity compensation expense for employees of our subsidiary PCM, which is included in net income (loss) for discontinued operations, net of tax. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of basic and diluted earnings per share | The following table presents a reconciliation of basic and diluted earnings (loss) per share for the periods presented as follows (in thousands, except share and per share amounts): Years Ended December 31, 2016 2015 2014 Net income (loss) from continuing operations $ (11,334 ) $ 11,079 $ 59,585 Net (income) loss allocated to preferred shares (24,091 ) (24,437 ) (17,176 ) Carrying value in excess of consideration paid for preferred shares 1,500 — — Net (income) loss allocable to non-controlling interest, net of taxes 229 (6,628 ) (965 ) Net income (loss) from continuing operations allocable to common shares (33,696 ) (19,986 ) 41,444 Net income (loss) from discontinued operations, net of tax (19,260 ) 6,104 2,583 Net income (loss) allocable to common shares $ (52,956 ) $ (13,882 ) $ 44,027 Basic: Weighted average number of shares outstanding 30,539,369 32,280,319 32,007,766 Continuing operations $ (1.10 ) $ (0.62 ) $ 1.30 Discontinued operations (0.63 ) 0.19 0.08 Basic net income (loss) per share $ (1.73 ) $ (0.43 ) $ 1.38 Diluted: Weighted average number of shares outstanding 30,539,369 32,280,319 32,007,766 Additional shares due to assumed conversion of dilutive instruments — — 307,081 Adjusted weighted-average number of common shares outstanding 30,539,369 32,280,319 32,314,847 Continuing operations $ (1.10 ) $ (0.62 ) $ 1.28 Discontinued operations (0.63 ) 0.19 0.08 Diluted net income (loss) per share $ (1.73 ) $ (0.43 ) $ 1.36 |
ACCUMULATED OTHER COMPREHENSI57
ACCUMULATED OTHER COMPREHENSIVE (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | The following table presents the changes in each component of accumulated other comprehensive income (loss) for the year ended December 31, 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 (as adjusted) $ (131 ) $ (835 ) $ — $ (966 ) Other comprehensive gain (loss) before reclassifications (net of taxes of $0.5 million) 118 5,850 — 5,968 Amounts reclassified from accumulated other (5 ) (1,916 ) — (1,921 ) Net current-period other comprehensive income 113 3,934 — 4,047 Unrealized gains (losses) on available-for-sale securities allocable to non-controlling interests — — — — December 31, 2016 $ (18 ) $ 3,099 $ — $ 3,081 |
DISTRIBUTIONS (Tables)
DISTRIBUTIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
DISTRIBUTIONS [Abstract] | |
Dividends Declared | The following tables present dividends declared (on a per share basis) for the years ended December 31, 2016 , 2015 and 2014 : 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 September 30 October 28 $ 13,012 $ 0.42 December 31 January 27, 2017 $ 1,550 $ 0.05 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 2014 March 31 April 28 $ 25,921 $ 0.80 June 30 July 28 $ 26,179 $ 0.80 September 30 October 28 $ 26,629 $ 0.80 December 31 January 28, 2015 $ 26,563 $ 0.80 Preferred Stock 8.50% Series A 8.25% 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 September 30 October 31 $ 568 $ 0.531250 October 31 $ 2,859 $ 0.515625 October 31 $ 2,588 $ 0.539063 December 31 January 30, 2017 $ 568 $ 0.531250 January 30, 2017 $ 2,859 $ 0.515625 January 30, 2017 $ 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 2014 March 31 April 30 $ 463 $ 0.531250 April 30 $ 2,057 $ 0.515625 April 30 $ — $ — June 30 July 30 $ 537 $ 0.531250 July 30 $ 2,378 $ 0.515625 July 30 $ 1,437 $ 0.299479 September 30 October 30 $ 537 $ 0.531250 October 30 $ 2,430 $ 0.515625 October 30 $ 2,588 $ 0.539063 December 31 January 30, 2015 $ 568 $ 0.531250 January 30, 2015 $ 2,888 $ 0.515625 January 30, 2015 $ 2,588 $ 0.539063 |
FAIR VALUE OF FINANCIAL INSTR59
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 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 At December 31, 2016: Assets: Investment securities, trading $ — $ 369 $ 4,123 $ 4,492 Investment securities available-for-sale — — 124,968 124,968 Loans held for sale — 787 220 1,007 Derivatives — 647 — 647 Total assets at fair value $ — $ 1,803 $ 129,311 $ 131,114 Liabilities: Derivatives $ — $ (97 ) $ — $ (97 ) Total liabilities at fair value $ — $ (97 ) $ — $ (97 ) At 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 — 1,322 153 1,475 Derivatives — 727 — 727 Total assets at fair value $ — $ 6,500 $ 229,340 $ 235,840 Liabilities: Derivatives $ — $ — $ (3,458 ) $ (3,458 ) Total liabilities at fair value $ — $ — $ (3,458 ) $ (3,458 ) |
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 RMBS Structured Finance Securities Loans Held for Sale Total Balance, January 1, 2016 $ 159,424 $ 44,213 $ — $ 25,550 $ 153 $ 229,340 Included in earnings (1,028 ) (21,756 ) — 502 (153 ) (22,435 ) Purchases/Originations 34,824 44,819 — — 220 79,863 Sales (3,268 ) (133,969 ) — — — (137,237 ) Paydowns (36,070 ) (57,271 ) (98 ) (267 ) — (93,706 ) Issuances — — — — — — Settlements — (28,425 ) — — — (28,425 ) Capitalized Interest — 20,014 — 190 — 20,204 Included in OCI (19 ) 4,156 (99 ) — — 4,038 Deconsolidation of VIEs (55,776 ) 153,499 (21,852 ) — 75,871 Transfers into Level 3 — — 1,798 — 1,798 Balance, December 31, 2016 $ 98,087 $ 25,280 $ 1,601 $ 4,123 $ 220 $ 129,311 |
Fair value liabilities unobservable input reconciliation | The following table presents additional information about significant 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 Balance, January 1, 2016 $ 3,458 Included in earnings 50 Settlements — Unrealized gains - included in accumulated other comprehensive income (162 ) Deconsolidation of VIEs (3,346 ) Transfers into Level 3 — Balance, December 31, 2016 $ — |
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 At December 31, 2016: Assets : Legacy CRE whole loans held for sale $ — $ — $ 158,178 $ 158,178 Impaired loans — — 4,500 4,500 Total assets at fair value $ — $ — $ 162,678 $ 162,678 At 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) At December 31, 2016: Loans held-for-investment $ 1,286,278 $ 1,292,099 $ — $ — $ 1,292,099 Senior Notes in CRE Securitizations $ 480,101 $ 486,524 $ — $ — $ 486,524 Junior subordinated notes $ 51,548 $ 27,246 $ — $ — $ 27,246 Convertible notes $ 208,297 $ 215,000 $ — $ — $ 215,000 Repurchase agreements $ 451,540 $ 453,794 $ — $ — $ 453,794 At December 31, 2015: Loans held-for-investment $ 2,160,751 $ 2,150,061 $ — $ 222,100 $ 1,927,961 Loans receivable-related party $ — $ — $ — $ — $ — Senior Notes in CRE Securitizations $ 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 $ 332,235 $ 332,235 $ — $ — $ 332,235 |
MARKET RISK AND DERIVATIVE IN60
MARKET RISK AND DERIVATIVE INSTRUMENTS (Tables) - Interest Rate Swaps | 12 Months Ended |
Dec. 31, 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 years presented: Fair Value of Derivative Instruments at December 31, 2016 (in thousands) Asset Derivatives Notional Amount Balance Sheet Location Fair Value Forward contracts - foreign currency, hedging (1)(2) $ 12,489 Derivatives, at fair value $ 647 Liability Derivatives Notional Amount Balance Sheet Location Fair Value Forward contracts - foreign currency, hedging (1)(3) $ 11,700 Derivatives, at fair value $ 97 Interest rate swap contracts, hedging $ — Accumulated other comprehensive income (loss) $ (18 ) (1) Foreign currency forward contracts are accounted for as fair value hedges. (2) The notional amount is presented on a currency converted basis. The notional amount of our foreign currency hedging forward contracts in an asset position was €11.9 million at December 31, 2016 . (3) The notional amount is presented on a currency converted basis. The notional amount of our foreign currency hedging forward contracts in a liability position was €11.1 million at December 31, 2016 . Fair Value of Derivative Instruments at December 31, 2015 (in thousands) Asset Derivatives Notional Amount Balance Sheet Location Fair Value Forward contracts - foreign currency, hedging (1)(2) $ 24,850 Derivatives, at fair value $ 727 Liability Derivatives Notional Amount Balance Sheet Location Fair Value Interest rate swap contracts, hedging (3) $ 102,799 Derivatives, at fair value $ 3,458 Interest rate swap contracts, hedging $ 102,799 Accumulated other comprehensive income (loss) $ (3,471 ) (1) 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 at December 31, 2015 . (2) Foreign currency forward contracts are accounted for as fair value hedges. (3) Interest rate swap contracts are accounted for as cash flow hedges. |
The Effect of Derivative Instruments on the Statement of Income | The Effect of Derivative Instruments on the Consolidated Statements of Operations for the Year Ended December 31, 2016 (in thousands) Derivatives Consolidated Statement of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ 119 Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on derivatives and sales of investment securities available-for-sale and loans $ 764 The Effect of Derivative Instruments on the Consolidated Statements of Operations for the Year Ended December 31, 2015 (in thousands) Derivatives Consolidated Statement of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ 6,098 Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on derivatives and sales of investment securities available-for-sale and loans $ 2,925 Options - U.S. Treasury futures Net realized and unrealized gain (loss) on derivatives and sales of investment securities available-for-sale and loans $ 184 The Effect of Derivative Instruments on the Consolidated Statements of Operations for the Year Ended December 31, 2014 (in thousands) Derivatives Consolidated Statement of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ 6,555 Forward contracts - RMBS securities Net realized and unrealized gain (loss) on derivatives and sales of investment securities available-for-sale and loans $ 1,297 Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on derivatives and sales of investment securities available-for-sale and loans $ 3,377 Options - U.S. Treasury futures Net realized and unrealized gain (loss) on derivatives and sales of investment securities available-for-sale and loans $ (28 ) (1) Negative values indicate a decrease to the associated balance sheets or consolidated statements of operations line items. |
OFFSETTING OF FINANCIAL ASSET61
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Offsetting [Abstract] | |
Offsetting Financial Liabilities and Derivative Liabilities | The following table presents a summary of the Company's offsetting of derivative assets, presented (in thousands): (i) Recognized Assets (ii) Consolidated Balance Sheets (iii) = (i) - (ii) Balance Sheets (iv) Gross Amounts Not Offset in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged (v) = (iii) - (iv) Net Amount At December 31, 2016: Derivative hedging instruments, $ 647 $ — $ 647 $ — $ — $ 647 Total $ 647 $ — $ 647 $ — $ — $ 647 At December 31, 2015: Derivative hedging instruments, $ 727 $ — $ 727 $ — $ — $ 727 Total $ 727 $ — $ 727 $ — $ — $ 727 The following table presents a summary of the Company's offsetting of financial liabilities and derivative liabilities for the periods presented as follows (in thousands): (i) (ii) (iii) = (i) - (ii) (iv) (v) = (iii) - (iv) Financial (1) Cash (2) At December 31, 2016: Derivative hedging instruments, (3) $ 97 $ — $ 97 $ — $ — $ 97 Repurchase agreements and term facilities (4) 451,510 — 451,510 451,510 — — Total $ 451,607 $ — $ 451,607 $ 451,510 $ — $ 97 At December 31, 2015: Derivative hedging instruments, (3) $ 3,458 $ — $ 3,458 $ — $ 500 $ 2,958 Repurchase agreements and term facilities (4) 332,235 — 332,235 332,235 — — Total $ 335,693 $ — $ 335,693 $ 332,235 $ 500 $ 2,958 (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 $0 and $500,000 at December 31, 2016 and 2015 , respectively. (4) The combined fair value of securities and loans pledged against the Company's various term facilities and repurchase agreements was $724.8 million and $521.4 million at December 31, 2016 and 2015 , respectively. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of Income Taxes | The following table details the components of income taxes (in thousands): Years Ended December 31, 2016 2015 2014 Provision (benefit) for income taxes: Current: Federal $ 1,733 $ 1,705 $ 6,819 State 966 430 2,505 Total current 2,699 2,135 9,324 Deferred: Federal 6,707 (423 ) (8,808 ) State 1,586 (358 ) (2,383 ) Total deferred 8,293 (781 ) (11,191 ) Income tax provision (benefit) $ 10,992 $ 1,354 $ (1,867 ) |
Reconciliation Between Federal Statutory Income Tax Rate and Effective Income Tax Rate | A reconciliation of the income tax expense (benefit) based upon the statutory tax rate to the effective income tax rate is as follows for the periods presented (in thousands): Years Ended December 31, 2016 2015 2014 Statutory tax $ (1,103 ) $ 945 $ (1,591 ) State and local taxes, net of federal benefit 1,005 (271 ) (670 ) Permanent adjustments — 149 41 True-up of prior period tax expense (256 ) 530 353 Valuation allowance 11,294 — — Other items 52 1 — $ 10,992 $ 1,354 $ (1,867 ) |
Components of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities are as follows (in thousands): December 31, 2016 2015 Deferred tax assets related to: Investment in securities $ — $ 1,657 Federal, state and local loss carryforwards 7,933 11,156 Bad debt for reserves — 208 Reserve on MSR valuation 237 222 Accrued expenses 118 895 Amortization of intangibles — 3,182 Unrealized gains/losses 1,673 1,725 Charitable contribution carryforwards — 6 CLCO carryforwards 5,680 1,826 Foreign exchange gain (loss) — 156 Equity compensation — 34 Partnership investment 2,902 1,965 Total deferred tax assets 18,543 23,032 Valuation allowance (11,294 ) — Total deferred tax assets $ 7,249 $ 23,032 Deferred tax liabilities related to: Unrealized gain (loss) on investments $ — $ (951 ) Amortization of intangibles (1,589 ) (6,319 ) Gain (loss) on sale of investments — (1,389 ) Investment in securities (1,320 ) — Depreciation (85 ) (80 ) Deferred revenue — (2 ) Partnership investment — (1,645 ) Total deferred tax liabilities $ (2,994 ) $ (10,386 ) Deferred tax assets, net $ 4,255 $ 12,646 |
QUARTERLY RESULTS (Tables)
QUARTERLY RESULTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations | The following is a presentation of the quarterly results of operations (unaudited): March 31 June 30 September 30 December 31 (unaudited) (unaudited) (unaudited) (unaudited) (in thousands, except per share data) Year Ended December 31, 2016: Interest income $ 26,962 $ 28,447 $ 27,085 $ 30,124 Interest expense 13,302 13,446 13,653 13,346 Net interest income $ 13,660 $ 15,001 $ 13,432 $ 16,778 Net income (loss) from continuing operations $ 8,852 $ 10,908 $ (34,300 ) $ 3,206 Net income (loss) from discontinued operations 5,168 (6,379 ) (11,321 ) (6,728 ) Net income (loss) 14,020 4,529 (45,621 ) (3,522 ) Net income (loss) allocated to preferred shares (6,048 ) (6,014 ) (6,015 ) (6,014 ) Carrying value in excess of consideration paid for preferred shares 1,611 (111 ) — — Net (income) loss allocable to non-controlling interest, net of taxes 90 60 63 16 Net income (loss) allocable to common shares $ 9,673 $ (1,536 ) $ (51,573 ) $ (9,520 ) Net income (loss) per common share from continuing operations - basic $ 0.15 $ 0.16 $ (1.32 ) $ (0.09 ) Net income (loss) per common share from discontinued operations – basic 0.17 (0.21 ) (0.37 ) (0.22 ) Total net income (loss) per common share - basic $ 0.32 $ (0.05 ) $ (1.69 ) $ (0.31 ) Net income (loss) per common share from continuing operations - diluted $ 0.15 $ 0.16 $ (1.32 ) $ (0.09 ) Net income (loss) per common share from discontinued operations – diluted 0.17 (0.21 ) (0.37 ) (0.22 ) Total net income (loss) per common share - diluted $ 0.32 $ (0.05 ) $ (1.69 ) $ (0.31 ) Year Ended December 31, 2015: Interest income $ 29,734 $ 28,259 $ 30,149 $ 34,332 Interest expense (1) 12,988 13,637 14,562 15,343 Net interest income $ 16,746 $ 14,622 $ 15,587 $ 18,989 Net income (loss) from continuing operations $ 18,109 $ (28,769 ) $ 12,356 $ 9,382 Net income (loss) from discontinued operations (139 ) 6,053 2,366 (2,175 ) Net income (loss) 17,970 (22,716 ) 14,722 7,207 Net income (loss) allocated to preferred shares (6,091 ) (6,115 ) (6,115 ) (6,116 ) Net (income) loss allocable to non-controlling interest, net of taxes (2,477 ) (2,180 ) (1,829 ) (142 ) Net income (loss) allocable to common shares $ 9,402 $ (31,011 ) $ 6,778 $ 949 Net income (loss) per common share from continuing operations - basic $ 0.29 $ (1.12 ) $ 0.14 $ 0.10 Net income (loss) per common share from discontinued operations – basic — 0.18 0.07 (0.07 ) Total net income (loss) per common share - basic $ 0.29 $ (0.94 ) $ 0.21 $ 0.03 Net income (loss) per common share from continuing operations - diluted $ 0.28 $ (1.12 ) $ 0.14 $ 0.10 Net income (loss) per common share from discontinued operations – diluted — 0.18 0.07 (0.07 ) Total net income (loss) per common share - diluted $ 0.28 $ (0.94 ) $ 0.21 $ 0.03 (1) Certain reclassifications have been made to the 2016 and 2015 consolidated financial statements, including the impact of discontinued operations. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The following table summarizes the operating results of the residential mortgage and middle market lending segments discontinued operations as reported separately as income (loss) from discontinued operations, net of tax for the years ended December 31, 2016 , 2015 and 2014 (in thousands): Years Ended December 31, 2016 2015 2014 REVENUES Interest income: Loans $ 25,325 $ 32,224 $ 11,878 Interest income - Other 50 7 — Total interest income 25,375 32,231 11,878 Interest expense 6,181 6,629 806 Net interest income 19,194 25,602 11,072 Gain (loss) on sale of residential mortgage loans 19,061 13,544 4,815 Fee income 1,221 2,617 2,377 Total revenues 39,476 41,763 18,264 OPERATING EXPENSES Equity compensation expense - related party 939 725 633 General and administrative 30,570 25,350 16,306 Depreciation/Amortization 563 613 379 Provision for loan and lease loss 12,989 8,801 92 Total operating expenses 45,061 35,489 17,410 (5,585 ) 6,274 854 OTHER INCOME (EXPENSE) Net realized gain/(loss) on investment securities available-for-sale and loans (11,850 ) 221 1,384 Total other income (expense) (11,850 ) 221 1,384 INCOME (LOSS) FROM DISCONTINUED OPERATIONS BEFORE TAXES (17,435 ) 6,495 2,238 Income Tax Benefit (Expense) — (391 ) 345 NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAXES (17,435 ) 6,104 2,583 Gain (loss) from disposal of discontinued operations (1,825 ) — — TOTAL INCOME (LOSS) FROM DISCONTINUED OPERATIONS $ (19,260 ) $ 6,104 $ 2,583 The assets and liabilities of business segments classified as discontinued operations and other assets and liabilities classified as held for sale are reported separately in the accompanying consolidated financial statements and are summarized as follows at December 31, 2016 and 2015 (in thousands): December 31, 2016 2015 ASSETS Interest receivable $ 312 $ 2,515 Loans held for sale, at fair value 346,761 471,720 Property available for sale 125 — Derivatives, at fair value 3,773 2,719 Intangible assets (1) 14,466 20,912 Other assets (2)(3)(4) 17,873 13,042 Total assets held for sale $ 383,310 $ 510,908 LIABILITIES Accounts payable and other liabilities $ 8,398 $ 6,427 Management fee payable - related party 138 — Accrued interest expense 203 243 Borrowings (5) 133,139 273,575 Derivatives, at fair value 685 482 Accrued tax liability — 5,679 Total liabilities held for sale $ 142,563 $ 286,406 (1) Includes mortgage services rights ("MSRs") with a fair value of $14.4 million and $20.8 million at December 31, 2016 and 2015 , respectively. MSRs are recorded at fair value using a discounted cash flow approach to estimate the fair value utilizing the valuation services of an independent third party. The key assumptions used in the estimation of fair value include prepayment speeds, discount rates, default rates, cost to service, contractual servicing fees and escrow earnings. (2) Includes an income tax benefit of $0 and $391,000 allocated to discontinued operations at December 31, 2016 and 2015 , respectively. (3) A valuation allowance against discontinued operations' tax benefits as of December 31, 2015 is included in the valuation allowance recorded in continuing operations. (4) Includes the Company's investment in life settlement contracts of $5.8 million at December 31, 2016 which were transferred to held for sale in the fourth quarter of 2016. (5) Borrowings at December 31, 2016 is entirely related to PCM. |
Summary of Loans Held-for-sale | The following table summarizes the loans held for sale in the residential mortgage and middle market lending segments as well as the non-performing legacy CRE loans transferred to held for sale in the fourth quarter of 2016. The loans held for sale are carried at the lower of cost or market ("LCOM") (in thousands): Loan Description Quantity Amortized Cost Fair Value At December 31, 2016: Legacy CRE whole loans (1) 8 $ 158,192 $ 158,178 Mezzanine loans (2) 1 — — Middle market loans (3)(4) 7 52,382 40,443 Residential mortgage loans (5)(6)(7) 529 148,140 148,140 Total loans 545 $ 358,714 $ 346,761 At December 31, 2015: Middle market loans (8) 32 $ 379,452 $ 375,514 Residential mortgage loans (9) 333 96,206 96,206 Total loans 365 $ 475,658 $ 471,720 (1) Third party appraisals were obtained on six of the legacy CRE whole loans and, as a result, specific provisions of $8.1 million were recorded prior to the loans being reclassified to held for sale status. Additional provisions in the amount of $7.7 million were recognized after the transfer of loans to held for sale to write down the loans to LCOM. (2) Includes a mezzanine loan with a par value of $38.1 million that was acquired at a fair value of zero as a result of the liquidation of RREF CDO 2006-1 in April 2016 and RREF 2007-1 in November 2016. The mezzanine loan is comprised of two tranches, with maturity dates of November 2016 and September 2021. (3) A provision of $2.6 million was recognized on the remaining middle market loan based upon receiving an updated third party valuation. In addition, a provision of $819,000 was recognized to write down the syndicated middle market loans to LCOM. (4) The Company's middle market loans are in several industry categories including: healthcare, education and childcare - 24.4% , diversified/conglomerate service - 17.2% , insurance - 17.1% , cargo transport - 14.2% , beverage, food and tobacco - 12.5% , buildings and real estate - 9.8% and hotels, motels, Inns and gaming - 4.8% . (5) The fair value option was elected for residential mortgage loans, held for sale. (6) The Company's residential mortgage loan portfolio is comprised of both agency loans and non-agency jumbo loans. The fair values of the 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 jumbo loan portfolio are generally classified as Level 3 in the fair value hierarchy, as those values are generally based upon valuation techniques that utilize unobservable inputs that reflect the assumptions that a market participant would use in pricing those assets. (7) At December 31, 2016 , approximately 39.2% % of the Company's residential mortgage loans were originated in Georgia, 16.2% in California, 14.6% in Utah, 5.9% in Virginia and 5.9% in Florida. (8) At December 31, 2015 , approximately 12.8% and 12.4% , respectively, of the Company's middle market loan portfolio was concentrated in the collective industry groupings of diversified/conglomerate service and healthcare, education and childcare. (9) At 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. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Commercial Real Estate Debt Investments Commercial Finance Residential Mortgage Lending Corporate & Other (1)(2)(3) Total For the Year Ended December 31, 2016: Interest income: External customers $ 98,588 $ 8,569 $ 456 $ — $ 107,613 Other 43 4,935 — 27 5,005 Total interest income 98,631 13,504 456 27 112,618 Interest expense 33,444 (6 ) — 20,309 53,747 Net interest income 65,187 13,510 456 (20,282 ) 58,871 Other income from external customers — 3,736 — 73 3,809 Total revenues 65,187 17,246 456 (20,209 ) 62,680 Less: Segment operating expenses 340 1,337 84 14,264 16,025 General and administrative 2,246 1,141 424 11,386 15,197 Depreciation and amortization — 1,432 — 134 1,566 Impairment losses 20,662 5,567 241 — 26,470 Provision (recovery) for loan and lease losses 18,167 (402 ) — — 17,765 Equity in earnings of unconsolidated entities (1,025 ) (4,948 ) — — (5,973 ) Other (income) expense (2,530 ) (3,363 ) 63 (2,198 ) (8,028 ) Income (loss) from continuing operations before taxes 27,327 16,482 (356 ) (43,795 ) (342 ) Income tax (expense) benefit — (980 ) (9,889 ) (123 ) (10,992 ) Net income (loss) from continuing operations $ 27,327 $ 15,502 $ (10,245 ) $ (43,918 ) $ (11,334 ) Commercial Real Estate Debt Investments Commercial Finance Residential Mortgage Lending Corporate & Other (1)(2)(3) Total For the Year Ended December 31, 2015: Interest income: External customers $ 100,203 $ 17,479 $ 540 $ — $ 118,222 Other 89 4,072 — 91 4,252 Total interest income 100,292 21,551 540 91 122,474 Interest expense 33,775 2,818 111 19,826 56,530 Net interest income 66,517 18,733 429 (19,735 ) 65,944 Other income from external customers — 4,865 — 66 4,931 Total revenues 66,517 23,598 429 (19,669 ) 70,875 Less: Segment operating expenses 130 1,507 1,136 13,016 15,789 General and administrative 2,263 3,469 937 9,677 16,346 Depreciation and amortization — 4,118 — 127 4,245 Impairment losses — 372 — — 372 Provision (recovery) for loan and lease losses 37,736 3,352 — — 41,088 Equity in earnings of unconsolidated entities 277 (2,608 ) — (57 ) (2,388 ) Other (income) expense 216 (8,582 ) (4,710 ) (3,934 ) (17,010 ) Income (loss) from continuing operations before taxes 25,895 21,970 3,066 (38,498 ) 12,433 Income tax (expense) benefit 37 1,001 (1,949 ) (443 ) (1,354 ) Net income (loss) from continuing operations $ 25,932 $ 22,971 $ 1,117 $ (38,941 ) $ 11,079 Commercial Real Estate Debt Investments Commercial Finance Residential Mortgage Lending Corporate & Other (1)(2)(3) Total For the Year Ended December 31, 2014: Interest income: External customers $ 76,619 $ 29,228 $ 649 $ — $ 106,496 Other 1 6,556 — 228 6,785 Total interest income 76,620 35,784 649 228 113,281 Interest expense 23,958 8,182 173 11,180 43,493 Net interest income 52,662 27,602 476 (10,952 ) 69,788 Other income from external customers 8,441 6,011 — 66 14,518 Total revenues 61,103 33,613 476 (10,886 ) 84,306 Less: Segment operating expenses 5,443 3,071 824 15,622 24,960 General and administrative 2,088 4,130 721 7,766 14,705 Depreciation and amortization 484 1,800 — 74 2,358 Impairment losses — — — — — Provision (recovery) for loan and lease losses (3,808 ) 5,469 — 51 1,712 Equity in earnings of unconsolidated entities (4,364 ) (478 ) — 75 (4,767 ) Other (income) expense (8,003 ) 1,500 — (5,877 ) (12,380 ) Income (loss) from continuing operations before taxes 69,263 18,121 (1,069 ) (28,597 ) 57,718 Income tax (expense) benefit 300 1,699 411 (543 ) 1,867 Net income (loss) from continuing operations $ 69,563 $ 19,820 $ (658 ) $ (29,140 ) $ 59,585 (1) Includes interest expense for the Convertible Senior Notes of $17.7 million , $17.4 million , and $8.8 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. (2) Includes interest expense for the Unsecured Junior Subordinated Debentures of $2.6 million , $2.4 million , and $2.4 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. (3) Includes general corporate expenses and inter-segment eliminations not allocable to any particular operating segment. The following table presents total investments in unconsolidated entities and total assets by segment for the periods indicated (in thousands): Commercial Real Estate Debt Investments Commercial Finance Residential Mortgage Lending Corporate & Other (1) Total Investments in unconsolidated entities December 31, 2016 $ 16,953 $ 69,418 $ — $ 1,548 $ 87,919 Total Assets (2) December 31, 2016 $ 1,624,779 $ 160,414 $ 12,460 $ 15,020 $ 1,812,673 Investments in unconsolidated entities December 31, 2015 $ 6,465 $ 42,017 $ — $ 1,548 $ 50,030 Total Assets (2) December 31, 2015 $ 1,907,945 $ 306,654 $ 1,860 $ 16,313 $ 2,232,772 (1) Includes assets not allocable to any particular operating segment. (2) Total assets does not include $240.9 million and $532.8 million of assets attributable to discontinued operations, of which, $22.9 million and $21.2 million of cash from continuing operations is included at December 31, 2016 and 2015 , respectively. |
ORGANIZATION AND BASIS OF PRE66
ORGANIZATION AND BASIS OF PRESENTATION (Details) - Entity | Dec. 15, 2015 | Apr. 30, 2015 | Feb. 26, 2014 | Dec. 31, 2016 | Sep. 30, 2014 | Jul. 31, 2014 | Jul. 09, 2014 |
Resource America | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage | 2.30% | ||||||
Resource Real Estate Funding CDO 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% | ||||||
Northport LLC | Northport TRS, LLC | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 100.00% | ||||||
Apidos III | RCC Commercial | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 100.00% | ||||||
Resource Real Estate Funding CDO 2007-1 | RCC Real Estate | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 100.00% | ||||||
RCC CRE Notes 2013 | RCC Real Estate | |||||||
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 | RCC Commercial II | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 68.30% | ||||||
Moselle CLO | 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% | ||||||
Apidos CLO VIII Ltd. | RSO EquityCo, LLC | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 10.00% | ||||||
Apidos CLO VIII Ltd. | Resource TRS III | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 33.00% | ||||||
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% | ||||||
RCM Global LLC | RCC Residential, Inc. | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 21.60% | ||||||
RCC Residential Acquisition, LLC | RCC Depositor, LLC | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 100.00% | ||||||
Resource Capital Corp. 2014-CRE2, Ltd. | RCC Real Estate | |||||||
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] | |||||||
Ownership percentage in VIE | 100.00% | ||||||
Resource Capital Corp. 2015-CRE4, Ltd. | RCC Real Estate | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 100.00% | ||||||
RCAM Managed CDOs | Resource TRS II | |||||||
Variable Interest Entity [Line Items] | |||||||
Number of CDO issuers | 1 | ||||||
CVC Credit Partners, LLC | Resource America | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 24.00% | ||||||
RCC Residential, Inc. | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage (percent) | 63.80% | 63.80% | |||||
Pelium Capital Partners, L.P. | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage (percent) | 80.20% | 80.40% | |||||
Pelium Capital Partners, L.P. | Resource TRS, Inc | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage (percent) | 80.20% |
SUMMARY OF SIGNIFICANT ACCOUN67
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Aug. 31, 2015 | Dec. 31, 2016USD ($)Director$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | ||
Property, Plant and Equipment [Line Items] | |||||||
Common stock, shares authorized (in shares) | shares | 125,000,000 | 125,000,000 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||||
Preferred stock, shares authorized (in shares) | shares | 100,000,000 | ||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | ||||||
Stock split conversion ratio (percentage) | 0.25 | ||||||
Cash and cash equivalents | $ 116,026,000 | [1] | $ 78,756,000 | [1] | $ 79,905,000 | $ 262,270,000 | |
Impairment charges | $ 3,700,000 | 2,400,000 | $ 0 | ||||
Deconsolidation of variable interest entities | (23,851,000) | ||||||
Number of non employee directors granted shares (directors) | Director | 8 | ||||||
Prime Brokerage Account | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Cash and cash equivalents | $ 111,600,000 | 74,300,000 | |||||
Distributions in Excess of Earnings | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Deconsolidation of variable interest entities | $ (16,932,000) | ||||||
[1] | December 31, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $95 Restricted cash$3,308 $39,061 Investments securities available-for-sale, pledged as collateral, at fair value369 66,137 Loans held for sale1,007 1,475Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million747,726 1,416,441 Interest receivable3,153 6,592 Principal paydown receivable5,820 17,800Investment securities available-for-sale, pledged as collateral, at fair value369 66,137 Other assets58 1,071 Total assets of consolidated VIEs$761,441 $1,548,672 |
SUMMARY OF SIGNIFICANT ACCOUN68
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Variable Interest (Details) $ in Thousands | Dec. 31, 2016USD ($) | Jan. 01, 2016USD ($)Loan | Dec. 31, 2015USD ($)Loan | Dec. 31, 2014USD ($) |
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $ 0 | $ 95 | ||
Restricted cash | 3,308 | 39,061 | ||
Loans, pledged as collateral and net of allowances | 369 | 66,137 | ||
Loans held for sale | 1,007 | 1,475 | ||
Interest receivable | 3,153 | 6,592 | ||
Principal paydown receivable | 5,820 | 17,800 | ||
Other assets | 58 | 1,071 | ||
Total assets of consolidated VIEs | 761,441 | 1,548,672 | ||
Borrowings | 480,103 | 1,032,581 | ||
Accrued interest expense | 519 | 923 | ||
Derivatives, at fair value | 0 | 3,346 | ||
Accounts payable and other liabilities | 133 | (117) | ||
Total liabilities of consolidated VIEs | 480,755 | 1,036,733 | ||
Specific allowance | 2,500 | 41,556 | ||
Financing receivable, allowance for credit losses | 4,294 | $ 43,586 | $ 4,613 | |
Total Deconsolidated VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $ 472 | |||
Restricted cash | 17,076 | |||
Loans, pledged as collateral and net of allowances | 364,589 | |||
Loans held for sale | 1,322 | |||
Investment securities available-for-sale, at fair value | 68,997 | |||
Investment securities, trading | 21,851 | |||
Investments in deconsolidated entities | 17,250 | |||
Interest receivable | 4,299 | |||
Principal paydown receivable | 17,800 | |||
Prepaid expenses | 256 | |||
Other assets | 972 | |||
Total assets of consolidated VIEs | 514,884 | |||
Borrowings | 297,191 | |||
Accrued interest expense | 297 | |||
Derivatives, at fair value | 3,346 | |||
Accounts payable and other liabilities | 255 | |||
Total liabilities of consolidated VIEs | 301,089 | |||
Retained earnings | 206,876 | |||
Non-controlling interests | 8,876 | |||
Accumulated other comprehensive loss | (1,957) | |||
Total equity | 213,795 | |||
Total liabilities and equity | $ 514,884 | |||
Number of impaired loans | Loan | 4 | 4 | ||
Retained Interest at 1/1/2016 | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $ 0 | |||
Restricted cash | 0 | |||
Loans, pledged as collateral and net of allowances | 0 | |||
Loans held for sale | 0 | |||
Investment securities available-for-sale, at fair value | 166,769 | |||
Investment securities, trading | 0 | |||
Investments in deconsolidated entities | 23,175 | |||
Interest receivable | 0 | |||
Principal paydown receivable | 0 | |||
Prepaid expenses | 0 | |||
Other assets | 0 | |||
Total assets of consolidated VIEs | 189,944 | |||
Borrowings | 0 | |||
Accrued interest expense | 0 | |||
Derivatives, at fair value | 0 | |||
Accounts payable and other liabilities | 0 | |||
Total liabilities of consolidated VIEs | 0 | |||
Retained earnings | 189,944 | |||
Non-controlling interests | 0 | |||
Accumulated other comprehensive loss | 0 | |||
Total equity | 189,944 | |||
Total liabilities and equity | 189,944 | |||
Net Impact on Deconsolidation | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 472 | |||
Restricted cash | 17,076 | |||
Loans, pledged as collateral and net of allowances | 364,589 | |||
Loans held for sale | 1,322 | |||
Investment securities available-for-sale, at fair value | (97,772) | |||
Investment securities, trading | 21,851 | |||
Investments in deconsolidated entities | (5,925) | |||
Interest receivable | 4,299 | |||
Principal paydown receivable | 17,800 | |||
Prepaid expenses | 256 | |||
Other assets | 972 | |||
Total assets of consolidated VIEs | 324,940 | |||
Borrowings | 297,191 | |||
Accrued interest expense | 297 | |||
Derivatives, at fair value | 3,346 | |||
Accounts payable and other liabilities | 255 | |||
Total liabilities of consolidated VIEs | 301,089 | |||
Retained earnings | 16,932 | |||
Non-controlling interests | 8,876 | |||
Accumulated other comprehensive loss | (1,957) | |||
Total equity | 23,851 | |||
Total liabilities and equity | 324,940 | |||
RREF CDO 2006-1, CDO 2007-1 Senior Notes | ||||
Variable Interest Entity [Line Items] | ||||
Specific allowance | 40,300 | $ 91,300 | ||
Apidos CDO Cinco | ||||
Variable Interest Entity [Line Items] | ||||
Specific allowance | 1,300 | |||
Commercial Real Estate Loans | ||||
Variable Interest Entity [Line Items] | ||||
Financing receivable, allowance for credit losses | $ 3,829 | $ 142 | $ 41,839 | $ 4,043 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) | Nov. 25, 2016USD ($) | Nov. 22, 2016USD ($) | Nov. 14, 2016USD ($)SecurityLoan | Apr. 25, 2016USD ($) | Dec. 31, 2015USD ($)Entity | Jun. 24, 2015USD ($) | Jul. 09, 2014USD ($) | Nov. 16, 2011USD ($)shares | Oct. 31, 2016Contracts | Sep. 30, 2016USD ($)Entity | Sep. 30, 2014USD ($) | Feb. 28, 2014USD ($) | Feb. 28, 2013Entity | Oct. 31, 2012 | Feb. 28, 2011USD ($)Entity | Dec. 31, 2016USD ($)DirectorPositionEntity | Dec. 31, 2016USD ($)DirectorPositionEntity | Dec. 31, 2015USD ($)Entity | Dec. 31, 2014USD ($)shares | Jan. 01, 2016USD ($)Entity | Dec. 15, 2015USD ($) | Apr. 30, 2015USD ($) | Feb. 28, 2015USD ($) | Jul. 31, 2014 | May 31, 2013 | |||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Value of Collateral | $ 4,500,000 | $ 4,500,000 | ||||||||||||||||||||||||||||
Debt Instrument, collateral amount | $ 33,700,000 | |||||||||||||||||||||||||||||
Proceeds from sale of securities available-for-sale | 2,818,000 | $ 65,787,000 | $ 147,171,000 | |||||||||||||||||||||||||||
Investments in unconsolidated entities | $ 50,030,000 | [1] | 87,919,000 | [1] | 87,919,000 | [1] | 50,030,000 | [1] | $ 1,300,000 | $ 750,000 | ||||||||||||||||||||
Borrowings | [2] | 1,621,713,000 | 1,191,456,000 | 1,191,456,000 | 1,621,713,000 | |||||||||||||||||||||||||
Intangible assets | [1] | 5,316,000 | 213,000 | 213,000 | 5,316,000 | |||||||||||||||||||||||||
Fee income | 3,943,000 | 4,865,000 | 5,891,000 | |||||||||||||||||||||||||||
Number of CLOs liquidated | Contracts | 1 | |||||||||||||||||||||||||||||
Investment in unconsolidated entities | 50,030,000 | 87,919,000 | 87,919,000 | 50,030,000 | ||||||||||||||||||||||||||
Equity method investment, assets | 1,200,000,000 | 891,400,000 | 891,400,000 | 1,200,000,000 | ||||||||||||||||||||||||||
Equity method investment, liabilities | 749,600,000 | $ 718,200,000 | 718,200,000 | 749,600,000 | ||||||||||||||||||||||||||
Equity method investment, net income (loss) | 12,500,000 | (14,100,000) | 13,700,000 | |||||||||||||||||||||||||||
Equity in earnings of unconsolidated entities | $ 7,000,000 | (14,100,000) | 13,700,000 | |||||||||||||||||||||||||||
Preferred Shares - Series A | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Preferred stock, coupon authorized (in hundredths) | 8.50% | |||||||||||||||||||||||||||||
Preferred Shares - Series B | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Preferred stock, coupon authorized (in hundredths) | 8.25% | |||||||||||||||||||||||||||||
Resource America | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Payments to acquire additional interest | $ 2,800,000 | |||||||||||||||||||||||||||||
RCC Residential, Inc. | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Acquisition of membership interests | $ 15,000,000 | |||||||||||||||||||||||||||||
Payments to acquire businesses and interest in affiliates | $ 23,500,000 | |||||||||||||||||||||||||||||
Ownership percentage (percent) | 63.80% | 63.80% | ||||||||||||||||||||||||||||
Pelium Capital Partners, L.P. | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Acquisition of membership interests | $ 17,500,000 | |||||||||||||||||||||||||||||
Ownership percentage (percent) | 80.40% | 80.20% | 80.20% | |||||||||||||||||||||||||||
Payments to acquire additional interest | $ 2,500,000 | |||||||||||||||||||||||||||||
Ownership interest | 10.00% | |||||||||||||||||||||||||||||
Ownership percentage, duration | 5 years | |||||||||||||||||||||||||||||
Ownership interest increase | 20.00% | |||||||||||||||||||||||||||||
Contributions | $ 40,000,000 | |||||||||||||||||||||||||||||
Investments in unconsolidated entities | 0 | $ 25,993,000 | $ 25,993,000 | 0 | ||||||||||||||||||||||||||
Pearlmark Mezz | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Acquisition of membership interests | $ 18,100,000 | |||||||||||||||||||||||||||||
Ownership percentage (percent) | 47.70% | 47.70% | ||||||||||||||||||||||||||||
Other commitment | $ 50,000,000 | |||||||||||||||||||||||||||||
Management fee, committed capital, percent fee | 1.00% | |||||||||||||||||||||||||||||
Management fee, invested capital, percent fee | 1.50% | |||||||||||||||||||||||||||||
Rebate, percentage | 25.00% | |||||||||||||||||||||||||||||
Investments in unconsolidated entities | 6,465,000 | $ 16,953,000 | $ 16,953,000 | 6,465,000 | ||||||||||||||||||||||||||
Pearlmark Mezz | Resource America | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Ownership percentage in VIE | 50.00% | |||||||||||||||||||||||||||||
Investment in LCC Preferred Stock | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Ownership percentage (percent) | 29.00% | 29.00% | ||||||||||||||||||||||||||||
Investments in unconsolidated entities | 42,017,000 | $ 36,300,000 | $ 42,960,000 | $ 42,960,000 | 42,017,000 | |||||||||||||||||||||||||
Moselle CLO S.A. Senior Notes | Class 1 Subordinated Notes | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Percentage of outstanding notes purchased | 100.00% | |||||||||||||||||||||||||||||
Moselle CLO S.A. Senior Notes | Class 2 Subordinated Notes | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Percentage of outstanding notes purchased | 67.90% | |||||||||||||||||||||||||||||
Management Contracts | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Number of CLOs held by purchased entity | Entity | 5 | |||||||||||||||||||||||||||||
Acquisition | $ 22,500,000 | |||||||||||||||||||||||||||||
Intangible assets | 5,300,000 | $ 213,000 | 213,000 | 5,300,000 | ||||||||||||||||||||||||||
Fee income | $ 2,800,000 | 3,900,000 | 5,100,000 | |||||||||||||||||||||||||||
Impairment of intangible assets | $ 2,400,000 | $ 1,500,000 | $ 2,400,000 | |||||||||||||||||||||||||||
Investment in RCAM, Investment Two | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Impairment of intangible assets | $ 2,200,000 | |||||||||||||||||||||||||||||
VIE, Primary Beneficiary | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Number of consolidated VIEs | Entity | 13 | 7 | 7 | 13 | 5 | |||||||||||||||||||||||||
Financial support, amount | $ 0 | |||||||||||||||||||||||||||||
Investment securities, available-for-sale | $ 364,600,000 | |||||||||||||||||||||||||||||
VIE, Primary Beneficiary | Moselle CLO | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Acquisition of membership interests | $ 30,400,000 | |||||||||||||||||||||||||||||
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] | ||||||||||||||||||||||||||||||
Ownership interests in variable interest entity | 68.30% | |||||||||||||||||||||||||||||
RCM Global LLC | RCC Residential, Inc. | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Ownership percentage in VIE | 21.60% | |||||||||||||||||||||||||||||
Variable interest entity, total number of board positions | Director | 5 | 5 | ||||||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Investment in unconsolidated entities | $ 87,919,000 | $ 87,919,000 | ||||||||||||||||||||||||||||
Investment securities, available-for-sale | 20,115,000 | 20,115,000 | ||||||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | LCC | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Ownership percentage in VIE | 26.70% | |||||||||||||||||||||||||||||
Investments in unconsolidated entities | $ 42,000,000 | $ 43,000,000 | $ 43,000,000 | $ 42,000,000 | ||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Investment in unconsolidated entities | $ 42,960,000 | $ 42,960,000 | ||||||||||||||||||||||||||||
Investment securities, available-for-sale | 0 | $ 0 | ||||||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | LCC | Preferred Shares - Series A | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Acquisition of membership interests | $ 3,700,000 | |||||||||||||||||||||||||||||
Shares received in equity method transaction (in shares) | shares | 31,341 | |||||||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | LCC | Preferred Shares - Series B | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Shares received in equity method transaction (in shares) | shares | 4,872 | |||||||||||||||||||||||||||||
Preferred stock, coupon authorized (in hundredths) | 8.00% | |||||||||||||||||||||||||||||
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 | $ 4,400,000 | |||||||||||||||||||||||||||||
Shares received in equity method transaction (in shares) | shares | 4,445 | |||||||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | LCC | Investment in LCC Preferred Stock | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Ownership percentage in VIE | 29.00% | |||||||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Interest in RCT I and RCT II | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Ownership percentage in VIE | 100.00% | |||||||||||||||||||||||||||||
Investments in unconsolidated entities | $ 1,500,000 | $ 1,500,000 | ||||||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Interest in RCT I | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Percentage of total value of trusts owned | 3.00% | 3.00% | ||||||||||||||||||||||||||||
Borrowings | $ 25,800,000 | $ 25,800,000 | ||||||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Interest in RCT II | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Percentage of total value of trusts owned | 3.00% | 3.00% | ||||||||||||||||||||||||||||
Borrowings | $ 25,800,000 | $ 25,800,000 | ||||||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Management Contracts | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Number of CLOs held by purchased entity | Entity | 4 | |||||||||||||||||||||||||||||
Number of CLOs liquidated | Entity | 1 | 1 | ||||||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Investment in ZAIS CLO | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Realized Gain (Loss) | $ 418,000 | |||||||||||||||||||||||||||||
Proceeds from sale of securities available-for-sale | $ 9,400,000 | |||||||||||||||||||||||||||||
Investment maximum | $ 10,000,000 | |||||||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Pelium Capital Partners, L.P. | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Investment maximum | $ 3,000,000 | |||||||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Harvest CLO VII Limited | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Investments in unconsolidated entities | 3,900,000 | 3,900,000 | ||||||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Harvest CLO VIII Limited | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Investments in unconsolidated entities | 5,000,000 | 5,000,000 | ||||||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Investment in Harvest CLOs | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Investment securities, available-for-sale | 11,300,000 | $ 11,300,000 | ||||||||||||||||||||||||||||
Resource Real Estate Funding CDO 2006-1 | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Value of Collateral | $ 65,700,000 | |||||||||||||||||||||||||||||
Debt Instrument, collateral amount | 7,500,000 | |||||||||||||||||||||||||||||
Realized Gain (Loss) | $ 846,000 | |||||||||||||||||||||||||||||
Apidos Cinco | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Available-for-sale securities, intended for sale, number of securities | Security | 1 | |||||||||||||||||||||||||||||
Number of loans | Loan | 3 | |||||||||||||||||||||||||||||
Realized Gain (Loss) | $ 2,300,000 | |||||||||||||||||||||||||||||
Proceeds from sale of securities available-for-sale | $ 20,400,000 | |||||||||||||||||||||||||||||
Resource Real Estate Funding CDO 2007-1 | ||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||
Value of Collateral | 130,900,000 | |||||||||||||||||||||||||||||
Debt Instrument, collateral amount | 33,700,000 | |||||||||||||||||||||||||||||
Realized Gain (Loss) | $ 2,100,000 | |||||||||||||||||||||||||||||
[1] | December 31, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $95 Restricted cash$3,308 $39,061 Investments securities available-for-sale, pledged as collateral, at fair value369 66,137 Loans held for sale1,007 1,475Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million747,726 1,416,441 Interest receivable3,153 6,592 Principal paydown receivable5,820 17,800Investment securities available-for-sale, pledged as collateral, at fair value369 66,137 Other assets58 1,071 Total assets of consolidated VIEs$761,441 $1,548,672 | |||||||||||||||||||||||||||||
[2] | December 31, 2016 December 31, 2015Liabilities of consolidated VIEs included in the total liabilities above: Borrowings$480,103 $1,032,581 Accrued interest expense519 923 Derivatives, at fair value— 3,346 Unsettled loan purchases— — Accounts payable and other liabilities133 (117) Total liabilities of consolidated VIEs$480,755 $1,036,733 |
VARIABLE INTEREST ENTITIES (Sch
VARIABLE INTEREST ENTITIES (Schedule of Carrying Value of Assets and Liabilities of Consolidated VIEs) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 01, 2016 | Dec. 31, 2015 |
ASSETS | |||
Restricted cash | $ 3,308 | $ 39,061 | |
Investments securities available-for-sale, pledged as collateral, at fair value | 369 | 66,137 | |
Loans, pledged as collateral | 747,726 | 1,416,441 | |
Loans held for sale | 1,007 | 1,475 | |
Interest receivable | 3,153 | 6,592 | |
Principal paydown receivable | 5,820 | 17,800 | |
Other assets | 58 | 1,071 | |
Total assets of consolidated VIEs | 761,441 | 1,548,672 | |
LIABILITIES | |||
Borrowings | 480,103 | 1,032,581 | |
Accrued interest expense | 519 | 923 | |
Accounts payable and other liabilities | 133 | (117) | |
Total liabilities of consolidated VIEs | 480,755 | $ 1,036,733 | |
VIE, Primary Beneficiary | |||
ASSETS | |||
Restricted cash | 3,308 | ||
Investments securities available-for-sale, pledged as collateral, at fair value | 369 | $ 69,000 | |
Loans, pledged as collateral | 747,726 | ||
Loans held for sale | 1,007 | ||
Interest receivable | 3,153 | ||
Principal paydown receivable | 5,820 | ||
Other assets | 58 | ||
Total assets of consolidated VIEs | 761,441 | ||
LIABILITIES | |||
Borrowings | 480,103 | ||
Accrued interest expense | 519 | ||
Accounts payable and other liabilities | 133 | ||
Total liabilities of consolidated VIEs | 480,755 | ||
Restricted cash available for reinvestment in certain of the CDOs | 1,800 | ||
VIE, Primary Beneficiary | Apidos I | |||
ASSETS | |||
Restricted cash | 255 | ||
Investments securities available-for-sale, pledged as collateral, at fair value | 0 | ||
Loans, pledged as collateral | 0 | ||
Loans held for sale | 0 | ||
Interest receivable | 0 | ||
Principal paydown receivable | 0 | ||
Other assets | 9 | ||
Total assets of consolidated VIEs | 264 | ||
LIABILITIES | |||
Borrowings | 0 | ||
Accrued interest expense | 0 | ||
Accounts payable and other liabilities | 0 | ||
Total liabilities of consolidated VIEs | 0 | ||
VIE, Primary Beneficiary | Apidos III | |||
ASSETS | |||
Restricted cash | 125 | ||
Investments securities available-for-sale, pledged as collateral, at fair value | 0 | ||
Loans, pledged as collateral | 0 | ||
Loans held for sale | 0 | ||
Interest receivable | 0 | ||
Principal paydown receivable | 0 | ||
Other assets | 2 | ||
Total assets of consolidated VIEs | 127 | ||
LIABILITIES | |||
Borrowings | 0 | ||
Accrued interest expense | 0 | ||
Accounts payable and other liabilities | 0 | ||
Total liabilities of consolidated VIEs | 0 | ||
VIE, Primary Beneficiary | Apidos Cinco | |||
ASSETS | |||
Restricted cash | 934 | ||
Investments securities available-for-sale, pledged as collateral, at fair value | 369 | ||
Loans, pledged as collateral | 0 | ||
Loans held for sale | 1,007 | ||
Interest receivable | 0 | ||
Principal paydown receivable | 0 | ||
Other assets | 0 | ||
Total assets of consolidated VIEs | 2,310 | ||
LIABILITIES | |||
Borrowings | 0 | ||
Accrued interest expense | 0 | ||
Accounts payable and other liabilities | 0 | ||
Total liabilities of consolidated VIEs | 0 | ||
VIE, Primary Beneficiary | Whitney CLO I | |||
ASSETS | |||
Restricted cash | 195 | ||
Investments securities available-for-sale, pledged as collateral, at fair value | 0 | ||
Loans, pledged as collateral | 0 | ||
Loans held for sale | 0 | ||
Interest receivable | 0 | ||
Principal paydown receivable | 0 | ||
Other assets | 0 | ||
Total assets of consolidated VIEs | 195 | ||
LIABILITIES | |||
Borrowings | 0 | ||
Accrued interest expense | 0 | ||
Accounts payable and other liabilities | 0 | ||
Total liabilities of consolidated VIEs | 0 | ||
VIE, Primary Beneficiary | RCC 2014-CRE2 | |||
ASSETS | |||
Restricted cash | 0 | ||
Investments securities available-for-sale, pledged as collateral, at fair value | 0 | ||
Loans, pledged as collateral | 249,957 | ||
Loans held for sale | 0 | ||
Interest receivable | 1,034 | ||
Principal paydown receivable | 0 | ||
Other assets | 0 | ||
Total assets of consolidated VIEs | 250,991 | ||
LIABILITIES | |||
Borrowings | 130,066 | ||
Accrued interest expense | 120 | ||
Accounts payable and other liabilities | 21 | ||
Total liabilities of consolidated VIEs | 130,207 | ||
VIE, Primary Beneficiary | RCC 2015-CRE3 | |||
ASSETS | |||
Restricted cash | 0 | ||
Investments securities available-for-sale, pledged as collateral, at fair value | 0 | ||
Loans, pledged as collateral | 259,144 | ||
Loans held for sale | 0 | ||
Interest receivable | 1,145 | ||
Principal paydown receivable | 0 | ||
Other assets | 0 | ||
Total assets of consolidated VIEs | 260,289 | ||
LIABILITIES | |||
Borrowings | 193,755 | ||
Accrued interest expense | 231 | ||
Accounts payable and other liabilities | 53 | ||
Total liabilities of consolidated VIEs | 194,039 | ||
VIE, Primary Beneficiary | RCC 2015-CRE4 | |||
ASSETS | |||
Restricted cash | 1,799 | ||
Investments securities available-for-sale, pledged as collateral, at fair value | 0 | ||
Loans, pledged as collateral | 238,625 | ||
Loans held for sale | 0 | ||
Interest receivable | 974 | ||
Principal paydown receivable | 5,820 | ||
Other assets | 47 | ||
Total assets of consolidated VIEs | 247,265 | ||
LIABILITIES | |||
Borrowings | 156,282 | ||
Accrued interest expense | 168 | ||
Accounts payable and other liabilities | 59 | ||
Total liabilities of consolidated VIEs | $ 156,509 |
VARIABLE INTEREST ENTITIES (S71
VARIABLE INTEREST ENTITIES (Schedule of Classification, Carrying Value, and Maximum Exposure to Loss of Unconsolidated VIEs) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Variable Interest Entity [Line Items] | ||
Investment in unconsolidated entities | $ 87,919 | $ 50,030 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment in unconsolidated entities | 87,919 | |
Investment securities, available-for-sale | 20,115 | |
Intangible assets | 213 | |
Total assets | 108,247 | |
Borrowings | 51,548 | |
Total liabilities | 51,548 | |
Net asset (liability) | 56,699 | |
Variable Interest Entity, Not Primary Beneficiary | Investment in unconsolidated entities | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 87,919 | |
Variable Interest Entity, Not Primary Beneficiary | Investment securities, available-for-sale | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 20,115 | |
Variable Interest Entity, Not Primary Beneficiary | Intangible assets | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 213 | |
Variable Interest Entity, Not Primary Beneficiary | LCC | ||
Variable Interest Entity [Line Items] | ||
Investment in unconsolidated entities | 42,960 | |
Investment securities, available-for-sale | 0 | |
Intangible assets | 0 | |
Total assets | 42,960 | |
Borrowings | 0 | |
Total liabilities | 0 | |
Net asset (liability) | 42,960 | |
Variable Interest Entity, Not Primary Beneficiary | Unsecured Junior Subordinated Debentures | ||
Variable Interest Entity [Line Items] | ||
Investment in unconsolidated entities | 1,548 | |
Investment securities, available-for-sale | 0 | |
Intangible assets | 0 | |
Total assets | 1,548 | |
Borrowings | 51,548 | |
Total liabilities | 51,548 | |
Net asset (liability) | (50,000) | |
Variable Interest Entity, Not Primary Beneficiary | RCAM Managed CDOs | ||
Variable Interest Entity [Line Items] | ||
Investment in unconsolidated entities | 0 | |
Investment securities, available-for-sale | 0 | |
Intangible assets | 213 | |
Total assets | 213 | |
Borrowings | 0 | |
Total liabilities | 0 | |
Net asset (liability) | 213 | |
Variable Interest Entity, Not Primary Beneficiary | Investment in Harvest CLOs | ||
Variable Interest Entity [Line Items] | ||
Investment in unconsolidated entities | 0 | |
Investment securities, available-for-sale | 20,115 | |
Intangible assets | 0 | |
Total assets | 20,115 | |
Borrowings | 0 | |
Total liabilities | 0 | |
Net asset (liability) | 20,115 | |
Variable Interest Entity, Not Primary Beneficiary | RCM Global LLC | ||
Variable Interest Entity [Line Items] | ||
Investment in unconsolidated entities | 465 | |
Investment securities, available-for-sale | 0 | |
Intangible assets | 0 | |
Total assets | 465 | |
Borrowings | 0 | |
Total liabilities | 0 | |
Net asset (liability) | 465 | |
Variable Interest Entity, Not Primary Beneficiary | Pelium Capital | ||
Variable Interest Entity [Line Items] | ||
Investment in unconsolidated entities | 25,993 | |
Investment securities, available-for-sale | 0 | |
Intangible assets | 0 | |
Total assets | 25,993 | |
Borrowings | 0 | |
Total liabilities | 0 | |
Net asset (liability) | 25,993 | |
Variable Interest Entity, Not Primary Beneficiary | Pearlmark Mezz | ||
Variable Interest Entity [Line Items] | ||
Investment in unconsolidated entities | 16,953 | |
Investment securities, available-for-sale | 0 | |
Intangible assets | 0 | |
Total assets | 16,953 | |
Borrowings | 0 | |
Total liabilities | 0 | |
Net asset (liability) | $ 16,953 |
SUPPLEMENTAL CASH FLOW INFORM72
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Non-cash continuing operating activities include the following: | ||||||||||||
Reclassification of linked transactions, net at fair value to investment securities available-for-sale, pledged as collateral, at fair value and borrowings | $ 0 | $ 15,367 | $ 0 | |||||||||
Non-cash discontinued operating activities include the following: | ||||||||||||
Interest expense paid by third party | $ (13,346) | $ (13,653) | $ (13,446) | $ (13,302) | $ (15,343) | $ (14,562) | $ (13,637) | $ (12,988) | (53,747) | (56,530) | (43,493) | |
Operating liabilities assumed by third party | [1] | (1,350,453) | (1,938,802) | (1,350,453) | (1,938,802) | |||||||
Non-cash continuing 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 | 0 | 48,764 | 0 | |||||||||
Retained beneficial interest in unconsolidated securitization entities | (22,476) | 0 | 0 | |||||||||
Restricted cash acquired through securitizations called or liquidated | (934) | 0 | 0 | |||||||||
Loans acquired through securitizations called or liquidated | (157,070) | 0 | 0 | |||||||||
Securities acquired through securitizations called or liquidated | (40,892) | 0 | 0 | |||||||||
Assumption of direct financing leases and other assets | 0 | 0 | 2,385 | |||||||||
Non-cash continuing financing activities include the following: | ||||||||||||
Contribution of security deposits and other liabilities | 0 | 0 | 457 | |||||||||
Reclassification of linked transactions, net at fair value to borrowings | 0 | 33,397 | 0 | |||||||||
Non-cash Discontinued Financing Activities Include The Following [Abstract] | ||||||||||||
Senior secured revolving credit facility assumed by third party | (122,000) | 0 | 0 | |||||||||
Senior secured revolving credit facility paid down by third party | (22,000) | 0 | 0 | |||||||||
Common Stock | ||||||||||||
Non-cash continuing financing activities include the following: | ||||||||||||
Distributions on common and preferred stock declared but not paid | 1,550 | 13,274 | 1,550 | 13,274 | 26,563 | |||||||
Preferred Stock | ||||||||||||
Non-cash continuing financing activities include the following: | ||||||||||||
Distributions on common and preferred stock declared but not paid | 4,010 | 4,077 | 4,010 | 4,077 | 6,044 | |||||||
Interest expense paid by third party | ||||||||||||
Non-cash discontinued operating activities include the following: | ||||||||||||
Interest expense paid by third party | (107) | 0 | 0 | |||||||||
Operating liabilities assumed by third party | ||||||||||||
Non-cash discontinued operating activities include the following: | ||||||||||||
Operating liabilities assumed by third party | $ (192) | $ 0 | $ (192) | $ 0 | $ 0 | |||||||
[1] | December 31, 2016 December 31, 2015Liabilities of consolidated VIEs included in the total liabilities above: Borrowings$480,103 $1,032,581 Accrued interest expense519 923 Derivatives, at fair value— 3,346 Unsettled loan purchases— — Accounts payable and other liabilities133 (117) Total liabilities of consolidated VIEs$480,755 $1,036,733 |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | [1] | $ 3,544 | $ 40,635 |
Cash held by consolidated securitizations | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | 3,308 | 39,062 | |
Restricted cash pledged with minimum reserve balance requirements | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | 216 | 218 | |
Cash collateralizing outstanding margin calls on cash flow hedges | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | 0 | 500 | |
Cash collateralizing margin posted to clearing house interest rate agreements | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 20 | $ 855 | |
[1] | December 31, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $95 Restricted cash$3,308 $39,061 Investments securities available-for-sale, pledged as collateral, at fair value369 66,137 Loans held for sale1,007 1,475Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million747,726 1,416,441 Interest receivable3,153 6,592 Principal paydown receivable5,820 17,800Investment securities available-for-sale, pledged as collateral, at fair value369 66,137 Other assets58 1,071 Total assets of consolidated VIEs$761,441 $1,548,672 |
LOANS (Summary of Loans) (Detai
LOANS (Summary of Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 01, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables with Imputed Interest [Line Items] | ||||
Principal | $ 1,836,936 | |||
Unamortized (discount) premium, gross | (10,312) | |||
Gross carrying value of loans held for investment | 1,826,624 | |||
Loans receivable allowance | $ (3,829) | (43,121) | ||
Unamortized (discount) premium, gross, allowance for loan loss | 0 | 0 | ||
Carrying value, allowance for loan loss | (3,829) | (43,121) | ||
Principal, net | 1,292,097 | 1,793,815 | ||
Unamortized (discount) premium, net | (5,819) | (10,312) | ||
Net carrying value of loans held for investment | 1,286,278 | 1,783,503 | ||
First lien loans held for sale at fair value | 1,007 | 1,475 | ||
Financing receivable, net and loans receivable held-for-sale | 1,293,104 | 1,795,290 | ||
Net carrying value of loans held for investment | 1,287,285 | 1,784,978 | ||
Deferred amendment fees | 4 | 42 | ||
Financing receivable, allowance for credit losses | 4,294 | 43,586 | $ 4,613 | |
Syndicated corporate loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal | $ 134,500 | 134,890 | ||
Unamortized (discount) premium, gross | (373) | |||
Gross carrying value of loans held for investment | 134,517 | |||
First lien loans held for sale at fair value | 1,007 | 1,475 | ||
Deferred upfront fee | 12 | |||
Financing receivable, allowance for credit losses | 41,700 | |||
Commercial Real Estate Debt Investments | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal | 1,702,046 | |||
Unamortized (discount) premium, gross | (9,939) | |||
Gross carrying value of loans held for investment | 1,692,107 | |||
Loan origination fees | 5,800 | 9,900 | ||
Commercial Real Estate Debt Investments | Whole loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal | 1,295,926 | $ 271,800 | 1,640,744 | |
Unamortized (discount) premium, gross | (5,819) | (9,943) | ||
Gross carrying value of loans held for investment | $ 1,290,107 | 1,630,801 | ||
Commercial Real Estate Debt Investments | B notes | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal | 15,934 | |||
Unamortized (discount) premium, gross | 0 | |||
Gross carrying value of loans held for investment | 15,934 | |||
Commercial Real Estate Debt Investments | Mezzanine loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal | 45,368 | |||
Unamortized (discount) premium, gross | 4 | |||
Gross carrying value of loans held for investment | $ 45,372 |
LOANS (Commercial Real Estate L
LOANS (Commercial Real Estate Loans Held for Investment) (Details) $ in Thousands | Feb. 28, 2017USD ($) | Dec. 31, 2016USD ($)Loan | Jan. 31, 2016USD ($) | Dec. 31, 2015USD ($)Loan | Jun. 30, 2015USD ($)Loan |
Receivables with Imputed Interest [Line Items] | |||||
Amortized Cost | $ 7,000 | ||||
Allowance for loan loss | 3,829 | $ 43,121 | |||
Individually evaluated for impairment | $ 2,965 | $ 42,021 | |||
Commercial Real Estate Debt Investments | |||||
Receivables with Imputed Interest [Line Items] | |||||
Quantity of loans | Loan | 67 | 90 | |||
Amortized Cost | $ 1,290,107 | $ 1,692,107 | |||
Whole Loans, Floating Rate | |||||
Receivables with Imputed Interest [Line Items] | |||||
Loans held for investment, unfunded loan commitments | $ 55,500 | $ 112,600 | |||
Whole Loans, Floating Rate | Commercial Real Estate Debt Investments | |||||
Receivables with Imputed Interest [Line Items] | |||||
Quantity of loans | Loan | 67 | 87 | |||
Amortized Cost | $ 1,290,107 | $ 1,630,801 | |||
Whole Loans, Floating Rate | Minimum | Commercial Real Estate Debt Investments | |||||
Receivables with Imputed Interest [Line Items] | |||||
Basis spread on variable rate | 3.75% | 1.75% | |||
Whole Loans, Floating Rate | Maximum | Commercial Real Estate Debt Investments | |||||
Receivables with Imputed Interest [Line Items] | |||||
Basis spread on variable rate | 6.45% | 15.00% | |||
B Notes, Fixed Rate | Commercial Real Estate Debt Investments | |||||
Receivables with Imputed Interest [Line Items] | |||||
Quantity of loans | Loan | 1 | ||||
Amortized Cost | $ 15,900 | $ 15,934 | |||
Contracted Interest Rates | 8.68% | ||||
Mezzanine Loans, Fixed Rate | |||||
Receivables with Imputed Interest [Line Items] | |||||
Quantity of loans | Loan | 1 | ||||
Mezzanine Loans, Fixed Rate | Commercial Real Estate Debt Investments | |||||
Receivables with Imputed Interest [Line Items] | |||||
Quantity of loans | Loan | 2 | ||||
Amortized Cost | $ 45,372 | ||||
Contracted Interest Rates | 9.01% | ||||
Not included in total | |||||
Receivables with Imputed Interest [Line Items] | |||||
Allowance for loan loss | $ 3,800 | $ 41,800 | |||
Mezzanine loans | |||||
Receivables with Imputed Interest [Line Items] | |||||
Allowance for loan loss | 38,079 | ||||
Mezzanine loans | Commercial Real Estate Debt Investments | |||||
Receivables with Imputed Interest [Line Items] | |||||
Amortized Cost | 45,372 | ||||
Preferred equity tranche | |||||
Receivables with Imputed Interest [Line Items] | |||||
Amortized Cost | $ 799 | ||||
Preferred equity tranche | Commercial Real Estate Debt Investments | |||||
Receivables with Imputed Interest [Line Items] | |||||
Fixed preferred equity interest in floating rate whole loan | 10.00% | ||||
Whole Loans, Floating Rate, Modification | Commercial Real Estate Debt Investments | |||||
Receivables with Imputed Interest [Line Items] | |||||
Amortized Cost | $ 32,500 | ||||
Whole Loans, Floating Rate, Modification | Minimum | Commercial Real Estate Debt Investments | |||||
Receivables with Imputed Interest [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
Senior Component | Whole Loans, Floating Rate | Commercial Real Estate Debt Investments | |||||
Receivables with Imputed Interest [Line Items] | |||||
Quantity | Loan | 2 | ||||
The amortized cost of loans held for investments, fixed rate whole loans included in floating rate whole loans. | $ 51,200 | ||||
Fixed contractual interest in floating rate whole loan | 0.50% | ||||
Mezzanine loans | |||||
Receivables with Imputed Interest [Line Items] | |||||
Individually evaluated for impairment | $ 38,100 | ||||
Mezzanine loans | Whole Loans, Floating Rate | Commercial Real Estate Debt Investments | |||||
Receivables with Imputed Interest [Line Items] | |||||
Quantity | Loan | 2 | ||||
The amortized cost of loans held for investments, fixed rate whole loans included in floating rate whole loans. | $ 12,000 | ||||
Fixed contractual interest in floating rate whole loan | 12.00% | ||||
Whole Loans, Floating Rate, Modification | Whole Loans, Floating Rate | Commercial Real Estate Debt Investments | |||||
Receivables with Imputed Interest [Line Items] | |||||
Quantity | Loan | 2 | ||||
The amortized cost of loans held for investments, fixed rate whole loans included in floating rate whole loans. | $ 4,200 | ||||
Fixed contractual interest in floating rate whole loan | 15.00% | ||||
Subsequent Event | Whole Loans, Floating Rate | Commercial Real Estate Debt Investments | |||||
Receivables with Imputed Interest [Line Items] | |||||
Amortized Cost | $ 13,000 |
LOANS (Weighted Average Life of
LOANS (Weighted Average Life of Commercial Real Estate Loans, at Amortized Cost) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Receivables with Imputed Interest [Line Items] | ||
Total | $ 7,000 | |
Commercial Real Estate Debt Investments | ||
Receivables with Imputed Interest [Line Items] | ||
2,017 | 7,000 | $ 38,903 |
2,018 | 24,476 | 140,712 |
2019 and Thereafter | 1,258,631 | 1,512,492 |
Total | 1,290,107 | 1,692,107 |
Commercial Real Estate Debt Investments | Whole loans | ||
Receivables with Imputed Interest [Line Items] | ||
2,017 | 7,000 | 9,958 |
2,018 | 24,476 | 140,712 |
2019 and Thereafter | 1,258,631 | 1,480,131 |
Total | $ 1,290,107 | 1,630,801 |
Commercial Real Estate Debt Investments | B notes | ||
Receivables with Imputed Interest [Line Items] | ||
2,017 | 15,934 | |
2,018 | 0 | |
2019 and Thereafter | 0 | |
Total | 15,934 | |
Commercial Real Estate Debt Investments | Mezzanine loans | ||
Receivables with Imputed Interest [Line Items] | ||
2,017 | 13,011 | |
2,018 | 0 | |
2019 and Thereafter | 32,361 | |
Total | $ 45,372 |
LOANS (Textuals) (Details)
LOANS (Textuals) (Details) | Dec. 31, 2016USD ($) | Nov. 14, 2016Loan | Jan. 01, 2016USD ($)Loan | Dec. 31, 2015USD ($) | |
Receivables with Imputed Interest [Line Items] | |||||
Available-for-sale Securities | $ 124,968,000 | $ 208,088,000 | |||
Less than one year | 80,801,000 | 118,215,000 | |||
Greater than one year and less than five years | 17,197,000 | 68,808,000 | |||
Loans held for sale, net | [1] | 1,007,000 | 1,475,000 | ||
Allowance for loan loss | 3,829,000 | 43,121,000 | |||
Principal paydowns receivable | [1] | $ 19,280,000 | 17,941,000 | ||
Bank and Middle Market Loans | |||||
Receivables with Imputed Interest [Line Items] | |||||
Loans held for sale, net | 134,700,000 | ||||
Allowance for loan loss | $ 1,300,000 | ||||
Commercial Real Estate Debt Investments | California | |||||
Receivables with Imputed Interest [Line Items] | |||||
Concentration of loan portfolio risk (in hundredths) | 19.20% | 28.70% | |||
Commercial Real Estate Debt Investments | Texas | |||||
Receivables with Imputed Interest [Line Items] | |||||
Concentration of loan portfolio risk (in hundredths) | 30.70% | 26.80% | |||
Commercial Real Estate Debt Investments | Georgia | |||||
Receivables with Imputed Interest [Line Items] | |||||
Concentration of loan portfolio risk (in hundredths) | 7.30% | 7.40% | |||
Syndicated corporate loans | Minimum | |||||
Receivables with Imputed Interest [Line Items] | |||||
Basis spread on variable rate | 1.25% | ||||
Syndicated corporate loans | Maximum | |||||
Receivables with Imputed Interest [Line Items] | |||||
Basis spread on variable rate | 8.00% | ||||
Syndicated corporate loans | Industry Grouping of Automobile | |||||
Receivables with Imputed Interest [Line Items] | |||||
Concentration of loan portfolio risk (in hundredths) | 13.50% | ||||
Syndicated corporate loans | Industry Grouping of Diversified/conglomerate Service | |||||
Receivables with Imputed Interest [Line Items] | |||||
Concentration of loan portfolio risk (in hundredths) | 13.00% | ||||
Syndicated corporate loans | Industry Grouping of Retail Stores | |||||
Receivables with Imputed Interest [Line Items] | |||||
Concentration of loan portfolio risk (in hundredths) | 9.60% | ||||
Apidos Cinco | |||||
Receivables with Imputed Interest [Line Items] | |||||
Number of loans | Loan | 3 | ||||
Apidos Cinco | |||||
Receivables with Imputed Interest [Line Items] | |||||
Number of loans | Loan | 3 | ||||
Available-for-sale Securities | $ 1,000,000 | ||||
Syndicated corporate loans | |||||
Receivables with Imputed Interest [Line Items] | |||||
Less than one year | $ 3,922,000 | ||||
Greater than one year and less than five years | $ 128,480,000 | ||||
Syndicated corporate loans | Second lien loans | Apidos Cinco | |||||
Receivables with Imputed Interest [Line Items] | |||||
Less than one year | $ 221,000 | ||||
Greater than one year and less than five years | $ 786,000 | ||||
[1] | December 31, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $95 Restricted cash$3,308 $39,061 Investments securities available-for-sale, pledged as collateral, at fair value369 66,137 Loans held for sale1,007 1,475Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million747,726 1,416,441 Interest receivable3,153 6,592 Principal paydown receivable5,820 17,800Investment securities available-for-sale, pledged as collateral, at fair value369 66,137 Other assets58 1,071 Total assets of consolidated VIEs$761,441 $1,548,672 |
LOANS (Loans Held for Investmen
LOANS (Loans Held for Investment) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | $ 135,992 | |
First lien loans held for sale at fair value | $ 1,007 | 1,475 |
Apidos I | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 153 | |
Apidos Cinco | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 135,839 | |
First lien loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 131,281 | |
First lien loans held for sale at fair value | 1,475 | |
First lien loans | Apidos I | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | |
First lien loans held for sale at fair value | 153 | |
First lien loans | Apidos Cinco | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 131,281 | |
First lien loans held for sale at fair value | 1,322 | |
Second lien loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 1,692 | |
Second lien loans | Apidos I | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | |
Second lien loans | Apidos Cinco | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 1,692 | |
Defaulted first lien loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 1,544 | |
Defaulted first lien loans | Apidos I | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | |
Defaulted first lien loans | Apidos Cinco | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 1,544 | |
Commercial Real Estate Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 134,517 | |
Commercial Real Estate Loans | Apidos I | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | |
Commercial Real Estate Loans | Apidos Cinco | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | $ 134,517 |
LOANS (Weighted Average Life 79
LOANS (Weighted Average Life of Bank Loans, at Amortized Cost) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 7,000 | |
Syndicated corporate 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 (Allocation of Allowance
LOANS (Allocation of Allowance for Loan Loss for Commercial and Bank Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 01, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables with Imputed Interest [Line Items] | ||||
Allowance for Loan Loss | $ 3,829 | $ 43,121 | ||
Principal | 1,836,936 | |||
Financing receivable, allowance for credit losses | $ 4,294 | 43,586 | $ 4,613 | |
Whole loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Allowance for Loan Loss | $ 3,745 | |||
Percentage of Total Allowance | 100.00% | 8.68% | ||
B notes | ||||
Receivables with Imputed Interest [Line Items] | ||||
Allowance for Loan Loss | $ 15 | |||
Percentage of Total Allowance | 0.04% | |||
Mezzanine loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Allowance for Loan Loss | $ 38,079 | |||
Percentage of Total Allowance | 88.31% | |||
Syndicated corporate loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Allowance for Loan Loss | $ 1,282 | |||
Percentage of Total Allowance | 2.97% | |||
Principal | $ 134,500 | $ 134,890 | ||
Financing receivable, allowance for credit losses | 41,700 | |||
Commercial Real Estate Debt Investments | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal | 1,702,046 | |||
Commercial Real Estate Debt Investments | Whole loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal | $ 1,295,926 | $ 271,800 | 1,640,744 | |
Commercial Real Estate Debt Investments | B notes | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal | 15,934 | |||
Commercial Real Estate Debt Investments | Mezzanine loans | ||||
Receivables with Imputed Interest [Line Items] | ||||
Principal | $ 45,368 |
FINANCING RECEIVABLES (Allowanc
FINANCING RECEIVABLES (Allowance for Loan Losses and Recorded Investments in Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | $ 43,586 | $ 4,613 |
Provision (recovery) for loan and lease losses | 17,765 | 41,087 |
Loans charged-off | 402 | (2,175) |
Transfer to Loans Held For Sale | (15,763) | |
Recoveries | 61 | |
Deconsolidation of VIEs | (41,696) | |
Allowance for losses at end of period | 4,294 | 43,586 |
Allowance for losses, ending balance: | ||
Individually evaluated for impairment | 2,965 | 42,021 |
Collectively evaluated for impairment | 1,329 | 1,565 |
Loans, ending balance: | ||
Individually evaluated for impairment | 7,992 | 172,647 |
Collectively evaluated for impairment | 1,283,107 | 1,655,373 |
Financing Receivable, Net | 1,292,097 | 1,793,815 |
Commercial Real Estate Loans | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 41,839 | 4,043 |
Provision (recovery) for loan and lease losses | 18,167 | 37,735 |
Loans charged-off | 0 | 0 |
Transfer to Loans Held For Sale | (15,763) | |
Recoveries | 61 | |
Deconsolidation of VIEs | (40,414) | |
Allowance for losses at end of period | 3,829 | 41,839 |
Allowance for losses, ending balance: | ||
Individually evaluated for impairment | 2,500 | 40,274 |
Collectively evaluated for impairment | 1,329 | 1,565 |
Loans, ending balance: | ||
Individually evaluated for impairment | 7,000 | 169,707 |
Collectively evaluated for impairment | 1,283,107 | 1,522,400 |
Financing Receivable, Net | 1,448,285 | 1,692,107 |
Syndicated corporate loans | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 1,282 | 570 |
Provision (recovery) for loan and lease losses | (402) | 2,887 |
Loans charged-off | 402 | (2,175) |
Transfer to Loans Held For Sale | 0 | |
Recoveries | 0 | |
Deconsolidation of VIEs | (1,282) | |
Allowance for losses at end of period | 0 | 1,282 |
Allowance for losses, ending balance: | ||
Individually evaluated for impairment | 0 | 1,282 |
Collectively evaluated for impairment | 0 | 0 |
Loans, ending balance: | ||
Individually evaluated for impairment | 0 | 1,544 |
Collectively evaluated for impairment | 0 | 132,973 |
Financing Receivable, Net | 1,007 | 135,992 |
Loans Receivable - Direct Financing Leases | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 465 | 0 |
Provision (recovery) for loan and lease losses | 0 | 465 |
Loans charged-off | 0 | 0 |
Transfer to Loans Held For Sale | 0 | |
Recoveries | 0 | |
Deconsolidation of VIEs | 0 | |
Allowance for losses at end of period | 465 | 465 |
Allowance for losses, ending balance: | ||
Individually evaluated for impairment | 465 | 465 |
Collectively evaluated for impairment | 0 | 0 |
Loans, ending balance: | ||
Individually evaluated for impairment | 992 | 1,396 |
Collectively evaluated for impairment | 0 | 0 |
Loans acquired with deteriorated credit quality | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 0 | |
Allowance for losses at end of period | 0 | 0 |
Loans, ending balance: | ||
Financing Receivable, Net | 0 | 0 |
Loans acquired with deteriorated credit quality | Commercial Real Estate Loans | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 0 | |
Allowance for losses at end of period | 0 | 0 |
Loans, ending balance: | ||
Financing Receivable, Net | 0 | 0 |
Loans acquired with deteriorated credit quality | Syndicated corporate loans | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 0 | |
Allowance for losses at end of period | 0 | 0 |
Loans, ending balance: | ||
Financing Receivable, Net | 0 | 0 |
Loans acquired with deteriorated credit quality | Loans Receivable - Direct Financing Leases | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 0 | |
Allowance for losses at end of period | 0 | 0 |
Loans, ending balance: | ||
Financing Receivable, Net | $ 0 | $ 0 |
FINANCING RECEIVABLES (Credit R
FINANCING RECEIVABLES (Credit Risk Profiles of Commercial Real Estate Loans) (Details) $ in Thousands | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)Loan |
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | $ 1,292,097 | $ 1,793,815 |
First lien loans held for sale at fair value | 1,007 | 1,475 |
Value of Collateral | 4,500 | |
Whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 1,290,107 | $ 1,630,801 |
Number of impaired loans | Loan | 1 | |
Whole loans | Rating 1 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 1,186,292 | $ 1,596,099 |
Whole loans | Rating 2 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 96,815 | 32,500 |
Whole loans | Rating 3 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Whole loans | Rating 4 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 7,000 | 2,202 |
Whole loans | Held for Sale | ||
Schedule Of Financing Receivables [Line Items] | ||
First lien loans held for sale at fair value | 0 | 0 |
CRE legacy whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 158,178 | |
First lien loans held for sale at fair value | 54,300 | |
CRE legacy whole loans | Rating 1 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | |
CRE legacy whole loans | Rating 2 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | |
CRE legacy whole loans | Rating 3 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | |
CRE legacy whole loans | Rating 4 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | |
CRE legacy whole loans | Held for Sale | ||
Schedule Of Financing Receivables [Line Items] | ||
First lien loans held for sale at fair value | 158,178 | |
B notes | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 15,934 | |
B notes | Rating 1 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 15,934 | |
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] | ||
First lien loans held for sale at fair value | 0 | |
Mezzanine loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 45,372 |
Mezzanine loans | Rating 1 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 7,300 |
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 |
Mezzanine loans | Held for Sale | ||
Schedule Of Financing Receivables [Line Items] | ||
First lien loans held for sale at fair value | 0 | 0 |
Commercial Real Estate Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 1,448,285 | 1,692,107 |
Commercial Real Estate Loans | Rating 1 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 1,186,292 | 1,619,333 |
Commercial Real Estate Loans | Rating 2 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 96,815 | 32,500 |
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 | 7,000 | 40,274 |
Commercial Real Estate Loans | Held for Sale | ||
Schedule Of Financing Receivables [Line Items] | ||
First lien loans held for sale at fair value | $ 158,178 | $ 0 |
FINANCING RECEIVABLES (Textuals
FINANCING RECEIVABLES (Textuals) (Details) | Feb. 28, 2017USD ($) | Dec. 31, 2016USD ($)Loan | Dec. 31, 2016USD ($)Loan | Dec. 31, 2015USD ($)LoanProperty | Dec. 31, 2014USD ($) | Nov. 25, 2016USD ($) | Sep. 30, 2016USD ($) | Jan. 01, 2016Security | Jun. 30, 2015Property | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Number of defaulted loans | Loan | 1 | |||||||||
Pre-modification outstanding recorded balance | $ 29,459,000 | $ 138,031,000 | ||||||||
Post-modification outstanding recorded balance | $ 21,400,000 | $ 99,959,000 | ||||||||
Number of loans, appraisals | Loan | 8 | 8 | ||||||||
Amortized cost | $ 7,000,000 | $ 7,000,000 | ||||||||
Number of properties, loan portfolio | Property | 13 | 2 | ||||||||
Subsequent default, number of contracts | Loan | 1 | |||||||||
Value of Collateral | 4,500,000 | 4,500,000 | ||||||||
Proceeds from sale of securities available-for-sale | 2,818,000 | $ 65,787,000 | $ 147,171,000 | |||||||
Loans and receivables | 1,292,097,000 | 1,292,097,000 | 1,793,815,000 | |||||||
Net carrying value of loans held for investment | 1,287,285,000 | 1,287,285,000 | 1,784,978,000 | |||||||
Financing receivable, allowance for credit losses, write-downs | (402,000) | 2,175,000 | ||||||||
Provision (recovery) for loan and lease losses | 17,765,000 | 41,087,000 | ||||||||
Direct financing leases, net of provisions | [1] | 527,000 | 527,000 | 931,000 | ||||||
Recorded balance | $ 7,000,000 | $ 7,000,000 | $ 171,251,000 | |||||||
Rating 4 | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Number of loans, trigger Items | Loan | 1 | 1 | 1 | |||||||
Financing receivable, allowance for credit losses, write-downs | $ 38,100,000 | |||||||||
Interest income, allowance for credit losses, write-downs | 3,000,000 | |||||||||
Allowance for loan and lease losses, write-offs | 41,100,000 | |||||||||
Mezzanine loans | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Pre-modification outstanding recorded balance | $ 0 | 38,072,000 | ||||||||
Post-modification outstanding recorded balance | $ 0 | 0 | ||||||||
Number of loans, trigger items, loans held for sale | Loan | 1 | 1 | ||||||||
Loans and receivables | $ 0 | $ 0 | 45,372,000 | |||||||
Recorded balance | 0 | 0 | 38,072,000 | |||||||
Mezzanine loans | Rating 4 | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans and receivables | 0 | 0 | 38,072,000 | |||||||
Syndicated corporate loans | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Pre-modification outstanding recorded balance | 0 | 0 | ||||||||
Post-modification outstanding recorded balance | 0 | 0 | ||||||||
Amortized cost | 135,992,000 | |||||||||
Loans and receivables | 1,007,000 | 1,007,000 | 135,992,000 | |||||||
Financing receivable, allowance for credit losses, write-downs | (402,000) | 2,175,000 | ||||||||
Provision (recovery) for loan and lease losses | (402,000) | 2,887,000 | ||||||||
Recorded balance | 0 | 0 | 1,544,000 | |||||||
Syndicated corporate loans | Rating 4 | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans and receivables | 0 | 0 | 0 | |||||||
Syndicated corporate loans | Rating 5 | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans and receivables | $ 0 | $ 0 | $ 1,544,000 | |||||||
Syndicated corporate loans | Nonperforming Financing Receivable | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Number of defaulted loans | Loan | 2 | 2 | 1 | |||||||
Subsequent default, number of contracts | Loan | 1 | |||||||||
Loans and receivables | $ 221,000 | $ 221,000 | $ 1,500,000 | |||||||
Loans Receivable - Direct Financing Leases | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Financing receivable, allowance for credit losses, write-downs | 0 | 0 | ||||||||
Provision (recovery) for loan and lease losses | 0 | $ 465,000 | ||||||||
Whole loans | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Number of impaired loans | Loan | 1 | |||||||||
Pre-modification outstanding recorded balance | 0 | $ 99,959,000 | ||||||||
Post-modification outstanding recorded balance | 0 | 99,959,000 | ||||||||
Loans and receivables | 1,290,107,000 | 1,290,107,000 | 1,630,801,000 | |||||||
Recorded balance | 7,000,000 | 7,000,000 | 131,635,000 | |||||||
Whole loans | Rating 4 | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans and receivables | $ 7,000,000 | $ 7,000,000 | $ 2,202,000 | |||||||
CRE legacy whole loans | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Number of defaulted loans | Loan | 1 | 1 | ||||||||
Pre-modification outstanding recorded balance | $ 29,459,000 | |||||||||
Post-modification outstanding recorded balance | $ 21,400,000 | |||||||||
Number of loans, trigger items, loans held for sale | Loan | 8 | 8 | ||||||||
Subsequent default, number of contracts | Loan | 2 | |||||||||
Loans and receivables | $ 158,178,000 | $ 158,178,000 | ||||||||
Net carrying value of loans held for investment | 61,400,000 | 61,400,000 | ||||||||
Number of CDO's | Security | 2 | |||||||||
CRE legacy whole loans | Rating 4 | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans and receivables | $ 0 | $ 0 | ||||||||
CRE legacy whole loans | Rating 1 and 2 | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Number of loans | Loan | 3 | 3 | ||||||||
Loans and receivables | $ 47,500,000 | $ 47,500,000 | ||||||||
Loan One | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Financing receivable, allowance for credit losses, effect of change in method | 2,500,000 | |||||||||
CRE legacy whole loans | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Financing receivable, allowance for credit losses, effect of change in method | 15,800,000 | |||||||||
Value of Collateral | $ 110,700,000 | $ 110,700,000 | ||||||||
Number of loans | Loan | 4 | 4 | ||||||||
CRE legacy whole loans | Rating 5 | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Number of loans | Loan | 5 | 5 | ||||||||
Loan Two | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Amortized cost | $ 2,200,000 | |||||||||
Variable Interest Entity, Not Primary Beneficiary | RREF CDO 2006-1, CDO 2007-1 Senior Notes | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Value of Collateral | $ 0 | |||||||||
Industry Grouping of Hotel | CRE legacy whole loans | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Concentration of loan portfolio risk (in hundredths) | 54.00% | 54.00% | ||||||||
Industry Grouping of Retail Stores | CRE legacy whole loans | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Concentration of loan portfolio risk (in hundredths) | 39.00% | 39.00% | ||||||||
Industry Grouping of Multifamily | CRE legacy whole loans | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Concentration of loan portfolio risk (in hundredths) | 7.00% | 7.00% | ||||||||
California | CRE legacy whole loans | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Concentration of loan portfolio risk (in hundredths) | 84.00% | |||||||||
Arizona | CRE legacy whole loans | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Concentration of loan portfolio risk (in hundredths) | 16.00% | |||||||||
CRE legacy whole loans | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Number of loans, appraisals | Loan | 6 | 6 | ||||||||
Discontinued Operations, Held-for-sale | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Amortized cost | $ 358,714,000 | $ 358,714,000 | $ 475,658,000 | |||||||
Discontinued Operations, Held-for-sale | CRE legacy whole loans | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Number of impaired loans | Loan | 4 | 4 | ||||||||
Amortized cost | $ 158,192,000 | $ 158,192,000 | ||||||||
Recorded balance | 38,100,000 | 38,100,000 | ||||||||
Hotel | CRE legacy whole loans | Studio City, CA | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Value of Collateral | $ 61,400,000 | $ 61,400,000 | ||||||||
Number of loans | Loan | 2 | 2 | ||||||||
Debt instrument, par value | $ 67,500,000 | $ 67,500,000 | ||||||||
Hotel | CRE legacy whole loans | Tucson, AZ | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Value of Collateral | $ 14,300,000 | $ 14,300,000 | ||||||||
Number of loans | Loan | 1 | 1 | ||||||||
Debt instrument, par value | $ 32,500,000 | $ 32,500,000 | ||||||||
Hotel | CRE legacy whole loans | Phoenix, AZ | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Value of Collateral | $ 11,000,000 | $ 11,000,000 | ||||||||
Number of loans | Loan | 1 | 1 | ||||||||
Debt instrument, par value | $ 17,700,000 | $ 17,700,000 | ||||||||
Hotel | CRE legacy whole loans | Palm Springs, CA | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Value of Collateral | $ 24,000,000 | $ 24,000,000 | ||||||||
Number of loans | Loan | 1 | 1 | ||||||||
Debt instrument, par value | $ 29,500,000 | $ 29,500,000 | ||||||||
Subsequent Event | Hotel | CRE legacy whole loans | Tucson, AZ | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Proceeds from sale of securities available-for-sale | $ 21,300,000 | |||||||||
[1] | December 31, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $95 Restricted cash$3,308 $39,061 Investments securities available-for-sale, pledged as collateral, at fair value369 66,137 Loans held for sale1,007 1,475Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million747,726 1,416,441 Interest receivable3,153 6,592 Principal paydown receivable5,820 17,800Investment securities available-for-sale, pledged as collateral, at fair value369 66,137 Other assets58 1,071 Total assets of consolidated VIEs$761,441 $1,548,672 |
FINANCING RECEIVABLES (Credit84
FINANCING RECEIVABLES (Credit Risk Profiles of Bank Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | $ 1,292,097 | $ 1,793,815 |
Syndicated corporate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | 1,007 | 135,992 |
Syndicated corporate loans | Rating 1 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | 0 | 113,897 |
Syndicated corporate loans | Rating 2 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | 0 | 17,578 |
Syndicated corporate loans | Rating 3 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | 0 | 1,498 |
Syndicated corporate loans | Rating 4 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | 0 | 0 |
Syndicated corporate loans | Rating 5 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | 0 | 1,544 |
Syndicated corporate loans | Held for Sale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | $ 1,007 | $ 1,475 |
FINANCING RECEIVABLES (Loan Por
FINANCING RECEIVABLES (Loan Portfolio Aging Analysis as of the Dates Indicated at Cost Basis) (Details) $ in Thousands | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)Loan | Jun. 30, 2015USD ($) |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 61,665 | $ 39,842 | |
Current | 1,387,626 | 1,788,178 | |
Total Loans Receivable | 1,449,291 | 1,828,020 | |
Total 90 Days and Accruing | 0 | 0 | |
Individually evaluated for impairment | (2,965) | (42,021) | |
First lien loans held for sale at fair value | 1,007 | 1,475 | |
Whole loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 1,290,107 | 1,630,801 | |
Total Loans Receivable | 1,290,107 | 1,630,801 | |
Total 90 Days and Accruing | 0 | $ 0 | |
Number of impaired loans | Loan | 1 | ||
Individually evaluated for impairment | $ (2,200) | ||
CRE legacy whole loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 61,400 | ||
Current | 96,792 | ||
Total Loans Receivable | 158,192 | ||
First lien loans held for sale at fair value | 54,300 | ||
B notes | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 0 | 15,934 | |
Total Loans Receivable | 0 | 15,934 | |
Total 90 Days and Accruing | 0 | 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 90 Days and Accruing | 0 | 0 | |
Individually evaluated for impairment | $ (38,100) | ||
Syndicated corporate loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 1,544 | |
Current | 0 | 132,973 | |
Total Loans Receivable | 0 | 134,517 | |
Total 90 Days and Accruing | 0 | 0 | |
Individually evaluated for impairment | 0 | (1,282) | |
Direct financing leases | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 265 | 226 | |
Current | 727 | 1,170 | |
Total Loans Receivable | 992 | 1,396 | |
Total 90 Days and Accruing | 0 | 0 | |
30-59 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 61,537 | 1,556 | |
30-59 Days | Whole loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
30-59 Days | CRE legacy whole loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 61,400 | ||
30-59 Days | B notes | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
30-59 Days | Mezzanine loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
30-59 Days | Syndicated corporate loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 1,544 | |
30-59 Days | Direct financing leases | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 137 | 12 | |
60-89 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 38,286 | |
60-89 Days | Whole loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
60-89 Days | CRE legacy whole loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | ||
60-89 Days | B notes | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
60-89 Days | Mezzanine loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 38,072 | |
60-89 Days | Syndicated corporate 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 | |
Greater than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 128 | 0 | |
Greater than 90 Days | Whole loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Greater than 90 Days | CRE legacy whole loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | ||
Greater than 90 Days | B notes | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Greater than 90 Days | Mezzanine loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Greater than 90 Days | Syndicated corporate 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 | $ 128 | $ 0 |
FINANCING RECEIVABLES (Impaired
FINANCING RECEIVABLES (Impaired Loans) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)Loan | Jan. 01, 2016USD ($)Loan | |
Financing Receivable, Impaired [Line Items] | |||
Recorded Balance | $ 7,000 | $ 171,251 | |
Unpaid Principal Balance | 7,000 | 171,258 | |
Specific Allowance | (2,500) | (41,556) | |
Average Investment in Impaired Loans | 7,000 | 170,409 | |
Interest Income Recognized | 480 | 1,123 | |
Whole loans | |||
Financing Receivable, Impaired [Line Items] | |||
Loans without a specific valuation allowance, Recorded balance | 0 | 129,433 | |
Loans with a specific valuation allowance, Recorded balance | 7,000 | 2,202 | |
Recorded Balance | 7,000 | 131,635 | |
Loans without a specific valuation allowance, Unpaid Principal Balance | 0 | 129,433 | |
Loans with a specific valuation allowance, Unpaid Principal Balance | 7,000 | 2,202 | |
Unpaid Principal Balance | 7,000 | 131,635 | |
Specific Allowance | (2,500) | (2,202) | |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 0 | 128,591 | |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 7,000 | 2,202 | |
Average Investment in Impaired Loans | 7,000 | 130,793 | |
Loans without a specific valuation allowance, Interest Income Recognized | 0 | 3,939 | |
Loans with a specific valuation allowance, Interest Income Recognized | 480 | 63 | |
Interest Income Recognized | 480 | $ 4,002 | |
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 without a specific valuation allowance, Interest Income Recognized | 0 | ||
Loans with a specific valuation allowance, Interest Income Recognized | 0 | ||
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 without a specific valuation allowance, Interest Income Recognized | 0 | 0 | |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | (2,879) | |
Interest Income Recognized | 0 | (2,879) | |
Syndicated corporate 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 | 1,544 | |
Recorded Balance | 0 | 1,544 | |
Loans without a specific valuation allowance, Unpaid Principal Balance | 0 | 0 | |
Loans with a specific valuation allowance, Unpaid Principal Balance | 0 | 1,551 | |
Unpaid Principal Balance | 0 | 1,551 | |
Specific Allowance | 0 | (1,282) | |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 | |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 0 | 1,544 | |
Average Investment in Impaired Loans | 0 | 1,544 | |
Loans without a specific valuation allowance, Interest Income Recognized | 0 | 0 | |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | 0 | |
Interest Income Recognized | $ 0 | $ 0 | |
Total Deconsolidated VIEs | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Balance | $ 91,300 | ||
Number of impaired loans | Loan | 4 | 4 |
FINANCING RECEIVABLES (Loan P87
FINANCING RECEIVABLES (Loan Portfolio Troubled-debt Restructurings) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)Loan | Dec. 31, 2015USD ($)Loan | |
Troubled debt restructuring [Abstract] | ||
Number of Loans | Loan | 3 | 4 |
Pre-Modification Outstanding Recorded Balance | $ 29,459 | $ 138,031 |
Post-Modification Outstanding Recorded Balance | 21,400 | 99,959 |
First lien loans held for sale at fair value | $ 1,007 | $ 1,475 |
Whole loans | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | Loan | 0 | 3 |
Pre-Modification Outstanding Recorded Balance | $ 0 | $ 99,959 |
Post-Modification Outstanding Recorded Balance | $ 0 | $ 99,959 |
CRE legacy whole loans | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | Loan | 3 | |
Pre-Modification Outstanding Recorded Balance | $ 29,459 | |
Post-Modification Outstanding Recorded Balance | 21,400 | |
First lien loans held for sale at fair value | $ 54,300 | |
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 |
B notes | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | Loan | 0 | |
Pre-Modification Outstanding Recorded Balance | $ 0 | |
Post-Modification Outstanding Recorded Balance | $ 0 | |
Syndicated corporate 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 |
Variable Interest Entity, Not Primary Beneficiary | RREF CDO 2007-1 | ||
Troubled debt restructuring [Abstract] | ||
Debt instrument, par value | $ 70,500 |
INVESTMENT SECURITIES, TRADIN88
INVESTMENT SECURITIES, TRADING (Schedule of Investment Trading Securities at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost | $ 6,242 | $ 30,472 | |
Unrealized Gains | 920 | 1,674 | |
Unrealized Losses | (2,670) | (6,596) | |
Fair Value | [1] | 4,492 | 25,550 |
Structured notes | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost | 6,242 | 28,576 | |
Unrealized Gains | 920 | 1,674 | |
Unrealized Losses | (2,670) | (4,700) | |
Fair Value | $ 4,492 | 25,550 | |
RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost | 1,896 | ||
Unrealized Gains | 0 | ||
Unrealized Losses | (1,896) | ||
Fair Value | $ 0 | ||
[1] | December 31, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $95 Restricted cash$3,308 $39,061 Investments securities available-for-sale, pledged as collateral, at fair value369 66,137 Loans held for sale1,007 1,475Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million747,726 1,416,441 Interest receivable3,153 6,592 Principal paydown receivable5,820 17,800Investment securities available-for-sale, pledged as collateral, at fair value369 66,137 Other assets58 1,071 Total assets of consolidated VIEs$761,441 $1,548,672 |
INVESTMENT SECURITIES, TRADIN89
INVESTMENT SECURITIES, TRADING (Details) $ in Thousands | Nov. 14, 2016USD ($)Security | Dec. 31, 2016USD ($)Security | Dec. 31, 2015USD ($)Security | Dec. 31, 2014USD ($)Security | Jan. 01, 2016USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | ||||||
Fair Value | [1] | $ 4,492 | $ 25,550 | |||
Trading securities sold | Security | 0 | 19 | 9 | |||
Amortized cost | $ 6,242 | $ 30,472 | ||||
Net realized gain (loss) on trading securities | $ 0 | $ 1,400 | $ 3,000 | |||
Number of trading securities held | Security | 6 | 56 | ||||
Pelium Capital Partners, L.P. | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Fair Value | $ 21,900 | |||||
VIE, Primary Beneficiary | Apidos Cinco | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Trading securities sold | Security | 1 | |||||
Amortized cost | $ 369 | |||||
[1] | December 31, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $95 Restricted cash$3,308 $39,061 Investments securities available-for-sale, pledged as collateral, at fair value369 66,137 Loans held for sale1,007 1,475Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million747,726 1,416,441 Interest receivable3,153 6,592 Principal paydown receivable5,820 17,800Investment securities available-for-sale, pledged as collateral, at fair value369 66,137 Other assets58 1,071 Total assets of consolidated VIEs$761,441 $1,548,672 |
INVESTMENT SECURITIES AVAILAB90
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Schedule of Available-for-Sale Securities, Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 121,416 | $ 205,156 |
Unrealized Gains | 4,490 | 5,971 |
Unrealized Losses | (938) | (3,039) |
Fair Value | 124,968 | 208,088 |
Assets pledged as collateral | 97,500 | 162,300 |
ABS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 21,365 | 41,994 |
Unrealized Gains | 3,988 | 3,218 |
Unrealized Losses | (73) | (998) |
Fair Value | 25,280 | 44,214 |
CMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 98,525 | 158,584 |
Unrealized Gains | 425 | 2,631 |
Unrealized Losses | (863) | (1,791) |
Fair Value | 98,087 | 159,424 |
RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,526 | 2,156 |
Unrealized Gains | 77 | 122 |
Unrealized Losses | (2) | (88) |
Fair Value | $ 1,601 | 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 AVAILAB91
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Textuals) (Details) | Nov. 25, 2016USD ($) | Nov. 22, 2016USD ($) | Apr. 25, 2016USD ($) | Mar. 15, 2017USD ($) | Dec. 31, 2016USD ($)SecurityLoan | Dec. 31, 2016USD ($)SecurityLoan | Dec. 31, 2015USD ($)Security | Dec. 31, 2014USD ($)Security | Mar. 15, 2017USD ($) | Nov. 14, 2016SecurityLoan | Jan. 01, 2016USD ($) | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||||||
Investments securities available-for-sale, pledged as collateral, at fair value | $ 369,000 | $ 369,000 | $ 66,137,000 | |||||||||
Value of Collateral | 4,500,000 | 4,500,000 | ||||||||||
Debt Instrument, collateral amount | $ 33,700,000 | |||||||||||
Available-for-sale Securities | 124,968,000 | 124,968,000 | 208,088,000 | |||||||||
Proceeds from sale of securities available-for-sale | 2,818,000 | 65,787,000 | $ 147,171,000 | |||||||||
Fair Value | [1] | 4,492,000 | 4,492,000 | 25,550,000 | ||||||||
Loans held for sale | [1] | $ 1,007,000 | $ 1,007,000 | $ 1,475,000 | ||||||||
Trading securities sold | Security | 0 | 19 | 9 | |||||||||
Impairment losses | $ 26,470,000 | $ 372,000 | $ 0 | |||||||||
Number of loans, appraisals | Loan | 8 | 8 | ||||||||||
CMBS | ||||||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||||||
Positions Sold | Security | 1 | 1 | ||||||||||
Available-for-sale Securities | $ 98,087,000 | $ 98,087,000 | $ 159,424,000 | |||||||||
Trading securities sold | Security | 12 | |||||||||||
Impairment losses | $ 0 | |||||||||||
Other than temporary impairment losses, investments | $ 732,000 | |||||||||||
Available-for-sale securities, intended for sale, number of securities | Security | 1 | 1 | ||||||||||
Available-for-sale securities, at par | $ 4,000,000 | |||||||||||
Structured notes | ||||||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||||||
Fair Value | $ 4,492,000 | 4,492,000 | 25,550,000 | |||||||||
Debt securities | ||||||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||||||
Impairment losses | $ 20,900,000 | $ 372,000 | ||||||||||
Commercial Real Estate Debt Investments | ||||||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||||||
Number of loans | Loan | 7 | 7 | ||||||||||
Number of loans, appraisals | Loan | 6 | 6 | ||||||||||
Number of impaired loans, appraisals | Loan | 2 | 2 | ||||||||||
RMBS | ||||||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||||||
Positions Sold | Security | 6 | |||||||||||
Available-for-sale Securities | $ 1,601,000 | $ 1,601,000 | $ 2,190,000 | |||||||||
Fair Value | $ 0 | |||||||||||
Other than temporary impairment losses, investments | $ 241,000 | |||||||||||
Number of impaired securities | Security | 3 | 3 | ||||||||||
VIE, Primary Beneficiary | ||||||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||||||
Investment securities, available-for-sale | $ 364,600,000 | |||||||||||
Investments securities available-for-sale, pledged as collateral, at fair value | $ 369,000 | $ 369,000 | $ 69,000,000 | |||||||||
Variable Interest Entity, Not Primary Beneficiary | ||||||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||||||
Investment securities, available-for-sale | 20,115,000 | 20,115,000 | ||||||||||
RREF CDO 2007-1 | Variable Interest Entity, Not Primary Beneficiary | ||||||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||||||
Impairment losses | 19,900,000 | |||||||||||
Resource Real Estate Funding CDO 2006-1 | ||||||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||||||
Value of Collateral | $ 65,700,000 | |||||||||||
Debt Instrument, collateral amount | 7,500,000 | |||||||||||
Available-for-sale securities, gross realized gains (losses) | $ 846,000 | |||||||||||
Resource Real Estate Funding CDO 2006-1 | CMBS | ||||||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||||||
Value of Collateral | $ 3,800,000 | $ 3,800,000 | ||||||||||
Positions Sold | Security | 1 | |||||||||||
Number of investment securities available for sale | Security | 10 | 10 | ||||||||||
Investment in ZAIS CLO | ||||||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||||||
Value of Collateral | $ 9,400,000 | |||||||||||
Available-for-sale securities, gross realized gains (losses) | $ 418,000 | |||||||||||
Apidos Cinco | ||||||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||||||
Proceeds from sale of securities available-for-sale | $ 20,400,000 | |||||||||||
Number of loans | Loan | 3 | |||||||||||
Available-for-sale securities, intended for sale, number of securities | Security | 1 | |||||||||||
Apidos Cinco | Structured notes | ||||||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||||||
Fair Value | 369,000 | $ 369,000 | ||||||||||
Loans held for sale | 1,000,000 | 1,000,000 | ||||||||||
Resource Real Estate Funding CDO 2007-1 | ||||||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||||||
Value of Collateral | 130,900,000 | |||||||||||
Debt Instrument, collateral amount | 33,700,000 | |||||||||||
Proceeds from sale of available-for-sale securities, gross payment attributable to CDO debt | 60,300,000 | |||||||||||
Available-for-sale securities, gross realized gains (losses) | 2,100,000 | |||||||||||
Form of principal payments on notes | $ 26,600,000 | |||||||||||
Resource Real Estate Funding CDO 2007-1 | CMBS | ||||||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||||||
Available-for-sale Securities | $ 19,700,000 | $ 19,700,000 | ||||||||||
Subsequent Event | CMBS | ||||||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||||||
Other than temporary impairment losses, investments | $ 450,000 | $ 1,200,000 | ||||||||||
[1] | December 31, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $95 Restricted cash$3,308 $39,061 Investments securities available-for-sale, pledged as collateral, at fair value369 66,137 Loans held for sale1,007 1,475Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million747,726 1,416,441 Interest receivable3,153 6,592 Principal paydown receivable5,820 17,800Investment securities available-for-sale, pledged as collateral, at fair value369 66,137 Other assets58 1,071 Total assets of consolidated VIEs$761,441 $1,548,672 |
INVESTMENT SECURITIES AVAILAB92
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Estimated Maturities of Available-For-Sale Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value | ||
Less than one year | $ 80,801 | $ 118,215 |
Greater than one year and less than five years | 17,197 | 68,808 |
Greater than five years and less than ten years | 9,622 | 11,271 |
Greater than ten years | 13,796 | 6,862 |
Total | 121,416 | 205,156 |
Amortized Cost | ||
Less than one year | 80,325 | 117,221 |
Greater than one year and less than five years | 17,408 | 71,370 |
Greater than five years and less than ten years | 12,936 | 12,382 |
Greater than ten years | 14,299 | 7,115 |
Total | $ 124,968 | $ 208,088 |
Weighted Average Coupon | ||
Less than one year | 5.60% | 7.13% |
Greater than one year and less than five years | 4.52% | 5.31% |
Greater than five years and less than ten years | 10.68% | 10.45% |
Greater than ten years | 10.39% | 16.85% |
Total | 6.39% | 7.03% |
INVESTMENT SECURITIES AVAILAB93
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Gross Unrealized Loss and Fair Value of Securities) (Details) $ in Thousands | Dec. 31, 2016USD ($)Security | Dec. 31, 2015USD ($)Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | $ 31,531 | $ 83,122 |
Unrealized losses, less than 12 months | $ (438) | $ (1,779) |
Number of securities, less than 12 months | Security | 11 | 39 |
Fair value, more than 12 months | $ 27,444 | $ 15,778 |
Unrealized losses, more than 12 Months | $ (500) | $ (1,260) |
Number of securities, more than 12 Months | Security | 16 | 21 |
Fair value, total | $ 58,975 | $ 98,900 |
Unrealized losses, total | $ (938) | $ (3,039) |
Number of Securities, total | Security | 27 | 60 |
ABS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | $ 0 | $ 2,330 |
Unrealized losses, less than 12 months | $ 0 | $ (824) |
Number of securities, less than 12 months | Security | 0 | 5 |
Fair value, more than 12 months | $ 828 | $ 668 |
Unrealized losses, more than 12 Months | $ (73) | $ (174) |
Number of securities, more than 12 Months | Security | 1 | 5 |
Fair value, total | $ 828 | $ 2,998 |
Unrealized losses, total | $ (73) | $ (998) |
Number of Securities, total | Security | 1 | 10 |
CMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | $ 30,869 | $ 79,570 |
Unrealized losses, less than 12 months | $ (436) | $ (849) |
Number of securities, less than 12 months | Security | 10 | 31 |
Fair value, more than 12 months | $ 26,616 | $ 13,783 |
Unrealized losses, more than 12 Months | $ (427) | $ (942) |
Number of securities, more than 12 Months | Security | 15 | 15 |
Fair value, total | $ 57,485 | $ 93,353 |
Unrealized losses, total | $ (863) | $ (1,791) |
Number of Securities, total | Security | 25 | 46 |
RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | $ 662 | $ 1,157 |
Unrealized losses, less than 12 months | $ (2) | $ (88) |
Number of securities, less than 12 months | Security | 1 | 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 | $ 662 | $ 1,157 |
Unrealized losses, total | $ (2) | $ (88) |
Number of Securities, total | Security | 1 | 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 AVAILAB94
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Summary of Sales of Investment Securities Available-for-Sale) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)Security | Dec. 31, 2015USD ($)Security | |
ABS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Positions Sold | Security | 1 | 24 |
Positions Redeemed | Security | 0 | 3,000 |
Par Amount Sold/Redeemed | $ | $ 10,830 | $ 69,901 |
Realized Gain (Loss) | $ | $ 418 | $ 9,197 |
RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Positions Sold | Security | 6 | |
Positions Redeemed | Security | 0 | |
Par Amount Sold/Redeemed | $ | $ 28,305 | |
Realized Gain (Loss) | $ | $ 984 | |
CMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Positions Sold | Security | 1 | 1 |
Positions Redeemed | Security | 0 | 0 |
Par Amount Sold/Redeemed | $ | $ 4,000 | $ 3,000 |
Realized Gain (Loss) | $ | $ (450) | $ (58) |
INVESTMENTS IN UNCONSOLIDATED95
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES (Details) - USD ($) $ in Thousands | Dec. 01, 2009 | Sep. 30, 2014 | Feb. 28, 2014 | Jan. 31, 2013 | Jul. 31, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 15, 2015 | Jun. 24, 2015 | Apr. 30, 2015 | Nov. 16, 2011 | ||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Investments in unconsolidated entities | $ 87,919 | [1] | $ 50,030 | [1] | $ 1,300 | $ 750 | ||||||||
Income (loss) and interest expense from equity method investments | $ 3,413 | (33) | $ 2,790 | |||||||||||
Varde Investment Partners, L.P | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Ownership percentage (percent) | 0.00% | |||||||||||||
Investments in unconsolidated entities | $ 0 | 0 | ||||||||||||
Income (loss) and interest expense from equity method investments | $ 0 | (90) | (20) | |||||||||||
RRE VIP Borrower, LLC | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Ownership percentage (percent) | 0.00% | |||||||||||||
Investments in unconsolidated entities | $ 0 | 0 | ||||||||||||
Income (loss) and interest expense from equity method investments | $ 58 | 325 | 3,473 | |||||||||||
Acquisition of membership interests | $ 2,100 | |||||||||||||
Investment in LCC Preferred Stock | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Ownership percentage (percent) | 29.00% | |||||||||||||
Investments in unconsolidated entities | $ 42,960 | 42,017 | $ 36,300 | |||||||||||
Income (loss) and interest expense from equity method investments | $ 943 | 2,601 | (1,555) | |||||||||||
Investment in CVC Global Credit Opportunities Fund | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Ownership percentage (percent) | 0.00% | |||||||||||||
Investments in unconsolidated entities | $ 0 | 0 | ||||||||||||
Income (loss) and interest expense from equity method investments | $ 0 | 8 | 2,032 | |||||||||||
RCM Global LLC | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Ownership percentage (percent) | 21.60% | |||||||||||||
Investments in unconsolidated entities | $ 465 | 0 | ||||||||||||
Income (loss) and interest expense from equity method investments | $ 14 | 0 | 0 | |||||||||||
Pelium Capital Partners, L.P. | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Ownership percentage (percent) | 80.40% | 80.20% | ||||||||||||
Investments in unconsolidated entities | $ 25,993 | 0 | ||||||||||||
Income (loss) and interest expense from equity method investments | $ 3,991 | 0 | 0 | |||||||||||
Acquisition of membership interests | $ 17,500 | |||||||||||||
Life Care Funding, LLC | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Ownership percentage (percent) | 0.00% | |||||||||||||
Investments in unconsolidated entities | $ 0 | 0 | ||||||||||||
Income (loss) and interest expense from equity method investments | $ 0 | 0 | (75) | |||||||||||
Acquisition of membership interests | $ 1,400 | |||||||||||||
Pearlmark Mezz | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Ownership percentage (percent) | 47.70% | |||||||||||||
Investments in unconsolidated entities | $ 16,953 | 6,465 | ||||||||||||
Income (loss) and interest expense from equity method investments | 968 | (460) | 0 | |||||||||||
Acquisition of membership interests | $ 18,100 | |||||||||||||
Other commitment | $ 50,000 | |||||||||||||
Investment in School Lane House | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Ownership percentage (percent) | 0.00% | |||||||||||||
Investments in unconsolidated entities | $ 0 | 0 | ||||||||||||
Income (loss) and interest expense from equity method investments | (1) | 4 | 912 | |||||||||||
Investment in unconsolidated entities | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Investments in unconsolidated entities | 86,371 | 48,482 | ||||||||||||
Income (loss) and interest expense from equity method investments | $ 5,973 | 2,388 | 4,767 | |||||||||||
Interest in RCT I and RCT II | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Ownership percentage (percent) | 3.00% | |||||||||||||
Investments in unconsolidated entities | $ 1,548 | 1,548 | ||||||||||||
Income (loss) and interest expense from equity method investments | $ (2,560) | (2,421) | (2,387) | |||||||||||
Investment in Preferred Equity | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Ownership percentage (percent) | 0.00% | |||||||||||||
Investments in unconsolidated entities | $ 0 | 0 | ||||||||||||
Income (loss) and interest expense from equity method investments | $ 0 | $ 0 | $ 410 | |||||||||||
Variable Interest Entity, Not Primary Beneficiary | Investment in CVC Global Credit Opportunities Fund | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Acquisition of membership interests | $ 15,000 | |||||||||||||
Life Care Funding, LLC | Variable Interest Entity, Not Primary Beneficiary | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Acquisition of membership interests | $ 2,000 | |||||||||||||
[1] | December 31, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $95 Restricted cash$3,308 $39,061 Investments securities available-for-sale, pledged as collateral, at fair value369 66,137 Loans held for sale1,007 1,475Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million747,726 1,416,441 Interest receivable3,153 6,592 Principal paydown receivable5,820 17,800Investment securities available-for-sale, pledged as collateral, at fair value369 66,137 Other assets58 1,071 Total assets of consolidated VIEs$761,441 $1,548,672 |
BUSINESS COMBINATION (Details)
BUSINESS COMBINATION (Details) - USD ($) $ in Thousands | Dec. 15, 2015 | Apr. 30, 2015 | Feb. 26, 2014 | Oct. 31, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Business Acquisition [Line Items] | |||||||||
Investments in unconsolidated entities | $ 1,300 | $ 750 | $ 87,919 | [1] | $ 50,030 | [1] | |||
Payments to acquire businesses, | 0 | 0 | $ 30,433 | ||||||
Allocated share-based compensation expense | 3,025 | $ 2,420 | $ 5,933 | ||||||
Life Care Funding, LLC | |||||||||
Business Acquisition [Line Items] | |||||||||
Ownership percentage in VIE | 70.90% | 60.70% | 50.20% | ||||||
Enterprise value | $ 4,100 | ||||||||
Primary Capital Mortgage LLC | |||||||||
Business Acquisition [Line Items] | |||||||||
Payments to acquire businesses, | $ 7,600 | ||||||||
Stock issued during period | $ 800 | ||||||||
Allocated share-based compensation expense | $ 555 | ||||||||
[1] | December 31, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $95 Restricted cash$3,308 $39,061 Investments securities available-for-sale, pledged as collateral, at fair value369 66,137 Loans held for sale1,007 1,475Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million747,726 1,416,441 Interest receivable3,153 6,592 Principal paydown receivable5,820 17,800Investment securities available-for-sale, pledged as collateral, at fair value369 66,137 Other assets58 1,071 Total assets of consolidated VIEs$761,441 $1,548,672 |
INTANGIBLE ASSETS (Loan Servici
INTANGIBLE ASSETS (Loan Servicing Portfolio) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Principal Amount Outstanding of Loans Held-in-portfolio [Roll Forward] | |||
Balance, December 31, 2016 | [1] | $ 213 | $ 5,316 |
Management Contracts | |||
Principal Amount Outstanding of Loans Held-in-portfolio [Roll Forward] | |||
Balance, January 1, 2016 | 5,316 | 9,434 | |
Additions | 0 | 0 | |
Sales | 0 | 0 | |
Amortization | (1,432) | 4,118 | |
Total before impairment losses | 3,884 | 5,316 | |
Impairment losses | (3,671) | 0 | |
Balance, December 31, 2016 | $ 213 | $ 5,316 | |
[1] | December 31, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $95 Restricted cash$3,308 $39,061 Investments securities available-for-sale, pledged as collateral, at fair value369 66,137 Loans held for sale1,007 1,475Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million747,726 1,416,441 Interest receivable3,153 6,592 Principal paydown receivable5,820 17,800Investment securities available-for-sale, pledged as collateral, at fair value369 66,137 Other assets58 1,071 Total assets of consolidated VIEs$761,441 $1,548,672 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2016Contracts | Dec. 31, 2016USD ($)Contracts | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Fee income | $ 3,943 | $ 4,865 | $ 5,891 | |
Number of CLOs liquidated | Contracts | 1 | |||
Number of contracts tested for impairment | Contracts | 2 | |||
Expected amortization, 2017 | $ 213 | |||
Management Contracts | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets | 3,700 | |||
Investments in Real Estate | Above (Below) Market Leases | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 1,400 | 4,100 | 1,800 | |
Management Contracts | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Fee income | $ 2,800 | $ 3,900 | $ 5,100 |
BORROWINGS (Schedule of Debt) (
BORROWINGS (Schedule of Debt) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)waiverfacility | Dec. 31, 2015USD ($) | ||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 1,207,559 | $ 1,644,480 | |
Unamortized Issuance Costs and Discounts | 16,103 | 22,767 | |
Outstanding Borrowings | $ 1,191,456 | $ 1,621,713 | |
Weighted Average Borrowing Rate | 3.67% | 2.86% | |
Weighted Average Remaining Maturity | 8 years | 11 years 8 months 12 days | |
Value of Collateral | $ 1,482,399 | $ 2,048,555 | |
Accrued interest costs | [1] | $ 4,979 | 5,361 |
Number of waivers | waiver | 3 | ||
Number of repurchase facilities, waivers | facility | 2 | ||
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 | ||
Value of Collateral | $ 94,379 | ||
RREF CDO 2007-1 | |||
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 | ||
Value of Collateral | $ 210,904 | ||
RCC CRE Notes 2013 | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 58,465 | ||
Unamortized Issuance Costs and Discounts | 664 | ||
Outstanding Borrowings | $ 57,801 | ||
Weighted Average Borrowing Rate | 3.21% | ||
Weighted Average Remaining Maturity | 13 years | ||
Value of Collateral | $ 104,439 | ||
RCC 2014-CRE2 | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 131,936 | 198,594 | |
Unamortized Issuance Costs and Discounts | 1,871 | 2,991 | |
Outstanding Borrowings | $ 130,065 | $ 195,603 | |
Weighted Average Borrowing Rate | 2.19% | 1.68% | |
Weighted Average Remaining Maturity | 15 years 3 months 18 days | 16 years 4 months | |
Value of Collateral | $ 250,255 | $ 313,663 | |
RCC 2015-CRE3 | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 196,112 | 282,127 | |
Unamortized Issuance Costs and Discounts | 2,358 | 3,466 | |
Outstanding Borrowings | $ 193,754 | $ 278,661 | |
Weighted Average Borrowing Rate | 2.82% | 2.25% | |
Weighted Average Remaining Maturity | 15 years 2 months 12 days | 16 years 2 months | |
Value of Collateral | $ 259,889 | $ 341,099 | |
RCC 2015-CRE4 | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 158,475 | 223,735 | |
Unamortized Issuance Costs and Discounts | 2,193 | 3,160 | |
Outstanding Borrowings | $ 156,282 | $ 220,575 | |
Weighted Average Borrowing Rate | 2.55% | 2.06% | |
Weighted Average Remaining Maturity | 15 years 7 months 6 days | 16 years 7 months | |
Value of Collateral | $ 247,414 | $ 308,042 | |
Apidos CDO Cinco | |||
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 5 months | ||
Value of Collateral | $ 154,584 | ||
Unsecured Junior Subordinated Debentures | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 51,548 | 51,548 | |
Unamortized Issuance Costs and Discounts | 0 | 135 | |
Outstanding Borrowings | $ 51,548 | $ 51,413 | |
Weighted Average Borrowing Rate | 4.89% | 4.40% | |
Weighted Average Remaining Maturity | 19 years 9 months 18 days | 20 years 9 months | |
Value of Collateral | $ 0 | $ 0 | |
6.0% Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 115,000 | 115,000 | |
Unamortized Issuance Costs and Discounts | 3,231 | 4,917 | |
Outstanding Borrowings | $ 111,769 | $ 110,083 | |
Weighted Average Borrowing Rate | 6.00% | 6.00% | |
Weighted Average Remaining Maturity | 1 year 10 months 24 days | 2 years 11 months | |
Value of Collateral | $ 0 | $ 0 | |
8.0% Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 100,000 | 100,000 | |
Unamortized Issuance Costs and Discounts | 3,472 | 4,599 | |
Outstanding Borrowings | $ 96,528 | $ 95,401 | |
Weighted Average Borrowing Rate | 8.00% | 8.00% | |
Weighted Average Remaining Maturity | 3 years | 4 years | |
Value of Collateral | $ 0 | $ 0 | |
CRE Securitizations | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 349,318 | 225,346 | |
Unamortized Issuance Costs and Discounts | 2,680 | 2,418 | |
Outstanding Borrowings | $ 346,638 | $ 222,928 | |
Weighted Average Borrowing Rate | 3.04% | 2.64% | |
Weighted Average Remaining Maturity | 1 year 7 months 6 days | 17 days | |
Value of Collateral | $ 520,503 | $ 321,267 | |
Accrued interest costs | 468 | 315 | |
CMBS - Term Repurchase Facility | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 78,503 | 25,658 | |
Unamortized Issuance Costs and Discounts | 16 | 2 | |
Outstanding Borrowings | $ 78,487 | $ 25,656 | |
Weighted Average Borrowing Rate | 2.73% | 1.57% | |
Weighted Average Remaining Maturity | 129 days | 18 days | |
Value of Collateral | $ 115,157 | $ 31,650 | |
Accrued interest costs | 157 | 18 | |
Trust Certificates - Term Repurchase Facility | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 26,667 | 26,659 | |
Unamortized Issuance Costs and Discounts | 282 | 415 | |
Outstanding Borrowings | $ 26,385 | $ 26,244 | |
Weighted Average Borrowing Rate | 6.21% | 5.85% | |
Weighted Average Remaining Maturity | 1 year 10 months 24 days | 2 years 11 months | |
Value of Collateral | $ 89,181 | $ 89,181 | |
Accrued interest costs | 69 | 61 | |
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 | $ 40 | |
[1] | December 31, 2016 December 31, 2015Liabilities of consolidated VIEs included in the total liabilities above: Borrowings$480,103 $1,032,581 Accrued interest expense519 923 Derivatives, at fair value— 3,346 Unsettled loan purchases— — Accounts payable and other liabilities133 (117) Total liabilities of consolidated VIEs$480,755 $1,036,733 |
BORROWINGS (Resource Real Estat
BORROWINGS (Resource Real Estate Funding CDO 2006-1) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2006 | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 25, 2016 | Apr. 25, 2016 | |
Debt Instrument [Line Items] | |||||
Debt Instrument, collateral amount | $ 33,700,000 | ||||
Reissuance price to par | 98.94% | ||||
Resource Real Estate Funding CDO 2006-1 | |||||
Debt Instrument [Line Items] | |||||
Closing transaction amount | $ 345,000,000 | ||||
Face amount of debt issued | 308,700,000 | ||||
Debt Instrument, collateral amount | $ 7,500,000 | ||||
Resource Real Estate Funding CDO 2006-1 | Resource Real Estate Funding 2006-1 CDO Investor LLC | |||||
Debt Instrument [Line Items] | |||||
Purchased equity interests | $ 36,300,000 | ||||
Percentage of total preference shares (in hundredths) | 100.00% | ||||
Resource Real Estate Funding CDO 2006-1 | RCC Real Estate | |||||
Debt Instrument [Line Items] | |||||
Percentage of senior notes acquired by the parent | 100.00% | ||||
Resource Real Estate Funding CDO 2006-1 | Senior Notes Class J and K | RCC Real Estate | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 43,100,000 | ||||
Resource Real Estate Funding CDO 2006-1 | Senior Notes Class A-1 | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 129,400,000 | ||||
Basis spread on variable rate | 0.32% | ||||
Resource Real Estate Funding CDO 2006-1 | Senior Notes Class A-2 | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 17,400,000 | ||||
Basis spread on variable rate | 0.35% | ||||
Resource Real Estate Funding CDO 2006-1 | Senior Notes Class A-2b | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 5,000,000 | ||||
Interest rate at period end | 5.842% | ||||
Resource Real Estate Funding CDO 2006-1 | Senior Notes Class B | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 6,900,000 | ||||
Basis spread on variable rate | 0.40% | ||||
Resource Real Estate Funding CDO 2006-1 | Senior Notes Class C | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 20,700,000 | ||||
Basis spread on variable rate | 0.62% | ||||
Resource Real Estate Funding CDO 2006-1 | Senior Notes Class D | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 15,500,000 | ||||
Basis spread on variable rate | 0.80% | ||||
Resource Real Estate Funding CDO 2006-1 | Senior Notes Class E | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 20,700,000 | ||||
Basis spread on variable rate | 1.30% | ||||
Resource Real Estate Funding CDO 2006-1 | Senior Notes Class F | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 19,800,000 | ||||
Basis spread on variable rate | 1.60% | ||||
Resource Real Estate Funding CDO 2006-1 | Senior Notes Class G | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 17,300,000 | ||||
Basis spread on variable rate | 1.90% | ||||
Resource Real Estate Funding CDO 2006-1 | Senior Notes Class H | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 12,900,000 | ||||
Basis spread on variable rate | 3.75% | ||||
Resource Real Estate Funding CDO 2006-1 | Senior Notes Class J | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 14,700,000 | ||||
Interest rate at period end | 6.00% | ||||
Resource Real Estate Funding CDO 2006-1 | Senior Notes Class K | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 28,400,000 | ||||
Interest rate at period end | 6.00% | ||||
RREF CDO 2006-1 Senior Notes | Senior Notes Class A-1 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, amount, reissuance | $ 6,700,000 | ||||
RREF CDO 2006-1 Senior Notes | Senior Notes Class A-2 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, amount, reissuance | $ 12,000,000 | ||||
Reissuance price to par | 95.56% | ||||
Gain (loss) on reissuance of debt instrument | $ (604,000) | ||||
RREF CDO 2006-1 Senior Notes | Senior Notes Class F | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, amount, reissuance | $ 6,300,000 | ||||
Reissuance price to par | 96.02% | ||||
Gain (loss) on reissuance of debt instrument | $ (249,000) |
BORROWINGS (Resource Real Es101
BORROWINGS (Resource Real Estate Funding CDO 2007-1) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2007 | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 25, 2016 | |
Debt Instrument [Line Items] | ||||
Debt Instrument, collateral amount | $ 33,700,000 | |||
Reissuance price to par | 98.94% | |||
RREF CDO 2007-1 | ||||
Debt Instrument [Line Items] | ||||
Closing transaction amount | $ 500,000,000 | |||
Percentage of senior notes acquired by the parent | 100.00% | |||
RREF CDO 2007-1 | RCC Real Estate | ||||
Debt Instrument [Line Items] | ||||
Percentage of senior notes acquired by the parent | 100.00% | |||
Payments by parent to acquire notes issued by VIE | $ 68,000,000 | |||
RREF CDO 2007-1 | Resource Real Estate Funding 2007-1 CDO Investor LLC | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | 265,600,000 | |||
Payments by parent to acquire notes issued by VIE | 41,300,000 | |||
RREF CDO 2007-1 | Senior Notes Class A-1 | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 180,000,000 | |||
Basis spread on variable rate | 0.28% | |||
Debt instrument, amount, reissuance | $ 25,000,000 | |||
Reissuance price to par | 92.53% | |||
RREF CDO 2007-1 | Senior Notes Class A-1R | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 50,000,000 | |||
Basis spread on variable rate | 0.32% | |||
Commitment fee percentage | 0.18% | |||
RREF CDO 2007-1 | Senior Notes Class A-2 | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 57,500,000 | |||
Basis spread on variable rate | 0.46% | |||
RREF CDO 2007-1 | Senior Notes Class B | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 22,500,000 | |||
Basis spread on variable rate | 0.80% | |||
RREF CDO 2007-1 | Senior Notes Class C | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 7,000,000 | |||
Interest rate at period end | 6.423% | |||
RREF CDO 2007-1 | Senior Notes Class D | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 26,800,000 | |||
Basis spread on variable rate | 0.95% | |||
Debt instrument, amount, reissuance | $ 11,800,000 | $ 15,000,000 | ||
Reissuance price to par | 90.18% | 86.85% | ||
Gain (loss) on reissuance of debt instrument | $ (1,200,000) | $ (3,800,000) | ||
RREF CDO 2007-1 | Senior Notes Class E | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 11,900,000 | |||
Basis spread on variable rate | 1.15% | |||
RREF CDO 2007-1 | Senior Notes Class F | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 11,900,000 | |||
Basis spread on variable rate | 1.30% | |||
RREF CDO 2007-1 | Senior Notes Class G | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 11,300,000 | |||
Basis spread on variable rate | 1.55% | |||
RREF CDO 2007-1 | Senior Notes Class H | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 11,300,000 | |||
Basis spread on variable rate | 2.30% | |||
RREF CDO 2007-1 | Senior Notes Class J | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 11,300,000 | |||
Basis spread on variable rate | 2.95% | |||
RREF CDO 2007-1 | Senior Notes Class K | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 10,000,000 | |||
Basis spread on variable rate | 3.25% | |||
RREF CDO 2007-1 | Senior Notes Class L | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 18,800,000 | |||
Interest rate at period end | 7.50% | |||
RREF CDO 2007-1 | Senior Notes Class M | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 28,800,000 | |||
Interest rate at period end | 8.50% |
BORROWINGS (Apidos Cinco CDO) (
BORROWINGS (Apidos Cinco CDO) (Details) - Apidos CDO Cinco | 1 Months Ended |
May 31, 2007USD ($) | |
Debt Instrument [Line Items] | |
Closing transaction amount | $ 350,000,000 |
Basis spread on variable rate | 0.32% |
Percentage of senior notes acquired by the parent | 100.00% |
Senior Notes Class A-1 | |
Debt Instrument [Line Items] | |
Face amount of debt issued | $ 37,500,000 |
Basis spread on variable rate | 0.24% |
Senior Notes Class A2a | |
Debt Instrument [Line Items] | |
Face amount of debt issued | $ 200,000,000 |
Basis spread on variable rate | 0.23% |
Senior Notes Class A-2b | |
Debt Instrument [Line Items] | |
Face amount of debt issued | $ 22,500,000 |
Senior Notes Class A3 | |
Debt Instrument [Line Items] | |
Face amount of debt issued | $ 19,000,000 |
Basis spread on variable rate | 0.42% |
Senior Notes Class B | |
Debt Instrument [Line Items] | |
Face amount of debt issued | $ 18,000,000 |
Basis spread on variable rate | 0.80% |
Senior Notes Class C | |
Debt Instrument [Line Items] | |
Face amount of debt issued | $ 14,000,000 |
Basis spread on variable rate | 2.25% |
Senior Notes Class D | |
Debt Instrument [Line Items] | |
Face amount of debt issued | $ 11,000,000 |
Basis spread on variable rate | 4.25% |
Apidos Cinco | |
Debt Instrument [Line Items] | |
Face amount of debt issued | $ 322,000,000 |
RCC Commercial | |
Debt Instrument [Line Items] | |
Payments by parent to acquire notes issued by VIE | $ 28,000,000 |
BORROWINGS (Securitzations) (De
BORROWINGS (Securitzations) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
RCC CRE Notes 2013 | ||
Debt Instrument [Line Items] | ||
Cumulative amount of debt paid down | $ 202.4 | |
RCC 2014-CRE2 | ||
Debt Instrument [Line Items] | ||
Cumulative amount of debt paid down | $ 103.4 | |
RCC 2015-CRE3 | ||
Debt Instrument [Line Items] | ||
Cumulative amount of debt paid down | 86 | |
RCC 2015-CRE4 | ||
Debt Instrument [Line Items] | ||
Cumulative amount of debt paid down | $ 65.3 |
BORROWINGS (RCC CRE Notes 2013)
BORROWINGS (RCC CRE Notes 2013) (Details) - RCC CRE Notes 2013 - USD ($) | 1 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 30, 2014 | |
Debt Instrument [Line Items] | ||||
Closing transaction amount | $ 307,800,000 | $ 307,800,000 | $ 353,900,000 | |
Face amount of debt issued | $ 260,800,000 | |||
Percentage of senior notes acquired by the parent | 100.00% | |||
Payments by parent to acquire notes issued by VIE | $ 30,000,000 | |||
Cumulative amount of debt paid down | $ 202,400,000 | |||
RCC CRE Notes 2012 Investor, LLC | ||||
Debt Instrument [Line Items] | ||||
Purchased equity interests | 16,900,000 | |||
Senior Notes Class D | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 13,800,000 | |||
Percentage of senior notes acquired by the parent | 100.00% | |||
Basis spread on variable rate | 4.50% | |||
Senior Notes Class A | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 136,900,000 | |||
Basis spread on variable rate | 1.30% | |||
Senior Notes Class A-S | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 78,500,000 | |||
Basis spread on variable rate | 2.15% | |||
Senior Notes Class B | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 30,800,000 | |||
Basis spread on variable rate | 2.85% | |||
Senior Notes Class C | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 14,600,000 | |||
Basis spread on variable rate | 3.50% | |||
Senior Notes Class E | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 9,200,000 | |||
Basis spread on variable rate | 5.50% | |||
Senior Notes Class F | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 6,900,000 | |||
Basis spread on variable rate | 6.50% |
BORROWINGS (RCC CRE 2014) (Deta
BORROWINGS (RCC CRE 2014) (Details) - RCC 2014-CRE2 | 1 Months Ended |
Jul. 31, 2014USD ($) | |
Debt Instrument [Line Items] | |
Closing transaction amount | $ 353,900,000 |
Face amount of debt issued | $ 253,300,000 |
Percentage of senior notes acquired by the parent | 100.00% |
Ownership interests in variable interest entity | 100.00% |
Senior Notes Class A | |
Debt Instrument [Line Items] | |
Face amount of debt issued | $ 196,400,000 |
Basis spread on variable rate | 1.05% |
Senior Notes Class B | |
Debt Instrument [Line Items] | |
Face amount of debt issued | $ 38,900,000 |
Basis spread on variable rate | 2.50% |
Senior Notes Class C | |
Debt Instrument [Line Items] | |
Face amount of debt issued | $ 17,700,000 |
Basis spread on variable rate | 4.25% |
RCC Commercial | |
Debt Instrument [Line Items] | |
Payments by parent to acquire notes issued by VIE | $ 100,900,000 |
RCC Commercial | Senior Notes Class C | |
Debt Instrument [Line Items] | |
Payments by parent to acquire notes issued by VIE | $ 17,700,000 |
BORROWINGS (RCC CRE 2015) (Deta
BORROWINGS (RCC CRE 2015) (Details) - USD ($) | 1 Months Ended | |
Aug. 31, 2015 | Feb. 28, 2015 | |
RCC 2015-CRE3 | ||
Debt Instrument [Line Items] | ||
Closing transaction amount | $ 346,200,000 | |
Face amount of debt issued | $ 282,100,000 | |
Percentage of senior notes acquired by the parent | 100.00% | |
Ownership interests in variable interest entity | 100.00% | |
RCC 2015-CRE3 | Senior Notes Class E | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 20,800,000 | |
Basis spread on variable rate | 4.75% | |
RCC 2015-CRE3 | Senior Notes Class F | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 15,600,000 | |
Basis spread on variable rate | 5.50% | |
RCC 2015-CRE3 | Senior Notes Class A | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 193,900,000 | |
Basis spread on variable rate | 1.40% | |
RCC 2015-CRE3 | Senior Notes Class A-S | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 17,300,000 | |
Basis spread on variable rate | 1.65% | |
RCC 2015-CRE3 | Senior Notes Class B | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 19,500,000 | |
Basis spread on variable rate | 2.40% | |
RCC 2015-CRE3 | Senior Notes Class C | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 20,800,000 | |
Basis spread on variable rate | 3.15% | |
RCC 2015-CRE3 | Senior Notes Class D | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 30,700,000 | |
Basis spread on variable rate | 4.00% | |
RCC 2015-CRE4 | ||
Debt Instrument [Line Items] | ||
Closing transaction amount | $ 312,900,000 | |
Face amount of debt issued | $ 223,700,000 | |
Percentage of senior notes acquired by the parent | 100.00% | |
RCC 2015-CRE4 | Senior Notes Class A | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 179,900,000 | |
Basis spread on variable rate | 1.40% | |
RCC 2015-CRE4 | Senior Notes Class B | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 43,800,000 | |
Basis spread on variable rate | 3.00% | |
RCC 2015-CRE4 | Senior Notes Class C | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 26,600,000 | |
Basis spread on variable rate | 4.75% | |
RCC Commercial | RCC 2015-CRE3 | ||
Debt Instrument [Line Items] | ||
Payments by parent to acquire notes issued by VIE | $ 27,700,000 | |
RCC Commercial | RCC 2015-CRE3 | Senior Notes Class E | ||
Debt Instrument [Line Items] | ||
Payments by parent to acquire notes issued by VIE | 20,800,000 | |
RCC Commercial | RCC 2015-CRE3 | Senior Notes Class F | ||
Debt Instrument [Line Items] | ||
Payments by parent to acquire notes issued by VIE | $ 15,600,000 | |
RCC Commercial | RCC 2015-CRE4 | ||
Debt Instrument [Line Items] | ||
Payments by parent to acquire notes issued by VIE | $ 62,600,000 | |
Ownership interests in variable interest entity | 100.00% | |
RCC Commercial | RCC 2015-CRE4 | Senior Notes Class E | ||
Debt Instrument [Line Items] | ||
Payments by parent to acquire notes issued by VIE | $ 26,600,000 |
BORROWINGS (Apidos CDO III) (De
BORROWINGS (Apidos CDO III) (Details) - Apidos CDO III Senior Notes | 1 Months Ended |
May 31, 2006USD ($) | |
Debt Instrument [Line Items] | |
Closing transaction amount | $ 285,500,000 |
Face amount of debt issued | 262,500,000 |
RCC Commercial | |
Debt Instrument [Line Items] | |
Payments by parent to acquire notes issued by VIE | $ 23,000,000 |
Percentage of senior notes acquired by the parent | 100.00% |
Senior Notes Class A-1 | |
Debt Instrument [Line Items] | |
Face amount of debt issued | $ 212,000,000 |
Basis spread on variable rate | 0.26% |
Senior Notes Class A-2 | |
Debt Instrument [Line Items] | |
Face amount of debt issued | $ 19,000,000 |
Basis spread on variable rate | 0.45% |
Senior Notes Class B | |
Debt Instrument [Line Items] | |
Face amount of debt issued | $ 15,000,000 |
Basis spread on variable rate | 0.75% |
Senior Notes Class C | |
Debt Instrument [Line Items] | |
Face amount of debt issued | $ 10,500,000 |
Basis spread on variable rate | 1.75% |
Senior Notes Class D | |
Debt Instrument [Line Items] | |
Face amount of debt issued | $ 6,000,000 |
Basis spread on variable rate | 4.25% |
BORROWINGS (Unsecured Junior Su
BORROWINGS (Unsecured Junior Subordinated Debentures) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 15, 2015 | Apr. 30, 2015 | Sep. 30, 2006 | |||
Debt Instrument [Line Items] | |||||||
Investments in unconsolidated entities | $ 87,919 | [1] | $ 50,030 | [1] | $ 1,300 | $ 750 | |
Unamortized Issuance Costs and Discounts | 16,103 | 22,767 | |||||
Unsecured Junior Subordinated Debentures | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized Issuance Costs and Discounts | 0 | 135 | |||||
Unsecured Junior Subordinated Debentures | Interest in RCT I | |||||||
Debt Instrument [Line Items] | |||||||
Investments in unconsolidated entities | 774 | ||||||
Unsecured Junior Subordinated Debentures | Interest in RCT II | |||||||
Debt Instrument [Line Items] | |||||||
Investments in unconsolidated entities | $ 774 | ||||||
Unsecured Junior Subordinated Debentures | RCT I entity | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | $ 25,800 | ||||||
Debt issuance costs, amortization period (in years) | 10 years | ||||||
Unamortized Issuance Costs and Discounts | $ 54 | ||||||
Interest rate at period end | 4.95% | 4.55% | |||||
Unsecured Junior Subordinated Debentures | RCT II entity | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | $ 25,800 | ||||||
Debt issuance costs, amortization period (in years) | 10 years | ||||||
Unamortized Issuance Costs and Discounts | $ 80 | ||||||
Interest rate at period end | 4.84% | 4.25% | |||||
[1] | December 31, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $95 Restricted cash$3,308 $39,061 Investments securities available-for-sale, pledged as collateral, at fair value369 66,137 Loans held for sale1,007 1,475Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million747,726 1,416,441 Interest receivable3,153 6,592 Principal paydown receivable5,820 17,800Investment securities available-for-sale, pledged as collateral, at fair value369 66,137 Other assets58 1,071 Total assets of consolidated VIEs$761,441 $1,548,672 |
BORROWINGS (6% Convertible Seni
BORROWINGS (6% Convertible Senior Notes) (Details) | Oct. 21, 2013USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jan. 31, 2015 |
Debt Instrument [Line Items] | |||||
Reissuance of debt | $ 0 | $ 16,597,000 | $ 52,663,000 | ||
Convertible Debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 8.00% | ||||
6.0% Convertible Senior Notes | Convertible Debt | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 115,000,000 | ||||
Debt instrument, interest rate, stated percentage | 6.00% | ||||
Reissuance of debt | $ 111,100,000 | ||||
Unamortized discount | $ 4,900,000 | ||||
Shares issuable upon conversion | 150.1502 | ||||
Conversion price per common share (in usd per share) | $ / shares | $ 6.66 | $ 26.64 | |||
Conversion ratio | 37.5376 |
BORROWINGS (8% Convertible Seni
BORROWINGS (8% Convertible Senior Notes) (Details) | Feb. 01, 2015$ / shares | Jan. 31, 2015USD ($)$ / shares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Debt Instrument [Line Items] | |||||
Unamortized Issuance Costs and Discounts | $ 16,103,000 | $ 22,767,000 | |||
Reissuance of debt | $ 0 | $ 16,597,000 | $ 52,663,000 | ||
Convertible Debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 8.00% | ||||
Convertible Debt | 8.0% Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 100,000,000 | ||||
Unamortized discount | 1,000,000 | ||||
Unamortized Issuance Costs and Discounts | 2,100,000 | ||||
Reissuance of debt | 97,000,000 | ||||
Discount adjustment, fair value without conversion feature | $ 2,500,000 | ||||
Conversion ratio | 46.86035 | 187.4414 | |||
Conversion price per common share (in usd per share) | $ / shares | $ 21.36 | $ 5.34 |
BORROWINGS (Repurchase and Cred
BORROWINGS (Repurchase and Credit Facilities) (Details) | Dec. 31, 2016USD ($)Loan | Dec. 31, 2015USD ($)Loan | Nov. 20, 2015USD ($) |
Debt Instrument [Line Items] | |||
Value of Collateral | $ 4,500,000 | ||
Weighted Average Interest Rate | 3.67% | 2.86% | |
Unamortized Issuance Costs and Discounts | $ 16,103,000 | $ 22,767,000 | |
Repurchase Agreements | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | 451,510,000 | 332,235,000 | |
Value of Collateral | 724,841,000 | 521,445,000 | |
Repurchase Agreements | Wells Fargo Securities, LLC | |||
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% | |
Repurchase Agreements | Deutsche Bank Securities, LLC | |||
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% | |
CMBS - Term Repurchase Facility | Repurchase Agreements | Wells Fargo Bank, National Association | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | $ 22,506,000 | $ 25,656,000 | |
Value of Collateral | $ 28,514,000 | $ 31,650,000 | |
Number of Positions as Collateral | Loan | 13 | 21 | |
Weighted Average Interest Rate | 1.96% | 1.57% | |
Unamortized Issuance Costs and Discounts | $ 0 | $ 2,000 | |
CMBS - Term Repurchase Facility | Repurchase Agreements | Deutsche Bank, AG | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | 55,981,000 | 0 | |
Value of Collateral | $ 86,643,000 | $ 0 | |
Number of Positions as Collateral | Loan | 23 | 0 | |
Weighted Average Interest Rate | 3.04% | 0.00% | |
Unamortized Issuance Costs and Discounts | $ 16,000 | $ 0 | |
CRE Securitizations | Repurchase Agreements | Wells Fargo Bank, National Association | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | 215,283,000 | 123,937,000 | |
Value of Collateral | $ 313,126,000 | $ 179,169,000 | |
Number of Positions as Collateral | Loan | 16 | 9 | |
Weighted Average Interest Rate | 2.86% | 2.39% | |
CRE Securitizations | Repurchase Agreements | Morgan Stanley Bank | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | $ 131,355,000 | $ 98,991,000 | |
Value of Collateral | $ 207,377,000 | $ 142,098,000 | |
Number of Positions as Collateral | Loan | 11 | 7 | |
Weighted Average Interest Rate | 3.34% | 2.96% | |
Unamortized Issuance Costs and Discounts | $ 1,100,000 | $ 1,700,000 | |
Trust Certificates - Term Repurchase Facility | Repurchase Agreements | RSO Repo SPE Trust 2015 | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | 26,385,000 | 26,244,000 | $ 26,598,000 |
Value of Collateral | $ 89,181,000 | $ 89,181,000 | |
Number of Positions as Collateral | Loan | 1 | 1 | |
Weighted Average Interest Rate | 6.21% | 5.85% | |
Unamortized Issuance Costs and Discounts | $ 282,000 | $ 415,000 | |
CMBS - Term Repurchase Facility | |||
Debt Instrument [Line Items] | |||
Weighted Average Interest Rate | 2.73% | 1.57% | |
Unamortized Issuance Costs and Discounts | $ 16,000 | $ 2,000 | |
CRE Securitizations | |||
Debt Instrument [Line Items] | |||
Weighted Average Interest Rate | 3.04% | 2.64% | |
Unamortized Issuance Costs and Discounts | $ 2,680,000 | $ 2,418,000 | |
CRE Securitizations | RCC Real Estate | Wells Fargo Bank, National Association | |||
Debt Instrument [Line Items] | |||
Unamortized Issuance Costs and Discounts | $ 1,600,000 | $ 675,000 |
BORROWINGS (Amount at Risk Unde
BORROWINGS (Amount at Risk Under Repurchase Facilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 8 years | 11 years 8 months 12 days |
Weighted Average Interest Rate | 3.67% | 2.86% |
CMBS - Term Repurchase Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 129 days | 18 days |
Weighted Average Interest Rate | 2.73% | 1.57% |
CRE Securitizations | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 1 year 7 months 6 days | 17 days |
Weighted Average Interest Rate | 3.04% | 2.64% |
Trust Certificates - Term Repurchase Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 1 year 10 months 24 days | 2 years 11 months |
Weighted Average Interest Rate | 6.21% | 5.85% |
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% |
Linked and Non-linked Transactions | CMBS - Term Repurchase Facility | Wells Fargo Bank, National Association | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 6,059 | $ 6,053 |
Weighted Average Remaining Maturity | 90 days | 18 days |
Weighted Average Interest Rate | 1.96% | 1.57% |
Linked and Non-linked Transactions | CMBS - Term Repurchase Facility | Deutsche Bank, AG | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 30,971 | |
Weighted Average Remaining Maturity | 145 days | |
Weighted Average Interest Rate | 3.04% | |
Linked and Non-linked Transactions | CRE Securitizations | Wells Fargo Bank, National Association | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 97,482 | $ 54,674 |
Weighted Average Remaining Maturity | 1 year 7 months 6 days | 18 days |
Weighted Average Interest Rate | 2.86% | 2.39% |
Linked and Non-linked Transactions | CRE Securitizations | Morgan Stanley Bank, National Association | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 75,772 | $ 41,248 |
Weighted Average Remaining Maturity | 1 year 8 months 12 days | 15 days |
Weighted Average Interest Rate | 3.34% | 2.96% |
Linked and Non-linked Transactions | Trust Certificates - Term Repurchase Facility | RSO Repo SPE Trust 2015 | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 62,575 | $ 62,575 |
Weighted Average Remaining Maturity | 1 year 10 months 24 days | 2 years 325 days |
Weighted Average Interest Rate | 6.21% | 5.85% |
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% |
BORROWINGS (Term Repurchase Fac
BORROWINGS (Term Repurchase Facilities) (Details) | Nov. 20, 2015USD ($) | Sep. 10, 2015 | Apr. 10, 2015option | Jul. 19, 2013USD ($)option | Apr. 02, 2013USD ($)option | Jul. 31, 2016option | May 31, 2016 | Feb. 28, 2011USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Nov. 01, 2014USD ($) | Oct. 31, 2014USD ($) | Jun. 30, 2014USD ($) | Apr. 01, 2013USD ($) | Feb. 27, 2012 |
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument term, option to extend | 1 year | ||||||||||||||
Debt instrument term, number of options to extend | option | 2 | ||||||||||||||
Line of credit facility, increase borrowing capacity | $ 400,000,000 | $ 150,000,000 | |||||||||||||
RCC Real Estate | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum amount of facility | $ 250,000,000 | ||||||||||||||
Loan origination fee | 0.375% | ||||||||||||||
Wells Fargo Bank, National Association | Residential Investments - Term Repurchase Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum amount of facility | $ 285,000,000 | ||||||||||||||
Basis spread on variable rate | 0.25% | ||||||||||||||
Wells Fargo Bank, National Association | Trust Certificates - Term Repurchase Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum amount of facility | $ 30,000,000 | ||||||||||||||
Wells Fargo Bank, National Association | RCC Real Estate And RCC Commercial | CMBS - Term Repurchase Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument term | 2 years | ||||||||||||||
Debt instrument term, option to extend | 1 year | ||||||||||||||
Basis spread on variable rate | 1.00% | ||||||||||||||
Structuring fee, percent | 0.25% | ||||||||||||||
Line of credit facility, extension fee percentage (in hundredths) | 0.25% | ||||||||||||||
Wells Fargo Bank, National Association | RCC Real Estate | CRE Securitizations | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum amount of facility | $ 150,000,000 | ||||||||||||||
Debt instrument term | 18 months | ||||||||||||||
Debt instrument term, option to extend | 1 year | 1 year | |||||||||||||
Debt instrument term, number of options to extend | option | 2 | 3 | |||||||||||||
Deutsche Bank, AG | RCC Real Estate And RCC Commercial | CMBS - Term Repurchase Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument term | 1 year | ||||||||||||||
Loan extension | 1 year | ||||||||||||||
Deutsche Bank, AG | RCC Real Estate SPE 5 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum amount of facility | $ 200,000,000 | ||||||||||||||
Debt instrument term | 12 months | ||||||||||||||
Debt instrument term, option to extend | 1 year | ||||||||||||||
Structuring fee, percent | 0.25% | ||||||||||||||
Line of credit facility, extension fee percentage (in hundredths) | 0.25% | ||||||||||||||
Debt instrument term, number of options to extend | option | 2 | ||||||||||||||
Maximum | Wells Fargo Bank, National Association | RCC Real Estate And RCC Commercial | CMBS - Term Repurchase Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Face amount of debt issued | $ 100,000,000 | ||||||||||||||
RCC Real Estate SPE 6 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Origination fee with establishment of line of credit facility (in hundredths) | 0.65% | ||||||||||||||
RCC Real Estate SPE 6 | Morgan Stanley Bank | Residential Investments - Term Repurchase Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum amount of facility | $ 250,000,000 | ||||||||||||||
Debt instrument term | 3 years | ||||||||||||||
Debt instrument term, option to extend | 1 year | ||||||||||||||
Judgment allowed against subsidiary | 250,000 | ||||||||||||||
Judgment allowed against Company | 15,000,000 | ||||||||||||||
RCC Real Estate SPE 6 | Maximum | Morgan Stanley Bank | Residential Investments - Term Repurchase Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 2.75% | ||||||||||||||
Unused fee, percent | 0.50% | ||||||||||||||
Unused fee, outstanding borrowing threshold, percent | 65.00% | ||||||||||||||
RCC Real Estate SPE 6 | Minimum | Morgan Stanley Bank | Residential Investments - Term Repurchase Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 2.25% | ||||||||||||||
Unused fee, percent | 0.25% | ||||||||||||||
Unused fee, outstanding borrowing threshold, percent | 50.00% | ||||||||||||||
Repurchase Agreements | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Face amount of debt issued | 451,510,000 | $ 332,235,000 | |||||||||||||
Trust Certificates - Term Repurchase Facility | Repurchase Agreements | RSO Repo SPE Trust 2015 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Face amount of debt issued | $ 26,598,000 | $ 26,385,000 | $ 26,244,000 | ||||||||||||
Debt instrument term | 3 years | ||||||||||||||
Basis spread on variable rate | 5.50% | ||||||||||||||
Default event, amount | $ 2,000,000 |
BORROWINGS (Senior Secured Revo
BORROWINGS (Senior Secured Revolving Credit Facility) (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2016 | Nov. 01, 2014 | Oct. 31, 2014 |
Debt Instrument [Line Items] | ||||
Line of credit facility, increase borrowing capacity | $ 400,000,000 | $ 150,000,000 | ||
Revolving Credit Facility | Northport LLC | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.25% | |||
Revolving Credit Facility | Northport LLC | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum amount of facility | $ 225,000,000 |
BORROWINGS (Contractual Commitm
BORROWINGS (Contractual Commitments) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | |
Total | $ 1,191,456 |
2,017 | 78,487 |
2,018 | 484,792 |
2,019 | 0 |
2,020 | 96,528 |
2021 and Thereafter | 531,649 |
CRE Securitizations | |
Debt Instrument [Line Items] | |
Total | 480,101 |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2021 and Thereafter | 480,101 |
Repurchase Agreements | |
Debt Instrument [Line Items] | |
Total | 451,510 |
2,017 | 78,487 |
2,018 | 373,023 |
2,019 | 0 |
2,020 | 0 |
2021 and Thereafter | 0 |
Unsecured Junior Subordinated Debentures | |
Debt Instrument [Line Items] | |
Total | 51,548 |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2021 and Thereafter | 51,548 |
Convertible Debt | 6.0% Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Total | 111,769 |
2,017 | 0 |
2,018 | 111,769 |
2,019 | 0 |
2,020 | 0 |
2021 and Thereafter | 0 |
Convertible Debt | 8.0% Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Total | 96,528 |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
2,020 | 96,528 |
2021 and Thereafter | $ 0 |
STOCK INCENTIVE PLANS AND SH116
STOCK INCENTIVE PLANS AND SHARE ISSUANCE AND REPURCHASE Textuals (Details) - USD ($) | 5 Months Ended | 12 Months Ended | 17 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2016 | Mar. 31, 2016 | Aug. 03, 2015 | Mar. 21, 2013 | Jun. 23, 2011 | Jul. 31, 2007 | |
Class of Stock [Line Items] | ||||||||
Shares issued from dividend reinvestment plan (in shares) | 10,000 | |||||||
Dividend reinvestment plan | $ 117,000 | |||||||
Repurchase program, authorized amount | $ 50,000,000 | |||||||
Shares acquired | $ 9,200,000 | $ 35,200,000 | ||||||
Shares, acquired (in shares) | 800,000 | 2,800,000 | ||||||
Stock acquired, percentage | 8.30% | |||||||
2005 Stock Incentive Plan | ||||||||
Class of Stock [Line Items] | ||||||||
Number of share options authorized for issue (in shares) | 383,333 | 383,333 | ||||||
2007 Omnibus Equity Compensation Plan | ||||||||
Class of Stock [Line Items] | ||||||||
Number of share options authorized for issue (in shares) | 1,350,000 | 500,000 | ||||||
8.50% Series A Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | ||||||
8.25% Series B Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | 25 | ||||||
Shares acquired | $ 3,100,000 | |||||||
Shares, acquired (in shares) | 196,000 | |||||||
Stock acquired, percentage | 3.40% | |||||||
Preferred Shares - Series C | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | ||||||
Common Stock | Dividend Reinvestment Plan March 21 2013 | ||||||||
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 | $ 50,000,000 | |||||||
Stock repurchase program, remaining authorized repurchase amount | $ 44,900,000 | $ 44,900,000 |
STOCK INCENTIVE PLANS AND SH117
STOCK INCENTIVE PLANS AND SHARE ISSUANCE AND REPURCHASE Share Issuance (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
8.50% Series A Preferred Stock | ||
Class of Stock [Line Items] | ||
Stock issued during period (in shares) | 0 | |
Weighted Average Offering Price (in dollars per share) | $ 0 | |
Number of Shares (In shares) | 1,069,016 | 1,069,016 |
Weighted Average Offering Price (in dollars per share) | $ 24.29 | |
8.25% Series B Preferred Stock | ||
Class of Stock [Line Items] | ||
Stock issued during period (in shares) | 195,900 | |
Weighted Average Offering Price (in dollars per share) | $ 15.80 | |
Number of Shares (In shares) | 5,544,579 | 5,740,479 |
Weighted Average Offering Price (in dollars per share) | $ 24.02 | |
Preferred Shares - Series C | ||
Class of Stock [Line Items] | ||
Stock issued during period (in shares) | 0 | |
Weighted Average Offering Price (in dollars per share) | $ 0 | |
Number of Shares (In shares) | 4,800,000 | 4,800,000 |
Weighted Average Offering Price (in dollars per share) | $ 25 |
SHARE-BASED COMPENSATION (Restr
SHARE-BASED COMPENSATION (Restricted Stock Activity) (Details) | 12 Months Ended |
Dec. 31, 2016shares | |
Non-Employee Directors | |
Restricted common stock transactions [Roll Forward] | |
Unvested shares, beginning of period (in shares) | 15,267 |
Issued (shares) | 25,948 |
Vested (shares) | (13,895) |
Forfeited (shares) | 0 |
Unvested shares, end of period (in shares) | 27,320 |
Non-Employees | |
Restricted common stock transactions [Roll Forward] | |
Unvested shares, beginning of period (in shares) | 617,657 |
Issued (shares) | 230,338 |
Vested (shares) | (536,016) |
Forfeited (shares) | (10,493) |
Unvested shares, end of period (in shares) | 301,486 |
Employees | |
Restricted common stock transactions [Roll Forward] | |
Unvested shares, beginning of period (in shares) | 58,445 |
Issued (shares) | 50,784 |
Vested (shares) | (32,558) |
Forfeited (shares) | (5,427) |
Unvested shares, end of period (in shares) | 71,244 |
Manager and Non Employees | |
Restricted common stock transactions [Roll Forward] | |
Unvested shares, beginning of period (in shares) | 691,369 |
Issued (shares) | 307,070 |
Vested (shares) | (582,469) |
Forfeited (shares) | (15,920) |
Unvested shares, end of period (in shares) | 400,050 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)Directorshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | |
Restricted common stock and stock options [Abstract] | |||
Number of non employee directors granted shares (directors) | Director | 8 | ||
Allocated share-based compensation expense | $ 3,025 | $ 2,420 | $ 5,933 |
Deferred compensation arrangement with individual, cash awards, percentage | 75.00% | ||
Deferred compensation arrangement with individual, common stock awards, percentage | 25.00% | ||
Shares issued pursuant to the Management agreement (in shares) | shares | 0 | 0 | 0 |
Restricted Stock | |||
Restricted common stock and stock options [Abstract] | |||
Number of non employee directors granted shares (directors) | Director | 8 | ||
Restricted Stock | Non-Employees | |||
Restricted common stock and stock options [Abstract] | |||
Estimated fair value of shares granted | $ 2,300 | $ 4,900 | $ 4,700 |
Restricted Stock | Non-Employee Directors | |||
Restricted common stock and stock options [Abstract] | |||
Estimated fair value of shares granted | 290 | 256 | 219 |
Allocated share-based compensation expense | $ 267 | $ 257 | 256 |
Stock Options | |||
Restricted common stock and stock options [Abstract] | |||
Options granted (in shares) | shares | 0 | 0 | |
Weighted average remaining contractual term | 10 years | ||
Equity Compensation Expense | |||
Restricted common stock and stock options [Abstract] | |||
Nonvested awards, compensation cost not yet recognized | $ 891 | ||
Weighted Average Remaining Contractual Term (in years) | 2 years 6 months 19 days | ||
Equity Compensation Expense | Non-Employee Directors | |||
Restricted common stock and stock options [Abstract] | |||
Allocated share-based compensation expense | $ 267 | $ 257 | $ 256 |
SHARE-BASED COMPENSATION SHARE-
SHARE-BASED COMPENSATION SHARE-BASED COMPENSATION (Restricted Common Stock Grants) (Details) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015shares | Sep. 24, 2014periodshares | Dec. 31, 2016shares | Apr. 30, 2016USD ($) |
Loan origination performance plan | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting/Year | 0.25% | ||||
Additional shares authorized upon meeting performance thresholds (in shares) | 17,682 | ||||
Annual measurement periods, number | period | 2 | ||||
Share grants on achievement of performance threshold (in shares) | 8,840 | ||||
Dividends payable on performance shares granted | $ | $ 42 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 12 months | ||||
Grant Date, Range One | 2007 Omnibus Equity Compensation Plan | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares (in shares) | 130,903 | ||||
Vesting/Year | 33.30% | ||||
Grant Date, Range Two | 2007 Omnibus Equity Compensation Plan | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares (in shares) | 50,784 | ||||
Vesting/Year | 33.30% | ||||
Grant Date, Range Three | 2007 Omnibus Equity Compensation Plan | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares (in shares) | 3,421 | ||||
Vesting/Year | 100.00% | ||||
Grant Date, Range Four | 2007 Omnibus Equity Compensation Plan | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares (in shares) | 90,595 | ||||
Vesting/Year | 33.30% | ||||
Grant Date, Range Five | 2007 Omnibus Equity Compensation Plan | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares (in shares) | 13,912 | ||||
Vesting/Year | 100.00% | ||||
Grant Date, Range Six | 2007 Omnibus Equity Compensation Plan | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares (in shares) | 3,158 | ||||
Vesting/Year | 100.00% | ||||
Grant Date, Range Seven | 2007 Omnibus Equity Compensation Plan | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares (in shares) | 8,840 | ||||
Vesting/Year | 100.00% | ||||
Grant Date, Range Eight | 2007 Omnibus Equity Compensation Plan | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares (in shares) | 2,702 | ||||
Vesting/Year | 100.00% | ||||
Grant Date, Range Nine | 2007 Omnibus Equity Compensation Plan | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares (in shares) | 2,755 | ||||
Vesting/Year | 100.00% |
SHARE-BASED COMPENSATION (Statu
SHARE-BASED COMPENSATION (Status of Vested Stock Options) (Details) - Vested $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 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 dollars per share) | $ / shares | 0 |
Outstanding end of period (in dollars per share) | $ / shares | $ 46.60 |
Weighted Average Remaining Contractual Term (in years) | 1 year 11 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 | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | $ 3,025 | $ 2,420 | $ 5,933 |
Manager and Non Employees | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 0 | 0 | (2) |
Manager and Non Employees | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 2,758 | 2,163 | 5,679 |
Non-Employee Directors | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 267 | $ 257 | $ 256 |
Share-based Compensation Award, Tranche One | Manager and Non Employees | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | $ 691 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Net income (loss) from continuing operations | $ 3,206 | $ (34,300) | $ 10,908 | $ 8,852 | $ 9,382 | $ 12,356 | $ (28,769) | $ 18,109 | $ (11,334) | $ 11,079 | $ 59,585 |
Comprehensive (Income) Loss, Net of Tax, Attributable to Preferred Stockholders | 6,014 | 6,015 | 6,014 | 6,048 | 6,116 | 6,115 | 6,115 | 6,091 | 24,091 | 24,437 | 17,176 |
Carrying value in excess of consideration paid for preferred shares | 0 | 0 | (111) | 1,611 | 1,500 | 0 | 0 | ||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | (16) | (63) | (60) | (90) | 142 | 1,829 | 2,180 | 2,477 | (229) | 6,628 | 965 |
Net Income (Loss) From Continuing Operations Allocable to Common Shares | (33,696) | (19,986) | 41,444 | ||||||||
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX | (6,728) | (11,321) | (6,379) | 5,168 | (2,175) | 2,366 | 6,053 | (139) | (19,260) | 6,104 | 2,583 |
Net income (loss) allocable to common shares | $ (9,520) | $ (51,573) | $ (1,536) | $ 9,673 | $ 949 | $ 6,778 | $ (31,011) | $ 9,402 | $ (52,956) | $ (13,882) | $ 44,027 |
Basic: [Abstract] | |||||||||||
Weighted average number of shares outstanding (in shares) | 30,539,369 | 32,280,319 | 32,007,766 | ||||||||
Continuing operations (in dollars per share) | $ (0.09) | $ (1.32) | $ 0.16 | $ 0.15 | $ 0.10 | $ 0.14 | $ (1.12) | $ 0.29 | $ (1.10) | $ (0.62) | $ 1.30 |
Discontinued operations (in dollars per share) | (0.22) | (0.37) | (0.21) | 0.17 | (0.07) | 0.07 | 0.18 | 0 | (0.63) | 0.19 | 0.08 |
Basic net income per share (in dollars per share) | (0.31) | (1.69) | (0.05) | 0.32 | 0.03 | 0.21 | (0.94) | 0.29 | $ (1.73) | $ (0.43) | $ 1.38 |
Diluted: [Abstract] | |||||||||||
Weighted average number of shares outstanding (in shares) | 30,539,369 | 32,280,319 | 32,007,766 | ||||||||
Additional shares due to assumed conversion of dilutive instruments (in shares) | 0 | 0 | 307,081 | ||||||||
Adjusted weighted-average number of common shares outstanding (in shares) | 30,539,369 | 32,280,319 | 32,314,847 | ||||||||
Continuing operations (in dollars per share) | (0.09) | (1.32) | 0.16 | 0.15 | 0.10 | 0.14 | (1.12) | 0.28 | $ (1.10) | $ (0.62) | $ 1.28 |
Discontinued operations (in dollars per share) | (0.22) | (0.37) | (0.21) | 0.17 | (0.07) | 0.07 | 0.18 | 0 | (0.63) | 0.19 | 0.08 |
Diluted net income per share (in dollars per share) | $ (0.31) | $ (1.69) | $ (0.05) | $ 0.32 | $ 0.03 | $ 0.21 | $ (0.94) | $ 0.28 | $ (1.73) | $ (0.43) | $ 1.36 |
EARNINGS PER SHARE EARNINGS PER
EARNINGS PER SHARE EARNINGS PER SHARE Narrative (Details) | Aug. 31, 2015 | Dec. 31, 2016shares | Dec. 31, 2015shares | Dec. 31, 2014shares | Jan. 31, 2015 | Oct. 21, 2013 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Stock split conversion ratio (percentage) | 0.25 | |||||
Dilutive shares excluded from calculation of diluted net income per share | 400,050 | 691,369 | 4,316,818 | |||
6.0% Convertible Senior Notes | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Dilutive shares excluded from calculation of diluted net income per share | 9,002,864 | 9,002,864 | ||||
Convertible Debt | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 8.00% | |||||
6.0% Convertible Senior Notes | Convertible Debt | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 6.00% |
ACCUMULATED OTHER COMPREHENS125
ACCUMULATED OTHER COMPREHENSIVE (LOSS) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
January 1, 2016 (as adjusted) | $ (966) | ||
Other comprehensive gain (loss) before reclassifications (net of taxes of $0.5 million) | 5,968 | ||
Amounts reclassified from accumulated other comprehensive income | (1,921) | ||
Net current-period other comprehensive income | 4,047 | ||
Unrealized (gains) losses on available-for-sale securities allocable to non-controlling interests | 0 | $ 3,405 | $ (4,482) |
December 31, 2016 | 3,081 | $ (2,923) | |
Unrealized gain (loss) on derivatives arising during period, Tax | 500 | ||
Net unrealized (loss) gain on derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
January 1, 2016 (as adjusted) | (131) | ||
Other comprehensive gain (loss) before reclassifications (net of taxes of $0.5 million) | 118 | ||
Amounts reclassified from accumulated other comprehensive income | (5) | ||
Net current-period other comprehensive income | 113 | ||
Unrealized (gains) losses on available-for-sale securities allocable to non-controlling interests | 0 | ||
December 31, 2016 | (18) | ||
Net unrealized (loss) gain on securities, available-for-sale | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
January 1, 2016 (as adjusted) | (835) | ||
Other comprehensive gain (loss) before reclassifications (net of taxes of $0.5 million) | 5,850 | ||
Amounts reclassified from accumulated other comprehensive income | (1,916) | ||
Net current-period other comprehensive income | 3,934 | ||
Unrealized (gains) losses on available-for-sale securities allocable to non-controlling interests | 0 | ||
December 31, 2016 | 3,099 | ||
Foreign currency translation | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
January 1, 2016 (as adjusted) | 0 | ||
Other comprehensive gain (loss) before reclassifications (net of taxes of $0.5 million) | 0 | ||
Amounts reclassified from accumulated other comprehensive income | 0 | ||
Net current-period other comprehensive income | 0 | ||
Unrealized (gains) losses on available-for-sale securities allocable to non-controlling interests | 0 | ||
December 31, 2016 | $ 0 |
THE MANAGEMENT AGREEMENT (Detai
THE MANAGEMENT AGREEMENT (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)periodshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | |
Management Agreement [Line Items] | |||
Investment management fee equity multiplier (percent) | 1.50% | ||
Incentive compensation multiplier (percent) | 25.00% | ||
Incentive compensation, weighted average price share multiplier, one | 2.00% | ||
Weighted average price share multiplier (percent) | 0.50% | ||
Weighted average price share multiplier, spread on multiplier, percentage of base rate (percent) | 25.00% | ||
Incentive compensation paid in common stock minimum holding period before sale | 1 year | ||
Average closing price period for shares traded on a Securities Exchange | 30 days | ||
Average closing price time period before issuance for shares traded on a Securities Exchange | 3 days | ||
Average closing price period for shares traded Over-The-Counter | 30 days | ||
Average closing price time period before issuance for shares traded Over-The-Counter | 3 days | ||
Percentage of salary and benefits company must pay for Director of Investor Relations (percent) | 50.00% | ||
Renewal period | 1 year | ||
Voting percentage of independent auditors required to cancel investment manager agreement (percent) | 66.66% | ||
Investment management agreement termination fee multiplier (percent) | 400.00% | ||
Number of 12-month periods for measurement of termination fee for investment management agreement | period | 2 | ||
Base investment management fee | $ 12,400 | $ 12,800 | $ 13,000 |
Shares issued pursuant to the Management agreement (in shares) | shares | 0 | 0 | 0 |
Base investment management fees payable | $ 854 | $ 978 | |
Reimbursable expenses | $ 216 | 152 | |
Monthly fee, percentage fee of equity | 8.33% | ||
RCAM Managed CDOs | |||
Management Agreement [Line Items] | |||
Base investment management fees paid to subsidiary (percent) | 10.00% | ||
CVC Credit Partners, LLC | |||
Management Agreement [Line Items] | |||
Incentive investment management fees paid by subsidiary (percent) | 50.00% | ||
Incentive investment management fees paid to subsidiary | $ 1,800 | 1,400 | $ 1,300 |
Investment management fees payable | $ 3 | $ 805 | |
Maximum | |||
Management Agreement [Line Items] | |||
Incentive compensation paid in cash (up to 75%) (percent) | 75.00% | ||
Minimum | |||
Management Agreement [Line Items] | |||
Incentive compensation paid in common stock (at least 25%) (percent) | 25.00% | ||
Percentage of incentive compensation that Manager may elect to receive in common stock (more than 25%) (percent) | 25.00% |
RELATED PARTY TRANSACTIONS (Rel
RELATED PARTY TRANSACTIONS (Relationship with Resource America) (Details) € in Millions | Nov. 14, 2016USD ($)SecurityLoan | Nov. 07, 2013USD ($)shares | Dec. 31, 2016USD ($)Transactionshares | May 31, 2016USD ($) | Mar. 31, 2015 | Dec. 31, 2012USD ($) | Dec. 31, 2016USD ($)Transactionshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 08, 2016USD ($) | May 31, 2016EUR (€) | Jan. 01, 2016Transaction | Dec. 15, 2015USD ($) | Aug. 04, 2015USD ($) | Jun. 30, 2015Transaction | Apr. 30, 2015USD ($) | Oct. 31, 2014Transaction | Dec. 31, 2013 | Jun. 17, 2011USD ($) | Nov. 24, 2010USD ($) | ||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Management fees − related party | $ 12,991,000 | $ 13,306,000 | $ 13,584,000 | |||||||||||||||||||||
General and administrative | 15,197,000 | 16,346,000 | 14,705,000 | |||||||||||||||||||||
Fair Value | [1] | $ 4,492,000 | 4,492,000 | 25,550,000 | ||||||||||||||||||||
Increase (decrease) in trading securities | (269,000) | 5,486,000 | 16,515,000 | |||||||||||||||||||||
First lien loans held for sale at fair value | 1,007,000 | 1,007,000 | 1,475,000 | |||||||||||||||||||||
Investments in unconsolidated entities | 87,919,000 | [1] | $ 87,919,000 | [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 reimbursement annual fee | $ 250,000 | $ 550,000 | ||||||||||||||||||||||
Related party expense reimbursement term of annual fee | 1 year | 2 years | 2 years | |||||||||||||||||||||
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 | ||||||||||||||||||||||
Ownership percentage (percent) | 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] | ||||||||||||||||||||||||
Management fees − related party | $ 12,400,000 | 12,800,000 | 13,000,000 | |||||||||||||||||||||
Incentive management fees related party | 0 | 0 | 0 | |||||||||||||||||||||
General and administrative | 5,000,000 | 5,500,000 | 5,000,000 | |||||||||||||||||||||
Investment maximum | $ 5,000,000 | |||||||||||||||||||||||
Additional investment per investment management Agreement | $ 8,000,000 | |||||||||||||||||||||||
Management fee percentage of net profits in excess of preferred return (in hundredths) | 20.00% | |||||||||||||||||||||||
Total indebtedness | $ 1,400,000 | 1,400,000 | 2,500,000 | |||||||||||||||||||||
Accrued management fees related party | 1,300,000 | 1,300,000 | 978,000 | |||||||||||||||||||||
Expense reimbursement payable | 35,000 | 35,000 | 1,600,000 | |||||||||||||||||||||
Oversight fee, management fees related party | $ 138,000 | $ 138,000 | ||||||||||||||||||||||
Number of executed CDO transactions (transactions) | Transaction | 6 | 6 | 1 | 1 | ||||||||||||||||||||
Number of liquidated CDO transactions | Transaction | 2 | 2 | ||||||||||||||||||||||
Number of deconsolidated CDO transactions | Transaction | 2 | |||||||||||||||||||||||
Resource Capital Corp | Resource Capital Markets, Inc. | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Management fees − related party | $ 0 | 0 | 0 | |||||||||||||||||||||
Fair Value | $ 4,100,000 | 4,100,000 | 3,700,000 | |||||||||||||||||||||
Increase (decrease) in trading securities | 400,000 | |||||||||||||||||||||||
Related party, expense reimbursements | 10,000 | 128,000 | $ 164,000 | |||||||||||||||||||||
Total indebtedness | 216,000 | 216,000 | 152,000 | |||||||||||||||||||||
Due to related parties | 0 | 0 | 93,000 | |||||||||||||||||||||
Elevation Home Loans, LLC | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Payments to acquire businesses | $ 830,000 | |||||||||||||||||||||||
Equity interest issued, (shares) | shares | 34,165 | |||||||||||||||||||||||
Middle Market Loans | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
First lien loans held for sale at fair value | $ 257,300,000 | |||||||||||||||||||||||
Pearlmark Mezz | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Investment management fees payable | $ 403,000 | $ 403,000 | 94,000 | |||||||||||||||||||||
Ownership percentage (percent) | 47.70% | 47.70% | ||||||||||||||||||||||
Investments in unconsolidated entities | $ 16,953,000 | $ 16,953,000 | $ 6,465,000 | |||||||||||||||||||||
Harvest CLO XV | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Investments in unconsolidated entities | € | € 12.5 | |||||||||||||||||||||||
Collateralized loan obligation, par value | € | € 413 | |||||||||||||||||||||||
Apidos Cinco | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Available-for-sale securities, intended for sale, number of securities | Security | 1 | |||||||||||||||||||||||
Number of loans | Loan | 3 | |||||||||||||||||||||||
Realized Gain (Loss) | $ 2,300,000 | |||||||||||||||||||||||
[1] | December 31, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $95 Restricted cash$3,308 $39,061 Investments securities available-for-sale, pledged as collateral, at fair value369 66,137 Loans held for sale1,007 1,475Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million747,726 1,416,441 Interest receivable3,153 6,592 Principal paydown receivable5,820 17,800Investment securities available-for-sale, pledged as collateral, at fair value369 66,137 Other assets58 1,071 Total assets of consolidated VIEs$761,441 $1,548,672 |
RELATED PARTY TRANSACTIONS (128
RELATED PARTY TRANSACTIONS (Relationship with LEAF Financial) (Details) - USD ($) | Jan. 11, 2013 | Feb. 15, 2012 | Sep. 03, 2011 | Mar. 05, 2010 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 05, 2011 | Jun. 03, 2011 | Dec. 15, 2015 | Apr. 30, 2015 | Nov. 16, 2011 | |||
Related Party Transaction [Line Items] | |||||||||||||||
Provision (recovery) for loan loss | $ 17,765,000 | $ 41,087,000 | |||||||||||||
Direct financing lease revenue | $ 2,100,000 | ||||||||||||||
Direct financing leases, net of provisions | [1] | 527,000 | 931,000 | ||||||||||||
Income (loss) and interest expense from equity method investments | 3,413,000 | (33,000) | 2,790,000 | ||||||||||||
Investments in unconsolidated entities | 87,919,000 | [1] | 50,030,000 | [1] | $ 1,300,000 | $ 750,000 | |||||||||
Lease Equity Appreciation Fund II | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Origination fee with establishment of line of credit facility (in hundredths) | 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 period | 1 year | ||||||||||||||
Line of credit facility, interest rate during period (in hundredths) | 12.00% | 10.00% | |||||||||||||
Line of credit facility, extension fee percentage (in hundredths) | 1.00% | 1.00% | 1.00% | ||||||||||||
Investment in LCC Preferred Stock | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Income (loss) and interest expense from equity method investments | 943,000 | 2,601,000 | (1,555,000) | ||||||||||||
Investments in unconsolidated entities | 42,960,000 | 42,017,000 | $ 36,300,000 | ||||||||||||
Loans Receivable - Related Party | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Provision (recovery) for loan loss | 465,000 | ||||||||||||||
Loans Receivable - Related Party | Resource Capital Corp | Lease Equity Appreciation Fund II | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Provision (recovery) for loan loss | $ 1,300,000 | ||||||||||||||
Loans Receivable - Direct Financing Leases | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Provision (recovery) for loan loss | $ 0 | $ 465,000 | |||||||||||||
[1] | December 31, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $95 Restricted cash$3,308 $39,061 Investments securities available-for-sale, pledged as collateral, at fair value369 66,137 Loans held for sale1,007 1,475Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million747,726 1,416,441 Interest receivable3,153 6,592 Principal paydown receivable5,820 17,800Investment securities available-for-sale, pledged as collateral, at fair value369 66,137 Other assets58 1,071 Total assets of consolidated VIEs$761,441 $1,548,672 |
RELATED PARTY TRANSACTIONS (129
RELATED PARTY TRANSACTIONS (Relationship with CVC Credit Partners, LLC) (Details) $ in Thousands | Dec. 31, 2015USD ($) | Feb. 24, 2011USD ($)Entity | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Oct. 31, 2015USD ($) | Jul. 31, 2015USD ($) | Mar. 31, 2015USD ($) | Oct. 31, 2012 | Jul. 31, 2013USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)Entity | Dec. 15, 2015USD ($) | Apr. 30, 2015USD ($) | ||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Number of collateralized loan obligation Issuers | Entity | 5 | 2 | ||||||||||||||||
Equity in earnings of unconsolidated entities | $ 5,973 | $ 2,388 | $ 4,767 | |||||||||||||||
Proceeds from sale of Northport TRS, LLC | 2,361 | 0 | 0 | |||||||||||||||
Investments in unconsolidated entities | $ 50,030 | [1] | $ 50,030 | [1] | $ 87,919 | [1] | 50,030 | [1] | $ 1,300 | $ 750 | ||||||||
Churchill Pacific Asset Management LLC | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Assets under management, carrying amount | $ 1,900,000 | |||||||||||||||||
CVC Credit Partners, LLC | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Asset management fee, percentage | 1.50% | |||||||||||||||||
Resource America | CVC Capital Partners | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Ownership percentage (percent) | 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 | |||||||||||||||||
Apidos Capital Management LLC | CVC Capital Partners | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Percentage of subordinated fees the company is entitled to collect | 10.00% | |||||||||||||||||
Percentage of incentive fees the company is entitled to collect | 50.00% | |||||||||||||||||
Subordinated fees received | $ 1,800 | 1,400 | 1,300 | |||||||||||||||
Whitney CLO I | RCC Commercial II | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Ownership percentage in VIE | 68.30% | |||||||||||||||||
Investment in CVC Global Credit Opportunities Fund | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Ownership percentage (percent) | 0.00% | |||||||||||||||||
Proceeds from sale of Northport TRS, LLC | 8,600 | $ 4,000 | $ 625 | $ 5,000 | ||||||||||||||
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 | |||||||||||||||||
Management Contracts | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Impairment of intangible assets | $ 2,400 | $ 1,500 | 2,400 | |||||||||||||||
Investment in RCAM, Investment Two | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Impairment of intangible assets | $ 2,200 | |||||||||||||||||
Investment in CVC Global Credit Opportunities Fund | Variable Interest Entity, Not Primary Beneficiary | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Equity in earnings of unconsolidated entities | $ 0 | $ 8 | $ 2,000 | |||||||||||||||
[1] | December 31, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $95 Restricted cash$3,308 $39,061 Investments securities available-for-sale, pledged as collateral, at fair value369 66,137 Loans held for sale1,007 1,475Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million747,726 1,416,441 Interest receivable3,153 6,592 Principal paydown receivable5,820 17,800Investment securities available-for-sale, pledged as collateral, at fair value369 66,137 Other assets58 1,071 Total assets of consolidated VIEs$761,441 $1,548,672 |
RELATED PARTY TRANSACTIONS (130
RELATED PARTY TRANSACTIONS (Relationship with Resource Real Estate) (Details) | Aug. 18, 2015USD ($) | Jun. 24, 2015USD ($) | Apr. 10, 2015USD ($)Loanoption | Feb. 24, 2015USD ($) | Jul. 30, 2014USD ($) | Jul. 09, 2014USD ($) | May 23, 2012USD ($) | Jun. 21, 2011USD ($) | Jan. 15, 2010USD ($) | Dec. 01, 2009USD ($) | Aug. 09, 2006USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2014USD ($) | May 23, 2012 | Dec. 31, 2016USD ($)Directorextension | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 15, 2015USD ($) | Apr. 30, 2015USD ($) | Jul. 31, 2014member | ||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Management fees − related party | $ 12,991,000 | $ 13,306,000 | $ 13,584,000 | ||||||||||||||||||||
Income (loss) and interest expense from equity method investments | 3,413,000 | (33,000) | 2,790,000 | ||||||||||||||||||||
Equity in earnings of unconsolidated entities | 5,973,000 | 2,388,000 | 4,767,000 | ||||||||||||||||||||
Placement agent fee | $ 175,000 | ||||||||||||||||||||||
Proceeds from sale of Northport TRS, LLC | 2,361,000 | 0 | 0 | ||||||||||||||||||||
Number of bridge loans | Loan | 2 | ||||||||||||||||||||||
Debt instrument term, number of options to extend | option | 2 | ||||||||||||||||||||||
Debt instrument term, option to extend | 1 year | ||||||||||||||||||||||
Investments in unconsolidated entities | 87,919,000 | [1] | 50,030,000 | [1] | $ 1,300,000 | $ 750,000 | |||||||||||||||||
Resource Real Estate Funding CDO 2006-1 | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate | 3.50% | ||||||||||||||||||||||
Variable rate basis, floor | 2.50% | ||||||||||||||||||||||
Resource America | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Payments to acquire additional interest | $ 2,800,000 | ||||||||||||||||||||||
RRE VIP Borrower, LLC | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Acquisition of membership interests | $ 2,100,000 | ||||||||||||||||||||||
Income (loss) and interest expense from equity method investments | $ 58,000 | 325,000 | 3,473,000 | ||||||||||||||||||||
Ownership percentage (percent) | 0.00% | ||||||||||||||||||||||
Investments in unconsolidated entities | $ 0 | 0 | |||||||||||||||||||||
SLH Partners | Resource Capital Corp | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Amount of loan to related party | $ 7,000,000 | ||||||||||||||||||||||
Ownership percentage (percent) | 10.00% | ||||||||||||||||||||||
Origination fee with establishment of line of credit facility (in hundredths) | 1.00% | ||||||||||||||||||||||
Line of credit facility, interest rate during period (in hundredths) | 10.00% | ||||||||||||||||||||||
Exit fee | $ 70,000 | ||||||||||||||||||||||
Related parties, principal payments | $ 7,000,000 | ||||||||||||||||||||||
Equity method investments | $ 975,000 | ||||||||||||||||||||||
Equity in earnings of unconsolidated entities | 912,000 | ||||||||||||||||||||||
RCC Residential, Inc. | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Acquisition of membership interests | $ 15,000,000 | ||||||||||||||||||||||
Ownership percentage (percent) | 63.80% | 63.80% | |||||||||||||||||||||
Equity in earnings of unconsolidated entities | 14,000 | ||||||||||||||||||||||
Number of board members | member | 5 | ||||||||||||||||||||||
Pelium Capital Partners, L.P. | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Acquisition of membership interests | $ 17,500,000 | ||||||||||||||||||||||
Income (loss) and interest expense from equity method investments | $ 3,991,000 | 0 | 0 | ||||||||||||||||||||
Ownership percentage (percent) | 80.40% | 80.20% | |||||||||||||||||||||
Equity in earnings of unconsolidated entities | $ 4,000,000 | ||||||||||||||||||||||
Payments to acquire additional interest | $ 2,500,000 | ||||||||||||||||||||||
Ownership interest | 10.00% | ||||||||||||||||||||||
Ownership percentage, duration | 5 years | ||||||||||||||||||||||
Ownership interest increase | 20.00% | ||||||||||||||||||||||
Contributions | $ 40,000,000 | ||||||||||||||||||||||
Investments in unconsolidated entities | 25,993,000 | 0 | |||||||||||||||||||||
Pearlmark Mezz | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Acquisition of membership interests | 18,100,000 | ||||||||||||||||||||||
Income (loss) and interest expense from equity method investments | $ 968,000 | (460,000) | 0 | ||||||||||||||||||||
Ownership percentage (percent) | 47.70% | ||||||||||||||||||||||
Equity in earnings of unconsolidated entities | $ 968,000 | (460,000) | |||||||||||||||||||||
Other commitment | $ 50,000,000 | ||||||||||||||||||||||
Management fee, committed capital, percent fee | 1.00% | ||||||||||||||||||||||
Management fee, invested capital, percent fee | 1.50% | ||||||||||||||||||||||
Rebate, percentage | 25.00% | ||||||||||||||||||||||
Investment management fees payable | 403,000 | 94,000 | |||||||||||||||||||||
Investments in unconsolidated entities | $ 16,953,000 | 6,465,000 | |||||||||||||||||||||
Lynnfield Place | RCC Real Estate | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Amount of loan to related party | $ 22,400,000 | ||||||||||||||||||||||
Resource Real Estate Management, LLC | RCC Real Estate | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Asset management fee, percentage | 4.00% | ||||||||||||||||||||||
Management fees − related party | $ 0 | ||||||||||||||||||||||
Gain (loss) on disposition of property | $ 1,900,000 | ||||||||||||||||||||||
Resource Real Estate Management, LLC | RRE VIP Borrower, LLC | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Asset management fee, percentage | 1.00% | ||||||||||||||||||||||
Management fees − related party | $ 0 | 6,000 | |||||||||||||||||||||
Income (loss) and interest expense from equity method investments | $ 58,000 | 325,000 | $ 3,500,000 | ||||||||||||||||||||
Resource Real Estate Management, LLC | SLH Partners | Resource Capital Corp | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Asset management fee, percentage | 2.00% | ||||||||||||||||||||||
Resource Capital Partners Inc | Resource Capital Corp | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Amount of loan to related party | $ 2,000,000 | ||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 8.00% | ||||||||||||||||||||||
Debt default, additional Interest | 5.00% | ||||||||||||||||||||||
Number of extensions | extension | 2 | ||||||||||||||||||||||
Loan extension | 1 year | ||||||||||||||||||||||
Resource Real Estate Opportunity Fund, L.P. | Resource America | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Ownership percentage (percent) | 5.00% | ||||||||||||||||||||||
Resource America | Resource Capital Corp | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Ownership percentage (percent) | 2.30% | ||||||||||||||||||||||
Resource America | Pearlmark Mezz | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Ownership percentage in VIE | 50.00% | ||||||||||||||||||||||
RCC CRE Notes 2013 | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Closing transaction amount | $ 353,900,000 | $ 307,800,000 | $ 307,800,000 | ||||||||||||||||||||
Special servicing fee rate | 0.25% | ||||||||||||||||||||||
Placement agent fee | $ 205,000 | ||||||||||||||||||||||
RCC 2015-CRE3 | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Closing transaction amount | $ 346,200,000 | ||||||||||||||||||||||
Placement agent fee | $ 100,000 | ||||||||||||||||||||||
Resource Capital Corp. 2015-CRE4, Ltd. | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Closing transaction amount | $ 312,900,000 | ||||||||||||||||||||||
Placement agent fee | $ 85,000 | ||||||||||||||||||||||
Commercial Real Estate Debt Investments | Resource Real Estate | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Accounts receivable, related parties | 50,000 | 3,000 | |||||||||||||||||||||
Payable to related party | 899,000 | $ 0 | |||||||||||||||||||||
RCM Global LLC | RCC Residential, Inc. | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Gain on sale of investments | 5,000,000 | ||||||||||||||||||||||
Proceeds from sale of Northport TRS, LLC | $ 753,000 | ||||||||||||||||||||||
Ownership percentage in VIE | 21.60% | ||||||||||||||||||||||
Variable Interest Entity, Approval Number of Board Positions | Director | 3 | ||||||||||||||||||||||
Variable interest entity, total number of board positions | Director | 5 | ||||||||||||||||||||||
Bridge Loan | Bridge Loan One | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate | 5.75% | ||||||||||||||||||||||
Bridge loan | $ 2,500,000 | ||||||||||||||||||||||
Bridge Loan | Bridge Loan Two | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Bridge loan | $ 3,300,000 | ||||||||||||||||||||||
London Interbank Offered Rate (LIBOR) | Minimum | |||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate | 0.25% | ||||||||||||||||||||||
[1] | December 31, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $95 Restricted cash$3,308 $39,061 Investments securities available-for-sale, pledged as collateral, at fair value369 66,137 Loans held for sale1,007 1,475Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million747,726 1,416,441 Interest receivable3,153 6,592 Principal paydown receivable5,820 17,800Investment securities available-for-sale, pledged as collateral, at fair value369 66,137 Other assets58 1,071 Total assets of consolidated VIEs$761,441 $1,548,672 |
RELATED PARTY TRANSACTIONS (131
RELATED PARTY TRANSACTIONS (Relationship with Law Firm) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Resource Capital Corp | Ledgewood | |||
Related Party Transaction [Line Items] | |||
Legal fees | $ 319 | $ 434 | $ 280 |
DISTRIBUTIONS Narrative (Detail
DISTRIBUTIONS Narrative (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
DISTRIBUTIONS [Abstract] | |||
Dividend per share (in usd per share) | $ 1.31 | $ 2.34 | $ 3.2 |
DISTRIBUTIONS (Details)
DISTRIBUTIONS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | |||||||||||||||
Common stock, dividends (in usd per share) | $ 0 | $ 2,340 | $ 3,200 | ||||||||||||
Dividend Per Share | $ 1.31 | $ 2.34 | $ 3.2 | ||||||||||||
Common Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Total Dividend Paid | $ 1,550 | $ 13,012 | $ 13,051 | $ 13,073 | $ 13,274 | $ 20,667 | $ 21,426 | $ 21,444 | $ 26,563 | $ 26,629 | $ 26,179 | $ 25,921 | |||
Dividend Per Share | $ 0.05 | $ 0.42 | $ 0.42 | $ 0.42 | $ 0.42 | $ 0.64 | $ 0.64 | $ 0.64 | $ 0.80 | $ 0.80 | $ 0.80 | $ 0.80 | |||
Preferred Shares - Series A | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Total Dividend Paid | $ 568 | $ 568 | $ 568 | $ 568 | $ 568 | $ 568 | $ 568 | $ 568 | $ 568 | $ 537 | $ 537 | $ 463 | |||
Dividend Per Share | $ 0.53125 | $ 0.53125 | $ 0.53125 | $ 0.53125 | $ 0.53125 | $ 0.53125 | $ 0.53125 | $ 0.53125 | $ 0.53125 | $ 0.53125 | $ 0.53125 | $ 0.53125 | |||
Preferred stock, coupon authorized (in hundredths) | 8.50% | ||||||||||||||
Preferred Shares - Series B | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Total Dividend Paid | $ 2,859 | $ 2,859 | $ 2,859 | $ 2,859 | $ 2,960 | $ 2,960 | $ 2,960 | $ 2,960 | $ 2,888 | $ 2,430 | $ 2,378 | $ 2,057 | |||
Dividend Per Share | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | |||
Preferred stock, coupon authorized (in hundredths) | 8.25% | ||||||||||||||
Preferred Shares - Series C | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Total Dividend Paid | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 1,437 | $ 0 | |||
Dividend Per Share | $ 0.5390630 | $ 0.5390630 | $ 0.5390630 | $ 0.5390630 | $ 0.5390630 | $ 0.5390630 | $ 0.5390630 | $ 0.5390630 | $ 0.5390625 | $ 0.5390625 | $ 0.299479 | $ 0 |
FAIR VALUE OF FINANCIAL INST134
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Assets: | |||
Investment securities, trading | [1] | $ 4,492 | $ 25,550 |
Investment securities available-for-sale | 124,968 | 208,088 | |
Derivatives | [1] | 647 | 727 |
Fair Value, Measurements, Recurring | |||
Assets: | |||
Investment securities, trading | 4,492 | 25,550 | |
Investment securities available-for-sale | 124,968 | 208,088 | |
Loans held for sale | 1,007 | 1,475 | |
Derivatives | 647 | 727 | |
Total assets at fair value | 131,114 | 235,840 | |
Liabilities: | |||
Derivatives | (97) | (3,458) | |
Total liabilities at fair value | (97) | (3,458) | |
Fair Value, Measurements, Recurring | 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 | |
Fair Value, Measurements, Recurring | Level 2 | |||
Assets: | |||
Investment securities, trading | 369 | 0 | |
Investment securities available-for-sale | 0 | 4,451 | |
Loans held for sale | 787 | 1,322 | |
Derivatives | 647 | 727 | |
Total assets at fair value | 1,803 | 6,500 | |
Liabilities: | |||
Derivatives | (97) | 0 | |
Total liabilities at fair value | (97) | 0 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Assets: | |||
Investment securities, trading | 4,123 | 25,550 | |
Investment securities available-for-sale | 124,968 | 203,637 | |
Loans held for sale | 220 | 153 | |
Derivatives | 0 | 0 | |
Total assets at fair value | 129,311 | 229,340 | |
Liabilities: | |||
Derivatives | 0 | (3,458) | |
Total liabilities at fair value | $ 0 | $ (3,458) | |
[1] | December 31, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $95 Restricted cash$3,308 $39,061 Investments securities available-for-sale, pledged as collateral, at fair value369 66,137 Loans held for sale1,007 1,475Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million747,726 1,416,441 Interest receivable3,153 6,592 Principal paydown receivable5,820 17,800Investment securities available-for-sale, pledged as collateral, at fair value369 66,137 Other assets58 1,071 Total assets of consolidated VIEs$761,441 $1,548,672 |
FAIR VALUE OF FINANCIAL INST135
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets Measured on Recurring Basis) (Details) - Level 3 $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Total gains or losses (realized or unrealized): | |
Beginning balance, January 1 | $ 229,340 |
Included in earnings | (22,435) |
Purchases/Originations | 79,863 |
Sales | (137,237) |
Paydowns | (93,706) |
Issuances | 0 |
Settlements | (28,425) |
Capitalized Interest | 20,204 |
Included in OCI | 4,038 |
Deconsolidation of VIEs | 75,871 |
Transfers into level 3 | 1,798 |
Ending balance, December 31 | 129,311 |
CMBS | |
Total gains or losses (realized or unrealized): | |
Beginning balance, January 1 | 159,424 |
Included in earnings | (1,028) |
Purchases/Originations | 34,824 |
Sales | (3,268) |
Paydowns | (36,070) |
Issuances | 0 |
Settlements | 0 |
Capitalized Interest | 0 |
Included in OCI | (19) |
Deconsolidation of VIEs | (55,776) |
Transfers into level 3 | 0 |
Ending balance, December 31 | 98,087 |
ABS | |
Total gains or losses (realized or unrealized): | |
Beginning balance, January 1 | 44,213 |
Included in earnings | (21,756) |
Purchases/Originations | 44,819 |
Sales | (133,969) |
Paydowns | (57,271) |
Issuances | 0 |
Settlements | (28,425) |
Capitalized Interest | 20,014 |
Included in OCI | 4,156 |
Deconsolidation of VIEs | 153,499 |
Transfers into level 3 | 0 |
Ending balance, December 31 | 25,280 |
RMBS | |
Total gains or losses (realized or unrealized): | |
Beginning balance, January 1 | 0 |
Included in earnings | 0 |
Purchases/Originations | 0 |
Sales | 0 |
Paydowns | (98) |
Issuances | 0 |
Settlements | 0 |
Capitalized Interest | 0 |
Included in OCI | (99) |
Transfers into level 3 | 1,798 |
Ending balance, December 31 | 1,601 |
Structured Finance Securities | |
Total gains or losses (realized or unrealized): | |
Beginning balance, January 1 | 25,550 |
Included in earnings | 502 |
Purchases/Originations | 0 |
Sales | 0 |
Paydowns | (267) |
Issuances | 0 |
Settlements | 0 |
Capitalized Interest | 190 |
Included in OCI | 0 |
Deconsolidation of VIEs | (21,852) |
Transfers into level 3 | 0 |
Ending balance, December 31 | 4,123 |
Held for Sale | |
Total gains or losses (realized or unrealized): | |
Beginning balance, January 1 | 153 |
Included in earnings | (153) |
Purchases/Originations | 220 |
Sales | 0 |
Paydowns | 0 |
Issuances | 0 |
Settlements | 0 |
Capitalized Interest | 0 |
Included in OCI | 0 |
Deconsolidation of VIEs | 0 |
Transfers into level 3 | |
Ending balance, December 31 | $ 220 |
FAIR VALUE OF FINANCIAL INST136
FAIR VALUE OF FINANCIAL INSTRUMENTS (Liabilities Measured on Recurring Basis) (Details) - Interest Rate Swaps - Level 3 $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 3,458 |
Included in earnings | 50 |
Settlements | 0 |
Unrealized gains - included in accumulated other comprehensive income | (162) |
Deconsolidation of VIEs | (3,346) |
Transfers into Level 3 | 0 |
Ending balance | $ 0 |
FAIR VALUE OF FINANCIAL INST137
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities, Quantitative Information) (Details) - Nonrecurring - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale | $ 1,432 | |
Impaired loans | $ 4,500 | 129,695 |
Total assets at fair value | 162,678 | 131,127 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale | 0 | |
Impaired loans | 0 | 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 | 1,279 | |
Impaired loans | 0 | 262 |
Total assets at fair value | 0 | 1,541 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale | 153 | |
Impaired loans | 4,500 | 129,433 |
Total assets at fair value | 162,678 | $ 129,586 |
CRE Loans | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale | 158,178 | |
CRE Loans | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale | 0 | |
CRE Loans | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale | 0 | |
CRE Loans | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale | $ 158,178 |
FAIR VALUE OF FINANCIAL INST138
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 31, 2015 | Oct. 21, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Provision (recovery) for loan and lease losses | $ 17,765 | $ 41,088 | $ 1,712 | ||
Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Provision (recovery) for loan and lease losses | 0 | 1,300 | 680 | ||
Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Provision (recovery) for loan and lease losses | $ 18,300 | $ 39,200 | $ 1,300 | ||
Convertible Debt | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 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% | ||||
Debt instrument, interest rate, stated percentage | 6.00% | ||||
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% | ||||
Debt instrument, interest rate, stated percentage | 8.00% | ||||
CRE Loans | Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value assumptions, capitalization rate | 9.00% | ||||
Minimum | CRE Loans | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value inputs, discount rate | 15.00% | ||||
Minimum | CRE Loans | Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value assumptions, capitalization rate | 5.30% | ||||
Maximum | CRE Loans | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value inputs, discount rate | 25.00% | ||||
Maximum | CRE Loans | Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value assumptions, capitalization rate | 9.00% | ||||
6.0% Convertible Senior Notes | Convertible Debt | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 6.00% | ||||
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 | 11.34% | ||||
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 | 11.34% |
FAIR VALUE OF FINANCIAL INST139
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held-for-investment | [1] | $ 1,286,278 | $ 1,783,503 |
Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held-for-investment | 1,286,278 | 2,160,751 | |
Loans receivable-related party | 0 | ||
Senior Notes in CRE Securitizations | 480,101 | 1,032,581 | |
Junior subordinated notes | 51,548 | 51,413 | |
Convertible notes | 208,297 | 205,484 | |
Repurchase agreements | 451,540 | 332,235 | |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held-for-investment | 1,292,099 | 2,150,061 | |
Loans receivable-related party | 0 | ||
Senior Notes in CRE Securitizations | 486,524 | 923,817 | |
Junior subordinated notes | 27,246 | 17,907 | |
Convertible notes | 215,000 | 205,484 | |
Repurchase agreements | 453,794 | 332,235 | |
Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held-for-investment | 0 | 0 | |
Loans receivable-related party | 0 | ||
Senior Notes in CRE Securitizations | 0 | 0 | |
Junior subordinated notes | 0 | 0 | |
Convertible notes | 0 | 0 | |
Repurchase agreements | 0 | 0 | |
Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held-for-investment | 0 | 222,100 | |
Loans receivable-related party | 0 | ||
Senior Notes in CRE Securitizations | 0 | 0 | |
Junior subordinated notes | 0 | 0 | |
Convertible notes | 0 | 0 | |
Repurchase agreements | 0 | 0 | |
Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held-for-investment | 1,292,099 | 1,927,961 | |
Loans receivable-related party | 0 | ||
Senior Notes in CRE Securitizations | 486,524 | 923,817 | |
Junior subordinated notes | 27,246 | 17,907 | |
Convertible notes | 215,000 | 205,484 | |
Repurchase agreements | $ 453,794 | $ 332,235 | |
[1] | December 31, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $95 Restricted cash$3,308 $39,061 Investments securities available-for-sale, pledged as collateral, at fair value369 66,137 Loans held for sale1,007 1,475Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million747,726 1,416,441 Interest receivable3,153 6,592 Principal paydown receivable5,820 17,800Investment securities available-for-sale, pledged as collateral, at fair value369 66,137 Other assets58 1,071 Total assets of consolidated VIEs$761,441 $1,548,672 |
MARKET RISK AND DERIVATIVE I140
MARKET RISK AND DERIVATIVE INSTRUMENTS (Details) $ in Thousands | 12 Months Ended | 36 Months Ended | |||
Dec. 31, 2016USD ($)Derivative | Dec. 31, 2015USD ($)Derivative | Dec. 31, 2014USD ($) | Dec. 31, 2008Derivative | Jan. 01, 2016USD ($)Derivative | |
Derivatives, Fair Value [Line Items] | |||||
Number of hedges terminated | Derivative | 18 | ||||
Expense recognized in earnings for amortization of gains and losses on terminated hedges | $ 39 | $ 275 | $ 282 | ||
Fair value | $ 97 | $ 3,458 | |||
Interest Rate Swaps | |||||
Derivatives, Fair Value [Line Items] | |||||
Number of derivative instruments held | Derivative | 0 | 9 | |||
Notional amount | $ 102,800 | ||||
Derivative instruments, gain (loss) reclassification from accumulated OCI to income, estimated | $ 18 | ||||
Derivative, loss on derivative | 53 | ||||
Weighted average credit spreads | 5.38% | ||||
Fair value | 0 | $ 3,500 | |||
Unrealized losses on non-designated derivative instruments | $ 18 | $ 3,500 | |||
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 |
MARKET RISK AND DERIVATIVE I141
MARKET RISK AND DERIVATIVE INSTRUMENTS (Fair Value and Classification of Derivatives) (Details) $ in Thousands, € in Millions | 12 Months Ended | ||||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | |
Derivatives, Fair Value [Line Items] | |||||
Gross Amounts of Recognized Assets | $ 647 | $ 727 | |||
Gross Amounts of Recognized Liabilities | 97 | 3,458 | |||
Realized and Unrealized Gain (Loss) | (39) | (275) | $ (282) | ||
Interest Rate Swaps | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Notional Amount | 0 | 102,799 | |||
Interest Rate Swaps | Interest expense | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | 119 | 6,098 | 6,555 | ||
Interest Rate Swaps | Derivatives, at fair value | |||||
Derivatives, Fair Value [Line Items] | |||||
Gross Amounts of Recognized Liabilities | 3,458 | ||||
Interest Rate Swaps | Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gross Amounts of Recognized Liabilities | (18) | (3,471) | |||
RMBS | Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | 1,297 | ||||
Forward contracts - foreign currency, hedging | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Notional Amount | 12,489 | 24,850 | € 11.9 | € 22.9 | |
Derivative Liability, Notional Amount | 11,700 | € 11.1 | |||
Forward contracts - foreign currency, hedging | Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | 764 | 2,925 | 3,377 | ||
Forward contracts - foreign currency, hedging | Derivatives, at fair value | |||||
Derivatives, Fair Value [Line Items] | |||||
Gross Amounts of Recognized Assets | 647 | 727 | |||
Gross Amounts of Recognized Liabilities | $ 97 | ||||
Options - U.S. Treasury futures | Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | $ 184 | $ (28) |
OFFSETTING OF FINANCIAL ASSE142
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative hedging instruments, at fair value-Assets | ||
Gross Amounts of Recognized Assets | $ 647 | $ 727 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Included in the Consolidated Balance Sheets | 647 | 727 |
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 | 647 | 727 |
Derivative hedging instruments, at fair value-Liabilities | ||
Gross Amounts of Recognized Liabilities | 97 | 3,458 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 97 | 3,458 |
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 | 97 | 2,958 |
Total-Assets | ||
Gross Amounts of Recognized Assets | 647 | 727 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Included in the Consolidated Balance Sheets | 647 | 727 |
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 | 647 | 727 |
Repurchase agreements-Liabilities | ||
Gross Amounts of Recognized Liabilities | 451,510 | 332,235 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 451,510 | 332,235 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 451,510 | 332,235 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | 0 |
Net Amount | 0 | 0 |
Total-Liabilities | ||
Gross Amounts of Recognized Liabilities | 451,607 | 335,693 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 451,607 | 335,693 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 451,510 | 332,235 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | 500 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | 97 | 2,958 |
Fair value of securities pledged against swaps | 0 | 500 |
Fair value of securities pledged against repurchase agreements | $ 724,800 | $ 521,400 |
INCOME TAXES (Details)
INCOME TAXES (Details) $ in Millions | Dec. 31, 2016USD ($) |
Income Tax Disclosure [Abstract] | |
Deferred tax assets, operating loss carryforwards, domestic | $ 22.1 |
Deferred tax assets, operating loss carryforwards, state and local | 9.1 |
Operating loss carryforwards | 31.2 |
Net operating loss carryforwards | 7.9 |
Operating loss carryforwards, valuation allowance | 28.5 |
Operating loss carryforwards, valuation allowance, tax expense impact | $ 11.3 |
INCOME TAXES (Components of Inc
INCOME TAXES (Components of Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | $ 1,733 | $ 1,705 | $ 6,819 |
State | 966 | 430 | 2,505 |
Total current | 2,699 | 2,135 | 9,324 |
Deferred: | |||
Federal | 6,707 | (423) | (8,808) |
State | 1,586 | (358) | (2,383) |
Total deferred | 8,293 | (781) | (11,191) |
Income tax provision (benefit) | $ 10,992 | $ 1,354 | $ (1,867) |
INCOME TAXES (Reconciliation Be
INCOME TAXES (Reconciliation Between Federal Statutory Income Tax Rate and Effective Income Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax | $ (1,103) | $ 945 | $ (1,591) |
State and local taxes, net of federal benefit | 1,005 | (271) | (670) |
Permanent adjustments | 0 | 149 | 41 |
True-up of prior period tax expense | (256) | 530 | 353 |
Valuation allowance | 11,294 | 0 | 0 |
Other items | 52 | 1 | 0 |
Income tax provision (benefit) | $ 10,992 | $ 1,354 | $ (1,867) |
INCOME TAXES (Components of Def
INCOME TAXES (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred tax assets related to: | |||
Investment in securities | $ 0 | $ 1,657 | |
Federal, state and local loss carryforwards | 7,933 | 11,156 | |
Bad debt for reserves | 0 | 208 | |
Reserve on MSR valuation | 237 | 222 | |
Accrued expenses | 118 | 895 | |
Amortization of intangibles | 0 | 3,182 | |
Unrealized gains/losses | 1,673 | 1,725 | |
Charitable contribution carryforwards | 0 | 6 | |
CLCO carryforwards | 5,680 | 1,826 | |
Foreign exchange gain (loss) | 0 | 156 | |
Equity compensation | 0 | 34 | |
Partnership investment | 2,902 | 1,965 | |
Total deferred tax assets | 18,543 | 23,032 | |
Valuation allowance | (11,294) | 0 | |
Total deferred tax assets | 7,249 | 23,032 | |
Deferred tax liabilities related to: | |||
Unrealized gain (loss) on investments | 0 | (951) | |
Amortization of intangibles | (1,589) | (6,319) | |
Gain (loss) on sale of investments | 0 | (1,389) | |
Investment in securities | (1,320) | 0 | |
Depreciation | (85) | (80) | |
Deferred revenue | 0 | (2) | |
Partnership investment | 0 | (1,645) | |
Total deferred tax liabilities | (2,994) | (10,386) | |
Deferred tax assets, net | [1] | $ 4,255 | $ 12,646 |
[1] | December 31, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $95 Restricted cash$3,308 $39,061 Investments securities available-for-sale, pledged as collateral, at fair value369 66,137 Loans held for sale1,007 1,475Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million747,726 1,416,441 Interest receivable3,153 6,592 Principal paydown receivable5,820 17,800Investment securities available-for-sale, pledged as collateral, at fair value369 66,137 Other assets58 1,071 Total assets of consolidated VIEs$761,441 $1,548,672 |
QUARTERLY RESULTS (Details)
QUARTERLY RESULTS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 30,124 | $ 27,085 | $ 28,447 | $ 26,962 | $ 34,332 | $ 30,149 | $ 28,259 | $ 29,734 | $ 112,618 | $ 122,474 | $ 113,281 |
Interest expense | 13,346 | 13,653 | 13,446 | 13,302 | 15,343 | 14,562 | 13,637 | 12,988 | 53,747 | 56,530 | 43,493 |
Net interest income | 16,778 | 13,432 | 15,001 | 13,660 | 18,989 | 15,587 | 14,622 | 16,746 | 58,871 | 65,944 | 69,788 |
Net income (loss) from continuing operations | 3,206 | (34,300) | 10,908 | 8,852 | 9,382 | 12,356 | (28,769) | 18,109 | (11,334) | 11,079 | 59,585 |
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX | (6,728) | (11,321) | (6,379) | 5,168 | (2,175) | 2,366 | 6,053 | (139) | (19,260) | 6,104 | 2,583 |
Net income (loss) | (3,522) | (45,621) | 4,529 | 14,020 | 7,207 | 14,722 | (22,716) | 17,970 | (30,594) | 17,183 | 62,168 |
Net (income) loss allocable to non-controlling interest, net of taxes | (6,014) | (6,015) | (6,014) | (6,048) | (6,116) | (6,115) | (6,115) | (6,091) | (24,091) | (24,437) | (17,176) |
Carrying value in excess of consideration paid for preferred shares | 0 | 0 | (111) | 1,611 | 1,500 | 0 | 0 | ||||
Net (income) loss allocable to non-controlling interest, net of taxes | 16 | 63 | 60 | 90 | (142) | (1,829) | (2,180) | (2,477) | 229 | (6,628) | (965) |
Net Income (Loss) Available to Common Stockholders, Basic | $ (9,520) | $ (51,573) | $ (1,536) | $ 9,673 | $ 949 | $ 6,778 | $ (31,011) | $ 9,402 | $ (52,956) | $ (13,882) | $ 44,027 |
Continuing operations (in dollars per share) | $ (0.09) | $ (1.32) | $ 0.16 | $ 0.15 | $ 0.10 | $ 0.14 | $ (1.12) | $ 0.29 | $ (1.10) | $ (0.62) | $ 1.30 |
Discontinued operations (in dollars per share) | (0.22) | (0.37) | (0.21) | 0.17 | (0.07) | 0.07 | 0.18 | 0 | (0.63) | 0.19 | 0.08 |
NET INCOME PER SHARE - BASIC (in dollars per share) | (0.31) | (1.69) | (0.05) | 0.32 | 0.03 | 0.21 | (0.94) | 0.29 | (1.73) | (0.43) | 1.38 |
Continuing operations (in dollars per share) | (0.09) | (1.32) | 0.16 | 0.15 | 0.10 | 0.14 | (1.12) | 0.28 | (1.10) | (0.62) | 1.28 |
Discontinued operations (in dollars per share) | (0.22) | (0.37) | (0.21) | 0.17 | (0.07) | 0.07 | 0.18 | 0 | (0.63) | 0.19 | 0.08 |
NET INCOME PER SHARE - DILUTED (in dollars per shares) | $ (0.31) | $ (1.69) | $ (0.05) | $ 0.32 | $ 0.03 | $ 0.21 | $ (0.94) | $ 0.28 | $ (1.73) | $ (0.43) | $ 1.36 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | May 13, 2014DefendantClaims | Dec. 31, 2016USD ($)Loan | Dec. 31, 2016USD ($)LoanClaims | Dec. 31, 2015USD ($) |
Loss Contingencies [Line Items] | ||||
Estimated litigation liability | $ | $ 4.8 | $ 4.8 | $ 3.7 | |
Commercial Real Estate Portfolio Segment | ||||
Loss Contingencies [Line Items] | ||||
Category of loans (in loans) | Loan | 2 | 2 | ||
PCM | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | $ | $ 10.2 | $ 10.2 | ||
Loss contingency, number of defendants | Defendant | 90 | |||
Loss contingency, claims settled, number | Claims | 2 | |||
Loss contingency, pending claims, number | Claims | 4 | |||
Number of plaintiffs | 150 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) | Dec. 31, 2016USD ($) | Nov. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Sep. 20, 2015Amendment | Jun. 30, 2014USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of amendments to facility | Amendment | 5 | ||||
Revolving Credit Facility | Revolving Credit Facility | Northport LLC | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Maximum amount of facility | $ 225,000,000 | ||||
Wells Fargo Bank, National Association | Residential Investments - Term Repurchase Facility | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Maximum amount of facility | $ 285,000,000 | ||||
Wells Fargo Bank, National Association | Trust Certificates - Term Repurchase Facility | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Maximum amount of facility | $ 30,000,000 | ||||
Primary Capital Advisors LLC | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 2.50% | ||||
Primary Capital Advisors LLC | Wells Fargo Bank, National Association | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Maximum amount of facility | $ 100,000,000 | ||||
Debt instrument, interest rate, stated percentage | 3.00% | ||||
Primary Capital Advisors LLC | New Century Bank | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Maximum amount of facility | $ 0 | ||||
Primary Capital Advisors LLC | First Tennessee Bank | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Maximum amount of facility | $ 25,000,000 | ||||
Debt instrument, interest rate, stated percentage | 2.75% | ||||
Wells Fargo Securities, LLC | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 2.38% | ||||
Primary Capital Mortgage LLC | Wells Fargo Bank, National Association | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Maximum amount of facility | $ 150,000,000 |
DISCONTINUED OPERATIONS Operati
DISCONTINUED OPERATIONS Operating results of the residential mortgage and middle market lending segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
REVENUES | |||||||||||
Loans | $ 85,229 | $ 99,334 | $ 89,231 | ||||||||
Interest income − other | 5,005 | 4,252 | 6,785 | ||||||||
Interest income | $ 30,124 | $ 27,085 | $ 28,447 | $ 26,962 | $ 34,332 | $ 30,149 | $ 28,259 | $ 29,734 | 112,618 | 122,474 | 113,281 |
Interest expense | 13,346 | 13,653 | 13,446 | 13,302 | 15,343 | 14,562 | 13,637 | 12,988 | 53,747 | 56,530 | 43,493 |
Net interest income | 16,778 | 13,432 | 15,001 | 13,660 | 18,989 | 15,587 | 14,622 | 16,746 | 58,871 | 65,944 | 69,788 |
Fee income | 3,943 | 4,865 | 5,891 | ||||||||
Total revenues | 62,680 | 70,875 | 84,306 | ||||||||
OPERATING EXPENSES | |||||||||||
Equity compensation expense - related party | 3,025 | 2,420 | 5,933 | ||||||||
General and administrative | 15,197 | 16,346 | 14,705 | ||||||||
Depreciation and amortization | 1,566 | 4,245 | 2,358 | ||||||||
Provision for loan and lease losses | 17,765 | 41,088 | 1,712 | ||||||||
Segment operating expenses | 77,023 | 77,840 | 43,735 | ||||||||
Net interest and other revenues less operating expenses | (14,343) | (6,965) | 40,571 | ||||||||
OTHER INCOME (EXPENSE) | |||||||||||
Net realized gain/(loss) on investment securities available-for-sale and loans | 4,066 | 18,459 | 6,925 | ||||||||
Total other income (expense) | 14,001 | 19,398 | 17,147 | ||||||||
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX | $ (6,728) | $ (11,321) | $ (6,379) | $ 5,168 | $ (2,175) | $ 2,366 | $ 6,053 | $ (139) | (19,260) | 6,104 | 2,583 |
TOTAL INCOME (LOSS) FROM DISCONTINUED OPERATIONS | (19,260) | 6,104 | 2,583 | ||||||||
Discontinued Operations, Held-for-sale | |||||||||||
REVENUES | |||||||||||
Loans | 25,325 | 32,224 | 11,878 | ||||||||
Interest income − other | 50 | 7 | 0 | ||||||||
Interest income | 25,375 | 32,231 | 11,878 | ||||||||
Interest expense | 6,181 | 6,629 | 806 | ||||||||
Net interest income | 19,194 | 25,602 | 11,072 | ||||||||
Gain (loss) on sale of residential mortgage loans | 19,061 | 13,544 | 4,815 | ||||||||
Fee income | 1,221 | 2,617 | 2,377 | ||||||||
Total revenues | 39,476 | 41,763 | 18,264 | ||||||||
OPERATING EXPENSES | |||||||||||
Equity compensation expense - related party | 939 | 725 | 633 | ||||||||
General and administrative | 30,570 | 25,350 | 16,306 | ||||||||
Depreciation and amortization | 563 | 613 | 379 | ||||||||
Provision for loan and lease losses | 12,989 | 8,801 | 92 | ||||||||
Segment operating expenses | 45,061 | 35,489 | 17,410 | ||||||||
Net interest and other revenues less operating expenses | (5,585) | 6,274 | 854 | ||||||||
OTHER INCOME (EXPENSE) | |||||||||||
Net realized gain/(loss) on investment securities available-for-sale and loans | (11,850) | 221 | 1,384 | ||||||||
Total other income (expense) | (11,850) | 221 | 1,384 | ||||||||
INCOME (LOSS) FROM DISCONTINUED OPERATIONS BEFORE TAXES | (17,435) | 6,495 | 2,238 | ||||||||
Income Tax Benefit (Expense) | 0 | (391) | 345 | ||||||||
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX | (17,435) | 6,104 | 2,583 | ||||||||
Gain (loss) from disposal of discontinued operations | (1,825) | 0 | 0 | ||||||||
TOTAL INCOME (LOSS) FROM DISCONTINUED OPERATIONS | $ (19,260) | $ 6,104 | $ 2,583 |
DISCONTINUED OPERATIONS Assets
DISCONTINUED OPERATIONS Assets and liabilities of business segments classified as discontinued operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Disposal Group, Including Discontinued Operation, Assets [Abstract] | ||||
Interest receivable | [1] | $ 6,404 | $ 11,494 | |
Loans held for sale | [1] | 1,007 | 1,475 | |
Derivatives, at fair value | [1] | 647 | 727 | |
Intangible assets | [1] | 213 | 5,316 | |
Other assets | [1] | 14,673 | 17,562 | |
Total assets held for sale | [1] | 383,310 | 510,908 | |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | ||||
Accounts payable and other liabilities | [2] | 4,480 | 3,286 | |
Management fee payable - related party | [2] | 1,318 | 1,227 | |
Accrued interest expense | [2] | 4,979 | 5,361 | |
Borrowings | [2] | 1,191,456 | 1,621,713 | |
Derivatives, at fair value | [2] | 97 | 3,458 | |
Total liabilities held for sale | [2] | 142,563 | 286,406 | |
Other items | 52 | 1 | $ 0 | |
Life settlement contracts | 5,800 | |||
Discontinued Operations, Held-for-sale | ||||
Disposal Group, Including Discontinued Operation, Assets [Abstract] | ||||
Interest receivable | 312 | 2,515 | ||
Loans held for sale | 346,761 | 471,720 | ||
Property available for sale | 125 | 0 | ||
Derivatives, at fair value | 3,773 | 2,719 | ||
Intangible assets | 14,466 | 20,912 | ||
Other assets | 17,873 | 13,042 | ||
Total assets held for sale | 383,310 | 510,908 | ||
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | ||||
Accounts payable and other liabilities | 8,398 | 6,427 | ||
Management fee payable - related party | 138 | 0 | ||
Accrued interest expense | 203 | 243 | ||
Borrowings | 133,139 | 273,575 | ||
Derivatives, at fair value | 685 | 482 | ||
Accrued tax liability | 0 | 5,679 | ||
Total liabilities held for sale | 142,563 | 286,406 | ||
Other items | 0 | 391 | ||
Servicing Contracts | ||||
Disposal Group, Including Discontinued Operation, Assets [Abstract] | ||||
Intangible assets | $ 14,400 | $ 20,800 | ||
[1] | December 31, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $95 Restricted cash$3,308 $39,061 Investments securities available-for-sale, pledged as collateral, at fair value369 66,137 Loans held for sale1,007 1,475Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million747,726 1,416,441 Interest receivable3,153 6,592 Principal paydown receivable5,820 17,800Investment securities available-for-sale, pledged as collateral, at fair value369 66,137 Other assets58 1,071 Total assets of consolidated VIEs$761,441 $1,548,672 | |||
[2] | December 31, 2016 December 31, 2015Liabilities of consolidated VIEs included in the total liabilities above: Borrowings$480,103 $1,032,581 Accrued interest expense519 923 Derivatives, at fair value— 3,346 Unsettled loan purchases— — Accounts payable and other liabilities133 (117) Total liabilities of consolidated VIEs$480,755 $1,036,733 |
DISCONTINUED OPERATIONS Loans h
DISCONTINUED OPERATIONS Loans held for sale in the residential mortgage and middle market lending segments (Details) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016USD ($)Loan | Dec. 31, 2016USD ($)Loan | Dec. 31, 2015USD ($)Loan | Dec. 31, 2014USD ($) | Sep. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Amortized Cost | $ 7,000,000 | $ 7,000,000 | |||
Available-for-sale Securities | $ 124,968,000 | $ 124,968,000 | $ 208,088,000 | ||
Number of loans, appraisals | Loan | 8 | 8 | |||
Impairment losses | $ 26,470,000 | $ 372,000 | $ 0 | ||
Value of Collateral | $ 4,500,000 | $ 4,500,000 | |||
Discontinued Operations, Held-for-sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Quantity of loans | Loan | 545 | 545 | 365 | ||
Amortized Cost | $ 358,714,000 | $ 358,714,000 | $ 475,658,000 | ||
Available-for-sale Securities | $ 346,761,000 | $ 346,761,000 | $ 471,720,000 | ||
Middle Market Loans | Discontinued Operations, Held-for-sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Quantity of loans | Loan | 1 | 1 | 32 | ||
Amortized Cost | $ 0 | $ 0 | $ 379,452,000 | ||
Available-for-sale Securities | $ 0 | $ 0 | $ 375,514,000 | ||
CRE legacy whole loans | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of loans, appraisals | Loan | 6 | 6 | |||
Impairment losses | $ 8,100,000 | ||||
CRE legacy whole loans | Discontinued Operations, Held-for-sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Quantity of loans | Loan | 8 | 8 | |||
Amortized Cost | $ 158,192,000 | $ 158,192,000 | |||
Available-for-sale Securities | 158,178,000 | 158,178,000 | |||
Impairment losses | $ 7,700,000 | ||||
Mezzanine loans | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Impairment losses | $ 2,600,000 | ||||
Mezzanine loans | Discontinued Operations, Held-for-sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Quantity of loans | Loan | 7 | 7 | |||
Amortized Cost | $ 52,382,000 | $ 52,382,000 | |||
Available-for-sale Securities | 40,443,000 | $ 40,443,000 | |||
Impairment losses | $ 819,000 | ||||
Residential mortgage loans | Discontinued Operations, Held-for-sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Quantity of loans | Loan | 529 | 529 | 333 | ||
Amortized Cost | $ 148,140,000 | $ 148,140,000 | $ 96,206,000 | ||
Available-for-sale Securities | 148,140,000 | 148,140,000 | $ 96,206,000 | ||
RREF CDO 2006-1 Senior Notes | Variable Interest Entity, Not Primary Beneficiary | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Debt instrument, par value | 38,100,000 | 38,100,000 | |||
Value of Collateral | $ 0 | $ 0 | |||
Industry Grouping of Healthcare, Education and Childcare | Middle Market Loans | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Concentration of loan portfolio risk (in hundredths) | 24.40% | 24.40% | 12.40% | ||
Industry Grouping of Diversified/conglomerate Service | Middle Market Loans | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Concentration of loan portfolio risk (in hundredths) | 17.20% | 17.20% | 12.80% | ||
Industry Grouping of Insurance | Middle Market Loans | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Concentration of loan portfolio risk (in hundredths) | 17.10% | 17.10% | |||
Industry Grouping of Cargo Transport | Middle Market Loans | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Concentration of loan portfolio risk (in hundredths) | 14.20% | 14.20% | |||
Industry Grouping of Beverage, Food and Tobacco | Middle Market Loans | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Concentration of loan portfolio risk (in hundredths) | 12.50% | 12.50% | |||
Industry Grouping of Building and Real Estate | Middle Market Loans | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Concentration of loan portfolio risk (in hundredths) | 9.80% | 9.80% | |||
Industry Grouping Miscellaneous Services and Hotels, Motels, Inns and Gaming | Middle Market Loans | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Concentration of loan portfolio risk (in hundredths) | 4.80% | 4.80% | |||
Georgia | Residential mortgage loans | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Concentration of loan portfolio risk (in hundredths) | 44.90% | 39.20% | |||
California | Residential mortgage loans | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Concentration of loan portfolio risk (in hundredths) | 16.20% | ||||
Utah | Residential mortgage loans | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Concentration of loan portfolio risk (in hundredths) | 11.20% | 14.60% | |||
Virginia | Residential mortgage loans | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Concentration of loan portfolio risk (in hundredths) | 9.10% | 5.90% | |||
Florida | Residential mortgage loans | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Concentration of loan portfolio risk (in hundredths) | 4.40% | 5.90% | |||
Colorado | Residential mortgage loans | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Concentration of loan portfolio risk (in hundredths) | 4.10% |
SEGMENT REPORTING Textuals (Det
SEGMENT REPORTING Textuals (Details) | 12 Months Ended |
Dec. 31, 2016segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | $ 30,124 | $ 27,085 | $ 28,447 | $ 26,962 | $ 34,332 | $ 30,149 | $ 28,259 | $ 29,734 | $ 112,618 | $ 122,474 | $ 113,281 | |
Interest expense | 13,346 | 13,653 | 13,446 | 13,302 | 15,343 | 14,562 | 13,637 | 12,988 | 53,747 | 56,530 | 43,493 | |
Net interest income | 16,778 | 13,432 | 15,001 | 13,660 | 18,989 | 15,587 | 14,622 | 16,746 | 58,871 | 65,944 | 69,788 | |
Interest income − other | 5,005 | 4,252 | 6,785 | |||||||||
Total revenues | 62,680 | 70,875 | 84,306 | |||||||||
Segment operating expenses | 77,023 | 77,840 | 43,735 | |||||||||
General and administrative | 15,197 | 16,346 | 14,705 | |||||||||
Depreciation and amortization | 1,566 | 4,245 | 2,358 | |||||||||
Impairment losses | 26,470 | 372 | 0 | |||||||||
Provision for loan and lease losses | 17,765 | 41,088 | 1,712 | |||||||||
Equity in net (earnings) losses of unconsolidated entities | (5,973) | (2,388) | (4,767) | |||||||||
Other (income) expense | (1,500) | (60) | 1,262 | |||||||||
Income tax (expense) benefit | (10,992) | (1,354) | 1,867 | |||||||||
Net income (loss) | (3,522) | $ (45,621) | $ 4,529 | $ 14,020 | 7,207 | $ 14,722 | $ (22,716) | $ 17,970 | (30,594) | 17,183 | 62,168 | |
Investments in unconsolidated entities | 87,919 | 50,030 | 87,919 | 50,030 | ||||||||
Total Assets | [1] | 2,053,543 | 2,765,562 | 2,053,543 | 2,765,562 | |||||||
Assets held for sale | 240,900 | 532,800 | 240,900 | 532,800 | ||||||||
Commercial Real Estate Debt Investments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 98,631 | 100,292 | 76,620 | |||||||||
Other | 43 | 89 | 1 | |||||||||
Interest expense | 33,444 | 33,775 | 23,958 | |||||||||
Net interest income | 65,187 | 66,517 | 52,662 | |||||||||
Interest income − other | 0 | 0 | 8,441 | |||||||||
Total revenues | 65,187 | 66,517 | 61,103 | |||||||||
Segment operating expenses | 340 | 130 | 5,443 | |||||||||
General and administrative | 2,246 | 2,263 | 2,088 | |||||||||
Depreciation and amortization | 0 | 0 | 484 | |||||||||
Impairment losses | 20,662 | 0 | 0 | |||||||||
Provision for loan and lease losses | 18,167 | 37,736 | (3,808) | |||||||||
Equity in net (earnings) losses of unconsolidated entities | (1,025) | 277 | (4,364) | |||||||||
Other (income) expense | (2,530) | 216 | (8,003) | |||||||||
Income (loss) from continuing operations before taxes | 27,327 | 25,895 | 69,263 | |||||||||
Income tax (expense) benefit | 0 | 37 | 300 | |||||||||
Net income (loss) | 27,327 | 25,932 | 69,563 | |||||||||
Investments in unconsolidated entities | 16,953 | 6,465 | 16,953 | 6,465 | ||||||||
Commercial Finance | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 13,504 | 21,551 | 35,784 | |||||||||
Other | 4,935 | 4,072 | 6,556 | |||||||||
Interest expense | (6) | 2,818 | 8,182 | |||||||||
Net interest income | 13,510 | 18,733 | 27,602 | |||||||||
Interest income − other | 3,736 | 4,865 | 6,011 | |||||||||
Total revenues | 17,246 | 23,598 | 33,613 | |||||||||
Segment operating expenses | 1,337 | 1,507 | 3,071 | |||||||||
General and administrative | 1,141 | 3,469 | 4,130 | |||||||||
Depreciation and amortization | 1,432 | 4,118 | 1,800 | |||||||||
Impairment losses | 5,567 | 372 | 0 | |||||||||
Provision for loan and lease losses | (402) | 3,352 | 5,469 | |||||||||
Equity in net (earnings) losses of unconsolidated entities | (4,948) | (2,608) | (478) | |||||||||
Other (income) expense | (3,363) | (8,582) | 1,500 | |||||||||
Income (loss) from continuing operations before taxes | 16,482 | 21,970 | 18,121 | |||||||||
Income tax (expense) benefit | (980) | 1,001 | 1,699 | |||||||||
Net income (loss) | 15,502 | 22,971 | 19,820 | |||||||||
Investments in unconsolidated entities | 69,418 | 42,017 | 69,418 | 42,017 | ||||||||
Residential mortgage loans | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 456 | 540 | 649 | |||||||||
Other | 0 | 0 | 0 | |||||||||
Interest expense | 0 | 111 | 173 | |||||||||
Net interest income | 456 | 429 | 476 | |||||||||
Interest income − other | 0 | 0 | 0 | |||||||||
Total revenues | 456 | 429 | 476 | |||||||||
Segment operating expenses | 84 | 1,136 | 824 | |||||||||
General and administrative | 424 | 937 | 721 | |||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||
Impairment losses | 241 | 0 | 0 | |||||||||
Provision for loan and lease losses | 0 | 0 | 0 | |||||||||
Equity in net (earnings) losses of unconsolidated entities | 0 | 0 | 0 | |||||||||
Other (income) expense | 63 | (4,710) | 0 | |||||||||
Income (loss) from continuing operations before taxes | (356) | 3,066 | (1,069) | |||||||||
Income tax (expense) benefit | (9,889) | (1,949) | 411 | |||||||||
Net income (loss) | (10,245) | 1,117 | (658) | |||||||||
Investments in unconsolidated entities | 0 | 0 | 0 | 0 | ||||||||
Cash from continuing operations | 22,900 | 21,200 | 22,900 | 21,200 | ||||||||
Corporate and Other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 27 | 91 | 228 | |||||||||
Other | 27 | 91 | 228 | |||||||||
Interest expense | 20,309 | 19,826 | 11,180 | |||||||||
Net interest income | (20,282) | (19,735) | (10,952) | |||||||||
Interest income − other | 73 | 66 | 66 | |||||||||
Total revenues | (20,209) | (19,669) | (10,886) | |||||||||
Segment operating expenses | 14,264 | 13,016 | 15,622 | |||||||||
General and administrative | 11,386 | 9,677 | 7,766 | |||||||||
Depreciation and amortization | 134 | 127 | 74 | |||||||||
Impairment losses | 0 | 0 | 0 | |||||||||
Provision for loan and lease losses | 0 | 0 | 51 | |||||||||
Equity in net (earnings) losses of unconsolidated entities | 0 | (57) | 75 | |||||||||
Other (income) expense | (2,198) | (3,934) | (5,877) | |||||||||
Income (loss) from continuing operations before taxes | (43,795) | (38,498) | (28,597) | |||||||||
Income tax (expense) benefit | (123) | (443) | (543) | |||||||||
Net income (loss) | (43,918) | (38,941) | (29,140) | |||||||||
Investments in unconsolidated entities | 1,548 | 1,548 | 1,548 | 1,548 | ||||||||
Cumulative intercompany reclassification | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 112,618 | 122,474 | 113,281 | |||||||||
Other | 5,005 | 4,252 | 6,785 | |||||||||
Interest expense | 53,747 | 56,530 | 43,493 | |||||||||
Net interest income | 58,871 | 65,944 | 69,788 | |||||||||
Interest income − other | 3,809 | 4,931 | 14,518 | |||||||||
Total revenues | 62,680 | 70,875 | 84,306 | |||||||||
Segment operating expenses | 16,025 | 15,789 | 24,960 | |||||||||
General and administrative | 15,197 | 16,346 | 14,705 | |||||||||
Depreciation and amortization | 1,566 | 4,245 | 2,358 | |||||||||
Impairment losses | 26,470 | 372 | 0 | |||||||||
Provision for loan and lease losses | 17,765 | 41,088 | 1,712 | |||||||||
Equity in net (earnings) losses of unconsolidated entities | (5,973) | (2,388) | (4,767) | |||||||||
Other (income) expense | (8,028) | (17,010) | (12,380) | |||||||||
Income (loss) from continuing operations before taxes | (342) | 12,433 | 57,718 | |||||||||
Income tax (expense) benefit | (10,992) | (1,354) | 1,867 | |||||||||
Net income (loss) | (11,334) | 11,079 | 59,585 | |||||||||
Convertible Debt | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest expense | 17,700 | 17,400 | 8,800 | |||||||||
Unsecured Junior Subordinated Debentures | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest expense | 2,600 | 2,400 | 2,400 | |||||||||
Continuing Operations | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total Assets | 1,812,673 | 2,232,772 | 1,812,673 | 2,232,772 | ||||||||
Continuing Operations | Commercial Real Estate Debt Investments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total Assets | 1,624,779 | 1,907,945 | 1,624,779 | 1,907,945 | ||||||||
Continuing Operations | Commercial Finance | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total Assets | 160,414 | 306,654 | 160,414 | 306,654 | ||||||||
Continuing Operations | Residential mortgage loans | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total Assets | 12,460 | 1,860 | 12,460 | 1,860 | ||||||||
Continuing Operations | Corporate and Other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total Assets | $ 15,020 | $ 16,313 | 15,020 | 16,313 | ||||||||
External Customers [Member] | Commercial Real Estate Debt Investments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 98,588 | 100,203 | 76,619 | |||||||||
External Customers [Member] | Commercial Finance | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 8,569 | 17,479 | 29,228 | |||||||||
External Customers [Member] | Residential mortgage loans | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 456 | 540 | 649 | |||||||||
External Customers [Member] | Corporate and Other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 0 | 0 | 0 | |||||||||
External Customers [Member] | Cumulative intercompany reclassification | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | $ 107,613 | $ 118,222 | $ 106,496 | |||||||||
[1] | December 31, 2016December 31, 2015Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $95 Restricted cash$3,308 $39,061 Investments securities available-for-sale, pledged as collateral, at fair value369 66,137 Loans held for sale1,007 1,475Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million747,726 1,416,441 Interest receivable3,153 6,592 Principal paydown receivable5,820 17,800Investment securities available-for-sale, pledged as collateral, at fair value369 66,137 Other assets58 1,071 Total assets of consolidated VIEs$761,441 $1,548,672 |
Schedule II Valuation and Qu155
Schedule II Valuation and Qualifying Accounts (Details) - Allowance for Loan and Lease Losses, Real Estate - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 43,586 | $ 4,613 | $ 13,807 |
Charge to expense | 17,765 | 41,087 | 1,712 |
Loans Charged off/Recovered | 402 | (2,175) | (10,906) |
Deconsolidation of VIEs | (41,696) | 61 | 0 |
Transfer to Loans Held For Sale | (15,763) | 0 | 0 |
Balance at end of period | $ 4,294 | $ 43,586 | $ 4,613 |
Schedule III - Real Estate a156
Schedule III - Real Estate and Accumulated Depreciation (Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||
Balance, beginning of year | $ 0 | $ 0 | $ 32,380 |
Additions: | |||
Improvements | 0 | 0 | 25 |
Total additions | 0 | 0 | 25 |
Deductions: | |||
Cost of real estate sold | 0 | 0 | (32,405) |
Property available-for-sale | 0 | 0 | 0 |
Balance, end of year | 0 | 0 | 0 |
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||
Balance, beginning of year | 0 | 0 | 2,602 |
Depreciation expense | 0 | 0 | 433 |
Total additions | 0 | 0 | 433 |
Sales | 0 | 0 | (3,035) |
Balance, end of year | $ 0 | $ 0 | $ 0 |
Schedule IV Mortgage Loans o157
Schedule IV Mortgage Loans on Real Estate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount of Loans | $ 1,528,689 | |
Net Carrying Amount of Loans | 1,444,456 | |
Principal Amount of Loans subject to delinquent principal or interest | 105,531 | |
Allowance for Loan Loss | $ 3,829 | $ 43,121 |
Whole loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of face amount and carrying amount of loans, less than 3% | 3.00% | |
Face Amount of Loans | $ 1,295,926 | |
Net Carrying Amount of Loans | 1,286,278 | |
Principal Amount of Loans subject to delinquent principal or interest | 0 | |
Allowance for Loan Loss | 3,829 | |
Whole loans, not separately disclosed | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount of Loans | 1,094,738 | |
Net Carrying Amount of Loans | 1,086,188 | |
Principal Amount of Loans subject to delinquent principal or interest | $ 0 | |
CRE legacy whole loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of face amount and carrying amount of loans, less than 3% | 3.00% | |
Face Amount of Loans | $ 194,691 | |
Net Carrying Amount of Loans | 158,178 | |
Principal Amount of Loans subject to delinquent principal or interest | 67,459 | |
Legacy CRE whole loans, not separately disclosed | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount of Loans | 127,232 | |
Net Carrying Amount of Loans | 96,778 | |
Principal Amount of Loans subject to delinquent principal or interest | 0 | |
Mezzanine loans, not separately disclosed | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount of Loans | 38,072 | |
Net Carrying Amount of Loans | 0 | |
Principal Amount of Loans subject to delinquent principal or interest | $ 38,072 | |
Mezzanine loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of face amount and carrying amount of loans, less than 3% | 3.00% | |
Face Amount of Loans | $ 38,072 | |
Net Carrying Amount of Loans | 0 | |
Principal Amount of Loans subject to delinquent principal or interest | $ 38,072 | |
Multi-Family Property | Houston, Texas- Borrower A | Whole loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Variable rate basis, floor | 0.25% | |
Basis spread on variable rate | 4.50% | |
Mortgage loans on real estate, prior liens | $ 0 | |
Face Amount of Loans | 75,575 | |
Net Carrying Amount of Loans | 75,400 | |
Principal Amount of Loans subject to delinquent principal or interest | $ 0 | |
Multi-Family Property | Georgia | Whole loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Variable rate basis, floor | 0.25% | |
Basis spread on variable rate | 5.35% | |
Mortgage loans on real estate, prior liens | $ 0 | |
Face Amount of Loans | 58,998 | |
Net Carrying Amount of Loans | 58,625 | |
Principal Amount of Loans subject to delinquent principal or interest | $ 0 | |
Retail Site | Various- Borrower B | Whole loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Variable rate basis, floor | 0.25% | |
Basis spread on variable rate | 5.24% | |
Mortgage loans on real estate, prior liens | $ 0 | |
Face Amount of Loans | 66,615 | |
Net Carrying Amount of Loans | 66,065 | |
Principal Amount of Loans subject to delinquent principal or interest | 0 | |
Hotel | California | CRE legacy whole loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount of Loans | 67,459 | |
Net Carrying Amount of Loans | 61,400 | |
Principal Amount of Loans subject to delinquent principal or interest | $ 67,459 | |
Debt instrument, interest rate, stated percentage | 0.50% |
Uncategorized Items - rso-20161
Label | Element | Value |
Variable Interest Entity, Deconsolidated [Member] | ||
Cash Divested from Deconsolidation | us-gaap_CashDivestedFromDeconsolidation | $ (472,000) |