Granite Point Mortgage Trust (GPMT) 10-Q 6 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 05, 2018
Entity Information [Line Items]
Entity Registrant Name	GRANITE POINT MORTGAGE TRUST INC.
Entity Central Index Key	1,703,644
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Small Business	false
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		43,456,234

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Sep. 30, 2018	Dec. 31, 2017
ASSETS
Loans held-for-investment		$ 2,708,338	$ 2,304,266
Available-for-sale securities, at fair value		12,830	12,798
Held-to-maturity securities		30,526	42,169
Cash and cash equivalents		148,228	107,765
Restricted cash		5,320	2,953
Accrued interest receivable		8,188	7,105
Deferred debt issuance costs		5,400	8,872
Prepaid expenses		1,335	390
Other assets		14,771	12,812
Total Assets	[1]	2,934,936	2,499,130
Liabilities
Repurchase agreements		1,281,255	1,521,608
Securitized debt obligations		653,184	0
Convertible senior notes		140,124	121,314
Accrued interest payable		5,620	3,119
Unearned interest income		117	197
Dividends payable		18,276	16,454
Other liabilities		9,710	6,817
Total Liabilities	[1]	2,108,286	1,669,509
10% cumulative redeemable preferred stock, par value $0.01 per share; 50,000,000 shares authorized and 1,000 and 1,000 shares issued and outstanding, respectively		1,000	1,000
Stockholders' Equity
Common stock, par value $0.01 per share; 450,000,000 shares authorized and 43,456,234 and 43,235,103 shares issued and outstanding, respectively		435	432
Additional paid-in capital		832,535	829,704
Accumulated other comprehensive income		32	0
Cumulative earnings		75,178	28,800
Cumulative distributions to stockholders		82,530	30,315
Total Stockholders’ Equity		825,650	828,621
Total Liabilities and Stockholders’ Equity		$ 2,934,936	$ 2,499,130
[1]	The condensed consolidated balance sheets include assets of consolidated variable interest entities, or VIEs, that can only be used to settle obligations of these VIEs, and liabilities of the consolidated VIEs for which creditors do not have recourse to Granite Point Mortgage Trust Inc. At September 30, 2018 and December 31, 2017 , assets of the VIEs totaled $827,958 and $46,068 , and liabilities of the VIEs totaled $653,755 and $0 , respectively. See Note 3 - Variable Interest Entities

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
10% cumulative redeemable preferred stock par value per share (in usd per share)	$ 0.01	$ 0.01
10% cumulative redeemable preferred shares authorized (in shares)	50,000,000	50,000,000
10% cumulative redeemable preferred shares issued (in shares)	1,000	1,000
10% cumulative redeemable preferred shares outstanding (in shares)	1,000	1,000
Common stock par value per share (in usd per share)	$ 0.01	$ 0.01
Common shares authorized (in shares)	450,000,000	450,000,000
Common shares issued (in shares)	43,456,234	43,235,103
Common shares outstanding (in shares)	43,456,234	43,235,103
Assets of consolidated Variable Interest Entities	$ 827,958	$ 46,068
Liabilities of consolidated Variable Interest Entities	$ 653,755	$ 0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Interest income:
Loans held-for-investment	$ 46,424	$ 29,655	$ 127,576	$ 77,213
Available-for-sale securities	294	265	851	767
Held-to-maturity securities	757	940	2,478	2,792
Cash and cash equivalents	85	4	141	10
Total interest income	47,560	30,864	131,046	80,782
Interest expense:
Repurchase agreements	14,304	12,060	45,432	22,309
Securitized debt obligations	6,693	0	10,568	0
Convertible senior notes	2,216	0	6,601	0
Revolving credit facilities	152	0	372	0
Note payable to affiliate	0	437	0	4,067
Total interest expense	23,365	12,497	62,973	26,376
Net interest income	24,195	18,367	68,073	54,406
Other income:
Fee income	0	0	1,446	0
Total other income	0	0	1,446	0
Expenses:
Management fees	3,111	3,130	9,434	6,717
Servicing expenses	616	333	1,568	962
Other operating expenses	3,904	3,388	12,141	7,561
Total expenses	7,631	6,851	23,143	15,240
Income before income taxes	16,564	11,516	46,376	39,166
Benefit from income taxes	(1)	(2)	(2)	(3)
Net income	16,565	11,518	46,378	39,169
Dividends on preferred stock	25	25	75	25
Net income attributable to common stockholders	$ 16,540	$ 11,493	$ 46,303	$ 39,144
Basic earnings per weighted average common share (in usd per share)	$ 0.38	$ 0.27	$ 1.07	$ 0.27
Diluted earnings per weighted average common share (in usd per share)	$ 0.37	$ 0.27	$ 1.04	$ 0.27
Weighted average basic common shares outstanding (in shares)	43,456,234	43,234,254	43,426,109	43,234,252
Weighted average diluted common shares outstanding (in shares)	50,651,612	43,234,254	50,616,264	43,234,252
Comprehensive income:
Net income attributable to common stockholders	$ 16,540	$ 11,493	$ 46,303	$ 39,144
Other comprehensive income, net of tax:
Unrealized gain on available-for-sale securities	32	32	32	128
Other comprehensive income	32	32	32	128
Comprehensive income attributable to common stockholders	$ 16,572	$ 11,525	$ 46,335	$ 39,272

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive (Loss) Income	Cumulative Earnings	Cumulative Distributions to Stockholders
Common shares outstanding at beginning of period (in shares) at Dec. 31, 2016	0	0
Stockholders’ equity at beginning of period at Dec. 31, 2016	$ 427,991	$ 0	$ 392,608	$ (112)	$ 35,495	$ 0
Capital contributions from Two Harbors Investment Corp.	254,785		254,785
Distributions to Two Harbors Investment Corp.	(60,000)				(60,000)
Net income	39,169				39,169
Other comprehensive income before reclassifications	128			128
Amounts reclassified from accumulated other comprehensive income	0			0
Net other comprehensive income	$ 128			128
Issuance of common stock, net of offering costs (in shares)	43,071,000	43,071,000
Issuance of common stock, net of offering costs	$ 181,875	$ 431	181,444
Common dividends declared	(13,835)					(13,835)
Preferred dividends declared	$ (25)					(25)
Non-cash equity award compensation (in shares)	164,103	164,103
Non-cash equity award compensation	$ 686	$ 1	685
Common shares outstanding at end of period (in shares) at Sep. 30, 2017	43,235,103	43,235,103
Stockholders’ equity at end of period at Sep. 30, 2017	$ 830,774	$ 432	829,522	16	14,664	(13,860)
Common shares outstanding at beginning of period (in shares) at Dec. 31, 2016	0	0
Stockholders’ equity at beginning of period at Dec. 31, 2016	$ 427,991	$ 0	392,608	(112)	35,495	0
Common shares outstanding at end of period (in shares) at Dec. 31, 2017	43,235,103	43,235,103
Stockholders’ equity at end of period at Dec. 31, 2017	$ 828,621	$ 432	829,704	0	28,800	(30,315)
Capital contributions from Two Harbors Investment Corp.	0
Distributions to Two Harbors Investment Corp.	0
Net income	46,378				46,378
Other comprehensive income before reclassifications	32			32
Amounts reclassified from accumulated other comprehensive income	0			0
Net other comprehensive income	32			32
Common dividends declared	(52,140)					(52,140)
Preferred dividends declared	$ (75)					(75)
Non-cash equity award compensation (in shares)	221,131	221,131
Non-cash equity award compensation	$ 2,834	$ 3	2,831
Common shares outstanding at end of period (in shares) at Sep. 30, 2018	43,456,234	43,456,234
Stockholders’ equity at end of period at Sep. 30, 2018	$ 825,650	$ 435	$ 832,535	$ 32	$ 75,178	$ (82,530)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Cash Flows From Operating Activities:
Net income	$ 16,565	$ 11,518	$ 46,378	$ 39,169
Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of discounts and net deferred fees on loans held-for-investment			(9,282)	(5,551)
Amortization of deferred debt issuance costs			2,373	0
Equity based compensation			2,834	686
Depreciation of fixed assets			4	0
Net change in assets and liabilities:
Increase in accrued interest receivable			(1,083)	(2,041)
Increase in prepaid expenses			(945)	0
Increase in other assets			(1,963)	(4,959)
Increase in accrued interest payable			2,501	1,676
(Decrease) increase in unearned interest income			(80)	307
Decrease in other payables to affiliates			0	(21,374)
Increase in other liabilities			2,893	4,970
Increase in 10% cumulative redeemable preferred stock			0	1,000
Net cash provided by operating activities			43,630	13,883
Cash Flows From Investing Activities:
Originations, acquisitions and additional fundings of loans held-for-investment, net of deferred fees			(839,668)	(759,905)
Proceeds from repayment of loans held-for-investment			444,878	1,793
Principal payments on held-to-maturity securities			11,643	4,862
Decrease in due from counterparties			0	229
Net cash used in investing activities			(383,147)	(753,021)
Cash Flows From Financing Activities:
Proceeds from repurchase agreements			871,608	1,431,366
Principal payments on repurchase agreements			(1,111,961)	(407,269)
Proceeds from issuance of securitized debt obligations			651,374	0
Proceeds from convertible senior notes			18,247	0
Proceeds from revolving credit facilities			49,394	0
Repayment of revolving credit facilities			(49,394)	0
Proceeds from note payable to affiliate			0	110,653
Repayment of note payable to affiliate			0	(676,827)
Decrease (increase) in deferred debt issuance costs			3,472	(6,977)
Proceeds from issuance of common stock, net of offering costs			0	181,875
Proceeds from capital contributions from Two Harbors Investment Corp.			0	254,785
Payments for distributions of capital to Two Harbors Investment Corp.			0	(60,000)
Dividends paid on preferred stock			(75)	(25)
Dividends paid on common stock			(50,318)	0
Net cash provided by financing activities			382,347	827,581
Net decrease in cash, cash equivalents and restricted cash			42,830	88,443
Cash, cash equivalents and restricted cash at beginning of period			110,718	56,279	$ 56,279
Cash, cash equivalents and restricted cash at end of period	153,548	144,722	153,548	144,722	110,718
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest			60,472	24,699
Cash received for taxes, net			(5)	(4)
Noncash Activities:
Acquisition of TH Commercial Holdings LLC from Two Harbors Investment Corp. in exchange for common and preferred shares (See Note 1)			0	651,000
Dividends declared but not paid at end of period	$ 18,276	$ 13,835	$ 18,276	$ 13,835	$ 16,454

Organization and Operations

Organization and Operations	9 Months Ended
	Sep. 30, 2018
Organization and Operations [Abstract]
Organization and Operations	Organization and Operations Granite Point Mortgage Trust Inc., or the Company, is a Maryland corporation that focuses primarily on directly originating, investing in and managing senior floating-rate commercial mortgage loans and other debt and debt-like commercial real estate investments. The Company is externally managed by Pine River Capital Management L.P., or PRCM. The Company’s common stock is listed on the New York Stock Exchange, or NYSE, under the symbol “GPMT”. The Company was incorporated on April 7, 2017 and commenced operations as a publicly traded company on June 28, 2017, upon completion of an initial public offering, or the IPO. Concurrently with the closing of the IPO, the Company completed a formation transaction, or the Formation Transaction, pursuant to which the Company acquired the equity interests in TH Commercial Holdings LLC, or the Predecessor, from Two Harbors Investment Corp., or Two Harbors, a publicly traded hybrid mortgage real estate investment trust (NYSE: TWO). In exchange, the Company issued 33,071,000 shares of its common stock, representing approximately 76.5% of its outstanding common stock after the IPO, and 1,000 shares of its 10% cumulative redeemable preferred stock to Two Harbors. Upon the completion of the Formation Transaction, the Predecessor became the Company’s wholly owned indirect subsidiary. On November 1, 2017, Two Harbors distributed to its common stockholders the 33,071,000 shares of the Company’s common stock it had acquired in connection with the Formation Transaction, allowing the Company’s market capitalization to be fully floating.

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
Basis of Presentation and Significant Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	Basis of Presentation and Significant Accounting Policies Consolidation and Basis of Presentation The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or SEC. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, have been condensed or omitted according to such SEC rules and regulations. However, management believes that the disclosures included in these interim condensed consolidated financial statements are adequate to make the information presented not misleading. The accompanying condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . In the opinion of management, all normal and recurring adjustments necessary to present fairly the financial condition of the Company at September 30, 2018 and results of operations for all periods presented have been made. The results of operations for the three and nine months ended September 30, 2018 should not be construed as indicative of the results to be expected for future periods or the full year. The condensed consolidated financial statements of the Company include the accounts of all subsidiaries; inter-company accounts and transactions have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation. All entities in which the Company holds investments that are considered VIEs for financial reporting purposes were reviewed for consolidation under the applicable consolidation guidance. Whenever the Company has both the power to direct the activities of an entity that most significantly impact the entity’s performance, and the obligation to absorb losses or the right to receive benefits of the entity that could be significant, the Company consolidates the entity. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make a number of significant estimates. These include estimates of fair value of certain assets and liabilities, amount and timing of allowances for loan losses and impairments and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of certain revenues and expenses during the reported period. It is likely that changes in these estimates ( e.g. , valuation changes to the underlying collateral of loans due to changes in capitalization rates, leasing, credit worthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders, overall economic conditions, the broader commercial real estate market, local geographic sub-markets or other factors) will occur in the near term. The Company’s estimates are inherently subjective in nature and actual results could differ from its estimates and the differences may be material. Significant Accounting Policies Included in Note 2 to the Consolidated Financial Statements of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 is a summary of the Company’s significant accounting policies. Provided below is a summary of additional accounting policies that are significant to the Company’s consolidated financial condition and results of operations for the three and nine months ended September 30, 2018 . Formation Transaction On June 28, 2017, the Company completed the Formation Transaction, through which the Company acquired the equity interests in the Predecessor from Two Harbors. In accordance with Accounting Standards Codification (ASC) 805, Business Combinations , the Predecessor is considered the acquiring or surviving entity, meaning the historical assets and liabilities of TH Commercial Holdings LLC included in the condensed consolidated balance sheets are recorded at the Predecessor’s historical carryover cost basis. As a result of the Formation Transaction, the Company is considered a continuation of the Predecessor’s business operations and its historical results of operations and cash flows are included in the Company’s condensed consolidated financial statements. In consideration for the contribution, Two Harbors received 33,071,000 shares of the Company’s common stock and 1,000 shares of cumulative redeemable preferred stock with an aggregate liquidation preference of $1,000 per share. Securitized Debt Obligations In the second quarter of 2018, the Company financed a pool of its commercial real estate loans through a collateralized loan obligation, or CLO, retaining the subordinate securities in its investment portfolio. The securitization was accounted for as a financing arrangement and consolidated on the Company’s condensed consolidated financial statements. The securitized debt obligations not retained by the Company, which are nonrecourse to the Company beyond the assets held in the CLO, are recorded at outstanding principal balance, net of any unamortized deferred debt issuance costs, on the Company’s condensed consolidated balance sheets. Offsetting Assets and Liabilities Certain of the Company’s repurchase agreements are governed by underlying agreements that provide for a right of setoff in the event of default of either party to the agreement. Under certain of these agreements, the Company and the counterparty may be required to post cash collateral based upon the net underlying market value of the Company’s open positions with the counterparty. Under U.S. GAAP, if the Company has a valid right of setoff, it may offset the related asset and liability and report the net amount. The Company presents repurchase agreements subject to master netting arrangements or similar agreements on a gross basis. Regardless of whether or not the Company pledges or receives any cash collateral in accordance with its repurchase agreements, the Company does not offset financial assets and liabilities with the associated cash collateral on its condensed consolidated balance sheets. The following table presents information about the Company’s repurchase agreements that are subject to master netting arrangements or similar agreements and can potentially be offset on the Company’s condensed consolidated balance sheets as of September 30, 2018 and December 31, 2017 : (in thousands) September 30, December 31, Gross amounts of repurchase agreements $ 1,281,255 $ 1,521,608 Gross amounts offset in the consolidated balance sheets — — Net amounts of repurchase agreements presented in the consolidated balance sheets 1,281,255 1,521,608 Gross amounts not offset against repurchase agreements in the consolidated balance sheets (1) : Financial instruments (1,281,255 ) (1,521,608 ) Cash collateral received (pledged) — — Net amount $ — $ — ____________________ (1) Amounts presented are limited in total to the net amount of liabilities presented in the condensed consolidated balance sheets by instrument. Excess cash collateral or financial assets that are pledged to counterparties may exceed the financial liabilities subject to a master netting arrangement or similar agreement. These excess amounts are excluded from the table above, although separately reported within restricted cash or due from counterparties in the Company’s condensed consolidated balance sheets. Recently Issued and/or Adopted Accounting Standards Under the Jumpstart Our Business Startups Act, or the JOBS Act, the Company meets the definition of an “emerging growth company.” The Company has irrevocably elected to opt out of the extended transition period for complying with new or revised U.S. accounting standards pursuant to Section 107(b) of the JOBS Act. As a result, the Company will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. Based on the market value of the Company’s common stock that is held by non-affiliates as of June 30, 2018, the Company will no longer qualify as an “emerging growth company” as of December, 31 2018. Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board, or FASB, issued ASU No. 2014-09, which is a comprehensive revenue recognition standard that supersedes virtually all existing revenue guidance under U.S. GAAP. The standard’s core principle is that an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. As a result of the issuance of ASU No. 2015-14 in August 2015 deferring the effective date of ASU No. 2014-09 by one year, the ASU is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2017, with early adoption prohibited. The Company has evaluated the new guidance and determined that interest income and gains and losses on financial instruments are outside the scope of ASC 606, Revenues from Contracts with Customers . As a result, the adoption of this ASU did not have a material impact on the Company’s financial condition, results of operations or financial statement disclosures. Lease Classification and Accounting In February 2016, the FASB issued ASU No. 2016-02, which requires lessees to recognize on their balance sheets both a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. The ASU is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2018, with early adoption permitted. The Company has determined this ASU will not have a material impact on the Company’s financial condition, results of operations or financial statement disclosures. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, which changes the impairment model for most financial assets and certain other instruments. Allowances for credit losses on available-for-sale, or AFS, and held-to-maturity, or HTM, debt securities will be recognized, rather than direct reductions in the amortized cost of the investments. The new model also requires the estimation of lifetime expected credit losses and corresponding recognition of allowance for losses on trade and other receivables, HTM debt securities, loans, and other instruments held at amortized cost. The ASU requires certain recurring disclosures and is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2019, with early adoption permitted for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2018. The Company is evaluating the adoption of this ASU to determine the impact it may have on its condensed consolidated financial statements, which at the date of adoption, is expected to increase the allowance for credit losses with a resulting negative adjustment to retained earnings. Accounting for Share-Based Payments to Nonemployees In June 2018, the FASB issued ASU No. 2018-07 to simplify the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments to employees, with certain exceptions. Under the guidance, equity-classified nonemployee awards will be measured on and fixed at the grant date, rather than measured at fair value at each reporting date until the date at which the nonemployee’s performance is complete. The ASU is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2018, with early adoption permitted. The Company is evaluating the adoption of this ASU to determine the impact it may have on its condensed consolidated financial statements. Fair Value Measurement Disclosure Requirements In August 2018, the FASB issued ASU No. 2018-13, which eliminates, adds and modifies certain disclosure requirements for fair value measurements. Under the guidance, entities are no longer required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies are required to disclose (1) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements of instruments held at the end of the reporting period and (2) the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The ASU is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2019, with early adoption permitted. Early adoption of this ASU did not have a material impact on the Company’s financial condition, results of operations or financial statement disclosures. SEC Disclosure Update and Simplification

Variable Interest Entities

Variable Interest Entities	9 Months Ended
	Sep. 30, 2018
Variable Interest Entities [Abstract]
Variable Interest Entities	Variable Interest Entities In the second quarter of 2018, the Company financed a pool of its commercial real estate loans through a CLO, which is considered a VIE for financial reporting purposes and, thus, was reviewed for consolidation under the applicable consolidation guidance. Because the Company has both the power to direct the activities of the CLO that most significantly impact the entity’s performance, and the obligation to absorb losses or the right to receive benefits of the entity that could be significant, the Company consolidates the CLO. As of December 31, 2017, the Company was the sole certificate holder of a trust entity that holds a commercial mezzanine loan. The trust is considered a VIE for financial reporting purposes and, thus, was reviewed for consolidation under the applicable consolidation guidance. Because the Company had both the power to direct the activities of the trust that most significantly impact the entity’s performance, and the obligation to absorb losses or the right to receive benefits of the entity that could be significant, the Company consolidated the trust. The loan held by the trust was repaid during the three months ended March 31, 2018. As a result, the Company no longer consolidates the trust on its condensed consolidated financial statements. The following table presents a summary of the assets and liabilities of all variable interest entities consolidated on the Company’s condensed consolidated balance sheets as of September 30, 2018 and December 31, 2017 : (in thousands) September 30, December 31, Loans held-for-investment $ 820,257 $ 45,890 Accrued interest receivable 2,441 178 Other assets 5,260 — Total Assets $ 827,958 $ 46,068 Securitized debt obligations $ 653,184 $ — Accrued interest payable 571 — Total Liabilities $ 653,755 $ — The Company is not required to consolidate VIEs for which it has concluded it does not have both the power to direct the activities of the VIEs that most significantly impact the entities’ performance, and the obligation to absorb losses or the right to receive benefits of the entities that could be significant. The Company’s investments in these unconsolidated VIEs include CMBS, which are classified within available-for-sale securities, at fair value, and held-to-maturity securities on the condensed consolidated balance sheets. As of September 30, 2018 and December 31, 2017 , the carrying value, which also represents the maximum exposure to loss, of all CMBS in unconsolidated VIEs was $43.4 million and $55.0 million

Loans Held-for-Investment

Loans Held-for-Investment	9 Months Ended
	Sep. 30, 2018
Loans Held-for-Investment [Abstract]
Loans Held-for-Investment	Loans Held-for-Investment The Company originates and acquires commercial real estate debt and related instruments generally to be held as long-term investments. These assets are classified as loans held-for-investment on the condensed consolidated balance sheets. Additionally, at December 31, 2017 the Company was the sole certificate holder of a trust entity that held a commercial mezzanine loan. The underlying loan held by the trust was consolidated on the Company’s condensed consolidated balance sheet and classified as loans held-for-investment. See Note 3 - Variable Interest Entities for additional information regarding consolidation of the trust. Loans held-for-investment are reported at cost, net of any unamortized acquisition premiums or discounts, loan fees and origination costs as applicable, unless the assets are deemed impaired. The following tables summarize the Company’s loans held-for-investment by asset type, property type and geographic location as of September 30, 2018 and December 31, 2017 : September 30, (dollars in thousands) Senior Loans (1) Mezzanine Loans B-Notes Total Unpaid principal balance $ 2,684,269 $ 31,964 $ 14,702 $ 2,730,935 Unamortized (discount) premium (156 ) — — (156 ) Unamortized net deferred origination fees (22,441 ) — — (22,441 ) Carrying value $ 2,661,672 $ 31,964 $ 14,702 $ 2,708,338 Unfunded commitments $ 441,538 $ — $ — $ 441,538 Number of loans 71 3 1 75 Weighted average coupon 6.3 % 11.1 % 8.0 % 6.3 % Weighted average years to maturity (2) 2.1 2.2 8.3 2.1 December 31, (dollars in thousands) Senior Loans (1) Mezzanine Loans B-Notes Total Unpaid principal balance $ 2,220,361 $ 88,945 $ 14,845 $ 2,324,151 Unamortized (discount) premium (169 ) (9 ) — (178 ) Unamortized net deferred origination fees (19,752 ) 45 — (19,707 ) Carrying value $ 2,200,440 $ 88,981 $ 14,845 $ 2,304,266 Unfunded commitments $ 337,623 $ 1,580 $ — $ 339,203 Number of loans 53 5 1 59 Weighted average coupon 5.9 % 9.7 % 8.0 % 6.0 % Weighted average years to maturity (2) 2.3 2.0 9.1 2.4 ____________________ (1) Loans primarily secured by a first priority lien on commercial real property and related personal property and also includes, when applicable, any companion subordinate loans. (2) Based on contractual maturity date. Certain loans are subject to contractual extension options which may be subject to conditions as stipulated in the loan agreement. Actual maturities may differ from contractual maturities stated herein as certain borrowers may have the right to prepay with or without paying a prepayment penalty. The Company may also extend contractual maturities in connection with loan modifications. (dollars in thousands) September 30, December 31, Property Type Carrying Value % of Loan Portfolio Carrying Value % of Loan Portfolio Office $ 1,356,705 50.1 % $ 1,223,642 53.1 % Multifamily 430,156 15.9 % 356,016 15.4 % Hotel 398,218 14.7 % 274,416 11.9 % Retail 302,151 11.2 % 254,786 11.1 % Industrial 221,108 8.1 % 195,406 8.5 % Total $ 2,708,338 100.0 % $ 2,304,266 100.0 % (dollars in thousands) September 30, December 31, Geographic Location Carrying Value % of Loan Portfolio Carrying Value % of Loan Portfolio Northeast $ 1,012,429 37.4 % $ 896,361 38.9 % West 654,097 24.2 % 509,088 22.1 % Southwest 599,696 22.1 % 454,088 19.7 % Southeast 323,433 11.9 % 346,623 15.0 % Midwest 118,683 4.4 % 98,106 4.3 % Total $ 2,708,338 100.0 % $ 2,304,266 100.0 % At September 30, 2018 and December 31, 2017 , the Company pledged loans held-for-investment with a carrying value of $2.6 billion and $2.2 billion , respectively, as collateral for repurchase agreements and securitized debt obligations. See Note 10 - Repurchase Agreements and Note 11 - Securitized Debt Obligations. The following table summarizes activity related to loans held-for-investment for the three and nine months ended September 30, 2018 and 2017 . Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Balance at beginning of period $ 2,483,606 $ 1,739,253 $ 2,304,266 $ 1,364,291 Originations, acquisitions and additional fundings 249,532 393,425 851,662 771,473 Repayments (24,199 ) (303 ) (444,878 ) (1,793 ) Net discount accretion (premium amortization) 4 6 22 (11 ) Increase in net deferred origination fees (3,990 ) (5,858 ) (11,994 ) (11,568 ) Amortization of net deferred origination fees 3,385 1,431 9,260 5,562 Allowance for loan losses — — — — Balance at end of period $ 2,708,338 $ 2,127,954 $ 2,708,338 $ 2,127,954 The Company evaluates each loan for impairment at least quarterly by assessing the risk factors of each loan and assigning a risk rating based on a variety of factors. Risk factors include property type, geographic and local market dynamics, physical condition, leasing and tenant profile, projected cash flow, loan structure and exit plan, loan-to-value ratio, project sponsorship, and other factors deemed necessary. Risk ratings are defined as follows: 1 – Lower Risk 2 – Average Risk 3 – Acceptable Risk 4 – Higher Risk: A loan that has exhibited material deterioration in cash flows and/or other credit factors, which, if negative trends continue, could be indicative of future loss. 5 – Impaired/Loss Likely: A loan that has a significantly increased probability of default or principal loss. The following table presents the number of loans, unpaid principal balance and carrying value (amortized cost) by risk rating for loans held-for-investment as of September 30, 2018 and December 31, 2017 : (dollars in thousands) September 30, December 31, Risk Rating Number of Loans Unpaid Principal Balance Carrying Value Number of Loans Unpaid Principal Balance Carrying Value 1 7 $ 235,532 $ 234,727 6 $ 414,695 $ 413,314 2 63 2,326,386 2,305,166 50 1,840,638 1,822,134 3 5 169,017 168,445 3 68,818 68,818 4 — — — — — — 5 — — — — — — Total 75 $ 2,730,935 $ 2,708,338 59 $ 2,324,151 $ 2,304,266

Available-for-Sale Securities,

Available-for-Sale Securities, at Fair Value	9 Months Ended
	Sep. 30, 2018
Debt Securities, Available-for-sale [Abstract]
Available-for-Sale Securities, at Fair Value	Available-for-Sale Securities, at Fair Value The following table presents the face value and carrying value (which approximates fair value) of AFS securities as of September 30, 2018 and December 31, 2017 : (in thousands) September 30, December 31, Face value $ 12,798 $ 12,798 Gross unrealized gains 32 — Gross unrealized losses — — Carrying value $ 12,830 $ 12,798 On September 30, 2018 , the Company’s AFS securities had contractual maturities of less than one year . At September 30, 2018 and December 31, 2017 , the Company pledged AFS securities with a carrying value of $12.8 million and $12.8 million , respectively, as collateral for repurchase agreements. See Note 10 - Repurchase Agreements . At September 30, 2018 , the Company’s AFS securities were in an unrealized gain position. At December 31, 2017 , the Company’s AFS securities had a carrying value equal to their face value. Evaluating AFS Securities for Other-Than-Temporary Impairments In evaluating AFS securities for other-than-temporary impairments, or OTTI, the Company determines whether there has been a significant adverse quarterly change in the cash flow expectations for a security. The Company compares the amortized cost of each security in an unrealized loss position against the present value of expected future cash flows of the security. The Company also considers whether there has been a significant adverse change in the regulatory and/or economic environment as part of this analysis. If the amortized cost of the security is greater than the present value of expected future cash flows using the original yield as the discount rate, an other-than-temporary credit impairment has occurred. If the Company does not intend to sell and will not be more likely than not required to sell the security, the credit loss is recognized in earnings and the balance of the unrealized loss is recognized in other comprehensive income . If the Company intends to sell the security or will be more likely than not required to sell the security, the full unrealized loss is recognized in earnings. The Company did not record any other-than-temporary credit impairments during the three and nine months ended September 30, 2018 and 2017 as expected cash flows were greater than amortized cost for all AFS securities held. Gross Realized Gains and Losses Gains and losses from the sale of AFS securities are recorded as realized gains (losses) in the Company’s condensed consolidated statements of comprehensive income . The Company did not sell any AFS securities during the three and nine months ended September 30, 2018 and 2017

Held-to-Maturity Securities

Held-to-Maturity Securities	9 Months Ended
	Sep. 30, 2018
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]
Held-to-Maturity Securities	Held-to-Maturity Securities The following table presents the face value and carrying value of HTM securities by collateral type as of September 30, 2018 and December 31, 2017 : (in thousands) September 30, December 31, Face value $ 30,526 $ 42,169 Unamortized premium (discount) — — Carrying value $ 30,526 $ 42,169 On September 30, 2018 , the Company’s HTM securities had contractual maturities of less than one year . At September 30, 2018 and December 31, 2017 , the Company pledged HTM securities with a carrying value of $30.5 million and $42.2 million , respectively, as collateral for repurchase agreements. See Note 10 - Repurchase Agreements . Evaluating HTM Securities for Other-Than-Temporary Impairments In evaluating HTM securities for OTTI, the Company determines whether there has been a significant adverse quarterly change in the cash flow expectations for a security. The Company compares the amortized cost of each security against the present value of expected future cash flows of the security. The Company also considers whether there has been a significant adverse change in the regulatory and/or economic environment as part of this analysis. If the amortized cost of the security is greater than the present value of expected future cash flows using the original yield as the discount rate, an other-than-temporary credit impairment has occurred and the credit loss is recognized in earnings. The Company did not record any other-than-temporary credit impairments during the three and nine months ended September 30, 2018 and 2017

Cash, Cash Equivalents and Rest

Cash, Cash Equivalents and Restricted Cash	9 Months Ended
	Sep. 30, 2018
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include cash held in bank accounts and cash held in money market funds on an overnight basis. The Company is required to maintain certain cash balances in restricted accounts as collateral for the Company’s repurchase agreements and with counterparties to support activities related to securities. As of September 30, 2018 and December 31, 2017 , the Company had $5.3 million and $3.0 million , respectively, as collateral for repurchase agreements and by counterparties to support activities related to securities. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Company’s condensed consolidated balance sheets as of September 30, 2018 and December 31, 2017 that sum to the total of the same such amounts shown in the statements of cash flows: (in thousands) September 30, December 31, Cash and cash equivalents $ 148,228 $ 107,765 Restricted cash 5,320 2,953 Total cash, cash equivalents and restricted cash $ 153,548 $ 110,718

Accrued Interest Receivable

Accrued Interest Receivable	9 Months Ended
	Sep. 30, 2018
Accrued Interest Receivable [Abstract]
Accrued Interest Receivable	Accrued Interest Receivable The following table presents the Company’s accrued interest receivable by collateral type as of September 30, 2018 and December 31, 2017 : (in thousands) September 30, December 31, Loans held-for-investment $ 8,009 $ 6,880 Available-for-sale securities 51 51 Held-to-maturity securities 128 174 Total $ 8,188 $ 7,105

Fair Value

Fair Value	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value	Fair Value Fair Value Measurements ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 clarifies that fair value should be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. The fair value hierarchy gives the highest priority to quoted prices available in active markets ( i.e. , observable inputs) and the lowest priority to data lacking transparency ( i.e. , unobservable inputs). Additionally, ASC 820 requires an entity to consider all aspects of nonperformance risk, including the entity’s own credit standing, when measuring fair value of a liability. ASC 820 establishes a three-level hierarchy to be used when measuring and disclosing fair value. An instrument’s categorization within the fair value hierarchy is based on the lowest level of significant input to its valuation. Following is a description of the three levels: Level 1 Inputs are quoted prices in active markets for identical assets or liabilities as of the measurement date under current market conditions. Additionally, the entity must have the ability to access the active market and the quoted prices cannot be adjusted by the entity. Level 2 Inputs include quoted prices in active markets for similar assets or liabilities; quoted prices in inactive markets for identical or similar assets or liabilities; or inputs that are observable or can be corroborated by observable market data by correlation or other means for substantially the full-term of the assets or liabilities. Level 3 Unobservable inputs are supported by little or no market activity. The unobservable inputs represent the assumptions that market participants would use to price the assets and liabilities, including risk. Generally, Level 3 assets and liabilities are valued using pricing models, discounted cash flow methodologies, or similar techniques that require significant judgment or estimation. Following are descriptions of the valuation methodologies used to measure material assets and liabilities at fair value and details of the valuation models, key inputs to those models and significant assumptions utilized. Available-for-sale securities . The Company holds AFS securities that are carried at fair value on the condensed consolidated balance sheet and are comprised of CMBS. In determining the fair value of the Company’s CMBS AFS, management judgment may be used to arrive at fair value that considers prices obtained from third-party pricing providers or broker quotes received using the bid price, which are both deemed indicative of market activity, and other applicable market data. The third-party pricing providers and brokers use pricing models that generally incorporate such factors as coupons, primary and secondary mortgage rates, rate reset period, issuer, prepayment speeds, credit enhancements and expected life of the security. If observable market prices are not available or insufficient to determine fair value due principally to illiquidity in the marketplace, then fair value is based upon internally developed models that are primarily based on observable market-based inputs but also include unobservable market data inputs (including prepayment speeds, delinquency levels, and credit losses). The Company classified its CMBS AFS as Level 2 fair value assets at September 30, 2018 and December 31, 2017 . Recurring Fair Value The following tables display the Company’s assets measured at fair value on a recurring basis. The Company does not hold any liabilities measured at fair value on its condensed consolidated balance sheets. Recurring Fair Value Measurements September 30, 2018 (in thousands) Level 1 Level 2 Level 3 Total Assets Available-for-sale securities $ — $ 12,830 $ — $ 12,830 Total assets $ — $ 12,830 $ — $ 12,830 Recurring Fair Value Measurements December 31, 2017 (in thousands) Level 1 Level 2 Level 3 Total Assets Available-for-sale securities $ — $ 12,798 $ — $ 12,798 Total assets $ — $ 12,798 $ — $ 12,798 The Company may be required to measure certain assets or liabilities at fair value from time to time. These periodic fair value measures typically result from application of certain impairment measures under U.S. GAAP. These items would constitute nonrecurring fair value measures under ASC 820. As of September 30, 2018 and December 31, 2017 , the Company did not have any assets or liabilities measured at fair value on a nonrecurring basis in the periods presented. Transfers between Levels are deemed to take place on the first day of the reporting period in which the transfer has taken place. The Company did not incur transfers between Levels for the three and nine months ended September 30, 2018 and 2017 . Fair Value of Financial Instruments In accordance with ASC 820, the Company is required to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized in the condensed consolidated balance sheets, for which fair value can be estimated. The following describes the Company’s methods for estimating the fair value for financial instruments. • Loans held-for-investment are carried at cost, net of any unamortized acquisition premiums or discounts, loan fees and origination costs as applicable, unless deemed impaired. The Company estimates the fair value of its loans held-for-investment by assessing any changes in market interest rates, shifts in credit profiles and actual operating results for mezzanine loans and senior loans, taking into consideration such factors as underlying property type, property competitive position within its market, market and submarket fundamentals, tenant mix, nature of business plan, sponsorship, extent of leverage and other loan terms. The Company categorizes the fair value measurement of these assets as Level 3. • AFS securities are recurring fair value measurements; carrying value equals fair value. See discussion of valuation methods and assumptions within the Fair Value Measurements section of this footnote. • HTM securities, which are comprised of CMBS, are carried at cost, net of any unamortized acquisition premiums or discounts, unless deemed other-than-temporarily impaired. In determining the fair value of the Company’s CMBS HTM, management judgment may be used to arrive at fair value that considers prices obtained from third-party pricing providers or broker quotes received using the bid price, which are both deemed indicative of market activity, and other applicable market data. The third-party pricing providers and brokers use pricing models that generally incorporate such factors as coupons, primary and secondary mortgage rates, rate reset period, issuer, prepayment speeds, credit enhancements and expected life of the security. The Company categorizes the fair value measurement of these assets as Level 2. • Cash and cash equivalents and restricted cash have a carrying value which approximates fair value because of the short maturities of these instruments. The Company categorizes the fair value measurement of these assets as Level 1. • The carrying value of repurchase agreements that mature in less than one year generally approximates fair value due to the short maturities. As of September 30, 2018 , the Company held $0.6 billion of repurchase agreements that are considered long-term. The Company’s long-term repurchase agreements have floating rates based on an index plus a spread and the credit spread is typically consistent with those demanded in the market. Accordingly, the interest rates on these borrowings are at market and thus carrying value approximates fair value. The Company categorizes the fair value measurement of these liabilities as Level 2. • Securitized debt obligations are recorded at outstanding principal, net of any unamortized deferred debt issuance costs. In determining the fair value of its securitized debt obligations, management judgment may be used to arrive at fair value that considers prices obtained from third-party pricing providers, broker quotes received and other applicable market data. If observable market prices are not available or insufficient to determine fair value due principally to illiquidity in the marketplace, then fair value is based upon internally developed models that are primarily based on observable market-based inputs but also include unobservable market data inputs (including prepayment speeds, delinquency levels, and credit losses). The Company categorizes the fair value measurement of these liabilities as Level 2. • Convertible senior notes are carried at their unpaid principal balance, net of any unamortized deferred issuance costs. The Company estimates the fair value of its convertible senior notes using the market transaction price nearest to September 30, 2018 . The Company categorizes the fair value measurement of these assets as Level 2. The following table presents the carrying values and estimated fair values of assets and liabilities that are required to be recorded or disclosed at fair value at September 30, 2018 and December 31, 2017 . September 30, 2018 December 31, 2017 (in thousands) Carrying Value Fair Value Carrying Value Fair Value Assets Loans held-for-investment $ 2,708,338 $ 2,739,079 $ 2,304,266 $ 2,322,259 Available-for-sale securities $ 12,830 $ 12,830 $ 12,798 $ 12,798 Held-to-maturity securities $ 30,526 $ 30,929 $ 42,169 $ 42,797 Cash and cash equivalents $ 148,228 $ 148,228 $ 107,765 $ 107,765 Restricted cash $ 5,320 $ 5,320 $ 2,953 $ 2,953 Liabilities Repurchase agreements $ 1,281,255 $ 1,281,255 $ 1,521,608 $ 1,521,608 Securitized debt obligations $ 653,184 $ 659,621 $ — $ — Convertible senior notes $ 140,124 $ 148,754 $ 121,314 $ 125,750

Repurchase Agreements

Repurchase Agreements	9 Months Ended
	Sep. 30, 2018
Disclosure of Repurchase Agreements [Abstract]
Repurchase Agreements	Repurchase Agreements As of September 30, 2018 and December 31, 2017 , the Company had outstanding $1.3 billion and $1.5 billion of repurchase agreements with a weighted average borrowing rate of 4.36% and 3.78% and weighted average remaining maturities of 1.2 and 1.8 years, respectively. At September 30, 2018 and December 31, 2017 , the repurchase agreement balances were as follows: (in thousands) September 30, December 31, Short-term $ 679,612 $ 56,546 Long-term 601,643 1,465,062 Total $ 1,281,255 $ 1,521,608 At September 30, 2018 and December 31, 2017 , the repurchase agreements had the following characteristics and remaining maturities: September 30, 2018 December 31, 2017 Collateral Type Collateral Type (dollars in thousands) Loans CMBS (1) Total Amount Outstanding Loans CMBS (1) Total Amount Outstanding Within 30 days $ — $ — $ — $ 22,032 $ — $ 22,032 30 to 59 days — 28,262 28,262 — 34,514 34,514 60 to 89 days — — — — — — 90 to 119 days — — — — — — 120 to 364 days 651,350 — 651,350 — — — One year and over 601,643 — 601,643 1,465,062 — 1,465,062 Total $ 1,252,993 $ 28,262 $ 1,281,255 $ 1,487,094 $ 34,514 $ 1,521,608 Weighted average borrowing rate 4.36 % 4.58 % 4.36 % 3.78 % 3.77 % 3.78 % ____________________ (1) Includes both AFS securities and HTM securities sold under agreements to repurchase. The following table summarizes assets at carrying values that are pledged or restricted as collateral for the future payment obligations of repurchase agreements: (in thousands) September 30, December 31, Loans held-for-investment $ 1,738,790 $ 2,202,049 Available-for-sale securities, at fair value 12,830 12,798 Held-to-maturity securities 30,526 42,169 Restricted cash 2,922 565 Total $ 1,785,068 $ 2,257,581 Although the transactions under repurchase agreements represent committed borrowings until maturity, the respective lender retains the right to mark the underlying collateral to fair value. A reduction in the value of pledged assets due to credit or market events, depending on the agreement, would require the Company to fund margin calls or repurchase the underlying collateral. The following table summarizes certain characteristics of the Company’s repurchase agreements and counterparty concentration at September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 (dollars in thousands) Amount Outstanding Net Counterparty Exposure (1) Percent of Equity Weighted Average Years to Maturity Amount Outstanding Net Counterparty Exposure (1) Percent of Equity Weighted Average Years to Maturity Morgan Stanley Bank $ 467,381 $ 201,378 24 % 1.75 $ 425,539 $ 250,543 30 % 2.49 JPMorgan Chase Bank 403,347 143,192 17 % 0.70 285,457 215,068 26 % 1.32 Goldman Sachs Bank 195,937 71,879 9 % 0.59 252,734 86,091 10 % 1.33 Wells Fargo Bank 80,328 48,777 6 % 0.74 424,882 128,644 16 % 1.49 All other counterparties (2) 134,262 41,552 5 % 1.75 132,996 59,645 7 % 2.08 Total $ 1,281,255 $ 506,778 $ 1,521,608 $ 739,991 ____________________ (1) Represents the net carrying value of the loans held-for-investment, AFS securities and HTM securities sold under agreements to repurchase, including accrued interest plus any cash on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. (2) Represents amounts outstanding with one other counterparty as of both September 30, 2018 and December 31, 2017 .

Securitized Debt Obligations

Securitized Debt Obligations	9 Months Ended
	Sep. 30, 2018
Securitized Debt Obligations [Abstract]
Securitized Debt Obligations [Text Block]	Securitized Debt Obligations In the second quarter of 2018, the Company financed a pool of its commercial real estate loans through a collateralized loan obligation, or CLO, which is consolidated on the Company’s condensed consolidated financial statements. See Note 3 - Variable Interest Entities for additional information regarding consolidation of the CLO. The securitized debt obligations issued by the CLO are recorded at outstanding principal, net of any unamortized deferred debt issuance costs, on the Company’s condensed consolidated balance sheets. As of September 30, 2018 , the outstanding amount due on securitized debt obligations was $653.2 million , net of deferred issuance costs, with a weighted average interest rate of 3.35% and weighted average remaining maturities of 2.0

Convertible Senior Notes

Convertible Senior Notes	9 Months Ended
	Sep. 30, 2018
Convertible Debt [Abstract]
Convertible Senior Notes	Convertible Senior Notes On December 12, 2017, the Company closed a private placement of $125.0 million aggregate principal amount of convertible senior notes due 2022. On January 10, 2018, an additional $18.8 million in notes were issued by the Company in connection with the exercise of the initial purchaser’s option. The net proceeds from the offering were approximately $139.5 million after deducting underwriting discounts and estimated offering expenses payable by the Company. The notes are unsecured, pay interest semiannually at a rate of 5.625% per annum and are convertible at the option of the holder into shares of the Company’s common stock. The notes will mature in December 2022 , unless earlier converted or repurchased in accordance with their terms. The Company does not have the right to redeem the notes prior to maturity, but may be required to repurchase the notes from holders under certain circumstances. As of September 30, 2018 , the notes had a conversion rate of 50.0548 shares of common stock per $1,000 principal amount of the notes . The outstanding amount due on the convertible senior notes as of September 30, 2018 and December 31, 2017 was $140.1 million and $121.3 million

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The following represent the material commitments and contingencies of the Company as of September 30, 2018 : Management agreement. Upon the closing the IPO on June 28, 2017, the Company entered into a management agreement with PRCM. The Company pays PRCM a base management fee equal to 1.5% of the Company’s equity on an annualized basis, as defined in the management agreement. For purposes of calculating the management fee, equity means the sum of the net proceeds received by the Company from all issuances of its equity securities, plus its cumulative “core earnings” at the end of the most recently completed calendar quarter, less any distributions to stockholders, any amount that the Company has paid to repurchase its stock, and any incentive fees earned by PRCM, but excluding the incentive fee earned in the current quarter. As a result, equity for purposes of calculating the management fee may differ from the amount of stockholders’ equity shown in the Company’s financial statements. Beginning in the fourth quarter of 2018, incentive fees, if earned, will be payable to PRCM, as defined in the management agreement. The incentive fee will be the excess of (1) the product of (a) 20% and (b) the result of (i) the Company’s “core earnings” for the previous 12 -month period, minus (ii) the product of (A) the Company’s equity in the previous 12 -month period, and (B) 8% per annum, less (2) the sum of any incentive fees paid to PRCM with respect to the first three calendar quarters of such previous 12 -month period; provided, however, that no incentive fees are payable with respect to any calendar quarter unless “core earnings” for the 12 most recently completed calendar quarters in the aggregate is greater than zero . For purposes of calculating base management and incentive fees, “core earnings” means net income (loss) attributable to common stockholders, excluding non-cash equity compensation expense, incentive fees earned by PRCM, depreciation and amortization, any unrealized gains or losses or other similar non-cash items that are included in net income for the applicable period (regardless of whether such items are included in other comprehensive income or loss or in net income), and one-time events pursuant to changes in U.S. GAAP and certain material non-cash income or expense items, in each case after discussions between PRCM and the Company’s independent directors and approved by a majority of the Company’s independent directors. The initial term of the management agreement expires on June 28, 2020, and thereafter will automatically renew for successive one-year terms annually until terminated in accordance with the terms of the agreement. Upon termination of the management agreement by the Company without cause or by PRCM due to the Company’s material breach of the management agreement, the Company is required to pay a termination fee equal to three times the sum of the average annual base management fee and average annual incentive compensation, in each case earned by PRCM during the 24 -month period immediately preceding the date of termination, calculated as of the end of the most recently completed fiscal quarter prior to the date of termination. Employment contracts. The Company does not directly employ any personnel. Instead, the Company relies on the resources of PRCM and its affiliates to conduct the Company’s operations. Legal and regulatory. From time to time, the Company may be subject to liability under laws and government regulations and various claims and legal actions arising in the ordinary course of business. Liabilities are established for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher or lower than the amounts established for those claims. Based on information currently available, management is not aware of any legal or regulatory claims that would have a material effect on the Company’s consolidated financial statements and therefore no accrual is required as of September 30, 2018 . Unfunded commitments on loans held-for-investment. Certain of the Company’s commercial real estate loan agreements contain provisions for future fundings to borrowers, generally to finance lease-related or capital expenditures. As of September 30, 2018 and December 31, 2017 , the Company had unfunded commitments of $441.5 million and $339.2 million

Preferred Stock

Preferred Stock	9 Months Ended
	Sep. 30, 2018
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Preferred Stock	Preferred Stock In connection with the Formation Transaction, the Company issued 1,000 shares of its 10% cumulative redeemable preferred stock to Two Harbors, which immediately sold such preferred stock to an unaffiliated third-party investor. The preferred stock ranks senior to the rights of holders of the Company’s common stock, but junior to all other classes or series of preferred stock that may be issued. The holders of the preferred stock are entitled to receive, when, as and if authorized and declared by the Company, cumulative cash dividends at the rate of 10% per annum of the $1,000 liquidation preference per share of the preferred stock. Such dividends accrue on a daily basis and are cumulative from and including the initial issue date of the preferred stock. The Company has the option at any time after five years from the initial issue date to redeem the preferred stock at a redemption price of $1,000 per share, plus any accrued and unpaid dividends. At any time after six years from the initial issue date, the Company will, at the request of any preferred stockholder, repurchase the holder’s preferred stock at a price of $1,000 per share, plus any accrued and unpaid dividends. During the three and nine months ended September 30, 2018 , the Company declared dividends to the preferred stockholder of $25,000 and $75,000 , respectively. During both the three and nine months ended September 30, 2017 , the Company declared dividends to the preferred stockholder of $25,556

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2018
Stockholders' Equity Attributable to Parent [Abstract]
Stockholders' Equity	Stockholders’ Equity Common Stock On June 28, 2017, the Company completed the IPO of 10,000,000 shares of its common stock at a price of $19.50 per share, for gross proceeds of $195.0 million . Net proceeds to the Company were approximately $181.9 million , after accounting for issuance costs of approximately $13.1 million . Concurrently with the closing of the IPO, the Company issued 33,071,000 shares of its common stock to Two Harbors in exchange for the equity interests in the Predecessor, which became the Company’s wholly owned indirect subsidiary as a result of the transaction. On November 1, 2017, Two Harbors distributed to its common stockholders the 33,071,000 shares of the Company’s common stock it had acquired in connection with the Formation Transaction, allowing the Company’s market capitalization to be fully floating. As of September 30, 2018 , the Company had 43,456,234 shares of common stock outstanding. The following table presents a reconciliation of the common shares outstanding for the nine months ended September 30, 2018 and 2017 : Number of common shares Common shares outstanding, December 31, 2016 — Issuance of common stock 43,071,000 Issuance of restricted stock (1) 164,103 Common shares outstanding, September 30, 2017 43,235,103 Common shares outstanding, December 31, 2017 43,235,103 Issuance of restricted stock (1) 221,131 Common shares outstanding, September 30, 2018 43,456,234 ____________________ (1) Represents shares of restricted stock granted under the 2017 Equity Incentive Plan, of which 321,134 restricted shares remained subject to vesting requirements at September 30, 2018 . Distributions to Stockholders The following table presents cash dividends declared by the Company on its common stock since its IPO and Formation Transaction: Declaration Date Record Date Payment Date Cash Dividend Per Share September 20, 2018 October 2, 2018 October 18, 2018 $ 0.42 June 20, 2018 July 2, 2018 July 18, 2018 $ 0.40 March 15, 2018 March 29, 2018 April 18, 2018 $ 0.38 December 18, 2017 December 29, 2017 January 18, 2018 $ 0.38 September 18, 2017 September 29, 2017 October 18, 2017 $ 0.32 Accumulated Other Comprehensive Income Accumulated other comprehensive income at September 30, 2018 and December 31, 2017 was as follows: (in thousands) September 30, December 31, Available-for-sale securities Unrealized gains $ 32 $ — Unrealized losses — — Accumulated other comprehensive income $ 32 $ — Reclassifications out of Accumulated Other Comprehensive Income The Company did not record any reclassifications out of accumulated other comprehensive income during the three and nine months ended September 30, 2018 and 2017

Equity Incentive Plan

Equity Incentive Plan	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Equity Incentive Plan	Equity Incentive Plan The Company’s 2017 Equity Incentive Plan, or the Plan, provides incentive compensation to attract and retain qualified directors, officers, advisors, consultants and other personnel, including certain personnel of PRCM and its affiliates. The Plan is administered by the compensation committee of the Company’s board of directors. The compensation committee has the full authority to administer and interpret the Plan, to authorize the granting of awards, to determine the eligibility of directors, officers, advisors, consultants and other personnel, including personnel of PRCM and its affiliates, to receive an award, to determine the number of shares of common stock to be covered by each award (subject to the individual participant limitations provided in the Plan), to determine the terms, provisions and conditions of each award (which may not be inconsistent with the terms of the Plan), to prescribe the form of instruments evidencing awards and to take any other actions and make all other determinations that it deems necessary or appropriate in connection with the Plan or the administration or interpretation thereof. In connection with this authority, the compensation committee may, among other things, establish performance goals that must be met in order for awards to be granted or to vest, or for the restrictions on any such awards to lapse. The Plan provides for grants of restricted common stock, phantom shares, dividend equivalent rights and other equity-based awards, subject to a ceiling of 3,242,306 shares available for issuance under the Plan. The Plan allows for the Company’s board of directors to expand the types of awards available under the Plan to include long-term incentive plan units in the future. If an award granted under the Plan expires or terminates, the shares subject to any portion of the award that expires or terminates without having been exercised or paid, as the case may be, will again become available for the issuance of additional awards. Unless earlier terminated by the Company’s board of directors, no new award may be granted under the Plan after the tenth anniversary of the date that such Plan was initially approved by the Company’s board of directors. No award may be granted under the Plan to any person who, assuming payment of all awards held by such person, would own or be deemed to own more than 9.8% of the outstanding shares of the Company’s common stock. During the nine months ended September 30, 2018 and 2017 , the Company granted 19,175 and 14,103 shares of common stock, respectively, to its independent directors as compensation for their service on the Company’s board of directors, pursuant to the terms of the Plan. The estimated fair value of these awards was $17.86 and $19.47 per share on grant date, based on the closing price of the Company’s common stock on the NYSE on such date. The shares issued in 2017 vested immediately, and the shares issued in 2018 have a one year vesting period. Additionally, during the nine months ended September 30, 2018 and 2017 , the Company granted 201,956 and 150,000 shares of restricted common stock, respectively, to key employees of PRCM and its affiliates pursuant to the terms of the Plan and the associated award agreements. The estimated fair value of these awards was $17.33 and $19.50 per share on grant date, based on the closing market price of the Company’s common stock on the NYSE on such date. However, as the cost of these awards is measured at fair value at each reporting date based on the price of the Company’s stock as of period end in accordance with ASC 505, Equity , or ASC 505, the fair value of these awards as of September 30, 2018 was $19.28 per share based on the closing market price of the Company’s common stock on the NYSE on such date. The shares underlying the grants vest in three equal annual installments commencing on the first anniversary of the grant date, as long as the grantee complies with the terms and conditions of his or her applicable restricted stock award agreement. The following table summarizes the activity related to restricted common stock for the nine months ended September 30, 2018 and 2017 : Nine Months Ended September 30, 2018 2017 Shares Weighted Average Grant Date Fair Market Value Shares Weighted Average Grant Date Fair Market Value Outstanding at Beginning of Period 150,000 $ 19.50 — $ — Granted 221,131 17.38 164,103 19.50 Vested (49,997 ) (19.50 ) (14,103 ) (19.47 ) Forfeited — — — — Outstanding at End of Period 321,134 $ 18.04 150,000 $ 19.50 For the three and nine months ended September 30, 2018 , the Company recognized compensation related to restricted common stock of $1.0 million and $2.8 million , respectively. For both the three and nine months ended September 30, 2017 , the Company recognized compensation related to restricted common stock of $0.7 million

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The recently enacted tax law informally known as the Tax Cuts and Jobs Act, or the TCJA, significantly changes the U.S. federal income tax laws applicable to businesses and their owners, including REITs and their stockholders. These changes include, among other things, lowering the federal income tax rate applicable to corporations from 35% to 21% and repealing the corporate alternative minimum tax. The Company has completed its determination of the accounting implications of the TCJA on its tax accruals, and there is no impact recorded to the financial statements. Technical corrections or other amendments to the TCJA or administrative guidance interpreting the TCJA may be forthcoming at any time. While we do not anticipate a material effect on our operations, we continue to analyze and monitor the application of the TCJA to our businesses, our peers and the economic environment. The Company has elected to be taxed as a REIT under the Code for U.S. federal income tax purposes. As long as the Company qualifies as a REIT, the Company generally will not be subject to U.S. federal income taxes on its taxable income to the extent it annually distributes its net taxable income to stockholders, and does not engage in prohibited transactions. The Company intends to distribute 100% of its REIT taxable income and comply with all requirements to continue to qualify as a REIT. The majority of states also recognize the Company’s REIT status. The Company’s TRS files a separate tax return and is fully taxed as a standalone U.S. C-corporation. It is assumed that the Company will retain its REIT status and will incur no REIT level taxation as it intends to comply with the REIT regulations and annual distribution requirements. The following table summarizes the tax provision recorded at the taxable subsidiary level for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Current tax (benefit) provision: Federal $ — $ (2 ) $ (1 ) $ (5 ) State — — 2 2 Total current tax (benefit) provision — (2 ) 1 (3 ) Deferred tax benefit (1 ) — (3 ) — Total benefit from income taxes $ (1 ) $ (2 ) $ (2 ) $ (3 ) Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company’s condensed consolidated financial statements of a contingent tax liability for uncertain tax positions. Additionally, there were no amounts accrued for penalties or interest as of or during the periods presented in these condensed consolidated

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The Company has calculated earnings per share only for the period common stock was outstanding, referred to as the post-formation period. The Company has defined the post-formation period to be the period beginning on June 28, 2017, the date the Company commenced operations as a publicly traded company, and thereafter. Earnings per share is calculated by dividing the net income for the post-formation period by the weighted average number of shares outstanding during the post-formation period. The following table presents a reconciliation of the earnings and shares used in calculating basic and diluted earnings per share for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except share data) 2018 2017 2018 2017 Numerator: Net income attributable to common stockholders - basic $ 16,540 $ 11,493 $ 46,303 $ 11,662 Interest expense attributable to convertible notes (1) 2,207 6,576 — Net income attributable to common stockholders - diluted $ 18,747 $ 11,493 $ 52,879 $ 11,662 Denominator: Weighted average common shares outstanding 43,135,100 43,084,254 43,103,600 43,084,252 Weighted average restricted stock shares 321,134 150,000 322,509 150,000 Basic weighted average shares outstanding 43,456,234 43,234,254 43,426,109 43,234,252 Effect of dilutive shares issued in an assumed conversion of the convertible senior notes 7,195,378 — 7,190,155 — Diluted weighted average shares outstanding 50,651,612 43,234,254 50,616,264 43,234,252 Earnings Per Share Basic $ 0.38 $ 0.27 $ 1.07 $ 0.27 Diluted $ 0.37 $ 0.27 $ 1.04 $ 0.27 ____________________ (1)

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The following summary provides disclosure of the material transactions with affiliates of the Company. The Company does not have any employees and is externally managed by PRCM under the terms of a management agreement entered into in connection with closing of the IPO and Formation Transaction on June 28, 2017. Under the management agreement, PRCM and its affiliates provide the Company with the personnel and resources necessary to operate the Company’s business. In exchange, the Company pays PRCM a base management fee that is equal to 1.5% of the Company’s equity on an annualized basis as well as an incentive fee, which will be payable, if earned, beginning in the fourth quarter of 2018, in accordance with the terms of the management agreement. For purposes of calculating the management fee, equity is adjusted to exclude any common stock repurchases as well as any unrealized gains, losses or other items that do not affect realized net income (loss), among other adjustments, in accordance with the management agreement. The Company incurred $3.1 million and $9.4 million as a management fee to PRCM for the three and nine months ended September 30, 2018 , and $3.1 million and $3.2 million as a management fee to PRCM for the three and nine months ended September 30, 2017 , respectively. See further discussion of the base management fee and incentive fee calculations in Note 13 - Commitments and Contingencies . Prior to the IPO and Formation Transaction, the Predecessor was allocated its proportionate share of management fees incurred by Two Harbors under the management agreement that Two Harbors has with PRCM Advisers. Under its management agreement with PRCM Advisers as in effect during the relevant period, Two Harbors paid PRCM Advisers a base management fee equal to 1.5% of its adjusted equity on an annualized basis. The Predecessor was allocated management fees incurred by Two Harbors of $3.5 million for the period from January 1, 2017 through June 27, 2017. During the three and nine months ended September 30, 2018 , the Company reimbursed PRCM for certain direct and allocated costs incurred by PRCM on behalf of the Company. These direct and allocated costs totaled approximately $1.4 million and $4.3 million , respectively. During both the three and nine months ended September 30, 2017 , direct and allocated costs totaled approximately $1.1 million . In addition, during the three and nine months ended September 30, 2017 , certain direct and allocated operating expenses were paid by Two Harbors to PRCM Advisers and other third-party vendors and included in the Company’s condensed consolidated statements of comprehensive income . These direct and allocated costs totaled approximately $0.2 million and $4.4 million for the three and nine months ended September 30, 2017 , respectively. Expenses during the period may have been different had the Predecessor not been a subsidiary of Two Harbors during those periods. The Company has contractual relationships with the majority of its third-party vendors and pays those vendors directly. The Company will continue to have certain costs allocated to it by PRCM under the management agreement for compensation, data services, technology and certain office lease payments. The Company recognized $1.0 million and $2.8 million of compensation during the three and nine months ended September 30, 2018 related to restricted common stock issued to employees of PRCM and the Company’s independent directors pursuant to the Plan. See Note 16 - Equity Incentive Plan for additional information. During the nine months ended September 30, 2017 , the Company financed certain of its loans held-for-investment through a revolving note payable to TH Insurance Holdings Company LLC, or TH Insurance, a captive insurance company and indirect subsidiary of Two Harbors and a member of the Federal Home Loan Bank of Des Moines, or the FHLB. In exchange for the note with TH Insurance, the Company received an allocated portion of TH Insurance’s advances from the FHLB and pledged to the FHLB a portion of its loans held-for-investment as collateral for TH Insurance’s advances. The affiliate note payable reflected terms consistent with TH Insurance’s FHLB advances. During 2017, the note payable to TH Insurance was in effect to assist with cash management and operational processes as the investments in the Company’s portfolio pledged to the FHLB were released and transitioned to its repurchase facilities. The affiliate note payable matured on October 27, 2017 and was repaid in full.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On October 12, 2018, the Company closed an underwritten public offering of $125 million aggregate principal amount of convertible senior notes due 2023. The Company also granted the underwriters a 30-day option to purchase up to an additional $18.75 million aggregate principal amount of the notes to cover over-allotments, $6.6 million of which closed on October 24, 2018. The notes are unsecured, pay interest semiannually at a rate of 6.375% per annum and are convertible at the option of the holder into shares of the Company’s common stock. The notes mature in October of 2023, unless earlier converted or repurchased in accordance with their terms. The Company will not have the right to redeem the notes prior to maturity, but may be required to repurchase the notes from holders under certain circumstances. The notes have an initial conversion rate of 48.8496 shares of common stock per $1,000 principal amount of the notes (equivalent to an initial conversion price of $20.47 per share), subject to adjustment. Events subsequent to September 30, 2018 , were evaluated through the date these financial statements were issued and no additional events were identified requiring further disclosure in these condensed consolidated

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
Basis of Presentation and Significant Accounting Policies [Abstract]
Consolidation and Basis of Presentation	Consolidation and Basis of Presentation The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or SEC. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, have been condensed or omitted according to such SEC rules and regulations. However, management believes that the disclosures included in these interim condensed consolidated financial statements are adequate to make the information presented not misleading. The accompanying condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . In the opinion of management, all normal and recurring adjustments necessary to present fairly the financial condition of the Company at September 30, 2018 and results of operations for all periods presented have been made. The results of operations for the three and nine months ended September 30, 2018 should not be construed as indicative of the results to be expected for future periods or the full year. The condensed consolidated financial statements of the Company include the accounts of all subsidiaries; inter-company accounts and transactions have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make a number of significant estimates. These include estimates of fair value of certain assets and liabilities, amount and timing of allowances for loan losses and impairments and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of certain revenues and expenses during the reported period. It is likely that changes in these estimates ( e.g.
Formation Transaction	Formation Transaction On June 28, 2017, the Company completed the Formation Transaction, through which the Company acquired the equity interests in the Predecessor from Two Harbors. In accordance with Accounting Standards Codification (ASC) 805, Business Combinations , the Predecessor is considered the acquiring or surviving entity, meaning the historical assets and liabilities of TH Commercial Holdings LLC included in the condensed consolidated balance sheets are recorded at the Predecessor’s historical carryover cost basis. As a result of the Formation Transaction, the Company is considered a continuation of the Predecessor’s business operations and its historical results of operations and cash flows are included in the Company’s condensed consolidated financial statements. In consideration for the contribution, Two Harbors received 33,071,000 shares of the Company’s common stock and 1,000 shares of cumulative redeemable preferred stock with an aggregate liquidation preference of $1,000
Securitized Debt Obligations	Securitized Debt Obligations In the second quarter of 2018, the Company financed a pool of its commercial real estate loans through a collateralized loan obligation, or CLO, retaining the subordinate securities in its investment portfolio. The securitization was accounted for as a financing arrangement and consolidated on the Company’s condensed consolidated financial statements. The securitized debt obligations not retained by the Company, which are nonrecourse to the Company beyond the assets held in the CLO, are recorded at outstanding principal balance, net of any unamortized deferred debt issuance costs, on the Company’s condensed consolidated
Offsetting Assets and Liabilities	Offsetting Assets and Liabilities Certain of the Company’s repurchase agreements are governed by underlying agreements that provide for a right of setoff in the event of default of either party to the agreement. Under certain of these agreements, the Company and the counterparty may be required to post cash collateral based upon the net underlying market value of the Company’s open positions with the counterparty. Under U.S. GAAP, if the Company has a valid right of setoff, it may offset the related asset and liability and report the net amount. The Company presents repurchase agreements subject to master netting arrangements or similar agreements on a gross basis. Regardless of whether or not the Company pledges or receives any cash collateral in accordance with its repurchase agreements, the Company does not offset financial assets and liabilities with the associated cash collateral on its condensed consolidated balance sheets. The following table presents information about the Company’s repurchase agreements that are subject to master netting arrangements or similar agreements and can potentially be offset on the Company’s condensed consolidated balance sheets as of September 30, 2018 and December 31, 2017 : (in thousands) September 30, December 31, Gross amounts of repurchase agreements $ 1,281,255 $ 1,521,608 Gross amounts offset in the consolidated balance sheets — — Net amounts of repurchase agreements presented in the consolidated balance sheets 1,281,255 1,521,608 Gross amounts not offset against repurchase agreements in the consolidated balance sheets (1) : Financial instruments (1,281,255 ) (1,521,608 ) Cash collateral received (pledged) — — Net amount $ — $ — ____________________ (1) Amounts presented are limited in total to the net amount of liabilities presented in the condensed consolidated balance sheets by instrument. Excess cash collateral or financial assets that are pledged to counterparties may exceed the financial liabilities subject to a master netting arrangement or similar agreement. These excess amounts are excluded from the table above, although separately reported within restricted cash or due from counterparties in the Company’s condensed consolidated
Recently Issued and/or Adopted Accounting Standards	Recently Issued and/or Adopted Accounting Standards Under the Jumpstart Our Business Startups Act, or the JOBS Act, the Company meets the definition of an “emerging growth company.” The Company has irrevocably elected to opt out of the extended transition period for complying with new or revised U.S. accounting standards pursuant to Section 107(b) of the JOBS Act. As a result, the Company will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. Based on the market value of the Company’s common stock that is held by non-affiliates as of June 30, 2018, the Company will no longer qualify as an “emerging growth company” as of December, 31 2018. Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board, or FASB, issued ASU No. 2014-09, which is a comprehensive revenue recognition standard that supersedes virtually all existing revenue guidance under U.S. GAAP. The standard’s core principle is that an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. As a result of the issuance of ASU No. 2015-14 in August 2015 deferring the effective date of ASU No. 2014-09 by one year, the ASU is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2017, with early adoption prohibited. The Company has evaluated the new guidance and determined that interest income and gains and losses on financial instruments are outside the scope of ASC 606, Revenues from Contracts with Customers . As a result, the adoption of this ASU did not have a material impact on the Company’s financial condition, results of operations or financial statement disclosures. Lease Classification and Accounting In February 2016, the FASB issued ASU No. 2016-02, which requires lessees to recognize on their balance sheets both a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. The ASU is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2018, with early adoption permitted. The Company has determined this ASU will not have a material impact on the Company’s financial condition, results of operations or financial statement disclosures. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, which changes the impairment model for most financial assets and certain other instruments. Allowances for credit losses on available-for-sale, or AFS, and held-to-maturity, or HTM, debt securities will be recognized, rather than direct reductions in the amortized cost of the investments. The new model also requires the estimation of lifetime expected credit losses and corresponding recognition of allowance for losses on trade and other receivables, HTM debt securities, loans, and other instruments held at amortized cost. The ASU requires certain recurring disclosures and is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2019, with early adoption permitted for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2018. The Company is evaluating the adoption of this ASU to determine the impact it may have on its condensed consolidated financial statements, which at the date of adoption, is expected to increase the allowance for credit losses with a resulting negative adjustment to retained earnings. Accounting for Share-Based Payments to Nonemployees In June 2018, the FASB issued ASU No. 2018-07 to simplify the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments to employees, with certain exceptions. Under the guidance, equity-classified nonemployee awards will be measured on and fixed at the grant date, rather than measured at fair value at each reporting date until the date at which the nonemployee’s performance is complete. The ASU is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2018, with early adoption permitted. The Company is evaluating the adoption of this ASU to determine the impact it may have on its condensed consolidated financial statements. Fair Value Measurement Disclosure Requirements In August 2018, the FASB issued ASU No. 2018-13, which eliminates, adds and modifies certain disclosure requirements for fair value measurements. Under the guidance, entities are no longer required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies are required to disclose (1) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements of instruments held at the end of the reporting period and (2) the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The ASU is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2019, with early adoption permitted. Early adoption of this ASU did not have a material impact on the Company’s financial condition, results of operations or financial statement disclosures. SEC Disclosure Update and Simplification

Basis of Presentation and Sig_3

Basis of Presentation and Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2018
Basis of Presentation and Significant Accounting Policies [Abstract]
Offsetting Liabilities	The following table presents information about the Company’s repurchase agreements that are subject to master netting arrangements or similar agreements and can potentially be offset on the Company’s condensed consolidated balance sheets as of September 30, 2018 and December 31, 2017 : (in thousands) September 30, December 31, Gross amounts of repurchase agreements $ 1,281,255 $ 1,521,608 Gross amounts offset in the consolidated balance sheets — — Net amounts of repurchase agreements presented in the consolidated balance sheets 1,281,255 1,521,608 Gross amounts not offset against repurchase agreements in the consolidated balance sheets (1) : Financial instruments (1,281,255 ) (1,521,608 ) Cash collateral received (pledged) — — Net amount $ — $ — ____________________ (1) Amounts presented are limited in total to the net amount of liabilities presented in the condensed consolidated balance sheets by instrument. Excess cash collateral or financial assets that are pledged to counterparties may exceed the financial liabilities subject to a master netting arrangement or similar agreement. These excess amounts are excluded from the table above, although separately reported within restricted cash or due from counterparties in the Company’s condensed consolidated

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	9 Months Ended
	Sep. 30, 2018
Variable Interest Entities [Abstract]
Schedule of Variable Interest Entities	The following table presents a summary of the assets and liabilities of all variable interest entities consolidated on the Company’s condensed consolidated balance sheets as of September 30, 2018 and December 31, 2017 : (in thousands) September 30, December 31, Loans held-for-investment $ 820,257 $ 45,890 Accrued interest receivable 2,441 178 Other assets 5,260 — Total Assets $ 827,958 $ 46,068 Securitized debt obligations $ 653,184 $ — Accrued interest payable 571 — Total Liabilities $ 653,755 $ —

Loans Held-for-Investment (Tabl

Loans Held-for-Investment (Tables)	9 Months Ended
	Sep. 30, 2018
Loans Held-for-Investment [Abstract]
Schedule of Loans Held-for-Investment	The following tables summarize the Company’s loans held-for-investment by asset type, property type and geographic location as of September 30, 2018 and December 31, 2017 : September 30, (dollars in thousands) Senior Loans (1) Mezzanine Loans B-Notes Total Unpaid principal balance $ 2,684,269 $ 31,964 $ 14,702 $ 2,730,935 Unamortized (discount) premium (156 ) — — (156 ) Unamortized net deferred origination fees (22,441 ) — — (22,441 ) Carrying value $ 2,661,672 $ 31,964 $ 14,702 $ 2,708,338 Unfunded commitments $ 441,538 $ — $ — $ 441,538 Number of loans 71 3 1 75 Weighted average coupon 6.3 % 11.1 % 8.0 % 6.3 % Weighted average years to maturity (2) 2.1 2.2 8.3 2.1 December 31, (dollars in thousands) Senior Loans (1) Mezzanine Loans B-Notes Total Unpaid principal balance $ 2,220,361 $ 88,945 $ 14,845 $ 2,324,151 Unamortized (discount) premium (169 ) (9 ) — (178 ) Unamortized net deferred origination fees (19,752 ) 45 — (19,707 ) Carrying value $ 2,200,440 $ 88,981 $ 14,845 $ 2,304,266 Unfunded commitments $ 337,623 $ 1,580 $ — $ 339,203 Number of loans 53 5 1 59 Weighted average coupon 5.9 % 9.7 % 8.0 % 6.0 % Weighted average years to maturity (2) 2.3 2.0 9.1 2.4 ____________________ (1) Loans primarily secured by a first priority lien on commercial real property and related personal property and also includes, when applicable, any companion subordinate loans. (2)
Schedule of Loans Held-for-Investment by Property Type	(dollars in thousands) September 30, December 31, Property Type Carrying Value % of Loan Portfolio Carrying Value % of Loan Portfolio Office $ 1,356,705 50.1 % $ 1,223,642 53.1 % Multifamily 430,156 15.9 % 356,016 15.4 % Hotel 398,218 14.7 % 274,416 11.9 % Retail 302,151 11.2 % 254,786 11.1 % Industrial 221,108 8.1 % 195,406 8.5 % Total $ 2,708,338 100.0 % $ 2,304,266 100.0 %
Schedule of Loans Held-for-Investment by Geographic Location	(dollars in thousands) September 30, December 31, Geographic Location Carrying Value % of Loan Portfolio Carrying Value % of Loan Portfolio Northeast $ 1,012,429 37.4 % $ 896,361 38.9 % West 654,097 24.2 % 509,088 22.1 % Southwest 599,696 22.1 % 454,088 19.7 % Southeast 323,433 11.9 % 346,623 15.0 % Midwest 118,683 4.4 % 98,106 4.3 % Total $ 2,708,338 100.0 % $ 2,304,266 100.0 %
Rollforward of Loans Held-for-Investment	The following table summarizes activity related to loans held-for-investment for the three and nine months ended September 30, 2018 and 2017 . Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Balance at beginning of period $ 2,483,606 $ 1,739,253 $ 2,304,266 $ 1,364,291 Originations, acquisitions and additional fundings 249,532 393,425 851,662 771,473 Repayments (24,199 ) (303 ) (444,878 ) (1,793 ) Net discount accretion (premium amortization) 4 6 22 (11 ) Increase in net deferred origination fees (3,990 ) (5,858 ) (11,994 ) (11,568 ) Amortization of net deferred origination fees 3,385 1,431 9,260 5,562 Allowance for loan losses — — — — Balance at end of period $ 2,708,338 $ 2,127,954 $ 2,708,338 $ 2,127,954
Schedule of Loans Held-for-Investment by Internal Risk Rating	The following table presents the number of loans, unpaid principal balance and carrying value (amortized cost) by risk rating for loans held-for-investment as of September 30, 2018 and December 31, 2017 : (dollars in thousands) September 30, December 31, Risk Rating Number of Loans Unpaid Principal Balance Carrying Value Number of Loans Unpaid Principal Balance Carrying Value 1 7 $ 235,532 $ 234,727 6 $ 414,695 $ 413,314 2 63 2,326,386 2,305,166 50 1,840,638 1,822,134 3 5 169,017 168,445 3 68,818 68,818 4 — — — — — — 5 — — — — — — Total 75 $ 2,730,935 $ 2,708,338 59 $ 2,324,151 $ 2,304,266

Available-for-Sale Securities_2

Available-for-Sale Securities, at Fair Value (Tables)	9 Months Ended
	Sep. 30, 2018
Debt Securities, Available-for-sale [Abstract]
Schedule of Available-for-sale Securities Reconciliation	The following table presents the face value and carrying value (which approximates fair value) of AFS securities as of September 30, 2018 and December 31, 2017 : (in thousands) September 30, December 31, Face value $ 12,798 $ 12,798 Gross unrealized gains 32 — Gross unrealized losses — — Carrying value $ 12,830 $ 12,798

Held-to-Maturity Securities (Ta

Held-to-Maturity Securities (Tables)	9 Months Ended
	Sep. 30, 2018
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]
Held-to-maturity Securities	The following table presents the face value and carrying value of HTM securities by collateral type as of September 30, 2018 and December 31, 2017 : (in thousands) September 30, December 31, Face value $ 30,526 $ 42,169 Unamortized premium (discount) — — Carrying value $ 30,526 $ 42,169

Cash, Cash Equivalents and Re_2

Cash, Cash Equivalents and Restricted Cash (Tables)	9 Months Ended
	Sep. 30, 2018
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Schedule of Cash and Cash Equivalents	The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Company’s condensed consolidated balance sheets as of September 30, 2018 and December 31, 2017 that sum to the total of the same such amounts shown in the statements of cash flows: (in thousands) September 30, December 31, Cash and cash equivalents $ 148,228 $ 107,765 Restricted cash 5,320 2,953 Total cash, cash equivalents and restricted cash $ 153,548 $ 110,718

Accrued Interest Receivable (Ta

Accrued Interest Receivable (Tables)	9 Months Ended
	Sep. 30, 2018
Accrued Interest Receivable [Abstract]
Accrued Interest Receivable	The following table presents the Company’s accrued interest receivable by collateral type as of September 30, 2018 and December 31, 2017 : (in thousands) September 30, December 31, Loans held-for-investment $ 8,009 $ 6,880 Available-for-sale securities 51 51 Held-to-maturity securities 128 174 Total $ 8,188 $ 7,105

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value, Measurement Inputs, Disclosure	The following tables display the Company’s assets measured at fair value on a recurring basis. The Company does not hold any liabilities measured at fair value on its condensed consolidated balance sheets. Recurring Fair Value Measurements September 30, 2018 (in thousands) Level 1 Level 2 Level 3 Total Assets Available-for-sale securities $ — $ 12,830 $ — $ 12,830 Total assets $ — $ 12,830 $ — $ 12,830 Recurring Fair Value Measurements December 31, 2017 (in thousands) Level 1 Level 2 Level 3 Total Assets Available-for-sale securities $ — $ 12,798 $ — $ 12,798 Total assets $ — $ 12,798 $ — $ 12,798
Fair Value, by Balance Sheet Grouping	The following table presents the carrying values and estimated fair values of assets and liabilities that are required to be recorded or disclosed at fair value at September 30, 2018 and December 31, 2017 . September 30, 2018 December 31, 2017 (in thousands) Carrying Value Fair Value Carrying Value Fair Value Assets Loans held-for-investment $ 2,708,338 $ 2,739,079 $ 2,304,266 $ 2,322,259 Available-for-sale securities $ 12,830 $ 12,830 $ 12,798 $ 12,798 Held-to-maturity securities $ 30,526 $ 30,929 $ 42,169 $ 42,797 Cash and cash equivalents $ 148,228 $ 148,228 $ 107,765 $ 107,765 Restricted cash $ 5,320 $ 5,320 $ 2,953 $ 2,953 Liabilities Repurchase agreements $ 1,281,255 $ 1,281,255 $ 1,521,608 $ 1,521,608 Securitized debt obligations $ 653,184 $ 659,621 $ — $ — Convertible senior notes $ 140,124 $ 148,754 $ 121,314 $ 125,750

Repurchase Agreements (Tables)

Repurchase Agreements (Tables)	9 Months Ended
	Sep. 30, 2018
Disclosure of Repurchase Agreements [Abstract]
Schedule Of Repurchase Agreements By Term, Short Or Long	At September 30, 2018 and December 31, 2017 , the repurchase agreement balances were as follows: (in thousands) September 30, December 31, Short-term $ 679,612 $ 56,546 Long-term 601,643 1,465,062 Total $ 1,281,255 $ 1,521,608
Schedule of Repurchase Agreements by Maturity	At September 30, 2018 and December 31, 2017 , the repurchase agreements had the following characteristics and remaining maturities: September 30, 2018 December 31, 2017 Collateral Type Collateral Type (dollars in thousands) Loans CMBS (1) Total Amount Outstanding Loans CMBS (1) Total Amount Outstanding Within 30 days $ — $ — $ — $ 22,032 $ — $ 22,032 30 to 59 days — 28,262 28,262 — 34,514 34,514 60 to 89 days — — — — — — 90 to 119 days — — — — — — 120 to 364 days 651,350 — 651,350 — — — One year and over 601,643 — 601,643 1,465,062 — 1,465,062 Total $ 1,252,993 $ 28,262 $ 1,281,255 $ 1,487,094 $ 34,514 $ 1,521,608 Weighted average borrowing rate 4.36 % 4.58 % 4.36 % 3.78 % 3.77 % 3.78 % ____________________ (1) Includes both AFS securities and HTM securities sold under agreements to repurchase.
Schedule of Underlying Assets of Repurchase Agreements when Amount of Repurchase Agreements Exceeds 10 Percent of Assets	The following table summarizes assets at carrying values that are pledged or restricted as collateral for the future payment obligations of repurchase agreements: (in thousands) September 30, December 31, Loans held-for-investment $ 1,738,790 $ 2,202,049 Available-for-sale securities, at fair value 12,830 12,798 Held-to-maturity securities 30,526 42,169 Restricted cash 2,922 565 Total $ 1,785,068 $ 2,257,581
Schedule of Repurchase Agreement Counterparties with Whom Repurchase Agreements Exceed 10 Percent of Stockholders' Equity	The following table summarizes certain characteristics of the Company’s repurchase agreements and counterparty concentration at September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 (dollars in thousands) Amount Outstanding Net Counterparty Exposure (1) Percent of Equity Weighted Average Years to Maturity Amount Outstanding Net Counterparty Exposure (1) Percent of Equity Weighted Average Years to Maturity Morgan Stanley Bank $ 467,381 $ 201,378 24 % 1.75 $ 425,539 $ 250,543 30 % 2.49 JPMorgan Chase Bank 403,347 143,192 17 % 0.70 285,457 215,068 26 % 1.32 Goldman Sachs Bank 195,937 71,879 9 % 0.59 252,734 86,091 10 % 1.33 Wells Fargo Bank 80,328 48,777 6 % 0.74 424,882 128,644 16 % 1.49 All other counterparties (2) 134,262 41,552 5 % 1.75 132,996 59,645 7 % 2.08 Total $ 1,281,255 $ 506,778 $ 1,521,608 $ 739,991 ____________________ (1) Represents the net carrying value of the loans held-for-investment, AFS securities and HTM securities sold under agreements to repurchase, including accrued interest plus any cash on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. (2) Represents amounts outstanding with one other counterparty as of both September 30, 2018 and December 31, 2017

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2018
Stockholders' Equity Attributable to Parent [Abstract]
Rollforward of Common Stock	As of September 30, 2018 , the Company had 43,456,234 shares of common stock outstanding. The following table presents a reconciliation of the common shares outstanding for the nine months ended September 30, 2018 and 2017 : Number of common shares Common shares outstanding, December 31, 2016 — Issuance of common stock 43,071,000 Issuance of restricted stock (1) 164,103 Common shares outstanding, September 30, 2017 43,235,103 Common shares outstanding, December 31, 2017 43,235,103 Issuance of restricted stock (1) 221,131 Common shares outstanding, September 30, 2018 43,456,234 ____________________ (1) Represents shares of restricted stock granted under the 2017 Equity Incentive Plan, of which 321,134 restricted shares remained subject to vesting requirements at September 30, 2018
Schedule of Dividends Declared	The following table presents cash dividends declared by the Company on its common stock since its IPO and Formation Transaction: Declaration Date Record Date Payment Date Cash Dividend Per Share September 20, 2018 October 2, 2018 October 18, 2018 $ 0.42 June 20, 2018 July 2, 2018 July 18, 2018 $ 0.40 March 15, 2018 March 29, 2018 April 18, 2018 $ 0.38 December 18, 2017 December 29, 2017 January 18, 2018 $ 0.38 September 18, 2017 September 29, 2017 October 18, 2017 $ 0.32
Schedule of Accumulated Other Comprehensive Income (Loss)	Accumulated other comprehensive income at September 30, 2018 and December 31, 2017 was as follows: (in thousands) September 30, December 31, Available-for-sale securities Unrealized gains $ 32 $ — Unrealized losses — — Accumulated other comprehensive income $ 32 $ —

Equity Incentive Plan (Tables)

Equity Incentive Plan (Tables)	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity	The following table summarizes the activity related to restricted common stock for the nine months ended September 30, 2018 and 2017 : Nine Months Ended September 30, 2018 2017 Shares Weighted Average Grant Date Fair Market Value Shares Weighted Average Grant Date Fair Market Value Outstanding at Beginning of Period 150,000 $ 19.50 — $ — Granted 221,131 17.38 164,103 19.50 Vested (49,997 ) (19.50 ) (14,103 ) (19.47 ) Forfeited — — — — Outstanding at End of Period 321,134 $ 18.04 150,000 $ 19.50

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	The following table summarizes the tax provision recorded at the taxable subsidiary level for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Current tax (benefit) provision: Federal $ — $ (2 ) $ (1 ) $ (5 ) State — — 2 2 Total current tax (benefit) provision — (2 ) 1 (3 ) Deferred tax benefit (1 ) — (3 ) — Total benefit from income taxes $ (1 ) $ (2 ) $ (2 ) $ (3 )

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table presents a reconciliation of the earnings and shares used in calculating basic and diluted earnings per share for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except share data) 2018 2017 2018 2017 Numerator: Net income attributable to common stockholders - basic $ 16,540 $ 11,493 $ 46,303 $ 11,662 Interest expense attributable to convertible notes (1) 2,207 6,576 — Net income attributable to common stockholders - diluted $ 18,747 $ 11,493 $ 52,879 $ 11,662 Denominator: Weighted average common shares outstanding 43,135,100 43,084,254 43,103,600 43,084,252 Weighted average restricted stock shares 321,134 150,000 322,509 150,000 Basic weighted average shares outstanding 43,456,234 43,234,254 43,426,109 43,234,252 Effect of dilutive shares issued in an assumed conversion of the convertible senior notes 7,195,378 — 7,190,155 — Diluted weighted average shares outstanding 50,651,612 43,234,254 50,616,264 43,234,252 Earnings Per Share Basic $ 0.38 $ 0.27 $ 1.07 $ 0.27 Diluted $ 0.37 $ 0.27 $ 1.04 $ 0.27 ____________________ (1)

Organization and Operations (De

Organization and Operations (Details) - shares	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017	Jun. 28, 2017
Class of Stock [Line Items]
Ownership percentage by Two Harbors Investment Corp.			76.50%
Preferred stock dividend rate	10.00%
Common Stock [Member]
Class of Stock [Line Items]
Number of shares issued in exchange for acquisition of TH Commercial Holdings LLC (in shares)		33,071,000
Preferred Stock [Member]
Class of Stock [Line Items]
Number of shares issued in exchange for acquisition of TH Commercial Holdings LLC (in shares)		1,000

Organization and Operations Two

Organization and Operations Two Harbors Investment Corp. Special Dividend (Details)	Nov. 01, 2017shares
Organization and Operations [Abstract]
Number of shares of the company's common stock distributed by Two Harbors Investment Corp. to its stockholders via special dividend (in shares)	33,071,000

Basis of Presentation and Sig_4

Basis of Presentation and Significant Accounting Policies Formation Transaction (Details) - $ / shares	12 Months Ended
	Dec. 31, 2017	Sep. 30, 2018
Class of Stock [Line Items]
Preferred stock liquidation preference (in usd per share)		$ 1,000
Common Stock [Member]
Class of Stock [Line Items]
Number of shares issued in exchange for acquisition of TH Commercial Holdings LLC (in shares)	33,071,000
Preferred Stock [Member]
Class of Stock [Line Items]
Number of shares issued in exchange for acquisition of TH Commercial Holdings LLC (in shares)	1,000

Basis of Presentation and Sig_5

Basis of Presentation and Significant Accounting Policies Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Basis of Presentation and Significant Accounting Policies [Abstract]
Gross amount of recognized repurchase agreements	$ 1,281,255	$ 1,521,608
Gross amount of financial assets offset against repurchase agreements in the balance sheet	0	0
Repurchase agreements	1,281,255	1,521,608
Gross amount of financial assets not offset against repurchase agreements in the balance sheet	(1,281,255)	(1,521,608)
Gross amount of cash collateral pledged not offset against repurchase agreements in the balance sheet	0	0
Net amount of repurchase agreements after effects of amounts offset and not offset in the balance sheet	$ 0	$ 0

Variable Interest Entities (Det

Variable Interest Entities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Variable Interest Entity [Line Items]
Assets of consolidated Variable Interest Entities	$ 827,958	$ 46,068
Liabilities of consolidated Variable Interest Entities	653,755	0
Assets of nonconsolidated Variable Interest Entities	43,400	55,000
Maximum exposure to loss of nonconsolidated Variable Interest Entities	43,356	54,967
Loans Held-for-Investment [Member]
Variable Interest Entity [Line Items]
Assets of consolidated Variable Interest Entities	820,257	45,890
Accrued Interest Receivable [Member]
Variable Interest Entity [Line Items]
Assets of consolidated Variable Interest Entities	2,441	178
Other Assets [Member]
Variable Interest Entity [Line Items]
Assets of consolidated Variable Interest Entities	5,260	0
Assets, Total [Member]
Variable Interest Entity [Line Items]
Assets of consolidated Variable Interest Entities	827,958	46,068
Securitized Debt Obligations [Member]
Variable Interest Entity [Line Items]
Liabilities of consolidated Variable Interest Entities	653,184	0
Accrued Interest Payable [Member]
Variable Interest Entity [Line Items]
Liabilities of consolidated Variable Interest Entities	571	0
Liabilities, Total [Member]
Variable Interest Entity [Line Items]
Liabilities of consolidated Variable Interest Entities	$ 653,755	$ 0

Loans Held-for-Investment (Deta

Loans Held-for-Investment (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018USD ($)loan	Dec. 31, 2017USD ($)loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance	$ 2,730,935	$ 2,324,151
Unamortized (discount) premium	(156)	(178)
Unamortized net deferred origination fees	(22,441)	(19,707)
Loans held-for-investment	2,708,338	2,304,266
Unfunded commitments	$ 441,538	$ 339,203
Number of loans | loan	75	59
Weighted average coupon	6.30%	6.00%
Weighted average years to maturity	2 years 1 month 6 days	2 years 4 months 24 days
First Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance	$ 2,684,269	$ 2,220,361
Unamortized (discount) premium	(156)	(169)
Unamortized net deferred origination fees	(22,441)	(19,752)
Loans held-for-investment	2,661,672	2,200,440
Unfunded commitments	$ 441,538	$ 337,623
Number of loans | loan	71	53
Weighted average coupon	6.30%	5.90%
Weighted average years to maturity	2 years 1 month 6 days	2 years 3 months 18 days
Second Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance	$ 31,964	$ 88,945
Unamortized (discount) premium	0	(9)
Unamortized net deferred origination fees	0	45
Loans held-for-investment	31,964	88,981
Unfunded commitments	$ 0	$ 1,580
Number of loans | loan	3	5
Weighted average coupon	11.10%	9.70%
Weighted average years to maturity	2 years 2 months 12 days	2 years
Junior Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance	$ 14,702	$ 14,845
Unamortized (discount) premium	0	0
Unamortized net deferred origination fees	0	0
Loans held-for-investment	14,702	14,845
Unfunded commitments	$ 0	$ 0
Number of loans | loan	1	1
Weighted average coupon	8.00%	8.00%
Weighted average years to maturity	8 years 3 months 18 days	9 years 1 month 6 days

Loans Held-for-Investment by Pr

Loans Held-for-Investment by Property Type (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 2,708,338	$ 2,304,266
Percentage of total loans held-for-investment	100.00%	100.00%
Office Building [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 1,356,705	$ 1,223,642
Percentage of total loans held-for-investment	50.10%	53.10%
Multifamily [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 430,156	$ 356,016
Percentage of total loans held-for-investment	15.90%	15.40%
Hotel [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 398,218	$ 274,416
Percentage of total loans held-for-investment	14.70%	11.90%
Retail Site [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 302,151	$ 254,786
Percentage of total loans held-for-investment	11.20%	11.10%
Industrial Property [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 221,108	$ 195,406
Percentage of total loans held-for-investment	8.10%	8.50%

Loans Held-for-Investment by Ge

Loans Held-for-Investment by Geographic Location (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 2,708,338	$ 2,304,266
Percentage of total loans held-for-investment	100.00%	100.00%
United States, Northeastern Region [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 1,012,429	$ 896,361
Percentage of total loans held-for-investment	37.40%	38.90%
United States, Western Region [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 654,097	$ 509,088
Percentage of total loans held-for-investment	24.20%	22.10%
United States, Southwestern Region [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 599,696	$ 454,088
Percentage of total loans held-for-investment	22.10%	19.70%
United States, Southeastern Region [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 323,433	$ 346,623
Percentage of total loans held-for-investment	11.90%	15.00%
United States, Midwestern Region [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 118,683	$ 98,106
Percentage of total loans held-for-investment	4.40%	4.30%

Rollforward of Loans Held-for-I

Rollforward of Loans Held-for-Investment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Loans Held-for-Investment [Abstract]
Loans held-for-investment pledged as collateral for borrowings	$ 2,600,000		$ 2,600,000		$ 2,200,000
Loans Held-for-Investment [Roll Forward]
Loans held-for-investment at beginning of period	2,483,606	$ 1,739,253	2,304,266	$ 1,364,291
Originations, acquisitions and additional fundings	249,532	393,425	851,662	771,473
Repayments	(24,199)	(303)	(444,878)	(1,793)
Net discount accretion (premium amortization)	4	6	22	(11)
Increase in net deferred origination fees	(3,990)	(5,858)	(11,994)	(11,568)
Accretion of discounts and net deferred fees on loans held-for-investment	3,385	1,431	9,260	5,562
Allowance for loan losses	0	0	0	0
Loans held-for-investment at end of period	$ 2,708,338	$ 2,127,954	$ 2,708,338	$ 2,127,954

Loans Held-for-Investment by In

Loans Held-for-Investment by Internal Risk Rating (Details) $ in Thousands	Sep. 30, 2018USD ($)loan	Dec. 31, 2017USD ($)loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans | loan	75	59
Unpaid principal balance	$ 2,730,935	$ 2,324,151
Loans held-for-investment	$ 2,708,338	$ 2,304,266
Risk Rating 1 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans | loan	7	6
Unpaid principal balance	$ 235,532	$ 414,695
Loans held-for-investment	$ 234,727	$ 413,314
Risk Rating 2 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans | loan	63	50
Unpaid principal balance	$ 2,326,386	$ 1,840,638
Loans held-for-investment	$ 2,305,166	$ 1,822,134
Risk Rating 3 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans | loan	5	3
Unpaid principal balance	$ 169,017	$ 68,818
Loans held-for-investment	$ 168,445	$ 68,818
Risk Rating 4 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans | loan	0	0
Unpaid principal balance	$ 0	$ 0
Loans held-for-investment	$ 0	$ 0
Risk Rating 5 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans | loan	0	0
Unpaid principal balance	$ 0	$ 0
Loans held-for-investment	$ 0	$ 0

Schedule of Available-for-sale

Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Abstract]
Face value	$ 12,798	$ 12,798
Gross unrealized gains	32	0
Gross unrealized losses	0	0
Available-for-sale securities, at fair value	12,830	12,798
Available-for-sale securities pledged as collateral for borrowings	$ 12,800	$ 12,800

Held-to-Maturity Securities (De

Held-to-Maturity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]
Held-to-Maturity Securities, Face Value	$ 30,526	$ 42,169
Held-to-Maturity Securities, Unamortized Premium (Discount)	0	0
Held-to-maturity securities	30,526	42,169
Held-to-maturity securities pledged as collateral for borrowings	$ 30,500	$ 42,200

Schedule of Total Cash, Cash Eq

Schedule of Total Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash collateral for repurchase agreements and securities activity	$ 5,300	$ 3,000
Cash and cash equivalents	148,228	107,765
Restricted cash	5,320	2,953
Cash, cash equivalents and restricted cash	$ 153,548	$ 110,718	$ 144,722	$ 56,279

Accrued Interest Receivable (De

Accrued Interest Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivable	$ 8,188	$ 7,105
Loans Held-for-Investment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivable	8,009	6,880
Available-for-sale Securities [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivable	51	51
Held-to-maturity Securities [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivable	$ 128	$ 174

Fair Value, Measurement Inputs,

Fair Value, Measurement Inputs, Disclosure (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	$ 12,830	$ 12,798
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	12,830	12,798
Total assets	12,830	12,798
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0	0
Total assets	0	0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	12,830	12,798
Total assets	12,830	12,798
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0	0
Total assets	$ 0	$ 0

Fair Value of Financial Instrum

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Repurchase agreements	$ 1,281,255	$ 1,521,608
Maturity Over One Year [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Repurchase agreements	$ 601,643	$ 1,465,062

Fair Value by Balance Sheet Gro

Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Loans held-for-investment	$ 2,708,338	$ 2,304,266
Loans held-for-investment, at fair value	2,739,079	2,322,259
Available-for-sale securities, at fair value	12,830	12,798
Held-to-maturity securities	30,526	42,169
Held-to-maturity securities, at fair value	30,929	42,797
Cash and cash equivalents	148,228	107,765
Restricted cash	5,320	2,953
Repurchase agreements	1,281,255	1,521,608
Securitized debt obligations	653,184	0
Securitized debt obligations, at fair value	659,621	0
Convertible senior notes	140,124	121,314
Convertible senior notes, at fair value	$ 148,754	$ 125,750

Repurchase Agreements (Details)

Repurchase Agreements (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Disclosure of Repurchase Agreements [Abstract]
Repurchase agreements	$ 1,281,255	$ 1,521,608
Weighted average borrowing rate	4.36%	3.78%
Weighted average remaining maturity	1 year 2 months 12 days	1 year 9 months 18 days

Schedule of Repurchase Agreemen

Schedule of Repurchase Agreements by Term, Short or Long (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	$ 1,281,255	$ 1,521,608
Maturity up to One Year [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	679,612	56,546
Maturity Over One Year [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	$ 601,643	$ 1,465,062

Schedule of Repurchase Agreem_2

Schedule of Repurchase Agreements by Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	$ 1,281,255	$ 1,521,608
Weighted average borrowing rate	4.36%	3.78%
Loans Held-for-Investment [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	$ 1,252,993	$ 1,487,094
Weighted average borrowing rate	4.36%	3.78%
Commercial Mortgage Backed Securities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	$ 28,262	$ 34,514
Weighted average borrowing rate	4.58%	3.77%
Maturity up to 30 days [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	$ 0	$ 22,032
Maturity up to 30 days [Member] | Loans Held-for-Investment [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	0	22,032
Maturity up to 30 days [Member] | Commercial Mortgage Backed Securities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	0	0
Maturity 30 to 59 Days [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	28,262	34,514
Maturity 30 to 59 Days [Member] | Loans Held-for-Investment [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	0	0
Maturity 30 to 59 Days [Member] | Commercial Mortgage Backed Securities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	28,262	34,514
Maturity 60 to 89 Days [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	0	0
Maturity 60 to 89 Days [Member] | Loans Held-for-Investment [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	0	0
Maturity 60 to 89 Days [Member] | Commercial Mortgage Backed Securities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	0	0
Maturity 90 to 119 Days [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	0	0
Maturity 90 to 119 Days [Member] | Loans Held-for-Investment [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	0	0
Maturity 90 to 119 Days [Member] | Commercial Mortgage Backed Securities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	0	0
Maturity 120 to 364 days [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	651,350	0
Maturity 120 to 364 days [Member] | Loans Held-for-Investment [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	651,350	0
Maturity 120 to 364 days [Member] | Commercial Mortgage Backed Securities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	0	0
Maturity Over One Year [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	601,643	1,465,062
Maturity Over One Year [Member] | Loans Held-for-Investment [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	601,643	1,465,062
Maturity Over One Year [Member] | Commercial Mortgage Backed Securities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	$ 0	$ 0

Schedule of Underlying Assets o

Schedule of Underlying Assets of Repurchase Agreements when Amount of Repurchase Agreements Exceeds 10 Percent of Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets Sold under Agreements to Repurchase [Line Items]
Assets pledged or restricted as collateral for repurchase agreements	$ 1,785,068	$ 2,257,581
Loans Held-for-Investment [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Assets pledged or restricted as collateral for repurchase agreements	1,738,790	2,202,049
Available-for-sale Securities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Assets pledged or restricted as collateral for repurchase agreements	12,830	12,798
Held-to-maturity Securities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Assets pledged or restricted as collateral for repurchase agreements	30,526	42,169
Restricted Cash [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Assets pledged or restricted as collateral for repurchase agreements	$ 2,922	$ 565

Schedule of Repurchase Agreem_3

Schedule of Repurchase Agreement Counterparties with Whom Repurchase Agreements Exceed 10 Percent of Stockholders' Equity (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018USD ($)	Dec. 31, 2017USD ($)
Repurchase Agreement Counterparty [Line Items]
Repurchase agreements	$ 1,281,255	$ 1,521,608
Net counterparty exposure	$ 506,778	$ 739,991
Weighted average years to maturity	1 year 2 months 12 days	1 year 9 months 18 days
Repurchase Agreement Counterparty, Morgan Stanley Bank [Member]
Repurchase Agreement Counterparty [Line Items]
Repurchase agreements	$ 467,381	$ 425,539
Net counterparty exposure	$ 201,378	$ 250,543
Percent of equity	24.00%	30.00%
Weighted average years to maturity	1 year 9 months	2 years 5 months 26 days
Repurchase Agreement Counterparty, JPMorgan Chase Bank [Member]
Repurchase Agreement Counterparty [Line Items]
Repurchase agreements	$ 403,347	$ 285,457
Net counterparty exposure	$ 143,192	$ 215,068
Percent of equity	17.00%	26.00%
Weighted average years to maturity	21 days	1 year 3 months 25 days
Repurchase Agreement Counterparty, Goldman Sachs Bank [Member]
Repurchase Agreement Counterparty [Line Items]
Repurchase agreements	$ 195,937	$ 252,734
Net counterparty exposure	$ 71,879	$ 86,091
Percent of equity	9.00%	10.00%
Weighted average years to maturity	17 days	1 year 3 months 29 days
Repurchase Agreement Counterparty, Wells Fargo Bank [Member]
Repurchase Agreement Counterparty [Line Items]
Repurchase agreements	$ 80,328	$ 424,882
Net counterparty exposure	$ 48,777	$ 128,644
Percent of equity	6.00%	16.00%
Weighted average years to maturity	22 days	1 year 5 months 26 days
Repurchase Agreement Counterparty, All Other Counterparties [Member]
Repurchase Agreement Counterparty [Line Items]
Repurchase agreements	$ 134,262	$ 132,996
Net counterparty exposure	$ 41,552	$ 59,645
Percent of equity	5.00%	7.00%
Weighted average years to maturity	1 year 9 months	2 years 29 days
Number of repurchase agreement counterparties with whom amount at risk is less than 10 percent of equity	1	1

Securitized Debt Obligations (D

Securitized Debt Obligations (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Securitized Debt Obligations [Abstract]
Securitized debt obligations	$ 653,184	$ 0
Weighted average interest rate of securitized debt obligations outstanding	3.35%
Weighted average remaining maturity of securitized debt obligations outstanding	2 years

Convertible Senior Notes (Detai

Convertible Senior Notes (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018USD ($)	Dec. 31, 2017USD ($)
Debt Instrument, Redemption [Line Items]
Proceeds from convertible senior notes		$ 139,500
Convertible senior notes conversion ratio	0.0500548
Convertible senior notes	$ 140,124	$ 121,314
Convertible Debt [Member]
Debt Instrument, Redemption [Line Items]
Convertible senior notes interest rate per annum	5.625%
Convertible Debt [Member] | Private Placement [Member]
Debt Instrument, Redemption [Line Items]
Convertible senior notes aggregate principal amount	$ 125,000
Convertible Debt [Member] | Over-Allotment Option [Member]
Debt Instrument, Redemption [Line Items]
Convertible senior notes aggregate principal amount	$ 18,800

Commitments and Contingencies M

Commitments and Contingencies Management Agreement (Details)	9 Months Ended
	Sep. 30, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
Percent per annum of equity used to calculate management fees	1.50%
Incentive fee calculation, core earnings multiplication factor	20.00%
Incentive fee calculation, rolling period	12 months
Incentive fee calculation, equity multiplication factor	8.00%
Incentive fee calculation, period incentive fee paid	9 months
Incentive fee, rolling period for threshold	3 years
Incentive fee, threshold amount of core earnings	$ 0
Management agreement, renewal term	1 year
Management agreement, termination fee factor	3
Management agreement, termination fee period	24 months

Commitments and Contingencies U

Commitments and Contingencies Unfunded Commitments (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Unfunded commitments	$ 441,538	$ 339,203

Preferred Stock (Details)

Preferred Stock (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Class of Stock [Line Items]
Preferred stock dividend rate			10.00%
Preferred stock liquidation preference (in usd per share)	$ 1,000		$ 1,000
Period after which the company may redeem preferred stock			5 years
Preferred stock, redemption price per share (in usd per share)	$ 1,000		$ 1,000
Period after which the holder may redeem preferred stock			6 years
Preferred dividends declared	$ 25,000	$ 25,556	$ 75,000	$ 25,556
Preferred Stock [Member]
Class of Stock [Line Items]
Number of shares issued in exchange for acquisition of TH Commercial Holdings LLC (in shares)					1,000

Stockholders' Equity Common Sto

Stockholders' Equity Common Stock Rollforward (Details) - USD ($) $ / shares in Units, $ in Thousands	Nov. 01, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Jun. 28, 2017	Dec. 31, 2016
Class of Stock [Line Items]
Common stock issued during period (in shares)			43,071,000
Price per share of common stock issued during the period (in usd per share)					$ 19.50
Gross proceeds from issuance of common stock				$ 195,000
Proceeds from issuance of common stock, net of offering costs		$ 0	$ 181,875
Issuance costs incurred in common stock offering				$ 13,100
Number of shares of the company's common stock distributed by Two Harbors Investment Corp. to its stockholders via special dividend (in shares)	33,071,000
Increase (Decrease) in Common Stock Outstanding [Roll Forward]
Common shares outstanding at beginning of period (in shares)		43,235,103	0	0
Common stock issued during period (in shares)			43,071,000
Restricted stock issued during period (in shares)		221,131	164,103
Common shares outstanding at end of period (in shares)		43,456,234	43,235,103	43,235,103
Number of nonvested restricted common shares outstanding (in shares)		321,134	150,000	150,000		0
Common Stock [Member]
Class of Stock [Line Items]
Number of shares issued in exchange for acquisition of TH Commercial Holdings LLC (in shares)				33,071,000
Increase (Decrease) in Common Stock Outstanding [Roll Forward]
Common shares outstanding at end of period (in shares)		43,456,234
IPO [Member]
Class of Stock [Line Items]
Proceeds from issuance of common stock, net of offering costs				$ 181,900
IPO [Member] | Common Stock [Member]
Class of Stock [Line Items]
Common stock issued during period (in shares)				10,000,000
Increase (Decrease) in Common Stock Outstanding [Roll Forward]
Common stock issued during period (in shares)				10,000,000

Stockholders' Equity Schedule o

Stockholders' Equity Schedule of Common Dividends Declared (Details) - $ / shares	3 Months Ended					9 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Class of Stock [Line Items]
Dividends declared per common share (in usd per share)	$ 0.42				$ 0.32	$ 1.20	$ 0.32
Common Stock [Member]
Class of Stock [Line Items]
Declaration Date	Sep. 20, 2018	Jun. 20, 2018	Mar. 15, 2018	Dec. 18, 2017	Sep. 18, 2017
Record Date	Oct. 2, 2018	Jul. 2, 2018	Mar. 29, 2018	Dec. 29, 2017	Sep. 29, 2017
Payment Date	Oct. 18, 2018	Jul. 18, 2018	Apr. 18, 2018	Jan. 18, 2018	Oct. 18, 2017
Dividends declared per common share (in usd per share)	$ 0.42	$ 0.40	$ 0.38	$ 0.38	$ 0.32

Stockholders' Equity Schedule_2

Stockholders' Equity Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Stockholders' Equity Attributable to Parent [Abstract]
Unrealized gains	$ 32	$ 0
Unrealized losses	0	0
Accumulated other comprehensive income	$ 32	$ 0

Equity Incentive Plan (Details)

Equity Incentive Plan (Details) - $ / shares	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted common shares reserved for issuance under equity incentive plan (in shares)	3,242,306
Number of restricted common shares granted during period under equity incentive plan (in shares)	221,131	164,103
Weighted average grant date fair value of restricted common shares granted during period under equity incentive plan (in usd per share)	$ 17.38	$ 19.50
Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted common shares granted during period under equity incentive plan (in shares)	19,175	14,103
Weighted average grant date fair value of restricted common shares granted during period under equity incentive plan (in usd per share)	$ 17.86	$ 19.47
Key Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted common shares granted during period under equity incentive plan (in shares)	201,956	150,000
Weighted average grant date fair value of restricted common shares granted during period under equity incentive plan (in usd per share)	$ 17.33	$ 19.50
Common stock share price (in usd per share)	$ 19.28
Award vesting period of restricted common shares granted during period under equity incentive plan	3 years

Schedule of Share-based Compens

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of nonvested restricted common shares outstanding at beginning of period (in shares)			150,000	0
Weighted average grant date fair value of nonvested restricted common shares outstanding at beginning of period (in usd per share)			$ 19.50	$ 0
Number of restricted common shares granted during period under equity incentive plan (in shares)			221,131	164,103
Weighted average grant date fair value of restricted common shares granted during period under equity incentive plan (in usd per share)			$ 17.38	$ 19.50
Number of restricted common shares vested during period (in shares)			(49,997)	(14,103)
Weighted average grant date fair value of restricted common shares vested during period (in usd per share)			$ (19.50)	$ (19.47)
Number of restricted common shares forfeited during period (in shares)			0	0
Weighted average grant date fair value of restricted common shares forfeited during period (in usd per share)			$ 0	$ 0
Number of nonvested restricted common shares outstanding at end of period (in shares)	321,134	150,000	321,134	150,000
Weighted average grant date fair value of nonvested restricted common shares outstanding at end of period (in usd per share)	$ 18.04	$ 19.50	$ 18.04	$ 19.50
Equity based compensation	$ 1,000	$ 687	$ 2,800	$ 700

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Federal income tax rate applicable to corporations			21.00%		35.00%
Percentage of REIT taxable income the company currently intends to distribute	100.00%		100.00%
Current federal tax benefit	$ 0	$ (2)	$ (1)	$ (5)
Current state tax provision	0	0	2	2
Total current tax (benefit) provision	0	(2)	1	(3)
Deferred tax benefit	(1)	0	(3)	0
Benefit from income taxes	$ (1)	$ (2)	$ (2)	$ (3)

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings Per Share [Abstract]
Net income attributable to common stockholders - basic	$ 16,540	$ 11,493	$ 46,303	$ 11,662
Interest expense attributable to convertible notes	2,207		6,576	0
Net income attributable to common stockholders - diluted	$ 18,747	$ 11,493	$ 52,879	$ 11,662
Weighted average common shares outstanding (in shares)	43,135,100	43,084,254	43,103,600	43,084,252
Weighted average restricted stock shares (in shares)	321,134	150,000	322,509	150,000
Basic weighted average shares outstanding (in shares)	43,456,234	43,234,254	43,426,109	43,234,252
Effect of dilutive shares issued in an assumed conversion of the convertible senior notes (in shares)	7,195,378	0	7,190,155	0
Diluted weighted average shares outstanding (in shares)	50,651,612	43,234,254	50,616,264	43,234,252
Basic earnings per weighted average common share (in usd per share)	$ 0.38	$ 0.27	$ 1.07	$ 0.27
Diluted earnings per weighted average common share (in usd per share)	$ 0.37	$ 0.27	$ 1.04	$ 0.27

Schedule of Related Party Trans

Schedule of Related Party Transactions, by Related Party (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Related Party Transaction [Line Items]
Percent per annum of equity used to calculate management fees			1.50%
Management fees	$ 3,111	$ 3,130	$ 9,434	$ 6,717
Equity based compensation	1,000	687	$ 2,800	700
Pine River Capital Management L.P. [Member]
Related Party Transaction [Line Items]
Percent per annum of equity used to calculate management fees			1.50%
Management fees	3,100	3,100	$ 9,400	3,200
Direct and allocated costs incurred by manager	$ 1,400	1,076	$ 4,300	$ 1,100
PRCM Advisers LLC [Member]
Related Party Transaction [Line Items]
Percent per annum of equity used to calculate management fees				1.50%
Management fees				$ 3,500
Direct and allocated costs incurred by manager		$ 200		$ 4,400

Subsequent Events Subsequent Ev

Subsequent Events Subsequent Events (Details) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018USD ($)	Dec. 31, 2018	Oct. 24, 2018USD ($)	Oct. 12, 2018USD ($)$ / shares
Subsequent Event [Line Items]
Convertible senior notes conversion ratio	0.0500548
Convertible Debt [Member]
Subsequent Event [Line Items]
Convertible senior notes interest rate per annum	5.625%
Convertible Debt [Member] | Private Placement [Member]
Subsequent Event [Line Items]
Convertible senior notes aggregate principal amount	$ 125,000
Convertible Debt [Member] | Over-Allotment Option [Member]
Subsequent Event [Line Items]
Convertible senior notes aggregate principal amount	$ 18,800
Subsequent Event Type [Member]
Subsequent Event [Line Items]
Convertible senior notes conversion ratio		0.0488496
Convertible senior notes conversion price (in usd per share) | $ / shares				$ 20.47
Subsequent Event Type [Member] | Convertible Debt [Member]
Subsequent Event [Line Items]
Convertible senior notes interest rate per annum				6.375%
Subsequent Event Type [Member] | Convertible Debt [Member] | Private Placement [Member]
Subsequent Event [Line Items]
Convertible senior notes aggregate principal amount				$ 125,000
Subsequent Event Type [Member] | Convertible Debt [Member] | Over-Allotment Option [Member]
Subsequent Event [Line Items]
Convertible senior notes aggregate principal amount			$ 6,600	$ 18,750