Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 06, 2020 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Entity Registrant Name | EXANTAS CAPITAL CORP. | ||
Entity Central Index Key | 0001332551 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 32,061,203 | ||
Entity Public Float | $ 341,950,894 | ||
Entity File Number | 1-32733 | ||
Entity Tax Identification Number | 20-2287134 | ||
Entity Address, Address Line One | 717 Fifth Avenue | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10022 | ||
City Area Code | 212 | ||
Local Phone Number | 621-3210 | ||
Entity Interactive Data Current | Yes | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Incorporation, State or Country Code | MD | ||
Documents Incorporated by Reference | The information required by Part III of this Form 10-K, to the extent not set forth herein or by amendment, is incorporated by reference from the registrant’s definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days. | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Trading Symbol | XAN | ||
Security Exchange Name | NYSE | ||
Eight Point Six Two Five Percentage Series C Cumulative Redeemable Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 8.625% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock | ||
Trading Symbol | XANPrC | ||
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS: | ||
Cash and cash equivalents | $ 79,958 | $ 82,816 |
Restricted cash | 14,476 | 12,658 |
Accrued interest receivable | 8,042 | 8,198 |
CRE loans, net of allowances of $1,460 and $1,401 | 1,789,985 | 1,551,967 |
Investment securities available-for-sale | 520,714 | 418,998 |
Principal paydowns receivable | 19,517 | 32,083 |
Investments in unconsolidated entities | 1,548 | 1,548 |
Derivatives, at fair value | 30 | 985 |
Other assets | 3,290 | 4,015 |
Assets held for sale (see Note 23) | 16,766 | 17,645 |
Total assets | 2,454,326 | 2,130,913 |
LIABILITIES | ||
Accounts payable and other liabilities | 3,408 | 7,550 |
Management fee payable | 701 | 938 |
Accrued interest payable | 4,408 | 4,224 |
Borrowings | 1,872,577 | 1,554,223 |
Distributions payable | 10,492 | 7,265 |
Derivatives, at fair value | 4,558 | 1,043 |
Accrued tax liability | 38 | 31 |
Liabilities held for sale (see Note 23) | 1,746 | 1,820 |
Total liabilities | 1,897,928 | 1,577,094 |
STOCKHOLDERS’ EQUITY | ||
Common stock, par value $0.001: 125,000,000 shares authorized; 31,880,594 and 31,657,499 shares issued and outstanding (including 420,962 and 422,671 unvested restricted shares) | 32 | 32 |
Additional paid-in capital | 1,085,041 | 1,082,677 |
Accumulated other comprehensive income (loss) | 1,821 | (3,057) |
Distributions in excess of earnings | (530,501) | (525,838) |
Total stockholders’ equity | 556,398 | 553,819 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 2,454,326 | 2,130,913 |
8.625% Series C Preferred Stock | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, par value $0.001 | $ 5 | $ 5 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financing receivable, allowance for credit losses | $ 1,460 | $ 1,401 |
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) | 31,880,594 | 31,657,499 |
Common stock, shares outstanding (in shares) | 31,880,594 | 31,657,499 |
Common stock, shares issued, non-vested restricted shares (in shares) | 420,962 | 422,671 |
Assets of consolidated variable interest entities (VIEs) included in total assets above: | ||
Restricted cash | $ 14,476 | $ 12,658 |
Accrued interest receivable | 8,042 | 8,198 |
CRE loans, pledged as collateral | 1,789,985 | 1,551,967 |
Principal paydowns receivable | 19,517 | 32,083 |
Other assets | 3,290 | 4,015 |
Total assets of consolidated VIEs | 2,454,326 | 2,130,913 |
Accounts payable and other liabilities | 3,408 | 7,550 |
Accrued interest payable | 4,408 | 4,224 |
Borrowings | 1,872,577 | 1,554,223 |
Total liabilities of consolidated VIEs | $ 1,897,928 | $ 1,577,094 |
8.625% Series C Preferred Stock | ||
Assets of consolidated variable interest entities (VIEs) included in total assets above: | ||
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 |
VIE, Primary Beneficiary | ||
Assets of consolidated variable interest entities (VIEs) included in total assets above: | ||
Restricted cash | $ 532 | $ 6,189 |
Accrued interest receivable | 3,780 | 3,548 |
CRE loans, pledged as collateral | 957,045 | 700,986 |
Principal paydowns receivable | 19,239 | 31,914 |
Other assets | 25 | 157 |
Total assets of consolidated VIEs | 980,621 | 742,794 |
Accounts payable and other liabilities | 175 | 75 |
Accrued interest payable | 897 | 709 |
Borrowings | 746,439 | 501,045 |
Total liabilities of consolidated VIEs | $ 747,511 | $ 501,829 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income: | |||
CRE loans | $ 118,060 | $ 103,800 | $ 88,268 |
Securities | 26,190 | 18,600 | 8,501 |
Other | 636 | 379 | 2,549 |
Total interest income | 144,886 | 122,779 | 99,318 |
Interest expense | 83,837 | 67,616 | 57,657 |
Net interest income | 61,049 | 55,163 | 41,661 |
Other revenue | $ 101 | $ 120 | $ 2,048 |
Type of Revenue [Extensible List] | us-gaap:ProductAndServiceOtherMember | us-gaap:ProductAndServiceOtherMember | us-gaap:ProductAndServiceOtherMember |
Total revenues | $ 61,150 | $ 55,283 | $ 43,709 |
OPERATING EXPENSES | |||
Management fees | 8,954 | 11,250 | 13,117 |
Equity compensation | 2,212 | 2,717 | 2,738 |
General and administrative | 10,392 | 10,666 | 15,846 |
Depreciation and amortization | 47 | 77 | 139 |
Impairment losses | 934 | 177 | |
Provision for (recovery of) loan and lease losses, net | 58 | (1,595) | 1,772 |
Total operating expenses | 21,663 | 24,049 | 33,789 |
Net interest and other revenues less operating expenses | 39,487 | 31,234 | 9,920 |
OTHER INCOME (EXPENSE) | |||
Equity in earnings of unconsolidated entities | 217 | 39,545 | |
Net realized and unrealized gain on investment securities available-for-sale and loans and derivatives | 4 | 639 | 18,334 |
Net realized and unrealized gain (loss) on investment securities, trading | 53 | (954) | |
Fair value adjustments on financial assets held for sale | (4,682) | (7,176) | (1,831) |
Loss on extinguishment of debt | (10,365) | ||
Other income (expense) | 1,408 | 1,996 | (579) |
Total other (expense) income | (3,270) | (4,271) | 44,150 |
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES | 36,217 | 26,963 | 54,070 |
Income tax benefit (expense) | 0 | (343) | 6,613 |
NET INCOME FROM CONTINUING OPERATIONS | 36,217 | 27,306 | 47,457 |
NET (LOSS) INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX | (251) | 121 | (14,116) |
NET INCOME | 35,966 | 27,427 | 33,341 |
Net income allocated to preferred shares | (10,350) | (12,972) | (24,057) |
Consideration paid in excess of carrying value for preferred shares | 0 | (7,482) | (3,803) |
Net loss allocable to non-controlling interest, net of taxes | 0 | 196 | |
NET INCOME ALLOCABLE TO COMMON SHARES | $ 25,616 | $ 6,973 | $ 5,677 |
NET INCOME PER COMMON SHARE - BASIC: | |||
CONTINUING OPERATIONS (in dollars per share) | $ 0.82 | $ 0.22 | $ 0.64 |
DISCONTINUED OPERATIONS (in dollars per share) | 0 | (0.46) | |
TOTAL NET INCOME PER COMMON SHARE - BASIC (in dollars per share) | 0.82 | 0.22 | 0.18 |
NET INCOME PER COMMON SHARE - DILUTED: | |||
CONTINUING OPERATIONS (in dollars per share) | 0.81 | 0.22 | 0.64 |
DISCONTINUED OPERATIONS (in dollars per share) | 0 | (0.46) | |
TOTAL NET INCOME PER COMMON SHARE - DILUTED (in dollars per share) | $ 0.81 | $ 0.22 | $ 0.18 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC (in shares) | 31,430,113 | 31,198,319 | 30,836,400 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED (in shares) | 31,670,356 | 31,383,102 | 31,075,787 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 35,966 | $ 27,427 | $ 33,341 |
Other comprehensive income (loss): | |||
Reclassification adjustments for realized gains on investment securities available-for-sale included in net income | (4) | (135) | (534) |
Unrealized gains (losses) on investment securities available-for-sale, net | 9,444 | (4,180) | (1,870) |
Reclassification adjustments associated with unrealized (gains) losses from interest rate hedges included in net income | (91) | (22) | 18 |
Unrealized (losses) gains on derivatives, net | (4,471) | (17) | 602 |
Total other comprehensive income (loss) | 4,878 | (4,354) | (1,784) |
Comprehensive income before allocation to non-controlling interests and preferred shares | 40,844 | 23,073 | 31,557 |
Net income allocated to preferred shares | (10,350) | (12,972) | (24,057) |
Consideration paid in excess of carrying value for preferred shares | 0 | (7,482) | (3,803) |
Net loss allocable to non-controlling interests | 0 | 0 | 196 |
Comprehensive income allocable to common shares | $ 30,494 | $ 2,619 | $ 3,893 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Preferred StockSeries A Preferred Stock | Preferred StockSeries B Preferred Stock | Preferred Stock8.625% Series C Preferred Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Distributions in Excess of Earnings | Total Stockholders' Equity | Noncontrolling Interest |
Beginning balance at Dec. 31, 2016 | $ 703,090 | $ 31 | $ 1 | $ 6 | $ 5 | $ 1,218,352 | $ 3,081 | $ (517,177) | $ 704,299 | $ (1,209) | |
Beginning balance (in shares) at Dec. 31, 2016 | 31,050,020 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Offering costs | (385) | (385) | (385) | ||||||||
Equity component of 4.50% Convertible Senior Notes | 14,231 | 14,231 | 14,231 | ||||||||
Stock-based compensation | 539 | 539 | 539 | ||||||||
Stock-based compensation (in shares) | 422,622 | ||||||||||
Amortization of stock-based compensation | 3,172 | 3,172 | 3,172 | ||||||||
Retirement of common stock | (150) | (150) | (150) | ||||||||
Retirement of common shares (in shares) | (16,137) | ||||||||||
Forfeiture of unvested stock (in shares) | (26,613) | ||||||||||
Net income | 33,341 | $ 33,537 | 33,537 | (196) | |||||||
Distributions on preferred stock | (24,057) | (24,057) | (24,057) | ||||||||
Preferred stock redemption | (50,049) | $ (1) | (1) | (46,244) | (3,803) | (50,049) | |||||
Securities available-for-sale, fair value adjustment, net | (2,403) | (2,403) | (2,403) | ||||||||
Designated derivatives, fair value adjustment | 619 | 619 | 619 | ||||||||
Distributions on common stock | (6,273) | (5,677) | (596) | (6,273) | |||||||
Repurchase of conversion option | (194) | (194) | (194) | ||||||||
Purchase of non-controlling interest | (5) | (1,410) | (1,410) | $ 1,405 | |||||||
Ending balance at Dec. 31, 2017 | 671,476 | $ 31 | 5 | 5 | 1,187,911 | 1,297 | (517,773) | 671,476 | |||
Ending balance (in shares) at Dec. 31, 2017 | 31,429,892 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Stock-based compensation | 1 | $ 1 | 1 | ||||||||
Stock-based compensation (in shares) | 239,589 | ||||||||||
Amortization of stock-based compensation | 2,717 | 2,717 | 2,717 | ||||||||
Retirement of common shares (in shares) | (7,134) | ||||||||||
Forfeiture of unvested stock | (70) | (70) | (70) | ||||||||
Forfeiture of unvested stock (in shares) | (4,848) | ||||||||||
Net income | 27,427 | 27,427 | 27,427 | ||||||||
Distributions on preferred stock | (12,972) | (12,972) | (12,972) | ||||||||
Preferred stock redemption | (115,368) | $ (5) | (107,881) | (7,482) | (115,368) | ||||||
Securities available-for-sale, fair value adjustment, net | (4,315) | (4,315) | (4,315) | ||||||||
Designated derivatives, fair value adjustment | (39) | (39) | (39) | ||||||||
Distributions on common stock | (15,038) | (6,973) | (8,065) | (15,038) | |||||||
Ending balance at Dec. 31, 2018 | $ 553,819 | $ 32 | 5 | 1,082,677 | (3,057) | (525,838) | 553,819 | ||||
Ending balance (in shares) at Dec. 31, 2018 | 31,657,499 | 31,657,499 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Stock-based compensation | $ 152 | 152 | 152 | ||||||||
Stock-based compensation (in shares) | 237,233 | ||||||||||
Amortization of stock-based compensation | 2,212 | 2,212 | 2,212 | ||||||||
Forfeiture of unvested stock (in shares) | (14,138) | ||||||||||
Net income | 35,966 | 35,966 | 35,966 | ||||||||
Distributions on preferred stock | (10,350) | (10,350) | (10,350) | ||||||||
Securities available-for-sale, fair value adjustment, net | 9,440 | 9,440 | 9,440 | ||||||||
Designated derivatives, fair value adjustment | (4,562) | (4,562) | (4,562) | ||||||||
Distributions on common stock | (30,279) | $ (25,616) | (4,663) | (30,279) | |||||||
Ending balance at Dec. 31, 2019 | $ 556,398 | $ 32 | $ 5 | $ 1,085,041 | $ 1,821 | $ (530,501) | $ 556,398 | ||||
Ending balance (in shares) at Dec. 31, 2019 | 31,880,594 | 31,880,594 |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
4.50% Convertible Senior Notes | |||
Debt instrument, interest rate, stated percentage | 4.50% | 4.50% | 4.50% |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
NET INCOME | $ 35,966 | $ 27,427 | $ 33,341 |
Net loss (income) from discontinued operations, net of tax | 251 | (121) | 14,116 |
Net income from continuing operations | 36,217 | 27,306 | 47,457 |
Adjustments to reconcile net income from continuing operations to net cash provided by continuing operating activities: | |||
Provision for (recovery of) loan and lease losses, net | 58 | (1,595) | 1,772 |
Depreciation, amortization and accretion | 3,399 | 2,908 | 3,150 |
Amortization of stock-based compensation | 2,212 | 2,717 | 2,738 |
Deferred income tax (benefit) expense | 0 | (27) | 4,763 |
Sale of and principal payments on syndicated corporate loans held for sale | 43 | 102 | 1,471 |
Sale of and principal payments on investment securities, trading | 241 | 4,493 | |
Net realized and unrealized (gain) loss on investment securities, trading | (53) | 954 | |
Net realized and unrealized gain on investment securities available-for-sale and loans and derivatives | (4) | (639) | (18,334) |
Fair value adjustments on financial assets held for sale | 4,682 | 7,176 | 1,831 |
Loss on extinguishment of debt | 10,365 | ||
Impairment losses | 934 | 177 | |
Equity in earnings of unconsolidated entities | (217) | (39,545) | |
Return on investment from investments in unconsolidated entities | 411 | 50,046 | |
Changes in operating assets and liabilities: | |||
Decrease (increase) in accrued interest receivable, net of purchased interest | 353 | (1,196) | 170 |
(Decrease) increase in management fee payable | (85) | (97) | 881 |
(Decrease) increase in accounts payable and other liabilities | (4,160) | 52 | 750 |
Increase (decrease) in accrued interest payable | 185 | (163) | (592) |
Decrease in other assets | 492 | 9,843 | 2,932 |
Net cash provided by continuing operating activities | 43,392 | 47,703 | 75,479 |
Net cash (used in) provided by discontinued operating activities | (59) | 505 | 146,931 |
Net cash provided by operating activities | 43,333 | 48,208 | 222,410 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Origination and purchase of loans | (918,917) | (826,155) | (555,359) |
Principal payments received on loans and leases | 695,409 | 631,597 | 610,536 |
Proceeds from sale of loans | 16,709 | ||
Purchase of investment securities available-for-sale | (146,627) | (242,557) | (172,081) |
Principal payments on investment securities available-for-sale | 56,295 | 21,055 | 56,715 |
Proceeds from sale of investment securities available-for-sale | 638 | 12,081 | 40,048 |
Acquisition of the remaining interest in Life Care Funding, LLC | (5) | ||
Return of capital from unconsolidated entities | 10,374 | 48,603 | |
Proceeds from the sale of an investment in an unconsolidated entity | 16,159 | ||
Settlement of derivative instruments | (46) | (1,491) | |
Net cash (used in) provided by continuing investing activities | (313,202) | (376,942) | 43,125 |
Net cash provided by discontinued investing activities | 135 | 29,712 | 19,070 |
Net cash (used in) provided by investing activities | (313,067) | (347,230) | 62,195 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Retirement of common stock | (69) | (149) | |
Repurchase of preferred stock | (165,340) | ||
Proceeds from borrowings: | |||
Repurchase agreements | 913,865 | 939,902 | 387,480 |
Securitizations | 575,811 | 397,452 | 251,449 |
Convertible senior notes | 121,589 | ||
Payments on borrowings: | |||
Repurchase agreements | (847,334) | (563,415) | (362,598) |
Securitizations | (329,717) | (311,701) | (317,021) |
Convertible senior notes | (70,453) | (108,690) | |
Payment of debt issuance costs | (6,529) | (10,531) | (8,278) |
Settlement of derivative instruments | 643 | ||
Distribution paid on subordinated note | (31) | ||
Distributions paid on preferred stock | (10,350) | (15,257) | (24,057) |
Distributions paid on common stock | (27,052) | (11,068) | (6,252) |
Net cash provided by (used in) continuing financing activities | 268,694 | 190,132 | (66,527) |
Net cash provided by discontinued financing activities | (133,139) | ||
Net cash provided by (used in) financing activities | 268,694 | 190,132 | (199,666) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (1,040) | (108,890) | 84,939 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | 95,474 | 204,364 | 119,425 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 94,434 | 95,474 | 204,364 |
SUPPLEMENTAL DISCLOSURE: | |||
Interest expense paid in cash | $ 73,963 | $ 57,548 | 48,902 |
Income taxes paid in cash | $ 517 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
ORGANIZATION | NOTE 1 - ORGANIZATION Exantas Capital Corp., a Maryland corporation, along with its subsidiaries (collectively, the “Company”) is a real estate investment trust (“REIT”) that is primarily focused on originating, holding and managing commercial real estate (“CRE”) mortgage loans and other commercial real estate-related debt investments. The Company is externally managed by Exantas Capital Manager Inc. (the “Manager”), which is an indirect wholly-owned subsidiary of C-III Capital Partners LLC (“C-III”), a leading commercial real estate 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 stock at December 31, 2019. The Company has qualified, and expects to qualify in the current fiscal year, as a REIT. In November 2016, the Company’s board of directors (the “Board”) approved the strategic plan (the “Plan”) to focus its strategy on CRE debt investments. The Plan contemplated disposing of certain loans underwritten prior to 2010 (“legacy CRE loans”), exiting underperforming non-core asset classes and businesses and maintaining a dividend policy based on sustainable earnings. The Company’s residential mortgage and middle market lending segments’ assets and liabilities were classified as held for sale and its operations were reported as discontinued operations and have been excluded from continuing operations. The Company has substantially completed the execution of the Plan. See Note 23 for further discussion. The Company conducts its operations through the use of subsidiaries that it consolidates into its financial statements. The Company’s core assets are consolidated through its investment in RCC Real Estate, Inc. (“RCC RE”), a wholly-owned subsidiary that holds CRE loans, CRE-related securities and investments in CRE securitizations, which are consolidated as VIEs, as discussed in Note 3. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of the Company, majority-owned or controlled subsidiaries and VIEs for which the Company is considered the primary beneficiary. All inter-company transactions and balances have been eliminated in consolidation. Variable Interest Entities A VIE is defined as an entity in which equity investors (i) do not have a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional financial support from other parties. A VIE is required to be consolidated by its primary beneficiary, which is defined as the party that (a) has the power to control the activities that most significantly impact the VIE’s economic performance and (b) has the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company considers the following criteria in determining whether an entity is a VIE: 1. The equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by any parties, including the equity holders. 2. The equity investors lack one or more of the following essential characteristics of a controlling financial interest. a. The direct ability to make decisions about the entity’s activities through voting rights or similar rights. b. The obligation to absorb the expected losses of the entity. c. The right to receive the expected residual returns of the entity. The equity investors have voting rights that are not proportionate to their economic interests, and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. In determining whether the Company is the primary beneficiary of a VIE, the Company reviews governing contracts, formation documents and any other contractual arrangements for any relevant terms and determines the activities that have the most significant impact on the VIE and who has the power to direct those activities. The Company also looks for kick-out rights, protective rights and participating rights as well as any financial or other support provided to the VIE and the reason for that support, and the terms of any explicit or implicit arrangements that may require the Company to provide future support. The Company then makes a determination based on its power to direct the most significant activities of the VIE and/or a financial interest that is potentially significant. In instances when a VIE is owned by both the Company and related parties, the Company considers whether there is a single party in the related party group that meets both the power and losses or benefits criteria on its own as though no related party relationship existed. If one party within the related party group meets both these criteria, such reporting entity is the primary beneficiary of the VIE and no further analysis is needed. If no party within the related party group on its own meets both the power and losses or benefits criteria, but the related party group as a whole meets these two criteria, the determination of primary beneficiary within the related party group is based upon an analysis of the facts and circumstances with the objective of determining which party is most closely associated with the VIE. Determining the primary beneficiary requires significant judgment. The Company continuously analyzes entities in which it holds variable interests, including when there is a reconsideration event, to determine whether such entities are VIEs and whether such potential VIEs should be consolidated or deconsolidated. Voting Interest Entities A voting interest entity is an entity in which the total equity investment at risk is sufficient to enable it to finance its activities independently and the equity holders have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the losses of the entity and the right to receive the residual returns of the entity. The usual condition for a controlling financial interest in a voting interest entity is ownership of a majority voting interest. If the Company has a majority voting interest in a voting interest entity, the entity will generally be consolidated. The Company does not consolidate a voting interest entity if there are substantive participating rights by other parties and/or kick-out rights by a single party or through a simple majority vote. The Company performs on-going reassessments of whether entities previously evaluated under the voting interest framework have become VIEs, based on certain events, and therefore subject to the VIE consolidation framework. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the financial results. Actual results could differ from those estimates. Estimates affecting the accompanying consolidated financial statements include but are not limited to the net realizable and fair values of the Company’s investments and derivatives, the estimated life used on investments to calculate depreciation, amortization and accretion of premiums and discounts, respectively, provisions for loan losses, valuation of servicing assets and the disclosure of contingent liabilities. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and all highly liquid investments with original maturities of three months or less at the time of purchase. At December 31, 2019 and 2018, approximately $77.6 million and $80.4 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, in multiple accounts associated with its parent and respective consolidated subsidiaries, to minimize credit risk exposure. Restricted cash includes required account balance minimums primarily for the Company’s CRE debt securitizations and derivative instruments as well as cash held in the syndicated corporate loan collateralized debt obligations (“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 (in thousands): December 31, 2019 2018 Cash and cash equivalents $ 79,958 $ 82,816 Restricted cash 14,476 12,658 Total cash, cash equivalents and restricted cash shown on the Company’s consolidated statements of cash flows $ 94,434 $ 95,474 Investment in Unconsolidated Entities The Company’s non-controlling investments in unconsolidated entities are included in investments in unconsolidated entities on the consolidated balance sheets and may be accounted for under the equity method or the cost method. Under the equity method, capital contributions, distributions, profits and losses of the entities are allocated in accordance with the terms of the entities’ operating agreements. Such allocations may differ from the stated percentage interests, if any, as a result of preferred returns and allocation formulas as described in the entities’ operating agreements. For non-controlling investments in unconsolidated entities qualifying for equity method treatment with substantive profit-sharing arrangements, the hypothetical liquidation at book value (“HLBV”) method may be used for recognizing earnings. Under the HLBV method, earnings are calculated and recognized based on the change in how the unconsolidated entity would allocate and distribute its cash if it were to liquidate the carrying value of its assets and liabilities on the beginning and end dates of the earnings period; excluding contributions made or distributions received. The Company may account for an investment that does not qualify for equity method accounting using the cost method. Under the cost method, the Company records dividend income when declared to the extent it is not considered a return of capital, which is recorded as a reduction of the cost of the investment. Investment Securities The Company classifies its investment portfolio as trading or available-for-sale. The Company, from time to time, may sell any of its investments due to changes in market conditions or in accordance with its investment strategy. The Company reports its investment securities available-for-sale and historically has reported its investment securities, trading at fair value. To determine fair value, the Company uses an independent third-party valuation firm utilizing data available in the market as well as appropriate prepayment, default and recovery rates. The Company evaluates the reasonableness of the valuation it receives by using a dealer quote, bid, or internal model. If there is a material difference between the value indicated by the third-party valuation firm and the dealer quote, bid or internal model, the Company will evaluate the difference, which could result in an updated valuation from the third-party or a revised dealer quote. Based on a prioritization of inputs used in the valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. Historically, any changes in fair value to the Company’s investment securities, trading were recorded on the Company’s consolidated statements of operations as net realized and unrealized gain (loss) on investment securities, trading. Any changes in fair value to the Company’s investment securities available-for-sale are recorded on the Company’s consolidated balance sheets as a component of accumulated other comprehensive income (loss) in stockholders’ equity. On a quarterly basis, the Company evaluates its available-for-sale securities for other-than-temporary impairment. An available-for-sale security is impaired when its fair value has declined below its amortized cost basis. When the estimated fair value of an available-for-sale security is less than amortized cost, the Company will consider whether there is an other-than-temporary impairment in the value of the security. An impairment will be considered other-than-temporary based on consideration of several factors, including (i) if the Company intends to sell the security, (ii) if it is more likely than not that the Company will be required to sell the security before recovering its cost, or (iii) the Company does not expect to recover the security ’ s cost basis (i.e., a credit loss). A credit loss will have occurred if the present value of cash flows expected to be collected from the debt security is less than the amortized cost basis. If the Company intends to sell an impaired debt security or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the impairment is other-than-temporary and will be recognized currently in earnings and equal to the entire difference between fair value and amortized cost. If a credit loss exists, but the Company does not intend nor is it more likely than not that it will be required to sell before recovery, the impairment is other-than-temporary and will be separated into (i) the estimated amount relating to the credit loss, and (ii) the amount relating to all other factors. Only the estimated credit loss amount is recognized currently in earnings, with the remainder of the loss recognized in other comprehensive income. Estimating cash flows and determining whether there is other-than-temporary impairment require management to exercise judgment and make significant assumptions, including, but not limited to, assumptions regarding estimated prepayments, loss assumptions and assumptions regarding changes in interest rates. As a result, actual impairment losses, and the timing of income recognized on these securities, could differ from reported amounts. Investment security transactions are recorded on the trade date. Realized gains and losses on investment securities are determined on the specific identification method. Investment Security Interest Income Recognition Interest income on the Company’s mortgage-backed securities (“MBS”) and other asset-backed securities (“ABS”) is accrued using the effective yield method based on the actual coupon rate and the outstanding principal amount of the underlying mortgages or other assets. Premiums and discounts are amortized or accreted into interest income over the expected lives of the securities also using the effective yield method, adjusted for the effects of estimated prepayments. For an investment purchased at par, the effective yield is the contractual interest rate on the investment. If the investment is purchased at a discount or at a premium, the effective yield is computed based on the contractual interest rate increased for the accretion of a purchase discount or decreased for the amortization of a purchase premium. The effective yield method requires the Company to make estimates of future prepayment rates for its investments that can be contractually prepaid before their contractual maturity date so that the purchase discount can be accreted, or the purchase premium can be amortized, over the estimated remaining life of the investment. The prepayment estimates that the Company uses directly impact the estimated remaining lives of its investments. Actual prepayment estimates are reviewed at each quarter end or more frequently if the Company becomes aware of any material information that would lead it to believe that an adjustment is necessary. For MBS and other ABS that are not of high credit quality or can be prepaid in such a way that the Company would not recover substantially all of its initial investment, changes in the original or most recent cash flow projections may result in a prospective change in interest income recognized. For MBS and other ABS that are of high credit quality, changes in the original or most recent cash flow projections may result in an immediate cumulative adjustment in interest income recognized. Loans The Company acquires loans through direct origination, through the acquisition of participations in CRE loans and had historically acquired corporate leveraged loans in the secondary market and through syndications of newly originated loans. Loans are held for investment; therefore, the Company initially records them at their acquisition price, and subsequently, accounts for them based on their outstanding principal plus or minus unamortized premiums or discounts. The Company may sell a loan held for investment where the credit fundamentals underlying a particular loan have changed in such a manner that the Company’s expected return on investment may decrease. Once the determination has been made by the Company that it no longer will hold the loan for investment, the Company identifies these loans as loans held for sale. Any credit-related impairment considerations prior to the transfer to loans held for sale are accounted for through the allowance for loan losses on the Company’s consolidated balance sheets. At December 31, 2018, the Company has disclosed a certain legacy CRE loan in assets held for sale on its consolidated balance sheets. The remaining legacy CRE loan, which was foreclosed upon, remains held for sale at December 31, 2019. See Note 23 for further discussion. The Company reports its loans held for sale at the lower of amortized cost or fair value. To determine fair value, the Company primarily uses appraisals obtained from third-parties as a practical expedient. Key assumptions used in those appraisals are reviewed by the Company. If there is a material difference between the value provided by the appraiser and information used by the Company to validate the appraisal, the Company will evaluate the difference with the appraiser, which could result in an updated appraisal. The Company may also use the present value of estimated cash flows, market price, if available, or other determinants of the fair value of the collateral less estimated disposition costs. Any determined changes in the fair value of loans held for sale are recorded in fair value adjustments on financial assets held for sale on the Company ’ s consolidated statements of operations. Based on a prioritization of inputs used in the valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. Loan Interest Income Recognition Interest income on loans includes interest at stated rates adjusted for amortization or accretion of premiums and discounts based on the contractual payment terms of the loan. Premiums and discounts are amortized or accreted into income using the effective yield method. If a loan with a premium or discount is prepaid, the Company immediately recognizes the unamortized portion as a decrease or increase to interest income. In addition, the Company defers loan origination and extension fees and loan origination costs and recognizes them over the life of the related loan against interest income using the straight line method, which approximates the effective yield method. Income recognition is suspended for loans at the earlier of the date at which payments become 90 days past due or when, in the opinion of management, a full recovery of principal and income becomes doubtful. When the ultimate collectability of the principal is in doubt, all payments received are applied to principal under the cost recovery method. On the other hand, when the ultimate collectability of the principal is not in doubt, contractual interest is recorded as interest income when received, under the cash method, until an accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. A loan is written off when it is no longer realizable and/or legally discharged. 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 investments are accounted for as CRE loans held for investment, are carried at cost, net of unamortized loan fees and origination costs, and are 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. Allowance for Loan Losses The Company maintains an allowance for loan loss on its loans held for investment. CRE loans that are held for investment are carried at cost, net of unamortized acquisition premiums or discounts, loan fees and origination costs as applicable, unless the loans are deemed impaired. The Company evaluates each loan classified as held for investment for impairment at least quarterly. In connection with this evaluation, the Company assesses the performance of each loan and assigns a risk rating based on the collective evaluation of several factors, including but not limited to: collateral performance relative to underwritten plan, time since origination, current implied and/or reunderwritten loan-to-collateral value (“LTV”) ratios, risk inherent in the loan structure and exit plan. Loans are rated “1” through “5,” from less risk to greatest risk, in connection with this review. Loans with a risk rating of “5” are individually measured for impairment on a quarterly basis. The general reserve, established for loans not determined to be impaired individually, is based on the Company’s loan risk ratings. The Company records a general reserve equal to 1.5% of the aggregate face values of loans with a risk rating of “3,” plus 5.0% of the aggregate face values of loans with a risk rating of “4.” The Company considers a loan to be impaired if at least one of two conditions exists. The first condition is if, based on the Company’s evaluation as part of the loan risk rating process, management believes that a loss event has occurred that makes it probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The second condition is if the loan is deemed to be a troubled-debt restructuring (“TDR”) where a concession has been given to a borrower in financial difficulty. These TDRs may not have an associated specific loan loss allowance if the principal and interest amount is considered recoverable based on current market conditions, appraisals of the underlying collateral, expected collateral performance and/or guarantees made by the borrowers. When a loan is impaired under either of these two conditions, the allowance for loan losses is increased by the amount of the excess of the amortized cost basis of the loan over its fair value. Fair value may be determined based on the present value of estimated cash flows; or market price, if available; or on the fair value of the collateral less estimated disposition costs. When a loan, or a portion thereof, is considered uncollectible and pursuit of collection is not warranted, the Company will record a charge-off or write-down of the loan against the allowance for loan losses. An impaired loan may remain on accrual status during the period in which the Company is pursuing repayment of the loan; however, the loan would be placed on non-accrual status at such time as (i) management believes that scheduled debt service payments will not be met within the coming 12 months; (ii) the loan becomes 90 days past due; (iii) management determines the borrower is incapable of, or has ceased efforts toward, curing the cause of the impairment; or (iv) the net realizable value of the loan’s underlying collateral approximates the Company’s carrying value for such loan. While on non-accrual status, the Company recognizes interest income only when an actual payment is received if a credit analysis supports the borrower’s principal repayment capacity. When a loan is placed on non-accrual, previously accrued interest is reversed from interest income. Loans that experience insignificant payment delays or payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays or payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is re-measured on a quarterly basis by comparing the fair value of the loan to its cost basis. The fair value is determined using unobservable inputs including estimates of selling costs (Level 3). Assets and Liabilities Held for Sale The Company classifies long-lived assets or a disposal group to be sold as held for sale in the period in which all of the following criteria are met: • management, having the authority to approve the action, commits to a plan to sell the asset or the disposal group; • the asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; • an active program to locate a buyer and other actions required to complete the plan to sell the asset or disposal group have been initiated; • the sale of the asset or disposal group is probable, and transfer of the asset or disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond the Company’s control extend the period of time required to sell the asset or disposal group beyond one year; • the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and • actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A long-lived asset or disposal group that is classified as held for sale is initially measured at the lower of its cost or fair value less any costs to sell. Any loss resulting from the transfer of long-lived assets or disposal groups to assets held for sale is recognized in the period in which the held for sale criteria are met. Legacy CRE loans included as assets held for sale were measured at the lower of cost or fair value on the date the legacy CRE loans were transferred to assets held for sale. Any specific loan loss reserves for legacy CRE loans transferred to assets held for sale were measured and charged off on the date of transfer, establishing a new cost basis for the loans. The fair values of assets held for sale are assessed each reporting period and changes in such fair values are reported as an adjustment to the carrying value of the asset or disposal group with an offset to fair value adjustments on financial assets held for sale on the Company’s consolidated statements of operations, to the extent that any subsequent changes in fair value do not exceed the cost basis of the asset or disposal group. Additionally, upon determining that a long-lived asset or disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group, if material, in the line items assets or liabilities held for sale, respectively, on the consolidated balance sheets. See Note 23. Discontinued Operations The results of operations of a component or a group of components of the Company that either has been disposed of or is classified as held for sale is reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results. Comprehensive Income (Loss) Comprehensive income (loss) for the Company includes net income and the change in net unrealized gains (losses) on available-for-sale securities, derivative instruments used to hedge exposure to interest rate fluctuations and, historically, to protect against declines in the market value of assets resulting from general market. Income Taxes The Company operates in such a manner as to qualify as a REIT under the provisions of the Internal Revenue Code of 1986, as amended (the “Code”); therefore, applicable REIT taxable income is included in the taxable income of its shareholders, to the extent distributed by the Company. To maintain REIT status for federal income tax purposes, the Company is generally required to distribute at least 90% of its REIT taxable income to its shareholders as well as comply with certain other qualification requirements as defined under the Code. As a REIT, the Company is not subject to federal corporate income tax to the extent that it distributes 100% of its REIT taxable income each year. Taxable income, from non-REIT activities managed through the Company’s taxable REIT subsidiaries (“TRSs”), are subject to federal, state and local income taxes. The Company’s TRS’ income taxes are accounted for under the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for the temporary differences between the financial reporting basis and tax basis of assets and liabilities. The Company evaluates the realizability of its deferred tax assets and liabilities and recognizes a valuation allowance if, based on available evidence, it is more likely than not that some or all of its deferred tax assets will not be realized. In evaluating the realizability of the deferred tax asset or liability, the Company will consider the expected future taxable income, existing and projected book to tax differences as well as tax planning strategies. This analysis is inherently subjective, as it is based on forecasted earning and business and economic activity. Changes in estimates of deferred tax asset realizability, if any, are included in income tax (expense) benefit on the consolidated statements of operations. In addition, several of the Company’s foreign TRSs, are organized as exempted companies incorporated with limited liability under the laws of the Cayman Islands. The Company also has TRSs incorporated in Ireland, which are generally exempt from federal and state income tax at the corporate level because their activities in the United States are limited to trading in stock and securities for their own account. Therefore, despite their status as TRSs, they generally will not be subject to corporate tax on their earnings and no provision for income taxes is required. However, because they are either controlled foreign corporations or passive foreign investment companies (in which the Company has made a Qualified Electing Fund election), the Company will generally be required to include its share of current taxable income from the foreign TRSs in its calculation of REIT taxable income. The Company accounts for taxes assessed by a governmental authority that is directly imposed on a revenue-producing transaction (e.g., sales, use, value added) on a net (excluded from revenue) basis. The Company established a full valuation allowance against its net deferred tax asset of approximately $32.9 million (tax effected $9.9 million) at December 31, 2019 as the Company believed it was more likely than not that some or all of the deferred tax assets would not be realized. This assessment was based on the Company’s cumulative historical losses and uncertainties as to the amount of taxable income that would be generated in future years. The Company evaluates and recognizes tax positions only if it is more likely than not that the position will be sustained upon examination by the appropriate taxing authority. A tax position that meets this threshold is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company classifies any tax penalties as other operating expenses and any interest as interest expense. The Company does not have any unrecognized tax benefits that would affect the Company’s financial position. U.S. Tax Cuts and Jobs Act In December 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (“TCJA”). The TCJA makes broad and complex changes to the Code, including, but not limited to: (i) reducing the U.S. federal corporate tax rate from 35% to 21%; (ii) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (iii) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (iv) requiring a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations; (v) eliminating the corporate alternative minimum tax (“AMT”) and changing how existing AMT credits can be realized; (vi) creating the base erosion anti-abuse tax, a new minimum tax; (vii) creating a new limitation on deductible interest expense; and (viii) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017. The SEC staff issued guidance which provides insight on accounting for the tax effects of the TCJA. The guidance provides a measurement period that should not extend beyond one year from the TCJA enactment date for companies to complete the accounting under Financial Accounting Standards Board (“FASB”) guidance. In accordance with the SEC guidance, a company must reflect the income tax effects of those aspects of the TCJA for which the accounting under the FASB guidance is complete. To the extent that a company’s accounting for certain income tax effects of the TCJA is incomplete but it is able to determine a reasonable estimate, it must r |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2019 | |
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 was the primary beneficiary of five VIEs at each of December 31, 2019 and 2018 (for each period, collectively, the “Consolidated VIEs”). The Consolidated VIEs are CRE securitizations, CDOs and CLOs that 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, historically with the help of C-III Asset Management LLC (“C3AM”), a former subsidiary of C-III that was sold in December 2019 (see Note 16), manages the CRE-related entities. 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. 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. For a discussion of the debt issued through the securitizations see Note 10. Creditors of the Company’s Consolidated VIEs have no recourse to the general credit of the Company, nor to each other. During the years ended December 31, 2019, 2018 and 2017, 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 December 31, 2019 (in thousands): CRE Securitizations Other Total ASSETS Restricted cash $ — $ 532 $ 532 Accrued interest receivable 3,780 — 3,780 CRE loans, pledged as collateral (1) 957,045 — 957,045 Principal paydowns receivable 19,239 — 19,239 Other assets 25 — 25 Total assets (2) $ 980,089 $ 532 $ 980,621 LIABILITIES Accounts payable and other liabilities $ 175 $ — $ 175 Accrued interest payable 897 — 897 Borrowings 746,439 — 746,439 Total liabilities $ 747,511 $ — $ 747,511 (1) Excludes allowance for loan losses. (2) Assets of each of the Consolidated VIEs may only be used to settle the obligations of each respective VIE. Unconsolidated VIEs (the Company is not the primary beneficiary, but has a variable interest) Based on management’s analysis, the Company is not the primary beneficiary of the VIEs discussed below since it does not have both (i) the power to direct the activities that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb the losses of the VIE or the right to receive the benefits from the VIE, which could be significant to the VIE. Accordingly, the following VIEs are not consolidated in the Company’s financial statements at December 31, 2019. The Company continuously reassesses whether it is deemed to be the primary beneficiary of its unconsolidated VIEs. 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 3.0% of each trust, at December 31, 2019. 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 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. Wells Fargo Commercial Mortgage Trust 2017-C40 In October 2017, the Company purchased 95% of the Class E, F, G, H and J certificates of Wells Fargo Commercial Mortgage Trust 2017-C40 (“C40”), a B-piece investment in a Wells Fargo Commercial Mortgage Securities, Inc., private-label, $705.4 million securitization. C40 is managed by C3AM, a former related party sold by C-III in December 2019 that was not under common control. The Company determined that although its investment in C40 represented a variable interest, its investment did not provide the Company with a controlling financial interest. The Company accounted for its various investments in C40 as investment securities available-for-sale 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. WC Newhall MM, LLC In June 2019, the Company invested $5.5 million in the preferred equity of WC Newhall MM, LLC (“Santa Clarita”), a joint venture between the Company and two unrelated third parties (“Sponsor Members”). Santa Clarita was formed for the purpose of refinancing a self-storage CRE property. The Sponsor Members manage the daily operations of the property. The Company determined that although its investment in Santa Clarita represented a variable interest, its investment did not provide the Company with a controlling financial interest. The Company accounts for its investment in Santa Clarita’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 December 31, 2019 (in thousands): Unsecured Junior Subordinated Debentures C40 Prospect Hackensack Santa Clarita Total Maximum Exposure to Loss ASSETS Accrued interest receivable $ 159 $ 178 $ — $ 38 $ 375 $ — CRE loans — — 20,407 5,741 26,148 $ 26,148 Investment securities available-for-sale (1) — 22,647 — 22,647 $ 22,130 Investments in unconsolidated entities 1,548 — — — 1,548 $ 1,548 Total assets 1,707 22,825 20,407 5,779 50,718 LIABILITIES Accrued interest payable 265 — — — 265 N/A Borrowings 51,548 — — — 51,548 N/A Total liabilities 51,813 — — — 51,813 N/A Net (liability) asset $ (50,106 ) $ 22,825 $ 20,407 $ 5,779 $ (1,095 ) 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 December 31, 2019, there were no explicit arrangements or implicit variable interests that could require the Company to provide financial support to any of its unconsolidated VIEs. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | NOTE 4 - SUPPLEMENTAL CASH FLOW INFORMATION The following table summarizes the Company’s supplemental disclosure of cash flow information (in thousands): Years Ended December 31, 2019 2018 2017 Non-cash continuing financing activities include the following: Proceeds from the private exchange of convertible senior notes $ — $ — $ 22,161 Payments on the private exchange of convertible senior notes $ — $ — $ (22,161 ) Distributions on common stock accrued but not paid $ 8,767 $ 5,540 $ 1,571 Distributions on preferred stock accrued but not paid $ 1,725 $ 1,725 $ 4,010 |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
RESTRICTED CASH | NOTE 5 - RESTRICTED CASH The following table summarizes the Company’s restricted cash (in thousands): December 31, 2019 2018 Restricted cash: Cash held by consolidated CRE securitizations, CDOs and CLOs $ 532 $ 6,190 Restricted cash pledged with minimum reserve balance requirements 22 21 Margin posted on interest rate swaps and repurchase agreements 13,922 6,447 Total $ 14,476 $ 12,658 |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2019 | |
Loans Held For Investment [Abstract] | |
LOANS | NOTE 6 - LOANS The following is a summary of the Company’s loans (dollars in thousands, except amounts in footnotes): Description Quantity Principal Unamortized (Discount) Premium, net (1) Amortized Cost Allowance for Loan Losses Carrying Value Contractual Interest Rates (2) Maturity Dates (3)(4)(5) At December 31, 2019: CRE loans held for investment: Whole loans (6)(7) 112 $ 1,768,322 $ (7,725 ) $ 1,760,597 $ (1,460 ) $ 1,759,137 1M LIBOR plus 2.70% to 1M LIBOR plus 6.25% January 2020 to October 2023 Mezzanine loan 1 4,700 — 4,700 — 4,700 10.00% June 2028 Preferred equity investments (7)(8)(9) 2 26,237 (89 ) 26,148 — 26,148 11.00% to 11.50% June 2022 to April 2023 Total CRE loans held for investment $ 1,799,259 $ (7,814 ) $ 1,791,445 $ (1,460 ) $ 1,789,985 At December 31, 2018: CRE loans held for investment: Whole loans (6)(7) 79 $ 1,538,759 $ (9,646 ) $ 1,529,113 $ (1,401 ) $ 1,527,712 1M LIBOR plus 2.70% to 1M LIBOR plus 6.25% January 2019 to January 2022 Mezzanine loan 1 4,700 — 4,700 — 4,700 10.00% June 2028 Preferred equity investment (7)(8)(9) 1 19,718 (163 ) 19,555 — 19,555 11.50% April 2023 Total CRE loans held for investment $ 1,563,177 $ (9,809 ) $ 1,553,368 $ (1,401 ) $ 1,551,967 (1) Amounts include unamortized loan origination fees of $9.1 million and $9.6 million and deferred amendment fees of $72,000 and $171,000 at December 31, 2019 and 2018, respectively. Additionally, the amounts include unamortized loan acquisition costs of $1.3 million at December 31, 2019. There were no unamortized loan acquisition costs at December 31, 2018. (2) LIBOR refers to the London Interbank Offered Rate. (3) Maturity dates exclude contractual extension options, subject to the satisfaction of certain terms, that may be available to the borrowers. (4) 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 December 31, 2019 and 2018. (5) Maturity dates include one whole loan with an original maturity date in January 2020 that was granted a six month extension in January 2020. (6) Substantially all loans are pledged as collateral under various borrowings at December 31, 2019 and 2018. (7) Whole loans had $98.0 million and $105.7 million in unfunded loan commitments at December 31, 2019 and 2018, respectively. Preferred equity investments had $3.0 million in unfunded commitments at December 31, 2019. There were no preferred equity investment unfunded commitments at December 31, 2018. These unfunded loan commitments are advanced as the borrowers formally request additional funding and meet certain benchmarks, as permitted under the loan agreement, and any necessary approvals have been obtained. (8) The interest rate on the Company’s preferred equity investments each pay at 8.00%. The remaining interest is deferred until maturity. (9) Beginning in April 2023, the Company has the right to unilaterally force the sale of the Prospect Hackensack’s underlying property. Beginning in June 2022, the Company has the right to unilaterally force the sale of Santa Clarita’s underlying property. The following is a summary of the contractual maturities of the Company’s CRE loans held for investment, at amortized cost (in thousands, except amounts in the footnotes): Description 2020 2021 2022 and Thereafter Total At December 31, 2019: Whole loans (1) $ 319,868 $ 737,478 $ 691,747 $ 1,749,093 Mezzanine loan — — 4,700 4,700 Preferred equity investment — — 26,148 26,148 Total CRE loans (1) $ 319,868 $ 737,478 $ 722,595 $ 1,779,941 Description 2019 2020 2021 and Thereafter Total At December 31, 2018: Whole loans (1) $ 227,851 $ 450,596 $ 839,151 $ 1,517,598 Mezzanine loan — — 4,700 4,700 Preferred equity investment — — 19,555 19,555 Total CRE loans (1) $ 227,851 $ 450,596 $ 863,406 $ 1,541,853 (1) 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 December 31, 2019 and 2018. (2) At December 31, 2019, the amortized costs of the CRE whole loans, summarized by contractual maturity assuming full exercise of the extension options, were $105.5 million, $68.0 million and $1.6 billion in 2020, 2021 and 2022 and thereafter, respectively. At December 31, 2018, the amortized costs of the CRE whole loans, summarized by contractual maturity assuming full exercise of the extension options, were $10.4 million, $182.4 million and $1.3 billion in 2019, 2020 and 2021 and thereafter, respectively. At December 31, 2019, approximately 19.5%, 19.4% and 17.6% of the Company’s CRE loan portfolio was concentrated in the Mountain, Southwest and Southeast regions, respectively, based on carrying value, as defined by the National Council of Real Estate Investment Fiduciaries. At December 31, 2018, approximately 32.3%, 20.9% and 17.1% of the Company’s CRE loan portfolio was concentrated in the Southwest, Mountain and Pacific 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 December 31, 2019, the Company had $19.5 million of loan principal paydowns receivable, all of which was received in cash by the Company during January 2020. At December 31, 2018, the Company had $32.1 million of loan principal paydowns receivable, all of which was received by the Company during January 2019. |
FINANCING RECEIVABLES
FINANCING RECEIVABLES | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
FINANCING RECEIVABLES | NOTE 7 - FINANCING RECEIVABLES The following tables show the activity in the allowance for loan losses for the years ended December 31, 2019 and 2018 and the allowance for loan losses and recorded investments in loans at December 31, 2019 and 2018 (in thousands, except amount in the footnotes): Years Ended December 31, 2019 2018 Commercial Real Estate Loans Commercial Real Estate Loans Allowance for loan losses: Allowance for loan losses at beginning of year $ 1,401 $ 5,328 Provision for (recovery of) loan losses, net (1) 59 (1,595 ) Loans charged-off — (2,332 ) Allowance for loan losses at end of year $ 1,460 $ 1,401 (1) Excludes the recovery of loan losses on one bank loan with no amortized cost or carrying value at December 31, 2019 and 2018 that received a payment of approximately $1,000 during the year ended December 31, 2019. December 31, 2019 2018 Commercial Real Estate Loans Commercial Real Estate Loans Allowance for loan losses ending balance: Individually evaluated for impairment $ — $ — Collectively evaluated for impairment $ 1,460 $ 1,401 Loans: Amortized cost ending balance: Individually evaluated for impairment (1) $ 30,848 $ 24,255 Collectively evaluated for impairment $ 1,760,597 $ 1,529,113 (1) The Company’s mezzanine loan and preferred equity investments are evaluated individually for impairment. Credit quality indicators Commercial Real Estate Loans CRE loans are collateralized by a diversified mix of real estate properties and are assessed for credit quality based on the collective evaluation of several factors, including but not limited to: collateral performance relative to underwritten plan, time since origination, current implied and/or reunderwritten LTV 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 the 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 • • 2 • • 3 • • 4 • • 5 • may be • The property has a material vacancy rate • 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 investments are evaluated individually for impairment. Credit risk profiles of CRE loans, at amortized cost, and a legacy CRE loan 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 Held for Sale (2) Total At December 31, 2019: Whole loans $ — $ 1,660,274 $ 96,475 $ 3,848 $ — $ — $ 1,760,597 Mezzanine loan (3) — 4,700 — — — — 4,700 Preferred equity investments (3) — 26,148 — — — — 26,148 Total $ — $ 1,691,122 $ 96,475 $ 3,848 $ — $ — $ 1,791,445 At December 31, 2018: Whole loans $ — $ 1,447,206 $ 77,067 $ 4,840 $ — $ — $ 1,529,113 Mezzanine loan (3) — 4,700 — — — — 4,700 Preferred equity investment (3) — 19,555 — — — — 19,555 Legacy CRE loan held for sale (4) — — — — — 17,000 17,000 Total $ — $ 1,471,461 $ 77,067 $ 4,840 $ — $ 17,000 $ 1,570,368 (1) Includes one whole loan, with an amortized cost of $11.5 million that was in maturity default at December 31, 2019 and 2018. The loan is performing with respect to debt service due in accordance with a forbearance agreement at December 31, 2019 and 2018. (2) Includes one legacy CRE loan that was in default with a total carrying value of $17.0 million at December 31, 2018. (3) The Company’s mezzanine loan and preferred equity investments are evaluated individually for impairment. (4) In November 2019, the Company foreclosed on the remaining legacy CRE loan held for sale (see Note 23). Loan Portfolios Aging Analysis The following table presents the CRE loan portfolio aging analysis as of the dates indicated for CRE loans, at amortized cost, and a legacy CRE loan held for sale at the lower of cost or fair value (in thousands, except amounts in footnotes): 30-59 Days 60-89 Days Greater than 90 Days (1)(2) Total Past Due Current Total Loans Receivable Total Loans > 90 Days and Accruing (1) At December 31, 2019: Whole loans $ — $ — $ 11,503 $ 11,503 $ 1,749,094 $ 1,760,597 $ 11,503 Mezzanine loan — — — — 4,700 4,700 — Preferred equity investments — — — — 26,148 26,148 — Total $ — $ — $ 11,503 $ 11,503 $ 1,779,942 $ 1,791,445 $ 11,503 At December 31, 2018: Whole loans $ — $ — $ 11,516 $ 11,516 $ 1,517,597 $ 1,529,113 $ 11,516 Mezzanine loan — — — — 4,700 4,700 — Preferred equity investment — — — — 19,555 19,555 — Legacy CRE loan held for sale (3) — — 17,000 17,000 — 17,000 — Total $ — $ — $ 28,516 $ 28,516 $ 1,541,852 $ 1,570,368 $ 11,516 (1) Includes one whole loan, with an amortized cost of $11.5 million, that was in maturity default at December 31, 2019 and 2018. The loan is performing with respect to debt service due in accordance with a forbearance agreement at December 31, 2019 and 2018. During the years ended December 31, 2019, 2018 and 2017, the Company recognized interest income of $747,000, $621,000 and $610,000, respectively, on this whole loan. (2) Includes one legacy CRE loan that was in default with a total carrying value of $17.0 million at December 31, 2018. (3) In November 2019, the Company foreclosed on the remaining legacy CRE loan held for sale (see Note 23). Impaired Loans The Company did not have any impaired loans at December 31, 2019 and 2018. Troubled- Debt Restructurings There were no TDRs for the years ended December 31, 2019 and 2018. |
INVESTMENT SECURITIES AVAILABLE
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | 12 Months Ended |
Dec. 31, 2019 | |
Available For Sale Securities [Abstract] | |
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | NOTE 8 - INVESTMENT SECURITIES AVAILABLE-FOR-SALE The following table summarizes the Company’s investment securities available-for-sale, including those pledged as collateral (in thousands, except amounts in the footnote): Amortized Cost Unrealized Gains Unrealized Losses Fair Value (1) At December 31, 2019: CMBS, fixed-rate $ 132,235 $ 6,596 $ (792 ) $ 138,039 CMBS, floating-rate 382,659 995 (979 ) 382,675 Total $ 514,894 $ 7,591 $ (1,771 ) $ 520,714 At December 31, 2018: CMBS, fixed-rate $ 121,487 $ 559 $ (2,307 ) $ 119,739 CMBS, floating-rate 301,132 253 (2,126 ) 299,259 Total $ 422,619 $ 812 $ (4,433 ) $ 418,998 (1) At December 31, 2019 and 2018, investment securities available-for-sale with fair values of $466.9 million and $388.4 million, respectively, 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 (dollars in thousands, except amounts in footnotes): December 31, 2019 December 31, 2018 Amortized Cost (1) Fair Value (1) Weighted Average Coupon (2) Amortized Cost (1) Fair Value (1) Weighted Average Coupon (2) Less than one year (3) $ 187,943 $ 188,005 4.77% $ 126,446 $ 126,014 5.76% Greater than one year and less than five years 80,937 80,925 4.85% 98,220 97,083 5.21% Greater than five years and less than ten years 246,014 251,784 3.83% 197,953 195,901 4.06% Total $ 514,894 $ 520,714 4.30% $ 422,619 $ 418,998 4.76% ( 1 ) Includes CMBS positions subject to other-than-temporary-impairment that have no stated coupon rates that are excluded from the calculation of the weighted average coupon rate. The position with less than one year of projected life had no amortized cost or fair value at December 31, 2019 and 2018. The positions with greater than one year and less than five years of projected lives had amortized costs of $106,000 and $105,000 and no fair values at December 31, 2019 and 2018, respectively. There were no positions subject to other-than-temporary-impairment with projected lives of greater than five years and less than ten years at December 31, 2019 and 2018. (2) The weighted average coupon rate is based on the face values of the associated securities. (3) The Company expects that the payoff dates of these CMBS will either be extended or that the securities will be paid off in full. At December 31, 2019, the contractual maturities, which may be different than the estimated weighted average lives reflected in the table above, of the CMBS investment securities available-for-sale range from December 2024 to December 2061. The following table summarizes the fair value, gross unrealized losses and number of lots 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 (dollars in thousands): Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Number of Lots Fair Value Unrealized Losses Number of Lots Fair Value Unrealized Losses Number of Lots At December 31, 2019: CMBS $ 48,618 $ (181 ) 13 $ 72,013 $ (1,590 ) 21 $ 120,631 $ (1,771 ) 34 At December 31, 2018: CMBS $ 329,441 $ (4,001 ) 49 $ 6,757 $ (432 ) 7 $ 336,198 $ (4,433 ) 56 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 $934,000 of other-than-temporary impairments on its investment securities available-for-sale during the year ended December 31, 2018. In December 2018, a $934,000 impairment was recorded on one CMBS resulting from a collateral shortfall in the securitization. The Company recognized no other-than-temporary impairments on its investment securities available-for-sale during the years ended December 31, 2019 and 2017. The following table summarizes the Company’s sales and redemptions of investment securities available-for-sale for the years ended December 31, 2019, 2018 and 2017 (dollars in thousands): Positions Sold Positions Redeemed Par Amount Sold/Redeemed Amortized Cost Realized Gain (Loss) Proceeds Year Ended December 31, 2019: CMBS 1 — $ 634 $ 634 $ 4 $ 638 Total 1 — $ 634 $ 634 $ 4 $ 638 Year Ended December 31, 2018: CMBS 1 — $ 14,929 $ 11,676 $ 352 $ 12,028 ABS 2 — 411 265 (217 ) 48 Total 3 — $ 15,340 $ 11,941 $ 135 $ 12,076 Year Ended December 31, 2017: CMBS 2 — $ 7,350 $ 6,650 $ (238 ) $ 6,412 ABS - structured notes 3 — 24,267 19,258 632 17,608 ABS 5 — 8,306 4,319 1,356 5,675 RMBS 3 — 153,519 1,274 (158 ) 1,116 Total 13 — $ 193,442 $ 31,501 $ 1,592 $ 30,811 |
INVESTMENTS IN UNCONSOLIDATED E
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 12 Months Ended |
Dec. 31, 2019 | |
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 December 31, 2019 and 2018 and equity in earnings of unconsolidated entities for the years ended December 31, 2019, 2018 and 2017 (dollars in thousands, except amount in the footnotes): Equity in Earnings of Unconsolidated Entities December 31, Years Ended December 31, Ownership % at December 31, 2019 2019 2018 2019 2018 2017 Pelium Capital (1) — % $ — $ — $ — $ (182 ) $ (1,856 ) RCM Global LLC (2) — % — — — (12 ) (274 ) Investment in LCC Preferred Stock (3) — % — — — 411 41,465 RRE VIP Borrower, LLC (4) — % — — — — 45 Pearlmark Mezzanine Realty Partners IV, L.P. (5) — % — — — — 165 Subtotal — — — 217 39,545 Investment in RCT I and II (6) 3.0 % 1,548 1,548 100 96 81 Total $ 1,548 $ 1,548 $ 100 $ 313 $ 39,626 (1) During the year ended December 31, 2018, the Company received distributions of $10.4 million on its investment in Pelium Capital Partners, L.P. (“Pelium Capital”). In December 2018, Pelium Capital was fully liquidated. (2) In December 2018, RCM Global LLC was fully liquidated. (3) The Company’s investment in LEAF Commercial Capital, Inc. (“LCC”) liquidated in July 2017 as a result of the sale of LCC. Earnings for the year ended December 31, 2018 were related to the receipt of a distribution of funds formerly held in escrow accounts established as part of the sale. (4) The Company sold its investment in RRE VIP Borrower, LLC in December 2014. Earnings for the year ended December 31, 2017 was related to insurance premium refunds with respect to the underlying sold properties in the portfolio. (5) The Company sold its investment in Pearlmark Mezzanine Realty Partners IV, L.P. (“Pearlmark Mezz”) in May 2017. (6) During the years ended December 31, 2019, 2018 and 2017, dividends from the investments in RCT I and RCT II’s common shares were recorded in other revenue. See Note 10 for the disclosures on the associated unsecured junior subordinated debentures. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2019 | |
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 (dollars in thousands, except amounts in footnotes): Principal Outstanding Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Borrowing Rate Weighted Average Remaining Maturity Value of Collateral At December 31, 2019: XAN 2018-RSO6 Senior Notes $ 177,118 $ 1,352 $ 175,766 3.17% 15.5 years $ 293,890 XAN 2019-RSO7 Senior Notes 575,679 5,007 570,672 3.03% 16.3 years 687,037 Unsecured junior subordinated debentures 51,548 — 51,548 5.90% 16.7 years — 4.50% Convertible Senior Notes 143,750 10,137 133,613 4.50% 2.6 years — 8.00% Convertible Senior Notes 21,182 9 21,173 8.00% 15 days — CRE - term repurchase facilities (1) 547,619 2,714 544,905 3.71% 1.2 years 705,221 CMBS - short term repurchase agreements (2) 374,900 — 374,900 2.87% 21 days 484,398 Total $ 1,891,796 $ 19,219 $ 1,872,577 3.45% 7.4 years $ 2,170,546 Principal Outstanding Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Borrowing Rate Weighted Average Remaining Maturity Value of Collateral At December 31, 2018: RCC 2017-CRE5 Senior Notes $ 109,250 $ 1,121 $ 108,129 3.76% 15.6 years $ 228,031 XAN 2018-RSO6 Senior Notes 397,452 4,536 392,916 3.55% 16.5 years 514,225 Unsecured junior subordinated debentures 51,548 — 51,548 6.61% 17.7 years — 4.50% Convertible Senior Notes 143,750 13,504 130,246 4.50% 3.6 years — 8.00% Convertible Senior Notes 21,182 238 20,944 8.00% 1.0 year — CRE - term repurchase facilities (1) 512,716 5,269 507,447 4.47% 2.0 years 696,215 Trust certificates - term repurchase facility (3) 47,451 279 47,172 6.41% 1.7 years 118,780 CMBS - short term repurchase agreements (2) 295,821 — 295,821 3.63% 19 days 395,868 Total $ 1,579,170 $ 24,947 $ 1,554,223 4.21% 6.9 years $ 1,953,119 (1) Principal outstanding includes accrued interest payable of $810,000 and $911,000 at December 31, 2019 and 2018, respectively. (2) Principal outstanding includes accrued interest payable of $470,000 and $773,000 at December 31, 2019 and 2018, respectively. (3) Principal outstanding includes accrued interest payable of $118,000 at December 31, 2018. Securitizations The following table sets forth certain information with respect to the Company’s consolidated securitizations at December 31, 2019 (in thousands): Closing Date Maturity Date End of Designated Principal Reinvestment Period (1) Total Note Paydowns from Closing Date through December 31, 2019 XAN 2018-RSO6 June 2018 June 2035 December 2020 $ 220,334 XAN 2019-RSO7 April 2019 April 2036 April 2022 $ 132 (1) The designated principal reinvestment period is the period in which principal repayments can be utilized to purchase loans held outside of the respective securitization that represent the funded commitments of existing collateral in the respective securitization that were not funded as of the date the respective securitization was closed. The investments held by the Company’s securitizations collateralize the securitizations’ borrowings and, as a result, are not available to the Company, its creditors, or stockholders. All senior notes of the securitizations held by the Company at December 31, 2019 and 2018 were eliminated in consolidation. RCC 2014-CRE2 In July 2014, the Company closed Resource Capital Corp. 2014-CRE2, Ltd. ( “ ”) RCC 2015-CRE3 In February 2015, the Company closed Resource Capital Corp. 2015-CRE3, Ltd. (“RCC 2015-CRE3”) RCC 2015-CRE4 In August 2015, the Company closed Resource Capital Corp. 2015-CRE4, Ltd. (“RCC 2015-CRE4”) RCC 2017-CRE5 In July 2017, the Company closed Resource Capital Corp. 2017-CRE5, Ltd. (“RCC 2017-CRE5”) XAN 2018-RSO6 In June 2018, the Company closed Exantas Capital Corp. 2018-RSO6, Ltd. (“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. XAN 2019-RSO7 In April 2019, the Company closed Exantas Capital Corp. 2019-RSO7, Ltd. (“XAN 2019-RSO7”), a $687.2 million CRE debt securitization transaction that provided financing for CRE loans. XAN 2019-RSO7 issued a total of $585.8 million of non-recourse, floating-rate notes at par, of which RCC RE purchased $10.0 million, or approximately 20.4%, of the Class D notes. Additionally, RCC RE purchased 100% of the Class E and Class F notes and a subsidiary of RCC RE purchased 100% of the outstanding preference shares. The notes purchased by RCC RE are subordinated in right of payment to all other senior notes issued by XAN 2019-RSO7, but are senior in right of payment to the preference shares. The preference shares are subordinated in right of payment to all other securities issued by XAN 2019-RSO7. At closing, the senior notes issued to investors consisted of the following classes: (i) $390.0 million of Class A notes bearing interest at one-month LIBOR plus 1.00%, increasing to 1.25% in April 2024; (ii) $70.4 million of Class A-S notes bearing interest at one-month LIBOR plus 1.50%, increasing to 1.75% in April 2024; (iii) $33.5 million of Class B notes bearing interest at one-month LIBOR plus 1.70%, increasing to 2.20% in May 2024; (iv) $42.9 million of Class C notes bearing interest at one-month LIBOR plus 2.05%, increasing to 2.55% in June 2024; and (v) $49.0 million of Class D notes bearing interest at one-month LIBOR plus 2.70% increasing to 3.20% in July 2024. All of the notes issued mature in April 2036, although the Company has the right to call the notes anytime after May 2021. Principal repayments received, after closing and ending in April 2022, may be used to purchase funding participations with respect to existing collateral held outside of the securitization. Corporate Debt Unsecured Junior Subordinated Debentures During 2006, the Company formed RCT I and RCT II for the sole purpose of issuing and selling capital securities representing preferred beneficial interests. RCT I and RCT II are not consolidated into the Company’s consolidated financial statements because the Company is not deemed to be the primary beneficiary of these entities. In connection with the issuance and sale of the capital securities, the Company issued junior subordinated debentures to RCT I and RCT II of $25.8 million each, representing the Company’s maximum exposure to loss. The debt issuance costs associated with the junior subordinated debentures for RCT I and RCT II were included in borrowings and were amortized into interest expense on the consolidated statements of operations using the effective yield method over a ten year period. There were no unamortized debt issuance costs associated with the junior subordinated debentures for RCT I and RCT II outstanding at December 31, 2019 and 2018. The interest rates for RCT I and RCT II, at December 31, 2019, were 5.91% and 5.89%, respectively. The interest rates for RCT I and RCT II, at December 31, 2018, were 6.75% and 6.47%, respectively. The rights of holders of common securities of RCT I and RCT II are subordinate to the rights of the holders of capital securities only in the event of a default; otherwise, the common securities’ economic and voting rights are pari passu with the capital securities. The capital and common securities of RCT I and RCT II are subject to mandatory redemption upon the maturity or call of the junior subordinated debentures held by each. Unless earlier dissolved, RCT I will dissolve in May 2041 and RCT II will dissolve in September 2041. The junior subordinated debentures are the sole assets of RCT I and RCT II, which mature in June 2036 and October 2036, respectively, and may currently be called at par. 4.50% Convertible Senior Notes, 6.00% Convertible Senior Notes and 8.00% Convertible Senior Notes The Company issued $100.0 million aggregate principal of its 8.00% convertible senior notes due 2020 (“8.00% Convertible Senior Notes”) due 2018 (“6.00% Convertible Senior Notes”) The following table summarizes the Convertible Senior Notes at December 31, 2019 (dollars in thousands, except the conversion prices and amounts in the footnotes): Principal Outstanding Borrowing Rate Effective Rate (1) Conversion Rate (2)(3) Conversion Price (3) Maturity Date 4.50% Convertible Senior Notes $ 143,750 4.50 % 7.43 % 83.1676 $ 12.02 August 15, 2022 8.00% Convertible Senior Notes $ 21,182 8.00 % 9.13 % 46.8604 $ 21.34 January 15, 2020 (1) Includes the amortization of the market discounts and deferred debt issuance costs, if any, for the Convertible Senior Notes recorded in interest expense on the consolidated statements of operations. (2) Represents the number of shares of common stock per $1,000 principal amount of the Convertible Senior Notes’ principal outstanding, subject to adjustment as provided in the Second Supplemental Indenture (the “8.00% Convertible Senior Notes Indenture”) and the Third Supplemental Indenture (the “4.50% Convertible Senior Notes Indenture”). (3) The conversion rate and conversion price of the 4.50% Convertible Senior Notes at December 31, 2019 are adjusted to reflect quarterly cash dividends in excess of a $0.10 dividend threshold, as defined in the 4.50% Convertible Senior Notes Indenture. The split-adjusted dividend threshold of $0.64, as defined in the 8.00% Convertible Senior Notes Indenture, was not exceeded for the years ended December 31, 2019, 2018 and 2017. In January 2020, the 8.00% Convertible Senior Notes were paid off upon maturity. The 4.50% Convertible Senior Notes are convertible at the option of the holder at any time up until one business day before the maturity date and may be settled in cash, the Company’s common stock or a combination of cash and the Company’s common stock, at the Company’s election. The Company may not redeem the 4.50% Convertible Senior Notes prior to maturity. The closing price of the Company’s common stock was $11.81 on December 31, 2019, which did not exceed the conversion price of its 4.50% Convertible Senior Notes at December 31, 2019. Repurchase and Credit Facilities Borrowings under the Company’s repurchase agreements are guaranteed by the Company or one of its subsidiaries. The following table sets forth certain information with respect to the Company’s repurchase agreements (dollars in thousands, except amounts in footnotes): December 31, 2019 December 31, 2018 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) $ 225,217 $ 291,903 28 3.70% $ 154,478 $ 226,530 13 4.33% Morgan Stanley Bank, N.A. (3) — — — —% 37,113 62,457 3 5.09% Barclays Bank PLC (4) 111,881 145,035 14 3.99% 240,416 308,389 11 4.51% JPMorgan Chase Bank, N.A. (5) 207,807 268,283 17 3.56% 75,440 98,839 5 4.30% Trust Certificates - Term Repurchase Facilities RSO Repo SPE Trust 2017 (6) — — — —% 47,172 118,780 2 6.41% CMBS - Short-Term Repurchase Agreements Deutsche Bank Securities Inc. 37,141 57,331 6 3.13% 7,305 9,158 5 3.98% JP Morgan Securities LLC 33,703 42,075 13 2.87% 42,040 73,066 13 3.57% Barclays Capital Inc. 87,643 112,939 7 2.82% — — — —% RBC Capital Markets, LLC 34,829 47,081 5 2.96% 246,476 313,644 33 3.64% RBC (Barbados) Trading Bank Corporation 181,584 224,972 30 2.82% — — — —% Total $ 919,805 $ 1,189,619 $ 850,440 $ 1,210,863 (1) Outstanding borrowings include accrued interest payable. (2) Includes $607,000 and $1.6 million of deferred debt issuance costs at December 31, 2019 and 2018, respectively. (3) Includes $167,000 of deferred debt issuance costs at December 31, 2018. There were no deferred debt issuance costs at December 31, 2019. (4) Includes $817,000 and $1.5 million of deferred debt issuance costs at December 31, 2019 and 2018, respectively. (5) Includes $1.3 million and $2.0 million of deferred debt issuance costs at December 31, 2019 and 2018, respectively. (6) Includes $204,000 of deferred debt issuance costs at December 31, 2018. There were no deferred debt issuance costs at December 31, 2019. The following table shows information about the amount at risk under the repurchase facilities (dollars in thousands): Amount at Risk (1) Weighted Average Remaining Maturity Weighted Average Interest Rate At December 31, 2019: CRE - Term Repurchase Facilities Wells Fargo Bank, N. A. $ 67,007 203 days 3.70% Barclays Bank PLC $ 32,967 1.3 years 3.99% JPMorgan Chase Bank, N. A. $ 60,159 1.8 years 3.56% CMBS - Short-Term Repurchase Agreements Deutsche Bank Securities Inc. $ 20,329 42 days 3.13% JP Morgan Securities LLC $ 8,512 18 days 2.87% Barclays Capital Inc. $ 25,532 17 days 2.82% RBC Capital Markets, LLC $ 12,341 17 days 2.96% RBC (Barbados) Trading Bank Corporation $ 43,722 20 days 2.82% (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 was in compliance with all financial covenants in each of the respective agreements at December 31, 2019. CRE - Term Repurchase Facilities In February 2012, a wholly-owned subsidiary 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 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. In September 2015, the Company’s wholly-owned subsidiary entered into a master repurchase and securities agreement (the “Morgan Stanley Facility”) with Morgan Stanley Bank, N.A. (“Morgan Stanley”) to finance the origination of CRE loans. The Company entered into three amendments to the Morgan Stanley Facility, the third of which was entered into in September 2019, which ultimately reduced its maximum capacity to $37.2 million and extended the maturity date through October 2019, at which time it was repaid in full. In April 2018, the Company’s indirect wholly-owned subsidiary entered into a master repurchase agreement (the “Barclays Facility”) with Barclays Bank PLC (“Barclays”) to finance the Company’s core CRE lending business. The Barclays Facility has a maximum facility amount of $250.0 million, charges interest of one-month LIBOR plus a spread between 2.00% and 2.50% and matures in April 2021, subject to certain one-year The Barclays Facility contains margin call provisions that provide Barclays with certain rights when there has been a decline in the value of purchased assets. Under these circumstances, Barclays may require the Company to transfer cash in an amount necessary to eliminate such margin deficit or repurchase the asset that resulted in the margin call. In connection with the Barclays Facility, the Company fully guaranteed all payments and performance under the Barclays Facility pursuant to a guaranty agreement (the “ Barclays Guaranty ” ). The Barclays Guaranty includes certain financial covenants required of the Company, including required liquidity, required capital, ratios of total indebtedness to equity and EBITDA requirements. Also, RCC RE, the direct owner of the wholly-owned subsidiary borrower , executed a pledge and security agreement with Barclays whereby it agreed to pledge and grant to Barclays a continuing security interest in any and all of its right, title and interest in and to the wholly-owned subsidiary, including all distributions, proceeds, payments, income and profits from its interests in the wholly-owned subsidiary . The Barclays , subject to certain materiality thresholds and grace periods, customary for this type of financing arrangement. principal outstanding under Barclay liquidation by Barclays of purchased assets then subject to the Barclays In October 2018, an indirect wholly-owned subsidiary of the Company entered into a master repurchase agreement (the “JPMorgan Chase Facility”) with JPMorgan Chase Bank, N.A. (“JPMorgan Chase”) to finance the origination of CRE loans. The JPMorgan Chase Facility has a maximum facility amount of $250.0 million one-year The JPMorgan Chase Facility contains margin call provisions that provide JPMorgan Chase with certain rights if the value of purchased assets declines. Under these circumstances, JPMorgan Chase may require the Company to transfer cash in an amount necessary to eliminate such margin deficit or repurchase the asset(s) that resulted in the margin call. In connection with the JPMorgan Chase Facility, the Company guaranteed the payment and performance under the JPMorgan Chase Facility pursuant to a guarantee agreement (the “JPMorgan Chase Guarantee”) subject to a limit of 25% of the then currently unpaid aggregate repurchase price of all purchased assets. The JPMorgan Chase Guarantee includes certain financial covenants required of the Company, including required liquidity, required capital, ratios of total indebtedness to equity and EBITDA requirements. Also, RCC RE, the direct owner of the wholly-owned subsidiary borrower, executed a pledge agreement with JPMorgan Chase pursuant to which it pledged and granted to JPMorgan Chase a continuing security interest in any and all of its right, title and interest in and to the wholly-owned subsidiary, including all distributions, proceeds, payments, income and profits from its interests in the wholly-owned subsidiary. The JPMorgan Chase Facility specifies events of default, subject to certain materiality thresholds and grace periods, customary for this type of financing arrangement. The remedies for such events of default are also customary for this type of financing arrangement and include the acceleration of the principal amount outstanding under the JPMorgan Chase Facility and the liquidation by JPMorgan Chase of purchased assets then subject to the JPMorgan Chase Facility. Trust Certificates - Term Repurchase Facilities In November 2015, a subsidiary entered into a repurchase and securities agreement (the “2015 Term Repurchase Trust Facility 2015”) with RSO Repo SPE Trust 2015, a structure that provides financing under a structured sale of trust certificates to qualified institutional buyers through an offering led by Wells Fargo Securities, LLC (“Wells Fargo Securities”). In July 2018, the 2015 Term Repurchase Trust Facility was paid off as a result of the exercise of the optional redemption of RCC 2015-CRE4. In September 2017, a subsidiary entered into a repurchase and securities agreement (the “2017 Term Repurchase Trust Facility”) with RSO Repo SPE Trust 2017, a structure that provides financing under a structured sale of trust certificates to qualified institutional buyers through an offering led by Wells Fargo Securities. In July 2019, the Company paid off the outstanding balance of the 2017 Term Repurchase Trust Facility in connection with the redemption of RCC 2017-CRE5. CMBS - Short-Term Repurchase Agreements In March 2005, a subsidiary entered into a master repurchase agreement with Deutsche Bank Securities Inc. to finance the purchase of CMBS and the origination of CRE loans. There is no stated maximum amount or maturity date of the facility and the repurchase agreement includes monthly resets of interest rates. In February 2012, a subsidiary entered into a master repurchase and securities agreement with Wells Fargo Securities to finance the purchase of CMBS. There is no stated maximum amount of the facility or maturity date and the repurchase agreement includes monthly resets of interest rates. The Company guaranteed the subsidiary’s performance of its obligations under the repurchase agreement. In November 2012, a subsidiary entered into a master repurchase and securities agreement (the “ JP Morgan Securities Facility ” ) with JP Morgan Securities LLC to finance the purchase of CMBS. In April 2017, the Company entered into the first amendment of the JP Morgan Securities Facility which amended the minimum shareholder ’ s equity of the guarantor and maximum leverage ratio covenants. In February 2013, the Company’s wholly-owned subsidiary entered into a master repurchase agreement (the “Barclays Capital Facility”) In August 2017, a subsidiary entered into a master repurchase and securities agreement with RBC Capital Markets, LLC to finance the purchase of CMBS. In October 2019, a subsidiary entered into a master repurchase and securities agreement with RBC (Barbados) Trading Bank Corporation to finance the purchase of CMBS. CMBS - Term Repurchase Facilities In February 2011, two of the Company’s wholly-owned subsidiaries entered into a master repurchase and securities contract (the “2011 Facility”) and a guaranty agreement (the “2011 Guaranty”) with Wells Fargo. In March 2018, the Company paid off the 2011 Facility and allowed it to mature on March 31, 2018. Contractual maturity dates of the Company’s borrowings’ principal outstanding by category and year are presented in the table below (in thousands): Total 2020 2021 2022 2023 2024 and Thereafter At December 31, 2019: CRE securitizations $ 752,797 $ — $ — $ — $ — $ 752,797 Unsecured junior subordinated debentures 51,548 — — — — 51,548 4.50% Convertible Senior Notes 143,750 — — 143,750 — — 8.00% Convertible Senior Notes 21,182 21,182 — — — — Repurchase and credit facilities (1) 922,519 600,724 321,795 — — — Total $ 1,891,796 $ 621,906 $ 321,795 $ 143,750 $ — $ 804,345 (1) Includes accrued interest payable in the balances of principal outstanding. |
SHARE ISSUANCE AND REPURCHASE
SHARE ISSUANCE AND REPURCHASE | 12 Months Ended |
Dec. 31, 2019 | |
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 sheets and a preferred stock redemption charge of $3.8 million was recognized during the year ended 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 year ended December 31, 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 a spread of 5.927% per annum based on the $25.00 liquidation preference, provided that such floating rate shall not be less than the initial rate of 8.625% at any date of determination. At December 31, 2019, the Company had 4.8 million shares of Series C Preferred Stock outstanding, with a weighted average offering price, excluding offering costs, of $25.00. In March 2016, the Board approved a securities repurchase plan for up to $50.0 million of its outstanding securities. During the years ended December 31, 2019, 2018 and 2017, the Company did not repurchase any shares of its common or preferred stock through this program. At December 31, 2019, $44.9 million remains available under this repurchase plan. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 12 - SHARE-BASED COMPENSATION In June 2019, the Company’s shareholders approved the Exantas Capital Corp. Second Amended and Restated Omnibus Equity Compensation Plan (the “June 2019 Plan”), which amended the May 2014 plan. The June 2019 Plan (i) increased the number of shares authorized for issuance from 3,275,000 shares to 4,775,000 shares; (ii) extended the expiration date from May 2024 to June 2029; and (iii) made other clarifying and updating amendments. The following table summarizes the Company’s restricted common stock transactions: Manager Non-Employee Directors Non- Employees (1) Former Employees Total Unvested shares at January 1, 2019 — 30,234 386,628 5,809 422,671 Issued 13,307 27,728 196,198 — 237,233 Vested (13,307 ) (30,234 ) (175,454 ) (5,809 ) (224,804 ) Forfeited — (3,170 ) (10,968 ) — (14,138 ) Unvested shares at December 31, 2019 — 24,558 396,404 — 420,962 (1) Non-employees are employees of C-III or Resource America, Inc. (“Resource America”). The fair values at grant date of the shares of restricted common stock granted to non-employees during the years ended December 31, 2019, 2018 and 2017 were $2.0 million, $2.0 million and $2.7 million, respectively. The fair values at grant date of the shares of restricted common stock issued to the Company’s eight non-employee directors that served at any time during the years ended December 31, 2019, 2018 and 2017 were $300,000, $255,000 and $325,000, respectively. At December 31, 2019 and 2018, the total unrecognized restricted common stock expense for non-employees was $1.1 million, with a weighted average amortization period remaining of 1.8 years The following table summarizes restricted common stock grants during the year ended December 31, 2019: Grant Date (1) Shares (1) Vesting per Year (1) Vesting Date(s) (1) January 22, 2019 196,198 33.3% January 22, 2020, January 22, 2021 and January 22, 2022 February 1, 2019 3,308 100% February 1, 2020 March 8, 2019 14,108 100% March 8, 2020 June 3, 2019 3,164 100% June 3, 2020 June 6, 2019 3,170 100% June 6, 2020 June 19, 2019 900 100% June 19, 2020 September 30, 2019 3,078 100% September 30, 2020 (1) The restricted stock grant on June 6, 2019 was forfeited during the year ended December 31, 2019. The following table summarizes the status of the Company’s vested stock options at December 31, 2019: 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, 2019 10,000 $ 25.60 Vested — — Exercised — — Forfeited — — Expired — — Vested at December 31, 2019 10,000 $ 25.60 1.38 $ — There were no options granted during the years ended December 31, 2019 or 2018 . 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): Years Ended December 31, 2019 2018 2017 Restricted shares granted to non-employees (1) $ 1,937 $ 2,427 $ 2,456 Restricted shares granted to non-employee directors 276 290 282 Total $ 2,213 $ 2,717 $ 2,738 (1) Non-employees are employees of C-III or Resource America. Under the Company’s Third Amended and Restated Management Agreement, as amended (“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 fees on the consolidated statements of operations. During the years ended December 31, 2019 and 2017, the Company incurred incentive compensation payable to the Manager of $606,000 and $2.2 million, respectively, of which $455,000 and $1.6 million, respectively, was paid or payable in cash and $151,000 and $539,000, respectively, representing 13,307 and 51,300 shares, respectively, was paid or payable in common stock. The Manager received no incentive management compensation for the year ended December 31, 2018. 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 Board. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
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 common share for the periods presented as follows (dollars in thousands, except per share amounts): Years Ended December 31, 2019 2018 2017 Net income from continuing operations $ 36,217 $ 27,306 $ 47,457 Net income allocated to preferred shares (10,350 ) (12,972 ) (24,057 ) Consideration paid in excess of carrying value of preferred shares — (7,482 ) (3,803 ) Net loss allocable to non-controlling interest, net of taxes — — 196 Net income from continuing operations allocable to common shares 25,867 6,852 19,793 Net (loss) income from discontinued operations, net of tax (251 ) 121 (14,116 ) Net income allocable to common shares $ 25,616 $ 6,973 $ 5,677 Weighted average number of common shares outstanding: Weighted average number of common shares outstanding - basic 31,430,113 31,198,319 30,836,400 Effect of dilutive securities - unvested restricted stock 240,243 184,783 239,387 Weighted average number of common shares outstanding - diluted 31,670,356 31,383,102 31,075,787 Net income per common share - basic: Continuing operations $ 0.82 $ 0.22 $ 0.64 Discontinued operations — — (0.46 ) Net income per common share - basic $ 0.82 $ 0.22 $ 0.18 Net income per common share - diluted: Continuing operations $ 0.81 $ 0.22 $ 0.64 Discontinued operations — — (0.46 ) Net income (loss) per common share - diluted $ 0.81 $ 0.22 $ 0.18 For the Convertible Senior Notes, the Company has the intent and ability to settle the principal amount in cash and intends to settle the conversion feature for the amount above the conversion price, or the conversion spread, if any, in common stock. The Company uses the treasury stock method for calculating any potential dilutive effect of the conversion spread on diluted earnings per share, if applicable. The conversion spread will have a dilutive impact on diluted earnings per share when the average market price of the Company’s common stock for a given period exceeds the conversion price of the Convertible Senior Notes. For the years ended December 31, 2019, 2018 and 2017 , the average market price of the Company’s common stock did not exceed the conversion price of the Convertible Senior Notes and as such the Convertible Senior Notes have been excluded from the computation of diluted earnings per share. The conversion rate and conversion price for the Convertible Senior Notes are described further in Note 10. |
DISTRIBUTIONS
DISTRIBUTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Distributions [Abstract] | |
DISTRIBUTIONS | NOTE 14 - DISTRIBUTIONS For the years ended December 31, 2019, 2018 and 2017, the Company declared and subsequently paid dividends of $0.95, $0.475 and $0.20 per common share, respectively. In order to qualify as a REIT, the Company must currently distribute at least 90% of its taxable income. In addition, the Company must distribute 100% of its taxable income in order 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 2020 dividends 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 years ended December 31, 2019, 2018 and 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 Paid Dividend Per Share (in thousands) 2019 December 31 January 28, 2020 $ 8,767 $ 0.275 September 30 October 25 $ 7,967 $ 0.25 June 30 July 26 $ 7,172 $ 0.225 March 31 April 26 $ 6,373 $ 0.20 2018 December 31 January 25, 2019 $ 5,540 $ 0.175 September 30 October 26 $ 4,749 $ 0.15 June 30 July 27 $ 3,165 $ 0.10 March 31 April 27 $ 1,584 $ 0.05 2017 December 31 January 26, 2018 $ 1,572 $ 0.05 September 30 October 27 $ 1,566 $ 0.05 June 30 July 28 $ 1,567 $ 0.05 March 31 April 27 $ 1,568 $ 0.05 Series A Preferred Stock Series B Preferred Stock Series C Preferred Stock Date Paid Total Dividend Paid Dividend Per Share Date Paid Total Dividend Paid Dividend Per Share Date Paid Total Dividend Paid Dividend Per Share (in thousands) (in thousands) (in thousands) 2019 December 31 N/A N/A N/A N/A N/A N/A January 30, 2020 $ 2,587 $ 0.539063 September 30 N/A N/A N/A N/A N/A N/A October 30 $ 2,588 $ 0.539063 June 30 N/A N/A N/A N/A N/A N/A July 30 $ 2,587 $ 0.539063 March 31 N/A N/A N/A N/A N/A N/A April 30 $ 2,588 $ 0.539063 2018 December 31 N/A N/A N/A N/A N/A N/A January 30, 2019 $ 2,588 $ 0.539063 September 30 N/A N/A N/A N/A N/A N/A October 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 March 31 N/A N/A N/A N/A N/A N/A April 30 $ 2,588 $ 0.539063 March 26 N/A N/A N/A March 26 $ 1,480 $ 0.320830 N/A N/A N/A 2017 December 31 January 30, 2018 $ 568 $ 0.531250 January 30, 2018 $ 2,859 $ 0.515625 January 30, 2018 $ 2,588 $ 0.539063 September 30 October 30 $ 568 $ 0.531250 October 30 $ 2,859 $ 0.515625 October 30 $ 2,588 $ 0.539063 June 30 July 31 $ 568 $ 0.531250 July 31 $ 2,859 $ 0.515625 July 31 $ 2,588 $ 0.539063 March 31 May 1 $ 568 $ 0.531250 May 1 $ 2,859 $ 0.515625 May 1 $ 2,588 $ 0.539063 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 15 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents the changes in each component of accumulated other comprehensive income (loss) for the year ended December 31, 2019 (in thousands): Net Unrealized (Loss) Gain on Derivatives Net Unrealized Gain (Loss) on Investment Securities Available-for-Sale Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2019 $ 563 $ (3,620 ) $ (3,057 ) Other comprehensive (loss) income before reclassifications (4,471 ) 9,444 4,973 Amounts reclassified from accumulated other comprehensive income (1) (91 ) (4 ) (95 ) Balance at December 31, 2019 $ (3,999 ) $ 5,820 $ 1,821 (1) Amounts reclassified from accumulated other comprehensive income (loss) are reclassified to interest expense and 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 | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 16 - RELATED PARTY TRANSACTIONS Management Agreement In March 2005, the Company entered into a Management Agreement, which was amended and restated on December 14, 2017 and last amended on February 20, 2020, with the Manager pursuant to which the Manager provides the day-to-day management of the Company’s operations. The Management Agreement requires the Manager to manage the Company’s business affairs in conformity with the policies and investment guidelines established by the Company’s Board. The Manager provides its services under the supervision and direction of the Company’s Board. The Manager is responsible for the selection, purchase and sale of the Company’s portfolio investments, its financing activities and providing investment advisory services. The Manager and its affiliates also provides the Company with a Chief Financial Officer and a sufficient number of additional accounting, finance, tax and investor relations professionals. The Manager receives fees and is reimbursed for its expenses as follows: • A monthly base management fee equal to 1/12th of the amount of the Company’s equity multiplied by 1.50%; provided, however that the base management fee was fixed at $937,500 per month from October 1, 2017 through December 31. 2018. Under the Management Agreement, “equity” is equal to the net proceeds from issuances of shares of capital stock (or the value of common shares upon the conversion of convertible securities), less offering-related costs, plus or minus the Company’s retained earnings (excluding non-cash equity compensation incurred in current or prior periods) less all amounts the Company has paid for common stock and preferred stock repurchases. The calculation is adjusted for one-time events due to changes in GAAP, as well as other non-cash charges, upon approval of the Company’s independent directors. • Incentive compensation, calculated quarterly as follows: (A) 20% of the amount by which the Company’s core earnings (as defined in the Management Agreement) for a quarter exceeds the product of (i) the weighted average of (x) the per share book value of the Company’s common shares at September 30, 2017 (subject to adjustments for certain items of income or loss on operations or gain or loss on resolutions under the Plan from October 1, 2017 through December 31, 2018) and (y) the per share price (including the conversion price, if applicable) paid for the Company’s common shares in each offering (or issuance, upon the conversion of convertible securities) by it subsequent to September 30, 2017, multiplied by (ii) the greater of (x) 1.75% and (y) 0.4375% plus one-fourth of the Ten Year Treasury Rate for such quarter; multiplied by (B) the weighted average number of common shares outstanding during such quarter; subject to adjustment (a) to exclude events pursuant to changes in GAAP or the application of GAAP as well as non-recurring or unusual transactions or events, after discussion between the Manager and the independent directors and approval by a majority of the independent directors in the case of non-recurring or unusual transactions or events, and (b) to deduct an amount equal to any fees paid directly by a TRS (or any subsidiary thereof) to employees, agents and/or affiliates of the Manager with respect to profits of such TRS (or subsidiary thereof) generated from the services of such employees, agents and/or affiliates, the fee structure of which shall have been approved by a majority of the independent directors and which fees may not exceed 20% of the net income (before such fees) of such TRS (or subsidiary thereof). • Per loan underwriting and review fees in connection with valuations of and potential investments in certain subordinate commercial mortgage pass-through certificates, in amounts approved by a majority of the independent directors. • Reimbursement of expenses for personnel of our Manager or its affiliates for their services in connection with the making of fixed-rate commercial real estate loans by us, in an amount equal to one percent of the principal amount of each such loan made. • Reimbursement of out-of-pocket expenses and certain other costs incurred by the Manager and its affiliates that relate directly to the Company and its operations. • Reimbursement of the Manager’s and its affiliates’ expenses for (A) wages, salaries and benefits of the Company’s Chief Financial Officer, and (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 its operations. Incentive compensation is calculated and payable quarterly to the Manager to the extent it is earned. Up to 75% of the incentive compensation is payable in cash and at least 25% is payable in the form of an award of common stock. The Manager may elect to receive more than 25% in incentive compensation in common stock. All shares are fully vested upon issuance, however, the Manager may not sell such shares for one year after the incentive compensation becomes due and payable unless the Management Agreement is terminated. Shares payable as incentive compensation are valued as follows: • if such shares are traded on a securities exchange, at the average of the closing prices of the shares on such exchange over the 30-day period ending three days prior to the issuance of such shares; • if such shares are actively traded over-the-counter, at the average of the closing bid or sales price as applicable over the 30-day period ending three days prior to the issuance of such shares; and • if there is no active market for such shares, at the fair market value as reasonably determined in good faith by the Board of the Company. The Management Agreement’s current contract term ends on March 31, 2020 and the agreement provides for automatic one year renewals on such date and on each March 31 thereafter until terminated. The Company’s Board reviews the Manager’s performance annually. The Management Agreement may be terminated annually upon the affirmative vote of at least two-thirds of the Company’s independent directors, or by the affirmative vote of the holders of at least a majority of the outstanding shares of its common stock, based upon unsatisfactory performance that is materially detrimental to the Company or a determination by its independent directors that the management fees payable to the Manager are not fair, subject to the Manager’s right to prevent such a compensation termination by accepting a mutually acceptable reduction of management fees. The Company’s Board must provide 180 days’ prior notice of any such termination. If the Company terminates the Management Agreement, the Manager is entitled to a termination fee equal to four times the sum of the average annual base management fee and the average annual incentive compensation earned by the Manager during the two 12-month periods immediately preceding the date of termination, calculated as of the end of the most recently completed fiscal quarter before the date of termination. The Company may also terminate the Management Agreement for cause with 30 days’ prior written notice from its Board. No termination fee is payable in the event of a termination for cause. The Management Agreement defines cause as: • the Manager’s continued material breach of any provision of the Management Agreement following a period of 30 days after written notice thereof; • the Manager’s fraud, misappropriation of funds, or embezzlement against the Company; • the Manager’s gross negligence in the performance of its duties under the Management Agreement; • the dissolution, bankruptcy or insolvency, or the filing of a voluntary bankruptcy petition, by the Manager; or • a change of control (as defined in the Management Agreement) of the Manager if a majority of the Company’s independent directors determines, at any point during the 18 months following the change of control, that the change of control was detrimental to the ability of the Manager to perform its duties in substantially the same manner conducted before the change of control. Cause does not include unsatisfactory performance that is materially detrimental to the Company’s business. The Manager may terminate the Management Agreement at its option, (A) in the event that the Company defaults in the performance or observance of any material term, condition or covenant contained in the Management Agreement and such default continues for a period of 30 days after written notice thereof, or (B) without payment of a termination fee by the Company, if it becomes regulated as an investment company under the Investment Company Act of 1940, with such termination deemed to occur immediately before such event. Relationship with C-III and certain of its Subsidiaries Relationship with C-III and certain of its Subsidiaries. The Manager is a wholly-owned subsidiary of Resource America, which is a wholly-owned subsidiary of C-III, a leading CRE investment management and services company engaged in a broad range of activities, including fund management, CDO management, principal investment, zoning due diligence, investment sales and multifamily property management and previously primary and special loan servicing and loan origination. 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, and Matthew J. Stern, the Company’s President, are executive managing directors of both C-III and Island Capital. Jeffrey P. Cohen, who is a member of the Company’s Board, is president of both C-III and Island Capital. These 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 December 31, 2019, C-III was the beneficial owner of 780,025, or 2.4%, of the Company’s outstanding common stock. The Company has entered into a Management Agreement, amended and restated on December 14, 2017 and as amended to date, with the Manager pursuant to which the Manager provides the day-to-day management of the Company’s operations and receives substantial fees. For the years ended December 31, 2019, 2018 and 2017, the Manager earned base management fees of $8.3 million, $11.3 million and $10.8 million, respectively. For the years ended December 31, 2019 and 2017, the Manager earned incentive compensation of $606,000 and $2.2 million, respectively, of which $455,000 and $1.6 million, respectively, was paid or payable in cash and $151,000 and $539,000, respectively, was paid or payable in common stock. No incentive compensation was earned for the year ended December 31, 2018. At December 31, 2019 and 2018, $701,000 and $938,000, respectively, of base management fees were payable by the Company to the Manager. There was no incentive compensation payable at December 31, 2019 and 2018. 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 years ended December 31, 2019, 2018 and 2017, the Company reimbursed the Manager $4.2 million, $5.0 million and $5.7 million, respectively, for all such compensation and costs. At December 31, 2019 and 2018, the Company had payables to Resource America and its subsidiaries pursuant to the Management Agreement totaling approximately $1.1 million and $333,000, 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 December 31, 2019, the Company retained equity in five securitization entities that were structured for the Company by the Manager, although three of the securitization entities were substantially liquidated as of December 31, 2019. Under the Management Agreement, the Manager was not separately compensated by the Company for executing these transactions and is not separately compensated for managing the securitizations entities and their assets. Relationship with 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 December 31, 2019 and 2018, the Company had net receivables from Resource Real Estate for loan deposits of $101,000 and $26,000, respectively. Resource Real Estate served as special servicer for the following liquidated real estate securitization transactions, which provided financing for CRE loans: (i) RCC 2014-CRE2, a $353.9 million securitization that closed in July 2014 and liquidated in August 2017; (ii) RCC 2015-CRE3, a $346.2 million securitization that closed in February 2015 and liquidated in August 2018; (iii) RCC 2015-CRE4, a $312.9 million securitization that closed in August 2015 and liquidated in July 2018; and (iv) RCC 2017-CRE5, a $376.7 million securitization that closed in July 2017 and liquidated in July 2019. Resource Real Estate did not earn any special servicing fees during the years ended December 31, 2019, 2018 and 2017. Relationship with C-III Commercial Mortgage LLC and C3AM. In May 2019, RCC RE entered into a Mortgage Loan Sale and Purchase Agreement (the “May 2019 Loan Acquisition Agreement”) with C-III Commercial Mortgage LLC (“C-III Commercial Mortgage”), a wholly-owned subsidiary of C-III, that provided for the acquisition by RCC RE of certain CRE loans on a servicing-released basis at par, plus accrued and unpaid interest on each loan for an aggregate purchase price of $197.6 million. In accordance with the terms of the May 2019 Loan Acquisition Agreement, C-III Commercial Mortgage retains its title to all exit fees in excess of 0.50% of the outstanding principal balance. During the year ended December 31, 2019, C-III Commercial Mortgage earned approximately $108,000 in exit fees. The Company had no outstanding payables to C-III Commercial Mortgage at December 31, 2019. C3AM served as the primary servicer for the CRE loans acquired in the May 2019 Loan Acquisition Agreement and for the CRE loans collateralizing RCC 2017-CRE5, XAN 2018-RSO6, a $514.2 million securitization that closed in June 2018, and XAN 2019-RSO7, a $687.2 million securitization that closed in April 2019. C3AM received servicing fees, payable monthly on an asset-by-asset basis. C3AM served as special servicer for C40, XAN 2018-RSO6 and XAN 2019-RSO7, under which it received a base special servicing fee. On December 31, 2019, C3AM was sold by C-III to an unaffiliated third party. As such, C3AM is no longer a related party under common control effective January 1, 2020. In October 2017, C-III Commercial Mortgage contributed loans to collateralize C40, amounting to 10.2% of the total collateral pool value to the securitization. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2019 | |
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 December 31, 2019: Assets: Investment securities available-for-sale $ — $ — $ 520,714 $ 520,714 Derivatives — 30 — 30 Total assets at fair value $ — $ 30 $ 520,714 $ 520,744 Liabilities: Derivatives $ — $ 4,558 $ — $ 4,558 Total liabilities at fair value $ — $ 4,558 $ — $ 4,558 At December 31, 2018: Assets: Investment securities available-for-sale $ — $ — $ 418,998 $ 418,998 Derivatives — 985 — 985 Total assets at fair value $ — $ 985 $ 418,998 $ 419,983 Liabilities: Derivatives $ — $ 1,043 $ — $ 1,043 Total liabilities at fair value $ — $ 1,043 $ — $ 1,043 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 and derivatives from third-party pricing sources. The following table presents additional information about the Company’s assets that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs (in thousands): CMBS Balance, January 1, 2019 $ 418,998 Included in earnings 2,688 Purchases 146,521 Sales (638 ) Paydowns (1) (56,295 ) Included in OCI 9,440 Balance, December 31, 2019 $ 520,714 (1) Includes non-cash adjustments in connection with the recalculation of the accretable yield on certain interest-only CMBS. The Company reports certain assets held for sale and indemnification liabilities as financial instruments that are carried at fair value on a nonrecurring basis on its consolidated balance sheets. The following table summarizes the Company’s financial instruments measured at fair value on a nonrecurring basis based upon the fair value hierarchy (in thousands): Level 1 Level 2 Level 3 Total At December 31, 2019: Assets: Asset held for sale $ — $ — $ 16,500 $ 16,500 Total assets at fair value $ — $ — $ 16,500 $ 16,500 Liabilities: Pearlmark Mezz indemnification $ — $ — $ 56 $ 56 Total liabilities at fair value $ — $ — $ 56 $ 56 At December 31, 2018: Assets: Legacy CRE loan held for sale $ — $ — $ 17,000 $ 17,000 Total assets at fair value $ — $ — $ 17,000 $ 17,000 Liabilities: Pearlmark Mezz indemnification $ — $ — $ 703 $ 703 Total liabilities at fair value $ — $ — $ 703 $ 703 To measure the fair value of a legacy CRE loan held for sale, 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. At December 31, 2018 $17.0 million During the years ended December 31, 2019, 2018 and 2017, the Company recorded losses on the remaining CRE asset held for sale of $4.7 million, $7.2 million and $1.9 million, respectively, including protective advances to cover borrower operating losses of $1.2 million, $1.7 million and $442,000, respectively, recorded in fair value adjustments on financial assets held for sale on the consolidated statements of operations. The loss during the year ended December 31, 2019 was primarily attributable to two fair value charges: a $2.2 million fair value charge in connection with the February 2020 appraisal and a $1.3 million fair value charge in connection with the receipt of three June 2019 brokers’ opinions of value, the average of which were taken into account equally along with an appraisal received in February 2019. The Company’s Pearlmark Mezz indemnification was valued by a third-party valuation service. The Company is required to disclose the fair value of financial instruments for which it is practicable to estimate that value. The fair values of the Company’s short-term financial instruments such as cash and cash equivalents, restricted cash, 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 available-for-sale are reported in Note 8. 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. Par 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 had variable interest rates from 4.45% to 7.96% and 5.08% to 8.63% at December 31, 2019 and 2018, 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 10.00%. The fair value of the Company’s preferred equity investments are measured by discounting the expected cash flows using the future expected coupon rates. The Company’s preferred equity investments are discounted at a rate of 12.08% and 11.54%. Senior notes in CRE securitizations are valued using third-party pricing sources. 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 8.99%. 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 8.00% Convertible Senior Notes were discounted at a rate of 9.13% and the 4.50% Convertible Senior Notes are discounted at a rate of 7.43%. Repurchase agreements are variable rate debt instruments indexed to LIBOR that reset periodically and, as a result, their carrying value approximates their fair value, excluding deferred debt issuance costs. The fair values of the Company’s remaining financial instruments that are not reported at fair value on the consolidated balance sheets are reported in the following table (in thousands): Fair Value Measurements Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At December 31, 2019: Assets: CRE whole loans held for investment $ 1,759,137 $ 1,768,322 $ — $ — $ 1,768,322 CRE mezzanine loan $ 4,700 $ 4,700 $ — $ — $ 4,700 CRE preferred equity investment $ 26,148 $ 26,237 $ — $ — $ 26,237 Asset held for sale $ 16,500 $ 16,500 $ — $ — $ 16,500 Liabilities: Senior notes in CRE securitizations $ 746,438 $ 754,023 $ — $ — $ 754,023 Junior subordinated notes $ 51,548 $ 25,831 $ — $ — $ 25,831 Convertible senior notes $ 154,786 $ 164,932 $ — $ — $ 164,932 Repurchase agreements $ 919,805 $ 922,519 $ — $ — $ 922,519 At December 31, 2018: Assets: CRE whole loans held for investment $ 1,527,712 $ 1,538,759 $ — $ — $ 1,538,759 CRE mezzanine loan $ 4,700 $ 4,700 $ — $ — $ 4,700 CRE preferred equity investment $ 19,555 $ 19,718 $ — $ — $ 19,718 Legacy CRE loan held for sale $ 17,000 $ 17,000 $ — $ — $ 17,000 Liabilities: Senior notes in CRE securitizations $ 501,045 $ 498,897 $ — $ — $ 498,897 Junior subordinated notes $ 51,548 $ 27,800 $ — $ — $ 27,800 Convertible senior notes $ 151,190 $ 164,932 $ — $ — $ 164,932 Repurchase agreements $ 850,440 $ 855,783 $ — $ — $ 855,783 |
MARKET RISK AND DERIVATIVE INST
MARKET RISK AND DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2019 | |
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 risk managed by the Company through the use of derivative instruments is interest rate risk. The Company may hold various derivatives in the ordinary course of business, including interest rate swaps. Interest rate swaps are contracts between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices. 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 interest-bearing liabilities. Changes in the level of interest rates also can affect the value of the Company’s interest-earning assets and the Company’s ability to realize gains from the sale of these assets. A decline in the value of the Company’s interest-earning assets pledged as collateral for borrowings could result in the counterparties demanding additional collateral pledges or liquidation of some of the existing collateral to reduce borrowing levels. The Company seeks to manage the extent to which net income changes as a function of changes in interest rates by matching adjustable-rate assets with variable-rate borrowings. The Company seeks to mitigate the potential impact on net income of 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 (loss), and records changes in fair value of derivatives designated and ineffective as cash flow hedges in earnings. At December 31, 2019 and 2018, the Company had 19 and 16, respectively, interest rate swap contracts outstanding whereby the Company paid a weighted average fixed rate of 2.47% and 2.54%, respectively, and received a variable rate equal to one-month LIBOR. The aggregate notional amount of these contracts was $90.2 million and $81.1 million at December 31, 2019 and 2018, respectively. The counterparty for the Company’s designated interest rate hedge contracts at December 31, 2019 and 2018 was Wells Fargo. At December 31, 2019 and 2018, the estimated fair value of the Company’s assets related to interest rate swaps was $30,000 and $985,000, respectively. At December 31, 2019 and 2018, the estimated fair value of the Company’s liabilities related to interest rate swaps was $4.6 million and $1.0 million, respectively. The Company had aggregate unrealized losses of $4.0 million at December 31, 2019 and aggregate unrealized gains of $563,000 at December 31, 2018 on the interest rate swaps, which were recorded in accumulated other comprehensive income (loss) on the consolidated balance sheets. At December 31, 2019 and 2018, the Company had an unrealized gain of $530,000 and $621,000, respectively, attributable to two terminated interest rate swaps in accumulated other comprehensive income (loss) on the consolidated balance sheets, to be accreted into earnings over the remaining life of the debt. The Company recorded accretion income, reported in interest expense on the consolidated statements of operations, of $91,000 and $22,000 into earnings during the years ended December 31, 2019 and 2018, respectively. In April 2016, an interest rate swap contract was terminated at the Company’s request, resulting in an unrealized loss that was amortized into interest expense over the remaining life of the swap term. The Company recognized interest expense of $18,000 during the year ended December 31, 2017 to fully amortize the accumulated other comprehensive loss on the terminated swap agreement. The Company had a master netting agreement with Wells Fargo at December 31, 2019. Regulations promulgated under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 mandate that the Company clear certain new interest rate swap transactions through a central counterparty. Transactions that are centrally cleared result in the Company facing a clearing house, rather than a swap dealer, as counterparty. Central clearing requires the Company to post collateral in the form of initial and variation margin to satisfy potential future obligations. At December 31, 2019 and 2018, the Company had centrally cleared interest rate swap contracts with a fair value in an asset position of $30,000 and $985,000, respectively. At December 31, 2019 and 2018, the Company had centrally cleared interest rate swap contracts with a fair value in a liability position of $4.6 million and $1.0 million, respectively. The following tables present the fair value of the Company’s derivative financial instruments at December 31, 2019 and 2018 on the Company’s consolidated balance sheets and the related effect of the derivative instruments on the consolidated statements of operations during the years ended December 31, 2019, 2018 and 2017: Fair Value of Derivative Instruments (in thousands) Asset Derivatives At December 31, 2019 Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging (1) $ 2,630 Derivatives, at fair value $ 30 Liability Derivatives Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging (1) $ 87,551 Derivatives, at fair value $ 4,558 Interest rate swap contracts, hedging $ 90,181 Accumulated other comprehensive income (loss) $ (3,999 ) Asset Derivatives At December 31, 2018 Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging (1) $ 31,725 Derivatives, at fair value $ 985 Liability Derivatives Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging (1) $ 49,326 Derivatives, at fair value $ 1,043 Interest rate swap contracts, hedging $ 81,051 Accumulated other comprehensive income (loss) $ 563 (1) Interest rate swap contracts are accounted for as cash flow hedges. The Effect of Derivative Instruments on the Consolidated Statements of Operations (in thousands) Derivatives Year Ended December 31, 2019 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (138 ) Derivatives Year Ended December 31, 2018 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (169 ) Derivatives Year Ended December 31, 2017 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (130 ) Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on investment securities available-for-sale and loans and derivatives $ (1,896 ) (1) Negative values indicate a decrease to the associated consolidated statements of operations line items. |
OFFSETTING OF FINANCIAL ASSETS
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
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): (i) Gross Amounts (ii) Gross Amounts Offset on the (iii) = (i) - (ii) Net Amounts of Assets Presented on the (iv) Gross Amounts Not Offset on the Consolidated Balance Sheets of Recognized Assets Consolidated Balance Sheets Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged (v) = (iii) - (iv) Net Amount At December 31, 2019: Derivatives, at fair value $ 30 $ — $ 30 $ — $ — $ 30 At December 31, 2018: Derivatives, at fair value $ 985 $ — $ 985 $ — $ — $ 985 The following table presents a summary of the Company’s offsetting of financial liabilities and derivative liabilities (in thousands, except amounts in footnotes): (i) Gross Amounts (ii) Gross Amounts Offset on the (iii) = (i) - (ii) Net Amounts of Liabilities Presented on the (iv) Gross Amounts Not Offset on the Consolidated Balance Sheets of Recognized Liabilities Consolidated Balance Sheets Consolidated Balance Sheets Financial Instruments (1) Cash Collateral Pledged (v) = (iii) - (iv) Net Amount At December 31, 2019: Derivatives, at fair value (2) $ 4,558 $ — $ 4,558 $ — $ 4,558 $ — Repurchase agreements and term facilities (3) 919,805 — 919,805 915,041 4,764 — Total $ 924,363 $ — $ 924,363 $ 915,041 $ 9,322 $ — At December 31, 2018: Derivatives, at fair value (2) $ 1,043 $ — $ 1,043 $ — $ 1,043 $ — Repurchase agreements and term facilities (3) 850,440 — 850,440 850,440 — — Total $ 851,483 $ — $ 851,483 $ 850,440 $ 1,043 $ — (1) Amounts represent financial instruments pledged that are available to be offset against liability balances associated with term facilities, repurchase agreements and derivatives. (2) The Company posted excess cash collateral of $4.6 million and $1.3 million related to interest rate swap contracts outstanding at December 31, 2019 and 2018, respectively. (3) The combined fair value of securities and loans pledged against the Company’s various repurchase agreements and term facilities was $1.2 billion at each of December 31, 2019 and 2018. All balances associated with repurchase agreements and derivatives are presented on a gross basis on the Company’s consolidated balance sheets. Certain of the Company’s repurchase agreements and derivative transactions are governed by underlying agreements that generally provide for a right of offset in the event of default or in the event of a bankruptcy of either party to the transaction. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 20 - INCOME TAXES The following table details the components of income taxes (in thousands): Years Ended December 31, 2019 2018 2017 Income tax (benefit) expense: Current: Federal $ — $ — $ 994 State — (316 ) 856 Total current — (316 ) 1,850 Deferred: Federal — (27 ) 3,475 State — — 1,288 Total deferred — (27 ) 4,763 Total $ — $ (343 ) $ 6,613 A reconciliation of the income tax (benefit) expense based upon the statutory tax rate to the effective income tax rate was as follows for the years presented (in thousands): Years Ended December 31, 2019 2018 2017 Income tax (benefit) expense: Statutory tax $ 6 $ (220 ) $ 9,301 State and local taxes, net of federal benefit 2,716 (1,007 ) 1,415 Permanent adjustments — (3 ) 37 True-up of prior period tax expense 816 (4 ) (2,010 ) Valuation allowance (5,402 ) 5,348 (2,203 ) Tax reform — — 4,918 Tax reform - valuation allowance — — (4,918 ) Discontinued operations adjustment 863 (4,344 ) — Other items 1,001 (113 ) 73 Total $ — $ (343 ) $ 6,613 The components of deferred tax assets and liabilities were as follows (in thousands): December 31, 2019 2018 Deferred tax assets related to: Federal, state and local loss carryforwards $ 7,026 $ 9,847 Accrued expenses 27 106 Charitable contribution carryforward 16 13 Amortization of intangibles 466 406 Unrealized gains 662 1,721 Capital loss carryforward 2,736 — Partnership investment — 3,385 Total deferred tax assets 10,933 15,478 Valuation allowance (9,883 ) (15,285 ) Total deferred tax assets, net of valuation allowance $ 1,050 $ 193 Deferred tax liabilities related to: Investment in securities $ (1,050 ) $ (193 ) Total deferred tax liabilities $ (1,050 ) $ (193 ) Deferred tax assets, net $ — $ — At December 31, 2019 and 2018, the Company had $58.5 million and $59.4 million, respectively, of total gross federal and $1.5 million and $3.6 million, respectively, of total gross state and local net operating tax loss carryforwards. The Company had full valuation allowances on its total gross federal, state and local net operating tax loss carryforwards as of December 31, 2019 and 2018. At December 31, 2019 and 2018, the Company had $28.0 million and $33.4 million, respectively, of gross federal and $1.5 million and $3.6 million, respectively, of gross state and local net operating tax loss carryforwards (a collective deferred tax asset of $7.0 million and $9.8 million, respectively) reported in other assets in the Company’s consolidated balance sheets. The Company also generated a gross capital loss carryforward of $13.0 million in 2019 (tax effected expense of $2.7 million). Due to changes in management’s focus regarding the non-core asset classes, the Company determined that it no longer expected to have sufficient forecasted taxable income to completely realize the tax benefits of the deferred tax assets at December 31, 2019 and 2018. Therefore, a gross valuation allowance of $32.9 million and $58.4 million (tax effected expense of $9.9 million and $15.3 million) has been recorded against the deferred tax asset at December 31, 2019 and 2018, respectively. Management will continue to assess its estimate of the amount of deferred tax assets that the Company will be able to utilize. At December 31, 2019 and 2018, the Company had $30.5 million and $26.0 million, respectively, of gross federal net operating tax loss carryforwards (deferred tax asset of $6.5 million and $5.5 million, respectively), on which the Company recorded a full valuation allowance, reported in assets held for sale in the Company’s consolidated balance sheets. The Company is subject to examination by the Internal Revenue Service for calendar years including and subsequent to 2017, and is subject to examination by state and local jurisdictions for calendar years including and subsequent to 2015. |
QUARTERLY RESULTS
QUARTERLY RESULTS | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY RESULTS | NOTE 21 - QUARTERLY RESULTS The following is a presentation of the quarterly results of operations: March 31 June 30 September 30 December 31 (unaudited) (unaudited) (unaudited) (unaudited) (in thousands, except per share data) Year ended December 31, 2019: Interest income $ 33,932 $ 37,138 $ 39,292 $ 34,524 Interest expense 19,395 21,581 22,712 20,149 Net interest income $ 14,537 $ 15,557 $ 16,580 $ 14,375 Net income from continuing operations $ 8,170 $ 9,003 $ 12,620 $ 6,424 Net loss from discontinued operations (37 ) (112 ) (63 ) (39 ) Net income 8,133 8,891 12,557 6,385 Net income allocated to preferred shares (2,588 ) (2,587 ) (2,588 ) (2,587 ) Net income allocable to common shares $ 5,545 $ 6,304 $ 9,969 $ 3,798 Net income per common share from continuing operations - basic $ 0.18 $ 0.20 $ 0.32 $ 0.12 Net loss per common share from discontinued operations - basic — — — — Total net income per common share - basic $ 0.18 $ 0.20 $ 0.32 $ 0.12 Net income per common share from continuing operations - diluted $ 0.18 $ 0.20 $ 0.31 $ 0.12 Net loss per common share from discontinued operations - diluted — — — — Total net income per common share - diluted $ 0.18 $ 0.20 $ 0.31 $ 0.12 March 31 June 30 September 30 December 31 (unaudited) (unaudited) (unaudited) (unaudited) (in thousands, except per share data) Year ended December 31, 2018: Interest income (1) $ 25,957 $ 29,660 $ 31,836 $ 35,326 Interest expense (1) 14,384 16,159 17,322 19,751 Net interest income $ 11,573 $ 13,501 $ 14,514 $ 15,575 Net (loss) income from continuing operations $ (137 ) $ 9,189 $ 8,260 $ 9,994 Net income (loss) from discontinued operations 247 (450 ) 364 (40 ) Net income 110 8,739 8,624 9,954 Net income allocated to preferred shares (5,210 ) (2,587 ) (2,588 ) (2,587 ) Carrying value less than consideration paid for preferred shares (7,482 ) — — — Net (loss) income allocable to common shares $ (12,582 ) $ 6,152 $ 6,036 $ 7,367 Net (loss) income per common share from continuing operations - basic $ (0.41 ) $ 0.21 $ 0.18 $ 0.24 Net income (loss) per common share from discontinued operations - basic 0.01 (0.01 ) 0.01 — Total net (loss) income per common share - basic $ (0.40 ) $ 0.20 $ 0.19 $ 0.24 Net (loss) income per common share from continuing operations - diluted $ (0.41 ) $ 0.21 $ 0.18 $ 0.23 Net income (loss) per common share from discontinued operations - diluted 0.01 (0.01 ) 0.01 — Total net (loss) income per common share - diluted $ (0.40 ) $ 0.20 $ 0.19 $ 0.23 (1) Certain reclassifications have been made to the 2018 consolidated financial statements, including the impact of discontinued operations. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 22 - 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 December 31, 2019. Primary Capital Mortgage, LLC (“PCM”) is subject to potential litigation related to claims for repurchases or indemnifications on loans that PCM has sold to third parties. At December 31, 2019 and 2018, no such litigation demand was outstanding. Reserves for such potential litigation demands are included in the reserve for mortgage repurchases and indemnifications that totaled $1.7 million at December 31, 2019 and 2018. The reserves for mortgage repurchases and indemnifications are included in liabilities held for sale on the consolidated balance sheets. Settled and Dismissed Litigation Matters In April 2018, the Company funded $2.0 million into escrow in connection with the proposed settlement of outstanding litigation, which was settled in August 2018. The Company did not have any general litigation reserve at December 31, 2019 or 2018. The Company previously disclosed a securities litigation against the Company and certain of its current and former officers and directors titled Levin v. Resource Capital Corp. The Company previously disclosed two consolidated shareholder derivative actions filed in the Court that purported to assert claims on behalf of the Company similar to the claims in the New York State Actions (defined below) (collectively, the “Federal Actions”): (a) by shareholders who declined to make a demand on the Board prior to filing suit (the “Federal Demand Futile Actions”), which comprised a suit filed in January 2017 (the “Greenberg Action”), and another suit filed in January 2017 (the “DeCaro Action”) and (b) by shareholders who served demands on the Board to bring litigation and allege that their demands were wrongfully refused (the “Federal Demand Refused Actions”), which comprised a suit filed in February 2017 (the “McKinney Action”), a suit filed in March 2017 (the “Sherek/Speigel Action”) and a suit filed in April 2017 (the “Sebenoler Action”). In January 2019, the parties to the Federal Actions executed a stipulation and agreement of settlement (the “Federal Actions Settlement Agreement”), which received final approval from the Court on May 17, 2019. Under the Federal Actions Settlement Agreement, the Company agreed to implement certain corporate governance changes and paid $550,000 in plaintiffs’ attorneys’ fees, funded by the Company’s insurers. In exchange for the settlement consideration, the defendants were released from liability for certain claims, including all claims asserted in the Federal Actions. Among other terms and conditions, the Federal Actions Settlement Agreement provided that the defendants deny any and all allegations of wrongdoing and maintained that they have acted lawfully and in accordance with their fiduciary duties at all times. The Company previously disclosed six separate, additional shareholder derivative suits filed in the Supreme Court of New York purporting to assert claims on behalf of the Company (the “New York State Actions”) that were filed 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 were substantially similar and alleged 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 asserted 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 2019 and July 2019, the Schwartz Action and Greff Action, respectively, were dismissed. In October 2019, the four remaining New York State Actions were dismissed. The Company previously disclosed another shareholder derivative action filed 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 asserted a breach of fiduciary duty claim that was substantially similar to the claims at issue in the Federal Actions. In May 2019, the plaintiff in the Hafkey Action voluntarily dismissed his suit in light of the settlement and dismissal of the Federal Actions. The Company previously disclosed another shareholder derivative action filed in the 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”). The complaint (as amended) in the Canoles Action asserted a variety of claims, including claims for breach of fiduciary duty, unjust enrichment and corporate waste, which were based on allegations substantially similar to those at issue in the Federal Demand Futile Actions. In July 2019, the plaintiff in the Canoles Action voluntarily dismissed his suit in light of the settlement and dismissal of the Federal Actions. 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 residential mortgage-backed securities (“RMBS”) by the purchaser to RMBS investors. This matter was settled and dismissed in January 2018. Other Contingencies As part of the May 2017 sale of its equity interest in Pearlmark Mezz, the Company entered into an indemnification agreement pursuant to which the Company agreed to indemnify the purchaser against realized losses of up to $4.3 million on one mezzanine loan until its final maturity date in 2020. As a result, the Company recorded a $703,000 reserve for probable indemnification losses to establish a contingent liability during the year ended December 31, 2017. During the year ended December 31, 2019, the Company recorded a reversal of its reserve for probable losses of $647,000 in connection with a reduction in the indemnified party’s exposure following the partial sale of the mezzanine loan by the indemnified party. As a result of the indemnified party’s partial sale of the mezzanine loan, the maximum exposure was reduced to $536,000. At December 31, 2019 and 2018, the Company had a contingent liability, reported in accounts payable and other liabilities on its consolidated balance sheets, of $56,000 and $703,000, respectively, outstanding as a reserve for probable indemnification losses. PCM is subject to additional claims for repurchases or indemnifications on loans that PCM has sold to investors. At December 31, 2019 and 2018, 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. Whole loans had $98.0 million and $105.7 million in unfunded loan commitments at December 31, 2019 and 2018, respectively. Preferred equity investments had $3.0 million in unfunded investment commitments at December 31, 2019. There were no preferred equity investment unfunded commitments at December 31, 2018. |
DISCONTINUED OPERATIONS AND ASS
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE | NOTE 23 - DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE In November 2016, the Company’s Board approved the Plan to focus its strategy on CRE debt investments. The Plan contemplated disposing of certain legacy CRE loans and exiting underperforming non-core asset classes and businesses, including the residential mortgage and middle market lending segments as well as the Company’s life settlement contract portfolio. The Company’s residential mortgage and middle market lending segments’ operations were classified as discontinued operations and excluded from continuing operations for all periods presented. Certain of the Company’s legacy CRE loans were classified as held for sale. As of December 31, 2019, the Company has substantially completed the execution of the Plan. The following table summarizes the operating results of the residential mortgage and middle market lending segments’ discontinued operations as reported separately as net income (loss) from discontinued operations, net of tax for the years ended December 31, 2019, 2018 and 2017 (in thousands): Years Ended December 31, 2019 2018 2017 REVENUES Interest income: Loans $ — $ 580 $ 3,319 Other — 13 107 Total interest income — 593 3,426 Interest expense — — — Net interest income — 593 3,426 Other revenue 24 407 6,340 Total revenues 24 1,000 9,766 OPERATING EXPENSES Equity compensation — — 433 General and administrative 410 1,300 23,717 Total operating expenses 410 1,300 24,150 (386 ) (300 ) (14,384 ) OTHER INCOME (EXPENSE) Net realized and unrealized gain on investment securities available-for-sale and loans and derivatives 135 421 145 Fair value adjustments on financial assets held for sale — — 123 Total other income 135 421 268 (LOSS) INCOME FROM DISCONTINUED OPERATIONS BEFORE TAXES (251 ) 121 (14,116 ) Income tax expense — — — NET (LOSS) INCOME FROM DISCONTINUED OPERATIONS, NET OF TAXES (251 ) 121 (14,116 ) Loss from disposal of discontinued operations — — — TOTAL (LOSS) INCOME FROM DISCONTINUED OPERATIONS $ (251 ) $ 121 $ (14,116 ) The assets and liabilities of business segments classified as discontinued operations and other assets and liabilities classified as held for sale are reported separately in the accompanying consolidated financial statements and are summarized as follows at December 31, 2019 and 2018 (in thousands): December 31, 2019 2018 ASSETS Loans and other assets held for sale $ — $ 17,645 Property and other assets held for sale 16,766 — Total assets held for sale $ 16,766 $ 17,645 LIABILITIES Accounts payable and other liabilities $ 1,746 $ 1,820 Total liabilities held for sale $ 1,746 $ 1,820 In November 2019, the Company foreclosed on the non-performing legacy CRE loan held for sale. At December 31, 2019, the property had a fair value of $16.5 million. The property’s operating activity is included in the fair value adjustments on assets held for sale on the consolidated statements of operations and the property is currently being marketed for sale. At December 31, 2018, the legacy CRE loan had an amortized cost of $21.7 million and carrying value of $17.0 million. The Company has one mezzanine loan held for sale with a par value of $38.1 million and a fair value of zero at December 31, 2019 and 2018. The mezzanine loan comprises two tranches, maturing in November 2018 and September 2021. In 2018, the Company sold its remaining syndicated middle market loans and its remaining directly originated middle market loan paid off in excess of its carrying value as a result of which the Company recognized a $390,000 net realized gain for the year ended December 31, 2018. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 24 - SUBSEQUENT EVENTS The Company has evaluated subsequent events through the filing of this report and determined that there have not been any events that have occurred that would require adjustments to or disclosures in the consolidated financial statements. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Valuation And Qualifying Accounts [Abstract] | |
SCHEDULE II Valuation and Qualifying Accounts | SCHEDULE II Exantas Capital Corp. Valuation and Qualifying Accounts (in thousands) Balance at Beginning of Period Charge to Expense Loans Charged off/Recovered Balance at End of Period Allowance for loan and lease loss: Year Ended December 31, 2019 $ 1,401 $ 59 $ — $ 1,460 Year Ended December 31, 2018 $ 5,328 $ (1,595 ) $ (2,332 ) $ 1,401 Year Ended December 31, 2017 $ 3,829 $ 1,499 $ — $ 5,328 |
Schedule IV Mortgage Loans on R
Schedule IV Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2019 | |
Mortgage Loans On Real Estate [Abstract] | |
SCHEDULE IV Mortgage Loans on Real Estate | SCHEDULE IV Exantas Capital Corp. Mortgage Loans on Real Estate At (in thousands, except amount in footnotes) Type of Loan/ Borrower Description / Location Interest Payment Rates Maturity Date (1) Periodic Payment Terms (2) Prior Liens Face Amount of Loans Net Carrying Amount of Loans (3) Principal Amount of Loans Subject to Delinquent Principal or Interest CRE whole loans: CRE whole loans in excess of 3% of the carrying amount of total loans Borrower A Hotel/Phoenix, AZ LIBOR + 3.75% FLOOR 1.92% 2021 I/O — 56,470 56,124 — CRE whole loans less than 3% of the carrying amount of total loans CRE whole loan Multifamily/ Various LIBOR + 2.70% - 4.50% FLOOR 0.60% - 2.50% 2020-2023 I/O — 1,014,003 1,008,838 — CRE whole loan Office/ Various LIBOR + 2.82% - 5.05% FLOOR 0.20% - 2.50% 2020-2023 I/O — 237,104 235,998 — CRE whole loan (4) Retail/ Various LIBOR + 3.25% - 5.65% FLOOR 0.15% - 2.15% 2020-2021 I/O — 142,151 142,093 11,516 CRE whole loan Hotel/ Various LIBOR + 3.90% - 6.25% FLOOR 0.75% - 2.45% 2020-2022 I/O — 132,832 132,561 — CRE whole loan Self-Storage/ Various LIBOR + 3.50% - 4.50% FLOOR 2.00% - 2.50% 2020-2022 I/O — 111,365 110,878 — CRE whole loan Other/ Various LIBOR + 3.50% - 5.00% FLOOR 1.25% - 2.50% 2020-2023 I/O — 74,397 74,105 — Total CRE whole loans 1,768,322 1,760,597 11,516 Mezzanine loans: Mezzanine loans less than 3% of the carrying amount of total loans 42,772 4,700 38,072 Total mezzanine loans 42,772 4,700 38,072 Preferred equity: Preferred Equity less than 3% of the carrying amount of total loans 26,237 26,148 — Total preferred equity 26,237 26,148 — General allowance for loan loss (1,460 ) Total loans $ 1,837,331 $ 1,789,985 $ 49,588 (1) Maturity dates exclude extension options that may be available to borrower. (2) I/O = interest only (3) The net carrying amount of loans includes an allowance for loan loss of $1.5 million at December 31, 2019, all allocated to CRE whole loans. (4) Includes one loan in forbearance at December 31, 2019. The following table reco nciles our CRE loans carrying amounts for the periods indicated (in thousands): Years Ended December 31, 2019 2018 2017 Balance at beginning of year $ 1,568,967 $ 1,346,663 $ 1,444,456 Additions during the period: New loans originated or acquired 874,936 780,556 528,865 Funding of existing loan commitments 43,203 51,365 31,563 Amortization of loan origination fees and costs, net 6,053 5,537 4,813 Protective advances on legacy CRE loans held for sale 645 1,724 442 (Provision for) recovery of loan and lease losses, net (58 ) 1,595 (1,499 ) Settled loans held for sale fair value adjustments — 1,000 12,655 Capitalized interest and loan acquisition costs 3,418 518 — Deductions during the period: Payoff and paydown of loans (682,846 ) (592,438 ) (559,438 ) Foreclosure (18,515 ) — — Loans held for sale payoffs — (12,000 ) (107,492 ) Capitalized origination fees (6,687 ) (8,329 ) (5,760 ) Loans held for sale fair value adjustments 869 (7,224 ) (1,942 ) Balance at end of year $ 1,789,985 $ 1,568,967 $ 1,346,663 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of the Company, majority-owned or controlled subsidiaries and VIEs for which the Company is considered the primary beneficiary. All inter-company transactions and balances have been eliminated in consolidation. |
Variable Interest Entities | Variable Interest Entities A VIE is defined as an entity in which equity investors (i) do not have a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional financial support from other parties. A VIE is required to be consolidated by its primary beneficiary, which is defined as the party that (a) has the power to control the activities that most significantly impact the VIE’s economic performance and (b) has the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company considers the following criteria in determining whether an entity is a VIE: 1. The equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by any parties, including the equity holders. 2. The equity investors lack one or more of the following essential characteristics of a controlling financial interest. a. The direct ability to make decisions about the entity’s activities through voting rights or similar rights. b. The obligation to absorb the expected losses of the entity. c. The right to receive the expected residual returns of the entity. The equity investors have voting rights that are not proportionate to their economic interests, and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. In determining whether the Company is the primary beneficiary of a VIE, the Company reviews governing contracts, formation documents and any other contractual arrangements for any relevant terms and determines the activities that have the most significant impact on the VIE and who has the power to direct those activities. The Company also looks for kick-out rights, protective rights and participating rights as well as any financial or other support provided to the VIE and the reason for that support, and the terms of any explicit or implicit arrangements that may require the Company to provide future support. The Company then makes a determination based on its power to direct the most significant activities of the VIE and/or a financial interest that is potentially significant. In instances when a VIE is owned by both the Company and related parties, the Company considers whether there is a single party in the related party group that meets both the power and losses or benefits criteria on its own as though no related party relationship existed. If one party within the related party group meets both these criteria, such reporting entity is the primary beneficiary of the VIE and no further analysis is needed. If no party within the related party group on its own meets both the power and losses or benefits criteria, but the related party group as a whole meets these two criteria, the determination of primary beneficiary within the related party group is based upon an analysis of the facts and circumstances with the objective of determining which party is most closely associated with the VIE. Determining the primary beneficiary requires significant judgment. The Company continuously analyzes entities in which it holds variable interests, including when there is a reconsideration event, to determine whether such entities are VIEs and whether such potential VIEs should be consolidated or deconsolidated. |
Voting Interest Entities | Voting Interest Entities A voting interest entity is an entity in which the total equity investment at risk is sufficient to enable it to finance its activities independently and the equity holders have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the losses of the entity and the right to receive the residual returns of the entity. The usual condition for a controlling financial interest in a voting interest entity is ownership of a majority voting interest. If the Company has a majority voting interest in a voting interest entity, the entity will generally be consolidated. The Company does not consolidate a voting interest entity if there are substantive participating rights by other parties and/or kick-out rights by a single party or through a simple majority vote. The Company performs on-going reassessments of whether entities previously evaluated under the voting interest framework have become VIEs, based on certain events, and therefore subject to the VIE consolidation framework. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the financial results. Actual results could differ from those estimates. Estimates affecting the accompanying consolidated financial statements include but are not limited to the net realizable and fair values of the Company’s investments and derivatives, the estimated life used on investments to calculate depreciation, amortization and accretion of premiums and discounts, respectively, provisions for loan losses, valuation of servicing assets and the disclosure of contingent liabilities. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and all highly liquid investments with original maturities of three months or less at the time of purchase. At December 31, 2019 and 2018, approximately $77.6 million and $80.4 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, in multiple accounts associated with its parent and respective consolidated subsidiaries, to minimize credit risk exposure. Restricted cash includes required account balance minimums primarily for the Company’s CRE debt securitizations and derivative instruments as well as cash held in the syndicated corporate loan collateralized debt obligations (“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 (in thousands): December 31, 2019 2018 Cash and cash equivalents $ 79,958 $ 82,816 Restricted cash 14,476 12,658 Total cash, cash equivalents and restricted cash shown on the Company’s consolidated statements of cash flows $ 94,434 $ 95,474 |
Investment in Unconsolidated Entities | Investment in Unconsolidated Entities The Company’s non-controlling investments in unconsolidated entities are included in investments in unconsolidated entities on the consolidated balance sheets and may be accounted for under the equity method or the cost method. Under the equity method, capital contributions, distributions, profits and losses of the entities are allocated in accordance with the terms of the entities’ operating agreements. Such allocations may differ from the stated percentage interests, if any, as a result of preferred returns and allocation formulas as described in the entities’ operating agreements. For non-controlling investments in unconsolidated entities qualifying for equity method treatment with substantive profit-sharing arrangements, the hypothetical liquidation at book value (“HLBV”) method may be used for recognizing earnings. Under the HLBV method, earnings are calculated and recognized based on the change in how the unconsolidated entity would allocate and distribute its cash if it were to liquidate the carrying value of its assets and liabilities on the beginning and end dates of the earnings period; excluding contributions made or distributions received. The Company may account for an investment that does not qualify for equity method accounting using the cost method. Under the cost method, the Company records dividend income when declared to the extent it is not considered a return of capital, which is recorded as a reduction of the cost of the investment. |
Investment Securities | Investment Securities The Company classifies its investment portfolio as trading or available-for-sale. The Company, from time to time, may sell any of its investments due to changes in market conditions or in accordance with its investment strategy. The Company reports its investment securities available-for-sale and historically has reported its investment securities, trading at fair value. To determine fair value, the Company uses an independent third-party valuation firm utilizing data available in the market as well as appropriate prepayment, default and recovery rates. The Company evaluates the reasonableness of the valuation it receives by using a dealer quote, bid, or internal model. If there is a material difference between the value indicated by the third-party valuation firm and the dealer quote, bid or internal model, the Company will evaluate the difference, which could result in an updated valuation from the third-party or a revised dealer quote. Based on a prioritization of inputs used in the valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. Historically, any changes in fair value to the Company’s investment securities, trading were recorded on the Company’s consolidated statements of operations as net realized and unrealized gain (loss) on investment securities, trading. Any changes in fair value to the Company’s investment securities available-for-sale are recorded on the Company’s consolidated balance sheets as a component of accumulated other comprehensive income (loss) in stockholders’ equity. On a quarterly basis, the Company evaluates its available-for-sale securities for other-than-temporary impairment. An available-for-sale security is impaired when its fair value has declined below its amortized cost basis. When the estimated fair value of an available-for-sale security is less than amortized cost, the Company will consider whether there is an other-than-temporary impairment in the value of the security. An impairment will be considered other-than-temporary based on consideration of several factors, including (i) if the Company intends to sell the security, (ii) if it is more likely than not that the Company will be required to sell the security before recovering its cost, or (iii) the Company does not expect to recover the security ’ s cost basis (i.e., a credit loss). A credit loss will have occurred if the present value of cash flows expected to be collected from the debt security is less than the amortized cost basis. If the Company intends to sell an impaired debt security or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the impairment is other-than-temporary and will be recognized currently in earnings and equal to the entire difference between fair value and amortized cost. If a credit loss exists, but the Company does not intend nor is it more likely than not that it will be required to sell before recovery, the impairment is other-than-temporary and will be separated into (i) the estimated amount relating to the credit loss, and (ii) the amount relating to all other factors. Only the estimated credit loss amount is recognized currently in earnings, with the remainder of the loss recognized in other comprehensive income. Estimating cash flows and determining whether there is other-than-temporary impairment require management to exercise judgment and make significant assumptions, including, but not limited to, assumptions regarding estimated prepayments, loss assumptions and assumptions regarding changes in interest rates. As a result, actual impairment losses, and the timing of income recognized on these securities, could differ from reported amounts. Investment security transactions are recorded on the trade date. Realized gains and losses on investment securities are determined on the specific identification method. |
Investment Security Interest Income Recognition | Investment Security Interest Income Recognition Interest income on the Company’s mortgage-backed securities (“MBS”) and other asset-backed securities (“ABS”) is accrued using the effective yield method based on the actual coupon rate and the outstanding principal amount of the underlying mortgages or other assets. Premiums and discounts are amortized or accreted into interest income over the expected lives of the securities also using the effective yield method, adjusted for the effects of estimated prepayments. For an investment purchased at par, the effective yield is the contractual interest rate on the investment. If the investment is purchased at a discount or at a premium, the effective yield is computed based on the contractual interest rate increased for the accretion of a purchase discount or decreased for the amortization of a purchase premium. The effective yield method requires the Company to make estimates of future prepayment rates for its investments that can be contractually prepaid before their contractual maturity date so that the purchase discount can be accreted, or the purchase premium can be amortized, over the estimated remaining life of the investment. The prepayment estimates that the Company uses directly impact the estimated remaining lives of its investments. Actual prepayment estimates are reviewed at each quarter end or more frequently if the Company becomes aware of any material information that would lead it to believe that an adjustment is necessary. For MBS and other ABS that are not of high credit quality or can be prepaid in such a way that the Company would not recover substantially all of its initial investment, changes in the original or most recent cash flow projections may result in a prospective change in interest income recognized. For MBS and other ABS that are of high credit quality, changes in the original or most recent cash flow projections may result in an immediate cumulative adjustment in interest income recognized. |
Loans and Loan Interest Income Recognition | Loans The Company acquires loans through direct origination, through the acquisition of participations in CRE loans and had historically acquired corporate leveraged loans in the secondary market and through syndications of newly originated loans. Loans are held for investment; therefore, the Company initially records them at their acquisition price, and subsequently, accounts for them based on their outstanding principal plus or minus unamortized premiums or discounts. The Company may sell a loan held for investment where the credit fundamentals underlying a particular loan have changed in such a manner that the Company’s expected return on investment may decrease. Once the determination has been made by the Company that it no longer will hold the loan for investment, the Company identifies these loans as loans held for sale. Any credit-related impairment considerations prior to the transfer to loans held for sale are accounted for through the allowance for loan losses on the Company’s consolidated balance sheets. At December 31, 2018, the Company has disclosed a certain legacy CRE loan in assets held for sale on its consolidated balance sheets. The remaining legacy CRE loan, which was foreclosed upon, remains held for sale at December 31, 2019. See Note 23 for further discussion. The Company reports its loans held for sale at the lower of amortized cost or fair value. To determine fair value, the Company primarily uses appraisals obtained from third-parties as a practical expedient. Key assumptions used in those appraisals are reviewed by the Company. If there is a material difference between the value provided by the appraiser and information used by the Company to validate the appraisal, the Company will evaluate the difference with the appraiser, which could result in an updated appraisal. The Company may also use the present value of estimated cash flows, market price, if available, or other determinants of the fair value of the collateral less estimated disposition costs. Any determined changes in the fair value of loans held for sale are recorded in fair value adjustments on financial assets held for sale on the Company ’ s consolidated statements of operations. Based on a prioritization of inputs used in the valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. Loan Interest Income Recognition Interest income on loans includes interest at stated rates adjusted for amortization or accretion of premiums and discounts based on the contractual payment terms of the loan. Premiums and discounts are amortized or accreted into income using the effective yield method. If a loan with a premium or discount is prepaid, the Company immediately recognizes the unamortized portion as a decrease or increase to interest income. In addition, the Company defers loan origination and extension fees and loan origination costs and recognizes them over the life of the related loan against interest income using the straight line method, which approximates the effective yield method. Income recognition is suspended for loans at the earlier of the date at which payments become 90 days past due or when, in the opinion of management, a full recovery of principal and income becomes doubtful. When the ultimate collectability of the principal is in doubt, all payments received are applied to principal under the cost recovery method. On the other hand, when the ultimate collectability of the principal is not in doubt, contractual interest is recorded as interest income when received, under the cash method, until an accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. A loan is written off when it is no longer realizable and/or legally discharged. |
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 investments are accounted for as CRE loans held for investment, are carried at cost, net of unamortized loan fees and origination costs, and are 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. |
Allowance for Loan Losses | Allowance for Loan Losses The Company maintains an allowance for loan loss on its loans held for investment. CRE loans that are held for investment are carried at cost, net of unamortized acquisition premiums or discounts, loan fees and origination costs as applicable, unless the loans are deemed impaired. The Company evaluates each loan classified as held for investment for impairment at least quarterly. In connection with this evaluation, the Company assesses the performance of each loan and assigns a risk rating based on the collective evaluation of several factors, including but not limited to: collateral performance relative to underwritten plan, time since origination, current implied and/or reunderwritten loan-to-collateral value (“LTV”) ratios, risk inherent in the loan structure and exit plan. Loans are rated “1” through “5,” from less risk to greatest risk, in connection with this review. Loans with a risk rating of “5” are individually measured for impairment on a quarterly basis. The general reserve, established for loans not determined to be impaired individually, is based on the Company’s loan risk ratings. The Company records a general reserve equal to 1.5% of the aggregate face values of loans with a risk rating of “3,” plus 5.0% of the aggregate face values of loans with a risk rating of “4.” The Company considers a loan to be impaired if at least one of two conditions exists. The first condition is if, based on the Company’s evaluation as part of the loan risk rating process, management believes that a loss event has occurred that makes it probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The second condition is if the loan is deemed to be a troubled-debt restructuring (“TDR”) where a concession has been given to a borrower in financial difficulty. These TDRs may not have an associated specific loan loss allowance if the principal and interest amount is considered recoverable based on current market conditions, appraisals of the underlying collateral, expected collateral performance and/or guarantees made by the borrowers. When a loan is impaired under either of these two conditions, the allowance for loan losses is increased by the amount of the excess of the amortized cost basis of the loan over its fair value. Fair value may be determined based on the present value of estimated cash flows; or market price, if available; or on the fair value of the collateral less estimated disposition costs. When a loan, or a portion thereof, is considered uncollectible and pursuit of collection is not warranted, the Company will record a charge-off or write-down of the loan against the allowance for loan losses. An impaired loan may remain on accrual status during the period in which the Company is pursuing repayment of the loan; however, the loan would be placed on non-accrual status at such time as (i) management believes that scheduled debt service payments will not be met within the coming 12 months; (ii) the loan becomes 90 days past due; (iii) management determines the borrower is incapable of, or has ceased efforts toward, curing the cause of the impairment; or (iv) the net realizable value of the loan’s underlying collateral approximates the Company’s carrying value for such loan. While on non-accrual status, the Company recognizes interest income only when an actual payment is received if a credit analysis supports the borrower’s principal repayment capacity. When a loan is placed on non-accrual, previously accrued interest is reversed from interest income. Loans that experience insignificant payment delays or payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays or payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is re-measured on a quarterly basis by comparing the fair value of the loan to its cost basis. The fair value is determined using unobservable inputs including estimates of selling costs (Level 3). |
Assets and Liabilities Held for Sale | Assets and Liabilities Held for Sale The Company classifies long-lived assets or a disposal group to be sold as held for sale in the period in which all of the following criteria are met: • management, having the authority to approve the action, commits to a plan to sell the asset or the disposal group; • the asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; • an active program to locate a buyer and other actions required to complete the plan to sell the asset or disposal group have been initiated; • the sale of the asset or disposal group is probable, and transfer of the asset or disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond the Company’s control extend the period of time required to sell the asset or disposal group beyond one year; • the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and • actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A long-lived asset or disposal group that is classified as held for sale is initially measured at the lower of its cost or fair value less any costs to sell. Any loss resulting from the transfer of long-lived assets or disposal groups to assets held for sale is recognized in the period in which the held for sale criteria are met. Legacy CRE loans included as assets held for sale were measured at the lower of cost or fair value on the date the legacy CRE loans were transferred to assets held for sale. Any specific loan loss reserves for legacy CRE loans transferred to assets held for sale were measured and charged off on the date of transfer, establishing a new cost basis for the loans. The fair values of assets held for sale are assessed each reporting period and changes in such fair values are reported as an adjustment to the carrying value of the asset or disposal group with an offset to fair value adjustments on financial assets held for sale on the Company’s consolidated statements of operations, to the extent that any subsequent changes in fair value do not exceed the cost basis of the asset or disposal group. Additionally, upon determining that a long-lived asset or disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group, if material, in the line items assets or liabilities held for sale, respectively, on the consolidated balance sheets. See Note 23. |
Discontinued Operations | Discontinued Operations The results of operations of a component or a group of components of the Company that either has been disposed of or is classified as held for sale is reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) for the Company includes net income and the change in net unrealized gains (losses) on available-for-sale securities, derivative instruments used to hedge exposure to interest rate fluctuations and, historically, to protect against declines in the market value of assets resulting from general market. |
Income Taxes | Income Taxes The Company operates in such a manner as to qualify as a REIT under the provisions of the Internal Revenue Code of 1986, as amended (the “Code”); therefore, applicable REIT taxable income is included in the taxable income of its shareholders, to the extent distributed by the Company. To maintain REIT status for federal income tax purposes, the Company is generally required to distribute at least 90% of its REIT taxable income to its shareholders as well as comply with certain other qualification requirements as defined under the Code. As a REIT, the Company is not subject to federal corporate income tax to the extent that it distributes 100% of its REIT taxable income each year. Taxable income, from non-REIT activities managed through the Company’s taxable REIT subsidiaries (“TRSs”), are subject to federal, state and local income taxes. The Company’s TRS’ income taxes are accounted for under the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for the temporary differences between the financial reporting basis and tax basis of assets and liabilities. The Company evaluates the realizability of its deferred tax assets and liabilities and recognizes a valuation allowance if, based on available evidence, it is more likely than not that some or all of its deferred tax assets will not be realized. In evaluating the realizability of the deferred tax asset or liability, the Company will consider the expected future taxable income, existing and projected book to tax differences as well as tax planning strategies. This analysis is inherently subjective, as it is based on forecasted earning and business and economic activity. Changes in estimates of deferred tax asset realizability, if any, are included in income tax (expense) benefit on the consolidated statements of operations. In addition, several of the Company’s foreign TRSs, are organized as exempted companies incorporated with limited liability under the laws of the Cayman Islands. The Company also has TRSs incorporated in Ireland, which are generally exempt from federal and state income tax at the corporate level because their activities in the United States are limited to trading in stock and securities for their own account. Therefore, despite their status as TRSs, they generally will not be subject to corporate tax on their earnings and no provision for income taxes is required. However, because they are either controlled foreign corporations or passive foreign investment companies (in which the Company has made a Qualified Electing Fund election), the Company will generally be required to include its share of current taxable income from the foreign TRSs in its calculation of REIT taxable income. The Company accounts for taxes assessed by a governmental authority that is directly imposed on a revenue-producing transaction (e.g., sales, use, value added) on a net (excluded from revenue) basis. The Company established a full valuation allowance against its net deferred tax asset of approximately $32.9 million (tax effected $9.9 million) at December 31, 2019 as the Company believed it was more likely than not that some or all of the deferred tax assets would not be realized. This assessment was based on the Company’s cumulative historical losses and uncertainties as to the amount of taxable income that would be generated in future years. The Company evaluates and recognizes tax positions only if it is more likely than not that the position will be sustained upon examination by the appropriate taxing authority. A tax position that meets this threshold is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company classifies any tax penalties as other operating expenses and any interest as interest expense. The Company does not have any unrecognized tax benefits that would affect the Company’s financial position. U.S. Tax Cuts and Jobs Act In December 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (“TCJA”). The TCJA makes broad and complex changes to the Code, including, but not limited to: (i) reducing the U.S. federal corporate tax rate from 35% to 21%; (ii) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (iii) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (iv) requiring a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations; (v) eliminating the corporate alternative minimum tax (“AMT”) and changing how existing AMT credits can be realized; (vi) creating the base erosion anti-abuse tax, a new minimum tax; (vii) creating a new limitation on deductible interest expense; and (viii) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017. The SEC staff issued guidance which provides insight on accounting for the tax effects of the TCJA. The guidance provides a measurement period that should not extend beyond one year from the TCJA enactment date for companies to complete the accounting under Financial Accounting Standards Board (“FASB”) guidance. In accordance with the SEC guidance, a company must reflect the income tax effects of those aspects of the TCJA for which the accounting under the FASB guidance is complete. To the extent that a company’s accounting for certain income tax effects of the TCJA is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply the FASB guidance on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the TCJA. In 2018, the Company completed its analysis of the provisions items of the TCJA under the SEC guidance, resulting in immaterial adjustments primarily related to cumulative temporary differences. |
Stock Based Compensation | Stock Based Compensation Issuances of restricted stock and options are initially measured at fair value on the grant date and expensed monthly on a straight-line basis over the service period to equity compensation expense on the consolidated statements of operations, with a corresponding entry to additional paid-in capital on the consolidated balance sheets. Effective January 1, 2019, in accordance with updated guidance under GAAP, the fair value of all unvested issuances of restricted stock and options is not remeasured after the initial grant date. Previously, the Company adjusted unvested issuances of restricted stock and options to the Manager and to non-employees quarterly to reflect changes in fair value. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The Company calculates basic income per share by dividing net income for the period by the weighted average number of shares of its common stock, including vested restricted stock and participating securities, outstanding for that period. Diluted income per share takes into account the effect of dilutive investments, such as stock options, unvested restricted stock and convertible notes, but uses the treasury stock method or average share price for the period in determining the number of incremental shares that are to be added to the weighted average number of shares outstanding. |
Derivative Instruments | Derivative Instruments The Company’s policies permit it to enter into derivative contracts, including interest rate swaps and interest rate caps, to add stability to its interest expense and to manage its exposure to interest rate movements or other identified risks. The Company has designated these transactions as cash flow hedges. The contracts or hedge instruments are evaluated at inception and at subsequent consolidated balance sheet dates to determine if they qualify for hedge accounting, which requires that the Company recognize all derivatives on the consolidated balance sheets at fair value. The Company records changes in the estimated fair value of the derivative in other comprehensive income to the extent that it is effective. Any ineffective portion of a derivative’s change in fair value is immediately recognized in earnings. The Company may also enter into forward currency contracts. Forward contracts represent future commitments to either purchase or to deliver loans, securities or a quantity of a currency at a predetermined future date, at a predetermined rate or price and are used to manage interest rate risk on loan commitments and mortgage loans held for sale as well as currency risk with respect to the Company’s long positions in foreign currency-denominated investment securities. Derivative assets and liabilities, are reported at fair value, and are valued by a third-party pricing agent using an income approach with models that use, as their primary inputs, readily observable market parameters. This valuation process considers factors including interest rate yield curves, time value, credit factors and volatility factors. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparties. The Company assesses the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and, if material, categorizes those derivatives within Level 3 of the fair value hierarchy. |
Fair Value Measurement | Fair Value Measurements In analyzing the fair value of its investments accounted for on a fair value basis, the Company uses the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company determines fair value based on quoted prices when available or, if quoted prices are not available, through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The hierarchy defines three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices for identical instruments in active markets. Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value inputs are observable. Level 3 - Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable, for example, when there is little or no market activity for an investment at the end of the period, unobservable inputs may be used. The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The determination of where an asset or liability falls in the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter; depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. Transfers between levels are determined by the Company at the end of the reporting period. However, the Company expects that changes in classifications between levels will be rare. Assets or liabilities that are both designated for sale or disposition and reported as discontinued operations are disclosed in Note 23. |
Recent Accounting Standards | Recent Accounting Standards Accounting Standards Adopted in In June 2018, the FASB issued guidance to simplify the accounting for share-based payment transactions for acquiring goods and services from non-employees by including these payments in the scope of the guidance for share-based payments to employees. In accordance with the guidance, the Company’s unvested issuances to the Manager and to non-employees granted prior to the January 1, 2019 adoption date were remeasured at fair value as of the adoption date with no subsequent remeasurement. Unvested issuances will continue to be amortized on a straight-line basis over the service period. In February 2018, the FASB issued guidance to allow a reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the TCJA. Adoption did not have a material impact on the Company’s consolidated financial statements. 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. In October 2018, the FASB updated the guidance to add a benchmark interest rate permitted for hedge accounting purposes. Adoption did not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued guidance requiring lessees to recognize a lease liability and a right-of-use asset for all leases. Lessor accounting remains largely unchanged. The guidance requires new qualitative and quantitative disclosures to help financial statement users better understand the timing, amount and uncertainty of cash flows arising from leases. Adoption did not have a material impact on the Company’s consolidated financial statements. Accounting Standards to be Adopted in Future Periods In August 2018, the FASB issued guidance to modify the fair value measurement disclosure requirements, including: disclosures on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, the policy for timing of transfers between levels and the narrative description of measurement uncertainty. The guidance is effective for annual reporting periods beginning after December 15, 2019, and interim periods within that reporting period. 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 financial assets at amortized cost 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. In June 2016, the FASB issued guidance that 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 the Company is currently under the other-than-temporary impairment model. It also simplifies the accounting model for credit-impaired debt securities and loans. In November 2018, the FASB issued amendments to the guidance, including the clarification that operating leases are excluded from the scope of the guidance. This guidance is effective for annual reporting periods beginning after December 15, 2019, and interim periods within that reporting period. The new guidance gives an entity flexibility to select an appropriate method to measure the estimate for expected credit losses, provided that such estimates be based on relevant information about past events, including historical losses, current portfolio and market conditions, and reasonable and supportable forecasts for the duration of each asset that are applied consistently over time. The Company engaged a third-party advisor to assist in the implementation of the new guidance and provide a modeling software and market loan loss database. The Company expects to utilize a probability of default and loss given default methodology over a reasonable and supportable forecast period, after which it will revert immediately to its historical mean loss ratio, utilizing a blended approach sourced from its own historical losses and the market losses from the third party’s database, to be applied for the remaining estimable period. The expected loss model requires the Company to make significant judgements, including: (i) the selection of a reasonable and supportable forecast period, (ii) projections for the amounts and timing of future fundings of committed balances and prepayments on CRE investments, (iii) the determination of the risk characteristics in which to pool financial assets, and (iv) the appropriate historical loss data to utilize in the model. The Company expects to utilize a one year reasonable and supportable forecast period in which it will apply the probability of default and loss given default methodology. CRE loans will be pooled based on the underlying property type collateralizing the respective loans. The Company expects to utilize its full, 13 year underwriting history in the determination of historical losses, along with the market loss history of a selected population of loans from the third party’s database that were similar to its loan types, loan sizes, durations, interest rate structure and general LTV profiles. Upon adoption on January 1, 2020, the Company expects to record an initial current expected credit losses (“CECL”) reserve of approximately $4.5 million, of which $3.0 million, or $0.10 per share, will be recorded as a charge to retained earnings. The estimated CECL reserve represents |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2018 and 2017 consolidated financial statements to conform to the 2019 presentation. These reclassifications had no effect on the previously reported net cash provided by financing activities in the consolidated statements of cash flows. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Reconciliation of cash, cash equivalents and restricted cash | 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 (in thousands): December 31, 2019 2018 Cash and cash equivalents $ 79,958 $ 82,816 Restricted cash 14,476 12,658 Total cash, cash equivalents and restricted cash shown on the Company’s consolidated statements of cash flows $ 94,434 $ 95,474 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
VIE, Primary Beneficiary | |
Schedule of variable interest entities | The following table shows the classification and carrying values of assets and liabilities of the Company’s Consolidated VIEs at December 31, 2019 (in thousands): CRE Securitizations Other Total ASSETS Restricted cash $ — $ 532 $ 532 Accrued interest receivable 3,780 — 3,780 CRE loans, pledged as collateral (1) 957,045 — 957,045 Principal paydowns receivable 19,239 — 19,239 Other assets 25 — 25 Total assets (2) $ 980,089 $ 532 $ 980,621 LIABILITIES Accounts payable and other liabilities $ 175 $ — $ 175 Accrued interest payable 897 — 897 Borrowings 746,439 — 746,439 Total liabilities $ 747,511 $ — $ 747,511 (1) Excludes allowance for loan losses. (2) Assets of each of the Consolidated VIEs may only be used to settle the obligations of each respective VIE. |
VIE, Not Primary Beneficiary | |
Schedule of variable interest entities | The following table shows the classification, carrying value and maximum exposure to loss with respect to the Company’s unconsolidated VIEs at December 31, 2019 (in thousands): Unsecured Junior Subordinated Debentures C40 Prospect Hackensack Santa Clarita Total Maximum Exposure to Loss ASSETS Accrued interest receivable $ 159 $ 178 $ — $ 38 $ 375 $ — CRE loans — — 20,407 5,741 26,148 $ 26,148 Investment securities available-for-sale (1) — 22,647 — 22,647 $ 22,130 Investments in unconsolidated entities 1,548 — — — 1,548 $ 1,548 Total assets 1,707 22,825 20,407 5,779 50,718 LIABILITIES Accrued interest payable 265 — — — 265 N/A Borrowings 51,548 — — — 51,548 N/A Total liabilities 51,813 — — — 51,813 N/A Net (liability) asset $ (50,106 ) $ 22,825 $ 20,407 $ 5,779 $ (1,095 ) 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 INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of other significant noncash transactions | The following table summarizes the Company’s supplemental disclosure of cash flow information (in thousands): Years Ended December 31, 2019 2018 2017 Non-cash continuing financing activities include the following: Proceeds from the private exchange of convertible senior notes $ — $ — $ 22,161 Payments on the private exchange of convertible senior notes $ — $ — $ (22,161 ) Distributions on common stock accrued but not paid $ 8,767 $ 5,540 $ 1,571 Distributions on preferred stock accrued but not paid $ 1,725 $ 1,725 $ 4,010 |
RESTRICTED CASH (Tables)
RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of restricted cash | The following table summarizes the Company’s restricted cash (in thousands): December 31, 2019 2018 Restricted cash: Cash held by consolidated CRE securitizations, CDOs and CLOs $ 532 $ 6,190 Restricted cash pledged with minimum reserve balance requirements 22 21 Margin posted on interest rate swaps and repurchase agreements 13,922 6,447 Total $ 14,476 $ 12,658 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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) Premium, net (1) Amortized Cost Allowance for Loan Losses Carrying Value Contractual Interest Rates (2) Maturity Dates (3)(4)(5) At December 31, 2019: CRE loans held for investment: Whole loans (6)(7) 112 $ 1,768,322 $ (7,725 ) $ 1,760,597 $ (1,460 ) $ 1,759,137 1M LIBOR plus 2.70% to 1M LIBOR plus 6.25% January 2020 to October 2023 Mezzanine loan 1 4,700 — 4,700 — 4,700 10.00% June 2028 Preferred equity investments (7)(8)(9) 2 26,237 (89 ) 26,148 — 26,148 11.00% to 11.50% June 2022 to April 2023 Total CRE loans held for investment $ 1,799,259 $ (7,814 ) $ 1,791,445 $ (1,460 ) $ 1,789,985 At December 31, 2018: CRE loans held for investment: Whole loans (6)(7) 79 $ 1,538,759 $ (9,646 ) $ 1,529,113 $ (1,401 ) $ 1,527,712 1M LIBOR plus 2.70% to 1M LIBOR plus 6.25% January 2019 to January 2022 Mezzanine loan 1 4,700 — 4,700 — 4,700 10.00% June 2028 Preferred equity investment (7)(8)(9) 1 19,718 (163 ) 19,555 — 19,555 11.50% April 2023 Total CRE loans held for investment $ 1,563,177 $ (9,809 ) $ 1,553,368 $ (1,401 ) $ 1,551,967 (1) Amounts include unamortized loan origination fees of $9.1 million and $9.6 million and deferred amendment fees of $72,000 and $171,000 at December 31, 2019 and 2018, respectively. Additionally, the amounts include unamortized loan acquisition costs of $1.3 million at December 31, 2019. There were no unamortized loan acquisition costs at December 31, 2018. (2) LIBOR refers to the London Interbank Offered Rate. (3) Maturity dates exclude contractual extension options, subject to the satisfaction of certain terms, that may be available to the borrowers. (4) 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 December 31, 2019 and 2018. (5) Maturity dates include one whole loan with an original maturity date in January 2020 that was granted a six month extension in January 2020. (6) Substantially all loans are pledged as collateral under various borrowings at December 31, 2019 and 2018. (7) Whole loans had $98.0 million and $105.7 million in unfunded loan commitments at December 31, 2019 and 2018, respectively. Preferred equity investments had $3.0 million in unfunded commitments at December 31, 2019. There were no preferred equity investment unfunded commitments at December 31, 2018. These unfunded loan commitments are advanced as the borrowers formally request additional funding and meet certain benchmarks, as permitted under the loan agreement, and any necessary approvals have been obtained. (8) The interest rate on the Company’s preferred equity investments each pay at 8.00%. The remaining interest is deferred until maturity. (9) Beginning in April 2023, the Company has the right to unilaterally force the sale of the Prospect Hackensack’s underlying property. Beginning in June 2022, the Company has the right to unilaterally force the sale of Santa Clarita’s underlying property. |
Summary of Contractual Maturities of Commercial Real Estate Loans at Amortized Cost | The following is a summary of the contractual maturities of the Company’s CRE loans held for investment, at amortized cost (in thousands, except amounts in the footnotes): Description 2020 2021 2022 and Thereafter Total At December 31, 2019: Whole loans (1) $ 319,868 $ 737,478 $ 691,747 $ 1,749,093 Mezzanine loan — — 4,700 4,700 Preferred equity investment — — 26,148 26,148 Total CRE loans (1) $ 319,868 $ 737,478 $ 722,595 $ 1,779,941 Description 2019 2020 2021 and Thereafter Total At December 31, 2018: Whole loans (1) $ 227,851 $ 450,596 $ 839,151 $ 1,517,598 Mezzanine loan — — 4,700 4,700 Preferred equity investment — — 19,555 19,555 Total CRE loans (1) $ 227,851 $ 450,596 $ 863,406 $ 1,541,853 (1) 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 December 31, 2019 and 2018. (2) At December 31, 2019, the amortized costs of the CRE whole loans, summarized by contractual maturity assuming full exercise of the extension options, were $105.5 million, $68.0 million and $1.6 billion in 2020, 2021 and 2022 and thereafter, respectively. At December 31, 2018, the amortized costs of the CRE whole loans, summarized by contractual maturity assuming full exercise of the extension options, were $10.4 million, $182.4 million and $1.3 billion in 2019, 2020 and 2021 and thereafter, respectively. |
FINANCING RECEIVABLES (Tables)
FINANCING RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Allowance for loan losses and recorded investments in loans | The following tables show the activity in the allowance for loan losses for the years ended December 31, 2019 and 2018 and the allowance for loan losses and recorded investments in loans at December 31, 2019 and 2018 (in thousands, except amount in the footnotes): Years Ended December 31, 2019 2018 Commercial Real Estate Loans Commercial Real Estate Loans Allowance for loan losses: Allowance for loan losses at beginning of year $ 1,401 $ 5,328 Provision for (recovery of) loan losses, net (1) 59 (1,595 ) Loans charged-off — (2,332 ) Allowance for loan losses at end of year $ 1,460 $ 1,401 (1) Excludes the recovery of loan losses on one bank loan with no amortized cost or carrying value at December 31, 2019 and 2018 that received a payment of approximately $1,000 during the year ended December 31, 2019. December 31, 2019 2018 Commercial Real Estate Loans Commercial Real Estate Loans Allowance for loan losses ending balance: Individually evaluated for impairment $ — $ — Collectively evaluated for impairment $ 1,460 $ 1,401 Loans: Amortized cost ending balance: Individually evaluated for impairment (1) $ 30,848 $ 24,255 Collectively evaluated for impairment $ 1,760,597 $ 1,529,113 (1) The Company’s mezzanine loan and preferred equity investments are evaluated individually for impairment. |
Credit quality indicators for bank loans and commercial real estate loans | 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 • • 2 • • 3 • • 4 • • 5 • may be • The property has a material vacancy rate • 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 investments are evaluated individually for impairment. Credit risk profiles of CRE loans, at amortized cost, and a legacy CRE loan 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 Held for Sale (2) Total At December 31, 2019: Whole loans $ — $ 1,660,274 $ 96,475 $ 3,848 $ — $ — $ 1,760,597 Mezzanine loan (3) — 4,700 — — — — 4,700 Preferred equity investments (3) — 26,148 — — — — 26,148 Total $ — $ 1,691,122 $ 96,475 $ 3,848 $ — $ — $ 1,791,445 At December 31, 2018: Whole loans $ — $ 1,447,206 $ 77,067 $ 4,840 $ — $ — $ 1,529,113 Mezzanine loan (3) — 4,700 — — — — 4,700 Preferred equity investment (3) — 19,555 — — — — 19,555 Legacy CRE loan held for sale (4) — — — — — 17,000 17,000 Total $ — $ 1,471,461 $ 77,067 $ 4,840 $ — $ 17,000 $ 1,570,368 (1) Includes one whole loan, with an amortized cost of $11.5 million that was in maturity default at December 31, 2019 and 2018. The loan is performing with respect to debt service due in accordance with a forbearance agreement at December 31, 2019 and 2018. (2) Includes one legacy CRE loan that was in default with a total carrying value of $17.0 million at December 31, 2018. (3) The Company’s mezzanine loan and preferred equity investments are evaluated individually for impairment. (4) In November 2019, the Company foreclosed on the remaining legacy CRE loan held for sale (see Note 23). |
Loan portfolios aging analysis | The following table presents the CRE loan portfolio aging analysis as of the dates indicated for CRE loans, at amortized cost, and a legacy CRE loan held for sale at the lower of cost or fair value (in thousands, except amounts in footnotes): 30-59 Days 60-89 Days Greater than 90 Days (1)(2) Total Past Due Current Total Loans Receivable Total Loans > 90 Days and Accruing (1) At December 31, 2019: Whole loans $ — $ — $ 11,503 $ 11,503 $ 1,749,094 $ 1,760,597 $ 11,503 Mezzanine loan — — — — 4,700 4,700 — Preferred equity investments — — — — 26,148 26,148 — Total $ — $ — $ 11,503 $ 11,503 $ 1,779,942 $ 1,791,445 $ 11,503 At December 31, 2018: Whole loans $ — $ — $ 11,516 $ 11,516 $ 1,517,597 $ 1,529,113 $ 11,516 Mezzanine loan — — — — 4,700 4,700 — Preferred equity investment — — — — 19,555 19,555 — Legacy CRE loan held for sale (3) — — 17,000 17,000 — 17,000 — Total $ — $ — $ 28,516 $ 28,516 $ 1,541,852 $ 1,570,368 $ 11,516 (1) Includes one whole loan, with an amortized cost of $11.5 million, that was in maturity default at December 31, 2019 and 2018. The loan is performing with respect to debt service due in accordance with a forbearance agreement at December 31, 2019 and 2018. During the years ended December 31, 2019, 2018 and 2017, the Company recognized interest income of $747,000, $621,000 and $610,000, respectively, on this whole loan. (2) Includes one legacy CRE loan that was in default with a total carrying value of $17.0 million at December 31, 2018. (3) In November 2019, the Company foreclosed on the remaining legacy CRE loan held for sale (see Note 23). |
INVESTMENT SECURITIES AVAILAB_2
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Available For Sale Securities [Abstract] | |
Available-for-sale securities | The following table summarizes the Company’s investment securities available-for-sale, including those pledged as collateral (in thousands, except amounts in the footnote): Amortized Cost Unrealized Gains Unrealized Losses Fair Value (1) At December 31, 2019: CMBS, fixed-rate $ 132,235 $ 6,596 $ (792 ) $ 138,039 CMBS, floating-rate 382,659 995 (979 ) 382,675 Total $ 514,894 $ 7,591 $ (1,771 ) $ 520,714 At December 31, 2018: CMBS, fixed-rate $ 121,487 $ 559 $ (2,307 ) $ 119,739 CMBS, floating-rate 301,132 253 (2,126 ) 299,259 Total $ 422,619 $ 812 $ (4,433 ) $ 418,998 (1) At December 31, 2019 and 2018, investment securities available-for-sale with fair values of $466.9 million and $388.4 million, respectively, 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 (dollars in thousands, except amounts in footnotes): December 31, 2019 December 31, 2018 Amortized Cost (1) Fair Value (1) Weighted Average Coupon (2) Amortized Cost (1) Fair Value (1) Weighted Average Coupon (2) Less than one year (3) $ 187,943 $ 188,005 4.77% $ 126,446 $ 126,014 5.76% Greater than one year and less than five years 80,937 80,925 4.85% 98,220 97,083 5.21% Greater than five years and less than ten years 246,014 251,784 3.83% 197,953 195,901 4.06% Total $ 514,894 $ 520,714 4.30% $ 422,619 $ 418,998 4.76% ( 1 ) Includes CMBS positions subject to other-than-temporary-impairment that have no stated coupon rates that are excluded from the calculation of the weighted average coupon rate. The position with less than one year of projected life had no amortized cost or fair value at December 31, 2019 and 2018. The positions with greater than one year and less than five years of projected lives had amortized costs of $106,000 and $105,000 and no fair values at December 31, 2019 and 2018, respectively. There were no positions subject to other-than-temporary-impairment with projected lives of greater than five years and less than ten years at December 31, 2019 and 2018. (2) The weighted average coupon rate is based on the face values of the associated securities. (3) The Company expects that the payoff dates of these CMBS 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 lots 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 (dollars in thousands): Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Number of Lots Fair Value Unrealized Losses Number of Lots Fair Value Unrealized Losses Number of Lots At December 31, 2019: CMBS $ 48,618 $ (181 ) 13 $ 72,013 $ (1,590 ) 21 $ 120,631 $ (1,771 ) 34 At December 31, 2018: CMBS $ 329,441 $ (4,001 ) 49 $ 6,757 $ (432 ) 7 $ 336,198 $ (4,433 ) 56 |
Summary of investment securities available-for-sale | The following table summarizes the Company’s sales and redemptions of investment securities available-for-sale for the years ended December 31, 2019, 2018 and 2017 (dollars in thousands): Positions Sold Positions Redeemed Par Amount Sold/Redeemed Amortized Cost Realized Gain (Loss) Proceeds Year Ended December 31, 2019: CMBS 1 — $ 634 $ 634 $ 4 $ 638 Total 1 — $ 634 $ 634 $ 4 $ 638 Year Ended December 31, 2018: CMBS 1 — $ 14,929 $ 11,676 $ 352 $ 12,028 ABS 2 — 411 265 (217 ) 48 Total 3 — $ 15,340 $ 11,941 $ 135 $ 12,076 Year Ended December 31, 2017: CMBS 2 — $ 7,350 $ 6,650 $ (238 ) $ 6,412 ABS - structured notes 3 — 24,267 19,258 632 17,608 ABS 5 — 8,306 4,319 1,356 5,675 RMBS 3 — 153,519 1,274 (158 ) 1,116 Total 13 — $ 193,442 $ 31,501 $ 1,592 $ 30,811 |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Schedule of unconsolidated entities | The following table summarizes the Company’s investments in unconsolidated entities at December 31, 2019 and 2018 and equity in earnings of unconsolidated entities for the years ended December 31, 2019, 2018 and 2017 (dollars in thousands, except amount in the footnotes): Equity in Earnings of Unconsolidated Entities December 31, Years Ended December 31, Ownership % at December 31, 2019 2019 2018 2019 2018 2017 Pelium Capital (1) — % $ — $ — $ — $ (182 ) $ (1,856 ) RCM Global LLC (2) — % — — — (12 ) (274 ) Investment in LCC Preferred Stock (3) — % — — — 411 41,465 RRE VIP Borrower, LLC (4) — % — — — — 45 Pearlmark Mezzanine Realty Partners IV, L.P. (5) — % — — — — 165 Subtotal — — — 217 39,545 Investment in RCT I and II (6) 3.0 % 1,548 1,548 100 96 81 Total $ 1,548 $ 1,548 $ 100 $ 313 $ 39,626 (1) During the year ended December 31, 2018, the Company received distributions of $10.4 million on its investment in Pelium Capital Partners, L.P. (“Pelium Capital”). In December 2018, Pelium Capital was fully liquidated. (2) In December 2018, RCM Global LLC was fully liquidated. (3) The Company’s investment in LEAF Commercial Capital, Inc. (“LCC”) liquidated in July 2017 as a result of the sale of LCC. Earnings for the year ended December 31, 2018 were related to the receipt of a distribution of funds formerly held in escrow accounts established as part of the sale. (4) The Company sold its investment in RRE VIP Borrower, LLC in December 2014. Earnings for the year ended December 31, 2017 was related to insurance premium refunds with respect to the underlying sold properties in the portfolio. (5) The Company sold its investment in Pearlmark Mezzanine Realty Partners IV, L.P. (“Pearlmark Mezz”) in May 2017. (6) During the years ended December 31, 2019, 2018 and 2017, dividends from the investments in RCT I and RCT II’s common shares were recorded in other revenue. See Note 10 for the disclosures on the associated unsecured junior subordinated debentures. |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Information with respect to borrowings | Certain information with respect to the Company’s borrowings is summarized in the following table (dollars in thousands, except amounts in footnotes): Principal Outstanding Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Borrowing Rate Weighted Average Remaining Maturity Value of Collateral At December 31, 2019: XAN 2018-RSO6 Senior Notes $ 177,118 $ 1,352 $ 175,766 3.17% 15.5 years $ 293,890 XAN 2019-RSO7 Senior Notes 575,679 5,007 570,672 3.03% 16.3 years 687,037 Unsecured junior subordinated debentures 51,548 — 51,548 5.90% 16.7 years — 4.50% Convertible Senior Notes 143,750 10,137 133,613 4.50% 2.6 years — 8.00% Convertible Senior Notes 21,182 9 21,173 8.00% 15 days — CRE - term repurchase facilities (1) 547,619 2,714 544,905 3.71% 1.2 years 705,221 CMBS - short term repurchase agreements (2) 374,900 — 374,900 2.87% 21 days 484,398 Total $ 1,891,796 $ 19,219 $ 1,872,577 3.45% 7.4 years $ 2,170,546 Principal Outstanding Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Borrowing Rate Weighted Average Remaining Maturity Value of Collateral At December 31, 2018: RCC 2017-CRE5 Senior Notes $ 109,250 $ 1,121 $ 108,129 3.76% 15.6 years $ 228,031 XAN 2018-RSO6 Senior Notes 397,452 4,536 392,916 3.55% 16.5 years 514,225 Unsecured junior subordinated debentures 51,548 — 51,548 6.61% 17.7 years — 4.50% Convertible Senior Notes 143,750 13,504 130,246 4.50% 3.6 years — 8.00% Convertible Senior Notes 21,182 238 20,944 8.00% 1.0 year — CRE - term repurchase facilities (1) 512,716 5,269 507,447 4.47% 2.0 years 696,215 Trust certificates - term repurchase facility (3) 47,451 279 47,172 6.41% 1.7 years 118,780 CMBS - short term repurchase agreements (2) 295,821 — 295,821 3.63% 19 days 395,868 Total $ 1,579,170 $ 24,947 $ 1,554,223 4.21% 6.9 years $ 1,953,119 (1) Principal outstanding includes accrued interest payable of $810,000 and $911,000 at December 31, 2019 and 2018, respectively. (2) Principal outstanding includes accrued interest payable of $470,000 and $773,000 at December 31, 2019 and 2018, respectively. (3) Principal outstanding includes accrued interest payable of $118,000 at December 31, 2018. |
Schedule of securitizations | The following table sets forth certain information with respect to the Company’s consolidated securitizations at December 31, 2019 (in thousands): Closing Date Maturity Date End of Designated Principal Reinvestment Period (1) Total Note Paydowns from Closing Date through December 31, 2019 XAN 2018-RSO6 June 2018 June 2035 December 2020 $ 220,334 XAN 2019-RSO7 April 2019 April 2036 April 2022 $ 132 (1) The designated principal reinvestment period is the period in which principal repayments can be utilized to purchase loans held outside of the respective securitization that represent the funded commitments of existing collateral in the respective securitization that were not funded as of the date the respective securitization was closed. |
Schedule of convertible senior notes | The following table summarizes the Convertible Senior Notes at December 31, 2019 (dollars in thousands, except the conversion prices and amounts in the footnotes): Principal Outstanding Borrowing Rate Effective Rate (1) Conversion Rate (2)(3) Conversion Price (3) Maturity Date 4.50% Convertible Senior Notes $ 143,750 4.50 % 7.43 % 83.1676 $ 12.02 August 15, 2022 8.00% Convertible Senior Notes $ 21,182 8.00 % 9.13 % 46.8604 $ 21.34 January 15, 2020 (1) Includes the amortization of the market discounts and deferred debt issuance costs, if any, for the Convertible Senior Notes recorded in interest expense on the consolidated statements of operations. (2) Represents the number of shares of common stock per $1,000 principal amount of the Convertible Senior Notes’ principal outstanding, subject to adjustment as provided in the Second Supplemental Indenture (the “8.00% Convertible Senior Notes Indenture”) and the Third Supplemental Indenture (the “4.50% Convertible Senior Notes Indenture”). (3) The conversion rate and conversion price of the 4.50% Convertible Senior Notes at December 31, 2019 are adjusted to reflect quarterly cash dividends in excess of a $0.10 dividend threshold, as defined in the 4.50% Convertible Senior Notes Indenture. The split-adjusted dividend threshold of $0.64, as defined in the 8.00% Convertible Senior Notes Indenture, was not exceeded for the years ended December 31, 2019, 2018 and 2017. |
Repurchase and mortgage finance facilities | The following table sets forth certain information with respect to the Company’s repurchase agreements (dollars in thousands, except amounts in footnotes): December 31, 2019 December 31, 2018 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) $ 225,217 $ 291,903 28 3.70% $ 154,478 $ 226,530 13 4.33% Morgan Stanley Bank, N.A. (3) — — — —% 37,113 62,457 3 5.09% Barclays Bank PLC (4) 111,881 145,035 14 3.99% 240,416 308,389 11 4.51% JPMorgan Chase Bank, N.A. (5) 207,807 268,283 17 3.56% 75,440 98,839 5 4.30% Trust Certificates - Term Repurchase Facilities RSO Repo SPE Trust 2017 (6) — — — —% 47,172 118,780 2 6.41% CMBS - Short-Term Repurchase Agreements Deutsche Bank Securities Inc. 37,141 57,331 6 3.13% 7,305 9,158 5 3.98% JP Morgan Securities LLC 33,703 42,075 13 2.87% 42,040 73,066 13 3.57% Barclays Capital Inc. 87,643 112,939 7 2.82% — — — —% RBC Capital Markets, LLC 34,829 47,081 5 2.96% 246,476 313,644 33 3.64% RBC (Barbados) Trading Bank Corporation 181,584 224,972 30 2.82% — — — —% Total $ 919,805 $ 1,189,619 $ 850,440 $ 1,210,863 (1) Outstanding borrowings include accrued interest payable. (2) Includes $607,000 and $1.6 million of deferred debt issuance costs at December 31, 2019 and 2018, respectively. (3) Includes $167,000 of deferred debt issuance costs at December 31, 2018. There were no deferred debt issuance costs at December 31, 2019. (4) Includes $817,000 and $1.5 million of deferred debt issuance costs at December 31, 2019 and 2018, respectively. (5) Includes $1.3 million and $2.0 million of deferred debt issuance costs at December 31, 2019 and 2018, respectively. (6) Includes $204,000 of deferred debt issuance costs at December 31, 2018. There were no deferred debt issuance costs at December 31, 2019. |
Schedule of amount at risk under credit facility | The following table shows information about the amount at risk under the repurchase facilities (dollars in thousands): Amount at Risk (1) Weighted Average Remaining Maturity Weighted Average Interest Rate At December 31, 2019: CRE - Term Repurchase Facilities Wells Fargo Bank, N. A. $ 67,007 203 days 3.70% Barclays Bank PLC $ 32,967 1.3 years 3.99% JPMorgan Chase Bank, N. A. $ 60,159 1.8 years 3.56% CMBS - Short-Term Repurchase Agreements Deutsche Bank Securities Inc. $ 20,329 42 days 3.13% JP Morgan Securities LLC $ 8,512 18 days 2.87% Barclays Capital Inc. $ 25,532 17 days 2.82% RBC Capital Markets, LLC $ 12,341 17 days 2.96% RBC (Barbados) Trading Bank Corporation $ 43,722 20 days 2.82% (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 (in thousands): Total 2020 2021 2022 2023 2024 and Thereafter At December 31, 2019: CRE securitizations $ 752,797 $ — $ — $ — $ — $ 752,797 Unsecured junior subordinated debentures 51,548 — — — — 51,548 4.50% Convertible Senior Notes 143,750 — — 143,750 — — 8.00% Convertible Senior Notes 21,182 21,182 — — — — Repurchase and credit facilities (1) 922,519 600,724 321,795 — — — Total $ 1,891,796 $ 621,906 $ 321,795 $ 143,750 $ — $ 804,345 (1) Includes accrued interest payable in the balances of principal outstanding. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of restricted common stock transactions | The following table summarizes the Company’s restricted common stock transactions: Manager Non-Employee Directors Non- Employees (1) Former Employees Total Unvested shares at January 1, 2019 — 30,234 386,628 5,809 422,671 Issued 13,307 27,728 196,198 — 237,233 Vested (13,307 ) (30,234 ) (175,454 ) (5,809 ) (224,804 ) Forfeited — (3,170 ) (10,968 ) — (14,138 ) Unvested shares at December 31, 2019 — 24,558 396,404 — 420,962 (1) Non-employees are employees of C-III or Resource America, Inc. (“Resource America”). |
Schedule of restricted stock granted | The following table summarizes restricted common stock grants during the year ended December 31, 2019: Grant Date (1) Shares (1) Vesting per Year (1) Vesting Date(s) (1) January 22, 2019 196,198 33.3% January 22, 2020, January 22, 2021 and January 22, 2022 February 1, 2019 3,308 100% February 1, 2020 March 8, 2019 14,108 100% March 8, 2020 June 3, 2019 3,164 100% June 3, 2020 June 6, 2019 3,170 100% June 6, 2020 June 19, 2019 900 100% June 19, 2020 September 30, 2019 3,078 100% September 30, 2020 (1) The restricted stock grant on June 6, 2019 was forfeited during the year ended December 31, 2019. |
Summary of stock option transactions | The following table summarizes the status of the Company’s vested stock options at December 31, 2019: 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, 2019 10,000 $ 25.60 Vested — — Exercised — — Forfeited — — Expired — — Vested at December 31, 2019 10,000 $ 25.60 1.38 $ — |
Summary of share based compensation expense | The components of equity compensation expense for the periods presented are as follows (in thousands): Years Ended December 31, 2019 2018 2017 Restricted shares granted to non-employees (1) $ 1,937 $ 2,427 $ 2,456 Restricted shares granted to non-employee directors 276 290 282 Total $ 2,213 $ 2,717 $ 2,738 (1) Non-employees are employees of C-III or Resource America. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of basic and diluted (losses) earnings per common share | The following table presents a reconciliation of basic and diluted earnings (losses) per common share for the periods presented as follows (dollars in thousands, except per share amounts): Years Ended December 31, 2019 2018 2017 Net income from continuing operations $ 36,217 $ 27,306 $ 47,457 Net income allocated to preferred shares (10,350 ) (12,972 ) (24,057 ) Consideration paid in excess of carrying value of preferred shares — (7,482 ) (3,803 ) Net loss allocable to non-controlling interest, net of taxes — — 196 Net income from continuing operations allocable to common shares 25,867 6,852 19,793 Net (loss) income from discontinued operations, net of tax (251 ) 121 (14,116 ) Net income allocable to common shares $ 25,616 $ 6,973 $ 5,677 Weighted average number of common shares outstanding: Weighted average number of common shares outstanding - basic 31,430,113 31,198,319 30,836,400 Effect of dilutive securities - unvested restricted stock 240,243 184,783 239,387 Weighted average number of common shares outstanding - diluted 31,670,356 31,383,102 31,075,787 Net income per common share - basic: Continuing operations $ 0.82 $ 0.22 $ 0.64 Discontinued operations — — (0.46 ) Net income per common share - basic $ 0.82 $ 0.22 $ 0.18 Net income per common share - diluted: Continuing operations $ 0.81 $ 0.22 $ 0.64 Discontinued operations — — (0.46 ) Net income (loss) per common share - diluted $ 0.81 $ 0.22 $ 0.18 |
DISTRIBUTIONS (Tables)
DISTRIBUTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Distributions [Abstract] | |
Dividends Declared | The following tables present dividends declared (on a per share basis) for the years ended December 31, 2019, 2018 and 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 Paid Dividend Per Share (in thousands) 2019 December 31 January 28, 2020 $ 8,767 $ 0.275 September 30 October 25 $ 7,967 $ 0.25 June 30 July 26 $ 7,172 $ 0.225 March 31 April 26 $ 6,373 $ 0.20 2018 December 31 January 25, 2019 $ 5,540 $ 0.175 September 30 October 26 $ 4,749 $ 0.15 June 30 July 27 $ 3,165 $ 0.10 March 31 April 27 $ 1,584 $ 0.05 2017 December 31 January 26, 2018 $ 1,572 $ 0.05 September 30 October 27 $ 1,566 $ 0.05 June 30 July 28 $ 1,567 $ 0.05 March 31 April 27 $ 1,568 $ 0.05 Series A Preferred Stock Series B Preferred Stock Series C Preferred Stock Date Paid Total Dividend Paid Dividend Per Share Date Paid Total Dividend Paid Dividend Per Share Date Paid Total Dividend Paid Dividend Per Share (in thousands) (in thousands) (in thousands) 2019 December 31 N/A N/A N/A N/A N/A N/A January 30, 2020 $ 2,587 $ 0.539063 September 30 N/A N/A N/A N/A N/A N/A October 30 $ 2,588 $ 0.539063 June 30 N/A N/A N/A N/A N/A N/A July 30 $ 2,587 $ 0.539063 March 31 N/A N/A N/A N/A N/A N/A April 30 $ 2,588 $ 0.539063 2018 December 31 N/A N/A N/A N/A N/A N/A January 30, 2019 $ 2,588 $ 0.539063 September 30 N/A N/A N/A N/A N/A N/A October 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 March 31 N/A N/A N/A N/A N/A N/A April 30 $ 2,588 $ 0.539063 March 26 N/A N/A N/A March 26 $ 1,480 $ 0.320830 N/A N/A N/A 2017 December 31 January 30, 2018 $ 568 $ 0.531250 January 30, 2018 $ 2,859 $ 0.515625 January 30, 2018 $ 2,588 $ 0.539063 September 30 October 30 $ 568 $ 0.531250 October 30 $ 2,859 $ 0.515625 October 30 $ 2,588 $ 0.539063 June 30 July 31 $ 568 $ 0.531250 July 31 $ 2,859 $ 0.515625 July 31 $ 2,588 $ 0.539063 March 31 May 1 $ 568 $ 0.531250 May 1 $ 2,859 $ 0.515625 May 1 $ 2,588 $ 0.539063 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | The following table presents the changes in each component of accumulated other comprehensive income (loss) for the year ended December 31, 2019 (in thousands): Net Unrealized (Loss) Gain on Derivatives Net Unrealized Gain (Loss) on Investment Securities Available-for-Sale Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2019 $ 563 $ (3,620 ) $ (3,057 ) Other comprehensive (loss) income before reclassifications (4,471 ) 9,444 4,973 Amounts reclassified from accumulated other comprehensive income (1) (91 ) (4 ) (95 ) Balance at December 31, 2019 $ (3,999 ) $ 5,820 $ 1,821 (1) Amounts reclassified from accumulated other comprehensive income (loss) are reclassified to interest expense and net realized and unrealized gain on investment securities available-for-sale and loans and derivatives on the Company’s consolidated statements of operations. |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 December 31, 2019: Assets: Investment securities available-for-sale $ — $ — $ 520,714 $ 520,714 Derivatives — 30 — 30 Total assets at fair value $ — $ 30 $ 520,714 $ 520,744 Liabilities: Derivatives $ — $ 4,558 $ — $ 4,558 Total liabilities at fair value $ — $ 4,558 $ — $ 4,558 At December 31, 2018: Assets: Investment securities available-for-sale $ — $ — $ 418,998 $ 418,998 Derivatives — 985 — 985 Total assets at fair value $ — $ 985 $ 418,998 $ 419,983 Liabilities: Derivatives $ — $ 1,043 $ — $ 1,043 Total liabilities at fair value $ — $ 1,043 $ — $ 1,043 |
Fair value assets unobservable input reconciliation | The following table presents additional information about the Company’s assets that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs (in thousands): CMBS Balance, January 1, 2019 $ 418,998 Included in earnings 2,688 Purchases 146,521 Sales (638 ) Paydowns (1) (56,295 ) Included in OCI 9,440 Balance, December 31, 2019 $ 520,714 (1) Includes non-cash adjustments in connection with the recalculation of the accretable yield on certain interest-only CMBS. |
Fair value assets and liabilities measured on nonrecurring basis | The following table summarizes the Company’s financial instruments measured at fair value on a nonrecurring basis based upon the fair value hierarchy (in thousands): Level 1 Level 2 Level 3 Total At December 31, 2019: Assets: Asset held for sale $ — $ — $ 16,500 $ 16,500 Total assets at fair value $ — $ — $ 16,500 $ 16,500 Liabilities: Pearlmark Mezz indemnification $ — $ — $ 56 $ 56 Total liabilities at fair value $ — $ — $ 56 $ 56 At December 31, 2018: Assets: Legacy CRE loan held for sale $ — $ — $ 17,000 $ 17,000 Total assets at fair value $ — $ — $ 17,000 $ 17,000 Liabilities: Pearlmark Mezz indemnification $ — $ — $ 703 $ 703 Total liabilities at fair value $ — $ — $ 703 $ 703 |
Fair value financial instruments not reported at fair value | The fair values of the Company’s remaining financial instruments that are not reported at fair value on the consolidated balance sheets are reported in the following table (in thousands): Fair Value Measurements Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At December 31, 2019: Assets: CRE whole loans held for investment $ 1,759,137 $ 1,768,322 $ — $ — $ 1,768,322 CRE mezzanine loan $ 4,700 $ 4,700 $ — $ — $ 4,700 CRE preferred equity investment $ 26,148 $ 26,237 $ — $ — $ 26,237 Asset held for sale $ 16,500 $ 16,500 $ — $ — $ 16,500 Liabilities: Senior notes in CRE securitizations $ 746,438 $ 754,023 $ — $ — $ 754,023 Junior subordinated notes $ 51,548 $ 25,831 $ — $ — $ 25,831 Convertible senior notes $ 154,786 $ 164,932 $ — $ — $ 164,932 Repurchase agreements $ 919,805 $ 922,519 $ — $ — $ 922,519 At December 31, 2018: Assets: CRE whole loans held for investment $ 1,527,712 $ 1,538,759 $ — $ — $ 1,538,759 CRE mezzanine loan $ 4,700 $ 4,700 $ — $ — $ 4,700 CRE preferred equity investment $ 19,555 $ 19,718 $ — $ — $ 19,718 Legacy CRE loan held for sale $ 17,000 $ 17,000 $ — $ — $ 17,000 Liabilities: Senior notes in CRE securitizations $ 501,045 $ 498,897 $ — $ — $ 498,897 Junior subordinated notes $ 51,548 $ 27,800 $ — $ — $ 27,800 Convertible senior notes $ 151,190 $ 164,932 $ — $ — $ 164,932 Repurchase agreements $ 850,440 $ 855,783 $ — $ — $ 855,783 |
MARKET RISK AND DERIVATIVE IN_2
MARKET RISK AND DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 at December 31, 2019 and 2018 on the Company’s consolidated balance sheets and the related effect of the derivative instruments on the consolidated statements of operations during the years ended December 31, 2019, 2018 and 2017: Fair Value of Derivative Instruments (in thousands) Asset Derivatives At December 31, 2019 Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging (1) $ 2,630 Derivatives, at fair value $ 30 Liability Derivatives Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging (1) $ 87,551 Derivatives, at fair value $ 4,558 Interest rate swap contracts, hedging $ 90,181 Accumulated other comprehensive income (loss) $ (3,999 ) Asset Derivatives At December 31, 2018 Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging (1) $ 31,725 Derivatives, at fair value $ 985 Liability Derivatives Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging (1) $ 49,326 Derivatives, at fair value $ 1,043 Interest rate swap contracts, hedging $ 81,051 Accumulated other comprehensive income (loss) $ 563 (1) Interest rate swap contracts are accounted for as cash flow hedges. |
The effect of derivative instruments on the statement of income | The Effect of Derivative Instruments on the Consolidated Statements of Operations (in thousands) Derivatives Year Ended December 31, 2019 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (138 ) Derivatives Year Ended December 31, 2018 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (169 ) Derivatives Year Ended December 31, 2017 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (130 ) Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on investment securities available-for-sale and loans and derivatives $ (1,896 ) (1) Negative values indicate a decrease to the associated consolidated statements of operations line items. |
OFFSETTING OF FINANCIAL ASSET_2
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Offsetting [Abstract] | |
Offsetting financial assets and derivative assets | The following table presents a summary of the Company’s offsetting of derivative assets (in thousands): (i) Gross Amounts (ii) Gross Amounts Offset on the (iii) = (i) - (ii) Net Amounts of Assets Presented on the (iv) Gross Amounts Not Offset on the Consolidated Balance Sheets of Recognized Assets Consolidated Balance Sheets Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged (v) = (iii) - (iv) Net Amount At December 31, 2019: Derivatives, at fair value $ 30 $ — $ 30 $ — $ — $ 30 At December 31, 2018: Derivatives, at fair value $ 985 $ — $ 985 $ — $ — $ 985 |
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): (i) Gross Amounts (ii) Gross Amounts Offset on the (iii) = (i) - (ii) Net Amounts of Liabilities Presented on the (iv) Gross Amounts Not Offset on the Consolidated Balance Sheets of Recognized Liabilities Consolidated Balance Sheets Consolidated Balance Sheets Financial Instruments (1) Cash Collateral Pledged (v) = (iii) - (iv) Net Amount At December 31, 2019: Derivatives, at fair value (2) $ 4,558 $ — $ 4,558 $ — $ 4,558 $ — Repurchase agreements and term facilities (3) 919,805 — 919,805 915,041 4,764 — Total $ 924,363 $ — $ 924,363 $ 915,041 $ 9,322 $ — At December 31, 2018: Derivatives, at fair value (2) $ 1,043 $ — $ 1,043 $ — $ 1,043 $ — Repurchase agreements and term facilities (3) 850,440 — 850,440 850,440 — — Total $ 851,483 $ — $ 851,483 $ 850,440 $ 1,043 $ — (1) Amounts represent financial instruments pledged that are available to be offset against liability balances associated with term facilities, repurchase agreements and derivatives. (2) The Company posted excess cash collateral of $4.6 million and $1.3 million related to interest rate swap contracts outstanding at December 31, 2019 and 2018, respectively. (3) The combined fair value of securities and loans pledged against the Company’s various repurchase agreements and term facilities was $1.2 billion at each of December 31, 2019 and 2018. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of income taxes | The following table details the components of income taxes (in thousands): Years Ended December 31, 2019 2018 2017 Income tax (benefit) expense: Current: Federal $ — $ — $ 994 State — (316 ) 856 Total current — (316 ) 1,850 Deferred: Federal — (27 ) 3,475 State — — 1,288 Total deferred — (27 ) 4,763 Total $ — $ (343 ) $ 6,613 |
Reconciliation between federal statutory income tax rate and effective income tax rate | A reconciliation of the income tax (benefit) expense based upon the statutory tax rate to the effective income tax rate was as follows for the years presented (in thousands): Years Ended December 31, 2019 2018 2017 Income tax (benefit) expense: Statutory tax $ 6 $ (220 ) $ 9,301 State and local taxes, net of federal benefit 2,716 (1,007 ) 1,415 Permanent adjustments — (3 ) 37 True-up of prior period tax expense 816 (4 ) (2,010 ) Valuation allowance (5,402 ) 5,348 (2,203 ) Tax reform — — 4,918 Tax reform - valuation allowance — — (4,918 ) Discontinued operations adjustment 863 (4,344 ) — Other items 1,001 (113 ) 73 Total $ — $ (343 ) $ 6,613 |
Components of deferred tax assets and liabilities | The components of deferred tax assets and liabilities were as follows (in thousands): December 31, 2019 2018 Deferred tax assets related to: Federal, state and local loss carryforwards $ 7,026 $ 9,847 Accrued expenses 27 106 Charitable contribution carryforward 16 13 Amortization of intangibles 466 406 Unrealized gains 662 1,721 Capital loss carryforward 2,736 — Partnership investment — 3,385 Total deferred tax assets 10,933 15,478 Valuation allowance (9,883 ) (15,285 ) Total deferred tax assets, net of valuation allowance $ 1,050 $ 193 Deferred tax liabilities related to: Investment in securities $ (1,050 ) $ (193 ) Total deferred tax liabilities $ (1,050 ) $ (193 ) Deferred tax assets, net $ — $ — |
QUARTERLY RESULTS (Tables)
QUARTERLY RESULTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly results of operations | The following is a presentation of the quarterly results of operations: March 31 June 30 September 30 December 31 (unaudited) (unaudited) (unaudited) (unaudited) (in thousands, except per share data) Year ended December 31, 2019: Interest income $ 33,932 $ 37,138 $ 39,292 $ 34,524 Interest expense 19,395 21,581 22,712 20,149 Net interest income $ 14,537 $ 15,557 $ 16,580 $ 14,375 Net income from continuing operations $ 8,170 $ 9,003 $ 12,620 $ 6,424 Net loss from discontinued operations (37 ) (112 ) (63 ) (39 ) Net income 8,133 8,891 12,557 6,385 Net income allocated to preferred shares (2,588 ) (2,587 ) (2,588 ) (2,587 ) Net income allocable to common shares $ 5,545 $ 6,304 $ 9,969 $ 3,798 Net income per common share from continuing operations - basic $ 0.18 $ 0.20 $ 0.32 $ 0.12 Net loss per common share from discontinued operations - basic — — — — Total net income per common share - basic $ 0.18 $ 0.20 $ 0.32 $ 0.12 Net income per common share from continuing operations - diluted $ 0.18 $ 0.20 $ 0.31 $ 0.12 Net loss per common share from discontinued operations - diluted — — — — Total net income per common share - diluted $ 0.18 $ 0.20 $ 0.31 $ 0.12 March 31 June 30 September 30 December 31 (unaudited) (unaudited) (unaudited) (unaudited) (in thousands, except per share data) Year ended December 31, 2018: Interest income (1) $ 25,957 $ 29,660 $ 31,836 $ 35,326 Interest expense (1) 14,384 16,159 17,322 19,751 Net interest income $ 11,573 $ 13,501 $ 14,514 $ 15,575 Net (loss) income from continuing operations $ (137 ) $ 9,189 $ 8,260 $ 9,994 Net income (loss) from discontinued operations 247 (450 ) 364 (40 ) Net income 110 8,739 8,624 9,954 Net income allocated to preferred shares (5,210 ) (2,587 ) (2,588 ) (2,587 ) Carrying value less than consideration paid for preferred shares (7,482 ) — — — Net (loss) income allocable to common shares $ (12,582 ) $ 6,152 $ 6,036 $ 7,367 Net (loss) income per common share from continuing operations - basic $ (0.41 ) $ 0.21 $ 0.18 $ 0.24 Net income (loss) per common share from discontinued operations - basic 0.01 (0.01 ) 0.01 — Total net (loss) income per common share - basic $ (0.40 ) $ 0.20 $ 0.19 $ 0.24 Net (loss) income per common share from continuing operations - diluted $ (0.41 ) $ 0.21 $ 0.18 $ 0.23 Net income (loss) per common share from discontinued operations - diluted 0.01 (0.01 ) 0.01 — Total net (loss) income per common share - diluted $ (0.40 ) $ 0.20 $ 0.19 $ 0.23 (1) Certain reclassifications have been made to the 2018 consolidated financial statements, including the impact of discontinued operations. |
DISCONTINUED OPERATIONS AND A_2
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 income (loss) from discontinued operations, net of tax for the years ended December 31, 2019, 2018 and 2017 (in thousands): Years Ended December 31, 2019 2018 2017 REVENUES Interest income: Loans $ — $ 580 $ 3,319 Other — 13 107 Total interest income — 593 3,426 Interest expense — — — Net interest income — 593 3,426 Other revenue 24 407 6,340 Total revenues 24 1,000 9,766 OPERATING EXPENSES Equity compensation — — 433 General and administrative 410 1,300 23,717 Total operating expenses 410 1,300 24,150 (386 ) (300 ) (14,384 ) OTHER INCOME (EXPENSE) Net realized and unrealized gain on investment securities available-for-sale and loans and derivatives 135 421 145 Fair value adjustments on financial assets held for sale — — 123 Total other income 135 421 268 (LOSS) INCOME FROM DISCONTINUED OPERATIONS BEFORE TAXES (251 ) 121 (14,116 ) Income tax expense — — — NET (LOSS) INCOME FROM DISCONTINUED OPERATIONS, NET OF TAXES (251 ) 121 (14,116 ) Loss from disposal of discontinued operations — — — TOTAL (LOSS) INCOME FROM DISCONTINUED OPERATIONS $ (251 ) $ 121 $ (14,116 ) The assets and liabilities of business segments classified as discontinued operations and other assets and liabilities classified as held for sale are reported separately in the accompanying consolidated financial statements and are summarized as follows at December 31, 2019 and 2018 (in thousands): December 31, 2019 2018 ASSETS Loans and other assets held for sale $ — $ 17,645 Property and other assets held for sale 16,766 — Total assets held for sale $ 16,766 $ 17,645 LIABILITIES Accounts payable and other liabilities $ 1,746 $ 1,820 Total liabilities held for sale $ 1,746 $ 1,820 |
ORGANIZATION (Details)
ORGANIZATION (Details) | Dec. 31, 2019 |
Exantas Capital Corp | C-III Capital Partners LLC | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 2.40% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Summary Of Significant Accounting Policies [Line Items] | ||||
Cash balance in excess of federal deposit Insurance limit, amount | $ 77,600 | $ 80,400 | ||
Percentage of REIT taxable income distributed to stockholders not subject to federal corporate tax | 100.00% | |||
Provision for Income Tax | $ 0 | (343) | $ 6,613 | |
Operating loss carryforwards, valuation allowance | 32,900 | 58,400 | ||
Operating loss carryforwards, valuation allowance, tax expense impact | $ 9,900 | 15,300 | ||
U.S. federal corporate tax rate | 21.00% | 35.00% | ||
Subsequent Event | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
CECL reserve | $ 4,500 | |||
CECL reserve recorded as charge to retained earnings | $ 3,000 | |||
CECL reserve per share recorded as charge to retained earnings | $ 0.10 | |||
Percentage of estimated CECL reserve out of aggregate outstanding principal balance of commercial loan portfolio | 0.25% | |||
Foreign TRS | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Provision for Income Tax | $ 0 | |||
Commercial Real Estate Loans | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Aggregate outstanding principal balance of commercial loan portfolio | $ 1,799,259 | $ 1,563,177 | ||
Commercial Real Estate Loans | Rating 3 | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Financing receivable, allowance for credit losses, percentage of aggregate par amount of loans | 1.50% | |||
Commercial Real Estate Loans | Rating 4 | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Financing receivable, allowance for credit losses, percentage of outstanding par amount of loans | 5.00% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 79,958 | $ 82,816 | ||
Restricted cash | 14,476 | 12,658 | ||
Total cash, cash equivalents and restricted cash shown on the Company’s consolidated statements of cash flows | $ 94,434 | $ 95,474 | $ 204,364 | $ 119,425 |
VARIABLE INTEREST ENTITIES (Con
VARIABLE INTEREST ENTITIES (Consolidated VIEs) (the Company is the primary beneficiary) (Details) - VIE, Primary Beneficiary | 12 Months Ended | |
Dec. 31, 2019USD ($)entity | Dec. 31, 2018entity | |
Variable Interest Entity [Line Items] | ||
Number of consolidated VIEs | entity | 5 | 5 |
Financial support, amount | $ | $ 0 |
VARIABLE INTEREST ENTITIES (Sch
VARIABLE INTEREST ENTITIES (Schedule of Carrying Value of Assets and Liabilities of Consolidated VIEs) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS: | ||
Restricted cash | $ 14,476 | $ 12,658 |
Accrued interest receivable | 8,042 | 8,198 |
CRE loans, pledged as collateral | 1,789,985 | 1,551,967 |
Principal paydowns receivable | 19,517 | 32,083 |
Other assets | 3,290 | 4,015 |
Total assets | 2,454,326 | 2,130,913 |
LIABILITIES | ||
Accounts payable and other liabilities | 3,408 | 7,550 |
Accrued interest payable | 4,408 | 4,224 |
Borrowings | 1,872,577 | 1,554,223 |
Total liabilities | 1,897,928 | 1,577,094 |
VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 532 | 6,189 |
Accrued interest receivable | 3,780 | 3,548 |
CRE loans, pledged as collateral | 957,045 | 700,986 |
Principal paydowns receivable | 19,239 | 31,914 |
Other assets | 25 | 157 |
Total assets | 980,621 | 742,794 |
LIABILITIES | ||
Accounts payable and other liabilities | 175 | 75 |
Accrued interest payable | 897 | 709 |
Borrowings | 746,439 | 501,045 |
Total liabilities | 747,511 | $ 501,829 |
CRE Securitizations | VIE, Primary Beneficiary | ||
ASSETS: | ||
Accrued interest receivable | 3,780 | |
CRE loans, pledged as collateral | 957,045 | |
Principal paydowns receivable | 19,239 | |
Other assets | 25 | |
Total assets | 980,089 | |
LIABILITIES | ||
Accounts payable and other liabilities | 175 | |
Accrued interest payable | 897 | |
Borrowings | 746,439 | |
Total liabilities | 747,511 | |
Other | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 532 | |
Accrued interest receivable | 0 | |
CRE loans, pledged as collateral | 0 | |
Principal paydowns receivable | 0 | |
Other assets | 0 | |
Total assets | 532 | |
LIABILITIES | ||
Accounts payable and other liabilities | 0 | |
Accrued interest payable | 0 | |
Borrowings | 0 | |
Total liabilities | $ 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 | 12 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2018 | Oct. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | |||||
Investments in unconsolidated entities | $ 1,548,000 | $ 1,548,000 | |||
Borrowings | 1,872,577,000 | $ 1,554,223,000 | |||
VIE, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Carrying amount of private-label securitization | $ (1,095,000) | ||||
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 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 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 | 22,825,000 | |||
VIE, Not Primary Beneficiary | Prospect Hackensack | |||||
Variable Interest Entity [Line Items] | |||||
Carrying amount of private-label securitization | 20,407,000 | ||||
Payments to acquire interest in joint venture | $ 19,200,000 | ||||
VIE, Not Primary Beneficiary | Santa Clarita | |||||
Variable Interest Entity [Line Items] | |||||
Carrying amount of private-label securitization | $ 5,779,000 | ||||
Payments to acquire interest in joint venture | $ 5,500,000 |
VARIABLE INTEREST ENTITIES (S_2
VARIABLE INTEREST ENTITIES (Schedule of Classification, Carrying Value, and Maximum Exposure to Loss of Unconsolidated VIEs) (Details) - VIE, Not Primary Beneficiary - USD ($) $ in Thousands | Dec. 31, 2019 | Oct. 31, 2017 |
ASSETS: | ||
Accrued interest receivable | $ 375 | |
CRE loans | 26,148 | |
Investment securities available-for-sale | 22,647 | |
Investments in unconsolidated entities | 1,548 | |
Total assets | 50,718 | |
LIABILITIES | ||
Accrued interest payable | 265 | |
Borrowings | 51,548 | |
Total liabilities | 51,813 | |
Net (liability) asset | (1,095) | |
Interest Receivable | ||
ASSETS: | ||
Maximum Exposure to Loss | 0 | |
Loans Pledged as Collateral | ||
ASSETS: | ||
Maximum Exposure to Loss | 26,148 | |
Available-for-sale Securities | ||
ASSETS: | ||
Maximum Exposure to Loss | 22,130 | |
Investments in Unconsolidated Entities | ||
ASSETS: | ||
Maximum Exposure to Loss | 1,548 | |
Unsecured Junior Subordinated Debentures | ||
ASSETS: | ||
Accrued interest receivable | 159 | |
CRE loans | 0 | |
Investment securities available-for-sale | 0 | |
Investments in unconsolidated entities | 1,548 | |
Total assets | 1,707 | |
LIABILITIES | ||
Accrued interest payable | 265 | |
Borrowings | 51,548 | |
Total liabilities | 51,813 | |
Net (liability) asset | (50,106) | |
C40 | ||
ASSETS: | ||
Accrued interest receivable | 178 | |
CRE loans | 0 | |
Investment securities available-for-sale | 22,647 | |
Investments in unconsolidated entities | 0 | |
Total assets | 22,825 | |
LIABILITIES | ||
Accrued interest payable | 0 | |
Borrowings | 0 | |
Total liabilities | 0 | |
Net (liability) asset | 22,825 | $ 705,400 |
Prospect Hackensack | ||
ASSETS: | ||
Accrued interest receivable | 0 | |
CRE loans | 20,407 | |
Investment securities available-for-sale | 0 | |
Investments in unconsolidated entities | 0 | |
Total assets | 20,407 | |
LIABILITIES | ||
Accrued interest payable | 0 | |
Borrowings | 0 | |
Total liabilities | 0 | |
Net (liability) asset | 20,407 | |
Santa Clarita | ||
ASSETS: | ||
Accrued interest receivable | 38 | |
CRE loans | 5,741 | |
Investment securities available-for-sale | 0 | |
Investments in unconsolidated entities | 0 | |
Total assets | 5,779 | |
LIABILITIES | ||
Accrued interest payable | 0 | |
Borrowings | 0 | |
Total liabilities | 0 | |
Net (liability) asset | $ 5,779 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - Continuing Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Non-cash continuing financing activities include the following: | |||
Proceeds from the private exchange of convertible senior notes | $ 0 | $ 0 | $ 22,161 |
Payments on the private exchange of convertible senior notes | 0 | 0 | (22,161) |
Common Stock | |||
Non-cash continuing financing activities include the following: | |||
Distributions accrued but not paid | 8,767 | 5,540 | 1,571 |
Preferred Stock | |||
Non-cash continuing financing activities include the following: | |||
Distributions accrued but not paid | $ 1,725 | $ 1,725 | $ 4,010 |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 14,476 | $ 12,658 |
Cash held by consolidated CRE securitizations, CDOs and CLOs | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 532 | 6,190 |
Restricted cash pledged with minimum reserve balance requirements | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 22 | 21 |
Margin posted on interest rate swaps and repurchase agreements | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 13,922 | $ 6,447 |
LOANS (Summary of Loans) (Detai
LOANS (Summary of Loans) (Details) - Commercial Real Estate Loans | Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan |
Receivables With Imputed Interest [Line Items] | ||
Principal, Loans held for investment | $ 1,799,259,000 | $ 1,563,177,000 |
Unamortized (Discount) Premium, net | (7,814,000) | (9,809,000) |
Amortized Cost, Loans held for investment | 1,791,445,000 | 1,553,368,000 |
Allowance for Loan Losses | (1,460,000) | (1,401,000) |
Carrying Value, Loans held for investment | 1,789,985,000 | 1,551,967,000 |
Loan origination fees | 9,100,000 | 9,600,000 |
Deferred amendment fees | 72,000,000 | 171,000,000 |
Unamortized loan acquisition costs | 1,300,000 | 0 |
Amortized Cost, Loans held for investment | 1,791,445,000 | 1,553,368,000 |
CRE whole loans | ||
Receivables With Imputed Interest [Line Items] | ||
Principal, Loans held for investment | 1,768,322,000 | 1,538,759,000 |
Unamortized (Discount) Premium, net | (7,725,000) | (9,646,000) |
Amortized Cost, Loans held for investment | 1,760,597,000 | 1,529,113,000 |
Allowance for Loan Losses | (1,460,000) | (1,401,000) |
Carrying Value, Loans held for investment | $ 1,759,137,000 | $ 1,527,712,000 |
Quantity | Loan | 112 | 79 |
Amortized Cost, Loans held for investment | $ 1,760,597,000 | $ 1,529,113,000 |
Loans held for investment, unfunded loan commitments | $ 98,000,000 | $ 105,700,000 |
CRE whole loans | London Interbank Offered Rate (LIBOR) | Minimum | ||
Receivables With Imputed Interest [Line Items] | ||
Contractual Interest Rates | 2.70% | 2.70% |
CRE whole loans | London Interbank Offered Rate (LIBOR) | Maximum | ||
Receivables With Imputed Interest [Line Items] | ||
Contractual Interest Rates | 6.25% | 6.25% |
Mezzanine loan | ||
Receivables With Imputed Interest [Line Items] | ||
Principal, Loans held for investment | $ 4,700,000 | $ 4,700,000 |
Amortized Cost, Loans held for investment | 4,700,000 | 4,700,000 |
Carrying Value, Loans held for investment | $ 4,700,000 | $ 4,700,000 |
Quantity | Loan | 1 | 1 |
Contractual Interest Rates | 10.00% | 10.00% |
Amortized Cost, Loans held for investment | $ 4,700,000 | $ 4,700,000 |
Preferred equity investment | ||
Receivables With Imputed Interest [Line Items] | ||
Principal, Loans held for investment | 26,237,000 | 19,718,000 |
Unamortized (Discount) Premium, net | (89,000) | (163,000) |
Amortized Cost, Loans held for investment | 26,148,000 | 19,555,000 |
Allowance for Loan Losses | 0 | 0 |
Carrying Value, Loans held for investment | $ 26,148,000 | $ 19,555,000 |
Quantity | Loan | 2 | 1 |
Contractual Interest Rates | 11.50% | |
Amortized Cost, Loans held for investment | $ 26,148,000 | $ 19,555,000 |
Loans held for investment, unfunded loan commitments | $ 3,000,000 | 0 |
Loans receivable, contracted interest rate | 8.00% | |
Preferred equity investment | Minimum | ||
Receivables With Imputed Interest [Line Items] | ||
Contractual Interest Rates | 11.00% | |
Preferred equity investment | Maximum | ||
Receivables With Imputed Interest [Line Items] | ||
Contractual Interest Rates | 11.50% | |
Whole Loans Classified as Held-for-sale | ||
Receivables With Imputed Interest [Line Items] | ||
Amortized Cost, Loans held for investment | $ 11,500,000 | $ 11,500,000 |
Quantity | Loan | 1 | 1 |
Amortized Cost, Loans held for investment | $ 11,500,000 | $ 11,500,000 |
LOANS (Commercial Real Estate L
LOANS (Commercial Real Estate Loans, at Amortized Cost) (Details) $ in Thousands | Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan |
Commercial Real Estate Loans | ||
Receivables With Imputed Interest [Line Items] | ||
Amortized Cost, Loans held for investment | $ 1,791,445 | $ 1,553,368 |
Commercial Real Estate Loans | Whole Loans in Default | ||
Receivables With Imputed Interest [Line Items] | ||
Amortized Cost, Loans held for investment | $ 11,500 | $ 11,500 |
Number of loans | Loan | 1 | 1 |
Commercial Real Estate Debt Investments | ||
Receivables With Imputed Interest [Line Items] | ||
2020 | $ 319,868 | $ 227,851 |
2021 | 737,478 | 450,596 |
2022 and Thereafter | 722,595 | 863,406 |
Amortized Cost, Loans held for investment | 1,779,941 | 1,541,853 |
Commercial Real Estate Debt Investments | Mezzanine loan | ||
Receivables With Imputed Interest [Line Items] | ||
2022 and Thereafter | 4,700 | 4,700 |
Amortized Cost, Loans held for investment | 4,700 | 4,700 |
Commercial Real Estate Debt Investments | Preferred equity investment | ||
Receivables With Imputed Interest [Line Items] | ||
2022 and Thereafter | 26,148 | 19,555 |
Amortized Cost, Loans held for investment | 26,148 | 19,555 |
Commercial Real Estate Debt Investments | CRE whole loans | ||
Receivables With Imputed Interest [Line Items] | ||
2020 | 319,868 | 227,851 |
2021 | 737,478 | 450,596 |
2022 and Thereafter | 691,747 | 839,151 |
Amortized Cost, Loans held for investment | 1,749,093 | 1,517,598 |
Commercial Real Estate Debt Investments | CRE whole loans | Whole Loan in Extension Option | ||
Receivables With Imputed Interest [Line Items] | ||
2020 | 105,500 | 10,400 |
2021 | 68,000 | 182,400 |
2022 and Thereafter | $ 1,600 | $ 1,300 |
LOANS (Details)
LOANS (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Loans receivable related party | $ 19,500 | $ 32,100 |
Commercial Real Estate Loans | Southwest Region | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 19.40% | 32.30% |
Commercial Real Estate Loans | Mountain Region | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 19.50% | 20.90% |
Commercial Real Estate Loans | Southeast Region | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 17.60% | |
Commercial Real Estate Loans | Pacific Region | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 17.10% |
FINANCING RECEIVABLES (Allowanc
FINANCING RECEIVABLES (Allowance for Loan Losses and Recorded Investments in Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for loan losses: | |||
Provision for (recovery of) loan losses, net | $ 58 | $ (1,595) | $ 1,772 |
Commercial Real Estate Loans | |||
Allowance for loan losses: | |||
Allowance for loan losses at beginning of year | 1,401 | 5,328 | |
Provision for (recovery of) loan losses, net | 59 | (1,595) | |
Loans charged-off | (2,332) | ||
Allowance for loan losses at end of year | 1,460 | 1,401 | $ 5,328 |
Allowance for loan losses ending balance: | |||
Collectively evaluated for impairment | 1,460 | 1,401 | |
Loans: Amortized cost ending balance: | |||
Individually evaluated for impairment | 30,848 | 24,255 | |
Collectively evaluated for impairment | $ 1,760,597 | $ 1,529,113 |
FINANCING RECEIVABLES (Allowa_2
FINANCING RECEIVABLES (Allowance for Loan Losses and Recorded Investments in Loans) (Parenthetical) (Details) - Commercial Real Estate Loans - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts Notes And Loans Receivable [Line Items] | ||
Amortization cost of recovery of loan | $ 0 | $ 0 |
Carrying value of recovery of loan | 0 | $ 0 |
Payments received from loan | $ 1,000 |
FINANCING RECEIVABLES (Details)
FINANCING RECEIVABLES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts Notes And Loans Receivable [Line Items] | ||
Impaired loans | $ 0 | $ 0 |
Troubled-debt restructurings | $ 0 | $ 0 |
Commercial Real Estate Loans | Rating 3 | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Allowance for credit losses, percentage of aggregate par amount of loans | 1.50% | |
Commercial Real Estate Loans | Rating 4 | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Allowance for credit losses, percentage of aggregate carrying amount of loans | 5.00% |
FINANCING RECEIVABLES (Credit R
FINANCING RECEIVABLES (Credit Risk Profiles and Allowance For Loan Losses) (Details) - Commercial Real Estate Loans - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | $ 1,791,445 | $ 1,570,368 |
CRE whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 1,760,597 | 1,529,113 |
Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 4,700 | 4,700 |
Preferred equity investments | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 26,148 | 19,555 |
Legacy CRE Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables, held for sale | 17,000 | |
Rating 1 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 1 | CRE whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 1 | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 1 | Preferred equity investments | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 1 | Legacy CRE Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables, held for sale | 0 | |
Rating 2 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 1,691,122 | 1,471,461 |
Rating 2 | CRE whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 1,660,274 | 1,447,206 |
Rating 2 | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 4,700 | 4,700 |
Rating 2 | Preferred equity investments | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 26,148 | 19,555 |
Rating 2 | Legacy CRE Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables, held for sale | 0 | |
Rating 3 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 96,475 | 77,067 |
Rating 3 | CRE whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 96,475 | 77,067 |
Rating 3 | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 3 | Preferred equity investments | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 3 | Legacy CRE Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables, held for sale | 0 | |
Rating 4 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 3,848 | 4,840 |
Rating 4 | CRE whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 3,848 | 4,840 |
Rating 4 | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 4 | Preferred equity investments | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 4 | Legacy CRE Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables, held for sale | 0 | |
Rating 5 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 5 | CRE whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 5 | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 5 | Preferred equity investments | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 5 | Legacy CRE Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables, held for sale | 0 | |
Held for Sale | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 17,000 |
Held for Sale | CRE whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Held for Sale | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Held for Sale | Preferred equity investments | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | $ 0 | 0 |
Held for Sale | Legacy CRE Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables, held for sale | $ 17,000 |
FINANCING RECEIVABLES (Credit_2
FINANCING RECEIVABLES (Credit Risk Profiles and Allowance For Loan Losses) (Parenthetical) (Details) - Commercial Real Estate Loans $ in Millions | Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan |
Whole Loans In Technical Default | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Number of defaulted loans | Loan | 1 | 1 |
Recorded investment | $ | $ 11.5 | $ 11.5 |
Legacy CRE Whole Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Number of defaulted loans | Loan | 1 | 1 |
Recorded investment | $ | $ 17 | $ 17 |
FINANCING RECEIVABLES (Loan Por
FINANCING RECEIVABLES (Loan Portfolio Aging Analysis) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | $ 11,503 | $ 28,516 |
Current | 1,779,942 | 1,541,852 |
Total Loans Receivable | 1,791,445 | 1,570,368 |
Total Loans > Than 90 days and Accruing | 11,503 | 11,516 |
30-59 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | 0 | 0 |
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 | 11,503 | 28,516 |
Commercial Real Estate Loans | CRE whole loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | 11,503 | 11,516 |
Current | 1,749,094 | 1,517,597 |
Total Loans Receivable | 1,760,597 | 1,529,113 |
Total Loans > Than 90 days and Accruing | 11,503 | 11,516 |
Commercial Real Estate Loans | Mezzanine loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | 0 | 0 |
Current | 4,700 | 4,700 |
Total Loans Receivable | 4,700 | 4,700 |
Total Loans > Than 90 days and Accruing | 0 | 0 |
Commercial Real Estate Loans | Preferred equity investment | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | 0 | 0 |
Current | 26,148 | 19,555 |
Total Loans Receivable | 26,148 | 19,555 |
Total Loans > Than 90 days and Accruing | 0 | 0 |
Commercial Real Estate Loans | Legacy CRE loans held for sale | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | 17,000 | |
Current | 0 | |
Total Loans Receivable | 17,000 | |
Total Loans > Than 90 days and Accruing | 0 | |
Commercial Real Estate Loans | 30-59 Days | CRE 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 | 0 |
Commercial Real Estate Loans | 30-59 Days | Preferred equity investment | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial Real Estate Loans | 30-59 Days | Legacy CRE loans held for sale | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | 0 | |
Commercial Real Estate Loans | 60-89 Days | CRE 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 | 0 |
Commercial Real Estate Loans | 60-89 Days | Preferred equity investment | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial Real Estate Loans | 60-89 Days | Legacy CRE loans held for sale | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | 0 | |
Commercial Real Estate Loans | Greater than 90 Days | CRE whole loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | 11,503 | 11,516 |
Commercial Real Estate Loans | Greater than 90 Days | Mezzanine loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial Real Estate Loans | Greater than 90 Days | Preferred equity investment | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | $ 0 | 0 |
Commercial Real Estate Loans | Greater than 90 Days | Legacy CRE loans held for sale | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | $ 17,000 |
FINANCING RECEIVABLES (Loan P_2
FINANCING RECEIVABLES (Loan Portfolio Aging Analysis) (Parenthetical) (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($)Loan | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($)Loan | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan | Dec. 31, 2017USD ($) | |
Financing Receivable Recorded Investment Past Due [Line Items] | |||||||||||
Interest income | $ 34,524,000 | $ 39,292,000 | $ 37,138,000 | $ 33,932,000 | $ 35,326,000 | $ 31,836,000 | $ 29,660,000 | $ 25,957,000 | $ 144,886,000 | $ 122,779,000 | $ 99,318,000 |
Commercial Real Estate Loans | Whole Loans In Technical Default | |||||||||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||||||||
Number of defaulted loans | Loan | 1 | 1 | 1 | 1 | |||||||
Recorded investment | $ 11,500,000 | $ 11,500,000 | $ 11,500,000 | $ 11,500,000 | |||||||
Interest income | $ 747,000 | $ 621,000 | $ 610,000 | ||||||||
Commercial Real Estate Loans | Legacy CRE loans held for sale | |||||||||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||||||||
Number of defaulted loans | Loan | 1 | 1 | |||||||||
Recorded investment | $ 17,000,000 | $ 17,000,000 |
INVESTMENT SECURITIES AVAILAB_3
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Schedule of Available-for-Sale Securities, Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 514,894 | $ 422,619 |
Unrealized Gains | 7,591 | 812 |
Unrealized Losses | (1,771) | (4,433) |
Fair Value | 520,714 | 418,998 |
CMBS, Fixed Rate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 132,235 | 121,487 |
Unrealized Gains | 6,596 | 559 |
Unrealized Losses | (792) | (2,307) |
Fair Value | 138,039 | 119,739 |
CMBS, Floating Rate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 382,659 | 301,132 |
Unrealized Gains | 995 | 253 |
Unrealized Losses | (979) | (2,126) |
Fair Value | $ 382,675 | $ 299,259 |
INVESTMENT SECURITIES AVAILAB_4
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Schedule of Available-for-Sale Securities, Fair Value) (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Available For Sale Securities [Abstract] | ||
Assets pledged as collateral | $ 466.9 | $ 388.4 |
INVESTMENT SECURITIES AVAILAB_5
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Estimated Maturities of Available-For-Sale Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Less than one year | $ 187,943 | $ 126,446 |
Greater than one year and less than five years | 80,937 | 98,220 |
Greater than five years and less than ten years | 246,014 | 197,953 |
Total | 514,894 | 422,619 |
Fair Value | ||
Less than one year | 188,005 | 126,014 |
Greater than one year and less than five years | 80,925 | 97,083 |
Greater than five years and less than ten years | 251,784 | 195,901 |
Total | $ 520,714 | $ 418,998 |
Weighted Average Coupon | ||
Less than one year | 4.77% | 5.76% |
Greater than one year and less than five years | 4.85% | 5.21% |
Greater than five years and less than ten years | 3.83% | 4.06% |
Total | 4.30% | 4.76% |
INVESTMENT SECURITIES AVAILAB_6
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Estimated Maturities of Available-For-Sale Securities) (Parenthetical) (Details) | Dec. 31, 2019USD ($)position | Dec. 31, 2018USD ($)position |
Amortized Cost | ||
Less than one year | $ 187,943,000 | $ 126,446,000 |
Greater than one year and less than five years | 80,937,000 | 98,220,000 |
Fair Value | ||
Less than one year | 188,005,000 | 126,014,000 |
Greater than one year and less than five years | 80,925,000 | 97,083,000 |
CMBS | ||
Amortized Cost | ||
Less than one year | 0 | 0 |
Greater than one year and less than five years | 106,000 | 105,000 |
Fair Value | ||
Less than one year | 0 | 0 |
Greater than one year and less than five years | $ 0 | $ 0 |
Number of positions other than temporary impairment greater than five years | position | 0 | 0 |
Number of positions other than temporary impairment less than ten years | position | 0 | 0 |
INVESTMENT SECURITIES AVAILAB_7
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Abstract] | |||
Other than temporary impairment losses, investments | $ 0 | $ 934,000 | $ 0 |
CMBS | |||
Debt Securities, Available-for-sale [Abstract] | |||
Other than temporary impairment losses, investments | $ 934,000 | ||
CMBS | Minimum | |||
Debt Securities, Available-for-sale [Abstract] | |||
Contractual maturities of investment securities available-for-sale | 2024-12 | ||
CMBS | Maximum | |||
Debt Securities, Available-for-sale [Abstract] | |||
Contractual maturities of investment securities available-for-sale | 2061-12 |
INVESTMENT SECURITIES AVAILAB_8
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Gross Unrealized Loss and Fair Value of Securities) (Details) - CMBS $ in Thousands | Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, less than 12 months | $ 48,618 | $ 329,441 |
Unrealized Losses, less than 12 months | $ (181) | $ (4,001) |
Number of Lots, less than 12 months | security | 13 | 49 |
Fair Value, more than 12 months | $ 72,013 | $ 6,757 |
Unrealized losses, more than 12 Months | $ (1,590) | $ (432) |
Number of Lots, more than 12 Months | security | 21 | 7 |
Fair Value, total | $ 120,631 | $ 336,198 |
Unrealized losses, total | $ (1,771) | $ (4,433) |
Number of Lots, total | security | 34 | 56 |
INVESTMENT SECURITIES AVAILAB_9
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Sales and Redemptions of Available-for-Sale Debt Securities) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)position | Dec. 31, 2018USD ($)position | Dec. 31, 2017USD ($)position | |
Debt Securities, Available-for-sale [Line Items] | |||
Positions Sold/Redeemed | position | 1 | 3 | 13 |
Par Amount Sold/Redeemed | $ 634 | $ 15,340 | $ 193,442 |
Amortized Cost | 634 | 11,941 | 31,501 |
Realized Gain (Loss) | 4 | 135 | 1,592 |
Proceeds from sale of investment securities available-for-sale | 638 | 12,081 | 40,048 |
Proceeds, excluding interest received | $ 638 | ||
Proceeds, including amounts received in cash for sale in previous year | $ 12,076 | ||
Proceeds, including amounts not yet received in cash | $ 30,811 | ||
CMBS | |||
Debt Securities, Available-for-sale [Line Items] | |||
Positions Sold/Redeemed | position | 1 | 1 | 2 |
Par Amount Sold/Redeemed | $ 634 | $ 14,929 | $ 7,350 |
Amortized Cost | 634 | 11,676 | 6,650 |
Realized Gain (Loss) | 4 | 352 | (238) |
Proceeds from sale of investment securities available-for-sale | $ 638 | $ 12,028 | $ 6,412 |
ABS | |||
Debt Securities, Available-for-sale [Line Items] | |||
Positions Sold/Redeemed | position | 2 | 5 | |
Par Amount Sold/Redeemed | $ 411 | $ 8,306 | |
Amortized Cost | 265 | 4,319 | |
Realized Gain (Loss) | (217) | 1,356 | |
Proceeds from sale of investment securities available-for-sale | $ 48 | $ 5,675 | |
ABS | ABS - structured notes | |||
Debt Securities, Available-for-sale [Line Items] | |||
Positions Sold/Redeemed | position | 3 | ||
Par Amount Sold/Redeemed | $ 24,267 | ||
Amortized Cost | 19,258 | ||
Realized Gain (Loss) | 632 | ||
Proceeds from sale of investment securities available-for-sale | $ 17,608 | ||
RMBS | |||
Debt Securities, Available-for-sale [Line Items] | |||
Positions Sold/Redeemed | position | 3 | ||
Par Amount Sold/Redeemed | $ 153,519 | ||
Amortized Cost | 1,274 | ||
Realized Gain (Loss) | (158) | ||
Proceeds from sale of investment securities available-for-sale | $ 1,116 |
INVESTMENTS IN UNCONSOLIDATED_3
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Schedule of Unconsolidated Entities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Schedule of Equity Method Investments [Line Items] | ||||
Investments in unconsolidated entities | $ 1,548 | $ 1,548 | ||
Equity in Earnings of Unconsolidated Entities | $ 100 | 313 | $ 39,626 | |
Pelium Capital | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in Earnings of Unconsolidated Entities | [1] | (182) | (1,856) | |
RCM Global LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in Earnings of Unconsolidated Entities | [2] | (12) | (274) | |
Investment in LCC Preferred Stock | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in Earnings of Unconsolidated Entities | [3] | 411 | 41,465 | |
RRE VIP Borrower, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in Earnings of Unconsolidated Entities | [4] | 45 | ||
Pearlmark Mezzanine Realty Partners IV, L.P. | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in Earnings of Unconsolidated Entities | [5] | 165 | ||
Investments in Unconsolidated Entities | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in Earnings of Unconsolidated Entities | 217 | 39,545 | ||
Investment in RCT I and II | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage in VIE | [6] | 3.00% | ||
Investments in unconsolidated entities | [6] | $ 1,548 | 1,548 | |
Equity in Earnings of Unconsolidated Entities | [6] | $ 100 | $ 96 | $ 81 |
[1] | During the year ended December 31, 2018, the Company received distributions of $10.4 million on its investment in Pelium Capital Partners, L.P. (“Pelium Capital”). In December 2018, Pelium Capital was fully liquidated. | |||
[2] | In December 2018, RCM Global LLC was fully liquidated. | |||
[3] | The Company’s investment in LEAF Commercial Capital, Inc. (“LCC”) liquidated in July 2017 as a result of the sale of LCC. Earnings for the year ended December 31, 2018 were related to the receipt of a distribution of funds formerly held in escrow accounts established as part of the sale. | |||
[4] | The Company sold its investment in RRE VIP Borrower, LLC in December 2014. Earnings for the year ended December 31, 2017 was related to insurance premium refunds with respect to the underlying sold properties in the portfolio. | |||
[5] | The Company sold its investment in Pearlmark Mezzanine Realty Partners IV, L.P. (“Pearlmark Mezz”) in May 2017. | |||
[6] | During the years ended December 31, 2019, 2018 and 2017, dividends from the investments in RCT I and RCT II’s common shares were recorded in other revenue. See Note 10 for the disclosures on the associated unsecured junior subordinated debentures. |
INVESTMENTS IN UNCONSOLIDATED_4
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Schedule of Unconsolidated Entities) (Parenthetical) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Pelium Capital | |
Schedule of Equity Method Investments [Line Items] | |
Return on investment from investments in unconsolidated entities | $ 10.4 |
BORROWINGS (Schedule of Debt) (
BORROWINGS (Schedule of Debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Principal Outstanding | $ 1,891,796 | $ 1,579,170 |
Unamortized Issuance Costs and Discounts | 19,219 | 24,947 |
Outstanding Borrowings | $ 1,872,577 | $ 1,554,223 |
Weighted Average Borrowing Rate | 3.45% | 4.21% |
Weighted Average Remaining Maturity | 7 years 4 months 24 days | 6 years 10 months 24 days |
Value of Collateral | $ 2,170,546 | $ 1,953,119 |
XAN 2019-RSO7 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 575,679 | |
Unamortized Issuance Costs and Discounts | 5,007 | |
Outstanding Borrowings | $ 570,672 | |
Weighted Average Borrowing Rate | 3.03% | |
Weighted Average Remaining Maturity | 16 years 3 months 18 days | |
Value of Collateral | $ 687,037 | |
Unsecured Junior Subordinated Debentures | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 51,548 | 51,548 |
Unamortized Issuance Costs and Discounts | 0 | 0 |
Outstanding Borrowings | $ 51,548 | $ 51,548 |
Weighted Average Borrowing Rate | 5.90% | 6.61% |
Weighted Average Remaining Maturity | 16 years 8 months 12 days | 17 years 8 months 12 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 | 10,137 | 13,504 |
Outstanding Borrowings | $ 133,613 | $ 130,246 |
Weighted Average Borrowing Rate | 4.50% | 4.50% |
Weighted Average Remaining Maturity | 2 years 7 months 6 days | 3 years 7 months 6 days |
Value of Collateral | $ 0 | $ 0 |
8.00% Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 21,182 | 21,182 |
Unamortized Issuance Costs and Discounts | 9 | 238 |
Outstanding Borrowings | $ 21,173 | $ 20,944 |
Weighted Average Borrowing Rate | 8.00% | 8.00% |
Weighted Average Remaining Maturity | 15 days | 1 year |
Value of Collateral | $ 0 | $ 0 |
CRE - Term Repurchase Facilities | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 547,619 | 512,716 |
Unamortized Issuance Costs and Discounts | 2,714 | 5,269 |
Outstanding Borrowings | $ 544,905 | $ 507,447 |
Weighted Average Borrowing Rate | 3.71% | 4.47% |
Weighted Average Remaining Maturity | 1 year 2 months 12 days | 2 years |
Value of Collateral | $ 705,221 | $ 696,215 |
CMBS - Short Term Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 374,900 | 295,821 |
Unamortized Issuance Costs and Discounts | 0 | 0 |
Outstanding Borrowings | $ 374,900 | $ 295,821 |
Weighted Average Borrowing Rate | 2.87% | 3.63% |
Weighted Average Remaining Maturity | 21 days | 19 days |
Value of Collateral | $ 484,398 | $ 395,868 |
XAN 2018-RSO6 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 177,118 | 397,452 |
Unamortized Issuance Costs and Discounts | 1,352 | 4,536 |
Outstanding Borrowings | $ 175,766 | $ 392,916 |
Weighted Average Borrowing Rate | 3.17% | 3.55% |
Weighted Average Remaining Maturity | 15 years 6 months | 16 years 6 months |
Value of Collateral | $ 293,890 | $ 514,225 |
RCC 2017-CRE5 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 109,250 | |
Unamortized Issuance Costs and Discounts | 1,121 | |
Outstanding Borrowings | $ 108,129 | |
Weighted Average Borrowing Rate | 3.76% | |
Weighted Average Remaining Maturity | 15 years 7 months 6 days | |
Value of Collateral | $ 228,031 | |
Trust Certificates Term Repurchase Facility | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 47,451 | |
Unamortized Issuance Costs and Discounts | 279 | |
Outstanding Borrowings | $ 47,172 | |
Weighted Average Borrowing Rate | 6.41% | |
Weighted Average Remaining Maturity | 1 year 8 months 12 days | |
Value of Collateral | $ 118,780 |
BORROWINGS (Schedule of Debt)_2
BORROWINGS (Schedule of Debt) (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 31, 2015 |
Debt Instrument [Line Items] | ||||
Accrued interest costs | $ 4,408 | $ 4,224 | ||
4.50% Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 4.50% | 4.50% | 4.50% | |
8.00% Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 8.00% | 8.00% | 8.00% | |
CRE - Term Repurchase Facilities | ||||
Debt Instrument [Line Items] | ||||
Accrued interest costs | $ 810 | $ 911 | ||
CMBS - Short Term Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Accrued interest costs | $ 470 | 773 | ||
Trust Certificates Term Repurchase Facility | ||||
Debt Instrument [Line Items] | ||||
Accrued interest costs | $ 118 |
BORROWINGS (Securitization) (De
BORROWINGS (Securitization) (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
XAN 2018-RSO6 Senior Notes | |
Debt Instrument [Line Items] | |
Closing Date | 2018-06 |
Maturity Date | 2035-06 |
End of Designated Principal Reinvestment Period | 2020-12 |
Total Note Paydowns from Closing Date through December 31, 2019 | $ 220,334 |
XAN 2019-RSO7 Senior Notes | |
Debt Instrument [Line Items] | |
Closing Date | 2019-04 |
Maturity Date | 2036-04 |
End of Designated Principal Reinvestment Period | 2022-04 |
Total Note Paydowns from Closing Date through December 31, 2019 | $ 132 |
BORROWINGS (RCC 2014-CRE2) (Det
BORROWINGS (RCC 2014-CRE2) (Details) - USD ($) $ in Millions | Jul. 31, 2014 | Jul. 30, 2014 |
RCC 2014-CRE2 | ||
Debt Instrument [Line Items] | ||
Closing transaction amount | $ 353.9 | $ 353.9 |
BORROWINGS (RCC 2015-CRE3 and C
BORROWINGS (RCC 2015-CRE3 and CRE4) (Details) - USD ($) $ in Millions | Aug. 31, 2015 | Feb. 28, 2015 |
RCC 2015-CRE3 Senior Notes | ||
Debt Instrument [Line Items] | ||
Closing transaction amount | $ 346.2 | |
RCC 2015-CRE4 Senior Notes | ||
Debt Instrument [Line Items] | ||
Closing transaction amount | $ 312.9 |
BORROWINGS (RCC 2017-CRE5) (Det
BORROWINGS (RCC 2017-CRE5) (Details) $ in Millions | Jul. 30, 2017USD ($) |
RCC 2017-CRE5 Senior Notes | |
Debt Instrument [Line Items] | |
Closing transaction amount | $ 376.7 |
BORROWINGS (XAN 2018-RSO6) (Det
BORROWINGS (XAN 2018-RSO6) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 919,805 | $ 850,440 | |
XAN 2018-RSO6 Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Closing transaction amount | $ 514,200 | ||
Maturity Date | 2035-06 | ||
XAN 2018-RSO6 Senior Notes | Senior Notes | Unrelated Investors | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 405,000 | ||
XAN 2018-RSO6 Senior Notes | Senior Notes | Preferred Stock | Subsidiary of RCC Real Estate | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding preferred shares | 100.00% | ||
XAN 2018-RSO6 Senior Notes | Senior Notes | Debt Instrument, Class D | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 45,000 | ||
XAN 2018-RSO6 Senior Notes | Senior Notes | Debt Instrument, Class D | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.50% | ||
XAN 2018-RSO6 Senior Notes | Senior Notes | Debt Instrument, Class D | London Interbank Offered Rate (LIBOR) | September 2023 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.00% | ||
XAN 2018-RSO6 Senior Notes | Senior Notes | Debt Instrument, Class D | Subsidiary of RCC Real Estate | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 16.70% | ||
XAN 2018-RSO6 Senior Notes | Senior Notes | Debt Instrument, Class E | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 18,000 | ||
XAN 2018-RSO6 Senior Notes | Senior Notes | Debt Instrument, Class E | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 4.00% | ||
XAN 2018-RSO6 Senior Notes | Senior Notes | Debt Instrument, Class E | Subsidiary of RCC Real Estate | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | ||
XAN 2018-RSO6 Senior Notes | Senior Notes | Debt Instrument, Class F | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 21,900 | ||
XAN 2018-RSO6 Senior Notes | Senior Notes | Debt Instrument, Class F | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 5.00% | ||
XAN 2018-RSO6 Senior Notes | Senior Notes | Debt Instrument, Class F | Subsidiary of RCC Real Estate | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | ||
XAN 2018-RSO6 Senior Notes | Senior Notes | Debt Instrument, Class A | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 290,500 | ||
XAN 2018-RSO6 Senior Notes | Senior Notes | Debt Instrument, Class A | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.83% | ||
XAN 2018-RSO6 Senior Notes | Senior Notes | Debt Instrument, Class A | London Interbank Offered Rate (LIBOR) | May 2023 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.08% | ||
XAN 2018-RSO6 Senior Notes | Senior Notes | Debt Instrument, Class B | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 39,200 | ||
XAN 2018-RSO6 Senior Notes | Senior Notes | Debt Instrument, Class B | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.15% | ||
XAN 2018-RSO6 Senior Notes | Senior Notes | Debt Instrument, Class B | London Interbank Offered Rate (LIBOR) | July 2023 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.65% | ||
XAN 2018-RSO6 Senior Notes | Senior Notes | Debt Instrument, Class C | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 30,200 | ||
XAN 2018-RSO6 Senior Notes | Senior Notes | Debt Instrument, Class C | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.85% | ||
XAN 2018-RSO6 Senior Notes | Senior Notes | Debt Instrument, Class C | London Interbank Offered Rate (LIBOR) | July 2023 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.35% |
BORROWINGS (XAN 2019-RSO7) (Det
BORROWINGS (XAN 2019-RSO7) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 919,805 | $ 850,440 | |
XAN 2019-RSO7 Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Closing transaction amount | $ 687,200 | ||
Face amount of debt issued | 585,800 | ||
Maturity Date | 2036-04 | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Subsidiary of RCC Real Estate | |||
Debt Instrument [Line Items] | |||
Ownership interest amount in principal balance of outstanding debt | $ 10,000 | ||
Interest ownership percentage on outstanding debt | 100.00% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Preferred Stock | Subsidiary of RCC Real Estate | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding preferred shares | 100.00% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class D | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 49,000 | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class D | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.70% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class D | London Interbank Offered Rate (LIBOR) | July 2023 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.20% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class D | Subsidiary of RCC Real Estate | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 20.40% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class E and F | Subsidiary of RCC Real Estate | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class A | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 390,000 | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class A | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class A | London Interbank Offered Rate (LIBOR) | April 2024 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class A-S | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 70,400 | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class A-S | April 2024 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class A-S | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class B | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 33,500 | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class B | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.70% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class B | London Interbank Offered Rate (LIBOR) | May 2024 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.20% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class C | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 42,900 | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class C | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.05% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class C | London Interbank Offered Rate (LIBOR) | May 2023 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.55% |
BORROWINGS (Unsecured Junior Su
BORROWINGS (Unsecured Junior Subordinated Debentures) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2016 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 919,805,000 | $ 850,440,000 | |
Unsecured Junior Subordinated Debentures | RCT I entity | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 25,800,000 | ||
Debt issuance costs, amortization period (in years) | 10 years | ||
Interest rate at period end | 5.91% | 6.75% | |
Maturity Date | 2036-06 | ||
Unsecured Junior Subordinated Debentures | RCT II entity | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 25,800,000 | ||
Debt issuance costs, amortization period (in years) | 10 years | ||
Interest rate at period end | 5.89% | 6.47% | |
Maturity Date | 2036-10 |
BORROWINGS (4.50% Convertible S
BORROWINGS (4.50% Convertible Senior Notes, 6.00% Convertible Senior Notes and 8.00% Convertible Senior Notes) (Details) - USD ($) | 1 Months Ended | |||||
Aug. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 31, 2015 | Oct. 31, 2013 | |
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | $ 919,805,000 | $ 850,440,000 | ||||
8.00% Convertible Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | $ 100,000,000 | |||||
Debt instrument, interest rate, stated percentage | 8.00% | 8.00% | 8.00% | |||
Extinguishment of debt, amount | $ 78,800,000 | |||||
4.50% Convertible Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | 143,800,000 | |||||
Debt instrument, interest rate, stated percentage | 4.50% | 4.50% | 4.50% | |||
Closing price of common stock | $ 11.81 | |||||
Six Percent Convertible Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | $ 115,000,000 | |||||
Debt instrument, interest rate, stated percentage | 6.00% | 6.00% | ||||
Extinguishment of debt, amount | $ 44,500,000 |
BORROWINGS (Schedule of Convert
BORROWINGS (Schedule of Convertible Senior Notes) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($) | Dec. 31, 2017 | Jan. 31, 2015 | |
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 1,891,796 | $ 1,579,170 | ||
4.50% Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 143,750 | $ 143,750 | ||
Borrowing Rate | 4.50% | 4.50% | 4.50% | |
Effective Rate | 7.43% | |||
Conversion Rate | 83.1676 | |||
Conversion Price | $ / shares | $ 12.02 | |||
Maturity Date | Aug. 15, 2022 | |||
8.00% Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 21,182 | $ 21,182 | ||
Borrowing Rate | 8.00% | 8.00% | 8.00% | |
Effective Rate | 9.13% | |||
Conversion Rate | 46.8604 | |||
Conversion Price | $ / shares | $ 21.34 | |||
Maturity Date | Jan. 15, 2020 |
BORROWINGS (Schedule of Conve_2
BORROWINGS (Schedule of Convertible Senior Notes) (Parenthetical) (Details) - USD ($) | 1 Months Ended | ||||
Aug. 31, 2017 | Jan. 31, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
4.50% Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Conversion principal amount | $ 1,000 | ||||
Debt instrument convertible dividend threshold (in dollars per share) | $ 0.10 | ||||
Borrowing Rate | 4.50% | 4.50% | 4.50% | ||
8.00% Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Conversion principal amount | $ 1,000 | ||||
Debt instrument convertible dividend threshold (in dollars per share) | $ 0.64 | ||||
Borrowing Rate | 8.00% | 8.00% | 8.00% |
BORROWINGS (Repurchase and Cred
BORROWINGS (Repurchase and Credit Facilities) (Details) $ in Thousands | Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan |
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 919,805 | $ 850,440 |
Value of Collateral | $ 1,189,619 | $ 1,210,863 |
Weighted Average Interest Rate | 3.45% | 4.21% |
CMBS - Short-Term Repurchase Agreements | RBC Capital Markets, LLC | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 34,829 | $ 246,476 |
Value of Collateral | $ 47,081 | $ 313,644 |
Number of Positions as Collateral | Loan | 5 | 33 |
Weighted Average Interest Rate | 2.96% | 3.64% |
CMBS - Short-Term Repurchase Agreements | JP Morgan Securities LLC | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 33,703 | $ 42,040 |
Value of Collateral | $ 42,075 | $ 73,066 |
Number of Positions as Collateral | Loan | 13 | 13 |
Weighted Average Interest Rate | 2.87% | 3.57% |
CMBS - Short-Term Repurchase Agreements | Barclays Capital Inc. | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 87,643 | |
Value of Collateral | $ 112,939 | |
Number of Positions as Collateral | Loan | 7 | |
Weighted Average Interest Rate | 2.82% | |
CMBS - Short-Term Repurchase Agreements | Deutsche Bank Securities Inc. | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 37,141 | $ 7,305 |
Value of Collateral | $ 57,331 | $ 9,158 |
Number of Positions as Collateral | Loan | 6 | 5 |
Weighted Average Interest Rate | 3.13% | 3.98% |
CMBS - Short-Term Repurchase Agreements | RBC (Barbados) Trading Bank Corporation | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 181,584 | |
Value of Collateral | $ 224,972 | |
Number of Positions as Collateral | Loan | 30 | |
Weighted Average Interest Rate | 2.82% | |
CRE - Term Repurchase Facilities | Wells Fargo Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 225,217 | $ 154,478 |
Value of Collateral | $ 291,903 | $ 226,530 |
Number of Positions as Collateral | Loan | 28 | 13 |
Weighted Average Interest Rate | 3.70% | 4.33% |
CRE - Term Repurchase Facilities | Morgan Stanley Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 37,113 | |
Value of Collateral | $ 62,457 | |
Number of Positions as Collateral | Loan | 3 | |
Weighted Average Interest Rate | 5.09% | |
CRE - Term Repurchase Facilities | Barclays Bank PLC | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 111,881 | $ 240,416 |
Value of Collateral | $ 145,035 | $ 308,389 |
Number of Positions as Collateral | Loan | 14 | 11 |
Weighted Average Interest Rate | 3.99% | 4.51% |
CRE - Term Repurchase Facilities | JPMorgan Chase Bank, N. A. | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 207,807 | $ 75,440 |
Value of Collateral | $ 268,283 | $ 98,839 |
Number of Positions as Collateral | Loan | 17 | 5 |
Weighted Average Interest Rate | 3.56% | 4.30% |
Trust Certificates Term Repurchase Facility | RSO Repo SPE Trust 2015 | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 47,172 | |
Value of Collateral | $ 118,780 | |
Number of Positions as Collateral | Loan | 2 | |
Weighted Average Interest Rate | 6.41% |
BORROWINGS (Repurchase and Cr_2
BORROWINGS (Repurchase and Credit Facilities) (Parenthetical) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | $ 19,219,000 | $ 24,947,000 |
CRE - Term Repurchase Facilities | Wells Fargo Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | 607,000 | 1,600,000 |
CRE - Term Repurchase Facilities | Morgan Stanley Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | 0 | 167,000 |
CRE - Term Repurchase Facilities | Barclays Bank PLC | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | 817,000 | 1,500,000 |
CRE - Term Repurchase Facilities | J P Morgan Chase Bank | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | 1,300,000 | 2,000,000 |
Trust Certificates Term Repurchase Facility | RSO Repo SPE Trust 2015 | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | $ 0 | $ 204,000 |
BORROWINGS (Amount at Risk Unde
BORROWINGS (Amount at Risk Under Repurchase Facilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 7 years 4 months 24 days | 6 years 10 months 24 days |
Weighted Average Interest Rate | 3.45% | 4.21% |
CMBS - Short-Term Repurchase Agreements | Barclays Capital Inc. | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 2.82% | |
CMBS - Short-Term Repurchase Agreements | RBC Capital Markets, LLC | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 2.96% | 3.64% |
CMBS - Short-Term Repurchase Agreements | JP Morgan Securities LLC | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 2.87% | 3.57% |
CMBS - Short-Term Repurchase Agreements | RBC (Barbados) Trading Bank Corporation | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 2.82% | |
CMBS - Short-Term Repurchase Agreements | Deutsche Bank Securities Inc. | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 3.13% | 3.98% |
CRE - Term Repurchase Facilities | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 1 year 2 months 12 days | 2 years |
Weighted Average Interest Rate | 3.71% | 4.47% |
Linked and Non-linked Transactions | CMBS - Short-Term Repurchase Agreements | Barclays Capital Inc. | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 25,532 | |
Weighted Average Remaining Maturity | 17 days | |
Weighted Average Interest Rate | 2.82% | |
Linked and Non-linked Transactions | CMBS - Short-Term Repurchase Agreements | RBC Capital Markets, LLC | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 12,341 | |
Weighted Average Remaining Maturity | 17 days | |
Weighted Average Interest Rate | 2.96% | |
Linked and Non-linked Transactions | CMBS - Short-Term Repurchase Agreements | JP Morgan Securities LLC | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 8,512 | |
Weighted Average Remaining Maturity | 18 days | |
Weighted Average Interest Rate | 2.87% | |
Linked and Non-linked Transactions | CMBS - Short-Term Repurchase Agreements | RBC (Barbados) Trading Bank Corporation | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 43,722 | |
Weighted Average Remaining Maturity | 20 days | |
Weighted Average Interest Rate | 2.82% | |
Linked and Non-linked Transactions | CMBS - Short-Term Repurchase Agreements | Deutsche Bank Securities Inc. | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 20,329 | |
Weighted Average Remaining Maturity | 42 days | |
Weighted Average Interest Rate | 3.13% | |
Linked and Non-linked Transactions | CRE - Term Repurchase Facilities | Wells Fargo Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 67,007 | |
Weighted Average Remaining Maturity | 203 days | |
Weighted Average Interest Rate | 3.70% | |
Linked and Non-linked Transactions | CRE - Term Repurchase Facilities | Barclays Bank PLC | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 32,967 | |
Weighted Average Remaining Maturity | 1 year 3 months 18 days | |
Weighted Average Interest Rate | 3.99% | |
Linked and Non-linked Transactions | CRE - Term Repurchase Facilities | JPMorgan Chase Bank, N. A. | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 60,159 | |
Weighted Average Remaining Maturity | 1 year 9 months 18 days | |
Weighted Average Interest Rate | 3.56% |
BORROWINGS (CRE - Term Repurcha
BORROWINGS (CRE - Term Repurchase Facilities) (Details) - Line of Credit - CRE - Term Repurchase Facilities | 1 Months Ended | ||||
Oct. 31, 2018USD ($)extension | Jul. 31, 2018USD ($)extension | Apr. 30, 2018USD ($) | Sep. 30, 2015 | Sep. 30, 2018USD ($) | |
Wells Fargo Bank, N.A. | |||||
Debt Instrument [Line Items] | |||||
Maximum facility amount | $ 400,000,000 | ||||
Maturity Date | 2020-07 | ||||
Number of options to extend | extension | 3 | ||||
Option to extend, term | 1 year | ||||
Morgan Stanley Bank, N.A. | |||||
Debt Instrument [Line Items] | |||||
Maximum facility amount | $ 37,200,000 | ||||
Maturity Date | 2019-10 | ||||
Barclays Bank PLC | |||||
Debt Instrument [Line Items] | |||||
Maximum facility amount | $ 250,000,000 | ||||
Maturity Date | 2021-04 | ||||
Option to extend, term | 1 year | ||||
JPMorgan Chase Bank, N. A. | |||||
Debt Instrument [Line Items] | |||||
Maximum facility amount | $ 250,000,000 | ||||
Maturity Date | 2021-10 | ||||
Number of options to extend | extension | 2 | ||||
Option to extend, term | 1 year | ||||
Guaranty Agreement, maximum percentage of then current unpaid aggregate repurchase price of all purchased assets | 25.00% | ||||
London Interbank Offered Rate (LIBOR) | Wells Fargo Bank, N.A. | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
London Interbank Offered Rate (LIBOR) | Wells Fargo Bank, N.A. | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.50% | ||||
London Interbank Offered Rate (LIBOR) | Barclays Bank PLC | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.00% | ||||
London Interbank Offered Rate (LIBOR) | Barclays Bank PLC | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.50% | ||||
London Interbank Offered Rate (LIBOR) | JPMorgan Chase Bank, N. A. | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.00% | ||||
London Interbank Offered Rate (LIBOR) | JPMorgan Chase Bank, N. A. | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.25% |
BORROWINGS (CMBS - Short-Term R
BORROWINGS (CMBS - Short-Term Repurchase Agreements) (Details) - CMBS - Short-Term Repurchase Agreements - USD ($) | Feb. 29, 2012 | Mar. 31, 2005 |
Deutsche Bank Securities Inc. | ||
Debt Instrument [Line Items] | ||
Maximum facility amount | $ 0 | |
Wells Fargo Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Maximum facility amount | $ 0 |
BORROWINGS (Contractual Commitm
BORROWINGS (Contractual Commitments) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
Total | $ 1,891,796 |
2020 | 621,906 |
2021 | 321,795 |
2022 | 143,750 |
2023 | 0 |
2024 and Thereafter | 804,345 |
CRE securitizations | |
Debt Instrument [Line Items] | |
Total | 752,797 |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 and Thereafter | 752,797 |
Unsecured Junior Subordinated Debentures | |
Debt Instrument [Line Items] | |
Total | 51,548 |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 and Thereafter | 51,548 |
Convertible Debt | 4.50% Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Total | 143,750 |
2020 | 0 |
2021 | 0 |
2022 | 143,750 |
2023 | 0 |
2024 and Thereafter | 0 |
Convertible Debt | 8.00% Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Total | 21,182 |
2020 | 21,182 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 and Thereafter | 0 |
Repurchase and credit facilities | |
Debt Instrument [Line Items] | |
Total | 922,519 |
2020 | 600,724 |
2021 | 321,795 |
2022 | 0 |
2023 | 0 |
2024 and Thereafter | $ 0 |
SHARE ISSUANCE AND REPURCHASE (
SHARE ISSUANCE AND REPURCHASE (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018 | Jan. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2016 | |
Class Of Stock [Line Items] | ||||||
Preferred stock redemption charge | $ 0 | $ 7,482,000 | $ 3,803,000 | |||
Shares repurchased during period, value | 0 | $ 0 | 0 | |||
Equity and Debt Securities Repurchase Program | ||||||
Class Of Stock [Line Items] | ||||||
Stock repurchase program, authorized amount (up to) | $ 50,000,000 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 44,900,000 | |||||
8.50% Series A Preferred Stock | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock, coupon authorized | 8.50% | |||||
8.25% Series B Preferred Stock | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock, coupon authorized | 8.25% | |||||
Stock redeemed in shares | 930,983 | |||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | ||||
Stock redeemed during period, value | $ 115,300,000 | |||||
Redeemable Preferred Stock Series A and Series B | ||||||
Class Of Stock [Line Items] | ||||||
Stock redeemed during period, value | $ 50,000,000 | |||||
8.625% Series C Preferred Stock | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock, coupon authorized | 8.625% | 8.625% | ||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | ||||
Preferred stock, shares outstanding (in shares) | 4,800,000 | 4,800,000 | ||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | |||||
8.625% 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% |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2019shares | May 31, 2014shares | Dec. 31, 2019USD ($)Directorshares | Dec. 31, 2018USD ($)Directorshares | Dec. 31, 2017USD ($)Directorshares | |
Manager Pursuant To 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% | ||||
Incentive management fee pursuant to the management agreement | $ 606,000,000 | $ 0 | $ 2,200,000 | ||
Incentive management fee paid or payable in cash pursuant to the management agreement | 455,000,000 | 1,600,000 | |||
Manager Pursuant To Management Agreement | Exantas Capital Corp | Common Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Incentive management fee paid or payable in equity pursuant to the management agreement | $ 151,000,000 | $ 539,000,000 | |||
Shares issued pursuant to the management agreement (in shares) | shares | 13,307 | 51,300 | |||
Stock Options | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Grants in period (in shares) | shares | 0 | 0 | |||
Contractual term | 10 years | ||||
Stock options expiration year | 2021 | ||||
Non-Employees | Restricted Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Estimated fair value of shares granted | $ 2,000,000 | $ 2,000,000 | $ 2,700,000 | ||
Number of non employee directors granted shares | Director | 8 | 8 | 8 | ||
Payment award, grant date fair value | $ 300,000 | $ 255,000 | $ 325,000 | ||
Compensation cost not yet recognized | $ 1,100,000 | $ 1,100,000 | |||
Weighted average remaining contractual term | 1 year 9 months 18 days | 1 year 9 months 18 days | |||
2007 Omnibus Equity Compensation Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of share options authorized for issue (in shares) | shares | 4,775,000 | 3,275,000 | |||
Share based compensation expiration period | 2029-06 | 2024-05 |
SHARE-BASED COMPENSATION (Commo
SHARE-BASED COMPENSATION (Common Stock Activity) (Details) - Restricted Stock | 12 Months Ended |
Dec. 31, 2019shares | |
January 22, 2019 | |
Restricted common stock transactions | |
Stock-based compensation (in shares) | 196,198 |
Vesting per Year | 33.30% |
February 1, 2019 | |
Restricted common stock transactions | |
Stock-based compensation (in shares) | 3,308 |
Vesting per Year | 100.00% |
March 8, 2019 | |
Restricted common stock transactions | |
Stock-based compensation (in shares) | 14,108 |
Vesting per Year | 100.00% |
June 1, 2019 | |
Restricted common stock transactions | |
Stock-based compensation (in shares) | 3,164 |
Vesting per Year | 100.00% |
June 8, 2019 | |
Restricted common stock transactions | |
Stock-based compensation (in shares) | 3,170 |
Vesting per Year | 100.00% |
June 19, 2019 | |
Restricted common stock transactions | |
Stock-based compensation (in shares) | 900 |
Vesting per Year | 100.00% |
September 30, 2019 | |
Restricted common stock transactions | |
Stock-based compensation (in shares) | 3,078 |
Vesting per Year | 100.00% |
Manager | |
Restricted common stock transactions | |
Issued (shares) | 13,307 |
Vested (shares) | (13,307) |
Non-Employee Directors | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 30,234 |
Issued (shares) | 27,728 |
Vested (shares) | (30,234) |
Forfeited (shares) | (3,170) |
Unvested shares, end of period (in shares) | 24,558 |
Non-Employees | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 386,628 |
Issued (shares) | 196,198 |
Vested (shares) | (175,454) |
Forfeited (shares) | (10,968) |
Unvested shares, end of period (in shares) | 396,404 |
Former Employees | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 5,809 |
Vested (shares) | (5,809) |
Manager and Non Employees | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 422,671 |
Issued (shares) | 237,233 |
Vested (shares) | (224,804) |
Forfeited (shares) | (14,138) |
Unvested shares, end of period (in shares) | 420,962 |
SHARE-BASED COMPENSATION (Statu
SHARE-BASED COMPENSATION (Status of Vested Stock Options) (Details) - Vested $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / 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 | 1 year 4 months 17 days |
Aggregate Intrinsic Value | $ | $ 0 |
SHARE-BASED COMPENSATION (Compo
SHARE-BASED COMPENSATION (Components of Equity Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total equity compensation expense | $ 2,213 | $ 2,717 | $ 2,738 |
Non-Employees | Restricted Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total equity compensation expense | 1,937 | 2,427 | 2,456 |
Non-Employee Directors | Restricted Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total equity compensation expense | $ 276 | $ 290 | $ 282 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income from continuing operations | $ 6,424 | $ 12,620 | $ 9,003 | $ 8,170 | $ 9,994 | $ 8,260 | $ 9,189 | $ (137) | $ 36,217 | $ 27,306 | $ 47,457 |
Net income allocated to preferred shares | (2,587) | (2,588) | (2,587) | (2,588) | (2,587) | (2,588) | (2,587) | (5,210) | (10,350) | (12,972) | (24,057) |
Consideration paid in excess of carrying value of preferred shares | (7,482) | (7,482) | (3,803) | ||||||||
Net loss allocable to non-controlling interest, net of taxes | 0 | (196) | |||||||||
Net income from continuing operations allocable to common shares | 25,867 | 6,852 | 19,793 | ||||||||
Net (loss) income from discontinued operations, net of tax | (39) | (63) | (112) | (37) | (40) | 364 | (450) | 247 | (251) | 121 | (14,116) |
NET INCOME ALLOCABLE TO COMMON SHARES | $ 3,798 | $ 9,969 | $ 6,304 | $ 5,545 | $ 7,367 | $ 6,036 | $ 6,152 | $ (12,582) | $ 25,616 | $ 6,973 | $ 5,677 |
Weighted average number of common shares outstanding: | |||||||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC (in shares) | 31,430,113 | 31,198,319 | 30,836,400 | ||||||||
Effect of dilutive securities - unvested restricted stock | 240,243 | 184,783 | 239,387 | ||||||||
Weighted average number of common shares outstanding - diluted | 31,670,356 | 31,383,102 | 31,075,787 | ||||||||
Net income per common share - basic: | |||||||||||
Continuing operations | $ 0.12 | $ 0.32 | $ 0.20 | $ 0.18 | $ 0.24 | $ 0.18 | $ 0.21 | $ (0.41) | $ 0.82 | $ 0.22 | $ 0.64 |
Discontinued operations | 0.01 | (0.01) | 0.01 | 0 | (0.46) | ||||||
TOTAL NET INCOME PER COMMON SHARE - BASIC (in dollars per share) | 0.12 | 0.32 | 0.20 | 0.18 | 0.24 | 0.19 | 0.20 | (0.40) | 0.82 | 0.22 | 0.18 |
Net income per common share - diluted: | |||||||||||
Continuing operations (in dollars per share) | 0.12 | 0.31 | 0.20 | 0.18 | 0.23 | 0.18 | 0.21 | (0.41) | 0.81 | 0.22 | 0.64 |
Discontinued operations (in dollars per share) | 0.01 | (0.01) | 0.01 | 0 | (0.46) | ||||||
TOTAL NET INCOME PER COMMON SHARE - DILUTED (in dollars per share) | $ 0.12 | $ 0.31 | $ 0.20 | $ 0.18 | $ 0.23 | $ 0.19 | $ 0.20 | $ (0.40) | $ 0.81 | $ 0.22 | $ 0.18 |
DISTRIBUTIONS (Details)
DISTRIBUTIONS (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Distributions [Abstract] | |||
Dividend per share (in dollars per share) | $ 0.95 | $ 0.475 | $ 0.20 |
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 | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 26, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class Of Stock [Line Items] | ||||||||||||||||
Dividend Per Share | $ 0.95 | $ 0.475 | $ 0.20 | |||||||||||||
Common Stock | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Date Paid | Jan. 28, 2020 | Oct. 25, 2019 | Jul. 26, 2019 | Apr. 26, 2019 | Jan. 25, 2019 | Oct. 26, 2018 | Jul. 27, 2018 | Apr. 27, 2018 | Jan. 26, 2018 | Oct. 27, 2017 | Jul. 28, 2017 | Apr. 27, 2017 | ||||
Total Dividend Paid | $ 8,767 | $ 7,967 | $ 7,172 | $ 6,373 | $ 5,540 | $ 4,749 | $ 3,165 | $ 1,584 | $ 1,572 | $ 1,566 | $ 1,567 | $ 1,568 | ||||
Dividend Per Share | $ 0.275 | $ 0.25 | $ 0.225 | $ 0.20 | $ 0.175 | $ 0.15 | $ 0.10 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | ||||
Series A Preferred Stock | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Date Paid | Jan. 30, 2018 | Oct. 30, 2017 | Jul. 31, 2017 | May 1, 2017 | ||||||||||||
Total Dividend Paid | $ 568 | $ 568 | $ 568 | $ 568 | ||||||||||||
Dividend Per Share | $ 0.531250 | $ 0.531250 | $ 0.531250 | $ 0.531250 | ||||||||||||
Series B Preferred Stock | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Date Paid | Mar. 26, 2018 | Jan. 30, 2018 | Oct. 30, 2017 | Jul. 31, 2017 | May 1, 2017 | |||||||||||
Total Dividend Paid | $ 1,480 | $ 2,859 | $ 2,859 | $ 2,859 | $ 2,859 | |||||||||||
Dividend Per Share | $ 0.320830 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | |||||||||||
Series C Preferred Stock | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Date Paid | Jan. 30, 2020 | Oct. 30, 2019 | Jul. 30, 2019 | Apr. 30, 2019 | Jan. 30, 2019 | Oct. 30, 2018 | Jul. 30, 2018 | Apr. 30, 2018 | Jan. 30, 2018 | Oct. 30, 2017 | Jul. 31, 2017 | May 1, 2017 | ||||
Total Dividend Paid | $ 2,587 | $ 2,588 | $ 2,587 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | ||||
Dividend Per Share | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | $ 553,819 |
Ending balance | 556,398 |
Net Unrealized (Loss) Gain on Derivatives | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | 563 |
Other comprehensive (loss) income before reclassifications | (4,471) |
Amounts reclassified from accumulated other comprehensive income | (91) |
Ending balance | (3,999) |
Net Unrealized (Loss) Gain on Investment Securities Available-for-Sale | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | (3,620) |
Other comprehensive (loss) income before reclassifications | 9,444 |
Amounts reclassified from accumulated other comprehensive income | (4) |
Ending balance | 5,820 |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | (3,057) |
Other comprehensive (loss) income before reclassifications | 4,973 |
Amounts reclassified from accumulated other comprehensive income | (95) |
Ending balance | $ 1,821 |
RELATED PARTY TRANSACTIONS (Man
RELATED PARTY TRANSACTIONS (Management Agreement) (Details) | 12 Months Ended |
Dec. 31, 2019USD ($)period | |
Related Party Transaction [Line Items] | |
Investment management fee equity multiplier | 1.50% |
Investment management fee, monthly amount | $ 937,500 |
Incentive compensation multiplier | 20.00% |
Incentive compensation, weighted average price share multiplier, one | 1.75% |
Weighted average price share multiplier | 0.4375% |
Weighted average price share multiplier, description | 0.4375% plus one-fourth of the Ten Year Treasury Rate for such quarter |
Incentive compensation, maximum percentage of net income before such fees | 20.00% |
Incentive compensation paid in common stock minimum holding period before sale | 1 year |
Average closing price period for shares traded on a securities exchange | 30 days |
Average closing price time period before issuance for shares traded on a securities exchange | 3 days |
Average closing price period for shares traded over-the-counter | 30 days |
Average closing price time period before issuance for shares traded over-the-counter | 3 days |
Renewal period | 1 year |
Management agreement, required termination notice period | 180 days |
Number of 12-month periods for measurement of termination fee for investment management agreement | period | 2 |
Management agreement, required termination notice period, with cause | 30 days |
Management agreement, termination fee payable with cause | $ 0 |
Management agreement, termination for cause terms, continued material breach of provision of agreement, period | 30 days |
Management agreement, termination for cause terms, period following change in control, change in control detrimental to manager | 18 months |
Minimum | |
Related Party Transaction [Line Items] | |
Percentage of incentive compensation manager may elect to receive in common stock | 25.00% |
Manager | Fixed-Rate Commercial Real Estate Loans Held For Sale | |
Related Party Transaction [Line Items] | |
Percentage of reimbursement out-of-pocket expenses on principal amount of loan issued | 1.00% |
Manager pursuant to the Management Agreement | Resource Capital Corp | |
Related Party Transaction [Line Items] | |
Deferred compensation arrangement with individual, cash awards, percentage | 75.00% |
Deferred compensation arrangement with individual, common stock awards, percentage | 25.00% |
RELATED PARTY TRANSACTIONS (Rel
RELATED PARTY TRANSACTIONS (Relationship with C-III and Certain of its Subsidiaries) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Base management fees paid by the Company | $ 8,954,000 | $ 11,250,000 | $ 13,117,000 |
General and administrative | $ 10,392,000 | 10,666,000 | 15,846,000 |
C3AM | Exantas Capital Corp | |||
Related Party Transaction [Line Items] | |||
Number of common stock of the Company owned by a related party (in shares) | 780,025 | ||
Ownership percentage in VIE | 2.40% | ||
Manager Pursuant To Management Agreement | Exantas Capital Corp | |||
Related Party Transaction [Line Items] | |||
Base management fees paid by the Company | $ 8,300,000 | 11,300,000 | 10,800,000 |
Incentive compensation | 606,000 | 0 | 2,200,000 |
Incentive compensation payable in cash | 455,000 | 1,600,000 | |
Incentive compensation payable in common stock | 151,000 | 539,000 | |
Total indebtedness | 701,000 | 938,000 | |
Incentive compensation payable and Servicing fees payable | 0 | 0 | |
General and administrative | 4,200,000 | 5,000,000 | $ 5,700,000 |
Resource America | Exantas Capital Corp | |||
Related Party Transaction [Line Items] | |||
Total indebtedness | $ 1,100,000 | $ 333,000 |
RELATED PARTY TRANSACTIONS (R_2
RELATED PARTY TRANSACTIONS (Relationship with Resource Real Estate, LLC) (Details) - USD ($) | 12 Months Ended | |||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 31, 2017 | Aug. 31, 2015 | Feb. 28, 2015 | Jul. 31, 2014 | Jul. 30, 2014 | |
Related Party Transaction [Line Items] | ||||||||
Special fees | $ 101,000 | $ 120,000 | $ 2,048,000 | |||||
RCC 2014-CRE2 | ||||||||
Related Party Transaction [Line Items] | ||||||||
Closing transaction amount | $ 353,900,000 | $ 353,900,000 | ||||||
RCC 2015-CRE3 | ||||||||
Related Party Transaction [Line Items] | ||||||||
Closing transaction amount | $ 346,200,000 | |||||||
RCC 2015-CRE4 | ||||||||
Related Party Transaction [Line Items] | ||||||||
Closing transaction amount | $ 312,900,000 | |||||||
RCC 2017-CRE5 | ||||||||
Related Party Transaction [Line Items] | ||||||||
Closing transaction amount | $ 376,700,000 | |||||||
Resource Real Estate | ||||||||
Related Party Transaction [Line Items] | ||||||||
Special fees | 0 | 0 | $ 0 | |||||
Resource Real Estate | Commercial Real Estate Debt Investments | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party transaction, due from related party | $ 101,000 | $ 26,000 |
RELATED PARTY TRANSACTIONS (R_3
RELATED PARTY TRANSACTIONS (Relationship with C3AM and C-III Commercial Mortgage) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 30, 2019 | Jul. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||||||
Outstanding payables | $ 1,789,985,000 | $ 1,568,967,000 | $ 1,346,663,000 | $ 1,444,456,000 | |||
RCC 2017-CRE5 | |||||||
Related Party Transaction [Line Items] | |||||||
Closing transaction amount | $ 376,700,000 | ||||||
C-III Commercial Mortgage LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Aggregate purchase price of loan acquired | $ 197,600,000 | ||||||
Deferred origination fee and exit fee excess percentage on outstanding principal | 0.50% | ||||||
Exit fee earn | $ 108,000 | ||||||
Outstanding payables | 0 | ||||||
C3AM | Asset Management Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of total collateral pool value to securitization, related party contribution | 10.20% | ||||||
C3AM | XAN 2018-RSO6 Senior Notes | Asset Management Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Closing transaction amount | $ 514,200,000 | ||||||
C3AM | XAN 2019-RSO7 Senior Notes | Asset Management Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Closing transaction amount | $ 687,200,000 | ||||||
C3AM | RCC 2017-CRE5 | Asset Management Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Servicing fees earned | 565,000 | 321,000 | $ 96,000 | ||||
Incentive compensation payable and Servicing fees payable | $ 37,000 | $ 26,000 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Investment securities available-for-sale | $ 520,714 | $ 418,998 |
Derivative assets at fair value | 30 | 985 |
Liabilities: | ||
Derivative liabilities at fair value | 4,558 | 1,043 |
Recurring Basis | ||
Assets: | ||
Investment securities available-for-sale | 520,714 | 418,998 |
Derivative assets at fair value | 30 | 985 |
Total assets at fair value | 520,744 | 419,983 |
Liabilities: | ||
Derivative liabilities at fair value | 4,558 | 1,043 |
Total liabilities at fair value | 4,558 | 1,043 |
Recurring Basis | Level 1 | ||
Assets: | ||
Investment securities available-for-sale | 0 | 0 |
Derivative assets at fair value | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Derivative liabilities at fair value | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Recurring Basis | Level 2 | ||
Assets: | ||
Investment securities available-for-sale | 0 | 0 |
Derivative assets at fair value | 30 | 985 |
Total assets at fair value | 30 | 985 |
Liabilities: | ||
Derivative liabilities at fair value | 4,558 | 1,043 |
Total liabilities at fair value | 4,558 | 1,043 |
Recurring Basis | Level 3 | ||
Assets: | ||
Investment securities available-for-sale | 520,714 | 418,998 |
Derivative assets at fair value | 0 | 0 |
Total assets at fair value | 520,714 | 418,998 |
Liabilities: | ||
Derivative liabilities at fair value | 0 | 0 |
Total liabilities at fair value | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets Measured on Recurring Basis) (Details) - Level 3 - Recurring Basis - CMBS $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | |
Balance, January 1, 2019 | $ 418,998 |
Included in earnings | 2,688 |
Purchases | 146,521 |
Sales | (638) |
Paydowns | (56,295) |
Included in OCI | 9,440 |
Balance, December 31, 2019 | $ 520,714 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities, Quantitative Information) (Details) - Nonrecurring - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Asset held for sale | $ 16,500 | |
Total assets at fair value | 16,500 | $ 17,000 |
Liabilities: | ||
Pearlmark Mezz indemnification | 56 | 703 |
Total liabilities at fair value | 56 | 703 |
Legacy CRE loans held for sale | ||
Assets: | ||
Legacy CRE loans held for sale | 17,000 | |
Level 1 | ||
Assets: | ||
Asset held for sale | 0 | |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Pearlmark Mezz indemnification | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Level 1 | Legacy CRE loans held for sale | ||
Assets: | ||
Legacy CRE loans held for sale | 0 | |
Level 2 | ||
Assets: | ||
Asset held for sale | 0 | |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Pearlmark Mezz indemnification | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Level 2 | Legacy CRE loans held for sale | ||
Assets: | ||
Legacy CRE loans held for sale | 0 | |
Level 3 | ||
Assets: | ||
Asset held for sale | 16,500 | |
Total assets at fair value | 16,500 | 17,000 |
Liabilities: | ||
Pearlmark Mezz indemnification | 56 | 703 |
Total liabilities at fair value | $ 56 | 703 |
Level 3 | Legacy CRE loans held for sale | ||
Assets: | ||
Legacy CRE loans held for sale | $ 17,000 |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2019 | Jan. 31, 2015 | |
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 | $ (4,000) | $ (639,000) | $ (18,334,000) | ||
Provision for loan and lease losses, net | $ 645,000 | $ 1,724,000 | $ 442,000 | ||
Terminal capitalization rate | 9.25% | ||||
Property held for sale | $ 16,500,000 | ||||
Mezzanine loan | Expected Future Cash Flows | Measurement Input, Discount Rate | VIE, Not Primary Beneficiary | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value inputs, discount rate | 0.1000 | ||||
Preferred equity investment | Expected Future Cash Flows | Measurement Input, Discount Rate | VIE, Not Primary Beneficiary | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value inputs, discount rate | 0.1154 | 0.1208 | |||
Unsecured Junior Subordinated Debentures | Expected Future Cash Flows | Measurement Input, Discount Rate | VIE, Not Primary Beneficiary | Interest in RCT I | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value inputs, discount rate | 0.0899 | ||||
Unsecured Junior Subordinated Debentures | Expected Future Cash Flows | Measurement Input, Discount Rate | VIE, Not Primary Beneficiary | Interest in RCT II | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value inputs, discount rate | 0.0899 | ||||
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% | ||
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 | 0.0913 | ||||
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% | ||
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 | 0.0743 | ||||
Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Legacy CRE loan held for sale | $ 17,000,000 | ||||
Property held for sale | $ 16,500,000 | ||||
Minimum | Level 3 | Loans Pledged as Collateral | Expected Future Cash Flows | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans receivable, interest rate, stated percentage | 4.45% | 5.08% | |||
Maximum | Level 3 | Loans Pledged as Collateral | Expected Future Cash Flows | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans receivable, interest rate, stated percentage | 7.96% | 8.63% | |||
Commercial Real Estate Loans | Legacy CRE loans held for sale | |||||
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 | $ 4,700,000 | $ 7,200,000 | $ 1,900,000 | ||
Loss on fair value charge in connection with February 2020 appraisal | 2,200,000 | ||||
Loss on fair value charge in connection with June 2019 brokers' opinions of value | 1,300,000 | ||||
Provision for loan and lease losses, net | $ 1,200,000 | 1,700,000 | $ 442,000 | ||
Legacy CRE loan held for sale | $ 17,000,000 |
FAIR VALUE OF FINANCIAL INSTR_7
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans and investment | $ 1,789,985 | $ 1,551,967 |
Asset held for sale | 16,500 | |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Asset held for sale | 0 | |
Senior notes in CRE securitizations | 0 | 0 |
Junior subordinated notes | 0 | 0 |
Convertible senior notes | 0 | 0 |
Repurchase agreements | 0 | 0 |
Legacy CRE loan held for sale | 0 | |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | Whole loans held for investment | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans and investment | 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] | ||
Loans and receivables | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | Preferred equity investment | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Asset held for sale | 0 | |
Senior notes in CRE securitizations | 0 | 0 |
Junior subordinated notes | 0 | 0 |
Convertible senior notes | 0 | 0 |
Repurchase agreements | 0 | 0 |
Legacy CRE loan held for sale | 0 | |
Significant Other Observable Inputs (Level 2) | Whole loans held for investment | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans and investment | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Preferred equity investment | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Asset held for sale | 16,500 | |
Senior notes in CRE securitizations | 754,023 | 498,897 |
Junior subordinated notes | 25,831 | 27,800 |
Convertible senior notes | 164,932 | 164,932 |
Repurchase agreements | 922,519 | 855,783 |
Legacy CRE loan held for sale | 17,000 | |
Significant Unobservable Inputs (Level 3) | Whole loans held for investment | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans and investment | 1,768,322 | 1,538,759 |
Significant Unobservable Inputs (Level 3) | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 4,700 | 4,700 |
Significant Unobservable Inputs (Level 3) | Preferred equity investment | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 26,237 | 19,718 |
Carrying Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Asset held for sale | 16,500 | |
Senior notes in CRE securitizations | 746,438 | 501,045 |
Junior subordinated notes | 51,548 | 51,548 |
Convertible senior notes | 154,786 | 151,190 |
Repurchase agreements | 919,805 | 850,440 |
Legacy CRE loan held for sale | 17,000 | |
Carrying Value | Whole loans held for investment | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans and investment | 1,759,137 | 1,527,712 |
Carrying Value | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 4,700 | 4,700 |
Carrying Value | Preferred equity investment | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 26,148 | 19,555 |
Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Asset held for sale | 16,500 | |
Senior notes in CRE securitizations | 754,023 | 498,897 |
Junior subordinated notes | 25,831 | 27,800 |
Convertible senior notes | 164,932 | 164,932 |
Repurchase agreements | 922,519 | 855,783 |
Legacy CRE loan held for sale | 17,000 | |
Fair Value | Whole loans held for investment | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans and investment | 1,768,322 | 1,538,759 |
Fair Value | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 4,700 | 4,700 |
Fair Value | Preferred equity investment | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | $ 26,237 | $ 19,718 |
MARKET RISK AND DERIVATIVE IN_3
MARKET RISK AND DERIVATIVE INSTRUMENTS (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)derivative | Dec. 31, 2018USD ($)derivative | Dec. 31, 2017USD ($) | |
Derivatives, Fair Value [Line Items] | |||
Fair Value | $ 30,000 | $ 985,000 | |
Gross Amounts of Recognized Liabilities | $ 4,558,000 | $ 1,043,000 | |
Interest rate swaps | |||
Derivatives, Fair Value [Line Items] | |||
Number of instruments held | derivative | 19 | 16 | |
Average fixed interest rate | 2.47% | 2.54% | |
Notional amount | $ 90,200,000 | $ 81,100,000 | |
Fair Value | 30,000 | 985,000 | |
Gross Amounts of Recognized Liabilities | 4,600,000 | 1,000,000 | |
Gain (loss) on derivatives | (4,000,000) | 563,000 | |
Interest expense to fully amortize | $ 18,000 | ||
Interest rate swaps | Derivatives, at fair value | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value | 30,000 | 985,000 | |
Gross Amounts of Recognized Liabilities | 4,558,000 | 1,043,000 | |
Terminated interest rate swap | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains on derivatives, net | $ 530,000 | 621,000 | |
Number of hedges terminated | derivative | 2 | ||
Interest expense to fully amortize | $ 91,000 | $ 22,000 |
MARKET RISK AND DERIVATIVE IN_4
MARKET RISK AND DERIVATIVE INSTRUMENTS (Fair Value and Classification of Derivatives) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Asset Derivatives | |||
Fair Value | $ 30,000 | $ 985,000 | |
Liability Derivatives | |||
Fair Value | 4,558,000 | 1,043,000 | |
Interest rate swaps | |||
Asset Derivatives | |||
Fair Value | 30,000 | 985,000 | |
Liability Derivatives | |||
Fair Value | 4,600,000 | 1,000,000 | |
Interest rate swaps | Interest expense | |||
Liability Derivatives | |||
Realized and Unrealized Gain (Loss) | (138,000) | (169,000) | $ (130,000) |
Interest rate swaps | Derivatives, at fair value | |||
Asset Derivatives | |||
Notional Amount | 2,630,000 | 31,725,000 | |
Fair Value | 30,000 | 985,000 | |
Liability Derivatives | |||
Notional Amount | 87,551,000 | 49,326,000 | |
Fair Value | 4,558,000 | 1,043,000 | |
Interest rate swaps | Accumulated Other Comprehensive Income (Loss) | |||
Liability Derivatives | |||
Notional Amount | 90,181,000 | 81,051,000 | |
Fair Value | $ (3,999,000) | $ 563,000 | |
Forward contracts - foreign currency, hedging | Net realized and unrealized gain (loss) on investment securities available-for-sale and loans and derivatives | |||
Liability Derivatives | |||
Realized and Unrealized Gain (Loss) | $ (1,896,000) |
OFFSETTING OF FINANCIAL ASSET_3
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Offsetting Derivative Assets | ||
Gross Amounts of Recognized Assets | $ 30,000 | $ 985,000 |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Included on the Consolidated Balance Sheets | 30,000 | 985,000 |
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 | 30,000 | 985,000 |
Offsetting Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 4,558,000 | 1,043,000 |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included on the Consolidated Balance Sheets | 4,558,000 | 1,043,000 |
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 | 4,558,000 | 1,043,000 |
Net Amount | 0 | 0 |
Repurchase agreements and term facilities | ||
Gross Amounts of Recognized Liabilities | 919,805,000 | 850,440,000 |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included on the Consolidated Balance Sheets | 919,805,000 | 850,440,000 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Financial Instruments | 915,041,000 | 850,440,000 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Cash Collateral Pledged | 4,764,000 | 0 |
Net Amount | 0 | 0 |
Total-Liabilities | ||
Gross Amounts of Recognized Liabilities | 924,363,000 | 851,483,000 |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included on the Consolidated Balance Sheets | 924,363,000 | 851,483,000 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Financial Instruments | 915,041,000 | 850,440,000 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Cash Collateral Pledged | 9,322,000 | 1,043,000 |
Net Amount | 0 | 0 |
Fair value of securities pledged against repurchase agreements | 1,200,000,000 | 1,200,000,000 |
Interest rate swaps | ||
Offsetting Derivative Assets | ||
Gross Amounts of Recognized Assets | 30,000 | 985,000 |
Offsetting Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 4,600,000 | 1,000,000 |
Excess cash collateral deposits related to interest rate swap contracts | $ 4,600,000 | $ 1,300,000 |
INCOME TAXES (Components of Inc
INCOME TAXES (Components of Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 994 |
State | 0 | (316) | 856 |
Total current | 0 | (316) | 1,850 |
Deferred: | |||
Federal | 0 | (27) | 3,475 |
State | 0 | 0 | 1,288 |
Total deferred | 0 | (27) | 4,763 |
Total | $ 0 | $ (343) | $ 6,613 |
INCOME TAXES (Reconciliation Be
INCOME TAXES (Reconciliation Between Federal Statutory Income Tax Rate and Effective Income Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax | $ 6 | $ (220) | $ 9,301 |
State and local taxes, net of federal benefit | 2,716 | (1,007) | 1,415 |
Permanent adjustments | 0 | (3) | 37 |
True-up of prior period tax expense | 816 | (4) | (2,010) |
Valuation allowance | (5,402) | 5,348 | (2,203) |
Tax reform | 0 | 0 | 4,918 |
Tax reform - valuation allowance | 0 | 0 | (4,918) |
Discontinued operations adjustment | 863 | (4,344) | 0 |
Other items | 1,001 | (113) | 73 |
Total | $ 0 | $ (343) | $ 6,613 |
INCOME TAXES (Components of Def
INCOME TAXES (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets related to: | ||
Federal, state and local loss carryforwards | $ 7,026 | $ 9,847 |
Accrued expenses | 27 | 106 |
Charitable contribution carryforward | 16 | 13 |
Amortization of intangibles | 466 | 406 |
Unrealized gains | 662 | 1,721 |
Capital loss carryforward | 2,736 | 0 |
Partnership investment | 0 | 3,385 |
Total deferred tax assets | 10,933 | 15,478 |
Valuation allowance | (9,883) | (15,285) |
Total deferred tax assets, net of valuation allowance | 1,050 | 193 |
Deferred tax liabilities related to: | ||
Investment in securities | (1,050) | (193) |
Total deferred tax liabilities | (1,050) | (193) |
Deferred tax assets, net | $ 0 | $ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Taxes [Line Items] | ||
Net operating tax loss carryforwards | $ 30,500 | $ 26,000 |
Deferred tax assets, operating loss carryforwards, domestic | 28,000 | 33,400 |
Deferred tax assets, operating loss carryforwards, state and local | 1,500 | 3,600 |
Capital loss carryforward | 2,736 | 0 |
Operating loss carryforwards, valuation allowance | 32,900 | 58,400 |
Operating loss carryforwards, valuation allowance, tax expense impact | 9,900 | 15,300 |
Other Assets | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | 7,000 | 9,800 |
Assets Held for Sale | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | 6,500 | 5,500 |
Capital Loss Carryforward | ||
Income Taxes [Line Items] | ||
Gross capital loss carryforward | 13,000 | |
Domestic Tax Authority | ||
Income Taxes [Line Items] | ||
Net operating tax loss carryforwards | 58,500 | 59,400 |
State and Local Jurisdiction | ||
Income Taxes [Line Items] | ||
Net operating tax loss carryforwards | $ 1,500 | $ 3,600 |
QUARTERLY RESULTS (Details)
QUARTERLY RESULTS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 34,524 | $ 39,292 | $ 37,138 | $ 33,932 | $ 35,326 | $ 31,836 | $ 29,660 | $ 25,957 | $ 144,886 | $ 122,779 | $ 99,318 |
Interest expense | 20,149 | 22,712 | 21,581 | 19,395 | 19,751 | 17,322 | 16,159 | 14,384 | 83,837 | 67,616 | 57,657 |
Net interest income | 14,375 | 16,580 | 15,557 | 14,537 | 15,575 | 14,514 | 13,501 | 11,573 | 61,049 | 55,163 | 41,661 |
Net (loss) income from continuing operations | 6,424 | 12,620 | 9,003 | 8,170 | 9,994 | 8,260 | 9,189 | (137) | 36,217 | 27,306 | 47,457 |
Net income (loss) from discontinued operations | (39) | (63) | (112) | (37) | (40) | 364 | (450) | 247 | (251) | 121 | (14,116) |
NET INCOME | 6,385 | 12,557 | 8,891 | 8,133 | 9,954 | 8,624 | 8,739 | 110 | 35,966 | 27,427 | 33,341 |
Net income allocated to preferred shares | (2,587) | (2,588) | (2,587) | (2,588) | (2,587) | (2,588) | (2,587) | (5,210) | (10,350) | (12,972) | (24,057) |
Carrying value less than consideration paid for preferred shares | (7,482) | (7,482) | (3,803) | ||||||||
NET INCOME ALLOCABLE TO COMMON SHARES | $ 3,798 | $ 9,969 | $ 6,304 | $ 5,545 | $ 7,367 | $ 6,036 | $ 6,152 | $ (12,582) | $ 25,616 | $ 6,973 | $ 5,677 |
Net (loss) income per common share from continuing operations - basic | $ 0.12 | $ 0.32 | $ 0.20 | $ 0.18 | $ 0.24 | $ 0.18 | $ 0.21 | $ (0.41) | $ 0.82 | $ 0.22 | $ 0.64 |
Net income (loss) per common share from discontinued operations - basic | 0.01 | (0.01) | 0.01 | 0 | (0.46) | ||||||
TOTAL NET INCOME PER COMMON SHARE - BASIC (in dollars per share) | 0.12 | 0.32 | 0.20 | 0.18 | 0.24 | 0.19 | 0.20 | (0.40) | 0.82 | 0.22 | 0.18 |
Net (loss) income per common share from continuing operations - diluted | 0.12 | 0.31 | 0.20 | 0.18 | 0.23 | 0.18 | 0.21 | (0.41) | 0.81 | 0.22 | 0.64 |
Net income (loss) per common share from discontinued operations - diluted | 0.01 | (0.01) | 0.01 | 0 | (0.46) | ||||||
TOTAL NET INCOME PER COMMON SHARE - DILUTED (in dollars per share) | $ 0.12 | $ 0.31 | $ 0.20 | $ 0.18 | $ 0.23 | $ 0.19 | $ 0.20 | $ (0.40) | $ 0.81 | $ 0.22 | $ 0.18 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | Feb. 05, 2018USD ($)holdershares | Oct. 31, 2019claim | Apr. 30, 2018USD ($) | May 31, 2017USD ($)Loan | Dec. 31, 2019USD ($)claim | Dec. 31, 2017USD ($) | Aug. 31, 2017claim | Dec. 31, 2018USD ($) |
Loss Contingencies [Line Items] | ||||||||
Estimated litigation liability | $ 0 | $ 0 | ||||||
Payments of legal costs in excess of insurance coverage | $ 2,000,000 | |||||||
Commercial Real Estate Loans | CRE whole loans | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loans held for investment, unfunded loan commitments | 98,000,000 | 105,700,000 | ||||||
Commercial Real Estate Loans | Preferred equity investment | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loans held for investment, unfunded loan commitments | 3,000,000 | 0 | ||||||
Indemnification Agreement | ||||||||
Loss Contingencies [Line Items] | ||||||||
Estimated litigation liability | 1,700,000 | 1,700,000 | ||||||
Indemnification Agreement | Pearlmark Mezz | ||||||||
Loss Contingencies [Line Items] | ||||||||
Outstanding litigation demands | 56,000 | 703,000 | ||||||
Number of instruments held | Loan | 1 | |||||||
Reserve for probable losses | $ 703,000 | |||||||
Reversal from reserve for probable losses | 647,000 | |||||||
Indemnification Agreement | Pearlmark Mezz | Maximum | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss contingency, estimate of possible loss | $ 4,300,000 | 536,000 | ||||||
PCM | ||||||||
Loss Contingencies [Line Items] | ||||||||
Outstanding demands to indemnify purchaser of residential mortgage loans | 3,300,000 | 3,300,000 | ||||||
PCM | Indemnification Agreement | ||||||||
Loss Contingencies [Line Items] | ||||||||
Outstanding litigation demands | $ 0 | $ 0 | ||||||
Levin v. Resource Capital Corp. | Settled Litigation Matters, Including Pending Settlements | ||||||||
Loss Contingencies [Line Items] | ||||||||
Litigation settlement, amount awarded to other party | $ 9,500,000 | |||||||
Levin v. Resource Capital Corp. | Open Litigation Matters | ||||||||
Loss Contingencies [Line Items] | ||||||||
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 | |||||||
Federal Actions | Settled Litigation Matters, Including Pending Settlements | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss contingency, new claims filed, number | claim | 2 | |||||||
Estimate of possible loss to be funded by insurance company | $ 550,000 | |||||||
Reaves, Caito, Simpson, and Heckel Complaints | Settled Litigation Matters, Including Pending Settlements | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss contingency, new claims filed, number | claim | 6 | |||||||
Loss contingency, claims dismissed, number | claim | 4 |
DISCONTINUED OPERATIONS AND A_3
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE (Operating Results of the Residential Mortgage and Middle Market Lending Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income: | |||||||||||
Loans | $ 118,060 | $ 103,800 | $ 88,268 | ||||||||
Other | 636 | 379 | 2,549 | ||||||||
Total interest income | $ 34,524 | $ 39,292 | $ 37,138 | $ 33,932 | $ 35,326 | $ 31,836 | $ 29,660 | $ 25,957 | 144,886 | 122,779 | 99,318 |
Interest expense | 20,149 | 22,712 | 21,581 | 19,395 | 19,751 | 17,322 | 16,159 | 14,384 | 83,837 | 67,616 | 57,657 |
Net interest income | $ 14,375 | $ 16,580 | $ 15,557 | $ 14,537 | $ 15,575 | $ 14,514 | $ 13,501 | $ 11,573 | 61,049 | 55,163 | 41,661 |
Other revenue | 101 | 120 | 2,048 | ||||||||
Total revenues | 61,150 | 55,283 | 43,709 | ||||||||
OPERATING EXPENSES | |||||||||||
Equity compensation | 2,212 | 2,717 | 2,738 | ||||||||
General and administrative | 10,392 | 10,666 | 15,846 | ||||||||
Net interest and other revenues less operating expenses | 39,487 | 31,234 | 9,920 | ||||||||
OTHER INCOME (EXPENSE) | |||||||||||
Net realized and unrealized gain on investment securities available-for-sale and loans and derivatives | 4 | 639 | 18,334 | ||||||||
Total other (expense) income | (3,270) | (4,271) | 44,150 | ||||||||
Discontinued Operations | |||||||||||
Interest income: | |||||||||||
Loans | 580 | 3,319 | |||||||||
Other | 13 | 107 | |||||||||
Total interest income | 593 | 3,426 | |||||||||
Net interest income | 593 | 3,426 | |||||||||
Other revenue | 24 | 407 | 6,340 | ||||||||
Total revenues | 24 | 1,000 | 9,766 | ||||||||
OPERATING EXPENSES | |||||||||||
Equity compensation | 433 | ||||||||||
General and administrative | 410 | 1,300 | 23,717 | ||||||||
Total operating expenses | 410 | 1,300 | 24,150 | ||||||||
Net interest and other revenues less operating expenses | (386) | (300) | (14,384) | ||||||||
OTHER INCOME (EXPENSE) | |||||||||||
Net realized and unrealized gain on investment securities available-for-sale and loans and derivatives | 135 | 421 | 145 | ||||||||
Fair value adjustments on financial assets held for sale | 123 | ||||||||||
Total other (expense) income | 135 | 421 | 268 | ||||||||
(LOSS) INCOME FROM DISCONTINUED OPERATIONS BEFORE TAXES | (251) | 121 | (14,116) | ||||||||
NET (LOSS) INCOME FROM DISCONTINUED OPERATIONS, NET OF TAXES | (251) | 121 | (14,116) | ||||||||
TOTAL (LOSS) INCOME FROM DISCONTINUED OPERATIONS | $ (251) | $ 121 | $ (14,116) |
DISCONTINUED OPERATIONS AND A_4
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE (Assets and Liabilities of Business Segments Classified as Discontinued Operations) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Total assets held for sale | $ 16,766 | $ 17,645 |
LIABILITIES | ||
Accounts payable and other liabilities | 3,408 | 7,550 |
Total liabilities held for sale | 1,746 | 1,820 |
Discontinued Operations, Held-for-sale | ||
ASSETS | ||
Loans and other assets held for sale | 0 | 17,645 |
Property and other assets held for sale | 16,766 | 0 |
Total assets held for sale | 16,766 | 17,645 |
LIABILITIES | ||
Accounts payable and other liabilities | 1,746 | 1,820 |
Total liabilities held for sale | $ 1,746 | $ 1,820 |
DISCONTINUED OPERATIONS AND A_5
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)Loan | Dec. 31, 2019USD ($)Loantranche | |
Discontinued Operations, Held-for-sale | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Fair value of property | $ 16,500 | |
Discontinued Operations, Held-for-sale | Legacy CRE Whole Loans | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Amortized cost | $ 21,700 | |
Carrying value | 17,000 | |
Discontinued Operations, Held-for-sale | Mezzanine loan | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Debt Instrument, Par Value | 38,100 | 38,100 |
Carrying value | $ 0 | $ 0 |
Number of tranches | tranche | 2 | |
Quantity | Loan | 1 | 1 |
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 | $ 390,000 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - Allowance for Loan and Lease Losses, Real Estate - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 1,401 | $ 5,328 | $ 3,829 |
Charge to Expense | 59 | (1,595) | 1,499 |
Loans Charged off/Recovered | 0 | (2,332) | 0 |
Balance at End of Period | $ 1,460 | $ 1,401 | $ 5,328 |
Schedule IV Mortgage Loans on_2
Schedule IV Mortgage Loans on Real Estate (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Mortgage Loans on Real Estate [Line Items] | ||||
Face Amount of Loans | $ 1,837,331 | |||
Net Carrying Amount of Loans | 1,789,985 | $ 1,568,967 | $ 1,346,663 | $ 1,444,456 |
General allowance for loan loss | (1,460) | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | 49,588 | |||
CRE whole loans | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face Amount of Loans | 1,768,322 | |||
Net Carrying Amount of Loans | 1,760,597 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | 11,516 | |||
Allowance for loan loss | 1,500 | |||
CRE whole loans | Phoenix AZ | Hotel | Borrower A | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Prior Liens | 0 | |||
Face Amount of Loans | 56,470 | |||
Net Carrying Amount of Loans | 56,124 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | |||
Variable rate basis, floor | 1.92% | |||
Maturity Date | 2021 | |||
CRE whole loans | Phoenix AZ | Hotel | Borrower A | London Interbank Offered Rate (LIBOR) | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 3.75% | |||
CRE whole loans | Various | Hotel | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Prior Liens | $ 0 | |||
Face Amount of Loans | 132,832 | |||
Net Carrying Amount of Loans | $ 132,561 | |||
CRE whole loans | Various | Hotel | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 0.75% | |||
Maturity Date | 2020 | |||
CRE whole loans | Various | Hotel | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 2.45% | |||
Maturity Date | 2022 | |||
CRE whole loans | Various | Hotel | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 3.90% | |||
CRE whole loans | Various | Hotel | London Interbank Offered Rate (LIBOR) | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 6.25% | |||
CRE whole loans | Various | Multifamily | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Prior Liens | $ 0 | |||
Face Amount of Loans | 1,014,003 | |||
Net Carrying Amount of Loans | 1,008,838 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | |||
CRE whole loans | Various | Multifamily | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 0.60% | |||
Maturity Date | 2020 | |||
CRE whole loans | Various | Multifamily | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 2.50% | |||
Maturity Date | 2023 | |||
CRE whole loans | Various | Multifamily | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 2.70% | |||
CRE whole loans | Various | Multifamily | London Interbank Offered Rate (LIBOR) | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 4.50% | |||
CRE whole loans | Various | Office Building | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Prior Liens | $ 0 | |||
Face Amount of Loans | 237,104 | |||
Net Carrying Amount of Loans | 235,998 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | |||
CRE whole loans | Various | Office Building | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 0.20% | |||
Maturity Date | 2020 | |||
CRE whole loans | Various | Office Building | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 2.50% | |||
Maturity Date | 2023 | |||
CRE whole loans | Various | Office Building | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 2.82% | |||
CRE whole loans | Various | Office Building | London Interbank Offered Rate (LIBOR) | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 5.05% | |||
CRE whole loans | Various | Retail Site | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Prior Liens | $ 0 | |||
Face Amount of Loans | 142,151 | |||
Net Carrying Amount of Loans | 142,093 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 11,516 | |||
Number of forbearance loans | Loan | 1 | |||
CRE whole loans | Various | Retail Site | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 0.15% | |||
Maturity Date | 2020 | |||
CRE whole loans | Various | Retail Site | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 2.15% | |||
Maturity Date | 2021 | |||
CRE whole loans | Various | Retail Site | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 3.25% | |||
CRE whole loans | Various | Retail Site | London Interbank Offered Rate (LIBOR) | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 5.65% | |||
CRE whole loans | Various | Self Storage | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Prior Liens | $ 0 | |||
Face Amount of Loans | 111,365 | |||
Net Carrying Amount of Loans | 110,878 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | |||
CRE whole loans | Various | Self Storage | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 2.00% | |||
Maturity Date | 2020 | |||
CRE whole loans | Various | Self Storage | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 2.50% | |||
Maturity Date | 2022 | |||
CRE whole loans | Various | Self Storage | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 3.50% | |||
CRE whole loans | Various | Self Storage | London Interbank Offered Rate (LIBOR) | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 4.50% | |||
CRE whole loans | Various | Other | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face Amount of Loans | $ 74,397 | |||
Net Carrying Amount of Loans | $ 74,105 | |||
CRE whole loans | Various | Other | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 1.25% | |||
Maturity Date | 2020 | |||
CRE whole loans | Various | Other | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 2.50% | |||
Maturity Date | 2023 | |||
CRE whole loans | Various | Other | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 3.50% | |||
CRE whole loans | Various | Other | London Interbank Offered Rate (LIBOR) | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 5.00% | |||
Mezzanine loans less than 3% of the carrying amount of total loans | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face Amount of Loans | $ 42,772 | |||
Net Carrying Amount of Loans | 4,700 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | 38,072 | |||
Mezzanine loan | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face Amount of Loans | 42,772 | |||
Net Carrying Amount of Loans | 4,700 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | 38,072 | |||
Preferred Equity less than 3% of the carrying amount of total loans | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face Amount of Loans | 26,237 | |||
Net Carrying Amount of Loans | 26,148 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | 0 | |||
Preferred Equity | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face Amount of Loans | 26,237 | |||
Net Carrying Amount of Loans | 26,148 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 |
Schedule IV Mortgage Loans on_3
Schedule IV Mortgage Loans on Real Estate - Reconciliation of Loans and Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Balance at beginning of year | $ 1,568,967 | $ 1,346,663 | $ 1,444,456 |
Additions during the period: | |||
New loans originated or acquired | 874,936 | 780,556 | 528,865 |
Funding of existing loan commitments | 43,203 | 51,365 | 31,563 |
Amortization of loan origination fees and costs, net | 6,053 | 5,537 | 4,813 |
Protective advances on legacy CRE loans held for sale | 645 | 1,724 | 442 |
(Provision for) recovery of loan and lease losses, net | (58) | 1,595 | (1,499) |
Settled loans held for sale fair value adjustments | 1,000 | 12,655 | |
Capitalized interest and loan acquisition costs | 3,418 | 518 | |
Deductions during the period: | |||
Payoff and paydown of loans | (682,846) | (592,438) | (559,438) |
Foreclosure | (18,515) | ||
Loans held for sale payoffs | (12,000) | (107,492) | |
Capitalized origination fees | (6,687) | (8,329) | (5,760) |
Loans held for sale fair value adjustments | 869 | (7,224) | (1,942) |
Balance at end of year | $ 1,789,985 | $ 1,568,967 | $ 1,346,663 |