Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 09, 2018 | Jun. 30, 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 Well-know Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 31,653,426 | ||
Public Float | $ 296,374,661 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
ASSETS | |||
Cash and cash equivalents | [1] | $ 181,490 | $ 116,026 |
Restricted cash | [1] | 22,874 | 3,399 |
Interest receivable | [1] | 6,859 | 6,404 |
CRE loans, pledged as collateral and net of allowances of $5,328 and $3,829 | [1] | 1,284,822 | |
Investment securities available-for-sale, including securities pledged as collateral of $169,582 and $97,458 | [1] | 211,737 | 124,968 |
Investment securities, trading | [1] | 178 | 4,492 |
Loans held for sale | [1] | 13 | 1,007 |
Principal paydowns receivable | [1] | 76,129 | 19,280 |
Investments in unconsolidated entities | [1] | 12,051 | 87,919 |
Derivatives, at fair value | [1] | 602 | 647 |
Direct financing leases, net of allowances of $735 and $465 | [1] | 151 | 527 |
Intangible assets | [1] | 0 | 213 |
Other assets | [1] | 7,451 | 14,673 |
Deferred tax asset, net | [1] | 0 | 4,255 |
Assets held for sale (amounts include $61,841 and $158,178 of legacy CRE loans held for sale in continuing operations, see Note 24) | [1] | 107,718 | 383,455 |
Total assets | [1] | 1,912,075 | 2,053,543 |
LIABILITIES | |||
Accounts payable and other liabilities | [2] | 5,153 | 4,480 |
Management fee payable - related party | [2] | 1,035 | 1,318 |
Accrued interest expense | [2] | 4,387 | 4,979 |
Borrowings | [2] | 1,163,485 | 1,191,456 |
Distributions payable | [2] | 5,581 | 5,560 |
Preferred stock redemption liability | [2] | 50,000 | 0 |
Derivatives, at fair value | [2] | 76 | 97 |
Accrued tax liability | [2] | 540 | 0 |
Liabilities held for sale (see Note 24) | [2] | 10,342 | 142,563 |
Total liabilities | [2] | 1,240,599 | 1,350,453 |
EQUITY | |||
Common stock, par value $0.001: 125,000,000 shares authorized; 31,429,892 and 31,050,020 shares issued and outstanding (including 483,073 and 400,050 unvested restricted shares) | 31 | 31 | |
Additional paid-in capital | 1,187,911 | 1,218,352 | |
Accumulated other comprehensive income | 1,297 | 3,081 | |
Distributions in excess of earnings | (517,773) | (517,177) | |
Total Resource Capital Corp. stockholders' equity | 671,476 | 704,299 | |
Non-controlling interests | 0 | (1,209) | |
Total equity | 671,476 | 703,090 | |
TOTAL LIABILITIES AND EQUITY | 1,912,075 | 2,053,543 | |
8.50% Series A Preferred Stock | |||
EQUITY | |||
Preferred stock, par value $0.001 | 0 | 1 | |
8.25% Series B Preferred Stock | |||
EQUITY | |||
Preferred stock, par value $0.001 | 5 | 6 | |
8.625% Series C Preferred Stock | |||
EQUITY | |||
Preferred stock, par value $0.001 | $ 5 | $ 5 | |
[1] | December 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $— Restricted cash$20,846 $3,308 Investments securities available-for-sale, pledged as collateral, at fair value— 369 Loans held for sale13 1,007Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million603,110 747,726 Interest receivable3,347 3,153 Principal paydown receivable72,207 5,820 Other assets73 58 Total assets of consolidated VIEs$699,596 $761,441 | ||
[2] | December 31, 2017 December 31, 2016Liabilities of consolidated VIEs included in the total liabilities above: Borrowings$416,655 $480,103 Accrued interest expense592 519 Derivatives, at fair value— — Unsettled loan purchases— — Accounts payable and other liabilities96 133 Total liabilities of consolidated VIEs$417,343 $480,755 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financing receivable, allowance for credit losses | $ 5,328 | $ 3,829 |
Investment securities available-for-sale, amount pledged as collateral | 169,582 | 97,458 |
Direct financing leases, allowance | 6,063 | 4,294 |
Investment securities available-for-sale | $ 211,737 | $ 124,968 |
Preferred stock, par value (in dollars per share) | $ 0.001 | |
Preferred stock, shares authorized (in shares) | 100,000,000 | |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock, shares issued (in shares) | 31,429,892 | 31,050,020 |
Common stock, shares outstanding (in shares) | 31,429,892 | 31,050,020 |
Common stock, shares issued, non-vested restricted shares (in shares) | 483,073 | 400,050 |
Assets of consolidated Variable Interest Entities (VIEs) included in the total assets above: | ||
Restricted cash | $ 20,846 | $ 3,308 |
Interest receivable | 3,347 | 3,153 |
Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million | 603,110 | 747,726 |
Investments securities available-for-sale, pledged as collateral, at fair value | 0 | 369 |
Loans held for sale | 13 | 1,007 |
Principal paydown receivable | 72,207 | 5,820 |
Other assets | 73 | 58 |
Total assets of consolidated VIEs | 699,596 | 761,441 |
Liabilities of consolidated VIEs included in the total liabilities above: | ||
Accounts payable and other liabilities | 96 | 133 |
Accrued interest expense | 592 | 519 |
Borrowings | 416,655 | 480,103 |
Total liabilities of consolidated VIEs | 417,343 | 480,755 |
Variable interest entity, loans, pledged as collateral, allowance | $ 1,330 | $ 763,000 |
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) | 4,613,596 | 5,544,579 |
Preferred stock, shares outstanding (in shares) | 4,613,596 | 5,544,579 |
8.625% Series C 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 | 8.625% | 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 |
Loans Receivable - Direct Financing Leases | ||
Direct financing leases, allowance | $ 735 | $ 465 |
Discontinued Operations, Held-for-sale | ||
Investment securities available-for-sale | 93,063 | 346,761 |
Legacy CRE whole loans | Discontinued Operations, Held-for-sale | ||
Investment securities available-for-sale | $ 61,841 | $ 158,178 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest income: | |||
CRE loans | $ 88,268 | $ 85,229 | $ 99,334 |
Securities | 8,501 | 22,384 | 18,332 |
Other | 2,549 | 5,005 | 4,252 |
Total interest income | 99,318 | 112,618 | 121,918 |
Interest expense | 57,657 | 53,747 | 56,530 |
Net interest income | 41,661 | 58,871 | 65,388 |
Other revenue | 2,048 | 3,809 | 4,931 |
Total revenues | 43,709 | 62,680 | 70,319 |
OPERATING EXPENSES | |||
Management fees - related party | 13,117 | 12,991 | 13,306 |
Equity compensation - related party | 2,738 | 3,025 | 2,420 |
General and administrative | 15,846 | 15,197 | 16,346 |
Depreciation and amortization | 139 | 1,566 | 4,245 |
Impairment losses | 177 | 26,470 | 372 |
Provision for loan and lease losses, net | 1,772 | 17,765 | 41,088 |
Total operating expenses | 33,789 | 77,014 | 77,777 |
Net interest and other revenues less operating expenses | 9,920 | (14,334) | (7,458) |
OTHER INCOME (EXPENSE) | |||
Equity in earnings of unconsolidated entities | 39,545 | 5,973 | 2,388 |
Net realized and unrealized gain on investment securities available-for-sale and loans and derivatives | 18,334 | 4,066 | 18,459 |
Net realized and unrealized (loss) gain on investment securities, trading | (954) | 2,398 | (547) |
Fair value adjustments on financial assets held for sale | (1,831) | 0 | 0 |
Unrealized gain and net interest income on linked transactions, net | 0 | 0 | 235 |
Loss on extinguishment/reissuance of debt | (10,365) | 0 | (1,403) |
Other (expense) income | (579) | 1,555 | 759 |
Total other income | 44,150 | 13,992 | 19,891 |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES | 54,070 | (342) | 12,433 |
Income tax expense | (6,613) | (10,992) | (1,354) |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | 47,457 | (11,334) | 11,079 |
NET (LOSS) INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX | (14,116) | (19,260) | 6,104 |
NET INCOME (LOSS) | 33,341 | (30,594) | 17,183 |
Net income allocated to preferred shares | (24,057) | (24,091) | (24,437) |
Carrying value (less than) in excess of consideration paid for preferred shares | (3,803) | ||
Carrying value (less than) in excess of consideration paid for preferred shares | 1,500 | 0 | |
Net loss (income) allocable to non-controlling interest, net of taxes | 196 | 229 | (6,628) |
NET INCOME (LOSS) ALLOCABLE TO COMMON SHARES | $ 5,677 | $ (52,956) | $ (13,882) |
NET (LOSS) INCOME PER COMMON SHARE - BASIC: | |||
CONTINUING OPERATIONS (in dollars per share) | $ 0.64 | $ (1.10) | $ (0.62) |
DISCONTINUED OPERATIONS (in dollars per share) | (0.46) | (0.63) | 0.19 |
TOTAL NET INCOME (LOSS) PER COMMON SHARE - BASIC (in dollars per shares) | 0.18 | (1.73) | (0.43) |
NET INCOME (LOSS) PER COMMON SHARE - DILUTED: | |||
CONTINUING OPERATIONS (in dollars per share) | 0.64 | (1.10) | (0.62) |
DISCONTINUED OPERATIONS (in dollars per share) | (0.46) | (0.63) | 0.19 |
NET INCOME (LOSS) PER COMMON SHARE - DILUTED (in dollars per shares) | $ 0.18 | $ (1.73) | $ (0.43) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC (in shares) | 30,836,400 | 30,539,369 | 32,280,319 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED (in shares) | 31,075,787 | 30,539,369 | 32,280,319 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 33,341 | $ (30,594) | $ 17,183 |
Other comprehensive income (loss): | |||
Reclassification adjustment for realized losses (gains) on available-for-sale securities included in net income | (534) | (1,916) | (13,435) |
Unrealized (losses) gains on available-for-sale securities, net | (1,870) | 5,850 | (4,781) |
Reclassification adjustments associated with unrealized gains (losses) from interest rate hedges included in net income | 18 | (5) | 275 |
Unrealized gains on derivatives, net | 602 | 118 | 5,221 |
Foreign currency translation adjustments | 0 | 0 | 349 |
Total other comprehensive income (loss) | (1,784) | 4,047 | (12,371) |
Comprehensive income (loss) before allocation to non-controlling interests and preferred shares | 31,557 | (26,547) | 4,812 |
Unrealized losses on available-for-sale securities allocable to non-controlling interests | 0 | 0 | 3,405 |
Net loss (income) allocable to non-controlling interests | 196 | 229 | (6,628) |
Net income allocated to preferred shares | (24,057) | (24,091) | (24,437) |
Carrying value (less than) in excess of consideration paid for preferred shares | (3,803) | ||
Carrying value in excess of consideration paid for preferred shares | 1,500 | 0 | |
Comprehensive income (loss) allocable to common shares | $ 3,893 | $ (48,909) | $ (22,848) |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Total Stockholders' Equity | Common Stock | Preferred StockPreferred Shares - Series A | Preferred StockPreferred Shares - Series B | Preferred StockPreferred Shares - Series C | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings | Distributions in Excess of Earnings | Non-Controlling Interests |
Beginning balance (in shares) at Dec. 31, 2014 | 33,243,794 | ||||||||||
Beginning balance at Dec. 31, 2014 | $ 952,111 | $ 935,523 | $ 33 | $ 1 | $ 6 | $ 5 | $ 1,245,345 | $ 6,043 | $ 0 | $ (315,910) | $ 16,588 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Proceeds from dividend reinvestment and stock purchase plan (in shares) | 20,963 | ||||||||||
Proceeds from dividend reinvestment and stock purchase plan | 328 | 328 | $ 0 | 328 | |||||||
Proceeds from issuance of preferred stock | 3,113 | 3,113 | 0 | 0 | 3,113 | ||||||
Offering costs | (185) | (185) | (185) | ||||||||
Discount on 8.00% convertible senior notes | 2,528 | 2,528 | |||||||||
Stock based compensation (in shares) | 307,611 | ||||||||||
Stock based compensation | 0 | 0 | $ 0 | 0 | |||||||
Amortization of stock based compensation | 3,145 | 3,145 | 3,145 | ||||||||
Purchase and retirement of common shares (in shares) | (2,001,263) | ||||||||||
Purchase and retirement of common shares | (25,929) | (25,929) | $ (1) | (25,928) | |||||||
Forfeiture of unvested stock (in shares) | (8,381) | ||||||||||
Net income (loss) | 17,183 | 10,555 | 10,555 | 0 | 6,628 | ||||||
Preferred dividends | (24,437) | (24,437) | (24,437) | 0 | |||||||
Securities available-for-sale, fair value adjustment, net | (18,216) | (14,811) | (14,811) | (3,405) | |||||||
Designated derivatives, fair value adjustment | 5,496 | 5,496 | 5,496 | 0 | |||||||
Foreign currency translation adjustment | 349 | 349 | 349 | ||||||||
Distributions on common stock | (76,811) | (76,811) | 13,882 | (90,693) | |||||||
Contributions from (distributions to), net non-controlling interests | (11,915) | (11,915) | |||||||||
Ending balance (in shares) at Dec. 31, 2015 | 31,562,724 | ||||||||||
Ending balance at Dec. 31, 2015 | $ 826,760 | 818,864 | $ 32 | 1 | 6 | 5 | 1,228,346 | (2,923) | 0 | (406,603) | 7,896 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Proceeds from dividend reinvestment and stock purchase plan (in shares) | 10,000 | 9,980 | |||||||||
Proceeds from dividend reinvestment and stock purchase plan | $ 117 | 117 | $ 0 | 117 | |||||||
Discount on 8.00% convertible senior notes | 19 | 19 | |||||||||
Stock based compensation (in shares) | 307,070 | ||||||||||
Stock based compensation | 0 | 0 | $ 0 | 0 | |||||||
Amortization of stock based compensation | 3,964 | 3,964 | 3,964 | ||||||||
Purchase and retirement of common shares (in shares) | (813,834) | ||||||||||
Purchase and retirement of common shares | (9,480) | (9,480) | $ (1) | (9,479) | |||||||
Forfeiture of unvested stock (in shares) | (15,920) | ||||||||||
Net income (loss) | (30,594) | (30,365) | (30,365) | 0 | (229) | ||||||
Preferred dividends | (24,091) | (24,091) | (24,091) | ||||||||
Preferred stock redemption | (3,115) | (3,115) | (4,615) | 1,500 | |||||||
Securities available-for-sale, fair value adjustment, net | 3,934 | 3,934 | 3,934 | 0 | |||||||
Designated derivatives, fair value adjustment | 113 | 113 | 113 | ||||||||
Foreign currency translation adjustment | 0 | ||||||||||
Distributions on common stock | $ (40,686) | (40,686) | 52,956 | (93,642) | |||||||
Ending balance (in shares) at Dec. 31, 2016 | 31,050,020 | 31,050,020 | |||||||||
Ending balance at Dec. 31, 2016 | $ 703,090 | 704,299 | $ 31 | 1 | 6 | 5 | 1,218,352 | 3,081 | 0 | (517,177) | (1,209) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Offering costs | (385) | (385) | (385) | ||||||||
Discount on 8.00% convertible senior notes | 14,231 | 14,231 | |||||||||
Stock based compensation (in shares) | 422,622 | ||||||||||
Stock based compensation | 539 | 539 | $ 0 | 539 | |||||||
Amortization of stock based compensation | 3,172 | 3,172 | 3,172 | ||||||||
Purchase and retirement of common shares (in shares) | (16,137) | ||||||||||
Purchase and retirement of common shares | (150) | (150) | $ 0 | (150) | |||||||
Forfeiture of unvested stock (in shares) | (26,613) | ||||||||||
Net income (loss) | 33,341 | 33,537 | 33,537 | 0 | (196) | ||||||
Preferred dividends | (24,057) | (24,057) | (24,057) | ||||||||
Preferred stock redemption | (50,049) | (50,049) | (1) | (1) | (46,244) | (3,803) | |||||
Securities available-for-sale, fair value adjustment, net | (2,403) | (2,403) | (2,403) | 0 | |||||||
Designated derivatives, fair value adjustment | 619 | 619 | 619 | ||||||||
Foreign currency translation adjustment | 0 | ||||||||||
Distributions on common stock | (6,273) | (6,273) | (5,677) | (596) | |||||||
Repurchase of conversion option | (194) | (194) | (194) | ||||||||
Contributions from (distributions to), net non-controlling interests | $ (5) | (1,410) | (1,410) | 1,405 | |||||||
Ending balance (in shares) at Dec. 31, 2017 | 31,429,892 | 31,429,892 | |||||||||
Ending balance at Dec. 31, 2017 | $ 671,476 | $ 671,476 | $ 31 | $ 0 | $ 5 | $ 5 | $ 1,187,911 | $ 1,297 | $ 0 | $ (517,773) | $ 0 |
CONSOLIDATED STATEMENT OF CHAN7
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY Parenthetical | Dec. 31, 2017 | Dec. 31, 2016 |
4.50% Convertible Senior Notes | ||
Debt instrument, interest rate, stated percentage | 4.50% | |
8.00% Convertible Senior Notes | ||
Debt instrument, interest rate, stated percentage | 8.00% | 8.00% |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017USD ($)Entity | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net income (loss) | $ 33,341 | $ (30,594) | $ 17,183 | |||
Net loss (income) from discontinued operations, net of tax | 14,116 | 19,260 | (6,104) | |||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | 47,457 | (11,334) | 11,079 | |||
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by (used in) continuing operating activities: | ||||||
Provision for loan and lease losses, net | 1,772 | 17,765 | 41,088 | |||
Depreciation, amortization and accretion | 3,150 | (16,458) | 13,812 | |||
Amortization of stock based compensation | 2,738 | 3,025 | 2,420 | |||
Deferred income tax expense (benefit) | 4,763 | 8,293 | (781) | |||
Provision for deferred taxes | 0 | 11,294 | 0 | |||
Sale of and principal payments on syndicated corporate loans held for sale | 1,471 | 0 | 0 | |||
Sale (purchase) of and principal payments on investment securities, trading, net | 4,493 | 269 | (5,486) | |||
Net realized and unrealized loss (gain) on investment securities, trading | 954 | (2,398) | 547 | |||
Net realized and unrealized gain on investment securities available-for-sale and loans and derivatives | (18,334) | (4,066) | (18,459) | |||
Fair value adjustments on financial assets held for sale | 1,831 | 0 | 0 | |||
Loss on extinguishment of debt | 10,365 | 0 | 1,403 | |||
Gain on sale of real estate | 0 | (64) | (206) | |||
Settlement of derivative instruments | 0 | (72) | 3,944 | |||
Impairment losses | 177 | 26,470 | 372 | |||
Unrealized gain and net interest income on linked transactions, net | 0 | 0 | (235) | |||
Equity in net earnings of unconsolidated entities | (39,545) | (5,973) | (2,388) | |||
Return on investments in unconsolidated entities | 50,046 | 0 | 0 | |||
Changes in operating assets and liabilities, net of acquisitions | ||||||
(Increase) decrease in restricted cash | (1,664) | 551 | 2,292 | |||
Decrease in interest receivable, net of purchased interest | 170 | 738 | 1,688 | |||
Increase in management fee payable - related party | 881 | 185 | 0 | |||
Increase (decrease) in accounts payable and other liabilities | 750 | 447 | (2,569) | |||
(Decrease) increase in accrued interest expense | (592) | (91) | 3,063 | |||
Decrease (increase) in other assets | 2,984 | (3,071) | (10,025) | |||
Net cash provided by continuing operating activities | 73,867 | 25,510 | 41,559 | |||
Net cash provided by (used in) discontinued operating activities | 146,931 | (43,372) | 28,436 | |||
Net cash provided by (used in) operating activities | 220,798 | (17,862) | 69,995 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
(Increase) decrease in restricted cash | (17,863) | 19,904 | 79,799 | |||
Deconsolidation of VIEs | 0 | [1] | (472) | [1] | 0 | [1] |
Origination and purchase of loans | (555,359) | (238,189) | (731,207) | |||
Principal payments received on loans and leases | 610,536 | 337,656 | 496,564 | |||
Proceeds from sale of loans | 0 | 556 | 102,906 | |||
Purchase of investment securities available-for-sale | (172,081) | (17,428) | (40,375) | |||
Principal payments on investment securities available-for-sale | 56,715 | 100,802 | 75,960 | |||
Proceeds from sale of investment securities available-for-sale | 40,048 | 2,818 | 65,787 | |||
Acquisition of legacy collateralized debt obligation assets | 0 | (67,781) | 0 | |||
Acquisition of the remaining interest in Life Care Funding, LLC | (5) | 0 | 0 | |||
Proceeds from the sale of an investment in unconsolidated entity | 16,159 | 0 | 0 | |||
Return of capital from (investments in) unconsolidated entities | 48,603 | (119) | 2,715 | |||
Settlement of derivative instruments | (1,491) | 1,013 | 5,553 | |||
Proceeds from sale of real estate held for sale | 0 | 0 | 121 | |||
Purchase of furniture and fixtures | 0 | (28) | 0 | |||
Acquisition of property and equipment | 0 | 0 | (14) | |||
Principal payments received on loans - related parties | 0 | 0 | 558 | |||
Net cash provided by continuing investing activities | 25,262 | 141,093 | 58,367 | |||
Net cash provided by (used in) discontinued investing activities | 19,070 | 161,501 | (117,872) | |||
Net cash provided by (used in) investing activities | 44,332 | 302,594 | (59,505) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Net proceeds from issuances of common stock and dividend reinvestment and stock purchase plan (net of offering costs of $385, $0 and $100) | 0 | 115 | 228 | |||
Repurchase of common stock | 0 | (9,480) | (25,929) | |||
Retirement of common stock | (149) | 0 | 0 | |||
Repurchase of preferred stock | 0 | (3,114) | 0 | |||
Net proceeds from repurchase agreements | 24,882 | 119,420 | 2,432 | |||
Proceeds from borrowings: | ||||||
Securitizations | 251,449 | 0 | 505,862 | |||
Convertible senior notes | 121,589 | 0 | 99,000 | |||
Reissuance of debt | 0 | 0 | 16,597 | |||
Payments on borrowings: | ||||||
Collateralized debt obligations | 0 | 0 | (327,537) | |||
Securitizations | (317,021) | (276,397) | (205,125) | |||
Convertible senior notes | (108,690) | 0 | 0 | |||
Payment of debt issuance costs | (8,278) | (1,977) | (12,136) | |||
Distributions to non-controlling interest and subordinated note holders | 0 | 0 | (12,433) | |||
Proceeds received from non-controlling interest | 0 | 0 | 0 | |||
Distributions paid on preferred stock | (24,057) | (24,158) | (24,390) | |||
Distributions paid on common stock | (6,252) | (52,409) | (90,100) | |||
Net cash used in continuing financing activities | (66,527) | (248,000) | (70,503) | |||
Net cash (used in) provided by discontinued financing activities | (133,139) | 538 | 58,864 | |||
Net cash used in financing activities | (199,666) | (247,462) | (11,639) | |||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 65,464 | 37,270 | (1,149) | |||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 116,026 | [2] | 78,756 | 79,905 | ||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 181,490 | [2] | 116,026 | [2] | 78,756 | |
SUPPLEMENTAL DISCLOSURE: | ||||||
Interest expense paid in cash | 48,902 | 46,959 | 48,089 | |||
Income taxes paid in cash | 517 | 4,051 | 11,710 | |||
8.25% Series B Preferred Stock | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Proceeds from issuance of 8.25% Series B Cumulative Redeemable Preferred Stock (net of offering costs of $0, $0 and $85) | 0 | 0 | 3,028 | |||
Northport TRS, LLC | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Proceeds from the sale of an investment in unconsolidated entity | $ 0 | $ 2,361 | $ 0 | |||
VIE, Primary Beneficiary | ||||||
SUPPLEMENTAL DISCLOSURE: | ||||||
Number of consolidated VIEs | Entity | 7 | |||||
[1] | Cash and cash equivalents as of January 1, 2016 decreased by $472,000 due to the adoption of the amendments to the consolidation accounting guidance resulting in the deconsolidation of five VIEs. | |||||
[2] | December 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $— Restricted cash$20,846 $3,308 Investments securities available-for-sale, pledged as collateral, at fair value— 369 Loans held for sale13 1,007Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million603,110 747,726 Interest receivable3,347 3,153 Principal paydown receivable72,207 5,820 Other assets73 58 Total assets of consolidated VIEs$699,596 $761,441 |
CONSOLIDATED STATEMENTS OF CAS9
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Common Stock | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Offering costs on stock issuance | $ 385 | $ 0 | $ 100 |
8.25% Series B Preferred Stock | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Offering costs on stock issuance | $ 0 | $ 0 | $ 85 |
Preferred stock, coupon authorized | 8.25% | 8.25% |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | NOTE 1 - ORGANIZATION Resource Capital Corp., a Maryland corporation, and its subsidiaries (collectively, the "Company") is a real estate investment trust ("REIT") that is primarily focused on originating, holding and managing commercial mortgage loans and commercial real estate-related debt investments. The Company is externally managed by Resource Capital Manager, Inc. (the "Manager"), which is an indirect wholly-owned subsidiary of C-III Capital Partners LLC ("C-III"), a leading commercial real estate ("CRE") investment management and services company engaged in a broad range of activities. C-III is the beneficial owner of approximately 2.4% of the Company's outstanding common shares at December 31, 2017 . The Company has qualified, and expects to qualify in the current fiscal year, as a REIT. 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 loans underwritten prior to 2010 ("Legacy CRE loans"), exiting underperforming non-core asset classes (residential real estate-related assets and commercial finance assets) and establishing a dividend policy based on sustainable earnings. As a result, the Company evaluated its residential mortgage and middle market lending segments' assets and liabilities and determined both met all of the criteria to be classified 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. See Note 24 for further discussion. In July 2016, the Company underwent an internal tax restructuring in order to reduce costs and increase efficiencies by consolidating 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 limited liability companies ("LLCs"). In addition, several directly owned subsidiaries of the Company merged into a wholly-owned taxable REIT subsidiary ("TRS") and were dissolved upon the restructuring. The following subsidiaries are consolidated in the Company's financial statements: • RCC Real Estate, Inc. ("RCC Real Estate"), a wholly-owned subsidiary, holds CRE loans, CRE-related securities and historically has held direct investments in real estate. RCC Real Estate owns 100% of the equity of the following VIEs: ◦ Resource Real Estate Funding CDO 2006-1, Ltd. ("RREF CDO 2006-1") and Resource Real Estate Funding CDO 2007-1, Ltd. ("RREF CDO 2007-1") were established to complete a collateralized debt obligation ("CDO") issuance secured by a portfolio of CRE loans and commercial mortgage-backed securities ("CMBS"). These entities were deconsolidated in January 2016, and the retained investments were accounted for as an investment securities available-for-sale in the Company's consolidated financial statements. In April 2016 and November 2016, RREF CDO 2006-1 and RREF CDO 2007-1, respectively, were liquidated in exchange for the Company's interests. The remaining assets of the CDOs were distributed to the Company, comprised of investment securities available-for-sale and CRE loans held for investment that were recorded at fair value. ◦ Resource Capital Corp. CRE Notes 2013, Ltd. ("RCC CRE Notes 2013") and Resource Capital Corp. 2014-CRE2, Ltd. ("RCC 2014-CRE2") were established to complete CRE securitization issuances secured by a portfolio of CRE loans. In December 2016 and August 2017, RCC CRE Notes 2013 and RCC 2014-CRE2, respectively, were liquidated and, as a result, the remaining assets were returned to the Company in exchange for the Company's preference shares and equity notes in the securitizations. ◦ Resource Capital Corp. 2015-CRE3, Ltd. ("RCC 2015-CRE3"), Resource Capital Corp. 2015-CRE4, Ltd. ("RCC 2015-CRE4") and Resource Capital Corp. 2017-CRE5, Ltd. ("RCC 2017-CRE5") were each established to complete CRE securitization issuances secured by a separate portfolio of loans. • RCC Commercial, Inc. ("RCC Commercial"), a wholly-owned subsidiary, holds a 29.6% investment in NEW NP, LLC, which holds syndicated corporate loan investments and one directly originated middle market loan. NEW NP, LLC owned 100% of Northport TRS, LLC which held middle market loans. NEW NP, LLC sold its interest in Northport TRS, LLC in August 2016. In November 2016, NEW NP, LLC's operations were reclassified to discontinued operations. See Note 24 for further discussion. RCC Commercial also owns 100% of Apidos CDO III, Ltd. ("Apidos CDO III"). Apidos CDO III, a TRS, was established to complete a CDO issuance secured by a portfolio of syndicated corporate loan and asset-backed securities ("ABS"). In June 2015, the Company liquidated Apidos CDO III and, as a result, all of the assets were sold. • RCC Commercial II, Inc. ("Commercial II"), a wholly-owned subsidiary, invests in structured notes and subordinated notes of foreign, syndicated corporate loan collateralized loan obligation ("CLO") vehicles. Commercial II also owns equity in the following VIEs: ◦ Commercial II owns 100% of the equity of Apidos Cinco CDO ("Apidos Cinco"), a TRS that was established to complete a CDO issuance secured by a portfolio of syndicated corporate loans, ABS and corporate bonds. This entity was deconsolidated in January 2016, and the retained investment was accounted for as an investment security, available-for-sale. In November 2016, the Company liquidated and sold substantially all of Apidos Cinco's assets. The remaining assets were consolidated by the Company upon liquidation and are marked at fair value. ◦ Commercial II owns 68.3% of the equity of Whitney CLO I, Ltd. ("Whitney CLO I"), a TRS that holds residual assets following a September 2013 liquidation. • RCC Commercial III, Inc. ("Commercial III"), a wholly-owned subsidiary, holds investments in syndicated corporate loan investments. Commercial III owns 90% of the equity of Apidos CDO I, LTD. ("Apidos CDO I"). Apidos CDO I, a 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 CDO I and as a result substantially all of the assets were sold. • RSO EquityCo, LLC, a wholly-owned subsidiary, owns 10% of the equity of Apidos CDO I. • RCC Residential Portfolio, Inc. ("RCC Resi Portfolio"), a wholly-owned subsidiary, historically invested in residential mortgage-backed securities ("RMBS"). The remaining securities were sold in September 2017. • RCC Residential Portfolio TRS, Inc. ("RCC Resi TRS"), a wholly-owned TRS, 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), originates and services residential mortgage loans. In November 2016, PCM's operations were reclassified to discontinued operations. In 2017, PCM sold its residential mortgage loan pipeline, its mortgage servicing rights ("MSR") and substantially all of its remaining loans held for sale. See Note 24 for further discussion. ◦ RCM Global Manager, LLC ("RCM Global Manager") owns 63.2% of RCM Global LLC ("RCM Global"). RCM Global holds a portfolio of investment securities available-for-sale. RCM Global was deconsolidated in January 2016 and the retained investment is now accounted for as an equity method investment. ◦ RCC Residential Depositor, LLC ("RCC Resi Depositor") owns 100% of RCC Residential Acquisition, LLC ("RCC Resi Acquisition"). RCC Resi Acquisition purchased residential mortgage loans from PCM and transferred the assets to RCC Residential Opportunities Trust ("RCC Opp Trust"). RCC Opp Trust, a wholly owned statutory trust, held a portfolio of residential mortgage loans available-for-sale. ◦ Long Term Care Conversion Funding, LLC ("LTCC Funding") provides a financing facility to fund the acquisition of life settlement contracts. ◦ Life Care Funding, LLC ("LCF") was established for the purpose of acquiring life settlement contracts. In July 2017, the Company purchased the balance of the outstanding membership interests of LCF, therefore, becoming a single member LLC. ◦ RCC TRS, LLC ("RCC TRS") holds investments in direct financing leases and investment securities, trading. RCC TRS also owns equity in the following: • RCC TRS owns 100% of the equity of Resource TRS, LLC, which in turn holds a 25.8% investment in NEW NP, LLC, which is reported in discontinued operations. ▪ RCC TRS owns 44.6% of the equity in NEW NP, LLC, which is reported in discontinued operations. ▪ RCC TRS owns 80.2% of the equity in Pelium Capital, L.P. ("Pelium Capital"). Pelium Capital holds investment securities, trading and was deconsolidated in January 2016. The retained investment is now accounted for as an equity method investment. ◦ Resource Capital Asset Management, LLC ("RCAM") 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. ("CVC Credit Partners"), formerly Apidos Capital Management ("ACM"), a subsidiary of CVC Capital Partners SICAV-FIS, S.A., ("CVC"). C-III sold its 24.0% interest in CVC Credit Partners in August 2017. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 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"). The consolidated financial statements include the accounts of the Company, majority owned or controlled subsidiaries and VIEs for which the Company is considered the primary beneficiary. All inter-company transactions and balances have been eliminated in consolidation. Variable Interest Entities A VIE is defined as an entity in which equity investors (i) do not have a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional financial support from other parties. A VIE is required to be consolidated by its primary beneficiary, which is defined as the party that (a) has the power to control the activities that most significantly impact the VIE's economic performance and (b) has the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company considers the following criteria in determining whether an entity is a VIE: 1. The equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by any parties, including the equity holders. 2. The equity investors lack one or more of the following essential characteristics of a controlling financial interest. a. The direct ability to make decisions about the entity's activities through voting rights or similar rights. b. The obligation to absorb the expected losses of the entity. c. The right to receive the expected residual returns of the entity.The equity investors have voting rights that are not proportionate to their economic interests, and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. In determining whether the Company is the primary beneficiary of a VIE, the Company reviews governing contracts, formation documents and any other contractual arrangements for any relevant terms and determines the activities that have the most significant impact on the VIE and who has the power to direct those activities. The Company also looks for kick-out rights, protective rights and participating rights as well as any financial or other support provided to the VIE and the reason for that support, and the terms of any explicit or implicit arrangements that may require the Company to provide future support. The Company then makes a determination based on its power to direct the most significant activities of the VIE and/or a financial interest that is potentially significant. In instances when a VIE is owned by both the Company and related parties, the Company considers whether there is a single party in the related party group that meets both the power and losses or benefits criteria on its own as though no related party relationship existed. If one party within the related party group meets both these criteria, such reporting entity is the primary beneficiary of the VIE and no further analysis is needed. If no party within the related party group on its own meets both the power and losses or benefits criteria, but the related party group as a whole meets these two criteria, the determination of primary beneficiary within the related party group is based upon an analysis of the facts and circumstances with the objective of determining which party is most closely associated with the VIE. Determining the primary beneficiary requires significant judgment. 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. Voting Interest Entities A voting interest entity is an entity in which the total equity investment at risk is sufficient to enable it to finance its activities independently and the equity holders have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the losses of the entity and the right to receive the residual returns of the entity. The usual condition for a controlling financial interest in a voting interest entity is ownership of a majority voting interest. If the Company has a majority voting interest in a voting interest entity, the entity will generally be consolidated. The Company does not consolidate a voting interest entity if there are substantive participating rights by other parties and/or kick-out rights by a single party or through a simple majority vote. The Company performs on-going reassessments of whether entities previously evaluated under the voting interest framework have become VIEs, based on certain events, and therefore subject to the VIE consolidation framework. Reverse Stock Split and Amended and Restated Certificate of Incorporation Effective August 31, 2015, the Company completed a one-for-four reverse stock split of its outstanding common stock. The accompanying financial statements and notes to the financial statements give retroactive effect to the reverse stock split for all periods presented. In addition, the Company adopted an Amended and Restated Certificate of Incorporation, which provides that its authorized capital stock consists of 125,000,000 shares of common stock, $0.001 par value per share, and 100,000,000 shares of preferred stock, $0.001 par value per share. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the financial results. Actual results could differ from those estimates. Estimates affecting the accompanying consolidated financial statements include but are not limited to the net realizable and fair values of the Company's investments and derivatives, the estimated life used on investments to calculate depreciation, amortization and accretion of premiums and discounts, respectively, provisions for loan losses, valuation of servicing assets and the disclosure of contingent liabilities. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and all highly liquid investments with original maturities of three months or less at the time of purchase. At December 31, 2017 and 2016 , approximately $177.5 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. Investment in Unconsolidated Entities The Company's non-controlling investments in unconsolidated entities are included in investments in unconsolidated entities on the consolidated balance sheets and may be accounted for under the equity method or the cost method. Under the equity method, capital contributions, distributions, profits and losses of the entities are allocated in accordance with the terms of the entities' operating agreements. Such allocations may differ from the stated percentage interests, if any, as a result of preferred returns and allocation formulas as described in the entities' operating agreements. For non-controlling investments in unconsolidated entities qualifying for equity method treatment with substantive profit-sharing arrangements, the hypothetical liquidation at book value ("HLBV") method may be used for recognizing earnings. Under the HLBV method, earnings are calculated and recognized based on the change in how the unconsolidated entity would allocate and distribute its cash if it were to liquidate the carrying value of its assets and liabilities on the beginning and end dates of the earnings period; excluding contributions made or distributions received. The Company may account for an investment that does not qualify for equity method accounting using the cost method. Under the cost method, the Company records dividend income when declared to the extent it is not considered a return of capital, which is recorded as a reduction of the cost of the investment. Investment Securities The Company classifies its investment portfolio as trading or available-for-sale. The Company, from time to time, may sell any of its investments due to changes in market conditions or in accordance with its investment strategy. The Company reports its investment securities, trading and investment securities available-for-sale at fair value. To determine fair value, the Company uses an independent third-party valuation firm utilizing data available in the market as well as appropriate prepayment, default and recovery rates. The Company evaluates the reasonableness of the valuation it receives by using a dealer quote, bid, or internal model. If there is a material difference between the value indicated by the third-party valuation firm and the dealer quote, bid or internal model, the Company will evaluate the difference, which could result in an updated valuation from the third-party or a revised dealer quote. Based on a prioritization of inputs used in the valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. Any changes in fair value to the Company's investment securities, trading are recorded on the Company's consolidated statements of operations as net realized and unrealized (loss) gain on investment securities, trading. Any changes in fair value to the Company's investment securities available-for-sale are recorded on the Company's consolidated balance sheets as a component of accumulated other comprehensive income in stockholders' equity. On a quarterly basis, the Company evaluates its available-for-sale securities for other-than-temporary impairment. An available-for-sale security is impaired when its fair value has declined below its amortized cost basis. When the estimated fair value of an available-for-sale security is less than amortized cost, the Company will consider whether there is an other-than-temporary impairment in the value of the security. An impairment will be considered other-than-temporary based on consideration of several factors, including (i) if the Company intends to sell the security, (ii) if it is more likely than not that the Company will be required to sell the security before recovering its cost, or (iii) the Company does not expect to recover the security's cost basis (i.e., a credit loss). A credit loss will have occurred if the present value of cash flows expected to be collected from the debt security is less than the amortized cost basis. If the Company intends to sell an impaired debt security or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the impairment is other-than-temporary and will be recognized currently in earnings and equal to the entire difference between fair value and amortized cost. If a credit loss exists, but the Company does not intend nor is it more likely than not that it will be required to sell before recovery, the impairment is other-than-temporary and will be separated into (i) the estimated amount relating to the credit loss, and (ii) the amount relating to all other factors. Only the estimated credit loss amount is recognized currently in earnings, with the remainder of the loss recognized in other comprehensive income. Estimating cash flows and determining whether there is other-than-temporary impairment require management to exercise judgment and make significant assumptions, including, but not limited to, assumptions regarding estimated prepayments, loss assumptions and assumptions regarding changes in interest rates. As a result, actual impairment losses, and the timing of income recognized on these securities, could differ from reported amounts. Investment security transactions are recorded on the trade date. Realized gains and losses on investment securities are determined on the specific identification method. Investment Security Interest Income Recognition Interest income on the Company's mortgage-backed securities ("MBS") and other ABS is accrued using the effective yield method based on the actual coupon rate and the outstanding principal amount of the underlying mortgages or other assets. Premiums and discounts are amortized or accreted into interest income over the expected lives of the securities also using the effective yield method, adjusted for the effects of estimated prepayments. For an investment purchased at par, the effective yield is the contractual interest rate on the investment. If the investment is purchased at a discount or at a premium, the effective yield is computed based on the contractual interest rate increased for the accretion of a purchase discount or decreased for the amortization of a purchase premium. The effective yield method requires the Company to make estimates of future prepayment rates for its investments that can be contractually prepaid before their contractual maturity date so that the purchase discount can be accreted, or the purchase premium can be amortized, over the estimated remaining life of the investment. The prepayment estimates that the Company uses directly impact the estimated remaining lives of its investments. Actual prepayment estimates are reviewed at each quarter end or more frequently if the Company becomes aware of any material information that would lead it to believe that an adjustment is necessary. For MBS and other ABS that are not of high credit quality or can be prepaid in such a way that the Company would not recover substantially all of its initial investment, changes in the original or most recent cash flow projections may result in a prospective change in interest income recognized. For MBS and other ABS that are of high credit quality, changes in the original or most recent cash flow projections may result in an immediate cumulative adjustment in interest income recognized. Loans The Company acquires loans through direct origination, through the acquisition of participations in CRE loans and corporate leveraged loans in the secondary market and through syndications of newly originated loans. Loans are held for investment; therefore, the Company initially records them at their acquisition price, and subsequently, accounts for them based on their outstanding principal plus or minus unamortized premiums or discounts. The Company may sell a loan held for investment where the credit fundamentals underlying a particular loan have changed in such a manner that the Company's expected return on investment may decrease. Once the determination has been made by the Company that it no longer will hold the loan for investment, the Company identifies these loans as loans held for sale. Any credit-related impairment considerations prior to the transfer to loans held for sale are accounted for through the allowance for loan losses on the Company's consolidated balance sheets. At December 31, 2017 , the Company has disclosed certain Legacy CRE loans in assets held for sale on its consolidated balance sheets. The Company reports its loans held for sale at the lower of amortized cost or fair value. To determine fair value, the Company primarily uses appraisals obtained from third-parties as a practical expedient. Key assumptions used in those appraisals are reviewed by the Company. If there is a material difference between the value provided by the appraiser and information used by the Company to validate the appraisal, the Company will evaluate the difference with the appraiser, which could result in an updated appraisal. The Company may also use the present value of estimated cash flows, market price, if available, or other determinants of the fair value of the collateral less estimated disposition costs. Any determined changes in the fair value of loans held for sale are recorded in fair value adjustments on financial assets held for sale on the Company's consolidated statements of operations. Based on a prioritization of inputs used in the valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. Loan Interest Income Recognition Interest income on loans includes interest at stated rates adjusted for amortization or accretion of premiums and discounts based on the contractual payment terms of the loan. Premiums and discounts are amortized or accreted into income using the effective yield method. If a loan with a premium or discount is prepaid, the Company immediately recognizes the unamortized portion as a decrease or increase to interest income. In addition, the Company defers loan origination and extension fees and loan origination costs and recognizes them over the life of the related loan against interest income using the straight line method, which approximates the effective yield method. Income recognition is suspended for loans at the earlier of the date at which payments become 90 days past due or when, in the opinion of management, a full recovery of principal and income becomes doubtful. When the ultimate collectability of the principal is in doubt, all payments received are applied to principal under the cost recovery method. On the other hand, when the ultimate collectability of the principal is not in doubt, contractual interest is recorded as interest income when received, under the cash method, until an accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. A loan is written off when it is no longer realizable and/or legally discharged. Allowance for Loan Losses The Company maintains an allowance for loan loss on its loans held for investment. In September 2017, the Company refined its process for the computation of its general reserve for loan losses to more fully align with the results of its risk rating process. CRE loans that are held for investment are carried at cost, net of unamortized acquisition premiums or discounts, loan fees and origination costs as applicable, unless the loans are deemed impaired. The Company evaluates each loan classified as held for investment for impairment at least quarterly. In connection with this evaluation, the Company assesses the performance of each loan and assigns a risk rating based on the collective evaluation of several factors, including but not limited to: collateral performance relative to underwritten plan, time since origination, current implied and/or reunderwritten loan-to-collateral value ratios ("LTV"), risk inherent in the loan structure and exit plan. Loans are rated "1" through "5," from less risk to greatest risk, in connection with this review. Loans with a risk rating of "5" are individually measured for impairment on a quarterly basis. The general reserve, established for loans not determined to be impaired individually, is based on the Company's loan risk ratings. The Company records a general reserve equal to 1.50% of the aggregate face values of loans with a risk rating of "3," plus 5.00% of the aggregate face values of loans with a risk rating of "4." The Company considers a loan to be impaired if at least one of two conditions exists. The first condition is if, based on the Company's evaluation as part of the loan risk rating process, management believes that a loss event has occurred that makes it probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The second condition is if the loan is deemed to be a troubled-debt restructuring ("TDR") where a concession has been given to a borrower in financial difficulty. These TDRs may not have an associated specific loan loss allowance if the principal and interest amount is considered recoverable based on current market conditions, expected collateral performance and/or guarantees made by the borrowers. When a loan is impaired under either of these two conditions, the allowance for loan losses is increased by the amount of the excess of the amortized cost basis of the loan over its fair value. Fair value may be determined based on the present value of estimated cash flows; or market price, if available; or on the fair value of the collateral less estimated disposition costs. When a loan, or a portion thereof, is considered uncollectible and pursuit of collection is not warranted, the Company will record a charge-off or write-down of the loan against the allowance for loan losses. An impaired loan may remain on accrual status during the period in which the Company is pursuing repayment of the loan; however, the loan would be placed on non-accrual status at such time as (i) management believes that scheduled debt service payments will not be met within the coming 12 months; (ii) the loan becomes 90 days past due; (iii) management determines the borrower is incapable of, or has ceased efforts toward, curing the cause of the impairment; or (iv) the net realizable value of the loan's underlying collateral approximates the Company's carrying value for such loan. While on non-accrual status, the Company recognizes interest income only when an actual payment is received if a credit analysis supports the borrower's principal repayment capacity. When a loan is placed on non-accrual, previously accrued interest is reversed from interest income. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is re-measured on a quarterly basis by comparing the fair value of the loan to its cost basis. The fair value is determined using unobservable inputs including estimates of selling costs (Level 3). Long-Lived and Intangible Assets Long-lived assets and certain identifiable intangibles to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. The review of recoverability is based on an estimate of the future undiscounted cash flows (excluding interest charges) expected to result from the long-lived asset's use and eventual disposition compared to the carrying value of the asset. If impairment has occurred, the loss will be measured as the excess of the carrying amount of the asset over the fair value of the asset. During the years ended December 31, 2017 and 2016 , the Company recorded impairment charges on a pre-tax basis of $177,000 and $3.7 million , respectively, with respect to its intangible assets, reported in impairment losses on its consolidated statements of operations. During the year ended December 31, 2015 , the Company recorded an impairment charge on a pre-tax basis of $2.4 million with respect to its intangible assets, reported in depreciation and amortization on its consolidated statement of operations. Assets and Liabilities Held for Sale The Company classifies long-lived assets or a disposal group to be sold as held for sale in the period in which all of the following criteria are met: • management, having the authority to approve the action, commits to a plan to sell the asset or the disposal group; • the asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; • an active program to locate a buyer and other actions required to complete the plan to sell the asset or disposal group have been initiated; • the sale of the asset or disposal group is probable, and transfer of the asset or disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond the Company's control extend the period of time required to sell the asset or disposal group beyond one year; • the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and • actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A long-lived asset or disposal group that is classified as held for sale is initially measured at the lower of its cost or fair value less any costs to sell. Any loss resulting from the transfer of long-lived assets or disposal groups to assets held for sale is recognized in the period in which the held for sale criteria are met. Legacy CRE loans included as assets held for sale were measured at the lower of cost or fair value on the date the Legacy CRE loans were transferred to assets held for sale. Any specific loan loss reserves for Legacy CRE loans transferred to assets held for sale were measured and charged off on the date of transfer, establishing a new cost basis for the loans. The fair values of assets held for sale are assessed each reporting period and changes in such fair values are reported as an adjustment to the carrying value of the asset or disposal group with an offset to fair value adjustments on financial assets held for sale on the Company's consolidated statements of operations, to the extent that any subsequent changes in fair value do not exceed the cost basis of the asset or disposal group. Additionally, upon determining that a long-lived asset or disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group, if material, in the line items assets or liabilities held for sale, respectively, on the consolidated balance sheets. See Note 24 . Discontinued Operations The results of operations of a component or a group of components of the Company that either has been disposed of or is classified as held for sale is reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company's operations and financial results. Comprehensive Income (Loss) Comprehensive income (loss) for the Company includes net income and the change in net unrealized gains (losses) on available-for-sale securities, derivative instruments used to hedge exposure to interest rate fluctuations and protect against declines in the market value of assets resulting from general market trends as well as translation of currency as a result of the Company's investment in the equity of foreign CDOs and CLOs. Income Taxes The Company operates in such a manner as to qualify as a REIT under the provisions of the Internal Revenue Code of 1986, as amended (the "Code"); therefore, applicable REIT taxable income is included in the taxable income of its shareholders, to the extent distributed by the Company. To maintain REIT status for federal income tax purposes, the Company is generally required to distribute at least 90% of its REIT taxable income to its shareholders as well as comply with certain other qualification requirements as defined under the Code. As a REIT, the Company is not subject to federal corporate income tax to the extent that it distributes 100% of its REIT taxable income each year. Taxable income, from non-REIT activities managed through the Company's TRSs, are subject to federal, state and local income taxes. The Company's TRS' income taxes are accounted for under the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for the temporary differences between the financial reporting basis and tax basis of assets and liabilities. The Company evaluates the realizability of its deferred tax assets and liabilities and recognizes a valuation allowance if, based on available evidence, it is more likely than not that some or all of its deferred tax assets will not be realized. In evaluating the realizability of the deferred tax asset or liability, the Company will consider the expected future taxable income, existing and projected book to tax differences as well as tax planning strategies. This analysis is inherently subjective, as it is based on forecasted earning and business and economic activity. Changes in estimates of deferred tax asset realizability, if any, are included in income tax (expense) benefit on the consolidated statements of operations. In addition, several of the Company's foreign TRSs, are organized as exempted companies incorporated with limited liability under the laws of the Cayman Islands. The Company also has TRSs incorporated in Ireland, which are generally exempt from federal and state income tax at the corporate level because their activities in the United States are limited to trading in stock and securities for their own account. Therefore, despite their status as TRSs, they generally will not be subject to corporate tax on their earnings and no provision for income taxes is required. However, because they are either controlled foreign corporations or passive foreign investment companies (in which the Company has made a Qualified Electing Fund election), the Company will generally be required to include its share of current taxable income from the foreign TRSs in its calculation of REIT taxable income. The Company accounts for taxes assessed by a governmental authority that is directly imposed on a revenue-producing transaction (e.g., sales, use, value added) on a net (excluded from revenue) basis. The Company established a full valuation allowance against its net deferred tax asset of approximately $37.0 million (tax effected $9.9 million ) at December 31, 2017 as the Company believed it was more likely than not that some or all of the deferred tax assets would not be realized. This assessment was based on the Company's cumulative historical losses and uncertainties as to the amount of taxable income that would be generated in future years. The Company evaluates and recognizes tax positions only if it is more likely than not that the position will be sustained upon examination by the appropriate taxing authority. A tax position that meets this threshold is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company classifies any tax penalties as other operating expenses and any interest as interest expense. The Company does not have any unrecognized tax benefits that would affect the Company's financial position. U.S. Tax Cuts and Jobs Act In December 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act makes broad and complex changes to the Code, including, but not limited to: (i) reducing the U.S. federal corporate tax rate from 35% to 21%; (ii) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (iii) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (iv) requiring a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations; (v) eliminating the corporate alternative minimum tax ("AMT") and changing how existing AMT credits can be realized; (vi) creating the base erosion anti-abuse tax, a new minimum tax; (vii) creating a new limitation on deductible interest expense; and (viii) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017. The SEC staff issued guidance which provides insight on accounting for the tax effects of the Tax Act. The guidance provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting. A company must reflect the income tax effects of those aspects of the Act for which the accounting is complete. To the extent that a company's accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estima |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 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. Consolidated VIEs (the Company is the primary beneficiary) Based on management's analysis, the Company is the primary beneficiary of Apidos CDO I, Apidos CDO III, Apidos Cinco, Whitney CLO I, RCC 2015-CRE3, RCC 2015-CRE4 and RCC 2017-CRE5 at December 31, 2017 and Apidos CDO I, Apidos CDO III, Apidos Cinco, Whitney CLO I, RCC 2014-CRE2, RCC 2015-CRE3 and RCC 2015-CRE4 at December 31, 2016 (for each period, collectively, the "Consolidated VIEs"). The Consolidated VIEs were formed on behalf of the Company to invest in real estate-related securities, CMBS, syndicated corporate loans, corporate bonds and ABS and were financed by the issuance of debt securities. The Manager and C-III Asset Management LLC, a subsidiary of C-III, manage the CRE-related entities, 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 debt securities, 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 in January 2016. In August 2017, RCC 2014-CRE2 was liquidated and, as a result, the remaining assets were returned to the Company in exchange for the Company's preference shares and equity notes in the securitization. In November 2016, the Company substantially liquidated Apidos Cinco, a syndicated corporate loan CLO determined to be a VIE that is managed by CVC Credit Partners. 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 . As substantially all of the VIE's activities were being conducted on behalf of a single variable interest holder that was a related party of the decision maker, it was determined that the Company was the primary beneficiary of the transaction and, as such, should consolidate Apidos Cinco. The Company consolidated the remaining restricted cash, one structured security and three syndicated corporate loans for an aggregate fair value of $2.3 million . The Company has received cash distributions of $22.4 million as a result of the liquidation through December 31, 2017 . The Company elected the fair value option for the structured security and syndicated corporate loans upon acquisition. The Company believes fair value is the most useful indication of value for these assets given the short hold period. Apidos CDO I and Apidos CDO III substantially liquidated their assets in October 2014 and June 2015, respectively. The securitizations are now entirely composed of restricted cash. Whitney CLO I was a securitization in which the Company acquired rights to manage the collateral assets held by the entity in February 2011. Following liquidation in September 2013, Whitney CLO I is now composed of restricted cash. 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 investments 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 reflect 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, nor to each other. During the year ended December 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 December 31, 2017 (in thousands): CRE Securitizations Other Total ASSETS Restricted cash $ 20,302 $ 544 $ 20,846 Interest receivable 3,347 — 3,347 CRE loans, pledged as collateral 603,110 — 603,110 Loans held for sale — 13 13 Principal paydowns receivable 72,166 41 72,207 Other assets 63 10 73 Total assets (1) $ 698,988 $ 608 $ 699,596 LIABILITIES Borrowings $ 416,655 $ — $ 416,655 Accrued interest expense 592 — 592 Accounts payable and other liabilities 81 15 96 Total liabilities $ 417,328 $ 15 $ 417,343 (1) Assets of each of the Consolidated VIEs may only be used to settle the obligations of each respective VIE. Unconsolidated VIEs (the Company is not the primary beneficiary, but has a variable interest) Based on management's analysis, the Company is not the primary beneficiary of the VIEs discussed below since it does not have both (i) the power to direct the activities that most significantly impact the VIE's economic performance and (ii) the obligation to absorb the losses of the VIE or the right to receive the benefits from the VIE, which could be significant to the VIE. Accordingly, the following VIEs are not consolidated in the Company's financial statements at December 31, 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 and CMBS and were financed by the issuance of debt securities. The Manager manages the CRE-related entities on behalf of the Company. The primary beneficiary determination for each of these VIEs was made at each VIE's inception and is continually assessed. In January 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 the VIEs were deconsolidated. At deconsolidation, the Company recorded its investments in these VIEs at fair value and accounted for these investments as investment securities available-for-sale on its consolidated financial statements. In April 2016, the Company liquidated its investment in RREF CDO 2006-1. In exchange for its interest, the Company acquired RREF CDO 2006-1's remaining assets, fair valued at $65.7 million , and paid off the CDO's third party debt, totaling $7.5 million , resulting in a gain of $846,000 recorded in net realized and unrealized gain (loss) on investment securities available-for-sale and loans and derivatives on the consolidated of operations. In November 2016, the Company liquidated its investment in RREF CDO 2007-1. In exchange for its interest, the Company acquired RREF CDO 2007-1's remaining assets, fair valued at $130.9 million , and paid off the CDO's third party debt, totaling $33.7 million , resulting in a gain of approximately $2.1 million recorded in net realized and unrealized gain (loss) on investment securities available-for-sale and loans and derivatives on the consolidated statements of operations. RCM Global, LLC In July 2014, the Company, together with Resource America, Inc. ("Resource America") and certain Resource America employees, acquired through RCM Global a portfolio of available-for-sale securities for $23.5 million . The portfolio is managed by Resource America. The Company contributed $15.0 million for a 63.8% membership interest. Revenues and expenses of RCM Global are allocated to each member in accordance with their membership interest. In March and June 2015, the Company requested and received an in-kind distribution in certain securities held by RCM Global resulting in a reduction of its ownership interest. RCM Global was determined to be a VIE based on the majority equity interest holders' inability to direct the activities that are most significant to the entity. In January 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 no longer be the primary beneficiary of RCM Global, as its investment in the limited liability company did not provide the Company with a controlling financial interest. As a result of its evaluation, the Company deconsolidated its investment in RCM Global. In January 2016, the Company began accounting for its investment in RCM Global as an equity method investment in investments in unconsolidated entities on its consolidated financial statements. At December 31, 2017 , the Company held a 63.2% interest in RCM Global, and the remainder was owned by subsidiaries and other parties associated with Resource America. The Company had no carrying value on this investment at December 31, 2017 due to accumulated other comprehensive loss in excess of the investment's cost basis at December 31, 2017 . Pelium Capital, L.P. In September 2014, the Company contributed $17.5 million to Pelium Capital for an initial ownership interest of 80.4% and subsequently funded its final commitment of $2.5 million in February 2015. Pelium Capital is a specialized credit opportunity fund managed by an indirect wholly-owned subsidiary of C-III. The Company receives 10% of the carried interest in the partnership. Resource America contributed cash of $2.8 million to the formation of Pelium Capital. In December 2015, Pelium Capital was accounted for as a consolidated voting interest subsidiary. In January 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 partnership does not provide the Company with a controlling financial interest. As a result of its reevaluation, the Company deconsolidated its investment in Pelium Capital in January 2016 and accounted for its investment as an equity method investment in investments in unconsolidated entities on its consolidated financial statements. At December 31, 2017 , the Company held an 80.2% interest in Pelium Capital with a carrying value of $10.5 million . Pearlmark Mezzanine Realty Partners IV, L.P. In June 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 CRE property. The investment advisor was Pearlmark Real Estate LLC ("Pearlmark Manager"), which was 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 partnership does not provide the Company with a controlling financial interest. The Company accounted for its investment in Pearlmark Mezz as an equity method investment in investments in unconsolidated entities on its consolidated financial statements. The Company paid 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 in June 2016. Resource America agreed to credit any such fees paid by the Company to Pearlmark Manager against the base management fee that the Company paid the Manager. In May 2017, the Company sold its equity interest in Pearlmark Mezz for proceeds of $16.2 million and recognized a net loss of $345,000 , which was recorded in equity in earnings of unconsolidated entities on the Company's consolidated statements of operations. LEAF Commercial Capital, Inc. In November 2011, the Company entered into an agreement to exchange its lease-related investments for shares of LEAF Commercial Capital, Inc.'s ("LCC") Series A, Series B and Series D Redeemable Preferred Stock. During 2013, the Company entered into an additional agreement with LCC to purchase shares of LCC Series A-1 and Series E Redeemable Preferred Stock. The LCC Series E Redeemable Preferred Stock expired and as a result, was exchanged for additional LCC Series A-1 Redeemable Preferred Stock. The Company determined that it was not the primary beneficiary of LCC because it did not participate in any management or portfolio decisions, held only two of six board positions and did not have controlling voting rights in the entity and as a result, accounted for its investment in LCC as an equity method investment in investments in unconsolidated entities on its consolidated financial statements. In July 2017, the Company received cash proceeds of $84.3 million and recognized a realized gain of $41.1 million in connection with LCC's sale to a third party. This gain was recorded in equity in earnings of unconsolidated entities on the Company's consolidated statements of operations. 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"), respectively, with a value of $1.5 million in the aggregate, or 3% of each trust, at December 31, 2017 . RCT I and RCT II were formed for the purposes of providing debt financing to the Company. 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 of $774,000 each as investments in unconsolidated entities using the cost method, recording 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 is 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 the CLOs, the fair values of which were recorded as intangible assets on the consolidated balance sheets. The intangible assets, allocated to each of the five CLOs, were amortized over the expected life of each CLO in depreciation and amortization on the consolidated statements of operations. In March 2017, the last of the five CLOs was liquidated and, as a result, any remaining balance of the Company's associated intangible asset was written off in impairment losses on the consolidated statements of operations. Wells Fargo Commercial Mortgage Trust 2017-C40 In October 2017, the Company purchased 95% of the Class E, F, G, H and J certificates of Wells Fargo Commercial Mortgage Trust 2017-C40 ("C40"), a B-piece investment in a Wells Fargo Commercial Mortgage Securities, Inc. private-label $705.4 million securitization. C40 is managed by C-III Asset Management LLC ("C-III Asset Management"), a related party that is not under common control. The Company determined that although its investment in C40 represented a variable interest, its investment did not provide the Company with a controlling financial interest. The Company accounted for its various investments in C40 as investment securities available-for-sale in its consolidated financial statements . The following table shows the classification, carrying value and maximum exposure to loss with respect to the Company's unconsolidated VIEs at December 31, 2017 (in thousands): Unconsolidated VIEs Unsecured Pelium Capital Wells Fargo Commercial Mortgage Trust 2017-C40 Total Maximum ASSETS Investments in unconsolidated entities $ 1,548 $ 10,503 $ — $ 12,051 $ 12,051 Investment securities available-for-sale — — 21,194 21,194 21,194 Total assets 1,548 10,503 21,194 33,245 LIABILITIES Borrowings 51,548 — — 51,548 N/A Total liabilities 51,548 — — 51,548 N/A Net asset (liability) $ (50,000 ) $ 10,503 $ 21,194 $ (18,303 ) N/A At December 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 | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | NOTE 4 - SUPPLEMENTAL CASH FLOW INFORMATION The following table summarizes the Company's supplemental disclosure of cash flow information (in thousands): Years Ended December 31, 2017 2016 2015 Non-cash continuing operating activities include the following: Reclassification of linked transactions, net at fair value to investment securities available-for-sale, pledged as collateral, at fair value and borrowings (1) $ — $ — $ 15,367 Non-cash discontinued operating activities include the following: Interest expense paid by third party (2) $ — $ (107 ) $ — Operating liabilities assumed by third party (2) $ — $ (192 ) $ — Non-cash continuing investing activities include the following: Reclassification of linked transactions, net at fair value to investment securities available-for-sale, pledged as collateral, at fair value (1) $ — $ — $ 48,764 Retained beneficial interest in unconsolidated securitization entities $ — $ (22,476 ) $ — Restricted cash acquired through securitizations called or liquidated $ — $ (934 ) $ — Loans acquired through securitizations called or liquidated $ — $ (157,070 ) $ — Securities acquired through securitizations called or liquidated $ — $ (40,892 ) $ — Non-cash continuing financing activities include the following: Proceeds from the private exchange of convertible senior notes $ 22,161 $ — $ — Payments on the private exchange of convertible senior notes $ (22,161 ) $ — $ — Distributions on common stock accrued but not paid $ 1,571 $ 1,550 $ 13,274 Distributions on preferred stock accrued but not paid $ 4,010 $ 4,010 $ 4,077 Reclassification of linked transactions, net at fair value to borrowings (1) $ — $ — $ 33,397 Non-cash discontinued financing activities include the following: Senior secured revolving credit facility assumed by third party (2) $ — $ (122,000 ) $ — Senior secured revolving credit facility paid down by third party (2) $ — $ (22,000 ) $ — (1) As a result of an accounting standards update adopted on January 1, 2015 ( see Note 2 ), the Company unlinked its previously linked transactions, resulting in non-cash increases in both its investment securities available-for-sale, pledged as collateral, at fair value and related repurchase agreements borrowings balances. (2) In August 2016, the Company completed the sale of Northport TRS, LLC. The Purchaser assumed $122.0 million and paid down $22.0 million of principal and $107,000 of interest expense on the Company's behalf of the senior secured revolving credit agreement. The Purchaser assumed $192,000 of accounts payable and accrued legal fees recorded to complete the sale. |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
RESTRICTED CASH | NOTE 5 - RESTRICTED CASH The following table summarizes the Company's restricted cash (in thousands): December 31, 2017 2016 Restricted cash: Cash held by consolidated CRE securitizations, CDOs and CLOs $ 20,846 $ 3,308 Restricted cash pledged with minimum reserve balance requirements 25 71 Margin posted to central clearinghouse on interest rate swaps 1,903 20 Cash held in escrow 100 — Total $ 22,874 $ 3,399 |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2017 | |
LOANS HELD FOR INVESTMENT [Abstract] | |
LOANS | NOTE 6 - LOANS The following is a summary of the Company's loans (dollars in thousands): Description Quantity Principal Unamortized (Discount) (1) Amortized Cost Allowance for Loan Losses Carrying (2) Contracted Interest Rates (3) Maturity Dates (4)(6) At December 31, 2017: CRE whole loans, floating rate (5) 70 $ 1,297,164 $ (7,014 ) $ 1,290,150 $ (5,328 ) $ 1,284,822 LIBOR plus 3.60% to LIBOR plus 6.25% February 2018 to January 2021 Total CRE loans held for investment 1,297,164 (7,014 ) 1,290,150 (5,328 ) 1,284,822 Syndicated corporate loans (7) 2 13 — 13 — 13 n/a n/a Total loans held for sale 13 — 13 — 13 Total loans $ 1,297,177 $ (7,014 ) $ 1,290,163 $ (5,328 ) $ 1,284,835 At December 31, 2016: CRE whole loans, floating rate (5) 67 $ 1,295,926 $ (5,819 ) $ 1,290,107 $ (3,829 ) $ 1,286,278 LIBOR plus 3.75% to LIBOR plus 6.45% April 2017 to January 2020 Total CRE loans held for investment 1,295,926 (5,819 ) 1,290,107 (3,829 ) 1,286,278 Syndicated corporate loans (7) 3 1,007 — 1,007 — 1,007 n/a n/a Total loans held for sale 1,007 — 1,007 — 1,007 Total loans $ 1,296,933 $ (5,819 ) $ 1,291,114 $ (3,829 ) $ 1,287,285 (1) Amounts include unamortized loan origination fees of $6.7 million and $5.8 million and deferred amendment fees of $268,000 and $4,000 being amortized over the life of the loans at December 31, 2017 and 2016 , respectively. (2) Substantially all loans are pledged as collateral under various borrowings at December 31, 2017 and 2016 , respectively. (3) LIBOR refers to the London Interbank Offered Rate. (4) Maturity dates exclude contracted extension options, subject to the satisfaction of certain terms, that may be available to the borrowers. (5) CRE whole loans had $84.1 million and $55.5 million in unfunded loan commitments at December 31, 2017 and 2016 , respectively. These unfunded loan commitments are advanced as the borrowers formally request additional funding as permitted under the loan agreement and any necessary approvals have been obtained. (6) Maturity dates exclude one CRE whole loan, with an amortized cost of $7.0 million , in default at December 31, 2017 . (7) All syndicated corporate loans are second lien loans and are accounted for under the fair value option. The following is a summary of the contractual maturities, assuming full exercise of the extension options available to the borrowers, of the Company's CRE loans held for investment, at amortized cost (in thousands): Description 2018 2019 2020 and Thereafter Total At December 31, 2017: CRE whole loans (1) $ — $ 148,622 $ 1,134,528 $ 1,283,150 Description 2017 2018 2019 and Thereafter Total At December 31, 2016: CRE whole loans $ 7,000 $ 24,476 $ 1,258,631 $ 1,290,107 (1) Excludes one CRE whole loan, with an amortized cost of $7.0 million , in default at December 31, 2017 . At December 31, 2017 , approximately 28.0% , 24.3% and 12.5% of the Company's CRE loan portfolio was concentrated in the Southwest, Pacific and Mountain regions, respectively, based on carrying value, as defined by the National Council of Real Estate Investment Fiduciaries ("NCREIF"). At December 31, 2016 , approximately 30.7% , 20.4% and 15.5% of the Company's CRE loan portfolio was concentrated in the Southwest, Pacific and Southeast regions, respectively, based on carrying value. Principal Paydowns Receivable Principal paydowns receivable represent loan principal payments that have been received by the Company's servicers and trustees but have not been remitted to the Company at December 31, 2017 and 2016 . At December 31, 2017 , the Company had $75.9 million of loan principal paydowns receivable, all of which was received in cash by the Company during January 2018. At December 31, 2016 , the Company had $19.3 million of loan principal paydowns receivable, all of which was received by the Company during January 2017. |
FINANCING RECEIVABLES
FINANCING RECEIVABLES | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
FINANCING RECEIVABLES | NOTE 7 - FINANCING RECEIVABLES The following tables show the activity in the allowance for loan and lease losses for the years ended December 31, 2017 and 2016 and the allowance for loan and lease losses and recorded investments in loans and leases at December 31, 2017 and 2016 (in thousands): Year Ended December 31, 2017 Year Ended December 31, 2016 Commercial Real Estate Loans Syndicated Corporate Loans Direct Financing Leases Total Commercial Real Estate Loans Syndicated Corporate Loans Direct Financing Leases Total Allowance for loan and lease losses: Allowance for loan and lease losses at beginning of year $ 3,829 $ — $ 465 $ 4,294 $ 41,839 $ 1,282 $ 465 $ 43,586 Provision for (recovery of) loan and lease losses 1,499 3 270 1,772 18,167 (402 ) — 17,765 Loans charged-off — (3 ) — (3 ) — 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 end of year $ 5,328 $ — $ 735 $ 6,063 $ 3,829 $ — $ 465 $ 4,294 December 31, 2017 December 31, 2016 Commercial Real Estate Loans Syndicated Corporate Loans Direct Financing Leases Total Commercial Real Estate Loans Syndicated Corporate Loans Direct Financing Leases Total Allowance for loan and lease losses ending balance: Individually evaluated for impairment $ 2,500 $ — $ 735 $ 3,235 $ 2,500 $ — $ 465 $ 2,965 Collectively evaluated for impairment $ 2,828 $ — $ — $ 2,828 $ 1,329 $ — $ — $ 1,329 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — $ — $ — Loans and Leases: Amortized cost ending balance: Individually evaluated for impairment $ 7,000 $ — $ 886 $ 7,886 $ 7,000 $ — $ 992 $ 7,992 Collectively evaluated for impairment $ 1,283,150 $ — $ — $ 1,283,150 $ 1,283,107 $ — $ — $ 1,283,107 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — $ — $ — Credit quality indicators Commercial Real Estate Loans CRE loans are collateralized by a diversified mix of real estate properties and are assessed for credit quality based on the collective evaluation of several factors, including but not limited to: collateral performance relative to underwritten plan, time since origination, current implied and/or reunderwritten LTV, loan structure and exit plan. Depending on the loan's performance against these various factors, loans are rated on a scale from 1 to 5 , with loans rated 1 representing loans with the highest credit quality and loans rated 5 representing loans with lowest credit quality. The factors evaluated provide general criteria to monitor credit migration in the Company's loan portfolio, as such, a loan's rating may improve or worsen, depending on new information received. The criteria set forth below should be used as general guidelines, and, therefore, not every loan will have all of the characteristics described in each category below. Loans that are performing according to their underwritten plans generally will not require an allowance for loan loss. Risk Rating Risk Characteristics 1 • Property performance has surpassed underwritten expectations. • Occupancy is stabilized, the property has had a history of consistently high occupancy, and the property has a diverse and high quality tenant mix. 2 • Property performance is consistent with underwritten expectations and covenants and performance criteria are being met or exceeded. • Occupancy is stabilized, near stabilized or is on track with underwriting. 3 • Property performance lags behind underwritten expectations. • Occupancy is not stabilized and the property has some tenancy rollover. 4 • Property performance significantly lags behind underwritten expectations. Performance criteria and loan covenants have required occasional waivers. • Occupancy is not stabilized and the property has a large amount of tenancy rollover. 5 • Property performance is significantly worse than underwritten expectations. The loan is not in compliance with loan covenants and performance criteria and is in default. Expected sale proceeds would not be sufficient to pay off the loan at maturity. • The property has material vacancy and significant rollover of remaining tenants. • An updated appraisal is required. CRE whole loans are evaluated for any credit deterioration on at least a quarterly basis. Loans are first individually evaluated for impairment; and to the extent not deemed impaired, a general reserve is established. The allowance for loan loss is computed as (i) 1.5% of the aggregate face values of loans rated as a 3, plus (ii) 5% of the aggregate face values of loans rated as a 4, plus (iii) specific allowances measured and determined on loans individually evaluated, which are loans rated 5. While the overall risk rating is generally not the sole factor used in determining whether a loan is impaired, a loan with a higher overall risk rating would tend to have more adverse indicators of impairment, and therefore would be more likely to experience a credit loss. Credit risk profiles of CRE loans at amortized cost were as follows (in thousands): Rating 1 Rating 2 Rating 3 Rating 4 Rating 5 (4) Held for Sale Total At December 31, 2017: CRE whole loans (2) $ 65,589 $ 1,040,883 $ 171,841 $ 4,837 $ 7,000 $ — $ 1,290,150 Legacy CRE whole loans (1)(3) — — — — — 63,783 63,783 $ 65,589 $ 1,040,883 $ 171,841 $ 4,837 $ 7,000 $ 63,783 $ 1,353,933 Rating 1 Rating 2 Rating 3 Rating 4 Held for Sale Total At December 31, 2016: CRE whole loans (1) $ 1,186,292 $ 96,815 $ — $ 7,000 $ — $ 1,290,107 Legacy CRE whole loans (1) — — — — 158,178 158,178 $ 1,186,292 $ 96,815 $ — $ 7,000 $ 158,178 $ 1,448,285 (1) Legacy CRE whole loans are carried at the lower of cost or fair value. (2) Includes one CRE whole loan, with an amortized cost of $7.0 million that was in default at December 31, 2017 . (3) Includes two loans, with a total carrying value of $22.5 million , that were in default at December 31, 2017 . (4) Rating category 5 was not applicable for December 31, 2016 . At December 31, 2017 the Company had one CRE whole loan designated as an impaired loan with a risk rating of 5 due to short term vacancy/tenant concerns and a past due maturity of February 2017. The CRE whole loan was also designated as an impaired loan (risk rating of 4) as of December 31, 2016 . The loan is collateralized by a retail shopping center in Roswell, GA and had an amortized cost of $7.0 million at December 31, 2017 and 2016 . In 2016 , the Company obtained an appraisal and used the appraised value of the collateral as a practical expedient in determining the specific provision for loan loss. Using an appraised value of $4.5 million , the Company recorded a specific provision of $2.5 million on the loan during the year ended December 31, 2016 . The Company continued to rely on its appraisal obtained in 2016 and determined that no additional specific provision was necessary at December 31, 2017 . This loan is in default at December 31, 2017 . At December 31, 2017 , the Company had four Legacy CRE whole loans and one mezzanine loan classified as assets held for sale with a total carrying value of $61.8 million , comprising a total cost basis of $63.8 million less a valuation allowance of $1.9 million . The Company continued to rely on its appraisals of the loans' collateral obtained in 2016, as a practical expedient, in determining the valuation allowance, if any, for its four Legacy CRE whole loans classified as assets held for sale at December 31, 2017 . The mezzanine loan had no fair value at December 31, 2017 . In December 2017, one Legacy CRE whole loan that at December 31, 2016 had a fair value in excess of its carrying value, paid off at its principal value of $15.0 million . 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 cost basis and carrying value of $158.2 million . Appraisals of the loans' collateral, used as a practical expedient in determining the loans' fair values, were obtained for all eight Legacy CRE whole loans classified as assets held for sale during 2016. The mezzanine loan had no fair value. The Company recorded, and subsequently charged off upon transfer of the loans to assets held for sale, specific reserves totaling $15.8 million . These five loans had a total carrying value of $110.7 million at December 31, 2016 and comprised the following: • Two CRE whole loans cross-collateralized by a hotel and adjacent land in southern California with an initial par value of $67.5 million . These loans were written down to their estimated fair value of $61.4 million upon reclassification to held for sale and had a maturity date of February 2017. In June 2017, the borrower sold the collateral underlying these loans. Proceeds of $67.0 million were received by the Company in July 2017. As a result of this transaction, the Company realized a gain of $5.6 million in net realized and unrealized gain on investment securities available-for-sale and loans and derivatives on the Company's consolidated statements of operations during the year ended December 31, 2017 ; • One CRE whole loan collateralized by a hotel in southern Arizona with an initial par value of $32.5 million . This loan was written down to its estimated fair value of $14.3 million upon reclassification to held for sale. In February 2017, the Company entered into a discounted payoff agreement with the 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 net realized and unrealized gain on investment securities available-for-sale and loans and derivatives on the Company's consolidated statements of operations; • One CRE whole loan collateralized by an office property in central Arizona with an initial par value of $17.7 million . This loan was written down to its estimated fair value of $11.0 million . The loan matured in May 2017 and is currently in default; • One CRE whole loan collateralized by a hotel in southern California with an initial par value of $29.5 million . This loan was written down to its estimated fair value of $24.0 million upon reclassification to held for sale. During the year ended December 31, 2017 , an additional charge of $1.9 million , which included the write down of a protective advance of $442,000 made during the period, was taken to write the loan down to its estimated fair value of $22.5 million . The loan has a maturity date in January 2019. With respect to the remaining three Legacy CRE whole loans held for sale, with a total carrying value of $47.5 million at December 31, 2016 , the Company determined that no specific reserve was necessary upon their transfer to held for sale. In December 2017, one of these Legacy CRE whole loans paid off at its principal value of $15.0 million . For the remaining two, the Company determined that no additional valuation allowance was necessary at December 31, 2017 . At December 31, 2017 , 45.8% , 36.4% and 17.8% of the Company's Legacy CRE whole loans were concentrated in retail, hotel and office, respectively. Of these loans, 82.2% are within the Pacific region and 17.8% are within the Mountain region, as defined by NCREIF. At December 31, 2016 , 54.0% , 39.0% and 7.0% of the Company's Legacy CRE whole loans were concentrated in hotel, retail and office, respectively. Of these loans, 84.0% are within the Pacific region and 16.0% are within the Mountain region. All of the Company's CRE whole loans were current with respect to contractual principal and interest except one defaulted CRE whole loan collateralized by a retail shopping center in northern Georgia that had a carrying value of $4.5 million at December 31, 2017 , and two defaulted Legacy CRE whole loans held for sale. One loan is collateralized by an office property in central Arizona and had a carrying value of $11.0 million at December 31, 2017 . The second loan is collateralized by a retail shopping center in southern California and had a carrying value of $11.5 million at December 31, 2017 . Two of the Company's Legacy CRE whole loans cross-collateralized by a property in southern California with a total carrying value of $61.4 million were in default at December 31, 2016 . In July 2017, the loans were paid off with the proceeds from the sale of the underlying collateral. Direct Financing Leases The Company recorded a provision for lease losses against the value of its direct financing leases in the amount of $270,000 during the year ended December 31, 2017 . There was no provision recorded for the year ended December 31, 2016 . The Company held $151,000 and $527,000 of direct financing leases, net of reserves at December 31, 2017 and 2016 , respectively. 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 (1) Total Loans > 90 Days and Accruing At December 31, 2017: CRE whole loans (2) $ — $ — $ 7,000 $ 7,000 $ 1,283,150 $ 1,290,150 $ — Legacy CRE whole loans (3) 11,516 — 11,000 22,516 41,267 63,783 — Total loans $ 11,516 $ — $ 18,000 $ 29,516 $ 1,324,417 $ 1,353,933 $ — At December 31, 2016: CRE whole loans $ — $ — $ — $ — $ 1,290,107 $ 1,290,107 $ — Legacy CRE whole loans (4) 61,400 — — 61,400 96,792 158,192 — Direct financing leases 137 — 128 265 727 992 — Total loans $ 61,537 $ — $ 128 $ 61,665 $ 1,387,626 $ 1,449,291 $ — (1) Excludes direct financing leases of $151,000 , net of reserves, at December 31, 2017 . (2) Includes one CRE whole loan, with an amortized cost of $7.0 million , that was in default at December 31, 2017 , on which the Company recorded a $2.5 million specific provision during the year ended December 31, 2016 . (3) Includes two loans with a total carrying value of $22.5 million that were in default at December 31, 2017 . (4) Includes two loans with a total carrying value of $61.4 million that were in default at December 31, 2016 . 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 December 31, 2017: Loans without a specific valuation allowance: CRE whole loans $ — $ — $ — $ — $ — Loans with a specific valuation allowance: CRE whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ — Total: CRE whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ — At December 31, 2016: Loans without a specific valuation allowance: CRE whole loans $ — $ — $ — $ — $ — Loans with a specific valuation allowance: CRE whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ 480 Total: CRE whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ 480 Troubled- Debt Restructurings The following table shows TDRs in the Company's loan portfolio (dollars in thousands): Year ended December 31, 2017 Year ended December 31, 2016 Number of Loans Pre-Modification Outstanding Recorded Balance Post-Modification Outstanding Recorded Balance Number of Loans Pre-Modification Outstanding Recorded Balance Post-Modification Outstanding Recorded Balance CRE whole loans — $ — $ — 3 $ 29,459 $ 21,400 Total — $ — $ — 3 $ 29,459 $ 21,400 |
INVESTMENT SECURITIES, TRADING
INVESTMENT SECURITIES, TRADING | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES, TRADING | NOTE 8 - INVESTMENT SECURITIES, TRADING Structured notes are CLO debt securities collateralized by syndicated corporate loans. The following table summarizes the Company's structured notes classified as investment securities, trading and carried at fair value (in thousands, except for number of securities): Number of Securities Amortized Cost Unrealized Gains Unrealized Losses Fair Value At December 31, 2017: Structured notes 4 $ 2,891 $ — $ (2,713 ) $ 178 At December 31, 2016: Structured notes 5 $ 6,242 $ 920 $ (2,670 ) $ 4,492 The Company sold one and 19 investment securities, trading for a net realized gain of $9,000 and $1.4 million during the years ended December 31, 2017 and 2015 , respectively. There were no investment securities, trading sold during the year ended December 31, 2016 . |
INVESTMENT SECURITIES AVAILABLE
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | 12 Months Ended |
Dec. 31, 2017 | |
Available-for-sale Securities [Abstract] | |
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | NOTE 9 - INVESTMENT SECURITIES AVAILABLE-FOR-SALE The following table summarizes the Company's investment securities available-for-sale, including those pledged as collateral. ABS may include, but are not limited to the Company's investments in the Harvest CLOs, which are euro-denominated CLO investments backed by syndicated bank loans, other securities backed by syndicated corporate loans and other loan obligations. These securities are carried at fair value (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value (1) At December 31, 2017: CMBS $ 210,806 $ 1,947 $ (1,174 ) $ 211,579 ABS 259 — (101 ) 158 Total $ 211,065 $ 1,947 $ (1,275 ) $ 211,737 At December 31, 2016: CMBS $ 98,525 $ 425 $ (863 ) $ 98,087 ABS - structured notes 17,492 2,623 — 20,115 ABS 3,873 1,365 (73 ) 5,165 RMBS 1,526 77 (2 ) 1,601 Total $ 121,416 $ 4,490 $ (938 ) $ 124,968 (1) At December 31, 2017 and 2016 , $169.6 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 payoff dates of the Company's investment securities available-for-sale according to their estimated weighted average life classifications (in thousands, except percentages): December 31, 2017 December 31, 2016 Amortized Cost Fair Value Weighted Average Coupon Amortized Cost Fair Value Weighted Average Coupon Less than one year (1) $ 25,475 $ 25,275 5.55% $ 80,801 $ 80,325 5.60% Greater than one year and less than five years 126,273 127,104 4.65% 17,197 17,408 4.52% Greater than five years and less than ten years 59,317 59,358 3.53% 9,622 12,936 10.68% Greater than ten years — — —% 13,796 14,299 10.39% Total $ 211,065 $ 211,737 4.45% $ 121,416 $ 124,968 6.39% (1) The Company expects that the payoff dates of these CMBS and ABS will either be extended or that they will be paid in full. At December 31, 2017 , the contractual maturities of the CMBS investment securities available-for-sale range from June 2022 to November 2059 . The Company holds an ABS investment security available-for-sale that is in technical default, having matured in November 2012, and an ABS investment security available-for-sale with a contractual maturity of August 2021 . The following table summarizes the fair value, gross unrealized losses and number of securities aggregated by investment category and the length of time that individual investment securities available-for-sale have been in a continuous unrealized loss position during the periods specified (in thousands, except number of securities): Less than 12 Months More than 12 Months Total Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized Number of At December 31, 2017: CMBS $ 49,016 $ (888 ) 12 $ 1,308 $ (286 ) 4 $ 50,324 $ (1,174 ) 16 ABS 158 (101 ) 1 — — — 158 (101 ) 1 Total temporarily impaired securities $ 49,174 $ (989 ) 13 $ 1,308 $ (286 ) 4 $ 50,482 $ (1,275 ) 17 At December 31, 2016: CMBS $ 30,869 $ (436 ) 10 $ 26,616 $ (427 ) 15 $ 57,485 $ (863 ) 25 ABS — — — 828 (73 ) 1 828 (73 ) 1 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. The Company recognized no other-than-temporary impairment on its investment securities available-for-sale for the year ended December 31, 2017 . During the years ended December 31, 2016 and 2015 , the Company recognized $20.9 million and $372,000 of other-than-temporary impairments on its investment securities available-for-sale, respectively, as reported in impairment losses in the consolidated statements of operations. Other-than-temporary impairments recognized during the year ended December 31, 2016 consisted of following: The Company recognized a $19.9 million other-than-temporary impairment on its investment in RREF CDO 2007-1, resulting from updated appraisals that indicated adverse changes in projected cash flows that would make the amortized cost basis unrecoverable, in total. The Company recorded an other-than-temporary impairment of $241,000 on three RMBS positions, classified as investment securities available-for-sale, after it was determined the Company would not be able to recover the full amortized cost basis of these securities due to adverse changes in the projected cash flows. One CMBS position, classified as an investment security available-for-sale with a face value of $4.0 million , was identified as a position the Company would sell before it could recover the amortized cost basis. As such, the Company recorded an other-than-temporary impairment of $732,000 . The following table summarizes the Company's sales of investment securities available-for-sale (in thousands, except number of positions sold and redeemed): Positions Positions Redeemed Par Amount Sold/Redeemed Amortized Cost Realized Gain (Loss) Proceeds Year Ended December 31, 2017: CMBS 2 — $ 7,350 $ 6,650 $ (238 ) $ 6,412 ABS - structured notes (1) 3 — $ 24,267 $ 19,258 $ 632 $ 17,608 ABS 5 — $ 8,306 $ 4,319 $ 1,356 $ 5,675 RMBS 3 — $ 153,519 $ 1,274 $ (158 ) $ 1,116 Year Ended December 31, 2016: CMBS 1 — $ 4,000 $ 3,257 $ (450 ) $ 2,807 ABS 1 — $ 10,830 $ 9,004 $ 418 $ 9,422 Year Ended December 31, 2015: CMBS 1 — $ 3,000 $ 3,071 $ (58 ) $ 3,013 ABS - structured notes 2 — $ 20,195 $ 18,268 $ (2,810 ) $ 15,458 ABS 22 3 $ 49,706 $ 17,269 $ 12,007 $ 29,276 RMBS 6 — $ 28,305 $ 4,575 $ 984 $ 5,559 (1) Realized gain (loss) includes the recognition of the fair values of the retained collateral management fee rebate of $2.3 million . |
INVESTMENTS IN UNCONSOLIDATED S
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES | NOTE 10 - INVESTMENTS IN UNCONSOLIDATED ENTITIES The following table summarizes the Company's investments in unconsolidated entities at December 31, 2017 and 2016 and equity in earnings of unconsolidated entities for the years ended December 31, 2017 , 2016 and 2015 (in thousands, except percentages): Equity in Earnings (Losses) of Unconsolidated Entities Ownership % at December 31, 2017 December 31, Years Ended December 31, 2017 2016 2017 2016 2015 Varde Investment Partners, L.P —% $ — $ — $ — $ — $ (90 ) RRE VIP Borrower, LLC (1) —% — — 45 58 325 Investment in LCC Preferred Stock (2) —% — 42,960 41,465 943 2,601 Investment in CVC Global Credit Opportunities Fund (3) —% — — — — 8 RCM Global, LLC (4)(5) 63.2% — 465 (274 ) 14 — Pelium Capital Partners, L.P. (4)(6) 80.2% 10,503 25,993 (1,856 ) 3,991 — Pearlmark Mezz (7) —% — 16,953 165 968 (460 ) Investment in School Lane House (8) —% — — — (1 ) 4 Subtotal 10,503 86,371 39,545 5,973 2,388 Investment in RCT I and II (9) 3.0% 1,548 1,548 (2,687 ) (2,560 ) (2,421 ) Total $ 12,051 $ 87,919 $ 36,858 $ 3,413 $ (33 ) (1) The investment in RRE VIP Borrower, LLC ("RRE VIP Borrower") was sold in 2014. Earnings for the years ended December 31, 2017 , 2016 and 2015 are related to insurance premium and property tax refunds with respect to the underlying sold properties in the portfolio. (2) The Company's investment in LCC liquidated in July 2017 as a result of the sale of LCC. The $41.1 million gain recognized on the sale is included in equity in earnings of unconsolidated entities on the Company's consolidated statements of operations. (3) In December 2015, the Company redeemed its investment in the fund. (4) Pursuant to the new consolidation guidance adopted in January 2016, these previously consolidated VIEs are now accounted for under the equity method. (5) The Company had no carrying value on its investment in RCM Global at December 31, 2017 due to accumulated losses in excess of the investment's cost basis. (6) During the year ended December 31, 2017 , the Company received proceeds of $13.6 million related to the partial liquidation of its investment. (7) The Company sold its investment in Pearlmark Mezz in May 2017. (8) The Company's investment in School Lane House was sold in March 2014. (9) For the years ended December 31, 2017 , 2016 and 2015 , distributions from the trusts are recorded in interest expense on the Company's consolidated statements of operations as the investment is accounted for under the cost method. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 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 Outstanding Unamortized Outstanding Borrowings Weighted Average Weighted Average Value of At December 31, 2017: RCC 2015-CRE3 Senior Notes $ 85,788 $ 396 $ 85,392 4.50% 14.2 years $ 149,828 RCC 2015-CRE4 Senior Notes 90,883 407 90,476 3.65% 14.6 years 180,066 RCC 2017-CRE5 Senior Notes 244,280 3,493 240,787 2.51% 16.6 years 369,534 Unsecured Junior Subordinated Debentures 51,548 — 51,548 5.49% 18.7 years — 4.50% Convertible Senior Notes 143,750 16,626 127,124 4.50% 4.6 years — 6.00% Convertible Senior Notes 70,453 928 69,525 6.00% 335 days — 8.00% Convertible Senior Notes 21,182 466 20,716 8.00% 2.0 years — CRE - Term Repurchase Facilities (1) 292,511 1,013 291,498 3.82% 222 days 432,125 CMBS - Term Repurchase Facilities (2) 27,628 — 27,628 3.05% 121 days 38,060 Trust Certificates - Term Repurchase Facilities (3) 76,714 570 76,144 5.97% 2.1 years 214,375 CMBS - Short Term Repurchase Agreements (4) 82,647 — 82,647 2.79% 14 days 131,522 Total $ 1,187,384 $ 23,899 $ 1,163,485 4.00% 7.3 years $ 1,515,510 Principal Outstanding Unamortized Outstanding Borrowings Weighted Average Weighted Average Value of At December 31, 2016: RCC 2014-CRE2 Senior Notes $ 131,936 $ 1,871 $ 130,065 2.19% 15.3 years $ 250,255 RCC 2015-CRE3 Senior Notes 196,112 2,358 193,754 2.82% 15.2 years 259,889 RCC 2015-CRE4 Senior Notes 158,475 2,193 156,282 2.55% 15.6 years 247,414 Unsecured Junior Subordinated Debentures 51,548 — 51,548 4.89% 19.8 years — 6.00% Convertible Senior Notes 115,000 3,231 111,769 6.00% 1.9 years — 8.00% 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 $534,000 and $468,000 related to CRE term repurchase facilities at December 31, 2017 and 2016 , respectively. (2) Amounts also include accrued interest expense of $46,000 and $157,000 related to CMBS term repurchase facilities at December 31, 2017 and 2016 , respectively. (3) Amount also includes accrued interest expense of $203,000 and $69,000 related to trust certificate repurchase facilities at December 31, 2017 and 2016 , respectively. (4) Amounts also include accrued interest expense of $279,000 and $0 related to CMBS short term repurchase facilities at December 31, 2017 and 2016 , respectively. Securitizations The following table sets forth certain information with respect to the Company's consolidated securitizations at December 31, 2017 : Securitization Closing Date Maturity Date End of Designated Principal Reinvestment Period (1) Total Note Paydowns Received from Closing Date through December 31, 2017 RCC 2015-CRE3 February 2015 March 2032 February 2017 $ 196,339 RCC 2015-CRE4 August 2015 August 2032 September 2017 $ 132,852 RCC 2017-CRE5 July 2017 July 2034 July 2020 $ 7,169 (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 of the securitizations held by the Company at December 31, 2017 are eliminated in consolidation. RCC CRE Notes 2013 In December 2013, the Company closed RCC CRE Notes 2013, a $307.8 million CRE securitization transaction that provided financing for transitional CRE loans. RCC CRE Notes 2013 issued a total of $260.8 million of senior notes at par to unrelated investors. RCC Real Estate purchased 100% of the Class D senior notes, Class E senior notes and Class F senior notes. In addition, a subsidiary of RCC Real Estate purchased an equity interest representing 100% of the outstanding preference shares. The senior notes purchased by RCC Real Estate are subordinated in right of payment to all other senior notes issued by RCC CRE Notes 2013 but are senior in right of payment to the preference shares. The equity interest is subordinated in right of payment to all other securities issued by RCC CRE Notes 2013. In December 2016, the subsidiary exercised the optional redemption feature of RCC CRE Notes 2013 and the outstanding senior notes were paid off as a result of the maturities of certain of the securitization's assets. RCC 2014-CRE2 In July 2014, the Company closed RCC 2014-CRE2, a $353.9 million CRE securitization transaction that provided financing for transitional CRE loans. RCC 2014-CRE2 issued a total of $235.3 million of senior notes at par to unrelated investors. RCC Real Estate purchased 100% of the Class C senior notes. In addition, a subsidiary of RCC Real Estate purchased an equity interest representing 100% of the outstanding preference shares. The senior notes purchased by RCC Real Estate were subordinated in right of payment to all other senior notes issued by RCC 2014-CRE2, are senior in right of payment to the preference shares. The equity interest was subordinated in right of payment to all other securities issued by RCC 2014-CRE2. In August 2017, the Company initiated liquidation of RCC 2014-CRE2, and all of the outstanding senior notes were paid off from the payoff proceeds of certain of the securitizations's assets. RCC 2015-CRE3 In February 2015, the Company closed RCC 2015-CRE3, a $346.2 million CRE securitization transaction that provided financing for transitional CRE loans. RCC 2015-CRE3 issued a total of $282.1 million of senior notes at par to unrelated investors. RCC Real Estate purchased 100% of the Class E and Class F senior notes. In addition, a subsidiary of RCC Real Estate purchased an equity interest representing 100% of the outstanding preference shares. The senior notes purchased by RCC Real Estate are subordinated in right of payment to all other senior notes issued by RCC 2015-CRE3, but are senior in right of payment to the preference shares. The equity interest is subordinated in right of payment to all other securities issued by RCC 2015-CRE3. At closing, the senior notes issued to investors consisted of the following classes: (i) $193.9 million of Class A notes bearing interest at one-month LIBOR plus 1.40% , increasing to 1.65% in February 2020 ; (ii) $17.3 million of Class A-S notes bearing interest at one-month LIBOR plus 1.65% , increasing to 1.90% in March 2020 ; (iii) $19.5 million of Class B notes bearing interest at one-month LIBOR plus 2.40% , increasing to 2.90% in April 2020 ; (iv) $20.8 million of Class C notes bearing interest at one-month LIBOR plus 3.15% , increasing to 3.65% in April 2020 ; (v) $30.7 million of Class D notes bearing interest at one-month LIBOR plus 4.00% , increasing to 4.50% in April 2020 ; (vi) $20.8 million of Class E notes bearing interest at one-month LIBOR plus 4.75% ; and (vii) $15.6 million of Class F notes bearing interest at one-month LIBOR plus 5.50% . All of the notes issued mature in March 2032 , although the Company has the right to call the notes any time after March 2017 until maturity. RCC 2015-CRE4 In August 2015, the Company closed RCC 2015-CRE4, a $312.9 million CRE securitization transaction that provided financing for transitional CRE loans. RCC 2015-CRE4 issued a total of $223.7 million of senior notes at par to unrelated investors. RCC Real Estate purchased 100% of the Class C senior notes. In addition, a subsidiary of RCC Real Estate purchased an equity interest representing 100% of the outstanding preference shares. The senior notes purchased by RCC Real Estate are subordinated in right of payment to all other senior notes issued by RCC 2015-CRE4, but are senior in right of the payment to the preference shares. The equity interest is subordinated in right of payment to all other securities issued by RCC 2015-CRE4. At closing, the senior notes issued to investors consisted of the following classes: (i) $179.9 million of Class A notes bearing interest at one-month LIBOR plus 1.40% , increasing to 1.65% in August 2020 ; (ii) $43.8 million of Class B notes bearing interest at one-month LIBOR plus 3.00% , increasing to 3.50% in September 2020 ; and (iii) 26.6 million of Class C notes bearing interest at one-month LIBOR plus 4.75% . All of the notes issued mature in August 2032 , although the Company has the right to call the notes any time after September 2017 until maturity. RCC 2017-CRE5 In July 2017, the Company closed RCC 2017-CRE5, a $376.7 million CRE securitization transaction that provided financing for transitional CRE loans. RCC 2017-CRE5 issued a total of $251.4 million of senior notes at par to unrelated investors. RCC Real Estate purchased 100% of the Class C senior notes. In addition, a subsidiary of RCC Real Estate purchased an equity interest representing 100% of the outstanding preference shares. The senior notes purchased by RCC Real Estate are subordinated in right of payment to all other senior notes issued by RCC 2017-CRE5, but are senior in right of the payment to the preference shares. The equity interest is subordinated in right of payment to all other securities issued by RCC 2017-CRE5. At closing, the senior notes issued to investors consisted of the following classes: (i) $203.4 million of Class A notes bearing interest at one-month LIBOR plus 0.80% , increasing to 1.05% in April 2022 ; (ii) $48.0 million of Class B notes bearing interest at one-month LIBOR plus 2.00% , increasing to 2.50% in July 2022 ; and (iii) $49.9 million of Class C notes bearing interest at one-month LIBOR plus 3.50% , increasing to 4.00% in July 2022 . All of the notes issued mature in July 2034, although the Company has the right to call the notes anytime after July 2019. There is no reinvestment period in RCC 2017-CRE5; however, principal repayments, for a period ending in July 2020, may be used to purchase funding participations with respect to existing collateral held outside of the securitization. Corporate Debt Unsecured Junior Subordinated Debentures During 2006, the Company formed RCT I and RCT II for the sole purpose of issuing and selling capital securities representing preferred beneficial interests. RCT I and RCT II are not consolidated into the Company's consolidated financial statements because the Company is not deemed to be the primary beneficiary of these entities. In connection with the issuance and sale of the capital securities, the Company issued junior subordinated debentures to RCT I and RCT II of $25.8 million each, representing the Company's maximum exposure to loss. The debt issuance costs associated with the junior subordinated debentures for RCT I and RCT II were included in borrowings and were amortized into interest expense on the consolidated statements of operations using the effective yield method over a ten year period. There were no unamortized debt issuance costs associated with the junior subordinated debentures for RCT I and RCT II outstanding at December 31, 2017 and 2016 . The interest rates for RCT I and RCT II, at December 31, 2017 , were 5.64% and 5.33% , respectively. The interest rates for RCT I and RCT II, at December 31, 2016 , were 4.95% and 4.84% , respectively. The rights of holders of common securities of RCT I and RCT II are subordinate to the rights of the holders of capital securities only in the event of a default; otherwise, the common securities' economic and voting rights are pari passu with the capital securities. The capital and common securities of RCT I and RCT II are subject to mandatory redemption upon the maturity or call of the junior subordinated debentures held by each. Unless earlier dissolved, RCT I will dissolve in May 2041 and RCT II will dissolve in September 2041. The junior subordinated debentures are the sole assets of RCT I and RCT II, which mature in June 2036 and October 2036, respectively, and may currently be called at par. 4.50% Convertible Senior Notes In August 2017, the Company issued $143.8 million aggregate principal amount of its 4.50% convertible senior notes due 2022 (" 4.50% Convertible Senior Notes"). The gross proceeds were utilized to pay $3.9 million in debt issuance costs and to extinguish a portion of the Company's 6.00% convertible senior notes due 2018 (" 6.00% Convertible Senior Notes") and 8.00% convertible senior notes due 2020 (" 8.00% Convertible Senior Notes"), resulting in net proceeds of $13.5 million . In addition, the Company recorded a discount of $14.2 million (the offset of which was recorded in additional paid-in capital) on the 4.50% Convertible Senior Notes that reflects the difference between the proceeds received less the fair value of the notes as if they were issued without a conversion feature. The market discounts and the deferred debt issuance costs are amortized into interest expense on the consolidated statements of operations on an effective interest basis over the period ending in August 2022. Interest on the 4.50% Convertible Senior Notes is paid semi-annually in February and August. Unless earlier repurchased or converted, the 4.50% Convertible Senior Notes become due and payable on August 15, 2022. Holders of 4.50% Convertible Senior Notes may require the Company to repurchase all or a portion of the 4.50% Convertible Senior Notes at a purchase price equal to the principal amount plus accrued and unpaid interest in August 2022, or upon the occurrence of certain defined fundamental changes. The 4.50% Convertible Senior Notes are convertible at the option of the holder at a current conversion rate of 78.2473 common shares per $1,000 principal amount, subject to downward adjustment, of 4.50% Convertible Senior Notes (equivalent to an initial conversion price of $12.78 per common share). Upon conversion of the 4.50% Convertible Senior Notes, a holder will receive cash, the Company's common shares or a combination of cash and the Company's common shares, at the Company's election. 6.00% Convertible Senior Notes In October 2013, the Company issued, in a public offering, $115.0 million aggregate principal amount of its 6.00% Convertible Senior Notes. The Company received approximately $111.1 million of net proceeds after deducting the underwriting discount and costs. In addition, the Company recorded a discount of $4.9 million (the offset of which was recorded in additional paid-in capital) on the 6.00% Convertible Senior Notes that reflects the difference between the stated value of the debt and the fair value of the notes as if they were issued without a conversion feature. The market discount and the deferred debt issuance costs are amortized into interest expense on the consolidated statements of operations on a straight line basis over the period ended in December 1, 2018 . Interest on the 6.00% Convertible Senior Notes is paid semi-annually in June and December. Unless earlier repurchased or converted, the 6.00% Convertible Senior Notes become due and payable on December 1, 2018 . Holders of 6.00% Convertible Senior Notes may require the Company to repurchase all or a portion of the 6.00% Convertible Senior Notes at a purchase price equal to the principal amount plus any unpaid interest in December 1, 2018 , or upon the occurrence of certain defined fundamental changes. Upon conversion of the 6.00% Convertible Senior Notes, a holder will receive cash, the Company's common shares or a combination of cash and the Company's common shares, at the Company's election. In connection with the Company's one-for-four reverse stock split, the 6.00% Convertible Senior Notes automatically adjusted from 150.1502 common shares per $1,000 principal amount of such notes to 37.5376 common shares per $1,000 principal amount of such notes. The conversion price was adjusted from $6.66 to $26.64 as a result of the stock split. The Company extinguished $44.5 million aggregate principal of its 6.00% Convertible Senior Notes in conjunction with the issuance of its 4.50% Convertible Senior Notes. As a result of the extinguishment, approximately $381,000 of amortization of the remaining deferred debt issuance costs and $491,000 of amortization of the remaining discount were accelerated. The Company recorded a $2.3 million loss related to the extinguishment of the 6.00% Convertible Senior Notes, which represents the difference between the redemption price and the remaining book value of the extinguished notes. 8.00% Convertible Senior Notes In January 2015, the Company issued, in a public offering, $100.0 million aggregate principal amount of its 8.00% Convertible Senior Notes. After deducting a $1.0 million underwriting discount and deferred debt issuance costs totaling $2.1 million , the Company received approximately $97.0 million of net proceeds. In addition, the Company recorded a discount of $2.5 million (the offset of which was recorded in additional paid-in capital) on the 8.00% Convertible Senior Notes that reflects the difference between the stated value of the debt and the fair value of the notes as if they were issued without a conversion feature. The market discounts and the deferred debt issuance costs are amortized into interest expense on the consolidation statements of operations on a straight line basis over the period ended in January 2020. Interest on the 8.00% Convertible Senior Notes is paid semi-annually in January and July. Unless earlier repurchased or converted, the 8.00% Convertible Senior Notes become due and payable on January 15, 2020. Holders of 8.00% Convertible Senior Notes may require the Company to repurchase all or a portion of the 8.00% Convertible Senior Notes at a purchase price equal to the principal amount plus accrued and unpaid interest on January 2020, or upon the occurrence of certain defined fundamental changes. Upon conversion of the 8.00% Convertible Senior Notes, a holder will receive cash, the Company's common shares or a combination of cash and the Company's common shares, at the Company's election. In connection with the Company's one-for-four reverse stock split, the 8.00% Convertible Senior Notes automatically adjusted from 187.4414 common shares per $1,000 principal amount of such notes to 46.8604 shares of common stock per $1,000 principal amount of such notes. The conversion price was adjusted from $5.34 to $21.36 as a result of the stock split. The Company extinguished $78.8 million aggregate principal of its 8.00% Convertible Senior Notes in conjunction with the issuance of the 4.50% Convertible Senior Notes. As a result of the extinguishment, approximately $836,000 of amortization of the remaining deferred debt issuance costs and $1.4 million of amortization of the remaining discount were accelerated. The Company recorded a loss of $8.1 million related to the extinguishment of the 8.00% Convertible Senior Notes, which represents the difference between the redemption price and the remaining book value of the extinguished notes. Repurchase and Credit Facilities Borrowings under the Company's repurchase agreements are guaranteed by the Company or one of its subsidiaries. The following table sets forth certain information with respect to the Company's repurchase agreements (dollars in thousands): December 31, 2017 December 31, 2016 Outstanding (1) Value of Number of Weighted Average Outstanding (1) Value of Number of Weighted Average CRE - Term Repurchase Facilities Wells Fargo Bank (2) $ 179,347 $ 268,003 19 3.68% $ 215,283 $ 313,126 16 2.86% Morgan Stanley Bank (3) 112,151 164,122 9 4.05% 131,355 207,377 11 3.34% CMBS - Term Repurchase Facilities Wells Fargo Bank 12,272 14,984 8 2.45% 22,506 28,514 13 1.96% Deutsche Bank (4) 15,356 23,076 14 3.53% 55,981 86,643 23 3.04% Trust Certificates - Term Repurchase Facilities RSO Repo SPE Trust 2015 (5) 26,548 89,121 2 6.98% 26,385 89,181 2 6.21% RSO Repo SPE Trust 2017 (6) 49,596 125,254 2 5.43% — — — —% CMBS - Short-Term Repurchase Agreements RBC Capital Markets, LLC 72,131 97,745 6 2.77% — — — —% JP Morgan Securities LLC 10,516 33,777 2 2.93% — — — —% Totals $ 477,917 $ 816,082 $ 451,510 $ 724,841 (1) Outstanding borrowings includes accrued interest expense. (2) The Wells Fargo Bank, N.A. ("Wells Fargo") CRE term repurchase facility includes $565,000 and $1.6 million of deferred debt issuance costs at December 31, 2017 and 2016 , respectively. (3) The Morgan Stanley Bank, N.A. ("Morgan Stanley") CRE term repurchase facility includes $448,000 and $1.1 million of deferred debt issuance costs at December 31, 2017 and 2016 , respectively. (4) The Deutsche Bank Securities, Inc. ("Deutsche Bank") CMBS term repurchase facility includes no deferred debt issuance costs at December 31, 2017 and $16,000 of deferred debt issuance costs at December 31, 2016 . (5) The RSO Repo SPE Trust 2015 term repurchase facility includes $133,000 and $282,000 of deferred debt issuance costs at December 31, 2017 and 2016 , respectively. (6) The RSO Repo SPE Trust 2017 term repurchase facility includes $320,000 of deferred debt issuance costs at December 31, 2017 and no deferred debt issuance costs at December 31, 2016 . The following table shows information about the amount at risk under the repurchase facilities at December 31, 2017 (dollars in thousands): Amount at (1) Weighted Average Remaining Weighted Average At December 31, 2017: CRE - Term Repurchase Facilities Wells Fargo Bank, N. A. $ 89,213 202 days 3.68% Morgan Stanley Bank, N. A. $ 52,241 253 days 4.05% CMBS - Term Repurchase Facilities Wells Fargo Bank, National Association $ 2,737 90 days 2.45% Deutsche Bank, AG $ 7,862 145 days 3.53% Trust Certificates - Term Repurchase Facilities RSO Repo SPE Trust 2015 $ 62,514 324 days 6.98% RSO Repo SPE Trust 2017 $ 75,331 2.7 years 5.43% CMBS - Short-Term Repurchase Agreements RBC Capital Markets, LLC $ 25,813 9 days 2.77% JP Morgan Securities LLC $ 23,343 53 days 2.93% (1) Equal to the estimated fair value of securities or loans sold, plus interest receivable, minus the sum of repurchase agreement liabilities plus accrued interest expense. CRE - Term Repurchase Facilities In February 2012, a wholly-owned subsidiary entered into a master repurchase and securities agreement with Wells Fargo (the "2012 Facility") to finance the origination of CRE loans. The 2012 Facility has been modified and extended over the last several years with the most recent amendment to the agreement occurring in March 2017. The various amendments increased the maximum facility amount to $400.0 million , increased the maximum single asset concentration limit, reduced the minimum portfolio debt yield tests requirement, decreased pricing spreads on select portfolio assets, extended the term to July 2018 and added three additional one year extension options exercisable at the Company's discretion. At December 31, 2017 , the 2012 Facility charged interest rates of one-month LIBOR plus spreads from 1.75% to 2.75% . The 2012 Facility contains customary events of default. The remedies for such events of default are also customary for this type of transaction and include the acceleration of all obligations of the Company to repay the purchase price for purchased assets. The 2012 Facility also contains margin call provisions relating to a decline in the market value of a security. Under these circumstances, Wells Fargo may require the Company to transfer cash in an amount sufficient to eliminate any margin deficit resulting from such a decline. Under the terms of the 2012 Facility and pursuant to a guarantee agreement dated February 2012 (the "2012 Guaranty"), the Company guaranteed the payment and performance of its subsidiaries obligations to the lender including all reasonable expenses that are incurred by the lender in connection with the enforcement of the 2012 Facility. The 2012 Guaranty includes covenants that, among other things, limit the Company's leverage and debt service ratios and require maintenance of certain levels of cash and net worth. The Company obtained a waiver for violation of certain financial covenants at December 31, 2016. The Company was in compliance with all financial covenants under the terms of the 2012 Facility and 2012 Guaranty at December 31, 2017 . In September 2015, a wholly-owned subsidiary entered into a master repurchase and securities agreement (the "Morgan Stanley Facility") with Morgan Stanley to finance the origination of CRE loans. The Company paid a commitment fee of 0.65% of the maximum facility amount, as well as other standard costs. The Morgan Stanley Facility has a maximum capacity of $250.0 million , an initial three year term that expires in September 2018, with annual one year extension options at the Company's request and with Morgan Stanley's approval, and an interest rate of one-month LIBOR plus an applicable spread ranging from 2.25% to 2.75% . Morgan Stanley charges an unused fee of 0.50% if the average daily outstanding borrowings are less than or equal to 50% of the Morgan Stanley Facility amount, and of 0.25% if the amount the average daily outstanding borrowings are greater than 50% but less than 65% of the Morgan Stanley Facility amount. Morgan Stanley waived this unused fee until January 2016. 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 with amended the required capital amount and EBITDA to interest expense ratio covenants, effective December 31, 2016. The Morgan Stanley Facility contains customary events of default (subject to certain materiality thresholds and grace periods) customary for this type of financing arrangement. The remedies for such events of default are also customary for this type of transaction and include the acceleration of the principal amount outstanding under the Morgan Stanley Facility and the liquidation of assets subject to the facility by Morgan Stanley. The Company obtained a waiver for violation of certain financial covenants at December 31, 2016. The Company was in compliance with all covenants under the terms of the Morgan Stanley Facility at December 31, 2017 . CMBS - Term Repurchase Facilities In February 2011, two of the Company's wholly-owned subsidiaries entered into a master repurchase and securities contract (the "2011 Facility") and a guaranty agreement (the "2011 Guaranty") with Wells Fargo. Under the 2011 Facility, the parties may enter into transactions in which the subsidiaries transfer all of their right, title and interest to certain CMBS and other assets to Wells Fargo and in return receives funds from Wells Fargo with a simultaneous agreement to transfer back such assets to the subsidiary at a later date, against the transfer of funds from the subsidiaries to Wells Fargo. The maximum amount of the 2011 Facility is $100.0 million and the facility charges interest at a rate equal to the one-month LIBOR plus 1.00% . Amendments to the 2011 Facility have extended the current termination date to March 2018. The Company paid off this facility in March 2018, prior to maturity. The 2011 Facility contains customary events of default. The remedies for such events of default are also customary for this type of transaction and include the acceleration of all obligations of the subsidiaries to repay the purchase price for purchased assets. The 2011 Facility also contains margin call provisions relating to a decline in the market value of a security. Under these circumstances, Wells Fargo may require the subsidiaries to transfer cash in an amount sufficient to eliminate any margin deficit resulting from such a decline. Under the terms of the 2011 Facility and the 2011 Guaranty, the Company guaranteed the payment and performance of its subsidiaries obligations to the lender, including all expenses that are incurred in connection with the enforcement of the 2011 Facility. The 2011 Guaranty includes covenants that among other things, limit the Company's leverage and debt service ratios and require maintenance of certain levels of cash and net worth. The Company obtained a waiver for violation of certain financial covenants at December 31, 2016. The Company was in compliance with all financial covenants under the terms of the 2011 Facility and 2011 Guaranty at December 31, 2017 . In March 2005, a wholly-owned subsidiary entered into a repurchase and securities agreement (the "2005 Facility") with Deutsche Bank Securities, Inc. ("Deutsche Bank") to finance the purchase CMBS. In May 2016, the Company entered into an agreement governed by the 2005 Facility with Deutsche Bank to enter into transactions in which the subsidiary transfers all of their right, title and interest to certain CMBS and other assets to Deutsche Bank and in return receives funds from Deutsche Bank, with a simultaneous agreement to transfer back such assets to the subsidiary at a later date, against the transfer of funds from the subsidiary to Deutsche Bank. In May 2017, Deutsche Bank approved the extension of the agreement to May 2018. Trust Certificates - Term Repurchase Facilities In November 2015, a subsidiary entered into a repurchase and securities agreement (the "2015 Term Repurchase Trust Facility 2015") with RSO Repo SPE Trust 2015, a structure that provides financing under a structured sale of trust certificates to qualified institutional buyers through an offering led by Wells Fargo Securities, LLC ("Wells Fargo Securities"). The 2015 Term Repurchase Trust Facility sold trust certificates of $26.6 million with an initial three year term that expires in November 2018, and charges an interest rate of one-month LIBOR plus an applicable spread of 5.50% . Subsequent to May 2017, the Company has the ability to prepay the 2015 Term Repurchase Trust Facility at any time without penalty. The 2015 Term Repurchase Trust Facility contains events of default. The remedies for such events of default include: immediate repayment of the repurchase obligations and retainment of all income received on the purchased asset and the pledged collateral. The Company was in compliance with all financial covenants under the terms of the facility at December 31, 2017 . In September 2017, a subsidiary entered into a repurchase and securities agreement (the "2017 Term Repurchase Trust Facility") with RSO Repo SPE Trust 2017, a structure that provides financing under a structured sale of trust certificates to qualified institutional buyers through an offering led by Wells Fargo Securities. The 2017 Term Repurchase Trust Facility sold trust certificates of $49.9 million with an initial three year term that expires in September 2020, and charges an interest rate of one-month LIBOR plus an applicable spread of 3.95% . Subsequent to March 2019, the Company has the ability to prepay the 2017 Term Repurchase Trust Facility at any time without penalty. The Term Repurchase Trust Facility 2017 contains events of default. The remedies for such events of default include: immediate repayment of the repurchase obligations and retainment of all income received on the purchased asset and the pledged collateral. The Company was in compliance with all financial covenants under the terms of the facility at December 31, 2017 . CMBS - Short-Term Repurchase Agreements In August 2017, a subsidiary entered into a master repurchase and securities agreement with RBC Capital Markets, LLC to finance the purchase of CMBS. In November 2012, a subsidiary 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 shareholder's equity of the guarantor and maximum leverage ratio covenants. In February 2012, a subsidiary entered into a master repurchase and securities agreement with Wells Fargo Se |
SHARE ISSUANCE AND REPURCHASE
SHARE ISSUANCE AND REPURCHASE | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE ISSUANCE AND REPURCHASE | NOTE 12 - SHARE ISSUANCE AND REPURCHASE In December 2017, the Company announced the January 2018 redemption of all shares of its 8.50% Series A Cumulative Redeemable Preferred Stock ("Series A Preferred Stock") and 930,983 shares of its 8.25% Series B Cumulative Redeemable Preferred Stock ("Series B Preferred Stock") at a redemption price of $25.00 per share. The total redemption cost of $50.0 million was reclassified to preferred stock redemption liability on the consolidated balance sheets and a preferred stock redemption charge of $3.8 million was recognized during the year ended December 31, 2017 . The Company may at its option redeem its remaining Series B Preferred Stock 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. See Note 25 . On or after July 30, 2024 , the Company may, at its option, redeem its 8.625% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock ("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. Effective July 30, 2024 and thereafter, the Company will pay cumulative distributions on the Series C Preferred Stock at a floating rate equal to three-month LIBOR plus a spread of 5.927% per annum based on the $25.00 liquidation preference, provided that such floating rate shall not be less than the initial rate of 8.625% at any date of determination. Under a share repurchase plan authorized by the board of directors in August 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 plan 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, 2017 , the Company has repurchased $35.2 million of its common stock, representing approximately 2.8 million shares or 8.3% of the outstanding balance at the inception of the plan, and $3.1 million of its outstanding Series B Preferred Stock, representing approximately 196,000 shares or 3.4% of the outstanding balance at the inception of the plan. At December 31, 2017 , $44.9 million remains available in this repurchase plan. Under a dividend reinvestment plan authorized by the board of directors in March 2013, the Company was authorized to issue up to 5.0 million shares of common stock. During the year ended December 31, 2017 , the Company did not sell any shares of common stock through this program. During the year ended December 31, 2016 , the Company sold approximately 10,000 shares of common stock through this program, resulting in proceeds of approximately $117,000 . At December 31, 2017 , the Company had 4.6 million and 4.8 million shares outstanding of Series B Preferred Stock and Series C Preferred C Stock, with a weighted average offering price, excluding offering costs, of $24.02 and $25.00 , respectively. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 13 - SHARE-BASED COMPENSATION In July 2007, the Company's shareholders approved the 2007 Omnibus Equity Compensation Plan (the "2007 Plan"). The 2007 Plan authorized the issuance of up to 500,000 shares of common stock in the form of options to purchase common stock, stock awards, performance shares and stock appreciation rights. In June 2011, the 2007 Plan was amended to: (i) increase the number of shares authorized for issuance under the 2007 Plan from 500,000 shares to 1,350,000 shares; (ii) extend the expiration of the 2007 Plan to June 2021; (iii) provide that the administrator making certain determinations after a change of control, as defined in the 2007 Plan, will be comprised of the same persons who constitute the administrator immediately before the change of control; and (iv) make other clarifying and updating amendments to the 2007 Plan. 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 37,492 321,789 12,019 371,300 Vested (25,948 ) (182,511 ) (53,205 ) (261,664 ) Forfeited (4,299 ) (20,902 ) (1,412 ) (26,613 ) Unvested shares at December 31, 2017 34,565 419,862 28,646 483,073 (1) Non-employees are employees of C-III and Resource America. The Company is required to value any unvested shares of restricted common stock granted to non-employees at the current market price. The estimated fair value at grant date of the shares of restricted common stock granted to non-employees during the years ended December 31, 2017 , 2016 and 2015 was $2.7 million , $2.3 million and $4.9 million , respectively. The estimated fair value at grant date of the shares of restricted common stock issued to the Company's eight non-employee directors during the years ended December 31, 2017 and 2016 was $325,000 and $290,000 , respectively. The estimated fair value at grant date of the shares of restricted common stock issued to the Company's seven non-employee directors during the year ended December 31, 2015 was $256,000 . At December 31, 2017 the total unrecognized restricted common stock expense for non-employees was $1.4 million , with a weighted average amortization period remaining of 2.0 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 year ended December 31, 2017 : Date Shares Vesting per Year Vesting Date(s) January 25, 2017 333,808 33.3% January 25, 2018, January 25, 2019 and January 25, 2020 February 1, 2017 4,242 100% February 1, 2018 March 8, 2017 18,450 100% March 8, 2018 March 13, 2017 4,299 100% March 13, 2018 June 1, 2017 3,575 100% June 1, 2018 June 6, 2017 3,680 100% June 6, 2018 September 29, 2017 3,246 100% September 29, 2018 The following table summarizes the status of the Company's vested stock options at December 31, 2017 : Vested Options Number of Options Weighted Average Exercise Price Weighted Average Remaining Aggregate Intrinsic Value (in thousands) Vested at January 1, 2017 26,250 $ 46.60 Vested — $ — Exercised — $ — Forfeited — $ — Expired (16,250 ) $ 59.52 Vested at December 31, 2017 10,000 $ 25.60 3.38 $ — There were no options granted during the years ended December 31, 2017 or 2016 . The outstanding stock options have a contractual term of ten years and will expire in 2021. The components of equity compensation expense for the periods presented are as follows (in thousands): Years Ended December 31, 2017 2016 2015 Restricted shares granted to non-employees (1)(2) $ 2,456 $ 2,758 $ 2,163 Restricted shares granted to non-employee directors 282 267 257 Total equity compensation expense (3) $ 2,738 $ 3,025 $ 2,420 (1) Non-employees are employees of C-III and Resource America. (2) Amounts include $691,000 of equity compensation expense, for the year ended December 31, 2016, associated with the accelerated stock vesting of former executives of the Company. (3) Amounts exclude equity compensation expense for employees of the Company's subsidiary PCM, which is included in net income (loss) from discontinued operations, net of tax. Under the Company's Third Amended and Restated Management Agreement ("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 recorded in the management fee - related party line item on the consolidated statements of operations. During the year ended December 31, 2017 , the Manager earned approximately 51,300 shares as incentive compensation valued at $539,000 pursuant to the Management Agreement. The Manager received no incentive management fee for the years ended December 31, 2016 and 2015 . All equity awards, apart from incentive compensation under the Management Agreement, are discretionary in nature and subject to approval by the compensation committee of the Company's board of directors. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 14 - EARNINGS PER SHARE The following table presents a reconciliation of basic and diluted earnings (loss) per share for the periods presented as follows (in thousands, except share and per share amounts): Years Ended December 31, 2017 2016 2015 Net income (loss) from continuing operations $ 47,457 $ (11,334 ) $ 11,079 Net income allocated to preferred shares (24,057 ) (24,091 ) (24,437 ) Carrying value (less than) in excess of consideration paid for preferred shares (3,803 ) 1,500 — Net loss (income) allocable to non-controlling interest, net of taxes 196 229 (6,628 ) Net income (loss) from continuing operations allocable to common shares 19,793 (33,696 ) (19,986 ) Net (loss) income from discontinued operations, net of tax (14,116 ) (19,260 ) 6,104 Net income (loss) allocable to common shares $ 5,677 $ (52,956 ) $ (13,882 ) Net income (loss) per common share - basic Weighted average number of shares outstanding 30,836,400 30,539,369 32,280,319 Continuing operations $ 0.64 $ (1.10 ) $ (0.62 ) Discontinued operations (0.46 ) (0.63 ) 0.19 Net income (loss) per common share - basic $ 0.18 $ (1.73 ) $ (0.43 ) Net income (loss) per common share - diluted: Weighted average number of shares outstanding 30,836,400 30,539,369 32,280,319 Additional shares due to assumed conversion of dilutive instruments 239,387 — — Adjusted weighted-average number of common shares outstanding 31,075,787 30,539,369 32,280,319 Continuing operations $ 0.64 $ (1.10 ) $ (0.62 ) Discontinued operations (0.46 ) (0.63 ) 0.19 Net income (loss) per common share - diluted $ 0.18 $ (1.73 ) $ (0.43 ) Potentially dilutive shares excluded from calculation due to anti-dilutive effect (1) 11,238,408 9,002,864 9,002,864 (1) Potentially dilutive shares issuable in connection with the potential conversion of the Company's 4.50% Convertible Senior Notes, 6.00% Convertible Senior Notes and 8.00% Convertible Senior Notes ( see Note 11 ) 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) | 12 Months Ended |
Dec. 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 year ended December 31, 2017 (in thousands): Net unrealized (loss) gain on derivatives Net unrealized (loss) gain on investment securities Accumulated other comprehensive income (loss) Balance at January 1, 2017 $ (18 ) $ 3,099 $ 3,081 Other comprehensive gain (loss) before reclassifications (net of taxes of $512) 602 (1,870 ) (1,268 ) Amounts reclassified from accumulated other comprehensive income (1) 18 (534 ) (516 ) Balance at December 31, 2017 $ 602 $ 695 $ 1,297 (1) Amounts reclassified from accumulated other comprehensive income are reclassified to net realized an unrealized gain on investment securities available-for-sale and loans and derivatives on the Company's consolidated statements of operations. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 16 - RELATED PARTY TRANSACTIONS Management Agreement In March 2005, the Company entered into a Management Agreement with the Manager and Resource America pursuant to which the Manager provides the Company investment management, administrative and related services. In September 2016, Resource America was acquired by C-III, and, as part of the transaction C-III took over control of the Company's Manager with respect to the management agreement. The agreement has been amended and restated several times over the years and was last amended and restated in December 2017. The management agreement requires the Manager to manage the Company's business affairs in conformity with the policies and investment guidelines established by the Company's board of directors. The Manager provides its services under the supervision and direction of the Company's board of directors. The Manager is responsible for the selection, purchase and sale of the Company's portfolio investments, its financing activities and providing investment advisory services. The Manager also provides the Company with a Chief Financial Officer and a sufficient number of additional accounting, finance, tax and investor relations professionals. The Manager receives fees and is reimbursed for its expenses as follows: • A monthly base management fee equal to 1/12 th of the amount of the Company's equity multiplied by 1.5% ; provided, however that the base management fee is fixed at $937,500 per month for each of the 15 successive months beginning on October 1, 2017. Under the management agreement, ''equity'' is equal to the net proceeds from issuances of shares of capital stock (or the value of common shares upon the conversion of convertible securities), less offering-related costs, plus or minus the Company's retained earnings (excluding non-cash equity compensation incurred in current or prior periods) less all amounts the Company has paid for common stock and preferred stock repurchases. The calculation is adjusted for one-time events due to changes in GAAP, as well as other non-cash charges, upon approval of the Company's independent directors. • Incentive compensation, calculated quarterly as follows: (A) 20% of the amount by which the Company's core earnings (as defined in the management agreement) for a quarter exceeds the product of (i) the weighted average of (x) the per share book value of the Company's common shares at September 30, 2017 (subject to adjustments for certain items of income or loss on operations or gain or loss on resolutions under the Plan from October 1, 2017 through December 31, 2018) and (y) the per share price (including the conversion price, if applicable) paid for the Company's common shares in each offering (or issuance, upon the conversion of convertible securities) by it subsequent to September 30, 2017, multiplied by (ii) the greater of (x) 1.75% and (y) 0.4375% plus one-fourth of the Ten Year Treasury Rate for such quarter; multiplied by (B) the weighted average number of common shares outstanding during such quarter; subject to adjustment (a) to exclude events pursuant to changes in GAAP or the application of GAAP as well as non-recurring or unusual transactions or events, after discussion between the Manager and the independent directors and approval by a majority of the independent directors in the case of non-recurring or unusual transactions or events, and (b) to deduct an amount equal to any fees paid directly by a TRS (or any subsidiary thereof) to employees, agents and/or affiliates of the Manager with respect to profits of such TRS (or subsidiary thereof) generated from the services of such employees, agents and/or affiliates, the fee structure of which shall have been approved by a majority of the independent directors and which fees may not exceed 20% of the net income (before such fees) of such TRS (or subsidiary thereof). • Per loan underwriting and review fees in connection with valuations of and potential investments in certain subordinate commercial mortgage pass-through certificates, in amounts approved by a majority of the independent directors. • Reimbursement of out-of-pocket expenses and certain other costs incurred by the Manager that relate directly to the Company and its operations. • Reimbursement of the Manager's expenses for the wages, salaries and benefits of (A) the Company's Chief Financial Officer and accounting, finance, tax and investor relations professionals, and (B) employees of its ancillary operating subsidiaries, in proportion to such personnel's percentage of time dedicated to the Company or its subsidiaries' operations. Incentive compensation is calculated and payable quarterly to the Manager to the extent it is earned. Up to 75% of the incentive compensation is payable in cash and at least 25% is payable in the form of an award of common stock. The Manager may elect to receive more than 25% in incentive compensation in common stock. All shares are fully vested upon issuance, however, the Manager may not sell such shares for one year after the incentive compensation becomes due and payable unless the management agreement is terminated. Shares payable as incentive compensation are valued as follows: • if such shares are traded on a securities exchange, at the average of the closing prices of the shares on such exchange over the 30 -day period ending three days prior to the issuance of such shares; • if such shares are actively traded over-the-counter, at the average of the closing bid or sales price as applicable over the 30 -day period ending three days prior to the issuance of such shares; and • if there is no active market for such shares, at the fair market value as reasonably determined in good faith by the board of directors of the Company. The management agreement's contract term ends on March 31, 2018 and the agreement provides for automatic one year renewals on such date and on each March 31 thereafter until terminated. The Company's board of directors reviews the Manager's performance annually. The management agreement may be terminated annually upon the affirmative vote of at least two-thirds of the Company's independent directors, or by the affirmative vote of the holders of at least a majority of the outstanding shares of its common stock, based upon unsatisfactory performance that is materially detrimental to the Company or a determination by its independent directors that the management fees payable to the Manager are not fair, subject to the Manager's right to prevent such a compensation termination by accepting a mutually acceptable reduction of management fees. The Company's board of directors must provide 180 days ' prior notice of any such termination. If the Company terminates the management agreement, the Manager is entitled to a termination fee equal to four times the sum of the average annual base management fee and the average annual incentive compensation earned by the Manager during the two 12 -month periods immediately preceding the date of termination, calculated as of the end of the most recently completed fiscal quarter before the date of termination. The Company may also terminate the management agreement for cause with 30 days ' prior written notice from its board of directors. No termination fee is payable in the event of a termination for cause. The management agreement defines cause as: • the Manager's continued material breach of any provision of the management agreement following a period of 30 days after written notice thereof; • the Manager's fraud, misappropriation of funds, or embezzlement against the Company; • the Manager's gross negligence in the performance of its duties under the management agreement; • the dissolution, bankruptcy or insolvency, or the filing of a voluntary bankruptcy petition, by the Manager; or • a change of control (as defined in the management agreement) of the Manager if a majority of the Company's independent directors determines, at any point during the 18 months following the change of control, that the change of control was detrimental to the ability of the Manager to perform its duties in substantially the same manner conducted before the change of control. Cause does not include unsatisfactory performance that is materially detrimental to the Company's business. The Manager may terminate the management agreement at its option, (A) in the event that the Company defaults in the performance or observance of any material term, condition or covenant contained in the management agreement and such default continues for a period of 30 days after written notice thereof, or (B) without payment of a termination fee by the Company, if it becomes regulated as an investment company under the Investment Company Act of 1940, with such termination deemed to occur immediately before such event. Relationship with C-III and Certain of its Subsidiaries Relationship with C-III and certain of their Subsidiaries. In September 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. C-III is indirectly controlled and partially owned by Island Capital Group ("Island Capital"), of which Andrew L. Farkas, Chairman of the Company, is the managing member. Mr. Farkas is also chairman and chief executive officer of C-III. In addition, Robert C. Lieber, the Company's Chief Executive Officer, is an executive managing director of both C-III and Island Capital. Matthew J. Stern, the Company's President, is a senior 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 and president of Island Capital. These officers and the Company's other executive officers are also officers of the Company's Manager, Resource America, C-III or affiliates of those companies. At December 31, 2017 , C-III was the beneficial owner of 766,718 , or 2.4% , of the Company's outstanding common shares. The Company has entered into a management agreement under which the Company's Manager receives substantial fees. In May 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 the Company for the waiver which was recorded in other income (expense) on the consolidated statements of operations for the year ended December 31, 2016 . For the years ended December 31, 2017 , 2016 and 2015 , the Manager earned base management fees of $10.8 million , $12.4 million and $12.8 million , respectively. For the year ended December 31, 2017 , the Manager earned incentive management fees of $2.2 million , of which 75% , or $1.6 million was paid in cash and 25% , or approximately $539,000 , was paid in common stock. No incentive management fees were earned for the years ended December 31, 2016 and 2015 . For the years ended December 31, 2017 , 2016 and 2015 , the Company paid the Manager $5.7 million , $5.0 million and $5.5 million , respectively, as expense reimbursements. In November 2010, the Company entered into an Investment Management Agreement with Resource Capital Markets, Inc. ("RCM"), a wholly-owned subsidiary of Resource America. The initial and amended agreements provided that: (a) RCM may invest up to $13.0 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. RCM can earn a management fee of 20% of the amount by which the net profits exceed the preferred return. During the years ended December 31, 2017 , 2016 and 2015 , RCM earned no management fees. The Company also reimburses RCM for expenses paid on the Company's behalf. No expense reimbursements were paid for the year ended December 31, 2017 . For the years ended December 31, 2016 and 2015 , the Company paid RCM $10,000 and $128,000 , respectively, as expense reimbursements. At December 31, 2017 , the Company was indebted to the Manager for $1.0 million , comprised of base management fees of $1.0 million and expense reimbursements of $3,000 . The Company was also indebted to the Manager for oversight fees of $63,000 and $138,000 at December 31, 2017 and 2016 , respectively, which were recorded in liabilities held for sale. 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 December 31, 2017 , the Company was indebted to RCM under the Company's Investment Management Agreement for $124,000 , 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. In November 2013, the Company, through a wholly-owned subsidiary, purchased all of the membership interests in Elevation Home Loans, LLC, a start-up residential mortgage company, from an individual 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. At December 31, 2017 , the Company retained equity in six securitizations, which were structured for the Company by the Manager, although three of the securitizations were substantially liquidated as of December 31, 2017 . Under the Management Agreement, the Manager was not separately compensated by the Company for executing these transactions and is not separately compensated for managing the securitizations entities and their assets. Relationship with LCC. LCC, a former subsidiary of Resource America in which the Company owned a noncontrolling interest, originated and managed equipment leases and notes on behalf of the Company. In November 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 in LCC was accounted for under the equity method and recorded in equity in earnings of unconsolidated subsidiaries on the consolidated statements of operations. For the years ended December 31, 2017 , 2016 and 2015 , the Company recorded equity in earnings of $41.5 million , $943,000 and $2.6 million , respectively, on its investment in LCC. In July 2017, the Company sold its investment in LCC and received cash proceeds of $84.3 million . The Company had no investment in LCC at December 31, 2017 and a total investment of $43.0 million at December 31, 2016 . Relationship with CVC Credit Partners. In April 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 C-III owned a 24% interest through August 2017. CVC Credit Partners manages internally and externally originated syndicated corporate loans on the Company's behalf. In February 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 years ended December 31, 2017 , 2016 and 2015 , CVC Credit Partners earned subordinated and incentive fees of $1.4 million , $1.8 million and $1.4 million , respectively. 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 five CLOs were liquidated in February 2013, January 2016, September 2016 and February 2017, respectively. The Company had no intangible assets recorded at December 31, 2017 . The intangible asset balance was $213,000 at December 31, 2016 . For the years ended December 31, 2017 , 2016 and 2015 , the Company recorded impairments of $177,000 , $3.7 million and $2.4 million , respectively, on the related intangible asset of these CLOs. C-III sold its interest in CVC Credit Partners in August 2017, and, as a result, CVC Credit Partners is no longer considered a related party of the Company. Relationship with LTCC Funding. The Company reimburses Resource America for additional costs incurred related to the Company's life care business, LTCC 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 and matured in December 2017 for a reduced annual reimbursement of $250,000 . This fee was paid quarterly. Relationship with Resource Real Estate, Inc. Resource Real Estate, an indirect wholly-owned subsidiary of C-III, 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 December 31, 2017 and 2016 , the Company was indebted to Resource Real Estate for $502,000 and $899,000 , respectively, for expense reimbursements and had receivables from Resource Real Estate of $185,000 and $50,000 , respectively, for loan deposits, which was recorded in accounts payable and other liabilities on the consolidated balance sheets. In December 2009, the Company purchased a membership interest in RRE VIP Borrower, 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 the 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 years ended December 31, 2017 and 2016 , as the last property associated with the joint venture was sold in 2014. For the years ended December 31, 2017 , 2016 and 2015 , the Company recorded income of $45,000 , $58,000 and $325,000 , respectively, which was recorded in equity in earnings of unconsolidated entities on the consolidated statements of operations. The income recorded was related to insurance premium and property tax refunds from the underlying sold properties formerly in the portfolio. The Company has executed the following five 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 and liquidated in December 2016; (ii) RCC 2014-CRE2, a $353.9 million securitization that closed in July 2014 and liquidated in August 2017; (iii) RCC 2015-CRE3, a $346.2 million securitization that closed in February 2015; (iv) RCC 2015-CRE4, a $312.9 million securitization that closed in August 2015 and (v) RCC 2017-CRE5, a $376.7 million securitization that closed in July 2017. 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 specially serviced mortgage loan. The servicing fee is payable monthly, on an asset-by-asset basis. C-III Asset Management serves as the servicer for RCC 2017-CRE5 and receives an amount equal to the product of (a) the servicing fee rate, 0.05% per annum, multiplied by (b) the outstanding principal balance of each mortgage loan. The servicing fee is payable monthly, on an asset-by-asset basis. During the year ended December 31, 2017 , C-III Asset Management earned approximately $96,000 . The Company was indebted to C-III Asset Management for approximately $14,000 at December 31, 2017 . 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 the notes of the Company's real estate securitizations to third parties. The Company paid Resource Securities placement agent fees in connection with each CRE securitization transaction as follows: $205,000 , $175,000 , $100,000 and $85,000 , respectively. These fees are included in the deferred debt issuance costs and are amortized over the life of the securitizations. No placement agency fees were paid to Resource Securities in connection with the RCC 2017-CRE5 transaction. In October 2017, the Company acquired the BB-rated, B-rated and non-rated bonds of a securitization sponsored by Wells Fargo. C-III Asset Management serves as the special servicer for the securitization, and C-III Commercial Mortgage LLC contributed loans amounting to 10.2% of the total collateral pool value to the securitization. No special servicing fees were paid to C-III Asset Management during the year ended December 31, 2017 . 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 was presented as non-controlling interest for the year ended December 31, 2015 and 2014 in the Company's consolidated financial statements. All intercompany accounts and transactions were eliminated in consolidation. On January 1, 2016, the Company adopted new consolidation guidance on VIEs 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 sheets (see Note 2). In March and June 2015, the Company requested and received an in-kind distribution in certain securities held by RCM Global resulting in a reduction in its ownership interest. The distribution of and subsequent sale of those securities by the Company through its subsidiary, RCC Residential, resulted in the realization of $5.0 million of net gain for the year ended December 31, 2015 . During the year ended December 31, 2016 , RCC Residential received a cash distribution in the amount of $753,000 . The Company's ownership interest in RCM Global was 63.2% at December 31, 2017 and the remainder was owned by subsidiaries of Resource America. For the years ended December 31, 2017 and 2016 , the Company recorded a loss of $274,000 and income of $14,000 , respectively, which were recorded in equity in earnings of unconsolidated entities on the consolidated statements of operations. The Company had no carrying value on this investment at December 31, 2017 due to accumulated other comprehensive losses in excess of the investment's cost basis at December 31, 2017 . 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 an indirect wholly-owned subsidiary of C-III. The Company funded its final commitment of $2.5 million as of February 2015. The Company will receive 10.0% of the carried interest in the partnership. Resource America contributed securities valued at $2.8 million upon the formation of Pelium Capital. On January 1, 2016, the Company adopted new consolidation guidance on VIEs 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 years ended December 31, 2017 and 2016 , the Company recorded a loss of $1.9 million and earnings of $4.0 million , respectively, 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 $10.5 million and $26.0 million at December 31, 2017 and December 31, 2016 , respectively. The Company held an 80.2% interest in Pelium Capital at December 31, 2017 . In June 2015, the Company committed to invest up to $50.0 million in Pearlmark Mezz, a Delaware limited partnership. The investment adviser of Pearlmark 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 in June 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 the Manager. In May 2017, the Company sold its equity interest and was relieved of its investment commitment in Pearlmark Mezz for proceeds of $16.2 million , which was recorded in equity in (losses) earnings of unconsolidated entities on the statement of operations. |
DISTRIBUTIONS
DISTRIBUTIONS | 12 Months Ended |
Dec. 31, 2017 | |
DISTRIBUTIONS [Abstract] | |
DISTRIBUTIONS | NOTE 17 - DISTRIBUTIONS For the years ended December 31, 2017 , 2016 and 2015 , the Company declared and subsequently paid dividends of $0.20 , $1.31 and $2.34 per common share, respectively. In order to qualify as a REIT, the Company must currently distribute at least 90% of its taxable income. In addition, the Company must distribute 100% of its taxable income in order to not 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 funds to make sufficient distribution payments. The Company's 2018 dividends will be determined by the Company's board of directors, which will also consider the composition of any dividends declared, including the option of paying a portion in cash and the balance in additional common shares. The following tables present dividends declared (on a per share basis) for the years ended December 31, 2017 , 2016 and 2015 : Common Stock Date Paid Total Dividend (in thousands) 2017 March 31 April 27 $ 1,568 $ 0.05 June 30 July 28 $ 1,567 $ 0.05 September 30 October 27 $ 1,566 $ 0.05 December 31 January 26, 2018 $ 1,572 $ 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 2015 March 31 April 28 $ 21,444 $ 0.64 June 30 July 28 $ 21,426 $ 0.64 September 30 October 28 $ 20,667 $ 0.64 December 31 January 28, 2016 $ 13,274 $ 0.42 Series A Preferred Stock Series B Preferred Stock Series C Preferred Stock 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 June 30 July 31 $ 568 $ 0.531250 July 31 $ 2,859 $ 0.515625 July 31 $ 2,588 $ 0.539063 September 30 October 30 $ 568 $ 0.531250 October 30 $ 2,859 $ 0.515625 October 30 $ 2,588 $ 0.539063 December 31 January 30, 2018 $ 568 $ 0.531250 January 30, 2018 $ 2,859 $ 0.515625 January 30, 2018 $ 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 2015 March 31 April 30 $ 568 $ 0.531250 April 30 $ 2,960 $ 0.515625 April 30 $ 2,588 $ 0.539063 June 30 July 30 $ 568 $ 0.531250 July 30 $ 2,960 $ 0.515625 July 30 $ 2,588 $ 0.539063 September 30 October 30 $ 568 $ 0.531250 October 30 $ 2,960 $ 0.515625 October 30 $ 2,588 $ 0.539063 December 31 February 1, 2016 $ 568 $ 0.531250 February 1, 2016 $ 2,960 $ 0.515625 February 1, 2016 $ 2,588 $ 0.539063 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 18 - FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents the Company's financial instruments carried at fair value on a recurring basis based upon the fair value hierarchy (in thousands): Level 1 Level 2 Level 3 Total At December 31, 2017: Assets: Investment securities available-for-sale $ — $ — $ 211,737 $ 211,737 Investment securities, trading — — 178 178 Loans held for sale — — 13 13 Derivatives — 602 — 602 Total assets at fair value $ — $ 602 $ 211,928 $ 212,530 Liabilities: Derivatives $ — $ 76 $ — $ 76 Total liabilities at fair value $ — $ 76 $ — $ 76 At December 31, 2016: Assets: Investment securities available-for-sale $ — $ — $ 124,968 $ 124,968 Investment securities, trading — 369 4,123 4,492 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 available-for-sale, investment securities, trading, loans held for sale and derivatives from third-party pricing sources. The following table presents additional information about the Company's assets that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs (in thousands): CMBS RMBS ABS Structured Notes Loans Held for Sale Total Balance, January 1, 2017 $ 98,087 $ 1,601 $ 25,280 $ 4,123 $ 220 $ 129,311 Included in earnings (1) 562 (158 ) 3,532 170 112 4,218 Purchases/originations 171,929 — — — — 171,929 Sales (6,390 ) (1,111 ) (23,168 ) — — (30,669 ) Paydowns (53,819 ) (256 ) (2,833 ) (4,115 ) (319 ) (61,342 ) Capitalized interest — — 1,362 — — 1,362 Included in OCI 1,210 (76 ) (4,015 ) — — (2,881 ) Balance, December 31, 2017 $ 211,579 $ — $ 158 $ 178 $ 13 $ 211,928 (1) For structured notes classified as Level 3 at December 31, 2017 , the Company recorded changes in unrealized losses of $ 963,000 for the year ended December 31, 2017 , in net realized and unrealized (loss) gain on investment securities, trading on the consolidated statements of operations. For loans held for sale classified as Level 3 at December 31, 2017 , the Company recorded changes in unrealized gains of $111,000 for the year ended December 31, 2017 , in fair value adjustments on assets held for sale on the consolidated statements of operations. The following table summarizes the Company's financial instruments measured at fair value on a nonrecurring basis based upon the fair value hierarchy (in thousands): Level 1 Level 2 Level 3 Total At December 31, 2017: Assets : Legacy CRE whole loans held for sale $ — $ — $ 22,500 $ 22,500 Impaired loans — — 4,500 4,500 Total assets at fair value $ — $ — $ 27,000 $ 27,000 Liabilities: Pearlmark Mezz indemnification $ — $ — $ 703 $ 703 Total liabilities at fair value $ — $ — $ 703 $ 703 At December 31, 2016: Assets : Legacy CRE whole loans held for sale $ — $ — $ 158,178 $ 158,178 Impaired loans — — 4,500 4,500 Total assets at fair value $ — $ — $ 162,678 $ 162,678 Legacy CRE whole loans held for sale consist of loans that have been reclassified as assets held for sale as part of the Company's Plan and remeasured at fair value at December 31, 2017 and 2016 . To determine fair value of the Legacy CRE whole loans, the Company primarily uses appraisals obtained from third-parties as a practical expedient. The Company may also use the present value of estimated cash flows, market price, if available, or other determinants of the fair value of the collateral less estimated disposition costs. These loans are classified as Level 3. During the year ended December 31, 2017 , a loss of $1.9 million was recorded on one Legacy CRE whole loan to adjust the loan to its adjusted appraised value. There were no nonrecurring fair value losses for loans held for sale for the year ended December 31, 2016 . There was $1.3 million of nonrecurring fair value losses for loans held for sale for the year ended December 31, 2015 . The overall capitalization rate used in the updated analysis was 8.00% at December 31, 2017 . Appraisals were received for all Legacy CRE whole loans identified at December 31, 2016 , with capitalization rates and discount rates ranging from 5.25% to 9.00% and 7.00% to 11.00% , respectively. Impaired loans consist of CRE loans for which an impairment analysis was conducted on a quarterly basis. For the Company's CRE loans for which there is no primary market, fair value may be determined based on the present value of estimated cash flows; or market price, if available; or on the fair value of the collateral less estimated disposition costs; and these loans are classified as Level 3. The capitalization rate used in the appraisal of the underlying asset of the impaired loan was 9.00% at December 31, 2017 and 2016 . The discount rate used in the appraisal of the underlying asset of the impaired loan was 11.00% at December 31, 2017 and 2016 . There were no nonrecurring fair value losses for specifically impaired loans for the year ended December 31, 2017 . For the years ended December 31, 2016 and 2015 , there were $18.3 million and $39.2 million of nonrecurring fair value losses for specifically impaired loans, respectively. The Company's Pearlmark Mezz indemnification, classified as Level 3, was valued by a third-party valuation service. 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, interest receivable, principal paydowns receivable, accrued interest expense and distributions payable approximate their carrying value on the consolidated balance sheets. The fair values of the Company's investment securities, trading are reported in Note 8 . The fair values of the Company's investment securities available-for-sale are reported in Note 9 . The fair values of the Company's loans held for sale are reported in Note 6 . The fair values of the Company's derivative instruments are reported in Note 19 . The fair values of the Company's 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. The Company's CRE loans have variable interest rates from 5.06% to 7.63% and 4.63% to 7.08% at December 31, 2017 and 2016 , respectively. The overall capitalization rates rates used in the analysis of the valuations of the Legacy CRE whole loans presented as assets held for sale ranged from 6.38% to 8.00% at December 31, 2017 . Senior notes in CRE securitizations are valued using dealer quotes, typically sourced from the dealer who underwrote the applicable CRE securitization. The fair values of the junior subordinated notes RCT I and RCT II are estimated by using a discounted cash flow model with discount rates of 11.33% and 11.34% , respectively. The fair value of the convertible notes is 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 6.00% Convertible Senior Notes are discounted at a rate of 4.54% , the 8.00% Convertible Senior Notes are discounted at a rate of 4.92% and the 4.50% Convertible Senior Notes are discounted at a rate of 7.17% . Repurchase agreements are variable rate debt instruments indexed to LIBOR that reset periodically and, as a result, their carrying value approximates their fair value, excluding deferred debt issuance costs. 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 Value Fair Value Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At December 31, 2017: Assets: Loans held for investment $ 1,284,822 $ 1,294,664 $ — $ — $ 1,294,664 Legacy CRE whole loans held for sale $ 61,841 $ 62,841 $ — $ — $ 62,841 Liabilities: Senior notes in CRE Securitizations $ 416,655 $ 420,084 $ — $ — $ 420,084 Junior subordinated notes $ 51,548 $ 26,574 $ — $ — $ 26,574 Convertible senior notes $ 217,365 $ 235,385 $ — $ — $ 235,385 Repurchase agreements $ 477,917 $ 479,383 $ — $ — $ 479,383 At December 31, 2016: Assets: Loans held for investment $ 1,286,278 $ 1,292,099 $ — $ — $ 1,292,099 Liabilities: Senior notes in CRE Securitizations $ 480,101 $ 486,524 $ — $ — $ 486,524 Junior subordinated notes $ 51,548 $ 27,246 $ — $ — $ 27,246 Convertible senior 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 | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
MARKET RISK AND DERIVATIVE INSTRUMENTS | NOTE 19 - MARKET RISK AND DERIVATIVE INSTRUMENTS The Company is affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company's financial performance and are referred to as "market risks." When deemed appropriate, the Company uses derivatives as a risk management tool to mitigate the potential impact of certain market risks. The primary market risks managed by the Company through the use of derivative instruments are interest rate risk and foreign currency exchange rate risk. The Company may hold various derivatives in the ordinary course of business, including: interest rate swaps, forward contracts and options. Interest rate swaps 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. Options are contracts sold by one party to another that give the buyer the right, but not the obligation, to buy a financial asset at an agreed-upon price during a certain period of time or on a specific date. 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. 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 (loss) of adverse fluctuations in interest rates incurred on its borrowings by entering into hedging agreements. The Company classifies its interest rate risk 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 accumulated other comprehensive income, and records changes in fair value of derivatives designated and ineffective as cash flow hedges in earnings. At December 31, 2017 , the Company had seven interest rate swap contracts outstanding whereby the Company paid a weighted average fixed rate of 2.08% and received a variable rate equal to one-month LIBOR. The aggregate notional amount of these contracts was $41.8 million at December 31, 2017 . The counterparty for the Company's designated interest rate hedge contracts at December 31, 2017 was Wells Fargo. The estimated fair value of the Company's assets related to interest rate swaps was $602,000 at December 31, 2017 . The Company had aggregate unrealized gains of $602,000 on the interest rate swaps at December 31, 2017 , which are recorded in accumulated other comprehensive income on the consolidated balance sheets. At December 31, 2016 , the Company had no interest rate swap contracts outstanding. At December 31, 2016 , the Company had an aggregate unrealized loss of $18,000 , recorded in accumulated other comprehensive income on the consolidated balance sheets, remaining on an interest rate swap contract that was terminated at the Company's request in April 2016. The aggregate unrealized loss is amortized as interest expense in the Company's consolidated statements of operations over the remaining life of the swap term. The Company incurred interest expense of $18,000 and $54,000 for the years ended December 31, 2017 and December 31, 2016 , respectively, to fully amortize the accumulated other comprehensive (loss) on the terminated swap agreement. During the years ended December 31, 2006, 2007 and 2008, the Company terminated 18 interest rate swaps. During the years ended December 31, 2016 and 2015 , the Company recognized expense of $39,000 and $275,000 , respectively, into earnings related to the amortization of gains and losses on the 18 terminated hedges. These hedges were fully amortized at December 31, 2016 . The Company had a master netting agreement with Wells Fargo at December 31, 2017 . Regulations promulgated under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 mandate that the Company clear certain new interest rate swap transactions through a central counterparty. Transactions that are centrally cleared result in the Company facing a clearing house, rather than a swap dealer, as counterparty. Central clearing requires the Company to post collateral in the form of initial and variation margin to satisfy potential future obligations. At December 31, 2017 , the Company had centrally cleared interest rate swap contracts with a fair value in an asset position of $602,000 . At December 31, 2016 , there were no centrally cleared interest rate swap contracts. 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. However, substantially all of the Company's revenues are transacted in U.S. dollars. To address this market risk, the Company generally hedges foreign currency-denominated exposures (typically investments in debt instruments, including forecasted principal and interest payments) with foreign currency forward contracts. The Company classifies these hedges as fair value hedges, which are hedges that mitigate the risk of changes in the fair values of assets, liabilities and certain types of firm commitments. The Company records changes in fair value of derivatives designated and effective as fair value hedges in earnings offset by corresponding changes in the fair values of the hedged items. Forward contracts also contain an element of risk in that the counterparties may be unable to meet the terms of such agreements. In the event the parties to deliver commitments are unable to fulfill their obligations, the Company could potentially incur significant additional costs by replacing the positions at then current market rates. The Company manages its risk of exposure by limiting counterparties to those banks and institutions deemed appropriate by management. The Company does not expect any counterparty to default on its obligations and, therefore, the Company does not expect to incur any cost related to counterparty default. The following tables present the fair value of the Company's derivative financial instruments as well as their classification on the Company's consolidated balance sheets and on the consolidated statements of operations for the years presented: Fair Value of Derivative Instruments at December 31, 2017 (in thousands) Asset Derivatives Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging (1) $ 41,750 Derivatives, at fair value $ 602 Liability Derivatives Notional Amount Consolidated Balance Sheets Location Fair Value Forward contracts - foreign currency, hedging (2)(3) $ 3,602 Derivatives, at fair value $ 76 Interest rate swap contracts, hedging $ 41,750 Accumulated other comprehensive income $ 602 (1) Interest rate swap contracts are accounted for as cash flow hedges. (2) Foreign currency forward contracts are accounted for as fair value hedges. (3) Notional amount presented is translated on a currency converted basis. The base currency notional amount of the Company's foreign currency hedging forward contracts in a liability position was €3.0 million at December 31, 2017 . Fair Value of Derivative Instruments at December 31, 2016 (in thousands) Asset Derivatives Notional Amount Consolidated Balance Sheets Location Fair Value Forward contracts - foreign currency, hedging (1)(2) $ 12,489 Derivatives, at fair value $ 647 Liability Derivatives Notional Amount Consolidated Balance Sheets Location Fair Value Forward contracts - foreign currency, hedging (1)(2) $ 11,700 Derivatives, at fair value $ 97 Interest rate swap contracts, hedging $ — Accumulated other comprehensive income $ (18 ) (1) Foreign currency forward contracts are accounted for as fair value hedges. (2) Notional amount presented is translated on a 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 . 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 Year Ended December 31, 2017 (in thousands) Derivatives Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (130 ) Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on investment securities available-for-sale and loans and derivatives $ (1,896 ) (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 Year Ended December 31, 2016 (in thousands) Derivatives Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (119 ) Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on investment securities available-for-sale and loans and derivatives $ 764 (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 Year Ended December 31, 2015 (in thousands) Derivatives Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (6,098 ) Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on investment securities available-for-sale and loans and derivatives $ 2,925 Options - U.S. Treasury futures Net realized and unrealized gain (loss) on investment securities available-for-sale and loans and derivatives $ 184 (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 | 12 Months Ended |
Dec. 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 (in thousands): (i) (ii) (iii) = (i) - (ii) (iv) Financial Instruments Cash Collateral Pledged (v) = (iii) - (iv) At December 31, 2017: Derivatives, at fair value (1) $ 602 $ — $ 602 $ — $ — $ 602 At December 31, 2016: Derivatives, at fair value $ 647 $ — $ 647 $ — $ — $ 647 (1) The Company posted cash margin of $1.9 million related to interest rate swap contracts entered into at December 31, 2017 . The following table presents a summary of the Company's offsetting of financial liabilities and derivative liabilities (in thousands): (i) (ii) (iii) = (i) - (ii) (iv) (v) = (iii) - (iv) Financial (1) Cash Collateral Pledged At December 31, 2017: Derivatives, at fair value $ 76 $ — $ 76 $ — $ — $ 76 Repurchase agreements and term facilities (2) 477,917 — 477,917 477,917 — — Total $ 477,993 $ — $ 477,993 $ 477,917 $ — $ 76 At December 31, 2016: Derivatives, at fair value $ 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 financial instruments pledged that are 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 repurchase agreements and term facilities was $816.1 million and $724.8 million at December 31, 2017 and 2016 , respectively. All balances associated with repurchase agreements and derivatives are presented on a gross basis on the Company's consolidated balance sheets. Certain of the Company's repurchase agreements and derivative transactions are governed by underlying agreements that generally provide for a right of offset in the event of default or in the event of a bankruptcy of either party to the transaction. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 21 - INCOME TAXES The following table details the components of income taxes (in thousands): Years Ended December 31, 2017 2016 2015 Income tax expense (benefit): Current: Federal $ 994 $ 1,733 $ 1,705 State 856 966 430 Total current 1,850 2,699 2,135 Deferred: Federal 3,475 6,707 (423 ) State 1,288 1,586 (358 ) Total deferred 4,763 8,293 (781 ) Income tax expense (benefit) $ 6,613 $ 10,992 $ 1,354 A reconciliation of the income tax expense (benefit) based upon the statutory tax rate to the effective income tax rate is as follows for the periods presented (in thousands): Years Ended December 31, 2017 2016 2015 Income tax expense (benefit) Statutory tax $ 9,301 $ (1,103 ) $ 945 State and local taxes, net of federal benefit 1,415 1,005 (271 ) Permanent adjustments 37 — 149 True-up of prior period tax expense (2,010 ) (256 ) 530 Valuation allowance (2,203 ) 11,294 — Tax reform 4,918 — — Tax reform - valuation allowance (4,918 ) — — Other items 73 52 1 Income tax expense (benefit) $ 6,613 $ 10,992 $ 1,354 The components of deferred tax assets and liabilities are as follows (in thousands): December 31, 2017 2016 Deferred tax assets related to: Federal, state and local loss carryforwards $ 2,261 $ 7,933 Reserve on MSR valuation — 237 Accrued expenses 393 118 Amortization of intangibles 416 — Unrealized gains (losses) 1,702 1,673 CLCO carryforwards — 5,680 Partnership investment 5,301 2,902 Total deferred tax assets 10,073 18,543 Valuation allowance (9,927 ) (11,294 ) Total deferred tax assets, net of valuation allowance $ 146 $ 7,249 Deferred tax liabilities related to: Amortization of intangibles $ — $ (1,589 ) Investment in securities (89 ) (1,320 ) Depreciation (57 ) (85 ) Total deferred tax liabilities $ (146 ) $ (2,994 ) Deferred tax assets, net $ — $ 4,255 At December 31, 2017 , excluding discontinued operations, the Company had $4.8 million of gross federal and $1.6 million of gross state and local net operating tax loss carryforwards, or $6.4 million (deferred tax asset of $2.3 million ) in total. Due to changes in management's focus regarding the non-core asset classes, the Company determined that it no longer expected to have sufficient forecasted taxable income to completely realize the tax benefits of the deferred tax assets at December 31, 2017 . Therefore, a gross valuation allowance of $37.0 million (tax effected expense of $9.9 million ) has been recorded against the deferred tax asset at December 31, 2017 . Management will continue to assess its estimate of the amount of deferred tax assets that the Company will be able to utilize. The Company is subject to examination by the Internal Revenue Service ("IRS") for calendar years including and subsequent to 2015, and is subject to examination by state and local jurisdictions for calendar years including and subsequent to 2013. The IRS audit of RCC Residential, Inc., for the tax year 2014, was finalized in October 2017 with no adjustments. |
QUARTERLY RESULTS
QUARTERLY RESULTS | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY RESULTS | NOTE 22 - QUARTERLY RESULTS The following is a presentation of the quarterly results of operations: March 31 June 30 September 30 December 31 (unaudited) (unaudited) (unaudited) (unaudited) (in thousands, except per share data) Year Ended December 31, 2017: Interest income (1) $ 25,471 $ 23,635 $ 23,983 $ 26,229 Interest expense (1) 14,254 14,347 13,853 15,203 Net interest income $ 11,217 $ 9,288 $ 10,130 $ 11,026 Net income from continuing operations $ 9,174 $ 12,568 $ 24,745 $ 970 Net loss from discontinued operations (561 ) (4,184 ) (6,087 ) (3,284 ) Net income (loss) 8,613 8,384 18,658 (2,314 ) Net income allocated to preferred shares (6,014 ) (6,015 ) (6,014 ) (6,014 ) Carrying value less than consideration paid for preferred shares — — — (3,803 ) Net loss allocable to non-controlling interest, net of taxes 101 95 — — Net income (loss) allocable to common shares $ 2,700 $ 2,464 $ 12,644 $ (12,131 ) Net income (loss) per common share from continuing operations - basic $ 0.11 $ 0.22 $ 0.61 $ (0.28 ) Net loss per common share from discontinued operations - basic (0.02 ) (0.14 ) (0.20 ) (0.11 ) Total net income (loss) per common share - basic $ 0.09 $ 0.08 $ 0.41 $ (0.39 ) Net income (loss) per common share from continuing operations - diluted $ 0.11 $ 0.22 $ 0.61 $ (0.28 ) Net loss per common share from discontinued operations - diluted (0.02 ) (0.14 ) (0.20 ) (0.11 ) Total net income (loss) per common share - diluted $ 0.09 $ 0.08 $ 0.41 $ (0.39 ) March 31 June 30 September 30 December 31 (unaudited) (unaudited) (unaudited) (unaudited) (in thousands, except per share data) Year Ended December 31, 2016: Interest income (1) $ 27,016 $ 28,408 $ 27,107 $ 30,087 Interest expense (1) 13,302 13,446 13,653 13,346 Net interest income $ 13,714 $ 14,962 $ 13,454 $ 16,741 Net income (loss) from continuing operations $ 8,852 $ 10,908 $ (34,300 ) $ 3,206 Net income (loss) from discontinued operations 5,168 (6,379 ) (11,321 ) (6,728 ) Net income (loss) 14,020 4,529 (45,621 ) (3,522 ) Net income allocated to preferred shares (6,048 ) (6,014 ) (6,015 ) (6,014 ) Carrying value in excess of consideration paid for preferred shares 1,611 (111 ) — — Net loss allocable to non-controlling interest, net of taxes 90 60 63 16 Net income (loss) allocable to common shares $ 9,673 $ (1,536 ) $ (51,573 ) $ (9,520 ) Net income (loss) per common share from continuing operations - basic $ 0.15 $ 0.16 $ (1.32 ) $ (0.09 ) Net income (loss) per common share from discontinued operations - basic 0.17 (0.21 ) (0.37 ) (0.22 ) Total net income (loss) per common share - basic $ 0.32 $ (0.05 ) $ (1.69 ) $ (0.31 ) Net income (loss) per common share from continuing operations - diluted $ 0.15 $ 0.16 $ (1.32 ) $ (0.09 ) Net income (loss) per common share from discontinued operations - diluted 0.17 (0.21 ) (0.37 ) (0.22 ) Total net income (loss) per common share - diluted $ 0.32 $ (0.05 ) $ (1.69 ) $ (0.31 ) (1) Certain reclassifications have been made to the 2017 and 2016 consolidated financial statements, including the impact of discontinued operations. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 23 - COMMITMENTS AND CONTINGENCIES The Company may become involved in litigation on various matters due to the nature of the Company's business activities, which it considers 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. In addition, the Company may enter into settlements on certain matters in order to avoid the additional costs of engaging in litigation. Except as discussed below, the Company is unaware of any contingencies arising from such routine litigation that would require accrual or disclosure in the consolidated financial statements at December 31, 2017 . Open Litigation Matters Six separate shareholder derivative suits (the "New York State Actions") purporting to assert claims on behalf of the Company were filed in the Supreme Court of New York on the following dates: December 2015 (the "Reaves Complaint"), February 2017 (the "Caito Complaint"), March 2017 (the "Simpson Complaint"), March 2017 (the "Heckel Complaint"), May 2017 (the "Schwartz Complaint") and August 2017 (the "Greff Complaint"). Plaintiffs in the Schwartz and Greff actions made demands on the board of directors before filing suit, but plaintiffs in the Reaves, Caito, Simpson and Heckel actions did not. All of the shareholder derivative suits are substantially similar and allege that certain of the Company's current and former officers and directors breached their fiduciary duties, wasted corporate assets, and/or were unjustly enriched. Certain complaints assert additional claims against the Manager and Resource America for unjust enrichment based on allegations that the Manager received excessive management fees from the Company. In June 2017, the Court stayed the Reaves, Caito, Simpson and Heckel Complaints (collectively, the "New York State Demand Futile Actions") in favor of the federal shareholder derivative litigation described below. The Company's time to respond to the Schwartz and Greff complaints is presently stayed by stipulation of the parties. The Company believes that the plaintiffs in each of the New York State Actions lack standing to assert claims derivatively on its behalf and it intends to seek the dismissal of any New York State Action as to which the stay is lifted. Four separate shareholder derivative suits purporting to assert claims on behalf of the Company were filed in the United States District Court for the Southern District of New York on the following dates by shareholders who declined to make a demand on the board prior to filing suit: January 2017 (the "Greenberg Complaint"), January 2017 (the "Canoles Complaint"), January 2017 (the "DeCaro Complaint") and April 2017 (the "Gehan Complaint"). In May 2017, the Court consolidated the Greenberg, Canoles, DeCaro and Gehan Complaints as the "Federal Demand Futile Actions," and in July 2017, appointed lead counsel and directed that a consolidated complaint be filed. Following consolidation, the Canoles and Gehan plaintiffs voluntarily dismissed their suits. The consolidated complaint in the Federal Demand Futile Actions, filed in August 2017, alleges claims for breach of fiduciary duty, corporate waste, unjust enrichment, and violations of Section 14(a) of the Securities Exchange Act. The Company believes that the plaintiffs in the Federal Demand Futile Actions lack standing to assert claims derivatively on its behalf, and it has moved to dismiss the consolidated complaint on that basis. Three additional shareholder derivative suits purporting to assert claims on behalf of the Company were filed in the United States District Court for the Southern District of New York on the following dates by shareholders who served demands on the board to bring litigation and allege that their demands were wrongfully refused: February 2017 (the "McKinney Complaint"), March 2017 (the "Sherek/Speigel Complaint") and April 2017 (the "Sebenoler Complaint"). In May 2017, the Court consolidated the McKinney Complaint, Sherek/Speigel Complaint and Sebenoler Complaint as the "Federal Demand Refused Actions." A consolidated complaint was filed on June 30, 2017, alleging claims for breach of fiduciary duty, unjust enrichment, and violations of Section 14(a) of the Securities Exchange Act. The consolidated complaint was dismissed in February 2018 but is subject to appeal. In August 2017, Robert Canoles filed a shareholder derivative suit in Maryland Circuit Court against certain of the Company's current and former officers and directors, as well as the Manager and Resource America (the "Canoles Complaint"). Mr. Canoles had previously filed his suit in the United States District Court for the Southern District of New York, but voluntarily dismissed that action after the Court declined to appoint his counsel as lead counsel in the Federal Demand Futile Actions. The Canoles Complaint, as amended in October 2017, asserts a variety of claims, including claims for breach of fiduciary duty, unjust enrichment, and corporate waste, that are based on allegations substantially similar to those at issue in the Federal Demand Futile Actions. The Canoles Complaint was stayed by the Maryland Circuit Court in favor of the federal shareholder litigation described above. The Company believes that Canoles lacks standing to assert claims derivatively on its behalf and intends to seek the dismissal of the Canoles Complaint on that basis if the stay is lifted. In September 2017, Michael Hafkey filed a shareholder derivative suit in the United States District Court for the District of Maryland against certain of the Company's former officers and directors and the Manager. The complaint asserts a breach of fiduciary duty claim that is substantially similar to the claims at issue in the Federal Demand Refused Actions. Mr. Hafkey previously made a demand on the board of directors to investigate this claim, which was ultimately denied. The Company believes that Hafkey's claim that his demand to bring litigation was wrongfully refused is without merit and that Hafkey consequently lacks standing to assert claims derivatively on the Company's behalf. The Company filed a motion to stay the Hafkey action in favor of the duplicative Federal Demand Futile Actions, which is pending. The Company has recorded a $2.2 million litigation reserve for amounts, including estimated legal costs, in excess of its insurance coverage at December 31, 2017 , which is included in accounts payable and other liabilities on the consolidated balance sheets. At December 31, 2016 , there was no litigation reserve. PCM is subject to litigation related to claims for repurchases or indemnifications on loans that PCM has sold to third parties. At December 31, 2017 and 2016 , such litigation demands totaled approximately $6.5 million and $15.9 million , respectively. Such litigation demands are included in the reserve for mortgage repurchases and indemnifications that totaled $5.7 million and $4.8 million at December 31, 2017 and 2016 , respectively. The reserve for mortgage repurchases and indemnifications is included in liabilities held for sale on the consolidated balance sheets. Settled Litigation Matters, Including Pending Settlements A subsidiary of the Company was the subject of a lawsuit brought in 2014 by the purchaser of a hotel from such subsidiary. The complaint asserted breach of contract claims for non-payment of certain fees and expenses. This matter was settled on December 20, 2017. PCM was the subject of a lawsuit brought by a purchaser of residential mortgage loans alleging breaches of representations and warranties made on loans sold to the purchaser. The asserted repurchase claims related to loans sold to the purchaser that were subsequently sold by the purchaser to either the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation and loans sold to the purchaser that were subsequently securitized and sold as RMBS by the purchaser to RMBS investors. This matter was settled on January 8, 2018. On November 22, 2017, the Plaintiff's motion for class certification was granted in Levin v. Resource Capital Corp. (the "Levin Action"), a previously disclosed securities litigation against the Company and certain of its current and former officers that is pending in the United States District Court for the Southern District of New York. On February 5, 2018, the Company entered into a stipulation and agreement of settlement (the "Settlement") that is intended to settle all claims asserted in the action on behalf of the certified class, which consists, with specified exceptions, of all persons who purchased the Company's common stock, Series B Preferred Stock, or Series C Preferred Stock between October 31, 2012 and August 5, 2015. Under the terms of the proposed Settlement, which has been filed publicly with the Court, a payment of $9.5 million will be made to settle the litigation. The settlement payment will be funded principally by insurance coverage, and the Company does not anticipate that the Settlement will have a material adverse impact on its financial condition. In exchange for the settlement consideration, the Company and the individual defendants in the Levin Action (and certain related parties) will be released from all claims that have been or could have been asserted in the case by class members (and certain related parties), excluding persons who opt out of the Settlement, as further described in the stipulation and agreement of settlement filed with the Court. The proposed Settlement contains no admission of misconduct by the Company or any of the individual defendants and expressly acknowledges that the Company and the individual defendants deny all allegations of wrongdoing and maintain that it and they have at all times acted in good faith and in compliance with the law. The proposed Settlement is subject to, among other conditions, preliminary and final court approval. Further, the Company has the right to terminate the Settlement under certain conditions, including if a specified number of class members timely and validly requesting exclusion from the class. There can be no assurance that the proposed Settlement will be finalized and approved, and the actual outcome of this matter may differ materially from the terms of the proposed Settlement described herein. The Company expects the total settlement of the above matters to be $13.6 million , excluding legal fees, of which $7.5 million is expected to be covered by insurance. Other Contingencies In May 2017, the Company received proceeds of $16.2 million from the sale of its equity interest in Pearlmark Mezz, an unconsolidated entity. As part of the sale of Pearlmark Mezz, the Company entered into an indemnification agreement whereby the Company indemnified the purchaser against realized losses of up to $4.3 million on the Kingsway mezzanine loan until the final maturity date in 2020. A reserve of $703,000 for probable losses was recorded as of December 31, 2017. PCM is subject to additional claims for repurchases or indemnifications on loans that PCM has sold to investors. At December 31, 2017 and 2016 , outstanding demands for indemnification, repurchase or make whole payments totaled approximately $3.3 million and $3.7 million , respectively. The Company's estimated exposure for such outstanding claims as wel as unasserted claims, is included in its reserve for mortgage repurchases and indemnifications. Unfunded Commitments 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. |
DISCONTINUED OPERATIONS AND ASS
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE | NOTE 24 - 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, LCF. The Company reclassified the operating results of the residential mortgage and middle market lending segments as discontinued operations and excluded 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. In June 2017, the Company sold its residential mortgage lending pipeline and certain other assets and liabilities, including trademarks, domain names, intellectual property and certain fixed assets. Additional consideration may be earned subject to a contractual earn out provision based on future loan production, which will be payable over an eighteen to twenty-two month period. The sale generated cash proceeds of $2.6 million , which included a nonrefundable earn out advance of $650,000 . Following the sale, additional nonrefundable earn outs of $350,000 were received as of December 31, 2017 . The collective book value of the assets sold was $1.6 million . The Company sold all of the remaining MSR portfolio generating proceeds of $19.1 million and a realized loss of $1.2 million . The Company retained residential mortgage loans held for sale and cash balances. The following table summarizes the operating results of the residential mortgage and middle market lending segments discontinued operations as reported separately as income (loss) from discontinued operations, net of tax for the years ended December 31, 2017 , 2016 and 2015 (in thousands): Years Ended December 31, 2017 2016 2015 REVENUES Interest income: Loans $ 3,319 $ 25,325 $ 31,248 Other 107 50 7 Total interest income 3,426 25,375 31,255 Interest expense — 6,181 5,785 Net interest income 3,426 19,194 25,470 Gain (loss) on sale of residential mortgage loans 2,833 19,061 13,675 Fee income 3,507 1,221 2,617 Total revenues 9,766 39,476 41,762 OPERATING EXPENSES Equity compensation expense - related party 433 939 725 General and administrative 23,717 30,570 25,349 Depreciation and amortization — 563 613 Provision for loan loss — 12,989 8,801 Total operating expenses 24,150 45,061 35,488 (14,384 ) (5,585 ) 6,274 OTHER INCOME (EXPENSE) Net realized and unrealized gain (loss) on investment securities available-for-sale and loans 145 (11,850 ) 221 Fair value adjustments on financial assets held for sale 123 — — Total other income (expense) 268 (11,850 ) 221 (LOSS) INCOME FROM DISCONTINUED OPERATIONS BEFORE TAXES (14,116 ) (17,435 ) 6,495 Income tax expense — — (391 ) NET (LOSS) INCOME FROM DISCONTINUED OPERATIONS, NET OF TAXES (14,116 ) (17,435 ) 6,104 Loss from disposal of discontinued operations — (1,825 ) — TOTAL (LOSS) INCOME FROM DISCONTINUED OPERATIONS $ (14,116 ) $ (19,260 ) $ 6,104 The assets and liabilities of business segments classified as discontinued operations and other assets and liabilities classified as held for sale are reported separately in the accompanying consolidated financial statements and are summarized as follows at December 31, 2017 and 2016 (in thousands): December 31, 2017 2016 ASSETS Restricted cash $ 138 $ 145 Interest receivable 67 305 Loans held for sale 93,063 346,761 Property available for sale — 125 Derivatives, at fair value — 3,773 Intangible assets (1) — 14,466 Other assets (2) 14,450 17,880 Total assets held for sale $ 107,718 $ 383,455 LIABILITIES Accounts payable and other liabilities $ 10,283 $ 8,404 Management fee payable - related party 56 132 Accrued interest expense 3 203 Borrowings (3) — 133,139 Derivatives, at fair value — 685 Total liabilities held for sale $ 10,342 $ 142,563 (1) Includes MSRs with a fair value of $14.4 million at December 31, 2016 . There were no MSRs remaining at December 31, 2017 . MSRs are recorded at fair value using a discounted cash flow model, calculated by 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 $5.1 million and $5.8 million at December 31, 2017 and 2016 , respectively, which were transferred to held for sale in the fourth quarter of 2016 . (3) Borrowings at December 31, 2016 are entirely related to PCM. There were no borrowings at December 31, 2017 . 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 (in thousands, except quantities): Loan Description Number of Loans Amortized Cost Carrying At December 31, 2017: Legacy CRE whole loans 5 $ 63,783 $ 61,841 Mezzanine loans (2) 1 — — Middle market loans (3) 5 41,199 29,308 Residential mortgage loans (5)(6) 14 1,914 1,914 Total loans held for sale 25 $ 106,896 $ 93,063 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 held for sale 545 $ 358,714 $ 346,761 (1) Third party appraisals were obtained on six of the Legacy CRE whole loans at December 31, 2016 and, as a result, specific provisions of $8.1 million were recorded during the year ended December 31, 2016 prior to the loans being reclassified to held for sale status. Additional provisions in the amount of $7.7 million were recorded during the year ended December 31, 2016 after the transfer of loans to held for sale to adjust the loans to the lower of cost or market. (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 CDO 2007-1 in November 2016. The mezzanine loan is comprised of two trances, with maturity dates of November 2018 and September 2021. (3) Includes a directly originated middle market loan with fair values of $2.0 million and $1.9 million at December 31, 2017 and 2016 , respectively. In May 2017, the loan experienced payment default. In July 2017, the loan was amended to allow an extension for the borrower to seek a sale of its business. The loan's fair value was supported by a third party valuation market prepared at December 31, 2017 . (4) At December 31, 2016 , 24.4% , 17.2% , 17.1% , 14.2% , 12.5% , 9.8% and 4.8% of the Company's middle market loans are concentrated in the healthcare, education and childcare, diversified/conglomerate service, insurance, beverage, food and tobacco, buildings and real estate and hotels, motels, inns and gaming industry groupings, respectively. (5) The fair value option was elected for residential mortgage loans held for sale. (6) The Company's residential mortgage loan portfolio is comprised of both agency loans and non-agency jumbo loans. The fair values of the agency loan portfolio are generally classified as Level 2 in the fair value hierarchy, as those values are determined based on quoted market prices for similar assets or upon other observable inputs. The fair values of the jumbo loan portfolio are generally classified as Level 3 in the fair value hierarchy, as those values are generally based upon valuation techniques that utilize unobservable inputs that reflect the assumptions that a market participant would use in pricing those assets. (7) At December 31, 2016 , approximately 39.2% , 16.2% , 14.6% , 5.9% and 5.9% of the Company's residential mortgage loans were originated in Georgia, California, Utah, Virginia and Florida, respectively, based on amortized cost. Debt Facilities Associated with Discontinued Operations 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 zero . 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. 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 contained certain financial covenants and certain customary events of default and remedies for default. PCM paid off the remaining balance in August 2017 and terminated the facility at that time. 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 contained certain financial covenants and certain customary events of default and remedies for default. PCM paid off the remaining balance in August 2017 and terminated the facility at that time. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 25 - SUBSEQUENT EVENTS The Company has evaluated subsequent events through the filing of this report and determined that there have not been any events that have occurred that would require adjustments to or disclosures in the consolidated financial statements, except the following: On February 21, 2018, the Company announced the full redemption of its remaining outstanding shares of Series B Preferred Stock to occur on March 26, 2018. The remaining Series B Preferred Stock, with a carrying value of $107.9 million at December 31, 2017 , will be redeemed at a redemption price of $25.00 per share, plus all accrued and unpaid dividends up to, but not including, March 26, 2018 in an amount equal to $0.32083 per share. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II Valuation and Qualifying Accounts | SCHEDULE II Resource Capital Corp. Valuation and Qualifying Accounts (in thousands) Balance at Charge to Loans Charged off/Recovered Deconsolidation of VIEs Transfer to Loans Held For Sale Balance at Allowance for loan and lease loss: Year ended December 31, 2017 $ 4,294 $ 1,772 $ (3 ) $ — $ — $ 6,063 Year ended December 31, 2016 $ 43,586 $ 17,765 $ 402 $ (41,696 ) $ (15,763 ) $ 4,294 Year ended December 31, 2015 $ 4,613 $ 41,087 $ (2,175 ) $ 61 $ — $ 43,586 |
Schedule IV Mortgage Loans on R
Schedule IV Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2017 | |
Mortgage Loans on Real Estate [Abstract] | |
SCHEDULE IV Mortgage Loans on Real Estate | SCHEDULE IV Resource Capital Corp. Mortgage Loans on Real Estate At December 31, 2017 (in thousands) Type of Loan/ Borrower Description / Location Interest Payment Rates Maturity Date (1) Periodic Payment (2) Prior Liens Face Amount of Loans Net Carrying Amount of Loans (3) Principal Amount of Loans Subject to Delinquent Principal or Interest CRE whole loans: CRE whole loans in excess of 3% of the carrying amount of total loans Borrower A Retail/Various LIBOR + 5.24% 2018 I/O — $ 70,715 $ 70,494 $ — CRE whole loans less than 3% of the carrying amount of total loans CRE whole loan Multifamily/Various LIBOR + 3.60% - 5.50% 2018-2021 I/O — 606,647 602,968 — CRE whole loan Office/Various LIBOR + 4.20% - 5.75% 2018-2020 I/O — 279,333 278,321 — CRE whole loan (4) Retail/Various LIBOR + 3.75% - 5.65% 2018-2020 I/O — 182,004 178,820 — CRE whole loan Hotel/Various LIBOR + 4.25% - 6.25% 2018-2021 I/O — 107,595 106,722 — CRE whole loan Other/Various LIBOR + 4.25% - 5.75% 2019-2021 I/O — 50,870 50,325 — 1,226,449 1,217,156 — Total CRE whole loans 1,297,164 1,287,650 — Legacy CRE loans: Legacy CRE loans less than 3% of the carrying amount of total loans 75,982 61,841 — Total Legacy CRE loans 75,982 61,841 — Mezzanine loans: Mezzanine loans less than 3% of the carrying amount of total loans 38,072 — 38,072 Total Mezzanine loans 38,072 — 38,072 General allowance for loan and lease loss (2,828 ) Total loans $ 1,411,218 $ 1,346,663 $ 38,072 (1) Maturity dates exclude extension options which may be available to borrower. (2) I/O = interest only (3) The net carrying amount of loans includes an allowance for loan loss of $5.3 million at December 31, 2017 , all allocated to CRE whole loans. (4) Includes one loan in default at December 31, 2017 . The following table reconciles our loans and investments carrying amounts for the periods indicated (in thousands): Years Ended December 31, 2017 2016 2015 Balance at beginning of year $ 1,444,456 $ 1,650,268 $ 1,342,986 New loan originations funded 528,865 173,008 683,419 Funding of existing commitments 32,005 67,219 47,512 Capitalized origination fees (5,760 ) (1,967 ) (7,241 ) Origination fee amortization 4,813 5,979 4,902 Payoff of loans (525,161 ) (355,556 ) (383,574 ) Paydown of loans (34,277 ) (970 ) — Held for sale payoffs (107,492 ) — — Settled held for sale loan fair value adjustments 12,655 — — Held for sale fair value adjustments (1,942 ) — — Provision (1,499 ) (18,168 ) (37,736 ) Deconsolidation — (231,354 ) — Acquisition of loans from the liquidations of collateralized debt obligations — 155,997 — Balance at end of year $ 1,346,663 $ 1,444,456 $ 1,650,268 |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 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"). The consolidated financial statements include the accounts of the Company, majority owned or controlled subsidiaries and VIEs for which the Company is considered the primary beneficiary. All inter-company transactions and balances have been eliminated in consolidation. Variable Interest Entities A VIE is defined as an entity in which equity investors (i) do not have a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional financial support from other parties. A VIE is required to be consolidated by its primary beneficiary, which is defined as the party that (a) has the power to control the activities that most significantly impact the VIE's economic performance and (b) has the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company considers the following criteria in determining whether an entity is a VIE: 1. The equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by any parties, including the equity holders. 2. The equity investors lack one or more of the following essential characteristics of a controlling financial interest. a. The direct ability to make decisions about the entity's activities through voting rights or similar rights. b. The obligation to absorb the expected losses of the entity. c. The right to receive the expected residual returns of the entity.The equity investors have voting rights that are not proportionate to their economic interests, and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. In determining whether the Company is the primary beneficiary of a VIE, the Company reviews governing contracts, formation documents and any other contractual arrangements for any relevant terms and determines the activities that have the most significant impact on the VIE and who has the power to direct those activities. The Company also looks for kick-out rights, protective rights and participating rights as well as any financial or other support provided to the VIE and the reason for that support, and the terms of any explicit or implicit arrangements that may require the Company to provide future support. The Company then makes a determination based on its power to direct the most significant activities of the VIE and/or a financial interest that is potentially significant. In instances when a VIE is owned by both the Company and related parties, the Company considers whether there is a single party in the related party group that meets both the power and losses or benefits criteria on its own as though no related party relationship existed. If one party within the related party group meets both these criteria, such reporting entity is the primary beneficiary of the VIE and no further analysis is needed. If no party within the related party group on its own meets both the power and losses or benefits criteria, but the related party group as a whole meets these two criteria, the determination of primary beneficiary within the related party group is based upon an analysis of the facts and circumstances with the objective of determining which party is most closely associated with the VIE. Determining the primary beneficiary requires significant judgment. 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. Voting Interest Entities A voting interest entity is an entity in which the total equity investment at risk is sufficient to enable it to finance its activities independently and the equity holders have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the losses of the entity and the right to receive the residual returns of the entity. The usual condition for a controlling financial interest in a voting interest entity is ownership of a majority voting interest. If the Company has a majority voting interest in a voting interest entity, the entity will generally be consolidated. The Company does not consolidate a voting interest entity if there are substantive participating rights by other parties and/or kick-out rights by a single party or through a simple majority vote. The Company performs on-going reassessments of whether entities previously evaluated under the voting interest framework have become VIEs, based on certain events, and therefore subject to the VIE consolidation framework. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the financial results. Actual results could differ from those estimates. Estimates affecting the accompanying consolidated financial statements include but are not limited to the net realizable and fair values of the Company's investments and derivatives, the estimated life used on investments to calculate depreciation, amortization and accretion of premiums and discounts, respectively, provisions for loan losses, valuation of servicing assets and the disclosure of contingent liabilities. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and all highly liquid investments with original maturities of three months or less at the time of purchase. |
Investment in Unconsolidated Entities | Investment in Unconsolidated Entities The Company's non-controlling investments in unconsolidated entities are included in investments in unconsolidated entities on the consolidated balance sheets and may be accounted for under the equity method or the cost method. Under the equity method, capital contributions, distributions, profits and losses of the entities are allocated in accordance with the terms of the entities' operating agreements. Such allocations may differ from the stated percentage interests, if any, as a result of preferred returns and allocation formulas as described in the entities' operating agreements. For non-controlling investments in unconsolidated entities qualifying for equity method treatment with substantive profit-sharing arrangements, the hypothetical liquidation at book value ("HLBV") method may be used for recognizing earnings. Under the HLBV method, earnings are calculated and recognized based on the change in how the unconsolidated entity would allocate and distribute its cash if it were to liquidate the carrying value of its assets and liabilities on the beginning and end dates of the earnings period; excluding contributions made or distributions received. The Company may account for an investment that does not qualify for equity method accounting using the cost method. Under the cost method, the Company records dividend income when declared to the extent it is not considered a return of capital, which is recorded as a reduction of the cost of the investment. |
Investment Securities | Investment Securities The Company classifies its investment portfolio as trading or available-for-sale. The Company, from time to time, may sell any of its investments due to changes in market conditions or in accordance with its investment strategy. The Company reports its investment securities, trading and investment securities available-for-sale at fair value. To determine fair value, the Company uses an independent third-party valuation firm utilizing data available in the market as well as appropriate prepayment, default and recovery rates. The Company evaluates the reasonableness of the valuation it receives by using a dealer quote, bid, or internal model. If there is a material difference between the value indicated by the third-party valuation firm and the dealer quote, bid or internal model, the Company will evaluate the difference, which could result in an updated valuation from the third-party or a revised dealer quote. Based on a prioritization of inputs used in the valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. Any changes in fair value to the Company's investment securities, trading are recorded on the Company's consolidated statements of operations as net realized and unrealized (loss) gain on investment securities, trading. Any changes in fair value to the Company's investment securities available-for-sale are recorded on the Company's consolidated balance sheets as a component of accumulated other comprehensive income in stockholders' equity. On a quarterly basis, the Company evaluates its available-for-sale securities for other-than-temporary impairment. An available-for-sale security is impaired when its fair value has declined below its amortized cost basis. When the estimated fair value of an available-for-sale security is less than amortized cost, the Company will consider whether there is an other-than-temporary impairment in the value of the security. An impairment will be considered other-than-temporary based on consideration of several factors, including (i) if the Company intends to sell the security, (ii) if it is more likely than not that the Company will be required to sell the security before recovering its cost, or (iii) the Company does not expect to recover the security's cost basis (i.e., a credit loss). A credit loss will have occurred if the present value of cash flows expected to be collected from the debt security is less than the amortized cost basis. If the Company intends to sell an impaired debt security or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the impairment is other-than-temporary and will be recognized currently in earnings and equal to the entire difference between fair value and amortized cost. If a credit loss exists, but the Company does not intend nor is it more likely than not that it will be required to sell before recovery, the impairment is other-than-temporary and will be separated into (i) the estimated amount relating to the credit loss, and (ii) the amount relating to all other factors. Only the estimated credit loss amount is recognized currently in earnings, with the remainder of the loss recognized in other comprehensive income. Estimating cash flows and determining whether there is other-than-temporary impairment require management to exercise judgment and make significant assumptions, including, but not limited to, assumptions regarding estimated prepayments, loss assumptions and assumptions regarding changes in interest rates. As a result, actual impairment losses, and the timing of income recognized on these securities, could differ from reported amounts. Investment security transactions are recorded on the trade date. Realized gains and losses on investment securities are determined on the specific identification method. |
Investment Security Interest Income Recognition | Investment Security Interest Income Recognition Interest income on the Company's mortgage-backed securities ("MBS") and other ABS is accrued using the effective yield method based on the actual coupon rate and the outstanding principal amount of the underlying mortgages or other assets. Premiums and discounts are amortized or accreted into interest income over the expected lives of the securities also using the effective yield method, adjusted for the effects of estimated prepayments. For an investment purchased at par, the effective yield is the contractual interest rate on the investment. If the investment is purchased at a discount or at a premium, the effective yield is computed based on the contractual interest rate increased for the accretion of a purchase discount or decreased for the amortization of a purchase premium. The effective yield method requires the Company to make estimates of future prepayment rates for its investments that can be contractually prepaid before their contractual maturity date so that the purchase discount can be accreted, or the purchase premium can be amortized, over the estimated remaining life of the investment. The prepayment estimates that the Company uses directly impact the estimated remaining lives of its investments. Actual prepayment estimates are reviewed at each quarter end or more frequently if the Company becomes aware of any material information that would lead it to believe that an adjustment is necessary. For MBS and other ABS that are not of high credit quality or can be prepaid in such a way that the Company would not recover substantially all of its initial investment, changes in the original or most recent cash flow projections may result in a prospective change in interest income recognized. For MBS and other ABS that are of high credit quality, changes in the original or most recent cash flow projections may result in an immediate cumulative adjustment in interest income recognized. |
Loans | Loans The Company acquires loans through direct origination, through the acquisition of participations in CRE loans and corporate leveraged loans in the secondary market and through syndications of newly originated loans. Loans are held for investment; therefore, the Company initially records them at their acquisition price, and subsequently, accounts for them based on their outstanding principal plus or minus unamortized premiums or discounts. The Company may sell a loan held for investment where the credit fundamentals underlying a particular loan have changed in such a manner that the Company's expected return on investment may decrease. Once the determination has been made by the Company that it no longer will hold the loan for investment, the Company identifies these loans as loans held for sale. Any credit-related impairment considerations prior to the transfer to loans held for sale are accounted for through the allowance for loan losses on the Company's consolidated balance sheets. |
Loans Held-for-sale | The Company reports its loans held for sale at the lower of amortized cost or fair value. To determine fair value, the Company primarily uses appraisals obtained from third-parties as a practical expedient. Key assumptions used in those appraisals are reviewed by the Company. If there is a material difference between the value provided by the appraiser and information used by the Company to validate the appraisal, the Company will evaluate the difference with the appraiser, which could result in an updated appraisal. The Company may also use the present value of estimated cash flows, market price, if available, or other determinants of the fair value of the collateral less estimated disposition costs. Any determined changes in the fair value of loans held for sale are recorded in fair value adjustments on financial assets held for sale on the Company's consolidated statements of operations. Based on a prioritization of inputs used in the valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. |
Loan Interest Income Recognition | Loan Interest Income Recognition Interest income on loans includes interest at stated rates adjusted for amortization or accretion of premiums and discounts based on the contractual payment terms of the loan. Premiums and discounts are amortized or accreted into income using the effective yield method. If a loan with a premium or discount is prepaid, the Company immediately recognizes the unamortized portion as a decrease or increase to interest income. In addition, the Company defers loan origination and extension fees and loan origination costs and recognizes them over the life of the related loan against interest income using the straight line method, which approximates the effective yield method. Income recognition is suspended for loans at the earlier of the date at which payments become 90 days past due or when, in the opinion of management, a full recovery of principal and income becomes doubtful. When the ultimate collectability of the principal is in doubt, all payments received are applied to principal under the cost recovery method. On the other hand, when the ultimate collectability of the principal is not in doubt, contractual interest is recorded as interest income when received, under the cash method, until an accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. A loan is written off when it is no longer realizable and/or legally discharged. |
Allowance for Loan Losses | Allowance for Loan Losses The Company maintains an allowance for loan loss on its loans held for investment. In September 2017, the Company refined its process for the computation of its general reserve for loan losses to more fully align with the results of its risk rating process. CRE loans that are held for investment are carried at cost, net of unamortized acquisition premiums or discounts, loan fees and origination costs as applicable, unless the loans are deemed impaired. The Company evaluates each loan classified as held for investment for impairment at least quarterly. In connection with this evaluation, the Company assesses the performance of each loan and assigns a risk rating based on the collective evaluation of several factors, including but not limited to: collateral performance relative to underwritten plan, time since origination, current implied and/or reunderwritten loan-to-collateral value ratios ("LTV"), risk inherent in the loan structure and exit plan. Loans are rated "1" through "5," from less risk to greatest risk, in connection with this review. Loans with a risk rating of "5" are individually measured for impairment on a quarterly basis. The general reserve, established for loans not determined to be impaired individually, is based on the Company's loan risk ratings. The Company records a general reserve equal to 1.50% of the aggregate face values of loans with a risk rating of "3," plus 5.00% of the aggregate face values of loans with a risk rating of "4." The Company considers a loan to be impaired if at least one of two conditions exists. The first condition is if, based on the Company's evaluation as part of the loan risk rating process, management believes that a loss event has occurred that makes it probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The second condition is if the loan is deemed to be a troubled-debt restructuring ("TDR") where a concession has been given to a borrower in financial difficulty. These TDRs may not have an associated specific loan loss allowance if the principal and interest amount is considered recoverable based on current market conditions, expected collateral performance and/or guarantees made by the borrowers. When a loan is impaired under either of these two conditions, the allowance for loan losses is increased by the amount of the excess of the amortized cost basis of the loan over its fair value. Fair value may be determined based on the present value of estimated cash flows; or market price, if available; or on the fair value of the collateral less estimated disposition costs. When a loan, or a portion thereof, is considered uncollectible and pursuit of collection is not warranted, the Company will record a charge-off or write-down of the loan against the allowance for loan losses. An impaired loan may remain on accrual status during the period in which the Company is pursuing repayment of the loan; however, the loan would be placed on non-accrual status at such time as (i) management believes that scheduled debt service payments will not be met within the coming 12 months; (ii) the loan becomes 90 days past due; (iii) management determines the borrower is incapable of, or has ceased efforts toward, curing the cause of the impairment; or (iv) the net realizable value of the loan's underlying collateral approximates the Company's carrying value for such loan. While on non-accrual status, the Company recognizes interest income only when an actual payment is received if a credit analysis supports the borrower's principal repayment capacity. When a loan is placed on non-accrual, previously accrued interest is reversed from interest income. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is re-measured on a quarterly basis by comparing the fair value of the loan to its cost basis. The fair value is determined using unobservable inputs including estimates of selling costs (Level 3). |
Long-Lived and Intangible Assets | Long-Lived and Intangible Assets Long-lived assets and certain identifiable intangibles to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. The review of recoverability is based on an estimate of the future undiscounted cash flows (excluding interest charges) expected to result from the long-lived asset's use and eventual disposition compared to the carrying value of the asset. If impairment has occurred, the loss will be measured as the excess of the carrying amount of the asset over the fair value of the asset. |
Assets and Liabilities Held for Sale | Assets and Liabilities Held for Sale The Company classifies long-lived assets or a disposal group to be sold as held for sale in the period in which all of the following criteria are met: • management, having the authority to approve the action, commits to a plan to sell the asset or the disposal group; • the asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; • an active program to locate a buyer and other actions required to complete the plan to sell the asset or disposal group have been initiated; • the sale of the asset or disposal group is probable, and transfer of the asset or disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond the Company's control extend the period of time required to sell the asset or disposal group beyond one year; • the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and • actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A long-lived asset or disposal group that is classified as held for sale is initially measured at the lower of its cost or fair value less any costs to sell. Any loss resulting from the transfer of long-lived assets or disposal groups to assets held for sale is recognized in the period in which the held for sale criteria are met. Legacy CRE loans included as assets held for sale were measured at the lower of cost or fair value on the date the Legacy CRE loans were transferred to assets held for sale. Any specific loan loss reserves for Legacy CRE loans transferred to assets held for sale were measured and charged off on the date of transfer, establishing a new cost basis for the loans. The fair values of assets held for sale are assessed each reporting period and changes in such fair values are reported as an adjustment to the carrying value of the asset or disposal group with an offset to fair value adjustments on financial assets held for sale on the Company's consolidated statements of operations, to the extent that any subsequent changes in fair value do not exceed the cost basis of the asset or disposal group. Additionally, upon determining that a long-lived asset or disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group, if material, in the line items assets or liabilities held for sale, respectively, on the consolidated balance sheets. See Note 24 . |
Discontinued Operations | Discontinued Operations The results of operations of a component or a group of components of the Company that either has been disposed of or is classified as held for sale is reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company's operations and financial results. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) for the Company includes net income and the change in net unrealized gains (losses) on available-for-sale securities, derivative instruments used to hedge exposure to interest rate fluctuations and protect against declines in the market value of assets resulting from general market trends as well as translation of currency as a result of the Company's investment in the equity of foreign CDOs and CLOs. |
Income Taxes | Income Taxes The Company operates in such a manner as to qualify as a REIT under the provisions of the Internal Revenue Code of 1986, as amended (the "Code"); therefore, applicable REIT taxable income is included in the taxable income of its shareholders, to the extent distributed by the Company. To maintain REIT status for federal income tax purposes, the Company is generally required to distribute at least 90% of its REIT taxable income to its shareholders as well as comply with certain other qualification requirements as defined under the Code. As a REIT, the Company is not subject to federal corporate income tax to the extent that it distributes 100% of its REIT taxable income each year. Taxable income, from non-REIT activities managed through the Company's TRSs, are subject to federal, state and local income taxes. The Company's TRS' income taxes are accounted for under the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for the temporary differences between the financial reporting basis and tax basis of assets and liabilities. The Company evaluates the realizability of its deferred tax assets and liabilities and recognizes a valuation allowance if, based on available evidence, it is more likely than not that some or all of its deferred tax assets will not be realized. In evaluating the realizability of the deferred tax asset or liability, the Company will consider the expected future taxable income, existing and projected book to tax differences as well as tax planning strategies. This analysis is inherently subjective, as it is based on forecasted earning and business and economic activity. Changes in estimates of deferred tax asset realizability, if any, are included in income tax (expense) benefit on the consolidated statements of operations. In addition, several of the Company's foreign TRSs, are organized as exempted companies incorporated with limited liability under the laws of the Cayman Islands. The Company also has TRSs incorporated in Ireland, which are generally exempt from federal and state income tax at the corporate level because their activities in the United States are limited to trading in stock and securities for their own account. Therefore, despite their status as TRSs, they generally will not be subject to corporate tax on their earnings and no provision for income taxes is required. However, because they are either controlled foreign corporations or passive foreign investment companies (in which the Company has made a Qualified Electing Fund election), the Company will generally be required to include its share of current taxable income from the foreign TRSs in its calculation of REIT taxable income. The Company accounts for taxes assessed by a governmental authority that is directly imposed on a revenue-producing transaction (e.g., sales, use, value added) on a net (excluded from revenue) basis. The Company established a full valuation allowance against its net deferred tax asset of approximately $37.0 million (tax effected $9.9 million ) at December 31, 2017 as the Company believed it was more likely than not that some or all of the deferred tax assets would not be realized. This assessment was based on the Company's cumulative historical losses and uncertainties as to the amount of taxable income that would be generated in future years. The Company evaluates and recognizes tax positions only if it is more likely than not that the position will be sustained upon examination by the appropriate taxing authority. A tax position that meets this threshold is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company classifies any tax penalties as other operating expenses and any interest as interest expense. The Company does not have any unrecognized tax benefits that would affect the Company's financial position. U.S. Tax Cuts and Jobs Act In December 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act makes broad and complex changes to the Code, including, but not limited to: (i) reducing the U.S. federal corporate tax rate from 35% to 21%; (ii) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (iii) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (iv) requiring a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations; (v) eliminating the corporate alternative minimum tax ("AMT") and changing how existing AMT credits can be realized; (vi) creating the base erosion anti-abuse tax, a new minimum tax; (vii) creating a new limitation on deductible interest expense; and (viii) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017. The SEC staff issued guidance which provides insight on accounting for the tax effects of the Tax Act. The guidance provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting. A company must reflect the income tax effects of those aspects of the Act for which the accounting is complete. To the extent that a company's accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply the guidance under the accounting standard on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. The Company's accounting for the impact of the Tax Act is complete. However, given the significant complexity of the Tax Act, anticipated guidance from the U.S. Department of the Treasury about implementing the Tax Act, and the potential for additional guidance from the SEC or the FASB related to the Tax Act, these estimates may be adjusted during the measurement period. |
Stock Based Compensation | Stock Based Compensation Issuances of restricted stock and options are accounted for using the fair value based methodology whereby the fair value of the award is measured on the grant date and expensed monthly to equity compensation expense - related party on the consolidated statements of operations with a corresponding entry to additional paid-in capital on the consolidated balance sheets. For issuances to the Company's Manager and to non-employees, the unvested stock and options are adjusted quarterly to reflect changes in fair value as performance under the agreement is completed. For issuances to the Company's eight non-employee directors receiving stock based compensation or to any former direct employees of the Company's subsidiaries, the amount is not remeasured under the fair value-based method. The compensation for each of these issuances is amortized over the service period on a straight line basis and included in equity compensation expense - related party on the consolidated statements of operations. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The Company calculates basic income per share by dividing net income for the period by the weighted average number of shares of its common stock, including vested restricted stock and participating securities, outstanding for that period. Diluted income per share takes into account the effect of dilutive investments, such as stock options, unvested restricted stock and convertible notes, but uses the average share price for the period in determining the number of incremental shares that are to be added to the weighted average number of shares outstanding. |
Derivative Instruments | Derivative Instruments The Company's policies permit it to enter into derivative contracts, including interest rate swaps and interest rate caps, to add stability to its interest expense and to manage its exposure to interest rate movements or other identified risks. The Company has designated these transactions as cash flow hedges. The contracts or hedge instruments are evaluated at inception and at subsequent consolidated balance sheets dates to determine if they qualify for hedge accounting, which requires that the Company recognize all derivatives on the consolidated balance sheets at fair value. The Company records changes in the estimated fair value of the derivative in other comprehensive income to the extent that it is effective. Any ineffective portion of a derivative's change in fair value is immediately recognized in earnings. The Company may also enter into forward currency contracts. Forward contracts represent future commitments to either purchase or to deliver loans, securities or a quantity of a currency at a predetermined future date, at a predetermined rate or price and are used to manage interest rate risk on loan commitments and mortgage loans held for sale as well as currency risk with respect to the Company's long positions in foreign currency-denominated investment securities. Derivative assets and liabilities, are reported at fair value, and are valued by a third-party pricing agent using an income approach with models that use, as their primary inputs, readily observable market parameters. This valuation process considers factors including interest rate yield curves, time value, credit factors and volatility factors. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparties. The Company assesses the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and, if material, categorizes those derivatives within Level 3 of the fair value hierarchy. |
Fair Value Measurement | Fair Value Measurements In analyzing the fair value of its investments accounted for on a fair value basis, the Company uses the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company determines fair value based on quoted prices when available or, if quoted prices are not available, through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The hierarchy followed defines three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices for identical instruments in active markets. Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value inputs are observable. Level 3 - Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable, for example, when there is little or no market activity for an investment at the end of the period, unobservable inputs may be used. The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The determination of where an asset or liability falls in the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter; depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. Transfers between levels are determined by the Company at the end of the reporting period. However, the Company expects that changes in classifications between levels will be rare. Assets or liabilities that are both designated for sale or disposition and reported as discontinued operations are disclosed in Note 24 . |
Recent Accounting Standards | Recent Accounting Standards Accounting Standards Adopted in 2017 In October 2016, the Financial Accounting Standards Board ("FASB") issued guidance to amend how a reporting entity that is the single decision maker of a VIE should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. The guidance requires that if, under the first characteristic of a primary beneficiary, the reporting entity determines that it is the single decision maker of a VIE, then the reporting entity is required to include all of its direct variable interests in a VIE and, on a proportionate basis, its indirect variable interests in a VIE held through related parties, including related parties that are under common control with the reporting entity, in determining whether it satisfies the second characteristic of a primary beneficiary, the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. If the reporting entity does not satisfy the second characteristic of a primary beneficiary after performing the assessment, the reporting entity is required to evaluate whether it and one or more of its related parties under common control, as a group, have the characteristics of a primary beneficiary. If the characteristics of a primary beneficiary are met as a group, then the party within the related party group that is most closely associated with the VIE is the primary beneficiary. The guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. Early adoption is permitted. Adoption did not have a material impact on the Company's consolidated financial statements. In March 2016, the FASB issued guidance intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. The new guidance allows for entities to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. In addition, the guidance allows employers to withhold shares to satisfy minimum statutory tax withholding requirements up to the employees' maximum individual tax rate without causing the award to be classified as a liability. The guidance also stipulates that cash paid by an employer to a taxing authority when directly withholding shares for tax-withholding purposes should be classified as a financing activity on the statement of cash flows. This guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. Early adoption is permitted in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. 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. In 2016, the FASB issued multiple amendments to the accounting standard to provide further clarification. Exclusions from the scope of this guidance include revenues resulting from loans, investment securities available-for-sale, investment securities, trading, investments in unconsolidated entities and leases. The Company evaluated the applicability of this guidance, considering the scope exceptions, and determined that adoption will not have a material impact on its consolidated financial statements. Accounting Standards to be Adopted in Future Periods In February 2018, the FASB issued guidance to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The guidance is effective for annual reporting periods beginning after December 15, 2018, and interim periods within that reporting period. Early adoption is permitted. The Company is in the process of evaluating the impact of this guidance. In August 2017, the FASB issued guidance to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities. Additionally, the guidance simplifies the application of the hedge accounting guidance via certain targeted improvements. The guidance is effective for annual reporting periods beginning after December 15, 2018, and interim periods within that reporting period. Early adoption is permitted. The Company is in the process of evaluating the impact of this guidance. In May 2017, the FASB issued guidance to clarify which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. Modification accounting should be applied unless all of the following three criteria are met: (i) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; (ii) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; (iii) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within that reporting period. The Company is in the process of evaluating the impact of this guidance. In January 2017, the FASB issued guidance to add the Securities and Exchange Commission ("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 is in the process of evaluating the impact of this guidance. In January 2017, the FASB issued guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions, or disposals, of assets or businesses. The guidance provides a screen to determine when an integrated set of assets and activities (a "set") is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired, or disposed of, is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, the guidance requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output; and remove the evaluation of whether a market participant could replace missing elements. The guidance also narrows the definition of an output to: the result of inputs and processes applied to those inputs that provide goods or services to customers, investment income (such as dividends or interest), or other revenues. The guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within that reporting period. 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 August 2016, the FASB issued new guidance to reduce the diversity in practice around the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. The guidance addresses the following eight specific cash flow issues: debt prepayments or extinguishment costs; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); settlement of zero-coupon debt instruments or other debt instruments with insignificant coupon rates; distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within that reporting period. 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 February 2016, the FASB issued guidance requiring lessees to recognize a lease liability and a right-of-use asset for all leases. Lessor accounting will remain largely unchanged. The guidance will also require new qualitative and quantitative disclosures to help financial statement users better understand the timing, amount and uncertainty of cash flows arising from leases. This guidance will be effective for reporting periods beginning on or after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of this guidance and its impact on its consolidated financial statements. In January 2016, the FASB issued guidance to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments in order to provide users of financial statements with more decision-useful information. The guidance requires equity investments to be measured at fair value with changes in fair value recognized in net income; simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; requires separate presentation of financial assets and financial liabilities by measurement category and form of financial assets on the balance sheet or the accompanying notes to the financial statements and clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets. It is effective for annual reporting periods, and the interim periods within those periods, beginning after December 15, 2017, and early adoption is permitted for certain provisions. The Company is currently evaluating the impact of this new guidance. |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2015 and 2016 consolidated financial statements to conform to the 2017 presentation, including the impact of discontinued operations and assets and liabilities held for sale. |
Distributions | In order to qualify as a REIT, the Company must currently distribute at least 90% of its taxable income. In addition, the Company must distribute 100% of its taxable income in order to not 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 funds to make sufficient distribution payments. The Company's 2018 dividends will be determined by the Company's board of directors, which will also consider the composition of any dividends declared, including the option of paying a portion in cash and the balance in additional common shares. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of variable interest entities | The following table shows the classification and carrying value of assets and liabilities of the Company's Consolidated VIEs at December 31, 2017 (in thousands): CRE Securitizations Other Total ASSETS Restricted cash $ 20,302 $ 544 $ 20,846 Interest receivable 3,347 — 3,347 CRE loans, pledged as collateral 603,110 — 603,110 Loans held for sale — 13 13 Principal paydowns receivable 72,166 41 72,207 Other assets 63 10 73 Total assets (1) $ 698,988 $ 608 $ 699,596 LIABILITIES Borrowings $ 416,655 $ — $ 416,655 Accrued interest expense 592 — 592 Accounts payable and other liabilities 81 15 96 Total liabilities $ 417,328 $ 15 $ 417,343 (1) Assets of each of the Consolidated VIEs may only be used to settle the obligations of each respective VIE. |
Variable interest entity, maximum exposure | The following table shows the classification, carrying value and maximum exposure to loss with respect to the Company's unconsolidated VIEs at December 31, 2017 (in thousands): Unconsolidated VIEs Unsecured Pelium Capital Wells Fargo Commercial Mortgage Trust 2017-C40 Total Maximum ASSETS Investments in unconsolidated entities $ 1,548 $ 10,503 $ — $ 12,051 $ 12,051 Investment securities available-for-sale — — 21,194 21,194 21,194 Total assets 1,548 10,503 21,194 33,245 LIABILITIES Borrowings 51,548 — — 51,548 N/A Total liabilities 51,548 — — 51,548 N/A Net asset (liability) $ (50,000 ) $ 10,503 $ 21,194 $ (18,303 ) N/A |
SUPPLEMENTAL CASH FLOW INFORM39
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of other significant noncash transactions | The following table summarizes the Company's supplemental disclosure of cash flow information (in thousands): Years Ended December 31, 2017 2016 2015 Non-cash continuing operating activities include the following: Reclassification of linked transactions, net at fair value to investment securities available-for-sale, pledged as collateral, at fair value and borrowings (1) $ — $ — $ 15,367 Non-cash discontinued operating activities include the following: Interest expense paid by third party (2) $ — $ (107 ) $ — Operating liabilities assumed by third party (2) $ — $ (192 ) $ — Non-cash continuing investing activities include the following: Reclassification of linked transactions, net at fair value to investment securities available-for-sale, pledged as collateral, at fair value (1) $ — $ — $ 48,764 Retained beneficial interest in unconsolidated securitization entities $ — $ (22,476 ) $ — Restricted cash acquired through securitizations called or liquidated $ — $ (934 ) $ — Loans acquired through securitizations called or liquidated $ — $ (157,070 ) $ — Securities acquired through securitizations called or liquidated $ — $ (40,892 ) $ — Non-cash continuing financing activities include the following: Proceeds from the private exchange of convertible senior notes $ 22,161 $ — $ — Payments on the private exchange of convertible senior notes $ (22,161 ) $ — $ — Distributions on common stock accrued but not paid $ 1,571 $ 1,550 $ 13,274 Distributions on preferred stock accrued but not paid $ 4,010 $ 4,010 $ 4,077 Reclassification of linked transactions, net at fair value to borrowings (1) $ — $ — $ 33,397 Non-cash discontinued financing activities include the following: Senior secured revolving credit facility assumed by third party (2) $ — $ (122,000 ) $ — Senior secured revolving credit facility paid down by third party (2) $ — $ (22,000 ) $ — (1) As a result of an accounting standards update adopted on January 1, 2015 ( see Note 2 ), the Company unlinked its previously linked transactions, resulting in non-cash increases in both its investment securities available-for-sale, pledged as collateral, at fair value and related repurchase agreements borrowings balances. (2) In August 2016, the Company completed the sale of Northport TRS, LLC. The Purchaser assumed $122.0 million and paid down $22.0 million of principal and $107,000 of interest expense on the Company's behalf of the senior secured revolving credit agreement. The Purchaser assumed $192,000 of accounts payable and accrued legal fees recorded to complete the sale. |
RESTRICTED CASH (Tables)
RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of restricted cash | The following table summarizes the Company's restricted cash (in thousands): December 31, 2017 2016 Restricted cash: Cash held by consolidated CRE securitizations, CDOs and CLOs $ 20,846 $ 3,308 Restricted cash pledged with minimum reserve balance requirements 25 71 Margin posted to central clearinghouse on interest rate swaps 1,903 20 Cash held in escrow 100 — Total $ 22,874 $ 3,399 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
LOANS HELD FOR INVESTMENT [Abstract] | |
Summary of loans | The following is a summary of the Company's loans (dollars in thousands): Description Quantity Principal Unamortized (Discount) (1) Amortized Cost Allowance for Loan Losses Carrying (2) Contracted Interest Rates (3) Maturity Dates (4)(6) At December 31, 2017: CRE whole loans, floating rate (5) 70 $ 1,297,164 $ (7,014 ) $ 1,290,150 $ (5,328 ) $ 1,284,822 LIBOR plus 3.60% to LIBOR plus 6.25% February 2018 to January 2021 Total CRE loans held for investment 1,297,164 (7,014 ) 1,290,150 (5,328 ) 1,284,822 Syndicated corporate loans (7) 2 13 — 13 — 13 n/a n/a Total loans held for sale 13 — 13 — 13 Total loans $ 1,297,177 $ (7,014 ) $ 1,290,163 $ (5,328 ) $ 1,284,835 At December 31, 2016: CRE whole loans, floating rate (5) 67 $ 1,295,926 $ (5,819 ) $ 1,290,107 $ (3,829 ) $ 1,286,278 LIBOR plus 3.75% to LIBOR plus 6.45% April 2017 to January 2020 Total CRE loans held for investment 1,295,926 (5,819 ) 1,290,107 (3,829 ) 1,286,278 Syndicated corporate loans (7) 3 1,007 — 1,007 — 1,007 n/a n/a Total loans held for sale 1,007 — 1,007 — 1,007 Total loans $ 1,296,933 $ (5,819 ) $ 1,291,114 $ (3,829 ) $ 1,287,285 (1) Amounts include unamortized loan origination fees of $6.7 million and $5.8 million and deferred amendment fees of $268,000 and $4,000 being amortized over the life of the loans at December 31, 2017 and 2016 , respectively. (2) Substantially all loans are pledged as collateral under various borrowings at December 31, 2017 and 2016 , respectively. (3) LIBOR refers to the London Interbank Offered Rate. (4) Maturity dates exclude contracted extension options, subject to the satisfaction of certain terms, that may be available to the borrowers. (5) CRE whole loans had $84.1 million and $55.5 million in unfunded loan commitments at December 31, 2017 and 2016 , respectively. These unfunded loan commitments are advanced as the borrowers formally request additional funding as permitted under the loan agreement and any necessary approvals have been obtained. (6) Maturity dates exclude one CRE whole loan, with an amortized cost of $7.0 million , in default at December 31, 2017 . (7) All syndicated corporate loans are second lien loans and are accounted for under the fair value option. |
Summary of contractual maturities, assuming full exercise of the extension options available to the borrowers, of the Company's CRE loans held for investment, at amortized cost | The following is a summary of the contractual maturities, assuming full exercise of the extension options available to the borrowers, of the Company's CRE loans held for investment, at amortized cost (in thousands): Description 2018 2019 2020 and Thereafter Total At December 31, 2017: CRE whole loans (1) $ — $ 148,622 $ 1,134,528 $ 1,283,150 Description 2017 2018 2019 and Thereafter Total At December 31, 2016: CRE whole loans $ 7,000 $ 24,476 $ 1,258,631 $ 1,290,107 (1) Excludes one CRE whole loan, with an amortized cost of $7.0 million , in default at December 31, 2017 . |
FINANCING RECEIVABLES (Tables)
FINANCING RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Allowance for loan losses and recorded investments in loans | The following tables show the activity in the allowance for loan and lease losses for the years ended December 31, 2017 and 2016 and the allowance for loan and lease losses and recorded investments in loans and leases at December 31, 2017 and 2016 (in thousands): Year Ended December 31, 2017 Year Ended December 31, 2016 Commercial Real Estate Loans Syndicated Corporate Loans Direct Financing Leases Total Commercial Real Estate Loans Syndicated Corporate Loans Direct Financing Leases Total Allowance for loan and lease losses: Allowance for loan and lease losses at beginning of year $ 3,829 $ — $ 465 $ 4,294 $ 41,839 $ 1,282 $ 465 $ 43,586 Provision for (recovery of) loan and lease losses 1,499 3 270 1,772 18,167 (402 ) — 17,765 Loans charged-off — (3 ) — (3 ) — 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 end of year $ 5,328 $ — $ 735 $ 6,063 $ 3,829 $ — $ 465 $ 4,294 December 31, 2017 December 31, 2016 Commercial Real Estate Loans Syndicated Corporate Loans Direct Financing Leases Total Commercial Real Estate Loans Syndicated Corporate Loans Direct Financing Leases Total Allowance for loan and lease losses ending balance: Individually evaluated for impairment $ 2,500 $ — $ 735 $ 3,235 $ 2,500 $ — $ 465 $ 2,965 Collectively evaluated for impairment $ 2,828 $ — $ — $ 2,828 $ 1,329 $ — $ — $ 1,329 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — $ — $ — Loans and Leases: Amortized cost ending balance: Individually evaluated for impairment $ 7,000 $ — $ 886 $ 7,886 $ 7,000 $ — $ 992 $ 7,992 Collectively evaluated for impairment $ 1,283,150 $ — $ — $ 1,283,150 $ 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 CRE loans at amortized cost were as follows (in thousands): Rating 1 Rating 2 Rating 3 Rating 4 Rating 5 (4) Held for Sale Total At December 31, 2017: CRE whole loans (2) $ 65,589 $ 1,040,883 $ 171,841 $ 4,837 $ 7,000 $ — $ 1,290,150 Legacy CRE whole loans (1)(3) — — — — — 63,783 63,783 $ 65,589 $ 1,040,883 $ 171,841 $ 4,837 $ 7,000 $ 63,783 $ 1,353,933 Rating 1 Rating 2 Rating 3 Rating 4 Held for Sale Total At December 31, 2016: CRE whole loans (1) $ 1,186,292 $ 96,815 $ — $ 7,000 $ — $ 1,290,107 Legacy CRE whole loans (1) — — — — 158,178 158,178 $ 1,186,292 $ 96,815 $ — $ 7,000 $ 158,178 $ 1,448,285 (1) Legacy CRE whole loans are carried at the lower of cost or fair value. (2) Includes one CRE whole loan, with an amortized cost of $7.0 million that was in default at December 31, 2017 . (3) Includes two loans, with a total carrying value of $22.5 million , that were in default at December 31, 2017 . (4) Rating category 5 was not applicable for December 31, 2016 . The criteria set forth below should be used as general guidelines, and, therefore, not every loan will have all of the characteristics described in each category below. Loans that are performing according to their underwritten plans generally will not require an allowance for loan loss. Risk Rating Risk Characteristics 1 • Property performance has surpassed underwritten expectations. • Occupancy is stabilized, the property has had a history of consistently high occupancy, and the property has a diverse and high quality tenant mix. 2 • Property performance is consistent with underwritten expectations and covenants and performance criteria are being met or exceeded. • Occupancy is stabilized, near stabilized or is on track with underwriting. 3 • Property performance lags behind underwritten expectations. • Occupancy is not stabilized and the property has some tenancy rollover. 4 • Property performance significantly lags behind underwritten expectations. Performance criteria and loan covenants have required occasional waivers. • Occupancy is not stabilized and the property has a large amount of tenancy rollover. 5 • Property performance is significantly worse than underwritten expectations. The loan is not in compliance with loan covenants and performance criteria and is in default. Expected sale proceeds would not be sufficient to pay off the loan at maturity. • The property has material vacancy and significant rollover of remaining tenants. • An updated appraisal is required. |
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 (1) Total Loans > 90 Days and Accruing At December 31, 2017: CRE whole loans (2) $ — $ — $ 7,000 $ 7,000 $ 1,283,150 $ 1,290,150 $ — Legacy CRE whole loans (3) 11,516 — 11,000 22,516 41,267 63,783 — Total loans $ 11,516 $ — $ 18,000 $ 29,516 $ 1,324,417 $ 1,353,933 $ — At December 31, 2016: CRE whole loans $ — $ — $ — $ — $ 1,290,107 $ 1,290,107 $ — Legacy CRE whole loans (4) 61,400 — — 61,400 96,792 158,192 — Direct financing leases 137 — 128 265 727 992 — Total loans $ 61,537 $ — $ 128 $ 61,665 $ 1,387,626 $ 1,449,291 $ — (1) Excludes direct financing leases of $151,000 , net of reserves, at December 31, 2017 . (2) Includes one CRE whole loan, with an amortized cost of $7.0 million , that was in default at December 31, 2017 , on which the Company recorded a $2.5 million specific provision during the year ended December 31, 2016 . (3) Includes two loans with a total carrying value of $22.5 million that were in default at December 31, 2017 . (4) Includes two loans with a total carrying value of $61.4 million that were in default at December 31, 2016 . |
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 December 31, 2017: Loans without a specific valuation allowance: CRE whole loans $ — $ — $ — $ — $ — Loans with a specific valuation allowance: CRE whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ — Total: CRE whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ — At December 31, 2016: Loans without a specific valuation allowance: CRE whole loans $ — $ — $ — $ — $ — Loans with a specific valuation allowance: CRE whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ 480 Total: CRE whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ 480 |
Troubled debt restructurings on financing receivables | The following table shows TDRs in the Company's loan portfolio (dollars in thousands): Year ended December 31, 2017 Year ended December 31, 2016 Number of Loans Pre-Modification Outstanding Recorded Balance Post-Modification Outstanding Recorded Balance Number of Loans Pre-Modification Outstanding Recorded Balance Post-Modification Outstanding Recorded Balance CRE whole loans — $ — $ — 3 $ 29,459 $ 21,400 Total — $ — $ — 3 $ 29,459 $ 21,400 |
INVESTMENT SECURITIES, TRADING
INVESTMENT SECURITIES, TRADING (Tables) | 12 Months Ended |
Dec. 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, except for number of securities): Number of Securities Amortized Cost Unrealized Gains Unrealized Losses Fair Value At December 31, 2017: Structured notes 4 $ 2,891 $ — $ (2,713 ) $ 178 At December 31, 2016: Structured notes 5 $ 6,242 $ 920 $ (2,670 ) $ 4,492 |
INVESTMENT SECURITIES AVAILAB44
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Available-for-sale Securities [Abstract] | |
Available-for-sale securities | The following table summarizes the Company's sales of investment securities available-for-sale (in thousands, except number of positions sold and redeemed): Positions Positions Redeemed Par Amount Sold/Redeemed Amortized Cost Realized Gain (Loss) Proceeds Year Ended December 31, 2017: CMBS 2 — $ 7,350 $ 6,650 $ (238 ) $ 6,412 ABS - structured notes (1) 3 — $ 24,267 $ 19,258 $ 632 $ 17,608 ABS 5 — $ 8,306 $ 4,319 $ 1,356 $ 5,675 RMBS 3 — $ 153,519 $ 1,274 $ (158 ) $ 1,116 Year Ended December 31, 2016: CMBS 1 — $ 4,000 $ 3,257 $ (450 ) $ 2,807 ABS 1 — $ 10,830 $ 9,004 $ 418 $ 9,422 Year Ended December 31, 2015: CMBS 1 — $ 3,000 $ 3,071 $ (58 ) $ 3,013 ABS - structured notes 2 — $ 20,195 $ 18,268 $ (2,810 ) $ 15,458 ABS 22 3 $ 49,706 $ 17,269 $ 12,007 $ 29,276 RMBS 6 — $ 28,305 $ 4,575 $ 984 $ 5,559 (1) Realized gain (loss) includes the recognition of the fair values of the retained collateral management fee rebate of $2.3 million . The following table summarizes the Company's investment securities available-for-sale, including those pledged as collateral. ABS may include, but are not limited to the Company's investments in the Harvest CLOs, which are euro-denominated CLO investments backed by syndicated bank loans, other securities backed by syndicated corporate loans and other loan obligations. These securities are carried at fair value (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value (1) At December 31, 2017: CMBS $ 210,806 $ 1,947 $ (1,174 ) $ 211,579 ABS 259 — (101 ) 158 Total $ 211,065 $ 1,947 $ (1,275 ) $ 211,737 At December 31, 2016: CMBS $ 98,525 $ 425 $ (863 ) $ 98,087 ABS - structured notes 17,492 2,623 — 20,115 ABS 3,873 1,365 (73 ) 5,165 RMBS 1,526 77 (2 ) 1,601 Total $ 121,416 $ 4,490 $ (938 ) $ 124,968 (1) At December 31, 2017 and 2016 , $169.6 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 payoff dates of the Company's investment securities available-for-sale according to their estimated weighted average life classifications (in thousands, except percentages): December 31, 2017 December 31, 2016 Amortized Cost Fair Value Weighted Average Coupon Amortized Cost Fair Value Weighted Average Coupon Less than one year (1) $ 25,475 $ 25,275 5.55% $ 80,801 $ 80,325 5.60% Greater than one year and less than five years 126,273 127,104 4.65% 17,197 17,408 4.52% Greater than five years and less than ten years 59,317 59,358 3.53% 9,622 12,936 10.68% Greater than ten years — — —% 13,796 14,299 10.39% Total $ 211,065 $ 211,737 4.45% $ 121,416 $ 124,968 6.39% (1) The Company expects that the payoff 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 summarizes the fair value, gross unrealized losses and number of securities aggregated by investment category and the length of time that individual investment securities available-for-sale have been in a continuous unrealized loss position during the periods specified (in thousands, except number of securities): Less than 12 Months More than 12 Months Total Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized Number of At December 31, 2017: CMBS $ 49,016 $ (888 ) 12 $ 1,308 $ (286 ) 4 $ 50,324 $ (1,174 ) 16 ABS 158 (101 ) 1 — — — 158 (101 ) 1 Total temporarily impaired securities $ 49,174 $ (989 ) 13 $ 1,308 $ (286 ) 4 $ 50,482 $ (1,275 ) 17 At December 31, 2016: CMBS $ 30,869 $ (436 ) 10 $ 26,616 $ (427 ) 15 $ 57,485 $ (863 ) 25 ABS — — — 828 (73 ) 1 828 (73 ) 1 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 UNCONSOLIDATED45
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of equity method investments | The following table summarizes the Company's investments in unconsolidated entities at December 31, 2017 and 2016 and equity in earnings of unconsolidated entities for the years ended December 31, 2017 , 2016 and 2015 (in thousands, except percentages): Equity in Earnings (Losses) of Unconsolidated Entities Ownership % at December 31, 2017 December 31, Years Ended December 31, 2017 2016 2017 2016 2015 Varde Investment Partners, L.P —% $ — $ — $ — $ — $ (90 ) RRE VIP Borrower, LLC (1) —% — — 45 58 325 Investment in LCC Preferred Stock (2) —% — 42,960 41,465 943 2,601 Investment in CVC Global Credit Opportunities Fund (3) —% — — — — 8 RCM Global, LLC (4)(5) 63.2% — 465 (274 ) 14 — Pelium Capital Partners, L.P. (4)(6) 80.2% 10,503 25,993 (1,856 ) 3,991 — Pearlmark Mezz (7) —% — 16,953 165 968 (460 ) Investment in School Lane House (8) —% — — — (1 ) 4 Subtotal 10,503 86,371 39,545 5,973 2,388 Investment in RCT I and II (9) 3.0% 1,548 1,548 (2,687 ) (2,560 ) (2,421 ) Total $ 12,051 $ 87,919 $ 36,858 $ 3,413 $ (33 ) (1) The investment in RRE VIP Borrower, LLC ("RRE VIP Borrower") was sold in 2014. Earnings for the years ended December 31, 2017 , 2016 and 2015 are related to insurance premium and property tax refunds with respect to the underlying sold properties in the portfolio. (2) The Company's investment in LCC liquidated in July 2017 as a result of the sale of LCC. The $41.1 million gain recognized on the sale is included in equity in earnings of unconsolidated entities on the Company's consolidated statements of operations. (3) In December 2015, the Company redeemed its investment in the fund. (4) Pursuant to the new consolidation guidance adopted in January 2016, these previously consolidated VIEs are now accounted for under the equity method. (5) The Company had no carrying value on its investment in RCM Global at December 31, 2017 due to accumulated losses in excess of the investment's cost basis. (6) During the year ended December 31, 2017 , the Company received proceeds of $13.6 million related to the partial liquidation of its investment. (7) The Company sold its investment in Pearlmark Mezz in May 2017. (8) The Company's investment in School Lane House was sold in March 2014. (9) For the years ended December 31, 2017 , 2016 and 2015 , distributions from the trusts are recorded in interest expense on the Company's consolidated statements of operations as the investment is accounted for under the cost method |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 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 Outstanding Unamortized Outstanding Borrowings Weighted Average Weighted Average Value of At December 31, 2017: RCC 2015-CRE3 Senior Notes $ 85,788 $ 396 $ 85,392 4.50% 14.2 years $ 149,828 RCC 2015-CRE4 Senior Notes 90,883 407 90,476 3.65% 14.6 years 180,066 RCC 2017-CRE5 Senior Notes 244,280 3,493 240,787 2.51% 16.6 years 369,534 Unsecured Junior Subordinated Debentures 51,548 — 51,548 5.49% 18.7 years — 4.50% Convertible Senior Notes 143,750 16,626 127,124 4.50% 4.6 years — 6.00% Convertible Senior Notes 70,453 928 69,525 6.00% 335 days — 8.00% Convertible Senior Notes 21,182 466 20,716 8.00% 2.0 years — CRE - Term Repurchase Facilities (1) 292,511 1,013 291,498 3.82% 222 days 432,125 CMBS - Term Repurchase Facilities (2) 27,628 — 27,628 3.05% 121 days 38,060 Trust Certificates - Term Repurchase Facilities (3) 76,714 570 76,144 5.97% 2.1 years 214,375 CMBS - Short Term Repurchase Agreements (4) 82,647 — 82,647 2.79% 14 days 131,522 Total $ 1,187,384 $ 23,899 $ 1,163,485 4.00% 7.3 years $ 1,515,510 Principal Outstanding Unamortized Outstanding Borrowings Weighted Average Weighted Average Value of At December 31, 2016: RCC 2014-CRE2 Senior Notes $ 131,936 $ 1,871 $ 130,065 2.19% 15.3 years $ 250,255 RCC 2015-CRE3 Senior Notes 196,112 2,358 193,754 2.82% 15.2 years 259,889 RCC 2015-CRE4 Senior Notes 158,475 2,193 156,282 2.55% 15.6 years 247,414 Unsecured Junior Subordinated Debentures 51,548 — 51,548 4.89% 19.8 years — 6.00% Convertible Senior Notes 115,000 3,231 111,769 6.00% 1.9 years — 8.00% 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 $534,000 and $468,000 related to CRE term repurchase facilities at December 31, 2017 and 2016 , respectively. (2) Amounts also include accrued interest expense of $46,000 and $157,000 related to CMBS term repurchase facilities at December 31, 2017 and 2016 , respectively. (3) Amount also includes accrued interest expense of $203,000 and $69,000 related to trust certificate repurchase facilities at December 31, 2017 and 2016 , respectively. (4) Amounts also include accrued interest expense of $279,000 and $0 related to CMBS short term repurchase facilities at December 31, 2017 and 2016 , respectively. |
Schedule of securitizations | The following table sets forth certain information with respect to the Company's consolidated securitizations at December 31, 2017 : Securitization Closing Date Maturity Date End of Designated Principal Reinvestment Period (1) Total Note Paydowns Received from Closing Date through December 31, 2017 RCC 2015-CRE3 February 2015 March 2032 February 2017 $ 196,339 RCC 2015-CRE4 August 2015 August 2032 September 2017 $ 132,852 RCC 2017-CRE5 July 2017 July 2034 July 2020 $ 7,169 (1) The designated principal reinvestment period is the period where principal payments received by each respective securitization may be designated by the Company to purchase funding participations of existing collateral originally underwritten at the close of each securitization, which was funded outside of the deal structure. |
Repurchase and credit facilities | The following table sets forth certain information with respect to the Company's repurchase agreements (dollars in thousands): December 31, 2017 December 31, 2016 Outstanding (1) Value of Number of Weighted Average Outstanding (1) Value of Number of Weighted Average CRE - Term Repurchase Facilities Wells Fargo Bank (2) $ 179,347 $ 268,003 19 3.68% $ 215,283 $ 313,126 16 2.86% Morgan Stanley Bank (3) 112,151 164,122 9 4.05% 131,355 207,377 11 3.34% CMBS - Term Repurchase Facilities Wells Fargo Bank 12,272 14,984 8 2.45% 22,506 28,514 13 1.96% Deutsche Bank (4) 15,356 23,076 14 3.53% 55,981 86,643 23 3.04% Trust Certificates - Term Repurchase Facilities RSO Repo SPE Trust 2015 (5) 26,548 89,121 2 6.98% 26,385 89,181 2 6.21% RSO Repo SPE Trust 2017 (6) 49,596 125,254 2 5.43% — — — —% CMBS - Short-Term Repurchase Agreements RBC Capital Markets, LLC 72,131 97,745 6 2.77% — — — —% JP Morgan Securities LLC 10,516 33,777 2 2.93% — — — —% Totals $ 477,917 $ 816,082 $ 451,510 $ 724,841 (1) Outstanding borrowings includes accrued interest expense. (2) The Wells Fargo Bank, N.A. ("Wells Fargo") CRE term repurchase facility includes $565,000 and $1.6 million of deferred debt issuance costs at December 31, 2017 and 2016 , respectively. (3) The Morgan Stanley Bank, N.A. ("Morgan Stanley") CRE term repurchase facility includes $448,000 and $1.1 million of deferred debt issuance costs at December 31, 2017 and 2016 , respectively. (4) The Deutsche Bank Securities, Inc. ("Deutsche Bank") CMBS term repurchase facility includes no deferred debt issuance costs at December 31, 2017 and $16,000 of deferred debt issuance costs at December 31, 2016 . (5) The RSO Repo SPE Trust 2015 term repurchase facility includes $133,000 and $282,000 of deferred debt issuance costs at December 31, 2017 and 2016 , respectively. (6) The RSO Repo SPE Trust 2017 term repurchase facility includes $320,000 of deferred debt issuance costs at December 31, 2017 and no deferred debt issuance costs at December 31, 2016 . |
Schedule of amount at risk under credit facility | The following table shows information about the amount at risk under the repurchase facilities at December 31, 2017 (dollars in thousands): Amount at (1) Weighted Average Remaining Weighted Average At December 31, 2017: CRE - Term Repurchase Facilities Wells Fargo Bank, N. A. $ 89,213 202 days 3.68% Morgan Stanley Bank, N. A. $ 52,241 253 days 4.05% CMBS - Term Repurchase Facilities Wells Fargo Bank, National Association $ 2,737 90 days 2.45% Deutsche Bank, AG $ 7,862 145 days 3.53% Trust Certificates - Term Repurchase Facilities RSO Repo SPE Trust 2015 $ 62,514 324 days 6.98% RSO Repo SPE Trust 2017 $ 75,331 2.7 years 5.43% CMBS - Short-Term Repurchase Agreements RBC Capital Markets, LLC $ 25,813 9 days 2.77% JP Morgan Securities LLC $ 23,343 53 days 2.93% (1) Equal to the estimated fair value of securities or loans sold, plus interest receivable, minus the sum of repurchase agreement liabilities plus accrued interest expense. |
Contractual obligation | Contractual maturity dates of the Company's borrowings by category and year are presented in the table below (in thousands): Total 2018 2019 2020 2021 2022 and Thereafter At December 31, 2017: CRE securitizations $ 416,655 $ — $ — $ — $ — $ 416,655 Unsecured junior subordinated debentures 51,548 — — — — 51,548 4.50% Convertible Senior Notes 127,124 — — — — 127,124 6.00% Convertible Senior Notes 69,525 69,525 — — — — 8.00% Convertible Senior Notes 20,716 — — 20,716 — — Repurchase and credit facilities 477,917 428,321 — 49,596 — — Total $ 1,163,485 $ 497,846 $ — $ 70,312 $ — $ 595,327 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 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 37,492 321,789 12,019 371,300 Vested (25,948 ) (182,511 ) (53,205 ) (261,664 ) Forfeited (4,299 ) (20,902 ) (1,412 ) (26,613 ) Unvested shares at December 31, 2017 34,565 419,862 28,646 483,073 (1) Non-employees are employees of C-III and Resource America |
Schedule of restricted stock granted | The following table summarizes restricted common stock grants during the year ended December 31, 2017 : Date Shares Vesting per Year Vesting Date(s) January 25, 2017 333,808 33.3% January 25, 2018, January 25, 2019 and January 25, 2020 February 1, 2017 4,242 100% February 1, 2018 March 8, 2017 18,450 100% March 8, 2018 March 13, 2017 4,299 100% March 13, 2018 June 1, 2017 3,575 100% June 1, 2018 June 6, 2017 3,680 100% June 6, 2018 September 29, 2017 3,246 100% September 29, 2018 |
Summary of stock option transactions | The following table summarizes the status of the Company's vested stock options at December 31, 2017 : Vested Options Number of Options Weighted Average Exercise Price Weighted Average Remaining Aggregate Intrinsic Value (in thousands) Vested at January 1, 2017 26,250 $ 46.60 Vested — $ — Exercised — $ — Forfeited — $ — Expired (16,250 ) $ 59.52 Vested at December 31, 2017 10,000 $ 25.60 3.38 $ — |
Summary of share based compensation expense | The components of equity compensation expense for the periods presented are as follows (in thousands): Years Ended December 31, 2017 2016 2015 Restricted shares granted to non-employees (1)(2) $ 2,456 $ 2,758 $ 2,163 Restricted shares granted to non-employee directors 282 267 257 Total equity compensation expense (3) $ 2,738 $ 3,025 $ 2,420 (1) Non-employees are employees of C-III and Resource America. (2) Amounts include $691,000 of equity compensation expense, for the year ended December 31, 2016, associated with the accelerated stock vesting of former executives of the Company. (3) Amounts exclude equity compensation expense for employees of the Company's subsidiary PCM, which is included in net income (loss) from discontinued operations, net of tax. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 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 (loss) per share for the periods presented as follows (in thousands, except share and per share amounts): Years Ended December 31, 2017 2016 2015 Net income (loss) from continuing operations $ 47,457 $ (11,334 ) $ 11,079 Net income allocated to preferred shares (24,057 ) (24,091 ) (24,437 ) Carrying value (less than) in excess of consideration paid for preferred shares (3,803 ) 1,500 — Net loss (income) allocable to non-controlling interest, net of taxes 196 229 (6,628 ) Net income (loss) from continuing operations allocable to common shares 19,793 (33,696 ) (19,986 ) Net (loss) income from discontinued operations, net of tax (14,116 ) (19,260 ) 6,104 Net income (loss) allocable to common shares $ 5,677 $ (52,956 ) $ (13,882 ) Net income (loss) per common share - basic Weighted average number of shares outstanding 30,836,400 30,539,369 32,280,319 Continuing operations $ 0.64 $ (1.10 ) $ (0.62 ) Discontinued operations (0.46 ) (0.63 ) 0.19 Net income (loss) per common share - basic $ 0.18 $ (1.73 ) $ (0.43 ) Net income (loss) per common share - diluted: Weighted average number of shares outstanding 30,836,400 30,539,369 32,280,319 Additional shares due to assumed conversion of dilutive instruments 239,387 — — Adjusted weighted-average number of common shares outstanding 31,075,787 30,539,369 32,280,319 Continuing operations $ 0.64 $ (1.10 ) $ (0.62 ) Discontinued operations (0.46 ) (0.63 ) 0.19 Net income (loss) per common share - diluted $ 0.18 $ (1.73 ) $ (0.43 ) Potentially dilutive shares excluded from calculation due to anti-dilutive effect (1) 11,238,408 9,002,864 9,002,864 (1) Potentially dilutive shares issuable in connection with the potential conversion of the Company's 4.50% Convertible Senior Notes, 6.00% Convertible Senior Notes and 8.00% Convertible Senior Notes ( see Note 11 ) were not included in the calculation of diluted net income (loss) per share because the effect would be anti-dilutive. |
ACCUMULATED OTHER COMPREHENSI49
ACCUMULATED OTHER COMPREHENSIVE (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of components of accumulated other comprehensive income (loss) | The following table presents the changes in each component of accumulated other comprehensive income (loss) for the year ended December 31, 2017 (in thousands): Net unrealized (loss) gain on derivatives Net unrealized (loss) gain on investment securities Accumulated other comprehensive income (loss) Balance at January 1, 2017 $ (18 ) $ 3,099 $ 3,081 Other comprehensive gain (loss) before reclassifications (net of taxes of $512) 602 (1,870 ) (1,268 ) Amounts reclassified from accumulated other comprehensive income (1) 18 (534 ) (516 ) Balance at December 31, 2017 $ 602 $ 695 $ 1,297 (1) Amounts reclassified from accumulated other comprehensive income are reclassified to net realized an unrealized gain on investment securities available-for-sale and loans and derivatives on the Company's consolidated statements of operations. |
DISTRIBUTIONS (Tables)
DISTRIBUTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
DISTRIBUTIONS [Abstract] | |
Dividends declared | The following tables present dividends declared (on a per share basis) for the years ended December 31, 2017 , 2016 and 2015 : Common Stock Date Paid Total Dividend (in thousands) 2017 March 31 April 27 $ 1,568 $ 0.05 June 30 July 28 $ 1,567 $ 0.05 September 30 October 27 $ 1,566 $ 0.05 December 31 January 26, 2018 $ 1,572 $ 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 2015 March 31 April 28 $ 21,444 $ 0.64 June 30 July 28 $ 21,426 $ 0.64 September 30 October 28 $ 20,667 $ 0.64 December 31 January 28, 2016 $ 13,274 $ 0.42 Series A Preferred Stock Series B Preferred Stock Series C Preferred Stock 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 June 30 July 31 $ 568 $ 0.531250 July 31 $ 2,859 $ 0.515625 July 31 $ 2,588 $ 0.539063 September 30 October 30 $ 568 $ 0.531250 October 30 $ 2,859 $ 0.515625 October 30 $ 2,588 $ 0.539063 December 31 January 30, 2018 $ 568 $ 0.531250 January 30, 2018 $ 2,859 $ 0.515625 January 30, 2018 $ 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 2015 March 31 April 30 $ 568 $ 0.531250 April 30 $ 2,960 $ 0.515625 April 30 $ 2,588 $ 0.539063 June 30 July 30 $ 568 $ 0.531250 July 30 $ 2,960 $ 0.515625 July 30 $ 2,588 $ 0.539063 September 30 October 30 $ 568 $ 0.531250 October 30 $ 2,960 $ 0.515625 October 30 $ 2,588 $ 0.539063 December 31 February 1, 2016 $ 568 $ 0.531250 February 1, 2016 $ 2,960 $ 0.515625 February 1, 2016 $ 2,588 $ 0.539063 |
FAIR VALUE OF FINANCIAL INSTR51
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value assets and liabilities measured on recurring basis | The following table presents the Company's financial instruments carried at fair value on a recurring basis based upon the fair value hierarchy (in thousands): Level 1 Level 2 Level 3 Total At December 31, 2017: Assets: Investment securities available-for-sale $ — $ — $ 211,737 $ 211,737 Investment securities, trading — — 178 178 Loans held for sale — — 13 13 Derivatives — 602 — 602 Total assets at fair value $ — $ 602 $ 211,928 $ 212,530 Liabilities: Derivatives $ — $ 76 $ — $ 76 Total liabilities at fair value $ — $ 76 $ — $ 76 At December 31, 2016: Assets: Investment securities available-for-sale $ — $ — $ 124,968 $ 124,968 Investment securities, trading — 369 4,123 4,492 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 the Company's assets that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs (in thousands): CMBS RMBS ABS Structured Notes Loans Held for Sale Total Balance, January 1, 2017 $ 98,087 $ 1,601 $ 25,280 $ 4,123 $ 220 $ 129,311 Included in earnings (1) 562 (158 ) 3,532 170 112 4,218 Purchases/originations 171,929 — — — — 171,929 Sales (6,390 ) (1,111 ) (23,168 ) — — (30,669 ) Paydowns (53,819 ) (256 ) (2,833 ) (4,115 ) (319 ) (61,342 ) Capitalized interest — — 1,362 — — 1,362 Included in OCI 1,210 (76 ) (4,015 ) — — (2,881 ) Balance, December 31, 2017 $ 211,579 $ — $ 158 $ 178 $ 13 $ 211,928 (1) For structured notes classified as Level 3 at December 31, 2017 , the Company recorded changes in unrealized losses of $ 963,000 for the year ended December 31, 2017 , in net realized and unrealized (loss) gain on investment securities, trading on the consolidated statements of operations. For loans held for sale classified as Level 3 at December 31, 2017 , the Company recorded changes in unrealized gains of $111,000 for the year ended December 31, 2017 , in fair value adjustments on assets held for sale on the consolidated statements of operations. |
Fair value assets and liabilities measured on nonrecurring basis | The following table summarizes the Company's financial instruments measured at fair value on a nonrecurring basis based upon the fair value hierarchy (in thousands): Level 1 Level 2 Level 3 Total At December 31, 2017: Assets : Legacy CRE whole loans held for sale $ — $ — $ 22,500 $ 22,500 Impaired loans — — 4,500 4,500 Total assets at fair value $ — $ — $ 27,000 $ 27,000 Liabilities: Pearlmark Mezz indemnification $ — $ — $ 703 $ 703 Total liabilities at fair value $ — $ — $ 703 $ 703 At December 31, 2016: Assets : Legacy CRE whole loans held for sale $ — $ — $ 158,178 $ 158,178 Impaired loans — — 4,500 4,500 Total assets at fair value $ — $ — $ 162,678 $ 162,678 |
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 Value Fair Value Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At December 31, 2017: Assets: Loans held for investment $ 1,284,822 $ 1,294,664 $ — $ — $ 1,294,664 Legacy CRE whole loans held for sale $ 61,841 $ 62,841 $ — $ — $ 62,841 Liabilities: Senior notes in CRE Securitizations $ 416,655 $ 420,084 $ — $ — $ 420,084 Junior subordinated notes $ 51,548 $ 26,574 $ — $ — $ 26,574 Convertible senior notes $ 217,365 $ 235,385 $ — $ — $ 235,385 Repurchase agreements $ 477,917 $ 479,383 $ — $ — $ 479,383 At December 31, 2016: Assets: Loans held for investment $ 1,286,278 $ 1,292,099 $ — $ — $ 1,292,099 Liabilities: Senior notes in CRE Securitizations $ 480,101 $ 486,524 $ — $ — $ 486,524 Junior subordinated notes $ 51,548 $ 27,246 $ — $ — $ 27,246 Convertible senior notes $ 208,297 $ 215,000 $ — $ — $ 215,000 Repurchase agreements $ 451,510 $ 453,794 $ — $ — $ 453,794 |
MARKET RISK AND DERIVATIVE IN52
MARKET RISK AND DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 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 years presented: Fair Value of Derivative Instruments at December 31, 2017 (in thousands) Asset Derivatives Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging (1) $ 41,750 Derivatives, at fair value $ 602 Liability Derivatives Notional Amount Consolidated Balance Sheets Location Fair Value Forward contracts - foreign currency, hedging (2)(3) $ 3,602 Derivatives, at fair value $ 76 Interest rate swap contracts, hedging $ 41,750 Accumulated other comprehensive income $ 602 (1) Interest rate swap contracts are accounted for as cash flow hedges. (2) Foreign currency forward contracts are accounted for as fair value hedges. (3) Notional amount presented is translated on a currency converted basis. The base currency notional amount of the Company's foreign currency hedging forward contracts in a liability position was €3.0 million at December 31, 2017 . Fair Value of Derivative Instruments at December 31, 2016 (in thousands) Asset Derivatives Notional Amount Consolidated Balance Sheets Location Fair Value Forward contracts - foreign currency, hedging (1)(2) $ 12,489 Derivatives, at fair value $ 647 Liability Derivatives Notional Amount Consolidated Balance Sheets Location Fair Value Forward contracts - foreign currency, hedging (1)(2) $ 11,700 Derivatives, at fair value $ 97 Interest rate swap contracts, hedging $ — Accumulated other comprehensive income $ (18 ) (1) Foreign currency forward contracts are accounted for as fair value hedges. (2) Notional amount presented is translated on a 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 . 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 Year Ended December 31, 2017 (in thousands) Derivatives Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (130 ) Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on investment securities available-for-sale and loans and derivatives $ (1,896 ) (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 Year Ended December 31, 2016 (in thousands) Derivatives Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (119 ) Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on investment securities available-for-sale and loans and derivatives $ 764 (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 Year Ended December 31, 2015 (in thousands) Derivatives Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (6,098 ) Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on investment securities available-for-sale and loans and derivatives $ 2,925 Options - U.S. Treasury futures Net realized and unrealized gain (loss) on investment securities available-for-sale and loans and derivatives $ 184 (1) Negative values indicate a decrease to the associated consolidated statements of operations line items. |
OFFSETTING OF FINANCIAL ASSET53
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Offsetting [Abstract] | |
Schedule of offsetting financial liabilities and derivative liabilities | The following table presents a summary of the Company's offsetting of derivative assets (in thousands): (i) (ii) (iii) = (i) - (ii) (iv) Financial Instruments Cash Collateral Pledged (v) = (iii) - (iv) At December 31, 2017: Derivatives, at fair value (1) $ 602 $ — $ 602 $ — $ — $ 602 At December 31, 2016: Derivatives, at fair value $ 647 $ — $ 647 $ — $ — $ 647 (1) The Company posted cash margin of $1.9 million related to interest rate swap contracts entered into at December 31, 2017 . The following table presents a summary of the Company's offsetting of financial liabilities and derivative liabilities (in thousands): (i) (ii) (iii) = (i) - (ii) (iv) (v) = (iii) - (iv) Financial (1) Cash Collateral Pledged At December 31, 2017: Derivatives, at fair value $ 76 $ — $ 76 $ — $ — $ 76 Repurchase agreements and term facilities (2) 477,917 — 477,917 477,917 — — Total $ 477,993 $ — $ 477,993 $ 477,917 $ — $ 76 At December 31, 2016: Derivatives, at fair value $ 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 financial instruments pledged that are 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 repurchase agreements and term facilities was $816.1 million and $724.8 million at December 31, 2017 and 2016 , respectively. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of income taxes | The following table details the components of income taxes (in thousands): Years Ended December 31, 2017 2016 2015 Income tax expense (benefit): Current: Federal $ 994 $ 1,733 $ 1,705 State 856 966 430 Total current 1,850 2,699 2,135 Deferred: Federal 3,475 6,707 (423 ) State 1,288 1,586 (358 ) Total deferred 4,763 8,293 (781 ) Income tax expense (benefit) $ 6,613 $ 10,992 $ 1,354 |
Reconciliation between federal statutory income tax rate and effective income tax rate | A reconciliation of the income tax expense (benefit) based upon the statutory tax rate to the effective income tax rate is as follows for the periods presented (in thousands): Years Ended December 31, 2017 2016 2015 Income tax expense (benefit) Statutory tax $ 9,301 $ (1,103 ) $ 945 State and local taxes, net of federal benefit 1,415 1,005 (271 ) Permanent adjustments 37 — 149 True-up of prior period tax expense (2,010 ) (256 ) 530 Valuation allowance (2,203 ) 11,294 — Tax reform 4,918 — — Tax reform - valuation allowance (4,918 ) — — Other items 73 52 1 Income tax expense (benefit) $ 6,613 $ 10,992 $ 1,354 |
Components of deferred tax assets and liabilities | The components of deferred tax assets and liabilities are as follows (in thousands): December 31, 2017 2016 Deferred tax assets related to: Federal, state and local loss carryforwards $ 2,261 $ 7,933 Reserve on MSR valuation — 237 Accrued expenses 393 118 Amortization of intangibles 416 — Unrealized gains (losses) 1,702 1,673 CLCO carryforwards — 5,680 Partnership investment 5,301 2,902 Total deferred tax assets 10,073 18,543 Valuation allowance (9,927 ) (11,294 ) Total deferred tax assets, net of valuation allowance $ 146 $ 7,249 Deferred tax liabilities related to: Amortization of intangibles $ — $ (1,589 ) Investment in securities (89 ) (1,320 ) Depreciation (57 ) (85 ) Total deferred tax liabilities $ (146 ) $ (2,994 ) Deferred tax assets, net $ — $ 4,255 |
QUARTERLY RESULTS (Tables)
QUARTERLY RESULTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly results of operations | The following is a presentation of the quarterly results of operations: March 31 June 30 September 30 December 31 (unaudited) (unaudited) (unaudited) (unaudited) (in thousands, except per share data) Year Ended December 31, 2017: Interest income (1) $ 25,471 $ 23,635 $ 23,983 $ 26,229 Interest expense (1) 14,254 14,347 13,853 15,203 Net interest income $ 11,217 $ 9,288 $ 10,130 $ 11,026 Net income from continuing operations $ 9,174 $ 12,568 $ 24,745 $ 970 Net loss from discontinued operations (561 ) (4,184 ) (6,087 ) (3,284 ) Net income (loss) 8,613 8,384 18,658 (2,314 ) Net income allocated to preferred shares (6,014 ) (6,015 ) (6,014 ) (6,014 ) Carrying value less than consideration paid for preferred shares — — — (3,803 ) Net loss allocable to non-controlling interest, net of taxes 101 95 — — Net income (loss) allocable to common shares $ 2,700 $ 2,464 $ 12,644 $ (12,131 ) Net income (loss) per common share from continuing operations - basic $ 0.11 $ 0.22 $ 0.61 $ (0.28 ) Net loss per common share from discontinued operations - basic (0.02 ) (0.14 ) (0.20 ) (0.11 ) Total net income (loss) per common share - basic $ 0.09 $ 0.08 $ 0.41 $ (0.39 ) Net income (loss) per common share from continuing operations - diluted $ 0.11 $ 0.22 $ 0.61 $ (0.28 ) Net loss per common share from discontinued operations - diluted (0.02 ) (0.14 ) (0.20 ) (0.11 ) Total net income (loss) per common share - diluted $ 0.09 $ 0.08 $ 0.41 $ (0.39 ) March 31 June 30 September 30 December 31 (unaudited) (unaudited) (unaudited) (unaudited) (in thousands, except per share data) Year Ended December 31, 2016: Interest income (1) $ 27,016 $ 28,408 $ 27,107 $ 30,087 Interest expense (1) 13,302 13,446 13,653 13,346 Net interest income $ 13,714 $ 14,962 $ 13,454 $ 16,741 Net income (loss) from continuing operations $ 8,852 $ 10,908 $ (34,300 ) $ 3,206 Net income (loss) from discontinued operations 5,168 (6,379 ) (11,321 ) (6,728 ) Net income (loss) 14,020 4,529 (45,621 ) (3,522 ) Net income allocated to preferred shares (6,048 ) (6,014 ) (6,015 ) (6,014 ) Carrying value in excess of consideration paid for preferred shares 1,611 (111 ) — — Net loss allocable to non-controlling interest, net of taxes 90 60 63 16 Net income (loss) allocable to common shares $ 9,673 $ (1,536 ) $ (51,573 ) $ (9,520 ) Net income (loss) per common share from continuing operations - basic $ 0.15 $ 0.16 $ (1.32 ) $ (0.09 ) Net income (loss) per common share from discontinued operations - basic 0.17 (0.21 ) (0.37 ) (0.22 ) Total net income (loss) per common share - basic $ 0.32 $ (0.05 ) $ (1.69 ) $ (0.31 ) Net income (loss) per common share from continuing operations - diluted $ 0.15 $ 0.16 $ (1.32 ) $ (0.09 ) Net income (loss) per common share from discontinued operations - diluted 0.17 (0.21 ) (0.37 ) (0.22 ) Total net income (loss) per common share - diluted $ 0.32 $ (0.05 ) $ (1.69 ) $ (0.31 ) (1) Certain reclassifications have been made to the 2017 and 2016 consolidated financial statements, including the impact of discontinued operations. |
DISCONTINUED OPERATIONS AND A56
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal groups, including discontinued operations | The assets and liabilities of business segments classified as discontinued operations and other assets and liabilities classified as held for sale are reported separately in the accompanying consolidated financial statements and are summarized as follows at December 31, 2017 and 2016 (in thousands): December 31, 2017 2016 ASSETS Restricted cash $ 138 $ 145 Interest receivable 67 305 Loans held for sale 93,063 346,761 Property available for sale — 125 Derivatives, at fair value — 3,773 Intangible assets (1) — 14,466 Other assets (2) 14,450 17,880 Total assets held for sale $ 107,718 $ 383,455 LIABILITIES Accounts payable and other liabilities $ 10,283 $ 8,404 Management fee payable - related party 56 132 Accrued interest expense 3 203 Borrowings (3) — 133,139 Derivatives, at fair value — 685 Total liabilities held for sale $ 10,342 $ 142,563 (1) Includes MSRs with a fair value of $14.4 million at December 31, 2016 . There were no MSRs remaining at December 31, 2017 . MSRs are recorded at fair value using a discounted cash flow model, calculated by 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 $5.1 million and $5.8 million at December 31, 2017 and 2016 , respectively, which were transferred to held for sale in the fourth quarter of 2016 . (3) Borrowings at December 31, 2016 are entirely related to PCM. There were no borrowings at December 31, 2017 . The following table summarizes the operating results of the residential mortgage and middle market lending segments discontinued operations as reported separately as income (loss) from discontinued operations, net of tax for the years ended December 31, 2017 , 2016 and 2015 (in thousands): Years Ended December 31, 2017 2016 2015 REVENUES Interest income: Loans $ 3,319 $ 25,325 $ 31,248 Other 107 50 7 Total interest income 3,426 25,375 31,255 Interest expense — 6,181 5,785 Net interest income 3,426 19,194 25,470 Gain (loss) on sale of residential mortgage loans 2,833 19,061 13,675 Fee income 3,507 1,221 2,617 Total revenues 9,766 39,476 41,762 OPERATING EXPENSES Equity compensation expense - related party 433 939 725 General and administrative 23,717 30,570 25,349 Depreciation and amortization — 563 613 Provision for loan loss — 12,989 8,801 Total operating expenses 24,150 45,061 35,488 (14,384 ) (5,585 ) 6,274 OTHER INCOME (EXPENSE) Net realized and unrealized gain (loss) on investment securities available-for-sale and loans 145 (11,850 ) 221 Fair value adjustments on financial assets held for sale 123 — — Total other income (expense) 268 (11,850 ) 221 (LOSS) INCOME FROM DISCONTINUED OPERATIONS BEFORE TAXES (14,116 ) (17,435 ) 6,495 Income tax expense — — (391 ) NET (LOSS) INCOME FROM DISCONTINUED OPERATIONS, NET OF TAXES (14,116 ) (17,435 ) 6,104 Loss from disposal of discontinued operations — (1,825 ) — TOTAL (LOSS) INCOME FROM DISCONTINUED OPERATIONS $ (14,116 ) $ (19,260 ) $ 6,104 |
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 (in thousands, except quantities): Loan Description Number of Loans Amortized Cost Carrying At December 31, 2017: Legacy CRE whole loans 5 $ 63,783 $ 61,841 Mezzanine loans (2) 1 — — Middle market loans (3) 5 41,199 29,308 Residential mortgage loans (5)(6) 14 1,914 1,914 Total loans held for sale 25 $ 106,896 $ 93,063 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 held for sale 545 $ 358,714 $ 346,761 (1) Third party appraisals were obtained on six of the Legacy CRE whole loans at December 31, 2016 and, as a result, specific provisions of $8.1 million were recorded during the year ended December 31, 2016 prior to the loans being reclassified to held for sale status. Additional provisions in the amount of $7.7 million were recorded during the year ended December 31, 2016 after the transfer of loans to held for sale to adjust the loans to the lower of cost or market. (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 CDO 2007-1 in November 2016. The mezzanine loan is comprised of two trances, with maturity dates of November 2018 and September 2021. (3) Includes a directly originated middle market loan with fair values of $2.0 million and $1.9 million at December 31, 2017 and 2016 , respectively. In May 2017, the loan experienced payment default. In July 2017, the loan was amended to allow an extension for the borrower to seek a sale of its business. The loan's fair value was supported by a third party valuation market prepared at December 31, 2017 . (4) At December 31, 2016 , 24.4% , 17.2% , 17.1% , 14.2% , 12.5% , 9.8% and 4.8% of the Company's middle market loans are concentrated in the healthcare, education and childcare, diversified/conglomerate service, insurance, beverage, food and tobacco, buildings and real estate and hotels, motels, inns and gaming industry groupings, respectively. (5) The fair value option was elected for residential mortgage loans held for sale. (6) The Company's residential mortgage loan portfolio is comprised of both agency loans and non-agency jumbo loans. The fair values of the agency loan portfolio are generally classified as Level 2 in the fair value hierarchy, as those values are determined based on quoted market prices for similar assets or upon other observable inputs. The fair values of the jumbo loan portfolio are generally classified as Level 3 in the fair value hierarchy, as those values are generally based upon valuation techniques that utilize unobservable inputs that reflect the assumptions that a market participant would use in pricing those assets. (7) At December 31, 2016 , approximately 39.2% , 16.2% , 14.6% , 5.9% and 5.9% of the Company's residential mortgage loans were originated in Georgia, California, Utah, Virginia and Florida, respectively, based on amortized cost. |
ORGANIZATION (Details)
ORGANIZATION (Details) | 1 Months Ended | 12 Months Ended | |
May 31, 2013 | Dec. 31, 2017 | Sep. 30, 2014 | |
Pelium Capital Partners, L.P. | |||
Variable Interest Entity [Line Items] | |||
Ownership percentage | 80.20% | 80.40% | |
Resource America | |||
Variable Interest Entity [Line Items] | |||
Ownership percentage | 2.40% | ||
Resource America | CVC Credit Partners, LLC | |||
Variable Interest Entity [Line Items] | |||
Ownership percentage in VIE | 24.00% | ||
RCC Real Estate | Resource Real Estate Funding CDO 2006-1 | |||
Variable Interest Entity [Line Items] | |||
Ownership percentage in VIE | 100.00% | ||
RCC Real Estate | Resource Real Estate Funding CDO 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 | Resource Capital Corp. 2015-CRE4, Ltd. | |||
Variable Interest Entity [Line Items] | |||
Ownership percentage in VIE | 100.00% | ||
RCC Commercial | Northport 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% | ||
NEW NP, LLC | Northport TRS, LLC | |||
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% | 68.30% | |
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% | ||
RCC Residential, Inc. | RCM Global LLC | |||
Variable Interest Entity [Line Items] | |||
Ownership percentage in VIE | 63.20% | ||
RCC Residential, Inc. | Long Term Care Conversion Funding, LLC | |||
Variable Interest Entity [Line Items] | |||
Ownership percentage in VIE | 100.00% | ||
RCC Depositor, LLC | RCC Residential Acquisition, LLC | |||
Variable Interest Entity [Line Items] | |||
Ownership percentage in VIE | 100.00% | ||
Resource TRS, Inc | Pelium Capital Partners, L.P. | |||
Variable Interest Entity [Line Items] | |||
Ownership percentage | 80.20% | ||
Resource TRS, Inc | Northport LLC | |||
Variable Interest Entity [Line Items] | |||
Ownership percentage in VIE | 44.60% | ||
Resource TRS, Inc | Resource TRS, LLC | |||
Variable Interest Entity [Line Items] | |||
Ownership percentage in VIE | 100.00% | ||
Resource TRS, LLC | Northport LLC | |||
Variable Interest Entity [Line Items] | |||
Ownership percentage in VIE | 25.80% |
SUMMARY OF SIGNIFICANT ACCOUN58
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ / shares in Units, $ in Thousands | Aug. 31, 2015 | Dec. 31, 2017USD ($)Director$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Property, Plant and Equipment [Line Items] | |||||||
Stock split conversion ratio | 0.25 | ||||||
Common stock, shares authorized (in shares) | shares | 125,000,000 | 125,000,000 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||||
Preferred stock, shares authorized (in shares) | shares | 100,000,000 | ||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | ||||||
Cash and cash equivalents | $ 181,490 | [1] | $ 116,026 | [1] | $ 78,756 | $ 79,905 | |
Impairment charges | 177 | 3,700 | $ 2,400 | ||||
Operating loss carryforwards, valuation allowance | 37,000 | ||||||
Operating loss carryforwards, valuation allowance, tax expense impact | $ 9,900 | ||||||
Number of non-executive directors granted shares | Director | 8 | ||||||
Commercial Real Estate Loans | Rating 3 | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Financing receivable, allowance for credit losses, percentage of aggregate par amount of loans | 1.50% | ||||||
Commercial Real Estate Loans | Rating 4 | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Financing receivable, allowance for credit losses, percentage of aggregate carrying amount of loans | 5.00% | ||||||
Prime Brokerage Account | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Cash and cash equivalents | $ 177,500 | $ 111,600 | |||||
[1] | December 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $— Restricted cash$20,846 $3,308 Investments securities available-for-sale, pledged as collateral, at fair value— 369 Loans held for sale13 1,007Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million603,110 747,726 Interest receivable3,347 3,153 Principal paydown receivable72,207 5,820 Other assets73 58 Total assets of consolidated VIEs$699,596 $761,441 |
VARIABLE INTEREST ENTITIES - Co
VARIABLE INTEREST ENTITIES - Consolidated VIEs (the Company is the primary beneficiary) (Details) | 12 Months Ended | 14 Months Ended | ||||
Dec. 31, 2017USD ($)Entity | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($)Entity | Nov. 30, 2016USD ($)SecurityLoan | Jan. 01, 2016Entity | |
Variable Interest Entity [Line Items] | ||||||
Proceeds from sale of investment securities available-for-sale | $ 40,048,000 | $ 2,818,000 | $ 65,787,000 | |||
VIE, Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of consolidated VIEs | Entity | 7 | 7 | 5 | |||
Financial support, amount | $ 0 | |||||
Apidos Cinco | ||||||
Variable Interest Entity [Line Items] | ||||||
Available-for-sale securities, intended for sale, number of securities | Security | 1 | |||||
Number of loans | Loan | 3 | |||||
Aggregate fair value of syndicated corporate loans | $ 2,300,000 | |||||
Proceeds from sale of investment securities available-for-sale | $ 22,400,000 |
VARIABLE INTEREST ENTITIES - Un
VARIABLE INTEREST ENTITIES - Unconsolidated VIEs (the Company is not the primary beneficiary, but has a variable interest) (Details) | Feb. 01, 2015USD ($) | Oct. 31, 2017USD ($) | Jul. 31, 2017USD ($) | May 31, 2017USD ($) | Nov. 30, 2016USD ($) | Jun. 30, 2016 | Apr. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Jul. 31, 2014USD ($) | Dec. 31, 2017USD ($)Position | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2017USD ($) | Nov. 30, 2011Position | Feb. 28, 2011Entity | |
Variable Interest Entity [Line Items] | |||||||||||||||||
Proceeds from sale of investment securities available-for-sale | $ 40,048,000 | $ 2,818,000 | $ 65,787,000 | ||||||||||||||
Investments in unconsolidated entities | [1] | 12,051,000 | 87,919,000 | ||||||||||||||
Borrowings | [2] | $ 1,163,485,000 | 1,191,456,000 | ||||||||||||||
Resource America | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Payments to acquire additional interest | $ 2,800,000 | ||||||||||||||||
RCM Global LLC | RCC Residential, Inc. | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Ownership percentage in VIE | 63.20% | ||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Private-label securitization | $ (18,303,000) | ||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | LCC | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Variable interest entity, number of board positions held by the company | Position | 2 | ||||||||||||||||
Variable interest entity, total number of board positions | Position | 6 | ||||||||||||||||
Proceeds from sale of equity interest | $ 84,300,000 | ||||||||||||||||
Gain on disposition of stock | $ 41,100,000 | ||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Interest in RCT I and RCT II | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Ownership percentage in VIE | 100.00% | ||||||||||||||||
Investments in unconsolidated entities | $ 1,500,000 | ||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Interest in RCT I | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Investments in unconsolidated entities | $ 774,000 | ||||||||||||||||
Percentage of total value of trusts owned | 3.00% | ||||||||||||||||
Borrowings | $ 25,800,000 | ||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Interest in RCT II | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Investments in unconsolidated entities | $ 774,000 | ||||||||||||||||
Percentage of total value of trusts owned | 3.00% | ||||||||||||||||
Borrowings | $ 25,800,000 | ||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Management Contracts | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Number of CLOs held by purchased entity | Entity | 5 | ||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Wells Fargo Commercial Mortgage Trust 2017-C40 | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Ownership percentage in VIE | 95.00% | ||||||||||||||||
Private-label securitization | $ 705,400,000 | 21,194,000 | |||||||||||||||
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% | ||||||||||||||||
Carrying value of investments | $ 0 | ||||||||||||||||
Pelium Capital Partners, L.P. | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Acquisition of membership interests | $ 17,500,000 | ||||||||||||||||
Ownership percentage | 80.40% | 80.20% | |||||||||||||||
Carrying value of investments | $ 10,500,000 | 26,000,000 | |||||||||||||||
Payments to acquire additional interest | $ 2,500,000 | $ 2,500,000 | |||||||||||||||
Ownership interest | 10.00% | ||||||||||||||||
Investments in unconsolidated entities | $ 10,503,000 | 25,993,000 | |||||||||||||||
Pearlmark Mezz | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Realized gain (loss) on investments | $ (345,000) | ||||||||||||||||
Ownership percentage | 0.00% | ||||||||||||||||
Other commitment | $ 50,000,000 | ||||||||||||||||
Management fee, committed capital, percent fee | 1.00% | ||||||||||||||||
Management fee, invested capital, percent fee | 1.50% | ||||||||||||||||
Rebate, percentage | 25.00% | 25.00% | |||||||||||||||
Proceeds from sale of investment securities available-for-sale | 16,200,000 | ||||||||||||||||
Proceeds from sale of equity interest | $ 16,200,000 | ||||||||||||||||
Investments in unconsolidated entities | $ 0 | $ 16,953,000 | |||||||||||||||
Pearlmark Mezz | Resource America | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Ownership percentage in VIE | 50.00% | ||||||||||||||||
Resource Real Estate Funding CDO 2006-1 | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Value of collateral | $ 65,700,000 | ||||||||||||||||
Debt Instrument, collateral amount | 7,500,000 | ||||||||||||||||
Realized gain (loss) on investments | $ 846,000 | ||||||||||||||||
Resource Real Estate Funding CDO 2007-1 | |||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||
Value of collateral | $ 130,900,000 | ||||||||||||||||
Debt Instrument, collateral amount | 33,700,000 | ||||||||||||||||
Realized gain (loss) on investments | $ 2,100,000 | ||||||||||||||||
[1] | December 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $— Restricted cash$20,846 $3,308 Investments securities available-for-sale, pledged as collateral, at fair value— 369 Loans held for sale13 1,007Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million603,110 747,726 Interest receivable3,347 3,153 Principal paydown receivable72,207 5,820 Other assets73 58 Total assets of consolidated VIEs$699,596 $761,441 | ||||||||||||||||
[2] | December 31, 2017 December 31, 2016Liabilities of consolidated VIEs included in the total liabilities above: Borrowings$416,655 $480,103 Accrued interest expense592 519 Derivatives, at fair value— — Unsettled loan purchases— — Accounts payable and other liabilities96 133 Total liabilities of consolidated VIEs$417,343 $480,755 |
VARIABLE INTEREST ENTITIES (Sch
VARIABLE INTEREST ENTITIES (Schedule of Carrying Value of Assets and Liabilities of Consolidated VIEs) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Restricted cash | $ 20,846 | $ 3,308 |
Interest receivable | 3,347 | 3,153 |
CRE loans, pledged as collateral | 603,110 | 747,726 |
Loans held for sale | 13 | 1,007 |
Principal paydowns receivable | 72,207 | 5,820 |
Other assets | 73 | 58 |
Total assets of consolidated VIEs | 699,596 | 761,441 |
LIABILITIES | ||
Borrowings | 416,655 | 480,103 |
Accrued interest expense | 592 | 519 |
Accounts payable and other liabilities | 96 | 133 |
Total liabilities of consolidated VIEs | 417,343 | $ 480,755 |
VIE, Primary Beneficiary | ||
ASSETS | ||
Restricted cash | 20,846 | |
Interest receivable | 3,347 | |
CRE loans, pledged as collateral | 603,110 | |
Loans held for sale | 13 | |
Principal paydowns receivable | 72,207 | |
Other assets | 73 | |
Total assets of consolidated VIEs | 699,596 | |
LIABILITIES | ||
Borrowings | 416,655 | |
Accrued interest expense | 592 | |
Accounts payable and other liabilities | 96 | |
Total liabilities of consolidated VIEs | 417,343 | |
CRE Securitizations | VIE, Primary Beneficiary | ||
ASSETS | ||
Restricted cash | 20,302 | |
Interest receivable | 3,347 | |
CRE loans, pledged as collateral | 603,110 | |
Loans held for sale | 0 | |
Principal paydowns receivable | 72,166 | |
Other assets | 63 | |
Total assets of consolidated VIEs | 698,988 | |
LIABILITIES | ||
Borrowings | 416,655 | |
Accrued interest expense | 592 | |
Accounts payable and other liabilities | 81 | |
Total liabilities of consolidated VIEs | 417,328 | |
Other | VIE, Primary Beneficiary | ||
ASSETS | ||
Restricted cash | 544 | |
Interest receivable | 0 | |
CRE loans, pledged as collateral | 0 | |
Loans held for sale | 13 | |
Principal paydowns receivable | 41 | |
Other assets | 10 | |
Total assets of consolidated VIEs | 608 | |
LIABILITIES | ||
Borrowings | 0 | |
Accrued interest expense | 0 | |
Accounts payable and other liabilities | 15 | |
Total liabilities of consolidated VIEs | $ 15 |
VARIABLE INTEREST ENTITIES (S62
VARIABLE INTEREST ENTITIES (Schedule of Classification, Carrying Value, and Maximum Exposure to Loss of Unconsolidated VIEs) (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands | Dec. 31, 2017 | Oct. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Investment in unconsolidated entities | $ 12,051 | |
Investment securities available-for-sale | 21,194 | |
Total assets | 33,245 | |
Borrowings | 51,548 | |
Total liabilities | 51,548 | |
Net asset (liability) | (18,303) | |
Investments in unconsolidated entities | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 12,051 | |
Investment securities available-for-sale | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 21,194 | |
Unsecured Junior Subordinated Debentures | ||
Variable Interest Entity [Line Items] | ||
Investment 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) | |
Pelium Capital | ||
Variable Interest Entity [Line Items] | ||
Investment in unconsolidated entities | 10,503 | |
Investment securities available-for-sale | 0 | |
Total assets | 10,503 | |
Borrowings | 0 | |
Total liabilities | 0 | |
Net asset (liability) | 10,503 | |
Wells Fargo Commercial Mortgage Trust 2017-C40 | ||
Variable Interest Entity [Line Items] | ||
Investment in unconsolidated entities | 0 | |
Investment securities available-for-sale | 21,194 | |
Total assets | 21,194 | |
Borrowings | 0 | |
Total liabilities | 0 | |
Net asset (liability) | $ 21,194 | $ 705,400 |
SUPPLEMENTAL CASH FLOW INFORM63
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Aug. 31, 2016 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Non-cash discontinued operating activities include the following: | |||||||||||||
Interest expense paid by third party | $ (15,203) | $ (13,853) | $ (14,347) | $ (14,254) | $ (13,346) | $ (13,653) | $ (13,446) | $ (13,302) | $ (57,657) | $ (53,747) | $ (56,530) | ||
Operating liabilities assumed by third party | [1] | (1,240,599) | (1,350,453) | (1,240,599) | (1,350,453) | ||||||||
Non-cash Discontinued Financing Activities Include The Following | |||||||||||||
Senior secured revolving credit facility assumed by third party | $ (122,000) | ||||||||||||
Senior secured revolving credit facility paid down by third party | (22,000) | ||||||||||||
Interest expense paid by third party | |||||||||||||
Non-cash discontinued operating activities include the following: | |||||||||||||
Interest expense paid by third party | (107) | ||||||||||||
Operating liabilities assumed by third party | |||||||||||||
Non-cash discontinued operating activities include the following: | |||||||||||||
Operating liabilities assumed by third party | $ (192) | ||||||||||||
Continuing Operations | |||||||||||||
Non-cash continuing operating activities include the following: | |||||||||||||
Reclassification of linked transactions, net at fair value to investment securities available-for-sale, pledged as collateral, at fair value and borrowings | 0 | 0 | 15,367 | ||||||||||
Non-cash continuing investing activities include the following: | |||||||||||||
Reclassification of linked transactions, net at fair value to investment securities available-for-sale, pledged as collateral, at fair value | 0 | 0 | 48,764 | ||||||||||
Retained beneficial interest in unconsolidated securitization entities | 0 | (22,476) | 0 | ||||||||||
Restricted cash acquired through securitizations called or liquidated | 0 | (934) | 0 | ||||||||||
Loans acquired through securitizations called or liquidated | 0 | (157,070) | 0 | ||||||||||
Securities acquired through securitizations called or liquidated | 0 | (40,892) | 0 | ||||||||||
Non-cash continuing financing activities include the following: | |||||||||||||
Reclassification of linked transactions, net at fair value to borrowings | 0 | 0 | 33,397 | ||||||||||
Continuing Operations | Common Stock | |||||||||||||
Non-cash continuing financing activities include the following: | |||||||||||||
Proceeds from the private exchange of convertible senior notes | 22,161 | 0 | 0 | ||||||||||
Distributions on common and preferred stock declared but not paid | 1,571 | 1,550 | 1,571 | 1,550 | 13,274 | ||||||||
Continuing Operations | Preferred Stock | |||||||||||||
Non-cash continuing financing activities include the following: | |||||||||||||
Payments on the private exchange of convertible senior notes | (22,161) | 0 | 0 | ||||||||||
Distributions on common and preferred stock declared but not paid | 4,010 | 4,010 | 4,010 | 4,010 | 4,077 | ||||||||
Discontinued Operations | |||||||||||||
Non-cash Discontinued Financing Activities Include The Following | |||||||||||||
Senior secured revolving credit facility assumed by third party | 0 | (122,000) | 0 | ||||||||||
Senior secured revolving credit facility paid down by third party | 0 | (22,000) | 0 | ||||||||||
Discontinued Operations | Interest expense paid by third party | |||||||||||||
Non-cash discontinued operating activities include the following: | |||||||||||||
Interest expense paid by third party | 0 | (107) | 0 | ||||||||||
Discontinued Operations | Operating liabilities assumed by third party | |||||||||||||
Non-cash discontinued operating activities include the following: | |||||||||||||
Operating liabilities assumed by third party | $ 0 | $ (192) | $ 0 | $ (192) | $ 0 | ||||||||
[1] | December 31, 2017 December 31, 2016Liabilities of consolidated VIEs included in the total liabilities above: Borrowings$416,655 $480,103 Accrued interest expense592 519 Derivatives, at fair value— — Unsettled loan purchases— — Accounts payable and other liabilities96 133 Total liabilities of consolidated VIEs$417,343 $480,755 |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | [1] | $ 22,874 | $ 3,399 |
Cash held in escrow | 100 | 0 | |
Cash held by consolidated CRE securitizations, CDOs and CLOs | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | 20,846 | 3,308 | |
Restricted cash pledged with minimum reserve balance requirements | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | 25 | 71 | |
Margin posted to central clearinghouse on interest rate swaps | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 1,903 | $ 20 | |
[1] | December 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $— Restricted cash$20,846 $3,308 Investments securities available-for-sale, pledged as collateral, at fair value— 369 Loans held for sale13 1,007Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million603,110 747,726 Interest receivable3,347 3,153 Principal paydown receivable72,207 5,820 Other assets73 58 Total assets of consolidated VIEs$699,596 $761,441 |
LOANS (Summary of Loans) (Detai
LOANS (Summary of Loans) (Details) $ in Thousands | Dec. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($)Loan |
Receivables with Imputed Interest [Line Items] | ||
Unamortized (Discount) Premium, net | $ (7,014) | $ (5,819) |
Allowance for Loan Losses | (5,328) | (3,829) |
Principal, Loans held for sale | 13 | 1,007 |
Amortized Cost, Loans held for sale | 13 | 1,007 |
Carrying Value, Loans held for sale | 13 | 1,007 |
Principal, Total loans | 1,297,177 | 1,296,933 |
Amortized Cost, Total loans | 1,290,163 | 1,291,114 |
Carrying Value, Total loans | 1,284,835 | 1,287,285 |
Deferred amendment fees | 268 | 4 |
Commercial Real Estate Debt Investments | ||
Receivables with Imputed Interest [Line Items] | ||
Loan origination fees | 6,700 | 5,800 |
Commercial Real Estate Loans | ||
Receivables with Imputed Interest [Line Items] | ||
Principal, Loans held for investment | 1,297,164 | 1,295,926 |
Unamortized (Discount) Premium, net | (7,014) | (5,819) |
Amortized Cost, Loans held for investment | 1,290,150 | 1,290,107 |
Allowance for Loan Losses | (5,328) | (3,829) |
Carrying Value, Loans held for investment | $ 1,284,822 | $ 1,286,278 |
Syndicated Corporate Loans | Second lien loans | ||
Receivables with Imputed Interest [Line Items] | ||
Quantity | Loan | 2 | 3 |
Principal, Loans held for sale | $ 13 | $ 1,007 |
Amortized Cost, Loans held for sale | 13 | 1,007 |
Carrying Value, Loans held for sale | $ 13 | $ 1,007 |
Whole loans | Commercial Real Estate Loans | ||
Receivables with Imputed Interest [Line Items] | ||
Quantity | Loan | 70,000 | 67,000 |
Principal, Loans held for investment | $ 1,297,164 | $ 1,295,926 |
Unamortized (Discount) Premium, net | (7,014) | (5,819) |
Amortized Cost, Loans held for investment | 1,290,150 | 1,290,107 |
Allowance for Loan Losses | (5,328) | (3,829) |
Carrying Value, Loans held for investment | 1,284,822 | 1,286,278 |
Loans held for investment, unfunded loan commitments | $ 84,100 | $ 55,500 |
Whole loans | Commercial Real Estate Loans | Minimum | London Interbank Offered Rate (LIBOR) | ||
Receivables with Imputed Interest [Line Items] | ||
Loans receivable, basis spread on variable rate | 3.60% | 3.75% |
Whole loans | Commercial Real Estate Loans | Maximum | London Interbank Offered Rate (LIBOR) | ||
Receivables with Imputed Interest [Line Items] | ||
Loans receivable, basis spread on variable rate | 6.45% | 6.45% |
Whole Loans In Default | Commercial Real Estate Loans | ||
Receivables with Imputed Interest [Line Items] | ||
Quantity | Loan | 1 | |
Amortized Cost, Loans held for investment | $ 7,000 |
LOANS (Contractual Maturities o
LOANS (Contractual Maturities of Commercial Real Estate Loans, at Amortized Cost) (Details) $ in Thousands | Dec. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($) |
Commercial Real Estate Loans | ||
Receivables with Imputed Interest [Line Items] | ||
Amortized Cost, Loans held for investment | $ 1,290,150 | $ 1,290,107 |
Whole Loans In Default | Commercial Real Estate Loans | ||
Receivables with Imputed Interest [Line Items] | ||
Amortized Cost, Loans held for investment | $ 7,000 | |
Number of Loans | Loan | 1 | |
Whole loans | Commercial Real Estate Debt Investments | ||
Receivables with Imputed Interest [Line Items] | ||
2,018 | $ 0 | 7,000 |
2,019 | 148,622 | 24,476 |
2020 and Thereafter | 1,134,528 | 1,258,631 |
Amortized Cost, Loans held for investment | $ 1,283,150 | $ 1,290,107 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables with Imputed Interest [Line Items] | ||
Principal paydowns receivable | $ 75.9 | $ 19.3 |
Commercial Real Estate Loans | Southwest Region | ||
Receivables with Imputed Interest [Line Items] | ||
Concentration of loan portfolio risk | 28.00% | 30.70% |
Commercial Real Estate Loans | Pacific Region | ||
Receivables with Imputed Interest [Line Items] | ||
Concentration of loan portfolio risk | 24.30% | 20.40% |
Commercial Real Estate Loans | Southeast Region | ||
Receivables with Imputed Interest [Line Items] | ||
Concentration of loan portfolio risk | 12.50% | 15.50% |
FINANCING RECEIVABLES (Allowanc
FINANCING RECEIVABLES (Allowance for Loan Losses and Recorded Investments in Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for loan and lease losses: | ||
Allowance for loan and lease losses at beginning of year | $ 4,294 | $ 43,586 |
Provision for (recovery of) loan and lease losses | 1,772 | 17,765 |
Loans charged-off | (3) | 402 |
Transfer to loans held for sale | 0 | (15,763) |
Deconsolidation of VIEs | 0 | (41,696) |
Allowance for loan and lease losses at end of year | 6,063 | 4,294 |
Allowance for loan and lease losses ending balance: | ||
Individually evaluated for impairment | 3,235 | 2,965 |
Collectively evaluated for impairment | 2,828 | 1,329 |
Loans acquired with deteriorated credit quality | 5,328 | 3,829 |
Loans, ending balance: | ||
Individually evaluated for impairment | 7,886 | 7,992 |
Collectively evaluated for impairment | 1,283,150 | 1,283,107 |
Loans acquired with deteriorated credit quality | ||
Allowance for loan and lease losses ending balance: | ||
Loans acquired with deteriorated credit quality | 0 | 0 |
Loans, ending balance: | ||
Loans acquired with deteriorated credit quality | 0 | 0 |
Commercial Real Estate Loans | ||
Allowance for loan and lease losses: | ||
Allowance for loan and lease losses at beginning of year | 3,829 | 41,839 |
Provision for (recovery of) loan and lease losses | 1,499 | 18,167 |
Loans charged-off | 0 | 0 |
Transfer to loans held for sale | 0 | (15,763) |
Deconsolidation of VIEs | 0 | (40,414) |
Allowance for loan and lease losses at end of year | 5,328 | 3,829 |
Allowance for loan and lease losses ending balance: | ||
Individually evaluated for impairment | 2,500 | 2,500 |
Collectively evaluated for impairment | 2,828 | 1,329 |
Loans acquired with deteriorated credit quality | 5,328 | 3,829 |
Loans, ending balance: | ||
Individually evaluated for impairment | 7,000 | 7,000 |
Collectively evaluated for impairment | 1,283,150 | 1,283,107 |
Loans acquired with deteriorated credit quality | 1,353,933 | 1,448,285 |
Commercial Real Estate Loans | Loans acquired with deteriorated credit quality | ||
Allowance for loan and lease losses ending balance: | ||
Loans acquired with deteriorated credit quality | 0 | 0 |
Loans, ending balance: | ||
Loans acquired with deteriorated credit quality | 0 | 0 |
Syndicated Corporate Loans | ||
Allowance for loan and lease losses: | ||
Allowance for loan and lease losses at beginning of year | 0 | 1,282 |
Provision for (recovery of) loan and lease losses | 3 | (402) |
Loans charged-off | (3) | 402 |
Transfer to loans held for sale | 0 | 0 |
Deconsolidation of VIEs | 0 | (1,282) |
Allowance for loan and lease losses at end of year | 0 | 0 |
Allowance for loan and lease losses ending balance: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 0 | 0 |
Loans, ending balance: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 0 | 0 |
Syndicated Corporate Loans | Loans acquired with deteriorated credit quality | ||
Allowance for loan and lease losses ending balance: | ||
Loans acquired with deteriorated credit quality | 0 | 0 |
Loans, ending balance: | ||
Loans acquired with deteriorated credit quality | 0 | 0 |
Direct Financing Leases | ||
Allowance for loan and lease losses: | ||
Allowance for loan and lease losses at beginning of year | 465 | 465 |
Provision for (recovery of) loan and lease losses | 270 | 0 |
Loans charged-off | 0 | 0 |
Transfer to loans held for sale | 0 | 0 |
Deconsolidation of VIEs | 0 | 0 |
Allowance for loan and lease losses at end of year | 735 | 465 |
Allowance for loan and lease losses ending balance: | ||
Individually evaluated for impairment | 735 | 465 |
Collectively evaluated for impairment | 0 | 0 |
Loans, ending balance: | ||
Individually evaluated for impairment | 886 | 992 |
Collectively evaluated for impairment | 0 | 0 |
Direct Financing Leases | Loans acquired with deteriorated credit quality | ||
Allowance for loan and lease losses ending balance: | ||
Loans acquired with deteriorated credit quality | 0 | 0 |
Loans, ending balance: | ||
Loans acquired with deteriorated credit quality | $ 0 | $ 0 |
FINANCING RECEIVABLES (Details)
FINANCING RECEIVABLES (Details) | Feb. 28, 2017USD ($) | Dec. 31, 2017USD ($)Loan | Jul. 31, 2017USD ($) | Dec. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($)Loan | Dec. 31, 2015USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Provision for loan and lease losses, net | $ 1,772,000 | $ 17,765,000 | $ 41,088,000 | ||||
Financing receivable, allowance for credit losses | $ 5,328,000 | 5,328,000 | 3,829,000 | ||||
Proceeds from sale of investment securities available-for-sale | 40,048,000 | 2,818,000 | $ 65,787,000 | ||||
Provision for lease losses | 1,772,000 | 17,765,000 | |||||
Direct financing leases, net of allowances | [1] | 151,000 | 151,000 | 527,000 | |||
Commercial Real Estate Loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Amortized cost | 1,290,150,000 | 1,290,150,000 | 1,290,107,000 | ||||
Value of collateral | 4,500,000 | ||||||
Loans and receivables | 1,353,933,000 | 1,353,933,000 | 1,448,285,000 | ||||
Financing receivable, allowance for credit losses | $ 5,328,000 | 5,328,000 | 3,829,000 | ||||
Number of loans, principal paid off | Loan | 1 | ||||||
Financing receivable, net, principal paid off | $ 15,000,000 | 15,000,000 | |||||
Provision for lease losses | $ 1,499,000 | $ 18,167,000 | |||||
Commercial Real Estate Loans | Industry Grouping of Retail Stores | Legacy CRE whole loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Concentration of loan portfolio risk | 45.80% | 45.80% | 39.00% | ||||
Commercial Real Estate Loans | Industry Grouping of Hotel | Legacy CRE whole loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Concentration of loan portfolio risk | 36.40% | 36.40% | 54.00% | ||||
Commercial Real Estate Loans | Industry Grouping Of Office Buildings | Legacy CRE whole loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Concentration of loan portfolio risk | 17.80% | 17.80% | 7.00% | ||||
Commercial Real Estate Loans | California | Legacy CRE whole loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Concentration of loan portfolio risk | 82.20% | 82.20% | 84.00% | ||||
Commercial Real Estate Loans | Legacy CRE whole loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of loans | Loan | 5 | ||||||
Value of collateral | $ 110,700,000 | ||||||
Financing receivable, allowance for credit losses, effect of change in method | $ 15,800,000 | ||||||
Commercial Real Estate Loans | Hotel | Legacy CRE whole loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of loans | Loan | 1 | ||||||
Value of collateral | $ 22,500,000 | $ 22,500,000 | $ 24,000,000 | ||||
Provision for loan and lease losses, net | (1,900,000) | ||||||
Provision for protective advances | 442,000 | ||||||
Debt instrument, par value | 29,500,000 | ||||||
Commercial Real Estate Loans | Rating 5 (4) | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans and receivables | 7,000,000 | 7,000,000 | |||||
Commercial Real Estate Loans | Roswell, GA | Rating 5 (4) | Retail Site | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Amortized cost | 7,000,000 | 7,000,000 | 7,000,000 | ||||
Commercial Real Estate Loans | Southern California | Retail Site | Legacy CRE whole loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Value of collateral | $ 11,500,000 | $ 11,500,000 | |||||
Commercial Real Estate Loans | Southern California | Hotel | Legacy CRE whole loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Debt instrument, par value | $ 67,500,000 | ||||||
Commercial Real Estate Loans | Southern Arizona | Hotel | Legacy CRE whole loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of loans | Loan | 1 | ||||||
Value of collateral | $ 14,300,000 | ||||||
Debt instrument, par value | 32,500,000 | ||||||
Proceeds from sale of investment securities available-for-sale | $ 21,300,000 | ||||||
Commercial Real Estate Loans | Central Arizona | Office Building | Legacy CRE whole loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of loans | Loan | 1 | 1 | |||||
Value of collateral | $ 11,000,000 | $ 11,000,000 | |||||
Debt instrument, par value | 17,700,000 | ||||||
Commercial Real Estate Loans | Northern Georgia | Retail Site | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Value of collateral | $ 4,500,000 | $ 4,500,000 | |||||
Number of defaulted loans | Loan | 1 | 1 | |||||
Commercial Real Estate Loans | Whole loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of loans | Loan | 1 | 1 | |||||
Amortized cost | $ 1,290,150,000 | $ 1,290,150,000 | 1,290,107,000 | ||||
Financing receivable, allowance for credit losses, effect of change in method | 0 | 2,500,000 | |||||
Loans and receivables | 1,290,150,000 | 1,290,150,000 | 1,290,107,000 | ||||
Financing receivable, allowance for credit losses | 5,328,000 | 5,328,000 | 3,829,000 | ||||
Recorded balance | 7,000,000 | 7,000,000 | 7,000,000 | ||||
Commercial Real Estate Loans | Whole loans | Rating 5 (4) | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans and receivables | $ 7,000,000 | $ 7,000,000 | |||||
Commercial Real Estate Loans | Whole loans | Roswell, GA | Rating 5 (4) | Retail Site | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of loans | Loan | 1 | 1 | 1 | ||||
Commercial Real Estate Loans | Legacy CRE whole loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of loans | Loan | 2 | 2 | |||||
Value of collateral | $ 61,800,000 | $ 61,800,000 | |||||
Number of loans, trigger items, loans held for sale | Loan | 4 | 4 | 8 | ||||
Loans and receivables | $ 63,783,000 | $ 63,783,000 | $ 158,178,000 | ||||
Financing receivable, allowance for credit losses | $ 1,900,000 | $ 1,900,000 | |||||
Number of impaired loans | Loan | 2 | 2 | |||||
Recorded balance | $ 22,500,000 | $ 22,500,000 | |||||
Number of defaulted loans | Loan | 2 | 2 | |||||
Commercial Real Estate Loans | Legacy CRE whole loans | Mountain Region | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Concentration of loan portfolio risk | 17.80% | 17.80% | 16.00% | ||||
Commercial Real Estate Loans | Legacy CRE whole loans | Rating 5 (4) | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans and receivables | $ 0 | $ 0 | |||||
Commercial Real Estate Loans | Legacy CRE whole loans | Held for Sale | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of loans | Loan | 3 | ||||||
Loans and receivables | $ 47,500,000 | ||||||
Commercial Real Estate Loans | Legacy CRE whole loans | Southern California | Hotel | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of impaired loans | Loan | 2 | ||||||
Recorded balance | $ 61,400,000 | ||||||
Proceeds from sale of investment securities available-for-sale | $ 67,000,000 | ||||||
Realized gain (loss) on investments | 5,600,000 | ||||||
Commercial Real Estate Loans | Legacy CRE whole loans | Southern Arizona | Hotel | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Realized gain (loss) on investments | $ 7,000,000 | ||||||
Commercial Real Estate Loans | Mezzanine loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Value of collateral | $ 0 | $ 0 | |||||
Number of loans, trigger items, loans held for sale | Loan | 1 | 1 | 1 | ||||
Loans and receivables | $ 0 | ||||||
Direct Financing Leases | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Provision for lease losses | $ 270,000 | 0 | |||||
Direct financing leases, net of allowances | $ 151,000 | $ 151,000 | $ 527,000 | ||||
[1] | December 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $— Restricted cash$20,846 $3,308 Investments securities available-for-sale, pledged as collateral, at fair value— 369 Loans held for sale13 1,007Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million603,110 747,726 Interest receivable3,347 3,153 Principal paydown receivable72,207 5,820 Other assets73 58 Total assets of consolidated VIEs$699,596 $761,441 |
FINANCING RECEIVABLES (Credit R
FINANCING RECEIVABLES (Credit Risk Profiles) (Details) $ in Thousands | Dec. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($)Loan |
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables held for sale | $ 13 | $ 1,007 |
Commercial Real Estate Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | $ 1,353,933 | 1,448,285 |
Value of collateral | 4,500 | |
Commercial Real Estate Loans | Rating 3 | ||
Schedule Of Financing Receivables [Line Items] | ||
Financing receivable, allowance for credit losses, percentage of aggregate par amount of loans | 1.50% | |
Loans and receivables | $ 171,841 | 0 |
Commercial Real Estate Loans | Rating 4 | ||
Schedule Of Financing Receivables [Line Items] | ||
Financing receivable, allowance for credit losses, percentage of aggregate carrying amount of loans | 5.00% | |
Loans and receivables | $ 4,837 | 7,000 |
Commercial Real Estate Loans | Rating 1 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 65,589 | 1,186,292 |
Commercial Real Estate Loans | Rating 2 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 1,040,883 | 96,815 |
Commercial Real Estate Loans | Rating 5 (4) | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 7,000 | |
Commercial Real Estate Loans | Held for Sale | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables held for sale | 63,783 | 158,178 |
Commercial Real Estate Loans | Whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | $ 1,290,150 | 1,290,107 |
Number of loans | Loan | 1 | |
Recorded balance | $ 7,000 | 7,000 |
Commercial Real Estate Loans | Whole loans | Rating 3 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 171,841 | 0 |
Commercial Real Estate Loans | Whole loans | Rating 4 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 4,837 | 7,000 |
Commercial Real Estate Loans | Whole loans | Rating 1 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 65,589 | 1,186,292 |
Commercial Real Estate Loans | Whole loans | Rating 2 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 1,040,883 | 96,815 |
Commercial Real Estate Loans | Whole loans | Rating 5 (4) | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 7,000 | |
Commercial Real Estate Loans | Whole loans | Held for Sale | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables held for sale | 0 | 0 |
Commercial Real Estate Loans | Legacy CRE whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | $ 63,783 | 158,178 |
Number of loans | Loan | 2 | |
Recorded balance | $ 22,500 | |
Value of collateral | 61,800 | |
Commercial Real Estate Loans | Legacy CRE whole loans | Rating 3 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Commercial Real Estate Loans | Legacy CRE whole loans | Rating 4 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Commercial Real Estate Loans | Legacy CRE whole loans | Rating 1 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Commercial Real Estate Loans | Legacy CRE whole loans | Rating 2 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Commercial Real Estate Loans | Legacy CRE whole loans | Rating 5 (4) | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | $ 0 | |
Commercial Real Estate Loans | Legacy CRE whole loans | Held for Sale | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 47,500 | |
Loans and receivables held for sale | $ 158,178 | |
Number of loans | Loan | 3 |
FINANCING RECEIVABLES (Loan Por
FINANCING RECEIVABLES (Loan Portfolios Aging Analysis) (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($) | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 29,516,000 | $ 61,665,000 |
Current | 1,324,417,000 | 1,387,626,000 |
Total Loans Receivable | 1,353,933,000 | 1,449,291,000 |
Total Loans 90 Days and Accruing | 0 | 0 |
Commercial Real Estate Loans | Whole loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7,000,000 | 0 |
Current | 1,283,150,000 | 1,290,107,000 |
Total Loans Receivable | 1,290,150,000 | 1,290,107,000 |
Total Loans 90 Days and Accruing | $ 0 | 0 |
Number of loans | Loan | 1 | |
Recorded balance | $ 7,000,000 | 7,000,000 |
Financing receivable, allowance for credit losses | 0 | 2,500,000 |
Commercial Real Estate Loans | Legacy CRE whole loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 22,516,000 | 61,400,000 |
Current | 41,267,000 | 96,792,000 |
Total Loans Receivable | 63,783,000 | 158,192,000 |
Total Loans 90 Days and Accruing | $ 0 | 0 |
Number of loans | Loan | 2 | |
Recorded balance | $ 22,500,000 | |
Number of impaired loans | Loan | 2 | |
Direct Financing Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 265,000 | |
Current | 727,000 | |
Total Loans Receivable | $ 151,000 | 992,000 |
Total Loans 90 Days and Accruing | 0 | |
30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 11,516,000 | 61,537,000 |
30-59 Days | Commercial Real Estate Loans | Whole loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
30-59 Days | Commercial Real Estate Loans | Legacy CRE whole loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 11,516,000 | 61,400,000 |
30-59 Days | Direct Financing Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 137,000 | |
60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
60-89 Days | Commercial Real Estate Loans | Whole loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
60-89 Days | Commercial Real Estate Loans | Legacy CRE whole loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
60-89 Days | Direct Financing Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | |
Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 18,000,000 | 128,000 |
Greater than 90 Days | Commercial Real Estate Loans | Whole loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7,000,000 | 0 |
Greater than 90 Days | Commercial Real Estate Loans | Legacy CRE whole loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 11,000,000 | 0 |
Greater than 90 Days | Direct Financing Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 128,000 |
FINANCING RECEIVABLES (Impaired
FINANCING RECEIVABLES (Impaired Loans) (Details) - Whole loans - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | ||
Loans without a specific valuation allowance, Recorded balance | $ 0 | |
Loans with a specific valuation allowance, Recorded balance | 7,000 | |
Loans without a specific valuation allowance, Unpaid Principal Balance | 0 | |
Loans with a specific valuation allowance, Unpaid Principal Balance | 7,000 | |
Specific Allowance | (2,500) | |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 0 | |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 7,000 | |
Loans without a specific valuation allowance, Interest Income Recognized | 0 | |
Loans with a specific valuation allowance, Interest Income Recognized | 480 | |
Commercial Real Estate Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Loans without a specific valuation allowance, Recorded balance | $ 0 | |
Loans with a specific valuation allowance, Recorded balance | 7,000 | |
Recorded Balance | 7,000 | 7,000 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 0 | |
Loans with a specific valuation allowance, Unpaid Principal Balance | 7,000 | |
Unpaid Principal Balance | 7,000 | 7,000 |
Specific Allowance | (2,500) | (2,500) |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 0 | |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 7,000 | |
Average Investment in Impaired Loans | 7,000 | 7,000 |
Loans without a specific valuation allowance, Interest Income Recognized | 0 | |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | |
Interest Income Recognized | $ 0 | $ 480 |
FINANCING RECEIVABLES (Loan P73
FINANCING RECEIVABLES (Loan Portfolio Troubled-debt Restructurings) (Details) - Commercial Real Estate Loans $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($)Loan | |
Troubled debt restructuring [Abstract] | ||
Number of Loans | Loan | 0 | 3 |
Pre-Modification Outstanding Recorded Balance | $ 0 | $ 29,459 |
Post-Modification Outstanding Recorded Balance | $ 0 | $ 21,400 |
Whole loans | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | Loan | 0 | 3 |
Pre-Modification Outstanding Recorded Balance | $ 0 | $ 29,459 |
Post-Modification Outstanding Recorded Balance | $ 0 | $ 21,400 |
INVESTMENT SECURITIES, TRADIN74
INVESTMENT SECURITIES, TRADING (Schedule of Investment Trading Securities at Fair Value) (Details) $ in Thousands | Dec. 31, 2017USD ($)Security | Dec. 31, 2016USD ($)Security | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Fair Value | [1] | $ 178 | $ 4,492 |
Structured notes | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Number of Securities | Security | 4,000 | 5,000 | |
Amortized Cost | $ 2,891 | $ 6,242 | |
Unrealized Gains | 0 | 920 | |
Unrealized Losses | (2,713) | (2,670) | |
Fair Value | $ 178 | $ 4,492 | |
[1] | December 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $— Restricted cash$20,846 $3,308 Investments securities available-for-sale, pledged as collateral, at fair value— 369 Loans held for sale13 1,007Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million603,110 747,726 Interest receivable3,347 3,153 Principal paydown receivable72,207 5,820 Other assets73 58 Total assets of consolidated VIEs$699,596 $761,441 |
INVESTMENT SECURITIES, TRADIN75
INVESTMENT SECURITIES, TRADING (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Security | Dec. 31, 2016Security | Dec. 31, 2015USD ($)Security | |
Investments, Debt and Equity Securities [Abstract] | |||
Trading securities sold | Security | 1 | 0 | 19 |
Net realized gain on trading securities | $ | $ 9 | $ 1,400 |
INVESTMENT SECURITIES AVAILAB76
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Schedule of Available-for-Sale Securities, Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 211,065 | $ 121,416 |
Unrealized Gains | 1,947 | 4,490 |
Unrealized Losses | (1,275) | (938) |
Investment securities available-for-sale | 211,737 | 124,968 |
Assets pledged as collateral | 169,600 | 97,500 |
CMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 210,806 | 98,525 |
Unrealized Gains | 1,947 | 425 |
Unrealized Losses | (1,174) | (863) |
Investment securities available-for-sale | 211,579 | 98,087 |
ABS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 259 | 3,873 |
Unrealized Gains | 0 | 1,365 |
Unrealized Losses | (101) | (73) |
Investment securities available-for-sale | $ 158 | 5,165 |
ABS | ABS - structured notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 17,492 | |
Unrealized Gains | 2,623 | |
Unrealized Losses | 0 | |
Investment securities available-for-sale | 20,115 | |
RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,526 | |
Unrealized Gains | 77 | |
Unrealized Losses | (2) | |
Investment securities available-for-sale | $ 1,601 |
INVESTMENT SECURITIES AVAILAB77
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Estimated Maturities of Available-For-Sale Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Less than one year | $ 25,475 | $ 80,801 |
Greater than one year and less than five years | 126,273 | 17,197 |
Greater than five years and less than ten years | 59,317 | 9,622 |
Greater than ten years | 0 | 13,796 |
Total | 211,065 | 121,416 |
Fair Value | ||
Less than one year | 25,275 | 80,325 |
Greater than one year and less than five years | 127,104 | 17,408 |
Greater than five years and less than ten years | 59,358 | 12,936 |
Greater than ten years | 0 | 14,299 |
Total | $ 211,737 | $ 124,968 |
Weighted Average Coupon | ||
Less than one year | 5.55% | 5.60% |
Greater than one year and less than five years | 4.65% | 4.52% |
Greater than five years and less than ten years | 3.53% | 10.68% |
Greater than ten years | 0.00% | 10.39% |
Total | 4.45% | 6.39% |
INVESTMENT SECURITIES AVAILAB78
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Gross Unrealized Loss and Fair Value of Securities) (Details) $ in Thousands | Dec. 31, 2017USD ($)Security | Dec. 31, 2016USD ($)Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | $ 49,174 | $ 31,531 |
Unrealized losses, less than 12 months | $ (989) | $ (438) |
Number of securities, less than 12 months | Security | 13 | 11 |
Fair value, more than 12 months | $ 1,308 | $ 27,444 |
Unrealized losses, more than 12 Months | $ (286) | $ (500) |
Number of securities, more than 12 Months | Security | 4 | 16 |
Fair value, total | $ 50,482 | $ 58,975 |
Unrealized losses, total | $ (1,275) | $ (938) |
Number of Securities, total | Security | 17 | 27 |
CMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | $ 49,016 | $ 30,869 |
Unrealized losses, less than 12 months | $ (888) | $ (436) |
Number of securities, less than 12 months | Security | 12 | 10 |
Fair value, more than 12 months | $ 1,308 | $ 26,616 |
Unrealized losses, more than 12 Months | $ (286) | $ (427) |
Number of securities, more than 12 Months | Security | 4 | 15 |
Fair value, total | $ 50,324 | $ 57,485 |
Unrealized losses, total | $ (1,174) | $ (863) |
Number of Securities, total | Security | 16 | 25 |
ABS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | $ 158 | $ 0 |
Unrealized losses, less than 12 months | $ (101) | $ 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 | $ 158 | $ 828 |
Unrealized losses, total | $ (101) | $ (73) |
Number of Securities, total | Security | 1 | 1 |
RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | $ 662 | |
Unrealized losses, less than 12 months | $ (2) | |
Number of securities, less than 12 months | Security | 1 | |
Fair value, more than 12 months | $ 0 | |
Unrealized losses, more than 12 Months | $ 0 | |
Number of securities, more than 12 Months | Security | 0 | |
Fair value, total | $ 662 | |
Unrealized losses, total | $ (2) | |
Number of Securities, total | Security | 1 |
INVESTMENT SECURITIES AVAILAB79
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)Security | Dec. 31, 2015USD ($) | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Impairment losses | $ 177,000 | $ 26,470,000 | $ 372,000 |
Variable Interest Entity, Not Primary Beneficiary | RREF CDO 2007-1 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Impairment losses | 19,900,000 | ||
Debt securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Impairment losses | $ 0 | 20,900,000 | $ 372,000 |
RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other than temporary impairment losses, investments | $ 241,000 | ||
Number of impaired securities | Security | 3 | ||
CMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other than temporary impairment losses, investments | $ 732,000 | ||
Available-for-sale securities, intended for sale, number of securities | Security | 1 | ||
Available-for-sale securities, at par | $ 4,000,000 |
INVESTMENT SECURITIES AVAILAB80
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Summary of Sales of Investment Securities Available-for-Sale) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Security | Dec. 31, 2016USD ($)Security | Dec. 31, 2015USD ($)Security | |
CMBS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Positions Sold | Security | 2 | 1 | 1 |
Positions Redeemed | Security | 0 | 0 | 0 |
Par Amount Sold/Redeemed | $ 7,350 | $ 4,000 | $ 3,000 |
Amortized Cost | 6,650 | 3,257 | 3,071 |
Realized Gain (Loss) | (238) | (450) | (58) |
Proceeds | $ 6,412 | $ 2,807 | $ 3,013 |
ABS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Positions Sold | Security | 5 | 1 | 22 |
Positions Redeemed | Security | 0 | 0 | 3 |
Par Amount Sold/Redeemed | $ 8,306 | $ 10,830 | $ 49,706 |
Amortized Cost | 4,319 | 9,004 | 17,269 |
Realized Gain (Loss) | 1,356 | 418 | 12,007 |
Proceeds | $ 5,675 | $ 9,422 | $ 29,276 |
ABS | ABS - structured notes | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Positions Sold | Security | 3 | 2 | |
Positions Redeemed | Security | 0 | 0 | |
Par Amount Sold/Redeemed | $ 24,267 | $ 20,195 | |
Amortized Cost | 19,258 | 18,268 | |
Realized Gain (Loss) | 632 | (2,810) | |
Proceeds | 17,608 | $ 15,458 | |
Collateral management fee rebate | $ 2,300 | ||
RMBS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Positions Sold | Security | 3 | 6 | |
Positions Redeemed | Security | 0 | 0 | |
Par Amount Sold/Redeemed | $ 153,519 | $ 28,305 | |
Amortized Cost | 1,274 | 4,575 | |
Realized Gain (Loss) | (158) | 984 | |
Proceeds | $ 1,116 | $ 5,559 |
INVESTMENTS IN UNCONSOLIDATED81
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2014 | ||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in unconsolidated entities | [1] | $ 12,051,000 | $ 87,919,000 | |||
Equity in Earnings (Losses) of Unconsolidated Entities | 36,858,000 | 3,413,000 | $ (33,000) | |||
Return on investments in unconsolidated entities | $ 50,046,000 | 0 | 0 | |||
Varde Investment Partners, L.P | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 0.00% | |||||
Investments in unconsolidated entities | $ 0 | 0 | ||||
Equity in Earnings (Losses) of Unconsolidated Entities | $ 0 | 0 | (90,000) | |||
RRE VIP Borrower, LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 0.00% | |||||
Investments in unconsolidated entities | $ 0 | 0 | ||||
Equity in Earnings (Losses) of Unconsolidated Entities | $ 45,000 | 58,000 | 325,000 | |||
Investment in LCC Preferred Stock | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 0.00% | |||||
Investments in unconsolidated entities | $ 0 | 42,960,000 | ||||
Equity in Earnings (Losses) of Unconsolidated Entities | $ 41,465,000 | 943,000 | 2,601,000 | |||
Gain recognized on sale | $ 41,100,000 | |||||
Investment in CVC Global Credit Opportunities Fund | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 0.00% | |||||
Investments in unconsolidated entities | $ 0 | 0 | ||||
Equity in Earnings (Losses) of Unconsolidated Entities | $ 0 | 0 | 8,000 | |||
RCM Global LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 63.20% | |||||
Investments in unconsolidated entities | $ 0 | 465,000 | ||||
Equity in Earnings (Losses) of Unconsolidated Entities | $ (274,000) | 14,000 | 0 | |||
Pelium Capital Partners, L.P. | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 80.20% | 80.40% | ||||
Investments in unconsolidated entities | $ 10,503,000 | 25,993,000 | ||||
Equity in Earnings (Losses) of Unconsolidated Entities | (1,856,000) | 3,991,000 | 0 | |||
Return on investments in unconsolidated entities | $ 13,600,000 | |||||
Pearlmark Mezz | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 0.00% | |||||
Investments in unconsolidated entities | $ 0 | 16,953,000 | ||||
Equity in Earnings (Losses) of Unconsolidated Entities | $ 165,000 | 968,000 | (460,000) | |||
Investment in School Lane House | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 0.00% | |||||
Investments in unconsolidated entities | $ 0 | 0 | ||||
Equity in Earnings (Losses) of Unconsolidated Entities | 0 | (1,000) | 4,000 | |||
Investments in unconsolidated entities | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in unconsolidated entities | 10,503,000 | 86,371,000 | ||||
Equity in Earnings (Losses) of Unconsolidated Entities | $ 39,545,000 | 5,973,000 | 2,388,000 | |||
Interest in RCT I and RCT II | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 3.00% | |||||
Investments in unconsolidated entities | $ 1,548,000 | 1,548,000 | ||||
Equity in Earnings (Losses) of Unconsolidated Entities | $ (2,687,000) | $ (2,560,000) | $ (2,421,000) | |||
[1] | December 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $— Restricted cash$20,846 $3,308 Investments securities available-for-sale, pledged as collateral, at fair value— 369 Loans held for sale13 1,007Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million603,110 747,726 Interest receivable3,347 3,153 Principal paydown receivable72,207 5,820 Other assets73 58 Total assets of consolidated VIEs$699,596 $761,441 |
BORROWINGS (Schedule of Debt) (
BORROWINGS (Schedule of Debt) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 1,187,384,000 | $ 1,207,559,000 | |
Unamortized Issuance Costs and Discounts | 23,899,000 | 16,103,000 | |
Outstanding Borrowings | $ 1,163,485,000 | $ 1,191,456,000 | |
Weighted Average Borrowing Rate | 4.00% | 3.67% | |
Weighted Average Remaining Maturity | 7 years 4 months | 8 years | |
Value of Collateral | $ 1,515,510,000 | $ 1,482,399,000 | |
Accrued interest costs | [1] | 4,387,000 | 4,979,000 |
RCC 2014-CRE2 Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 131,936,000 | ||
Unamortized Issuance Costs and Discounts | 1,871,000 | ||
Outstanding Borrowings | $ 130,065,000 | ||
Weighted Average Borrowing Rate | 2.19% | ||
Weighted Average Remaining Maturity | 15 years 3 months 18 days | ||
Value of Collateral | $ 250,255,000 | ||
RCC 2015-CRE3 Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 85,788,000 | 196,112,000 | |
Unamortized Issuance Costs and Discounts | 396,000 | 2,358,000 | |
Outstanding Borrowings | $ 85,392,000 | $ 193,754,000 | |
Weighted Average Borrowing Rate | 4.50% | 2.82% | |
Weighted Average Remaining Maturity | 14 years 2 months 12 days | 15 years 2 months 12 days | |
Value of Collateral | $ 149,828,000 | $ 259,889,000 | |
RCC 2015-CRE4 Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 90,883,000 | 158,475,000 | |
Unamortized Issuance Costs and Discounts | 407,000 | 2,193,000 | |
Outstanding Borrowings | $ 90,476,000 | $ 156,282,000 | |
Weighted Average Borrowing Rate | 3.65% | 2.55% | |
Weighted Average Remaining Maturity | 14 years 7 months 6 days | 15 years 7 months 6 days | |
Value of Collateral | $ 180,066,000 | $ 247,414,000 | |
RCC 2017-CRE5 Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 244,280,000 | ||
Unamortized Issuance Costs and Discounts | 3,493,000 | ||
Outstanding Borrowings | $ 240,787,000 | ||
Weighted Average Borrowing Rate | 2.51% | ||
Weighted Average Remaining Maturity | 16 years 7 months 6 days | ||
Value of Collateral | $ 369,534,000 | ||
Unsecured Junior Subordinated Debentures | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 51,548,000 | 51,548,000 | |
Unamortized Issuance Costs and Discounts | 0 | 0 | |
Outstanding Borrowings | $ 51,548,000 | $ 51,548,000 | |
Weighted Average Borrowing Rate | 5.49% | 4.89% | |
Weighted Average Remaining Maturity | 18 years 8 months 18 days | 19 years 9 months 18 days | |
Value of Collateral | $ 0 | $ 0 | |
4.50% Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 143,750,000 | ||
Unamortized Issuance Costs and Discounts | 16,626,000 | ||
Outstanding Borrowings | $ 127,124,000 | ||
Weighted Average Borrowing Rate | 4.50% | ||
Weighted Average Remaining Maturity | 4 years 7 months 6 days | ||
Value of Collateral | $ 0 | ||
6.00% Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 70,453,000 | 115,000,000 | |
Unamortized Issuance Costs and Discounts | 928,000 | 3,231,000 | |
Outstanding Borrowings | $ 69,525,000 | $ 111,769,000 | |
Weighted Average Borrowing Rate | 6.00% | 6.00% | |
Weighted Average Remaining Maturity | 335 days | 1 year 10 months 24 days | |
Value of Collateral | $ 0 | $ 0 | |
8.00% Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 21,182,000 | 100,000,000 | |
Unamortized Issuance Costs and Discounts | 466,000 | 3,472,000 | |
Outstanding Borrowings | $ 20,716,000 | $ 96,528,000 | |
Weighted Average Borrowing Rate | 8.00% | 8.00% | |
Weighted Average Remaining Maturity | 2 years | 3 years | |
Value of Collateral | $ 0 | $ 0 | |
CRE - Term Repurchase Facilities | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 292,511,000 | 349,318,000 | |
Unamortized Issuance Costs and Discounts | 1,013,000 | 2,680,000 | |
Outstanding Borrowings | $ 291,498,000 | $ 346,638,000 | |
Weighted Average Borrowing Rate | 3.82% | 3.04% | |
Weighted Average Remaining Maturity | 222 days | 1 year 7 months 6 days | |
Value of Collateral | $ 432,125,000 | $ 520,503,000 | |
Accrued interest costs | 534,000 | 468,000 | |
CMBS - Term Repurchase Facilities | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 27,628,000 | 78,503,000 | |
Unamortized Issuance Costs and Discounts | 0 | 16,000 | |
Outstanding Borrowings | $ 27,628,000 | $ 78,487,000 | |
Weighted Average Borrowing Rate | 3.05% | 2.73% | |
Weighted Average Remaining Maturity | 121 days | 129 days | |
Value of Collateral | $ 38,060,000 | $ 115,157,000 | |
Accrued interest costs | 46,000 | 157,000 | |
Trust Certificates - Term Repurchase Facilities | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 76,714,000 | 26,667,000 | |
Unamortized Issuance Costs and Discounts | 570,000 | 282,000 | |
Outstanding Borrowings | $ 76,144,000 | $ 26,385,000 | |
Weighted Average Borrowing Rate | 5.97% | 6.21% | |
Weighted Average Remaining Maturity | 2 years 1 month | 1 year 10 months 24 days | |
Value of Collateral | $ 214,375,000 | $ 89,181,000 | |
Accrued interest costs | 203,000 | 69,000 | |
CMBS - Short Term Repurchase Agreements | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 82,647,000 | ||
Unamortized Issuance Costs and Discounts | 0 | ||
Outstanding Borrowings | $ 82,647,000 | ||
Weighted Average Borrowing Rate | 2.79% | ||
Weighted Average Remaining Maturity | 14 days | ||
Value of Collateral | $ 131,522,000 | ||
Accrued interest costs | $ 279,000 | $ 0 | |
[1] | December 31, 2017 December 31, 2016Liabilities of consolidated VIEs included in the total liabilities above: Borrowings$416,655 $480,103 Accrued interest expense592 519 Derivatives, at fair value— — Unsettled loan purchases— — Accounts payable and other liabilities96 133 Total liabilities of consolidated VIEs$417,343 $480,755 |
BORROWINGS (Securitzations) (De
BORROWINGS (Securitzations) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
RCC 2015-CRE3 | |
Debt Instrument [Line Items] | |
Total Note Paydowns Received from Closing Date through December 31, 2017 | $ 196,339 |
RCC 2015-CRE4 Senior Notes | |
Debt Instrument [Line Items] | |
Total Note Paydowns Received from Closing Date through December 31, 2017 | 132,852 |
RCC 2017-CRE5 Senior Notes | |
Debt Instrument [Line Items] | |
Total Note Paydowns Received from Closing Date through December 31, 2017 | $ 7,169 |
BORROWINGS (RCC CRE Notes 2013)
BORROWINGS (RCC CRE Notes 2013) (Details) - RCC CRE Notes 2013 - USD ($) | Dec. 31, 2017 | Jul. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | |||
Closing transaction amount | $ 307,800,000 | $ 353,900,000 | $ 307,800,000 |
Face amount of debt issued | $ 260,800,000 | ||
Percentage of senior notes acquired by the parent | 100.00% | ||
Senior Notes Class D E, and F | |||
Debt Instrument [Line Items] | |||
Percentage of senior notes acquired by the parent | 100.00% |
BORROWINGS (RCC 2014-CRE2) (Det
BORROWINGS (RCC 2014-CRE2) (Details) - RCC 2014-CRE2 | Jul. 31, 2014USD ($) |
Debt Instrument [Line Items] | |
Closing transaction amount | $ 353,900,000 |
Face amount of debt issued | $ 235,300,000 |
Ownership interests in variable interest entity | 100.00% |
Senior Notes Class C | |
Debt Instrument [Line Items] | |
Percentage of senior notes acquired by the parent | 100.00% |
BORROWINGS (RCC 2015-CRE3 and C
BORROWINGS (RCC 2015-CRE3 and CRE4) (Details) - USD ($) | 1 Months Ended | |
Aug. 31, 2015 | Feb. 28, 2015 | |
RCC 2015-CRE3 Senior Notes | ||
Debt Instrument [Line Items] | ||
Closing transaction amount | $ 346,200,000 | |
Face amount of debt issued | $ 282,100,000 | |
Ownership interests in variable interest entity | 100.00% | |
RCC 2015-CRE3 Senior Notes | Senior Notes Class E and F | ||
Debt Instrument [Line Items] | ||
Percentage of senior notes acquired by the parent | 100.00% | |
RCC 2015-CRE3 Senior Notes | Senior Notes Class A | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 193,900,000 | |
Basis spread on variable rate | 1.40% | |
RCC 2015-CRE3 Senior Notes | Senior Notes Class A | February 2020 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.65% | |
RCC 2015-CRE3 Senior Notes | Senior Notes Class A-S | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 17,300,000 | |
Basis spread on variable rate | 1.65% | |
RCC 2015-CRE3 Senior Notes | Senior Notes Class A-S | March 2020 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.90% | |
RCC 2015-CRE3 Senior Notes | Senior Notes Class B | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 19,500,000 | |
Basis spread on variable rate | 2.40% | |
RCC 2015-CRE3 Senior Notes | Senior Notes Class B | April 2020 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.90% | |
RCC 2015-CRE3 Senior Notes | Senior Notes Class C | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 20,800,000 | |
Basis spread on variable rate | 3.15% | |
RCC 2015-CRE3 Senior Notes | Senior Notes Class C | April 2020 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.65% | |
RCC 2015-CRE3 Senior Notes | Senior Notes Class D | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 30,700,000 | |
Basis spread on variable rate | 4.00% | |
RCC 2015-CRE3 Senior Notes | Senior Notes Class D | April 2020 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 4.50% | |
RCC 2015-CRE3 Senior Notes | Senior Notes Class E | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 20,800,000 | |
Basis spread on variable rate | 4.75% | |
RCC 2015-CRE3 Senior Notes | Senior Notes Class F | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 15,600,000 | |
Basis spread on variable rate | 5.50% | |
RCC 2015-CRE4 Senior Notes | ||
Debt Instrument [Line Items] | ||
Closing transaction amount | $ 312,900,000 | |
Face amount of debt issued | $ 223,700,000 | |
Percentage of senior notes acquired by the parent | 100.00% | |
RCC 2015-CRE4 Senior Notes | Senior Notes Class A | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 179,900,000 | |
Basis spread on variable rate | 1.40% | |
RCC 2015-CRE4 Senior Notes | Senior Notes Class A | August 2020 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.65% | |
RCC 2015-CRE4 Senior Notes | Senior Notes Class B | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 43,800,000 | |
Basis spread on variable rate | 3.00% | |
RCC 2015-CRE4 Senior Notes | Senior Notes Class B | September 2020 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.50% | |
RCC 2015-CRE4 Senior Notes | Senior Notes Class C | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 26,600,000 | |
Basis spread on variable rate | 4.75% | |
RCC 2015-CRE4 Senior Notes | RCC Commercial | ||
Debt Instrument [Line Items] | ||
Ownership interests in variable interest entity | 100.00% |
BORROWINGS (RCC 2017-CRE5) (Det
BORROWINGS (RCC 2017-CRE5) (Details) - USD ($) | 1 Months Ended | |
Jul. 31, 2017 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,163,485,000 | |
RCC 2017-CRE5 Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 376,700,000 | |
Ownership percentage in VIE | 100.00% | |
RCC 2017-CRE5 Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 251,400,000 | |
RCC 2017-CRE5 Senior Notes | Senior Notes | Class C Notes | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 49,900,000 | |
Debt instrument, face amount, percentage purchased | 100.00% | |
RCC 2017-CRE5 Senior Notes | Senior Notes | Class C Notes | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.50% | |
RCC 2017-CRE5 Senior Notes | Senior Notes | Class C Notes | London Interbank Offered Rate (LIBOR) | July 2022 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 4.00% | |
RCC 2017-CRE5 Senior Notes | Senior Notes | Class A Notes | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 203,400,000 | |
RCC 2017-CRE5 Senior Notes | Senior Notes | Class A Notes | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.80% | |
RCC 2017-CRE5 Senior Notes | Senior Notes | Class A Notes | London Interbank Offered Rate (LIBOR) | April 2022 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.05% | |
RCC 2017-CRE5 Senior Notes | Senior Notes | Class B Notes | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 48,000,000 | |
RCC 2017-CRE5 Senior Notes | Senior Notes | Class B Notes | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | |
RCC 2017-CRE5 Senior Notes | Senior Notes | Class B Notes | London Interbank Offered Rate (LIBOR) | July 2022 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.50% |
BORROWINGS (Unsecured Junior Su
BORROWINGS (Unsecured Junior Subordinated Debentures) (Details) - Unsecured Junior Subordinated Debentures - USD ($) | 12 Months Ended | ||
Dec. 31, 2006 | Dec. 31, 2017 | Dec. 31, 2016 | |
RCT I entity | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 25,800,000 | ||
Debt issuance costs, amortization period (in years) | 10 years | ||
Interest rate at period end | 5.64% | 4.95% | |
RCT II entity | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 25,800,000 | ||
Debt issuance costs, amortization period (in years) | 10 years | ||
Interest rate at period end | 5.33% | 4.84% |
BORROWINGS (4.50% Convertible S
BORROWINGS (4.50% Convertible Senior Notes) (Details) | 1 Months Ended | ||||
Aug. 31, 2017USD ($)$ / shares | Dec. 31, 2017 | Feb. 01, 2015$ / shares | Jan. 31, 2015USD ($)$ / shares | Oct. 31, 2013 | |
4.50% Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 4.50% | ||||
Senior Notes | 4.50% Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 143,800,000 | ||||
Debt instrument, interest rate, stated percentage | 4.50% | ||||
Unamortized discount | $ 14,200,000 | ||||
Shares issuable upon conversion (in shares) | 78.2473 | ||||
Conversion price per common share (in usd per share) | $ / shares | $ 12.7799936867 | ||||
Senior Notes | 6.00% and 8.00% Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Repayments of senior debt | $ 3,900,000 | ||||
Proceeds from issuance of senior long-term debt | $ 13,500,000 | ||||
Senior Notes | 6.00% Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 6.00% | ||||
Senior Notes | 8.00% Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 100,000,000 | ||||
Debt instrument, interest rate, stated percentage | 8.00% | ||||
Unamortized discount | $ 1,000,000 | ||||
Conversion price per common share (in usd per share) | $ / shares | $ 21.36 | $ 5.34 |
BORROWINGS (6.00% Convertible S
BORROWINGS (6.00% Convertible Senior Notes) (Details) | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2017USD ($)$ / shares | Oct. 31, 2013USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |||||
Reissuance of debt | $ 0 | $ 0 | $ 16,597,000 | ||
Loss on extinguishment of debt | $ 10,365,000 | $ 0 | $ 1,403,000 | ||
6.00% Convertible Senior Notes | Convertible Debt | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 115,000,000 | ||||
Reissuance of debt | 111,100,000 | ||||
Unamortized discount | $ 4,900,000 | ||||
Shares issuable upon conversion (in shares) | 150.1502 | ||||
Conversion ratio | 37.5376 | ||||
Conversion price per common share (in usd per share) | $ / shares | $ 6.66 | $ 26.64 | |||
6.00% Convertible Senior Notes | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 6.00% | ||||
Extinguishment of debt, amount | $ 44,500,000 | ||||
Loss on extinguishment of debt | 381,000 | ||||
4.50% Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 4.50% | ||||
4.50% Convertible Senior Notes | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 143,800,000 | ||||
Debt instrument, interest rate, stated percentage | 4.50% | ||||
Unamortized discount | $ 14,200,000 | ||||
Shares issuable upon conversion (in shares) | 78.2473 | ||||
Conversion price per common share (in usd per share) | $ / shares | $ 12.7799936867 | ||||
Loss on extinguishment of debt | $ 2,300,000 | ||||
Amortization of debt discount | $ 491,000 |
BORROWINGS (8.00% Convertible S
BORROWINGS (8.00% Convertible Senior Notes) (Details) | Feb. 01, 2015$ / shares | Jan. 31, 2015USD ($)$ / shares | Aug. 31, 2017USD ($)$ / shares | Jan. 31, 2015USD ($)$ / shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | |||||||
Unamortized issuance costs and discounts | $ 23,899,000 | $ 16,103,000 | |||||
Reissuance of debt | 0 | 0 | $ 16,597,000 | ||||
Loss on extinguishment of debt | $ 10,365,000 | $ 0 | $ 1,403,000 | ||||
4.50% Convertible Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate, stated percentage | 4.50% | ||||||
Senior Notes | 8.00% Convertible Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | $ 100,000,000 | $ 100,000,000 | |||||
Debt instrument, interest rate, stated percentage | 8.00% | 8.00% | |||||
Unamortized discount | $ 1,000,000 | $ 1,000,000 | |||||
Unamortized issuance costs and discounts | $ 2,100,000 | 2,100,000 | |||||
Reissuance of debt | 97,000,000 | ||||||
Discount adjustment, fair value without conversion feature | $ 2,500,000 | ||||||
Conversion ratio | 46.8604 | 187.4414 | |||||
Conversion price per common share (in usd per share) | $ / shares | $ 21.36 | $ 5.34 | $ 5.34 | ||||
Extinguishment of debt, amount | $ 78,800,000 | ||||||
Amortization of debt issuance costs | 836,000 | ||||||
Loss on extinguishment of debt | 8,100,000 | ||||||
Amortization of debt discount | 1,400,000 | ||||||
Senior Notes | 4.50% Convertible Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | $ 143,800,000 | ||||||
Debt instrument, interest rate, stated percentage | 4.50% | ||||||
Unamortized discount | $ 14,200,000 | ||||||
Conversion price per common share (in usd per share) | $ / shares | $ 12.7799936867 | ||||||
Loss on extinguishment of debt | $ 2,300,000 | ||||||
Amortization of debt discount | $ 491,000 |
BORROWINGS (Repurchase and Cred
BORROWINGS (Repurchase and Credit Facilities) (Details) | Dec. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($)Loan | Nov. 30, 2015USD ($) |
Debt Instrument [Line Items] | |||
Weighted Average Interest Rate | 4.00% | 3.67% | |
Unamortized issuance costs and discounts | $ 23,899,000 | $ 16,103,000 | |
Repurchase Agreements | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | 477,917,000 | 451,510,000 | |
Value of Collateral | 816,082,000 | 724,841,000 | |
Wells Fargo Bank | Repurchase Agreements | CRE - Term Repurchase Facilities | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | 179,347,000 | 215,283,000 | |
Value of Collateral | $ 268,003,000 | $ 313,126,000 | |
Number of Positions as Collateral | Loan | 19 | 16 | |
Weighted Average Interest Rate | 3.68% | 2.86% | |
Unamortized issuance costs and discounts | $ 565,000 | $ 1,600,000 | |
Wells Fargo Bank | Repurchase Agreements | CMBS - Term Repurchase Facilities | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | 12,272,000 | 22,506,000 | |
Value of Collateral | $ 14,984,000 | $ 28,514,000 | |
Number of Positions as Collateral | Loan | 8 | 13 | |
Weighted Average Interest Rate | 2.45% | 1.96% | |
Morgan Stanley Bank | Repurchase Agreements | CRE - Term Repurchase Facilities | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | $ 112,151,000 | $ 131,355,000 | |
Value of Collateral | $ 164,122,000 | $ 207,377,000 | |
Number of Positions as Collateral | Loan | 9 | 11 | |
Weighted Average Interest Rate | 4.05% | 3.34% | |
Unamortized issuance costs and discounts | $ 448,000 | $ 1,100,000 | |
Deutsche Bank | Repurchase Agreements | CMBS - Term Repurchase Facilities | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | 15,356,000 | 55,981,000 | |
Value of Collateral | $ 23,076,000 | $ 86,643,000 | |
Number of Positions as Collateral | Loan | 14 | 23 | |
Weighted Average Interest Rate | 3.53% | 3.04% | |
Unamortized issuance costs and discounts | $ 0 | $ 16,000 | |
RSO Repo SPE Trust 2015 | Repurchase Agreements | Trust Certificates - Term Repurchase Facilities | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | 26,548,000 | 26,385,000 | $ 26,598,000 |
Value of Collateral | $ 89,121,000 | $ 89,181,000 | |
Number of Positions as Collateral | Loan | 2 | 2 | |
Weighted Average Interest Rate | 6.98% | 6.21% | |
Unamortized issuance costs and discounts | $ 133,000 | $ 282,000 | |
RSO Repo SPE Trust 2017 | Repurchase Agreements | Trust Certificates - Term Repurchase Facilities | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | 49,596,000 | 0 | |
Value of Collateral | $ 125,254,000 | $ 0 | |
Number of Positions as Collateral | Loan | 2 | 0 | |
Weighted Average Interest Rate | 5.43% | 0.00% | |
Unamortized issuance costs and discounts | $ 320,000 | $ 0 | |
RBC Capital Markets, LLC | Repurchase Agreements | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | 72,131,000 | 0 | |
Value of Collateral | $ 97,745,000 | $ 0 | |
Number of Positions as Collateral | Loan | 6 | 0 | |
Weighted Average Interest Rate | 2.77% | 0.00% | |
JP Morgan Securities LLC | Repurchase Agreements | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | $ 10,516,000 | $ 0 | |
Value of Collateral | $ 33,777,000 | $ 0 | |
Number of Positions as Collateral | Loan | 2 | 0 | |
Weighted Average Interest Rate | 2.93% | 0.00% |
BORROWINGS (Amount at Risk Unde
BORROWINGS (Amount at Risk Under Repurchase Facilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 7 years 4 months | 8 years |
Weighted Average Interest Rate | 4.00% | 3.67% |
RBC Capital Markets, LLC | CMBS - Short-Term Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 2.77% | 0.00% |
CRE securitizations | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 222 days | 1 year 7 months 6 days |
Weighted Average Interest Rate | 3.82% | 3.04% |
CMBS - Term Repurchase Facilities | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 121 days | 129 days |
Weighted Average Interest Rate | 3.05% | 2.73% |
Trust Certificates - Term Repurchase Facilities | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 2 years 1 month | 1 year 10 months 24 days |
Weighted Average Interest Rate | 5.97% | 6.21% |
Linked and Non-linked Transactions | Wells Fargo Bank, National Association | CMBS - Short-Term Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 23,343 | |
Weighted Average Remaining Maturity | 53 days | |
Weighted Average Interest Rate | 2.93% | |
Linked and Non-linked Transactions | RBC Capital Markets, LLC | CMBS - Short-Term Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 25,813 | |
Weighted Average Remaining Maturity | 9 days | |
Weighted Average Interest Rate | 2.77% | |
Linked and Non-linked Transactions | CRE securitizations | Wells Fargo Bank, National Association | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 89,213 | |
Weighted Average Remaining Maturity | 202 days | |
Weighted Average Interest Rate | 3.68% | |
Linked and Non-linked Transactions | CRE securitizations | Morgan Stanley Bank, N. A. | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 52,241 | |
Weighted Average Remaining Maturity | 253 days | |
Weighted Average Interest Rate | 4.05% | |
Linked and Non-linked Transactions | CMBS - Term Repurchase Facilities | Wells Fargo Bank, National Association | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 2,737 | |
Weighted Average Remaining Maturity | 90 days | |
Weighted Average Interest Rate | 2.45% | |
Linked and Non-linked Transactions | CMBS - Term Repurchase Facilities | Deutsche Bank, AG | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 7,862 | |
Weighted Average Remaining Maturity | 145 days | |
Weighted Average Interest Rate | 3.53% | |
Linked and Non-linked Transactions | Trust Certificates - Term Repurchase Facilities | RSO Repo SPE Trust 2015 | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 62,514 | |
Weighted Average Remaining Maturity | 324 days | |
Weighted Average Interest Rate | 6.98% | |
Linked and Non-linked Transactions | Trust Certificates - Term Repurchase Facilities | RSO Repo SPE Trust 2017 | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 75,331 | |
Weighted Average Remaining Maturity | 2 years 8 months 12 days | |
Weighted Average Interest Rate | 5.43% |
BORROWINGS (CRE _ Term Repurcha
BORROWINGS (CRE – Term Repurchase Facilities) (Details) | Apr. 02, 2013USD ($)option | Sep. 30, 2015USD ($) | Dec. 31, 2017 |
RCC Real Estate SPE 6 | |||
Debt Instrument [Line Items] | |||
Commitment fee percentage | 0.65% | ||
Residential Investments - Term Repurchase Facility | Morgan Stanley Bank | RCC Real Estate SPE 6 | |||
Debt Instrument [Line Items] | |||
Maximum amount of facility | $ 250,000,000 | ||
Debt instrument term, option to extend | 1 year | ||
Debt instrument term | 3 years | ||
Residential Investments - Term Repurchase Facility | Morgan Stanley Bank | RCC Real Estate SPE 6 | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.25% | ||
Unused fee, percent | 0.25% | ||
Unused fee, outstanding borrowing threshold, percent | 50.00% | ||
Residential Investments - Term Repurchase Facility | Morgan Stanley Bank | RCC Real Estate SPE 6 | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.75% | ||
Unused fee, percent | 0.50% | ||
Unused fee, outstanding borrowing threshold, percent | 65.00% | ||
RCC Real Estate | CRE - Term Repurchase Facilities | Wells Fargo Bank | |||
Debt Instrument [Line Items] | |||
Maximum amount of facility | $ 400,000,000 | ||
Debt instrument term, number of options to extend | option | 3 | ||
Debt instrument term, option to extend | 1 year | ||
RCC Real Estate | CRE - Term Repurchase Facilities | Wells Fargo Bank | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
RCC Real Estate | CRE - Term Repurchase Facilities | Wells Fargo Bank | London Interbank Offered Rate (LIBOR) | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.75% |
BORROWINGS (CMBS _ Term Repurch
BORROWINGS (CMBS – Term Repurchase Facilities) (Details) - Wells Fargo Bank - RCC Real Estate And RCC Commercial - CMBS - Term Repurchase Facilities | 1 Months Ended |
Feb. 28, 2011USD ($)party | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.00% |
Maximum | |
Debt Instrument [Line Items] | |
Number of wholly-owned subsidiary parties | party | 2 |
Face amount of debt issued | $ | $ 100,000,000 |
BORROWINGS (Trust Certificates
BORROWINGS (Trust Certificates - Term Repurchase Facilities) (Details) - USD ($) | 1 Months Ended | |||
Sep. 30, 2017 | Nov. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Trust Certificates - Term Repurchase Facilities | RSO Repo SPE Trust 2017 | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 49,913,000 | |||
Debt instrument term | 3 years | |||
Trust Certificates - Term Repurchase Facilities | RSO Repo SPE Trust 2017 | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 3.95% | |||
Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 477,917,000 | $ 451,510,000 | ||
Repurchase Agreements | RSO Repo SPE Trust 2017 | Trust Certificates - Term Repurchase Facilities | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | 49,596,000 | 0 | ||
Repurchase Agreements | RSO Repo SPE Trust 2015 | Trust Certificates - Term Repurchase Facilities | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 26,598,000 | $ 26,548,000 | $ 26,385,000 | |
Debt instrument term | 3 years | |||
Basis spread on variable rate | 5.50% |
BORROWINGS (Contractual Commitm
BORROWINGS (Contractual Commitments) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | |
Total | $ 1,163,485 |
2,018 | 497,846 |
2,019 | 0 |
2,020 | 70,312 |
2,021 | 0 |
2022 and Thereafter | 595,327 |
4.50% Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Total | 127,124 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
2022 and Thereafter | 127,124 |
6.00% Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Total | 69,525 |
2,018 | 69,525 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
2022 and Thereafter | 0 |
8.00% Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Total | 20,716 |
2,018 | 0 |
2,019 | 0 |
2,020 | 20,716 |
2,021 | 0 |
2022 and Thereafter | 0 |
CRE securitizations | |
Debt Instrument [Line Items] | |
Total | 416,655 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
2022 and Thereafter | 416,655 |
Unsecured Junior Subordinated Debentures | |
Debt Instrument [Line Items] | |
Total | 51,548 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
2022 and Thereafter | 51,548 |
Repurchase and credit facilities | |
Debt Instrument [Line Items] | |
Total | 477,917 |
2,018 | 428,321 |
2,019 | 0 |
2,020 | 49,596 |
2,021 | 0 |
2022 and Thereafter | $ 0 |
SHARE ISSUANCE AND REPURCHASE (
SHARE ISSUANCE AND REPURCHASE (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 29 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2017 | Jun. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Mar. 31, 2016 | Aug. 31, 2015 | Mar. 31, 2013 | |
Class of Stock [Line Items] | |||||||||
Preferred stock redemption charge | $ (3,800,000) | $ 3,803,000 | $ 111,000 | $ 3,803,000 | |||||
Repurchase program, authorized amount (up to) | $ 50,000,000 | ||||||||
Shares repurchased during period, value | $ 35,200,000 | ||||||||
Shares, acquired (in shares) | 2,800,000 | ||||||||
Stock acquired, percentage | 8.30% | ||||||||
Proceeds from dividend reinvestment and stock purchase plan (in shares) | 10,000 | ||||||||
Stock issued during period, value, dividend reinvestment plan | $ 117,000 | ||||||||
Equity and Debt Securities Repurchase Program | |||||||||
Class of Stock [Line Items] | |||||||||
Stock repurchase program, authorized amount (up to) | $ 50,000,000 | ||||||||
Stock repurchase program, remaining authorized repurchase amount | $ 44,900,000 | $ 44,900,000 | $ 44,900,000 | $ 44,900,000 | |||||
8.50% Series A Preferred Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, coupon authorized | 8.50% | 8.50% | |||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | $ 25 | $ 25 | $ 25 | ||||
Preferred stock, shares outstanding (in shares) | 1,069,016 | 1,069,016 | 1,069,016 | 1,069,016 | 1,069,016 | ||||
8.25% Series B Preferred Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, coupon authorized | 8.25% | 8.25% | |||||||
Shares redeemed (in shares) | 930,983 | ||||||||
Redemption price per share (in dollars per share) | $ 25 | $ 25 | $ 25 | $ 25 | |||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | $ 25 | $ 25 | $ 25 | ||||
Shares repurchased during period, value | $ 3,100,000 | ||||||||
Shares, acquired (in shares) | 196,000 | ||||||||
Stock acquired, percentage | 3.40% | ||||||||
Preferred stock, shares outstanding (in shares) | 4,613,596 | 4,613,596 | 4,613,596 | 5,544,579 | 4,613,596 | ||||
Weighted average offering price (in dollars per share) | $ 24.02 | ||||||||
Series A and Series B | |||||||||
Class of Stock [Line Items] | |||||||||
Stock redeemed during period, value | $ 50,000,000 | ||||||||
8.625% Series C Preferred Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, coupon authorized | 8.625% | 8.625% | |||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | $ 25 | $ 25 | $ 25 | ||||
Preferred stock, shares outstanding (in shares) | 4,800,000 | 4,800,000 | 4,800,000 | 4,800,000 | 4,800,000 | ||||
Weighted average offering price (in dollars per share) | $ 25 | ||||||||
8.625% Series C Preferred Stock | London Interbank Offered Rate (LIBOR) | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, dividend payment rate, variable, basis spread on variable rate | 5.927% | 5.927% | 5.927% | 5.927% | |||||
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 (Detai
SHARE-BASED COMPENSATION (Details) | 12 Months Ended | ||||
Dec. 31, 2017USD ($)Directorshares | Dec. 31, 2016USD ($)Directorshares | Dec. 31, 2015USD ($)Director | Jun. 30, 2011shares | Jul. 31, 2007shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of non-executive directors granted shares | Director | 8 | ||||
Deferred compensation arrangement with individual, cash awards, percentage | 75.00% | ||||
Deferred compensation arrangement with individual, common stock awards, percentage | 25.00% | ||||
Shares issued pursuant to the Management Agreement (in shares) | shares | 51,300 | ||||
Incentive management fee pursuant to the Management Agreement | $ 539,000 | $ 0 | $ 0 | ||
Equity Compensation Expense | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Nonvested awards, compensation cost not yet recognized | $ 1,400,000 | $ 891,000 | |||
Weighted average remaining contractual term | 2 years 8 days | 2 years 6 months 19 days | |||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of non-executive directors granted shares | Director | 7 | ||||
Restricted Stock | Non-Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Estimated fair value of shares granted | $ 2,700,000 | $ 2,300,000 | $ 4,900,000 | ||
Number of non-executive directors granted shares | Director | 8 | 8 | |||
Restricted Stock | Non-Employee Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Estimated fair value of shares granted | $ 325,000 | $ 290,000 | $ 256,000 | ||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options granted (in shares) | shares | 0 | 0 | |||
Weighted average remaining contractual term | 10 years | ||||
2007 Omnibus Equity Compensation Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of share options authorized for issue (in shares) | shares | 1,350,000 | 500,000 |
SHARE-BASED COMPENSATION (Restr
SHARE-BASED COMPENSATION (Restricted Stock Activity) (Details) | 12 Months Ended |
Dec. 31, 2017shares | |
Non-Employee Directors | |
Restricted common stock transactions [Roll Forward] | |
Unvested shares, beginning of period (in shares) | 27,320 |
Issued (shares) | 37,492 |
Vested (shares) | (25,948) |
Forfeited (shares) | (4,299) |
Unvested shares, end of period (in shares) | 34,565 |
Non-Employees | |
Restricted common stock transactions [Roll Forward] | |
Unvested shares, beginning of period (in shares) | 301,486 |
Issued (shares) | 321,789 |
Vested (shares) | (182,511) |
Forfeited (shares) | (20,902) |
Unvested shares, end of period (in shares) | 419,862 |
Employees | |
Restricted common stock transactions [Roll Forward] | |
Unvested shares, beginning of period (in shares) | 71,244 |
Issued (shares) | 12,019 |
Vested (shares) | (53,205) |
Forfeited (shares) | (1,412) |
Unvested shares, end of period (in shares) | 28,646 |
Non-Employee Directors, Non-Employees, and Employees | |
Restricted common stock transactions [Roll Forward] | |
Unvested shares, beginning of period (in shares) | 400,050 |
Issued (shares) | 371,300 |
Vested (shares) | (261,664) |
Forfeited (shares) | (26,613) |
Unvested shares, end of period (in shares) | 483,073 |
SHARE-BASED COMPENSATION (Re101
SHARE-BASED COMPENSATION (Restricted Common Stock Grants) (Details) - 2007 Omnibus Equity Compensation Plan - Restricted Stock | 12 Months Ended |
Dec. 31, 2017shares | |
January 25, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares (in shares) | 333,808 |
Vesting per Year | 33.30% |
February 1, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares (in shares) | 4,242 |
Vesting per Year | 100.00% |
March 8, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares (in shares) | 18,450 |
Vesting per Year | 100.00% |
March 13, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares (in shares) | 4,299 |
Vesting per Year | 100.00% |
June 1, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares (in shares) | 3,575 |
Vesting per Year | 100.00% |
June 6, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares (in shares) | 3,680 |
Vesting per Year | 100.00% |
September 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares (in shares) | 3,246 |
Vesting per Year | 100.00% |
SHARE-BASED COMPENSATION (Statu
SHARE-BASED COMPENSATION (Status of Vested Stock Options) (Details) - Vested $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 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 | (16,250) |
Outstanding end of period (in shares) | shares | 10,000 |
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 dollars per share) | $ / shares | 59.52 |
Outstanding end of period (in dollars per share) | $ / shares | $ 25.60 |
Weighted Average Remaining Contractual Term | 3 years 4 months 16 days |
Aggregate Intrinsic Value | $ | $ 0 |
SHARE-BASED COMPENSATION (Compo
SHARE-BASED COMPENSATION (Components of Equity Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | $ 2,738 | $ 3,025 | $ 2,420 |
Non-Employees | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 2,456 | 2,758 | 2,163 |
Non-Employees | Restricted Stock | Accelerated Stock Vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 691 | ||
Non-Employee Directors | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | $ 282 | $ 267 | $ 257 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Net income (loss) from continuing operations | $ 970 | $ 24,745 | $ 12,568 | $ 9,174 | $ 3,206 | $ (34,300) | $ 10,908 | $ 8,852 | $ 47,457 | $ (11,334) | $ 11,079 | |
Net income allocated to preferred shares | 6,014 | 6,014 | 6,015 | 6,014 | 6,014 | 6,015 | 6,014 | 6,048 | 24,057 | 24,091 | 24,437 | |
Carrying value (less than) in excess of consideration paid for preferred shares | $ 3,800 | (3,803) | (111) | (3,803) | ||||||||
Carrying value (less than) in excess of consideration paid for preferred shares | 0 | 0 | 0 | 0 | 0 | 1,611 | 1,500 | 0 | ||||
Net loss (income) allocable to non-controlling interest, net of taxes | 0 | 0 | (95) | (101) | (16) | (63) | (60) | (90) | (196) | (229) | 6,628 | |
Net income (loss) from continuing operations allocable to common shares | 19,793 | (33,696) | (19,986) | |||||||||
Net loss (income) from discontinued operations, net of tax | (3,284) | (6,087) | (4,184) | (561) | (6,728) | (11,321) | (6,379) | 5,168 | (14,116) | (19,260) | 6,104 | |
Net income (loss) allocable to common shares | $ (12,131) | $ 12,644 | $ 2,464 | $ 2,700 | $ (9,520) | $ (51,573) | $ (1,536) | $ 9,673 | $ 5,677 | $ (52,956) | $ (13,882) | |
Net income (loss) per common share - basic | ||||||||||||
Weighted average number of shares outstanding (in shares) | 30,836,400 | 30,539,369 | 32,280,319 | |||||||||
Continuing operations (in dollars per share) | $ (0.28) | $ 0.61 | $ 0.22 | $ 0.11 | $ (0.09) | $ (1.32) | $ 0.16 | $ 0.15 | $ 0.64 | $ (1.10) | $ (0.62) | |
Discontinued operations (in dollars per share) | (0.11) | (0.20) | (0.14) | (0.02) | (0.22) | (0.37) | (0.21) | 0.17 | (0.46) | (0.63) | 0.19 | |
TOTAL NET INCOME (LOSS) PER COMMON SHARE - BASIC (in dollars per shares) | (0.39) | 0.41 | 0.08 | 0.09 | (0.31) | (1.69) | (0.05) | 0.32 | $ 0.18 | $ (1.73) | $ (0.43) | |
Net income (loss) per common share - diluted: | ||||||||||||
Weighted average number of shares outstanding (in shares) | 30,836,400 | 30,539,369 | 32,280,319 | |||||||||
Additional shares due to assumed conversion of dilutive instruments (in shares) | 239,387 | 0 | 0 | |||||||||
Adjusted weighted-average number of common shares outstanding (in shares) | 31,075,787 | 30,539,369 | 32,280,319 | |||||||||
Continuing operations (in dollars per share) | (0.28) | 0.61 | 0.22 | 0.11 | (0.09) | (1.32) | 0.16 | 0.15 | $ 0.64 | $ (1.10) | $ (0.62) | |
Discontinued operations (in dollars per share) | (0.11) | (0.20) | (0.14) | (0.02) | (0.22) | (0.37) | (0.21) | 0.17 | (0.46) | (0.63) | 0.19 | |
NET INCOME (LOSS) PER COMMON SHARE - DILUTED (in dollars per shares) | $ (0.39) | $ 0.41 | $ 0.08 | $ 0.09 | $ (0.31) | $ (1.69) | $ (0.05) | $ 0.32 | $ 0.18 | $ (1.73) | $ (0.43) | |
4.50% Convertible Senior Notes | ||||||||||||
Net income (loss) per common share - diluted: | ||||||||||||
Debt instrument, interest rate, stated percentage | 4.50% | 4.50% | 4.50% | |||||||||
6.00% Convertible Senior Notes | ||||||||||||
Net income (loss) per common share - diluted: | ||||||||||||
Debt instrument, interest rate, stated percentage | 6.00% | 6.00% | 6.00% | |||||||||
8.00% Convertible Senior Notes | ||||||||||||
Net income (loss) per common share - diluted: | ||||||||||||
Debt instrument, interest rate, stated percentage | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | |||||||
6.00%, 8.00%, and 4.50% Convertible Senior Notes | ||||||||||||
Net income (loss) per common share - diluted: | ||||||||||||
Potentially dilutive shares excluded from calculation due to anti-dilutive effect (in shares) | 11,238,408 | 9,002,864 | 9,002,864 |
ACCUMULATED OTHER COMPREHENS105
ACCUMULATED OTHER COMPREHENSIVE (LOSS) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at January 1, 2017 | $ 3,081 |
Other comprehensive gain (loss) before reclassifications (net of taxes of $512) | (1,268) |
Amounts reclassified from accumulated other comprehensive income | (516) |
Balance at December 31, 2017 | 1,297 |
Unrealized gain (loss) on derivatives arising during period, tax | 512 |
Net unrealized (loss) gain on derivatives | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at January 1, 2017 | (18) |
Other comprehensive gain (loss) before reclassifications (net of taxes of $512) | 602 |
Amounts reclassified from accumulated other comprehensive income | 18 |
Balance at December 31, 2017 | 602 |
Net unrealized (loss) gain on investment securities available-for-sale | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at January 1, 2017 | 3,099 |
Other comprehensive gain (loss) before reclassifications (net of taxes of $512) | (1,870) |
Amounts reclassified from accumulated other comprehensive income | (534) |
Balance at December 31, 2017 | $ 695 |
RELATED PARTY TRANSACTIONS (Man
RELATED PARTY TRANSACTIONS (Management Agreement) (Details) | 1 Months Ended | 12 Months Ended |
Dec. 31, 2017USD ($)period | Dec. 31, 2017USD ($) | |
Related Party Transactions [Abstract] | ||
Investment management fee, percentage fee of equity | 8.33% | 8.33% |
Investment management fee equity multiplier | 1.50% | 1.50% |
Investment management fee, monthly amount | $ | $ 937,500 | $ 937,500 |
Investment management fee, number of successive months | 15 months | |
Incentive compensation multiplier | 20.00% | 20.00% |
Incentive compensation, weighted average price share multiplier, one | 1.75% | 1.75% |
Weighted average price share multiplier | 0.4375% | 0.4375% |
Weighted average price share multiplier, spread on multiplier, percentage of base rate | 25.00% | 25.00% |
Incentive compensation, maximum percentage of net income before such fees | 20.00% | 20.00% |
Related Party Transaction [Line Items] | ||
Deferred compensation arrangement with individual, cash awards, percentage | 75.00% | |
Deferred compensation arrangement with individual, common stock awards, percentage | 25.00% | |
Incentive compensation paid in common stock minimum holding period before sale | 1 year | |
Average closing price period for shares traded on a securities exchange | 30 days | |
Average closing price time period before issuance for shares traded on a securities exchange | 3 days | |
Average closing price period for shares traded over-the-counter | 30 days | |
Average closing price time period before issuance for shares traded over-the-counter | 3 days | |
Renewal period | 1 year | |
Management agreement, required termination notice period | 180 days | |
Investment management agreement termination fee multiplier | 400.00% | 400.00% |
Voting percentage of independent auditors required to cancel investment manager agreement | 66.66% | 66.66% |
Number of 12-month periods for measurement of termination fee for investment management agreement | period | 2 | |
Management agreement, required termination notice period, with cause | 30 days | |
Management agreement, termination for cause terms, continued material breach of provision of agreement, period | 30 days | |
Management agreement, termination for cause terms, period following change in control, change in control detrimental to manager | 18 months | |
Minimum | ||
Related Party Transaction [Line Items] | ||
Percentage of incentive compensation manager may elect to receive in common stock | 25.00% | 25.00% |
Resource Capital Corp | Manager pursuant to the Management Agreement | ||
Related Party Transaction [Line Items] | ||
Deferred compensation arrangement with individual, cash awards, percentage | 75.00% | 75.00% |
Deferred compensation arrangement with individual, common stock awards, percentage | 25.00% | 25.00% |
RELATED PARTY TRANSACTIONS (Rel
RELATED PARTY TRANSACTIONS (Relationship with C-III and Certain of their Subsidiaries) (Details) | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017USD ($)Transactionshares | Nov. 30, 2013USD ($)shares | Dec. 31, 2017USD ($)Transactionshares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Nov. 30, 2010USD ($) | |
Related Party Transaction [Line Items] | ||||||
Base management fees paid by the Company | $ 13,117,000 | $ 12,991,000 | $ 13,306,000 | |||
Cash awards, percentage | 75.00% | |||||
Common stock awards, percentage | 25.00% | |||||
Incentive management fee pursuant to the Management Agreement | $ 539,000 | 0 | 0 | |||
General and administrative | $ 15,846,000 | $ 15,197,000 | 16,346,000 | |||
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 | |||||
C-III Asset Management LLC | Resource Capital Corp | ||||||
Related Party Transaction [Line Items] | ||||||
Number of common shares of the Company owned by a related party (in shares) | shares | 766,718 | 766,718 | ||||
Ownership percentage | 2.40% | |||||
Resource America | Resource Capital Corp | ||||||
Related Party Transaction [Line Items] | ||||||
Due from related parties, waiver fee | $ 1,500,000 | |||||
Manager pursuant to the Management Agreement | Resource Capital Corp | ||||||
Related Party Transaction [Line Items] | ||||||
Base management fees paid by the Company | $ 10,800,000 | 12,400,000 | 12,800,000 | |||
Incentive management fees | $ 2,200,000 | 0 | 0 | |||
Cash awards, percentage | 75.00% | 75.00% | ||||
Incentive management fee pursuant to the management agreement | $ 1,600,000 | |||||
Common stock awards, percentage | 25.00% | 25.00% | ||||
Incentive management fee pursuant to the Management Agreement | $ 539,000 | |||||
General and administrative | 5,700,000 | 5,000,000 | 5,500,000 | |||
Investment maximum | $ 13,000,000 | |||||
Management fee as a percentage of net profits in excess of preferred return | 20.00% | |||||
Total indebtedness | $ 1,000,000 | 1,000,000 | 1,400,000 | |||
Accrued base management fees | 1,000,000 | 1,000,000 | 1,300,000 | |||
Expense reimbursement payable | 3,000 | 3,000 | 35,000 | |||
Oversight fee, management fees | $ 63,000 | $ 63,000 | 138,000 | |||
Number of executed CDO transactions | Transaction | 6 | 6 | ||||
Number of liquidated CDO transactions | Transaction | 3 | 3 | ||||
Resource Capital Markets, Inc. | Resource Capital Corp | ||||||
Related Party Transaction [Line Items] | ||||||
Base management fees paid by the Company | $ 0 | 0 | 0 | |||
Expense reimbursements | 0 | 10,000 | $ 128,000 | |||
Total indebtedness | $ 124,000 | $ 124,000 | $ 216,000 |
RELATED PARTY TRANSACTIONS (108
RELATED PARTY TRANSACTIONS (Relationship with LEAF Financial) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Related Party Transaction [Line Items] | |||||
Equity in earnings (losses) of unconsolidated entities | $ 36,858,000 | $ 3,413,000 | $ (33,000) | ||
Investments in unconsolidated entities | [1] | 12,051,000 | 87,919,000 | ||
Variable Interest Entity, Not Primary Beneficiary | LCC | |||||
Related Party Transaction [Line Items] | |||||
Proceeds from sale of equity interest | $ 84,300,000 | ||||
Investment in LCC Preferred Stock | |||||
Related Party Transaction [Line Items] | |||||
Equity in earnings (losses) of unconsolidated entities | 41,465,000 | 943,000 | $ 2,601,000 | ||
Investments in unconsolidated entities | $ 0 | $ 42,960,000 | |||
[1] | December 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $— Restricted cash$20,846 $3,308 Investments securities available-for-sale, pledged as collateral, at fair value— 369 Loans held for sale13 1,007Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million603,110 747,726 Interest receivable3,347 3,153 Principal paydown receivable72,207 5,820 Other assets73 58 Total assets of consolidated VIEs$699,596 $761,441 |
RELATED PARTY TRANSACTIONS (109
RELATED PARTY TRANSACTIONS (Relationship with CVC Credit Partners, LLC) (Details) | 1 Months Ended | 12 Months Ended | ||||||
May 31, 2013 | Oct. 31, 2012 | Feb. 28, 2011USD ($)Entity | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Aug. 31, 2017 | ||
Related Party Transaction [Line Items] | ||||||||
Number of CLO issuers | Entity | 5 | |||||||
Intangible assets | [1] | $ 0 | $ 213,000 | |||||
Investment in RCAM, Investment Two | ||||||||
Related Party Transaction [Line Items] | ||||||||
Impairment of intangible assets | 177,000 | 3,700,000 | $ 2,400,000 | |||||
Management Contracts | ||||||||
Related Party Transaction [Line Items] | ||||||||
Intangible assets | $ 0 | 213,000 | ||||||
Resource Capital Corp | ||||||||
Related Party Transaction [Line Items] | ||||||||
Preferred equity interest acquired | 66.60% | |||||||
RCC Commercial II | Whitney CLO I | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership percentage in VIE | 68.30% | 68.30% | ||||||
CVC Capital Partners | Resource America | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership percentage | 24.00% | |||||||
CVC Capital Partners | Apidos Capital Management LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of subordinated fees the company is entitled to collect | 10.00% | |||||||
Percentage of incentive fees the company is entitled to collect | 50.00% | |||||||
Subordinated fees received | $ 1,400,000 | $ 1,800,000 | $ 1,400,000 | |||||
Churchill Pacific Asset Management LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Assets under management, carrying amount | $ 1,900,000,000 | |||||||
Churchill Pacific Asset Management LLC | Resource Capital Corp | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership percentage | 100.00% | |||||||
Purchase price of acquired entity paid by acquiring entity | $ 22,500,000 | |||||||
[1] | December 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $— Restricted cash$20,846 $3,308 Investments securities available-for-sale, pledged as collateral, at fair value— 369 Loans held for sale13 1,007Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million603,110 747,726 Interest receivable3,347 3,153 Principal paydown receivable72,207 5,820 Other assets73 58 Total assets of consolidated VIEs$699,596 $761,441 |
RELATED PARTY TRANSACTIONS (110
RELATED PARTY TRANSACTIONS (Relationship with Long Term Care Conversion Funding) (Details) - Manager pursuant to the Management Agreement - USD ($) | 1 Months Ended | ||
Dec. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2012 | |
Related Party Transaction [Line Items] | |||
Expense reimbursements, annual fee | $ 250,000 | $ 550,000 | |
Expense reimbursements, annual fee, term | 2 years | 2 years |
RELATED PARTY TRANSACTIONS (111
RELATED PARTY TRANSACTIONS (Relationship with Resource Real Estate) (Details) - USD ($) | Feb. 01, 2015 | Oct. 31, 2017 | May 31, 2017 | Jun. 30, 2016 | Aug. 31, 2015 | Jun. 30, 2015 | Feb. 28, 2015 | Sep. 30, 2014 | Jul. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2009 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 31, 2017 |
Related Party Transaction [Line Items] | |||||||||||||||
Base management fees paid by the Company | $ 13,117,000 | $ 12,991,000 | $ 13,306,000 | ||||||||||||
Equity in earnings (losses) of unconsolidated entities | 36,858,000 | 3,413,000 | (33,000) | ||||||||||||
Placement agent fee | $ 175,000 | ||||||||||||||
Cash distribution | 16,159,000 | 0 | 0 | ||||||||||||
Equity in earnings (losses) of unconsolidated entities | 39,545,000 | 5,973,000 | 2,388,000 | ||||||||||||
Proceeds from partial redemption | $ 50,046,000 | 0 | 0 | ||||||||||||
Resource America | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Payments to acquire additional interest in subsidiaries | $ 2,800,000 | ||||||||||||||
RCM Global LLC | RCC Residential, Inc. | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Gain on sale of investments | 5,000,000 | ||||||||||||||
Cash distribution | 753,000 | ||||||||||||||
Ownership percentage in VIE | 63.20% | ||||||||||||||
RCC CRE Notes 2013 | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Closing transaction amount | 353,900,000 | $ 307,800,000 | $ 307,800,000 | ||||||||||||
Special servicing fee rate | 0.25% | ||||||||||||||
Placement agent fee | $ 205,000 | ||||||||||||||
RCC 2015-CRE3 | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Closing transaction amount | $ 346,200,000 | ||||||||||||||
Placement agent fee | $ 100,000 | ||||||||||||||
Resource Capital Corp. 2015-CRE4, Ltd. | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Closing transaction amount | $ 312,900,000 | ||||||||||||||
Placement agent fee | $ 85,000 | ||||||||||||||
RCC 2017-CRE5 | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Closing transaction amount | $ 376,700,000 | ||||||||||||||
Placement agent fee | 0 | ||||||||||||||
RRE VIP Borrower, LLC | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Acquisition of membership interests | $ 2,100,000 | ||||||||||||||
Equity in earnings (losses) of unconsolidated entities | $ 45,000 | 58,000 | 325,000 | ||||||||||||
Ownership percentage | 0.00% | ||||||||||||||
RCC Residential, Inc. | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Acquisition of membership interests | $ 15,000,000 | ||||||||||||||
Ownership percentage | 63.80% | ||||||||||||||
Equity in earnings (losses) of unconsolidated entities | $ (274,000) | 14,000 | |||||||||||||
Carrying value of investments | 0 | ||||||||||||||
Pelium Capital Partners, L.P. | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Acquisition of membership interests | $ 17,500,000 | ||||||||||||||
Equity in earnings (losses) of unconsolidated entities | $ (1,856,000) | 3,991,000 | 0 | ||||||||||||
Ownership percentage | 80.40% | 80.20% | |||||||||||||
Equity in earnings (losses) of unconsolidated entities | $ (1,900,000) | 4,000,000 | |||||||||||||
Payments to acquire additional interest in subsidiaries | $ 2,500,000 | $ 2,500,000 | |||||||||||||
Ownership interest | 10.00% | ||||||||||||||
Proceeds from partial redemption | 13,600,000 | ||||||||||||||
Carrying value of investments | 10,500,000 | 26,000,000 | |||||||||||||
Pearlmark Mezz | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Equity in earnings (losses) of unconsolidated entities | $ 165,000 | 968,000 | $ (460,000) | ||||||||||||
Ownership percentage | 0.00% | ||||||||||||||
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% | 25.00% | |||||||||||||
Proceeds from sale of equity interest | $ 16,200,000 | ||||||||||||||
Resource Real Estate | RRE VIP Borrower, LLC | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Asset management fees percentage | 1.00% | ||||||||||||||
Resource Real Estate | Commercial Real Estate Debt Investments | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party transaction, due to related party | $ 502,000 | 899,000 | |||||||||||||
Accounts receivable, related parties | 185,000 | 50,000 | |||||||||||||
Resource Real Estate Management, LLC | RRE VIP Borrower, LLC | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Base management fees paid by the Company | 0 | $ 0 | |||||||||||||
C-III Asset Management LLC | Resource Capital Corp | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Ownership percentage | 2.40% | ||||||||||||||
C-III Asset Management LLC | RCC 2017-CRE5 | Asset Management Agreement | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Servicing fee rate | 0.05% | ||||||||||||||
Servicing fees earned | 96,000 | ||||||||||||||
Servicing fees payable | $ 14,000 | ||||||||||||||
Percentage of total collateral pool value to securitization, related party contribution | 10.20% | ||||||||||||||
Resource America | Pearlmark Mezz | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Ownership percentage in VIE | 50.00% |
DISTRIBUTIONS (Details)
DISTRIBUTIONS (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DISTRIBUTIONS [Abstract] | |||
Dividend per share (in usd per share) | $ 0.20 | $ 1.31 | $ 2.34 |
DISTRIBUTIONS - Dividends Decla
DISTRIBUTIONS - Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Class of Stock [Line Items] | |||||||||||||||
Dividend Per Share (in usd per share) | $ 0.20 | $ 1.31 | $ 2.34 | ||||||||||||
Common Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Total Dividend Paid | $ 1,572 | $ 1,566 | $ 1,567 | $ 1,568 | $ 1,550 | $ 13,012 | $ 13,051 | $ 13,073 | $ 13,274 | $ 20,667 | $ 21,426 | $ 21,444 | |||
Dividend Per Share (in usd per share) | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.42 | $ 0.42 | $ 0.42 | $ 0.42 | $ 0.64 | $ 0.64 | $ 0.64 | |||
Preferred Shares - Series A | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Total Dividend Paid | $ 568 | $ 568 | $ 568 | $ 568 | $ 568 | $ 568 | $ 568 | $ 568 | $ 568 | $ 568 | $ 568 | $ 568 | |||
Dividend Per Share (in usd per share) | $ 0.53125 | $ 0.53125 | $ 0.53125 | $ 0.531250 | $ 0.53125 | $ 0.53125 | $ 0.53125 | $ 0.53125 | $ 0.53125 | $ 0.53125 | $ 0.53125 | $ 0.53125 | |||
Preferred Shares - Series B | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Total Dividend Paid | $ 2,859 | $ 2,859 | $ 2,859 | $ 2,859 | $ 2,859 | $ 2,859 | $ 2,859 | $ 2,859 | $ 2,960 | $ 2,960 | $ 2,960 | $ 2,960 | |||
Dividend Per Share (in usd per share) | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | |||
Preferred Shares - Series C | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Total Dividend Paid | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | |||
Dividend Per Share (in usd per share) | $ 0.5390630 | $ 0.5390630 | $ 0.5390630 | $ 0.5390630 | $ 0.5390630 | $ 0.5390630 | $ 0.5390630 | $ 0.5390630 | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 |
FAIR VALUE OF FINANCIAL INST114
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets: | |||
Investment securities available-for-sale | $ 211,737 | $ 124,968 | |
Investment securities, trading | [1] | 178 | 4,492 |
Derivatives | [1] | 602 | 647 |
Level 1 | |||
Assets: | |||
Investment securities available-for-sale | 0 | ||
Level 2 | |||
Assets: | |||
Investment securities available-for-sale | 0 | ||
Level 3 | |||
Assets: | |||
Investment securities available-for-sale | 62,841 | ||
Fair Value, Measurements, Recurring | |||
Assets: | |||
Investment securities available-for-sale | 211,737 | 124,968 | |
Investment securities, trading | 178 | 4,492 | |
Loans held for sale | 13 | 1,007 | |
Derivatives | 602 | 647 | |
Total assets at fair value | 212,530 | 131,114 | |
Liabilities: | |||
Derivatives | 76 | 97 | |
Total liabilities at fair value | 76 | 97 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Assets: | |||
Investment securities available-for-sale | 0 | 0 | |
Investment securities, trading | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Derivatives | 0 | 0 | |
Total assets at fair value | 0 | 0 | |
Liabilities: | |||
Derivatives | 0 | 0 | |
Total liabilities at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 2 | |||
Assets: | |||
Investment securities available-for-sale | 0 | 0 | |
Investment securities, trading | 0 | 369 | |
Loans held for sale | 0 | 787 | |
Derivatives | 602 | 647 | |
Total assets at fair value | 602 | 1,803 | |
Liabilities: | |||
Derivatives | 76 | 97 | |
Total liabilities at fair value | 76 | 97 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Assets: | |||
Investment securities available-for-sale | 211,737 | 124,968 | |
Investment securities, trading | 178 | 4,123 | |
Loans held for sale | 13 | 220 | |
Derivatives | 0 | 0 | |
Total assets at fair value | 211,928 | 129,311 | |
Liabilities: | |||
Derivatives | 0 | 0 | |
Total liabilities at fair value | $ 0 | $ 0 | |
[1] | December 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $— Restricted cash$20,846 $3,308 Investments securities available-for-sale, pledged as collateral, at fair value— 369 Loans held for sale13 1,007Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million603,110 747,726 Interest receivable3,347 3,153 Principal paydown receivable72,207 5,820 Other assets73 58 Total assets of consolidated VIEs$699,596 $761,441 |
FAIR VALUE OF FINANCIAL INST115
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Total gains or losses (realized or unrealized): | |||
Net realized and unrealized gain (loss) on investment securities available-for-sale and loans | $ 18,334 | $ 4,066 | $ 18,459 |
Structured Notes | |||
Total gains or losses (realized or unrealized): | |||
Net realized and unrealized gain (loss) on investment securities available-for-sale and loans | (963) | ||
Loans Held for Sale | |||
Total gains or losses (realized or unrealized): | |||
Net realized and unrealized gain (loss) on investment securities available-for-sale and loans | 111 | ||
Level 3 | |||
Total gains or losses (realized or unrealized): | |||
Balance, January 1, 2017 | 129,311 | ||
Included in earnings | 4,218 | ||
Purchases/originations | 171,929 | ||
Sales | (30,669) | ||
Paydowns | (61,342) | ||
Capitalized interest | 1,362 | ||
Included in OCI | (2,881) | ||
Balance, December 31, 2017 | 211,928 | 129,311 | |
Level 3 | CMBS | |||
Total gains or losses (realized or unrealized): | |||
Balance, January 1, 2017 | 98,087 | ||
Included in earnings | 562 | ||
Purchases/originations | 171,929 | ||
Sales | (6,390) | ||
Paydowns | (53,819) | ||
Capitalized interest | 0 | ||
Included in OCI | 1,210 | ||
Balance, December 31, 2017 | 211,579 | 98,087 | |
Level 3 | RMBS | |||
Total gains or losses (realized or unrealized): | |||
Balance, January 1, 2017 | 1,601 | ||
Included in earnings | (158) | ||
Purchases/originations | 0 | ||
Sales | (1,111) | ||
Paydowns | (256) | ||
Capitalized interest | 0 | ||
Included in OCI | (76) | ||
Balance, December 31, 2017 | 0 | 1,601 | |
Level 3 | ABS | |||
Total gains or losses (realized or unrealized): | |||
Balance, January 1, 2017 | 25,280 | ||
Included in earnings | 3,532 | ||
Purchases/originations | 0 | ||
Sales | (23,168) | ||
Paydowns | (2,833) | ||
Capitalized interest | 1,362 | ||
Included in OCI | (4,015) | ||
Balance, December 31, 2017 | 158 | 25,280 | |
Level 3 | Structured Notes | |||
Total gains or losses (realized or unrealized): | |||
Balance, January 1, 2017 | 4,123 | ||
Included in earnings | 170 | ||
Purchases/originations | 0 | ||
Sales | 0 | ||
Paydowns | (4,115) | ||
Capitalized interest | 0 | ||
Included in OCI | 0 | ||
Balance, December 31, 2017 | 178 | 4,123 | |
Level 3 | Loans Held for Sale | |||
Total gains or losses (realized or unrealized): | |||
Balance, January 1, 2017 | 220 | ||
Included in earnings | 112 | ||
Purchases/originations | 0 | ||
Sales | 0 | ||
Paydowns | (319) | ||
Capitalized interest | 0 | ||
Included in OCI | 0 | ||
Balance, December 31, 2017 | $ 13 | $ 220 |
FAIR VALUE OF FINANCIAL INST116
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities, Quantitative Information) (Details) - Nonrecurring - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Legacy CRE whole loans held for sale | $ 158,178 | |
Impaired loans | $ 4,500 | 4,500 |
Total assets at fair value | 27,000 | 162,678 |
Liabilities: | ||
Pearlmark Mezz indemnification | 703 | |
Total liabilities at fair value | 703 | |
Level 1 | ||
Assets: | ||
Legacy CRE whole loans held for sale | 0 | |
Impaired loans | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Pearlmark Mezz indemnification | 0 | |
Total liabilities at fair value | 0 | |
Level 2 | ||
Assets: | ||
Legacy CRE whole loans held for sale | 0 | |
Impaired loans | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Pearlmark Mezz indemnification | 0 | |
Total liabilities at fair value | 0 | |
Level 3 | ||
Assets: | ||
Legacy CRE whole loans held for sale | 158,178 | |
Impaired loans | 4,500 | 4,500 |
Total assets at fair value | 27,000 | $ 162,678 |
Liabilities: | ||
Pearlmark Mezz indemnification | 703 | |
Total liabilities at fair value | 703 | |
Legacy CRE whole loans held for sale | ||
Assets: | ||
Legacy CRE whole loans held for sale | 22,500 | |
Legacy CRE whole loans held for sale | Level 1 | ||
Assets: | ||
Legacy CRE whole loans held for sale | 0 | |
Legacy CRE whole loans held for sale | Level 2 | ||
Assets: | ||
Legacy CRE whole loans held for sale | 0 | |
Legacy CRE whole loans held for sale | Level 3 | ||
Assets: | ||
Legacy CRE whole loans held for sale | $ 22,500 |
FAIR VALUE OF FINANCIAL INST117
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Provision for loan and lease losses, net | $ 1,772,000 | $ 17,765,000 | $ 41,088,000 |
4.50% Convertible Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value inputs, discount rate | 7.17% | ||
Debt instrument, interest rate, stated percentage | 4.50% | ||
6.00% Convertible Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value inputs, discount rate | 4.54% | ||
Debt instrument, interest rate, stated percentage | 6.00% | ||
8.00% Convertible Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value inputs, discount rate | 4.92% | ||
Debt instrument, interest rate, stated percentage | 8.00% | 8.00% | |
Minimum | CRE Loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value inputs, discount rate | 15.00% | ||
Minimum | Interest in RCT I and RCT II | Expected Future Cash Flows | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value inputs, discount rate | 11.33% | ||
Minimum | Level 3 | CRE Loans | Expected Future Cash Flows | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans receivable, interest rate, stated percentage | 5.06% | 4.63% | |
Maximum | CRE Loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value inputs, discount rate | 25.00% | ||
Maximum | Interest in RCT I and RCT II | Expected Future Cash Flows | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value inputs, discount rate | 11.34% | ||
Maximum | Level 3 | CRE Loans | Expected Future Cash Flows | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans receivable, interest rate, stated percentage | 7.63% | 7.08% | |
Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Provision for loan and lease losses, net | $ 0 | 1,300,000 | |
Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Provision for loan and lease losses, net | $ 0 | $ 18,300,000 | $ 39,200,000 |
Nonrecurring | Level 3 | CRE Loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Provision for loan and lease losses, net | $ 1,900,000 | ||
Fair value assumptions, capitalization rate | 9.00% | 9.00% | |
Fair value inputs, discount rate | 11.00% | 11.00% | |
Nonrecurring | Minimum | Level 3 | CRE Loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value assumptions, capitalization rate | 6.38% | 5.25% | |
Nonrecurring | Minimum | Level 3 | CRE Loans Underlying Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value inputs, discount rate | 7.00% | ||
Nonrecurring | Maximum | Level 3 | CRE Loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value assumptions, capitalization rate | 8.00% | 9.00% | |
Nonrecurring | Maximum | Level 3 | CRE Loans Underlying Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value inputs, discount rate | 11.00% |
FAIR VALUE OF FINANCIAL INST118
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans held for investment | [1] | $ 1,284,822 | ||
Investment securities available-for-sale | 211,737 | $ 124,968 | ||
Carrying Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans held for investment | 1,284,822 | 1,286,278 | [1] | |
Investment securities available-for-sale | 61,841 | |||
Senior notes in CRE Securitizations | 416,655 | 480,101 | ||
Junior subordinated notes | 51,548 | 51,548 | ||
Convertible senior notes | 217,365 | 208,297 | ||
Repurchase agreements | 477,917 | 451,510 | ||
Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans held for investment | 1,294,664 | 1,292,099 | ||
Investment securities available-for-sale | 62,841 | |||
Senior notes in CRE Securitizations | 420,084 | 486,524 | ||
Junior subordinated notes | 26,574 | 27,246 | ||
Convertible senior notes | 235,385 | 215,000 | ||
Repurchase agreements | 479,383 | 453,794 | ||
Level 1 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans held for investment | 0 | 0 | ||
Investment securities available-for-sale | 0 | |||
Senior notes in CRE Securitizations | 0 | 0 | ||
Junior subordinated notes | 0 | 0 | ||
Convertible senior 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 | ||
Investment securities available-for-sale | 0 | |||
Senior notes in CRE Securitizations | 0 | 0 | ||
Junior subordinated notes | 0 | 0 | ||
Convertible senior notes | 0 | 0 | ||
Repurchase agreements | 0 | 0 | ||
Level 3 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans held for investment | 1,294,664 | 1,292,099 | ||
Investment securities available-for-sale | 62,841 | |||
Senior notes in CRE Securitizations | 420,084 | 486,524 | ||
Junior subordinated notes | 26,574 | 27,246 | ||
Convertible senior notes | 235,385 | 215,000 | ||
Repurchase agreements | $ 479,383 | $ 453,794 | ||
[1] | December 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $— Restricted cash$20,846 $3,308 Investments securities available-for-sale, pledged as collateral, at fair value— 369 Loans held for sale13 1,007Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million603,110 747,726 Interest receivable3,347 3,153 Principal paydown receivable72,207 5,820 Other assets73 58 Total assets of consolidated VIEs$699,596 $761,441 |
MARKET RISK AND DERIVATIVE I119
MARKET RISK AND DERIVATIVE INSTRUMENTS (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | 36 Months Ended | |||||||||
Dec. 31, 2017USD ($)Derivative | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($)Derivative | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)Derivative | Dec. 31, 2016USD ($)Derivative | Dec. 31, 2015USD ($) | Dec. 31, 2008Derivative | |
Derivatives, Fair Value [Line Items] | ||||||||||||
Fair value | $ 76 | $ 97 | $ 76 | $ 97 | ||||||||
Number of hedges terminated | Derivative | 18 | |||||||||||
Expense recognized in earnings for amortization of gains and losses on terminated hedges | 39 | $ 275 | ||||||||||
Interest expense | $ 15,203 | $ 13,853 | $ 14,347 | $ 14,254 | $ 13,346 | $ 13,653 | $ 13,446 | $ 13,302 | $ 57,657 | $ 53,747 | $ 56,530 | |
Interest Rate Swaps | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Number of derivative instruments held | Derivative | 7 | 0 | 7 | 0 | ||||||||
Weighted average credit spreads | 2.08% | 2.08% | ||||||||||
Notional amount | $ 41,800 | $ 41,800 | ||||||||||
Fair value | $ 602 | $ 602 | ||||||||||
Unrealized gain on non-designated derivative instruments | 602 | |||||||||||
Derivative instruments, loss reclassification from accumulated OCI to income, estimated | 18 | |||||||||||
Interest expense | $ 18 | $ 54 |
MARKET RISK AND DERIVATIVE I120
MARKET RISK AND DERIVATIVE INSTRUMENTS (Fair Value and Classification of Derivatives) (Details) $ in Thousands, € in Millions | 12 Months Ended | ||||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | |
Derivatives, Fair Value [Line Items] | |||||
Fair Value | $ 602 | $ 647 | |||
Fair Value | 76 | 97 | |||
Realized and Unrealized Gain (Loss) | (39) | $ (275) | |||
Interest Rate Swaps | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 41,750 | ||||
Notional Amount | 41,750 | 0 | |||
Interest Rate Swaps | Interest expense | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | (130) | (119) | (6,098) | ||
Interest Rate Swaps | Derivatives, at fair value | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair Value | 602 | ||||
Interest Rate Swaps | Accumulated other comprehensive income | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair Value | 602 | (18) | |||
Forward contracts - foreign currency, hedging | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 12,489 | € 11.9 | |||
Notional Amount | 3,602 | 11,700 | € 3 | € 11.1 | |
Forward contracts - foreign currency, hedging | Net realized and unrealized gain (loss) on investment securities available-for-sale and loans and derivatives | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | (1,896) | 764 | 2,925 | ||
Forward contracts - foreign currency, hedging | Derivatives, at fair value | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair Value | 647 | ||||
Fair Value | $ 76 | $ 97 | |||
Options - U.S. Treasury futures | Net realized and unrealized gain (loss) on investment securities available-for-sale and loans and derivatives | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | $ 184 |
OFFSETTING OF FINANCIAL ASSE121
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives at fair value | ||
Gross Amounts of Recognized Assets | $ 602 | $ 647 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Included in the Consolidated Balance Sheets | 602 | 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 | 602 | 647 |
Derivatives, at fair value | ||
Gross Amounts of Recognized Liabilities | 76 | 97 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 76 | 97 |
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 | 76 | 97 |
Repurchase agreements and term facilities | ||
Gross Amounts of Recognized Liabilities | 477,917 | 451,510 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 477,917 | 451,510 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 477,917 | 451,510 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | 0 |
Net Amount | 0 | 0 |
Total-liabilities | ||
Gross Amounts of Recognized Liabilities | 477,993 | 451,607 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 477,993 | 451,607 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 477,917 | 451,510 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | 0 |
Net Amount | 76 | 97 |
Fair value of securities pledged against repurchase agreements | 816,100 | $ 724,800 |
Interest Rate Swaps | ||
Derivatives at fair value | ||
Cash margin deposits related to interest rate swap contracts | 1,900 | |
Derivatives, at fair value | ||
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | $ 602 |
INCOME TAXES (Components of Inc
INCOME TAXES (Components of Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Federal | $ 994 | $ 1,733 | $ 1,705 |
State | 856 | 966 | 430 |
Total current | 1,850 | 2,699 | 2,135 |
Deferred: | |||
Federal | 3,475 | 6,707 | (423) |
State | 1,288 | 1,586 | (358) |
Total deferred | 4,763 | 8,293 | (781) |
Income tax expense (benefit) | $ 6,613 | $ 10,992 | $ 1,354 |
INCOME TAXES (Reconciliation Be
INCOME TAXES (Reconciliation Between Federal Statutory Income Tax Rate and Effective Income Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax | $ 9,301 | $ (1,103) | $ 945 |
State and local taxes, net of federal benefit | 1,415 | 1,005 | (271) |
Permanent adjustments | 37 | 0 | 149 |
True-up of prior period tax expense | (2,010) | (256) | 530 |
Valuation allowance | (2,203) | 11,294 | 0 |
Tax reform | 4,918 | 0 | 0 |
Tax reform - valuation allowance | (4,918) | 0 | 0 |
Other items | 73 | 52 | 1 |
Income tax expense (benefit) | $ 6,613 | $ 10,992 | $ 1,354 |
INCOME TAXES (Components of Def
INCOME TAXES (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred tax assets related to: | |||
Federal, state and local loss carryforwards | $ 2,261 | $ 7,933 | |
Reserve on MSR valuation | 0 | 237 | |
Accrued expenses | 393 | 118 | |
Amortization of intangibles | 416 | 0 | |
Unrealized gains (losses) | 1,702 | 1,673 | |
CLCO carryforwards | 0 | 5,680 | |
Partnership investment | 5,301 | 2,902 | |
Total deferred tax assets | 10,073 | 18,543 | |
Valuation allowance | (9,927) | (11,294) | |
Total deferred tax assets, net of valuation allowance | 146 | 7,249 | |
Deferred tax liabilities related to: | |||
Amortization of intangibles | 0 | (1,589) | |
Investment in securities | (89) | (1,320) | |
Depreciation | (57) | (85) | |
Total deferred tax liabilities | (146) | (2,994) | |
Deferred tax assets, net | [1] | $ 0 | $ 4,255 |
[1] | December 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $— Restricted cash$20,846 $3,308 Investments securities available-for-sale, pledged as collateral, at fair value— 369 Loans held for sale13 1,007Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million603,110 747,726 Interest receivable3,347 3,153 Principal paydown receivable72,207 5,820 Other assets73 58 Total assets of consolidated VIEs$699,596 $761,441 |
INCOME TAXES (Details)
INCOME TAXES (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Income Tax Disclosure [Abstract] | |
Deferred tax assets, operating loss carryforwards, domestic | $ 4,800 |
Deferred tax assets, operating loss carryforwards, state and local | 1,577 |
Operating loss carryforwards | 6,400 |
Net operating loss carryforwards | 2,300 |
Operating loss carryforwards, valuation allowance | 37,000 |
Operating loss carryforwards, valuation allowance, tax expense impact | $ 9,900 |
QUARTERLY RESULTS (Details)
QUARTERLY RESULTS (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Interest income | $ 26,229 | $ 23,983 | $ 23,635 | $ 25,471 | $ 30,087 | $ 27,107 | $ 28,408 | $ 27,016 | $ 99,318 | $ 112,618 | $ 121,918 | |
Interest expense | 15,203 | 13,853 | 14,347 | 14,254 | 13,346 | 13,653 | 13,446 | 13,302 | 57,657 | 53,747 | 56,530 | |
Net interest income | 11,026 | 10,130 | 9,288 | 11,217 | 16,741 | 13,454 | 14,962 | 13,714 | 41,661 | 58,871 | 65,388 | |
Net income (loss) from continuing operations | 970 | 24,745 | 12,568 | 9,174 | 3,206 | (34,300) | 10,908 | 8,852 | 47,457 | (11,334) | 11,079 | |
Net loss (income) from discontinued operations, net of tax | (3,284) | (6,087) | (4,184) | (561) | (6,728) | (11,321) | (6,379) | 5,168 | (14,116) | (19,260) | 6,104 | |
Net income (loss) | (2,314) | 18,658 | 8,384 | 8,613 | (3,522) | (45,621) | 4,529 | 14,020 | 33,341 | (30,594) | 17,183 | |
Net income allocated to preferred shares | (6,014) | (6,014) | (6,015) | (6,014) | (6,014) | (6,015) | (6,014) | (6,048) | (24,057) | (24,091) | (24,437) | |
Carrying value (less than) in excess of consideration paid for preferred shares | 0 | 0 | 0 | 0 | 0 | 1,611 | 1,500 | 0 | ||||
Carrying value (less than) in excess of consideration paid for preferred shares | $ 3,800 | (3,803) | (111) | (3,803) | ||||||||
Net loss (income) allocable to non-controlling interest, net of taxes | 0 | 0 | 95 | 101 | 16 | 63 | 60 | 90 | 196 | 229 | (6,628) | |
NET INCOME (LOSS) ALLOCABLE TO COMMON SHARES | $ (12,131) | $ 12,644 | $ 2,464 | $ 2,700 | $ (9,520) | $ (51,573) | $ (1,536) | $ 9,673 | $ 5,677 | $ (52,956) | $ (13,882) | |
Continuing operations (in dollars per share) | $ (0.28) | $ 0.61 | $ 0.22 | $ 0.11 | $ (0.09) | $ (1.32) | $ 0.16 | $ 0.15 | $ 0.64 | $ (1.10) | $ (0.62) | |
Discontinued operations (in dollars per share) | (0.11) | (0.20) | (0.14) | (0.02) | (0.22) | (0.37) | (0.21) | 0.17 | (0.46) | (0.63) | 0.19 | |
TOTAL NET INCOME (LOSS) PER COMMON SHARE - BASIC (in dollars per shares) | (0.39) | 0.41 | 0.08 | 0.09 | (0.31) | (1.69) | (0.05) | 0.32 | 0.18 | (1.73) | (0.43) | |
Continuing operations (in dollars per share) | (0.28) | 0.61 | 0.22 | 0.11 | (0.09) | (1.32) | 0.16 | 0.15 | 0.64 | (1.10) | (0.62) | |
Discontinued operations (in dollars per share) | (0.11) | (0.20) | (0.14) | (0.02) | (0.22) | (0.37) | (0.21) | 0.17 | (0.46) | (0.63) | 0.19 | |
NET INCOME (LOSS) PER COMMON SHARE - DILUTED (in dollars per shares) | $ (0.39) | $ 0.41 | $ 0.08 | $ 0.09 | $ (0.31) | $ (1.69) | $ (0.05) | $ 0.32 | $ 0.18 | $ (1.73) | $ (0.43) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | Feb. 05, 2018USD ($) | Jan. 31, 2018USD ($) | May 31, 2017USD ($) | Apr. 30, 2017Claims | Apr. 30, 2017Claims | Dec. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Aug. 31, 2017Claims |
Loss Contingencies [Line Items] | |||||||||
Estimated litigation liability | $ 2,200,000 | $ 0 | |||||||
Proceeds from sale of securities available-for-sale | $ 40,048,000 | 2,818,000 | $ 65,787,000 | ||||||
Commercial Real Estate Loans | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of loan categories | Loan | 2 | ||||||||
Pearlmark Mezz | |||||||||
Loss Contingencies [Line Items] | |||||||||
Proceeds from sale of securities available-for-sale | $ 16,200,000 | ||||||||
Reaves, Caito, Simpson,Heckel, Schwartz, and Greff Complaints | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, new claims filed, number | Claims | 6 | ||||||||
Greenberg, Canoles, DeCaro, And Gehan Complaints | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, new claims filed, number | Claims | 4 | ||||||||
McKinney, Sherek/Speigel, And Sebenoler Complaints | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, new claims filed, number | Claims | 3 | ||||||||
PCM | |||||||||
Loss Contingencies [Line Items] | |||||||||
Estimated litigation liability | $ 3,300,000 | 3,700,000 | |||||||
Levin v. Resource Capital Corp. | Subsequent Event | Settled Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Litigation settlement, amount awarded to other party | $ 9,500,000 | $ 13,600,000 | |||||||
Litigation settlement, amount awarded to other party, amount covered by insurance | $ 7,500,000 | ||||||||
Indemnification Agreement | |||||||||
Loss Contingencies [Line Items] | |||||||||
Estimated litigation liability | 5,700,000 | 4,800,000 | |||||||
Indemnification Agreement | Pearlmark Mezz | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency accrual | 703,000 | ||||||||
Indemnification Agreement | Pearlmark Mezz | Maximum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Estimate of possible loss (up to) | $ 4,300,000 | ||||||||
Indemnification Agreement | PCM | |||||||||
Loss Contingencies [Line Items] | |||||||||
Estimated litigation liability | $ 6,500,000 | $ 15,900,000 |
DISCONTINUED OPERATIONS AND 128
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE (Details) | 1 Months Ended | 6 Months Ended | ||||||
Nov. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Nov. 30, 2016USD ($) | Oct. 31, 2016USD ($) | Aug. 31, 2016USD ($)Amendment | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Collective book value of the assets sold | [1] | $ 107,718,000 | $ 383,455,000 | |||||
Wells Fargo Bank, National Association | 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 | |||||||
New Century Bank | Primary Capital Advisors LLC | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Number of loan amendments | Amendment | 10 | |||||||
Maximum amount of facility | $ 0 | |||||||
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 | |||||||
Debt instrument, interest rate, stated percentage | 2.75% | |||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Mortgage Lending Pipeline And Other Certain Assets And Liabilities | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from divestiture of businesses | $ 2,600,000 | |||||||
Nonrefundable earn out advance | 650,000 | $ 350,000 | ||||||
Collective book value of the assets sold | $ 1,600,000 | |||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Mortgage Servicing Rights Portfolio | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from divestiture of businesses | $ 19,100,000 | |||||||
Loss on disposition of business | $ 1,200,000 | |||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Minimum | Mortgage Lending Pipeline And Other Certain Assets And Liabilities | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Term of contingent earn out provision | 18 months | |||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Maximum | Mortgage Lending Pipeline And Other Certain Assets And Liabilities | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Term of contingent earn out provision | 22 months | |||||||
[1] | December 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $— Restricted cash$20,846 $3,308 Investments securities available-for-sale, pledged as collateral, at fair value— 369 Loans held for sale13 1,007Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million603,110 747,726 Interest receivable3,347 3,153 Principal paydown receivable72,207 5,820 Other assets73 58 Total assets of consolidated VIEs$699,596 $761,441 |
DISCONTINUED OPERATIONS AND 129
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE Operating results of the residential mortgage and middle market lending segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
REVENUES | |||||||||||
Loans | $ 88,268 | $ 85,229 | $ 99,334 | ||||||||
Other | 2,549 | 5,005 | 4,252 | ||||||||
Interest income | $ 26,229 | $ 23,983 | $ 23,635 | $ 25,471 | $ 30,087 | $ 27,107 | $ 28,408 | $ 27,016 | 99,318 | 112,618 | 121,918 |
Interest expense | 15,203 | 13,853 | 14,347 | 14,254 | 13,346 | 13,653 | 13,446 | 13,302 | 57,657 | 53,747 | 56,530 |
Net interest income | 11,026 | 10,130 | 9,288 | 11,217 | 16,741 | 13,454 | 14,962 | 13,714 | 41,661 | 58,871 | 65,388 |
Total revenues | 43,709 | 62,680 | 70,319 | ||||||||
OPERATING EXPENSES | |||||||||||
Equity compensation expense - related party | 2,738 | 3,025 | 2,420 | ||||||||
General and administrative | 15,846 | 15,197 | 16,346 | ||||||||
Depreciation and amortization | 139 | 1,566 | 4,245 | ||||||||
Provision for loan and lease losses, net | 1,772 | 17,765 | 41,088 | ||||||||
Segment operating expenses | 33,789 | 77,014 | 77,777 | ||||||||
Net interest and other revenues less operating expenses | 9,920 | (14,334) | (7,458) | ||||||||
OTHER INCOME (EXPENSE) | |||||||||||
Net realized and unrealized gain (loss) on investment securities available-for-sale and loans | 18,334 | 4,066 | 18,459 | ||||||||
Fair value adjustments on financial assets held for sale | (1,831) | 0 | 0 | ||||||||
Total other income | 44,150 | 13,992 | 19,891 | ||||||||
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX | $ (3,284) | $ (6,087) | $ (4,184) | $ (561) | $ (6,728) | $ (11,321) | $ (6,379) | $ 5,168 | (14,116) | (19,260) | 6,104 |
Discontinued Operations, Held-for-sale | |||||||||||
REVENUES | |||||||||||
Loans | 3,319 | 25,325 | 31,248 | ||||||||
Other | 107 | 50 | 7 | ||||||||
Interest income | 3,426 | 25,375 | 31,255 | ||||||||
Interest expense | 0 | 6,181 | 5,785 | ||||||||
Net interest income | 3,426 | 19,194 | 25,470 | ||||||||
Gain (loss) on sale of residential mortgage loans | 2,833 | 19,061 | 13,675 | ||||||||
Fee income | 3,507 | 1,221 | 2,617 | ||||||||
Total revenues | 9,766 | 39,476 | 41,762 | ||||||||
OPERATING EXPENSES | |||||||||||
Equity compensation expense - related party | 433 | 939 | 725 | ||||||||
General and administrative | 23,717 | 30,570 | 25,349 | ||||||||
Depreciation and amortization | 0 | 563 | 613 | ||||||||
Provision for loan and lease losses, net | 0 | 12,989 | 8,801 | ||||||||
Segment operating expenses | 24,150 | 45,061 | 35,488 | ||||||||
Net interest and other revenues less operating expenses | (14,384) | (5,585) | 6,274 | ||||||||
OTHER INCOME (EXPENSE) | |||||||||||
Net realized and unrealized gain (loss) on investment securities available-for-sale and loans | 145 | (11,850) | 221 | ||||||||
Fair value adjustments on financial assets held for sale | 123 | 0 | 0 | ||||||||
Total other income | 268 | (11,850) | 221 | ||||||||
(LOSS) INCOME FROM DISCONTINUED OPERATIONS BEFORE TAXES | (14,116) | (17,435) | 6,495 | ||||||||
Income tax expense | 0 | 0 | (391) | ||||||||
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX | (14,116) | (17,435) | 6,104 | ||||||||
Loss from disposal of discontinued operations | 0 | (1,825) | 0 | ||||||||
TOTAL (LOSS) INCOME FROM DISCONTINUED OPERATIONS | $ (14,116) | $ (19,260) | $ 6,104 |
DISCONTINUED OPERATIONS AND 130
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE Assets and liabilities of business segments classified as discontinued operations (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | |
Disposal Group, Including Discontinued Operation, Assets [Abstract] | |||
Restricted cash | [1] | $ 22,874,000 | $ 3,399,000 |
Interest receivable | [1] | 6,859,000 | 6,404,000 |
Principal paydowns receivable | [1] | 76,129,000 | 19,280,000 |
Derivatives, at fair value | [1] | 602,000 | 647,000 |
Intangible assets | [1] | 0 | 213,000 |
Other assets | [1] | 7,451,000 | 14,673,000 |
Total assets held for sale | [1] | 107,718,000 | 383,455,000 |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | |||
Accounts payable and other liabilities | [2] | 5,153,000 | 4,480,000 |
Management fee payable - related party | [2] | 1,035,000 | 1,318,000 |
Accrued interest expense | [2] | 4,387,000 | 4,979,000 |
Borrowings | [2] | 1,163,485,000 | 1,191,456,000 |
Derivatives, at fair value | [2] | 76,000 | 97,000 |
Total liabilities held for sale | [2] | 10,342,000 | 142,563,000 |
Life settlement contracts | 5,100,000 | 5,800,000 | |
Servicing Contracts | |||
Disposal Group, Including Discontinued Operation, Assets [Abstract] | |||
Intangible assets | 0 | 14,400,000 | |
Discontinued Operations, Held-for-sale | |||
Disposal Group, Including Discontinued Operation, Assets [Abstract] | |||
Restricted cash | 138,000 | 145,000 | |
Interest receivable | 67,000 | 305,000 | |
Principal paydowns receivable | 93,063,000 | 346,761,000 | |
Property available for sale | 0 | 125,000 | |
Derivatives, at fair value | 0 | 3,773,000 | |
Intangible assets | 0 | 14,466,000 | |
Other assets | 14,450,000 | 17,880,000 | |
Total assets held for sale | 107,718,000 | 383,455,000 | |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | |||
Accounts payable and other liabilities | 10,283,000 | 8,404,000 | |
Management fee payable - related party | 56,000 | 132,000 | |
Accrued interest expense | 3,000 | 203,000 | |
Borrowings | 0 | 133,139,000 | |
Derivatives, at fair value | 0 | 685,000 | |
Total liabilities held for sale | $ 10,342,000 | $ 142,563,000 | |
[1] | December 31, 2017December 31, 2016Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $— $— Restricted cash$20,846 $3,308 Investments securities available-for-sale, pledged as collateral, at fair value— 369 Loans held for sale13 1,007Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million603,110 747,726 Interest receivable3,347 3,153 Principal paydown receivable72,207 5,820 Other assets73 58 Total assets of consolidated VIEs$699,596 $761,441 | ||
[2] | December 31, 2017 December 31, 2016Liabilities of consolidated VIEs included in the total liabilities above: Borrowings$416,655 $480,103 Accrued interest expense592 519 Derivatives, at fair value— — Unsettled loan purchases— — Accounts payable and other liabilities96 133 Total liabilities of consolidated VIEs$417,343 $480,755 |
DISCONTINUED OPERATIONS AND 131
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE Loans held for sale in the residential mortgage and middle market lending segments (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($)Loan | Dec. 31, 2015USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Carrying Value | $ 211,737,000 | $ 124,968,000 | |
Impairment losses | $ 177,000 | $ 26,470,000 | $ 372,000 |
Discontinued Operations, Held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of Loans | Loan | 25 | 545 | |
Amortized cost | $ 106,896,000 | $ 358,714,000 | |
Carrying Value | 93,063,000 | $ 346,761,000 | |
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 | 39.20% | ||
California | Residential mortgage loans | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Concentration of loan portfolio risk | 16.20% | ||
Utah | Residential mortgage loans | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Concentration of loan portfolio risk | 14.60% | ||
Virginia | Residential mortgage loans | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Concentration of loan portfolio risk | 5.90% | ||
Florida | Residential mortgage loans | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Concentration of loan portfolio risk | 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 | ||
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 | ||
Legacy CRE whole loans | Discontinued Operations, Held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of Loans | Loan | 5 | 8 | |
Amortized cost | $ 63,783,000 | $ 158,192,000 | |
Carrying Value | $ 61,841,000 | 158,178,000 | |
Impairment losses | $ 7,700,000 | ||
Middle Market Loans | Discontinued Operations, Held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of Loans | Loan | 1 | 7 | |
Amortized cost | $ 0 | $ 52,382,000 | |
Carrying Value | $ 0 | $ 40,443,000 | |
Mezzanine loans | Discontinued Operations, Held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of Loans | Loan | 5 | 1 | |
Amortized cost | $ 41,199,000 | $ 0 | |
Carrying Value | $ 29,308,000 | $ 0 | |
Residential mortgage loans | Discontinued Operations, Held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of Loans | Loan | 14 | 529 | |
Amortized cost | $ 1,914,000 | $ 148,140,000 | |
Carrying Value | 1,914,000 | 148,140,000 | |
Direct Origination Middle-Market Loans | Discontinued Operations, Held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Carrying Value | $ 2,000,000 | $ 1,900,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - 8.25% Series B Preferred Stock - USD ($) $ / shares in Units, $ in Millions | Feb. 21, 2018 | Dec. 31, 2017 |
Subsequent Event [Line Items] | ||
Redemption price per share (in dollars per share) | $ 25 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Carrying value | $ 107.9 | |
Redemption price per share (in dollars per share) | $ 25 | |
Preferred dividends in arrears (in dollars per share) | $ 0.32083 |
Schedule II Valuation and Qu133
Schedule II Valuation and Qualifying Accounts (Details) - Allowance for Loan and Lease Losses, Real Estate - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 4,294 | $ 43,586 | $ 4,613 |
Charge to expense | 1,772 | 17,765 | 41,087 |
Loans Charged off/Recovered | (3) | 402 | (2,175) |
Deconsolidation of VIEs | 0 | (41,696) | 61 |
Transfer to Loans Held For Sale | 0 | (15,763) | 0 |
Balance at end of period | $ 6,063 | $ 4,294 | $ 43,586 |
Schedule IV Mortgage Loans o134
Schedule IV Mortgage Loans on Real Estate (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)Loan | |
Mortgage Loans on Real Estate [Line Items] | |
Face Amount of Loans | $ 1,411,218 |
Net Carrying Amount of Loans | 1,346,663 |
Principal Amount of Loans Subject to Delinquent Principal or Interest | 38,072 |
General allowance for loan and lease loss | (2,828) |
Whole loans | |
Mortgage Loans on Real Estate [Line Items] | |
Face Amount of Loans | 1,297,164 |
Net Carrying Amount of Loans | 1,287,650 |
Principal Amount of Loans Subject to Delinquent Principal or Interest | 0 |
Allowance for loan loss | 5,300 |
Legacy CRE loans less than 3% of the carrying amount of total loans | |
Mortgage Loans on Real Estate [Line Items] | |
Face Amount of Loans | 75,982 |
Net Carrying Amount of Loans | 61,841 |
Principal Amount of Loans Subject to Delinquent Principal or Interest | 0 |
Legacy CRE whole loans | |
Mortgage Loans on Real Estate [Line Items] | |
Face Amount of Loans | 75,982 |
Net Carrying Amount of Loans | 61,841 |
Principal Amount of Loans Subject to Delinquent Principal or Interest | 0 |
Mezzanine loans less than 3% of the carrying amount of total loans | |
Mortgage Loans on Real Estate [Line Items] | |
Face Amount of Loans | 38,072 |
Net Carrying Amount of Loans | 0 |
Principal Amount of Loans Subject to Delinquent Principal or Interest | 38,072 |
Mezzanine loans | |
Mortgage Loans on Real Estate [Line Items] | |
Face Amount of Loans | 38,072 |
Net Carrying Amount of Loans | 0 |
Principal Amount of Loans Subject to Delinquent Principal or Interest | 38,072 |
Various | Whole loans | |
Mortgage Loans on Real Estate [Line Items] | |
Face Amount of Loans | 1,226,449 |
Net Carrying Amount of Loans | 1,217,156 |
Principal Amount of Loans Subject to Delinquent Principal or Interest | 0 |
Retail Site | Various | Whole loans | |
Mortgage Loans on Real Estate [Line Items] | |
Prior Liens | 0 |
Face Amount of Loans | 182,004 |
Net Carrying Amount of Loans | 178,820 |
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 |
Number of defaulted loans | Loan | 1 |
Retail Site | Various | Whole loans | Minimum | |
Mortgage Loans on Real Estate [Line Items] | |
Variable rate basis, floor | 0.15% |
Retail Site | Various | Whole loans | Minimum | London Interbank Offered Rate (LIBOR) | |
Mortgage Loans on Real Estate [Line Items] | |
Basis spread on variable rate | 3.75% |
Retail Site | Various | Whole loans | Maximum | |
Mortgage Loans on Real Estate [Line Items] | |
Variable rate basis, floor | 1.50% |
Retail Site | Various | Whole loans | Maximum | London Interbank Offered Rate (LIBOR) | |
Mortgage Loans on Real Estate [Line Items] | |
Basis spread on variable rate | 5.65% |
Retail Site | Borrower A | Various | Whole loans | |
Mortgage Loans on Real Estate [Line Items] | |
Variable rate basis, floor | 0.25% |
Prior Liens | $ 0 |
Face Amount of Loans | 70,715 |
Net Carrying Amount of Loans | 70,494 |
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 |
Retail Site | Borrower A | Various | Whole loans | London Interbank Offered Rate (LIBOR) | |
Mortgage Loans on Real Estate [Line Items] | |
Basis spread on variable rate | 5.24% |
Multifamily | Various | Whole loans | |
Mortgage Loans on Real Estate [Line Items] | |
Prior Liens | $ 0 |
Face Amount of Loans | 606,647 |
Net Carrying Amount of Loans | 602,968 |
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 |
Multifamily | Various | Whole loans | Minimum | |
Mortgage Loans on Real Estate [Line Items] | |
Variable rate basis, floor | 0.20% |
Multifamily | Various | Whole loans | Minimum | London Interbank Offered Rate (LIBOR) | |
Mortgage Loans on Real Estate [Line Items] | |
Basis spread on variable rate | 3.60% |
Multifamily | Various | Whole loans | Maximum | |
Mortgage Loans on Real Estate [Line Items] | |
Variable rate basis, floor | 1.25% |
Multifamily | Various | Whole loans | Maximum | London Interbank Offered Rate (LIBOR) | |
Mortgage Loans on Real Estate [Line Items] | |
Basis spread on variable rate | 5.50% |
Office Building | Various | Whole loans | |
Mortgage Loans on Real Estate [Line Items] | |
Prior Liens | $ 0 |
Face Amount of Loans | 279,333 |
Net Carrying Amount of Loans | 278,321 |
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 |
Office Building | Various | Whole loans | Minimum | |
Mortgage Loans on Real Estate [Line Items] | |
Variable rate basis, floor | 0.17% |
Office Building | Various | Whole loans | Minimum | London Interbank Offered Rate (LIBOR) | |
Mortgage Loans on Real Estate [Line Items] | |
Basis spread on variable rate | 4.20% |
Office Building | Various | Whole loans | Maximum | |
Mortgage Loans on Real Estate [Line Items] | |
Variable rate basis, floor | 1.00% |
Office Building | Various | Whole loans | Maximum | London Interbank Offered Rate (LIBOR) | |
Mortgage Loans on Real Estate [Line Items] | |
Basis spread on variable rate | 5.75% |
Hotel | Various | Whole loans | |
Mortgage Loans on Real Estate [Line Items] | |
Prior Liens | $ 0 |
Face Amount of Loans | 107,595 |
Net Carrying Amount of Loans | 106,722 |
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 |
Hotel | Various | Whole loans | Minimum | |
Mortgage Loans on Real Estate [Line Items] | |
Variable rate basis, floor | 0.20% |
Hotel | Various | Whole loans | Minimum | London Interbank Offered Rate (LIBOR) | |
Mortgage Loans on Real Estate [Line Items] | |
Basis spread on variable rate | 4.25% |
Hotel | Various | Whole loans | Maximum | |
Mortgage Loans on Real Estate [Line Items] | |
Variable rate basis, floor | 1.25% |
Hotel | Various | Whole loans | Maximum | London Interbank Offered Rate (LIBOR) | |
Mortgage Loans on Real Estate [Line Items] | |
Basis spread on variable rate | 6.25% |
Other | Various | Whole loans | |
Mortgage Loans on Real Estate [Line Items] | |
Prior Liens | $ 0 |
Face Amount of Loans | 50,870 |
Net Carrying Amount of Loans | 50,325 |
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 |
Other | Various | Whole loans | Minimum | |
Mortgage Loans on Real Estate [Line Items] | |
Variable rate basis, floor | 0.45% |
Other | Various | Whole loans | Minimum | London Interbank Offered Rate (LIBOR) | |
Mortgage Loans on Real Estate [Line Items] | |
Basis spread on variable rate | 4.25% |
Other | Various | Whole loans | Maximum | |
Mortgage Loans on Real Estate [Line Items] | |
Variable rate basis, floor | 1.25% |
Other | Various | Whole loans | Maximum | London Interbank Offered Rate (LIBOR) | |
Mortgage Loans on Real Estate [Line Items] | |
Basis spread on variable rate | 5.75% |
Schedule IV Mortgage Loans o135
Schedule IV Mortgage Loans on Real Estate - Recolciliation of Loans and Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Balance at beginning of year | $ 1,444,456 | $ 1,650,268 | $ 1,342,986 |
New loan originations funded | 528,865 | 173,008 | 683,419 |
Funding of existing commitments | 32,005 | 67,219 | 47,512 |
Capitalized origination fees | (5,760) | (1,967) | (7,241) |
Origination fee amortization | 4,813 | 5,979 | 4,902 |
Payoff of loans | (525,161) | (355,556) | (383,574) |
Paydown of loans | (34,277) | (970) | 0 |
HFS payoffs | (107,492) | 0 | 0 |
Settled HFS Loan FV adjustments | 12,655 | 0 | 0 |
HFS fair value adjustments | (1,942) | 0 | 0 |
Provision | (1,499) | (18,168) | (37,736) |
Deconsolidation | 0 | (231,354) | 0 |
Acquisition of loans from the liquidations of collateralized debt obligations | 0 | 155,997 | 0 |
Balance at end of year | $ 1,346,663 | $ 1,444,456 | $ 1,650,268 |
Uncategorized Items - rso-20171
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (23,851,000) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 802,909,000 |
Variable Interest Entity, Deconsolidated [Member] | ||
Cash Divested from Deconsolidation | us-gaap_CashDivestedFromDeconsolidation | (472,000) |
Retained Earnings [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 0 |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (14,975,000) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 803,889,000 |
Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 32,000 |
Common Stock, Shares, Outstanding | us-gaap_CommonStockSharesOutstanding | 31,562,724 |
Accumulated Distributions in Excess of Net Income [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (16,932,000) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (423,535,000) |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 1,228,346,000 |
Noncontrolling Interest [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (8,876,000) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (980,000) |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 1,957,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (966,000) |
Series A Preferred Stock [Member] | Preferred Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 1,000 |
Series B Preferred Stock [Member] | Preferred Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 6,000 |
Redeemable Preferred Stock Series C [Member] | Preferred Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 5,000 |