Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 28, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | RESOURCE AMERICA, INC. | |
Entity Central Index Key | 83,402 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 20,840,814 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash | $ 18,348 | $ 24,132 |
Restricted cash | 1,044 | 937 |
Receivables | 3,082 | 3,228 |
Loans and receivables from managed entities and related parties, net | 22,427 | 26,667 |
Investments in real estate, net | 15,752 | 16,022 |
Investment securities, at fair value | 44,758 | 45,672 |
Investments in unconsolidated loan manager | 31,512 | 32,616 |
Investments in unconsolidated entities | 21,168 | 17,553 |
Property and equipment, net | 5,061 | 5,371 |
Deferred tax assets, net | 27,653 | 29,264 |
Other assets | 13,781 | 9,733 |
Total assets | 204,586 | 211,195 |
Liabilities: | ||
Accrued expenses and other liabilities | 22,502 | 27,184 |
Payables to managed entities and related parties | 2,811 | 3,145 |
Borrowings | 20,597 | 20,747 |
Total liabilities | $ 45,910 | $ 51,076 |
Commitments and contingencies | ||
Equity: | ||
Preferred stock, $1.00 par value, 1,000,000 shares authorized; none outstanding | $ 0 | $ 0 |
Common stock, $.01 par value, 49,000,000 shares authorized; 35,866,472 and 34,973,987 shares issued (including nonvested restricted stock of 1,778,341 and 1,095,238), respectively | 348 | 339 |
Additional paid-in capital | 312,432 | 311,491 |
Accumulated deficit | (28,783) | (30,676) |
Treasury stock, at cost; 15,029,534 and 14,460,024 shares, respectively | (143,204) | (139,858) |
Accumulated other comprehensive loss | (4,853) | (3,533) |
Total stockholders’ equity | 135,940 | 137,763 |
Noncontrolling interests | 22,736 | 22,356 |
Total equity | 158,676 | 160,119 |
Total liabilities and equity | $ 204,586 | $ 211,195 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Par value (in usd per share) | $ 1 | $ 1 |
Shares authorized (in shares) | 1,000,000 | 1,000,000 |
Shares outstanding (in shares) | 0 | 0 |
Par value (in usd per share) | $ 0.01 | $ 0.01 |
Shares authorized (in shares) | 49,000,000 | 49,000,000 |
Shares issued (in shares) | 35,866,472 | 34,973,987 |
Nonvested restricted stock (in shares) | 1,778,341 | 1,095,238 |
Treasury stock, at cost | 15,029,534 | 14,460,024 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
REVENUES: | ||
Real estate | $ 19,163 | $ 16,966 |
Financial fund management | 6,729 | 6,875 |
Commercial finance | 76 | (2) |
Total revenues | 25,968 | 23,839 |
COSTS AND EXPENSES: | ||
Real estate | 11,018 | 11,499 |
Financial fund management | 3,680 | 3,063 |
Commercial finance | 392 | 579 |
General and administrative | 4,883 | 3,297 |
Provision for credit losses | 109 | 402 |
Depreciation and amortization | 504 | 457 |
Total expenses | 20,586 | 19,297 |
OPERATING INCOME (LOSS) | 5,382 | 4,542 |
OTHER INCOME (EXPENSE): | ||
Gain (loss) on sale of investment securities, net | 498 | 0 |
Impairment on investments in available for sale securities | (98) | 0 |
Interest expense | (440) | (421) |
Other income (expense), net | 507 | 314 |
Total other income (expense) | 467 | (107) |
Income (loss) from continuing operations before taxes | 5,849 | 4,435 |
Income tax provision (benefit) | 2,446 | 1,244 |
Net income (loss) | 3,403 | 3,191 |
Net (income) loss attributable to noncontrolling interests | (366) | (1,657) |
Net income (loss) attributable to common shareholders | $ 3,037 | $ 1,534 |
Basic earnings (loss) per share: | ||
Net income (in dollars per share) | $ 0.15 | $ 0.07 |
Weighted average shares outstanding (in shares) | 20,611 | 22,965 |
Diluted earnings (loss) per share: | ||
Net income (loss) (in dollars per share) | $ 0.15 | $ 0.07 |
Weighted average shares outstanding (in shares) | 20,889 | 23,239 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 3,403 | $ 3,191 |
Unrealized gains (losses) on investment securities available-for-sale, net of tax of $(849) and $(498) | (1,390) | (656) |
Less: reclassification for (gains) losses realized, net of tax of $0 and $(172) | 0 | (285) |
Total | (1,390) | (941) |
Minimum pension liability adjustments, net of tax of $0 and $9 | 0 | (9) |
Less: reclassification for (gains) losses realized, net of tax of $51 and $50 | 70 | 56 |
Total | 70 | 47 |
Foreign currency translation adjustments, net of tax of $2 and $2 | 0 | 2 |
Subtotal - other comprehensive income (loss) | (1,320) | (892) |
Comprehensive income (loss) attributable to common shareholders | $ 2,083 | $ 2,299 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized gains (losses) on investment securities available-for-sale, net of tax of $(849) and $(498) | $ (849) | $ (498) |
Less: reclassification for (gains) losses realized, net of tax of $0 and $(172) | 0 | (172) |
Minimum pension liability adjustments, net of tax of $0 and $9 | 0 | 9 |
Less: reclassification for (gains) losses realized, net of tax of $51 and $50 | 51 | 50 |
Foreign currency translation adjustments, net of tax of $2 and $2 | $ 2 | $ 2 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands | Total | Total Stockholders’ Equity | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Treasury Stock | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Balance (in shares) at Dec. 31, 2015 | 20,513,963 | |||||||
Balance, January 1, 2016 at Dec. 31, 2015 | $ 160,119 | $ 137,763 | $ 339 | $ 311,491 | $ (30,676) | $ (139,858) | $ (3,533) | $ 22,356 |
Increase (Decrease) Equity [Roll Forward] | ||||||||
Net income (loss) | 3,403 | 3,037 | 3,037 | 366 | ||||
Treasury shares issued (in shares) | 31,600 | |||||||
Treasury shares issued | 141 | 141 | (161) | 302 | ||||
Stock-based compensation (in shares) | 892,485 | |||||||
Stock-based compensation | 1,111 | 1,111 | $ 9 | 1,102 | 0 | |||
Repurchase of common stock (in shares) | (601,110) | |||||||
Repurchases of common stock | (3,648) | (3,648) | (3,648) | |||||
Dividends declared on common stock | (1,144) | (1,144) | (1,144) | |||||
Other | 14 | 14 | ||||||
Other comprehensive income (loss) | (1,320) | (1,320) | (1,320) | |||||
Balance (in shares) at Mar. 31, 2016 | 20,836,938 | |||||||
Balance, March 31, 2016 at Mar. 31, 2016 | $ 158,676 | $ 135,940 | $ 348 | $ 312,432 | $ (28,783) | $ (143,204) | $ (4,853) | $ 22,736 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 3,403 | $ 3,191 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 524 | 475 |
Provision for credit losses | 109 | 402 |
Unrealized (gain) loss on trading securities | 0 | (776) |
Equity in (earnings) losses of unconsolidated entities | (3,133) | (2,350) |
Distributions from unconsolidated entities | 5,029 | 2,151 |
(Gain) loss on sales of leases and loans | (18) | 0 |
Impairment on investments in available for sale securities | 98 | 0 |
(Gain) loss on sales of investment securities, net | (498) | 0 |
Deferred income tax provision (benefit) | 2,409 | 1,339 |
Equity-based compensation issued | 951 | 744 |
(Gain) loss on trading securities | (714) | (595) |
Trading securities purchases and sales, net | (1,606) | (8,847) |
Changes in operating assets and liabilities | (3,840) | (2,100) |
Net cash provided by (used in) operating activities | 2,714 | (6,366) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (48) | (997) |
Investments in real estate and unconsolidated real estate entities | (3,540) | (21) |
Principal payments on leases and loans | 18 | 3 |
Purchase of loans and investments | (732) | (819) |
Proceeds from sale of loans and investments | 666 | 454 |
Net cash provided by (used in) investing activities | (3,636) | (1,380) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Increase (decrease) in borrowings | 0 | 881 |
Principal payments on borrowings | (149) | (120) |
Dividends paid | (1,132) | (1,312) |
Proceeds from issuance of common stock | 0 | 1 |
Repurchases of common stock | (3,474) | (2,108) |
(Increase) decrease in restricted cash | (107) | (74) |
Contributions from non-controlling interests - Pelium | 0 | 4,052 |
Net cash provided by (used in) financing activities | (4,862) | 1,320 |
Increase (decrease) in cash | (5,784) | (6,426) |
Cash, beginning of year | 24,132 | 33,947 |
Cash, end of period | $ 18,348 | $ 27,521 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NOTE 1 - NATURE OF OPERATIONS Resource America, Inc. (the "Company") (NASDAQ: REXI) is a specialized asset management company that uses industry specific expertise to evaluate, originate, service and manage investment opportunities through its real estate, financial fund management, and commercial finance operating segments. As a specialized asset manager, the Company seeks to develop investment funds for outside investors for which the Company provides asset management services, typically under long-term management and operating arrangements either through a contract with, or as the manager or general partner of, the sponsored fund. The Company limits its investment funds to investment areas where it owns existing operating companies or has specific expertise. The consolidated financial statements and the information and tables contained in the notes to the consolidated financial statements are unaudited. However, in the opinion of management, these interim financial statements include all adjustments necessary to fairly present the results of the interim periods presented. The results of operations for the three months ended March 31, 2016 may not necessarily be indicative of the results of operations for the full year ending December 31, 2016 . The Company conducts its real estate operations primarily through the following subsidiaries: • Resource Real Estate Advisor, LLC manages the activities of Resource Real Estate Opportunity REIT I ("Opportunity REIT I") a public non-traded REIT, which completed its initial public offering in December 2013 having raised a total of $635.0 million . As of March 31, 2016 , the Opportunity REIT I manages a portfolio consisting of value-add residential multifamily rental properties and loans valued at $1.0 billion ; • Resource Real Estate Advisor II, LLC manages the activities of Resource Real Estate Opportunity REIT II ("Opportunity REIT II"), a public non-traded REIT, which completed its initial public offering in February 6, 2016 having raised a total of $556.0 million . This fund focuses on acquiring a portfolio consisting of value-add residential multifamily rental properties and loans. As of March 31, 2016 , Opportunity REIT II manages a portfolio consisting of value-add residential multifamily rental properties and loans valued at $634.9 million ; • Resource Innovation Office Advisor, LLC manages Resource Innovation Office REIT, Inc. ("Innovation Office REIT"), a public non-traded REIT, filed an amended initial public offering of up to $1.0 billion in its common stock at a maximum price of $10.27 for Class A shares and $10.00 for Class T shares. A post-effective amendment related to securities offered by this fund was declared effective by the SEC on March 7, 2016. The Innovation Office REIT will focus on acquiring office properties and real estate debt secured by office properties; • Resource Capital Partners, Inc. acts as the general partner manager and managing member of, and provides asset management services to, the Company's five real estate investment partnerships and three tenant-in-common ("TIC") programs; • Resource Real Estate Management, Inc. (“Resource Residential”) provides property management services to the Company's multifamily apartment portfolio; • Resource Real Estate Funding, Inc., on behalf of Resource Capital Corp., ("RSO") (NYSE:RSO), a diversified real estate finance company that conducts its business so as to qualify as a real estate investment trust ("REIT"), manages a commercial real estate debt portfolio comprised principally of first priority interest in commercial mortgage loans ("A notes"), whole mortgage loans, mortgage participations, subordinated interests in commercial mortgage loans ("B notes"), mezzanine debt and related commercial real estate securities. In addition, it manages a separate portfolio of discounted real estate and real estate loans; • Pearlmark Real Estate, LLC ("Pearlmark"), a joint venture in which the Company owns a 50% interest, manages institutional real estate investments. Pearlmark is in the process of fundraising for its first real estate investment fund and another managed entity that is in the formation stage; and • Resource Real Estate, Inc. manages owned assets and ventures, which are collectively referred to as the “legacy portfolio.” The Company conducts its financial fund management operations primarily through the following operating entities: • CVC Credit Partners ("CVC Credit Partners"), a joint venture between the Company and an unrelated third-party, finances, structures and manages investments in bank loans, high yield bonds and equity investments through collateralized loan obligation issuers ("CLOs"), managed accounts and three credit opportunity funds; • Resource Capital Manager, Inc. ("RCM"), an indirect wholly-owned subsidiary, provides investment management and administrative services to RSO under a management agreement between the Company, RCM and RSO ("the RCM Agreement"); • Resource Capital Markets, Inc. ("Resource Capital Markets"), through the Company's registered broker-dealer subsidiary, Resource Securities, Inc., acts as an agent in the primary and secondary markets for structured finance securities and transactions; • Northport Capital, LLC ("Northport"), provides middle market loan origination, management and monitoring services to RSO under the RCM Agreement; • Trapeza Capital Management, LLC ("TCM"), a joint venture between the Company and an unrelated third-party, manages investments in trust preferred securities and senior debt securities of banks, bank holding companies, insurance companies and other financial companies through collateralized debt obligation ("CDO") issuers. TCM, together with the Trapeza CDO issuers, are collectively referred to as Trapeza; • Ischus Capital Management, LLC ("Ischus") manages legacy CDOs it sponsored, which hold investments in asset-backed securities ("ABS") including residential mortgage-backed securities ("RMBS") and commercial mortgage-backed securities, ("CMBS"); • Resource Financial Institutions Group, Inc. (“RFIG”), serves as the general partner for seven company-sponsored affiliated partnerships which invest in financial institutions; and • Pelium Capital Management, LLC, serves as the manager for Pelium Capital Partners, LP ("Pelium"), a hedge fund with primary holdings in CDO/CLO note and equity positions, CMBS and warehouse facilities. The Company conducts its commercial finance operations through LEAF Commercial Capital, Inc. (“LEAF”) and LEAF Financial Corporation (“LEAF Financial”). As of March 31, 2016 , LEAF Financial sponsored and manages one publicly-held investment partnership consisting of a portfolio of leases and loans for which LEAF acts as the sub-servicer. LEAF Financial liquidated two other commercial finance investment partnerships during 2014 and a third investment partnership in July 2015. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements reflect the Company's accounts and the accounts of the Company's majority-owned and/or controlled subsidiaries. The Company follows the provisions of Accounting Standards Codification (“ASC”) Topic 810, as amended by Accounting Standards Update (“ASU”) 2015-2, Amendments to the Consolidation Analysis . The determination of whether or not to consolidate entities under accounting principles generally accepted in the United States (“U.S. GAAP”) requires significant judgment. To make these judgments, management performs an entity-by-entity analysis with consideration of i) whether the Company has a variable interest in the entity, ii) whether the entity is a variable interest entity (“VIE”), and iii) whether the Company is the primary beneficiary of the VIE. When determining whether the Company has a variable interest in entities it evaluates for consolidation, the Company considers interests in the entities and fees it receives to act as a decision maker or service provider to the entity being evaluated. If the Company determines that it does not have a variable interest in an entity, no further consolidation analysis is performed as the Company would not be required to consolidate the entity. Fees received by the Company are not variable interests if (i) the fees are compensation for services provided and are commensurate with the level of effort required to provide those services, (ii) the service arrangement includes only terms, conditions, or amounts that are customarily present in arrangements for similar services negotiated at arm’s length and (iii) the Company's other economic interests in the VIE held directly and indirectly through its related parties, as well as economic interests held by related parties under common control, where applicable, would not absorb more than an insignificant amount of the entity’s losses or receive more than an insignificant amount of the entity’s benefits. If fees paid to the Company were determined to be a variable interest, it could result in the Company being the primary beneficiary of and thus consolidating the entity being evaluated. Evaluation of these criteria requires judgment. For those entities in which it has a variable interest, the Company performs an analysis to first determine whether the entity is a VIE. This determination includes considering whether the entity’s equity investment at risk is sufficient, whether the voting rights of an investor are not proportional to its obligation to absorb the income or loss of the entity and substantially all of the entity’s activities either involve or are conducted on behalf of that investor and its related parties, and whether the entity’s at risk equity holders have the characteristics of a controlling financial interest. The Company is the general partner/manager of and has a variable interest in certain limited partnerships and similar entities. One of the factors that the Company considers in evaluating whether these entities are VIEs is whether a simple majority (or lower threshold) of limited partners with equity at risk are able to exercise substantive kick-out rights. Kick-out rights are generally defined as the ability to remove the general partner/manager or to dissolve the entity without cause. Generally, if the limited partners with equity at risk are not able to exercise substantive kick-out rights, the entity is a VIE unless the limited partners have been granted substantive participating rights. The Company is also the manager of and has a variable interest in certain entities other than limited partnerships. One of the factors that the Company considers in evaluating whether these entities are VIEs is whether the investors have power through voting rights or similar rights (such as those of a common shareholder in a corporation); and if not, whether a single equity holder has the unilateral ability to exercise substantive kick-out rights. If investors do not have power through voting rights or similar rights or a single equity holder does not have the unilateral ability to exercise substantive kick-out rights, then the entity is a VIE. These analyses require judgment. A VIE must be consolidated by its primary beneficiary. The primary beneficiary of a VIE is generally defined as the party who has a controlling financial interest in the VIE. The Company would be deemed to have a controlling financial interest in a VIE if it and its related parties under common control as a group, where applicable, have (i) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. For purposes of evaluating (ii) above, fees paid to the Company are excluded if the fees are compensation for services provided commensurate with the level of effort required to be performed and the arrangement includes only customary terms, conditions or amounts present in arrangements for similar services negotiated at arm’s length. This analysis requires judgment. All intercompany transactions and balances have been eliminated in the Company's consolidated financial statements. Use of Estimates Preparation of the Company's consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and costs and expenses during the reporting period. The Company makes estimates of its allowance for credit losses, the valuation allowance against its deferred tax assets, discounts and collectability of management fees, the valuation of stock-based compensation, and in determining whether a decrease in the fair value of an investment is an other-than-temporary impairment. The real estate and financial fund management segments make assumptions in determining the fair value of investments in investment securities. Actual results could differ from these estimates. Financing Receivables - Receivables from Managed Entities The Company performs a review of the collectability of its receivables from managed entities on a quarterly basis, by analyzing future cash flows by managed entity. Management fees are recorded net of a discount to the extent that they are anticipated to be collected in excess of one year. With respect to the receivables from its commercial finance investment partnerships, this takes into consideration several assumptions by management, primarily concerning estimates of future bad debts and recoveries. For receivables from the real estate investment entities, the Company estimates the cash flows through the sale of the underlying properties based on projected net operating income as a multiple of published capitalization rates, as reduced by the underlying mortgage balances and priority distributions due to the investors. Investment Securities The Company’s investment securities available-for-sale, including investments in the CLO and CDO issuers it sponsored, are carried at fair value. The fair value of the CLO and CDO investments is based primarily on internally-generated expected cash flow models that require significant management judgment and estimates due to the lack of market activity and the use of unobservable pricing inputs. Investments in affiliated entities, including its holdings in The Bancorp, Inc. (NASDAQ: TBBK), RSO, Resource Credit Income Fund ("CIF") (NASDAQ: RCIIX), and Resource Real Estate Diversified Income Fund ("DIF") (NASDAQ: RREDX), all of which are affiliated entities, are valued at the closing prices of the respective publicly-traded stocks. The Company sold its investment in Resource Real Estate Global Property Securities ("RREGPS"), a Company-sponsored Australian investment fund, in July 2015. The cumulative net unrealized gains (losses) on these investment securities, net of tax, is reported through accumulated other comprehensive income (loss). Realized gains (and losses) on the sale of investments are determined on the trade date on the basis of specific identification and are included in net operating results. Securities that are held principally for resale in the near term (trading securities) are recorded at fair value with changes in fair value recorded in earnings. Hedging - Foreign Currency Risk and Forward Contracts The Company has an exposure to foreign currency risk with respect to advances made to CVC Credit Partners that are repayable in Euros (see Note 15). To mitigate the foreign currency risk, the Company has entered into foreign currency forward contracts (see Note 18). Forward contracts represent future commitments to deliver a quantity of a currency at a predetermined future date and rate to manage currency risk. Financial derivatives are initially recognized in the balance sheet at fair value and subsequently measured at their fair value on each balance sheet date. The forward contracts are not designated as qualifying cash flow hedges and, accordingly, any changes in fair value of the contracts are recognized in the Company’s consolidated statements of operations. Similarly, any changes in the fair value of the Euro-based loan receivable are recognized in the consolidated statements of operations. Reclassifications Certain reclassifications have been made to the 2015 consolidated financial statements to conform to the 2016 presentation. Recent Accounting Standards Newly-Adopted Accounting Principle The Company’s adoption of the following standards during the three months ended March 31, 2016 did not have a material impact on its consolidated financial position, results of operations or cash flows: In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs . The update requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. Debt disclosures will include the face amount of the debt liability and the effective interest rate. The update requires retrospective application and represents a change in accounting principle. The guidance was effective for the Company as of January 1, 2016. In January 2015, the FASB issued ASU No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items , which eliminates from GAAP the concept of an extraordinary item. As a result, an entity will no longer be required to segregate extraordinary items from the results of ordinary operations, to separately present an extraordinary item on its income statement, net of tax, after income from continuing operations or to disclose income taxes and earnings per share data applicable to an extraordinary item. However, presentation and disclosure guidance for items that are unusual in nature and occur infrequently will be retained. This guidance was effective for the Company as of January 1, 2016. Accounting Standards Issued But Not Yet Effective In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which will replace most of the existing revenue recognition guidance in GAAP. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. The ASU requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The ASU will be effective for the Company beginning January 1, 2018, including interim periods in 2018, and allows for both retrospective and prospective methods of adoption. The Company is in the process of determining the method of adoption and assessing the impact of this ASU on its consolidated financial statements. In June 2014, the FASB issued ASU No. 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period . ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. This guidance, effective for the Company beginning January 1, 2017, is not expected to have a material impact on the Company's consolidated financial position, results of operations or cash flows. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of ASU 2016-02. In March 2016, the FASB issued ASU 2016-07, Investments - Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting , which eliminates the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. ASU 2016-07 is effective for the Company January 1, 2017 and interim periods within that reporting period. The adoption of ASU 2016-07 is not expected to have a material effect on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The goal of this update is to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This update becomes effective beginning January 1, 2017, with early adoption permitted. The Company is currently evaluating the impact of ASU 2016-09. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | NOTE 3 - SUPPLEMENTAL CASH FLOW INFORMATION Supplemental disclosure of cash flow information for the Company is as follows (in thousands, except per share data): Three Months Ended March 31, 2016 2015 Cash (paid) received: Interest $ (401 ) $ (399 ) Income tax payments (1,728 ) (65 ) Refund of income taxes — 44 Dividends declared per common share $ 0.06 $ 0.05 Non-cash activities: Repurchase of common stock from employees in exchange for the payment of income taxes $ 174 $ 165 Issuance of treasury stock for the Company's investment savings 401(k) plan 302 150 |
FINANCING RECEIVABLES
FINANCING RECEIVABLES | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
FINANCING RECEIVABLES | NOTE 4 - FINANCING RECEIVABLES The following table is the aging of the Company’s financing receivables (presented gross of allowance for credit losses) as of March 31, 2016 (in thousands): Current 30-89 Days Past Due 90-180 Days Past Due Greater than 181 Days Total Past Due Total Loans and receivables from managed entities and related parties: Commercial finance investment entities $ — $ 18 $ 60 $ 966 $ 1,044 $ 1,044 Real estate investment entities 3,832 330 755 9,397 10,482 14,314 Financial fund management entities 1,191 31 28 21 80 1,271 RSO 2,888 — — — — 2,888 Other 2,910 — — — — 2,910 10,821 379 843 10,384 11,606 22,427 Rent receivables - real estate 192 1 1 5 7 199 Total financing receivables $ 11,013 $ 380 $ 844 $ 10,389 $ 11,613 $ 22,626 The following table is the aging of the Company’s financing receivables (presented gross of allowance for credit losses) as of December 31, 2015 (in thousands): Current 30-89 Days Past Due 90-180 Days Past Due Greater than 181 Days Total Past Due Total Loans and receivables from managed entities and related parties: Commercial finance investment entities $ — $ 16 $ 73 $ 1,200 $ 1,289 $ 1,289 Real estate investment entities 7,909 392 890 11,955 13,237 21,146 Financial fund management entities 1,582 — — — — 1,582 RSO 2,331 — — — — 2,331 Other 319 — — — — 319 12,141 408 963 13,155 14,526 26,667 Rent receivables - real estate 192 8 2 4 14 206 Total financing receivables $ 12,333 $ 416 $ 965 $ 13,159 $ 14,540 $ 26,873 The following table summarizes the activity in the allowance for credit losses for all financing receivables (in thousands): Receivables from Managed Entities Leases and Loans Rent Receivables Total Three Months Ended March 31, 2016: Balance, beginning of period $ — $ 130 $ 5 $ 135 Provision for (reversal) of credit losses — 105 4 109 (Charge-offs) recoveries — (242 ) — (242 ) Recoveries — 27 — 27 Balance, end of period $ — $ 20 $ 9 $ 29 Ending balance, individually evaluated for impairment $ — $ 20 $ 9 $ 29 Ending balance, collectively evaluated for impairment — — — — Balance, end of period $ — $ 20 $ 9 $ 29 Three Months Ended March 31, 2015 Balance, beginning of period $ 16,990 $ — $ — $ 16,990 Provision for (reversal) of credit losses 369 32 1 402 (Charge-offs) recoveries — (32 ) — (32 ) Balance, end of period $ 17,359 $ — $ 1 $ 17,360 Ending balance, individually evaluated for impairment $ 17,359 $ — $ 1 $ 17,360 Ending balance, collectively evaluated for impairment — — — — Balance, end of period $ 17,359 $ — $ 1 $ 17,360 The Company’s financing receivables (presented exclusive of any allowance for credit losses) relate to the balance in the allowance for credit losses, as follows (in thousands): As of March 31, 2016: Receivables from Rent Total Ending balance, individually evaluated for impairment $ 22,427 $ — $ 22,427 Ending balance, collectively evaluated for impairment — 199 199 Balance, end of period $ 22,427 $ 199 $ 22,626 As of December 31, 2015: Ending balance, individually evaluated for impairment $ 26,667 $ — $ 26,667 Ending balance, collectively evaluated for impairment — 206 206 Balance, end of year $ 26,667 $ 206 $ 26,873 The following table discloses information about the Company’s impaired financing receivables (in thousands): Net Balance Unpaid Balance Specific Allowance Average Investment in Impaired Assets As of March 31, 2016: Financing receivables with a specific valuation allowance: Rent receivables – real estate $ — $ — $ 9 $ — As of December 31, 2015: Financing receivables with a specific valuation allowance: Loans and receivables from managed entities – commercial finance $ — $ — $ — $ 13,788 Rent receivables – real estate — — 5 — The Company had no impaired financing receivables without a specific allowance as of March 31, 2016 and December 31, 2015 . Included in Other Assets in the consolidated balance sheet as of March 31, 2016 and December 31, 2015 is a commercial lease portfolio totaling $687,000 and $1.1 million , respectively, which includes the leases acquired from two of the LEAF investment partnerships upon their liquidation in settlement of balances owed to the Company. As of March 31, 2016 , the portfolio was comprised of 41 leases with an average lease balance of $16,800 and a remaining average lease term of 21 months; the aging of the outstanding lease payments was 92% current and 8% was past due 60 days. As of December 31, 2015 , the portfolio was comprised of 60 leases with an average lease balance of $18,100 and a remaining average lease term of 15 months; the aging of the outstanding lease payments was 80% current, 5% was past due 30 days, and 15% was past due 90 days and over. |
INVESTMENTS IN REAL ESTATE
INVESTMENTS IN REAL ESTATE | 3 Months Ended |
Mar. 31, 2016 | |
Real Estate Investments, Net [Abstract] | |
INVESTMENTS IN REAL ESTATE | NOTE 5 - INVESTMENTS IN REAL ESTATE The Company’s investments in real estate, net, consist of the following (in thousands): March 31, December 31, Properties owned, net of accumulated depreciation of $9,894 and $9,752: Hotel property (Savannah, Georgia) $ 9,456 $ 9,757 Office building (Philadelphia, Pennsylvania) 861 877 10,317 10,634 Partnerships and other investments 5,435 5,388 Total investments in real estate, net $ 15,752 $ 16,022 The Company recorded rental income of $1.2 million for each of the three month periods ended March 31, 2016 and March 31, 2015 . The contractual future minimum rental income on non-cancelable operating leases included in properties owned for each of the five succeeding annual periods ending March 31, and thereafter, are as follows (in thousands): 2017 $ 1,010 2018 1,038 2019 960 2020 689 2021 566 Thereafter 315 Total $ 4,578 |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | NOTE 6 - INVESTMENT SECURITIES Components of investment securities are as follows (in thousands): March 31, December 31, Available-for-sale securities $ 17,706 $ 19,509 Trading securities 1,442 1,451 Trading securities - Pelium 25,610 24,712 Total investment securities, at fair value $ 44,758 $ 45,672 Available-for-sale securities . The following table discloses the pre-tax unrealized gains (losses) relating to the Company’s investments in available-for-sale securities (in thousands): Cost or Amortized Cost Unrealized Gains Unrealized Losses Fair Value As of March 31, 2016: CLO securities $ 7,912 $ 111 $ (229 ) $ 7,794 Equity securities 12,784 (2,872 ) 9,912 Total $ 20,696 $ 111 $ (3,101 ) $ 17,706 As of December 31, 2015: CLO securities $ 7,585 $ 928 $ (66 ) $ 8,447 Equity securities 12,784 12 (1,734 ) 11,062 Total $ 20,369 $ 940 $ (1,800 ) $ 19,509 CLO securities. The CLO securities represent the Company’s retained equity interests in 14 and 15 CLO issuers that CVC Credit Partners has sponsored and manages at March 31, 2016 and December 31, 2015 , respectively ( see Note 7 ). The fair value of these retained interests is impacted by the fair value of the investments held by the respective CLO issuers, which are sensitive to interest rate fluctuations and credit quality determinations. For the three months ended March 31, 2016 , the Company adjusted its assumptions with respect to the fair value calculations of its CLO securities based on a change in market conditions, principally to increase the discount rate to 15% , which resulted in an impairment charge of $98,000 . In 2015, the Company adjusted its assumptions by increasing the constant default rate in year one and two and decreasing the prepayment speed in year one which resulted in an impairment charge of $331,000 . Equity securities . The Company holds 715,396 shares of RSO common stock and 18,972 shares of TBBK common stock. This investment is pledged as collateral for one of the Company’s secured corporate credit facilities. The Company also holds approximately 10,808 shares of DIF with a fair value of $104,000 . The Company has an investment of $1.7 million in the CIF, an interval fund, whose registration statement with respect to the offer and sale of its shares of beneficial interest was declared effective by the SEC on April 17, 2015 . Trading securities. The Company had net gains on trading securities of $22,000 and $5,000 , which included unrealized gains of $22,000 and $20,000 for the three months ended March 31, 2016 and 2015 , respectively. These gains are reflected in Financial Fund Management Revenues on the consolidated statements of operations. Pelium, a consolidated VIE which holds securities with a fair value of $ 25.6 million at March 31, 2016 , recorded realized gains of $405,000 and unrealized losses of $326,000 during the three months ended March 31, 2016 and realized gains of $683,000 and unrealized gains of $474,000 during the three months ended March 31, 2015 . Unrealized losses on available-for-sale securities, along with their related fair value, and aggregated by the length of time the investments were in a continuous unrealized loss position, are as follows (in thousands, except number of securities): Less than 12 Months More than 12 Months Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities March 31, 2016 CLO securities $ 4,292 $ (170 ) 8 $ 727 $ (59 ) 2 Equity securities 1,823 (68 ) 2 8,048 (2,804 ) 1 Total $ 6,115 $ (238 ) 10 $ 8,775 $ (2,863 ) 3 December 31, 2015 CLO securities $ 2,033 $ (38 ) 3 $ 805 $ (28 ) 2 Equity securities 1,814 (10 ) 2 9,128 (1,724 ) 1 Total $ 3,847 $ (48 ) 5 $ 9,933 $ (1,752 ) 3 The unrealized losses in RSO common stock reflected in the above table are considered to be temporary impairments due to market factors and not reflective of credit deterioration. Further, because of its intent and ability to hold its investment in RSO, the Company does not consider the unrealized losses to be other-than-temporary impairments. Unrealized losses related to Pelium fund investments, along with the related fair value and aggregated by the length of time the investments were in a continuous unrealized loss position, are as follows (in thousands, except number of securities): Less than 12 Months More than 12 Months Fair Value Unrealized Number of Securities Fair Value Unrealized Number of Securities March 31, 2016: CDO Securities $ 6,128 $ (1,043 ) 16 $ 2,166 $ (615 ) 10 CMBS 3,355 (1,272 ) 6 — — — Other — — — — — — Total $ 9,483 $ (2,315 ) 22 $ 2,166 $ (615 ) 10 December 31, 2015: CDO Securities $ 10,156 $ (3,312 ) 18 $ 1,183 $ (503 ) 7 CMBS 2,940 (1,278 ) 5 — — — Other 2,857 (143 ) 2 — — — Total $ 15,953 $ (4,733 ) 25 $ 1,183 $ (503 ) 7 |
INVESTMENTS IN UNCONSOLIDATED E
INVESTMENTS IN UNCONSOLIDATED ENTITIES AND LOAN MANAGER | 3 Months Ended |
Mar. 31, 2016 | |
Investments in Unconsolidated Entities [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED ENTITIES AND LOAN MANAGER | NOTE 7 - INVESTMENTS IN UNCONSOLIDATED ENTITIES AND LOAN MANAGER As a specialized asset manager, the Company develops various types of investment vehicles, which it manages under long-term management agreements or similar arrangements. The following table details the Company’s investments in these vehicles, including the range of ownership interests owned (in thousands, except percentages): Range of Combined March 31, December 31, Real estate investment entities 1% – 8% $ 13,717 $ 10,169 Financial fund management partnerships 0.01% − 50% 6,700 6,754 Trapeza entities 33% − 50% 751 630 Investments in unconsolidated entities $ 21,168 $ 17,553 During the three months ended March 31, 2016 , the Company invested $2.0 million in the Innovation Office REIT and $1.5 million in Pearlmark. The investment balances reflected in the above table include the Company's equity in the earnings (losses) of the entities, as reduced by any distributions received. Included in real estate investment entities is the Company's $2.5 million investment in Opportunity REIT I, which completed its initial public offering in December 2013, a $1.3 million investment in Opportunity REIT II, which completed its offering in February 2016, a $2.2 million investment in Innovation Office REIT and a $200,000 investment in Resource Apartment REIT III, Inc. ("Apartment REIT III"). The Company accounts for its investments in the Opportunity REITs, Innovation Office REIT and Apartment REIT III on the cost method. As of March 31, 2016 , the Company had an investment in Pearlmark of $6.2 million , inclusive of an initial $378,000 general partner contribution to a newly-formed Pearlmark-sponsored fund (see Note 19). The Company accounts for its investment in Pearlmark on the equity method of accounting. The Company has commitments with respect to some of these investments (see Note 19). Included in financial fund management partnerships is the Company's $3.4 million of investments in several managed credit funds, $2.5 million of investments in the RFIG partnerships which hold investments in financial institutions and an $816,000 investment in RCM Global, LLC ("RCM Global"), a venture between the Company, RSO and certain related parties that holds a portfolio of available-for-sale securities. The Company evaluates all of these investments for impairment on a quarterly basis. There were no identified events that had significant adverse effect on these investments and, as such, no impairment was recorded. Investment in Unconsolidated Loan Manager - CVC Credit Partners . In April 2012, the Company sold its equity interests in Apidos Capital Management, LLC ("Apidos") to CVC Capital Partners SICAV-FIS, S.A., a private equity firm (“CVC”), in exchange for (i) $25.0 million in cash, (ii) a 33% limited partner interest in CVC Credit Partners, a Cayman Islands limited partnership jointly owned by the Company and CVC, and (iii) a 33% interest in CVC Credit Partners' general partner, a Jersey corporation. The Company also retained a preferred equity interest in Apidos, which entitles it to receive distributions from CVC Credit Partners equal to 75% of the incentive management fees from the legacy Apidos portfolios. These investments are reflected as Investments in Unconsolidated Loan Manager on the consolidated balance sheets and the Company records its equity share of the operating results of CVC Credit Partners in Financial fund management revenues. In accordance with the CVC Credit Partners shareholders' agreement, in July 2015, CVC exercised its option to purchase a portion of the Company's interest in the joint venture by 9% , which reduced the Company's LP interest to 24% . In conjunction with the buydown, the Company recorded an impairment charge of $4.3 million on its investment in CVC Credit Partners during the three months ended June 30, 2015. The purchase price, an agreed upon formulaic option price based on finalized 2014 results of the joint venture, was not indicative of its fair value. The remaining interests held by the Company were valued by a third-party valuation firm, which concluded that the fair value exceeded the book value and, as such, there was no further impairment. Summarized operating data for CVC Credit Partners is presented below (in thousands): Three Months Ended March 31, 2016 2015 Management fee revenues $ 19,961 $ 16,738 Costs and expenses (16,146 ) (14,809 ) Net income $ 3,815 $ 1,929 Portion of net income (loss) attributable to the Company $ 916 $ 637 The Company accounts for its preferred interest in Apidos on the cost method. As incentive fees are received, in accordance with its preferred interest, the Company receives a distribution of 75% of those amounts which will initially be recorded as income, net of any contractual amounts due to third-parties. Each quarter the Company evaluates the book value of the investment by estimating the fair value of the expected future cash flows from the incentive management fees. To the extent that the estimated fair value of future cash flows is less than the cost basis of the investment, such shortfall will be recorded as a reduction of the preferred interest. During the quarter ended March 31, 2016 , as a result of cash payouts from three of the legacy Apidos deals that were called during the quarter, the Company's preferred interest was reduced by $2.0 million to $4.8 million . At such time that the investment has been reduced to zero, all subsequent distributions will be recorded as income. The Company evaluates all of these investments for impairment on a quarterly basis. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 3 Months Ended |
Mar. 31, 2016 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | NOTE 8 - VARIABLE INTEREST ENTITIES In general, a VIE is an entity that does not have sufficient equity to finance its operations without additional subordinated financial support, or an entity for which the risks and rewards of ownership are not directly linked to voting interests. The Company has variable interests in VIEs through its management contracts and investments in various securitization entities, including CDO issuers. The Company serves as the asset manager for the investment entities it sponsored and manages. The management fees the Company earns are excluded from its VIE determination as long as the fees are commensurate with the level of effort provided, are market based and similar to what a third party would charge for similar services, and the Company's other interests in the VIE are not significant. If the entity is deemed to be a VIE, the Company must then evaluate whether it is the primary beneficiary of the entity. Trading Portfolio From time to time, the Company may have an interest in a VIE through the investments it makes as part of its trading activities. Because of the high volume of trading activity the Company experiences, the Company does not perform a formal assessment of each individual investment within its trading portfolio to determine if the investee is a VIE and if the Company is a primary beneficiary. Even if the Company were to obtain a variable interest in a VIE through its trading portfolio, the Company would not typically be deemed to be the primary beneficiary as it does not usually obtain the power to direct activities that most significantly impact the investee’s financial performance. In the extremely unlikely case that the Company somehow obtained the power to direct and a significant variable interest in an investee in its trading portfolio that was a VIE, any such control would be temporary due to the rapid turnover within the trading portfolio. Consolidated VIE - Pelium Pelium is a VIE that the Company manages and in which it has invested $5.0 million for a 20% limited partner interest. Based on its evaluation, the Company concluded that it is the primary beneficiary and, as such, consolidates Pelium. However, the assets of Pelium are held solely to satisfy Pelium's obligations and the creditors of Pelium have no recourse against the assets of the Company. The following are the carrying amounts of the assets and liabilities of Pelium that are reflected in the Company's consolidated balance sheets (in thousands): Balance Sheet Account - Pelium March 31, December 31, Cash $ 570 $ 377 Receivables 2,377 2,345 Investment securities, at fair value 25,610 24,712 Other assets 93 98 $ 28,650 $ 27,532 Accrued expenses and other liabilities $ 766 $ 99 VIEs not consolidated The Company has a retained preferred equity interest in the legacy Apidos-CVC CLOs. In addition, the Company has investments in and manages the structured finance entities that hold investments in asset-backed securities (“Ischus entities”) and trust preferred assets (“Trapeza entities”). All of these entities were determined to be VIEs that the Company does not consolidate as it does not have the obligation of, or right to, losses or earnings that would be significant to those entities. The Company has not provided financial or other support to these VIEs and has no liabilities, contingent liabilities, or guarantees (implicit or explicit) related to these VIEs at March 31, 2016 . The following table presents the carrying amounts of the assets in the consolidated balance sheets that relate to the Company's variable interests in identified nonconsolidated VIEs that it manages as well as the Company's maximum potential exposure to losses associated with these managed VIEs in which it holds variable interests at March 31, 2016 (in thousands): Receivables from Managed Entities and Related Parties, Net Investments Maximum Exposure to Loss in Non-consolidated VIEs Ischus entities $ — $ — $ — Trapeza entities — 751 751 $ — $ 751 $ 751 |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 3 Months Ended |
Mar. 31, 2016 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | NOTE 9 - ACCRUED EXPENSES AND OTHER LIABILITIES The following is a summary of the components of accrued expenses and other liabilities (in thousands): March 31, December 31, Accounts payable and other accrued liabilities $ 7,762 $ 7,919 Supplemental executive retirement plan ("SERP") liability (see Note 14) 6,297 6,454 Accrued wages and benefits 4,283 8,036 Deferred rent 2,238 2,323 Apidos contractual obligation, at fair value (see Notes 7 and 17) 414 615 Dividends declared and not yet paid 1,144 1,132 Insurance notes 364 705 Total accrued expenses and other liabilities $ 22,502 $ 27,184 |
BORROWINGS
BORROWINGS | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
BORROWINGS | NOTE 10 - BORROWINGS The credit facilities and other debt of the Company and related borrowings outstanding are as follows (in thousands): As of March 31, 2016 December 31, Maximum Amount of Facility Borrowings Outstanding Borrowings Outstanding Credit facilities: TD Bank – secured revolving credit facility (1) $ 6,997 $ — $ — Republic Bank – secured revolving credit facility 1,969 — — — — Other debt: Senior Notes 10,000 10,000 Mortgage debt - hotel property 9,822 9,877 Other debt 775 870 Total borrowings outstanding $ 20,597 $ 20,747 (1) The amount of the TD facility shown has been reduced by $503,000 for an outstanding letter of credit at March 31, 2016 . Corporate and Real Estate Debt TD Bank, N.A. (“TD Bank”) . In March 2011, the Company entered into a line of credit loan agreement with TD Bank that, through April 24, 2014, allowed for borrowings up to $7.5 million with interest at either (a) the prime rate plus 2.25% or (b) a specified London Interbank Offered Rate (" LIBOR ") plus 3% . The interest rate used varies from one to six month LIBOR depending upon the period of the borrowing. In April 2014, the Company amended the TD Bank facility to (i) extend the maturity date to the earlier of (a) the expiration of the Company's management agreement with RSO or (b) December 31, 2017 , (ii) increase the maximum borrowing amount to $11.5 million provided that the Company maintains an aggregate value of pledged securities of $6.0 million and (iii) require that the Company have no cash advances outstanding for thirty consecutive days during each one -year period beginning on April 25, 2014 . In January 2016, due to a market decline in the value of the pledged securities, availability under the line of credit was reduced to $7.5 million . The Company is charged an annual fee of 0.5% on the unused facility amount as well as a 5.25% fee on a $503,000 outstanding letter of credit. Borrowings are secured by a first priority security interest in certain of the Company's assets and the guarantees of certain subsidiaries, including (i) the present and future fees and investment income earned in connection with the management of, and investments in, sponsored CDOs and CLOs, (ii) a pledge of 18,972 shares of TBBK common stock, and (iii) a pledge of 540,168 shares of RSO common stock held by the Company. There were no borrowings outstanding on the TD facility as of March 31, 2016 and December 31, 2015 . Republic First Bank (“Republic Bank”). In February 2011, the Company entered into a $3.5 million revolving credit facility with Republic Bank. The facility bears interest at the prime rate of interest plus 1% with a floor of 4.5% . The loan is secured by a pledge of 175,000 shares of RSO common stock held by the Company and a first priority security interest in an office building located in Philadelphia, Pennsylvania ( see Note 5 ). Availability under this facility is limited to the lesser of (a) the sum of (i) 25% of the appraised value of the real estate, based upon the most recent appraisal delivered to the bank and (ii) 100% of the cash and 75% of the market value of the pledged RSO shares held in the pledged account; and (b) 100% of the cash and 100% of the market value of the pledged RSO shares held in the pledged account. The loan has an unused annual facility fee equal to 0.25% . In November 2013, the Company further amended this facility to extend the maturity date to December 28, 2016 and increase the unused annual facility fee to 0.5% . There were no borrowings under this facility as of March 31, 2016 and December 31, 2015 and the availability was $2.0 million and $2.2 million , respectively. Senior Notes The Company's $10.0 million of 9% senior notes (the "Senior Notes") mature on March 31, 2018 . The effective interest rate for the three months ended March 31, 2016 and March 31, 2015 was 9.1% and 9.1% , respectively. The Company may early redeem all or part of the Senior Notes upon notification to the note holders at the redemption price plus any accrued and unpaid interest through to the date of such redemption. The redemption price prior to March 31, 2017 is at a 101% premium to par. Other Debt - Real Estate and Corporate Real estate - mortgage. The Company has a mortgage on its hotel property in Savannah, Georgia. The 6.36% fixed rate mortgage matures in September 2021 and requires monthly payments of principal and interest of $71,331 . The principal balance outstanding as of March 31, 2016 and December 31, 2015 was $9.8 million and $9.9 million , respectively. Corporate and real estate - capital leases. As of March 31, 2016 , the Company has various capital leases for computer equipment. Debt Repayments Annual principal payments coming due on the Company’s aggregate borrowings for the five succeeding annual periods ending March 31, and thereafter, are as follows (in thousands): 2017 $ 609 2018 10,603 2019 297 2020 276 2021 296 Thereafter 8,516 Total $ 20,597 Covenants The TD Bank credit facility is subject to certain financial covenants, which are customary for the type and size of the facility, including debt service coverage and debt to equity ratios. The debt to equity ratio restricts the amount of recourse debt the Company can incur based on a ratio of recourse debt to net worth. The covenant for the mortgage on the Company's hotel property requires maintaining a minimum debt coverage ratio. In addition, although non-recourse in nature, the loan is subject to limited standard exceptions (or "carveouts") which the Company has guaranteed. These carveouts will expire as the loan is paid down over the next five years. The Company has control over the operations of the underlying property, which mitigates the potential risk associated with these carveouts and, accordingly, no liabilities for these obligations have been recorded in the consolidated financial statements. To date, the Company has not been required to make any carveout payments. The Company was in compliance with all of its financial debt covenants as of March 31, 2016 . |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Mar. 31, 2016 | |
Comprehensive Income (Loss) [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 11 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Comprehensive income (loss) includes net income (loss) and all other changes in the equity of a business from transactions and other events and circumstances from non-owner sources. These changes, other than net income (loss), are referred to as “other comprehensive income (loss)” and for the Company include primarily changes in the fair value, net of tax, of its investment securities available-for-sale and pension liability. The following are changes in accumulated other comprehensive (loss) income by category (in thousands): Investment Securities Available-for-Sale Cash Flow Hedges Foreign Currency Translation Adjustments SERP Pension Liability Total Balance, December 31, 2015, net of tax of $(505), $0, $(4) and $(2,524) $ (34 ) $ — $ (8 ) $ (3,491 ) $ (3,533 ) Current-period other comprehensive (loss) income (1,390 ) — — 70 (1,320 ) Balance, March 31, 2016, net of tax of $(1,353), $0, $2 and $(2,473) $ (1,424 ) $ — $ (8 ) $ (3,421 ) $ (4,853 ) Amounts reclassified from accumulated other comprehensive income were reflected in the consolidated financial statements, as follows: Category Locations in the consolidated financial statements Investment securities available-for-sale Revenues - Financial fund management Cash flow hedges Revenues - Commercial Finance SERP pension liability General and administrative expenses Foreign currency translation adjustments Other income |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 3 Months Ended |
Mar. 31, 2016 | |
Noncontrolling Interest [Abstract] | |
NONCONTROLLING INTERESTS | NOTE 12 - NONCONTROLLING INTERESTS Noncontrolling interests reflect the interests held by RSO in Pelium and, to a lesser extent, the interest held by a related party in the Company's hotel property in Georgia. The following table presents the activity in noncontrolling interests (in thousands): Three Months Ended Noncontrolling interests, beginning of year $ 22,356 Net income (loss) attributable to noncontrolling interests 366 Other 14 Noncontrolling interests, end of period $ 22,736 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 13 - EARNINGS PER SHARE Basic earnings per share (“Basic EPS”) is computed using the weighted average number of common shares outstanding during the period, inclusive of nonvested share-based awards that are entitled to receive non-forfeitable dividends. The diluted earnings per share (“Diluted EPS”) computation takes into account the effect of potential dilutive common shares. Potential dilutive common shares, consisting primarily of outstanding stock options, warrants and director deferred shares, are calculated using the treasury stock method. The following table presents a reconciliation of the shares used in the computation of Basic EPS and Diluted EPS (in thousands): Three Months Ended March 31, 2016 2015 Shares Basic shares outstanding 20,611 22,965 Dilutive effect of outstanding director units and stock options 278 274 Diluted shares outstanding 20,889 23,239 |
BENEFIT PLANS
BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
BENEFIT PLANS | NOTE 14 - BENEFIT PLANS SERP. The Company established a SERP, which has Rabbi and Secular Trust components, for Mr. Edward E. Cohen (“Mr. E. Cohen”), while he was the Company’s Chief Executive Officer. The plan pays Mr. E. Cohen an annual benefit of $838,000 during his lifetime. The components of net periodic benefit costs for the SERP were as follows (in thousands): Three Months Ended March 31, 2016 2015 Interest cost $ 62 $ 62 Less: expected return on plan assets (10 ) (19 ) Plus: amortization of unrecognized loss 121 106 Net cost $ 173 $ 149 Restricted stock. The value of the restricted stock awarded is based on the closing price of the Company's common stock as of the date of grant. During the three months ended March 31, 2016 and 2015 , the Company awarded 847,177 and 440,852 shares of restricted stock valued at $4.0 million and $3.9 million , respectively. Additionally, for the three months ended March 31, 2016 and 2015 , there were 45,308 and 45,306 shares earned as part of a performance-based award valued at $411,000 and $420,000 , respectively. |
CERTAIN RELATIONSHIPS AND RELAT
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS | NOTE 15 - CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS In the ordinary course of its business operations, the Company has sponsored and manages investment entities. Additionally, it has ongoing relationships with several related entities. The following table details these receivables and payables (in thousands): March 31, December 31, Receivables from managed entities and related parties, net: Real estate investment entities $ 14,314 $ 21,146 Commercial finance investment entity 1,044 1,289 Financial fund management investment entities 1,271 1,582 Other 167 319 RSO 2,888 2,331 Loan to CVC Credit Partners 2,743 — Receivables from managed entities and related parties $ 22,427 $ 26,667 Payables due to managed entities and related parties, net: Real estate investment entities (1) $ 2,776 $ 3,110 Other 35 35 Payables to managed entities and related parties $ 2,811 $ 3,145 (1) Includes $2.7 million and $3.0 million in self-insurance funds provided by the Company's real estate investment entities as of March 31, 2016 and December 31, 2015 , respectively, which are held in escrow by the Company to cover claims. The Company receives fees, dividends and reimbursed expenses from several related/managed entities. In addition, the Company reimburses related entities for certain operating expenses. The following table details those activities (in thousands): Three Months Ended March 31, 2016 2015 Fees from unconsolidated investment entities : Real estate (1) $ 3,156 $ 2,187 Financial fund management 774 782 RSO: Management, incentive and servicing fees 3,745 3,232 Dividends paid 300 458 Reimbursement of costs and expenses 1,037 1,071 CVC Credit Partners: reimbursement of net costs and expenses 219 229 Opportunity REIT I: Fees 4,617 6,305 Reimbursement of costs and expenses 1,275 888 Dividends paid 44 15 Opportunity REIT II: Fees 4,790 1,012 Reimbursement of costs and expenses 578 737 Dividends paid 20 7 Innovation Office REIT: Reimbursement of costs and expenses 621 — Resource Apartment REIT III: Reimbursement of costs and expenses 261 — LEAF: Payment for sub-servicing the commercial finance investment partnerships (12 ) (23 ) Reimbursement of net costs and expenses 36 36 1845 Walnut Associates Ltd: Payment for rent and related expenses (214 ) (207 ) Property management fees 47 38 Brandywine Construction & Management, Inc.: payment for property management of hotel property (52 ) (52 ) Atlas Energy, L.P.: reimbursement of net costs and expenses 29 13 Ledgewood P.C.: payment for legal services (35 ) (34 ) Graphic Images, LLC: payment for printing services (26 ) (48 ) 9 Henmar LLC: payment of broker/consulting fees (3 ) (3 ) (1) Includes discounts recorded (reversed) of $6,000 and $(207,000) for the three months ended March 31, 2016 and March 31, 2015 , respectively, in connection with management fees from the Company's real estate investment entities that it expects to receive in future periods. (2) The Company waived management fees from its commercial finance investment entities of $7,000 during the three months ended March 31, 2016 and $49,000 during the three months ended March 31, 2015 . Relationship with RSO . Since March 2005, the Company has had a management agreement with RSO pursuant to which it provides certain services, including investment management and certain administrative services, to RSO. The agreement, which had an original maturity date of March 31, 2009, continues to renew automatically for one -year terms unless at least two-thirds of the independent directors or a majority of the outstanding common shareholders agree to not renew it. The Company receives a base management fee, incentive compensation, property management fees and reimbursement for out-of-pocket expenses. The base management fee is equal to 1/12th of the amount of RSO’s equity, as defined by the management agreement, multiplied by 1.50%. In October 2009, February 2010 and March 2012, the management agreement was further amended such that RSO will directly reimburse the Company for the wages and benefits of RSO's chief financial officer, an executive officer who devotes all of his time to serve as RSO’s chairman of the board, and a sufficient number of accounting professionals, each of whom will be exclusively dedicated to RSO's operations (number and amounts charged are reviewed and approved by RSO's Board of Directors), and a director of investor relations who will be 50% dedicated to RSO's operations. In August 2010, the agreement was further amended to reduce the incentive management fee earned by the Company for any fees paid directly by RSO to employees, agents and/or affiliates of the Company with respect to profits earned by a taxable REIT subsidiary of RSO. Relationship with Opportunity REIT I. As of March 31, 2016 and December 31, 2015 , the Company had a receivable of $539,000 and $277,000 , respectively, for reimbursement of operating costs and expenses. Relationship with Opportunity REIT II. As of March 31, 2016 and December 31, 2015 , the Company had a receivable of $580,000 and $4.9 million , respectively from Opportunity REIT II for offering costs and operating expense reimbursements. Relationship with Innovation Office REIT. As of March 31, 2016 and December 31, 2015 the Company had a receivable of $3.0 million and $2.4 million from the Innovation Office REIT for reimbursement of offering costs and expenses. Relationship with Resource Apartment REIT III. As of March 31, 2016 and December 31, 2015 the Company had a receivable of $1.0 million and $739,000 , respectively from the Resource Apartment REIT III for reimbursement of offering costs and expenses. Relationship with CVC Credit Partners. On January 13, 2016, the Company entered into a new loan agreement with CVC Credit Partners which provides for borrowings of up to €3.6 million with interest accruing at Euro Interbank Offered Rate (" EURIBOR ") plus 7% . In February 2016 and March 2016, CVC Credit Partners borrowed a total of €2.4 million under this new loan. The Company has consulted with hedging and derivative professionals and has utilized hedging instruments in order to minimize FX exposure. In February 2014, the Company loaned a non-executive employee $300,000 under a promissory note bearing interest at 3-month LIBOR plus 3% , resetting annually. In December 2014, the Company amended the terms of the note to provide for an initial repayment of $50,000 plus accrued interest, which was paid on March 15, 2015, with the remaining principal and interest due in full on March 15, 2016. The loan was repaid in full on March 8, 2016. |
OTHER INCOME
OTHER INCOME | 3 Months Ended |
Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME | NOTE 16 - OTHER INCOME The following table details other income, net (in thousands): Three Months Ended March 31, 2016 2015 RSO dividends $ 300 $ 458 Interest income 214 104 Other expense, net (7 ) (248 ) Other income, net $ 507 $ 314 |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | In analyzing the fair value of its assets and liabilities accounted for on a fair value basis, the Company follows the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Assets and liabilities are categorized into one of three levels based on the assumptions (inputs) used in valuing the asset or liability. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. The three levels are defined as follows: Level 1 − Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date. Level 2 − Observable inputs other than quoted prices included within Level 1, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. Level 3 − Unobservable inputs that reflect the entity's own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and that are, consequently, not based on market activity, but upon particular valuation techniques. There were no transfers between any of the levels within the fair value hierarchy for any of the periods presented. The following is a discussion of the assets and liabilities that are recorded at fair value on a recurring and non-recurring basis, as well as the valuation techniques applied to each fair value measurement and the estimates and assumptions used by the Company in those measurements. Investment securities. The Company uses quoted market prices to value its investments in RSO, DIF, CIF and TBBK common stock (Level 1). The fair value of the Company's investments in CLO and CDO securities are based on internally-generated expected cash flow models that require significant management judgments and estimates due to the lack of market activity and unobservable pricing inputs. The significant unobservable inputs used in the fair value measurement include the constant prepayment rate ("CPR"), a probability of default ("CDR"), severity rate, reinvestment price on underlying collateral and the discount rate. Significant increases (decreases) in the default or discount rates in isolation would result in a significantly lower (higher) fair value measurement, whereas significant increases (decreases) in the recovery rate, prepayment rate or reinvestment price in isolation would result in a significantly higher (lower) fair value measurement. Generally, a change in the assumption used for the probability of default is accompanied by a directionally similar change in the assumption used for the discount rate and a directionally opposite change in the assumption used for prepayment rates, recovery rates and reinvestment prices on underlying collateral. As of March 31, 2016 , the Company held six securities of value within its trading portfolio, five of which were debt/equity investments in externally managed CDO issuers and one was a term loan (Level 3). Investment in Apidos-CVC preferred stock and contractual commitment . The Company's estimated contractual commitment associated with its investment in the Apidos-CVC preferred stock was valued at $414,000 at March 31, 2016 based on the present value of the underlying discounted projected cash flows of the legacy Apidos incentive management fees (Level 3). The fair value of the Company’s assets and liability recorded at fair value on a recurring basis were as follows (in thousands): Level 1 Level 2 Level 3 Total Assets - Investment securities Investment securities $ 9,912 $ — $ 9,236 $ 19,148 Pelium securities — — 25,610 25,610 March 31, 2016 $ 9,912 $ — $ 34,846 $ 44,758 Investment securities $ 11,062 $ — $ 9,898 $ 20,960 Pelium securities — — 24,712 24,712 December 31, 2015 $ 11,062 $ — $ 34,610 $ 45,672 Liability - Apidos contractual commitment Level 1 Level 2 Level 3 Total March 31, 2016 $ — $ — $ 414 $ 414 December 31, 2015 — — 615 615 The following table presents additional information about assets which were measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value during three months ended March 31, 2016 (in thousands): Investment Securities Pelium Securities Total Balance, beginning of year $ 9,898 $ 24,712 $ 34,610 Purchases 732 4,464 5,196 Income accreted 297 — 297 Payments and distributions received, net (467 ) (1,398 ) (1,865 ) Sales (666 ) (2,912 ) (3,578 ) Impairment (98 ) — (98 ) Realized gains on CDOs 498 — 498 Gains on trading securities — 460 460 Unrealized holding gains on trading securities 22 284 306 Change in unrealized gains included in accumulated other comprehensive loss (980 ) — (980 ) Balance, end of period $ 9,236 $ 25,610 $ 34,846 The following table presents additional information about assets which were measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value during year ended December 31, 2015 (in thousands): Investment Securities Pelium Securities Total Balance, beginning of year $ 8,489 $ 17,366 $ 25,855 Purchases 2,524 27,630 30,154 Income accreted 1,238 — 1,238 Payments and distributions received, net (1,913 ) (2,874 ) (4,787 ) Sales (174 ) (16,012 ) (16,186 ) Impairment (331 ) — (331 ) Gains (losses) on sales of trading securities (14 ) 1,415 1,401 Unrealized holding gains on trading securities 269 (2,813 ) (2,544 ) Change in unrealized gains included in accumulated other comprehensive loss (190 ) — (190 ) Balance, end of period $ 9,898 $ 24,712 $ 34,610 The following table presents the Company's quantitative inputs and assumptions used in determining the fair value of items categorized in Level 3 (in thousands, except percentages): Fair value at March 31, 2016 Valuation Technique Unobservable Inputs Assumptions (weighted average) CLO securities $ 7,794 Discounted cash flow Constant default rate 1% - 2% Loss severity rate 25% Constant prepayment rate 25% Reinvestment price on collateral 99% Reinvestment spread 0% - 4.50% Discount rates 15% Trading securities $ 1,442 Net asset value Value of underlying assets variable Discounted cash flow Constant default rate 5% Constant prepayment rate 30% Loss severity rate 30% In accordance with guidance on fair value measurements and disclosures, the Company is not required to disclose quantitative information with respect to unobservable inputs contained in fair value measurements that are not developed by the Company. As a consequence, the Company has not disclosed such information associated with fair values obtained from third-party pricing sources. The fair value of financial instruments required to be disclosed at fair value, excluding instruments valued on a recurring basis, is as follows (in thousands): March 31, 2016 December 31, 2015 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Borrowings: Real estate debt $ 9,822 $ 10,689 $ 9,877 $ 10,618 Senior Notes 10,000 12,553 10,000 12,202 Other debt 775 775 870 870 $ 20,597 $ 24,017 $ 20,747 $ 23,690 For cash, receivables and payables, the carrying amounts approximate fair value because of the short-term maturity of these instruments. The Company estimated the fair value of the real estate debt using current interest rates for similar loans. The Company estimated the fair value of the Senior Notes by applying the percentage appreciation in a high-yield fund with approximately similar quality and risk attributes as the Senior Notes. The carrying value of the Company's other debt was estimated using current interest rates for similar loans at March 31, 2016 and December 31, 2015 . |
DERIVATIVES
DERIVATIVES | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | NOTE 18 - DERIVATIVES As of March 31, 2016 , the Company had the following outstanding foreign currency forward contracts outstanding (in thousands): Derivatives Number of Instruments Notional Amount Maturity Date Foreign currency forward contracts 2 $ 2,676 August 5, 2016 The table below presents the fair value of the Company's derivative financial instruments, which are included in accrued expenses and other liabilities on the consolidated balance sheets (in thousands): Liability Derivatives March 31, 2016 Balance Sheet Fair Value Foreign currency forward contracts $64 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 19 - COMMITMENTS AND CONTINGENCIES As of March 31, 2016 , except for executive compensation, the Company did not believe it was probable that any payments would be required under any of its contingencies and, accordingly, no liabilities were recorded in the consolidated financial statements. The Company's commitments and contingencies as of March 31, 2016 were as follows: Corporate Broker-dealer capital requirement. Resource Securities serves as a dealer-manager for the sale of securities of direct participation investment programs, both public and private, sponsored by subsidiaries of the Company who also serve as general partners and/or managers of these programs. Additionally, Resource Securities serves as an introducing agent for transactions involving sales of securities of financial services companies, REITs and insurance companies for the Company and for RSO. As a broker-dealer, Resource Securities is required to maintain minimum net capital, as defined in regulations under the Securities Exchange Act of 1934, as amended, which was $100,000 and $259,000 as of March 31, 2016 and December 31, 2015 , respectively. As of March 31, 2016 and December 31, 2015 , Resource Securities net capital was $1.0 million and $1.0 million , respectively, which exceeded the minimum requirements by $902,000 and $780,000 , respectively. Legal proceedings . The Company is also a party to various routine legal proceedings arising out of the ordinary course of business. Management believes that none of these actions, individually or, in the aggregate, will have a material adverse effect on the Company's consolidated financial condition or operations. Executive compensation. The Company is also party to employment agreements with certain executives that provide for compensation and other benefits, including severance payments under specified circumstances. Financial fund management Clawback liability. One of the Company's structured finance partnerships that invests in public and private regional banks has a potential clawback of up to 75% of the management fees paid to the Company ( $1.3 million as of March 31, 2016 ) to the extent that the limited partners’ aggregate capital contributions exceed the total partner distributions from the fund. As of March 31, 2016 , the fair value of the fund's assets were sufficient to cover the distribution requirement and, as such, no liability has been recorded for this contingency. Capital commitments. The Company is committed to fund the following investments: In connection with the Company's investment in CVC Credit Partners, in its capacity as the fund manager for some of its managed accounts/funds, the Company is contractually committed to invest capital along with third-party investors. Accordingly, as of March 31, 2016 , the Company’s pro-rata portion of the unfunded capital commitments totaled $5.3 million across five such funds/accounts. The Company expects these unfunded commitments to be called over the next two years. On April 11, 2016, the Company signed an agreement to create a new joint venture, RRA CP LLC, along with two other members, to manage pools of residential real estate first and second lien loans and lines of credit, and other residential mortgage assets and residential real estate properties. The Company will have a 5% interest and will serve as the managing member of the joint venture. The joint venture’s planned initial investment is for approximately $25.0 million , of which the Company will be committed to fund approximately $1.2 million . This commitment is payable upon the execution of the final purchase and sale agreement which is planned to occur in May 2016. Real estate REIT capital commitments. As a specialized asset manager, the Company sponsors and manages investment funds in which it may make an equity investment along with outside investors. This equity investment is generally based on a percentage of funds raised and varies among investment programs. With respect to Apartment REIT III, in addition to the $200,000 initial capital investment, the Company is committed to invest up to 1% of the first $100.0 million of equity raised to a maximum of $1.0 million . The liability for these commitments will be recorded in the future as the amounts become due and payable. Pearlmark joint venture capital commitment. In connection with the Pearlmark joint venture, the Company is committed to fund up to $8.0 million , of which $7.0 million had been funded as of March 31, 2016 . This funding is reflected as the Company's investment in Pearlmark and will have a preference in distributions, plus a 10% internal rate of return, from the joint venture before any monies will be distributed to the other investors. In April 2016, the Company provided an additional $1.0 million to Pearlmark which completed its funding commitment. In connection with the formation of Pearlmark's first fund offering, Pearlmark Mezzanine Realty Partners IV, L.P., the Company is committed to contribute up to a maximum of $1.7 million as a General Partner of the fund. As of March 31, 2016 , the Company has funded $378,000 of that commitment. Commercial finance Commercial finance partnership guarantee. In connection with the sale of a portfolio of leases and notes by one of the Company's commercial finance partnerships, the Company provided a guarantee whereby the Company will reimburse the buyer in the event that one of the leases in the portfolio fails to make a $183,000 balloon payment on the due date. As of March 31, 2016 , the lease is current and there is no indication that the payment will not be made timely; accordingly, no liability has been recorded for this contingency. |
OPERATING SEGMENTS
OPERATING SEGMENTS | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENTS | NOTE 20 - OPERATING SEGMENTS The Company manages its operations and makes business decisions based on three reportable operating segments, Real Estate, Financial Fund Management and Commercial Finance. Certain other activities are reported in the “All Other” category in the tables in order for the information presented about the Company's operating segments to agree to the consolidated balance sheets and statements of operations. Summarized operating segment data are as follows (in thousands): Three Months Ended Real Financial Commercial All (1) Total Revenues from external customers $ 17,717 $ 5,038 $ 80 $ — $ 22,835 Equity in earnings (losses) of unconsolidated entities 1,446 1,691 (4 ) — 3,133 Total revenues 19,163 6,729 76 — 25,968 Segment operating expenses (11,018 ) (3,680 ) (392 ) — (15,090 ) General and administrative expenses (1,325 ) (368 ) — (3,190 ) (4,883 ) Provision for credit losses (4 ) — (105 ) — (109 ) Depreciation and amortization (314 ) (16 ) — (174 ) (504 ) Gain (loss) on sale of investment securities, net — 498 — — 498 Impairment on available for sale securities — (98 ) — — (98 ) Interest expense (171 ) — — (269 ) (440 ) Other income (expense), net 306 296 9 (104 ) 507 Pretax loss (income) attributable to noncontrolling interests (2) (5 ) (361 ) — — (366 ) Income (loss) from continuing operations, net of noncontrolling interests before taxes $ 6,632 $ 3,000 $ (412 ) $ (3,737 ) $ 5,483 Three Months Ended Real Financial Commercial All (1) Total Revenues from external customers $ 16,294 $ 4,867 $ 13 $ — $ 21,174 Equity in (losses) earnings of unconsolidated entities 672 2,008 (15 ) — 2,665 Total revenues 16,966 6,875 (2 ) — 23,839 Segment operating expenses (11,499 ) (3,063 ) (579 ) — (15,141 ) General and administrative expenses (879 ) (284 ) — (2,134 ) (3,297 ) Reversal of (provision for) credit losses (114 ) — (288 ) — (402 ) Depreciation and amortization (312 ) (16 ) — (129 ) (457 ) Interest expense (183 ) — — (238 ) (421 ) Other income, net 223 441 1 (351 ) 314 Pretax loss (income) attributable to noncontrolling interests (2) 8 (1,665 ) — — (1,657 ) Income (loss) from continuing operations, net of noncontrolling interests before taxes $ 4,210 $ 2,288 $ (868 ) $ (2,852 ) $ 2,778 Segment assets Real Financial Commercial All (1) Total March 31, 2016 $ 212,594 $ 90,798 $ 3,090 $ (101,896 ) $ 204,586 March 31, 2015 $ 191,693 $ 108,794 $ 4,173 $ (75,309 ) $ 229,351 (1) Includes general corporate expenses and assets not allocable to any particular segment. (2) In viewing its segment operations, the Company includes the pretax income attributable to noncontrolling interests. However, these interests are excluded from income (loss) from operations as computed in accordance with U.S. GAAP and should be deducted to compute income from operations as reflected in the Company’s consolidated statements of operations. Major Customer. During the three months ended March 31, 2016 and 2015, the management, incentive, servicing and acquisition fees that the Company received from RSO were 14.4% and 13.6% , respectively, of its consolidated revenues. These fees have been allocated among, and reported as revenues by, the Company's operating segments. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 21 - SUBSEQUENT EVENTS The Company has evaluated subsequent events through the filing of its Quarterly Report on Form 10-Q for the period ended March 31, 2016 and determined that there have not been any events that have occurred that would require adjustments to or disclosures in the consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements reflect the Company's accounts and the accounts of the Company's majority-owned and/or controlled subsidiaries. The Company follows the provisions of Accounting Standards Codification (“ASC”) Topic 810, as amended by Accounting Standards Update (“ASU”) 2015-2, Amendments to the Consolidation Analysis . The determination of whether or not to consolidate entities under accounting principles generally accepted in the United States (“U.S. GAAP”) requires significant judgment. To make these judgments, management performs an entity-by-entity analysis with consideration of i) whether the Company has a variable interest in the entity, ii) whether the entity is a variable interest entity (“VIE”), and iii) whether the Company is the primary beneficiary of the VIE. When determining whether the Company has a variable interest in entities it evaluates for consolidation, the Company considers interests in the entities and fees it receives to act as a decision maker or service provider to the entity being evaluated. If the Company determines that it does not have a variable interest in an entity, no further consolidation analysis is performed as the Company would not be required to consolidate the entity. Fees received by the Company are not variable interests if (i) the fees are compensation for services provided and are commensurate with the level of effort required to provide those services, (ii) the service arrangement includes only terms, conditions, or amounts that are customarily present in arrangements for similar services negotiated at arm’s length and (iii) the Company's other economic interests in the VIE held directly and indirectly through its related parties, as well as economic interests held by related parties under common control, where applicable, would not absorb more than an insignificant amount of the entity’s losses or receive more than an insignificant amount of the entity’s benefits. If fees paid to the Company were determined to be a variable interest, it could result in the Company being the primary beneficiary of and thus consolidating the entity being evaluated. Evaluation of these criteria requires judgment. For those entities in which it has a variable interest, the Company performs an analysis to first determine whether the entity is a VIE. This determination includes considering whether the entity’s equity investment at risk is sufficient, whether the voting rights of an investor are not proportional to its obligation to absorb the income or loss of the entity and substantially all of the entity’s activities either involve or are conducted on behalf of that investor and its related parties, and whether the entity’s at risk equity holders have the characteristics of a controlling financial interest. The Company is the general partner/manager of and has a variable interest in certain limited partnerships and similar entities. One of the factors that the Company considers in evaluating whether these entities are VIEs is whether a simple majority (or lower threshold) of limited partners with equity at risk are able to exercise substantive kick-out rights. Kick-out rights are generally defined as the ability to remove the general partner/manager or to dissolve the entity without cause. Generally, if the limited partners with equity at risk are not able to exercise substantive kick-out rights, the entity is a VIE unless the limited partners have been granted substantive participating rights. The Company is also the manager of and has a variable interest in certain entities other than limited partnerships. One of the factors that the Company considers in evaluating whether these entities are VIEs is whether the investors have power through voting rights or similar rights (such as those of a common shareholder in a corporation); and if not, whether a single equity holder has the unilateral ability to exercise substantive kick-out rights. If investors do not have power through voting rights or similar rights or a single equity holder does not have the unilateral ability to exercise substantive kick-out rights, then the entity is a VIE. These analyses require judgment. A VIE must be consolidated by its primary beneficiary. The primary beneficiary of a VIE is generally defined as the party who has a controlling financial interest in the VIE. The Company would be deemed to have a controlling financial interest in a VIE if it and its related parties under common control as a group, where applicable, have (i) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. For purposes of evaluating (ii) above, fees paid to the Company are excluded if the fees are compensation for services provided commensurate with the level of effort required to be performed and the arrangement includes only customary terms, conditions or amounts present in arrangements for similar services negotiated at arm’s length. This analysis requires judgment. All intercompany transactions and balances have been eliminated in the Company's consolidated financial statements. |
Use of Estimates | Use of Estimates Preparation of the Company's consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and costs and expenses during the reporting period. The Company makes estimates of its allowance for credit losses, the valuation allowance against its deferred tax assets, discounts and collectability of management fees, the valuation of stock-based compensation, and in determining whether a decrease in the fair value of an investment is an other-than-temporary impairment. The real estate and financial fund management segments make assumptions in determining the fair value of investments in investment securities. Actual results could differ from these estimates. |
Financing Receivables - Receivables from Managed Entities | Financing Receivables - Receivables from Managed Entities The Company performs a review of the collectability of its receivables from managed entities on a quarterly basis, by analyzing future cash flows by managed entity. Management fees are recorded net of a discount to the extent that they are anticipated to be collected in excess of one year. With respect to the receivables from its commercial finance investment partnerships, this takes into consideration several assumptions by management, primarily concerning estimates of future bad debts and recoveries. For receivables from the real estate investment entities, the Company estimates the cash flows through the sale of the underlying properties based on projected net operating income as a multiple of published capitalization rates, as reduced by the underlying mortgage balances and priority distributions due to the investors. |
Investment Securities | Investment Securities The Company’s investment securities available-for-sale, including investments in the CLO and CDO issuers it sponsored, are carried at fair value. The fair value of the CLO and CDO investments is based primarily on internally-generated expected cash flow models that require significant management judgment and estimates due to the lack of market activity and the use of unobservable pricing inputs. Investments in affiliated entities, including its holdings in The Bancorp, Inc. (NASDAQ: TBBK), RSO, Resource Credit Income Fund ("CIF") (NASDAQ: RCIIX), and Resource Real Estate Diversified Income Fund ("DIF") (NASDAQ: RREDX), all of which are affiliated entities, are valued at the closing prices of the respective publicly-traded stocks. The Company sold its investment in Resource Real Estate Global Property Securities ("RREGPS"), a Company-sponsored Australian investment fund, in July 2015. The cumulative net unrealized gains (losses) on these investment securities, net of tax, is reported through accumulated other comprehensive income (loss). Realized gains (and losses) on the sale of investments are determined on the trade date on the basis of specific identification and are included in net operating results. Securities that are held principally for resale in the near term (trading securities) are recorded at fair value with changes in fair value recorded in earnings. |
Hedging | Hedging - Foreign Currency Risk and Forward Contracts The Company has an exposure to foreign currency risk with respect to advances made to CVC Credit Partners that are repayable in Euros (see Note 15). To mitigate the foreign currency risk, the Company has entered into foreign currency forward contracts (see Note 18). Forward contracts represent future commitments to deliver a quantity of a currency at a predetermined future date and rate to manage currency risk. Financial derivatives are initially recognized in the balance sheet at fair value and subsequently measured at their fair value on each balance sheet date. The forward contracts are not designated as qualifying cash flow hedges and, accordingly, any changes in fair value of the contracts are recognized in the Company’s consolidated statements of operations. Similarly, any changes in the fair value of the Euro-based loan receivable are recognized in the consolidated statements of operations. |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2015 consolidated financial statements to conform to the 2016 presentation. |
Recent Accounting Standards | Recent Accounting Standards Newly-Adopted Accounting Principle The Company’s adoption of the following standards during the three months ended March 31, 2016 did not have a material impact on its consolidated financial position, results of operations or cash flows: In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs . The update requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. Debt disclosures will include the face amount of the debt liability and the effective interest rate. The update requires retrospective application and represents a change in accounting principle. The guidance was effective for the Company as of January 1, 2016. In January 2015, the FASB issued ASU No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items , which eliminates from GAAP the concept of an extraordinary item. As a result, an entity will no longer be required to segregate extraordinary items from the results of ordinary operations, to separately present an extraordinary item on its income statement, net of tax, after income from continuing operations or to disclose income taxes and earnings per share data applicable to an extraordinary item. However, presentation and disclosure guidance for items that are unusual in nature and occur infrequently will be retained. This guidance was effective for the Company as of January 1, 2016. Accounting Standards Issued But Not Yet Effective In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which will replace most of the existing revenue recognition guidance in GAAP. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. The ASU requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The ASU will be effective for the Company beginning January 1, 2018, including interim periods in 2018, and allows for both retrospective and prospective methods of adoption. The Company is in the process of determining the method of adoption and assessing the impact of this ASU on its consolidated financial statements. In June 2014, the FASB issued ASU No. 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period . ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. This guidance, effective for the Company beginning January 1, 2017, is not expected to have a material impact on the Company's consolidated financial position, results of operations or cash flows. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of ASU 2016-02. In March 2016, the FASB issued ASU 2016-07, Investments - Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting , which eliminates the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. ASU 2016-07 is effective for the Company January 1, 2017 and interim periods within that reporting period. The adoption of ASU 2016-07 is not expected to have a material effect on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The goal of this update is to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This update becomes effective beginning January 1, 2017, with early adoption permitted. The Company is currently evaluating the impact of ASU 2016-09. |
SUPPLEMENTAL CASH FLOW INFORM31
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental disclosure of cash flow information for the Company is as follows (in thousands, except per share data): Three Months Ended March 31, 2016 2015 Cash (paid) received: Interest $ (401 ) $ (399 ) Income tax payments (1,728 ) (65 ) Refund of income taxes — 44 Dividends declared per common share $ 0.06 $ 0.05 Non-cash activities: Repurchase of common stock from employees in exchange for the payment of income taxes $ 174 $ 165 Issuance of treasury stock for the Company's investment savings 401(k) plan 302 150 |
FINANCING RECEIVABLES (Tables)
FINANCING RECEIVABLES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Aging of the Company's Past Due Financing Receivables, Gross of Allowances for Credit Losses | The following table is the aging of the Company’s financing receivables (presented gross of allowance for credit losses) as of March 31, 2016 (in thousands): Current 30-89 Days Past Due 90-180 Days Past Due Greater than 181 Days Total Past Due Total Loans and receivables from managed entities and related parties: Commercial finance investment entities $ — $ 18 $ 60 $ 966 $ 1,044 $ 1,044 Real estate investment entities 3,832 330 755 9,397 10,482 14,314 Financial fund management entities 1,191 31 28 21 80 1,271 RSO 2,888 — — — — 2,888 Other 2,910 — — — — 2,910 10,821 379 843 10,384 11,606 22,427 Rent receivables - real estate 192 1 1 5 7 199 Total financing receivables $ 11,013 $ 380 $ 844 $ 10,389 $ 11,613 $ 22,626 The following table is the aging of the Company’s financing receivables (presented gross of allowance for credit losses) as of December 31, 2015 (in thousands): Current 30-89 Days Past Due 90-180 Days Past Due Greater than 181 Days Total Past Due Total Loans and receivables from managed entities and related parties: Commercial finance investment entities $ — $ 16 $ 73 $ 1,200 $ 1,289 $ 1,289 Real estate investment entities 7,909 392 890 11,955 13,237 21,146 Financial fund management entities 1,582 — — — — 1,582 RSO 2,331 — — — — 2,331 Other 319 — — — — 319 12,141 408 963 13,155 14,526 26,667 Rent receivables - real estate 192 8 2 4 14 206 Total financing receivables $ 12,333 $ 416 $ 965 $ 13,159 $ 14,540 $ 26,873 |
Summary of Activity in the Allowance for Credit Losses for the Company's Financing Receivables | The following table summarizes the activity in the allowance for credit losses for all financing receivables (in thousands): Receivables from Managed Entities Leases and Loans Rent Receivables Total Three Months Ended March 31, 2016: Balance, beginning of period $ — $ 130 $ 5 $ 135 Provision for (reversal) of credit losses — 105 4 109 (Charge-offs) recoveries — (242 ) — (242 ) Recoveries — 27 — 27 Balance, end of period $ — $ 20 $ 9 $ 29 Ending balance, individually evaluated for impairment $ — $ 20 $ 9 $ 29 Ending balance, collectively evaluated for impairment — — — — Balance, end of period $ — $ 20 $ 9 $ 29 Three Months Ended March 31, 2015 Balance, beginning of period $ 16,990 $ — $ — $ 16,990 Provision for (reversal) of credit losses 369 32 1 402 (Charge-offs) recoveries — (32 ) — (32 ) Balance, end of period $ 17,359 $ — $ 1 $ 17,360 Ending balance, individually evaluated for impairment $ 17,359 $ — $ 1 $ 17,360 Ending balance, collectively evaluated for impairment — — — — Balance, end of period $ 17,359 $ — $ 1 $ 17,360 |
Gross Financing Receivables Related to the Balance in the Allowance for Credit Losses | The Company’s financing receivables (presented exclusive of any allowance for credit losses) relate to the balance in the allowance for credit losses, as follows (in thousands): As of March 31, 2016: Receivables from Rent Total Ending balance, individually evaluated for impairment $ 22,427 $ — $ 22,427 Ending balance, collectively evaluated for impairment — 199 199 Balance, end of period $ 22,427 $ 199 $ 22,626 As of December 31, 2015: Ending balance, individually evaluated for impairment $ 26,667 $ — $ 26,667 Ending balance, collectively evaluated for impairment — 206 206 Balance, end of year $ 26,667 $ 206 $ 26,873 |
Information about Company's Impaired Financing Receivables | The following table discloses information about the Company’s impaired financing receivables (in thousands): Net Balance Unpaid Balance Specific Allowance Average Investment in Impaired Assets As of March 31, 2016: Financing receivables with a specific valuation allowance: Rent receivables – real estate $ — $ — $ 9 $ — As of December 31, 2015: Financing receivables with a specific valuation allowance: Loans and receivables from managed entities – commercial finance $ — $ — $ — $ 13,788 Rent receivables – real estate — — 5 — |
INVESTMENTS IN REAL ESTATE (Tab
INVESTMENTS IN REAL ESTATE (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Real Estate Investments, Net [Abstract] | |
Summary of Carrying Value of Investments in Real Estate | The Company’s investments in real estate, net, consist of the following (in thousands): March 31, December 31, Properties owned, net of accumulated depreciation of $9,894 and $9,752: Hotel property (Savannah, Georgia) $ 9,456 $ 9,757 Office building (Philadelphia, Pennsylvania) 861 877 10,317 10,634 Partnerships and other investments 5,435 5,388 Total investments in real estate, net $ 15,752 $ 16,022 |
Schedule of Future Minimum Rental Payments for Operating Leases | The contractual future minimum rental income on non-cancelable operating leases included in properties owned for each of the five succeeding annual periods ending March 31, and thereafter, are as follows (in thousands): 2017 $ 1,010 2018 1,038 2019 960 2020 689 2021 566 Thereafter 315 Total $ 4,578 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Components of the Company's Investment Securities | Components of investment securities are as follows (in thousands): March 31, December 31, Available-for-sale securities $ 17,706 $ 19,509 Trading securities 1,442 1,451 Trading securities - Pelium 25,610 24,712 Total investment securities, at fair value $ 44,758 $ 45,672 |
Pre-tax Unrealized Gains (Losses) Relating to the Company's Investments in Equity and Collateralized Debt Obligation Securities | Available-for-sale securities . The following table discloses the pre-tax unrealized gains (losses) relating to the Company’s investments in available-for-sale securities (in thousands): Cost or Amortized Cost Unrealized Gains Unrealized Losses Fair Value As of March 31, 2016: CLO securities $ 7,912 $ 111 $ (229 ) $ 7,794 Equity securities 12,784 (2,872 ) 9,912 Total $ 20,696 $ 111 $ (3,101 ) $ 17,706 As of December 31, 2015: CLO securities $ 7,585 $ 928 $ (66 ) $ 8,447 Equity securities 12,784 12 (1,734 ) 11,062 Total $ 20,369 $ 940 $ (1,800 ) $ 19,509 |
Unrealized Losses Along with the Related Fair Value, Aggregated by the Length of Time the Investments were in a Continuous Unrealized Loss Position | Unrealized losses on available-for-sale securities, along with their related fair value, and aggregated by the length of time the investments were in a continuous unrealized loss position, are as follows (in thousands, except number of securities): Less than 12 Months More than 12 Months Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities March 31, 2016 CLO securities $ 4,292 $ (170 ) 8 $ 727 $ (59 ) 2 Equity securities 1,823 (68 ) 2 8,048 (2,804 ) 1 Total $ 6,115 $ (238 ) 10 $ 8,775 $ (2,863 ) 3 December 31, 2015 CLO securities $ 2,033 $ (38 ) 3 $ 805 $ (28 ) 2 Equity securities 1,814 (10 ) 2 9,128 (1,724 ) 1 Total $ 3,847 $ (48 ) 5 $ 9,933 $ (1,752 ) 3 Less than 12 Months More than 12 Months Fair Value Unrealized Number of Securities Fair Value Unrealized Number of Securities March 31, 2016: CDO Securities $ 6,128 $ (1,043 ) 16 $ 2,166 $ (615 ) 10 CMBS 3,355 (1,272 ) 6 — — — Other — — — — — — Total $ 9,483 $ (2,315 ) 22 $ 2,166 $ (615 ) 10 December 31, 2015: CDO Securities $ 10,156 $ (3,312 ) 18 $ 1,183 $ (503 ) 7 CMBS 2,940 (1,278 ) 5 — — — Other 2,857 (143 ) 2 — — — Total $ 15,953 $ (4,733 ) 25 $ 1,183 $ (503 ) 7 |
INVESTMENTS IN UNCONSOLIDATED35
INVESTMENTS IN UNCONSOLIDATED ENTITIES AND LOAN MANAGER (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Investments in Unconsolidated Entities [Abstract] | |
Details of Company's Investments in Investment Vehicles, Including the Range of Interests it Owns | The following table details the Company’s investments in these vehicles, including the range of ownership interests owned (in thousands, except percentages): Range of Combined March 31, December 31, Real estate investment entities 1% – 8% $ 13,717 $ 10,169 Financial fund management partnerships 0.01% − 50% 6,700 6,754 Trapeza entities 33% − 50% 751 630 Investments in unconsolidated entities $ 21,168 $ 17,553 |
Summarized Operating Data for Unconsolidated Investment | Summarized operating data for CVC Credit Partners is presented below (in thousands): Three Months Ended March 31, 2016 2015 Management fee revenues $ 19,961 $ 16,738 Costs and expenses (16,146 ) (14,809 ) Net income $ 3,815 $ 1,929 Portion of net income (loss) attributable to the Company $ 916 $ 637 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Variable Interest Entities [Abstract] | |
Schedule of Variable Interest Entities, Balance Sheet | The following are the carrying amounts of the assets and liabilities of Pelium that are reflected in the Company's consolidated balance sheets (in thousands): Balance Sheet Account - Pelium March 31, December 31, Cash $ 570 $ 377 Receivables 2,377 2,345 Investment securities, at fair value 25,610 24,712 Other assets 93 98 $ 28,650 $ 27,532 Accrued expenses and other liabilities $ 766 $ 99 |
Schedule of Variable Interest Entities | The Company has not provided financial or other support to these VIEs and has no liabilities, contingent liabilities, or guarantees (implicit or explicit) related to these VIEs at March 31, 2016 . The following table presents the carrying amounts of the assets in the consolidated balance sheets that relate to the Company's variable interests in identified nonconsolidated VIEs that it manages as well as the Company's maximum potential exposure to losses associated with these managed VIEs in which it holds variable interests at March 31, 2016 (in thousands): Receivables from Managed Entities and Related Parties, Net Investments Maximum Exposure to Loss in Non-consolidated VIEs Ischus entities $ — $ — $ — Trapeza entities — 751 751 $ — $ 751 $ 751 |
ACCRUED EXPENSES AND OTHER LI37
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Payables and Accruals [Abstract] | |
Summary of Components of Accrued Expenses and Other Liabilities | The following is a summary of the components of accrued expenses and other liabilities (in thousands): March 31, December 31, Accounts payable and other accrued liabilities $ 7,762 $ 7,919 Supplemental executive retirement plan ("SERP") liability (see Note 14) 6,297 6,454 Accrued wages and benefits 4,283 8,036 Deferred rent 2,238 2,323 Apidos contractual obligation, at fair value (see Notes 7 and 17) 414 615 Dividends declared and not yet paid 1,144 1,132 Insurance notes 364 705 Total accrued expenses and other liabilities $ 22,502 $ 27,184 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Credit Facilities and Other Debt of the Company and Related Borrowings Outstanding | The credit facilities and other debt of the Company and related borrowings outstanding are as follows (in thousands): As of March 31, 2016 December 31, Maximum Amount of Facility Borrowings Outstanding Borrowings Outstanding Credit facilities: TD Bank – secured revolving credit facility (1) $ 6,997 $ — $ — Republic Bank – secured revolving credit facility 1,969 — — — — Other debt: Senior Notes 10,000 10,000 Mortgage debt - hotel property 9,822 9,877 Other debt 775 870 Total borrowings outstanding $ 20,597 $ 20,747 (1) The amount of the TD facility shown has been reduced by $503,000 for an outstanding letter of credit at March 31, 2016 . |
Annual Principal Payments on the Company's Aggregate Borrowings Over the Next Five Years and Thereafter | Annual principal payments coming due on the Company’s aggregate borrowings for the five succeeding annual periods ending March 31, and thereafter, are as follows (in thousands): 2017 $ 609 2018 10,603 2019 297 2020 276 2021 296 Thereafter 8,516 Total $ 20,597 |
ACCUMULATED OTHER COMPREHENSI39
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Comprehensive Income (Loss) [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) by Category | The following are changes in accumulated other comprehensive (loss) income by category (in thousands): Investment Securities Available-for-Sale Cash Flow Hedges Foreign Currency Translation Adjustments SERP Pension Liability Total Balance, December 31, 2015, net of tax of $(505), $0, $(4) and $(2,524) $ (34 ) $ — $ (8 ) $ (3,491 ) $ (3,533 ) Current-period other comprehensive (loss) income (1,390 ) — — 70 (1,320 ) Balance, March 31, 2016, net of tax of $(1,353), $0, $2 and $(2,473) $ (1,424 ) $ — $ (8 ) $ (3,421 ) $ (4,853 ) Amounts reclassified from accumulated other comprehensive income were reflected in the consolidated financial statements, as follows: Category Locations in the consolidated financial statements Investment securities available-for-sale Revenues - Financial fund management Cash flow hedges Revenues - Commercial Finance SERP pension liability General and administrative expenses Foreign currency translation adjustments Other income |
NONCONTROLLING INTERESTS (Table
NONCONTROLLING INTERESTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Noncontrolling Interest [Abstract] | |
Activity in Noncontrolling Interest | The following table presents the activity in noncontrolling interests (in thousands): Three Months Ended Noncontrolling interests, beginning of year $ 22,356 Net income (loss) attributable to noncontrolling interests 366 Other 14 Noncontrolling interests, end of period $ 22,736 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of Components Used in Computation of Basic and Diluted EPS | The following table presents a reconciliation of the shares used in the computation of Basic EPS and Diluted EPS (in thousands): Three Months Ended March 31, 2016 2015 Shares Basic shares outstanding 20,611 22,965 Dilutive effect of outstanding director units and stock options 278 274 Diluted shares outstanding 20,889 23,239 |
BENEFIT PLANS (Tables)
BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Costs for the SERP | The components of net periodic benefit costs for the SERP were as follows (in thousands): Three Months Ended March 31, 2016 2015 Interest cost $ 62 $ 62 Less: expected return on plan assets (10 ) (19 ) Plus: amortization of unrecognized loss 121 106 Net cost $ 173 $ 149 |
CERTAIN RELATIONSHIPS AND REL43
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Details of Receivable and Payables and Fees, Dividends and Reimbursed Expenses | The following table details these receivables and payables (in thousands): March 31, December 31, Receivables from managed entities and related parties, net: Real estate investment entities $ 14,314 $ 21,146 Commercial finance investment entity 1,044 1,289 Financial fund management investment entities 1,271 1,582 Other 167 319 RSO 2,888 2,331 Loan to CVC Credit Partners 2,743 — Receivables from managed entities and related parties $ 22,427 $ 26,667 Payables due to managed entities and related parties, net: Real estate investment entities (1) $ 2,776 $ 3,110 Other 35 35 Payables to managed entities and related parties $ 2,811 $ 3,145 (1) Includes $2.7 million and $3.0 million in self-insurance funds provided by the Company's real estate investment entities as of March 31, 2016 and December 31, 2015 , respectively, which are held in escrow by the Company to cover claims. |
Schedule of Fees, Dividends and Reimbursed Expenses from Several Related/Managed Entities | The following table details those activities (in thousands): Three Months Ended March 31, 2016 2015 Fees from unconsolidated investment entities : Real estate (1) $ 3,156 $ 2,187 Financial fund management 774 782 RSO: Management, incentive and servicing fees 3,745 3,232 Dividends paid 300 458 Reimbursement of costs and expenses 1,037 1,071 CVC Credit Partners: reimbursement of net costs and expenses 219 229 Opportunity REIT I: Fees 4,617 6,305 Reimbursement of costs and expenses 1,275 888 Dividends paid 44 15 Opportunity REIT II: Fees 4,790 1,012 Reimbursement of costs and expenses 578 737 Dividends paid 20 7 Innovation Office REIT: Reimbursement of costs and expenses 621 — Resource Apartment REIT III: Reimbursement of costs and expenses 261 — LEAF: Payment for sub-servicing the commercial finance investment partnerships (12 ) (23 ) Reimbursement of net costs and expenses 36 36 1845 Walnut Associates Ltd: Payment for rent and related expenses (214 ) (207 ) Property management fees 47 38 Brandywine Construction & Management, Inc.: payment for property management of hotel property (52 ) (52 ) Atlas Energy, L.P.: reimbursement of net costs and expenses 29 13 Ledgewood P.C.: payment for legal services (35 ) (34 ) Graphic Images, LLC: payment for printing services (26 ) (48 ) 9 Henmar LLC: payment of broker/consulting fees (3 ) (3 ) (1) Includes discounts recorded (reversed) of $6,000 and $(207,000) for the three months ended March 31, 2016 and March 31, 2015 , respectively, in connection with management fees from the Company's real estate investment entities that it expects to receive in future periods. (2) The Company waived management fees from its commercial finance investment entities of $7,000 during the three months ended March 31, 2016 and $49,000 during the three months ended March 31, 2015 . |
OTHER INCOME (Tables)
OTHER INCOME (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other income, net | The following table details other income, net (in thousands): Three Months Ended March 31, 2016 2015 RSO dividends $ 300 $ 458 Interest income 214 104 Other expense, net (7 ) (248 ) Other income, net $ 507 $ 314 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Company's Asset Recorded at Fair Value on Recurring Basis | The fair value of the Company’s assets and liability recorded at fair value on a recurring basis were as follows (in thousands): Level 1 Level 2 Level 3 Total Assets - Investment securities Investment securities $ 9,912 $ — $ 9,236 $ 19,148 Pelium securities — — 25,610 25,610 March 31, 2016 $ 9,912 $ — $ 34,846 $ 44,758 Investment securities $ 11,062 $ — $ 9,898 $ 20,960 Pelium securities — — 24,712 24,712 December 31, 2015 $ 11,062 $ — $ 34,610 $ 45,672 Liability - Apidos contractual commitment Level 1 Level 2 Level 3 Total March 31, 2016 $ — $ — $ 414 $ 414 December 31, 2015 — — 615 615 |
Additional Information about Assets Measured at Fair Value on Recurring Basis for which the Company Has Utilized Level 3 Inputs to Determine Fair Value | The following table presents additional information about assets which were measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value during three months ended March 31, 2016 (in thousands): Investment Securities Pelium Securities Total Balance, beginning of year $ 9,898 $ 24,712 $ 34,610 Purchases 732 4,464 5,196 Income accreted 297 — 297 Payments and distributions received, net (467 ) (1,398 ) (1,865 ) Sales (666 ) (2,912 ) (3,578 ) Impairment (98 ) — (98 ) Realized gains on CDOs 498 — 498 Gains on trading securities — 460 460 Unrealized holding gains on trading securities 22 284 306 Change in unrealized gains included in accumulated other comprehensive loss (980 ) — (980 ) Balance, end of period $ 9,236 $ 25,610 $ 34,846 The following table presents additional information about assets which were measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value during year ended December 31, 2015 (in thousands): Investment Securities Pelium Securities Total Balance, beginning of year $ 8,489 $ 17,366 $ 25,855 Purchases 2,524 27,630 30,154 Income accreted 1,238 — 1,238 Payments and distributions received, net (1,913 ) (2,874 ) (4,787 ) Sales (174 ) (16,012 ) (16,186 ) Impairment (331 ) — (331 ) Gains (losses) on sales of trading securities (14 ) 1,415 1,401 Unrealized holding gains on trading securities 269 (2,813 ) (2,544 ) Change in unrealized gains included in accumulated other comprehensive loss (190 ) — (190 ) Balance, end of period $ 9,898 $ 24,712 $ 34,610 |
Quantitative Inputs and Assumptions in Determining the Fair Value of Items Categorized in Level 3 | The following table presents the Company's quantitative inputs and assumptions used in determining the fair value of items categorized in Level 3 (in thousands, except percentages): Fair value at March 31, 2016 Valuation Technique Unobservable Inputs Assumptions (weighted average) CLO securities $ 7,794 Discounted cash flow Constant default rate 1% - 2% Loss severity rate 25% Constant prepayment rate 25% Reinvestment price on collateral 99% Reinvestment spread 0% - 4.50% Discount rates 15% Trading securities $ 1,442 Net asset value Value of underlying assets variable Discounted cash flow Constant default rate 5% Constant prepayment rate 30% Loss severity rate 30% |
Fair Value of Financial Instruments | The fair value of financial instruments required to be disclosed at fair value, excluding instruments valued on a recurring basis, is as follows (in thousands): March 31, 2016 December 31, 2015 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Borrowings: Real estate debt $ 9,822 $ 10,689 $ 9,877 $ 10,618 Senior Notes 10,000 12,553 10,000 12,202 Other debt 775 775 870 870 $ 20,597 $ 24,017 $ 20,747 $ 23,690 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Foreign Currency Forward Contracts | As of March 31, 2016 , the Company had the following outstanding foreign currency forward contracts outstanding (in thousands): Derivatives Number of Instruments Notional Amount Maturity Date Foreign currency forward contracts 2 $ 2,676 August 5, 2016 |
Schedule of Interest Rate Derivatives | The table below presents the fair value of the Company's derivative financial instruments, which are included in accrued expenses and other liabilities on the consolidated balance sheets (in thousands): Liability Derivatives March 31, 2016 Balance Sheet Fair Value Foreign currency forward contracts $64 |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Summarized Operating Segment Data | Summarized operating segment data are as follows (in thousands): Three Months Ended Real Financial Commercial All (1) Total Revenues from external customers $ 17,717 $ 5,038 $ 80 $ — $ 22,835 Equity in earnings (losses) of unconsolidated entities 1,446 1,691 (4 ) — 3,133 Total revenues 19,163 6,729 76 — 25,968 Segment operating expenses (11,018 ) (3,680 ) (392 ) — (15,090 ) General and administrative expenses (1,325 ) (368 ) — (3,190 ) (4,883 ) Provision for credit losses (4 ) — (105 ) — (109 ) Depreciation and amortization (314 ) (16 ) — (174 ) (504 ) Gain (loss) on sale of investment securities, net — 498 — — 498 Impairment on available for sale securities — (98 ) — — (98 ) Interest expense (171 ) — — (269 ) (440 ) Other income (expense), net 306 296 9 (104 ) 507 Pretax loss (income) attributable to noncontrolling interests (2) (5 ) (361 ) — — (366 ) Income (loss) from continuing operations, net of noncontrolling interests before taxes $ 6,632 $ 3,000 $ (412 ) $ (3,737 ) $ 5,483 Three Months Ended Real Financial Commercial All (1) Total Revenues from external customers $ 16,294 $ 4,867 $ 13 $ — $ 21,174 Equity in (losses) earnings of unconsolidated entities 672 2,008 (15 ) — 2,665 Total revenues 16,966 6,875 (2 ) — 23,839 Segment operating expenses (11,499 ) (3,063 ) (579 ) — (15,141 ) General and administrative expenses (879 ) (284 ) — (2,134 ) (3,297 ) Reversal of (provision for) credit losses (114 ) — (288 ) — (402 ) Depreciation and amortization (312 ) (16 ) — (129 ) (457 ) Interest expense (183 ) — — (238 ) (421 ) Other income, net 223 441 1 (351 ) 314 Pretax loss (income) attributable to noncontrolling interests (2) 8 (1,665 ) — — (1,657 ) Income (loss) from continuing operations, net of noncontrolling interests before taxes $ 4,210 $ 2,288 $ (868 ) $ (2,852 ) $ 2,778 Segment assets Real Financial Commercial All (1) Total March 31, 2016 $ 212,594 $ 90,798 $ 3,090 $ (101,896 ) $ 204,586 March 31, 2015 $ 191,693 $ 108,794 $ 4,173 $ (75,309 ) $ 229,351 (1) Includes general corporate expenses and assets not allocable to any particular segment. (2) In viewing its segment operations, the Company includes the pretax income attributable to noncontrolling interests. However, these interests are excluded from income (loss) from operations as computed in accordance with U.S. GAAP and should be deducted to compute income from operations as reflected in the Company’s consolidated statements of operations. |
NATURE OF OPERATIONS (Details)
NATURE OF OPERATIONS (Details) | Feb. 06, 2016USD ($) | Oct. 05, 2015USD ($)$ / shares | Dec. 31, 2013USD ($) | Mar. 31, 2016USD ($)PartnershipTenant_in_CommonFundEntity | Dec. 31, 2015USD ($)Entity | Jul. 31, 2015Entity |
Variable Interest Entity [Line Items] | ||||||
Investments in real estate, net | $ 15,752,000 | $ 16,022,000 | ||||
Resource Capital Partners Inc | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of tenant in common programs | Tenant_in_Common | 3 | |||||
Resource Financial Institutions Group, Inc. | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of partnerships in which the company serves as general partner | Partnership | 7 | |||||
LEAF Financial Corporation | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of real estate investments managed by related parties | Entity | 1 | 2 | 1 | |||
RRE Opportunity REIT II | ||||||
Variable Interest Entity [Line Items] | ||||||
Investments in real estate, net | $ 634,900,000 | |||||
Real Estate Limited Partnership | Resource Capital Partners Inc | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of partnerships in which the company serves as general partner | Partnership | 5 | |||||
Pearlmark Real Estate Partners | ||||||
Variable Interest Entity [Line Items] | ||||||
Ownership percentage | 50.00% | |||||
CVC Credit Partners | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of real estate investments managed by related parties | Fund | 3 | |||||
IPO | Resource Real Estate Opportunity REIT Inc | ||||||
Variable Interest Entity [Line Items] | ||||||
Proceeds from IPO | $ 635,000,000 | |||||
Investments in real estate, net | $ 1,000,000,000 | |||||
IPO | RRE Opportunity REIT II | ||||||
Variable Interest Entity [Line Items] | ||||||
Proceeds from IPO | $ 556,000,000 | |||||
IPO | Innovation Office REIT | Innovation Office REIT | ||||||
Variable Interest Entity [Line Items] | ||||||
Initial public offering, amount of offering | $ 1,000,000,000 | |||||
Common Class A | IPO | Innovation Office REIT | ||||||
Variable Interest Entity [Line Items] | ||||||
Share price (in dollars per share) | $ / shares | $ 10.27 | |||||
Common Class T | IPO | Innovation Office REIT | ||||||
Variable Interest Entity [Line Items] | ||||||
Share price (in dollars per share) | $ / shares | $ 10 |
SUPPLEMENTAL CASH FLOW INFORM49
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash (paid) received: | ||
Interest | $ (401) | $ (399) |
Income tax payments | (1,728) | (65) |
Refund of income taxes | $ 0 | $ 44 |
Dividends declared per common share (in usd per share) | $ 0.06 | $ 0.05 |
Non-cash activities: | ||
Repurchase of common stock from employees in exchange for the payment of income taxes | $ 174 | $ 165 |
Issuance of treasury stock for the Company's investment savings 401(k) plan | $ 302 | $ 150 |
FINANCING RECEIVABLES (Past Due
FINANCING RECEIVABLES (Past Due Financing Receivables) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Loans and receivables from managed entities and related parties: | ||
Current | $ 11,013 | $ 12,333 |
Total Past Due | 11,613 | 14,540 |
Total | 22,626 | 26,873 |
Commercial finance investment entities | ||
Loans and receivables from managed entities and related parties: | ||
Current | 0 | 0 |
Total Past Due | 1,044 | 1,289 |
Total | 1,044 | 1,289 |
Real estate investment entities | ||
Loans and receivables from managed entities and related parties: | ||
Current | 3,832 | 7,909 |
Total Past Due | 10,482 | 13,237 |
Total | 14,314 | 21,146 |
Financial fund management entities | ||
Loans and receivables from managed entities and related parties: | ||
Current | 1,191 | 1,582 |
Total Past Due | 80 | 0 |
Total | 1,271 | 1,582 |
RSO | ||
Loans and receivables from managed entities and related parties: | ||
Current | 2,888 | 2,331 |
Total Past Due | 0 | 0 |
Total | 2,888 | 2,331 |
Other | ||
Loans and receivables from managed entities and related parties: | ||
Current | 2,910 | 319 |
Total Past Due | 0 | 0 |
Total | 2,910 | 319 |
Receivables from Managed Entities | ||
Loans and receivables from managed entities and related parties: | ||
Current | 10,821 | 12,141 |
Total Past Due | 11,606 | 14,526 |
Total | 22,427 | 26,667 |
Rent receivables - real estate | ||
Loans and receivables from managed entities and related parties: | ||
Current | 192 | 192 |
Total Past Due | 7 | 14 |
Total | 199 | 206 |
30-89 Days Past Due | ||
Loans and receivables from managed entities and related parties: | ||
Total Past Due | 380 | 416 |
30-89 Days Past Due | Commercial finance investment entities | ||
Loans and receivables from managed entities and related parties: | ||
Total Past Due | 18 | 16 |
30-89 Days Past Due | Real estate investment entities | ||
Loans and receivables from managed entities and related parties: | ||
Total Past Due | 330 | 392 |
30-89 Days Past Due | Financial fund management entities | ||
Loans and receivables from managed entities and related parties: | ||
Total Past Due | 31 | 0 |
30-89 Days Past Due | RSO | ||
Loans and receivables from managed entities and related parties: | ||
Total Past Due | 0 | 0 |
30-89 Days Past Due | Other | ||
Loans and receivables from managed entities and related parties: | ||
Total Past Due | 0 | 0 |
30-89 Days Past Due | Receivables from Managed Entities | ||
Loans and receivables from managed entities and related parties: | ||
Total Past Due | 379 | 408 |
30-89 Days Past Due | Rent receivables - real estate | ||
Loans and receivables from managed entities and related parties: | ||
Total Past Due | 1 | 8 |
90-180 Days Past Due | ||
Loans and receivables from managed entities and related parties: | ||
Total Past Due | 844 | 965 |
90-180 Days Past Due | Commercial finance investment entities | ||
Loans and receivables from managed entities and related parties: | ||
Total Past Due | 60 | 73 |
90-180 Days Past Due | Real estate investment entities | ||
Loans and receivables from managed entities and related parties: | ||
Total Past Due | 755 | 890 |
90-180 Days Past Due | Financial fund management entities | ||
Loans and receivables from managed entities and related parties: | ||
Total Past Due | 28 | 0 |
90-180 Days Past Due | RSO | ||
Loans and receivables from managed entities and related parties: | ||
Total Past Due | 0 | 0 |
90-180 Days Past Due | Other | ||
Loans and receivables from managed entities and related parties: | ||
Total Past Due | 0 | 0 |
90-180 Days Past Due | Receivables from Managed Entities | ||
Loans and receivables from managed entities and related parties: | ||
Total Past Due | 843 | 963 |
90-180 Days Past Due | Rent receivables - real estate | ||
Loans and receivables from managed entities and related parties: | ||
Total Past Due | 1 | 2 |
Greater than 181 Days | ||
Loans and receivables from managed entities and related parties: | ||
Total Past Due | 10,389 | 13,159 |
Greater than 181 Days | Commercial finance investment entities | ||
Loans and receivables from managed entities and related parties: | ||
Total Past Due | 966 | 1,200 |
Greater than 181 Days | Real estate investment entities | ||
Loans and receivables from managed entities and related parties: | ||
Total Past Due | 9,397 | 11,955 |
Greater than 181 Days | Financial fund management entities | ||
Loans and receivables from managed entities and related parties: | ||
Total Past Due | 21 | 0 |
Greater than 181 Days | RSO | ||
Loans and receivables from managed entities and related parties: | ||
Total Past Due | 0 | 0 |
Greater than 181 Days | Other | ||
Loans and receivables from managed entities and related parties: | ||
Total Past Due | 0 | 0 |
Greater than 181 Days | Receivables from Managed Entities | ||
Loans and receivables from managed entities and related parties: | ||
Total Past Due | 10,384 | 13,155 |
Greater than 181 Days | Rent receivables - real estate | ||
Loans and receivables from managed entities and related parties: | ||
Total Past Due | $ 5 | $ 4 |
FINANCING RECEIVABLES (Allowanc
FINANCING RECEIVABLES (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Activity in the allowance for credit losses of financing receivables [Roll Forward] | |||
Balance, beginning of period | $ 135 | $ 16,990 | |
Provision for (reversal) of credit losses | 109 | 402 | |
(Charge-offs) recoveries | (242) | (32) | |
Recoveries | 27 | ||
Balance, end of period | 29 | 17,360 | |
Ending balance, individually evaluated for impairment | 29 | 17,360 | |
Ending balance, collectively evaluated for impairment | 0 | 0 | |
Ending balance, individually evaluated for impairment | 22,427 | $ 26,667 | |
Ending balance, collectively evaluated for impairment | 199 | 206 | |
Balance, end of period | 22,626 | 26,873 | |
Receivables from Managed Entities | |||
Activity in the allowance for credit losses of financing receivables [Roll Forward] | |||
Balance, beginning of period | 0 | 16,990 | |
Provision for (reversal) of credit losses | 0 | 369 | |
(Charge-offs) recoveries | 0 | 0 | |
Recoveries | 0 | ||
Balance, end of period | 0 | 17,359 | |
Ending balance, individually evaluated for impairment | 0 | 17,359 | |
Ending balance, collectively evaluated for impairment | 0 | 0 | |
Ending balance, individually evaluated for impairment | 22,427 | 26,667 | |
Ending balance, collectively evaluated for impairment | 0 | 0 | |
Balance, end of period | 22,427 | 26,667 | |
Leases and Loans | |||
Activity in the allowance for credit losses of financing receivables [Roll Forward] | |||
Balance, beginning of period | 130 | 0 | |
Provision for (reversal) of credit losses | 105 | 32 | |
(Charge-offs) recoveries | (242) | (32) | |
Recoveries | 27 | ||
Balance, end of period | 20 | 0 | |
Ending balance, individually evaluated for impairment | 20 | 0 | |
Ending balance, collectively evaluated for impairment | 0 | 0 | |
Rent Receivables | |||
Activity in the allowance for credit losses of financing receivables [Roll Forward] | |||
Balance, beginning of period | 5 | 0 | |
Provision for (reversal) of credit losses | 4 | 1 | |
(Charge-offs) recoveries | 0 | 0 | |
Recoveries | 0 | ||
Balance, end of period | 9 | 1 | |
Ending balance, individually evaluated for impairment | 9 | 1 | |
Ending balance, collectively evaluated for impairment | $ 0 | ||
Ending balance, individually evaluated for impairment | 0 | 0 | |
Ending balance, collectively evaluated for impairment | 199 | 206 | |
Balance, end of period | $ 199 | $ 206 |
FINANCING RECEIVABLES (Impaired
FINANCING RECEIVABLES (Impaired Financing Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Financing Receivables Without a Specific Valuation Allowance | ||
Impaired financing receivables [Abstract] | ||
Specific Allowance | $ 0 | $ 0 |
Loans and receivables from managed entities – commercial finance | Financing Receivables With a Specific Valuation Allowance | ||
Impaired financing receivables [Abstract] | ||
Net Balance | 0 | |
Unpaid Balance | 0 | |
Specific Allowance | 0 | |
Average Investment in Impaired Assets | 13,788 | |
Rent receivables - real estate | Financing Receivables With a Specific Valuation Allowance | ||
Impaired financing receivables [Abstract] | ||
Net Balance | 0 | 0 |
Unpaid Balance | 0 | 0 |
Specific Allowance | 9 | 5 |
Average Investment in Impaired Assets | $ 0 | $ 0 |
FINANCING RECEIVABLES (Narrativ
FINANCING RECEIVABLES (Narrative) (Details) | Mar. 31, 2016USD ($)leaseEntity | Dec. 31, 2015USD ($)leaseEntity | Jul. 31, 2015Entity |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Current | $ 11,013,000 | $ 12,333,000 | |
Weighted average lease, amount | $ 16,800 | $ 18,100 | |
Number of leases, loan portfolio | lease | 41 | 60 | |
Weighted average lease term | 21 months | 15 months | |
Financing Receivables Without a Specific Valuation Allowance | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Impaired financing receivable | $ 0 | $ 0 | |
Financing Receivables, 1 to 29 Days Past Due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable, percent past due | 92.00% | 80.00% | |
30-89 Days Past Due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable, percent past due | 8.00% | 5.00% | |
Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable, percent past due | 15.00% | ||
Commercial Real Estate Portfolio Segment | Other Assets | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Current | $ 687,000 | $ 1,100,000 | |
LEAF Financial Corporation | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of real estate investments managed by related parties | Entity | 1 | 2 | 1 |
LEAF Financial Corporation | Commercial Real Estate Portfolio Segment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of real estate investments managed by related parties | Entity | 2 |
INVESTMENTS IN REAL ESTATE (Inv
INVESTMENTS IN REAL ESTATE (Investments in Real Estate) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Properties owned, net of accumulated depreciation [Line Items] | |||
Real Estate Investment Property, Net | $ 15,752 | $ 16,022 | |
Rental income | 1,200 | $ 1,200 | |
Hotel property (Savannah, Georgia) | |||
Properties owned, net of accumulated depreciation [Line Items] | |||
Real Estate Investment Property, Net | 9,456 | 9,757 | |
Office building (Philadelphia, Pennsylvania) | |||
Properties owned, net of accumulated depreciation [Line Items] | |||
Real Estate Investment Property, Net | 861 | 877 | |
Total Properties Owned | |||
Properties owned, net of accumulated depreciation [Line Items] | |||
Real Estate Investment Property, Net | 10,317 | 10,634 | |
Real Estate Accumulated Depreciation | 9,894 | 9,752 | |
Partnerships and other investments | |||
Properties owned, net of accumulated depreciation [Line Items] | |||
Real Estate Investment Property, Net | $ 5,435 | $ 5,388 |
INVESTMENTS IN REAL ESTATE (Ope
INVESTMENTS IN REAL ESTATE (Operating Leases) (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Real Estate Investments, Net [Abstract] | |
2,017 | $ 1,010 |
2,018 | 1,038 |
2,019 | 960 |
2,020 | 689 |
2,021 | 566 |
Thereafter | 315 |
Total | $ 4,578 |
INVESTMENT SECURITIES (Narrativ
INVESTMENT SECURITIES (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016USD ($)FacilityIssuershares | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($)Issuer | |
Schedule of Available-for-sale Securities [Line Items] | |||
Discount rates | 15.00% | ||
Impairment | $ 98 | $ 331 | |
Purchase of investment | 732 | $ 819 | |
Unrealized (gain) loss on trading securities | 0 | 776 | |
Trading securities | 1,442 | $ 1,451 | |
RAI | |||
Schedule of Available-for-sale Securities [Line Items] | |||
(Gain) loss on trading securities | (22) | (5) | |
Unrealized (gain) loss on trading securities | $ 22 | 20 | |
CLO securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Number of CDO issuers that represent the retained equity interest | Issuer | 14 | 15 | |
Discount rates | 15.00% | ||
Equity securities | RSO | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Number of shares held (in shares) | shares | 715,396 | ||
Equity securities | TBBK | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Number of shares held (in shares) | shares | 18,972 | ||
Number of secured corporate credit facilities | Facility | 1 | ||
Equity securities | RREDX | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Number of shares held (in shares) | shares | 10,808 | ||
Purchase of investment | 104 | ||
Equity securities | Resource Credit Income Fund | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Purchase of investment | $ 1,700 | ||
Pelium | |||
Schedule of Available-for-sale Securities [Line Items] | |||
(Gain) loss on trading securities | (405) | (683) | |
Unrealized (gain) loss on trading securities | 326 | $ 474 | |
Trading securities | $ 25,610 | $ 24,712 |
INVESTMENT SECURITIES (Componen
INVESTMENT SECURITIES (Components of Investment Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | $ 17,706 | $ 19,509 |
Trading securities | 1,442 | 1,451 |
Investment securities, at fair value | 44,758 | 45,672 |
Pelium | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Trading securities | 25,610 | 24,712 |
Investment securities, at fair value | $ 25,610 | $ 24,712 |
INVESTMENT SECURITIES (Pre-tax
INVESTMENT SECURITIES (Pre-tax Unrealized Gains (Losses) Relating to Investments in Available-for-Sale Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 20,696 | $ 20,369 |
Unrealized Gains | 111 | 940 |
Unrealized Losses | (3,101) | (1,800) |
Fair Value | 17,706 | 19,509 |
CLO securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 7,912 | 7,585 |
Unrealized Gains | 111 | 928 |
Unrealized Losses | (229) | (66) |
Fair Value | 7,794 | 8,447 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 12,784 | 12,784 |
Unrealized Gains | 12 | |
Unrealized Losses | $ (2,872) | (1,734) |
Fair Value | $ 9,912 | $ 11,062 |
INVESTMENT SECURITIES (Availabl
INVESTMENT SECURITIES (Available-for-sale Securities, Continuous Unrealized Loss Position) (Details) $ in Thousands | Mar. 31, 2016USD ($)Security | Dec. 31, 2015USD ($)Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 6,115 | $ 3,847 |
Unrealized Losses | $ (238) | $ (48) |
Number of Securities | Security | 10 | 5 |
Fair Value | $ 8,775 | $ 9,933 |
Unrealized Losses | $ (2,863) | $ (1,752) |
Number of Securities | Security | 3 | 3 |
CLO securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 4,292 | $ 2,033 |
Unrealized Losses | $ (170) | $ (38) |
Number of Securities | Security | 8 | 3 |
Fair Value | $ 727 | $ 805 |
Unrealized Losses | $ (59) | $ (28) |
Number of Securities | Security | 2 | 2 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 1,823 | $ 1,814 |
Unrealized Losses | $ (68) | $ (10) |
Number of Securities | Security | 2 | 2 |
Fair Value | $ 8,048 | $ 9,128 |
Unrealized Losses | $ (2,804) | $ (1,724) |
Number of Securities | Security | 1 | 1 |
Pelium | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 9,483 | $ 15,953 |
Unrealized Losses | $ (2,315) | $ (4,733) |
Number of Securities | Security | 22 | 25 |
Fair Value | $ 2,166 | $ 1,183 |
Unrealized Losses | $ (615) | $ (503) |
Number of Securities | Security | 10 | 7 |
Pelium | CLO securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 6,128 | $ 10,156 |
Unrealized Losses | $ (1,043) | $ (3,312) |
Number of Securities | Security | 16 | 18 |
Fair Value | $ 2,166 | $ 1,183 |
Unrealized Losses | $ (615) | $ (503) |
Number of Securities | Security | 10 | 7 |
Pelium | CMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 3,355 | $ 2,940 |
Unrealized Losses | $ (1,272) | $ (1,278) |
Number of Securities | Security | 6 | 5 |
Fair Value | $ 0 | $ 0 |
Unrealized Losses | $ 0 | $ 0 |
Number of Securities | Security | 0 | 0 |
Pelium | Other | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 0 | $ 2,857 |
Unrealized Losses | $ 0 | $ (143) |
Number of Securities | Security | 0 | 2 |
Fair Value | $ 0 | $ 0 |
Unrealized Losses | $ 0 | $ 0 |
Number of Securities | Security | 0 | 0 |
INVESTMENTS IN UNCONSOLIDATED60
INVESTMENTS IN UNCONSOLIDATED ENTITIES AND LOAN MANAGER (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jul. 31, 2015 | Apr. 30, 2012 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 |
Schedule of Equity Method Investments [Line Items] | ||||||
Investments In Unconsolidated Real Estate Entities | $ 3,540 | $ 21 | ||||
Investments in unconsolidated entities | $ 21,168 | $ 17,553 | ||||
Preferred equity interest retained as a percentage of incentive management fees | 75.00% | |||||
Innovation Office REIT | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments In Unconsolidated Real Estate Entities | $ 2,000 | |||||
Resource Real Estate Opportunity REIT Inc | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Cost method investment | 2,500 | |||||
RRE Opportunity REIT II | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Cost method investment | 1,300 | |||||
Pearlmark Real Estate Partners | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments In Unconsolidated Real Estate Entities | 1,500 | |||||
Cost method investment | 7,000 | |||||
Real estate investments, joint ventures | 6,200 | |||||
Pearlmark Mezzanine Realty Partners IV, L.P. | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Cost method investment | 378 | |||||
Financial fund management partnerships | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in unconsolidated entities | 6,700 | $ 6,754 | ||||
CVC Credit Partners | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Cost method investment | 4,800 | |||||
Equity method investment, impairment | $ 4,300 | 2,000 | ||||
Innovation Office REIT | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Cost method investment | 2,200 | |||||
Apartment REIT III | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Cost method investment | 200 | |||||
Parent Company | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Proceeds from divestiture of interest in consolidated subsidiaries | $ 25,000 | |||||
CVC Credit Partners, L.P. | Financial fund management partnerships | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in unconsolidated entities | 3,400 | |||||
CVC Credit Partners, L.P. | RFIG Partnership | Financial fund management partnerships | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in unconsolidated entities | 2,500 | |||||
CVC Credit Partners, L.P. | RCM Global Manager, LLC | Financial fund management partnerships | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in unconsolidated entities | $ 816 | |||||
Limited Partner | CVC Credit Partners, L.P. | Parent Company | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage interest in limited partnership formed | 24.00% | 33.00% | ||||
Irrevocable option to buy interests | 9.00% | |||||
General Partner | Parent Company | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Preferred equity interest retained as a percentage of incentive management fees | 75.00% | |||||
General Partner | CVC Credit Partners, L.P. | Parent Company | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage interest In general partnership formed | 33.00% |
INVESTMENTS IN UNCONSOLIDATED61
INVESTMENTS IN UNCONSOLIDATED ENTITIES AND LOAN MANAGER (Investment Vehicles, Including the Range of Interests it Owns) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Equity Method Investments [Line Items] | ||
Investments in unconsolidated entities | $ 21,168 | $ 17,553 |
Real estate investment entities | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in unconsolidated entities | $ 13,717 | 10,169 |
Real estate investment entities | Minimum | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 1.00% | |
Real estate investment entities | Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 8.00% | |
Financial fund management partnerships | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in unconsolidated entities | $ 6,700 | 6,754 |
Financial fund management partnerships | Minimum | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 0.01% | |
Financial fund management partnerships | Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 50.00% | |
Trapeza entities | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in unconsolidated entities | $ 751 | $ 630 |
Trapeza entities | Minimum | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 33.00% | |
Trapeza entities | Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 50.00% |
INVESTMENTS IN UNCONSOLIDATED62
INVESTMENTS IN UNCONSOLIDATED ENTITIES AND LOAN MANAGER (Summary Operating Data for Unconsolidated Investment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||
Portion of net income (loss) attributable to the Company | $ 3,133 | $ 2,350 |
CVC Credit Partners | ||
Schedule of Equity Method Investments [Line Items] | ||
Management fee revenues | 19,961 | 16,738 |
Costs and expenses | (16,146) | (14,809) |
Net income | 3,815 | 1,929 |
Portion of net income (loss) attributable to the Company | $ 916 | $ 637 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - Pelium $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Variable Interest Entity [Line Items] | |
Variable interest entity, ownership amount | $ 5 |
Variable interest entity, ownership percentage | 20.00% |
VARIABLE INTEREST ENTITIES (Var
VARIABLE INTEREST ENTITIES (Variable Interest Entities, Consolidated) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Variable Interest Entity [Line Items] | ||||
Cash | $ 18,348 | $ 24,132 | $ 27,521 | $ 33,947 |
Receivables | 3,082 | 3,228 | ||
Investment securities, at fair value | 44,758 | 45,672 | ||
Other assets | 13,781 | 9,733 | ||
Total assets | 204,586 | 211,195 | ||
Accrued expenses and other liabilities | 22,502 | 27,184 | ||
Pelium | ||||
Variable Interest Entity [Line Items] | ||||
Cash | 570 | 377 | ||
Receivables | 2,377 | 2,345 | ||
Investment securities, at fair value | 25,610 | 24,712 | ||
Other assets | 93 | 98 | ||
Total assets | 28,650 | 27,532 | ||
Accrued expenses and other liabilities | $ 766 | $ 99 |
VARIABLE INTEREST ENTITIES (V65
VARIABLE INTEREST ENTITIES (Variable Intererest Entities, Not Consolidated) (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Variable Interest Entity [Line Items] | |
Variable interest entity | $ 751 |
Maximum Exposure to Loss in Non-consolidated VIEs | 751 |
Receivables from Managed Entities | |
Variable Interest Entity [Line Items] | |
Variable interest entity | 0 |
Ischus entities | Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Variable interest entity | 0 |
Maximum Exposure to Loss in Non-consolidated VIEs | 0 |
Ischus entities | Receivables from Managed Entities | Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Variable interest entity | 0 |
Trapeza entities | Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Variable interest entity | 751 |
Maximum Exposure to Loss in Non-consolidated VIEs | 751 |
Trapeza entities | Receivables from Managed Entities | Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Variable interest entity | $ 0 |
ACCRUED EXPENSES AND OTHER LI66
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Accounts payable and other accrued liabilities | $ 7,762 | $ 7,919 |
Supplemental executive retirement plan (SERP) liability (see Note 14) | 6,297 | 6,454 |
Accrued wages and benefits | 4,283 | 8,036 |
Deferred rent | 2,238 | 2,323 |
Apidos contractual obligation, at fair value (see Notes 7 and 17) | 414 | 615 |
Dividends declared and not yet paid | 1,144 | 1,132 |
Insurance notes | 364 | 705 |
Total accrued expenses and other liabilities | $ 22,502 | $ 27,184 |
BORROWINGS (Credit Facilities a
BORROWINGS (Credit Facilities and Other Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Borrowings Outstanding | $ 20,597 | $ 20,747 |
TD Bank – secured revolving credit facility | ||
Debt Instrument [Line Items] | ||
Maximum Amount of Facility | 6,997 | |
Borrowings Outstanding | 0 | 0 |
Outstanding letters of credit | 503 | |
Republic Bank – secured revolving credit facility | ||
Debt Instrument [Line Items] | ||
Maximum Amount of Facility | 1,969 | 2,200 |
Borrowings Outstanding | 0 | 0 |
Total corporate and real estate borrowings | ||
Debt Instrument [Line Items] | ||
Borrowings Outstanding | 0 | 0 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Borrowings Outstanding | 10,000 | 10,000 |
Mortgage debt - hotel property | ||
Debt Instrument [Line Items] | ||
Borrowings Outstanding | 9,822 | 9,877 |
Other debt | ||
Debt Instrument [Line Items] | ||
Borrowings Outstanding | 775 | $ 870 |
Letters of Credit | ||
Debt Instrument [Line Items] | ||
Outstanding letters of credit | $ 503 |
BORROWINGS (Corporate and Real
BORROWINGS (Corporate and Real Estate Debt) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||||
Nov. 30, 2013 | Feb. 28, 2011 | Mar. 31, 2016 | Jan. 31, 2016 | Dec. 31, 2015 | Apr. 24, 2014 | |
Debt Instrument [Line Items] | ||||||
Borrowings outstanding | $ 20,597,000 | $ 20,747,000 | ||||
Line of credit facility, amount outstanding | 0 | |||||
Mortgage debt - hotel property | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings outstanding | $ 9,822,000 | 9,877,000 | ||||
Interest rate | 6.36% | |||||
Debt instrument, term | 5 years | |||||
TD Bank – secured revolving credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 11,500,000 | $ 7,500,000 | ||||
Required pledged securities | $ 6,000,000 | |||||
Number of consecutive days during each one-year period company may not have cash advances | 30 days | |||||
Unused facility fee | 0.50% | |||||
Line of credit facility commitment fee percentage on outstanding lines of credit | 5.25% | |||||
Borrowings outstanding | $ 0 | 0 | ||||
Availability on the line of credit facility | $ 7,500,000 | |||||
Maximum Amount of Facility | $ 6,997,000 | |||||
TD Bank – secured revolving credit facility | TBBK common stock | ||||||
Debt Instrument [Line Items] | ||||||
Number of securities pledged (in shares) | 18,972 | |||||
TD Bank – secured revolving credit facility | RSO common stock | ||||||
Debt Instrument [Line Items] | ||||||
Number of securities pledged (in shares) | 540,168 | |||||
TD Bank – secured revolving credit facility | Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Description of variable rate basis | prime rate | |||||
Basis spread on variable rate | 2.25% | |||||
TD Bank – secured revolving credit facility | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Description of variable rate basis | LIBOR | |||||
Basis spread on variable rate | 3.00% | |||||
TD Bank – secured revolving credit facility | LIBOR | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
LIBOR rate range | 1 month | |||||
TD Bank – secured revolving credit facility | LIBOR | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
LIBOR rate range | 6 months | |||||
Republic Bank – secured revolving credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 3,500,000 | |||||
Unused facility fee | 0.50% | 0.25% | ||||
Borrowings outstanding | $ 0 | 0 | ||||
Percentage of appraised value of the real estate under maximum borrowing facility under option one | 25.00% | |||||
Percentage of cash under maximum borrowing facility under option one | 100.00% | |||||
Percentage of market value of securities pledged under maximum borrowing facility under option one | 75.00% | |||||
Percentage of cash under maximum borrowing facility under option two | 100.00% | |||||
Percentage of market value of securities pledged under maximum borrowing facility under option two | 100.00% | |||||
Maximum Amount of Facility | $ 1,969,000 | $ 2,200,000 | ||||
Republic Bank – secured revolving credit facility | RSO common stock | ||||||
Debt Instrument [Line Items] | ||||||
Number of securities pledged (in shares) | 175,000 | |||||
Republic Bank – secured revolving credit facility | Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Description of variable rate basis | prime rate | |||||
Basis spread on variable rate | 1.00% | |||||
Prime borrowings floor interest rate | 4.50% |
BORROWINGS (Senior Notes and Ot
BORROWINGS (Senior Notes and Other Debt) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Debt Instrument [Line Items] | ||
Debt instrument, redemption price, percentage | 101.00% | |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Remaining balance | $ 10 | |
Interest rate | 9.00% | |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 9.10% | 9.10% |
BORROWINGS (Other Debt - Real E
BORROWINGS (Other Debt - Real Estate and Corporate) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Borrowings | $ 20,597,000 | $ 20,747,000 |
Mortgage debt | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.36% | |
Debt instrument, periodic payment | $ 71,331 | |
Borrowings | $ 9,822,000 | $ 9,877,000 |
BORROWINGS (Debt Repayments) (D
BORROWINGS (Debt Repayments) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
2,017 | $ 609 | |
2,018 | 10,603 | |
2,019 | 297 | |
2,020 | 276 | |
2,021 | 296 | |
Thereafter | 8,516 | |
Total | $ 20,597 | $ 20,747 |
ACCUMULATED OTHER COMPREHENSI72
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Changes in Accumulated Other Comprehensive Income (Loss) by Category) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Changes in Accumulated Other Comprehensive Income (Loss) by Category [Roll Forward] | |||
Investment Securities Available-for-Sale balance, beginning of the year | $ (34) | ||
Cash Flow Hedges balance, beginning of the year | 0 | ||
Foreign Currency Translation Adjustments, beginning of the year | (8) | ||
SERP Pension Liability balance, beginning of the year | (3,491) | ||
Total balance, beginning of the year | (3,533) | ||
Investment Securities Available-for-Sale, Current-period other comprehensive (loss) income | (1,390) | $ (941) | |
Current period changes for cash flow hedges | 0 | ||
Current period changes for foreign currency translation adjustments | 0 | 2 | |
Current-period other comprehensive (loss) income, SERP Pension Liability | 70 | $ 47 | |
Current period changes, total | (1,320) | ||
Investment Securities Available-for-Sale balance, end of the year | (1,424) | $ (34) | |
Cash Flow Hedges balance, end of the year | 0 | 0 | |
Foreign Currency Translation Adjustments, end of the year | (8) | (8) | |
SERP Pension Liability balance, end of the year | (3,421) | (3,491) | |
Total balance, end of the year | (4,853) | (3,533) | |
Tax portion of investment securities available for sale in accumulated other comprehensive income | (1,353) | (505) | |
Tax portion of cash flow hedges in accumulated other comprehensive income | 0 | 0 | |
Tax portion of foreign currency translation adjustments in accumulated other comprehensive income | 2 | (4) | |
Tax portion of SERP pension liability in accumulated other comprehensive income | $ (2,473) | $ (2,524) |
NONCONTROLLING INTERESTS (Detai
NONCONTROLLING INTERESTS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Activity in noncontrolling interests [Roll Forward] | ||
Noncontrolling interests, beginning of year | $ 22,356 | |
Net income (loss) attributable to noncontrolling interests | 366 | $ 1,657 |
Noncontrolling interests, end of period | 22,736 | |
Noncontrolling Interests | RAI | ||
Activity in noncontrolling interests [Roll Forward] | ||
Noncontrolling interests, beginning of year | 22,356 | |
Net income (loss) attributable to noncontrolling interests | 366 | |
Other | 14 | |
Noncontrolling interests, end of period | $ 22,736 |
EARNINGS PER SHARE (Reconciliat
EARNINGS PER SHARE (Reconciliation) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Basic shares outstanding (in shares) | 20,611 | 22,965 |
Dilutive effect of outstanding director units and stock options (in shares) | 278 | 274 |
Diluted shares outstanding (in shares) | 20,889 | 23,239 |
BENEFIT PLANS (Narrative) (Deta
BENEFIT PLANS (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Restricted stock award, number of shares (in shares) | 847,177 | 440,852 |
Restricted stock award, value | $ 4,000 | $ 3,900 |
Chief Executive Officer | SERP | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Benefits paid | $ 838 | |
Performance Shares | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Restricted stock award, number of shares (in shares) | 45,308 | 45,306 |
Restricted stock award, value | $ 411 | $ 420 |
BENEFIT PLANS (Components of Ne
BENEFIT PLANS (Components of Net Periodic Benefit Cost) (Details) - SERP - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 62 | $ 62 |
Less: expected return on plan assets | (10) | (19) |
Plus: amortization of unrecognized loss | 121 | 106 |
Net cost | $ 173 | $ 149 |
CERTAIN RELATIONSHIPS AND REL77
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS (Narrative) (Details) $ in Thousands | Jan. 13, 2016EUR (€) | Mar. 15, 2015USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2016EUR (€) | Dec. 31, 2015USD ($) |
Related Party Transaction [Line Items] | |||||
Due from related parties | $ 22,427 | $ 26,667 | |||
RSO | |||||
Related Party Transaction [Line Items] | |||||
Management agreement term, renewal threshold, percent | 66.00% | 66.00% | |||
Management agreement term | 1 year | ||||
Investor relations, percentage | 50.00% | ||||
Due from related parties | $ 2,888 | 2,331 | |||
Apartment REIT III | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | 1,000 | 739 | |||
Innovation Office REIT | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | 3,000 | 2,400 | |||
Resource Real Estate Opportunity REIT Inc | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | 539 | 277 | |||
RRE Opportunity REIT II | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | $ 580 | $ 4,900 | |||
CVC Credit Partners Group Limited | |||||
Related Party Transaction [Line Items] | |||||
Related party loan receivable, description of variable rate basis | EURIBOR | ||||
Related party loan receivable, maximum borrowing capacity | € | € 3,600,000 | ||||
Related party loan receivable, basis spread on variable rate | 7.00% | ||||
CVC Credit Partners, L.P. | |||||
Related Party Transaction [Line Items] | |||||
Notes receivable, related party | € | € 2,400,000 | ||||
Employees | |||||
Related Party Transaction [Line Items] | |||||
Related party loan receivable, description of variable rate basis | 3-month LIBOR | ||||
Related party loan receivable, basis spread on variable rate | 3.00% | ||||
Due from employee | $ 300 | ||||
Payments to employees | $ 50 | ||||
Quarterly Fee | RSO | |||||
Related Party Transaction [Line Items] | |||||
Asset management fee, percentage | 0.083% | 0.083% |
CERTAIN RELATIONSHIPS AND REL78
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS (Receivables and Payables from Related Party) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||
Receivables from managed entities and related parties, net: | $ 22,427 | $ 26,667 |
Payables due to managed entities and related parties, net: | 2,811 | 3,145 |
Real estate investment entities | ||
Related Party Transaction [Line Items] | ||
Receivables from managed entities and related parties, net: | 14,314 | 21,146 |
Payables due to managed entities and related parties, net: | 2,776 | 3,110 |
Payable to real estate investment entities, self insurance | 2,700 | 3,000 |
Commercial finance investment entity | ||
Related Party Transaction [Line Items] | ||
Receivables from managed entities and related parties, net: | 1,044 | 1,289 |
Financial fund management partnerships | ||
Related Party Transaction [Line Items] | ||
Receivables from managed entities and related parties, net: | 1,271 | 1,582 |
Other | ||
Related Party Transaction [Line Items] | ||
Receivables from managed entities and related parties, net: | 167 | 319 |
Payables due to managed entities and related parties, net: | 35 | 35 |
RSO | ||
Related Party Transaction [Line Items] | ||
Receivables from managed entities and related parties, net: | 2,888 | 2,331 |
CVC Credit Partners | ||
Related Party Transaction [Line Items] | ||
Receivables from managed entities and related parties, net: | $ 2,743 | $ 0 |
CERTAIN RELATIONSHIPS AND REL79
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS (Fees From Unconsolidated Investment Entities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Dividends paid | $ 300 | $ 458 |
Commercial Finance, Four Investment Entities | ||
Related Party Transaction [Line Items] | ||
Amount waived of the fund management fees from commercial finance investment entities | 7 | 49 |
Real estate investment entities | ||
Related Party Transaction [Line Items] | ||
Fees from unconsolidated investment entities: | 3,156 | 2,187 |
Discounts recorded | 6 | (207) |
Financial fund management partnerships | ||
Related Party Transaction [Line Items] | ||
Fees from unconsolidated investment entities: | 774 | 782 |
RSO | ||
Related Party Transaction [Line Items] | ||
Management, incentive and servicing fees | 3,745 | 3,232 |
Reimbursement of related party costs | 1,037 | 1,071 |
Dividends paid | 300 | 458 |
CVC Credit Partners, L.P. | ||
Related Party Transaction [Line Items] | ||
Reimbursement of related party costs | 219 | 229 |
Resource Real Estate Opportunity REIT Inc | ||
Related Party Transaction [Line Items] | ||
Reimbursement of related party costs | 1,275 | 888 |
Dividends paid | 44 | 15 |
Graphic Images, LLC: payment for printing services | (4,617) | (6,305) |
RRE Opportunity REIT II | ||
Related Party Transaction [Line Items] | ||
Reimbursement of related party costs | 578 | 737 |
Dividends paid | 20 | 7 |
Graphic Images, LLC: payment for printing services | (4,790) | (1,012) |
Innovation Office REIT | ||
Related Party Transaction [Line Items] | ||
Reimbursement of related party costs | 621 | 0 |
Apartment REIT III | ||
Related Party Transaction [Line Items] | ||
Reimbursement of related party costs | 261 | 0 |
LEAF | ||
Related Party Transaction [Line Items] | ||
Reimbursement of related party costs | 36 | 36 |
Payment for sub-servicing the commercial finance investment partnerships | (12) | (23) |
1845 Walnut Associates Ltd. | ||
Related Party Transaction [Line Items] | ||
Payment for rent and related expenses | (214) | (207) |
Property management fees | 47 | 38 |
Brandywine Construction & Management, Inc. | ||
Related Party Transaction [Line Items] | ||
Brandywine Construction & Management, Inc.: payment for property management of hotel property | (52) | (52) |
Atlas Energy, L.P. | ||
Related Party Transaction [Line Items] | ||
Reimbursement of related party costs | 29 | 13 |
Ledgewood P.C. | ||
Related Party Transaction [Line Items] | ||
Ledgewood P.C.: payment for legal services | (35) | (34) |
Graphic Images, LLC | ||
Related Party Transaction [Line Items] | ||
Graphic Images, LLC: payment for printing services | (26) | (48) |
9 Henmar LLC | ||
Related Party Transaction [Line Items] | ||
9 Henmar LLC: payment of broker/consulting fees | $ (3) | $ (3) |
OTHER INCOME (Details)
OTHER INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Other Income and Expenses [Abstract] | ||
RSO dividends | $ 300 | $ 458 |
Interest income | 214 | 104 |
Other expense, net | (7) | (248) |
Other income, net | $ 507 | $ 314 |
FAIR VALUE (Narrative) (Details
FAIR VALUE (Narrative) (Details) $ in Thousands | Mar. 31, 2016USD ($)Security | Dec. 31, 2015USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of securities held | 6 | |
Debt or Equity Investments in Externally Managed CDOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of securities held | 5 | |
Term Loan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of securities held | 1 | |
Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability - Apidos contractual commitment | $ | $ 414 | $ 615 |
Recurring Basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability - Apidos contractual commitment | $ | $ 414 | $ 615 |
FAIR VALUE (Assets Recorded at
FAIR VALUE (Assets Recorded at Fair Value on Recurring Basis) (Details) - Recurring Basis - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets - Investment securities | $ 44,758 | $ 45,672 |
Liability - Apidos contractual commitment | 414 | 615 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets - Investment securities | 9,912 | 11,062 |
Liability - Apidos contractual commitment | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets - Investment securities | 0 | 0 |
Liability - Apidos contractual commitment | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets - Investment securities | 34,846 | 34,610 |
Liability - Apidos contractual commitment | 414 | 615 |
Investment Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets - Investment securities | 19,148 | 20,960 |
Investment Securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets - Investment securities | 9,912 | 11,062 |
Investment Securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets - Investment securities | 0 | 0 |
Investment Securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets - Investment securities | 9,236 | 9,898 |
Pelium | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets - Investment securities | 25,610 | 24,712 |
Pelium | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets - Investment securities | 0 | 0 |
Pelium | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets - Investment securities | 0 | 0 |
Pelium | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets - Investment securities | $ 25,610 | $ 24,712 |
FAIR VALUE (Additional Informat
FAIR VALUE (Additional Information About Assets Which Were Measured at Fair Value on a Recurring Basis Utilizing Level 3 Inputs) (Details) - Recurring Basis - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 34,610 | $ 25,855 |
Purchases | 5,196 | 30,154 |
Income accreted | 297 | 1,238 |
Payments and distributions received, net | (1,865) | (4,787) |
Sales | (3,578) | (16,186) |
Realized gains on CDOs | 498 | |
Impairment | (98) | (331) |
Gains on trading securities | 460 | 1,401 |
Unrealized holding gains on trading securities | (306) | 2,544 |
Change in unrealized gains included in accumulated other comprehensive loss | (980) | (190) |
Ending balance | 34,846 | 34,610 |
Investment Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 9,898 | 8,489 |
Purchases | 732 | 2,524 |
Income accreted | 297 | 1,238 |
Payments and distributions received, net | (467) | (1,913) |
Sales | (666) | (174) |
Realized gains on CDOs | 498 | |
Impairment | (98) | (331) |
Gains on trading securities | 0 | (14) |
Unrealized holding gains on trading securities | (22) | (269) |
Change in unrealized gains included in accumulated other comprehensive loss | (980) | (190) |
Ending balance | 9,236 | 9,898 |
Pelium | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 24,712 | 17,366 |
Purchases | 4,464 | 27,630 |
Income accreted | 0 | 0 |
Payments and distributions received, net | (1,398) | (2,874) |
Sales | (2,912) | (16,012) |
Realized gains on CDOs | 0 | |
Impairment | 0 | 0 |
Gains on trading securities | 460 | 1,415 |
Unrealized holding gains on trading securities | (284) | 2,813 |
Change in unrealized gains included in accumulated other comprehensive loss | 0 | 0 |
Ending balance | $ 25,610 | $ 24,712 |
FAIR VALUE (Quantitative Inputs
FAIR VALUE (Quantitative Inputs and Assumptions Used in Determining the Fair Value of Items Categorized in Level 3) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
CLO securities | $ 17,706 | $ 19,509 |
Trading securities | $ 1,442 | 1,451 |
Loss severity rate | 30.00% | |
Discount rates | 15.00% | |
CLO securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
CLO securities | $ 7,794 | $ 8,447 |
Loss severity rate | 25.00% | |
Constant prepayment rate | 25.00% | |
Reinvestment price on collateral | 99.00% | |
Discount rates | 15.00% | |
CLO securities | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Constant default rate | 1.00% | |
Reinvestment spread | 0.00% | |
CLO securities | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Constant default rate | 2.00% | |
Reinvestment spread | 4.50% | |
Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Constant default rate | 5.00% | |
Constant prepayment rate | 30.00% |
FAIR VALUE (Fair Value of Finan
FAIR VALUE (Fair Value of Financial Instruments) (Details) - Recurring Basis - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value | ||
Liabilities: | ||
Real estate debt | $ 10,689 | $ 10,618 |
Senior Notes | 12,553 | 12,202 |
Other debt | 775 | 870 |
Total liabilities at fair value | 24,017 | 23,690 |
Carrying Amount | ||
Liabilities: | ||
Real estate debt | 9,822 | 9,877 |
Senior Notes | 10,000 | 10,000 |
Other debt | 775 | 870 |
Total liabilities at fair value | $ 20,597 | $ 20,747 |
DERIVATIVES (Details)
DERIVATIVES (Details) | Mar. 31, 2016USD ($)contracts |
Foreign currency forward contracts | Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Number of Instruments | contracts | 2 |
Notional Amount | $ 2,676,000 |
Foreign currency forward contracts | Designated as Hedging Instrument | |
Derivative [Line Items] | |
Fair Value | $ 0 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Apr. 11, 2016USD ($) | Mar. 31, 2016USD ($)PartnershipFund | Apr. 30, 2016USD ($) | Dec. 31, 2015USD ($) |
Loss Contingencies [Line Items] | ||||
Number of investments sponsored and managed | Partnership | 1 | |||
Management fee expense | $ 1,300 | |||
Loans held for investment, unfunded loan commitments | $ 5,300 | |||
Unfunded capital commitments, number | Fund | 5 | |||
Unfunded capital commitments, period | 2 years | |||
Other commitment | $ 183 | |||
Apartment REIT III | ||||
Loss Contingencies [Line Items] | ||||
Cumulative funded equity in fund | $ 200 | |||
Investment commitment | 1.00% | |||
Equity raised in fund | $ 100,000 | |||
Maximum investment commitment | 1,000 | |||
Pearlmark Real Estate Partners | ||||
Loss Contingencies [Line Items] | ||||
Equity raised in fund | 8,000 | |||
Cost method investment | $ 7,000 | |||
Internal rate of return | 10.00% | |||
Pearlmark Mezzanine Realty Partners IV, L.P. | ||||
Loss Contingencies [Line Items] | ||||
Equity raised in fund | $ 1,700 | |||
Cost method investment | 378 | |||
Resource Securities | ||||
Loss Contingencies [Line Items] | ||||
Minimum net capital required | 100 | $ 259 | ||
Net capital | 1,000 | 1,000 | ||
Minimum requirement of net capital exceeded by | $ 902 | $ 780 | ||
Maximum | ||||
Loss Contingencies [Line Items] | ||||
Clawback liability, percentage | 75.00% | |||
Subsequent Event | RRA CP LLC | ||||
Loss Contingencies [Line Items] | ||||
Cumulative funded equity in fund | $ 25,000 | |||
Investment commitment | 5.00% | |||
Maximum investment commitment | $ 1,200 | |||
Subsequent Event | Pearlmark Real Estate Partners | ||||
Loss Contingencies [Line Items] | ||||
Cost method investment | $ 1,000 |
OPERATING SEGMENTS (Narrative)
OPERATING SEGMENTS (Narrative) (Details) - Segment | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue, Major Customer [Line Items] | ||
Number of reportable operating segments | 3 | |
Sales Revenue, Net | Customer Concentration Risk | RSO | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 14.40% | 13.60% |
OPERATING SEGMENTS (Summarized
OPERATING SEGMENTS (Summarized Operating Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Equity in (losses) earnings of unconsolidated entities | $ 3,133 | $ 2,350 | |
Total revenues | 25,968 | 23,839 | |
General and administrative expenses | (4,883) | (3,297) | |
Provision for credit losses | (109) | (402) | |
Depreciation and amortization | (504) | (457) | |
Impairment on available for sale securities | (98) | 0 | |
Interest expense | (440) | (421) | |
Total assets | 204,586 | $ 211,195 | |
Operating Segments | Real Estate | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 17,717 | 16,294 | |
Equity in (losses) earnings of unconsolidated entities | 1,446 | 672 | |
Total revenues | 19,163 | 16,966 | |
Segment operating expenses | (11,018) | (11,499) | |
General and administrative expenses | (1,325) | (879) | |
Provision for credit losses | (4) | (114) | |
Depreciation and amortization | (314) | (312) | |
Gain on sale of investment securities, net | 0 | ||
Impairment on available for sale securities | 0 | ||
Interest expense | (171) | (183) | |
Other income (expense), net | 306 | 223 | |
Pretax loss (income) attributable to noncontrolling interests | (5) | 8 | |
Income (loss) from continuing operations, net of noncontrolling interests before taxes | 6,632 | 4,210 | |
Total assets | 212,594 | 191,693 | |
Operating Segments | Financial Fund Management | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 5,038 | 4,867 | |
Equity in (losses) earnings of unconsolidated entities | 1,691 | 2,008 | |
Total revenues | 6,729 | 6,875 | |
Segment operating expenses | (3,680) | (3,063) | |
General and administrative expenses | (368) | (284) | |
Provision for credit losses | 0 | 0 | |
Depreciation and amortization | (16) | (16) | |
Gain on sale of investment securities, net | 498 | ||
Impairment on available for sale securities | (98) | ||
Interest expense | 0 | 0 | |
Other income (expense), net | 296 | 441 | |
Pretax loss (income) attributable to noncontrolling interests | (361) | (1,665) | |
Income (loss) from continuing operations, net of noncontrolling interests before taxes | 3,000 | 2,288 | |
Total assets | 90,798 | 108,794 | |
Operating Segments | Commercial Finance | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 80 | 13 | |
Equity in (losses) earnings of unconsolidated entities | (4) | (15) | |
Total revenues | 76 | (2) | |
Segment operating expenses | (392) | (579) | |
General and administrative expenses | 0 | 0 | |
Provision for credit losses | (105) | (288) | |
Depreciation and amortization | 0 | 0 | |
Gain on sale of investment securities, net | 0 | ||
Impairment on available for sale securities | 0 | ||
Interest expense | 0 | 0 | |
Other income (expense), net | 9 | 1 | |
Pretax loss (income) attributable to noncontrolling interests | 0 | 0 | |
Income (loss) from continuing operations, net of noncontrolling interests before taxes | (412) | (868) | |
Total assets | 3,090 | 4,173 | |
Operating Segments | All Other | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 0 | 0 | |
Equity in (losses) earnings of unconsolidated entities | 0 | 0 | |
Total revenues | 0 | 0 | |
Segment operating expenses | 0 | 0 | |
General and administrative expenses | (3,190) | (2,134) | |
Provision for credit losses | 0 | 0 | |
Depreciation and amortization | (174) | (129) | |
Gain on sale of investment securities, net | 0 | ||
Impairment on available for sale securities | 0 | ||
Interest expense | (269) | (238) | |
Other income (expense), net | (104) | (351) | |
Pretax loss (income) attributable to noncontrolling interests | 0 | 0 | |
Income (loss) from continuing operations, net of noncontrolling interests before taxes | (3,737) | (2,852) | |
Total assets | (101,896) | (75,309) | |
Reportable Legal Entities | |||
Segment Reporting Information [Line Items] | |||
Total assets | 204,586 | 229,351 | |
Reportable Legal Entities | RAI | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 22,835 | 21,174 | |
Equity in (losses) earnings of unconsolidated entities | 3,133 | 2,665 | |
Total revenues | 25,968 | 23,839 | |
Segment operating expenses | (15,090) | (15,141) | |
General and administrative expenses | (4,883) | (3,297) | |
Provision for credit losses | (109) | (402) | |
Depreciation and amortization | (504) | (457) | |
Gain on sale of investment securities, net | 498 | ||
Impairment on available for sale securities | (98) | ||
Interest expense | (440) | (421) | |
Other income (expense), net | 507 | 314 | |
Pretax loss (income) attributable to noncontrolling interests | (366) | (1,657) | |
Income (loss) from continuing operations, net of noncontrolling interests before taxes | $ 5,483 | $ 2,778 |