Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 03, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | EXANTAS CAPITAL CORP. | |
Entity Central Index Key | 1,332,551 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (in shares) | 31,657,420 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
ASSETS: | |||
Cash and cash equivalents | [1] | $ 80,191 | $ 181,490 |
Restricted cash | [1] | 10,070 | 22,874 |
Accrued interest receivable | [1] | 7,157 | 6,859 |
CRE loans, net of allowances of $4,529 and $5,328 | [1] | 1,446,018 | 1,284,822 |
Investment securities available-for-sale | [1] | 318,424 | 211,737 |
Investment securities, trading | [1] | 0 | 178 |
Loans held for sale | [1] | 0 | 13 |
Principal paydowns receivable | [1] | 0 | 76,129 |
Investments in unconsolidated entities | [1] | 1,782 | 12,051 |
Derivatives, at fair value | [1] | 2,273 | 602 |
Direct financing leases, net of allowances of $735 | [1] | 66 | 151 |
Other assets | [1] | 5,225 | 7,451 |
Assets held for sale (amounts include $18,000 and $61,841 of legacy CRE loans held for sale in continuing operations, see Note 21) | [1] | 20,956 | 107,718 |
Total assets | [1] | 1,892,162 | 1,912,075 |
LIABILITIES: | |||
Accounts payable and other liabilities | [2] | 3,335 | 5,153 |
Management fee payable | [2] | 938 | 1,035 |
Accrued interest payable | [2] | 4,736 | 4,387 |
Borrowings | [2] | 1,319,646 | 1,163,485 |
Distributions payable | [2] | 4,891 | 5,581 |
Preferred stock redemption liability | [2] | 0 | 50,000 |
Derivatives, at fair value | [2] | 67 | 76 |
Accrued tax liability | [2] | 241 | 540 |
Liabilities held for sale (see Note 21) | [2] | 2,421 | 10,342 |
Total liabilities | [2] | 1,336,275 | 1,240,599 |
STOCKHOLDERS' EQUITY | |||
Common stock, par value $0.001: 125,000,000 shares authorized; 31,657,420 and 31,429,892 shares issued and outstanding (including 427,591 and 483,073 unvested restricted shares) | 32 | 31 | |
Additional paid-in capital | 1,081,586 | 1,187,911 | |
Accumulated other comprehensive income | 3,216 | 1,297 | |
Distributions in excess of earnings | (528,952) | (517,773) | |
Total stockholders' equity | 555,887 | 671,476 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,892,162 | 1,912,075 | |
8.25% Series B Preferred Stock | |||
STOCKHOLDERS' EQUITY | |||
Preferred stock, par value $0.001 | 0 | 5 | |
8.625% Series C Preferred Stock | |||
STOCKHOLDERS' EQUITY | |||
Preferred stock, par value $0.001 | $ 5 | $ 5 | |
[1] | June 30, 2018December 31, 2017(1) Assets of consolidated variable interest entities ("VIEs") included in total assets above: Cash and cash equivalents$— $—Restricted cash9,245 20,846Accrued interest receivable2,738 3,347CRE loans, pledged as collateral and net of allowances of $1,480 and $1,3301,012,900 603,110Loans held for sale— 13Principal paydowns receivable— 72,207Other assets276 73Total assets of consolidated VIEs$1,025,159 $699,596 | ||
[2] | June 30, 2018 December 31, 2017(2) Liabilities of consolidated VIEs included in total liabilities above: Accounts payable and other liabilities$119 $96Accrued interest payable485 592Borrowings632,004 416,655Total liabilities of consolidated VIEs$632,608 $417,343 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Financing receivable, allowance for credit losses | $ 4,529 | $ 5,328 |
Direct financing leases, allowances | $ 5,264 | $ 6,063 |
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) | 31,657,420 | 31,429,892 |
Common stock, shares outstanding (in shares) | 31,657,420 | 31,429,892 |
Common stock, shares issued, non-vested restricted shares (in shares) | 427,591 | 483,073 |
Assets of consolidated variable interest entities (VIEs) included in total assets above: | ||
Restricted cash | $ 9,245 | $ 20,846 |
Accrued interest receivable | 2,738 | 3,347 |
CRE loans, pledged as collateral and net of allowances of $1,480 and $1,330 | 1,012,900 | 603,110 |
Loans held for sale | 0 | 13 |
Principal paydowns receivable | 0 | 72,207 |
Other assets | 276 | 73 |
Total assets of consolidated VIEs | 1,025,159 | 699,596 |
Liabilities of consolidated VIEs included in total liabilities above: | ||
Accounts payable and other liabilities | 119 | 96 |
Accrued interest payable | 485 | 592 |
Borrowings | 632,004 | 416,655 |
Total liabilities of consolidated VIEs | 632,608 | 417,343 |
Loan allowances, VIEs | $ 1,480 | $ 1,330 |
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) | 0 | 4,613,596 |
Preferred stock, shares outstanding (in shares) | 0 | 4,613,596 |
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 |
Discontinued Operations, Held-for-sale | Legacy CRE whole loans | ||
Legacy CRE whole loans held for sale | $ 18,000 | $ 61,841 |
Direct Financing Leases | ||
Direct financing leases, allowances | $ 735 | $ 735 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest income: | ||||
CRE loans | $ 25,435 | $ 21,841 | $ 47,818 | $ 43,374 |
Securities | 4,205 | 1,329 | 7,661 | 3,637 |
Other | 20 | 465 | 138 | 2,095 |
Total interest income | 29,660 | 23,635 | 55,617 | 49,106 |
Interest expense | 16,159 | 14,347 | 30,543 | 28,601 |
Net interest income | 13,501 | 9,288 | 25,074 | 20,505 |
Total revenues | 13,653 | 10,252 | 25,131 | 22,397 |
OPERATING EXPENSES | ||||
Management fees | 2,812 | 2,638 | 5,625 | 5,318 |
Equity compensation | 659 | 734 | 1,626 | 1,522 |
General and administrative | 2,547 | 3,580 | 5,607 | 7,443 |
Depreciation and amortization | 19 | 32 | 32 | 100 |
Impairment losses | 0 | 0 | 0 | 177 |
Provision for (recovery of) loan and lease losses, net | 0 | 131 | (799) | 1,130 |
Total operating expenses | 6,037 | 7,115 | 12,091 | 15,690 |
Net interest and other revenues less operating expenses | 7,616 | 3,137 | 13,040 | 6,707 |
OTHER INCOME (EXPENSE) | ||||
Equity in earnings (losses) of unconsolidated entities | 69 | (118) | (223) | 243 |
Net realized and unrealized gain on investment securities available-for-sale and loans and derivatives | 932 | 9,478 | 290 | 17,084 |
Net realized and unrealized gain (loss) on investment securities, trading | 58 | (50) | 53 | (961) |
Fair value adjustments on financial assets held for sale | 9 | 79 | (4,656) | 58 |
Other income | 506 | 17 | 517 | 85 |
Total other income (expense) | 1,574 | 9,406 | (4,019) | 16,509 |
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES | 9,190 | 12,543 | 9,021 | 23,216 |
Income tax (expense) benefit | (1) | 25 | 31 | (1,474) |
NET INCOME FROM CONTINUING OPERATIONS | 9,189 | 12,568 | 9,052 | 21,742 |
NET LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX | (450) | (4,184) | (203) | (4,745) |
NET INCOME | 8,739 | 8,384 | 8,849 | 16,997 |
Net income allocated to preferred shares | (2,587) | (6,015) | (7,797) | (12,029) |
Consideration paid in excess of carrying value of preferred shares | 0 | 0 | (7,482) | 0 |
Net loss allocable to non-controlling interest, net of taxes | 0 | 95 | 0 | 196 |
NET INCOME (LOSS) ALLOCABLE TO COMMON SHARES | $ 6,152 | $ 2,464 | $ (6,430) | $ 5,164 |
NET INCOME (LOSS) PER COMMON SHARE - BASIC: | ||||
CONTINUING OPERATIONS (in dollars per share) | $ 0.21 | $ 0.22 | $ (0.20) | $ 0.32 |
DISCONTINUED OPERATIONS (in dollars per share) | (0.01) | (0.14) | (0.01) | (0.15) |
TOTAL NET INCOME (LOSS) PER COMMON SHARE – BASIC (in dollars per share) | 0.20 | 0.08 | (0.21) | 0.17 |
NET INCOME (LOSS) PER COMMON SHARE - DILUTED: | ||||
CONTINUING OPERATIONS (in dollars per share) | 0.21 | 0.22 | (0.20) | 0.32 |
DISCONTINUED OPERATIONS (in dollars per share) | (0.01) | (0.14) | (0.01) | (0.15) |
TOTAL NET INCOME (LOSS) PER COMMON SHARE – DILUTED (in dollars per share) | $ 0.20 | $ 0.08 | $ (0.21) | $ 0.17 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC (in shares) | 31,215,598 | 30,820,442 | 31,163,859 | 30,786,527 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - DILUTED (in shares) | 31,402,010 | 31,020,926 | 31,163,859 | 30,967,840 |
Product and Service, Other | ||||
Interest income: | ||||
Other revenue | $ 152 | $ 964 | $ 57 | $ 1,892 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 8,739 | $ 8,384 | $ 8,849 | $ 16,997 |
Other comprehensive income (loss): | ||||
Reclassification adjustments for realized (income) losses on investment securities available-for-sale included in net income | 0 | (1,179) | 217 | (1,179) |
Unrealized gains (losses) on investment securities available-for-sale, net | 1,607 | (1,628) | 98 | (1,494) |
Reclassification adjustments associated with unrealized losses from interest rate hedges included in net income | 0 | 75 | 0 | 93 |
Unrealized gains on derivatives, net | 455 | 0 | 1,604 | 0 |
Total other comprehensive (loss) income | 2,062 | (2,732) | 1,919 | (2,580) |
Comprehensive income (loss) before allocation to non-controlling interests and preferred shares | 10,801 | 5,652 | 10,768 | 14,417 |
Net income allocated to preferred shares | (2,587) | (6,015) | (7,797) | (12,029) |
Consideration paid in excess of carrying value of preferred shares | 0 | 0 | (7,482) | 0 |
Net loss allocable to non-controlling interest | 0 | 95 | 0 | 196 |
Comprehensive income (loss) allocable to common shares | $ 8,214 | $ (268) | $ (4,511) | $ 2,584 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - 6 months ended Jun. 30, 2018 - USD ($) $ in Thousands | Total | Common Stock | Preferred StockSeries B Preferred Stock | Preferred StockSeries C Preferred Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Retained Earnings | Distributions in Excess of Earnings |
Balance, January 1, 2018 (in shares) at Dec. 31, 2017 | 31,429,892 | 31,429,892 | ||||||
Balance, January 1, 2018 at Dec. 31, 2017 | $ 671,476 | $ 31 | $ 5 | $ 5 | $ 1,187,911 | $ 1,297 | $ 0 | $ (517,773) |
Increase (Decrease) in Stockholders' Equity | ||||||||
Stock-based compensation (in shares) | 236,387 | |||||||
Stock-based compensation | 1 | $ 1 | 0 | |||||
Amortization of stock-based compensation | 1,626 | 1,626 | ||||||
Retirement of common shares (in shares) | (7,134) | |||||||
Retirement of common stock | (70) | $ 0 | (70) | |||||
Forfeiture of unvested stock (in shares) | (1,725) | |||||||
Net income | 8,849 | 8,849 | ||||||
Distributions on preferred stock | (7,797) | (7,797) | ||||||
Preferred stock redemption | (115,368) | (5) | (107,881) | (7,482) | ||||
Securities available-for-sale, fair value adjustment, net | 315 | 315 | ||||||
Designated derivatives, fair value adjustment | 1,604 | 1,604 | ||||||
Distributions on common stock | $ (4,749) | 6,430 | (11,179) | |||||
Balance, June 30, 2018 (in shares) at Jun. 30, 2018 | 31,657,420 | 31,657,420 | ||||||
Balance, June 30, 2018 at Jun. 30, 2018 | $ 555,887 | $ 32 | $ 0 | $ 5 | $ 1,081,586 | $ 3,216 | $ 0 | $ (528,952) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 8,849 | $ 16,997 |
Net loss from discontinued operations, net of tax | 203 | 4,745 |
NET INCOME FROM CONTINUING OPERATIONS | 9,052 | 21,742 |
Adjustments to reconcile net income from continuing operations to net cash provided by continuing operating activities: | ||
(Recovery of) provision for loan and lease losses, net | (799) | 1,130 |
Depreciation, amortization and accretion | 980 | 671 |
Amortization of stock-based compensation | 1,626 | 1,522 |
Sale of and principal payments on syndicated corporate loans held for sale | 60 | 1,076 |
Sale of and principal payments on investment securities, trading, net | 241 | 4,493 |
Net realized and unrealized (gain) loss on investment securities, trading | (53) | 961 |
Net realized and unrealized gain on investment securities available-for-sale and loans and derivatives | (290) | (17,084) |
Fair value adjustments on financial assets held for sale | 4,656 | (58) |
Impairment losses | 0 | 177 |
Equity in losses (earnings) of unconsolidated entities | 223 | (243) |
Return on investment from investments in unconsolidated entities | 0 | 6,292 |
Changes in operating assets and liabilities | 6,035 | (590) |
Net cash provided by continuing operating activities | 21,731 | 20,089 |
Net cash provided by discontinued operating activities | 621 | 20,531 |
Net cash provided by operating activities | 22,352 | 40,620 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Origination and purchase of loans | (331,473) | (207,672) |
Principal payments received on loans and leases | 277,275 | 267,714 |
Proceeds from sale of loans | 12,000 | 0 |
Purchase of investment securities available-for-sale | (113,855) | (14,598) |
Principal payments on investment securities available-for-sale | 8,715 | 17,659 |
Proceeds from sale of investment securities available-for-sale | 48 | 13,588 |
Return of capital from investments in unconsolidated entities | 10,172 | 7,911 |
Proceeds from the sale of an investment in an unconsolidated entity | 0 | 16,159 |
Settlement of derivative instruments | (46) | (696) |
Net cash (used in) provided by continuing investing activities | (137,164) | 100,065 |
Net cash provided by discontinued investing activities | 27,557 | 2,621 |
Net cash (used in) provided by investing activities | (109,607) | 102,686 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net proceeds from issuances of common stock and dividend reinvestment and stock purchase plan (net of offering costs of $0 and $31) | 0 | (31) |
Repurchase of common stock | 0 | (82) |
Retirement of common stock | (69) | 0 |
Repurchase of preferred stock | (165,340) | 0 |
Net (repayments of) proceeds from repurchase agreements | (60,522) | 50,449 |
Proceeds from borrowings: | ||
Securitizations | 397,452 | 0 |
Payments on borrowings: | ||
Securitizations | (177,762) | (177,817) |
Payment of debt issuance costs | (7,371) | (3) |
Distributions paid on preferred stock | (10,082) | (12,029) |
Distributions paid on common stock | (3,154) | (3,118) |
Net cash used in continuing financing activities | (26,848) | (142,631) |
Net cash used in discontinued financing activities | 0 | (16,081) |
Net cash used in financing activities | (26,848) | (158,712) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (114,103) | (15,406) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | 204,364 | 119,425 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 90,261 | 104,019 |
SUPPLEMENTAL DISCLOSURE: | ||
Interest expense paid in cash | 25,867 | 25,139 |
Income taxes paid in cash | $ 0 | $ 515 |
CONSOLIDATED STATEMENTS OF CAS8
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Cash Flows [Abstract] | ||
Offering costs on stock issuance | $ 0 | $ 31 |
ORGANIZATION
ORGANIZATION | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | NOTE 1 - ORGANIZATION Exantas Capital Corp., a Maryland corporation, and its subsidiaries (collectively, the "Company") (formerly known as Resource Capital Corp.) 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 Exantas Capital Manager Inc. (the "Manager") (formerly known as Resource Capital Manager, Inc.), 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 June 30, 2018 . 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 (the "Board") 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 21 for further discussion. 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 100.0% of the equity of the following VIEs: ◦ Resource Capital Corp. 2014-CRE2, Ltd. ("RCC 2014-CRE2") and Resource Capital Corp. 2015-CRE4, Ltd. ("RCC 2015-CRE4") were established to complete CRE securitization issuances secured by a portfolio of CRE loans. In August 2017 and July 2018, RCC 2014-CRE2 and RCC 2015-CRE4, 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. 2017-CRE5, Ltd. ("RCC 2017-CRE5") and Exantas Capital Corp. 2018-RSO6, Ltd. ("XAN 2018-RSO6") 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 ("New NP, LLC"), which held one directly originated middle market loan at June 30, 2018 and historically held syndicated corporate loan investments. In July 2018 substantially all of the assets of the borrower for New NP, LLC's remaining loan were sold, resulting in repayment of the loan. New NP, LLC is reported in discontinued operations, see Note 21 for further discussion. RCC Commercial also owns 100.0% of Apidos CDO III, Ltd. ("Apidos CDO III"). Apidos CDO III, a taxable REIT subsidiary ("TRS"), was established to complete a collateralized debt obligation ("CDO") issuance secured by a portfolio of syndicated corporate loans and asset-backed securities ("ABS"). In June 2015, the Company liquidated Apidos CDO III and, as a result, substantially all of the assets were sold. • RCC Commercial II, Inc. ("Commercial II"), a wholly-owned subsidiary, historically invested 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 100.0% 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. 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., a TRS that holds residual assets following a September 2013 liquidation. • RCC Commercial III, Inc. ("Commercial III"), a wholly-owned subsidiary, historically held investments in syndicated corporate loan investments. Commercial III owns 90.0% 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 10.0% 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"). • RCC Residential Portfolio TRS, Inc. ("RCC Resi TRS"), a wholly-owned TRS, was formed to hold strategic residential mortgage positions that could not be held by RCC Resi Portfolio. RCC Resi TRS also owns 100.0% of the equity, unless otherwise stated, in the following: ◦ Primary Capital Mortgage, LLC ("PCM") (formerly known as Primary Capital Advisors, LLC), originated and serviced residential mortgage loans. In November 2016, PCM's operations were reclassified to discontinued operations. PCM sold its residential mortgage loan pipeline, its mortgage servicing rights and its remaining loans held for sale. See Note 21 for further discussion. ◦ RCM Global Manager, LLC ("RCM Global Manager") owns 63.8% of RCM Global LLC ("RCM Global"). RCM Global, accounted for as an equity method investment, held a portfolio of investment securities available-for-sale. ◦ Long Term Care Conversion Funding, LLC ("LTCC Funding") provided 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, thereby becoming a single member LLC. In 2018, the remaining life settlement contracts matured or were sold. ◦ 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 100.0% 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 Partners, L.P. ("Pelium Capital"). Pelium Capital, accounted for as an equity method investment, held investment securities, trading. ◦ 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, LLC ("CVC Credit Partners"), formerly Apidos Capital Management ("ACM"), a subsidiary of CVC Capital Partners SICAV-FIS, S.A. C-III sold its 24.0% interest in CVC Credit Partners in August 2017. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and the accounting policies set forth in Note 2 included in the Company's annual report on Form 10-K for the year ended December 31, 2017 . 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. Basis of Presentation All adjustments necessary to present fairly the Company's financial position, results of operations and cash flows have been made. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and all highly liquid investments with original maturities of three months or less at the time of purchase. At June 30, 2018 and December 31, 2017 , approximately $77.4 million and $177.5 million , respectively, of the reported cash balances exceeded the Federal Deposit Insurance Corporation and Securities Investor Protection Corporation deposit insurance limits of $250,000 per respective depository or brokerage institution. However, all of the Company's cash deposits are held at multiple, established financial institutions to minimize credit risk exposure. Restricted cash includes required account balance minimums primarily for the Company's CRE CDO securitizations and cash held in the syndicated corporate loan CDOs. The following table provides a reconciliation of cash, cash equivalents and restricted cash on the consolidated balance sheets to the total amount shown on the consolidated statements of cash flows (dollars in thousands): June 30, 2018 2017 Cash and cash equivalents $ 80,191 $ 102,733 Restricted cash 10,070 1,286 Total cash, cash equivalents and restricted cash shown on the Company's consolidated statements of cash flows $ 90,261 $ 104,019 Preferred Equity Investment Preferred equity investments, which are subordinate to any loans but senior to common equity, depending on the investment's characteristics, may be accounted for as real estate, joint ventures or as mortgage loans. The Company's preferred equity investment is accounted for as a CRE loan held for investment, is carried at cost, net of unamortized loan fees and origination costs, and is included within CRE loans on the Company's consolidated balance sheets. The Company accretes or amortizes any discounts or premiums over the life of the related loan utilizing the effective interest method. Interest and fees are recognized as income subject to recoverability, which is substantiated by obtaining annual appraisals on the underlying property. Discontinued Operations The results of operations of a component or a group of components of the Company that either has been disposed of or is classified as held for sale is reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company's operations and financial results. Income Taxes The Company established a full valuation allowance against its net deferred tax assets of approximately $10.4 million at June 30, 2018 as the Company believes it is more likely than not that the deferred tax assets will 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 by the Company's TRSs. Recent Accounting Standards Accounting Standards Adopted in 2018 In May 2017, the Financial Accounting Standards Board ("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. Adoption did not have a material impact on the Company's consolidated financial statements. In January 2017, the FASB issued guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance provides a screen to determine when an integrated set of assets and activities (a "set") is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, the guidance requires that: (i) to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create an output and (ii) remove the evaluation of whether a market participant could replace missing elements. The guidance also narrows the definition of an output to: the result of inputs and processes applied to those inputs that provide goods or services to customers, investment income (such as dividends or interest), or other revenues. Adoption did not have a material impact on the Company's consolidated financial statements. 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. Adoption did not have a material impact on the Company's consolidated financial statements. In August 2016, the FASB issued guidance to reduce the diversity in practice around the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. The guidance addresses the following eight specific cash flow issues: (i) debt prepayments or extinguishment costs; (ii) contingent consideration payments made after a business combination; (iii) proceeds from the settlement of insurance claims; (iv) proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); (v) settlement of zero-coupon debt instruments or other debt instruments with insignificant coupon rates; (vi) distributions received from equity method investees; (vii) beneficial interests in securitization transactions and (viii) separately identifiable cash flows and application of the predominance principle. Adoption did not have a material impact on the Company's consolidated financial statements. In January 2016, the FASB issued guidance to address certain aspects of the 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. 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 did not have a material impact on its consolidated financial statements. Accounting Standards to be Adopted in Future Periods In June 2018, the FASB issued guidance to simplify the accounting for share-based payment transactions for acquiring goods and services from nonemployees by including these payments in the scope of the guidance for share-based payments to employees. 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 new guidance. 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 new 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 new 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 completed its assessment under the new guidance on revenue recognition from contracts with customers, see "Account Standards Adopted in 2018 ." The Company is currently evaluating the impact of this guidance on leases and the measurement of credit losses on financial instruments and its impact on its consolidated financial statements. In 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 in the process of evaluating the impact of this new guidance. Reclassifications Certain reclassifications have been made to the 2017 consolidated financial statements to conform to the 2018 presentation. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2018 | |
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 eight and seven VIEs at June 30, 2018 and December 31, 2017 , respectively (collectively, the "Consolidated VIEs"). The Consolidated VIEs were formed on behalf of the Company to invest in real estate-related securities, commercial mortgage-backed 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 ("C3AM"), 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. 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 10 . The Company has exposure to losses on its securitizations to the extent of its investments in the subordinated debt and preferred equity of each securitization. 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, the debt and equity interests the Company holds in these securitizations have been eliminated, and the Company's consolidated balance sheets reflect the assets held, debt issued by the securitizations to third parties and any accrued payables 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. Creditors of the Company's Consolidated VIEs have no recourse to the general credit of the Company, nor to each other. During the three and six months ended June 30, 2018 , the Company did not provide any 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 values of assets and liabilities of the Company's Consolidated VIEs at June 30, 2018 (in thousands): CRE Securitizations Other Total ASSETS Restricted cash $ 8,734 $ 511 $ 9,245 Accrued interest receivable 2,738 — 2,738 CRE loans, pledged as collateral 1,012,900 — 1,012,900 Other assets 267 9 276 Total assets (1) $ 1,024,639 $ 520 $ 1,025,159 LIABILITIES Accounts payable and other liabilities $ 119 $ — $ 119 Accrued interest payable 485 — 485 Borrowings 632,004 — 632,004 Total liabilities $ 632,608 $ — $ 632,608 (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 June 30, 2018 . 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. 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 June 30, 2018 . 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. RCM Global The Company, together with certain of Resource America, Inc.'s ("Resource America"), a wholly-owned subsidiary of C-III, subsidiaries, former employees and former employees' spouses, holds a membership interest in RCM Global, which formerly held a portfolio of available-for-sale securities. 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, following adoption of the amendments to the consolidation guidance under which the Company concluded that it was not the primary beneficiary of RCM Global, the Company deconsolidated and began accounting for its investment as an equity method investment in investments in unconsolidated entities on its consolidated financial statements. At June 30, 2018 , the Company held a 63.8% interest in RCM Global, and the remainder was owned by subsidiaries and current and former employees of Resource America. The Company held an $80,000 investment at June 30, 2018 . Pelium Capital The Company, together with a subsidiary of Resource America, holds a partnership interest in Pelium Capital, a specialized credit opportunity fund that formerly held a portfolio of investment securities. In January 2016, upon adoption of the amendments to the consolidation guidance under which the Company concluded that it had a variable interest and was not the primary beneficiary in Pelium Capital, the Company deconsolidated and accounted for its investment as an equity method investment in investments in unconsolidated entities on its consolidated financial statements. At June 30, 2018 , the Company held an 80.2% interest in Pelium Capital, with a carrying value of $154,000 . 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. C3AM, a related party that is not under common control, is the special servicer of C40. 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 accounts for its various investments in C40 as investment securities available-for-sale on its consolidated financial statements. Prospect Hackensack JV LLC In March 2018, the Company invested $19.2 million in the preferred equity of Prospect Hackensack JV LLC ("Prospect Hackensack"), a joint venture between the Company and an unrelated third party ("Managing Member"). Prospect Hackensack was formed for the purpose of acquiring and operating a multifamily CRE property. The Managing Member manages the daily operations of the property. The Company determined that although its investment in Prospect Hackensack represented a variable interest, its investment did not provide the Company with a controlling financial interest. The Company accounts for its investment in Prospect Hackensack's preferred equity as a CRE loan on 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 June 30, 2018 (in thousands): Unsecured Junior Subordinated Debentures RCM Global Pelium Capital C40 Prospect Hackensack Total Maximum Exposure to Loss ASSETS Accrued interest receivable $ 21 $ — $ — $ 167 $ — $ 188 $ — CRE loans — — — — 19,374 19,374 $ 19,374 Investment securities available-for-sale (1) — — — 21,113 — 21,113 $ 20,938 Investments in unconsolidated entities 1,548 80 154 — — 1,782 $ 1,782 Total assets 1,569 80 154 21,280 19,374 42,457 LIABILITIES Accrued interest payable 688 — — — — 688 N/A Borrowings 51,548 — — — — 51,548 N/A Total liabilities 52,236 — — — — 52,236 N/A Net asset (liability) $ (50,667 ) $ 80 $ 154 $ 21,280 $ 19,374 $ (9,779 ) N/A (1) The Company's investment in C40 is carried at fair value and its maximum exposure to loss is the amortized cost of the investment. At June 30, 2018 , there were no explicit arrangements or implicit variable interests that could require the Company to provide financial support to any of its unconsolidated VIEs. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 6 Months Ended |
Jun. 30, 2018 | |
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): For the Six Months Ended June 30, 2018 2017 Non-cash continuing financing activities include the following: Distributions on common stock accrued but not paid $ 3,166 $ 1,567 Distribution on preferred stock accrued but not paid $ 1,725 $ 4,010 |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2018 | |
LOANS HELD FOR INVESTMENT [Abstract] | |
LOANS | NOTE 5 - LOANS The following is a summary of the Company's loans (dollars in thousands, except amounts in footnotes): Description Quantity Principal Unamortized (Discount) (1) Amortized Cost Allowance for Loan Losses Carrying (2) Contractual Interest Rates (3) Maturity Dates (4)(5)(6) At June 30, 2018: CRE loans held for investment: Whole loans (7)(8) 78 $ 1,434,572 $ (7,916 ) $ 1,426,656 $ (4,529 ) $ 1,422,127 1M LIBOR plus 2.50% to 1M LIBOR plus 6.25% July 2018 to July 2021 Mezzanine loan 1 4,700 — 4,700 — 4,700 10.00% June 2028 Preferred equity investment (see Note 3) (9)(10) 1 19,374 (183 ) 19,191 — 19,191 11.50% April 2025 Total CRE loans held for investment 1,458,646 (8,099 ) 1,450,547 (4,529 ) 1,446,018 Total loans $ 1,458,646 $ (8,099 ) $ 1,450,547 $ (4,529 ) $ 1,446,018 At December 31, 2017: CRE loans held for investment: Whole loans (7) 70 $ 1,297,164 $ (7,014 ) $ 1,290,150 $ (5,328 ) $ 1,284,822 1M LIBOR plus 3.60% to 1M 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 (11) 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 (1) Amounts include unamortized loan origination fees of $7.6 million and $6.7 million and deferred amendment fees of $482,000 and $268,000 being amortized over the life of the loans at June 30, 2018 and December 31, 2017 , respectively. (2) Substantially all loans are pledged as collateral under various borrowings at June 30, 2018 and December 31, 2017 . (3) LIBOR refers to the London Interbank Offered Rate. (4) Maturity dates exclude contractual extension options, subject to the satisfaction of certain terms, that may be available to the borrowers. (5) Maturity dates exclude one whole loan, with an amortized cost of $7.0 million , in default at June 30, 2018 and December 31, 2017 . (6) Maturity dates exclude one whole loan, with an amortized cost of $11.5 million , in maturity default and performing with respect to debt service due in accordance with a forbearance agreement at June 30, 2018 . The loan was classified as an asset held for sale and in maturity default at December 31, 2017 . (7) Whole loans had $88.7 million and $84.1 million in unfunded loan commitments at June 30, 2018 and December 31, 2017 , 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. (8) At June 30, 2018 , two legacy CRE loans with amortized costs of $28.3 million were reclassified to whole loans from assets held for sale as it is now the Company's intent to hold these loans to maturity. (9) The interest rate on the Company's preferred equity investment pays currently at 8.00% . The remaining interest is deferred until maturity. (10) Beginning in April 2023, the Company has the right to unilaterally force the sale of the underlying property. (11) 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, except amounts in footnotes): Description 2018 2019 2020 and Thereafter Total At June 30, 2018: Whole loans (1)(2) $ — $ 112,694 $ 1,295,446 $ 1,408,140 Mezzanine loan — — 4,700 4,700 Preferred equity investment — — 19,191 19,191 Total CRE loans (1)(2) $ — $ 112,694 $ 1,319,337 $ 1,432,031 Description 2018 2019 2020 and Thereafter Total At December 31, 2017: Whole loans (1) $ — $ 148,622 $ 1,134,528 $ 1,283,150 (1) Excludes one whole loan, with an amortized cost of $7.0 million , in default at June 30, 2018 and December 31, 2017 . (2) Excludes one whole loan, with an amortized cost of $11.5 million , in maturity default and performing with respect to debt service due in accordance with a forbearance agreement at June 30, 2018 . The loan was classified as an asset held for sale and in maturity default at December 31, 2017 . At June 30, 2018 , approximately 31.2% , 24.0% and 13.1% 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, 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. Principal Paydowns Receivable Principal paydowns receivable represents loan principal payments that have been received by the Company's servicers and trustees but have not been remitted to the Company. At June 30, 2018 , the Company had no loan principal paydowns receivable. 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 in January 2018. |
FINANCING RECEIVABLES
FINANCING RECEIVABLES | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
FINANCING RECEIVABLES | NOTE 6 - FINANCING RECEIVABLES The following tables show the activity in the allowance for loan and lease losses for the six months ended June 30, 2018 and year ended December 31, 2017 and the allowance for loan and lease losses and recorded investments in loans and leases at June 30, 2018 and December 31, 2017 (in thousands): Six Months Ended June 30, 2018 Year Ended December 31, 2017 Commercial Real Estate 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 period $ 5,328 $ 735 $ 6,063 $ 3,829 $ — $ 465 $ 4,294 Provision for (recovery of) loan and lease losses, net (799 ) — (799 ) 1,499 3 270 1,772 Loans charged-off — — — — (3 ) — (3 ) Allowance for loan and lease losses at end of period $ 4,529 $ 735 $ 5,264 $ 5,328 $ — $ 735 $ 6,063 June 30, 2018 December 31, 2017 Commercial Real Estate 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 $ — $ 735 $ 3,235 Collectively evaluated for impairment $ 2,029 $ — $ 2,029 $ 2,828 $ — $ — $ 2,828 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — $ — Loans and Leases: Amortized cost ending balance: Individually evaluated for impairment $ 30,891 $ 801 $ 31,692 $ 7,000 $ — $ 886 $ 7,886 Collectively evaluated for impairment $ 1,419,656 $ — $ 1,419,656 $ 1,283,150 $ — $ — $ 1,283,150 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 loan-to-collateral value ratios, 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. All CRE loans are evaluated for any credit deterioration by debt asset management and certain finance personnel on at least a quarterly basis. Whole 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) 5.0% 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 as a 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. The Company's mezzanine loan and preferred equity investment are evaluated individually for impairment. Credit risk profiles of CRE loans at amortized cost and legacy CRE loans held for sale at the lower of cost or fair value were as follows (in thousands, except amounts in footnotes): Rating 1 Rating 2 Rating 3 (1) Rating 4 Rating 5 (2) Held for Sale (3) Total At June 30, 2018: Whole loans $ 13,000 $ 1,271,509 $ 130,302 $ 4,845 $ 7,000 $ — $ 1,426,656 Mezzanine loan (4) — 4,700 — — — — 4,700 Preferred equity investment (4) — 19,191 — — — — 19,191 Legacy CRE loans held for sale — — — — — 18,000 18,000 $ 13,000 $ 1,295,400 $ 130,302 $ 4,845 $ 7,000 $ 18,000 $ 1,468,547 At December 31, 2017: Whole loans $ 65,589 $ 1,040,883 $ 171,841 $ 4,837 $ 7,000 $ — $ 1,290,150 Legacy CRE loans held for sale — — — — — 61,841 61,841 $ 65,589 $ 1,040,883 $ 171,841 $ 4,837 $ 7,000 $ 61,841 $ 1,351,991 (1) Includes one whole loan, with an amortized cost of $11.5 million , that was in maturity default at June 30, 2018 . The loan is performing with respect to debt service due in accordance with a forbearance agreement at June 30, 2018 . (2) Includes one whole loan, with an amortized cost of $7.0 million , that was in default at June 30, 2018 and December 31, 2017 . (3) Includes one and two legacy CRE loans that were in default with total carrying values of $18.0 million and $22.5 million at June 30, 2018 and December 31, 2017 , respectively. (4) The Company's mezzanine loan and preferred equity investment are evaluated individually for impairment. At June 30, 2018 and 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 loan had an amortized cost of $7.0 million at June 30, 2018 and December 31, 2017 . The Company obtained an appraisal of the collateral in 2016, indicating a fair value of $4.5 million , which it relied upon as a practical expedient for determining the value of the loan at June 30, 2018 and December 31, 2017 . No additional provision was recorded on the loan for the three and six months ended June 30, 2018 and 2017 . This loan was in default at June 30, 2018 and December 31, 2017 . At June 30, 2018 , the Company had one legacy CRE loan and one mezzanine loan included in assets held for sale with total carrying values of $18.0 million , comprising total amortized cost bases of $24.6 million less a valuation allowance of $6.6 million . The mezzanine loan held for sale had no fair value at June 30, 2018 . At December 31, 2017 , the Company had four legacy CRE loans and one mezzanine loan included in assets held for sale with total carrying values of $61.8 million , comprising total amortized cost bases of $63.8 million less a valuation allowance of $1.9 million . The mezzanine loan held for sale had no fair value at December 31, 2017 . In June 2018, the Company sold the note and deed of trust of one legacy CRE loan for $12.0 million , resulting in a realized gain of $1.0 million for the three and six months ended June 30, 2018 . At June 30, 2018 , the Company reclassified two legacy CRE loans back into the CRE loan portfolio at the lesser of each loan's cost or market value, totaling $28.3 million , as the Company now intends to hold the loans to maturity. The loans are classified as CRE loans on the consolidated balance sheets. One reclassified loan with an amortized cost of $11.5 million was in maturity default at June 30, 2018 and December 31, 2017 and is performing with respect to debt service due in accordance with a forbearance agreement. At June 30, 2018 and December 31, 2017 , the one remaining legacy CRE loan had a carrying value of $18.0 million and $22.5 million , respectively. An additional fair value adjustment of $4.7 million , which included protective advances of $172,000 , to reduce the carrying value was recognized during the six months ended June 30, 2018 . This adjustment was recorded based on the receipt of updated appraisals in April 2018 and was recognized in fair value adjustments on financial assets held for sale on the Company's consolidated statements of operations. No valuation adjustments were recognized for the three months ended June 30, 2018 , nor the three and six months ended June 30, 2017 . The loan is currently in default. At December 31, 2017 , 45.8% , 36.4% and 17.8% of the Company's legacy CRE loans were concentrated in retail, hotel and office, respectively, based on carrying value. Of these loans, 82.2% and 17.8% were within the Pacific and Mountain regions, respectively. Except as previously discussed, all of the Company's CRE loans, its mezzanine loan and its preferred equity investment were current with respect to contractual principal and interest at June 30, 2018 . Direct Financing Leases The Company recorded no provision for lease losses against the value of its direct financing leases during the three and six months ended June 30, 2018 . The Company recorded a provision for lease losses of $131,000 and $270,000 during the three and six months ended June 30, 2017 , respectively. The Company held $66,000 and $151,000 of direct financing leases, net of reserves, at June 30, 2018 and December 31, 2017 , respectively. Loan Portfolios Aging Analysis The following table presents the CRE loan portfolio aging analysis as of the dates indicated at amortized cost and legacy CRE loans held for sale at the lower of cost or fair value (in thousands, except amounts in footnotes): 30-59 Days 60-89 Days Greater (1)(2) Total Past Due (3) Current Total (4) Total Loans > 90 Days and Accruing (2) At June 30, 2018: Whole loans $ — $ — $ 18,516 $ 18,516 $ 1,408,140 $ 1,426,656 $ 11,516 Mezzanine loan — — — — 4,700 4,700 — Preferred equity investment — — — — 19,191 19,191 — Legacy CRE loans held for sale — — 18,000 18,000 — 18,000 — Total loans $ — $ — $ 36,516 $ 36,516 $ 1,432,031 $ 1,468,547 $ 11,516 At December 31, 2017: Whole loans $ — $ — $ 7,000 $ 7,000 $ 1,283,150 $ 1,290,150 $ — Legacy CRE loans held for sale 11,516 — 11,000 22,516 39,325 61,841 — Total loans $ 11,516 $ — $ 18,000 $ 29,516 $ 1,322,475 $ 1,351,991 $ — (1) Includes one whole loan, with an amortized cost of $7.0 million , that was in default at June 30, 2018 and December 31, 2017 . (2) Includes one whole loan, with an amortized cost of $11.5 million , that was in maturity default at June 30, 2018 . The loan is performing with respect to debt service due in accordance with a forbearance agreement at June 30, 2018 . (3) Includes one and two legacy CRE loans held for sale that were in default with total carrying values of $18.0 million and $22.5 million at June 30, 2018 and December 31, 2017 , respectively. (4) Excludes direct financing leases of $66,000 and $151,000 , net of reserves, at June 30, 2018 and December 31, 2017 , respectively. Impaired Loans The following tables show impaired loans as of the dates indicated (in thousands): Recorded Balance Unpaid Principal Balance Specific Allowance Average Investment in Impaired Loans Interest Income Recognized At June 30, 2018: Loans without a specific valuation allowance: Whole loans $ — $ — $ — $ — $ — Loans with a specific valuation allowance: Whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ — Total: Whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ — At December 31, 2017: Loans without a specific valuation allowance: Whole loans $ — $ — $ — $ — $ — Loans with a specific valuation allowance: Whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ — Total: Whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ — Troubled-Debt Restructurings ("TDR") There were no TDRs for the six months ended June 30, 2018 and 2017 . |
INVESTMENT SECURITIES, TRADING
INVESTMENT SECURITIES, TRADING | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES, TRADING | NOTE 7 - INVESTMENT SECURITIES, TRADING Structured notes are CLO debt securities collateralized by syndicated corporate loans. The following table summarizes the Company's structured notes classified as investment securities, trading and carried at fair value (in thousands, except number of securities): Number of Securities Amortized Cost Unrealized Gains Unrealized Losses Fair Value At June 30, 2018: Structured notes 1 $ 1,000 $ — $ (1,000 ) $ — At December 31, 2017: Structured notes 4 $ 2,891 $ — $ (2,713 ) $ 178 The Company did not sell any investment securities during the three months ended June 30, 2018 and two investment securities resulting in realized losses of $5,000 during the six months ended June 30, 2018 . The Company did not sell any investment securities during the three months ended June 30, 2017 and one investment security resulting in a realized gain of $9,000 during the six months ended June 30, 2017 . The Company received payoff proceeds on one investment security resulting in a realized loss of $3,000 during the three and six months ended June 30, 2018. |
INVESTMENT SECURITIES AVAILABLE
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | 6 Months Ended |
Jun. 30, 2018 | |
Debt Securities, Available-for-sale [Abstract] | |
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | NOTE 8 - INVESTMENT SECURITIES AVAILABLE-FOR-SALE The following table summarizes the Company's investment securities available-for-sale, including those pledged as collateral. As of December 31, 2017 , ABS may include, but are not limited to, the Company's investments in securities backed by syndicated corporate loans and other loan obligations. Investment securities available-for-sale are carried at fair value (in thousands, except amounts in the footnote): Amortized Cost Unrealized Gains Unrealized Losses Fair Value (1) At June 30, 2018: CMBS $ 317,414 $ 2,347 $ (1,337 ) $ 318,424 Total $ 317,414 $ 2,347 $ (1,337 ) $ 318,424 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 (1) At June 30, 2018 and December 31, 2017 , $255.2 million and $169.6 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): June 30, 2018 December 31, 2017 Amortized Cost Fair Value Weighted Average Coupon Amortized Cost Fair Value Weighted Average Coupon Less than one year (1) $ 22,563 $ 22,237 5.32% $ 25,475 $ 25,275 5.55% Greater than one year and less than five years 172,565 173,646 5.04% 126,273 127,104 4.65% Greater than five years and less than ten years 122,286 122,541 3.65% 59,317 59,358 3.53% Total $ 317,414 $ 318,424 4.52% $ 211,065 $ 211,737 4.45% (1) The Company expects that the payoff dates of these CMBS and ABS will either be extended or that the securities will be paid off in full. At June 30, 2018 , the contractual maturities of the CMBS investment securities available-for-sale range from June 2022 to November 2059 . 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 Losses Number of Fair Unrealized Losses Number of Fair Unrealized Losses Number of At June 30, 2018: CMBS $ 39,979 $ (883 ) 13 $ 4,072 $ (454 ) 5 $ 44,051 $ (1,337 ) 18 Total temporarily impaired securities $ 39,979 $ (883 ) 13 $ 4,072 $ (454 ) 5 $ 44,051 $ (1,337 ) 18 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 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 impairments on its investment securities available-for-sale for the three and six months ended June 30, 2018 and 2017 . The following table summarizes the Company's sales of investment securities available-for-sale (in thousands, except positions sold and redeemed): For the Three Months Ended For the Six Months Ended Positions Sold/Redeemed Par Amount Sold/Redeemed Amortized Cost Realized Gain (Loss) (1) Proceeds (2) Positions Sold/Redeemed Par Amount Sold/Redeemed Amortized Cost Realized Gain (Loss) (1) Proceeds (2) June 30, 2018: ABS 0 $ — $ — $ — $ — 2 $ 411 $ 265 $ (217 ) $ 48 CMBS 0 — — — — 0 — — — — Total — $ — $ — $ — $ — 2 $ 411 $ 265 $ (217 ) $ 48 June 30, 2017: ABS 2 $ 9,605 $ 7,475 $ 1,792 $ 7,235 2 $ 9,605 $ 7,475 $ 1,792 $ 7,235 Total 2 $ 9,605 $ 7,475 $ 1,792 $ 7,235 2 $ 9,605 $ 7,475 $ 1,792 $ 7,235 (1) The realized gains for the three and six months ended June 30, 2017 exclude foreign currency exchange losses that were hedged with foreign currency forward contracts. (2) Includes unsettled proceeds of $3.1 million , received in July 2017, from the sale of one ABS during the three and six months ended June 30, 2017 . |
INVESTMENTS IN UNCONSOLIDATED E
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | NOTE 9 - INVESTMENTS IN UNCONSOLIDATED ENTITIES The following table summarizes the Company's investments in unconsolidated entities at June 30, 2018 and December 31, 2017 and equity in earnings (losses) of unconsolidated entities for the three and six months ended June 30, 2018 and 2017 (in thousands, except percentages and amounts in footnotes): Equity in Earnings (Losses) of Unconsolidated Entities For the Three Months Ended For the Six Months Ended Ownership % at June 30, 2018 June 30, December 31, June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Pelium Capital (1) 80.2% $ 154 $ 10,503 $ 75 $ 82 $ (230 ) $ (77 ) RCM Global 63.8% 80 — (6 ) (166 ) 7 (170 ) RRE VIP Borrower, LLC (2) —% — — — 37 — 37 Pearlmark Mezzanine Realty Partners IV, L.P. (3) —% — — — (193 ) — 165 Investment in LCC Preferred Stock (4) —% — — — 122 — 288 Subtotal 234 10,503 69 (118 ) (223 ) 243 Investment in RCT I and II (5) 3.0% 1,548 1,548 (806 ) (663 ) (1,530 ) (1,300 ) Total $ 1,782 $ 12,051 $ (737 ) $ (781 ) $ (1,753 ) $ (1,057 ) (1) During the six months ended June 30, 2018 and 2017 , the Company received distributions of $10.2 million and $13.6 million , respectively, on its investment in Pelium Capital. (2) The Company sold its investment in RRE VIP Borrower in December 2014. Earnings for the three and six months ended June 30, 2017 are related to insurance premium refunds with respect to the underlying sold properties in the portfolio. (3) The Company sold its investment in Pearlmark Mezzanine Reality Partners IV, L.P. ("Pearlmark Mezz") in May 2017. (4) The Company's investment in LEAF Commercial Capital, Inc. ("LCC") liquidated in July 2017 as a result of the sale of LCC. (5) During the six months ended June 30, 2018 and 2017 , distributions from the trusts are recorded in interest expense on the Company's consolidated statements of operations as the investments are accounted for under the cost method. During the six months ended June 30, 2018 , investments held by Pelium Capital and RCM Global were substantially liquidated. |
BORROWINGS
BORROWINGS | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
BORROWINGS | NOTE 10 - 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 and amounts in footnotes): Principal Outstanding Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Borrowing Rate Weighted Average Remaining Maturity Value of Collateral At June 30, 2018: RCC 2015-CRE3 Senior Notes $ 16,592 $ 142 $ 16,450 6.07% 13.7 years $ 80,632 RCC 2015-CRE4 Senior Notes 8,644 132 8,512 5.07% 14.1 years 97,827 RCC 2017-CRE5 Senior Notes 217,954 2,918 215,036 3.12% 16.1 years 336,734 XAN 2018-RSO6 Senior Notes 397,452 5,446 392,006 3.19% 17.0 years 514,225 Unsecured junior subordinated debentures 51,548 — 51,548 6.28% 18.2 years — 4.50% Convertible Senior Notes 143,750 15,107 128,643 4.50% 4.1 years — 6.00% Convertible Senior Notes 70,453 425 70,028 6.00% 154 days — 8.00% Convertible Senior Notes 21,182 352 20,830 8.00% 1.5 years — CRE - term repurchase facilities (1) 160,755 1,968 158,787 4.34% 43 days 255,334 Trust certificates - term repurchase facilities (2) 74,134 417 73,717 6.58% 1.6 years 207,901 CMBS - short term repurchase agreements (3) 184,089 — 184,089 3.48% 48 days 262,654 Total $ 1,346,553 $ 26,907 $ 1,319,646 4.07% 9.2 years $ 1,755,307 Principal Outstanding Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Borrowing Rate Weighted Average Remaining Maturity Value of Collateral 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 Trust certificates - term repurchase facilities (2) 76,714 570 76,144 5.97% 2.1 years 214,375 CMBS - short term repurchase agreements (3) 82,647 — 82,647 2.79% 14 days 131,522 CMBS - term repurchase facilities (4) 27,628 — 27,628 3.05% 121 days 38,060 Total $ 1,187,384 $ 23,899 $ 1,163,485 4.00% 7.3 years $ 1,515,510 (1) Principal outstanding includes accrued interest payable of $276,000 and $534,000 at June 30, 2018 and December 31, 2017 , respectively. (2) Principal outstanding includes accrued interest payable of $203,000 and $203,000 at June 30, 2018 and December 31, 2017 , respectively. (3) Principal outstanding includes accrued interest payable of $672,000 and $279,000 at June 30, 2018 and December 31, 2017 , respectively. (4) Principal outstanding includes accrued interest payable of $46,000 at December 31, 2017 . Securitizations The following table sets forth certain information with respect to the Company's consolidated securitizations at June 30, 2018 (in thousands): Securitization Closing Date Maturity Date End of Designated Principal Reinvestment Period (1) Total Note Paydowns Received from Closing Date through June 30, 2018 RCC 2015-CRE3 February 2015 March 2032 February 2017 $ 265,535 RCC 2015-CRE4 August 2015 August 2032 September 2017 $ 215,091 RCC 2017-CRE5 July 2017 July 2034 July 2020 $ 33,495 XAN 2018-RSO6 June 2018 June 2035 December 2020 $ — (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 were or would be 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 June 30, 2018 and December 31, 2017 are eliminated in consolidation. RCC 2015-CRE3 In August 2018, a subsidiary of the Company initiated the optional redemption feature of RCC 2015-CRE3. RCC 2015-CRE4 In July 2018, a subsidiary of the Company exercised the optional redemption feature of RCC 2015-CRE4, and all of the outstanding senior notes were paid off from the payoff proceeds of certain of the securitizations's assets. XAN 2018-RSO6 In June 2018, the Company closed XAN 2018-RSO6, a $514.2 million CRE securitization transaction that provided financing for transitional CRE loans. XAN 2018-RSO6 offered approximately $405.0 million of senior notes, at par, to unrelated investors. A subsidiary of RCC Real Estate purchased 16.7% of the Class D senior notes and 100% of the Class E and Class F notes. In addition, a subsidiary of RCC Real Estate purchased an equity interest representing 100% of the outstanding preference shares. The Class E and Class F notes purchased by a subsidiary of RCC Real Estate are subordinated in right of payment to all other senior notes issued by XAN 2018-RSO6, 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 XAN 2018-RSO6. At closing, the senior notes issued to investors consisted of the following classes: (i) $290.5 million of Class A notes bearing interest at one-month LIBOR plus 0.83% , increasing to 1.08% in May 2023 ; (ii) $39.2 million of Class B notes bearing interest at one-month LIBOR plus 1.15% , increasing to 1.65% in July 2023 ; (iii) $30.2 million of Class C notes bearing interest at one-month LIBOR plus 1.85% , increasing to 2.35% in July 2023 ; (iv) $45.0 million of Class D notes bearing interest at one-month LIBOR plus 2.50% , increasing to 3.00% in September 2023 ; (v) $18.0 million of Class E notes bearing interest at one-month LIBOR plus 4.00% ; and (vi) $21.9 million of Class F notes bearing interest at one-month LIBOR plus 5.00% . All of the notes issued mature in June 2035 , although the Company has the right to call the notes any time after July 2020 until maturity. 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 (in thousands, except percentages and amounts in footnotes): June 30, 2018 December 31, 2017 Outstanding Borrowings (1) Value of Collateral Number of Positions as Collateral Weighted Average Interest Rate Outstanding Borrowings (1) Value of Collateral Number of Positions as Collateral Weighted Average Interest Rate CRE - Term Repurchase Facilities Wells Fargo Bank, N.A. (2) $ 92,621 $ 146,705 8 4.09% $ 179,347 $ 268,003 19 3.68% Morgan Stanley Bank, N.A. (3) 67,947 108,629 5 4.68% 112,151 164,122 9 4.05% Barclays Bank PLC (4) (1,782 ) — — —% — — — —% CMBS - Term Repurchase Facilities Wells Fargo Bank, N.A. — — — —% 12,272 14,984 8 2.45% Deutsche Bank AG (7) — — — —% 15,356 23,076 14 3.53% Trust Certificates - Term Repurchase Facilities RSO Repo SPE Trust 2015 (5) 26,624 89,121 2 7.57% 26,548 89,121 2 6.98% RSO Repo SPE Trust 2017 (6) 47,093 118,780 2 6.02% 49,596 125,254 2 5.43% CMBS - Short-Term Repurchase Agreements RBC Capital Markets, LLC 156,643 207,291 22 3.48% 72,131 97,745 6 2.77% JP Morgan Securities LLC 13,780 38,231 5 3.48% 10,516 33,777 2 2.93% Deutsche Bank Securities Inc. (7) 13,667 17,132 11 3.43% — — — —% Total $ 416,593 $ 725,889 $ 477,917 $ 816,082 (1) Outstanding borrowings includes accrued interest payable . (2) Includes $59,000 and $565,000 of deferred debt issuance costs at June 30, 2018 and December 31, 2017 , respectively. (3) Includes $127,000 and $448,000 of deferred debt issuance costs at June 30, 2018 and December 31, 2017 , respectively. (4) Includes $1.8 million of deferred debt issuance costs at June 30, 2018 and no deferred debt issuance costs at December 31, 2017 . (5) Includes $59,000 and $133,000 of deferred debt issuance costs at June 30, 2018 and December 31, 2017 , respectively. (6) Includes $263,000 and $320,000 of deferred debt issuance costs at June 30, 2018 and December 31, 2017 , respectively. (7) In May 2018, the facility's term was rolled from a one -year basis, with extensions at the buyer's option, to a three -month basis. At June 30, 2018 , the facility was reclassified from CMBS - term repurchase facilities to CMBS - short term repurchase agreements. The following table shows information about the amount at risk under the repurchase facilities at June 30, 2018 (in thousands, except percentages): Amount at Risk (1) Weighted Average Remaining Weighted Average At June 30, 2018: CRE - Term Repurchase Facilities Wells Fargo Bank, N.A. $ 54,677 21 days 4.09% Morgan Stanley Bank, N.A. $ 41,066 72 days 4.68% Trust Certificates - Term Repurchase Facilities RSO Repo SPE Trust 2015 $ 62,515 143 days 7.57% RSO Repo SPE Trust 2017 $ 71,438 2.2 years 6.02% CMBS - Short-Term Repurchase Agreements RBC Capital Markets, LLC $ 51,135 48 days 3.48% JP Morgan Securities LLC $ 24,535 46 days 3.48% Deutsche Bank Securities Inc. $ 3,510 56 days 3.43% (1) Equal to the total of the estimated fair value of securities or loans sold and accrued interest receivable , minus the total of the repurchase agreement liabilities and accrued interest payable . The Company is in compliance with all covenants in each of the respective agreements at June 30, 2018 . CRE - Term Repurchase Facilities In February 2012, a wholly-owned subsidiary of the Company entered into a master repurchase and securities agreement (the "2012 Facility") with Wells Fargo Bank, N.A. ("Wells Fargo") to finance the origination of CRE loans. In July 2018, the subsidiary entered into an amended and restated master repurchase agreement (the "2018 Facility"), in exchange for an extension fee and other reasonable costs, that maintained the $400.0 million maximum facility amount and extended the term of the facility to July 2020 with three one -year extension options exercisable at the Company's discretion. The 2018 Facility charges interest rates of one-month LIBOR plus spreads from 1.75% to 2.50% . The 2018 Facility, consistent with 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 2018 Facility, consistent with 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. Consistent with the guaranty agreement dated February 2012, the Company continues to guarantee the payment and performance of its subsidiaries' obligations to the lender through an amended and restated guaranty agreement dated in July 2018 (the "2018 Guaranty"), including all reasonable expenses that are incurred by the lender in connection with the enforcement of the 2018 Facility. The 2018 Guaranty includes covenants that, among other requirements, stipulate certain thresholds, including: required liquidity, required capital, total indebtedness to total equity, EBITDA to interest expense, and total indebtedness. Contractual maturity dates of the Company's borrowings' principal outstanding by category and year are presented in the table below at June 30, 2018 (in thousands): Total 2018 2019 2020 2021 2022 and Thereafter At June 30, 2018: CRE securitizations $ 640,642 $ — $ — $ — $ — $ 640,642 Unsecured junior subordinated debentures 51,548 — — — — 51,548 4.50% Convertible Senior Notes 143,750 — — — — 143,750 6.00% Convertible Senior Notes 70,453 70,453 — — — — 8.00% Convertible Senior Notes 21,182 — — 21,182 — — Repurchase and credit facilities 418,978 371,526 — 47,452 — — Total $ 1,346,553 $ 441,979 $ — $ 68,634 $ — $ 835,940 |
SHARE ISSUANCE AND REPURCHASE
SHARE ISSUANCE AND REPURCHASE | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
SHARE ISSUANCE AND REPURCHASE | NOTE 11 - SHARE ISSUANCE AND REPURCHASE In January 2018, the Company redeemed 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 redemption prices of $25.00 per share plus accrued but unpaid distributions. The total redemption cost of $50.0 million was reported as a preferred stock redemption liability on the consolidated balance sheet at December 31, 2017 . In March 2018, the Company redeemed all remaining shares of its Series B Preferred Stock at a redemption price of $25.00 per share, or $115.3 million , plus accrued but unpaid distributions, resulting in a preferred stock redemption charge of $7.5 million on the consolidated statement of operations for the six months ended June 30, 2018 . 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 in 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 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 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 approved a new securities repurchase program for up to $50.0 million of its outstanding securities, which replaced the August 2015 repurchase plan. During the three and six months ended June 30, 2018 and 2017 , the Company did not repurchase any shares of its common or preferred stock through this program. At June 30, 2018 , $44.9 million remains available under this repurchase plan. At June 30, 2018 , the Company had 4.8 million shares of Series C Preferred Stock outstanding, with a weighted average issuance price, excluding offering costs, of $25.00 . |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 12 - SHARE-BASED COMPENSATION The following table summarizes the Company's restricted common stock transactions: Non-Employee Directors Non-Employees (1) Former Employees Total Unvested shares at January 1, 2018 34,565 419,541 28,967 483,073 Issued 27,032 209,355 — 236,387 Vested (29,947 ) (237,039 ) (23,158 ) (290,144 ) Forfeited — (1,725 ) — (1,725 ) Unvested shares at June 30, 2018 31,650 390,132 5,809 427,591 (1) Non-employees are employees of C-III or 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 fair values at grant date of the shares of restricted common stock granted to non-employees during the six months ended June 30, 2018 and 2017 were $2.0 million and $2.7 million , respectively. The fair values at grant date of shares of restricted common stock issued to the Company's eight non-employee directors during the six months ended June 30, 2018 and 2017 were $255,000 and $290,000 , respectively. At June 30, 2018 , the total unrecognized restricted common stock expense for non-employees was $2.2 million , with a weighted average amortization period remaining of 2.2 years . 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 . The following table summarizes restricted common stock grants during the six months ended June 30, 2018 : Date Shares Vesting per Year Vesting Date(s) January 18, 2018 209,355 33.3% January 18, 2019, January 18, 2020 and January 18, 2021 February 1, 2018 3,727 100.0% February 1, 2019 March 8, 2018 16,302 100.0% March 8, 2019 June 1, 2018 3,493 100.0% June 1, 2019 June 6, 2018 3,510 100.0% June 6, 2019 The following table summarizes the status of the Company's vested stock options at June 30, 2018 : Vested Options Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Vested at January 1, 2018 10,000 $ 25.60 Vested — — Exercised — — Forfeited — — Expired — — Vested at June 30, 2018 10,000 $ 25.60 2.88 $ — There were no options granted during the six months ended June 30, 2018 or 2017 . The outstanding stock options have contractual terms of ten years and will expire in 2021. The components of equity compensation expense for the periods presented are as follows (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2018 2017 2018 2017 Restricted shares granted to non-employees (1) $ 587 $ 675 $ 1,481 $ 1,390 Restricted shares granted to non-employee directors 72 59 145 132 Total equity compensation expense (2) $ 659 $ 734 $ 1,626 $ 1,522 (1) Non-employees are employees of C-III or Resource America. (2) Amounts exclude equity compensation expense for employees of PCM, which is included in net income (loss) from discontinued operations, net of tax on the consolidated statements of operations during the three and six months ended June 30, 2017 . 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 management fee on the consolidated statements of operations. The Manager received no incentive management fee for the three and six months ended June 30, 2018 or 2017 . 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. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 13 - EARNINGS PER SHARE The following table presents a reconciliation of basic and diluted earnings (losses) per share for the periods presented as follows (in thousands, except share and per share amounts): For the Three Months Ended For the Six Months Ended June 30, June 30, 2018 2017 2018 2017 Net income from continuing operations $ 9,189 $ 12,568 $ 9,052 $ 21,742 Net income allocated to preferred shares (2,587 ) (6,015 ) (7,797 ) (12,029 ) Consideration paid in excess of carrying value of preferred shares — — (7,482 ) — Net loss allocable to non-controlling interest, net of taxes — 95 — 196 Net income (loss) from continuing operations allocable to common shares 6,602 6,648 (6,227 ) 9,909 Net loss from discontinued operations, net of tax (450 ) (4,184 ) (203 ) (4,745 ) Net income (loss) allocable to common shares $ 6,152 $ 2,464 $ (6,430 ) $ 5,164 Net income (loss) per common share - basic: Weighted average number of shares outstanding 31,215,598 30,820,442 31,163,859 30,786,527 Continuing operations $ 0.21 $ 0.22 $ (0.20 ) $ 0.32 Discontinued operations (0.01 ) (0.14 ) (0.01 ) (0.15 ) Net income (loss) per common share - basic $ 0.20 $ 0.08 $ (0.21 ) $ 0.17 Net income (loss) per common share - diluted: Weighted average number of shares outstanding 31,215,598 30,820,442 31,163,859 30,786,527 Additional shares due to assumed conversion of dilutive instruments 186,412 200,484 — 181,313 Adjusted weighted-average number of common shares outstanding 31,402,010 31,020,926 31,163,859 30,967,840 Continuing operations $ 0.21 $ 0.22 $ (0.20 ) $ 0.32 Discontinued operations (0.01 ) (0.14 ) (0.01 ) (0.15 ) Net income (loss) per common share - diluted $ 0.20 $ 0.08 $ (0.21 ) $ 0.17 Potentially dilutive shares excluded from calculation due to anti-dilutive effect (1) 14,885,296 9,002,859 14,885,296 9,002,859 (1) Potentially dilutive shares issuable in connection with the potential conversion of the Company's 4.50% convertible senior notes due 2022 (" 4.50% Convertible Senior Notes"), 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") ( see Note 10 ) 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 | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | NOTE 14 - ACCUMULATED OTHER COMPREHENSIVE INCOME The following table presents the changes in each component of accumulated other comprehensive income for the six months ended June 30, 2018 (in thousands): Net Unrealized Gain on Derivatives Net Unrealized Gain (Loss) on Investment Securities Available-for-Sale Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2018 $ 602 $ 695 $ 1,297 Other comprehensive income (loss) before reclassifications 1,604 98 1,702 Amounts reclassified from accumulated other comprehensive income (1) — 217 217 Balance at June 30, 2018 $ 2,206 $ 1,010 $ 3,216 (1) Amounts reclassified from accumulated other comprehensive income are reclassified to net realized and 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 | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 15 - RELATED PARTY TRANSACTIONS Relationship with C-III and Certain of its Subsidiaries. Resource America is a wholly-owned subsidiary of 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 LLC ("Island Capital"), of which Andrew L. Farkas, the Company's Chairman, 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. Those officers and the Company's other executive officers are also officers of the Company's Manager, Resource America, C-III and/or affiliates of those companies. At June 30, 2018 , C-III indirectly beneficially owned 766,718 , or 2.4% , of the Company's outstanding common shares. The Company has a Management Agreement with the Manager, amended and restated on December 14, 2017, pursuant to which the Manager provides the day-to-day management of the Company's operations and receives substantial fees. For the three and six months ended June 30, 2018 , the Manager earned base management fees of approximately $2.8 million and $5.6 million , respectively. For the three and six months ended June 30, 2017 , the Manager earned base management fees of $2.6 million and $5.2 million , respectively. No incentive management fees were earned for the three and six months ended June 30, 2018 and 2017 . At June 30, 2018 and December 31, 2017 , $938,000 and $1.0 million , respectively, of base management fees were payable by the Company to the Manager. The Manager and its affiliates provide the Company with a Chief Financial Officer and a sufficient number of additional accounting, finance, tax and investor relations professionals. The Company reimburses the Manager's and its affiliates' expenses for (a) the wages, salaries and benefits of the Chief Financial Officer, (b) a portion of the wages, salaries and benefits of accounting, finance, tax and investor relations professionals, in proportion to such personnel's percentage of time allocated to the Company's operations, and (c) personnel principally devoted to the Company's ancillary operating subsidiaries. The Company reimburses out-of-pocket expenses and certain other costs incurred by the Manager and its affiliates that relate directly to the Company's operations. For the three and six months ended June 30, 2018 , the Company reimbursed the Manager $1.9 million and $2.3 million , respectively, for all such compensation and costs. For the three and six months ended June 30, 2017 , the Company reimbursed the Manager $1.1 million and $3.0 million , respectively, for all such compensation and costs. At June 30, 2018 and December 31, 2017 , the Company had payables to Resource America and its subsidiaries pursuant to the Management Agreement aggregating approximately $463,000 and $629,000 , respectively. The Company's base management fee payable and expense reimbursements payable are recorded in management fee payable and accounts payable and other liabilities on the consolidated balance sheets, respectively. At June 30, 2018 , the Company retained equity in seven securitizations that were structured for the Company by the Manager, although three of the securitizations had been substantially liquidated as of June 30, 2018 . Under the Management Agreement, the Manager was not separately compensated by the Company for executing these transactions and is not separately compensated for managing the securitization entities and their assets. Relationship with LCC. LCC, a former subsidiary of Resource America in which the Company owned a minority interest, originated and managed equipment leases and notes on behalf of the Company. In November 2011, the Company, together with LEAF Financial (which is a subsidiary of Resource America) and LCC, entered into a securities purchase agreement with Eos Partners, L.P. and certain of its affiliates. In July 2017, the Company sold its equity interests in LCC and received cash proceeds of $84.3 million and, as a result, LCC is no longer considered a related party. For the three and six months ended June 30, 2018 , the Company did not record any income in respect of its equity interests in LCC. For the three and six months ended June 30, 2017 , the Company recorded income of $122,000 and $288,000 , respectively, in equity in earnings (losses) of unconsolidated entities on its consolidated statements of operations in respect of its equity interests in LCC. Relationship with CVC Credit Partners. In April 2012, ACM, a former subsidiary of Resource America, was sold to CVC Credit Partners, a joint venture entity in which Resource America indirectly owned a 24% interest through August 2017. CVC Credit Partners managed 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 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 was 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 each of the three and six months ended June 30, 2018 , CVC Credit Partners earned subordinated and incentive fees totaling $119,000 . For the three and six months ended June 30, 2017 , CVC Credit Partners earned subordinated and incentive fees totaling $775,000 and $1.3 million , respectively, netted in other revenue on the Company's consolidated statements of operations. The Company did not record any impairment on the related intangible assets of these CLOs during the six months ended June 30, 2018 , and it recorded $177,000 of impairment during the six months ended June 30, 2017 . The CLOs were liquidated in February 2013, January 2016, September 2016 and February 2017. At June 30, 2018 and December 31, 2017 , the Company no longer had any investment in RCAM. 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. In December 2012, the Board authorized the Company to reimburse Resource America for costs incurred related to the Company's life care business, LTCC Funding. In December 2016, the Board authorized a reimbursement of $250,000 for fiscal year 2017, paid quarterly, of which $62,000 and $124,000 was incurred during the three and six months ended June 30, 2017 . At December 31, 2017 , $63,000 of authorized reimbursements were payable by the Company to Resource America and paid in January 2018. The annual reimbursement was not renewed for fiscal year 2018. Relationship with Resource Real Estate, LLC. Resource Real Estate, LLC ("Resource Real Estate"), an indirect wholly-owned subsidiary of Resource America and 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. At June 30, 2018 and December 31, 2017 , the Company had receivables from Resource Real Estate for loan deposits of $285,000 and $185,000 , respectively. Resource Real Estate serves as special servicer for 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; (ii) RCC 2014-CRE2, a $353.9 million securitization that closed in July 2014; (iii) RCC 2015-CRE3, a $346.2 million securitization that closed in February 2015; (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. With respect to each specially serviced mortgage loan, Resource Real Estate receives a special servicing fee, payable monthly and on an asset-by-asset basis, 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. 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 RCC Real Estate in exchange for the Company's preference shares and equity notes in those securitizations. Relationship with C3AM and C-III Commercial Mortgage. C3AM serves as the primary servicer for RCC 2017-CRE5 and XAN 2018-RSO6, a $514.2 million securitization that closed in June 2018, and receives a servicing fee, payable monthly and on an asset-by-asset basis, 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 for each securitization. C3AM serves as special servicer for XAN 2018-RSO6, under which it receives a special servicing fee 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, and C40. During the three and six months ended June 30, 2018 , C3AM earned approximately $67,000 and $102,000 , respectively, in servicing fees. The Company had payables to C3AM for approximately $16,000 at June 30, 2018 . In October 2017, C-III Commercial Mortgage LLC contributed loans to collateralize the C40 securitization, amounting to 10.2% of the total collateral pool value to the securitization. Relationship with RCM Global. In July 2014, the Company formed RCM Global Manager to invest in RCM Global, which held a portfolio of structured product securities that were liquidated in the second quarter of 2018 . For the three and six months ended June 30, 2018 , the Company recorded losses of $6,000 and earnings of $7,000 , respectively, on its investment in RCM Global. For the three and six months ended June 30, 2017 , the Company recorded losses of $166,000 and $170,000 , respectively, on its investment in RCM Global. Earnings and losses on the investment in RCM Global are recorded in equity in earnings (losses) of unconsolidated entities on the consolidated statements of operations. At June 30, 2018 , the Company's residual ownership interest in RCM Global was 63.8% , and the remainder was owned by subsidiaries and current and former employees of Resource America. Relationship with Pelium Capital. The Company holds a partnership interest in Pelium Capital, a specialized credit opportunity fund managed by an indirect wholly-owned subsidiary of C-III that formerly held a portfolio of investment securities. For the three and six months ended June 30, 2018 , the Company recorded earnings of $75,000 and losses of $230,000 , respectively, on its investment in Pelium Capital. For the three and six months ended June 30, 2017 , the Company recorded earnings of $82,000 and losses of $77,000 , respectively, on its investment in Pelium Capital. Earnings and losses on the investment in Pelium Capital are recorded in equity in earnings (losses) of unconsolidated entities on the consolidated statements of operations. During the six months ended June 30, 2018 and 2017 , the Company received proceeds of $10.2 million and $13.6 million as a result of the substantial liquidation of Pelium Capital's investments. The Company's investment balances in Pelium Capital were $154,000 and $10.5 million at June 30, 2018 and December 31, 2017 , respectively. The Company held an 80.2% interest in Pelium Capital at June 30, 2018 . Relationship with Pearlmark Mezzanine Realty Partners IV. In June 2015, the Company committed to invest up to $50.0 million in Pearlmark Mezz. The investment advisor of Pearlmark Mezz is Pearlmark Real Estate LLC ("Pearlmark Manager"), which was 50% owned by Resource America. The Company paid Pearlmark Manager management fees of 1.0% on its unfunded committed capital and 1.5% on its 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 credited any such fees paid by the Company to Pearlmark Manager against the base management fee that the Company paid to the Manager. In May 2017, the Company sold its equity interest in Pearlmark Mezz for proceeds of $16.2 million , and, as a result, ceased to have any further investment in or commitment to Pearlmark Mezz. As a result, Pearlmark Mezz is no longer considered a related party. |
DISTRIBUTIONS
DISTRIBUTIONS | 6 Months Ended |
Jun. 30, 2018 | |
DISTRIBUTIONS [Abstract] | |
DISTRIBUTIONS | NOTE 16 - DISTRIBUTIONS For the quarters ended June 30, 2018 and 2017 , the Company declared and subsequently paid dividends of $0.10 and $0.05 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 are, and will be, determined by the Company's Board, which will also consider the composition of any dividends declared, including the option of paying a portion in cash and the balance in additional shares of common stock. The following tables present dividends declared (on a per share basis) for the six months ended June 30, 2018 and year ended December 31, 2017 (and for the period from January 1, 2018 through March 26, 2018 with respect to the Company's Series B Preferred Stock): Common Stock Date Paid Total Dividend (in thousands) 2018 March 31 April 27 $ 1,584 $ 0.05 June 30 July 27 $ 3,165 $ 0.10 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 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) 2018 March 26 N/A N/A N/A March 26 $ 1,480 $ 0.320830 N/A N/A N/A March 31 N/A N/A N/A N/A N/A N/A April 30 $ 2,588 $ 0.539063 June 30 N/A N/A N/A N/A N/A N/A July 30 $ 2,588 $ 0.539063 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 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 17 - 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 June 30, 2018: Assets: Investment securities available-for-sale $ — $ — $ 318,424 $ 318,424 Derivatives — 2,273 — 2,273 Total assets at fair value $ — $ 2,273 $ 318,424 $ 320,697 Liabilities: Derivatives $ — $ 67 $ — $ 67 Total liabilities at fair value $ — $ 67 $ — $ 67 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 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, except amount in footnote): CMBS ABS Structured Notes Loans Held for Sale Total Balance, January 1, 2018 $ 211,579 $ 158 $ 178 $ 13 $ 211,928 Included in earnings (1) 1,346 (217 ) 55 16 1,200 Purchases 113,783 — — — 113,783 Sales — (48 ) (11 ) (29 ) (88 ) Paydowns (8,522 ) — (222 ) — (8,744 ) Capitalized interest — 7 — — 7 Included in OCI 238 100 — — 338 Balance, June 30, 2018 $ 318,424 $ — $ — $ — $ 318,424 (1) For loans held for sale classified as Level 3 at June 30, 2018 , the Company recorded changes in unrealized gains of $9,000 and $16,000 for the three and six months ended June 30, 2018 , in fair value adjustments on assets held for sale on the consolidated statements of operations. Legacy CRE loans are measured at the lower of cost or market on a nonrecurring basis. To determine fair value of the legacy CRE 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. During the six months ended June 30, 2018 , a loss of $4.7 million was recorded on one legacy CRE loan, which included protective advances of $172,000 , to adjust the loan to the average value of two appraisals, equal to $18.0 million at June 30, 2018 . The loan had a carrying value of $22.5 million at December 31, 2017 . The capitalization rates used in the updated appraisals were 9.25% and 9.75% at June 30, 2018 . 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 , accrued interest receivable , principal paydowns receivable , accrued interest payable and distributions payable approximate their carrying values on the consolidated balance sheets. The fair values of the Company's investment securities, trading are reported in Note 7 . The fair values of the Company's investment securities available-for-sale are reported in Note 8 . The fair values of the Company's loans held for sale are reported in Note 5 . The fair values of the Company's derivative instruments are reported in Note 18 . 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. Fair values of loans with fixed rates are calculated using the net present values of future cash flows, discounted at market rates. The Company's CRE loans have interest rates from 4.48% to 8.26% and 5.06% to 7.63% at June 30, 2018 and December 31, 2017 , respectively. The fair value of the Company's mezzanine loan is measured by discounting the expected cash flows using the future expected coupon rate. The Company's mezzanine loan is discounted at a rate of 10.63% . The fair value of the Company's preferred equity investment is measured by discounting the expected cash flows using the future expected coupon rates. The Company's preferred equity investment is discounted at a rate of 12.78% . 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 11.34% 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 Amount Fair Value Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At June 30, 2018: Assets: CRE whole loans held for investment $ 1,422,127 $ 1,432,072 $ — $ — $ 1,432,072 Legacy CRE loans held for sale $ 18,000 $ 18,000 $ — $ — $ 18,000 CRE mezzanine loan $ 4,700 $ 4,700 $ — $ — $ 4,700 CRE preferred equity investment $ 19,191 $ 19,374 $ — $ — $ 19,374 Liabilities: Senior notes in CRE securitizations $ 632,005 $ 640,427 $ — $ — $ 640,427 Junior subordinated notes $ 51,548 $ 28,870 $ — $ — $ 28,870 Convertible notes $ 219,501 $ 235,385 $ — $ — $ 235,385 Repurchase agreements $ 416,592 $ 418,882 $ — $ — $ 418,882 At December 31, 2017: Assets: CRE whole loans held for investment $ 1,284,822 $ 1,294,664 $ — $ — $ 1,294,664 Legacy CRE 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 notes $ 217,365 $ 235,385 $ — $ — $ 235,385 Repurchase agreements $ 477,917 $ 479,383 $ — $ — $ 479,383 |
MARKET RISK AND DERIVATIVE INST
MARKET RISK AND DERIVATIVE INSTRUMENTS | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
MARKET RISK AND DERIVATIVE INSTRUMENTS | NOTE 18 - 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 and forward contracts. 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. 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 June 30, 2018 and December 31, 2017 , the Company had fifteen and seven , respectively, interest rate swap contracts outstanding whereby the Company paid a weighted average fixed rate of 2.39% and 2.08% , respectively, and received a variable rate equal to one-month LIBOR. The aggregate notional amount of these contracts was $72.8 million and $41.8 million at June 30, 2018 and December 31, 2017 , respectively. The counterparty for the Company's designated interest rate hedge contracts at June 30, 2018 and December 31, 2017 was Wells Fargo. At June 30, 2018 , the estimated fair values of the Company's assets and liabilities related to interest rate swaps were $2.3 million and $67,000 , respectively. At December 31, 2017 , the estimated fair value of the Company's assets related to interest rate swaps was $602,000 . The Company had aggregate unrealized gains of $2.2 million and $602,000 on the interest rate swaps at June 30, 2018 and December 31, 2017 , respectively, which are recorded in accumulated other comprehensive income on the consolidated balance sheets. The Company incurred interest expense of $18,000 during the six months ended June 30, 2017 to fully amortize the remaining accumulated other comprehensive (loss) on a swap agreement that was terminated in April 2016. The Company did not record any interest expense for the three and six months ended June 30, 2018 and the three months ended June 30, 2017 relating to amortization of accumulated other comprehensive income (loss) for terminated swap agreements. The Company had a master netting agreement with Wells Fargo at June 30, 2018 . 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 June 30, 2018 , the Company had centrally cleared interest rate swaps with fair values in an asset and liability position of $2.3 million and $67,000 , respectively. At December 31, 2017 , the Company had centrally cleared interest rate swap contracts with a fair value in an asset position of $602,000 . The Company was 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 were transacted in U.S. dollars. To address this market risk, the Company generally hedged foreign currency-denominated exposures (typically investments in debt instruments, including forecasted principal and interest payments) with foreign currency forward contracts. The Company classified these hedges as fair value hedges, which are hedges that mitigated the risk of changes in the fair values of assets, liabilities, and certain types of firm commitments. The Company recorded 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. As of June 30, 2018 , the Company did not hold any foreign currency forward contracts. 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 periods presented: Fair Value of Derivative Instruments at June 30, 2018 (in thousands) Asset Derivatives Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging (1) $ 52,610 Derivatives, at fair value $ 2,273 Liability Derivatives Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging (1) $ 20,216 Derivatives, at fair value $ 67 Interest rate swap contracts, hedging $ 72,826 Accumulated other comprehensive income $ 2,206 (1) Interest rate swap contracts are accounted for as cash flow hedges. Fair Value of Derivative Instruments at December 31, 2017 (in thousands, except amount in footnotes) 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 is presented 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 . The Effect of Derivative Instruments on the Consolidated Statements of Operations for the Six Months Ended June 30, 2018 (in thousands) Derivatives Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (80 ) (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 Six Months Ended June 30, 2017 (in thousands) Derivatives Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (20 ) Forward contracts - foreign currency, hedging Net realized and unrealized (loss) gain on investment securities available-for-sale and loans and derivatives $ (1,479 ) (1) Negative values indicate a decrease to the associated consolidated statements of operations line items. |
OFFSETTING OF FINANCIAL ASSETS
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | 6 Months Ended |
Jun. 30, 2018 | |
Offsetting [Abstract] | |
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | NOTE 19 - OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES The following table presents a summary of the Company's offsetting of derivative assets (in thousands, except amounts in footnotes): (iv) (i) (ii) (iii) = (i) - (ii) Financial Cash (v) = (iii) - (iv) At June 30, 2018: Derivatives, at fair value $ 2,273 $ — $ 2,273 $ — $ — $ 2,273 At December 31, 2017: Derivatives, at fair value (1) $ 602 $ — $ 602 $ — $ — $ 602 (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, except amounts in footnotes): (iv) (i) (ii) (iii) = (i) - (ii) Financial (1) Cash (v) = (iii) - (iv) At June 30, 2018: Derivatives, at fair value (2) $ 67 $ — $ 67 $ — $ 67 $ — Repurchase agreements and term facilities (3) 416,593 — 416,593 416,593 — — Total $ 416,660 $ — $ 416,660 $ 416,593 $ 67 $ — At December 31, 2017: Derivatives, at fair value $ 76 $ — $ 76 $ — $ — $ 76 Repurchase agreements and term facilities (3) 477,917 — 477,917 477,917 — — Total $ 477,993 $ — $ 477,993 $ 477,917 $ — $ 76 (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 Company posted cash margin of $739,000 related to interest rate swap contracts entered into at June 30, 2018 . (3) The combined fair value of securities and loans pledged against the Company's various repurchase agreements and term facilities was $725.9 million and $816.1 million at June 30, 2018 and December 31, 2017 , 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. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 20 - COMMITMENTS AND CONTINGENCIES The Company may become involved in litigation on various matters due to the nature of the Company's business activities. 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 litigation that would require accrual or disclosure in the consolidated financial statements at June 30, 2018 . 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 Action"), February 2017 (the "Caito Action"), March 2017 (the "Simpson Action"), March 2017 (the "Heckel Action"), May 2017 (the "Schwartz Action") and August 2017 (the "Greff Action"). Plaintiffs in the Schwartz Action and Greff Action made demands on the Company's Board before filing suit, but plaintiffs in the Reaves Action, Caito Action, Simpson Action and Heckel Action 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 Action, Caito Action, Simpson Action and Heckel Action (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 complaints in the Schwartz Action and Greff Action 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 (the "Court") on the following dates by shareholders who declined to make a demand on the Board prior to filing suit: January 2017 (the "Greenberg Action"), January 2017 (the "Canoles Action"), January 2017 (the "DeCaro Action") and April 2017 (the "Gehan Action"). In May 2017, the Court consolidated the Greenberg Action, Canoles Action, DeCaro Action and Gehan Action as the "Federal Demand Futile Actions" and, in July 2017, appointed lead counsel and directed that a consolidated complaint be filed. Following consolidation, the plaintiffs in the Canoles Action and Gehan Action voluntarily dismissed their suits. The consolidated complaint in the Federal Demand Futile Actions, filed in August 2017, alleged claims for breach of fiduciary duty, corporate waste, unjust enrichment and violations of Section 14(a) of the Securities Exchange Act of 1934, as amended. In April 2018, the consolidated complaint in the Federal Demand Futile Actions was dismissed, but such dismissal is currently on appeal. 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 Action"), March 2017 (the "Sherek/Speigel Action") and April 2017 (the "Sebenoler Action"). In May 2017, the Court consolidated the McKinney Action, Sherek/Speigel Action and Sebenoler Action 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 of 1934, as amended. The consolidated complaint in the Federal Demand Refused Actions was dismissed in February 2018 but such dismissal is currently on 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 Action"). 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 complaint in the Canoles Action, as amended in October 2017, asserts a variety of claims, including claims for breach of fiduciary duty, unjust enrichment and corporate waste, which are based on allegations substantially similar to those at issue in the Federal Demand Futile Actions. The Canoles Action 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 Action 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 "Hafkey Action"). 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 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. In April 2018, the Company funded $2.0 million into escrow in connection with the proposed settlement of outstanding litigation. The Company did not have any general litigation reserve at June 30, 2018 , and it had a general litigation reserve of $2.2 million , including estimated legal costs, at December 31, 2017 . PCM is subject to litigation related to claims for repurchases or indemnifications on loans that PCM has sold to third parties. At June 30, 2018 , no such litigation demand was outstanding. At December 31, 2017 , such litigation demands totaled approximately $6.5 million . Reserves for such litigation demands are included in the reserve for mortgage repurchases and indemnifications that totaled $1.7 million and $5.7 million at June 30, 2018 and December 31, 2017 , respectively. The reserves for mortgage repurchases and indemnifications are included in liabilities held for sale on the consolidated balance sheets. Settled Litigation Matters 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 was 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 Agreement"), which received final approval from the Court on August 3, 2018. The Settlement Agreement settled all claims asserted in the action on behalf of the certified class (the "Settlement"), which consisted, 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 Settlement Agreement, which has been filed publicly with the Court, a payment of $9.5 million has been made to settle the litigation. The settlement payment was 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) have been released from all claims that have been or could have been asserted in the case by class members (and certain related parties), excluding one holder of less than 500 shares who opted out of the Settlement. The terms of the Settlement and release of claims are described in greater detail in the Settlement Agreement filed with the Court and the Final Judgment and Order of Dismissal with Prejudice entered by the Court on August 3, 2018. The Settlement Agreement 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. 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 agreed to indemnify the purchaser against realized losses of up to $4.3 million on the Kingsway mezzanine loan until the final maturity date in 2020. At June 30, 2018 , the Company has a contingent liability, reported in accounts payable and other liabilities on its consolidated balance sheets, of $703,000 outstanding as a reserve for probable indemnification losses. No reserve for probable losses was recorded during the three or six months ended June 30, 2018 . PCM is subject to additional claims for repurchases or indemnifications on loans that PCM has sold to investors. At both June 30, 2018 and December 31, 2017 , outstanding demands for indemnification, repurchase or make whole payments totaled $3.3 million . The Company's estimated exposure for such outstanding claims, as well 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 | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE | NOTE 21 - DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE In November 2016, the Company received approval from its Board to execute the Plan to focus its strategy on CRE debt investments. The Plan contemplates disposing of certain legacy CRE loans and exiting underperforming non-core asset classes. Non-real estate businesses identified for sale were the residential mortgage and middle market lending segments as well as the Company's life settlement policy portfolio, or LCF. The Company reclassified the operating results of the residential mortgage and middle market lending segments as discontinued operations and 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. As of June 30, 2018 , the Company has disposed of substantially all of the non-real estate businesses identified for sale. The following table summarizes the operating results of the residential mortgage and middle market lending segments' discontinued operations as reported separately as net loss from discontinued operations, net of tax for the three and six months ended June 30, 2018 and 2017 (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2018 2017 2018 2017 REVENUES Interest income: Loans $ 10 $ 893 $ 580 $ 1,790 Other 9 19 13 32 Total interest income 19 912 593 1,822 Interest expense — — — — Net interest income 19 912 593 1,822 Gain (loss) on sale of residential mortgage loans 13 3,049 (1 ) 6,874 Fee (loss) income (66 ) 1,497 33 3,677 Total revenues (34 ) 5,458 625 12,373 OPERATING EXPENSES Equity compensation — 162 — 221 General and administrative 443 8,922 1,103 16,395 Total operating expenses 443 9,084 1,103 16,616 (477 ) (3,626 ) (478 ) (4,243 ) OTHER INCOME (EXPENSE) Net realized and unrealized gain (loss) on investment securities available-for-sale and loans and derivatives 27 (83 ) 275 (85 ) Fair value adjustments on financial assets held for sale — (475 ) — (417 ) Total other income (expense) 27 (558 ) 275 (502 ) LOSS FROM DISCONTINUED OPERATIONS BEFORE TAXES (450 ) (4,184 ) (203 ) (4,745 ) Income tax expense — — — — NET LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX (450 ) (4,184 ) (203 ) (4,745 ) Loss from disposal of discontinued operations — — — — TOTAL LOSS FROM DISCONTINUED OPERATIONS $ (450 ) $ (4,184 ) $ (203 ) $ (4,745 ) 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 June 30, 2018 and December 31, 2017 (in thousands, except amounts in the footnote): June 30, December 31, ASSETS Restricted cash $ — $ 138 Accrued interest receivable — 67 Loans held for sale (1) 19,978 93,063 Other assets (2) 978 14,450 Total assets held for sale $ 20,956 $ 107,718 LIABILITIES Accounts payable and other liabilities $ 2,421 $ 10,283 Management fee payable — 56 Accrued interest payable — 3 Total liabilities held for sale $ 2,421 $ 10,342 (1) Includes a directly originated middle market loan with a carrying value of $2.0 million at June 30, 2018 and December 31, 2017 . In July 2018 substantially all of the assets of the borrower were sold, resulting in $2.1 million of loan repayments. (2) Includes the Company's investment in life settlement contracts of $5.1 million at December 31, 2017 , which were transferred to held for sale in the fourth quarter of 2016. There were no life settlement contracts remaining at June 30, 2018 . In the first quarter of 2018 , the Company sold its remaining syndicated middle market loans and recognized a $243,000 net realized gain on these sales for the six months ended June 30, 2018 . 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 fair value (in thousands, except quantities and amounts in footnotes): Loan Description Number of Loans Amortized Cost Carrying Value At June 30, 2018: Legacy CRE loans (1) 1 $ 24,614 $ 18,000 Mezzanine loans (2) 1 — — Middle market loans (3) 1 13,837 1,978 Total loans held for sale 3 $ 38,451 $ 19,978 At December 31, 2017: Legacy CRE loans (1) 5 $ 63,783 $ 61,841 Mezzanine loans (2) 1 — — Middle market loans (3) 5 41,199 29,308 Residential mortgage loans (4)(5) 14 1,914 1,914 Total loans held for sale 25 $ 106,896 $ 93,063 (1) Two legacy CRE loans with amortized cost of $28.3 million were reclassified as CRE loans on the consolidated balance sheets at June 30, 2018 as it is now the Company's intent to hold these loans to maturity. (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 liquidations of Resource Real Estate Funding CDO 2006-1, Ltd. in April 2016 and Resource Real Estate Funding CDO 2007-1, Ltd. in November 2016. The mezzanine loan is comprised of two tranches, maturing in November 2018 and September 2021. (3) Includes a directly originated middle market loan with a fair value of $2.0 million at June 30, 2018 and December 31, 2017 . In July 2018 substantially all of the assets of the borrower were sold, resulting in $2.1 million of loan repayments. The loan's fair value was supported by the projected proceeds from the sale of the business at June 30, 2018 and a third party valuation mark prepared at December 31, 2017 . (4) The fair value option was elected for residential mortgage loans held for sale. (5) The Company's residential mortgage loan portfolio was comprised of both agency loans and non-agency jumbo loans. The fair values of the agency loan portfolio were 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 were 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. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 22 - SUBSEQUENT EVENTS The Company has evaluated subsequent events through the filing of this report and determined that there have not been any events that have occurred that would require adjustments to or disclosures in the consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and the accounting policies set forth in Note 2 included in the Company's annual report on Form 10-K for the year ended December 31, 2017 . 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. |
Basis of Presentation | Basis of Presentation All adjustments necessary to present fairly the Company's financial position, results of operations and cash flows have been made. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and all highly liquid investments with original maturities of three months or less at the time of purchase. At June 30, 2018 and December 31, 2017 , approximately $77.4 million and $177.5 million , respectively, of the reported cash balances exceeded the Federal Deposit Insurance Corporation and Securities Investor Protection Corporation deposit insurance limits of $250,000 per respective depository or brokerage institution. However, all of the Company's cash deposits are held at multiple, established financial institutions to minimize credit risk exposure. Restricted cash includes required account balance minimums primarily for the Company's CRE CDO securitizations and cash held in the syndicated corporate loan CDOs. |
Preferred Equity Investment | Preferred Equity Investment Preferred equity investments, which are subordinate to any loans but senior to common equity, depending on the investment's characteristics, may be accounted for as real estate, joint ventures or as mortgage loans. The Company's preferred equity investment is accounted for as a CRE loan held for investment, is carried at cost, net of unamortized loan fees and origination costs, and is included within CRE loans on the Company's consolidated balance sheets. The Company accretes or amortizes any discounts or premiums over the life of the related loan utilizing the effective interest method. Interest and fees are recognized as income subject to recoverability, which is substantiated by obtaining annual appraisals on the underlying property. |
Discontinued Operations | Discontinued Operations The results of operations of a component or a group of components of the Company that either has been disposed of or is classified as held for sale is reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company's operations and financial results. |
Income Taxes | Income Taxes The Company established a full valuation allowance against its net deferred tax assets of approximately $10.4 million at June 30, 2018 as the Company believes it is more likely than not that the deferred tax assets will 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 by the Company's TRSs. |
Recent Accounting Standards | Recent Accounting Standards Accounting Standards Adopted in 2018 In May 2017, the Financial Accounting Standards Board ("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. Adoption did not have a material impact on the Company's consolidated financial statements. In January 2017, the FASB issued guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance provides a screen to determine when an integrated set of assets and activities (a "set") is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, the guidance requires that: (i) to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create an output and (ii) remove the evaluation of whether a market participant could replace missing elements. The guidance also narrows the definition of an output to: the result of inputs and processes applied to those inputs that provide goods or services to customers, investment income (such as dividends or interest), or other revenues. Adoption did not have a material impact on the Company's consolidated financial statements. 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. Adoption did not have a material impact on the Company's consolidated financial statements. In August 2016, the FASB issued guidance to reduce the diversity in practice around the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. The guidance addresses the following eight specific cash flow issues: (i) debt prepayments or extinguishment costs; (ii) contingent consideration payments made after a business combination; (iii) proceeds from the settlement of insurance claims; (iv) proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); (v) settlement of zero-coupon debt instruments or other debt instruments with insignificant coupon rates; (vi) distributions received from equity method investees; (vii) beneficial interests in securitization transactions and (viii) separately identifiable cash flows and application of the predominance principle. Adoption did not have a material impact on the Company's consolidated financial statements. In January 2016, the FASB issued guidance to address certain aspects of the 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. 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 did not have a material impact on its consolidated financial statements. Accounting Standards to be Adopted in Future Periods In June 2018, the FASB issued guidance to simplify the accounting for share-based payment transactions for acquiring goods and services from nonemployees by including these payments in the scope of the guidance for share-based payments to employees. 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 new guidance. 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 new 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 new 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 completed its assessment under the new guidance on revenue recognition from contracts with customers, see "Account Standards Adopted in 2018 ." The Company is currently evaluating the impact of this guidance on leases and the measurement of credit losses on financial instruments and its impact on its consolidated financial statements. In 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 in the process of evaluating the impact of this new guidance. |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2017 consolidated financial statements to conform to the 2018 presentation. |
Policy for Allowance for Loan Loss | CRE loans are evaluated for any credit deterioration by debt asset management and certain finance personnel on at least a quarterly basis. Whole 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) 5.0% 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 as a 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. |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of cash and cash equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash on the consolidated balance sheets to the total amount shown on the consolidated statements of cash flows (dollars in thousands): June 30, 2018 2017 Cash and cash equivalents $ 80,191 $ 102,733 Restricted cash 10,070 1,286 Total cash, cash equivalents and restricted cash shown on the Company's consolidated statements of cash flows $ 90,261 $ 104,019 |
Restrictions on cash and cash equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash on the consolidated balance sheets to the total amount shown on the consolidated statements of cash flows (dollars in thousands): June 30, 2018 2017 Cash and cash equivalents $ 80,191 $ 102,733 Restricted cash 10,070 1,286 Total cash, cash equivalents and restricted cash shown on the Company's consolidated statements of cash flows $ 90,261 $ 104,019 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable interest entity | The following table shows the classification and carrying values of assets and liabilities of the Company's Consolidated VIEs at June 30, 2018 (in thousands): CRE Securitizations Other Total ASSETS Restricted cash $ 8,734 $ 511 $ 9,245 Accrued interest receivable 2,738 — 2,738 CRE loans, pledged as collateral 1,012,900 — 1,012,900 Other assets 267 9 276 Total assets (1) $ 1,024,639 $ 520 $ 1,025,159 LIABILITIES Accounts payable and other liabilities $ 119 $ — $ 119 Accrued interest payable 485 — 485 Borrowings 632,004 — 632,004 Total liabilities $ 632,608 $ — $ 632,608 (1) Assets of each of the Consolidated VIEs may only be used to settle the obligations of each respective VIE. The following table shows the classification, carrying value and maximum exposure to loss with respect to the Company's unconsolidated VIEs at June 30, 2018 (in thousands): Unsecured Junior Subordinated Debentures RCM Global Pelium Capital C40 Prospect Hackensack Total Maximum Exposure to Loss ASSETS Accrued interest receivable $ 21 $ — $ — $ 167 $ — $ 188 $ — CRE loans — — — — 19,374 19,374 $ 19,374 Investment securities available-for-sale (1) — — — 21,113 — 21,113 $ 20,938 Investments in unconsolidated entities 1,548 80 154 — — 1,782 $ 1,782 Total assets 1,569 80 154 21,280 19,374 42,457 LIABILITIES Accrued interest payable 688 — — — — 688 N/A Borrowings 51,548 — — — — 51,548 N/A Total liabilities 52,236 — — — — 52,236 N/A Net asset (liability) $ (50,667 ) $ 80 $ 154 $ 21,280 $ 19,374 $ (9,779 ) N/A (1) The Company's investment in C40 is carried at fair value and its maximum exposure to loss is the amortized cost of the investment. |
SUPPLEMENTAL CASH FLOW INFORM34
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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): For the Six Months Ended June 30, 2018 2017 Non-cash continuing financing activities include the following: Distributions on common stock accrued but not paid $ 3,166 $ 1,567 Distribution on preferred stock accrued but not paid $ 1,725 $ 4,010 |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
LOANS HELD FOR INVESTMENT [Abstract] | |
Summary of loans held for Investments | The following is a summary of the Company's loans (dollars in thousands, except amounts in footnotes): Description Quantity Principal Unamortized (Discount) (1) Amortized Cost Allowance for Loan Losses Carrying (2) Contractual Interest Rates (3) Maturity Dates (4)(5)(6) At June 30, 2018: CRE loans held for investment: Whole loans (7)(8) 78 $ 1,434,572 $ (7,916 ) $ 1,426,656 $ (4,529 ) $ 1,422,127 1M LIBOR plus 2.50% to 1M LIBOR plus 6.25% July 2018 to July 2021 Mezzanine loan 1 4,700 — 4,700 — 4,700 10.00% June 2028 Preferred equity investment (see Note 3) (9)(10) 1 19,374 (183 ) 19,191 — 19,191 11.50% April 2025 Total CRE loans held for investment 1,458,646 (8,099 ) 1,450,547 (4,529 ) 1,446,018 Total loans $ 1,458,646 $ (8,099 ) $ 1,450,547 $ (4,529 ) $ 1,446,018 At December 31, 2017: CRE loans held for investment: Whole loans (7) 70 $ 1,297,164 $ (7,014 ) $ 1,290,150 $ (5,328 ) $ 1,284,822 1M LIBOR plus 3.60% to 1M 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 (11) 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 (1) Amounts include unamortized loan origination fees of $7.6 million and $6.7 million and deferred amendment fees of $482,000 and $268,000 being amortized over the life of the loans at June 30, 2018 and December 31, 2017 , respectively. (2) Substantially all loans are pledged as collateral under various borrowings at June 30, 2018 and December 31, 2017 . (3) LIBOR refers to the London Interbank Offered Rate. (4) Maturity dates exclude contractual extension options, subject to the satisfaction of certain terms, that may be available to the borrowers. (5) Maturity dates exclude one whole loan, with an amortized cost of $7.0 million , in default at June 30, 2018 and December 31, 2017 . (6) Maturity dates exclude one whole loan, with an amortized cost of $11.5 million , in maturity default and performing with respect to debt service due in accordance with a forbearance agreement at June 30, 2018 . The loan was classified as an asset held for sale and in maturity default at December 31, 2017 . (7) Whole loans had $88.7 million and $84.1 million in unfunded loan commitments at June 30, 2018 and December 31, 2017 , 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. (8) At June 30, 2018 , two legacy CRE loans with amortized costs of $28.3 million were reclassified to whole loans from assets held for sale as it is now the Company's intent to hold these loans to maturity. (9) The interest rate on the Company's preferred equity investment pays currently at 8.00% . The remaining interest is deferred until maturity. (10) Beginning in April 2023, the Company has the right to unilaterally force the sale of the underlying property. (11) All syndicated corporate loans are second lien loans and are accounted for under the fair value option. |
Summary of the weighted average life of the commercial real estate loans 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, except amounts in footnotes): Description 2018 2019 2020 and Thereafter Total At June 30, 2018: Whole loans (1)(2) $ — $ 112,694 $ 1,295,446 $ 1,408,140 Mezzanine loan — — 4,700 4,700 Preferred equity investment — — 19,191 19,191 Total CRE loans (1)(2) $ — $ 112,694 $ 1,319,337 $ 1,432,031 Description 2018 2019 2020 and Thereafter Total At December 31, 2017: Whole loans (1) $ — $ 148,622 $ 1,134,528 $ 1,283,150 (1) Excludes one whole loan, with an amortized cost of $7.0 million , in default at June 30, 2018 and December 31, 2017 . (2) Excludes one whole loan, with an amortized cost of $11.5 million , in maturity default and performing with respect to debt service due in accordance with a forbearance agreement at June 30, 2018 . The loan was classified as an asset held for sale and in maturity default at December 31, 2017 . |
FINANCING RECEIVABLES (Tables)
FINANCING RECEIVABLES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 six months ended June 30, 2018 and year ended December 31, 2017 and the allowance for loan and lease losses and recorded investments in loans and leases at June 30, 2018 and December 31, 2017 (in thousands): Six Months Ended June 30, 2018 Year Ended December 31, 2017 Commercial Real Estate 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 period $ 5,328 $ 735 $ 6,063 $ 3,829 $ — $ 465 $ 4,294 Provision for (recovery of) loan and lease losses, net (799 ) — (799 ) 1,499 3 270 1,772 Loans charged-off — — — — (3 ) — (3 ) Allowance for loan and lease losses at end of period $ 4,529 $ 735 $ 5,264 $ 5,328 $ — $ 735 $ 6,063 June 30, 2018 December 31, 2017 Commercial Real Estate 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 $ — $ 735 $ 3,235 Collectively evaluated for impairment $ 2,029 $ — $ 2,029 $ 2,828 $ — $ — $ 2,828 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — $ — Loans and Leases: Amortized cost ending balance: Individually evaluated for impairment $ 30,891 $ 801 $ 31,692 $ 7,000 $ — $ 886 $ 7,886 Collectively evaluated for impairment $ 1,419,656 $ — $ 1,419,656 $ 1,283,150 $ — $ — $ 1,283,150 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 and legacy CRE loans held for sale at the lower of cost or fair value were as follows (in thousands, except amounts in footnotes): Rating 1 Rating 2 Rating 3 (1) Rating 4 Rating 5 (2) Held for Sale (3) Total At June 30, 2018: Whole loans $ 13,000 $ 1,271,509 $ 130,302 $ 4,845 $ 7,000 $ — $ 1,426,656 Mezzanine loan (4) — 4,700 — — — — 4,700 Preferred equity investment (4) — 19,191 — — — — 19,191 Legacy CRE loans held for sale — — — — — 18,000 18,000 $ 13,000 $ 1,295,400 $ 130,302 $ 4,845 $ 7,000 $ 18,000 $ 1,468,547 At December 31, 2017: Whole loans $ 65,589 $ 1,040,883 $ 171,841 $ 4,837 $ 7,000 $ — $ 1,290,150 Legacy CRE loans held for sale — — — — — 61,841 61,841 $ 65,589 $ 1,040,883 $ 171,841 $ 4,837 $ 7,000 $ 61,841 $ 1,351,991 (1) Includes one whole loan, with an amortized cost of $11.5 million , that was in maturity default at June 30, 2018 . The loan is performing with respect to debt service due in accordance with a forbearance agreement at June 30, 2018 . (2) Includes one whole loan, with an amortized cost of $7.0 million , that was in default at June 30, 2018 and December 31, 2017 . (3) Includes one and two legacy CRE loans that were in default with total carrying values of $18.0 million and $22.5 million at June 30, 2018 and December 31, 2017 , respectively. (4) The Company's mezzanine loan and preferred equity investment are evaluated individually for impairment. 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 CRE loan portfolio aging analysis as of the dates indicated at amortized cost and legacy CRE loans held for sale at the lower of cost or fair value (in thousands, except amounts in footnotes): 30-59 Days 60-89 Days Greater (1)(2) Total Past Due (3) Current Total (4) Total Loans > 90 Days and Accruing (2) At June 30, 2018: Whole loans $ — $ — $ 18,516 $ 18,516 $ 1,408,140 $ 1,426,656 $ 11,516 Mezzanine loan — — — — 4,700 4,700 — Preferred equity investment — — — — 19,191 19,191 — Legacy CRE loans held for sale — — 18,000 18,000 — 18,000 — Total loans $ — $ — $ 36,516 $ 36,516 $ 1,432,031 $ 1,468,547 $ 11,516 At December 31, 2017: Whole loans $ — $ — $ 7,000 $ 7,000 $ 1,283,150 $ 1,290,150 $ — Legacy CRE loans held for sale 11,516 — 11,000 22,516 39,325 61,841 — Total loans $ 11,516 $ — $ 18,000 $ 29,516 $ 1,322,475 $ 1,351,991 $ — (1) Includes one whole loan, with an amortized cost of $7.0 million , that was in default at June 30, 2018 and December 31, 2017 . (2) Includes one whole loan, with an amortized cost of $11.5 million , that was in maturity default at June 30, 2018 . The loan is performing with respect to debt service due in accordance with a forbearance agreement at June 30, 2018 . (3) Includes one and two legacy CRE loans held for sale that were in default with total carrying values of $18.0 million and $22.5 million at June 30, 2018 and December 31, 2017 , respectively. (4) Excludes direct financing leases of $66,000 and $151,000 , net of reserves, at June 30, 2018 and December 31, 2017 , respectively. |
Impaired loans | The following tables show impaired loans as of the dates indicated (in thousands): Recorded Balance Unpaid Principal Balance Specific Allowance Average Investment in Impaired Loans Interest Income Recognized At June 30, 2018: Loans without a specific valuation allowance: Whole loans $ — $ — $ — $ — $ — Loans with a specific valuation allowance: Whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ — Total: Whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ — At December 31, 2017: Loans without a specific valuation allowance: Whole loans $ — $ — $ — $ — $ — Loans with a specific valuation allowance: Whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ — Total: Whole loans $ 7,000 $ 7,000 $ (2,500 ) $ 7,000 $ — |
INVESTMENT SECURITIES, TRADING
INVESTMENT SECURITIES, TRADING (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 number of securities): Number of Securities Amortized Cost Unrealized Gains Unrealized Losses Fair Value At June 30, 2018: Structured notes 1 $ 1,000 $ — $ (1,000 ) $ — At December 31, 2017: Structured notes 4 $ 2,891 $ — $ (2,713 ) $ 178 |
INVESTMENT SECURITIES AVAILAB38
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Securities, Available-for-sale [Abstract] | |
Available-for-sale securities | The following table summarizes the Company's investment securities available-for-sale, including those pledged as collateral. As of December 31, 2017 , ABS may include, but are not limited to, the Company's investments in securities backed by syndicated corporate loans and other loan obligations. Investment securities available-for-sale are carried at fair value (in thousands, except amounts in the footnote): Amortized Cost Unrealized Gains Unrealized Losses Fair Value (1) At June 30, 2018: CMBS $ 317,414 $ 2,347 $ (1,337 ) $ 318,424 Total $ 317,414 $ 2,347 $ (1,337 ) $ 318,424 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 (1) At June 30, 2018 and December 31, 2017 , $255.2 million and $169.6 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): June 30, 2018 December 31, 2017 Amortized Cost Fair Value Weighted Average Coupon Amortized Cost Fair Value Weighted Average Coupon Less than one year (1) $ 22,563 $ 22,237 5.32% $ 25,475 $ 25,275 5.55% Greater than one year and less than five years 172,565 173,646 5.04% 126,273 127,104 4.65% Greater than five years and less than ten years 122,286 122,541 3.65% 59,317 59,358 3.53% Total $ 317,414 $ 318,424 4.52% $ 211,065 $ 211,737 4.45% (1) The Company expects that the payoff dates of these CMBS and ABS will either be extended or that the securities will be paid off 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 Losses Number of Fair Unrealized Losses Number of Fair Unrealized Losses Number of At June 30, 2018: CMBS $ 39,979 $ (883 ) 13 $ 4,072 $ (454 ) 5 $ 44,051 $ (1,337 ) 18 Total temporarily impaired securities $ 39,979 $ (883 ) 13 $ 4,072 $ (454 ) 5 $ 44,051 $ (1,337 ) 18 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 |
Summary of investment securities available-for-sale | The following table summarizes the Company's sales of investment securities available-for-sale (in thousands, except positions sold and redeemed): For the Three Months Ended For the Six Months Ended Positions Sold/Redeemed Par Amount Sold/Redeemed Amortized Cost Realized Gain (Loss) (1) Proceeds (2) Positions Sold/Redeemed Par Amount Sold/Redeemed Amortized Cost Realized Gain (Loss) (1) Proceeds (2) June 30, 2018: ABS 0 $ — $ — $ — $ — 2 $ 411 $ 265 $ (217 ) $ 48 CMBS 0 — — — — 0 — — — — Total — $ — $ — $ — $ — 2 $ 411 $ 265 $ (217 ) $ 48 June 30, 2017: ABS 2 $ 9,605 $ 7,475 $ 1,792 $ 7,235 2 $ 9,605 $ 7,475 $ 1,792 $ 7,235 Total 2 $ 9,605 $ 7,475 $ 1,792 $ 7,235 2 $ 9,605 $ 7,475 $ 1,792 $ 7,235 (1) The realized gains for the three and six months ended June 30, 2017 exclude foreign currency exchange losses that were hedged with foreign currency forward contracts. (2) Includes unsettled proceeds of $3.1 million , received in July 2017, from the sale of one ABS during the three and six months ended June 30, 2017 . |
INVESTMENTS IN UNCONSOLIDATED39
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of unconsolidated entities | The following table summarizes the Company's investments in unconsolidated entities at June 30, 2018 and December 31, 2017 and equity in earnings (losses) of unconsolidated entities for the three and six months ended June 30, 2018 and 2017 (in thousands, except percentages and amounts in footnotes): Equity in Earnings (Losses) of Unconsolidated Entities For the Three Months Ended For the Six Months Ended Ownership % at June 30, 2018 June 30, December 31, June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Pelium Capital (1) 80.2% $ 154 $ 10,503 $ 75 $ 82 $ (230 ) $ (77 ) RCM Global 63.8% 80 — (6 ) (166 ) 7 (170 ) RRE VIP Borrower, LLC (2) —% — — — 37 — 37 Pearlmark Mezzanine Realty Partners IV, L.P. (3) —% — — — (193 ) — 165 Investment in LCC Preferred Stock (4) —% — — — 122 — 288 Subtotal 234 10,503 69 (118 ) (223 ) 243 Investment in RCT I and II (5) 3.0% 1,548 1,548 (806 ) (663 ) (1,530 ) (1,300 ) Total $ 1,782 $ 12,051 $ (737 ) $ (781 ) $ (1,753 ) $ (1,057 ) (1) During the six months ended June 30, 2018 and 2017 , the Company received distributions of $10.2 million and $13.6 million , respectively, on its investment in Pelium Capital. (2) The Company sold its investment in RRE VIP Borrower in December 2014. Earnings for the three and six months ended June 30, 2017 are related to insurance premium refunds with respect to the underlying sold properties in the portfolio. (3) The Company sold its investment in Pearlmark Mezzanine Reality Partners IV, L.P. ("Pearlmark Mezz") in May 2017. (4) The Company's investment in LEAF Commercial Capital, Inc. ("LCC") liquidated in July 2017 as a result of the sale of LCC. (5) During the six months ended June 30, 2018 and 2017 , distributions from the trusts are recorded in interest expense on the Company's consolidated statements of operations as the investments are accounted for under the cost method. |
BORROWINGS (Tables)
BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 and amounts in footnotes): Principal Outstanding Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Borrowing Rate Weighted Average Remaining Maturity Value of Collateral At June 30, 2018: RCC 2015-CRE3 Senior Notes $ 16,592 $ 142 $ 16,450 6.07% 13.7 years $ 80,632 RCC 2015-CRE4 Senior Notes 8,644 132 8,512 5.07% 14.1 years 97,827 RCC 2017-CRE5 Senior Notes 217,954 2,918 215,036 3.12% 16.1 years 336,734 XAN 2018-RSO6 Senior Notes 397,452 5,446 392,006 3.19% 17.0 years 514,225 Unsecured junior subordinated debentures 51,548 — 51,548 6.28% 18.2 years — 4.50% Convertible Senior Notes 143,750 15,107 128,643 4.50% 4.1 years — 6.00% Convertible Senior Notes 70,453 425 70,028 6.00% 154 days — 8.00% Convertible Senior Notes 21,182 352 20,830 8.00% 1.5 years — CRE - term repurchase facilities (1) 160,755 1,968 158,787 4.34% 43 days 255,334 Trust certificates - term repurchase facilities (2) 74,134 417 73,717 6.58% 1.6 years 207,901 CMBS - short term repurchase agreements (3) 184,089 — 184,089 3.48% 48 days 262,654 Total $ 1,346,553 $ 26,907 $ 1,319,646 4.07% 9.2 years $ 1,755,307 Principal Outstanding Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Borrowing Rate Weighted Average Remaining Maturity Value of Collateral 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 Trust certificates - term repurchase facilities (2) 76,714 570 76,144 5.97% 2.1 years 214,375 CMBS - short term repurchase agreements (3) 82,647 — 82,647 2.79% 14 days 131,522 CMBS - term repurchase facilities (4) 27,628 — 27,628 3.05% 121 days 38,060 Total $ 1,187,384 $ 23,899 $ 1,163,485 4.00% 7.3 years $ 1,515,510 (1) Principal outstanding includes accrued interest payable of $276,000 and $534,000 at June 30, 2018 and December 31, 2017 , respectively. (2) Principal outstanding includes accrued interest payable of $203,000 and $203,000 at June 30, 2018 and December 31, 2017 , respectively. (3) Principal outstanding includes accrued interest payable of $672,000 and $279,000 at June 30, 2018 and December 31, 2017 , respectively. (4) Principal outstanding includes accrued interest payable of $46,000 at December 31, 2017 . |
Schedule of securitizations | The following table sets forth certain information with respect to the Company's consolidated securitizations at June 30, 2018 (in thousands): Securitization Closing Date Maturity Date End of Designated Principal Reinvestment Period (1) Total Note Paydowns Received from Closing Date through June 30, 2018 RCC 2015-CRE3 February 2015 March 2032 February 2017 $ 265,535 RCC 2015-CRE4 August 2015 August 2032 September 2017 $ 215,091 RCC 2017-CRE5 July 2017 July 2034 July 2020 $ 33,495 XAN 2018-RSO6 June 2018 June 2035 December 2020 $ — (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 were or would be funded outside of the deal structure. |
Repurchase and mortgage finance facilities | The following table sets forth certain information with respect to the Company's repurchase agreements (in thousands, except percentages and amounts in footnotes): June 30, 2018 December 31, 2017 Outstanding Borrowings (1) Value of Collateral Number of Positions as Collateral Weighted Average Interest Rate Outstanding Borrowings (1) Value of Collateral Number of Positions as Collateral Weighted Average Interest Rate CRE - Term Repurchase Facilities Wells Fargo Bank, N.A. (2) $ 92,621 $ 146,705 8 4.09% $ 179,347 $ 268,003 19 3.68% Morgan Stanley Bank, N.A. (3) 67,947 108,629 5 4.68% 112,151 164,122 9 4.05% Barclays Bank PLC (4) (1,782 ) — — —% — — — —% CMBS - Term Repurchase Facilities Wells Fargo Bank, N.A. — — — —% 12,272 14,984 8 2.45% Deutsche Bank AG (7) — — — —% 15,356 23,076 14 3.53% Trust Certificates - Term Repurchase Facilities RSO Repo SPE Trust 2015 (5) 26,624 89,121 2 7.57% 26,548 89,121 2 6.98% RSO Repo SPE Trust 2017 (6) 47,093 118,780 2 6.02% 49,596 125,254 2 5.43% CMBS - Short-Term Repurchase Agreements RBC Capital Markets, LLC 156,643 207,291 22 3.48% 72,131 97,745 6 2.77% JP Morgan Securities LLC 13,780 38,231 5 3.48% 10,516 33,777 2 2.93% Deutsche Bank Securities Inc. (7) 13,667 17,132 11 3.43% — — — —% Total $ 416,593 $ 725,889 $ 477,917 $ 816,082 (1) Outstanding borrowings includes accrued interest payable . (2) Includes $59,000 and $565,000 of deferred debt issuance costs at June 30, 2018 and December 31, 2017 , respectively. (3) Includes $127,000 and $448,000 of deferred debt issuance costs at June 30, 2018 and December 31, 2017 , respectively. (4) Includes $1.8 million of deferred debt issuance costs at June 30, 2018 and no deferred debt issuance costs at December 31, 2017 . (5) Includes $59,000 and $133,000 of deferred debt issuance costs at June 30, 2018 and December 31, 2017 , respectively. (6) Includes $263,000 and $320,000 of deferred debt issuance costs at June 30, 2018 and December 31, 2017 , respectively. (7) In May 2018, the facility's term was rolled from a one -year basis, with extensions at the buyer's option, to a three -month basis. At June 30, 2018 , the facility was reclassified from CMBS - term repurchase facilities to CMBS - short term repurchase agreements. |
Schedule of amount at risk under credit facility | The following table shows information about the amount at risk under the repurchase facilities at June 30, 2018 (in thousands, except percentages): Amount at Risk (1) Weighted Average Remaining Weighted Average At June 30, 2018: CRE - Term Repurchase Facilities Wells Fargo Bank, N.A. $ 54,677 21 days 4.09% Morgan Stanley Bank, N.A. $ 41,066 72 days 4.68% Trust Certificates - Term Repurchase Facilities RSO Repo SPE Trust 2015 $ 62,515 143 days 7.57% RSO Repo SPE Trust 2017 $ 71,438 2.2 years 6.02% CMBS - Short-Term Repurchase Agreements RBC Capital Markets, LLC $ 51,135 48 days 3.48% JP Morgan Securities LLC $ 24,535 46 days 3.48% Deutsche Bank Securities Inc. $ 3,510 56 days 3.43% (1) Equal to the total of the estimated fair value of securities or loans sold and accrued interest receivable , minus the total of the repurchase agreement liabilities and accrued interest payable . |
Schedule of contractual obligations and commitments | Contractual maturity dates of the Company's borrowings' principal outstanding by category and year are presented in the table below at June 30, 2018 (in thousands): Total 2018 2019 2020 2021 2022 and Thereafter At June 30, 2018: CRE securitizations $ 640,642 $ — $ — $ — $ — $ 640,642 Unsecured junior subordinated debentures 51,548 — — — — 51,548 4.50% Convertible Senior Notes 143,750 — — — — 143,750 6.00% Convertible Senior Notes 70,453 70,453 — — — — 8.00% Convertible Senior Notes 21,182 — — 21,182 — — Repurchase and credit facilities 418,978 371,526 — 47,452 — — Total $ 1,346,553 $ 441,979 $ — $ 68,634 $ — $ 835,940 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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) Former Employees Total Unvested shares at January 1, 2018 34,565 419,541 28,967 483,073 Issued 27,032 209,355 — 236,387 Vested (29,947 ) (237,039 ) (23,158 ) (290,144 ) Forfeited — (1,725 ) — (1,725 ) Unvested shares at June 30, 2018 31,650 390,132 5,809 427,591 (1) Non-employees are employees of C-III or Resource America. |
Schedule of restricted stock granted | The following table summarizes restricted common stock grants during the six months ended June 30, 2018 : Date Shares Vesting per Year Vesting Date(s) January 18, 2018 209,355 33.3% January 18, 2019, January 18, 2020 and January 18, 2021 February 1, 2018 3,727 100.0% February 1, 2019 March 8, 2018 16,302 100.0% March 8, 2019 June 1, 2018 3,493 100.0% June 1, 2019 June 6, 2018 3,510 100.0% June 6, 2019 |
Summary of stock option transactions | The following table summarizes the status of the Company's vested stock options at June 30, 2018 : Vested Options Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Vested at January 1, 2018 10,000 $ 25.60 Vested — — Exercised — — Forfeited — — Expired — — Vested at June 30, 2018 10,000 $ 25.60 2.88 $ — |
Summary of share based compensation expense | The components of equity compensation expense for the periods presented are as follows (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2018 2017 2018 2017 Restricted shares granted to non-employees (1) $ 587 $ 675 $ 1,481 $ 1,390 Restricted shares granted to non-employee directors 72 59 145 132 Total equity compensation expense (2) $ 659 $ 734 $ 1,626 $ 1,522 (1) Non-employees are employees of C-III or Resource America. (2) Amounts exclude equity compensation expense for employees of PCM, which is included in net income (loss) from discontinued operations, net of tax on the consolidated statements of operations during the three and six months ended June 30, 2017 . |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of basic and diluted (losses) earnings per share | The following table presents a reconciliation of basic and diluted earnings (losses) per share for the periods presented as follows (in thousands, except share and per share amounts): For the Three Months Ended For the Six Months Ended June 30, June 30, 2018 2017 2018 2017 Net income from continuing operations $ 9,189 $ 12,568 $ 9,052 $ 21,742 Net income allocated to preferred shares (2,587 ) (6,015 ) (7,797 ) (12,029 ) Consideration paid in excess of carrying value of preferred shares — — (7,482 ) — Net loss allocable to non-controlling interest, net of taxes — 95 — 196 Net income (loss) from continuing operations allocable to common shares 6,602 6,648 (6,227 ) 9,909 Net loss from discontinued operations, net of tax (450 ) (4,184 ) (203 ) (4,745 ) Net income (loss) allocable to common shares $ 6,152 $ 2,464 $ (6,430 ) $ 5,164 Net income (loss) per common share - basic: Weighted average number of shares outstanding 31,215,598 30,820,442 31,163,859 30,786,527 Continuing operations $ 0.21 $ 0.22 $ (0.20 ) $ 0.32 Discontinued operations (0.01 ) (0.14 ) (0.01 ) (0.15 ) Net income (loss) per common share - basic $ 0.20 $ 0.08 $ (0.21 ) $ 0.17 Net income (loss) per common share - diluted: Weighted average number of shares outstanding 31,215,598 30,820,442 31,163,859 30,786,527 Additional shares due to assumed conversion of dilutive instruments 186,412 200,484 — 181,313 Adjusted weighted-average number of common shares outstanding 31,402,010 31,020,926 31,163,859 30,967,840 Continuing operations $ 0.21 $ 0.22 $ (0.20 ) $ 0.32 Discontinued operations (0.01 ) (0.14 ) (0.01 ) (0.15 ) Net income (loss) per common share - diluted $ 0.20 $ 0.08 $ (0.21 ) $ 0.17 Potentially dilutive shares excluded from calculation due to anti-dilutive effect (1) 14,885,296 9,002,859 14,885,296 9,002,859 (1) Potentially dilutive shares issuable in connection with the potential conversion of the Company's 4.50% convertible senior notes due 2022 (" 4.50% Convertible Senior Notes"), 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") ( see Note 10 ) were not included in the calculation of diluted net income (loss) per share because the effect would be anti-dilutive. |
ACCUMULATED OTHER COMPREHENSI43
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income | The following table presents the changes in each component of accumulated other comprehensive income for the six months ended June 30, 2018 (in thousands): Net Unrealized Gain on Derivatives Net Unrealized Gain (Loss) on Investment Securities Available-for-Sale Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2018 $ 602 $ 695 $ 1,297 Other comprehensive income (loss) before reclassifications 1,604 98 1,702 Amounts reclassified from accumulated other comprehensive income (1) — 217 217 Balance at June 30, 2018 $ 2,206 $ 1,010 $ 3,216 (1) Amounts reclassified from accumulated other comprehensive income are reclassified to net realized and unrealized gain on investment securities available-for-sale and loans and derivatives on the Company's consolidated statements of operations. |
DISTRIBUTIONS (Tables)
DISTRIBUTIONS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
DISTRIBUTIONS [Abstract] | |
Dividends declared | The following tables present dividends declared (on a per share basis) for the six months ended June 30, 2018 and year ended December 31, 2017 (and for the period from January 1, 2018 through March 26, 2018 with respect to the Company's Series B Preferred Stock): Common Stock Date Paid Total Dividend (in thousands) 2018 March 31 April 27 $ 1,584 $ 0.05 June 30 July 27 $ 3,165 $ 0.10 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 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) 2018 March 26 N/A N/A N/A March 26 $ 1,480 $ 0.320830 N/A N/A N/A March 31 N/A N/A N/A N/A N/A N/A April 30 $ 2,588 $ 0.539063 June 30 N/A N/A N/A N/A N/A N/A July 30 $ 2,588 $ 0.539063 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 |
FAIR VALUE OF FINANCIAL INSTR45
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments 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 June 30, 2018: Assets: Investment securities available-for-sale $ — $ — $ 318,424 $ 318,424 Derivatives — 2,273 — 2,273 Total assets at fair value $ — $ 2,273 $ 318,424 $ 320,697 Liabilities: Derivatives $ — $ 67 $ — $ 67 Total liabilities at fair value $ — $ 67 $ — $ 67 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 |
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, except amount in footnote): CMBS ABS Structured Notes Loans Held for Sale Total Balance, January 1, 2018 $ 211,579 $ 158 $ 178 $ 13 $ 211,928 Included in earnings (1) 1,346 (217 ) 55 16 1,200 Purchases 113,783 — — — 113,783 Sales — (48 ) (11 ) (29 ) (88 ) Paydowns (8,522 ) — (222 ) — (8,744 ) Capitalized interest — 7 — — 7 Included in OCI 238 100 — — 338 Balance, June 30, 2018 $ 318,424 $ — $ — $ — $ 318,424 (1) For loans held for sale classified as Level 3 at June 30, 2018 , the Company recorded changes in unrealized gains of $9,000 and $16,000 for the three and six months ended June 30, 2018 , in fair value adjustments on assets held for sale on the consolidated statements of operations. |
Fair value financial instruments not reported at fair value | The fair values of the Company's remaining financial instruments that are not reported at fair value on the consolidated balance sheets are reported in the following table (in thousands): Fair Value Measurements Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At June 30, 2018: Assets: CRE whole loans held for investment $ 1,422,127 $ 1,432,072 $ — $ — $ 1,432,072 Legacy CRE loans held for sale $ 18,000 $ 18,000 $ — $ — $ 18,000 CRE mezzanine loan $ 4,700 $ 4,700 $ — $ — $ 4,700 CRE preferred equity investment $ 19,191 $ 19,374 $ — $ — $ 19,374 Liabilities: Senior notes in CRE securitizations $ 632,005 $ 640,427 $ — $ — $ 640,427 Junior subordinated notes $ 51,548 $ 28,870 $ — $ — $ 28,870 Convertible notes $ 219,501 $ 235,385 $ — $ — $ 235,385 Repurchase agreements $ 416,592 $ 418,882 $ — $ — $ 418,882 At December 31, 2017: Assets: CRE whole loans held for investment $ 1,284,822 $ 1,294,664 $ — $ — $ 1,294,664 Legacy CRE 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 notes $ 217,365 $ 235,385 $ — $ — $ 235,385 Repurchase agreements $ 477,917 $ 479,383 $ — $ — $ 479,383 |
MARKET RISK AND DERIVATIVE IN46
MARKET RISK AND DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair value of derivative instruments | The following tables present the fair value of the Company's derivative financial instruments as well as their classification on the Company's consolidated balance sheets and on the consolidated statements of operations for the periods presented: Fair Value of Derivative Instruments at June 30, 2018 (in thousands) Asset Derivatives Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging (1) $ 52,610 Derivatives, at fair value $ 2,273 Liability Derivatives Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging (1) $ 20,216 Derivatives, at fair value $ 67 Interest rate swap contracts, hedging $ 72,826 Accumulated other comprehensive income $ 2,206 (1) Interest rate swap contracts are accounted for as cash flow hedges. Fair Value of Derivative Instruments at December 31, 2017 (in thousands, except amount in footnotes) 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 is presented 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 . |
The effect of derivative instruments on the statement of income | The Effect of Derivative Instruments on the Consolidated Statements of Operations for the Six Months Ended June 30, 2018 (in thousands) Derivatives Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (80 ) (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 Six Months Ended June 30, 2017 (in thousands) Derivatives Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (20 ) Forward contracts - foreign currency, hedging Net realized and unrealized (loss) gain on investment securities available-for-sale and loans and derivatives $ (1,479 ) (1) Negative values indicate a decrease to the associated consolidated statements of operations line items. |
OFFSETTING OF FINANCIAL ASSET47
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Offsetting [Abstract] | |
Offsetting financial assets and derivative assets | The following table presents a summary of the Company's offsetting of derivative assets (in thousands, except amounts in footnotes): (iv) (i) (ii) (iii) = (i) - (ii) Financial Cash (v) = (iii) - (iv) At June 30, 2018: Derivatives, at fair value $ 2,273 $ — $ 2,273 $ — $ — $ 2,273 At December 31, 2017: Derivatives, at fair value (1) $ 602 $ — $ 602 $ — $ — $ 602 (1) The Company posted cash margin of $1.9 million related to interest rate swap contracts entered into at December 31, 2017 . |
Offsetting financial liabilities and derivative liabilities | The following table presents a summary of the Company's offsetting of financial liabilities and derivative liabilities (in thousands, except amounts in footnotes): (iv) (i) (ii) (iii) = (i) - (ii) Financial (1) Cash (v) = (iii) - (iv) At June 30, 2018: Derivatives, at fair value (2) $ 67 $ — $ 67 $ — $ 67 $ — Repurchase agreements and term facilities (3) 416,593 — 416,593 416,593 — — Total $ 416,660 $ — $ 416,660 $ 416,593 $ 67 $ — At December 31, 2017: Derivatives, at fair value $ 76 $ — $ 76 $ — $ — $ 76 Repurchase agreements and term facilities (3) 477,917 — 477,917 477,917 — — Total $ 477,993 $ — $ 477,993 $ 477,917 $ — $ 76 (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 Company posted cash margin of $739,000 related to interest rate swap contracts entered into at June 30, 2018 . (3) The combined fair value of securities and loans pledged against the Company's various repurchase agreements and term facilities was $725.9 million and $816.1 million at June 30, 2018 and December 31, 2017 , respectively. |
DISCONTINUED OPERATIONS AND A48
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal groups, including discontinued operations | The following table summarizes the operating results of the residential mortgage and middle market lending segments' discontinued operations as reported separately as net loss from discontinued operations, net of tax for the three and six months ended June 30, 2018 and 2017 (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2018 2017 2018 2017 REVENUES Interest income: Loans $ 10 $ 893 $ 580 $ 1,790 Other 9 19 13 32 Total interest income 19 912 593 1,822 Interest expense — — — — Net interest income 19 912 593 1,822 Gain (loss) on sale of residential mortgage loans 13 3,049 (1 ) 6,874 Fee (loss) income (66 ) 1,497 33 3,677 Total revenues (34 ) 5,458 625 12,373 OPERATING EXPENSES Equity compensation — 162 — 221 General and administrative 443 8,922 1,103 16,395 Total operating expenses 443 9,084 1,103 16,616 (477 ) (3,626 ) (478 ) (4,243 ) OTHER INCOME (EXPENSE) Net realized and unrealized gain (loss) on investment securities available-for-sale and loans and derivatives 27 (83 ) 275 (85 ) Fair value adjustments on financial assets held for sale — (475 ) — (417 ) Total other income (expense) 27 (558 ) 275 (502 ) LOSS FROM DISCONTINUED OPERATIONS BEFORE TAXES (450 ) (4,184 ) (203 ) (4,745 ) Income tax expense — — — — NET LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX (450 ) (4,184 ) (203 ) (4,745 ) Loss from disposal of discontinued operations — — — — TOTAL LOSS FROM DISCONTINUED OPERATIONS $ (450 ) $ (4,184 ) $ (203 ) $ (4,745 ) 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 June 30, 2018 and December 31, 2017 (in thousands, except amounts in the footnote): June 30, December 31, ASSETS Restricted cash $ — $ 138 Accrued interest receivable — 67 Loans held for sale (1) 19,978 93,063 Other assets (2) 978 14,450 Total assets held for sale $ 20,956 $ 107,718 LIABILITIES Accounts payable and other liabilities $ 2,421 $ 10,283 Management fee payable — 56 Accrued interest payable — 3 Total liabilities held for sale $ 2,421 $ 10,342 (1) Includes a directly originated middle market loan with a carrying value of $2.0 million at June 30, 2018 and December 31, 2017 . In July 2018 substantially all of the assets of the borrower were sold, resulting in $2.1 million of loan repayments. (2) Includes the Company's investment in life settlement contracts of $5.1 million at December 31, 2017 , which were transferred to held for sale in the fourth quarter of 2016. There were no life settlement contracts remaining at June 30, 2018 . |
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 fair value (in thousands, except quantities and amounts in footnotes): Loan Description Number of Loans Amortized Cost Carrying Value At June 30, 2018: Legacy CRE loans (1) 1 $ 24,614 $ 18,000 Mezzanine loans (2) 1 — — Middle market loans (3) 1 13,837 1,978 Total loans held for sale 3 $ 38,451 $ 19,978 At December 31, 2017: Legacy CRE loans (1) 5 $ 63,783 $ 61,841 Mezzanine loans (2) 1 — — Middle market loans (3) 5 41,199 29,308 Residential mortgage loans (4)(5) 14 1,914 1,914 Total loans held for sale 25 $ 106,896 $ 93,063 (1) Two legacy CRE loans with amortized cost of $28.3 million were reclassified as CRE loans on the consolidated balance sheets at June 30, 2018 as it is now the Company's intent to hold these loans to maturity. (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 liquidations of Resource Real Estate Funding CDO 2006-1, Ltd. in April 2016 and Resource Real Estate Funding CDO 2007-1, Ltd. in November 2016. The mezzanine loan is comprised of two tranches, maturing in November 2018 and September 2021. (3) Includes a directly originated middle market loan with a fair value of $2.0 million at June 30, 2018 and December 31, 2017 . In July 2018 substantially all of the assets of the borrower were sold, resulting in $2.1 million of loan repayments. The loan's fair value was supported by the projected proceeds from the sale of the business at June 30, 2018 and a third party valuation mark prepared at December 31, 2017 . (4) The fair value option was elected for residential mortgage loans held for sale. (5) The Company's residential mortgage loan portfolio was comprised of both agency loans and non-agency jumbo loans. The fair values of the agency loan portfolio were 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 were 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. |
ORGANIZATION (Details)
ORGANIZATION (Details) | 6 Months Ended | |
Jun. 30, 2018 | Aug. 31, 2017 | |
Pelium Capital | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 80.20% | |
C-III Capital Partners LLC | CVC Capital Partners | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 24.00% | |
RCC Real Estate | Resource Real Estate Funding 2006-1 | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 100.00% | |
RCC Real Estate | Resource Capital Corp. 2015-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 Real Estate | Resource Capital Corp. 2017-CRE5, Ltd. | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 100.00% | |
RCC Real Estate | XAN 2018-RSO6, Ltd. | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 100.00% | |
RCC Commercial | NEW NP, LLC | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 29.60% | |
RCC Commercial II | Apidos Cinco | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 100.00% | |
RCC Commercial II | Whitney CLO I, Ltd. | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 68.30% | |
RCC Commercial III | Apidos CDO I | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 90.00% | |
RSO EquityCo, LLC | Apidos CLO III Ltd. | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 100.00% | |
RSO EquityCo, LLC | Apidos CDO I | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 10.00% | |
RCC Residential, Inc. | Primary Capital Mortgage LLC | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 100.00% | |
RCC Residential, Inc. | RCM Global | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 63.80% | |
RCC Residential, Inc. | Long Term Care Conversion Funding, LLC | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 100.00% | |
Resource TRS, LLC | NEW NP, LLC | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 25.80% | |
Resource TRS, Inc | NEW NP, LLC | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 44.60% | |
Resource TRS, Inc | Resource TRS, LLC | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 100.00% | |
Exantas Capital Corp | C-III Capital Partners LLC | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 2.40% |
SUMMARY OF SIGNIFICANT ACCOUN50
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |||
Accounting Policies [Abstract] | |||||||
Cash balance in excess of federal deposit Insurance limit, amount | [1] | $ 77,400 | $ 177,500 | ||||
Cash and cash equivalents | 80,191 | [1] | 181,490 | [1] | $ 102,733 | ||
Restricted cash | 10,070 | [1] | 22,874 | [1] | 1,286 | ||
Total cash, cash equivalents and restricted cash shown on the Company's consolidated statements of cash flows | 90,261 | $ 204,364 | $ 104,019 | $ 119,425 | |||
Deferred tax assets, gross, tax expense impact | $ 10,400 | ||||||
[1] | June 30, 2018December 31, 2017(1) Assets of consolidated variable interest entities ("VIEs") included in total assets above: Cash and cash equivalents$— $—Restricted cash9,245 20,846Accrued interest receivable2,738 3,347CRE loans, pledged as collateral and net of allowances of $1,480 and $1,3301,012,900 603,110Loans held for sale— 13Principal paydowns receivable— 72,207Other assets276 73Total assets of consolidated VIEs$1,025,159 $699,596 |
VARIABLE INTEREST ENTITIES (Con
VARIABLE INTEREST ENTITIES (Consolidated VIEs) (the Company is the primary beneficiary) (Details) - VIE, Primary Beneficiary | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018USD ($)entity | Jun. 30, 2018USD ($)entity | Dec. 31, 2017entity | |
Variable Interest Entity [Line Items] | |||
Number of consolidated VIEs | entity | 8 | 8 | 7 |
Financial support, amount | $ | $ 0 | $ 0 |
VARIABLE INTEREST ENTITIES (Sch
VARIABLE INTEREST ENTITIES (Schedule of Carrying Value of Assets and Liabilities of Consolidated VIEs) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
ASSETS: | ||
Restricted cash | $ 9,245 | $ 20,846 |
Accrued interest receivable | 2,738 | 3,347 |
CRE loans, pledged as collateral | 1,012,900 | 603,110 |
Other assets | 276 | 73 |
Total assets of consolidated VIEs | 1,025,159 | 699,596 |
LIABILITIES | ||
Accounts payable and other liabilities | 119 | 96 |
Accrued interest payable | 485 | 592 |
Borrowings | 632,004 | 416,655 |
Total liabilities of consolidated VIEs | 632,608 | $ 417,343 |
VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 9,245 | |
Accrued interest receivable | 2,738 | |
CRE loans, pledged as collateral | 1,012,900 | |
Other assets | 276 | |
Total assets of consolidated VIEs | 1,025,159 | |
LIABILITIES | ||
Accounts payable and other liabilities | 119 | |
Accrued interest payable | 485 | |
Borrowings | 632,004 | |
Total liabilities of consolidated VIEs | 632,608 | |
CRE Securitizations | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 8,734 | |
Accrued interest receivable | 2,738 | |
CRE loans, pledged as collateral | 1,012,900 | |
Other assets | 267 | |
Total assets of consolidated VIEs | 1,024,639 | |
LIABILITIES | ||
Accounts payable and other liabilities | 119 | |
Accrued interest payable | 485 | |
Borrowings | 632,004 | |
Total liabilities of consolidated VIEs | 632,608 | |
Other | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 511 | |
Accrued interest receivable | 0 | |
CRE loans, pledged as collateral | 0 | |
Other assets | 9 | |
Total assets of consolidated VIEs | 520 | |
LIABILITIES | ||
Accounts payable and other liabilities | 0 | |
Accrued interest payable | 0 | |
Borrowings | 0 | |
Total liabilities of consolidated VIEs | $ 0 |
VARIABLE INTEREST ENTITIES (Unc
VARIABLE INTEREST ENTITIES (Unconsolidated VIEs) (the Company is not the primary beneficiary, but has a variable interest) (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |||
Mar. 31, 2018 | Oct. 31, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | ||
Variable Interest Entity [Line Items] | |||||
Investments in unconsolidated entities | [1] | $ 1,782,000 | $ 12,051,000 | ||
Borrowings | [2] | 1,319,646,000 | 1,163,485,000 | ||
Pelium Capital | |||||
Variable Interest Entity [Line Items] | |||||
Investments in unconsolidated entities | $ 154,000 | 10,503,000 | |||
Ownership percentage | 80.20% | ||||
Equity method investments | $ 200,000 | $ 10,500,000 | |||
VIE, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Carrying amount of private-label securitization | $ (9,779,000) | ||||
VIE, Not Primary Beneficiary | Investment in RCT I and II | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage in VIE | 100.00% | ||||
Investments in unconsolidated entities | $ 1,500,000 | ||||
VIE, 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 | ||||
VIE, 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 | ||||
VIE, Not Primary Beneficiary | C40 | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage in VIE | 95.00% | ||||
Carrying amount of private-label securitization | $ 705,400,000 | 21,280,000 | |||
VIE, Not Primary Beneficiary | Prospect Hackensack | |||||
Variable Interest Entity [Line Items] | |||||
Carrying amount of private-label securitization | $ 19,374,000 | ||||
Payments to acquire interest in joint venture | $ 19,200,000 | ||||
RCM Global | RCC Residential, Inc. | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage in VIE | 63.80% | ||||
Equity method investments | $ 80,000 | ||||
[1] | June 30, 2018December 31, 2017(1) Assets of consolidated variable interest entities ("VIEs") included in total assets above: Cash and cash equivalents$— $—Restricted cash9,245 20,846Accrued interest receivable2,738 3,347CRE loans, pledged as collateral and net of allowances of $1,480 and $1,3301,012,900 603,110Loans held for sale— 13Principal paydowns receivable— 72,207Other assets276 73Total assets of consolidated VIEs$1,025,159 $699,596 | ||||
[2] | June 30, 2018 December 31, 2017(2) Liabilities of consolidated VIEs included in total liabilities above: Accounts payable and other liabilities$119 $96Accrued interest payable485 592Borrowings632,004 416,655Total liabilities of consolidated VIEs$632,608 $417,343 |
VARIABLE INTEREST ENTITIES (S54
VARIABLE INTEREST ENTITIES (Schedule of Classification, Carrying Value, and Maximum Exposure to Loss of Unconsolidated VIEs) (Details) - VIE, Not Primary Beneficiary - USD ($) $ in Thousands | Jun. 30, 2018 | Oct. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Accrued interest receivable | $ 188 | |
CRE loans | 19,374 | |
Investment securities available-for-sale | 21,113 | |
Investments in unconsolidated entities | 1,782 | |
Total assets | 42,457 | |
Accrued interest payable | 688 | |
Borrowings | 51,548 | |
Total liabilities | 52,236 | |
Net asset (liability) | (9,779) | |
Interest Receivable | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 0 | |
Loans Pledged as Collateral | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 19,374 | |
Available-for-sale Securities | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 20,938 | |
Investments in Unconsolidated Entities | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 1,782 | |
Unsecured Junior Subordinated Debentures | ||
Variable Interest Entity [Line Items] | ||
Accrued interest receivable | 21 | |
CRE loans | 0 | |
Investment securities available-for-sale | 0 | |
Investments in unconsolidated entities | 1,548 | |
Total assets | 1,569 | |
Accrued interest payable | 688 | |
Borrowings | 51,548 | |
Total liabilities | 52,236 | |
Net asset (liability) | (50,667) | |
RCM Global | ||
Variable Interest Entity [Line Items] | ||
Accrued interest receivable | 0 | |
CRE loans | 0 | |
Investment securities available-for-sale | 0 | |
Investments in unconsolidated entities | 80 | |
Total assets | 80 | |
Accrued interest payable | 0 | |
Borrowings | 0 | |
Total liabilities | 0 | |
Net asset (liability) | 80 | |
Pelium Capital | ||
Variable Interest Entity [Line Items] | ||
Accrued interest receivable | 0 | |
CRE loans | 0 | |
Investment securities available-for-sale | 0 | |
Investments in unconsolidated entities | 154 | |
Total assets | 154 | |
Accrued interest payable | 0 | |
Borrowings | 0 | |
Total liabilities | 0 | |
Net asset (liability) | 154 | |
C40 | ||
Variable Interest Entity [Line Items] | ||
Accrued interest receivable | 167 | |
CRE loans | 0 | |
Investment securities available-for-sale | 21,113 | |
Investments in unconsolidated entities | 0 | |
Total assets | 21,280 | |
Accrued interest payable | 0 | |
Borrowings | 0 | |
Total liabilities | 0 | |
Net asset (liability) | 21,280 | $ 705,400 |
Prospect Hackensack | ||
Variable Interest Entity [Line Items] | ||
Accrued interest receivable | 0 | |
CRE loans | 19,374 | |
Investment securities available-for-sale | 0 | |
Investments in unconsolidated entities | 0 | |
Total assets | 19,374 | |
Accrued interest payable | 0 | |
Borrowings | 0 | |
Total liabilities | 0 | |
Net asset (liability) | $ 19,374 |
SUPPLEMENTAL CASH FLOW INFORM55
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - Continuing Operations - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Common Stock | ||
Non-cash continuing financing activities include the following: | ||
Distributions accrued but not paid | $ 3,166 | $ 1,567 |
Preferred Stock | ||
Non-cash continuing financing activities include the following: | ||
Distributions accrued but not paid | $ 1,725 | $ 4,010 |
LOANS (Summary of Loans) (Detai
LOANS (Summary of Loans) (Details) $ in Thousands | Jun. 30, 2018USD ($)loan | Dec. 31, 2017USD ($)loan |
Receivables with Imputed Interest [Line Items] | ||
Unamortized (Discount) Premium, net | $ (8,099) | $ (7,014) |
Allowance for Loan Losses | (4,529) | (5,328) |
Principal, Loans held for sale | 13 | |
Amortized Cost, Loans held for sale | 13 | |
Carrying Value, Loans held for sale | 13 | |
Principal, Total loans | 1,458,646 | 1,297,177 |
Amortized Cost, Total loans | 1,450,547 | 1,290,163 |
Carrying Value, Total loans | 1,446,018 | 1,284,835 |
Commercial Real Estate Loans | ||
Receivables with Imputed Interest [Line Items] | ||
Principal, Loans held for investment | 1,458,646 | 1,297,164 |
Unamortized (Discount) Premium, net | (8,099) | (7,014) |
Amortized Cost, Loans held for investment | 1,450,547 | 1,290,150 |
Allowance for Loan Losses | (4,529) | (5,328) |
Carrying Value, Loans held for investment | 1,446,018 | 1,284,822 |
Loan origination fees | 7,600 | 6,700 |
Deferred amendment fees | $ 482 | $ 268 |
Syndicated Corporate Loans | Syndicated corporate loans | ||
Receivables with Imputed Interest [Line Items] | ||
Quantity | loan | 2 | |
Principal, Loans held for sale | $ 13 | |
Amortized Cost, Loans held for sale | 13 | |
Carrying Value, Loans held for sale | $ 13 | |
CRE whole loans | Commercial Real Estate Loans | ||
Receivables with Imputed Interest [Line Items] | ||
Quantity | loan | 78 | 70 |
Principal, Loans held for investment | $ 1,434,572 | $ 1,297,164 |
Unamortized (Discount) Premium, net | (7,916) | (7,014) |
Amortized Cost, Loans held for investment | 1,426,656 | 1,290,150 |
Allowance for Loan Losses | (4,529) | (5,328) |
Carrying Value, Loans held for investment | 1,422,127 | 1,284,822 |
Loans held for investment, unfunded loan commitments | $ 88,700 | $ 84,100 |
CRE whole loans | Commercial Real Estate Loans | London Interbank Offered Rate (LIBOR) | Minimum | ||
Receivables with Imputed Interest [Line Items] | ||
Contractual Interest Rates | 2.50% | 3.60% |
CRE whole loans | Commercial Real Estate Loans | London Interbank Offered Rate (LIBOR) | Maximum | ||
Receivables with Imputed Interest [Line Items] | ||
Contractual Interest Rates | 6.25% | 6.25% |
Mezzanine loan | Commercial Real Estate Loans | ||
Receivables with Imputed Interest [Line Items] | ||
Quantity | loan | 1 | |
Principal, Loans held for investment | $ 4,700 | |
Unamortized (Discount) Premium, net | 0 | |
Amortized Cost, Loans held for investment | 4,700 | |
Allowance for Loan Losses | 0 | |
Carrying Value, Loans held for investment | $ 4,700 | |
Contractual Interest Rates | 10.00% | |
Preferred equity investment | Commercial Real Estate Loans | ||
Receivables with Imputed Interest [Line Items] | ||
Quantity | loan | 1 | |
Principal, Loans held for investment | $ 19,374 | |
Unamortized (Discount) Premium, net | (183) | |
Amortized Cost, Loans held for investment | 19,191 | |
Allowance for Loan Losses | 0 | |
Carrying Value, Loans held for investment | $ 19,191 | |
Contractual Interest Rates | 11.50% | |
Loans receivable, contracted interest rate | 8.00% | |
Whole Loans in Default | Commercial Real Estate Loans | ||
Receivables with Imputed Interest [Line Items] | ||
Quantity | loan | 1 | 1 |
Amortized Cost, Loans held for investment | $ 7,000 | $ 7,000 |
Whole Loans Classified as Held-for-sale | Commercial Real Estate Loans | ||
Receivables with Imputed Interest [Line Items] | ||
Quantity | loan | 1 | |
Amortized Cost, Loans held for investment | $ 11,500 | |
Whole Loans Reclassified from Held-for-sale | Commercial Real Estate Loans | ||
Receivables with Imputed Interest [Line Items] | ||
Amortized Cost, Loans held for investment | $ 28,300 | |
Number of loans transferred to held-to-maturity | loan | 2 |
LOANS (Commercial Real Estate L
LOANS (Commercial Real Estate Loans, at Amortized Cost) (Details) $ in Thousands | Jun. 30, 2018USD ($)loan | Dec. 31, 2017USD ($)loan |
Commercial Real Estate Loans | ||
Receivables with Imputed Interest [Line Items] | ||
Amortized Cost, Loans held for investment | $ 1,450,547 | $ 1,290,150 |
Whole Loans in Default | Commercial Real Estate Loans | ||
Receivables with Imputed Interest [Line Items] | ||
Amortized Cost, Loans held for investment | $ 7,000 | $ 7,000 |
Number of Loans | loan | 1 | 1 |
Commercial Real Estate Debt Investments | ||
Receivables with Imputed Interest [Line Items] | ||
2,018 | $ 0 | |
2,019 | 112,694 | |
2020 and Thereafter | 1,319,337 | |
Amortized Cost, Loans held for investment | 1,432,031 | |
Commercial Real Estate Debt Investments | CRE whole loans | ||
Receivables with Imputed Interest [Line Items] | ||
2,018 | 0 | $ 0 |
2,019 | 112,694 | 148,622 |
2020 and Thereafter | 1,295,446 | 1,134,528 |
Amortized Cost, Loans held for investment | 1,408,140 | $ 1,283,150 |
Commercial Real Estate Debt Investments | Mezzanine loan | ||
Receivables with Imputed Interest [Line Items] | ||
2,018 | 0 | |
2,019 | 0 | |
2020 and Thereafter | 4,700 | |
Amortized Cost, Loans held for investment | 4,700 | |
Commercial Real Estate Debt Investments | Preferred equity investment | ||
Receivables with Imputed Interest [Line Items] | ||
2,018 | 0 | |
2,019 | 0 | |
2020 and Thereafter | 19,191 | |
Amortized Cost, Loans held for investment | $ 19,191 |
LOANS (Details)
LOANS (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Loans receivable–related party | $ 0 | $ 75,900,000 |
Commercial Real Estate Loans | Southwest Region | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 31.20% | 28.00% |
Commercial Real Estate Loans | Pacific Region | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 24.00% | 24.30% |
Commercial Real Estate Loans | Southeast Region | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 13.10% | 12.50% |
FINANCING RECEIVABLES (Allowanc
FINANCING RECEIVABLES (Allowance for Loan Losses and Recorded Investments in Loans) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Allowance for loan and lease losses: | ||
Allowance for loan and lease losses at beginning of period | $ 6,063 | $ 4,294 |
Provision for (recovery of) loan and lease losses, net | (799) | 1,772 |
Loans charged-off | 0 | (3) |
Allowance for loan and lease losses at end of period | 5,264 | 6,063 |
Allowance for loan and lease losses ending balance: | ||
Individually evaluated for impairment | 3,235 | 3,235 |
Collectively evaluated for impairment | 2,029 | 2,828 |
Loans acquired with deteriorated credit quality | 4,529 | 5,328 |
Loans and Leases: Amortized cost ending balance: | ||
Individually evaluated for impairment | 31,692 | 7,886 |
Collectively evaluated for impairment | 1,419,656 | 1,283,150 |
Receivables Acquired with Deteriorated Credit Quality | ||
Allowance for loan and lease losses ending balance: | ||
Loans acquired with deteriorated credit quality | 0 | 0 |
Loans and Leases: Amortized cost 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 period | 5,328 | 3,829 |
Provision for (recovery of) loan and lease losses, net | (799) | 1,499 |
Loans charged-off | 0 | 0 |
Allowance for loan and lease losses at end of period | 4,529 | 5,328 |
Allowance for loan and lease losses ending balance: | ||
Individually evaluated for impairment | 2,500 | 2,500 |
Collectively evaluated for impairment | 2,029 | 2,828 |
Loans acquired with deteriorated credit quality | 4,529 | 5,328 |
Loans and Leases: Amortized cost ending balance: | ||
Individually evaluated for impairment | 30,891 | 7,000 |
Collectively evaluated for impairment | 1,419,656 | 1,283,150 |
Loans acquired with deteriorated credit quality | 1,468,547 | 1,351,991 |
Commercial Real Estate Loans | Receivables Acquired with Deteriorated Credit Quality | ||
Allowance for loan and lease losses ending balance: | ||
Loans acquired with deteriorated credit quality | 0 | 0 |
Loans and Leases: Amortized cost 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 period | 0 | 0 |
Provision for (recovery of) loan and lease losses, net | 3 | |
Loans charged-off | (3) | |
Allowance for loan and lease losses at end of period | 0 | |
Allowance for loan and lease losses ending balance: | ||
Individually evaluated for impairment | 0 | |
Collectively evaluated for impairment | 0 | |
Loans and Leases: Amortized cost ending balance: | ||
Individually evaluated for impairment | 0 | |
Collectively evaluated for impairment | 0 | |
Syndicated Corporate Loans | Receivables Acquired with Deteriorated Credit Quality | ||
Allowance for loan and lease losses ending balance: | ||
Loans acquired with deteriorated credit quality | 0 | |
Loans and Leases: Amortized cost ending balance: | ||
Loans acquired with deteriorated credit quality | 0 | |
Direct Financing Leases | ||
Allowance for loan and lease losses: | ||
Allowance for loan and lease losses at beginning of period | 735 | 465 |
Provision for (recovery of) loan and lease losses, net | 0 | 270 |
Loans charged-off | 0 | 0 |
Allowance for loan and lease losses at end of period | 735 | 735 |
Allowance for loan and lease losses ending balance: | ||
Individually evaluated for impairment | 735 | 735 |
Collectively evaluated for impairment | 0 | 0 |
Loans and Leases: Amortized cost ending balance: | ||
Individually evaluated for impairment | 801 | 886 |
Collectively evaluated for impairment | 0 | 0 |
Direct Financing Leases | Receivables Acquired with Deteriorated Credit Quality | ||
Allowance for loan and lease losses ending balance: | ||
Loans acquired with deteriorated credit quality | 0 | 0 |
Loans and Leases: Amortized cost ending balance: | ||
Loans acquired with deteriorated credit quality | $ 0 | $ 0 |
FINANCING RECEIVABLES (Credit R
FINANCING RECEIVABLES (Credit Risk Profiles and Allowance For Loan Losses) (Details) $ in Thousands | Jun. 30, 2018USD ($)loan | Dec. 31, 2017USD ($)loan |
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables, held for sale | $ 13 | |
Commercial Real Estate Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | $ 1,468,547 | 1,351,991 |
Commercial Real Estate Loans | Whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | $ 1,426,656 | $ 1,290,150 |
Number of defaulted loans | loan | 1 | 1 |
Recorded investment | $ 7,000 | $ 7,000 |
Commercial Real Estate Loans | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 4,700 | |
Commercial Real Estate Loans | Preferred equity investment | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 19,191 | |
Commercial Real Estate Loans | Legacy CRE whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | $ 18,000 | $ 61,841 |
Number of defaulted loans | loan | 2 | |
Recorded investment | $ 22,500 | |
Commercial Real Estate Loans | Rating 3 | ||
Schedule Of Financing Receivables [Line Items] | ||
Allowance for credit losses, percentage of aggregate par amount of loans | 1.50% | |
Loans and receivables | $ 130,302 | 171,841 |
Commercial Real Estate Loans | Rating 3 | Whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 130,302 | 171,841 |
Commercial Real Estate Loans | Rating 3 | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | |
Commercial Real Estate Loans | Rating 3 | Preferred equity investment | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | |
Commercial Real Estate Loans | Rating 3 | Legacy CRE whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | $ 0 | 0 |
Commercial Real Estate Loans | Rating 4 | ||
Schedule Of Financing Receivables [Line Items] | ||
Allowance for credit losses, percentage of aggregate carrying amount of loans | 5.00% | |
Loans and receivables | $ 4,845 | 4,837 |
Commercial Real Estate Loans | Rating 4 | Whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 4,845 | 4,837 |
Commercial Real Estate Loans | Rating 4 | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | |
Commercial Real Estate Loans | Rating 4 | Preferred equity investment | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | |
Commercial Real Estate Loans | Rating 4 | Legacy CRE whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Commercial Real Estate Loans | Rating 1 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 13,000 | 65,589 |
Commercial Real Estate Loans | Rating 1 | Whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 13,000 | 65,589 |
Commercial Real Estate Loans | Rating 1 | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | |
Commercial Real Estate Loans | Rating 1 | Preferred equity investment | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | |
Commercial Real Estate Loans | Rating 1 | Legacy CRE whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Commercial Real Estate Loans | Rating 2 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 1,295,400 | 1,040,883 |
Commercial Real Estate Loans | Rating 2 | Whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 1,271,509 | 1,040,883 |
Commercial Real Estate Loans | Rating 2 | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 4,700 | |
Commercial Real Estate Loans | Rating 2 | Preferred equity investment | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 19,191 | |
Commercial Real Estate Loans | Rating 2 | Legacy CRE whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Commercial Real Estate Loans | Rating 5 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 7,000 | 7,000 |
Commercial Real Estate Loans | Rating 5 | Whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 7,000 | 7,000 |
Commercial Real Estate Loans | Rating 5 | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | |
Commercial Real Estate Loans | Rating 5 | Preferred equity investment | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | |
Commercial Real Estate Loans | Rating 5 | Legacy CRE whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Commercial Real Estate Loans | Held for Sale | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables, held for sale | 18,000 | 61,841 |
Commercial Real Estate Loans | Held for Sale | Whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables, held for sale | 0 | 0 |
Commercial Real Estate Loans | Held for Sale | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables, held for sale | 0 | |
Commercial Real Estate Loans | Held for Sale | Preferred equity investment | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables, held for sale | 0 | |
Commercial Real Estate Loans | Held for Sale | Legacy CRE whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 24,600 | 63,800 |
Loans and receivables, held for sale | $ 18,000 | $ 61,841 |
FINANCING RECEIVABLES (Details)
FINANCING RECEIVABLES (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018USD ($)loan | Jun. 30, 2018USD ($)loan | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)loan | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($)loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Value of collateral | $ 725,889,000 | $ 725,889,000 | $ 725,889,000 | $ 816,082,000 | |||
Allowance for credit losses | 4,529,000 | 4,529,000 | 4,529,000 | 5,328,000 | |||
Loans charged-off | 0 | 3,000 | |||||
(Recovery of) provision for loan and lease losses, net | 0 | $ 131,000 | (799,000) | $ 1,130,000 | |||
Direct financing leases, net of allowances | [1] | 66,000 | 66,000 | 66,000 | 151,000 | ||
Commercial Real Estate Loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans held for investment, amortized cost | 1,450,547,000 | 1,450,547,000 | 1,450,547,000 | 1,290,150,000 | |||
Loans and receivables | 1,468,547,000 | 1,468,547,000 | 1,468,547,000 | 1,351,991,000 | |||
Allowance for credit losses | $ 4,529,000 | $ 4,529,000 | 4,529,000 | 5,328,000 | |||
Loans charged-off | $ 0 | $ 0 | |||||
Commercial Real Estate Loans | Pacific Region | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Concentration of loan portfolio risk | 24.00% | 24.00% | 24.00% | 24.30% | |||
Commercial Real Estate Loans | Rating 5 | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans and receivables | $ 7,000,000 | $ 7,000,000 | $ 7,000,000 | $ 7,000,000 | |||
Commercial Real Estate Loans | Souteast Region | Retail Site | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans held for investment, amortized cost | 7,000,000 | 7,000,000 | 7,000,000 | 7,000,000 | |||
Value of collateral | $ 4,500,000 | 4,500,000 | 4,500,000 | $ 4,500,000 | |||
Financing receivable, allowance for credit losses | $ 0 | 0 | $ 0 | 0 | |||
Commercial Real Estate Loans | Souteast Region | Rating 5 | Retail Site | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of loans, trigger items | loan | 1 | 1 | 1 | 1 | |||
Commercial Real Estate Loans | Pacific Region | Retail Site | Legacy CRE whole loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of defaulted loans | loan | 1 | 1 | 1 | 1 | |||
Commercial Real Estate Loans | Legacy CRE whole loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans held for investment, amortized cost | $ 28,300,000 | $ 28,300,000 | $ 28,300,000 | ||||
Loans and receivables | $ 18,000,000 | $ 18,000,000 | $ 18,000,000 | $ 61,841,000 | |||
Number of loans transferred to held-to-maturity | loan | 2 | 2 | 2 | ||||
Number of defaulted loans | loan | 2 | ||||||
Recorded investment | $ 22,500,000 | ||||||
Number of loans | loan | 1 | 1 | 1 | ||||
Provision for protective advances | $ 172,000 | ||||||
Commercial Real Estate Loans | Legacy CRE whole loans | Industry Grouping of Retail Stores | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Concentration of loan portfolio risk | 45.80% | ||||||
Commercial Real Estate Loans | Legacy CRE whole loans | Industry Grouping of Hotel | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Concentration of loan portfolio risk | 36.40% | ||||||
Commercial Real Estate Loans | Legacy CRE whole loans | Industry Grouping of Office Buildings | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Concentration of loan portfolio risk | 17.80% | ||||||
Commercial Real Estate Loans | Legacy CRE whole loans | Pacific Region | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Concentration of loan portfolio risk | 82.20% | ||||||
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% | ||||||
Commercial Real Estate Loans | Legacy CRE whole loans | Rating 5 | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans and receivables | $ 0 | $ 0 | 0 | $ 0 | |||
Commercial Real Estate Loans | Legacy CRE whole loans | Held for Sale | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Value of collateral | $ 18,000,000 | $ 18,000,000 | $ 18,000,000 | ||||
Trigger items, number of loans held for sale | loan | 1 | 1 | 1 | ||||
Loans and receivables | $ 24,600,000 | $ 24,600,000 | $ 24,600,000 | 63,800,000 | |||
Allowance for credit losses | 6,600,000 | 6,600,000 | 6,600,000 | $ 1,900,000 | |||
Number of loans, appraisals | loan | 4 | ||||||
Commercial Real Estate Loans | Legacy CRE whole loans | Mountain Region | Office Building | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, significant sales | 12,000,000 | ||||||
Gain on sale of financing receivable | 1,000,000 | 1,000,000 | |||||
Commercial Real Estate Loans | Legacy CRE whole loans | Pacific Region | Hotel | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans and receivables | $ 18,000,000 | $ 18,000,000 | $ 18,000,000 | $ 22,500,000 | |||
Number of loans | loan | 1 | 1 | 1 | ||||
Loans charged-off | $ 4,700,000 | ||||||
Commercial Real Estate Loans | Mezzanine loan | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans held for investment, amortized cost | $ 4,700,000 | $ 4,700,000 | 4,700,000 | ||||
Loans and receivables | 4,700,000 | 4,700,000 | 4,700,000 | ||||
Allowance for credit losses | 0 | 0 | 0 | ||||
Financing receivable, fair value | 0 | 0 | 0 | $ 0 | |||
Commercial Real Estate Loans | Mezzanine loan | Rating 5 | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans and receivables | $ 0 | $ 0 | $ 0 | ||||
Commercial Real Estate Loans | Mezzanine loan | Held for Sale | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Trigger items, number of loans held for sale | loan | 1 | 1 | 1 | 1 | |||
Commercial Real Estate Loans | Legacy CRE whole loans and Mezzanine loans | Held for Sale | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans and receivables | $ 61,800,000 | ||||||
Commercial Real Estate Loans | Whole loans in technical default | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of defaulted loans | loan | 1 | 1 | 1 | ||||
Recorded investment | $ 11,500,000 | $ 11,500,000 | $ 11,500,000 | 11,500,000 | |||
Direct Financing Leases | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans charged-off | 0 | $ 0 | |||||
(Recovery of) provision for loan and lease losses, net | $ 0 | $ 131,000 | $ 0 | $ 270,000 | |||
[1] | June 30, 2018December 31, 2017(1) Assets of consolidated variable interest entities ("VIEs") included in total assets above: Cash and cash equivalents$— $—Restricted cash9,245 20,846Accrued interest receivable2,738 3,347CRE loans, pledged as collateral and net of allowances of $1,480 and $1,3301,012,900 603,110Loans held for sale— 13Principal paydowns receivable— 72,207Other assets276 73Total assets of consolidated VIEs$1,025,159 $699,596 |
FINANCING RECEIVABLES (Loan Por
FINANCING RECEIVABLES (Loan Portfolio Aging Analysis) (Details) $ in Thousands | Jun. 30, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | $ 36,516 | $ 29,516 | |
Current | 1,432,031 | 1,322,475 | |
Total Loans Receivable | 1,468,547 | 1,351,991 | |
Total Loans Greater Than 90 days and Accruing | 11,516 | 0 | |
Direct financing leases, net of allowances | [1] | 66 | 151 |
30-59 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 0 | 11,516 | |
60-89 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 0 | 0 | |
Greater than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 36,516 | 18,000 | |
Commercial Real Estate Loans | Whole loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 18,516 | 7,000 | |
Current | 1,408,140 | 1,283,150 | |
Total Loans Receivable | 1,426,656 | 1,290,150 | |
Total Loans Greater Than 90 days and Accruing | $ 11,516 | $ 0 | |
Number of defaulted loans | loan | 1 | 1 | |
Recorded investment | $ 7,000 | $ 7,000 | |
Commercial Real Estate Loans | Mezzanine loan | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 0 | ||
Current | 4,700 | ||
Total Loans Receivable | 4,700 | ||
Total Loans Greater Than 90 days and Accruing | 0 | ||
Commercial Real Estate Loans | Preferred equity investment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 0 | ||
Current | 19,191 | ||
Total Loans Receivable | 19,191 | ||
Total Loans Greater Than 90 days and Accruing | 0 | ||
Commercial Real Estate Loans | Legacy CRE whole loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 18,000 | 22,516 | |
Current | 0 | 39,325 | |
Total Loans Receivable | 18,000 | 61,841 | |
Total Loans Greater Than 90 days and Accruing | $ 0 | $ 0 | |
Number of defaulted loans | loan | 2 | ||
Recorded investment | $ 22,500 | ||
Commercial Real Estate Loans | Whole loans in technical default | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Number of defaulted loans | loan | 1 | ||
Recorded investment | $ 11,500 | 11,500 | |
Commercial Real Estate Loans | 30-59 Days | Whole loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 0 | 0 | |
Commercial Real Estate Loans | 30-59 Days | Mezzanine loan | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 0 | ||
Commercial Real Estate Loans | 30-59 Days | Preferred equity investment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 0 | ||
Commercial Real Estate Loans | 30-59 Days | Legacy CRE whole loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 0 | 11,516 | |
Commercial Real Estate Loans | 60-89 Days | Whole loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 0 | 0 | |
Commercial Real Estate Loans | 60-89 Days | Mezzanine loan | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 0 | ||
Commercial Real Estate Loans | 60-89 Days | Preferred equity investment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 0 | ||
Commercial Real Estate Loans | 60-89 Days | Legacy CRE whole loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 0 | 0 | |
Commercial Real Estate Loans | Greater than 90 Days | Whole loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 18,516 | 7,000 | |
Commercial Real Estate Loans | Greater than 90 Days | Mezzanine loan | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 0 | ||
Commercial Real Estate Loans | Greater than 90 Days | Preferred equity investment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 0 | ||
Commercial Real Estate Loans | Greater than 90 Days | Legacy CRE whole loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | $ 18,000 | $ 11,000 | |
[1] | June 30, 2018December 31, 2017(1) Assets of consolidated variable interest entities ("VIEs") included in total assets above: Cash and cash equivalents$— $—Restricted cash9,245 20,846Accrued interest receivable2,738 3,347CRE loans, pledged as collateral and net of allowances of $1,480 and $1,3301,012,900 603,110Loans held for sale— 13Principal paydowns receivable— 72,207Other assets276 73Total assets of consolidated VIEs$1,025,159 $699,596 |
FINANCING RECEIVABLES (Impaired
FINANCING RECEIVABLES (Impaired Loans) (Details) - Commercial Real Estate Loans - Whole loans - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, Loans without a specific valuation allowance | $ 0 | $ 0 |
Recorded Balance, Loans with a specific valuation allowance | 7,000 | 7,000 |
Recorded Balance | 7,000 | 7,000 |
Unpaid Principal Balance, Loans without a specific valuation allowance | 0 | 0 |
Unpaid Principal Balance, Loans with a specific valuation allowance | 7,000 | 7,000 |
Unpaid Principal Balance | 7,000 | 7,000 |
Specific Allowance | (2,500) | (2,500) |
Average Investment in Impaired Loans, Loans without a specific valuation allowance | 0 | 0 |
Average Investment in Impaired Loans, Loans with specific valuation allowance | 7,000 | 7,000 |
Average Investment in Impaired Loans | 7,000 | 7,000 |
Interest Income Recognized, Loans without a specific valuation allowance | 0 | 0 |
Interest Income Recognized, Loans with a specific valuation allowance | 0 | 0 |
Interest Income Recognized | $ 0 | $ 0 |
INVESTMENT SECURITIES, TRADIN64
INVESTMENT SECURITIES, TRADING (Schedule of Investment Trading Securities at Fair Value) (Details) - Structured notes $ in Thousands | Jun. 30, 2018USD ($)security | Dec. 31, 2017USD ($)security |
Debt and Equity Securities, FV-NI [Line Items] | ||
Number of Securities | security | 1 | 4 |
Amortized Cost | $ 1,000 | $ 2,891 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1,000) | (2,713) |
Fair Value | $ 0 | $ 178 |
INVESTMENT SECURITIES, TRADIN65
INVESTMENT SECURITIES, TRADING (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($)security | Jun. 30, 2017security | Jun. 30, 2018USD ($)security | Jun. 30, 2017USD ($)security | |
Structured notes | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Trading securities, number sold | security | 0 | 0 | 2 | 1 |
Realized loss on investment security | $ 5 | |||
Realized gain on investment security | $ 9 | |||
Structured notes paid off | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Realized loss on investment security | $ 3 | $ 3 | ||
Number of investment securities with payoff proceeds received | security | 1 | 1 |
INVESTMENT SECURITIES AVAILAB66
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Schedule of Available-for-Sale Securities, Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 317,414 | $ 211,065 |
Unrealized Gains | 2,347 | 1,947 |
Unrealized Losses | (1,337) | (1,275) |
Carrying Value | 318,424 | 211,737 |
Assets pledged as collateral | 255,200 | 169,600 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 317,414 | 210,806 |
Unrealized Gains | 2,347 | 1,947 |
Unrealized Losses | (1,337) | (1,174) |
Carrying Value | $ 318,424 | 211,579 |
ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 259 | |
Unrealized Gains | 0 | |
Unrealized Losses | (101) | |
Carrying Value | $ 158 |
INVESTMENT SECURITIES AVAILAB67
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Estimated Maturities of Available-For-Sale Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Less than one year | $ 22,563 | $ 25,475 |
Greater than one year and less than five years | 172,565 | 126,273 |
Greater than five years and less than ten years | 122,286 | 59,317 |
Total | 317,414 | 211,065 |
Fair Value | ||
Less than one year | 22,237 | 25,275 |
Greater than one year and less than five years | 173,646 | 127,104 |
Greater than five years and less than ten years | 122,541 | 59,358 |
Total | $ 318,424 | $ 211,737 |
Weighted Average Coupon | ||
Less than one year | 5.32% | 5.55% |
Greater than one year and less than five years | 5.04% | 4.65% |
Greater than five years and less than ten years | 3.65% | 3.53% |
Total | 4.52% | 4.45% |
INVESTMENT SECURITIES AVAILAB68
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Gross Unrealized Loss and Fair Value of Securities) (Details) $ in Thousands | Jun. 30, 2018USD ($)security | Dec. 31, 2017USD ($)security |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, less than 12 months | $ 39,979 | $ 49,174 |
Unrealized Losses, less than 12 months | $ (883) | $ (989) |
Number of Securities, less than 12 months | security | 13 | 13 |
Fair Value, more than 12 months | $ 4,072 | $ 1,308 |
Unrealized losses, more than 12 Months | $ (454) | $ (286) |
Number of Securities, more than 12 Months | security | 5 | 4 |
Fair Value, total | $ 44,051 | $ 50,482 |
Unrealized losses, total | $ (1,337) | $ (1,275) |
Number of Securities, total | security | 18 | 17 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, less than 12 months | $ 39,979 | $ 49,016 |
Unrealized Losses, less than 12 months | $ (883) | $ (888) |
Number of Securities, less than 12 months | security | 13 | 12 |
Fair Value, more than 12 months | $ 4,072 | $ 1,308 |
Unrealized losses, more than 12 Months | $ (454) | $ (286) |
Number of Securities, more than 12 Months | security | 5 | 4 |
Fair Value, total | $ 44,051 | $ 50,324 |
Unrealized losses, total | $ (1,337) | $ (1,174) |
Number of Securities, total | security | 18 | 16 |
ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, less than 12 months | $ 158 | |
Unrealized Losses, less than 12 months | $ (101) | |
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 | $ 158 | |
Unrealized losses, total | $ (101) | |
Number of Securities, total | security | 1 |
INVESTMENT SECURITIES AVAILAB69
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Debt Securities, Available-for-sale [Abstract] | ||||
Other than temporary impairment losses | $ 0 | $ 0 | $ 0 | $ 0 |
INVESTMENT SECURITIES AVAILAB70
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Sale of Available-for-Sale Debt Securities) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2017USD ($) | Jun. 30, 2018USD ($)position | Jun. 30, 2017USD ($)position | Jun. 30, 2018USD ($)position | Jun. 30, 2017USD ($)position | |
Debt Securities, Available-for-sale [Line Items] | |||||
Positions Sold/Redeemed | position | 0 | 2 | 2 | 2 | |
Par Amount Sold/Redeemed | $ 0 | $ 9,605 | $ 411 | $ 9,605 | |
Amortized Cost | 0 | 7,475 | 265 | 7,475 | |
Realized Gain (Loss) | 0 | 1,792 | (217) | 1,792 | |
Proceeds | $ 0 | $ 7,235 | $ 48 | 13,588 | |
Proceeds, including amounts not yet received in cash | $ 7,235 | ||||
ABS | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Positions Sold/Redeemed | position | 0 | 2 | 2 | 2 | |
Par Amount Sold/Redeemed | $ 0 | $ 9,605 | $ 411 | $ 9,605 | |
Amortized Cost | 0 | 7,475 | 265 | 7,475 | |
Realized Gain (Loss) | 0 | 1,792 | (217) | 1,792 | |
Proceeds | $ 3,100 | $ 0 | $ 7,235 | $ 48 | $ 7,235 |
Number of positions sold | position | 1 | 1 | |||
CMBS | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Positions Sold/Redeemed | position | 0 | 0 | |||
Par Amount Sold/Redeemed | $ 0 | $ 0 | |||
Amortized Cost | 0 | 0 | |||
Realized Gain (Loss) | 0 | 0 | |||
Proceeds | $ 0 | $ 0 |
INVESTMENTS IN UNCONSOLIDATED71
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Schedule of Unconsolidated Entities) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | ||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||
Investments in unconsolidated entities | [1] | $ 1,782,000 | $ 1,782,000 | $ 12,051,000 | ||
Equity in Earnings (Losses) of Unconsolidated Entities | $ (737,000) | $ (781,000) | (1,753,000) | $ (1,057,000) | ||
Return on investment from investments in unconsolidated entities | $ 0 | 6,292,000 | ||||
Pelium Capital | ||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||
Ownership % at June 30, 2018 | 80.20% | 80.20% | ||||
Investments in unconsolidated entities | $ 154,000 | $ 154,000 | 10,503,000 | |||
Equity in Earnings (Losses) of Unconsolidated Entities | 75,000 | 82,000 | (230,000) | (77,000) | ||
Return on investment from investments in unconsolidated entities | $ 10,200,000 | 13,600,000 | $ 10,200,000 | 13,600,000 | ||
RCM Global | ||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||
Ownership % at June 30, 2018 | 63.80% | 63.80% | ||||
Investments in unconsolidated entities | $ 80,000 | $ 80,000 | 0 | |||
Equity in Earnings (Losses) of Unconsolidated Entities | $ (6,000) | (166,000) | $ 7,000 | (170,000) | ||
RRE VIP Borrower, LLC | ||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||
Ownership % at June 30, 2018 | 0.00% | 0.00% | ||||
Investments in unconsolidated entities | $ 0 | $ 0 | 0 | |||
Equity in Earnings (Losses) of Unconsolidated Entities | $ 0 | 37,000 | $ 0 | 37,000 | ||
Pearlmark Mezzanine Realty Partners IV, L.P. | ||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||
Ownership % at June 30, 2018 | 0.00% | 0.00% | ||||
Investments in unconsolidated entities | $ 0 | $ 0 | 0 | |||
Equity in Earnings (Losses) of Unconsolidated Entities | $ 0 | (193,000) | $ 0 | 165,000 | ||
Investment in LCC Preferred Stock | ||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||
Ownership % at June 30, 2018 | 0.00% | 0.00% | ||||
Investments in unconsolidated entities | $ 0 | $ 0 | 0 | |||
Equity in Earnings (Losses) of Unconsolidated Entities | 0 | 122,000 | 0 | 288,000 | ||
Investments in Unconsolidated Entities | ||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||
Investments in unconsolidated entities | 234,000 | 234,000 | 10,503,000 | |||
Equity in Earnings (Losses) of Unconsolidated Entities | $ 69,000 | (118,000) | $ (223,000) | 243,000 | ||
Investment in RCT I and II | ||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||
Ownership % at June 30, 2018 | 3.00% | 3.00% | ||||
Investments in unconsolidated entities | $ 1,548,000 | $ 1,548,000 | $ 1,548,000 | |||
Equity in Earnings (Losses) of Unconsolidated Entities | $ (806,000) | $ (663,000) | $ (1,530,000) | $ (1,300,000) | ||
[1] | June 30, 2018December 31, 2017(1) Assets of consolidated variable interest entities ("VIEs") included in total assets above: Cash and cash equivalents$— $—Restricted cash9,245 20,846Accrued interest receivable2,738 3,347CRE loans, pledged as collateral and net of allowances of $1,480 and $1,3301,012,900 603,110Loans held for sale— 13Principal paydowns receivable— 72,207Other assets276 73Total assets of consolidated VIEs$1,025,159 $699,596 |
BORROWINGS (Schedule of Debt) (
BORROWINGS (Schedule of Debt) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | ||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 1,346,553 | $ 1,187,384 | |
Unamortized Issuance Costs and Discounts | 26,907 | 23,899 | |
Outstanding Borrowings | $ 1,319,646 | $ 1,163,485 | |
Weighted Average Borrowing Rate | 4.07% | 4.00% | |
Weighted Average Remaining Maturity | 9 years 2 months | 7 years 4 months | |
Value of Collateral | $ 1,755,307 | $ 1,515,510 | |
Accrued interest costs | [1] | 4,736 | 4,387 |
RCC 2015-CRE3 Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 16,592 | 85,788 | |
Unamortized Issuance Costs and Discounts | 142 | 396 | |
Outstanding Borrowings | $ 16,450 | $ 85,392 | |
Weighted Average Borrowing Rate | 6.07% | 4.50% | |
Weighted Average Remaining Maturity | 13 years 8 months | 14 years 2 months 12 days | |
Value of Collateral | $ 80,632 | $ 149,828 | |
RCC 2015-CRE4 Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 8,644 | 90,883 | |
Unamortized Issuance Costs and Discounts | 132 | 407 | |
Outstanding Borrowings | $ 8,512 | $ 90,476 | |
Weighted Average Borrowing Rate | 5.07% | 3.65% | |
Weighted Average Remaining Maturity | 14 years 1 month | 14 years 7 months 6 days | |
Value of Collateral | $ 97,827 | $ 180,066 | |
RCC 2017-CRE5 Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 217,954 | 244,280 | |
Unamortized Issuance Costs and Discounts | 2,918 | 3,493 | |
Outstanding Borrowings | $ 215,036 | $ 240,787 | |
Weighted Average Borrowing Rate | 3.12% | 2.51% | |
Weighted Average Remaining Maturity | 16 years 1 month | 16 years 7 months 6 days | |
Value of Collateral | $ 336,734 | $ 369,534 | |
XAN 2018-RSO6 Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 397,452 | ||
Unamortized Issuance Costs and Discounts | 5,446 | ||
Outstanding Borrowings | $ 392,006 | ||
Weighted Average Borrowing Rate | 3.19% | ||
Weighted Average Remaining Maturity | 17 years | ||
Value of Collateral | $ 514,225 | ||
Unsecured Junior Subordinated Debentures | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 51,548 | 51,548 | |
Unamortized Issuance Costs and Discounts | 0 | 0 | |
Outstanding Borrowings | $ 51,548 | $ 51,548 | |
Weighted Average Borrowing Rate | 6.28% | 5.49% | |
Weighted Average Remaining Maturity | 18 years 2 months | 18 years 8 months 18 days | |
Value of Collateral | $ 0 | $ 0 | |
4.50% Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 143,750 | 143,750 | |
Unamortized Issuance Costs and Discounts | 15,107 | 16,626 | |
Outstanding Borrowings | $ 128,643 | $ 127,124 | |
Weighted Average Borrowing Rate | 4.50% | 4.50% | |
Weighted Average Remaining Maturity | 4 years 1 month | 4 years 7 months 6 days | |
Value of Collateral | $ 0 | $ 0 | |
Interest rate, stated percentage | 4.50% | ||
6.00% Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 70,453 | 70,453 | |
Unamortized Issuance Costs and Discounts | 425 | 928 | |
Outstanding Borrowings | $ 70,028 | $ 69,525 | |
Weighted Average Borrowing Rate | 6.00% | 6.00% | |
Weighted Average Remaining Maturity | 154 days | 335 days | |
Value of Collateral | $ 0 | $ 0 | |
Interest rate, stated percentage | 6.00% | ||
8.00% Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 21,182 | 21,182 | |
Unamortized Issuance Costs and Discounts | 352 | 466 | |
Outstanding Borrowings | $ 20,830 | $ 20,716 | |
Weighted Average Borrowing Rate | 8.00% | 8.00% | |
Weighted Average Remaining Maturity | 1 year 6 months | 2 years | |
Value of Collateral | $ 0 | $ 0 | |
Interest rate, stated percentage | 8.00% | ||
CRE - Term Repurchase Facilities | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 160,755 | 292,511 | |
Unamortized Issuance Costs and Discounts | 1,968 | 1,013 | |
Outstanding Borrowings | $ 158,787 | $ 291,498 | |
Weighted Average Borrowing Rate | 4.34% | 3.82% | |
Weighted Average Remaining Maturity | 43 days | 222 days | |
Value of Collateral | $ 255,334 | $ 432,125 | |
Accrued interest costs | 276 | 534 | |
Trust Certificates Term Repurchase Facility | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 74,134 | 76,714 | |
Unamortized Issuance Costs and Discounts | 417 | 570 | |
Outstanding Borrowings | $ 73,717 | $ 76,144 | |
Weighted Average Borrowing Rate | 6.58% | 5.97% | |
Weighted Average Remaining Maturity | 1 year 7 months | 2 years 1 month | |
Value of Collateral | $ 207,901 | $ 214,375 | |
Accrued interest costs | 203 | 203 | |
CMBS - Short Term Repurchase Agreements | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 184,089 | 82,647 | |
Unamortized Issuance Costs and Discounts | 0 | 0 | |
Outstanding Borrowings | $ 184,089 | $ 82,647 | |
Weighted Average Borrowing Rate | 3.48% | 2.79% | |
Weighted Average Remaining Maturity | 48 days | 14 days | |
Value of Collateral | $ 262,654 | $ 131,522 | |
Accrued interest costs | $ 672 | 279 | |
CMBS - Term Repurchase Facilities | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 27,628 | ||
Unamortized Issuance Costs and Discounts | 0 | ||
Outstanding Borrowings | $ 27,628 | ||
Weighted Average Borrowing Rate | 3.05% | ||
Weighted Average Remaining Maturity | 121 days | ||
Value of Collateral | $ 38,060 | ||
Accrued interest costs | $ 46 | ||
[1] | June 30, 2018 December 31, 2017(2) Liabilities of consolidated VIEs included in total liabilities above: Accounts payable and other liabilities$119 $96Accrued interest payable485 592Borrowings632,004 416,655Total liabilities of consolidated VIEs$632,608 $417,343 |
BORROWINGS (Securitization) (De
BORROWINGS (Securitization) (Details) $ in Thousands | Jun. 30, 2018USD ($) |
RCC 2015-CRE3 | |
Debt Instrument [Line Items] | |
Total Note Paydowns Received from Closing Date through June 30, 2018 | $ 265,535 |
RCC 2015-CRE4 Senior Notes | |
Debt Instrument [Line Items] | |
Total Note Paydowns Received from Closing Date through June 30, 2018 | 215,091 |
RCC 2017-CRE5 Senior Notes | |
Debt Instrument [Line Items] | |
Total Note Paydowns Received from Closing Date through June 30, 2018 | 33,495 |
XAN 2018-RSO6, Ltd. | |
Debt Instrument [Line Items] | |
Total Note Paydowns Received from Closing Date through June 30, 2018 | $ 0 |
BORROWINGS (XAN 2018-RSO6) (Det
BORROWINGS (XAN 2018-RSO6) (Details) - USD ($) | 1 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Securitization amount | $ 416,593,000 | $ 477,917,000 |
Senior Notes | XAN 2018-RSO6, Ltd. | ||
Debt Instrument [Line Items] | ||
Securitization amount | 514,224,525 | |
Senior Notes | XAN 2018-RSO6, Ltd. | Debt Instrument, Class D | ||
Debt Instrument [Line Items] | ||
Securitization amount | $ 44,995,000 | |
Senior Notes | XAN 2018-RSO6, Ltd. | Debt Instrument, Class D | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.50% | |
Senior Notes | XAN 2018-RSO6, Ltd. | Debt Instrument, Class D | London Interbank Offered Rate (LIBOR) | September 2023 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.00% | |
Senior Notes | XAN 2018-RSO6, Ltd. | Debt Instrument, Class E | ||
Debt Instrument [Line Items] | ||
Securitization amount | $ 17,998,000 | |
Senior Notes | XAN 2018-RSO6, Ltd. | Debt Instrument, Class E | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 4.00% | |
Senior Notes | XAN 2018-RSO6, Ltd. | Debt Instrument, Class F | ||
Debt Instrument [Line Items] | ||
Securitization amount | $ 21,854,000 | |
Senior Notes | XAN 2018-RSO6, Ltd. | Debt Instrument, Class F | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 5.00% | |
Senior Notes | XAN 2018-RSO6, Ltd. | Debt Instrument, Class A | ||
Debt Instrument [Line Items] | ||
Securitization amount | $ 290,537,000 | |
Senior Notes | XAN 2018-RSO6, Ltd. | Debt Instrument, Class A | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.83% | |
Senior Notes | XAN 2018-RSO6, Ltd. | Debt Instrument, Class A | London Interbank Offered Rate (LIBOR) | May 2023 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.08% | |
Senior Notes | XAN 2018-RSO6, Ltd. | Debt Instrument, Class B | ||
Debt Instrument [Line Items] | ||
Securitization amount | $ 39,209,000 | |
Senior Notes | XAN 2018-RSO6, Ltd. | Debt Instrument, Class B | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.15% | |
Senior Notes | XAN 2018-RSO6, Ltd. | Debt Instrument, Class B | London Interbank Offered Rate (LIBOR) | July 2023 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.65% | |
Senior Notes | XAN 2018-RSO6, Ltd. | Debt Instrument, Class C | ||
Debt Instrument [Line Items] | ||
Securitization amount | $ 30,211,000 | |
Senior Notes | XAN 2018-RSO6, Ltd. | Debt Instrument, Class C | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.85% | |
Senior Notes | XAN 2018-RSO6, Ltd. | Debt Instrument, Class C | London Interbank Offered Rate (LIBOR) | July 2023 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.35% | |
Senior Notes | XAN 2018-RSO6, Ltd. | Subsidiary of RCC Real Estate | Debt Instrument, Class F | ||
Debt Instrument [Line Items] | ||
Ownership percentage by noncontrolling owners | 100.00% | |
Senior Notes | XAN 2018-RSO6, Ltd. | Subsidiary of RCC Real Estate | Exantas Capital Corp | Debt Instrument, Class D | ||
Debt Instrument [Line Items] | ||
Ownership percentage by noncontrolling owners | 16.70% | |
Senior Notes | XAN 2018-RSO6, Ltd. | Subsidiary of RCC Real Estate | Exantas Capital Corp | Debt Instrument, Class E | ||
Debt Instrument [Line Items] | ||
Ownership percentage by noncontrolling owners | 100.00% | |
Senior Notes | XAN 2018-RSO6, Ltd. | Subsidiary of RCC Real Estate | Preferred Stock | Exantas Capital Corp | ||
Debt Instrument [Line Items] | ||
Ownership percentage by noncontrolling owners | 100.00% | |
Senior Notes | XAN 2018-RSO6, Ltd. | Unrelated Investors | ||
Debt Instrument [Line Items] | ||
Securitization amount | $ 405,000,000 |
BORROWINGS (Repurchase and Cred
BORROWINGS (Repurchase and Credit Facilities) (Details) | Apr. 30, 2018 | May 31, 2018 | Jun. 30, 2018USD ($)loan | Dec. 31, 2017USD ($)loan |
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | $ 416,593,000 | $ 477,917,000 | ||
Value of Collateral | $ 725,889,000 | $ 816,082,000 | ||
Weighted Average Interest Rate | 4.07% | 4.00% | ||
Unamortized Issuance Costs and Discounts | $ 26,907,000 | $ 23,899,000 | ||
Deutsche Bank AG | ||||
Debt Instrument [Line Items] | ||||
Term basis | 1 year | 3 months | ||
RBC Capital Markets, LLC | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | 156,643,000 | 72,131,000 | ||
Value of Collateral | $ 207,291,000 | $ 97,745,000 | ||
Number of Positions as Collateral | loan | 22 | 6 | ||
Weighted Average Interest Rate | 3.48% | 2.77% | ||
JP Morgan Securities LLC | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | $ 13,780,000 | $ 10,516,000 | ||
Value of Collateral | $ 38,231,000 | $ 33,777,000 | ||
Number of Positions as Collateral | loan | 5 | 2 | ||
Weighted Average Interest Rate | 3.48% | 2.93% | ||
Deutsche Bank Securities Inc. | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | $ 13,667,000 | $ 0 | ||
Value of Collateral | $ 17,132,000 | $ 0 | ||
Number of Positions as Collateral | loan | 11 | 0 | ||
Weighted Average Interest Rate | 3.43% | 0.00% | ||
CRE - Term Repurchase Facilities | Wells Fargo Bank, N.A. | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | $ 92,621,000 | $ 179,347,000 | ||
Value of Collateral | $ 146,705,000 | $ 268,003,000 | ||
Number of Positions as Collateral | loan | 8 | 19 | ||
Weighted Average Interest Rate | 4.09% | 3.68% | ||
Unamortized Issuance Costs and Discounts | $ 59,000 | $ 565,000 | ||
CRE - Term Repurchase Facilities | Morgan Stanley Bank, N.A. | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | 67,947,000 | 112,151,000 | ||
Value of Collateral | $ 108,629,000 | $ 164,122,000 | ||
Number of Positions as Collateral | loan | 5 | 9 | ||
Weighted Average Interest Rate | 4.68% | 4.05% | ||
Unamortized Issuance Costs and Discounts | $ 127,000 | $ 448,000 | ||
CRE - Term Repurchase Facilities | Barclays Bank PLC | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | (1,782,000) | 0 | ||
Value of Collateral | $ 0 | $ 0 | ||
Number of Positions as Collateral | loan | 0 | 0 | ||
Weighted Average Interest Rate | 0.00% | 0.00% | ||
Unamortized Issuance Costs and Discounts | $ 1,800,000 | $ 0 | ||
CMBS - Term Repurchase Facilities | Wells Fargo Bank, N.A. | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | 0 | 12,272,000 | ||
Value of Collateral | $ 0 | $ 14,984,000 | ||
Number of Positions as Collateral | loan | 0 | 8 | ||
Weighted Average Interest Rate | 0.00% | 2.45% | ||
CMBS - Term Repurchase Facilities | Deutsche Bank AG | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | $ 0 | $ 15,356,000 | ||
Value of Collateral | $ 0 | $ 23,076,000 | ||
Number of Positions as Collateral | loan | 0 | 14 | ||
Weighted Average Interest Rate | 0.00% | 3.53% | ||
Trust Certificates - Term Repurchase Facilities | RSO Repo SPE Trust 2015 | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | $ 26,624,000 | $ 26,548,000 | ||
Value of Collateral | $ 89,121,000 | $ 89,121,000 | ||
Number of Positions as Collateral | loan | 2 | 2 | ||
Weighted Average Interest Rate | 7.57% | 6.98% | ||
Unamortized Issuance Costs and Discounts | $ 59,000 | $ 133,000 | ||
Trust Certificates - Term Repurchase Facilities | RSO Repo SPE Trust 2017 | ||||
Debt Instrument [Line Items] | ||||
Outstanding Borrowings | 47,093,000 | 49,596,000 | ||
Value of Collateral | $ 118,780,000 | $ 125,254,000 | ||
Number of Positions as Collateral | loan | 2 | 2 | ||
Weighted Average Interest Rate | 6.02% | 5.43% | ||
Unamortized Issuance Costs and Discounts | $ 263,000 | $ 320,000 |
BORROWINGS (Amount at Risk Unde
BORROWINGS (Amount at Risk Under Repurchase Facilities) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 9 years 2 months | 7 years 4 months |
Weighted Average Interest Rate | 4.07% | 4.00% |
RBC Capital Markets, LLC | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 3.48% | 2.77% |
JP Morgan Securities LLC | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 3.48% | 2.93% |
Deutsche Bank Securities Inc. | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 3.43% | 0.00% |
CRE - Term Repurchase Facilities | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 43 days | 222 days |
Weighted Average Interest Rate | 4.34% | 3.82% |
Trust Certificates - Term Repurchase Facilities | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 1 year 7 months | 2 years 1 month |
Weighted Average Interest Rate | 6.58% | 5.97% |
Linked and Non-linked Transactions | RBC Capital Markets, LLC | CMBS - Short-Term Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 51,135 | |
Weighted Average Remaining Maturity | 48 days | |
Weighted Average Interest Rate | 3.48% | |
Linked and Non-linked Transactions | JP Morgan Securities LLC | CMBS - Short-Term Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 24,535 | |
Weighted Average Remaining Maturity | 46 days | |
Weighted Average Interest Rate | 3.48% | |
Linked and Non-linked Transactions | Deutsche Bank Securities Inc. | CMBS - Short-Term Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 3,510 | |
Weighted Average Remaining Maturity | 56 days | |
Weighted Average Interest Rate | 3.43% | |
Linked and Non-linked Transactions | CRE - Term Repurchase Facilities | Wells Fargo Bank, National Association | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 54,677 | |
Weighted Average Remaining Maturity | 21 days | |
Weighted Average Interest Rate | 4.09% | |
Linked and Non-linked Transactions | CRE - Term Repurchase Facilities | Morgan Stanley Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 41,066 | |
Weighted Average Remaining Maturity | 72 days | |
Weighted Average Interest Rate | 4.68% | |
Linked and Non-linked Transactions | Trust Certificates - Term Repurchase Facilities | RSO Repo SPE Trust 2015 | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 62,515 | |
Weighted Average Remaining Maturity | 143 days | |
Weighted Average Interest Rate | 7.57% | |
Linked and Non-linked Transactions | Trust Certificates - Term Repurchase Facilities | RSO Repo SPE Trust 2017 | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 71,438 | |
Weighted Average Remaining Maturity | 2 years 2 months | |
Weighted Average Interest Rate | 6.02% |
BORROWINGS (CRE _ Term Repurcha
BORROWINGS (CRE – Term Repurchase Facilities) (Details) - Subsequent Event - CRE - Term Repurchase Facilities - Wells Fargo Bank, N.A. $ in Millions | 1 Months Ended |
Jul. 31, 2018USD ($)extension | |
Debt Instrument [Line Items] | |
Maximum facility amount | $ | $ 400 |
Number of options to extend | extension | 3 |
Option to extend, term | 1 year |
Minimum | London Interbank Offered Rate (LIBOR) | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.75% |
Maximum | London Interbank Offered Rate (LIBOR) | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.50% |
BORROWINGS (Contractual Commitm
BORROWINGS (Contractual Commitments) (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Debt Instrument [Line Items] | |
Total | $ 1,346,553 |
2,018 | 441,979 |
2,019 | 0 |
2,020 | 68,634 |
2,021 | 0 |
2022 and Thereafter | 835,940 |
CRE securitizations | |
Debt Instrument [Line Items] | |
Total | 640,642 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
2022 and Thereafter | 640,642 |
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 |
Convertible Debt | 4.50% Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Total | 143,750 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
2022 and Thereafter | 143,750 |
Convertible Debt | 6.00% Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Total | 70,453 |
2,018 | 70,453 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
2022 and Thereafter | 0 |
Convertible Debt | 8.00% Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Total | 21,182 |
2,018 | 0 |
2,019 | 0 |
2,020 | 21,182 |
2,021 | 0 |
2022 and Thereafter | 0 |
Repurchase and credit facilities | |
Debt Instrument [Line Items] | |
Total | 418,978 |
2,018 | 371,526 |
2,019 | 0 |
2,020 | 47,452 |
2,021 | 0 |
2022 and Thereafter | $ 0 |
SHARE ISSUANCE AND REPURCHASE (
SHARE ISSUANCE AND REPURCHASE (Details) - USD ($) | Dec. 31, 2017 | Mar. 31, 2018 | Jan. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Mar. 31, 2016 | Aug. 31, 2015 |
Class of Stock [Line Items] | ||||||||||
Stock redeemed during period, value | $ 115,368,000 | |||||||||
Preferred stock redemption premium | $ 0 | $ 0 | 7,482,000 | $ 0 | ||||||
Equity and Debt Securities Repurchase Program | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock repurchase program, authorized amount (up to) | $ 50,000,000 | $ 50,000,000 | ||||||||
Stock repurchase program, remaining authorized repurchase amount | $ 44,900,000 | $ 44,900,000 | ||||||||
8.50% Series A Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, coupon authorized | 8.50% | |||||||||
Series B Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, coupon authorized | 8.25% | 8.25% | 8.25% | |||||||
Stock redeemed or called during period (in shares) | 930,983 | |||||||||
Redemption price per share (in dollars per share) | $ 25 | $ 25 | ||||||||
Stock redeemed during period, value | $ 115,300,000 | |||||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | $ 25 | $ 25 | ||||||
Preferred stock, shares outstanding (in shares) | 4,613,596 | 0 | 0 | 4,613,596 | ||||||
Redeemable Preferred Stock Series A and Series B | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock redeemed during period, value | $ 50,000,000 | |||||||||
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 | ||||||
Preferred stock, shares outstanding (in shares) | 4,800,000 | 4,800,000 | 4,800,000 | 4,800,000 | ||||||
Sale of stock, weighted average price per share (in dollars per share) | $ 25 | |||||||||
Series C Preferred Stock | London Interbank Offered Rate (LIBOR) | ||||||||||
Class of Stock [Line Items] | ||||||||||
Dividend payment rate, variable, basis spread on variable rate | 5.927% | 5.927% |
SHARE-BASED COMPENSATION (Commo
SHARE-BASED COMPENSATION (Common Stock Activity) (Details) - Restricted Stock | 6 Months Ended |
Jun. 30, 2018shares | |
January 18, 2018 | |
Restricted common stock transactions | |
Stock-based compensation (in shares) | 209,355 |
Vesting per Year | 33.30% |
February 1, 2018 | |
Restricted common stock transactions | |
Stock-based compensation (in shares) | 3,727 |
Vesting per Year | 100.00% |
March 8, 2018 | |
Restricted common stock transactions | |
Stock-based compensation (in shares) | 16,302 |
Vesting per Year | 100.00% |
June 1, 2018 | |
Restricted common stock transactions | |
Stock-based compensation (in shares) | 3,493 |
Vesting per Year | 100.00% |
June 6, 2018 | |
Restricted common stock transactions | |
Stock-based compensation (in shares) | 3,510 |
Vesting per Year | 100.00% |
Non-Employee Directors | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 34,565 |
Issued (shares) | 27,032 |
Vested (shares) | (29,947) |
Forfeited (shares) | 0 |
Unvested shares, end of period (in shares) | 31,650 |
Non-Employees | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 419,541 |
Issued (shares) | 209,355 |
Vested (shares) | (237,039) |
Forfeited (shares) | (1,725) |
Unvested shares, end of period (in shares) | 390,132 |
Former Employees | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 28,967 |
Issued (shares) | 0 |
Vested (shares) | (23,158) |
Forfeited (shares) | 0 |
Unvested shares, end of period (in shares) | 5,809 |
Manager and Non Employees | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 483,073 |
Issued (shares) | 236,387 |
Vested (shares) | (290,144) |
Forfeited (shares) | (1,725) |
Unvested shares, end of period (in shares) | 427,591 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)directorshares | Jun. 30, 2017USD ($)directorshares | Dec. 31, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Incentive management fee pursuant to the management agreement | $ 0 | $ 0 | $ 0 | $ 0 | |
Manager pursuant to the Management Agreement | Exantas Capital Corp | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Cash awards, percentage (up to) | 75.00% | ||||
Common stock awards, percentage (at least) | 25.00% | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grants in period (in shares) | shares | 0 | 0 | |||
Contractual term | 10 years | ||||
Non-Employees | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Estimated fair value of shares granted | $ 2,000,000 | $ 2,700,000 | |||
Compensation cost not yet recognized | $ 2,200,000 | $ 2,200,000 | $ 1,400,000 | ||
Weighted average remaining contractual term | 2 years 2 months 15 days | 2 years 8 days | |||
Non-Employee Directors | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of non employee directors granted shares | director | 8 | 8 | |||
Payment award, grant date fair value | $ 255,000 | $ 290,000 |
SHARE-BASED COMPENSATION (Statu
SHARE-BASED COMPENSATION (Status of Vested Stock Options) (Details) - Vested $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | |
Number of Options | |
Outstanding beginning of period (in shares) | shares | 10,000 |
Vested (in shares) | shares | 0 |
Exercised (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Expired (in shares) | shares | 0 |
Outstanding end of period (in shares) | shares | 10,000 |
Weighted Average Exercise Price | |
Outstanding beginning of period (in dollars per share) | $ / shares | $ 25.60 |
Vested (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited (usd per share) | $ / shares | 0 |
Expired (in shares) | $ / shares | 0 |
Outstanding end of period (in dollars per share) | $ / shares | $ 25.60 |
Weighted Average Remaining Contractual Term | 2 years 10 months 16 days |
Aggregate Intrinsic Value | $ | $ 0 |
SHARE-BASED COMPENSATION (Compo
SHARE-BASED COMPENSATION (Components of Equity Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total equity compensation expense | $ 659 | $ 734 | $ 1,626 | $ 1,522 |
Non-Employees | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total equity compensation expense | 587 | 675 | 1,481 | 1,390 |
Non-Employee Directors | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total equity compensation expense | $ 72 | $ 59 | $ 145 | $ 132 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income from continuing operations | $ 9,189 | $ 12,568 | $ 9,052 | $ 21,742 |
Net income allocated to preferred shares | (2,587) | (6,015) | (7,797) | (12,029) |
Consideration paid in excess of carrying value of preferred shares | 0 | 0 | (7,482) | 0 |
Net loss allocable to non-controlling interest, net of taxes | 0 | 95 | 0 | 196 |
Net income (loss) from continuing operations allocable to common shares | 6,602 | 6,648 | (6,227) | 9,909 |
Net loss from discontinued operations, net of tax | (450) | (4,184) | (203) | (4,745) |
NET INCOME (LOSS) ALLOCABLE TO COMMON SHARES | $ 6,152 | $ 2,464 | $ (6,430) | $ 5,164 |
Net income (loss) per common share - basic: | ||||
Weighted average number of shares outstanding (in shares) | 31,215,598 | 30,820,442 | 31,163,859 | 30,786,527 |
Continuing operations (in dollars per share) | $ 0.21 | $ 0.22 | $ (0.20) | $ 0.32 |
Discontinued operations (in dollars per share) | (0.01) | (0.14) | (0.01) | (0.15) |
TOTAL NET INCOME (LOSS) PER COMMON SHARE – BASIC (in dollars per share) | $ 0.20 | $ 0.08 | $ (0.21) | $ 0.17 |
Net income (loss) per common share - diluted: | ||||
Weighted average number of shares outstanding (in shares) | 31,215,598 | 30,820,442 | 31,163,859 | 30,786,527 |
Additional shares due to assumed conversion of dilutive instruments (in shares) | 186,412 | 200,484 | 0 | 181,313 |
Adjusted weighted-average number of common shares outstanding (in shares) | 31,402,010 | 31,020,926 | 31,163,859 | 30,967,840 |
Continuing operations (in dollars per share) | $ 0.21 | $ 0.22 | $ (0.20) | $ 0.32 |
Discontinued operations (in dollars per share) | (0.01) | (0.14) | (0.01) | (0.15) |
TOTAL NET INCOME (LOSS) PER COMMON SHARE – DILUTED (in dollars per share) | $ 0.20 | $ 0.08 | $ (0.21) | $ 0.17 |
6%, 8% and 4.5% Convertible Senior Notes | ||||
Net income (loss) per common share - diluted: | ||||
Antidilutive securities excluded (in shares) | 14,885,296 | 9,002,859 | 14,885,296 | 9,002,859 |
4.50% Convertible Senior Notes | ||||
Net income (loss) per common share - diluted: | ||||
Interest rate, stated percentage | 4.50% | 4.50% | ||
6.00% Convertible Senior Notes | ||||
Net income (loss) per common share - diluted: | ||||
Interest rate, stated percentage | 6.00% | 6.00% | ||
8.00% Convertible Senior Notes | ||||
Net income (loss) per common share - diluted: | ||||
Interest rate, stated percentage | 8.00% | 8.00% |
ACCUMULATED OTHER COMPREHENSI85
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance, January 1, 2018 | $ 671,476 |
Other comprehensive income (loss) before reclassifications | 1,702 |
Amounts reclassified from accumulated other comprehensive income | 217 |
Balance, June 30, 2018 | 555,887 |
Net Unrealized Gain on Derivatives | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance, January 1, 2018 | 602 |
Other comprehensive income (loss) before reclassifications | 1,604 |
Amounts reclassified from accumulated other comprehensive income | 0 |
Balance, June 30, 2018 | 2,206 |
Net Unrealized Gain (Loss) on Investment Securities Available-for-Sale | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance, January 1, 2018 | 695 |
Other comprehensive income (loss) before reclassifications | 98 |
Amounts reclassified from accumulated other comprehensive income | 217 |
Balance, June 30, 2018 | 1,010 |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance, January 1, 2018 | 1,297 |
Balance, June 30, 2018 | $ 3,216 |
RELATED PARTY TRANSACTIONS (Rel
RELATED PARTY TRANSACTIONS (Relationship with C-III and Certain of their Subsidiaries) (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($)transactionshares | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)transactionshares | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Related Party Transaction [Line Items] | |||||
Base management fees paid by the Company | $ 2,812,000 | $ 2,638,000 | $ 5,625,000 | $ 5,318,000 | |
General and administrative | $ 2,547,000 | 3,580,000 | $ 5,607,000 | 7,443,000 | |
C3AM | Exantas 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% | 2.40% | |||
Manager pursuant to the Management Agreement | Exantas Capital Corp | |||||
Related Party Transaction [Line Items] | |||||
Base management fees paid by the Company | $ 2,800,000 | 2,600,000 | $ 5,600,000 | 5,200,000 | |
Incentive management fees | 0 | 0 | 0 | 0 | |
Total indebtedness | 938,000 | 938,000 | $ 1,000,000 | ||
General and administrative | $ 1,900,000 | $ 1,100,000 | $ 2,300,000 | $ 3,000,000 | |
Number of executed CDO transactions | transaction | 7 | 7 | |||
Number of liquidated CDO transactions | transaction | 3 | 3 | |||
Resource Real Estate | Exantas Capital Corp | |||||
Related Party Transaction [Line Items] | |||||
Total indebtedness | $ 463,000 | $ 463,000 | $ 629,000 |
RELATED PARTY TRANSACTIONS (R87
RELATED PARTY TRANSACTIONS (Relationship with LEAF Financial) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Related Party Transaction [Line Items] | |||||
Income from equity method investments | $ (737,000) | $ (781,000) | $ (1,753,000) | $ (1,057,000) | |
VIE, 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] | |||||
Income from equity method investments | $ 0 | $ 122,000 | $ 0 | $ 288,000 |
RELATED PARTY TRANSACTIONS (R88
RELATED PARTY TRANSACTIONS (Relationship with CVC Credit Partners, LLC) (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2011USD ($) | Jun. 30, 2018USD ($)entity | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)entity | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Related Party Transaction [Line Items] | ||||||
Number of CLO issuers | entity | 5 | 5 | ||||
Investment in RCAM, Investment Two | ||||||
Related Party Transaction [Line Items] | ||||||
Impairment of intangible assets | $ 0 | $ 177,000 | ||||
Management Contracts | ||||||
Related Party Transaction [Line Items] | ||||||
Intangible assets | $ 0 | $ 0 | $ 0 | |||
CVC Capital Partners | Apidos Capital Management LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of subordinated fees the company is entitled to collect | 10.00% | 10.00% | ||||
Percentage of incentive fees the company is entitled to collect | 50.00% | 50.00% | ||||
Subordinated fees received | $ 119,000 | $ 775,000 | $ 119,000 | $ 1,300,000 | ||
Churchill Pacific Asset Management LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Assets under management, carrying amount | $ 1,900,000,000 | $ 1,900,000,000 | ||||
Churchill Pacific Asset Management LLC | Exantas Capital Corp | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership percentage | 100.00% | |||||
Purchase price of acquired entity paid by acquiring entity | $ 22,500,000 |
RELATED PARTY TRANSACTIONS (R89
RELATED PARTY TRANSACTIONS (Relationship with LTCC Funding) (Details) - Manager pursuant to the Management Agreement - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||||
Expense reimbursements, annual fee | $ 250,000 | $ 62,000 | $ 124,000 | |
Exantas Capital Corp | ||||
Related Party Transaction [Line Items] | ||||
Oversight fee, management fees related party | $ 63,000 |
RELATED PARTY TRANSACTIONS (R90
RELATED PARTY TRANSACTIONS (Relationship with Resource Real Estate) (Details) $ in Thousands | 1 Months Ended | ||||||
Dec. 31, 2013USD ($) | Jun. 30, 2018USD ($)transaction | Dec. 31, 2017USD ($) | Jul. 31, 2017USD ($) | Aug. 31, 2015USD ($) | Feb. 28, 2015USD ($) | Jul. 30, 2014USD ($) | |
Related Party Transaction [Line Items] | |||||||
Number of real estate securitization transactions | transaction | 5 | ||||||
RCC CRE Notes 2013 Senior Notes | |||||||
Related Party Transaction [Line Items] | |||||||
Closing transaction amount | $ 307,800 | ||||||
Servicing fee rate | 0.25% | ||||||
RCC 2014-CRE2 Senior Notes | |||||||
Related Party Transaction [Line Items] | |||||||
Closing transaction amount | $ 353,900 | ||||||
RCC 2015-CRE3 | |||||||
Related Party Transaction [Line Items] | |||||||
Closing transaction amount | $ 346,200 | ||||||
Resource Capital Corp. 2015-CRE4, Ltd. | |||||||
Related Party Transaction [Line Items] | |||||||
Closing transaction amount | $ 312,900 | ||||||
RCC 2017-CRE5 | |||||||
Related Party Transaction [Line Items] | |||||||
Closing transaction amount | $ 376,700 | ||||||
Commercial Real Estate Debt Investments | Resource Real Estate | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, due from related party | $ 285 | $ 185 |
RELATED PARTY TRANSACTIONS (R91
RELATED PARTY TRANSACTIONS (Relationship with C3AM and C-III Commercial Mortgage) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Oct. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2018 | Jul. 31, 2017 | |
RCC 2017-CRE5 | |||||
Related Party Transaction [Line Items] | |||||
Closing transaction amount | $ 376,700 | ||||
RCC 2017-CRE5 | C3AM | Asset Management Agreement | |||||
Related Party Transaction [Line Items] | |||||
Closing transaction amount | $ 514,200 | $ 514,200 | $ 514,200 | ||
Servicing fee rate | 0.05% | ||||
Servicing fees earned | 67 | 102 | |||
Servicing fees payable | $ 16 | $ 16 | $ 16 | ||
Percentage of total collateral pool value to securitization, related party contribution | 10.20% | ||||
XAN 2018-RSO6, Ltd. | C3AM | Asset Management Agreement | |||||
Related Party Transaction [Line Items] | |||||
Servicing fee rate | 0.25% |
RELATED PARTY TRANSACTIONS (R92
RELATED PARTY TRANSACTIONS (Relationship with RCM Global) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Related Party Transaction [Line Items] | ||||
Equity in earnings (losses) of unconsolidated entities | $ 69 | $ (118) | $ (223) | $ 243 |
RCC Residential, Inc. | ||||
Related Party Transaction [Line Items] | ||||
Equity in earnings (losses) of unconsolidated entities | $ (6) | $ (166) | $ 7 | $ (170) |
RCM Global | RCC Residential, Inc. | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage in VIE | 63.80% |
RELATED PARTY TRANSACTIONS (R93
RELATED PARTY TRANSACTIONS (Relationship with Pelium Capital) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||||
Equity in earnings (losses) of unconsolidated entities | $ 69 | $ (118) | $ (223) | $ 243 | |
Return on investment from investments in unconsolidated entities | 0 | 6,292 | |||
Pelium Capital | |||||
Related Party Transaction [Line Items] | |||||
Equity in earnings (losses) of unconsolidated entities | 75 | 82 | (230) | (77) | |
Return on investment from investments in unconsolidated entities | 10,200 | $ 13,600 | 10,200 | $ 13,600 | |
Equity method investments | $ 200 | $ 200 | $ 10,500 | ||
Ownership percentage | 80.20% | 80.20% |
RELATED PARTY TRANSACTIONS (R94
RELATED PARTY TRANSACTIONS (Relationship with Pearlmark Mezzanine Realty Partners IV) (Details) - Pearlmark Mezz - USD ($) | 1 Months Ended | |
May 31, 2017 | Jun. 30, 2015 | |
Related Party Transaction [Line Items] | ||
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% | |
Proceeds from sale of equity interest | $ 16,200,000 | |
Resource America | ||
Related Party Transaction [Line Items] | ||
Ownership percentage in VIE | 50.00% |
DISTRIBUTIONS (Details)
DISTRIBUTIONS (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | |
DISTRIBUTIONS [Abstract] | |||
Dividend per share (in dollars per share) | $ 0.1 | $ 0.05 | |
REIT required taxable income distribution, percentage (at least) | 90.00% | ||
REIT taxable income distribution required for exempt federal income taxes, percentage | 100.00% |
DISTRIBUTIONS (Dividends Declar
DISTRIBUTIONS (Dividends Declared) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 26, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Class of Stock [Line Items] | |||||||||
Dividend Per Share (in dollars per share) | $ 0.1 | $ 0.05 | |||||||
Common Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Total Dividend Paid | $ 3,165 | $ 1,584 | $ 1,572 | $ 1,566 | $ 1,567 | $ 1,568 | |||
Dividend Per Share (in dollars per share) | $ 0.10 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | |||
Series A Preferred Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Total Dividend Paid | $ 568 | $ 568 | $ 568 | $ 568 | |||||
Dividend Per Share (in dollars per share) | $ 0.53125 | $ 0.53125 | $ 0.53125 | $ 0.53125 | |||||
Series B Preferred Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Total Dividend Paid | $ 1,480 | $ 2,859 | $ 2,859 | $ 2,859 | $ 2,859 | ||||
Dividend Per Share (in dollars per share) | $ 0.320830 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | ||||
Series C Preferred Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Total Dividend Paid | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | |||
Dividend Per Share (in dollars per share) | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 |
FAIR VALUE OF FINANCIAL INSTR97
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Assets: | |||
Investment securities available-for-sale | $ 318,424 | $ 211,737 | |
Investment securities, trading | [1] | 0 | 178 |
Derivatives | [1] | 2,273 | 602 |
Recurring Basis | |||
Assets: | |||
Investment securities available-for-sale | 318,424 | 211,737 | |
Investment securities, trading | 178 | ||
Loans held for sale | 13 | ||
Derivatives | 2,273 | 602 | |
Total assets at fair value | 320,697 | 212,530 | |
Liabilities: | |||
Derivatives | 67 | 76 | |
Total liabilities at fair value | 67 | 76 | |
Recurring Basis | Level 1 | |||
Assets: | |||
Investment securities available-for-sale | 0 | 0 | |
Investment securities, trading | 0 | ||
Loans held for sale | 0 | ||
Derivatives | 0 | 0 | |
Total assets at fair value | 0 | 0 | |
Liabilities: | |||
Derivatives | 0 | 0 | |
Total liabilities at fair value | 0 | 0 | |
Recurring Basis | Level 2 | |||
Assets: | |||
Investment securities available-for-sale | 0 | 0 | |
Investment securities, trading | 0 | ||
Loans held for sale | 0 | ||
Derivatives | 2,273 | 602 | |
Total assets at fair value | 2,273 | 602 | |
Liabilities: | |||
Derivatives | 67 | 76 | |
Total liabilities at fair value | 67 | 76 | |
Recurring Basis | Level 3 | |||
Assets: | |||
Investment securities available-for-sale | 318,424 | 211,737 | |
Investment securities, trading | 178 | ||
Loans held for sale | 13 | ||
Derivatives | 0 | 0 | |
Total assets at fair value | 318,424 | 211,928 | |
Liabilities: | |||
Derivatives | 0 | 0 | |
Total liabilities at fair value | $ 0 | $ 0 | |
[1] | June 30, 2018December 31, 2017(1) Assets of consolidated variable interest entities ("VIEs") included in total assets above: Cash and cash equivalents$— $—Restricted cash9,245 20,846Accrued interest receivable2,738 3,347CRE loans, pledged as collateral and net of allowances of $1,480 and $1,3301,012,900 603,110Loans held for sale— 13Principal paydowns receivable— 72,207Other assets276 73Total assets of consolidated VIEs$1,025,159 $699,596 |
FAIR VALUE OF FINANCIAL INSTR98
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||||
Net realized and unrealized gain on investment securities available-for-sale and loans and derivatives | $ 932 | $ 9,478 | $ 290 | $ 17,084 |
Loans Held for Sale | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||||
Net realized and unrealized gain on investment securities available-for-sale and loans and derivatives | 9 | 16 | ||
Level 3 | Recurring Basis | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||||
Balance, January 1, 2018 | 211,928 | |||
Included in earnings | 1,200 | |||
Purchases | 113,783 | |||
Sales | (88) | |||
Paydowns | (8,744) | |||
Capitalized interest | 7 | |||
Included in OCI | 338 | |||
Balance, June 30, 2018 | 318,424 | 318,424 | ||
Level 3 | CMBS | Recurring Basis | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||||
Balance, January 1, 2018 | 211,579 | |||
Included in earnings | 1,346 | |||
Purchases | 113,783 | |||
Sales | 0 | |||
Paydowns | (8,522) | |||
Capitalized interest | 0 | |||
Included in OCI | 238 | |||
Balance, June 30, 2018 | 318,424 | 318,424 | ||
Level 3 | ABS | Recurring Basis | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||||
Balance, January 1, 2018 | 158 | |||
Included in earnings | (217) | |||
Purchases | 0 | |||
Sales | (48) | |||
Paydowns | 0 | |||
Capitalized interest | 7 | |||
Included in OCI | 100 | |||
Balance, June 30, 2018 | 0 | 0 | ||
Level 3 | Structured Notes | Recurring Basis | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||||
Balance, January 1, 2018 | 178 | |||
Included in earnings | 55 | |||
Purchases | 0 | |||
Sales | (11) | |||
Paydowns | (222) | |||
Capitalized interest | 0 | |||
Included in OCI | 0 | |||
Balance, June 30, 2018 | 0 | 0 | ||
Level 3 | Loans Held for Sale | Recurring Basis | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||||
Balance, January 1, 2018 | 13 | |||
Included in earnings | 16 | |||
Purchases | 0 | |||
Sales | (29) | |||
Paydowns | 0 | |||
Capitalized interest | 0 | |||
Included in OCI | 0 | |||
Balance, June 30, 2018 | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR99
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018USD ($)loanappraisal | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)loanappraisal | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Net realized and unrealized loss on investment securities available-for-sale and loans and derivatives | $ (932) | $ (9,478) | $ (290) | $ (17,084) | ||
Loans held for investment | [1] | $ 1,446,018 | $ 1,446,018 | $ 1,284,822 | ||
6.00% Convertible Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Interest rate, stated percentage | 6.00% | 6.00% | ||||
6.00% Convertible Senior Notes | Measurement Input, Discount Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 0.0454 | 0.0454 | ||||
8.00% Convertible Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Interest rate, stated percentage | 8.00% | 8.00% | ||||
8.00% Convertible Senior Notes | Measurement Input, Discount Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 0.0492 | 0.0492 | ||||
4.50% Convertible Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Interest rate, stated percentage | 4.50% | 4.50% | ||||
4.50% Convertible Senior Notes | Measurement Input, Discount Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 0.0717 | 0.0717 | ||||
Expected Future Cash Flows | Mezzanine loan | VIE, Not Primary Beneficiary | Measurement Input, Discount Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 0.1063 | 0.1063 | ||||
Expected Future Cash Flows | Unsecured Junior Subordinated Debentures | VIE, Not Primary Beneficiary | Measurement Input, Discount Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 0.1278 | 0.1278 | ||||
Expected Future Cash Flows | Unsecured Junior Subordinated Debentures | Interest in RCT I | VIE, Not Primary Beneficiary | Measurement Input, Discount Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 0.1134 | 0.1134 | ||||
Expected Future Cash Flows | Unsecured Junior Subordinated Debentures | Interest in RCT II | VIE, Not Primary Beneficiary | Measurement Input, Discount Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 0.1134 | 0.1134 | ||||
Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans held for investment | $ 19,374 | $ 19,374 | ||||
Minimum | Level 3 | Expected Future Cash Flows | CRE Loans | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans receivable, interest rate, stated percentage | 4.48% | 4.48% | 5.06% | |||
Maximum | Level 3 | Expected Future Cash Flows | CRE Loans | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans receivable, interest rate, stated percentage | 8.26% | 8.26% | 7.63% | |||
Commercial Real Estate Loans | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans and receivables | $ 1,468,547 | $ 1,468,547 | $ 1,351,991 | |||
Commercial Real Estate Loans | Legacy CRE whole loans | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Net realized and unrealized loss on investment securities available-for-sale and loans and derivatives | $ 4,700 | |||||
Number of loans | loan | 1 | 1 | ||||
Provision for protective advances | $ 172 | |||||
Financing receivable, average value | $ 18,000 | 18,000 | ||||
Loans and receivables | $ 18,000 | $ 18,000 | 61,841 | |||
Number of appraisals | appraisal | 2 | 2 | ||||
Loans held for investment | $ 22,500 | |||||
Commercial Real Estate Loans | Legacy CRE whole loans | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Capitalization rate | 9.25% | 9.25% | ||||
Commercial Real Estate Loans | Legacy CRE whole loans | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Capitalization rate | 9.75% | 9.75% | ||||
[1] | June 30, 2018December 31, 2017(1) Assets of consolidated variable interest entities ("VIEs") included in total assets above: Cash and cash equivalents$— $—Restricted cash9,245 20,846Accrued interest receivable2,738 3,347CRE loans, pledged as collateral and net of allowances of $1,480 and $1,3301,012,900 603,110Loans held for sale— 13Principal paydowns receivable— 72,207Other assets276 73Total assets of consolidated VIEs$1,025,159 $699,596 |
FAIR VALUE OF FINANCIAL INST100
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held for sale | [1] | $ 0 | $ 13 |
CRE preferred equity investment | [1] | 1,446,018 | 1,284,822 |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
CRE whole loans held for investment | 0 | 0 | |
Loans held for sale | 0 | 0 | |
CRE preferred equity investment | 0 | ||
Senior notes in CRE securitizations | 0 | 0 | |
Junior subordinated notes | 0 | 0 | |
Convertible notes | 0 | 0 | |
Repurchase agreements | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | Mezzanine loan | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
CRE whole loans held for investment | 0 | ||
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
CRE whole loans held for investment | 0 | 0 | |
Loans held for sale | 0 | 0 | |
CRE preferred equity investment | 0 | ||
Senior notes in CRE securitizations | 0 | 0 | |
Junior subordinated notes | 0 | 0 | |
Convertible notes | 0 | 0 | |
Repurchase agreements | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Mezzanine loan | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
CRE whole loans held for investment | 0 | ||
Significant Unobservable Inputs (Level 3) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
CRE whole loans held for investment | 1,432,072 | 1,294,664 | |
Loans held for sale | 18,000 | 62,841 | |
CRE preferred equity investment | 19,374 | ||
Senior notes in CRE securitizations | 640,427 | 420,084 | |
Junior subordinated notes | 28,870 | 26,574 | |
Convertible notes | 235,385 | 235,385 | |
Repurchase agreements | 418,882 | 479,383 | |
Significant Unobservable Inputs (Level 3) | Mezzanine loan | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
CRE whole loans held for investment | 4,700 | ||
Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
CRE whole loans held for investment | 1,422,127 | 1,284,822 | |
Loans held for sale | 18,000 | 61,841 | |
CRE preferred equity investment | 19,191 | ||
Senior notes in CRE securitizations | 632,005 | 416,655 | |
Junior subordinated notes | 51,548 | 51,548 | |
Convertible notes | 219,501 | 217,365 | |
Repurchase agreements | 416,592 | 477,917 | |
Carrying Amount | Mezzanine loan | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
CRE whole loans held for investment | 4,700 | ||
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
CRE whole loans held for investment | 1,432,072 | 1,294,664 | |
Loans held for sale | 18,000 | 62,841 | |
CRE preferred equity investment | 19,374 | ||
Senior notes in CRE securitizations | 640,427 | 420,084 | |
Junior subordinated notes | 28,870 | 26,574 | |
Convertible notes | 235,385 | 235,385 | |
Repurchase agreements | 418,882 | $ 479,383 | |
Fair Value | Mezzanine loan | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
CRE whole loans held for investment | $ 4,700 | ||
[1] | June 30, 2018December 31, 2017(1) Assets of consolidated variable interest entities ("VIEs") included in total assets above: Cash and cash equivalents$— $—Restricted cash9,245 20,846Accrued interest receivable2,738 3,347CRE loans, pledged as collateral and net of allowances of $1,480 and $1,3301,012,900 603,110Loans held for sale— 13Principal paydowns receivable— 72,207Other assets276 73Total assets of consolidated VIEs$1,025,159 $699,596 |
MARKET RISK AND DERIVATIVE I101
MARKET RISK AND DERIVATIVE INSTRUMENTS (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018USD ($)derivative | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)derivative | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($)derivative | |
Derivatives, Fair Value [Line Items] | |||||
Gross amounts of recognized assets | $ 2,273,000 | $ 2,273,000 | $ 602,000 | ||
Gross amounts of recognized liabilities | $ 67,000 | $ 67,000 | $ 76,000 | ||
Interest rate swaps | |||||
Derivatives, Fair Value [Line Items] | |||||
Number of instruments held | derivative | 15 | 15 | 7 | ||
Average fixed interest rate | 2.39% | 2.39% | 2.08% | ||
Notional amount | $ 72,800,000 | $ 72,800,000 | $ 41,800,000 | ||
Gain on derivatives | 2,200,000 | 602,000 | |||
Expense to fully amortize | 0 | $ 0 | 0 | $ 18,000 | |
Interest rate swaps | Derivatives, at fair value | |||||
Derivatives, Fair Value [Line Items] | |||||
Gross amounts of recognized assets | 2,273,000 | 2,273,000 | $ 602,000 | ||
Gross amounts of recognized liabilities | $ 67,000 | $ 67,000 |
MARKET RISK AND DERIVATIVE I102
MARKET RISK AND DERIVATIVE INSTRUMENTS (Fair Value and Classification of Derivatives) (Details) $ in Thousands, € in Millions | 6 Months Ended | |||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | |
Derivatives, Fair Value [Line Items] | ||||
Fair Value | $ 2,273 | $ 602 | ||
Fair Value | 67 | 76 | ||
Interest rate swaps | Interest expense | ||||
Derivatives, Fair Value [Line Items] | ||||
Realized and Unrealized Gain (Loss) | (80) | $ (20) | ||
Interest rate swaps | Derivatives, at fair value | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 52,610 | 41,750 | ||
Fair Value | 2,273 | 602 | ||
Notional Amount | 20,216 | |||
Fair Value | 67 | |||
Interest rate swaps | Accumulated other comprehensive income | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 72,826 | 41,750 | ||
Fair Value | $ 2,206 | 602 | ||
Forward contracts - foreign currency, hedging | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | € | € 3 | |||
Forward contracts - foreign currency, hedging | Net realized and unrealized (loss) gain on investment securities available-for-sale and loans and derivatives | ||||
Derivatives, Fair Value [Line Items] | ||||
Realized and Unrealized Gain (Loss) | $ (1,479) | |||
Forward contracts - foreign currency, hedging | Derivatives, at fair value | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 3,602 | |||
Fair Value | $ 76 |
OFFSETTING OF FINANCIAL ASSE103
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Offsetting Derivative Assets | ||
Gross amounts of recognized assets | $ 2,273 | $ 602 |
Gross amounts of recognized liabilities | 0 | 0 |
Net Amounts of Assets Included on the Consolidated Balance Sheets | 2,273 | 602 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Financial Instruments | 0 | 0 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | 0 |
Net Amount | 2,273 | 602 |
Offsetting Derivative Liabilities | ||
Gross amounts of recognized liabilities | 67 | 76 |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included on the Consolidated Balance Sheets | 67 | 76 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Financial Instruments | 0 | 0 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Cash Collateral Pledged | 67 | 0 |
Net Amount | 0 | 76 |
Repurchase agreements and term facilties | ||
Gross Amounts of Recognized Liabilities | 416,593 | 477,917 |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included on the Consolidated Balance Sheets | 416,593 | 477,917 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Financial Instruments | 416,593 | 477,917 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | 0 |
Net Amount | 0 | 0 |
Total-Liabilities | ||
Gross Amounts of Recognized Liabilities | 416,660 | 477,993 |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included on the Consolidated Balance Sheets | 416,660 | 477,993 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Financial Instruments | 416,593 | 477,917 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Cash Collateral Pledged | 67 | 0 |
Net Amount | 0 | 76 |
Fair value of securities pledged against repurchase agreements | 725,900 | 816,100 |
Interest rate swaps | ||
Offsetting Derivative Assets | ||
Cash margin deposits related to interest rate swap contracts | $ 739 | $ 1,900 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | Feb. 05, 2018USD ($)holdershares | Apr. 30, 2018USD ($) | May 31, 2017USD ($) | Jun. 30, 2018USD ($)category | Apr. 30, 2017claim | Apr. 30, 2017claim | Jun. 30, 2018USD ($)category | Aug. 31, 2017claim | Dec. 31, 2017USD ($) |
Commercial Real Estate Loans | |||||||||
Loss Contingencies [Line Items] | |||||||||
Financing receivable, category of loans | category | 2 | 2 | |||||||
Pearlmark Mezz | |||||||||
Loss Contingencies [Line Items] | |||||||||
Proceeds from sale of investment securities available-for-sale | $ 16,200,000 | ||||||||
Indemnification Agreement | Pearlmark Mezz | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, reserve | $ 703,000 | $ 703,000 | |||||||
Loss contingency accrual, period increase (decrease) | 0 | 0 | |||||||
Indemnification Agreement | Pearlmark Mezz | Maximum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, estimate of possible loss | $ 4,300,000 | ||||||||
PCM | |||||||||
Loss Contingencies [Line Items] | |||||||||
Estimated litigation liability | 3,300,000 | 3,300,000 | $ 3,300,000 | ||||||
Open Litigation Matters | |||||||||
Loss Contingencies [Line Items] | |||||||||
Payments of legal costs in excess of insurance coverage | $ 2,000,000 | ||||||||
Estimated litigation liability | 0 | 0 | 2,200,000 | ||||||
Open Litigation Matters | Indemnification Agreement | |||||||||
Loss Contingencies [Line Items] | |||||||||
Estimated litigation liability | 1,700,000 | 1,700,000 | 5,700,000 | ||||||
Open Litigation Matters | Reaves, Caito, Simpson, and Heckel Complaints | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, new claims filed, number | claim | 6 | ||||||||
Open Litigation Matters | Greenberg, Canoles, DeCaro, and Gehan Complaints | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, new claims filed, number | claim | 4 | ||||||||
Open Litigation Matters | McKinney, Sherek/Speigel, and Sebenoler Complaints | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, new claims filed, number | claim | 3 | ||||||||
Open Litigation Matters | PCM | Indemnification Agreement | |||||||||
Loss Contingencies [Line Items] | |||||||||
Estimated litigation liability | $ 0 | $ 0 | $ 6,500,000 | ||||||
Settled Litigation Matters, Including Pending Settlements | Levin v. Resource Capital Corp. | |||||||||
Loss Contingencies [Line Items] | |||||||||
Litigation settlement, amount awarded to other party | $ 9,500,000 | ||||||||
Number of shareholders who opted out of settlement | holder | 1 | ||||||||
Number of shares held by individual shareholder who opted out of settlement (in shares) | shares | 500 |
DISCONTINUED OPERATIONS AND 105
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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest income: | ||||
Loans | $ 25,435 | $ 21,841 | $ 47,818 | $ 43,374 |
Other | 20 | 465 | 138 | 2,095 |
Total interest income | 29,660 | 23,635 | 55,617 | 49,106 |
Interest expense | 16,159 | 14,347 | 30,543 | 28,601 |
Net interest income | 13,501 | 9,288 | 25,074 | 20,505 |
Total revenues | 13,653 | 10,252 | 25,131 | 22,397 |
OPERATING EXPENSES | ||||
Equity compensation | 659 | 734 | 1,626 | 1,522 |
General and administrative | 2,547 | 3,580 | 5,607 | 7,443 |
Total operating expenses | 6,037 | 7,115 | 12,091 | 15,690 |
Net interest and other revenues less operating expenses | 7,616 | 3,137 | 13,040 | 6,707 |
OTHER INCOME (EXPENSE) | ||||
Net realized and unrealized gain (loss) on investment securities available-for-sale and loans and derivatives | 932 | 9,478 | 290 | 17,084 |
Total other income (expense) | 1,574 | 9,406 | (4,019) | 16,509 |
NET LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX | (450) | (4,184) | (203) | (4,745) |
Discontinued Operations | ||||
Interest income: | ||||
Loans | 10 | 893 | 580 | 1,790 |
Other | 9 | 19 | 13 | 32 |
Total interest income | 19 | 912 | 593 | 1,822 |
Interest expense | 0 | 0 | 0 | 0 |
Net interest income | 19 | 912 | 593 | 1,822 |
Gain (loss) on sale of residential mortgage loans | 13 | 3,049 | (1) | 6,874 |
Total revenues | (34) | 5,458 | 625 | 12,373 |
OPERATING EXPENSES | ||||
Equity compensation | 0 | 162 | 0 | 221 |
General and administrative | 443 | 8,922 | 1,103 | 16,395 |
Total operating expenses | 443 | 9,084 | 1,103 | 16,616 |
Net interest and other revenues less operating expenses | (477) | (3,626) | (478) | (4,243) |
OTHER INCOME (EXPENSE) | ||||
Net realized and unrealized gain (loss) on investment securities available-for-sale and loans and derivatives | 27 | (83) | 275 | (85) |
Fair value adjustments on financial assets held for sale | 0 | (475) | 0 | (417) |
Total other income (expense) | 27 | (558) | 275 | (502) |
LOSS FROM DISCONTINUED OPERATIONS BEFORE TAXES | (450) | (4,184) | (203) | (4,745) |
Income tax expense | 0 | 0 | 0 | 0 |
NET LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX | (450) | (4,184) | (203) | (4,745) |
Loss from disposal of discontinued operations | 0 | 0 | 0 | 0 |
TOTAL LOSS FROM DISCONTINUED OPERATIONS | (450) | (4,184) | (203) | (4,745) |
Discontinued Operations | Management Service | ||||
Interest income: | ||||
Fee (loss) income | $ (66) | $ 1,497 | $ 33 | $ 3,677 |
DISCONTINUED OPERATIONS AND 106
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE (Assets and Liabilities of Business Segments Classified as Discontinued Operations) (Details) - USD ($) | 1 Months Ended | ||||||
Jul. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | ||||
ASSETS | |||||||
Restricted cash | $ 10,070,000 | [1] | $ 22,874,000 | [1] | $ 1,286,000 | ||
Accrued interest receivable | [1] | 7,157,000 | 6,859,000 | ||||
Loans held for sale | [1] | 0 | 13,000 | ||||
Other assets | [1] | 5,225,000 | 7,451,000 | ||||
Total assets held for sale | [1] | 20,956,000 | 107,718,000 | ||||
LIABILITIES | |||||||
Accounts payable and other liabilities | [2] | 3,335,000 | 5,153,000 | ||||
Management fee payable | [2] | 938,000 | 1,035,000 | ||||
Accrued interest payable | [2] | 4,736,000 | 4,387,000 | ||||
Total liabilities held for sale | [2] | 2,421,000 | 10,342,000 | ||||
Investment securities available-for-sale | 318,424,000 | 211,737,000 | |||||
Discontinued Operations, Held-for-sale | |||||||
ASSETS | |||||||
Restricted cash | 0 | 138,000 | |||||
Accrued interest receivable | 0 | 67,000 | |||||
Loans held for sale | 19,978,000 | 93,063,000 | |||||
Other assets | 978,000 | 14,450,000 | |||||
Total assets held for sale | 20,956,000 | 107,718,000 | |||||
LIABILITIES | |||||||
Accounts payable and other liabilities | 2,421,000 | 10,283,000 | |||||
Management fee payable | 0 | 56,000 | |||||
Accrued interest payable | 0 | 3,000 | |||||
Total liabilities held for sale | 2,421,000 | 10,342,000 | |||||
Investment securities available-for-sale | 19,978,000 | 93,063,000 | |||||
Life settlement contracts | 0 | 5,100,000 | |||||
Direct Origination Middle-Market Loans | Discontinued Operations, Held-for-sale | |||||||
LIABILITIES | |||||||
Investment securities available-for-sale | $ 2,000,000 | $ 2,000,000 | |||||
Subsequent Event | Direct Origination Middle-Market Loans | Discontinued Operations, Held-for-sale | |||||||
LIABILITIES | |||||||
Proceeds from loan repayments | $ 2,100,000 | ||||||
[1] | June 30, 2018December 31, 2017(1) Assets of consolidated variable interest entities ("VIEs") included in total assets above: Cash and cash equivalents$— $—Restricted cash9,245 20,846Accrued interest receivable2,738 3,347CRE loans, pledged as collateral and net of allowances of $1,480 and $1,3301,012,900 603,110Loans held for sale— 13Principal paydowns receivable— 72,207Other assets276 73Total assets of consolidated VIEs$1,025,159 $699,596 | ||||||
[2] | June 30, 2018 December 31, 2017(2) Liabilities of consolidated VIEs included in total liabilities above: Accounts payable and other liabilities$119 $96Accrued interest payable485 592Borrowings632,004 416,655Total liabilities of consolidated VIEs$632,608 $417,343 |
DISCONTINUED OPERATIONS AND 107
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Commercial Syndicated Portfolio Segment | Discontinued Operations, Disposed of by Sale | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Realized gain on disposal | $ 243 |
DISCONTINUED OPERATIONS AND 108
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE (Loans Held for Sale in the Residential Mortgage and Middle Market Lending Segments) (Details) | 1 Months Ended | ||
Jul. 31, 2018USD ($) | Jun. 30, 2018USD ($)loantranche | Dec. 31, 2017USD ($)loan | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Carrying Value | $ 318,424,000 | $ 211,737,000 | |
Value of collateral | 725,889,000 | $ 816,082,000 | |
Legacy CRE whole loans | Loans Reclassified to Held-to-Maturity | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Amortized Cost | $ 28,300,000 | ||
Number of loans transferred to held-to-maturity | loan | 2 | ||
Discontinued Operations, Held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of Loans | loan | 3 | 25 | |
Amortized Cost | $ 38,451,000 | $ 106,896,000 | |
Carrying Value | $ 19,978,000 | $ 93,063,000 | |
Discontinued Operations, Held-for-sale | Legacy CRE whole loans | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of Loans | loan | 1 | 5 | |
Amortized Cost | $ 24,614,000 | $ 63,783,000 | |
Carrying Value | $ 18,000,000 | $ 61,841,000 | |
Discontinued Operations, Held-for-sale | Mezzanine loan | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of Loans | loan | 1 | 1 | |
Amortized Cost | $ 0 | $ 0 | |
Carrying Value | 0 | $ 0 | |
Discontinued Operations, Held-for-sale | Mezzanine loan | RREF CDO 2006-1 Senior Notes | VIE, Not Primary Beneficiary | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Debt instrument, par value | 38,100,000 | ||
Value of collateral | $ 0 | ||
Number of tranches | tranche | 2 | ||
Discontinued Operations, Held-for-sale | Middle Market Loans | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of Loans | loan | 1 | 5 | |
Amortized Cost | $ 13,837,000 | $ 41,199,000 | |
Carrying Value | 1,978,000 | $ 29,308,000 | |
Discontinued Operations, Held-for-sale | Residential mortgage loans | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of Loans | loan | 14 | ||
Amortized Cost | $ 1,914,000 | ||
Carrying Value | 1,914,000 | ||
Discontinued Operations, Held-for-sale | Direct Origination Middle-Market Loans | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Carrying Value | $ 2,000,000 | $ 2,000,000 | |
Discontinued Operations, Held-for-sale | Direct Origination Middle-Market Loans | Subsequent Event | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from loan repayments | $ 2,100,000 |