Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 04, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | RESOURCE CAPITAL CORP. | |
Entity Central Index Key | 1,332,551 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (in shares) | 31,388,700 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
ASSETS: | |||
Cash and cash equivalents | [1] | $ 157,760 | $ 116,026 |
Restricted cash | [1] | 4,871 | 3,399 |
Interest receivable | [1] | 6,139 | 6,404 |
CRE loans, pledged as collateral and net of allowances of $4.7 million and $3.8 million | [1] | 1,295,154 | 1,286,278 |
Loans held for sale | [1] | 2 | 1,007 |
Principal paydowns receivable | [1] | 13,900 | 19,280 |
Investment securities, trading | [1] | 221 | 4,492 |
Investment securities available-for-sale, including securities pledged as collateral of $91.1 million and $97.5 million | [1] | 118,531 | 124,968 |
Investments in unconsolidated entities | [1] | 74,271 | 87,919 |
Derivatives, at fair value | [1] | 136 | 647 |
Direct financing leases, net of allowances of $0.6 million and $0.5 million | [1] | 349 | 527 |
Intangible assets | [1] | 0 | 213 |
Other assets | [1] | 3,469 | 14,673 |
Deferred tax asset, net | [1] | 3,899 | 4,255 |
Assets held for sale (amount includes $143.9 million and $158.2 million of legacy CRE loans held for sale in continuing operations, see Note 22) | [1] | 317,118 | 383,455 |
Total assets | [1] | 1,995,820 | 2,053,543 |
LIABILITIES: | |||
Accounts payable and other liabilities | [2] | 2,417 | 4,480 |
Management fee payable - related party | [2] | 1,418 | 1,318 |
Accrued interest expense | [2] | 4,629 | 4,979 |
Borrowings | [2] | 1,177,195 | 1,191,456 |
Distributions payable | [2] | 5,577 | 5,560 |
Derivatives, at fair value | [2] | 0 | 97 |
Liabilities held for sale (see Note 22) | [2] | 99,539 | 142,563 |
Total liabilities | [2] | 1,290,775 | 1,350,453 |
EQUITY | |||
Common stock, par value $0.001: 125,000,000 shares authorized; 31,393,013 and 31,050,020 shares issued and outstanding (including 592,422 and 400,050 unvested restricted shares) | 31 | 31 | |
Additional paid-in capital | 1,219,125 | 1,218,352 | |
Accumulated other comprehensive income (loss) | 3,232 | 3,081 | |
Distributions in excess of earnings | (516,045) | (517,177) | |
Total Resource Capital Corp. stockholders’ equity | 706,355 | 704,299 | |
Non-controlling interests | (1,310) | (1,209) | |
Total equity | 705,045 | 703,090 | |
TOTAL LIABILITIES AND EQUITY | 1,995,820 | 2,053,543 | |
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] | March 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash4,841 3,308Interest receivable2,700 3,153CRE loans, pledged as collateral and net of allowances of $0.8 million and $0.8 million638,930 747,726Loans held for sale2 1,007Principal paydowns receivable13,900 5,820Investment securities available-for-sale, including securities pledged as collateral— 369Other assets186 58Total assets of consolidated VIEs$660,559 $761,441 | ||
[2] | March 31, 2017 December 31, 2016Liabilities of consolidated VIEs included in the total liabilities above: Accounts payable and other liabilities$71 $133Accrued interest expense444 519Borrowings381,168 480,103Total liabilities of consolidated VIEs$381,683 $480,755 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Financing receivable, allowance for credit losses | $ 4,700 | $ 3,800 |
Investment securities available-for-sale, amount pledged as collateral | 91,100 | 97,500 |
Direct financing leases, allowances | 5,293 | 4,294 |
Investment securities available-for-sale | $ 118,531 | $ 124,968 |
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) | 31,393,013 | 31,050,020 |
Common stock, shares outstanding (in shares) | 31,393,013 | 31,050,020 |
Common stock, shares issued, non-vested restricted shares (in shares) | 592,422 | 400,050 |
Assets of consolidated Variable Interest Entities (VIEs) included in the total assets above: | ||
Restricted cash | $ 4,841 | $ 3,308 |
Interest receivable | 2,700 | 3,153 |
CRE loans, pledged as collateral and net of allowances of $0.8 million and $0.8 million | 638,930 | 747,726 |
Loans held for sale | 2 | 1,007 |
Principal paydowns receivable | 13,900 | 5,820 |
Investment securities available-for-sale, including securities pledged as collateral | 0 | 369 |
Other assets | 186 | 58 |
Total assets of consolidated VIEs | 660,559 | 761,441 |
Liabilities of consolidated VIEs included in the total liabilities above: | ||
Accounts payable and other liabilities | 71 | 133 |
Accrued interest expense | 444 | 519 |
Borrowings | 381,168 | 480,103 |
Total liabilities of consolidated VIEs | 381,683 | 480,755 |
Loan allowances, VIEs | $ 800 | $ 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 | $ 25 |
Preferred stock, coupon authorized | 8.50% | 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 | $ 25 |
Preferred stock, coupon authorized | 8.25% | 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 | $ 25 |
Preferred stock, coupon authorized | 8.625% | 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 |
Discontinued Operations, Held-for-sale | ||
Investment securities available-for-sale | $ 283,823 | $ 346,761 |
Discontinued Operations, Held-for-sale | Legacy CRE Whole Loans | ||
Investment securities available-for-sale | 143,907 | 158,178 |
Direct Financing Leases | ||
Direct financing leases, allowances | $ 604 | $ 465 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Interest income: | ||
CRE loans | $ 21,533 | $ 20,981 |
Securities | 2,308 | 4,798 |
Interest income - other | 1,630 | 1,237 |
Total interest income | 25,471 | 27,016 |
Interest expense | 14,254 | 13,302 |
Net interest income | 11,217 | 13,714 |
Dividend income | 19 | 17 |
Fee income | 909 | 572 |
Total revenues | 12,145 | 14,303 |
OPERATING EXPENSES | ||
Management fees - related party | 2,680 | 4,037 |
Equity compensation - related party | 788 | 489 |
General and administrative | 3,863 | 3,642 |
Depreciation and amortization | 68 | 509 |
Impairment losses | 177 | 0 |
Provision (recovery) for loan and lease losses | 999 | (70) |
Total operating expenses | 8,575 | 8,607 |
Net interest and other revenues less operating expenses | 3,570 | 5,696 |
OTHER INCOME (EXPENSE) | ||
Equity in earnings of unconsolidated entities | 361 | 2,222 |
Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives | 7,606 | 853 |
Net realized and unrealized gain (loss) on investment securities, trading | (911) | 145 |
Fair value adjustments on financial assets held for sale | (21) | 0 |
Other income (expense) | 68 | (60) |
Total other income (expense) | 7,103 | 3,160 |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES | 10,673 | 8,856 |
Income tax (expense) benefit | (1,499) | (4) |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | 9,174 | 8,852 |
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX | (561) | 5,168 |
NET INCOME (LOSS) | 8,613 | 14,020 |
Net (income) loss allocated to preferred shares | (6,014) | (6,048) |
Carrying value in excess of consideration paid for preferred shares | 0 | 1,611 |
Net (income) loss allocable to non-controlling interests, net of taxes | 101 | 90 |
NET INCOME (LOSS) ALLOCABLE TO COMMON SHARES | $ 2,700 | $ 9,673 |
NET INCOME (LOSS) PER COMMON SHARE – BASIC | ||
CONTINUING OPERATIONS (in dollars per share) | $ 0.11 | $ 0.12 |
DISCONTINUED OPERATIONS (in dollars per share) | (0.02) | 0.20 |
NET INCOME (LOSS) PER COMMON SHARE – BASIC (in dollars per share) | 0.09 | 0.32 |
NET INCOME (LOSS) PER COMMON SHARE – DILUTED | ||
CONTINUING OPERATIONS (in dollars per share) | 0.11 | 0.12 |
DISCONTINUED OPERATIONS (in dollars per share) | (0.02) | 0.19 |
NET INCOME (LOSS) PER COMMON SHARE – DILUTED (in dollars per share) | $ 0.09 | $ 0.31 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC (in shares) | 30,752,006 | 30,600,407 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - DILUTED (in shares) | 30,914,148 | 31,038,095 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 8,613 | $ 14,020 |
Other comprehensive income (loss): | ||
Reclassification adjustment for realized (gains) losses on available-for-sale securities included in net income | 0 | 301 |
Unrealized gains (losses) on available-for-sale securities, net | 134 | (1,318) |
Reclassification adjustments associated with unrealized (gains) losses from interest rate hedges included in net income | 17 | 61 |
Unrealized gains on derivatives, net | 0 | 27 |
Total other comprehensive income (loss) | 151 | (929) |
Comprehensive income (loss) before allocation to non-controlling interests and preferred shares | 8,764 | 13,091 |
Net (income) loss allocable to non-controlling interests, net of taxes | 101 | 90 |
Net (income) loss allocated to preferred shares | (6,014) | (6,048) |
Carrying value in excess of consideration paid for preferred shares | 0 | 1,611 |
Comprehensive income (loss) allocable to common shares | $ 2,851 | $ 8,744 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - 3 months ended Mar. 31, 2017 - USD ($) $ in Thousands | Total | Parent [Member] | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings | Distributions in Excess of Earnings | Non-Controlling Interests | Preferred Shares - Series APreferred Stock | Preferred Shares - Series BPreferred Stock | Preferred Shares - Series CPreferred Stock |
Beginning balance (in shares) at Dec. 31, 2016 | 31,050,020 | 31,050,020 | |||||||||
Beginning balance at Dec. 31, 2016 | $ 703,090 | $ 704,299 | $ 31 | $ 1,218,352 | $ 3,081 | $ 0 | $ (517,177) | $ (1,209) | $ 1 | $ 6 | $ 5 |
Increase (Decrease) in Stockholders' Equity | |||||||||||
Stock based compensation (in shares) | 360,799 | ||||||||||
Stock based compensation | 0 | 0 | 0 | ||||||||
Amortization of stock based compensation | 847 | 847 | 847 | ||||||||
Purchase and retirement of common shares (in shares) | (8,508) | ||||||||||
Purchase and retirement of common shares | (74) | (74) | $ 0 | (74) | |||||||
Forfeiture of unvested stock (in shares) | (9,298) | ||||||||||
Net income (loss) | 8,613 | 8,714 | 8,714 | (101) | |||||||
Preferred dividends | (6,014) | (6,014) | (6,014) | ||||||||
Securities available-for-sale, fair value adjustment, net | 134 | 134 | 134 | ||||||||
Designated derivatives, fair value adjustment | 17 | 17 | 17 | ||||||||
Distributions on common stock | $ (1,568) | (1,568) | (2,700) | 1,132 | |||||||
Ending balance (in shares) at Mar. 31, 2017 | 31,393,013 | 31,393,013 | |||||||||
Ending balance at Mar. 31, 2017 | $ 705,045 | $ 706,355 | $ 31 | $ 1,219,125 | $ 3,232 | $ 0 | $ (516,045) | $ (1,310) | $ 1 | $ 6 | $ 5 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017USD ($)Entity | Mar. 31, 2016USD ($) | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net income (loss) from continuing operations | $ 9,174 | $ 8,852 | ||
Net income (loss) from discontinued operations, net of tax | (561) | 5,168 | ||
NET INCOME (LOSS) | 8,613 | 14,020 | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Provision (recovery) for loan and lease losses | 999 | (70) | ||
Depreciation, amortization and accretion | (349) | (2,473) | ||
Amortization of stock-based compensation | 788 | 489 | ||
Sale of and principal payments on syndicated corporate loans held for sale | 1,076 | 0 | ||
Sale (purchase) of and principal payments on securities, trading, net | 4,493 | 3 | ||
Net realized and unrealized (gain) loss on investment securities, trading | 911 | (145) | ||
Net realized and unrealized (gain) loss on sales of investment securities available-for-sale and loans and derivatives | (7,606) | (853) | ||
Fair value adjustments on financial assets held for sale | 21 | 0 | ||
Impairment losses | 177 | 0 | ||
Equity in net (earnings) losses of unconsolidated entities | (361) | (2,222) | ||
Return on investment from investments in unconsolidated entities | 6,292 | 0 | ||
Changes in operating assets and liabilities, net of acquisitions | 2,279 | 453 | ||
Net cash provided by (used in) continuing operating activities | 17,333 | 9,202 | ||
Net cash provided by (used in) discontinued operating activities | 52,095 | (27,491) | ||
Net cash provided by (used in) operating activities | 69,428 | (18,289) | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
(Increase) decrease in restricted cash | (1,713) | 14,365 | ||
Deconsolidation of VIEs | 0 | [1] | (472) | [1] |
Origination and purchase of loans | (119,240) | (55,682) | ||
Principal payments received on loans and leases | 116,159 | 24,627 | ||
Proceeds from sale of loans | 21,250 | 138 | ||
Purchase of securities available-for-sale | 0 | (6,468) | ||
Principal payments on securities available-for-sale | 7,519 | 16,229 | ||
Proceeds from sale of securities available-for-sale | 9,422 | 0 | ||
Return of capital from (investment in) unconsolidated entity | 7,703 | 9,381 | ||
Settlement of derivative instruments | 106 | 56 | ||
Purchase of furniture and fixtures | 0 | (23) | ||
Net cash provided by (used in) continuing investing activities | 41,206 | 2,151 | ||
Net cash provided by (used in) discontinued investing activities | 0 | 54,196 | ||
Net cash provided by (used in) investing activities | 41,206 | 56,347 | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Net proceeds from issuances of common stock and dividend reinvestment and stock purchase plan (net of offering costs of $0 and $0) | 0 | 33 | ||
Repurchase of common stock | (74) | (7,445) | ||
Repurchase of preferred shares | 0 | (3,114) | ||
Net proceeds (borrowings) from repurchase agreements | 83,513 | 25,233 | ||
Payments on borrowings: | ||||
Securitizations | (100,542) | (28,334) | ||
Distributions paid on preferred stock | (6,014) | (6,115) | ||
Distributions paid on common stock | (1,550) | (13,232) | ||
Net cash (used in) provided by continuing financing activities | (24,667) | (32,974) | ||
Net cash (used in) provided by discontinued financing activities | (44,233) | (12,437) | ||
Net cash (used in) provided by financing activities | (68,900) | (45,411) | ||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 41,734 | (7,353) | ||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 116,026 | [2] | 78,756 | |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 157,760 | [2] | 71,403 | |
SUPPLEMENTAL DISCLOSURE: | ||||
Interest expense paid in cash | 12,648 | 12,946 | ||
Income taxes paid in cash | $ 515 | $ 43 | ||
VIE, Primary Beneficiary | ||||
Number of consolidated VIEs | Entity | 7 | |||
[1] | Cash and cash equivalents at 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. | |||
[2] | March 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash4,841 3,308Interest receivable2,700 3,153CRE loans, pledged as collateral and net of allowances of $0.8 million and $0.8 million638,930 747,726Loans held for sale2 1,007Principal paydowns receivable13,900 5,820Investment securities available-for-sale, including securities pledged as collateral— 369Other assets186 58Total assets of consolidated VIEs$660,559 $761,441 |
CONSOLIDATED STATEMENTS OF CAS8
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net proceeds from dividend reinvestment and stock purchase plan, offering costs | $ 0 | $ 96 |
Offering costs on stock issuance | $ 0 | $ 80 |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | NOTE 1 - ORGANIZATION Resource Capital Corp. and its subsidiaries (collectively the "Company") is primarily focused on originating, holding and managing commercial mortgage loans and other commercial real estate ("CRE") related debt investments. Historically, the Company has also made other commercial finance investments. The Company's investment activities are managed by Resource Capital Manager, Inc. ("Manager") pursuant to a management agreement. The Manager is an indirect wholly-owned 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 leading CRE investment management and 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, zoning due diligence, investment sales and multifamily property management. As part of the transaction, C-III took over control of the Company's Manager and became the beneficial owner of approximately 2.3% of the Company’s outstanding common shares at March 31, 2017 . 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 originated prior to 2010. The Company reclassified 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 are reported as discontinued operations and have been 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 CRE loans, CRE related securities and direct investments in real estate. RCC Real Estate owns 100% of the equity of the following variable interest entities "VIE": ◦ Resource Real Estate Funding CDO 2006-1, Ltd. ("RREF CDO 2006-1"), a Cayman Islands limited liability company and qualified real estate investment trust ("REIT") subsidiary ("QRS"). RREF CDO 2006-1 was established to complete a collateralized debt obligation ("CDO") issuance secured by a portfolio of 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 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 loans held for investment, which were recorded at fair value. ◦ Resource Real Estate Funding CDO 2007-1, Ltd. ("RREF CDO 2007-1"), a Cayman Islands limited liability company and QRS. RREF CDO 2007-1 was established to complete a CDO issuance secured by a portfolio of CRE loans and CMBS. This entity was deconsolidated at January 1, 2016 and the retained investment is now accounted for as an investment security, available-for-sale 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 that holds syndicated corporate loan investments, 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"). On March 31, 2015, the Company issued a notice of redemption to Apidos CDO III's trustee to call the CDO. In June 2015, the Company liquidated Apidos CDO III and, as a result, substantially 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, Ltd. ("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 is now 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, substantially all of the assets were sold. • RCC Commercial III, Inc. ("Commercial III") holds syndicated corporate loans 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 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, which 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 22 for further discussion. ◦ RCM Global Manager, LLC ("RCM Global Manager"), a Delaware limited liability company, owns 21.6% of the following entity: ▪ RCM Global, LLC ("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 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 also 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 businesses, 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 March 31, 2017 . 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, NEW NP, LLC's operations were reclassified to discontinued operations. See Note 22 for further discussion. ▪ Pelium Capital Partners, L.P. ("Pelium Capital"), a Delaware limited partnership, which holds investment securities, trading. Resource TRS owns 80.2% of the equity in Pelium Capital at March 31, 2017 . 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 LLC ("RCAM"), a domestic limited liability company, which was entitled to collect senior, subordinated, and incentive fees related to CLO issuers to which it provided management services through CVC Credit Partners, L.P., formerly Apidos Capital Management ("ACM"), a subsidiary of CVC Capital Partners SICAV-FIS, S.A., a private equity firm ("CVC"). Resource America, Inc. owns a 24% interest in CVC Credit Partners, L.P., ("CVC Credit Partners"). 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 and was also dissolved. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2017 | |
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") and the accounting policies set forth in Note 2 included in the Company's annual report on Form 10-K for the year ended December 31, 2016 . The consolidated financial statements include the accounts of the Company. All inter-company transactions and balances have been eliminated. Basis of Presentation All adjustments (which include only normal recurring adjustments) necessary to present fairly the Company’s financial position, results of operations and cash flows have been made. 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 March 31, 2017 and December 31, 2016 , approximately $153.7 million and $111.6 million , respectively, of the reported cash balances exceeded the Federal Deposit Insurance Corporation deposit insurance limit of $250,000 per institution. However, all of the Company's cash deposits are held at multiple, established financial institutions to minimize credit risk exposure. Allowance for Loan Loss The general reserve, established for loans not determined to be impaired individually, is based on the Company's historical realized loss experience, adjusted for certain current economic factors. 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. Income Taxes Due to changes in management’s focus regarding the non-CRE businesses, the Company’s forecasted taxable income continues to be insufficient to completely realize the tax benefits of the gross deferred tax asset of $60.9 million (tax effected $17.1 million ) at March 31, 2017 . The Company believes it will be able to utilize up to $28.3 million of the gross deferred tax asset prior to its expiration. Therefore, a gross valuation allowance of $32.6 million (tax effected $13.2 million ) has been recorded against the deferred tax asset at March 31, 2017 . Management will continue to evaluate the Company's ability to realize the tax benefits associated with deferred tax assets by analyzing forecasted taxable income using both historical and projected future operating results, the reversal of existing temporary differences, taxable income in prior carry back years (if permitted) and the availability of tax planning strategies. Recent Accounting Standards In January 2017, the Financial Accounting Standards Board ("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: (i) 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 (ii) 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 became effective for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. Adoption did not have a material impact on the Company's consolidated financial statements. 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: (i) debt prepayments or extinguishment costs; (ii) contingent consideration payments made after a business combination; (iii) proceeds from the settlement of insurance claims; (iv) proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); (v) settlement of zero-coupon debt instruments or other debt instruments with insignificant coupon rates; (vi) distributions received from equity method investees; (vii) beneficial interests in securitization transactions and (viii) 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 became effective for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. Adoption did not have a material impact on the Company's consolidated financial statements. 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 in the process of evaluating the impact of this new guidance. 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 in the process of evaluating the impact of this new guidance. 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: (i) modify the evaluation of whether limited partnerships and similar legal entities are VIEs; (ii) eliminate the presumption that a general partner should consolidate a limited partnership; (iii) affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related-party relationships and (iv) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. This guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. 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 became effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Adoption did not have a material impact on the Company's consolidated financial statements. 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. Reclassifications Certain reclassifications have been made to the 2016 consolidated financial statements to conform to the 2017 presentation, including the impact of discontinued operations and assets and liabilities held for sale. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 and 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 CRE 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. 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 an aggregate combined fair value of $2.3 million . The Company received $22.7 million as a result of the liquidation through March 2017. The Company elected the fair value option for the structured security and syndicated corporate loans upon acquisition, as given the short hold period, the Company believes fair value is the most useful indication of value for these assets. 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 11 . For consolidated CLOs in which the Company does not own 100% of the subordinated notes, the Company imputes an interest rate using expected cash flows over the life of the CLO and records the third party's share of the cash flows as interest expense on the consolidated statements of operations. The Company has exposure to losses on its securitizations to the extent of its subordinated debt and preferred equity interests in them. The Company is entitled to receive payments of principal and interest on the debt securities it holds and, to the extent revenues exceed debt service requirements and other expenses of the securitizations, distributions with respect to its preferred equity interests. As a result of consolidation, debt and equity interests the Company holds in these securitizations have been eliminated, and the Company’s consolidated balance sheets reflects both the assets held and debt issued by the securitizations to third parties and any accrued expense to third parties. The Company's operating results and cash flows include the gross amounts related to the securitizations' assets and liabilities as opposed to the Company's net economic interests in the securitizations. Assets and liabilities related to the securitizations are disclosed, in the aggregate, on the Company's consolidated balance sheets. The creditors of the Company’s seven consolidated VIEs have no recourse to the general credit of the Company. During the three months ended March 31, 2017 , 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 March 31, 2017 (in thousands): Apidos I Apidos III Apidos Cinco Whitney CLO I RCC 2014-CRE2 RCC 2015-CRE3 RCC 2015-CRE4 (1) Total ASSETS Restricted cash $ 239 $ 100 $ 1,563 $ 187 $ — $ — $ 2,752 $ 4,841 Loans, pledged as collateral — — — — 201,164 232,952 204,814 638,930 Loans held for sale — — 2 — — — — 2 Interest receivable — — — — 825 1,024 851 2,700 Principal paydown receivable — — — — — 13,900 — 13,900 Other assets — — — — 16 154 16 186 Total assets (2) $ 239 $ 100 $ 1,565 $ 187 $ 202,005 $ 248,030 $ 208,433 $ 660,559 LIABILITIES Borrowings $ — $ — $ — $ — $ 81,834 $ 181,505 $ 117,829 $ 381,168 Accrued interest expense — — — — 86 222 136 444 Accounts payable and other liabilities — — — — 31 11 29 71 Total liabilities $ — $ — $ — $ — $ 81,951 $ 181,738 $ 117,994 $ 381,683 (1) Includes $2.8 million designated to fund future commitments on specific CRE 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 March 31, 2017 . 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 and property available-for-sale and were financed by the issuance of debt securities. The Manager manages the commercial real estate-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. On January 1, 2016, the Company adopted the amendments to the consolidation guidance. 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 and were deconsolidated. At deconsolidation, the Company recorded its investments in RREF CDO 2006-1and RREF CDO 2007-1 at fair value and accounted 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 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 and sales of investment securities available-for-sale and loans and derivatives 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. 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 March 31, 2017 , the Company held a 21.6% interest in RCM Global and the remainder was owned by subsidiaries of Resource America and certain of its employees and their spouses. 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 in February 2015. The Company will receive 10% of the carried interest in the partnership for the first five years which can increase its interest to 20% if the Company's capital contributions aggregate $40.0 million . Resource America contributed cash of $2.8 million to the formation of Pelium Capital. At December 31, 2015, Pelium Capital was accounted for as a consolidated voting interest subsidiary. On January 1, 2016, the Company adopted the amendments to the consolidation guidance. 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 as an equity method investment in investments in unconsolidated entities in its consolidated financial statements. At March 31, 2017 , the Company had an investment balance of $12.2 million and held 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 investment advisor for Pearlmark Mezz is Pearlmark Real Estate LLC ("Pearlmark Manager"), which 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 Mezz as an equity method investment in an unconsolidated entity in its consolidated financial statements. The Company pays Pearlmark Manager management fees of 1.0% 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. Resource America has agreed that it will credit any such fees paid by the Company to Pearlmark Manager against the base management fee that the Company pays Resource America. At March 31, 2017 , the Company had an investment balance of $16.9 million and held a 47.7% interest in Pearlmark Mezz. 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"), a former subsidiary of Resource America, entered into a stock purchase agreement and related agreements (collectively the "SPA") with Eos Partners, L.P., a private investment firm, and its affiliates ("Eos"). In exchange for its prior interests in its lease related investments, the Company received 31,341 shares of Series A Preferred Stock (the "Series A Preferred Stock"), 4,872 shares of newly issued 8% Series B Redeemable Preferred Stock (the "Series B Preferred Stock") and 2,364 shares of newly issued Series D Redeemable Preferred Stock (the "Series D Preferred Stock"), collectively representing, on a fully-diluted basis, assuming conversion, a 26.7% interest in LCC. At the time of investment, the Company’s investment in LCC was valued at $36.3 million based on a third-party valuation. During 2013, the Company entered into a third stock purchase agreement with LCC to purchase 3,682 shares of newly issued Series A-1 Preferred Stock (the "Series A-1 Preferred Stock") for $3.7 million and 4,445 shares of newly issued Series E Preferred Stock (the "Series E Preferred Stock") for $4.4 million . The Series E Preferred Stock expired and the Company was issued additional Series A-1 Preferred Stock in exchange for its investment in the Series E Preferred Stock. The Company's fully-diluted interest in LCC, assuming conversion, was 29.0% at March 31, 2017 . 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 total investment in LCC was $43.1 million and $43.0 million at March 31, 2017 and December 31, 2016 , 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. 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 each of RCT I and 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 was amortized over the expected life of each CLO. The Company determined that it did not hold a controlling financial interest and, therefore, was not the primary beneficiary of these CLOs. The CLOs were liquidated in February 2013, January 2016, September 2016 and February 2017, respectively. The unamortized balance of the intangible asset was $0 and $213,000 at March 31, 2017 and December 31, 2016 , respectively. The Company recognized fee income of $680,000 and $402,000 for the three months ended March 31, 2017 and 2016 , respectively. During the three months ended March 31, 2017 , the Company recorded impairment of $177,000 on the related intangible asset of these CLOs. At March 31, 2017 , the Company had no remaining investment in RCAM. 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 had 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 determined not to be the primary beneficiary and, therefore, was 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 CLOs. 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 determined not to be the primary beneficiary and, therefore, was not required to consolidate the Harvest Securities. At March 31, 2017 , the Company had investments of $4.3 million in Harvest CLO VII Limited and $4.8 million in Harvest CLO VIII Limited. The Company accounts for its investments in the Harvest Securities as investment securities available-for-sale in its consolidated financial statements. Investment in Harvest CLO XV Designated Activity Company In September 2015, the Company made an investment in Harvest CLO XV Designated Activity Company ("Harvest XV"), an offshore financing vehicle created to acquire and warehouse syndicated 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 determined not to be the primary beneficiary and, therefore, was not required to consolidate Harvest CLO XV. At March 31, 2017 , the Company's investment in Harvest CLO XV is $11.1 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 March 31, 2017 (in thousands): Unconsolidated Variable Interest Entities LCC Unsecured Junior Subordinated Debentures Investment in Harvest CLOs RCM Global LLC Pelium Capital Pearlmark Mezz Total Maximum Exposure to Loss Investments in unconsolidated entities $ 43,125 $ 1,548 $ — $ 472 $ 12,201 $ 16,924 $ 74,270 $ 74,270 Investment securities, available-for-sale — — 20,211 — — — 20,211 $ 20,211 Total assets 43,125 1,548 20,211 472 12,201 16,924 94,481 Borrowings — 51,548 — — — — 51,548 N/A Total liabilities — 51,548 — — — — 51,548 N/A Net asset (liability) $ 43,125 $ (50,000 ) $ 20,211 $ 472 $ 12,201 $ 16,924 $ 42,933 N/A At March 31, 2017 , there were no explicit arrangements or implicit variable interests that could require the Company to provide financial support to any of its unconsolidated VIEs. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 3 Months Ended |
Mar. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | NOTE 4 - SUPPLEMENTAL CASH FLOW INFORMATION Supplemental disclosure of cash flow information is summarized for the periods indicated (in thousands): For the Three Months Ended March 31, 2017 2016 Non-cash continuing financing activities include the following: Distributions on common stock accrued but not paid $ 1,568 $ 13,073 Distribution on preferred stock accrued but not paid $ 4,009 $ 4,010 |
LOANS
LOANS | 3 Months Ended |
Mar. 31, 2017 | |
LOANS HELD FOR INVESTMENT [Abstract] | |
LOANS | NOTE 5 - LOANS The following is a summary of the Company’s loans (in thousands): Loan Description Principal Unamortized (Discount) Premium, net (1) Carrying Value (2) At March 31, 2017: CRE whole loans $ 1,305,765 $ (5,922 ) $ 1,299,843 Allowance for loan loss (4,689 ) — (4,689 ) Total CRE loans held for investment, net of allowance 1,301,076 (5,922 ) 1,295,154 Syndicated corporate loans 2 — 2 Total loans held for sale 2 — 2 Total loans, net (3) $ 1,301,078 $ (5,922 ) $ 1,295,156 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 (3) $ 1,293,104 $ (5,819 ) $ 1,287,285 (1) Amounts include unamortized loan origination fees of $5.8 million and $5.8 million at March 31, 2017 and December 31, 2016 , respectively. Amounts also include deferred amendment fees of $125,000 and $4,000 being amortized over the life of the loans at March 31, 2017 and December 31, 2016 , respectively. (2) Substantially all loans are pledged as collateral under various borrowings at March 31, 2017 and December 31, 2016 . (3) Pursuant to the Company's Plan, certain underperforming legacy CRE loans were moved to loans held for sale status and included in Assets held for sale on the Company's consolidated balance sheet at March 31, 2017 and December 31, 2016 ( see Note 22 ). Commercial Real Estate Loans The following is a summary of the Company's CRE loans held for investment (in thousands): Description Quantity Amortized Cost Contracted Interest Rates Maturity Dates (3) At March 31, 2017: Whole loans, floating rate (1)(4)(5) 67 $ 1,299,843 LIBOR plus 3.75% to LIBOR plus 6.25% May 2017 to April 2020 Total (2) 67 $ 1,299,843 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 (1) Whole loans had $62.4 million and $55.5 million in unfunded loan commitments at March 31, 2017 and December 31, 2016 , 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 $4.7 million and $3.8 million at March 31, 2017 and December 31, 2016 , respectively. (3) Maturity dates do not include possible extension options that may be available to borrowers. (4) Maturity dates do not include a loan with a maturity date of February 2017 that is in default ( see Note 6 ). (5) Includes one loan that matured in May 2017 that paid off subsequent to March 31, 2017 , and another loan that was subsequently extended to June 2017. The following is a summary of the maturities of the Company’s CRE loans held for investment, at amortized cost (in thousands): Description 2017 2018 2019 and Thereafter Total At March 31, 2017: Whole loans $ 20,000 $ 24,417 $ 1,255,426 $ 1,299,843 Total (1) $ 20,000 $ 24,417 $ 1,255,426 $ 1,299,843 At December 31, 2016: 2017 2018 2019 and Thereafter Total Whole loans $ 7,000 $ 24,476 $ 1,258,631 $ 1,290,107 Total (1) $ 7,000 $ 24,476 $ 1,258,631 $ 1,290,107 (1) Contractual maturities of CRE loans assumes full exercise of extension options available to borrowers, to the extent they qualify. At March 31, 2017 , approximately 30.3% , 21.4% and 8.7% of the Company's CRE loan portfolio was concentrated in Texas, California and Florida, respectively. At December 31, 2016 , approximately 30.7% , 19.2% , and 7.3% of the Company's CRE loan portfolio was concentrated in Texas, California and Georgia, respectively. Syndicated Corporate Loans On January 1, 2016, Apidos Cinco CDO was deconsolidated after adopting the amendments to the consolidation guidance on VIEs. 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 loans as of the date of liquidation. The following table provides information as to the lien position and status of the Company's syndicated corporate loans, at the lower of cost or market (in thousands): Apidos Cinco Total At March 31, 2017: Loans held for sale: Second lien loans held for sale $ 2 $ 2 Total $ 2 $ 2 At December 31, 2016: Loans held for sale: Second lien loans held for sale $ 1,007 $ 1,007 Total $ 1,007 $ 1,007 The following is a summary of the weighted average maturity of the Company’s syndicated corporate loans held for sale, at the lower of cost or market (in thousands): March 31, December 31, Less than one year $ 2 $ 221 Greater than one year and less than five years — 786 Five years or greater — — Total $ 2 $ 1,007 At March 31, 2017 , the syndicated corporate loan held for sale portfolio was concentrated in the collective industry grouping of retail stores and aerospace and defense. 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. Allowance for Loan Losses The following is a summary of the allocation of the allowance for loan losses with respect to the Company's loans by asset class (in thousands, except percentages): Description Allowance for Loan Loss Percentage of Total Allowance At March 31, 2017: CRE whole loans $ 4,689 100.00% Total $ 4,689 At December 31, 2016: CRE whole loans $ 3,829 100.00% Total $ 3,829 Principal Paydowns Receivable Principal paydowns receivable represent payments that have been received by the Company's various servicers and trustees. At March 31, 2017 , the Company had $13.9 million principal paydowns receivable, the entirety of which the Company received in cash during April 2017. At December 31, 2016 , the Company had $19.3 million of principal paydowns receivable, the entirety of which the Company received in cash during January 2017. |
FINANCING RECEIVABLES
FINANCING RECEIVABLES | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
FINANCING RECEIVABLES | 90 Days and Accruing At March 31, 2017: CRE whole loans (1) $ 7,000 $ — $ — $ 7,000 $ 1,292,843 $ 1,299,843 $ — Legacy CRE loans (2) — — 61,400 61,400 82,507 143,907 — Syndicated corporate loans — — — — — — — Direct Financing Leases — — 138 138 815 953 — Total loans $ 7,000 $ — $ 61,538 $ 68,538 $ 1,376,165 $ 1,444,703 $ — At December 31, 2016: CRE whole loans $ — $ — $ — $ — $ 1,290,107 $ 1,290,107 $ — Legacy CRE loans (2) 61,400 — — 61,400 96,792 158,192 — Syndicated corporate loans — — — — — — — Direct Financing Leases 137 — 128 265 727 992 — Total loans $ 61,537 $ — $ 128 $ 61,665 $ 1,387,626 $ 1,449,291 $ — (1) Includes one whole loan with an amortized cost of $7.0 million that was in default at March 31, 2017 , on which the Company recorded a $2.5 million provision for loan loss. (2) Includes two loans with an appraised value of $61.4 million that were in default at March 31, 2017 and December 31, 2016 , respectively. Impaired Loans The following tables show impaired loans as of the dates indicated (in thousands): Recorded Balance Unpaid Principal Balance Specific Allowance Average Investment in Impaired Loans Interest Income Recognized At March 31, 2017: Loans without a specific valuation allowance: CRE whole loans $ — $ — $ — $ — $ — Syndicated corporate loans $ — $ — $ — $ — $ — Loans with a specific valuation allowance: CRE whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ — Syndicated corporate loans $ — $ — $ — $ — $ — Total: CRE whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ — Syndicated corporate loans — — — — — $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ — At December 31, 2016: Loans without a specific valuation allowance: CRE whole loans $ — $ — $ — $ — $ — Syndicated corporate loans $ — $ — $ — $ — $ — Loans with a specific valuation allowance: CRE whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ 480 Syndicated corporate loans $ — $ — $ — $ — $ — Total: CRE whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ 480 Syndicated corporate loans — — — — — $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ 480 Troubled-Debt Restructurings ("TDR") 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 Three Months Ended March 31, 2017 Legacy CRE whole loans held for sale (1) 2 $ 61,400 $ 61,400 Total loans 2 $ 61,400 $ 61,400 Number of Loans Pre-Modification Outstanding Recorded Balance Post-Modification Outstanding Recorded Balance Three Months Ended March 31, 2016 CRE whole loans 3 $ 29,459 $ 29,459 Total loans 3 $ 29,459 $ 29,459 (1) Legacy CRE whole loans held for sale represent CRE whole loans designated as assets held for sale at March 31, 2017 . At March 31, 2017 , there were two legacy CRE loans that were modified in the last twelve months that experienced subsequent payment defaults. The two loans are cross-collateralized by a property in Studio City, CA. As of March 31, 2017 , the loans had a collective carrying value, which was the lower of cost or fair market value, of $61.4 million . An appraisal obtained in the fourth quarter of 2016 was used to determine the fair value of the loan as a practical expedient. The appraisal indicated an as-is-value of $61.4 million ." id="sjs-B4">NOTE 6 - 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 March 31, 2017: Allowance for loan and lease losses: Allowance for loan and lease losses at January 1, 2017 $ 3,829 $ — $ 465 $ 4,294 Provision (recovery) for loan and lease losses 860 — 139 999 Allowance for loan and lease losses at March 31, 2017 $ 4,689 $ — $ 604 $ 5,293 Ending balance: Individually evaluated for impairment $ 2,500 $ — $ 604 $ 3,104 Collectively evaluated for impairment $ 2,189 $ — $ — $ 2,189 Loans acquired with deteriorated credit quality $ — $ — $ — $ — Loans and Leases: Ending balance: Individually evaluated for impairment $ 7,000 $ — $ 953 $ 7,953 Collectively evaluated for impairment $ 1,292,843 $ — $ — $ 1,292,843 Loans acquired with deteriorated credit quality $ — $ — $ — $ — At December 31, 2016: Allowance for loan and lease losses: Allowance for loan and lease 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 loan and lease 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 $ — $ — $ — $ — Credit quality indicators Commercial Real Estate Loans Loans are graded at inception and updated 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. CRE 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 CRE loans at amortized cost were as follows (in thousands): Rating 1 Rating 2 Rating 3 Rating 4 Held for Sale Total At March 31, 2017: CRE whole loans (1) $ 1,259,153 $ 33,690 $ — $ 7,000 $ — $ 1,299,843 Legacy CRE whole loans (1)(2) — — — — 143,907 143,907 $ 1,259,153 $ 33,690 $ — $ 7,000 $ 143,907 $ 1,443,750 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 $ 1,186,292 $ 96,815 $ — $ 7,000 $ 158,178 $ 1,448,285 (1) Pursuant to 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 the lower of cost or market ("LCOM") on the Company's consolidated balance sheet at March 31, 2017 and December 31, 2016 , respectively ( see Note 22 ). (2) Includes one loan with a maturity date of May 2017 which subsequently defaulted. At March 31, 2017 and 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 is collateralized by a retail shopping center in Roswell, GA and had an amortized cost of $7.0 million at March 31, 2017 and December 31, 2016 . For the period ended December 31, 2016 , 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 and the Company recorded a specific provision of $2.5 million on the loan during the fourth quarter of 2016. No additional provision was recorded on the loan for the three-month period ended March 31, 2017 . This loan had a maturity date of February 2017 and was default at March 31, 2017 . 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 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 exceeded 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 . The loans have a maturity date of February 2017 and are in default at March 31, 2017 ; • 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 entered into a discounted payoff agreement with its borrower and received proceeds of $21.3 million in satisfaction of this loan. This transaction resulted in the recognition of a realized gain of $7.0 million in the Company's consolidated statements of operations as net realized and unrealized gain (loss) on sales of investment securities available for sale and loans and derivatives; • 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 . The loan has a maturity date of May 2017 and subsequently defaulted; • 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. As a result of the discounted payoff agreement discussed above on the Tuscon, AZ property, four of the five aforementioned legacy CRE loans remain at March 31, 2017 and have a collective carrying value of $96.4 million . At March 31, 2017 , 49% , 43% and 8% of the Company's legacy CRE whole loans were concentrated in hotel, retail and office, respectively. Of these loans, 92% are within California and 8% are within Arizona. At December 31, 2016 , 54% , 39% and 7% of the Company's legacy CRE whole loans were concentrated in hotel, retail and office, respectively. Of these loans, 84% are within California and 16% are within Arizona. Three loans held for sale with a collective carrying value of $47.5 million at March 31, 2017 and December 31, 2016 had fair values in excess of their carrying values. Before being transferred to assets held for sale in the fourth quarter of 2016, these loans were risked-rated in category 1 or category 2. All of the Company's CRE whole loans are current with respect to contractual principal and interest except three loans at March 31, 2017 . Two defaulted loans are cross-collateralized by a property in Studio City, CA and had a collective carrying value, which is the lower of its cost or fair market value, of $61.4 million at March 31, 2017 . The other defaulted loan is supported by a property in Roswell, GA and had a carrying value of $4.5 million at March 31, 2017 . All of the Company's CRE whole loans were current with respect to contractual principal and interest except two of the Company's legacy CRE whole loans at December 31, 2016 . The two loans are cross-collateralized by a property in Studio City, CA. The loans had a collective carrying value, which was the lower of its cost or fair market value, of $61.4 million at December 31, 2016 . Syndicated Corporate Loans Loans are graded at inception and updated 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 were as follows (in thousands): Rating 1 Rating 2 Rating 3 Rating 4 Rating 5 Held for Sale Total At March 31, 2017: Syndicated corporate loans $ — $ — $ — $ — $ — $ 2 $ 2 At December 31, 2016: Syndicated corporate loans $ — $ — $ — $ — $ — $ 1,007 $ 1,007 At March 31, 2017 , two of the Company's syndicated corporate loans with a fair value of $2,000 are in default with respect to debt service. At December 31, 2016 , two of the Company's syndicated corporate loans with a fair value of $221,000 were in default with respect to debt service. In 2017 and 2016 , no interest income had been recorded on these two defaulted loans. During the three months ended March 31, 2017 , the Company sold one syndicated corporate loan classified as held for sale with an amortized cost of $785,800 for proceeds of $877,800 . Direct Financing Leases During the three months ended March 31, 2017 , the Company recorded a provision for lease loss against the value of the direct financing leases in the amount of $139,000 . At March 31, 2017 , the Company held $349,000 of direct financing leases, net of reserves. 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 Loans > 90 Days and Accruing At March 31, 2017: CRE whole loans (1) $ 7,000 $ — $ — $ 7,000 $ 1,292,843 $ 1,299,843 $ — Legacy CRE loans (2) — — 61,400 61,400 82,507 143,907 — Syndicated corporate loans — — — — — — — Direct Financing Leases — — 138 138 815 953 — Total loans $ 7,000 $ — $ 61,538 $ 68,538 $ 1,376,165 $ 1,444,703 $ — At December 31, 2016: CRE whole loans $ — $ — $ — $ — $ 1,290,107 $ 1,290,107 $ — Legacy CRE loans (2) 61,400 — — 61,400 96,792 158,192 — Syndicated corporate loans — — — — — — — Direct Financing Leases 137 — 128 265 727 992 — Total loans $ 61,537 $ — $ 128 $ 61,665 $ 1,387,626 $ 1,449,291 $ — (1) Includes one whole loan with an amortized cost of $7.0 million that was in default at March 31, 2017 , on which the Company recorded a $2.5 million provision for loan loss. (2) Includes two loans with an appraised value of $61.4 million that were in default at March 31, 2017 and December 31, 2016 , respectively. Impaired Loans The following tables show impaired loans as of the dates indicated (in thousands): Recorded Balance Unpaid Principal Balance Specific Allowance Average Investment in Impaired Loans Interest Income Recognized At March 31, 2017: Loans without a specific valuation allowance: CRE whole loans $ — $ — $ — $ — $ — Syndicated corporate loans $ — $ — $ — $ — $ — Loans with a specific valuation allowance: CRE whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ — Syndicated corporate loans $ — $ — $ — $ — $ — Total: CRE whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ — Syndicated corporate loans — — — — — $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ — At December 31, 2016: Loans without a specific valuation allowance: CRE whole loans $ — $ — $ — $ — $ — Syndicated corporate loans $ — $ — $ — $ — $ — Loans with a specific valuation allowance: CRE whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ 480 Syndicated corporate loans $ — $ — $ — $ — $ — Total: CRE whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ 480 Syndicated corporate loans — — — — — $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ 480 Troubled-Debt Restructurings ("TDR") 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 Three Months Ended March 31, 2017 Legacy CRE whole loans held for sale (1) 2 $ 61,400 $ 61,400 Total loans 2 $ 61,400 $ 61,400 Number of Loans Pre-Modification Outstanding Recorded Balance Post-Modification Outstanding Recorded Balance Three Months Ended March 31, 2016 CRE whole loans 3 $ 29,459 $ 29,459 Total loans 3 $ 29,459 $ 29,459 (1) Legacy CRE whole loans held for sale represent CRE whole loans designated as assets held for sale at March 31, 2017 . At March 31, 2017 , there were two legacy CRE loans that were modified in the last twelve months that experienced subsequent payment defaults. The two loans are cross-collateralized by a property in Studio City, CA. As of March 31, 2017 , the loans had a collective carrying value, which was the lower of cost or fair market value, of $61.4 million . An appraisal obtained in the fourth quarter of 2016 was used to determine the fair value of the loan as a practical expedient. The appraisal indicated an as-is-value of $61.4 million . |
INVESTMENT SECURITIES, TRADING
INVESTMENT SECURITIES, TRADING | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES, TRADING | NOTE 7 - INVESTMENT SECURITIES, TRADING Structured notes are CLO debt securities collateralized by syndicated corporate loans. The following table summarizes the Company's structured notes classified as investment securities, trading and carried at fair value (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value At March 31, 2017: Structured notes $ 2,891 $ — $ (2,670 ) $ 221 Total $ 2,891 $ — $ (2,670 ) $ 221 At December 31, 2016: Structured notes $ 6,242 $ 920 $ (2,670 ) $ 4,492 Total $ 6,242 $ 920 $ (2,670 ) $ 4,492 The Company sold one investment security for a realized gain of $9,000 during the three months ended March 31, 2017 . The Company sold no investment securities during the three months ended March 31, 2016 . The Company held five and six investment securities, trading at March 31, 2017 and December 31, 2016 , respectively. |
INVESTMENT SECURITIES AVAILABLE
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | 3 Months Ended |
Mar. 31, 2017 | |
Available-for-sale Securities [Abstract] | |
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | NOTE 8 - 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 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 March 31, 2017: ABS $ 21,374 $ 4,161 $ (90 ) $ 25,445 CMBS 91,990 556 (956 ) 91,590 RMBS 1,436 88 (28 ) 1,496 Total $ 114,800 $ 4,805 $ (1,074 ) $ 118,531 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 (1) At March 31, 2017 and December 31, 2016 , $91.1 million and $97.5 million , respectively, of investment securities available-for-sale were pledged as collateral under related financings. The following table summarizes the estimated maturities of the Company’s CMBS, RMBS and ABS according to their estimated weighted average life classifications (in thousands, except percentages): Weighted Average Life Amortized Cost Fair Value Weighted Average Coupon At March 31, 2017: Less than one year (1) $ 80,791 $ 80,119 5.48% Greater than one year and less than five years 10,684 11,169 4.91% Greater than five years and less than ten years 23,325 27,243 11.13% Total $ 114,800 $ 118,531 6.57% 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% (1) The Company expects that the maturity dates of these CMBS and ABS will either be extended or that they will be paid in full. At March 31, 2017 , 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 contractual maturities of the ABS investment securities available-for-sale range from May 2018 to April 2031 . 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 Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities At March 31, 2017: ABS $ 1,176 $ (90 ) 1 $ — $ — — $ 1,176 $ (90 ) 1 CMBS 19,950 (275 ) 8 20,799 (680 ) 12 40,749 (955 ) 20 RMBS 812 (28 ) 2 — — — 812 (28 ) 2 Total temporarily impaired securities $ 21,938 $ (393 ) 11 $ 20,799 $ (680 ) 12 $ 42,737 $ (1,073 ) 23 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 impaired securities $ 31,531 $ (438 ) 11 $ 27,444 $ (500 ) 16 $ 58,975 $ (938 ) 27 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 three months ended March 31, 2017 , the Company recognized no other-than-temporary impairment on its investment securities available-for-sale. During the three months ended March 31, 2016 , the Company recognized no other-than-temporary impairment on its investment securities available-for-sale. There were no sales or redemptions during the three months ended March 31, 2017 and March 31, 2016 . |
INVESTMENTS IN UNCONSOLIDATED E
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | NOTE 9 - INVESTMENTS IN UNCONSOLIDATED ENTITIES The following table shows the Company's investments in unconsolidated entities at March 31, 2017 and December 31, 2016 and equity in earnings of unconsolidated entities for the three months ended March 31, 2017 and 2016 (in thousands): Equity in Earnings of Unconsolidated Entities Balance at For the For the Ownership % at March 31, 2017 March 31, December 31, March 31, March 31, RRE VIP Borrower, LLC (1) —% $ — $ — $ — $ 25 Investment in LCC Preferred Stock 29.0% 43,125 42,960 165 1,411 Pearlmark Mezz (2) 47.7% 16,925 16,953 358 248 RCM Global, LLC 21.6% 472 465 (4 ) 177 Pelium Capital Partners, L.P. (3) 80.2% 12,201 25,993 (158 ) 361 Subtotal 72,723 86,371 361 2,222 Investment in RCT I and II (4) 3.0% 1,548 1,548 (637 ) (641 ) Total $ 74,271 $ 87,919 $ (276 ) $ 1,581 (1) The investment in RRE VIP Borrower was sold at December 31, 2014. Earnings for the three months ended March 31, 2016 are related to insurance premium refunds with respect to the underlying sold properties in the portfolio. (2) The Company has committed to invest up to $50.0 million in Pearlmark Mezz. The commitment termination date ends the earlier of when the original commitment is fully funded, or the fifth anniversary following the final closing date of June 24, 2015. (3) For the three months ended March 31, 2017 , the Company received proceeds of $13.6 million related to the partial liquidation of its investment. (4) For the three months ended March 31, 2017 and 2016 , these amounts are recorded in interest expense on the Company's consolidated statements of operations. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 10 - INTANGIBLE ASSETS The following table summarizes the activity of intangible assets for the period indicated (in thousands): Management Contracts Balance, January 1, 2017 $ 213 Additions — Sales — Amortization (36 ) Total before impairment losses 177 Impairment losses (177 ) Balance, March 31, 2017 $ — Management Contracts The Company recognized fee income on management contracts of $680,000 and $402,000 for the three months ended March 31, 2017 and March 31, 2016 , respectively. The Company recorded amortization expense of $36,000 and $474,000 related to the Company's management contracts for the three months ended March 31, 2017 and March 31, 2016 , respectively. In March 2017, the remaining CLO associated with the management contracts was called. Using a discounted cash flow analysis, the carrying amount of the management contract was deemed to be unrecoverable and in excess of its fair value. As a result of this analysis, an impairment loss of $177,000 was recognized on the Company’s consolidated statements of operations and is included in the commercial finance segment for the three months ended March 31, 2017 . The Company does not hold any intangible assets at March 31, 2017 , and will not record any amortization expense related to these intangible assets going forward. |
BORROWINGS
BORROWINGS | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
BORROWINGS | NOTE 11 - 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 and trust preferred securities issuances. Certain information with respect to the Company’s borrowings is summarized in the following table (in thousands, except percentages): Principal Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Weighted Average Value of At March 31, 2017: RCC 2014-CRE2 Senior Notes $ 82,936 $ 1,102 $ 81,834 2.67% 15.1 years $ 201,255 RCC 2015-CRE3 Senior Notes 183,613 2,108 181,505 3.11% 15.0 years 247,389 RCC 2015-CRE4 Senior Notes 119,433 1,604 117,829 2.93% 15.4 years 208,373 Unsecured Junior Subordinated Debentures 51,548 — 51,548 5.05% 19.6 years — 6.0% Convertible Senior Notes 115,000 2,813 112,187 6.00% 1.7 years — 8.0% Convertible Senior Notes 100,000 3,188 96,812 8.00% 2.8 years — CRE - Term Repurchase Facilities (1) 437,338 2,269 435,069 3.28% 1.4 years 643,258 CMBS - Term Repurchase Facilities (2) 73,998 6 73,992 2.90% 143 days 108,808 Trust Certificates - Term Repurchase Facility (3) 26,664 245 26,419 6.44% 1.6 years 89,181 Total $ 1,190,530 $ 13,335 $ 1,177,195 3.96% 6.7 years $ 1,498,264 Principal Unamortized Issuance Costs and Discounts 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 (1) 349,318 2,680 346,638 3.04% 1.6 years 520,503 CMBS - Term Repurchase Facilities (2) 78,503 16 78,487 2.73% 129 days 115,157 Trust Certificates - Term Repurchase Facility (3) 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 (1) Amounts also include accrued interest expense of $552,000 and $468,000 related to CRE term repurchase facilities at March 31, 2017 and December 31, 2016 , respectively. (2) Amounts also include accrued interest expense of $133,000 and $157,000 related to CMBS term repurchase facilities at March 31, 2017 and December 31, 2016 , respectively. (3) Amounts also include accrued interest expense of $67,000 and $69,000 related to the trust certificates term repurchase facility at March 31, 2017 and December 31, 2016 , respectively. The Company is in compliance with all covenants in each of the respective agreements at March 31, 2017 . Securitizations The following table sets forth certain information with respect to the Company's consolidated securitizations at March 31, 2017 : Securitization Closing Date Maturity Date End of Designated Principal Reinvestment Period (1) Total Note Paydowns at March 31, 2017 (in millions) RCC 2014-CRE2 July 2014 April 2032 July 2016 $ 152.4 RCC 2015-CRE3 February 2015 March 2032 February 2017 $ 98.5 RCC 2015-CRE4 August 2015 August 2032 August 2017 $ 104.3 (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 March 31, 2017 eliminate in consolidation. Repurchase and Credit Facilities Borrowings under the Company's repurchase agreements were guaranteed by the Company or one of its subsidiaries. The following table sets forth certain information with respect to the Company's borrowings (in thousands, except percentages): At March 31, 2017 At December 31, 2016 Outstanding Value of Number of Weighted Average Outstanding Value of Number of Weighted Average CMBS - Term Wells Fargo Bank $ 21,092 $ 26,868 12 2.20% $ 22,506 $ 28,514 13 1.96% Deutsche Bank (1) 52,900 81,940 22 3.18% 55,981 86,643 23 3.04% CRE - Term Wells Fargo Bank (2) 271,435 390,184 19 3.11% 215,283 313,126 16 2.86% Morgan Stanley Bank (3) 163,634 253,074 13 3.55% 131,355 207,377 11 3.34% Trust Certificates Term Repurchase Facility RSO Repo SPE Trust 2015 (4) 26,419 89,181 1 6.44% 26,385 89,181 1 6.21% Totals $ 535,480 $ 841,247 $ 451,510 $ 724,841 (1) The Deutsche Bank CMBS term repurchase facility includes $7,000 and $16,000 of deferred debt issuance costs at March 31, 2017 and December 31, 2016 , respectively. (2) The Wells Fargo Bank CRE term repurchase facility includes $1.3 million and $1.6 million of deferred debt issuance costs at March 31, 2017 and December 31, 2016 , respectively. (3) The Morgan Stanley Bank CRE term repurchase facility includes $935,000 and $1.1 million of deferred debt issuance costs at March 31, 2017 and December 31, 2016 , respectively. (4) The RSO Repo SPE Trust 2015 term repurchase facility includes $245,000 and $282,000 of deferred debt issuance costs at March 31, 2017 and December 31, 2016 , 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 March 31, 2017: CMBS - Term Repurchase Facilities Wells Fargo Bank, National Association $ 5,823 1.0 year 2.20% Deutsche Bank AG $ 29,340 55 days 3.18% CRE - Term Repurchase Facilities Wells Fargo Bank, National Association $ 118,792 1.3 years 3.11% Morgan Stanley Bank, National Association $ 89,448 1.4 years 3.55% Trust Certificates Term Repurchase Facility RSO Repo SPE Trust 2015 $ 62,575 1.6 years 6.44% 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% (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, entered into a master repurchase and securities contract (the "2011 Facility") with Wells Fargo. In February 2011, the Company entered into a guaranty agreement, amended and restated in June 2013, (the "2011 Guaranty") with Wells Fargo. In January 2017 , the Company entered into a fifth amendment of the 2011 Facility which extended the maturity date to February 2017 . In February 2017 , the Company entered into a sixth amendment of the 2011 Facility which extended the maturity date to March 2017 . In March 2017 , the Company entered into a seventh amendment of the 2011 Facility which extended the maturity date to March 2018 and amended the 2011 Guaranty's required capital amount and EBITDA to interest expense ratio covenants, effective December 31, 2016 . CRE - Term Repurchase Facilities In February 2012, RCC Real Estate's wholly-owned subsidiary, RCC Real Estate SPE 4, LLC, entered into a master repurchase and securities agreement (the "2012 Facility") with Wells Fargo to finance the origination of CRE loans. In February 2012, the Company entered into a guaranty agreement with Wells Fargo. In March 2017 , the Company entered into a sixth amendment of the 2012 Facility which amended the required capital amount and EBITDA to interest expense ratio covenants, effective December 31, 2016 . In September 2015, RCC Real Estate's wholly-owned subsidiary, RCC Real Estate SPE 6, LLC, entered into a master repurchase and securities agreement (the "Morgan Stanley Facility") with Morgan Stanley Bank, NA ("Morgan Stanley") to finance the origination of CRE loans. In September 2015, the Company entered into a guaranty agreement (the "Morgan Stanley Guaranty") with Morgan Stanley. In March 2017 , the Company entered into the first amendment of the Morgan Stanley Guaranty which amended the required capital amount and EBITDA to interest expense ratio covenants, effective December 31, 2016 . Short-Term Repurchase Agreements - CMBS In November 2012, RCC Real Estate entered into a master repurchase and securities agreement (the "JP Morgan Securities Facility") with JP Morgan Securities LLC to finance the purchase of CMBS. In April 2017 , the Company entered into the first amendment of the JP Morgan Securities Facility which amended the minimum shareholders' equity of the guarantor and maximum leverage ratio covenants. The Company had no outstanding borrowings payable under the JP Morgan Securities Facility at March 31, 2017 and December 31, 2016 . 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 $ 381,168 $ — $ — $ — $ — $ 381,168 Repurchase Facilities 535,480 52,900 482,580 — — — Unsecured Junior Subordinated Debentures 51,548 — — — — 51,548 6.0 % Convertible Senior Notes 112,187 — 112,187 — — — 8.0 % Convertible Senior Notes 96,812 — — — 96,812 — Total $ 1,177,195 $ 52,900 $ 594,767 $ — $ 96,812 $ 432,716 |
SHARE ISSUANCE AND REPURCHASE
SHARE ISSUANCE AND REPURCHASE | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
SHARE ISSUANCE AND REPURCHASE | NOTE 12 - SHARE ISSUANCE AND REPURCHASE 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 three months ended March 31, 2017 , the Company did not sell any shares of common stock through this program. 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. In March 2016, the Company's board of directors approved a new securities repurchase program for up to $50.0 million of its outstanding securities, which replaced the August 2015 repurchase plan. Since the inception of the program through December 31, 2016, the Company repurchased $35.2 million of its common stock, representing approximately 2.8 million shares, or 8.3% of the outstanding balance and $3.1 million of its outstanding Series B preferred stock, representing approximately 196,000 shares, or 3.4% of the initial outstanding balance. During the three months ended March 31, 2017 , the Company did not repurchase any shares of its common or preferred stock through this program. At March 31, 2017 , $44.9 million remains available in this repurchase plan. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 13 - 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, 2017 27,320 301,486 71,244 400,050 Issued 26,991 321,789 12,019 360,799 Vested (20,491 ) (108,859 ) (29,779 ) (159,129 ) Forfeited — (7,886 ) (1,412 ) (9,298 ) Unvested shares at March 31, 2017 33,820 506,530 52,072 592,422 (1) Non-employees are employees of Resource America and C-III. 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 three months ended March 31, 2017 and 2016 was $2.7 million and $2.3 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 three months ended March 31, 2017 was $220,000 . The estimated fair value at grant date of unvested shares of restricted common stock issued to the Company’s seven non-employee directors during the three months ended March 31, 2016 was $220,000 . The Company records any unvested shares of restricted common stock granted to non-employee directors at the fair value on the grant date amortized over the service period. The amortization recognized during the three months ended March 31, 2017 and 2016 was $73,000 and $64,000 , respectively. At March 31, 2017 , the total unrecognized restricted common stock expense for non-employees was $3.4 million , with a weighted average amortization period remaining of 2.7 years . 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 three months ended March 31, 2017 : Date Shares Vesting/Year Vesting Date(s) January 25, 2017 321,789 33.3% 1/25/18, 1/25/19, 1/25/20 February 1, 2017 4,242 100% 2/1/18 March 8, 2017 18,450 100% 3/8/18 March 13, 2017 4,299 100% 3/13/18 The following table summarizes the status of the Company’s vested stock options at March 31, 2017 : 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, 2017 26,250 $ 46.60 Vested — — Exercised — — Forfeited — — Expired (1,250 ) 73.48 Vested at March 31, 2017 25,000 $ 46.60 1.80 $ — There were no options granted during the three months ended March 31, 2017 or 2016 . 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): For the Three Months Ended March 31, 2017 2016 Restricted shares granted to non-employees (1) $ 715 $ 425 Restricted shares granted to non-employee directors 73 64 Total equity compensation expense (2) $ 788 $ 489 (1) Non-employees are employees of Resource America and C-III. (2) 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 three months ended March 31, 2017 and 2016 . Apart from incentive compensation payable under the Management Agreement, the Company has established no formal criteria for the issuance of equity awards at March 31, 2017 . 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 | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 14 - EARNINGS PER SHARE The following table presents a reconciliation of basic and diluted earnings per share for the periods presented as follows (in thousands, except share and per share amounts): For the Three Months Ended March 31, 2017 2016 Net income (loss) from continuing operations $ 9,174 $ 8,852 Net (income) loss allocated to preferred shares (6,014 ) (6,048 ) Carrying value in excess of consideration paid for preferred shares — 1,611 Net (income) loss allocable to non-controlling interest, net of taxes 101 90 Net income (loss) allocable to common shares 3,261 4,505 Net income (loss) from discontinued operations, net of tax (561 ) 5,168 Net income (loss) allocable to common shares $ 2,700 $ 9,673 Basic: Weighted average number of shares outstanding 30,752,006 30,600,407 Continuing operations $ 0.11 $ 0.12 Discontinued operations (0.02 ) 0.20 Basic net income (loss) per share $ 0.09 $ 0.32 Diluted: Weighted average number of shares outstanding 30,752,006 30,600,407 Additional shares due to assumed conversion of dilutive instruments 162,142 437,688 Adjusted weighted-average number of common shares outstanding 30,914,148 31,038,095 Continuing operations $ 0.11 $ 0.12 Discontinued operations (0.02 ) 0.19 Diluted net income (loss) per share $ 0.09 $ 0.31 Potentially dilutive shares consisting of 9,002,864 shares issuable in connection with the potential conversion of the Company's 6.0% and 8.0% Convertible Senior Notes ( see Note 11 ) for the three months ended March 31, 2017 and March 31, 2016 were not included in the calculation of diluted net income (loss) per share because the effect would be anti-dilutive. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 15 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents the changes in each component of accumulated other comprehensive income (loss) for the three months ended March 31, 2017 (dollars in thousands): Net unrealized (loss) gain on derivatives Net unrealized (loss) gain on securities, Accumulated other comprehensive income (loss) Balance, January 1, 2017 $ (18 ) $ 3,099 $ 3,081 Other comprehensive gain (loss) before reclassifications — 133 133 Amounts reclassified from accumulated other 18 — 18 Balance, March 31, 2017 $ — $ 3,232 $ 3,232 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 16 - RELATED PARTY TRANSACTIONS Relationship with Resource America and Certain of its Subsidiaries Relationship with C-III, Resource America and Certain of their Subsidiaries. On September 8, 2016, Resource America was acquired by C-III, a leading CRE investment management and services company engaged in a broad range of activities, including primary and special loan servicing, loan origination, fund management, CDO management, principal investment, zoning due diligence, investment sales and multifamily property management. As part of the transaction, C-III took over control of the Company's Manager and became the beneficial owner of 715,396 shares of the Company's common stock ( 2.3% of the Company's outstanding common shares) through its indirect ownership of the Company's Manager and Resource Capital Investor, Inc. C-III is indirectly controlled and partially owned by Island Capital Group ("Island Capital"), of which Mr. Farkas, Chairman of the Company, is the managing member. Mr. Farkas is also chairman and chief executive officer of C-III and chief executive officer and president of Resource America. In addition, Robert C. Lieber, the Company's Chief Executive Officer and President, is an executive managing director of both C-III and Island Capital. Jeffrey P. Cohen, who is a member of the Company’s Board, is an executive managing director of C-III, president of Island Capital and a director and executive vice president of Resource America. The Company's other executive officers are also officers of the Company's Manager and/or of Resource America or C-III. The Company has entered into a management agreement under which the Company's Manager receives substantial fees. On May 22, 2016, the Company entered into a letter agreement with Resource America 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 acquisition of Resource America by C-III. Upon consummation of that acquisition, Resource America paid a $1.5 million fee to us for the waiver. For the three months ended March 31, 2017 , the Manager earned base management fees of approximately $2.6 million (net of rebates). For the three months ended March 31, 2016 , the Manager earned base management fees of approximately $3.9 million (net of rebates). No incentive management fees were earned for the three months ended March 31, 2017 or 2016 . The Company reimburses the Manager and Resource America for expenses and the costs of employees of Resource America who perform legal, accounting, due diligence and other services that outside professionals or consultants would otherwise perform. The management agreement, as amended, also provides that the Manager must furnish us with a director of investor relations. The Company bears the expense of the compensation and benefits of the Company's Chief Financial Officer, Chief Accounting Officer and several accounting and tax professionals and 50% of the salary and benefits of the investor relations officer. Until September 8, 2016, the Company also reimbursed Resource America for the compensation and benefits of the Chairman. For the three months ended March 31, 2017 , the Company reimbursed the Manager $1.8 million for all such compensation and costs. For the three months ended March 31, 2016 , the Company paid the Manager $1.0 million for all such compensation and costs. On November 7, 2013, the Company entered into an amendment to the management agreement to include the definition of an "Ancillary Operating Subsidiary," which means one or more subsidiaries, including a TRS and its subsidiaries, that are operating entities principally engaged in the evaluation, underwriting, origination, servicing, holding, trading and financing of loans, securities, investments and credit products other than CRE loans. An Ancillary Operating Subsidiary may, with the approval of a majority of the independent directors, directly incur and pay all of its own operating costs and expenses, including without limitation, compensation of employees of such Ancillary Operating Subsidiary and reimbursement of any compensation costs incurred by the Manager for personnel principally devoted to such Ancillary Operating Subsidiary. On November 24, 2010, the Company entered into an Investment Management Agreement with Resource Capital Markets, Inc., ("RCM"), which is 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 for RCM to invest. The management fee is 20% of the amount by which the net profits exceed the preferred return. During the three months ended March 31, 2017 and 2016 , RCM earned no management fees. The Company holds $221,000 in fair market value of trading securities at March 31, 2017 , a $3.9 million change from $4.1 million at fair market value at December 31, 2016 . The Company also reimburses RCM for expenses paid on the Company's behalf. For the three months ended March 31, 2017 , the Company paid RCM $0 as expense reimbursements. For the three months ended March 31, 2016 , the Company paid RCM $8,000 as expense reimbursements. At March 31, 2017 , the Company was indebted to the Manager for $1.5 million , comprised of base management fees of $1.4 million and expense reimbursements of $47,000 . 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 . At March 31, 2017 and December 31, 2016 the Company was also indebted to the Manager for an oversight fee of $62,000 and $138,000 , which was recorded in liabilities held for sale. At March 31, 2017 , the Company was indebted to RCM under the Company’s Investment Management Agreement for $96,000 , comprised entirely of expense reimbursements. 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. 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. 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 a €12.5 million investment in Harvest CLO XV, a European CLO vehicle with a total par value of €413.0 million managed by an unrelated third-party collateral manager. In connection with this transaction, a subsidiary of Resource America received a $2.3 million structuring and placement fee. At March 31, 2017 , the Company retained equity in six securitizations, which were structured for the Company by the Manager, although two of the securitizations were substantially liquidated in 2014 and 2015. Under the Management Agreement, the Manager was not separately compensated by the Company for executing these transactions and is not separately compensated for managing the securitization entities and their assets. Relationship with LEAF Commercial Capital. Leaf Commercial Capital ("LCC"), a former subsidiary of Resource America in which the Company owned a minority interest, 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, which is a subsidiary of Resource America, and of which a LEAF Financial subsidiary is the general partner), pursuant to which the Company provided 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. 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 TDR under applicable accounting guidance. On February 15, 2012, the credit facility was further amended to extend the maturity to February 15, 2013 with a 1% extension fee accrued and added to the amount outstanding. On January 11, 2013, the Company entered into another amendment to extend the maturity to February 15, 2014 with an additional 1% extension fee accrued and added to the amount outstanding. On December 17, 2013, the Company entered into another amendment to extend the maturity to February 15, 2015. During the year ended December 31, 2014, the Company recorded a provision of $1.3 million against this loan before extinguishing the loan and bringing direct financing leases in the amount of $2.1 million on the Company's balance sheet in satisfaction of the loan receivable. During the three months ended March 31, 2017 , there was a provision of lease loss of $139,000 recorded against the value of the direct financing leases. There was no provision for lease loss recorded during the three months ended March 31, 2016 . At March 31, 2017 and December 31, 2016 , the Company held $349,000 and $527,000 of direct financing leases, net of reserves. On November 16, 2011, the Company, together with LEAF Financial and LCC, entered into a securities purchase agreement with Eos Partners, L.P., a private investment firm, and its affiliates ( see Note 3 ). The Company’s resulting interest is accounted for under the equity method and recorded in equity in earnings of unconsolidated entities on the consolidated statements of operations. For the three months ended March 31, 2017 and 2016, the Company recorded income of $165,000 and $1.4 million , respectively, in respect of the Company's equity interests in LCC. The Company’s total investment in LCC was $43.1 million and $43.0 million at March 31, 2017 and December 31, 2016 , respectively. Relationship with CVC Credit Partners. On April 17, 2012, Apidos Capital Management ("ACM"), a former subsidiary of Resource America, was sold to CVC Credit Partners, LLC ("CVC Credit Partners"), a joint venture entity in which Resource America owns a 24% interest. CVC Credit Partners manages internally and externally originated syndicated corporate loans on the Company’s behalf. On February 24, 2011, one of the Company's subsidiaries 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 Resource Capital Asset Management ("RCAM"). Through RCAM, the Company was entitled to collect senior, subordinated and incentive fees related to five CLOs holding approximately $1.9 billion in assets managed by RCAM. RCAM is assisted by CVC Credit Partners in managing these CLOs. CVC Credit Partners is entitled to 10% of all subordinated fees and 50% of the incentive fees received by RCAM. For the three months ended March 31, 2017 , CVC Credit Partners earned subordinated and incentive fees totaling $567,000 . For the three months ended March 31, 2016 , CVC Credit Partners earned subordinated and incentive fees totaling $109,000 . In October 2012, the Company purchased 66.6% of the preferred equity in one of the RCAM-managed CLOs. In May 2013, the Company purchased additional equity in this CLO, increasing its ownership percentage to 68.3% . The CLOs were liquidated in February 2013, January 2016, September 2016 and February 2017, respectively. The unamortized balance of the intangible asset was $0 and $213,000 at March 31, 2017 and December 31, 2016 , respectively. During the three months ended March 31, 2017 and 2016 , the Company recorded impairment of $177,000 and $0 on the related intangible asset of these CLOs. At March 31, 2017 , the Company had no remaining investment in RCAM. Relationship with Long Term Care Conversion Funding. 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 investing in life settlement contracts. The initial agreement, authorized in December 2012, provided for an annual reimbursement 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 annual reimbursement of $250,000 . This fee is paid quarterly. Relationship with Resource Real Estate. Resource Real Estate, a subsidiary of Resource America, originates, finances and manages the Company’s CRE loan portfolio. The Company reimburses Resource Real Estate for loan origination costs associated with all loans originated. The Company also reimburses 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 compensation and benefits of several Resource America personnel dedicated to the Company's operations. At March 31, 2017 and December 31, 2016 , the Company was indebted to Resource Real Estate for $316,000 and $899,000 for expense reimbursements and Resource Real Estate was indebted to the Company for $54,000 and $50,000 for a loan deposit, respectively. On December 1, 2009, the Company purchased a membership interest in RRE VIP Borrower, LLC (an unconsolidated VIE that held an interest in a real estate joint venture) from Resource America for $2.1 million , its book value. Resource Real Estate Management, LLC was asset manager of the venture and received a monthly asset management fee equal to 1.0% of the combined investment calculated as of the last calendar day of the month. There were no fees incurred for the three months ended March 31, 2017 and 2016 , as the last property associated with the joint venture was sold in July 2014. For the three months ended March 31, 2017 the Company recorded income of $0 , which was recorded in equity in earnings of unconsolidated entities on the consolidated statements of operations. For the three months ended March 31, 2016 , the Company recorded income of $25,000 , 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. The Company has executed the following four real estate securitization transactions, which provide financing for CRE loans: (i) RCC CRE Notes 2013, a $307.8 million securitization that closed in December 2013; (ii) RCC 2014-CRE2, a $353.9 million securitization that closed in July 2014; (iii) RCC 2015-CRE3, a $346.2 million securitization that closed in February 2015; and (iv) RCC 2015-CRE4, a $312.9 million securitization that closed in August 2015. Resource Real Estate serves as special servicer for each securitization. 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 multiplied by (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 sell some of the securities of our securitizations. 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, and, as a result, the remaining assets were returned to us 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. 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 three months ended March 31, 2017 , RCC Residential did not receive any cash distributions. At March 31, 2017 , the Company's ownership interest in RCM Global was 21.6% and the remainder was owned by subsidiaries of Resource America and certain of its employees and their spouses. On January 1, 2016, the Company adopted new consolidation guidance on variable interest entities and, as a result, the Company deconsolidated RCM Global and now accounts for this investment as an investment in unconsolidated entities on the consolidated balance sheet. For the three months ended March 31, 2017 and 2016 , the Company recorded losses of $4,000 and earnings of $177,000 which was recorded in equity in earnings of unconsolidated subsidiaries on the consolidated statements of operations, respectively. In September 2014, the Company contributed $17.5 million to Pelium Capital for an initial ownership interest of 80.4% . Pelium Capital is a specialized credit opportunity fund managed by Resource America. The Company funded its final commitment of $2.5 million as of February 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. 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. For the three months ended March 31, 2017 and 2016 , the Company recorded losses of $158,000 and earnings $361,000 which was recorded in equity in earnings of unconsolidated entities on the consolidated statements of operations. During 2017, the Company received proceeds of $13.6 million related to the partial liquidation of its investment. The Company's investment balance in Pelium Capital was $12.2 million and $26.0 million at March 31, 2017 and December 31, 2016 , respectively. The Company held an 80.2% interest in Pelium Capital at March 31, 2017 . On June 24, 2015, the Company committed to invest up to $50.0 million in Pearlmark Mezz, a Delaware limited partnership. The investment advisor of Perlmark Mezz is Pearlmark Real Estate LLC ("Pearlmark Manager"), which is 50% owned by Resource America. The Company pays Pearlmark Manager management fees of 1.0% 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 on June 24, 2016. Resource America has agreed that it will credit any such fees paid by the Company to Pearlmark Manager against the base management fee that the Company pays to Resource America. At March 31, 2017 , the Company has invested an aggregate of $17.8 million in capital in Pearlmark Mezz. For the three months ended March 31, 2017 and 2016 , the Company recorded earnings of $358,000 and $248,000 which was recorded in equity in earnings of unconsolidated entities on the consolidated statements of operations. At March 31, 2017 and December 31, 2016 , the Company had an investment balance of $16.9 million and $17.0 million , respectively. The Company held a 47.7% interest in Pearlmark Mezz at March 31, 2017 . |
DISTRIBUTIONS
DISTRIBUTIONS | 3 Months Ended |
Mar. 31, 2017 | |
DISTRIBUTIONS [Abstract] | |
DISTRIBUTIONS | NOTE 17 - DISTRIBUTIONS For the quarter ended March 31, 2017 , the Company declared and subsequently paid a dividend of $0.05 per common share. In order to qualify as a REIT, the Company must currently distribute at least 90% of its taxable income. In addition, the Company must distribute 100% of its taxable income in order not to be subject to corporate federal income taxes on retained income. The Company anticipates it will distribute substantially all of its taxable income to its stockholders. Because taxable income differs from cash flow from operations due to non-cash revenues or expenses (such as provisions for loan and lease losses and depreciation), in certain circumstances, the Company may generate operating cash flow in excess of its distributions or, alternatively, may be required to borrow to make sufficient distribution payments. The Company’s 2017 dividends are determined by the Company’s board of directors, which 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 quarter ended March 31, 2017 and each of the quarters in 2016: Common Stock Date Paid Total Dividend (in thousands) 2017 March 31 April 27 $ 1,568 $ 0.05 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 Preferred Stock Series A Series B Series C Date Paid Total Dividend Date Paid Total Dividend Date Paid Total Dividend (in thousands) (in thousands) (in thousands) 2017 March 31 May 1 $ 568 $ 0.531250 May 1 $ 2,859 $ 0.515625 May 1 $ 2,588 $ 0.539063 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 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 18 - FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as follows (in thousands): Level 1 Level 2 Level 3 Total At March 31, 2017: Assets: Investment securities, trading $ — $ — $ 221 $ 221 Investment securities available-for-sale — — 118,531 118,531 Loans held for sale — 1 1 2 Derivatives — 136 — 136 Total assets at fair value $ — $ 137 $ 118,753 $ 118,890 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 ) In accordance with guidance on fair value measurements and disclosures, the Company is not required to disclose quantitative information with respect to unobservable inputs contained in fair value measurements that are not developed by the Company. As a consequence, the Company has not disclosed such information associated with fair values obtained for investment securities, trading and investment securities available for sale from third-party pricing sources. The following table presents additional information about assets that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs (in thousands): CMBS ABS Structured Loans Held for Sale RMBS Total Balance, January 1, 2017 $ 98,087 $ 25,280 $ 4,123 $ 220 $ 1,601 $ 129,311 Included in earnings 202 309 213 (21 ) — 703 Purchases/Originations — — — — — — Sales — — — — — — Paydowns (6,738 ) (778 ) (4,115 ) (198 ) (90 ) (11,919 ) Issuances — — — — — — Settlements — — — — — — Capitalized Interest — 478 — — — 478 Included in OCI 39 156 — — (15 ) 180 Balance, March 31, 2017 $ 91,590 $ 25,445 $ 221 $ 1 $ 1,496 $ 118,753 There were no financial assets or liabilities measured at fair value on a nonrecurring basis at March 31, 2017 . 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 7 . The fair values of the Company’s investment securities available-for-sale are reported in Note 8 . The fair values of the Company’s derivative instruments are reported in Note 19 . 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 each with discount rates of 11.34% and 11.34% and used in the evaluation of RCT I and RCT II, respectively The fair value of the convertible notes was determined using a discounted cash flow model that discounts the expected future cash flows using current interest rates on similar debts that do not have a conversion option. The 6.0% Convertible Senior Notes are discounted at a rate of 7.00% , and the 8.0% Convertible Senior Notes are discounted at a rate of 8.60% . The fair value of the CRE loan portfolio was determined using a discounted cash flow model that calculates the present value of expected future cash flows using available market rates for comparable loans as discount rates. 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 March 31, 2017: Loans held for investment $ 1,295,154 $ 1,301,076 $ — $ — $ 1,301,076 Senior notes in CRE securitization $ 381,168 $ 381,445 $ — $ — $ 381,445 Junior subordinated notes $ 51,548 $ 27,183 $ — $ — $ 27,183 Convertible notes $ 208,999 $ 215,000 $ — $ — $ 215,000 Repurchase agreements $ 535,480 $ 537,249 $ — $ — $ 537,249 At December 31, 2016: Loans held for investment $ 1,286,278 $ 1,292,099 $ — $ — $ 1,292,099 Senior notes in CRE securitization $ 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 $ 451,510 $ 453,794 $ — $ — $ 453,794 |
MARKET RISK AND DERIVATIVE INST
MARKET RISK AND DERIVATIVE INSTRUMENTS | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
MARKET RISK AND DERIVATIVE INSTRUMENTS | NOTE 19 - 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. At March 31, 2017 and December 31, 2016 , the Company had no interest rate swap contracts outstanding. The Company had aggregate unrealized losses on an interest rate swap agreement that was canceled, at the Company's request in April 2016, of $0 and $18,000 at March 31, 2017 and December 31, 2016 , respectively, which is recorded in accumulated other comprehensive income (loss). The aggregate unrealized loss is amortized through earnings over the remaining life of the canceled agreement. The amortization is reflected in interest expense in the Company’s consolidated statements of operations. The Company recognized expense of $18,000 during the three months ended March 31, 2017 to fully amortize the remaining accumulated other comprehensive income (loss). The Company had master netting agreements with Credit Suisse International and Wells Fargo at March 31, 2017 . 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 March 31, 2017 and 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. 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 periods presented: Fair Value of Derivative Instruments at March 31, 2017 (in thousands) Asset Derivatives Notional Amount Consolidated Balance Sheet Location Fair Value Forward contracts - foreign currency, hedging (1)(2) $ 24,495 Derivatives, at fair value $ 136 (1) Foreign currency forward contracts are accounted for as fair value hedges. (2) Notional amount presented on currency converted basis. The base currency notional amount of the Company's foreign currency hedging forward contracts in an asset position was €23.0 million at March 31, 2017 . At March 31, 2017 the Company held no derivative instruments in a liability position. Fair Value of Derivative Instruments at December 31, 2016 (in thousands) Asset Derivatives Notional Amount Consolidated Balance Sheet Location Fair Value Forward contracts - foreign currency, hedging (1)(2) $ 12,489 Derivatives, at fair value $ 647 Liability Derivatives Notional Amount Consolidated 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) Notional amount presented on currency converted basis. The base currency notional amount of the Company's foreign currency hedging forward contracts in an asset position was €11.9 million at December 31, 2016 . (3) Notional amount presented on currency converted basis. The base currency notional amount of the Company's foreign currency hedging forward contracts in a liability position was €11.1 million at December 31, 2016 . The Effect of Derivative Instruments on the Consolidated Statements of Operations for the Three Months Ended March 31, 2017 (in thousands) Derivatives Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (18 ) Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ (195 ) (1) Negative values indicate a decrease to the associated consolidated statements of operations line items. The Effect of Derivative Instruments on the Consolidated Statements of Operations for the Three Months Ended March 31, 2016 (in thousands) Derivatives Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ 95 Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ (1,116 ) (1) Negative values indicate a decrease to the associated consolidated statements of operations line items. |
OFFSETTING OF FINANCIAL ASSETS
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | 3 Months Ended |
Mar. 31, 2017 | |
Offsetting [Abstract] | |
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | NOTE 20 - OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES The following table presents a summary of the Company's offsetting of derivative assets for the periods presented (in thousands): (iv) (i) (ii) (iii) = (i) - (ii) Financial Cash (v) = (iii) - (iv) At March 31, 2017: Derivative hedging instruments, at fair value $ 136 $ — $ 136 $ — $ — $ 136 Total $ 136 $ — $ 136 $ — $ — $ 136 At December 31, 2016: Derivative hedging instruments, at fair value $ 647 $ — $ 647 $ — $ — $ 647 Total $ 647 $ — $ 647 $ — $ — $ 647 The following table presents a summary of the Company's offsetting of financial liabilities and derivative liabilities for the periods presented as follows (in thousands): (iv) (i) (ii) (iii) = (i) - (ii) Financial (1) Cash (v) = (iii) - (iv) At March 31, 2017: Repurchase agreements and term facilities (2) $ 535,480 $ — $ 535,480 $ 535,480 $ — $ — Total $ 535,480 $ — $ 535,480 $ 535,480 $ — $ — At December 31, 2016: Derivative hedging instruments, $ 97 $ — $ 97 $ — $ — $ 97 Repurchase agreements and term facilities (2) 451,510 — 451,510 451,510 — — Total $ 451,607 $ — $ 451,607 $ 451,510 $ — $ 97 (1) Amounts represent collateral pledged that is available to be offset against liability balances associated with term facilities, repurchase agreements and derivative transactions. (2) The combined fair value of securities and loans pledged against the Company's various term facilities and repurchase agreements was $841.2 million and $724.8 million at March 31, 2017 and December 31, 2016 , respectively. In the Company's consolidated balance sheets, all balances associated with repurchase agreement and derivatives transactions are presented on a gross basis. Certain of the Company's repurchase agreements and derivative transactions are governed by underlying agreements that generally provide for a right of offset in the event of default or in the event of a bankruptcy of either party to the transaction. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 21 - COMMITMENTS AND CONTINGENCIES From time to time, the Company may become involved in litigation on various matters, including disputes arising out of loans in the Company's portfolio and agreements to purchase or sell assets. Given the nature of the Company's business activities, the Company considers these matters to be routine and in the ordinary conduct of its business. The resolution of these matters may result in adverse judgments, fines, penalties, injunctions and other relief against the Company as well as monetary payments or other agreements and obligations. Alternately, the Company may engage in settlement discussions on certain matters in order to avoid the additional costs of engaging in litigation. In September 2015, Daren Levin filed a putative class action in the United States District Court for the Southern District of New York on behalf of all persons who purchased the Company's common stock between March 2, 2015 and August 4, 2015. In November 2015, the Court appointed Douglas Drees as the lead plaintiff in the action, and thereafter entered a stipulation and order directing the lead plaintiff to file an amended complaint. In February 2016, the lead plaintiff filed an amended complaint, alleging that the Company and certain of its officers and directors materially misrepresented certain risks of its commercial loan portfolio and 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. 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 its 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 its behalf. In March 2017, Dave Sherek and Robert H. Spiegel 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 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 Messrs. Sherek and Spiegel previously made a demand on the board of directors to investigate certain of these claims, they filed suit before receiving a final response to their demand from the board. The Company believes the Sherek/Speigel action was filed prematurely and that the suit is without merit. In April 2017, Rick Sebenoler 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 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. Although the plaintiff previously made a demand on the board of directors to investigate certain of these claims, he filed suit before receiving a final response to their demand from the board. The Company believes the Sebenoler action was filed prematurely and that the suit is without merit. In April 2017, Abigail Gehan and Zachary Gehan 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 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. 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. 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. The Company believes that the derivative suits pending in federal court will be consolidated into two actions distinguished by whether the plaintiff filed a pre-suit demand or not. The plaintiffs in the derivative suits pending in state court have filed motions to consolidate those matters and appoint a lead counsel and the defendants have filed motions to stay those state court actions in favor of the federal court actions. 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 $4.6 million and $4.8 million as of March 31, 2017 and December 31, 2016, 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 March 31, 2017 , outstanding demands for indemnification, repurchase or make whole payments totaled approximately $11.0 million . 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 March 31, 2017 . 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 March 31, 2017 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. Unfunded commitments on the Company's originated middle market loans fall into two categories: (1) revolving credit facility; and (2) unfunded commitments subject to the borrower meeting pre-specified criteria. Except as previously discussed, the Company is unaware of any contingencies arising from such routine litigation that would require accrual or disclosure in the consolidated financial statements at March 31, 2017 . |
DISCONTINUED OPERATIONS AND ASS
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE | 3 Months Ended |
Mar. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE | NOTE 22 - DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE In November 2016 the Company received approval from its board of directors to execute a strategic Plan to focus its strategy on CRE debt investments. The plan contemplates disposing of certain legacy CRE loans and exiting underperforming non-core asset classes. 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 reclassified 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 three months ended March 31, 2017 and 2016 (in thousands): For the Three Months Ended March 31, 2017 2016 REVENUES Interest income: Loans $ 897 $ 12,272 Interest income - Other 13 5 Total interest income 910 12,277 Interest expense — 1,697 Net interest income 910 10,580 Gain (loss) on sale of residential mortgage loans 3,825 3,996 Fee income 2,180 (1,273 ) Total revenues 6,915 13,303 OPERATING EXPENSES Equity compensation expense - related party 59 774 General and administrative 7,473 6,363 Depreciation and amortization — 132 Provision for loan and lease losses — 107 Total operating expenses 7,532 7,376 (617 ) 5,927 OTHER INCOME (EXPENSE) Net realized gain (loss) on investment securities available-for-sale and loans (2 ) — Fair value adjustments on financial assets held for sale 58 — Total other income (expense) 56 — INCOME (LOSS) FROM DISCONTINUED OPERATIONS BEFORE TAXES (561 ) 5,927 Income tax (expense) benefit — (759 ) TOTAL INCOME (LOSS) FROM DISCONTINUED OPERATIONS $ (561 ) $ 5,168 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 March 31, 2017 and December 31, 2016 (in thousands): March 31, December 31, ASSETS Restricted cash $ 143 $ 145 Interest receivable 224 305 Loans held for sale, at fair value 283,823 346,761 Property available for sale 235 125 Derivatives, at fair value 2,613 3,773 Intangible assets (1) 17,511 14,466 Other assets (2) 12,569 17,880 Total assets held for sale $ 317,118 $ 383,455 LIABILITIES Accounts payable and other liabilities $ 9,129 $ 8,404 Management fee payable - related party 54 132 Accrued interest expense 116 203 Borrowings (3) 88,906 133,139 Derivatives, at fair value 1,334 685 Total liabilities held for sale $ 99,539 $ 142,563 (1) Includes mortgage services rights ("MSRs") with a fair value of $17.4 million and $14.4 million at March 31, 2017 and December 31, 2016 , 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 the Company's investment in life settlement contracts of $6.4 million and $5.8 million at March 31, 2017 and December 31, 2016 , respectively, which were transferred to held for sale in the fourth quarter of 2016. (3) Borrowings at March 31, 2017 and December 31, 2016 are 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, except quantities): Loan Description Quantity Amortized Cost Fair Value At March 31, 2017: Legacy CRE whole loans (1) 7 $ 143,922 $ 143,907 Mezzanine loans (2) 1 — — Middle market loans (3)(4) 7 52,382 40,441 Residential mortgage loans (5)(6)(7) 417 99,475 99,475 Total loans 432 $ 295,779 $ 283,823 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 (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 2018 and September 2021. (3) Includes a directly originated middle market loan with a LCOM value of $1.9 million and $1.9 million at March 31, 2017 and December 31, 2016 , respectively. In May 2017 the loan experienced payment default. The loan's fair market value was supported by a third party valuation mark calculated during the fourth quarter of 2016. (4) At March 31, 2017 and December 31, 2016, 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 March 31, 2017, approximately 45.5% of the Company's residential mortgage loans were originated in Georgia, 13.3% in Utah, 9.9% in California, 7.6% in Florida and 5.5% in Virginia. 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. Debt Facilities Associated with Discontinued Operations 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 March 31, 2017 . |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 23 - 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 CRE loans and CRE related securities. 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 Three Months Ended March 31, 2017: Interest income: External customers $ 23,563 $ 159 $ 119 $ — $ 23,841 Other 21 1,605 — 4 1,630 Total interest income 23,584 1,764 119 4 25,471 Interest expense 9,187 — — 5,067 14,254 Net interest income 14,397 1,764 119 (5,063 ) 11,217 Other income from external customers — 909 — 19 928 Total revenues 14,397 2,673 119 (5,044 ) 12,145 Less: Segment operating expenses 108 218 123 3,019 3,468 General and administrative 774 345 137 2,607 3,863 Depreciation and amortization — 36 — 32 68 Impairment losses (4) — 177 — — 177 Provision (recovery) for loan and lease losses 860 139 — — 999 Equity in earnings of unconsolidated entities (358 ) (3 ) — — (361 ) Other (income) expense (6,954 ) 724 (19 ) (493 ) (6,742 ) Income (loss) from continuing operations before taxes 19,967 1,037 (122 ) (10,209 ) 10,673 Income tax (expense) benefit — (1,499 ) — — (1,499 ) Net income (loss) from continuing operations $ 19,967 $ (462 ) $ (122 ) $ (10,209 ) $ 9,174 Commercial Real Estate Debt Investments Commercial Finance Residential Mortgage Lending Corporate & Other (1)(2)(3) Total For the Three Months Ended March 31, 2016: Interest income: External customers $ 25,039 $ 642 $ 98 $ — $ 25,779 Other 19 1,210 — 8 1,237 Total interest income 25,058 1,852 98 8 27,016 Interest expense 8,224 — — 5,078 13,302 Net interest income 16,834 1,852 98 (5,070 ) 13,714 Other income from external customers — 571 — 18 589 Total revenues 16,834 2,423 98 (5,052 ) 14,303 Less: Segment operating expenses 66 266 33 4,161 4,526 General and administrative 392 349 60 2,841 3,642 Depreciation and amortization — 474 — 35 509 Provision (recovery) for loan and lease losses 68 (138 ) — — (70 ) Equity in earnings of unconsolidated entities (273 ) (1,949 ) — — (2,222 ) Other (income) expense 3 (1,383 ) (81 ) 523 (938 ) Income (loss) from continuing operations before taxes 16,578 4,804 86 (12,612 ) 8,856 Income tax (expense) benefit — 89 (116 ) 23 (4 ) Net income (loss) from continuing operations $ 16,578 $ 4,893 $ (30 ) $ (12,589 ) $ 8,852 (1) Includes interest expense for the Convertible Senior Notes of $4.4 million for the three months ended March 31, 2017 and $4.4 million for the three months ended March 31, 2016 . (2) Includes interest expense for the Unsecured Junior Subordinated Debentures of $637,000 for the three months ended March 31, 2017 and $641,000 for the three months ended March 31, 2016 . (3) Includes general corporate expenses and inter-segment eliminations not allocable to any particular operating segment. (4) Includes impairment on intangible assets in the Commercial Finance segment of $177,000 for the three months ended March 31, 2017 . The following table presents total assets by segment (in thousands): Total Assets (2) Commercial Real Estate Debt Investments Commercial Finance Residential Mortgage Lending Corporate & Other (1) Total March 31, 2017 $ 1,634,571 $ 142,508 $ 10,587 $ 14,572 $ 1,802,238 December 31, 2016 $ 1,624,779 $ 160,414 $ 12,460 $ 15,020 $ 1,812,673 (1) Includes assets not allocable to any particular operating segment. (2) Total assets does not include $193.6 million and $240.9 million of assets attributable to discontinued operations, of which, $33.5 million and $22.9 million of cash from continuing operations is included at March 31, 2017 and December 31, 2016 , respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 24 - SUBSEQUENT EVENTS The Company has evaluated subsequent events through the filing of this report and determined that there have not been any events that have occurred that would require adjustments to or disclosures in the consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and the accounting policies set forth in Note 2 included in the Company's annual report on Form 10-K for the year ended December 31, 2016 . The consolidated financial statements include the accounts of the Company. All inter-company transactions and balances have been eliminated. |
Basis of Presentation | Basis of Presentation All adjustments (which include only normal recurring adjustments) necessary to present fairly the Company’s financial position, results of operations and cash flows have been made. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and all highly liquid investments with original maturities of three months or less at the time of purchase. At March 31, 2017 and December 31, 2016 , approximately $153.7 million and $111.6 million , respectively, of the reported cash balances exceeded the Federal Deposit Insurance Corporation deposit insurance limit of $250,000 per institution. However, all of the Company's cash deposits are held at multiple, established financial institutions to minimize credit risk exposure. |
Allowance for Loan Loss | Allowance for Loan Loss The general reserve, established for loans not determined to be impaired individually, is based on the Company's historical realized loss experience, adjusted for certain current economic factors. |
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. |
Income Taxes | Income Taxes Due to changes in management’s focus regarding the non-CRE businesses, the Company’s forecasted taxable income continues to be insufficient to completely realize the tax benefits of the gross deferred tax asset of $60.9 million (tax effected $17.1 million ) at March 31, 2017 . The Company believes it will be able to utilize up to $28.3 million of the gross deferred tax asset prior to its expiration. Therefore, a gross valuation allowance of $32.6 million (tax effected $13.2 million ) has been recorded against the deferred tax asset at March 31, 2017 . Management will continue to evaluate the Company's ability to realize the tax benefits associated with deferred tax assets by analyzing forecasted taxable income using both historical and projected future operating results, the reversal of existing temporary differences, taxable income in prior carry back years (if permitted) and the availability of tax planning strategies. |
Recent Accounting Standards | Recent Accounting Standards In January 2017, the Financial Accounting Standards Board ("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: (i) 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 (ii) 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 became effective for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. Adoption did not have a material impact on the Company's consolidated financial statements. 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: (i) debt prepayments or extinguishment costs; (ii) contingent consideration payments made after a business combination; (iii) proceeds from the settlement of insurance claims; (iv) proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); (v) settlement of zero-coupon debt instruments or other debt instruments with insignificant coupon rates; (vi) distributions received from equity method investees; (vii) beneficial interests in securitization transactions and (viii) 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 became effective for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. Adoption did not have a material impact on the Company's consolidated financial statements. 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 in the process of evaluating the impact of this new guidance. 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 in the process of evaluating the impact of this new guidance. 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: (i) modify the evaluation of whether limited partnerships and similar legal entities are VIEs; (ii) eliminate the presumption that a general partner should consolidate a limited partnership; (iii) affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related-party relationships and (iv) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. This guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. 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 became effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Adoption did not have a material impact on the Company's consolidated financial statements. 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. |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2016 consolidated financial statements to conform to the 2017 presentation, including the impact of discontinued operations and assets and liabilities held for sale. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable interest entity | The following table shows the classification and carrying value of assets and liabilities of the Company's consolidated VIEs at March 31, 2017 (in thousands): Apidos I Apidos III Apidos Cinco Whitney CLO I RCC 2014-CRE2 RCC 2015-CRE3 RCC 2015-CRE4 (1) Total ASSETS Restricted cash $ 239 $ 100 $ 1,563 $ 187 $ — $ — $ 2,752 $ 4,841 Loans, pledged as collateral — — — — 201,164 232,952 204,814 638,930 Loans held for sale — — 2 — — — — 2 Interest receivable — — — — 825 1,024 851 2,700 Principal paydown receivable — — — — — 13,900 — 13,900 Other assets — — — — 16 154 16 186 Total assets (2) $ 239 $ 100 $ 1,565 $ 187 $ 202,005 $ 248,030 $ 208,433 $ 660,559 LIABILITIES Borrowings $ — $ — $ — $ — $ 81,834 $ 181,505 $ 117,829 $ 381,168 Accrued interest expense — — — — 86 222 136 444 Accounts payable and other liabilities — — — — 31 11 29 71 Total liabilities $ — $ — $ — $ — $ 81,951 $ 181,738 $ 117,994 $ 381,683 (1) Includes $2.8 million designated to fund future commitments on specific CRE 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. The following table shows the classification, carrying value and maximum exposure to loss with respect to the Company’s unconsolidated VIEs at March 31, 2017 (in thousands): Unconsolidated Variable Interest Entities LCC Unsecured Junior Subordinated Debentures Investment in Harvest CLOs RCM Global LLC Pelium Capital Pearlmark Mezz Total Maximum Exposure to Loss Investments in unconsolidated entities $ 43,125 $ 1,548 $ — $ 472 $ 12,201 $ 16,924 $ 74,270 $ 74,270 Investment securities, available-for-sale — — 20,211 — — — 20,211 $ 20,211 Total assets 43,125 1,548 20,211 472 12,201 16,924 94,481 Borrowings — 51,548 — — — — 51,548 N/A Total liabilities — 51,548 — — — — 51,548 N/A Net asset (liability) $ 43,125 $ (50,000 ) $ 20,211 $ 472 $ 12,201 $ 16,924 $ 42,933 N/A |
SUPPLEMENTAL CASH FLOW INFORM35
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of other significant noncash transactions | Supplemental disclosure of cash flow information is summarized for the periods indicated (in thousands): For the Three Months Ended March 31, 2017 2016 Non-cash continuing financing activities include the following: Distributions on common stock accrued but not paid $ 1,568 $ 13,073 Distribution on preferred stock accrued but not paid $ 4,009 $ 4,010 |
LOANS (Tables)
LOANS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
LOANS HELD FOR INVESTMENT [Abstract] | |
Summary of loans held for Investments | The following is a summary of the Company’s loans (in thousands): Loan Description Principal Unamortized (Discount) Premium, net (1) Carrying Value (2) At March 31, 2017: CRE whole loans $ 1,305,765 $ (5,922 ) $ 1,299,843 Allowance for loan loss (4,689 ) — (4,689 ) Total CRE loans held for investment, net of allowance 1,301,076 (5,922 ) 1,295,154 Syndicated corporate loans 2 — 2 Total loans held for sale 2 — 2 Total loans, net (3) $ 1,301,078 $ (5,922 ) $ 1,295,156 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 (3) $ 1,293,104 $ (5,819 ) $ 1,287,285 (1) Amounts include unamortized loan origination fees of $5.8 million and $5.8 million at March 31, 2017 and December 31, 2016 , respectively. Amounts also include deferred amendment fees of $125,000 and $4,000 being amortized over the life of the loans at March 31, 2017 and December 31, 2016 , respectively. (2) Substantially all loans are pledged as collateral under various borrowings at March 31, 2017 and December 31, 2016 . (3) Pursuant to the Company's Plan, certain underperforming legacy CRE loans were moved to loans held for sale status and included in Assets held for sale on the Company's consolidated balance sheet at March 31, 2017 and December 31, 2016 ( see Note 22 ). |
Summary of commercial real estate loans held for investment | The following is a summary of the Company's CRE loans held for investment (in thousands): Description Quantity Amortized Cost Contracted Interest Rates Maturity Dates (3) At March 31, 2017: Whole loans, floating rate (1)(4)(5) 67 $ 1,299,843 LIBOR plus 3.75% to LIBOR plus 6.25% May 2017 to April 2020 Total (2) 67 $ 1,299,843 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 (1) Whole loans had $62.4 million and $55.5 million in unfunded loan commitments at March 31, 2017 and December 31, 2016 , 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 $4.7 million and $3.8 million at March 31, 2017 and December 31, 2016 , respectively. (3) Maturity dates do not include possible extension options that may be available to borrowers. (4) Maturity dates do not include a loan with a maturity date of February 2017 that is in default ( see Note 6 ). (5) Includes one loan that matured in May 2017 that paid off subsequent to March 31, 2017 , and another loan that was subsequently extended to June 2017. |
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 CRE loans held for investment, at amortized cost (in thousands): Description 2017 2018 2019 and Thereafter Total At March 31, 2017: Whole loans $ 20,000 $ 24,417 $ 1,255,426 $ 1,299,843 Total (1) $ 20,000 $ 24,417 $ 1,255,426 $ 1,299,843 At December 31, 2016: 2017 2018 2019 and Thereafter Total Whole loans $ 7,000 $ 24,476 $ 1,258,631 $ 1,290,107 Total (1) $ 7,000 $ 24,476 $ 1,258,631 $ 1,290,107 (1) Contractual maturities of CRE 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 | The following table provides information as to the lien position and status of the Company's syndicated corporate loans, at the lower of cost or market (in thousands): Apidos Cinco Total At March 31, 2017: Loans held for sale: Second lien loans held for sale $ 2 $ 2 Total $ 2 $ 2 At December 31, 2016: Loans held for sale: Second lien loans held for sale $ 1,007 $ 1,007 Total $ 1,007 $ 1,007 |
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 held for sale, at the lower of cost or market (in thousands): March 31, December 31, Less than one year $ 2 $ 221 Greater than one year and less than five years — 786 Five years or greater — — Total $ 2 $ 1,007 |
Allocation of allowance for loan loss | The following is a summary of the allocation of the allowance for loan losses with respect to the Company's loans by asset class (in thousands, except percentages): Description Allowance for Loan Loss Percentage of Total Allowance At March 31, 2017: CRE whole loans $ 4,689 100.00% Total $ 4,689 At December 31, 2016: CRE whole loans $ 3,829 100.00% Total $ 3,829 |
FINANCING RECEIVABLES (Tables)
FINANCING RECEIVABLES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017: Allowance for loan and lease losses: Allowance for loan and lease losses at January 1, 2017 $ 3,829 $ — $ 465 $ 4,294 Provision (recovery) for loan and lease losses 860 — 139 999 Allowance for loan and lease losses at March 31, 2017 $ 4,689 $ — $ 604 $ 5,293 Ending balance: Individually evaluated for impairment $ 2,500 $ — $ 604 $ 3,104 Collectively evaluated for impairment $ 2,189 $ — $ — $ 2,189 Loans acquired with deteriorated credit quality $ — $ — $ — $ — Loans and Leases: Ending balance: Individually evaluated for impairment $ 7,000 $ — $ 953 $ 7,953 Collectively evaluated for impairment $ 1,292,843 $ — $ — $ 1,292,843 Loans acquired with deteriorated credit quality $ — $ — $ — $ — At December 31, 2016: Allowance for loan and lease losses: Allowance for loan and lease 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 loan and lease 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 $ — $ — $ — $ — |
Credit quality indicators for bank loans and commercial real estate loans | Credit risk profiles of syndicated corporate loans were as follows (in thousands): Rating 1 Rating 2 Rating 3 Rating 4 Rating 5 Held for Sale Total At March 31, 2017: Syndicated corporate loans $ — $ — $ — $ — $ — $ 2 $ 2 At December 31, 2016: Syndicated corporate loans $ — $ — $ — $ — $ — $ 1,007 $ 1,007 Credit risk profiles of CRE loans at amortized cost were as follows (in thousands): Rating 1 Rating 2 Rating 3 Rating 4 Held for Sale Total At March 31, 2017: CRE whole loans (1) $ 1,259,153 $ 33,690 $ — $ 7,000 $ — $ 1,299,843 Legacy CRE whole loans (1)(2) — — — — 143,907 143,907 $ 1,259,153 $ 33,690 $ — $ 7,000 $ 143,907 $ 1,443,750 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 $ 1,186,292 $ 96,815 $ — $ 7,000 $ 158,178 $ 1,448,285 (1) Pursuant to 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 the lower of cost or market ("LCOM") on the Company's consolidated balance sheet at March 31, 2017 and December 31, 2016 , respectively ( see Note 22 ). (2) Includes one loan with a maturity date of May 2017 which subsequently defaulted. |
Loan portfolios aging analysis | The following table presents the loan and lease portfolio aging analysis as of the dates indicated at amortized cost (in thousands): 30-59 Days 60-89 Days Greater than 90 Days Total Past Due Current Total Loans Receivable Total Loans > 90 Days and Accruing At March 31, 2017: CRE whole loans (1) $ 7,000 $ — $ — $ 7,000 $ 1,292,843 $ 1,299,843 $ — Legacy CRE loans (2) — — 61,400 61,400 82,507 143,907 — Syndicated corporate loans — — — — — — — Direct Financing Leases — — 138 138 815 953 — Total loans $ 7,000 $ — $ 61,538 $ 68,538 $ 1,376,165 $ 1,444,703 $ — At December 31, 2016: CRE whole loans $ — $ — $ — $ — $ 1,290,107 $ 1,290,107 $ — Legacy CRE loans (2) 61,400 — — 61,400 96,792 158,192 — Syndicated corporate loans — — — — — — — Direct Financing Leases 137 — 128 265 727 992 — Total loans $ 61,537 $ — $ 128 $ 61,665 $ 1,387,626 $ 1,449,291 $ — (1) Includes one whole loan with an amortized cost of $7.0 million that was in default at March 31, 2017 , on which the Company recorded a $2.5 million provision for loan loss. (2) Includes two loans with an appraised value of $61.4 million that were in default at March 31, 2017 and December 31, 2016 , respectively. |
Impaired loans | Impaired Loans The following tables show impaired loans as of the dates indicated (in thousands): Recorded Balance Unpaid Principal Balance Specific Allowance Average Investment in Impaired Loans Interest Income Recognized At March 31, 2017: Loans without a specific valuation allowance: CRE whole loans $ — $ — $ — $ — $ — Syndicated corporate loans $ — $ — $ — $ — $ — Loans with a specific valuation allowance: CRE whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ — Syndicated corporate loans $ — $ — $ — $ — $ — Total: CRE whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ — Syndicated corporate loans — — — — — $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ — At December 31, 2016: Loans without a specific valuation allowance: CRE whole loans $ — $ — $ — $ — $ — Syndicated corporate loans $ — $ — $ — $ — $ — Loans with a specific valuation allowance: CRE whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ 480 Syndicated corporate loans $ — $ — $ — $ — $ — Total: CRE whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ 480 Syndicated corporate loans — — — — — $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ 480 |
Troubled debt restructurings on financing receivables | Troubled-Debt Restructurings ("TDR") 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 Three Months Ended March 31, 2017 Legacy CRE whole loans held for sale (1) 2 $ 61,400 $ 61,400 Total loans 2 $ 61,400 $ 61,400 Number of Loans Pre-Modification Outstanding Recorded Balance Post-Modification Outstanding Recorded Balance Three Months Ended March 31, 2016 CRE whole loans 3 $ 29,459 $ 29,459 Total loans 3 $ 29,459 $ 29,459 (1) Legacy CRE whole loans held for sale represent CRE whole loans designated as assets held for sale at March 31, 2017 . |
INVESTMENT SECURITIES, TRADING
INVESTMENT SECURITIES, TRADING (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment trading securities at fair value | The following table summarizes the Company's structured notes classified as investment securities, trading and carried at fair value (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value At March 31, 2017: Structured notes $ 2,891 $ — $ (2,670 ) $ 221 Total $ 2,891 $ — $ (2,670 ) $ 221 At December 31, 2016: Structured notes $ 6,242 $ 920 $ (2,670 ) $ 4,492 Total $ 6,242 $ 920 $ (2,670 ) $ 4,492 |
INVESTMENT SECURITIES AVAILAB39
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Available-for-sale Securities [Abstract] | |
Available-for-sale securities | The following table summarizes the Company's investment securities, including those pledged as collateral and classified as available-for-sale. ABS may include, but are not limited to the Company's investments in Harvest CLO Securities 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 March 31, 2017: ABS $ 21,374 $ 4,161 $ (90 ) $ 25,445 CMBS 91,990 556 (956 ) 91,590 RMBS 1,436 88 (28 ) 1,496 Total $ 114,800 $ 4,805 $ (1,074 ) $ 118,531 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 (1) At March 31, 2017 and December 31, 2016 , $91.1 million and $97.5 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 and ABS according to their estimated weighted average life classifications (in thousands, except percentages): Weighted Average Life Amortized Cost Fair Value Weighted Average Coupon At March 31, 2017: Less than one year (1) $ 80,791 $ 80,119 5.48% Greater than one year and less than five years 10,684 11,169 4.91% Greater than five years and less than ten years 23,325 27,243 11.13% Total $ 114,800 $ 118,531 6.57% 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% (1) The Company expects that the maturity dates of these CMBS and ABS will either be extended or that they will be paid in full. |
Gross unrealized loss and fair value of securities | The following table shows the fair value, gross unrealized losses and number of securities aggregated by investment category and length of time, 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 Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities At March 31, 2017: ABS $ 1,176 $ (90 ) 1 $ — $ — — $ 1,176 $ (90 ) 1 CMBS 19,950 (275 ) 8 20,799 (680 ) 12 40,749 (955 ) 20 RMBS 812 (28 ) 2 — — — 812 (28 ) 2 Total temporarily impaired securities $ 21,938 $ (393 ) 11 $ 20,799 $ (680 ) 12 $ 42,737 $ (1,073 ) 23 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 impaired securities $ 31,531 $ (438 ) 11 $ 27,444 $ (500 ) 16 $ 58,975 $ (938 ) 27 |
INVESTMENTS IN UNCONSOLIDATED40
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of unconsolidated entities | The following table shows the Company's investments in unconsolidated entities at March 31, 2017 and December 31, 2016 and equity in earnings of unconsolidated entities for the three months ended March 31, 2017 and 2016 (in thousands): Equity in Earnings of Unconsolidated Entities Balance at For the For the Ownership % at March 31, 2017 March 31, December 31, March 31, March 31, RRE VIP Borrower, LLC (1) —% $ — $ — $ — $ 25 Investment in LCC Preferred Stock 29.0% 43,125 42,960 165 1,411 Pearlmark Mezz (2) 47.7% 16,925 16,953 358 248 RCM Global, LLC 21.6% 472 465 (4 ) 177 Pelium Capital Partners, L.P. (3) 80.2% 12,201 25,993 (158 ) 361 Subtotal 72,723 86,371 361 2,222 Investment in RCT I and II (4) 3.0% 1,548 1,548 (637 ) (641 ) Total $ 74,271 $ 87,919 $ (276 ) $ 1,581 (1) The investment in RRE VIP Borrower was sold at December 31, 2014. Earnings for the three months ended March 31, 2016 are related to insurance premium refunds with respect to the underlying sold properties in the portfolio. (2) The Company has committed to invest up to $50.0 million in Pearlmark Mezz. The commitment termination date ends the earlier of when the original commitment is fully funded, or the fifth anniversary following the final closing date of June 24, 2015. (3) For the three months ended March 31, 2017 , the Company received proceeds of $13.6 million related to the partial liquidation of its investment. (4) For the three months ended March 31, 2017 and 2016 , these amounts are recorded in interest expense on the Company's consolidated statements of operations. |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of intangible assets | The following table summarizes the activity of intangible assets for the period indicated (in thousands): Management Contracts Balance, January 1, 2017 $ 213 Additions — Sales — Amortization (36 ) Total before impairment losses 177 Impairment losses (177 ) Balance, March 31, 2017 $ — |
BORROWINGS (Tables)
BORROWINGS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Weighted Average Value of At March 31, 2017: RCC 2014-CRE2 Senior Notes $ 82,936 $ 1,102 $ 81,834 2.67% 15.1 years $ 201,255 RCC 2015-CRE3 Senior Notes 183,613 2,108 181,505 3.11% 15.0 years 247,389 RCC 2015-CRE4 Senior Notes 119,433 1,604 117,829 2.93% 15.4 years 208,373 Unsecured Junior Subordinated Debentures 51,548 — 51,548 5.05% 19.6 years — 6.0% Convertible Senior Notes 115,000 2,813 112,187 6.00% 1.7 years — 8.0% Convertible Senior Notes 100,000 3,188 96,812 8.00% 2.8 years — CRE - Term Repurchase Facilities (1) 437,338 2,269 435,069 3.28% 1.4 years 643,258 CMBS - Term Repurchase Facilities (2) 73,998 6 73,992 2.90% 143 days 108,808 Trust Certificates - Term Repurchase Facility (3) 26,664 245 26,419 6.44% 1.6 years 89,181 Total $ 1,190,530 $ 13,335 $ 1,177,195 3.96% 6.7 years $ 1,498,264 Principal Unamortized Issuance Costs and Discounts 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 (1) 349,318 2,680 346,638 3.04% 1.6 years 520,503 CMBS - Term Repurchase Facilities (2) 78,503 16 78,487 2.73% 129 days 115,157 Trust Certificates - Term Repurchase Facility (3) 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 (1) Amounts also include accrued interest expense of $552,000 and $468,000 related to CRE term repurchase facilities at March 31, 2017 and December 31, 2016 , respectively. (2) Amounts also include accrued interest expense of $133,000 and $157,000 related to CMBS term repurchase facilities at March 31, 2017 and December 31, 2016 , respectively. (3) Amounts also include accrued interest expense of $67,000 and $69,000 related to the trust certificates term repurchase facility at March 31, 2017 and December 31, 2016 , respectively. |
Schedule of securitizations | The following table sets forth certain information with respect to the Company's consolidated securitizations at March 31, 2017 : Securitization Closing Date Maturity Date End of Designated Principal Reinvestment Period (1) Total Note Paydowns at March 31, 2017 (in millions) RCC 2014-CRE2 July 2014 April 2032 July 2016 $ 152.4 RCC 2015-CRE3 February 2015 March 2032 February 2017 $ 98.5 RCC 2015-CRE4 August 2015 August 2032 August 2017 $ 104.3 (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 mortgage finance facilities | The following table sets forth certain information with respect to the Company's borrowings (in thousands, except percentages): At March 31, 2017 At December 31, 2016 Outstanding Value of Number of Weighted Average Outstanding Value of Number of Weighted Average CMBS - Term Wells Fargo Bank $ 21,092 $ 26,868 12 2.20% $ 22,506 $ 28,514 13 1.96% Deutsche Bank (1) 52,900 81,940 22 3.18% 55,981 86,643 23 3.04% CRE - Term Wells Fargo Bank (2) 271,435 390,184 19 3.11% 215,283 313,126 16 2.86% Morgan Stanley Bank (3) 163,634 253,074 13 3.55% 131,355 207,377 11 3.34% Trust Certificates Term Repurchase Facility RSO Repo SPE Trust 2015 (4) 26,419 89,181 1 6.44% 26,385 89,181 1 6.21% Totals $ 535,480 $ 841,247 $ 451,510 $ 724,841 (1) The Deutsche Bank CMBS term repurchase facility includes $7,000 and $16,000 of deferred debt issuance costs at March 31, 2017 and December 31, 2016 , respectively. (2) The Wells Fargo Bank CRE term repurchase facility includes $1.3 million and $1.6 million of deferred debt issuance costs at March 31, 2017 and December 31, 2016 , respectively. (3) The Morgan Stanley Bank CRE term repurchase facility includes $935,000 and $1.1 million of deferred debt issuance costs at March 31, 2017 and December 31, 2016 , respectively. (4) The RSO Repo SPE Trust 2015 term repurchase facility includes $245,000 and $282,000 of deferred debt issuance costs at March 31, 2017 and December 31, 2016 , 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 March 31, 2017: CMBS - Term Repurchase Facilities Wells Fargo Bank, National Association $ 5,823 1.0 year 2.20% Deutsche Bank AG $ 29,340 55 days 3.18% CRE - Term Repurchase Facilities Wells Fargo Bank, National Association $ 118,792 1.3 years 3.11% Morgan Stanley Bank, National Association $ 89,448 1.4 years 3.55% Trust Certificates Term Repurchase Facility RSO Repo SPE Trust 2015 $ 62,575 1.6 years 6.44% 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% (1) Equal to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense. |
Schedule of contractual obligations and commitments | Contractual maturity dates of the Company's borrowings by category and year are presented in the table below (in thousands): Total 2017 2018 2019 2020 2021 and Thereafter CRE Securitizations $ 381,168 $ — $ — $ — $ — $ 381,168 Repurchase Facilities 535,480 52,900 482,580 — — — Unsecured Junior Subordinated Debentures 51,548 — — — — 51,548 6.0 % Convertible Senior Notes 112,187 — 112,187 — — — 8.0 % Convertible Senior Notes 96,812 — — — 96,812 — Total $ 1,177,195 $ 52,900 $ 594,767 $ — $ 96,812 $ 432,716 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 27,320 301,486 71,244 400,050 Issued 26,991 321,789 12,019 360,799 Vested (20,491 ) (108,859 ) (29,779 ) (159,129 ) Forfeited — (7,886 ) (1,412 ) (9,298 ) Unvested shares at March 31, 2017 33,820 506,530 52,072 592,422 (1) Non-employees are employees of Resource America and C-III. |
Schedule of restricted stock granted | The following table summarizes restricted common stock grants during the three months ended March 31, 2017 : Date Shares Vesting/Year Vesting Date(s) January 25, 2017 321,789 33.3% 1/25/18, 1/25/19, 1/25/20 February 1, 2017 4,242 100% 2/1/18 March 8, 2017 18,450 100% 3/8/18 March 13, 2017 4,299 100% 3/13/18 |
Summary of stock option transactions | The following table summarizes the status of the Company’s vested stock options at March 31, 2017 : 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, 2017 26,250 $ 46.60 Vested — — Exercised — — Forfeited — — Expired (1,250 ) 73.48 Vested at March 31, 2017 25,000 $ 46.60 1.80 $ — |
Summary of share based compensation expense | The components of equity compensation expense for the periods presented is as follows (in thousands): For the Three Months Ended March 31, 2017 2016 Restricted shares granted to non-employees (1) $ 715 $ 425 Restricted shares granted to non-employee directors 73 64 Total equity compensation expense (2) $ 788 $ 489 (1) Non-employees are employees of Resource America and C-III. (2) 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) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of basic and diluted earnings per share | The following table presents a reconciliation of basic and diluted earnings per share for the periods presented as follows (in thousands, except share and per share amounts): For the Three Months Ended March 31, 2017 2016 Net income (loss) from continuing operations $ 9,174 $ 8,852 Net (income) loss allocated to preferred shares (6,014 ) (6,048 ) Carrying value in excess of consideration paid for preferred shares — 1,611 Net (income) loss allocable to non-controlling interest, net of taxes 101 90 Net income (loss) allocable to common shares 3,261 4,505 Net income (loss) from discontinued operations, net of tax (561 ) 5,168 Net income (loss) allocable to common shares $ 2,700 $ 9,673 Basic: Weighted average number of shares outstanding 30,752,006 30,600,407 Continuing operations $ 0.11 $ 0.12 Discontinued operations (0.02 ) 0.20 Basic net income (loss) per share $ 0.09 $ 0.32 Diluted: Weighted average number of shares outstanding 30,752,006 30,600,407 Additional shares due to assumed conversion of dilutive instruments 162,142 437,688 Adjusted weighted-average number of common shares outstanding 30,914,148 31,038,095 Continuing operations $ 0.11 $ 0.12 Discontinued operations (0.02 ) 0.19 Diluted net income (loss) per share $ 0.09 $ 0.31 |
ACCUMULATED OTHER COMPREHENSI45
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive loss | The following table presents the changes in each component of accumulated other comprehensive income (loss) for the three months ended March 31, 2017 (dollars in thousands): Net unrealized (loss) gain on derivatives Net unrealized (loss) gain on securities, Accumulated other comprehensive income (loss) Balance, January 1, 2017 $ (18 ) $ 3,099 $ 3,081 Other comprehensive gain (loss) before reclassifications — 133 133 Amounts reclassified from accumulated other 18 — 18 Balance, March 31, 2017 $ — $ 3,232 $ 3,232 |
DISTRIBUTIONS (Tables)
DISTRIBUTIONS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
DISTRIBUTIONS [Abstract] | |
Dividends declared | The following tables present dividends declared (on a per share basis) for the quarter ended March 31, 2017 and each of the quarters in 2016: Common Stock Date Paid Total Dividend (in thousands) 2017 March 31 April 27 $ 1,568 $ 0.05 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 Preferred Stock Series A Series B Series C Date Paid Total Dividend Date Paid Total Dividend Date Paid Total Dividend (in thousands) (in thousands) (in thousands) 2017 March 31 May 1 $ 568 $ 0.531250 May 1 $ 2,859 $ 0.515625 May 1 $ 2,588 $ 0.539063 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 |
FAIR VALUE OF FINANCIAL INSTR47
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017: Assets: Investment securities, trading $ — $ — $ 221 $ 221 Investment securities available-for-sale — — 118,531 118,531 Loans held for sale — 1 1 2 Derivatives — 136 — 136 Total assets at fair value $ — $ 137 $ 118,753 $ 118,890 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 ) |
Fair value assets unobservable input reconciliation | The following table presents additional information about assets that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs (in thousands): CMBS ABS Structured Loans Held for Sale RMBS Total Balance, January 1, 2017 $ 98,087 $ 25,280 $ 4,123 $ 220 $ 1,601 $ 129,311 Included in earnings 202 309 213 (21 ) — 703 Purchases/Originations — — — — — — Sales — — — — — — Paydowns (6,738 ) (778 ) (4,115 ) (198 ) (90 ) (11,919 ) Issuances — — — — — — Settlements — — — — — — Capitalized Interest — 478 — — — 478 Included in OCI 39 156 — — (15 ) 180 Balance, March 31, 2017 $ 91,590 $ 25,445 $ 221 $ 1 $ 1,496 $ 118,753 |
Fair value assets and liabilities measured on nonrecurring basis | |
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 March 31, 2017: Loans held for investment $ 1,295,154 $ 1,301,076 $ — $ — $ 1,301,076 Senior notes in CRE securitization $ 381,168 $ 381,445 $ — $ — $ 381,445 Junior subordinated notes $ 51,548 $ 27,183 $ — $ — $ 27,183 Convertible notes $ 208,999 $ 215,000 $ — $ — $ 215,000 Repurchase agreements $ 535,480 $ 537,249 $ — $ — $ 537,249 At December 31, 2016: Loans held for investment $ 1,286,278 $ 1,292,099 $ — $ — $ 1,292,099 Senior notes in CRE securitization $ 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 $ 451,510 $ 453,794 $ — $ — $ 453,794 |
MARKET RISK AND DERIVATIVE IN48
MARKET RISK AND DERIVATIVE INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair value of derivative instruments | The following tables present the fair value of the Company’s derivative financial instruments as well as their classification on the Company's consolidated balance sheets and on the consolidated statements of operations for the periods presented: Fair Value of Derivative Instruments at March 31, 2017 (in thousands) Asset Derivatives Notional Amount Consolidated Balance Sheet Location Fair Value Forward contracts - foreign currency, hedging (1)(2) $ 24,495 Derivatives, at fair value $ 136 (1) Foreign currency forward contracts are accounted for as fair value hedges. (2) Notional amount presented on currency converted basis. The base currency notional amount of the Company's foreign currency hedging forward contracts in an asset position was €23.0 million at March 31, 2017 . At March 31, 2017 the Company held no derivative instruments in a liability position. Fair Value of Derivative Instruments at December 31, 2016 (in thousands) Asset Derivatives Notional Amount Consolidated Balance Sheet Location Fair Value Forward contracts - foreign currency, hedging (1)(2) $ 12,489 Derivatives, at fair value $ 647 Liability Derivatives Notional Amount Consolidated 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) Notional amount presented on currency converted basis. The base currency notional amount of the Company's foreign currency hedging forward contracts in an asset position was €11.9 million at December 31, 2016 . (3) Notional amount presented on currency converted basis. The base currency notional amount of the Company's foreign currency hedging forward contracts in a liability position was €11.1 million at December 31, 2016 . |
The effect of derivative instruments on the statement of income | The Effect of Derivative Instruments on the Consolidated Statements of Operations for the Three Months Ended March 31, 2017 (in thousands) Derivatives Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (18 ) Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ (195 ) (1) Negative values indicate a decrease to the associated consolidated statements of operations line items. The Effect of Derivative Instruments on the Consolidated Statements of Operations for the Three Months Ended March 31, 2016 (in thousands) Derivatives Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ 95 Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ (1,116 ) (1) Negative values indicate a decrease to the associated consolidated statements of operations line items. |
OFFSETTING OF FINANCIAL ASSET49
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Offsetting [Abstract] | |
Offsetting financial assets and derivative assets | The following table presents a summary of the Company's offsetting of derivative assets for the periods presented (in thousands): (iv) (i) (ii) (iii) = (i) - (ii) Financial Cash (v) = (iii) - (iv) At March 31, 2017: Derivative hedging instruments, at fair value $ 136 $ — $ 136 $ — $ — $ 136 Total $ 136 $ — $ 136 $ — $ — $ 136 At December 31, 2016: Derivative hedging instruments, at fair value $ 647 $ — $ 647 $ — $ — $ 647 Total $ 647 $ — $ 647 $ — $ — $ 647 |
Offsetting financial liabilities and derivative liabilities | The following table presents a summary of the Company's offsetting of financial liabilities and derivative liabilities for the periods presented as follows (in thousands): (iv) (i) (ii) (iii) = (i) - (ii) Financial (1) Cash (v) = (iii) - (iv) At March 31, 2017: Repurchase agreements and term facilities (2) $ 535,480 $ — $ 535,480 $ 535,480 $ — $ — Total $ 535,480 $ — $ 535,480 $ 535,480 $ — $ — At December 31, 2016: Derivative hedging instruments, $ 97 $ — $ 97 $ — $ — $ 97 Repurchase agreements and term facilities (2) 451,510 — 451,510 451,510 — — Total $ 451,607 $ — $ 451,607 $ 451,510 $ — $ 97 (1) Amounts represent collateral pledged that is available to be offset against liability balances associated with term facilities, repurchase agreements and derivative transactions. (2) The combined fair value of securities and loans pledged against the Company's various term facilities and repurchase agreements was $841.2 million and $724.8 million at March 31, 2017 and December 31, 2016 , respectively. |
DISCONTINUED OPERATIONS AND A50
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 three months ended March 31, 2017 and 2016 (in thousands): For the Three Months Ended March 31, 2017 2016 REVENUES Interest income: Loans $ 897 $ 12,272 Interest income - Other 13 5 Total interest income 910 12,277 Interest expense — 1,697 Net interest income 910 10,580 Gain (loss) on sale of residential mortgage loans 3,825 3,996 Fee income 2,180 (1,273 ) Total revenues 6,915 13,303 OPERATING EXPENSES Equity compensation expense - related party 59 774 General and administrative 7,473 6,363 Depreciation and amortization — 132 Provision for loan and lease losses — 107 Total operating expenses 7,532 7,376 (617 ) 5,927 OTHER INCOME (EXPENSE) Net realized gain (loss) on investment securities available-for-sale and loans (2 ) — Fair value adjustments on financial assets held for sale 58 — Total other income (expense) 56 — INCOME (LOSS) FROM DISCONTINUED OPERATIONS BEFORE TAXES (561 ) 5,927 Income tax (expense) benefit — (759 ) TOTAL INCOME (LOSS) FROM DISCONTINUED OPERATIONS $ (561 ) $ 5,168 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 March 31, 2017 and December 31, 2016 (in thousands): March 31, December 31, ASSETS Restricted cash $ 143 $ 145 Interest receivable 224 305 Loans held for sale, at fair value 283,823 346,761 Property available for sale 235 125 Derivatives, at fair value 2,613 3,773 Intangible assets (1) 17,511 14,466 Other assets (2) 12,569 17,880 Total assets held for sale $ 317,118 $ 383,455 LIABILITIES Accounts payable and other liabilities $ 9,129 $ 8,404 Management fee payable - related party 54 132 Accrued interest expense 116 203 Borrowings (3) 88,906 133,139 Derivatives, at fair value 1,334 685 Total liabilities held for sale $ 99,539 $ 142,563 (1) Includes mortgage services rights ("MSRs") with a fair value of $17.4 million and $14.4 million at March 31, 2017 and December 31, 2016 , 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 the Company's investment in life settlement contracts of $6.4 million and $5.8 million at March 31, 2017 and December 31, 2016 , respectively, which were transferred to held for sale in the fourth quarter of 2016. (3) Borrowings at March 31, 2017 and December 31, 2016 are 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, except quantities): Loan Description Quantity Amortized Cost Fair Value At March 31, 2017: Legacy CRE whole loans (1) 7 $ 143,922 $ 143,907 Mezzanine loans (2) 1 — — Middle market loans (3)(4) 7 52,382 40,441 Residential mortgage loans (5)(6)(7) 417 99,475 99,475 Total loans 432 $ 295,779 $ 283,823 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 (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 2018 and September 2021. (3) Includes a directly originated middle market loan with a LCOM value of $1.9 million and $1.9 million at March 31, 2017 and December 31, 2016 , respectively. In May 2017 the loan experienced payment default. The loan's fair market value was supported by a third party valuation mark calculated during the fourth quarter of 2016. (4) At March 31, 2017 and December 31, 2016, 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 March 31, 2017, approximately 45.5% of the Company's residential mortgage loans were originated in Georgia, 13.3% in Utah, 9.9% in California, 7.6% in Florida and 5.5% in Virginia. 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. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | Commercial Real Estate Debt Investments Commercial Finance Residential Mortgage Lending Corporate & Other (1)(2)(3) Total For the Three Months Ended March 31, 2017: Interest income: External customers $ 23,563 $ 159 $ 119 $ — $ 23,841 Other 21 1,605 — 4 1,630 Total interest income 23,584 1,764 119 4 25,471 Interest expense 9,187 — — 5,067 14,254 Net interest income 14,397 1,764 119 (5,063 ) 11,217 Other income from external customers — 909 — 19 928 Total revenues 14,397 2,673 119 (5,044 ) 12,145 Less: Segment operating expenses 108 218 123 3,019 3,468 General and administrative 774 345 137 2,607 3,863 Depreciation and amortization — 36 — 32 68 Impairment losses (4) — 177 — — 177 Provision (recovery) for loan and lease losses 860 139 — — 999 Equity in earnings of unconsolidated entities (358 ) (3 ) — — (361 ) Other (income) expense (6,954 ) 724 (19 ) (493 ) (6,742 ) Income (loss) from continuing operations before taxes 19,967 1,037 (122 ) (10,209 ) 10,673 Income tax (expense) benefit — (1,499 ) — — (1,499 ) Net income (loss) from continuing operations $ 19,967 $ (462 ) $ (122 ) $ (10,209 ) $ 9,174 Commercial Real Estate Debt Investments Commercial Finance Residential Mortgage Lending Corporate & Other (1)(2)(3) Total For the Three Months Ended March 31, 2016: Interest income: External customers $ 25,039 $ 642 $ 98 $ — $ 25,779 Other 19 1,210 — 8 1,237 Total interest income 25,058 1,852 98 8 27,016 Interest expense 8,224 — — 5,078 13,302 Net interest income 16,834 1,852 98 (5,070 ) 13,714 Other income from external customers — 571 — 18 589 Total revenues 16,834 2,423 98 (5,052 ) 14,303 Less: Segment operating expenses 66 266 33 4,161 4,526 General and administrative 392 349 60 2,841 3,642 Depreciation and amortization — 474 — 35 509 Provision (recovery) for loan and lease losses 68 (138 ) — — (70 ) Equity in earnings of unconsolidated entities (273 ) (1,949 ) — — (2,222 ) Other (income) expense 3 (1,383 ) (81 ) 523 (938 ) Income (loss) from continuing operations before taxes 16,578 4,804 86 (12,612 ) 8,856 Income tax (expense) benefit — 89 (116 ) 23 (4 ) Net income (loss) from continuing operations $ 16,578 $ 4,893 $ (30 ) $ (12,589 ) $ 8,852 (1) Includes interest expense for the Convertible Senior Notes of $4.4 million for the three months ended March 31, 2017 and $4.4 million for the three months ended March 31, 2016 . (2) Includes interest expense for the Unsecured Junior Subordinated Debentures of $637,000 for the three months ended March 31, 2017 and $641,000 for the three months ended March 31, 2016 . (3) Includes general corporate expenses and inter-segment eliminations not allocable to any particular operating segment. (4) Includes impairment on intangible assets in the Commercial Finance segment of $177,000 for the three months ended March 31, 2017 . The following table presents total assets by segment (in thousands): Total Assets (2) Commercial Real Estate Debt Investments Commercial Finance Residential Mortgage Lending Corporate & Other (1) Total March 31, 2017 $ 1,634,571 $ 142,508 $ 10,587 $ 14,572 $ 1,802,238 December 31, 2016 $ 1,624,779 $ 160,414 $ 12,460 $ 15,020 $ 1,812,673 (1) Includes assets not allocable to any particular operating segment. (2) Total assets does not include $193.6 million and $240.9 million of assets attributable to discontinued operations, of which, $33.5 million and $22.9 million of cash from continuing operations is included at March 31, 2017 and December 31, 2016 , respectively. |
ORGANIZATION (Details)
ORGANIZATION (Details) | 1 Months Ended | 3 Months Ended | ||
Jul. 31, 2014 | May 31, 2013 | Mar. 31, 2017 | Sep. 30, 2014 | |
Pelium | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage | 80.20% | 80.40% | ||
Whitney CLO I | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage in VIE | 68.30% | |||
Resource America | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage | 2.30% | |||
Resource America | CVC Capital Partners | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage | 24.00% | |||
RCC Real Estate | RREF 2006-1 | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage in VIE | 100.00% | |||
RCC Real Estate | RREF 2007-1 | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage in VIE | 100.00% | |||
RCC Real Estate | RCC CRE Notes 2013 | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage in VIE | 100.00% | |||
RCC Real Estate | Resource Capital Corp. 2014-CRE2, Ltd. | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage in VIE | 100.00% | |||
RCC Real Estate | Resource Capital Corp. 2015-CRE3, Ltd. | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage in VIE | 100.00% | |||
RCC Real Estate | RCC 2015-CRE4 | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage in VIE | 100.00% | |||
RCC Commercial | NEW NP, LLC | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage in VIE | 29.60% | |||
RCC Commercial | Apidos III | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage in VIE | 100.00% | |||
RCC Commercial II | Apidos Cinco | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage in VIE | 100.00% | |||
RCC Commercial II | Whitney CLO I | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage in VIE | 68.30% | |||
RCC Commercial II | Moselle | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage in VIE | 88.60% | |||
RCC Commercial III | Apidos I | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage in VIE | 90.00% | |||
RSO EquityCo, LLC | Apidos I | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage in VIE | 10.00% | |||
RSO EquityCo, LLC | Apidos CLO VIII Ltd. | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage in VIE | 10.00% | |||
RCC Residential, Inc. | Primary Capital Mortgage LLC | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage in VIE | 100.00% | |||
RCC Residential, Inc. | RCM Global LLC | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage in VIE | 63.80% | 21.60% | ||
RCC Depositor, LLC | RCC Opportunities Trust | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage in VIE | 100.00% | |||
Resource TRS III | Apidos CLO VIII Ltd. | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage in VIE | 33.00% | |||
Long Term Care Conversion Funding | RCC Resi Portfolio | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage in VIE | 70.90% | |||
Resource TRS, LLC | NEW NP, LLC | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage in VIE | 25.80% | |||
Resource TRS, Inc | NEW NP, LLC | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage in VIE | 44.60% | |||
NEW NP, LLC | Northport TRS, LLC | ||||
Variable Interest Entity [Line Items] | ||||
Ownership percentage in VIE | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN53
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | ||
Accounting Policies [Abstract] | |||
Cash balance in excess of federal deposit Insurance limit, amount | [1] | $ 153.7 | $ 111.6 |
Deferred tax assets | 60.9 | ||
Deferred tax assets, gross, tax expense impact | 17.1 | ||
Deferred tax asset, net | 28.3 | ||
Deferred tax assets, valuation allowance | 32.6 | ||
Decrease tax benefits | $ 13.2 | ||
[1] | March 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash4,841 3,308Interest receivable2,700 3,153CRE loans, pledged as collateral and net of allowances of $0.8 million and $0.8 million638,930 747,726Loans held for sale2 1,007Principal paydowns receivable13,900 5,820Investment securities available-for-sale, including securities pledged as collateral— 369Other assets186 58Total assets of consolidated VIEs$660,559 $761,441 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) | Mar. 31, 2017USD ($)PositionEntity | Nov. 25, 2016USD ($) | Nov. 22, 2016USD ($) | Apr. 25, 2016USD ($) | Jun. 24, 2015USD ($) | Feb. 01, 2015USD ($) | Jul. 09, 2014USD ($) | Nov. 16, 2011USD ($)shares | Mar. 31, 2017USD ($)PositionEntity | Jan. 31, 2017USD ($) | Feb. 28, 2015USD ($) | Sep. 30, 2014USD ($) | Jul. 31, 2014USD ($) | May 31, 2013 | Oct. 31, 2012 | Feb. 28, 2011USD ($)Entity | Mar. 31, 2017USD ($)PositionEntity | Mar. 31, 2016USD ($) | Mar. 31, 2017USD ($)PositionEntity | Dec. 31, 2013USD ($)shares | Dec. 31, 2016USD ($) | Nov. 30, 2016SecurityLoan | Jan. 01, 2016Entity | |
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||
Proceeds from sale of securities available-for-sale | $ 9,422,000 | $ 0 | ||||||||||||||||||||||
Value of collateral | $ 4,500,000 | |||||||||||||||||||||||
Investments in unconsolidated entities | [1] | $ 74,271,000 | $ 74,271,000 | 74,271,000 | $ 74,271,000 | 87,919,000 | ||||||||||||||||||
Borrowings | [2] | 1,177,195,000 | 1,177,195,000 | 1,177,195,000 | 1,177,195,000 | 1,191,456,000 | ||||||||||||||||||
Intangible assets | [1] | 0 | 0 | 0 | 0 | 213,000 | ||||||||||||||||||
Fee income | 909,000 | 572,000 | ||||||||||||||||||||||
Management Contracts | ||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||
Intangible assets | $ 0 | $ 0 | 0 | $ 0 | 213,000 | |||||||||||||||||||
Management Contracts | ||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||
Number of CLOs held by purchased entity | Entity | 5 | |||||||||||||||||||||||
Acquisition | $ 22,500,000 | |||||||||||||||||||||||
Fee income | $ 680,000 | 402,000 | ||||||||||||||||||||||
Investment in RCAM, Investment Two | ||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||
Impairment of intangible assets | $ 177,000 | $ 0 | ||||||||||||||||||||||
Resource America | ||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||
Payments to acquire additional interest in subsidiaries | $ 2,800,000 | |||||||||||||||||||||||
RCC Residential, Inc. | ||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||
Payments to acquire businesses and interest in affiliates | $ 23,500,000 | |||||||||||||||||||||||
Acquisition of membership interests | $ 15,000,000 | |||||||||||||||||||||||
Ownership percentage | 63.80% | |||||||||||||||||||||||
Pelium | ||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||
Acquisition of membership interests | $ 17,500,000 | |||||||||||||||||||||||
Ownership percentage | 80.20% | 80.20% | 80.40% | 80.20% | 80.20% | |||||||||||||||||||
Payments to acquire additional interest in subsidiaries | $ 2,500,000 | $ 2,500,000 | ||||||||||||||||||||||
Equity method investments | $ 12,200,000 | $ 12,200,000 | $ 12,200,000 | $ 12,200,000 | 25,993,000 | |||||||||||||||||||
Ownership interest | 10.00% | |||||||||||||||||||||||
Ownership percentage | 5 years | |||||||||||||||||||||||
Ownership interest increase | 20.00% | |||||||||||||||||||||||
Contributions | $ 40,000,000 | |||||||||||||||||||||||
Investments in unconsolidated entities | $ 12,201,000 | $ 12,201,000 | 12,201,000 | $ 12,201,000 | ||||||||||||||||||||
Pearlmark Mezz | ||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||
Acquisition of membership interests | $ 17,800,000 | |||||||||||||||||||||||
Ownership percentage | 47.70% | 47.70% | 47.70% | 47.70% | ||||||||||||||||||||
Other commitment | $ 50,000,000 | |||||||||||||||||||||||
Property, management fee, percent fee | 1.00% | |||||||||||||||||||||||
Management fee, invested capital, percent fee | 1.50% | |||||||||||||||||||||||
Rebate, percentage | 25.00% | |||||||||||||||||||||||
Investments in unconsolidated entities | $ 16,925,000 | $ 16,925,000 | $ 16,925,000 | $ 16,925,000 | 16,953,000 | |||||||||||||||||||
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 | 29.00% | 29.00% | 29.00% | 29.00% | ||||||||||||||||||||
Investments in unconsolidated entities | $ 43,125,000 | $ 36,300,000 | $ 43,125,000 | $ 43,125,000 | $ 43,125,000 | 42,960,000 | ||||||||||||||||||
Apidos Cinco | ||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||
Intended for sale, number of securities | Security | 1 | |||||||||||||||||||||||
Number of loans | Loan | 3 | |||||||||||||||||||||||
Proceeds from sale of securities available-for-sale | $ 22,700,000 | |||||||||||||||||||||||
RREF 2006-1 | ||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||
Value of collateral | $ 65,700,000 | |||||||||||||||||||||||
Debt instrument, collateral amount | 7,500,000 | |||||||||||||||||||||||
Gain on liquidation | $ 846,000 | |||||||||||||||||||||||
RREF 2007-1 | ||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||
Realized gain (loss) | $ 2,100,000 | |||||||||||||||||||||||
Value of collateral | 130,900,000 | |||||||||||||||||||||||
Debt instrument, collateral amount | $ 33,700,000 | |||||||||||||||||||||||
VIE, Primary Beneficiary | ||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||
Number of consolidated VIEs | Entity | 7 | 7 | 7 | 7 | 5 | |||||||||||||||||||
VIE, Primary Beneficiary | Management Contracts | ||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||
Preferred equity interest acquired | 66.60% | |||||||||||||||||||||||
VIE, Primary Beneficiary | Whitney CLO I | ||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||
Percentage of outstanding notes purchased | 68.30% | |||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | ||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||
Investments in unconsolidated entities | $ 74,270,000 | $ 74,270,000 | $ 74,270,000 | $ 74,270,000 | ||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | LCC | ||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||
Ownership percentage in VIE | 29.00% | 26.70% | ||||||||||||||||||||||
Preferred stock, coupon authorized | 8.00% | |||||||||||||||||||||||
Investments in unconsolidated entities | $ 43,100,000 | $ 43,100,000 | $ 43,100,000 | $ 43,100,000 | $ 43,000,000 | |||||||||||||||||||
Variable interest entity, number of board positions held by the company | Position | 2 | 2 | 2 | 2 | ||||||||||||||||||||
Variable interest entity, total number of board positions | Position | 6 | 6 | 6 | 6 | ||||||||||||||||||||
Investments in unconsolidated entities | $ 43,125,000 | $ 43,125,000 | $ 43,125,000 | $ 43,125,000 | ||||||||||||||||||||
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 | |||||||||||||||||||||||
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 | Investment in RCT I and II | ||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||
Ownership percentage in VIE | 100.00% | |||||||||||||||||||||||
Investments in unconsolidated entities | $ 1,500,000 | $ 1,500,000 | $ 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% | 3.00% | 3.00% | ||||||||||||||||||||
Borrowings | $ 25,800,000 | $ 25,800,000 | $ 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% | 3.00% | 3.00% | ||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Management Contracts | ||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||
Intangible assets | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||||||||||||||
Impairment of intangible assets | 177,000 | |||||||||||||||||||||||
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 | 10,000,000 | 10,000,000 | 10,000,000 | ||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Pelium | ||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||
Investment maximum | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | ||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Harvest CLO VII Limited | ||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||
Investments in unconsolidated entities | 4,300,000 | 4,300,000 | 4,300,000 | 4,300,000 | ||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Harvest CLO VIII Limited | ||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||
Investments in unconsolidated entities | 4,800,000 | 4,800,000 | 4,800,000 | 4,800,000 | ||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Harvest CLO XV | ||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||
Investments in unconsolidated entities | $ 11,100,000 | $ 11,100,000 | $ 11,100,000 | $ 11,100,000 | ||||||||||||||||||||
[1] | March 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash4,841 3,308Interest receivable2,700 3,153CRE loans, pledged as collateral and net of allowances of $0.8 million and $0.8 million638,930 747,726Loans held for sale2 1,007Principal paydowns receivable13,900 5,820Investment securities available-for-sale, including securities pledged as collateral— 369Other assets186 58Total assets of consolidated VIEs$660,559 $761,441 | |||||||||||||||||||||||
[2] | March 31, 2017 December 31, 2016Liabilities of consolidated VIEs included in the total liabilities above: Accounts payable and other liabilities$71 $133Accrued interest expense444 519Borrowings381,168 480,103Total liabilities of consolidated VIEs$381,683 $480,755 |
VARIABLE INTEREST ENTITIES (Sch
VARIABLE INTEREST ENTITIES (Schedule of Carrying Value of Assets and Liabilities of Consolidated VIEs) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
ASSETS: | ||
Restricted cash | $ 4,841 | $ 3,308 |
Loans, pledged as collateral | 13,900 | 5,820 |
Loans held for sale | 2 | 1,007 |
Investment securities available-for-sale, including securities pledged as collateral | 0 | 369 |
Other assets | 186 | 58 |
Total assets of consolidated VIEs | 660,559 | 761,441 |
LIABILITIES | ||
Borrowings | 381,168 | 480,103 |
Accrued interest expense | 444 | 519 |
Accounts payable and other liabilities | 71 | 133 |
Total liabilities of consolidated VIEs | 381,683 | $ 480,755 |
VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 4,841 | |
Loans, pledged as collateral | 638,930 | |
Loans held for sale | 2 | |
Interest receivable | 2,700 | |
Investment securities available-for-sale, including securities pledged as collateral | 13,900 | |
Other assets | 186 | |
Total assets of consolidated VIEs | 660,559 | |
LIABILITIES | ||
Borrowings | 381,168 | |
Accrued interest expense | 444 | |
Accounts payable and other liabilities | 71 | |
Total liabilities of consolidated VIEs | 381,683 | |
Restricted cash available for reinvestment in certain of the CDOs | 2,800 | |
Apidos I | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 239 | |
Loans, pledged as collateral | 0 | |
Loans held for sale | 0 | |
Interest receivable | 0 | |
Investment securities available-for-sale, including securities pledged as collateral | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 239 | |
LIABILITIES | ||
Borrowings | 0 | |
Accrued interest expense | 0 | |
Accounts payable and other liabilities | 0 | |
Total liabilities of consolidated VIEs | 0 | |
Apidos III | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 100 | |
Loans, pledged as collateral | 0 | |
Loans held for sale | 0 | |
Interest receivable | 0 | |
Investment securities available-for-sale, including securities pledged as collateral | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 100 | |
LIABILITIES | ||
Borrowings | 0 | |
Accrued interest expense | 0 | |
Accounts payable and other liabilities | 0 | |
Total liabilities of consolidated VIEs | 0 | |
Apidos Cinco | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 1,563 | |
Loans, pledged as collateral | 0 | |
Loans held for sale | 2 | |
Interest receivable | 0 | |
Investment securities available-for-sale, including securities pledged as collateral | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 1,565 | |
LIABILITIES | ||
Borrowings | 0 | |
Accrued interest expense | 0 | |
Accounts payable and other liabilities | 0 | |
Total liabilities of consolidated VIEs | 0 | |
Whitney CLO I | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 187 | |
Loans, pledged as collateral | 0 | |
Loans held for sale | 0 | |
Interest receivable | 0 | |
Investment securities available-for-sale, including securities pledged as collateral | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 187 | |
LIABILITIES | ||
Borrowings | 0 | |
Accrued interest expense | 0 | |
Accounts payable and other liabilities | 0 | |
Total liabilities of consolidated VIEs | 0 | |
RCC 2014-CRE2 Senior Notes | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 0 | |
Loans, pledged as collateral | 201,164 | |
Loans held for sale | 0 | |
Interest receivable | 825 | |
Investment securities available-for-sale, including securities pledged as collateral | 0 | |
Other assets | 16 | |
Total assets of consolidated VIEs | 202,005 | |
LIABILITIES | ||
Borrowings | 81,834 | |
Accrued interest expense | 86 | |
Accounts payable and other liabilities | 31 | |
Total liabilities of consolidated VIEs | 81,951 | |
RCC 2015-CRE3 | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 0 | |
Loans, pledged as collateral | 232,952 | |
Loans held for sale | 0 | |
Interest receivable | 1,024 | |
Investment securities available-for-sale, including securities pledged as collateral | 13,900 | |
Other assets | 154 | |
Total assets of consolidated VIEs | 248,030 | |
LIABILITIES | ||
Borrowings | 181,505 | |
Accrued interest expense | 222 | |
Accounts payable and other liabilities | 11 | |
Total liabilities of consolidated VIEs | 181,738 | |
RCC 2015-CRE4 | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 2,752 | |
Loans, pledged as collateral | 204,814 | |
Loans held for sale | 0 | |
Interest receivable | 851 | |
Investment securities available-for-sale, including securities pledged as collateral | 0 | |
Other assets | 16 | |
Total assets of consolidated VIEs | 208,433 | |
LIABILITIES | ||
Borrowings | 117,829 | |
Accrued interest expense | 136 | |
Accounts payable and other liabilities | 29 | |
Total liabilities of consolidated VIEs | $ 117,994 |
VARIABLE INTEREST ENTITIES (S56
VARIABLE INTEREST ENTITIES (Schedule of Classification, Carrying Value, and Maximum Exposure to Loss of Unconsolidated VIEs) (Details) - Variable Interest Entity, Not Primary Beneficiary $ in Thousands | Mar. 31, 2017USD ($) |
Variable Interest Entity [Line Items] | |
Investments in unconsolidated entities | $ 74,270 |
Investment securities, available-for-sale | 20,211 |
Total assets | 94,481 |
Borrowings | 51,548 |
Total liabilities | 51,548 |
Net asset (liability) | 42,933 |
Investments in Unconsolidated Entities | |
Variable Interest Entity [Line Items] | |
Maximum Exposure to Loss | 74,270 |
Available-for-sale Securities | |
Variable Interest Entity [Line Items] | |
Maximum Exposure to Loss | 20,211 |
LCC | |
Variable Interest Entity [Line Items] | |
Investments in unconsolidated entities | 43,125 |
Investment securities, available-for-sale | 0 |
Total assets | 43,125 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | 43,125 |
Unsecured Junior Subordinated Debentures | |
Variable Interest Entity [Line Items] | |
Investments in unconsolidated entities | 1,548 |
Investment securities, available-for-sale | 0 |
Total assets | 1,548 |
Borrowings | 51,548 |
Total liabilities | 51,548 |
Net asset (liability) | (50,000) |
Investment in Harvest CLOs | |
Variable Interest Entity [Line Items] | |
Investments in unconsolidated entities | 0 |
Investment securities, available-for-sale | 20,211 |
Total assets | 20,211 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | 20,211 |
RCM Global LLC | |
Variable Interest Entity [Line Items] | |
Investments in unconsolidated entities | 472 |
Investment securities, available-for-sale | 0 |
Total assets | 472 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | 472 |
Pelium Capital | |
Variable Interest Entity [Line Items] | |
Investments in unconsolidated entities | 12,201 |
Investment securities, available-for-sale | 0 |
Total assets | 12,201 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | 12,201 |
Pearlmark Mezz | |
Variable Interest Entity [Line Items] | |
Investments in unconsolidated entities | 16,924 |
Investment securities, available-for-sale | 0 |
Total assets | 16,924 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | $ 16,924 |
SUPPLEMENTAL CASH FLOW INFORM57
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Common Stock | ||
Non-cash continuing financing activities include the following: | ||
Distributions on common and preferred stock declared but not paid | $ 1,568 | $ 13,073 |
Preferred Stock | ||
Non-cash continuing financing activities include the following: | ||
Distributions on common and preferred stock declared but not paid | $ 4,009 | $ 4,010 |
LOANS (Summary of Loans) (Detai
LOANS (Summary of Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Receivables with Imputed Interest [Line Items] | ||
Principal, Allowance for loan loss | $ (4,689) | $ (3,829) |
Unamortized (Discount) Premium, Allowance for loan loss | 0 | 0 |
Carrying Value, Allowance for loan loss | (4,689) | (3,829) |
Principal, Total loans held for investment, net of allowance | 1,301,076 | 1,292,097 |
Unamortized (Discount) Premium, net, Total loans held for investment, net of allowance | (5,922) | (5,819) |
Carrying Value, Total loans held for investment, net of allowance | 1,295,154 | 1,286,278 |
Principal, loans held for sale | 2 | 1,007 |
Principal, Total loans, net | 1,301,078 | 1,293,104 |
Carrying Value, Total loans, net | 1,295,156 | 1,287,285 |
Deferred amendment fees | 125 | 4 |
Syndicated Corporate Loans | ||
Receivables with Imputed Interest [Line Items] | ||
Principal, loans held for sale | 2 | 1,007 |
Commercial Real Estate Debt Investments | ||
Receivables with Imputed Interest [Line Items] | ||
Loan origination fees | 5,800 | 5,800 |
Commercial Real Estate Debt Investments | CRE whole loans | ||
Receivables with Imputed Interest [Line Items] | ||
Principal, gross | 1,305,765 | 1,295,926 |
Unamortized (Discount) Premium, net | (5,922) | (5,819) |
Carrying Value, gross | $ 1,299,843 | $ 1,290,107 |
LOANS (Commercial Real Estate L
LOANS (Commercial Real Estate Loans Held for Investment) (Details) $ in Thousands | May 10, 2017Loan | Mar. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($)Loan |
Receivables with Imputed Interest [Line Items] | |||
Amortized Cost | $ 7,000 | $ 7,000 | |
Allowance for loan loss | $ 4,689 | $ 3,829 | |
Commercial Real Estate Debt Investments | |||
Receivables with Imputed Interest [Line Items] | |||
Quantity | Loan | 67 | 67 | |
Amortized Cost | $ 1,299,843 | $ 1,290,107 | |
Whole loans, floating rate | |||
Receivables with Imputed Interest [Line Items] | |||
Loans held for investment, unfunded loan commitments | $ 62,400 | $ 55,500 | |
Whole loans, floating rate | Commercial Real Estate Debt Investments | |||
Receivables with Imputed Interest [Line Items] | |||
Quantity | Loan | 67 | 67 | |
Amortized Cost | $ 1,299,843 | $ 1,290,107 | |
Whole loans, floating rate | Commercial Real Estate Debt Investments | Subsequent Event | |||
Receivables with Imputed Interest [Line Items] | |||
Number of loans paid off | Loan | 1 | ||
Not included in total | |||
Receivables with Imputed Interest [Line Items] | |||
Allowance for loan loss | $ 4,700 | $ 3,800 | |
Minimum | Whole loans, floating rate | Commercial Real Estate Debt Investments | |||
Receivables with Imputed Interest [Line Items] | |||
Basis spread on variable rate | 3.75% | 3.75% | |
Maximum | Whole loans, floating rate | Commercial Real Estate Debt Investments | |||
Receivables with Imputed Interest [Line Items] | |||
Basis spread on variable rate | 6.25% | 6.45% |
LOANS (Commercial Real Estate60
LOANS (Commercial Real Estate Loans, at Amortized Cost) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Receivables with Imputed Interest [Line Items] | ||
Total | $ 7,000 | $ 7,000 |
Commercial Real Estate Debt Investments | ||
Receivables with Imputed Interest [Line Items] | ||
2,017 | 20,000 | 7,000 |
2,018 | 24,417 | 24,476 |
2019 and Thereafter | 1,255,426 | 1,258,631 |
Total | 1,299,843 | 1,290,107 |
Commercial Real Estate Debt Investments | CRE whole loans | ||
Receivables with Imputed Interest [Line Items] | ||
2,017 | 20,000 | 7,000 |
2,018 | 24,417 | 24,476 |
2019 and Thereafter | 1,255,426 | 1,258,631 |
Total | $ 1,299,843 | $ 1,290,107 |
LOANS (Narrative) (Details)
LOANS (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Variable Interest Entity [Line Items] | ||
Loans receivable–related party | $ 13.9 | $ 19.3 |
Commercial Real Estate Debt Investments | TEXAS | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 30.30% | 30.70% |
Commercial Real Estate Debt Investments | CALIFORNIA | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 21.40% | 19.20% |
Commercial Real Estate Debt Investments | GEORGIA | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 8.70% | 7.30% |
LOANS (Lien position and status
LOANS (Lien position and status of our bank and middle market loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Second lien loans held for sale | $ 2 | $ 1,007 |
Total | 2 | 1,007 |
Apidos Cinco | ||
Related Party Transaction [Line Items] | ||
Total | 2 | 1,007 |
Second lien | ||
Related Party Transaction [Line Items] | ||
Second lien loans held for sale | 2 | 1,007 |
Second lien | Apidos Cinco | ||
Related Party Transaction [Line Items] | ||
Second lien loans held for sale | $ 2 | $ 1,007 |
LOANS (Syndicated Corporate Loa
LOANS (Syndicated Corporate Loans, at Amortized Cost) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 7,000 | $ 7,000 |
Syndicated Corporate Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Less than one year | 2 | 221 |
Greater than one year and less than five years | 0 | 786 |
Five years or greater | 0 | 0 |
Total | $ 2 | $ 1,007 |
LOANS (Allocation of Allowance
LOANS (Allocation of Allowance for Loan Loss for Commercial and Bank Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Receivables with Imputed Interest [Line Items] | ||
Allowance for Loan Loss | $ 4,689 | $ 3,829 |
CRE whole loans | ||
Receivables with Imputed Interest [Line Items] | ||
Allowance for Loan Loss | $ 4,689 | $ 3,829 |
Percentage of Total Allowance | 100.00% | 100.00% |
FINANCING RECEIVABLES (Allowanc
FINANCING RECEIVABLES (Allowance for Loan Losses and Recorded Investments in Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses | |||
Allowance for losses at beginning of period | $ 4,294 | $ 43,586 | $ 43,586 |
Provision (recovery) for loan and lease losses | 999 | (70) | 17,765 |
Loans charged-off | 402 | ||
Recoveries | (15,763) | ||
Deconsolidation of VIEs | (41,696) | ||
Allowance for losses at end of period | 5,293 | 4,294 | |
Allowance for losses, ending balance: | |||
Individually evaluated for impairment | 3,104 | 2,965 | |
Collectively evaluated for impairment | 2,189 | 1,329 | |
Loans and Leases, ending balance: | |||
Individually evaluated for impairment | 7,953 | 7,992 | |
Collectively evaluated for impairment | 1,292,843 | 1,283,107 | |
Loans acquired with deteriorated credit quality | 1,301,076 | 1,292,097 | |
Receivables Acquired with Deteriorated Credit Quality | |||
Allowance for losses, ending balance: | |||
Loans acquired with deteriorated credit quality | 0 | 0 | |
Loans and Leases, ending balance: | |||
Loans acquired with deteriorated credit quality | 0 | 0 | |
Commercial Real Estate Loans | |||
Financing Receivable, Allowance for Credit Losses | |||
Allowance for losses at beginning of period | 3,829 | 41,839 | 41,839 |
Provision (recovery) for loan and lease losses | 860 | 18,167 | |
Loans charged-off | 0 | ||
Recoveries | (15,763) | ||
Deconsolidation of VIEs | (40,414) | ||
Allowance for losses at end of period | 4,689 | 3,829 | |
Allowance for losses, ending balance: | |||
Individually evaluated for impairment | 2,500 | 2,500 | |
Collectively evaluated for impairment | 2,189 | 1,329 | |
Loans and Leases, ending balance: | |||
Individually evaluated for impairment | 7,000 | 7,000 | |
Collectively evaluated for impairment | 1,292,843 | 1,283,107 | |
Loans acquired with deteriorated credit quality | 1,443,750 | 1,448,285 | |
Commercial Real Estate Loans | Receivables Acquired with Deteriorated Credit Quality | |||
Allowance for losses, ending balance: | |||
Loans acquired with deteriorated credit quality | 0 | 0 | |
Loans and Leases, ending balance: | |||
Loans acquired with deteriorated credit quality | 0 | 0 | |
Syndicated Corporate Loans | |||
Financing Receivable, Allowance for Credit Losses | |||
Allowance for losses at beginning of period | 0 | 1,282 | 1,282 |
Provision (recovery) for loan and lease losses | 0 | (402) | |
Loans charged-off | 402 | ||
Recoveries | 0 | ||
Deconsolidation of VIEs | (1,282) | ||
Allowance for losses at end of period | 0 | 0 | |
Allowance for losses, ending balance: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 0 | 0 | |
Loans and Leases, ending balance: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 0 | 0 | |
Loans acquired with deteriorated credit quality | 2 | 1,007 | |
Syndicated Corporate Loans | Receivables Acquired with Deteriorated Credit Quality | |||
Allowance for losses, ending balance: | |||
Loans acquired with deteriorated credit quality | 0 | 0 | |
Loans and Leases, ending balance: | |||
Loans acquired with deteriorated credit quality | 0 | 0 | |
Direct Financing Leases | |||
Financing Receivable, Allowance for Credit Losses | |||
Allowance for losses at beginning of period | 465 | $ 465 | 465 |
Provision (recovery) for loan and lease losses | 139 | 0 | |
Loans charged-off | 0 | ||
Recoveries | 0 | ||
Deconsolidation of VIEs | 0 | ||
Allowance for losses at end of period | 604 | 465 | |
Allowance for losses, ending balance: | |||
Individually evaluated for impairment | 604 | 465 | |
Collectively evaluated for impairment | 0 | 0 | |
Loans and Leases, ending balance: | |||
Individually evaluated for impairment | 953 | 992 | |
Collectively evaluated for impairment | 0 | 0 | |
Direct Financing Leases | Receivables Acquired with Deteriorated Credit Quality | |||
Allowance for losses, ending balance: | |||
Loans acquired with deteriorated credit quality | 0 | 0 | |
Loans and Leases, ending balance: | |||
Loans acquired with deteriorated credit quality | $ 0 | $ 0 |
FINANCING RECEIVABLES (Credit R
FINANCING RECEIVABLES (Credit Risk Profiles) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($)Loan | |
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | $ 1,301,076,000 | $ 1,292,097,000 |
Principal, loans held for sale | $ 2,000 | $ 1,007,000 |
Number of defaulted loans | Loan | 2 | 2 |
Interest income | $ 0 | $ 0 |
CRE whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 1,299,843,000 | 1,290,107,000 |
CRE whole loans | Rating 1 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 1,259,153,000 | 1,186,292,000 |
CRE whole loans | Rating 2 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 33,690,000 | 96,815,000 |
CRE whole loans | Rating 3 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
CRE whole loans | Rating 4 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 7,000,000 | 7,000,000 |
CRE whole loans | Held for Sale | ||
Schedule Of Financing Receivables [Line Items] | ||
Principal, loans held for sale | 0 | 0 |
Legacy CRE whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | $ 143,907,000 | 158,178,000 |
Number of defaulted loans | Loan | 1 | |
Legacy CRE whole loans | Rating 1 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | $ 0 | 0 |
Legacy CRE whole loans | Rating 2 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Legacy CRE whole loans | Rating 3 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Legacy CRE whole loans | Rating 4 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Legacy CRE whole loans | Held for Sale | ||
Schedule Of Financing Receivables [Line Items] | ||
Principal, loans held for sale | 143,907,000 | 158,178,000 |
Commercial Real Estate Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 1,443,750,000 | 1,448,285,000 |
Commercial Real Estate Loans | Rating 1 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 1,259,153,000 | 1,186,292,000 |
Commercial Real Estate Loans | Rating 2 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 33,690,000 | 96,815,000 |
Commercial Real Estate Loans | Rating 3 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Commercial Real Estate Loans | Rating 4 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 7,000,000 | 7,000,000 |
Commercial Real Estate Loans | Held for Sale | ||
Schedule Of Financing Receivables [Line Items] | ||
Principal, loans held for sale | 143,907,000 | 158,178,000 |
Syndicated Corporate Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 2,000 | 1,007,000 |
Syndicated Corporate Loans | Rating 1 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Syndicated Corporate Loans | Rating 2 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Syndicated Corporate Loans | Rating 3 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Syndicated Corporate Loans | Rating 4 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Syndicated Corporate Loans | Rating 5 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Syndicated Corporate Loans | Held for Sale | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 785,800 | |
Principal, loans held for sale | $ 2,000 | $ 1,007,000 |
FINANCING RECEIVABLES Narrative
FINANCING RECEIVABLES Narrative (Details) | Mar. 31, 2017USD ($)Loan | Feb. 28, 2017USD ($) | Mar. 31, 2016Loan | Mar. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($)Loan | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)Loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans held for investment, amortized cost | $ 7,000,000 | $ 7,000,000 | $ 7,000,000 | $ 7,000,000 | ||||
Value of collateral | 4,500,000 | 4,500,000 | ||||||
Loans acquired with deteriorated credit quality | $ 1,301,076,000 | 1,301,076,000 | $ 1,292,097,000 | $ 1,292,097,000 | ||||
Proceeds from sale of securities available-for-sale | $ 9,422,000 | $ 0 | ||||||
Number of defaulted loans | Loan | 2 | 2 | 2 | 2 | ||||
Direct financing leases, net of allowances | [1] | $ 349,000 | $ 349,000 | $ 527,000 | $ 527,000 | |||
Industry Grouping of Hotel | Legacy CRE Whole Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Concentration of loan portfolio risk | 49.00% | 49.00% | 54.00% | 54.00% | ||||
Industry Grouping of Retail Stores | Legacy CRE Whole Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Concentration of loan portfolio risk | 43.00% | 43.00% | 39.00% | 39.00% | ||||
Office Building | Legacy CRE Whole Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Concentration of loan portfolio risk | 8.00% | 8.00% | 7.00% | 7.00% | ||||
CALIFORNIA | Legacy CRE Whole Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Concentration of loan portfolio risk | 92.00% | 92.00% | 84.00% | 84.00% | ||||
ARIZONA | Legacy CRE Whole Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Concentration of loan portfolio risk | 8.00% | 8.00% | 16.00% | 16.00% | ||||
Legacy CRE Whole Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Number of defaulted loans | Loan | 3 | 3 | ||||||
Hotel | Legacy CRE 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 | Legacy CRE 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 | ||||||
Proceeds from sale of securities available-for-sale | $ 21,300,000 | |||||||
Realized gain (loss) | $ 7,000,000 | |||||||
Hotel | Legacy CRE 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 | Legacy CRE 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 | ||||||
Mezzanine loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Trigger items, number of loans held for sale | Loan | 1 | 1 | ||||||
Loans acquired with deteriorated credit quality | $ 0 | $ 0 | ||||||
Legacy CRE Whole Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans acquired with deteriorated credit quality | $ 158,200,000 | $ 158,200,000 | ||||||
Number of defaulted loans | Loan | 2 | 2 | ||||||
Loans in default | Loan | 2 | 0 | ||||||
Syndicated Corporate Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans held for investment, amortized cost | $ 2,000 | $ 2,000 | $ 1,007,000 | $ 1,007,000 | ||||
Loans acquired with deteriorated credit quality | 2,000 | 2,000 | $ 1,007,000 | $ 1,007,000 | ||||
Direct Financing Leases | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Provision for loan and lease losses | 139,000 | |||||||
Commercial Real Estate Debt Investments | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Number of loans, appraisals | Loan | 8 | 8 | ||||||
Loan One | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Financing receivable, allowance for credit losses | 0 | $ 2,500,000 | ||||||
Legacy CRE Whole Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Value of collateral | $ 96,400,000 | $ 96,400,000 | $ 110,700,000 | $ 110,700,000 | ||||
Financing receivable, allowance for credit losses | $ 15,800,000 | |||||||
Number of loans | Loan | 4 | 4 | ||||||
Rating 4 | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Number of loans, trigger items | Loan | 1 | 1 | 1 | 1 | ||||
Rating 4 | Syndicated Corporate Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans acquired with deteriorated credit quality | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Rating 5 | Syndicated Corporate Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans acquired with deteriorated credit quality | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Rating 5 | Legacy CRE Whole Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Number of loans | Loan | 4 | 4 | 5 | 5 | ||||
Rating 1 and 2 | Legacy CRE Whole Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans acquired with deteriorated credit quality | $ 47,500,000 | $ 47,500,000 | ||||||
Number of loans | Loan | 3 | 3 | ||||||
Nonperforming Financing Receivable | Syndicated Corporate Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans acquired with deteriorated credit quality | $ 2,000 | $ 2,000 | $ 221,000 | $ 221,000 | ||||
Held for Sale | Syndicated Corporate Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans acquired with deteriorated credit quality | $ 785,800 | 785,800 | ||||||
Proceeds from sale of securities available-for-sale | $ 877,800 | |||||||
Number of loans sold | Loan | 1 | |||||||
[1] | March 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash4,841 3,308Interest receivable2,700 3,153CRE loans, pledged as collateral and net of allowances of $0.8 million and $0.8 million638,930 747,726Loans held for sale2 1,007Principal paydowns receivable13,900 5,820Investment securities available-for-sale, including securities pledged as collateral— 369Other assets186 58Total assets of consolidated VIEs$660,559 $761,441 |
FINANCING RECEIVABLES (Loan Por
FINANCING RECEIVABLES (Loan Portfolio Aging Analysis) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($)Loan | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 68,538 | $ 61,665 |
Current | 1,376,165 | 1,387,626 |
Total Loans Receivable | 1,444,703 | 1,449,291 |
Total Loans Greater Than 90 days and accruing | 0 | 0 |
Individually evaluated for impairment | 3,104 | 2,965 |
CRE whole loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 7,000 | 0 |
Current | 1,292,843 | 1,290,107 |
Total Loans Receivable | 1,299,843 | 1,290,107 |
Total Loans Greater Than 90 days and accruing | $ 0 | 0 |
Number of impaired loans | Loan | 1 | |
Individually evaluated for impairment | $ 7,000 | |
Provision for loan loss | 2,500 | |
Legacy CRE Whole Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 61,400 | 61,400 |
Current | 82,507 | 96,792 |
Total Loans Receivable | 143,907 | 158,192 |
Total Loans Greater Than 90 days and accruing | $ 0 | 0 |
Number of impaired loans | Loan | 2 | |
Individually evaluated for impairment | $ 61,400 | 61,400 |
Syndicated Corporate Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
Current | 0 | 0 |
Total Loans Receivable | 0 | 0 |
Total Loans Greater Than 90 days and accruing | 0 | 0 |
Individually evaluated for impairment | 0 | 0 |
Direct Financing Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 138 | 265 |
Current | 815 | 727 |
Total Loans Receivable | 953 | 992 |
Total Loans Greater Than 90 days and accruing | 0 | 0 |
30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 7,000 | 61,537 |
30-59 Days | CRE whole loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 7,000 | 0 |
30-59 Days | Legacy CRE Whole Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | $ 61,400 |
Number of impaired loans | Loan | 2 | |
30-59 Days | Syndicated Corporate Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | $ 0 |
30-59 Days | Direct Financing Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 137 |
60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
60-89 Days | CRE whole loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
60-89 Days | Legacy CRE Whole Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
60-89 Days | Syndicated Corporate Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
60-89 Days | Direct Financing Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 61,538 | 128 |
Greater than 90 Days | CRE whole loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
Greater than 90 Days | Legacy CRE Whole Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 61,400 | 0 |
Greater than 90 Days | Syndicated Corporate Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
Greater than 90 Days | Direct Financing Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 138 | $ 128 |
FINANCING RECEIVABLES (Impaired
FINANCING RECEIVABLES (Impaired Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance | $ 7,000 | $ 7,000 |
Unpaid Principal Balance | 7,000 | 7,000 |
Specific Allowance | (2,500) | (2,500) |
Average Investment in Impaired Loans | 7,000 | 7,000 |
Interest Income Recognized | 0 | 480 |
CRE whole loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, Loans without a specific valuation allowance | 0 | 0 |
Recorded Balance, Loans with a specific valuation allowance | 7,000 | 7,000 |
Recorded Balance | 7,000 | 7,000 |
Unpaid Principal Balance, Loans without a specific valuation allowance | 0 | 0 |
Unpaid Principal Balance, Loans with a specific valuation allowance | 7,000 | 7,000 |
Unpaid Principal Balance | 7,000 | 7,000 |
Specific Allowance | (2,500) | (2,500) |
Average Investment in Impaired Loans, Loans without a specific valuation allowance | 0 | 0 |
Average Investment in Impaired Loans, Loans with specific valuation allowance | 7,000 | 7,000 |
Average Investment in Impaired Loans | 7,000 | 7,000 |
Interest Income Recognized, Loans with a specific valuation allowance | 0 | 480 |
Interest Income Recognized | 0 | 480 |
Interest Income Recognized, Loans without a specific valuation allowance | 0 | 0 |
Syndicated corporate loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, Loans without a specific valuation allowance | 0 | 0 |
Recorded Balance, Loans with a specific valuation allowance | 0 | 0 |
Recorded Balance | 0 | 0 |
Unpaid Principal Balance, Loans without a specific valuation allowance | 0 | 0 |
Unpaid Principal Balance, Loans with a specific valuation allowance | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Specific Allowance | 0 | 0 |
Average Investment in Impaired Loans, Loans without a specific valuation allowance | 0 | 0 |
Average Investment in Impaired Loans, Loans with specific valuation allowance | 0 | 0 |
Average Investment in Impaired Loans | 0 | 0 |
Interest Income Recognized, Loans with a specific valuation allowance | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Interest Income Recognized, Loans without a specific valuation allowance | $ 0 | $ 0 |
FINANCING RECEIVABLES (Loan P70
FINANCING RECEIVABLES (Loan Portfolio Troubled-debt Restructurings "TDR") (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)Loan | Mar. 31, 2016USD ($)Loan | |
Troubled debt restructuring [Abstract] | ||
Number of Loans | Loan | 2 | 3 |
Pre-Modification Outstanding Recorded Balance | $ 61,400 | $ 29,459 |
Post-Modification Outstanding Recorded Balance | $ 61,400 | $ 29,459 |
Legacy CRE Whole Loans | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | Loan | 2 | |
Pre-Modification Outstanding Recorded Balance | $ 61,400 | |
Post-Modification Outstanding Recorded Balance | $ 61,400 | |
CRE whole loans | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | Loan | 3 | |
Pre-Modification Outstanding Recorded Balance | $ 29,459 | |
Post-Modification Outstanding Recorded Balance | $ 29,459 |
INVESTMENT SECURITIES, TRADIN71
INVESTMENT SECURITIES, TRADING (Schedule of Investment Trading Securities at Fair Value) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost | $ 2,891 | $ 6,242 | |
Unrealized Gains | 0 | 920 | |
Unrealized Losses | (2,670) | (2,670) | |
Fair Value | [1] | 221 | 4,492 |
Structured notes | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost | 2,891 | 6,242 | |
Unrealized Gains | 0 | 920 | |
Unrealized Losses | (2,670) | (2,670) | |
Fair Value | $ 221 | $ 4,492 | |
[1] | March 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash4,841 3,308Interest receivable2,700 3,153CRE loans, pledged as collateral and net of allowances of $0.8 million and $0.8 million638,930 747,726Loans held for sale2 1,007Principal paydowns receivable13,900 5,820Investment securities available-for-sale, including securities pledged as collateral— 369Other assets186 58Total assets of consolidated VIEs$660,559 $761,441 |
INVESTMENT SECURITIES, TRADIN72
INVESTMENT SECURITIES, TRADING (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017USD ($)Security | Mar. 31, 2016Security | Dec. 31, 2016Security | |
Investments, Debt and Equity Securities [Abstract] | |||
Trading securities, number sold | 1 | 0 | |
Trading securities, realized gain | $ | $ 9 | ||
Number of trading securities held | 5 | 6 |
INVESTMENT SECURITIES AVAILAB73
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Schedule of Available-for-Sale Securities, Fair Value) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 114,800 | $ 121,416 |
Unrealized Gains | 4,805 | 4,490 |
Unrealized Losses | (1,074) | (938) |
Fair Value | 118,531 | 124,968 |
Assets pledged as collateral | 91,100 | 97,500 |
ABS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 21,374 | 21,365 |
Unrealized Gains | 4,161 | 3,988 |
Unrealized Losses | (90) | (73) |
Fair Value | 25,445 | 25,280 |
CMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 91,990 | 98,525 |
Unrealized Gains | 556 | 425 |
Unrealized Losses | (956) | (863) |
Fair Value | 91,590 | 98,087 |
RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,436 | 1,526 |
Unrealized Gains | 88 | 77 |
Unrealized Losses | (28) | (2) |
Fair Value | $ 1,496 | $ 1,601 |
INVESTMENT SECURITIES AVAILAB74
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Estimated Maturities of Available-For-Sale Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Less than one year | $ 80,791 | $ 80,801 |
Greater than one year and less than five years | 10,684 | 17,197 |
Greater than five years and less than ten years | 23,325 | 9,622 |
Greater than ten years | 13,796 | |
Total | 114,800 | 121,416 |
Fair Value | ||
Less than one year | 80,119 | 80,325 |
Greater than one year and less than five years | 11,169 | 17,408 |
Greater than five years and less than ten years | 27,243 | 12,936 |
Greater than ten years | 14,299 | |
Total | $ 118,531 | $ 124,968 |
Weighted Average Coupon | ||
Less than one year | 5.48% | 5.60% |
Greater than one year and less than five years | 4.91% | 4.52% |
Greater than five years and less than ten years | 11.13% | 10.68% |
Greater than ten years | 10.39% | |
Total | 6.57% | 6.39% |
INVESTMENT SECURITIES AVAILAB75
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Gross Unrealized Loss and Fair Value of Securities) (Details) $ in Thousands | Mar. 31, 2017USD ($)Security | Dec. 31, 2016USD ($)Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, less than 12 months | $ 21,938 | $ 31,531 |
Unrealized Losses, less than 12 months | $ (393) | $ (438) |
Number of Securities, less than 12 months | Security | 11 | 11 |
Fair value, more than 12 months | $ 20,799 | $ 27,444 |
Unrealized losses, more than 12 Months | $ (680) | $ (500) |
Number of Securities, more than 12 Months | Security | 12 | 16 |
Fair value, total | $ 42,737 | $ 58,975 |
Unrealized losses, total | $ (1,073) | $ (938) |
Number of Securities, total | Security | 23 | 27 |
ABS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, less than 12 months | $ 1,176 | $ 0 |
Unrealized Losses, less than 12 months | $ (90) | $ 0 |
Number of Securities, less than 12 months | Security | 1 | 0 |
Fair value, more than 12 months | $ 0 | $ 828 |
Unrealized losses, more than 12 Months | $ 0 | $ (73) |
Number of Securities, more than 12 Months | Security | 0 | 1 |
Fair value, total | $ 1,176 | $ 828 |
Unrealized losses, total | $ (90) | $ (73) |
Number of Securities, total | Security | 1 | 1 |
CMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, less than 12 months | $ 19,950 | $ 30,869 |
Unrealized Losses, less than 12 months | $ (275) | $ (436) |
Number of Securities, less than 12 months | Security | 8 | 10 |
Fair value, more than 12 months | $ 20,799 | $ 26,616 |
Unrealized losses, more than 12 Months | $ (680) | $ (427) |
Number of Securities, more than 12 Months | Security | 12 | 15 |
Fair value, total | $ 40,749 | $ 57,485 |
Unrealized losses, total | $ (955) | $ (863) |
Number of Securities, total | Security | 20 | 25 |
RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, less than 12 months | $ 812 | $ 662 |
Unrealized Losses, less than 12 months | $ (28) | $ (2) |
Number of Securities, less than 12 months | Security | 2 | 1 |
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 | $ 812 | $ 662 |
Unrealized losses, total | $ (28) | $ (2) |
Number of Securities, total | Security | 2 | 1 |
INVESTMENT SECURITIES AVAILAB76
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Available-for-sale Securities [Abstract] | ||
Other than temporary impairment losses | $ 0 | $ 0 |
INVESTMENTS IN UNCONSOLIDATED77
INVESTMENTS IN UNCONSOLIDATED ENTITIES - Schedule of Unconsolidated Entities (Details) - USD ($) | 3 Months Ended | ||||||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Jun. 24, 2015 | Sep. 30, 2014 | Nov. 16, 2011 | ||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | |||||||
Investments in Unconsolidated Entities | [1] | $ 74,271,000 | $ 87,919,000 | ||||
Equity in Earnings of Unconsolidated Entities | (276,000) | $ 1,581,000 | |||||
Return on investment from investments in unconsolidated entities | $ 6,292,000 | 0 | |||||
RRE VIP Borrower, LLC | |||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | |||||||
Ownership % at March 31, 2017 | 0.00% | ||||||
Investments in Unconsolidated Entities | $ 0 | 0 | |||||
Equity in Earnings of Unconsolidated Entities | $ 0 | 25,000 | |||||
Investment in LCC Preferred Stock | |||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | |||||||
Ownership % at March 31, 2017 | 29.00% | ||||||
Investments in Unconsolidated Entities | $ 43,125,000 | 42,960,000 | $ 36,300,000 | ||||
Equity in Earnings of Unconsolidated Entities | $ 165,000 | 1,411,000 | |||||
Pearlmark Mezz | |||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | |||||||
Ownership % at March 31, 2017 | 47.70% | ||||||
Investments in Unconsolidated Entities | $ 16,925,000 | 16,953,000 | |||||
Equity in Earnings of Unconsolidated Entities | $ 358,000 | 248,000 | |||||
Other commitment | $ 50,000,000 | ||||||
RCM Global LLC | |||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | |||||||
Ownership % at March 31, 2017 | 21.60% | ||||||
Investments in Unconsolidated Entities | $ 472,000 | 465,000 | |||||
Equity in Earnings of Unconsolidated Entities | $ (4,000) | 177,000 | |||||
Pelium | |||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | |||||||
Ownership % at March 31, 2017 | 80.20% | 80.40% | |||||
Investments in Unconsolidated Entities | $ 12,201,000 | ||||||
Equity method investments | 12,200,000 | 25,993,000 | |||||
Equity in Earnings of Unconsolidated Entities | (158,000) | 361,000 | |||||
Return on investment from investments in unconsolidated entities | 13,600,000 | ||||||
Investments in Unconsolidated Entities | |||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | |||||||
Investments in Unconsolidated Entities | 72,723,000 | 86,371,000 | |||||
Equity in Earnings of Unconsolidated Entities | $ 361,000 | 2,222,000 | |||||
Investment in RCT I and II | |||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | |||||||
Ownership % at March 31, 2017 | 3.00% | ||||||
Investments in Unconsolidated Entities | $ 1,548,000 | $ 1,548,000 | |||||
Equity in Earnings of Unconsolidated Entities | $ (637,000) | $ (641,000) | |||||
[1] | March 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash4,841 3,308Interest receivable2,700 3,153CRE loans, pledged as collateral and net of allowances of $0.8 million and $0.8 million638,930 747,726Loans held for sale2 1,007Principal paydowns receivable13,900 5,820Investment securities available-for-sale, including securities pledged as collateral— 369Other assets186 58Total assets of consolidated VIEs$660,559 $761,441 |
INTANGIBLE ASSETS (Intangible A
INTANGIBLE ASSETS (Intangible Assets) (Details) | 3 Months Ended | |
Mar. 31, 2017USD ($) | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Balance, end of period | $ 0 | [1] |
Management Contracts | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Balance, beginning of period | 213,000 | |
Additions | 0 | |
Sales | 0 | |
Amortization | (36,000) | |
Total before impairment losses | 177,000 | |
Impairment losses | (177,000) | |
Balance, end of period | $ 0 | |
[1] | March 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash4,841 3,308Interest receivable2,700 3,153CRE loans, pledged as collateral and net of allowances of $0.8 million and $0.8 million638,930 747,726Loans held for sale2 1,007Principal paydowns receivable13,900 5,820Investment securities available-for-sale, including securities pledged as collateral— 369Other assets186 58Total assets of consolidated VIEs$660,559 $761,441 |
INTANGIBLE ASSETS (Narrative) (
INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Fee income | $ 909 | $ 572 |
Amortization of MSRs | 36 | 474 |
Management Contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment losses | 177 | |
Management Contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Fee income | $ 680 | $ 402 |
BORROWINGS (Schedule of Debt) (
BORROWINGS (Schedule of Debt) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | ||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 1,190,530 | $ 1,207,559 | |
Unamortized Issuance Costs and Discounts | 13,335 | 16,103 | |
Outstanding Borrowings | $ 1,177,195 | $ 1,191,456 | |
Weighted Average Borrowing Rate | 3.96% | 3.67% | |
Weighted Average Remaining Maturity | 6 years 8 months 12 days | 8 years | |
Value of Collateral | $ 1,498,264 | $ 1,482,399 | |
Accrued interest costs | [1] | 4,629 | 4,979 |
RCC 2014-CRE2 Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 82,936 | 131,936 | |
Unamortized Issuance Costs and Discounts | 1,102 | 1,871 | |
Outstanding Borrowings | $ 81,834 | $ 130,065 | |
Weighted Average Borrowing Rate | 2.67% | 2.19% | |
Weighted Average Remaining Maturity | 15 years 1 month 6 days | 15 years 3 months 18 days | |
Value of Collateral | $ 201,255 | $ 250,255 | |
RCC 2015-CRE3 Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 183,613 | 196,112 | |
Unamortized Issuance Costs and Discounts | 2,108 | 2,358 | |
Outstanding Borrowings | $ 181,505 | $ 193,754 | |
Weighted Average Borrowing Rate | 3.11% | 2.82% | |
Weighted Average Remaining Maturity | 15 years | 15 years 2 months 12 days | |
Value of Collateral | $ 247,389 | $ 259,889 | |
RCC 2015-CRE4 Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 119,433 | 158,475 | |
Unamortized Issuance Costs and Discounts | 1,604 | 2,193 | |
Outstanding Borrowings | $ 117,829 | $ 156,282 | |
Weighted Average Borrowing Rate | 2.93% | 2.55% | |
Weighted Average Remaining Maturity | 15 years 4 months 24 days | 15 years 7 months 6 days | |
Value of Collateral | $ 208,373 | $ 247,414 | |
Unsecured Junior Subordinated Debentures | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 51,548 | 51,548 | |
Unamortized Issuance Costs and Discounts | 0 | 0 | |
Outstanding Borrowings | $ 51,548 | $ 51,548 | |
Weighted Average Borrowing Rate | 5.05% | 4.89% | |
Weighted Average Remaining Maturity | 19 years 7 months 6 days | 19 years 9 months 18 days | |
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 | 2,813 | 3,231 | |
Outstanding Borrowings | $ 112,187 | $ 111,769 | |
Weighted Average Borrowing Rate | 6.00% | 6.00% | |
Weighted Average Remaining Maturity | 1 year 8 months 12 days | 1 year 10 months 24 days | |
Value of Collateral | $ 0 | $ 0 | |
Interest rate, stated percentage | 6.00% | ||
8.0% Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 100,000 | 100,000 | |
Unamortized Issuance Costs and Discounts | 3,188 | 3,472 | |
Outstanding Borrowings | $ 96,812 | $ 96,528 | |
Weighted Average Borrowing Rate | 8.00% | 8.00% | |
Weighted Average Remaining Maturity | 2 years 9 months 18 days | 3 years | |
Value of Collateral | $ 0 | $ 0 | |
Interest rate, stated percentage | 8.00% | ||
CRE - Term Repurchase Facility | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 437,338 | 349,318 | |
Unamortized Issuance Costs and Discounts | 2,269 | 2,680 | |
Outstanding Borrowings | $ 435,069 | $ 346,638 | |
Weighted Average Borrowing Rate | 3.28% | 3.04% | |
Weighted Average Remaining Maturity | 1 year 4 months 24 days | 1 year 7 months 6 days | |
Value of Collateral | $ 643,258 | $ 520,503 | |
Accrued interest costs | 552 | 468 | |
CMBS - Term Repurchase Facilities | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 73,998 | 78,503 | |
Unamortized Issuance Costs and Discounts | 6 | 16 | |
Outstanding Borrowings | $ 73,992 | $ 78,487 | |
Weighted Average Borrowing Rate | 2.90% | 2.73% | |
Weighted Average Remaining Maturity | 143 days | 129 days | |
Value of Collateral | $ 108,808 | $ 115,157 | |
Accrued interest costs | 133 | 157 | |
Trust Certificates - Term Repurchase Facility | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 26,664 | 26,667 | |
Unamortized Issuance Costs and Discounts | 245 | 282 | |
Outstanding Borrowings | $ 26,419 | $ 26,385 | |
Weighted Average Borrowing Rate | 6.44% | 6.21% | |
Weighted Average Remaining Maturity | 1 year 7 months 6 days | 1 year 10 months 24 days | |
Value of Collateral | $ 89,181 | $ 89,181 | |
Accrued interest costs | $ 67 | $ 69 | |
[1] | March 31, 2017 December 31, 2016Liabilities of consolidated VIEs included in the total liabilities above: Accounts payable and other liabilities$71 $133Accrued interest expense444 519Borrowings381,168 480,103Total liabilities of consolidated VIEs$381,683 $480,755 |
BORROWINGS (Securitization) (De
BORROWINGS (Securitization) (Details) $ in Millions | Mar. 31, 2017USD ($) |
RCC 2014-CRE2 Senior Notes | |
Debt Instrument [Line Items] | |
Total Note Paydowns | $ 152.4 |
RCC 2015-CRE3 | |
Debt Instrument [Line Items] | |
Total Note Paydowns | 98.5 |
RCC 2015-CRE4 Senior Notes | |
Debt Instrument [Line Items] | |
Total Note Paydowns | $ 104.3 |
BORROWINGS (Repurchase and Mort
BORROWINGS (Repurchase and Mortgage Finance Facilities) (Details) $ in Thousands | Mar. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($)Loan |
Debt Instrument [Line Items] | ||
Value of Collateral | $ 4,500 | |
Weighted Average Interest Rate | 3.96% | 3.67% |
Unamortized issuance costs and discounts | $ 13,335 | $ 16,103 |
CRE - Term Repurchase Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 3.28% | 3.04% |
Unamortized issuance costs and discounts | $ 2,269 | $ 2,680 |
Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 535,480 | 451,510 |
Value of Collateral | 841,247 | 724,841 |
Wells Fargo Bank | RCC Real Estate | CRE - Term Repurchase Facility | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | 1,300 | 1,600 |
CMBS - Term Repurchase Facilities | Wells Fargo Bank | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 21,092 | 22,506 |
Value of Collateral | $ 26,868 | $ 28,514 |
Number of Positions as Collateral | Loan | 12 | 13 |
Weighted Average Interest Rate | 2.20% | 1.96% |
CMBS - Term Repurchase Facilities | Deutsche Bank | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 52,900 | $ 55,981 |
Value of Collateral | $ 81,940 | $ 86,643 |
Number of Positions as Collateral | Loan | 22 | 23 |
Weighted Average Interest Rate | 3.18% | 3.04% |
CMBS - Term Repurchase Facilities | Deutsche Bank Securities, LLC | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | $ 7 | $ 16 |
CRE - Term Repurchase Facility | Wells Fargo Bank | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 271,435 | 215,283 |
Value of Collateral | $ 390,184 | $ 313,126 |
Number of Positions as Collateral | Loan | 19 | 16 |
Weighted Average Interest Rate | 3.11% | 2.86% |
CRE - Term Repurchase Facility | Morgan Stanley Bank | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 163,634 | $ 131,355 |
Value of Collateral | $ 253,074 | $ 207,377 |
Number of Positions as Collateral | Loan | 13 | 11 |
Weighted Average Interest Rate | 3.55% | 3.34% |
Unamortized issuance costs and discounts | $ 935 | $ 1,100 |
CRE - Term Repurchase Facility | RSO Repo SPE Trust 2015 | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | 245 | 282 |
Trust Certificates - Term Repurchase Facility | RSO Repo SPE Trust 2015 | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 26,419 | 26,385 |
Value of Collateral | $ 89,181 | $ 89,181 |
Number of Positions as Collateral | Loan | 1 | 1 |
Weighted Average Interest Rate | 6.44% | 6.21% |
BORROWINGS (Amount at Risk Unde
BORROWINGS (Amount at Risk Under Repurchase Facilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 6 years 8 months 12 days | 8 years |
Weighted Average Interest Rate | 3.96% | 3.67% |
CMBS - Term Repurchase Facilities | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 143 days | 129 days |
Weighted Average Interest Rate | 2.90% | 2.73% |
CRE - Term Repurchase Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 1 year 4 months 24 days | 1 year 7 months 6 days |
Weighted Average Interest Rate | 3.28% | 3.04% |
Trust Certificates - Term Repurchase Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 1 year 7 months 6 days | 1 year 10 months 24 days |
Weighted Average Interest Rate | 6.44% | 6.21% |
Linked and Non-linked Transactions | CMBS - Term Repurchase Facilities | Wells Fargo Bank, National Association | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 5,823 | $ 6,059 |
Weighted Average Remaining Maturity | 1 year | 90 days |
Weighted Average Interest Rate | 2.20% | 1.96% |
Linked and Non-linked Transactions | CMBS - Term Repurchase Facilities | Deutsche Bank AG | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 29,340 | $ 30,971 |
Weighted Average Remaining Maturity | 55 days | 145 days |
Weighted Average Interest Rate | 3.18% | 3.04% |
Linked and Non-linked Transactions | CRE - Term Repurchase Facility | Wells Fargo Bank, National Association | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 118,792 | $ 97,482 |
Weighted Average Remaining Maturity | 1 year 3 months 18 days | 1 year 7 months 6 days |
Weighted Average Interest Rate | 3.11% | 2.86% |
Linked and Non-linked Transactions | CRE - Term Repurchase Facility | Morgan Stanley Bank, National Association | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 89,448 | $ 75,772 |
Weighted Average Remaining Maturity | 1 year 4 months 24 days | 1 year 8 months 12 days |
Weighted Average Interest Rate | 3.55% | 3.34% |
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 7 months 6 days | 1 year 10 months 24 days |
Weighted Average Interest Rate | 6.44% | 6.21% |
BORROWINGS (Contractual Commitm
BORROWINGS (Contractual Commitments) (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total | $ 1,177,195,000 | |
2,017 | 52,900,000 | |
2,018 | 594,767,000 | |
2,019 | 0 | |
2,020 | 96,812,000 | |
2021 and Thereafter | 432,716,000 | |
CRE Securitizations | ||
Debt Instrument [Line Items] | ||
Total | 381,168,000 | |
2,017 | 0 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
2021 and Thereafter | 381,168,000 | |
Repurchase Facilities | ||
Debt Instrument [Line Items] | ||
Total | 535,480,000 | |
2,017 | 52,900,000 | |
2,018 | 482,580,000 | |
2,019 | 0 | |
2,020 | 0 | |
2021 and Thereafter | 0 | |
Unsecured Junior Subordinated Debentures | ||
Debt Instrument [Line Items] | ||
Total | 51,548,000 | |
2,017 | 0 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
2021 and Thereafter | 51,548,000 | |
Convertible Debt | 6.0% Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Total | 112,187,000 | |
2,017 | 0 | |
2,018 | 112,187,000 | |
2,019 | 0 | |
2,020 | 0 | |
2021 and Thereafter | 0 | |
Convertible Debt | 8.0% Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Total | 96,812,000 | |
2,017 | 0 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 96,812,000 | |
2021 and Thereafter | $ 0 | |
8.0% Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 8.00% | |
6.0% Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 6.00% | |
Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | $ 535,480,000 | $ 451,510,000 |
Repurchase Agreements | JP Morgan Securities, LLC | CMBS - Term Repurchase Facilities | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | $ 0 | $ 0 |
SHARE ISSUANCE AND REPURCHASE (
SHARE ISSUANCE AND REPURCHASE (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 17 Months Ended | |||
Mar. 31, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Mar. 31, 2016 | Aug. 03, 2015 | Mar. 21, 2013 | |
Class of Stock [Line Items] | ||||||
Treasury stock, (in shares) | 0 | |||||
Equity and Debt Securities Repurchase Program | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchase program, authorized amount (up to) | $ 50,000,000 | $ 50,000,000 | ||||
Treasury stock, value | $ 35,200,000 | |||||
Treasury stock, (in shares) | 2,800,000 | |||||
Outstanding shares, stock acquired, percentage | 8.30% | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 44,900,000 | |||||
8.50% Series A Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | ||||
Preferred Shares - Series B | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | ||||
Treasury stock, (in shares) | 0 | |||||
Preferred Shares - Series B | Equity and Debt Securities Repurchase Program | ||||||
Class of Stock [Line Items] | ||||||
Treasury stock, value | $ 3,100,000 | |||||
Treasury stock, (in shares) | 196,000 | |||||
Outstanding shares, stock acquired, percentage | 3.40% | |||||
Preferred Shares - Series C | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | ||||
Common Stock | Dividend Reinvestment Plan March 21 2013 | ||||||
Class of Stock [Line Items] | ||||||
Shares authorized for dividend reinvestment plan (in shares) | 5,000,000 |
SHARE-BASED COMPENSATION (Commo
SHARE-BASED COMPENSATION (Common Stock Activity) (Details) | 3 Months Ended |
Mar. 31, 2017shares | |
Restricted Stock | January 25, 2017 | 2007 Omnibus Equity Compensation Plan | |
Restricted common stock transactions | |
Stock based compensation (in shares) | 321,789 |
Vesting/Year | 33.30% |
Restricted Stock | February 1, 2017 | 2007 Omnibus Equity Compensation Plan | |
Restricted common stock transactions | |
Stock based compensation (in shares) | 4,242 |
Vesting/Year | 100.00% |
Restricted Stock | March 8, 2017 | 2007 Omnibus Equity Compensation Plan | |
Restricted common stock transactions | |
Stock based compensation (in shares) | 18,450 |
Vesting/Year | 100.00% |
Restricted Stock | March 13, 2017 | 2007 Omnibus Equity Compensation Plan | |
Restricted common stock transactions | |
Stock based compensation (in shares) | 4,299 |
Vesting/Year | 100.00% |
Non-Employee Directors | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 27,320 |
Issued (shares) | 26,991 |
Vested (shares) | (20,491) |
Forfeited (shares) | 0 |
Unvested shares, end of period (in shares) | 33,820 |
Non-Employees | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 301,486 |
Issued (shares) | 321,789 |
Vested (shares) | (108,859) |
Forfeited (shares) | (7,886) |
Unvested shares, end of period (in shares) | 506,530 |
Employees | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 71,244 |
Issued (shares) | 12,019 |
Vested (shares) | (29,779) |
Forfeited (shares) | (1,412) |
Unvested shares, end of period (in shares) | 52,072 |
Manager and Non Employees | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 400,050 |
Issued (shares) | 360,799 |
Vested (shares) | (159,129) |
Forfeited (shares) | (9,298) |
Unvested shares, end of period (in shares) | 592,422 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($)Directorshares | Mar. 31, 2016USD ($)Directorshares | Dec. 31, 2016USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash awards, percentage (up to) | 75.00% | ||
Common stock awards, percentage (at least) | 25.00% | ||
Shares issued pursuant to the management agreement (in shares) | shares | 0 | 0 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated fair value of shares granted | $ 2,700 | $ 2,300 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants in period (in shares) | shares | 0 | 0 | |
Contractual term | 10 years | ||
Non-Employee Directors | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of non employee directors granted shares | Director | 8 | 7 | |
Payment award, grant date fair value | $ 220 | $ 220 | |
Non-Employee Directors | Equity Compensation Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 73 | $ 64 | |
Manager and Non Employees | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost not yet recognized | $ 3,400 | $ 891 | |
Weighted average remaining contractual term | 2 years 8 months 9 days | 2 years 6 months 19 days |
SHARE-BASED COMPENSATION (Statu
SHARE-BASED COMPENSATION (Status of Vested Stock Options) (Details) - Vested $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($)$ / sharesshares | |
Number of Options | |
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 | (1,250) |
Outstanding end of period (in shares) | shares | 25,000 |
Weighted Average Exercise Price | |
Outstanding beginning of period (in dollars per share) | $ / shares | $ 46.60 |
Vested (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited (usd per share) | $ / shares | 0 |
Expired (in shares) | $ / shares | 73.48 |
Outstanding end of period (in dollars per share) | $ / shares | $ 46.60 |
Weighted Average Remaining Contractual Term | 1 year 9 months 17 days |
Aggregate Intrinsic Value | $ | $ 0 |
SHARE-BASED COMPENSATION (Compo
SHARE-BASED COMPENSATION (Components of Equity Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total equity compensation expense | $ 788 | $ 489 |
Manager and Non Employees | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total equity compensation expense | 715 | 425 |
Non-Employee Directors | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total equity compensation expense | $ 73 | $ 64 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net income (loss) from continuing operations | $ 9,174 | $ 8,852 |
Net (income) loss allocated to preferred shares | (6,014) | (6,048) |
Carrying value in excess of consideration paid for preferred shares | 0 | 1,611 |
Net (income) loss allocable to non-controlling interests, net of taxes | 101 | 90 |
Net income (loss) allocable to common shares | 3,261 | 4,505 |
Net income (loss) from discontinued operations, net of tax | (561) | 5,168 |
Net income (loss) allocable to common shares | $ 2,700 | $ 9,673 |
Basic: | ||
Weighted average number of shares outstanding (in shares) | 30,752,006 | 30,600,407 |
Continuing operations (in dollars per share) | $ 0.11 | $ 0.12 |
Discontinued operations (in dollars per share) | (0.02) | 0.20 |
Basic net income (loss) per share (in dollars per share) | $ 0.09 | $ 0.32 |
Diluted: | ||
Weighted average number of shares outstanding (in shares) | 30,752,006 | 30,600,407 |
Additional shares due to assumed conversion of dilutive instruments (in shares) | 162,142 | 437,688 |
Adjusted weighted-average number of common shares outstanding (in shares) | 30,914,148 | 31,038,095 |
Continuing operations (in dollars per share) | $ 0.11 | $ 0.12 |
Discontinued operations (in dollars per share) | (0.02) | 0.19 |
Diluted net income (loss) per share (in dollars per share) | $ 0.09 | $ 0.31 |
6% and 8% Convertible Senior Notes | ||
Diluted: | ||
Antidilutive securities excluded (in shares) | 9,002,864 | |
6.0% Convertible Senior Notes | ||
Diluted: | ||
Interest rate, stated percentage | 6.00% | |
8.0% Convertible Senior Notes | ||
Diluted: | ||
Interest rate, stated percentage | 8.00% |
ACCUMULATED OTHER COMPREHENSI91
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance, January 1, 2017 | $ 3,081 |
Other comprehensive gain (loss) before reclassifications | 133 |
Amounts reclassified from accumulated other comprehensive income | 18 |
Balance, March 31, 2017 | 3,232 |
Net unrealized (loss) gain on derivatives | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance, January 1, 2017 | (18) |
Other comprehensive gain (loss) before reclassifications | 0 |
Amounts reclassified from accumulated other comprehensive income | 18 |
Balance, March 31, 2017 | 0 |
Net unrealized (loss) gain on securities, available-for-sale | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance, January 1, 2017 | 3,099 |
Other comprehensive gain (loss) before reclassifications | 133 |
Amounts reclassified from accumulated other comprehensive income | 0 |
Balance, March 31, 2017 | $ 3,232 |
RELATED PARTY TRANSACTIONS (Rel
RELATED PARTY TRANSACTIONS (Relationship with Resource America) (Details) € in Millions | Nov. 07, 2013USD ($)shares | May 31, 2016USD ($) | Mar. 31, 2017USD ($)Transactionshares | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Nov. 30, 2016USD ($)SecurityLoan | May 31, 2016EUR (€) | May 22, 2016USD ($) | Jun. 17, 2011USD ($) | Nov. 24, 2010USD ($) | |
Related Party Transaction [Line Items] | |||||||||||
Base management fees paid by the Company | $ 2,680,000 | $ 4,037,000 | |||||||||
General and administrative | 3,863,000 | 3,642,000 | |||||||||
Investment securities, trading | [1] | 221,000 | $ 4,492,000 | ||||||||
Sale (purchase) of and principal payments on securities, trading, net | (4,493,000) | (3,000) | |||||||||
Investments in unconsolidated entities | [1] | $ 74,271,000 | 87,919,000 | ||||||||
Payment for structuring and placement fee | $ 2,300,000 | ||||||||||
Apidos Cinco | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Intended for sale, number of securities | Security | 1 | ||||||||||
Number of loans | Loan | 3 | ||||||||||
Fair value | $ 2,300,000 | ||||||||||
Harvest CLO XV | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Investments in unconsolidated entities | € | € 12.5 | ||||||||||
Collateralized loan obligation, par value | $ 413,000,000 | ||||||||||
Elevation Home Loans, LLC | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Purchase of membership interests | $ 830,000 | ||||||||||
Purchase of membership interests, number of shares of restricted Company common stock issued as consideration (in shares) | shares | 34,165 | ||||||||||
Resource America | Resource Capital Corp | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of common shares of the Company owned by a related party (in shares) | shares | 715,396 | ||||||||||
Ownership percentage | 2.30% | ||||||||||
Due from related parties | $ 1,500,000 | ||||||||||
Manager pursuant to the Management Agreement | Resource Capital Corp | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Base management fees paid by the Company | $ 2,600,000 | 3,900,000 | |||||||||
Incentive management fees | 0 | 0 | |||||||||
General and administrative | 1,800,000 | 1,000,000 | |||||||||
Investment maximum | $ 5,000,000 | ||||||||||
Additional investment per Investment Management Agreement | $ 8,000,000 | ||||||||||
Management fee as a percentage of net profits in excess of preferred return | 20.00% | ||||||||||
Total indebtedness | 1,500,000 | 1,400,000 | |||||||||
Accrued base management fees | 1,400,000 | 1,300,000 | |||||||||
Expense reimbursement payable | 47,000 | 35,000 | |||||||||
Oversight fee, management fees | $ 62,000 | 138,000 | |||||||||
Number of executed CDO transactions | Transaction | 6 | ||||||||||
Number of liquidated CDO transactions | Transaction | 2 | ||||||||||
Manager pursuant to the Management Agreement | Investor Relations Officer | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Responsibility percentage of salary | 50.00% | ||||||||||
Resource Capital Markets, Inc. | Resource Capital Corp | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Base management fees paid by the Company | $ 0 | 0 | |||||||||
Investment securities, trading | 221,000 | 4,100,000 | |||||||||
Sale (purchase) of and principal payments on securities, trading, net | (3,900,000) | ||||||||||
Expense reimbursements | 0 | $ 8,000 | |||||||||
Total indebtedness | $ 96,000 | $ 216,000 | |||||||||
[1] | March 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash4,841 3,308Interest receivable2,700 3,153CRE loans, pledged as collateral and net of allowances of $0.8 million and $0.8 million638,930 747,726Loans held for sale2 1,007Principal paydowns receivable13,900 5,820Investment securities available-for-sale, including securities pledged as collateral— 369Other assets186 58Total assets of consolidated VIEs$660,559 $761,441 |
RELATED PARTY TRANSACTIONS (R93
RELATED PARTY TRANSACTIONS (Relationship with LEAF Financial) (Details) - USD ($) | Jan. 11, 2013 | Feb. 15, 2012 | Sep. 03, 2011 | Mar. 05, 2010 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2016 | Nov. 16, 2011 | |
Related Party Transaction [Line Items] | ||||||||||
Leases | $ 2,100,000 | |||||||||
Direct financing leases, net of allowances | [1] | $ 349,000 | $ 527,000 | |||||||
Income from equity method investments | (276,000) | $ 1,581,000 | ||||||||
Investments in unconsolidated entities | [1] | 74,271,000 | 87,919,000 | |||||||
Investment in LCC Preferred Stock | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Income from equity method investments | 165,000 | 1,411,000 | ||||||||
Investments in unconsolidated entities | 43,125,000 | $ 42,960,000 | $ 36,300,000 | |||||||
Lease Equity Appreciation Fund II | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Line of credit facility, commitment fee percentage | 1.00% | |||||||||
Resource Capital Corp | Lease Equity Appreciation Fund II | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Maximum amount of facility | $ 8,000,000 | |||||||||
Line of credit facility, term | 1 year | |||||||||
Interest rate during period | 10.00% | 12.00% | ||||||||
Line of credit facility, extension fee percentage | 1.00% | 1.00% | 1.00% | |||||||
Resource Capital Corp | Lease Equity Appreciation Fund II | Loans Receivable-Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Provision for loan and lease losses | $ 139,000 | $ 0 | $ 1,300,000 | |||||||
[1] | March 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash4,841 3,308Interest receivable2,700 3,153CRE loans, pledged as collateral and net of allowances of $0.8 million and $0.8 million638,930 747,726Loans held for sale2 1,007Principal paydowns receivable13,900 5,820Investment securities available-for-sale, including securities pledged as collateral— 369Other assets186 58Total assets of consolidated VIEs$660,559 $761,441 |
RELATED PARTY TRANSACTIONS (R94
RELATED PARTY TRANSACTIONS (Relationship with CVC Credit Partners, LLC) (Details) | Feb. 24, 2011USD ($) | Mar. 31, 2017USD ($)Entity | Jan. 31, 2017USD ($) | May 31, 2013 | Oct. 31, 2012Entity | Mar. 31, 2017USD ($)Entity | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($) | |
Related Party Transaction [Line Items] | ||||||||||
Number of CLO issuers | Entity | 5 | 1 | 5 | |||||||
Intangible assets | [1] | $ 0 | $ 0 | $ 213,000 | ||||||
Income from equity method investments | (276,000) | $ 1,581,000 | ||||||||
Investments in unconsolidated entities | [1] | 74,271,000 | 74,271,000 | 87,919,000 | ||||||
Investment in CVC Global Credit Opportunities Fund | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Income from equity method investments | $ 0 | |||||||||
Investment in RCAM, Investment Two | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Impairment of intangible assets | $ 177,000 | 0 | ||||||||
Whitney CLO I | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Ownership percentage in VIE | 68.30% | |||||||||
Variable Interest Entity, Not Primary Beneficiary | Management Contracts | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Intangible assets | 0 | 0 | ||||||||
Impairment of intangible assets | 177,000 | |||||||||
Churchill Pacific Asset Management LLC | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Assets under management, carrying amount | $ 1,900,000,000 | $ 1,900,000,000 | ||||||||
Resource America | CVC Capital Partners | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Ownership percentage | 24.00% | 24.00% | ||||||||
Resource Capital Corp | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Preferred equity interest acquired | 66.60% | |||||||||
Resource Capital Corp | Churchill Pacific Asset Management LLC | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Ownership percentage | 100.00% | |||||||||
Purchase price of acquired entity paid by acquiring entity | $ 22,500,000 | |||||||||
Apidos Capital Management LLC | CVC Capital Partners | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Percentage of subordinated fees the company is entitled to collect (in hundredths) | 10.00% | 10.00% | ||||||||
Percentage of incentive fees the company is entitled to collect (in hundredths) | 50.00% | 50.00% | ||||||||
Subordinated fees received | $ 567,000 | $ 109,000 | ||||||||
Management Contracts | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Intangible assets | $ 0 | $ 0 | $ 213,000 | |||||||
[1] | March 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash4,841 3,308Interest receivable2,700 3,153CRE loans, pledged as collateral and net of allowances of $0.8 million and $0.8 million638,930 747,726Loans held for sale2 1,007Principal paydowns receivable13,900 5,820Investment securities available-for-sale, including securities pledged as collateral— 369Other assets186 58Total assets of consolidated VIEs$660,559 $761,441 |
RELATED PARTY TRANSACTIONS (R95
RELATED PARTY TRANSACTIONS (Relationship with Long Term Care Conversion Funding) (Details) - Manager pursuant to the Management Agreement - USD ($) | 1 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2012 | |
Related Party Transaction [Line Items] | ||
Expense reimbursements, annual fee | $ 250,000 | $ 550,000 |
Expense reimbursements, annual fee, term | 1 year | 2 years |
RELATED PARTY TRANSACTIONS (R96
RELATED PARTY TRANSACTIONS (Relationship with Resource Real Estate) (Details) | Jun. 24, 2015USD ($) | Feb. 01, 2015USD ($) | Jul. 30, 2014USD ($) | Dec. 01, 2009USD ($) | Aug. 31, 2015USD ($) | Feb. 28, 2015USD ($) | Sep. 30, 2014USD ($) | Jul. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Mar. 31, 2017USD ($)Transaction | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Jul. 09, 2014 | |
Related Party Transaction [Line Items] | ||||||||||||||
Base management fees paid by the Company | $ 2,680,000 | $ 4,037,000 | ||||||||||||
Income from equity method investments | $ (276,000) | 1,581,000 | ||||||||||||
Number of real estate securitization transactions | Transaction | 4 | |||||||||||||
Placement agent fee | $ 175,000 | $ 205,000 | ||||||||||||
Equity in earnings of unconsolidated entities | $ 361,000 | 2,222,000 | ||||||||||||
Proceeds from partial redemption | 6,292,000 | 0 | ||||||||||||
Investments in unconsolidated entities | [1] | 74,271,000 | $ 87,919,000 | |||||||||||
RCC CRE Notes 2013 Senior Notes | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Closing transaction amount | $ 307,800,000 | |||||||||||||
Special servicing fee rate | 0.25% | |||||||||||||
RCC 2014-CRE2 Senior Notes | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Closing transaction amount | $ 353,900,000 | |||||||||||||
RCC 2015-CRE3 | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Closing transaction amount | $ 346,200,000 | |||||||||||||
Placement agent fee | 100,000 | |||||||||||||
RCC 2015-CRE4 | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Closing transaction amount | $ 312,900,000 | |||||||||||||
Placement agent fee | $ 85,000 | |||||||||||||
RRE VIP Borrower, LLC | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Acquisition of membership interests | $ 2,100,000 | |||||||||||||
Income from equity method investments | $ 0 | 25,000 | ||||||||||||
Ownership percentage | 0.00% | |||||||||||||
Investments in unconsolidated entities | $ 0 | 0 | ||||||||||||
RCC Residential, Inc. | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Acquisition of membership interests | $ 15,000,000 | |||||||||||||
Ownership percentage | 63.80% | |||||||||||||
Equity in earnings of unconsolidated entities | (4,000) | 177,000 | ||||||||||||
Pelium | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Acquisition of membership interests | $ 17,500,000 | |||||||||||||
Income from equity method investments | $ (158,000) | 361,000 | ||||||||||||
Ownership percentage | 80.40% | 80.20% | ||||||||||||
Equity in earnings of unconsolidated entities | $ (158,000) | 361,000 | ||||||||||||
Payments to acquire additional interest in subsidiaries | $ 2,500,000 | $ 2,500,000 | ||||||||||||
Ownership interest | 10.00% | |||||||||||||
Ownership percentage | 5 years | |||||||||||||
Ownership interest increase | 20.00% | |||||||||||||
Contributions | $ 40,000,000 | |||||||||||||
Proceeds from partial redemption | 13,600,000 | |||||||||||||
Equity method investments | 12,200,000 | 25,993,000 | ||||||||||||
Investments in unconsolidated entities | 12,201,000 | |||||||||||||
Pearlmark Mezz | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Acquisition of membership interests | 17,800,000 | |||||||||||||
Income from equity method investments | $ 358,000 | 248,000 | ||||||||||||
Ownership percentage | 47.70% | |||||||||||||
Equity in earnings of unconsolidated entities | $ 358,000 | 248,000 | ||||||||||||
Other commitment (up to) | $ 50,000,000 | |||||||||||||
Property, management fee, percent fee | 1.00% | |||||||||||||
Management fee, invested capital, percent fee | 1.50% | |||||||||||||
Rebate, percentage | 25.00% | |||||||||||||
Investments in unconsolidated entities | $ 16,925,000 | 16,953,000 | ||||||||||||
Resource America | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Payments to acquire additional interest in subsidiaries | $ 2,800,000 | |||||||||||||
RCC Residential, Inc. | RCM Global LLC | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Ownership percentage in VIE | 63.80% | 21.60% | ||||||||||||
Gain on sale of investments | $ 5,000,000 | |||||||||||||
Resource Real Estate | Commercial Real Estate Debt Investments | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Related party transaction, due from related party | 54,000 | 50,000 | ||||||||||||
Resource Real Estate | Resource Capital Corp | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Total indebtedness | $ 316,000 | $ 899,000 | ||||||||||||
Resource Real Estate Management, LLC | RRE VIP Borrower, LLC | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Asset management fees percentage | 1.00% | |||||||||||||
Base management fees paid by the Company | $ 0 | $ 0 | ||||||||||||
Resource America | Pearlmark Mezz | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Ownership percentage in VIE | 50.00% | |||||||||||||
Resource America | Resource Capital Corp | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Ownership percentage | 2.30% | |||||||||||||
[1] | March 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash4,841 3,308Interest receivable2,700 3,153CRE loans, pledged as collateral and net of allowances of $0.8 million and $0.8 million638,930 747,726Loans held for sale2 1,007Principal paydowns receivable13,900 5,820Investment securities available-for-sale, including securities pledged as collateral— 369Other assets186 58Total assets of consolidated VIEs$660,559 $761,441 |
DISTRIBUTIONS Narrative (Detail
DISTRIBUTIONS Narrative (Details) - $ / shares | 3 Months Ended | ||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | |
Class of Stock [Line Items] | |||||
REIT required taxable income distribution, percentage | 90.00% | ||||
REIT taxable income distribution for exempt federal income taxes, percentage | 100.00% | ||||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Dividend Per Share (in dollars per share) | $ 0.05 | $ 0.05 | $ 0.42 | $ 0.42 | $ 0.42 |
DISTRIBUTIONS Dividends Declare
DISTRIBUTIONS Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | |
Common Stock | |||||
Class of Stock [Line Items] | |||||
Total Dividend Paid | $ 1,568 | $ 1,550 | $ 13,012 | $ 13,051 | $ 13,073 |
Dividend Per Share (in dollars per share) | $ 0.05 | $ 0.05 | $ 0.42 | $ 0.42 | $ 0.42 |
Preferred Shares - Series A | |||||
Class of Stock [Line Items] | |||||
Total Dividend Paid | $ 568 | $ 568 | $ 568 | $ 568 | $ 568 |
Dividend Per Share (in dollars per share) | $ 0.531250 | $ 0.531250 | $ 0.531250 | $ 0.531250 | $ 0.531250 |
Preferred Shares - Series B | |||||
Class of Stock [Line Items] | |||||
Total Dividend Paid | $ 2,859 | $ 2,859 | $ 2,859 | $ 2,859 | $ 2,859 |
Dividend Per Share (in dollars per share) | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 |
Preferred Shares - Series C | |||||
Class of Stock [Line Items] | |||||
Total Dividend Paid | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 |
Dividend Per Share (in dollars per share) | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 |
FAIR VALUE OF FINANCIAL INSTR99
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Assets: | |||
Investment securities, trading | [1] | $ 221 | $ 4,492 |
Investment securities available-for-sale | 118,531 | 124,968 | |
Derivatives | [1] | 136 | 647 |
Recurring Basis | |||
Assets: | |||
Investment securities, trading | 221 | 4,492 | |
Investment securities available-for-sale | 118,531 | 124,968 | |
Loans held for sale | 2 | 1,007 | |
Derivatives | 136 | 647 | |
Total assets at fair value | 118,890 | 131,114 | |
Liabilities: | |||
Derivatives | (97) | ||
Total liabilities at fair value | (97) | ||
Recurring Basis | Level 1 | |||
Assets: | |||
Investment securities, trading | 0 | 0 | |
Investment securities available-for-sale | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Derivatives | 0 | 0 | |
Total assets at fair value | 0 | 0 | |
Liabilities: | |||
Derivatives | 0 | ||
Total liabilities at fair value | 0 | ||
Recurring Basis | Level 2 | |||
Assets: | |||
Investment securities, trading | 0 | 369 | |
Investment securities available-for-sale | 0 | 0 | |
Loans held for sale | 1 | 787 | |
Derivatives | 136 | 647 | |
Total assets at fair value | 137 | 1,803 | |
Liabilities: | |||
Derivatives | (97) | ||
Total liabilities at fair value | (97) | ||
Recurring Basis | Level 3 | |||
Assets: | |||
Investment securities, trading | 221 | 4,123 | |
Investment securities available-for-sale | 118,531 | 124,968 | |
Loans held for sale | 1 | 220 | |
Derivatives | 0 | 0 | |
Total assets at fair value | $ 118,753 | 129,311 | |
Liabilities: | |||
Derivatives | 0 | ||
Total liabilities at fair value | $ 0 | ||
[1] | March 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash4,841 3,308Interest receivable2,700 3,153CRE loans, pledged as collateral and net of allowances of $0.8 million and $0.8 million638,930 747,726Loans held for sale2 1,007Principal paydowns receivable13,900 5,820Investment securities available-for-sale, including securities pledged as collateral— 369Other assets186 58Total assets of consolidated VIEs$660,559 $761,441 |
FAIR VALUE OF FINANCIAL INST100
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets Measured on Recurring and Nonrecurring Basis) (Details) | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Nonrecurring | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | |
Financial assets | $ 0 |
Financial liabilities | 0 |
Level 3 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | |
Balance, January 1, 2017 | 129,311,000 |
Included in earnings | 703,000 |
Purchases/Originations | 0 |
Sales | 0 |
Paydowns | (11,919,000) |
Issuances | 0 |
Settlements | 0 |
Capitalized Interest | 478,000 |
Included in OCI | 180,000 |
Balance, March 31, 2017 | 118,753,000 |
Level 3 | CMBS | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | |
Balance, January 1, 2017 | 98,087,000 |
Included in earnings | 202,000 |
Purchases/Originations | 0 |
Sales | 0 |
Paydowns | (6,738,000) |
Issuances | 0 |
Settlements | 0 |
Capitalized Interest | 0 |
Included in OCI | 39,000 |
Balance, March 31, 2017 | 91,590,000 |
Level 3 | ABS | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | |
Balance, January 1, 2017 | 25,280,000 |
Included in earnings | 309,000 |
Purchases/Originations | 0 |
Sales | 0 |
Paydowns | (778,000) |
Issuances | 0 |
Settlements | 0 |
Capitalized Interest | 478,000 |
Included in OCI | 156,000 |
Balance, March 31, 2017 | 25,445,000 |
Level 3 | Structured Finance Securities | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | |
Balance, January 1, 2017 | 4,123,000 |
Included in earnings | 213,000 |
Purchases/Originations | 0 |
Sales | 0 |
Paydowns | (4,115,000) |
Issuances | 0 |
Settlements | 0 |
Capitalized Interest | 0 |
Included in OCI | 0 |
Balance, March 31, 2017 | 221,000 |
Level 3 | Loans Held for Sale | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | |
Balance, January 1, 2017 | 220,000 |
Included in earnings | (21,000) |
Purchases/Originations | 0 |
Sales | 0 |
Paydowns | (198,000) |
Issuances | 0 |
Settlements | 0 |
Capitalized Interest | 0 |
Included in OCI | 0 |
Balance, March 31, 2017 | 1,000 |
Level 3 | RMBS | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | |
Balance, January 1, 2017 | 1,601,000 |
Included in earnings | 0 |
Purchases/Originations | 0 |
Sales | 0 |
Paydowns | (90,000) |
Issuances | 0 |
Settlements | 0 |
Capitalized Interest | 0 |
Included in OCI | (15,000) |
Balance, March 31, 2017 | $ 1,496,000 |
FAIR VALUE OF FINANCIAL INST101
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) | 3 Months Ended |
Mar. 31, 2017 | |
Minimum | Expected Future Cash Flows | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value inputs, discount rate | 15.00% |
Maximum | Expected Future Cash Flows | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value inputs, discount rate | 25.00% |
Unsecured Junior Subordinated Debentures | Minimum | Expected Future Cash Flows | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value inputs, discount rate | 11.34% |
Unsecured Junior Subordinated Debentures | Maximum | Expected Future Cash Flows | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value inputs, discount rate | 11.34% |
6.0% Convertible Senior Notes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value inputs, discount rate | 7.00% |
Interest 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% |
Interest rate, stated percentage | 8.00% |
FAIR VALUE OF FINANCIAL INST102
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held for investment | [1] | $ 1,295,154 | $ 1,286,278 |
Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held for investment | 1,295,154 | 1,286,278 | |
Senior notes in CRE securitization | 381,168 | 480,101 | |
Junior subordinated notes | 51,548 | 51,548 | |
Convertible notes | 208,999 | 208,297 | |
Repurchase agreements | 535,480 | 451,510 | |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held for investment | 1,301,076 | 1,292,099 | |
Senior notes in CRE securitization | 381,445 | 486,524 | |
Junior subordinated notes | 27,183 | 27,246 | |
Convertible notes | 215,000 | 215,000 | |
Repurchase agreements | 537,249 | 453,794 | |
Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held for investment | 0 | 0 | |
Senior notes in CRE securitization | 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 | 0 | |
Senior notes in CRE securitization | 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 | 1,301,076 | 1,292,099 | |
Senior notes in CRE securitization | 381,445 | 486,524 | |
Junior subordinated notes | 27,183 | 27,246 | |
Convertible notes | 215,000 | 215,000 | |
Repurchase agreements | $ 537,249 | $ 453,794 | |
[1] | March 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash4,841 3,308Interest receivable2,700 3,153CRE loans, pledged as collateral and net of allowances of $0.8 million and $0.8 million638,930 747,726Loans held for sale2 1,007Principal paydowns receivable13,900 5,820Investment securities available-for-sale, including securities pledged as collateral— 369Other assets186 58Total assets of consolidated VIEs$660,559 $761,441 |
MARKET RISK AND DERIVATIVE I103
MARKET RISK AND DERIVATIVE INSTRUMENTS (Details) | 3 Months Ended | |
Mar. 31, 2017USD ($)Derivative | Dec. 31, 2016USD ($)Derivative | |
Derivatives, Fair Value [Line Items] | ||
Number of instruments held | Derivative | 0 | |
Interest Rate Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Number of instruments held | Derivative | 0 | 0 |
Unrealized losses on non-designated derivative instruments | $ | $ 0 | $ 18,000 |
Expense to fully amortize | $ | $ 18,000 |
MARKET RISK AND DERIVATIVE I104
MARKET RISK AND DERIVATIVE INSTRUMENTS (Fair Value and Classification of Derivatives) (Details) $ in Thousands, € in Millions | 3 Months Ended | ||||
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | |
Derivatives, Fair Value [Line Items] | |||||
Fair Value | $ 136 | $ 647 | |||
Fair Value | 97 | ||||
Forward contracts-foreign currency | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 24,495 | € 23 | 12,489 | € 11.9 | |
Notional Amount | 11,700 | € 11.1 | |||
Forward contracts-foreign currency | 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) | (195) | $ (1,116) | |||
Forward contracts-foreign currency | Derivatives, at fair value | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair Value | 136 | 647 | |||
Fair Value | 97 | ||||
Interest Rate Swaps | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 0 | ||||
Interest Rate Swaps | Interest expense | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | $ (18) | $ 95 | |||
Interest Rate Swaps | Accumulated Other Comprehensive (Loss) Income | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair Value | $ (18) |
OFFSETTING OF FINANCIAL ASSE105
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Offsetting Derivative Assets | ||
Gross Amounts of Recognized Assets | $ 136 | $ 647 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Included in the Consolidated Balance Sheets-Total | 136 | 647 |
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 | 136 | 647 |
Total-Assets | ||
Gross Amounts of Recognized Assets | 136 | 647 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Included in the Consolidated Balance Sheets-Total | 136 | 647 |
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 | 136 | 647 |
Repurchase agreements and term facilties | ||
Gross Amounts of Recognized Liabilities | 535,480 | 451,510 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 535,480 | 451,510 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 535,480 | 451,510 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | 0 |
Net Amount | 0 | 0 |
Offsetting Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 97 | |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 97 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 0 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | |
Net Amount | 97 | |
Total-Liabilities | ||
Gross Amounts of Recognized Liabilities | 535,480 | 451,607 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 535,480 | 451,607 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 535,480 | 451,510 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | 0 |
Net Amount | 0 | 97 |
Fair value of securities pledged against repurchase agreements | $ 841,200 | $ 724,800 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | Feb. 03, 2016Loanplantiff | Jan. 31, 2017Claims | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2016USD ($) |
Loss Contingencies [Line Items] | |||||
Estimated litigation liability | $ 4,600,000 | $ 4,800,000 | |||
Commercial Real Estate Portfolio Segment | |||||
Loss Contingencies [Line Items] | |||||
Financing receivable, category of loans | Loan | 2 | ||||
Joseph Greenberg | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, new claims filed, number | Claims | 3 | ||||
PCM | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | $ 11,000,000 | ||||
Loss contingency, number of plaintiffs | plantiff | 150 | ||||
Loss contingency, reserve | $ 0 |
DISCONTINUED OPERATIONS AND 107
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE Operating results of the residential mortgage and middle market lending segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Interest income: | ||
Loans | $ 21,533 | $ 20,981 |
Interest income - other | 1,630 | 1,237 |
Total interest income | 25,471 | 27,016 |
Interest expense | 14,254 | 13,302 |
Net interest income | 11,217 | 13,714 |
Fee income | 909 | 572 |
Total revenues | 12,145 | 14,303 |
OPERATING EXPENSES | ||
Equity compensation expense - related party | 788 | 489 |
General and administrative | 3,863 | 3,642 |
Depreciation and amortization | 68 | 509 |
Total operating expenses | 8,575 | 8,607 |
Net interest and other revenues less operating expenses | 3,570 | 5,696 |
OTHER INCOME (EXPENSE) | ||
Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives | 7,606 | 853 |
Fair value adjustments on financial assets held for sale | (21) | 0 |
Total other income (expense) | 7,103 | 3,160 |
Discontinued Operations, Held-for-sale | ||
Interest income: | ||
Loans | 897 | 12,272 |
Interest income - other | 13 | 5 |
Total interest income | 910 | 12,277 |
Interest expense | 0 | 1,697 |
Net interest income | 910 | 10,580 |
Gain (loss) on sale of residential mortgage loans | 3,825 | 3,996 |
Fee income | 2,180 | (1,273) |
Total revenues | 6,915 | 13,303 |
OPERATING EXPENSES | ||
Equity compensation expense - related party | 59 | 774 |
General and administrative | 7,473 | 6,363 |
Depreciation and amortization | 0 | 132 |
Provision (recovery) for loan and lease losses | 0 | 107 |
Total operating expenses | 7,532 | 7,376 |
Net interest and other revenues less operating expenses | (617) | 5,927 |
OTHER INCOME (EXPENSE) | ||
Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives | (2) | 0 |
Fair value adjustments on financial assets held for sale | 58 | 0 |
Total other income (expense) | 56 | 0 |
INCOME (LOSS) FROM DISCONTINUED OPERATIONS BEFORE TAXES | (561) | 5,927 |
Income Tax Benefit (Expense) | 0 | (759) |
TOTAL INCOME (LOSS) FROM DISCONTINUED OPERATIONS | $ (561) | $ 5,168 |
DISCONTINUED OPERATIONS AND 108
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE Assets and liabilities of business segments classified as discontinued operations (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
ASSETS | ||||
Restricted cash | [1] | $ 4,871 | $ 3,399 | |
Interest receivable | [1] | 6,139 | 6,404 | |
Principal paydowns receivable | [1] | 13,900 | 19,280 | |
Derivatives, at fair value | [1] | 136 | 647 | |
Intangible assets | [1] | 0 | 213 | |
Other assets | [1] | 3,469 | 14,673 | |
Total assets held for sale | [1] | 317,118 | 383,455 | |
LIABILITIES | ||||
Accounts payable and other liabilities | [2] | 2,417 | 4,480 | |
Management fee payable - related party | [2] | 1,418 | 1,318 | |
Accrued interest expense | [2] | 4,629 | 4,979 | |
Borrowings | [2] | 1,177,195 | 1,191,456 | |
Derivatives, at fair value | [2] | 0 | 97 | |
Total liabilities held for sale | [2] | 99,539 | 142,563 | |
Life settlement contracts | 6,400 | 5,800 | ||
Servicing Contracts | ||||
ASSETS | ||||
Intangible assets | $ 17,400 | 14,400 | ||
Discontinued Operations, Held-for-sale | ||||
ASSETS | ||||
Restricted cash | 143 | $ 145 | ||
Interest receivable | 224 | 305 | ||
Principal paydowns receivable | 283,823 | 346,761 | ||
Property available for sale | 235 | 125 | ||
Derivatives, at fair value | 2,613 | 3,773 | ||
Intangible assets | 17,511 | 14,466 | ||
Other assets | 12,569 | 17,880 | ||
Total assets held for sale | 317,118 | 383,455 | ||
LIABILITIES | ||||
Accounts payable and other liabilities | 9,129 | 8,404 | ||
Management fee payable - related party | 54 | 132 | ||
Accrued interest expense | 116 | 203 | ||
Borrowings | 88,906 | 133,139 | ||
Derivatives, at fair value | 1,334 | 685 | ||
Total liabilities held for sale | $ 99,539 | $ 142,563 | ||
[1] | March 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash4,841 3,308Interest receivable2,700 3,153CRE loans, pledged as collateral and net of allowances of $0.8 million and $0.8 million638,930 747,726Loans held for sale2 1,007Principal paydowns receivable13,900 5,820Investment securities available-for-sale, including securities pledged as collateral— 369Other assets186 58Total assets of consolidated VIEs$660,559 $761,441 | |||
[2] | March 31, 2017 December 31, 2016Liabilities of consolidated VIEs included in the total liabilities above: Accounts payable and other liabilities$71 $133Accrued interest expense444 519Borrowings381,168 480,103Total liabilities of consolidated VIEs$381,683 $480,755 |
DISCONTINUED OPERATIONS AND 109
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE Loans held for sale in the residential mortgage and middle market lending segments (Details) | 3 Months Ended | ||
Mar. 31, 2017USD ($)LoanTranche | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)Loan | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Amortized Cost | $ 7,000,000 | $ 7,000,000 | |
Fair Value | 118,531,000 | 124,968,000 | |
Impairment losses | $ 0 | $ 0 | |
Value of collateral | $ 4,500,000 | ||
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 | 24.40% | ||
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 | 17.20% | ||
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 | 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 | 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 | 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 | 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 | 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 | 45.50% | 39.20% | |
Utah | Residential mortgage loans | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Concentration of loan portfolio risk | 13.30% | 14.60% | |
CALIFORNIA | Residential mortgage loans | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Concentration of loan portfolio risk | 9.90% | 16.20% | |
Florida | Residential mortgage loans | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Concentration of loan portfolio risk | 7.60% | 5.90% | |
Virginia | Residential mortgage loans | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Concentration of loan portfolio risk | 5.50% | 5.90% | |
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 | ||
Value of collateral | $ 0 | ||
Number of tranches | Tranche | 2 | ||
Legacy CRE Whole Loans | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of loans, appraisals | Loan | 6 | ||
Impairment losses | $ 8,100,000 | ||
Discontinued Operations, Held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Quantity | Loan | 432 | 545 | |
Amortized Cost | $ 295,779,000 | $ 358,714,000 | |
Fair Value | $ 283,823,000 | $ 346,761,000 | |
Discontinued Operations, Held-for-sale | Legacy CRE Whole Loans | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Quantity | Loan | 7 | 8 | |
Amortized Cost | $ 143,922,000 | $ 158,192,000 | |
Fair Value | 143,907,000 | $ 158,178,000 | |
Impairment losses | $ 7,700,000 | ||
Discontinued Operations, Held-for-sale | Mezzanine loans | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Quantity | Loan | 1 | 1 | |
Amortized Cost | $ 0 | $ 0 | |
Fair Value | $ 0 | $ 0 | |
Discontinued Operations, Held-for-sale | Middle Market Loans | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Quantity | Loan | 7 | 7 | |
Amortized Cost | $ 52,382,000 | $ 52,382,000 | |
Fair Value | $ 40,441,000 | $ 40,443,000 | |
Discontinued Operations, Held-for-sale | Residential mortgage loans | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Quantity | Loan | 417 | 529 | |
Amortized Cost | $ 99,475,000 | $ 148,140,000 | |
Fair Value | 99,475,000 | 148,140,000 | |
Discontinued Operations, Held-for-sale | Direct Origination Middle-Market Loans | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Fair Value | $ 1,900,000 | $ 1,900,000 |
DISCONTINUED OPERATIONS AND 110
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE (Details) | Nov. 30, 2016USD ($) | Oct. 31, 2016USD ($)Amendment | Aug. 31, 2016USD ($)Amendment | Sep. 30, 2015USD ($)Amendment | Jul. 31, 2014USD ($) | Jun. 30, 2014USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Number of amendments to facility | Amendment | 5 | |||||
Primary Capital Advisors LLC | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Interest rate, stated percentage | 2.50% | |||||
Wells Fargo Securities, LLC | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Interest rate, stated percentage | 2.38% | |||||
Wells Fargo Bank | Primary Capital Advisors LLC | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Maximum amount of facility | $ 100,000,000 | |||||
Interest rate, stated percentage | 3.00% | |||||
Wells Fargo Bank | Primary Capital Mortgage LLC | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Maximum amount of facility | $ 150,000,000 | |||||
Number of amendments to facility | Amendment | 9 | |||||
New Century Bank | Primary Capital Advisors LLC | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Maximum amount of facility | $ 0 | |||||
Number of loan amendments | Amendment | 10 | |||||
First Tennessee Bank | Primary Capital Advisors LLC | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Maximum amount of facility | $ 25,000,000 | |||||
Interest rate, stated percentage | 2.75% | |||||
RMBS | Wells Fargo Bank | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Maximum amount of facility | $ 285,000,000 | |||||
Trust Certificates - Term Repurchase Facility | Wells Fargo Bank | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Maximum amount of facility | $ 30,000,000 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017USD ($)Loan | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | ||
Segment Reporting Information [Line Items] | ||||
Number of operating segments | Loan | 4 | |||
Interest income | $ 25,471 | $ 27,016 | ||
Interest expense | 14,254 | 13,302 | ||
Net interest income | 11,217 | 13,714 | ||
Other income from external customers | 1,630 | 1,237 | ||
Total revenues | 12,145 | 14,303 | ||
Segment operating expenses | 8,575 | 8,607 | ||
General and administrative | 3,863 | 3,642 | ||
Depreciation and amortization | 68 | 509 | ||
Impairment losses | 177 | 0 | ||
Provision (recovery) for loan and lease losses | 999 | (70) | $ 17,765 | |
Equity in earnings of unconsolidated entities | (361) | (2,222) | ||
Other (income) expense | (68) | 60 | ||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES | 10,673 | 8,856 | ||
Income tax (expense) benefit | (1,499) | (4) | ||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | 9,174 | 8,852 | ||
Total Assets | [1] | 1,995,820 | 2,053,543 | |
Continuing Operations | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 1,802,238 | 1,812,673 | ||
Commercial Real Estate Debt Investments | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 23,584 | 25,058 | ||
Other | 21 | 19 | ||
Interest expense | 9,187 | 8,224 | ||
Net interest income | 14,397 | 16,834 | ||
Other income from external customers | 0 | 0 | ||
Total revenues | 14,397 | 16,834 | ||
Segment operating expenses | 108 | 66 | ||
General and administrative | 774 | 392 | ||
Depreciation and amortization | 0 | 0 | ||
Impairment losses | 0 | |||
Provision (recovery) for loan and lease losses | 860 | 68 | ||
Equity in earnings of unconsolidated entities | (358) | (273) | ||
Other (income) expense | (6,954) | 3 | ||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES | 19,967 | 16,578 | ||
Income tax (expense) benefit | 0 | 0 | ||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | 19,967 | 16,578 | ||
Commercial Real Estate Debt Investments | Continuing Operations | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 1,634,571 | 1,624,779 | ||
Commercial Finance | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 1,764 | 1,852 | ||
Other | 1,605 | 1,210 | ||
Interest expense | 0 | 0 | ||
Net interest income | 1,764 | 1,852 | ||
Other income from external customers | 909 | 571 | ||
Total revenues | 2,673 | 2,423 | ||
Segment operating expenses | 218 | 266 | ||
General and administrative | 345 | 349 | ||
Depreciation and amortization | 36 | 474 | ||
Impairment losses | 177 | |||
Provision (recovery) for loan and lease losses | 139 | (138) | ||
Equity in earnings of unconsolidated entities | (3) | (1,949) | ||
Other (income) expense | 724 | (1,383) | ||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES | 1,037 | 4,804 | ||
Income tax (expense) benefit | (1,499) | 89 | ||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | (462) | 4,893 | ||
Commercial Finance | Continuing Operations | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 142,508 | 160,414 | ||
Residential Mortgage Lending | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 119 | 98 | ||
Other | 0 | 0 | ||
Interest expense | 0 | 0 | ||
Net interest income | 119 | 98 | ||
Other income from external customers | 0 | 0 | ||
Total revenues | 119 | 98 | ||
Segment operating expenses | 123 | 33 | ||
General and administrative | 137 | 60 | ||
Depreciation and amortization | 0 | 0 | ||
Impairment losses | 0 | |||
Provision (recovery) for loan and lease losses | 0 | 0 | ||
Equity in earnings of unconsolidated entities | 0 | 0 | ||
Other (income) expense | (19) | (81) | ||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES | (122) | 86 | ||
Income tax (expense) benefit | 0 | (116) | ||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | (122) | (30) | ||
Residential Mortgage Lending | Continuing Operations | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 10,587 | 12,460 | ||
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 4 | 8 | ||
Other | 4 | 8 | ||
Interest expense | 5,067 | 5,078 | ||
Net interest income | (5,063) | (5,070) | ||
Other income from external customers | 19 | 18 | ||
Total revenues | (5,044) | (5,052) | ||
Segment operating expenses | 3,019 | 4,161 | ||
General and administrative | 2,607 | 2,841 | ||
Depreciation and amortization | 32 | 35 | ||
Impairment losses | 0 | |||
Provision (recovery) for loan and lease losses | 0 | 0 | ||
Equity in earnings of unconsolidated entities | 0 | 0 | ||
Other (income) expense | (493) | 523 | ||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES | (10,209) | (12,612) | ||
Income tax (expense) benefit | 0 | 23 | ||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | (10,209) | (12,589) | ||
Corporate and Other | Continuing Operations | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 14,572 | $ 15,020 | ||
Total | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 25,471 | 27,016 | ||
Other | 1,630 | 1,237 | ||
Interest expense | 14,254 | 13,302 | ||
Net interest income | 11,217 | 13,714 | ||
Other income from external customers | 928 | 589 | ||
Total revenues | 12,145 | 14,303 | ||
Segment operating expenses | 3,468 | 4,526 | ||
General and administrative | 3,863 | 3,642 | ||
Depreciation and amortization | 68 | 509 | ||
Provision (recovery) for loan and lease losses | 999 | (70) | ||
Equity in earnings of unconsolidated entities | (361) | (2,222) | ||
Other (income) expense | (6,742) | (938) | ||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES | 10,673 | 8,856 | ||
Income tax (expense) benefit | (1,499) | (4) | ||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | 9,174 | 8,852 | ||
External Customers | Commercial Real Estate Debt Investments | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 23,563 | 25,039 | ||
External Customers | Commercial Finance | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 159 | 642 | ||
External Customers | Residential Mortgage Lending | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 119 | 98 | ||
External Customers | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 0 | 0 | ||
External Customers | Total | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | $ 23,841 | $ 25,779 | ||
[1] | March 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash4,841 3,308Interest receivable2,700 3,153CRE loans, pledged as collateral and net of allowances of $0.8 million and $0.8 million638,930 747,726Loans held for sale2 1,007Principal paydowns receivable13,900 5,820Investment securities available-for-sale, including securities pledged as collateral— 369Other assets186 58Total assets of consolidated VIEs$660,559 $761,441 |
SEGMENT REPORTING Footnotes (De
SEGMENT REPORTING Footnotes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Interest expense | $ 14,254 | $ 13,302 | |
Impairment losses | 177 | 0 | |
Assets held for sale | 193,600 | $ 240,900 | |
Convertible Debt | |||
Debt Instrument [Line Items] | |||
Interest expense | 4,400 | 4,400 | |
Unsecured Junior Subordinated Debentures | |||
Debt Instrument [Line Items] | |||
Interest expense | 637 | 641 | |
Commercial Finance | |||
Debt Instrument [Line Items] | |||
Interest expense | 0 | 0 | |
Impairment losses | 177 | ||
Residential mortgage loans | |||
Debt Instrument [Line Items] | |||
Interest expense | 0 | $ 0 | |
Impairment losses | 0 | ||
Cash from continuing operations | $ 33,500 | $ 22,900 |