Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 02, 2020 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2020 | |
Entity Registrant Name | MMA CAPITAL HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 001-11981 | |
Entity Tax Identification Number | 52-1449733 | |
Entity Address, Address Line One | 3600 O’Donnell Street, Suite 600 | |
Entity Address, City or Town | Baltimore | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 21224 | |
City Area Code | 443 | |
Local Phone Number | 263-2900 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Central Index Key | 0001003201 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 5,706,366 | |
Entity Shell Company | false | |
Common Shares | ||
Title of 12(b) Security | Common Shares, no par value | |
Trading Symbol | MMAC | |
Security Exchange Name | NASDAQ | |
Common Stock Purchase Rights [Member] | ||
Title of 12(b) Security | Common Stock Purchase Rights | |
Trading Symbol | MMAC | |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 21,784 | $ 8,555 |
Restricted cash | 17,224 | 4,250 |
Investments in debt securities (includes $24,099 and $0 pledged as collateral at September 30, 2020 and December 31, 2019, respectively) | 30,305 | 31,365 |
Investments in partnerships (includes $364,001 and $296,855 pledged as collateral at September 30, 2020 and December 31, 2019, respectively) | 373,707 | 316,677 |
Deferred tax assets, net | 56,156 | 57,711 |
Loans held for investment (includes $0 and $53,600 of related party loans at September 30, 2020 and December 31, 2019, respectively) | 1,302 | 54,100 |
Other assets (includes $17,958 and $0 pledged as collateral at September 30, 2020 and December 31, 2019, respectively) | 21,951 | 12,984 |
Total assets | 522,429 | 485,642 |
LIABILITIES AND EQUITY | ||
Debt | 238,381 | 201,816 |
Accounts payable and accrued expenses | 3,772 | 2,527 |
Other liabilities | 2,658 | 174 |
Total liabilities | 244,811 | 204,517 |
Commitments and contingencies (see Note 10) | ||
Preferred shares: | ||
Preferred shares, no par value, 5,000,000 shares authorized, no shares issued and outstanding at September 30, 2020 and December 31, 2019 | ||
Common shareholders' equity: | ||
Common shares, no par value, 50,000,000 shares are authorized (5,706,366 and 5,701,946 shares issued and outstanding and 109,015 and 103,069 non-employee directors' deferred shares issued at September 30, 2020 and December 31, 2019, respectively) | 270,111 | 273,492 |
Accumulated other comprehensive income ("AOCI") | 7,507 | 7,633 |
Total shareholders' equity | 277,618 | 281,125 |
Total liabilities and equity | $ 522,429 | $ 485,642 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Bonds available-for-sale, pledged as collateral | $ 24,099,000 | $ 0 |
Available-for-sale Securities Pledged as Collateral | 24,099,000 | 0 |
Investments in partnerships, used as collateral | 364,001,000 | 296,855,000 |
Loans to a related party | 0 | 53,600,000 |
Other assets pledged as collateral | $ 17,958,000 | $ 0 |
Preferred shares, no par value | $ 0 | $ 0 |
Preferred shares, shares authorized | 5,000,000 | 5,000,000 |
Preferred shares, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0 | $ 0 |
Common stock, authorized | 50,000,000 | 50,000,000 |
Common shares, shares issued (in shares) | 5,706,366 | 5,701,946 |
Common shares, shares outstanding (in shares) | 5,706,366 | 5,701,946 |
Common shares, non-employee directors' and employee deferred shares (in shares) | 109,015 | 103,069 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest income | ||||
Interest on bonds | $ 466 | $ 481 | $ 1,490 | $ 3,106 |
Interest on loans and short-term investments | 49 | 1,701 | 185 | 3,931 |
Total interest income | 515 | 2,182 | 1,675 | 7,037 |
Asset related interest expense | ||||
Bond related debt | 168 | 215 | 428 | |
Non-bond related debt | 51 | 169 | ||
Total interest expense | 168 | 51 | 215 | 597 |
Net interest income | 347 | 2,131 | 1,460 | 6,440 |
Non-interest income | ||||
Equity in income from unconsolidated funds and ventures | 8,898 | 6,024 | 26,397 | 15,643 |
Net gains on bonds | 2,156 | 26,420 | ||
Net losses on derivatives | (156) | (679) | (2,451) | (3,993) |
Net loss on other assets | (214) | 0 | (415) | 0 |
Net gains (losses) on loans and extinguishment of liabilities | 11 | 0 | 22 | (30) |
Other income | 67 | 80 | 69 | 112 |
Non-interest income | 8,606 | 7,581 | 23,622 | 38,152 |
Other expenses | ||||
Interest expense | 2,169 | 1,207 | 6,856 | 3,613 |
External management fees and reimbursable expenses | 1,836 | 1,646 | 7,045 | 6,042 |
General and administrative | 388 | 237 | 1,119 | 855 |
Professional fees | 644 | 608 | 1,977 | 1,826 |
Impairment losses | 0 | 0 | 8,972 | 0 |
Other expenses | (130) | 412 | 864 | 482 |
Total other expenses | 4,907 | 4,110 | 26,833 | 12,818 |
Net income (loss) from continuing operations before income taxes | 4,046 | 5,602 | (1,751) | 31,774 |
Income tax expense | (1,110) | (26) | (1,879) | (89) |
Net income (loss) from continuing operations | 2,936 | 5,576 | (3,630) | 31,685 |
Net loss from discontinued operations, net of tax | (8) | |||
Net income (loss) | $ 2,936 | $ 5,576 | $ (3,630) | $ 31,677 |
Basic and diluted income per common share: | ||||
Income (loss) from continuing operations | $ 0.51 | $ 0.95 | $ (0.63) | $ 5.38 |
Loss from discontinued operations | ||||
Income (loss) per common share | $ 0.51 | $ 0.95 | $ (0.63) | $ 5.38 |
Weighted-average common shares outstanding: | ||||
Basic and diluted | 5,811 | 5,887 | 5,807 | 5,884 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 2,936 | $ 5,576 | $ (3,630) | $ 31,677 |
Bond related changes: | ||||
Net unrealized gains (losses) | 272 | 961 | (1,024) | 997 |
Reclassification of fair value gains on sold or redeemed bonds into the Consolidated Statements of Operations | (1,851) | (26,115) | ||
Income tax (loss) gain | (75) | 281 | ||
Net change in other comprehensive income (loss) due to bonds, net of taxes | 197 | (890) | (743) | (25,118) |
Foreign currency translation adjustment | (99) | 217 | 617 | 162 |
Other comprehensive income (loss) | 98 | (673) | (126) | (24,956) |
Comprehensive income (loss) | $ 3,034 | $ 4,903 | $ (3,756) | $ 6,721 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Shares | AOCI | Total |
Balance at Dec. 31, 2018 | $ 175,213 | $ 37,697 | $ 212,910 |
Balance (in shares) at Dec. 31, 2018 | 5,882 | ||
Net income (loss) | $ 2,882 | 2,882 | |
Other comprehensive income (loss) | (3,140) | (3,140) | |
Common shares (restricted and deferred) issued under employee and non-employee director share plans | $ 82 | 82 | |
Common shares (restricted and deferred) issued under employee and non-employee director share plans (in shares) | 2 | ||
Balance at Mar. 31, 2019 | $ 177,910 | 34,557 | 212,467 |
Balance (in shares) at Mar. 31, 2019 | 5,884 | ||
Balance at Dec. 31, 2018 | $ 175,213 | 37,697 | 212,910 |
Balance (in shares) at Dec. 31, 2018 | 5,882 | ||
Net income (loss) | 31,677 | ||
Balance at Sep. 30, 2019 | $ 206,854 | 12,741 | 219,595 |
Balance (in shares) at Sep. 30, 2019 | 5,889 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (267) | (267) | |
Balance at Mar. 31, 2019 | $ 177,910 | 34,557 | 212,467 |
Balance (in shares) at Mar. 31, 2019 | 5,884 | ||
Net income (loss) | $ 23,219 | 23,219 | |
Other comprehensive income (loss) | (21,143) | (21,143) | |
Common shares (restricted and deferred) issued under employee and non-employee director share plans | $ 83 | 83 | |
Common shares (restricted and deferred) issued under employee and non-employee director share plans (in shares) | 3 | ||
Balance at Jun. 30, 2019 | $ 201,212 | 13,414 | 214,626 |
Balance (in shares) at Jun. 30, 2019 | 5,887 | ||
Net income (loss) | $ 5,576 | 5,576 | |
Other comprehensive income (loss) | (673) | (673) | |
Common shares (restricted and deferred) issued under employee and non-employee director share plans | $ 66 | 66 | |
Common shares (restricted and deferred) issued under employee and non-employee director share plans (in shares) | 2 | ||
Balance at Sep. 30, 2019 | $ 206,854 | 12,741 | 219,595 |
Balance (in shares) at Sep. 30, 2019 | 5,889 | ||
Balance at Dec. 31, 2019 | $ 273,492 | 7,633 | 281,125 |
Balance (in shares) at Dec. 31, 2019 | 5,805 | ||
Net income (loss) | $ (3,058) | (3,058) | |
Other comprehensive income (loss) | (453) | (453) | |
Common shares (restricted and deferred) issued under employee and non-employee director share plans | $ 96 | 96 | |
Common shares (restricted and deferred) issued under employee and non-employee director share plans (in shares) | 3 | ||
Common share repurchases | $ (41) | (41) | |
Common share repurchases (in shares) | (1) | ||
Balance at Mar. 31, 2020 | $ 270,489 | 7,180 | 277,669 |
Balance (in shares) at Mar. 31, 2020 | 5,807 | ||
Balance at Dec. 31, 2019 | $ 273,492 | 7,633 | 281,125 |
Balance (in shares) at Dec. 31, 2019 | 5,805 | ||
Net income (loss) | (3,630) | ||
Balance at Sep. 30, 2020 | $ 270,111 | 7,507 | 277,618 |
Balance (in shares) at Sep. 30, 2020 | 5,815 | ||
Balance at Mar. 31, 2020 | $ 270,489 | 7,180 | 277,669 |
Balance (in shares) at Mar. 31, 2020 | 5,807 | ||
Net income (loss) | $ (3,508) | (3,508) | |
Other comprehensive income (loss) | 229 | 229 | |
Common shares (restricted and deferred) issued under employee and non-employee director share plans | $ 97 | 97 | |
Common shares (restricted and deferred) issued under employee and non-employee director share plans (in shares) | 4 | ||
Balance at Jun. 30, 2020 | $ 267,078 | 7,409 | 274,487 |
Balance (in shares) at Jun. 30, 2020 | 5,811 | ||
Net income (loss) | $ 2,936 | 2,936 | |
Other comprehensive income (loss) | 98 | 98 | |
Common shares (restricted and deferred) issued under employee and non-employee director share plans | $ 97 | 97 | |
Common shares (restricted and deferred) issued under employee and non-employee director share plans (in shares) | 4 | ||
Balance at Sep. 30, 2020 | $ 270,111 | $ 7,507 | $ 277,618 |
Balance (in shares) at Sep. 30, 2020 | 5,815 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (3,630) | $ 31,677 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Provisions for credit losses and impairment | 8,972 | 0 |
Net equity in income from investments in partnerships | (26,397) | (15,643) |
Net gains on bonds | 0 | (26,420) |
Net losses on derivatives | 2,346 | 5,539 |
Net losses on loans, other assets and extinguishment of liabilities | 393 | 30 |
Current and deferred federal income tax expense | 1,789 | 110 |
Distributions received from investments in partnerships | 24,706 | 11,317 |
Depreciation and amortization | 430 | (1,560) |
Foreign currency losses | 864 | 242 |
Stock-based compensation expense | 290 | 230 |
Other, net | 942 | (279) |
Net cash provided by operating activities | 10,705 | 5,243 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Principal payments and sales proceeds received on bonds and loans held for investment (includes $53,600 and zero from a related party) | 53,770 | 27,591 |
Advances on and originations of loans held for investment | (702) | (11,279) |
Investments in partnerships and real estate | (130,206) | (168,971) |
Capital distributions received from investments in partnerships | 55,199 | 92,404 |
Net cash used in investing activities | (21,939) | (60,255) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from borrowing activity | 112,385 | 45,000 |
Repayment of borrowings | (74,184) | (4,709) |
Debt issuance costs | (723) | (2,205) |
Repurchase of common shares | (41) | |
Net cash provided by financing activities | 37,437 | 38,086 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 26,203 | (16,926) |
Cash, cash equivalents and restricted cash at beginning of period | 12,805 | 33,878 |
Cash, cash equivalents and restricted cash at end of period | 39,008 | 16,952 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest paid | 6,431 | 4,426 |
Income taxes paid | 112 | 16 |
Non-cash investing and financing activities: | ||
Unrealized losses included in other comprehensive income | (126) | (24,956) |
Debt and liabilities extinguished through sales and collections on bonds and loans | 0 | 37,606 |
Decrease in investments in debt securities and common shareholders' equity due to change in accounting principle | 0 | 267 |
Increase in loans held for investment and decrease in investment in partnerships due to secured lending | 0 | 8,392 |
Hunt Companies [Member] | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Principal payments and sales proceeds received on bonds and loans held for investment (includes $53,600 and zero from a related party) | $ 53,600 | $ 0 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Reconciliation) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||
Cash and cash equivalents | $ 21,784 | $ 10,837 |
Restricted cash | 17,224 | 6,115 |
Total cash, cash equivalents and restricted cash shown in statement of cash flows | $ 39,008 | $ 16,952 |
CONSOLIDATED STATEMENTs OF CA_3
CONSOLIDATED STATEMENTs OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Principal payments and sales proceeds received on bonds and loans held for investment | $ 53,770 | $ 27,591 |
Advances on and originations of loans held for investment | 702 | 11,279 |
Hunt Companies [Member] | ||
Principal payments and sales proceeds received on bonds and loans held for investment | $ 53,600 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Summary of Significant Accounting Policies | Note 1— Summary of Significant Accounting Policies Organization MMA Capital Holdings, Inc. focuses on infrastructure-related investments that generate positive environmental and social impacts and deliver attractive risk-adjusted total returns to our shareholders, with an emphasis on debt associated with infrastructure, including renewable energy projects. Unless the context otherwise requires, and when used in these Notes, the “ Company MMA we our us External Manager Hunt Our current objective is to produce attractive risk adjusted returns by investing in the large, growing and fragmented renewable energy market in the United States (“ U.S In addition to renewable energy investments, we continue to own a limited number of bond investments and real estate-related investments, and we continue to have subordinated debt with beneficial economic terms. Further, we have significant net operating loss carryforwards (“ NOLs DTAs We operate as a single reporting segment. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“ GAAP The Company evaluates subsequent events through the date of filing with the U.S. Securities and Exchange Commission (“ SEC Changes in Presentation We have made certain reclassifications to prior year financial statements in order to enhance their comparability with current year financial statements. Use of Estimates The preparation of the Company’s financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, commitments and contingencies, and revenues and expenses. Management made estimates in certain areas, including the determination of the Company’s valuation allowance established against its DTAs as well as in the fair value measurement of bonds and derivative instruments. Actual results could differ materially from these estimates. Principles of Consolidation The consolidated financial statements include the accounts of the Company as well as those entities in which the Company has a controlling financial interest, including wholly owned subsidiaries of the Company. All intercompany transactions and balances have been eliminated in consolidation. Equity investments in unconsolidated entities where the Company has the ability to exercise significant influence over the operations of the entity, but is not considered the primary beneficiary, are accounted for using the equity method of accounting. Accounting Guidance Adoption of Accounting Standards Accounting for Financial Instruments In March 2017, the Financial Accounting Standards Board (“ FASB ASU “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” Accounting for Income Taxes In February 2018, the FASB issued ASU No. 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” Tax Act Accounting for Stock Compensation In June 2018, the FASB issued ASU 2018-07 “ .” This guidance expands the scope of ASC Topic 718 to include all share-based payment arrangements related to the acquisition of goods and services from both nonemployees and employees. We adopted this new guidance on its effective date of January 1, 2019. The adoption of this guidance did not impact the Company’s Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Equity or Consolidated Statements of Cash Flows as of the adoption date. Accounting for Financial Instruments – Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” Accounting for Financial Instruments – Rate Reform In March 2020, the FASB issued ASU No. 2020-04, “ .” This guidance is elective and is provided for contract modifications that meet certain Codification topics and subtopics. The optional amendment of this new guidance is effective March 12, 2020 through December 31, 2022. We did not make any elections provided by this new guidance and, therefore, the adoption of these accounting principles did not impact the Company’s Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Equity or Consolidated Statements of Cash Flows as of the adoption date. Issued Accounting Standards Not Yet Adopted Accounting for Financial Instruments – Credit Losses In November 2019, the FASB issued ASU No. 2019-10, “ Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815) and Leases (Topic 842): Effective Dates.” In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Improvements.” In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” In May 2019, the FASB issued ASU No. 2019-05, “ Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief.” In November 2019, the FASB issued ASU No. 2019-11, “ Codification Improvements to Topic 326, Financial Instruments – Credit Losses.” In February 2020, the FASB issued ASU No. 2020-02, “ Financial Instruments – Credit Losses (Topic 326) and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842) (SEC Update).” Accounting for Financial Instruments – General In March 2020, the FASB issued ASU No. 2020-03, “ Codification Improvements to Financial Instruments.” are not effective until January 1, 2023, we are evaluating the potential impact of the new guidance on our consolidated financial statements. Accounting for Income Taxes In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” |
INVESTMENTS IN DEBT SECURITIES
INVESTMENTS IN DEBT SECURITIES | 9 Months Ended |
Sep. 30, 2020 | |
INVESTMENTS IN DEBT SECURITIES [Abstract] | |
Investments in Debt Securities | Note 2—Investments in Debt Securities At September 30, 2020 and December 31, 2019, the Company’s investments in debt securities consist of one subordinated multifamily tax-exempt mortgage revenue bond and one tax-exempt infrastructure bond. These investments are classified as available-for-sale for reporting purposes and are measured on a fair value basis in our Consolidated Balance Sheets. Multifamily tax-exempt bonds are issued by state and local governments or their agencies or authorities to finance affordable multifamily rental housing. Generally, the only source of security on these bonds is a mortgage on the underlying property. The Company’s non-amortizing subordinated cash flow bond principal is due in full in November 2044. The Company’s infrastructure bond financed the development of infrastructure for a mixed-use town center development in Spanish Fort, Alabama and is secured by incremental tax revenues generated from the development and its landowners (this investment is hereinafter referred to as our “ Infrastructure Bond The following tables provide information about the unpaid principal balance (“ UPB FV At September 30, 2020 Gross Amortized Unrealized FV as a % (in thousands) UPB Cost (1) Gains FV of UPB Infrastructure Bond $ 26,715 $ 20,761 $ 3,338 $ 24,099 90% Multifamily tax-exempt bond 4,000 — 6,206 6,206 155% Total $ 30,715 $ 20,761 $ 9,544 $ 30,305 99% At December 31, 2019 Gross Amortized Unrealized FV as a % (in thousands) UPB Cost (1) Gains FV of UPB Infrastructure Bond $ 26,885 $ 20,797 $ 4,542 $ 25,339 94% Multifamily tax-exempt bond 4,000 — 6,026 6,026 151% Total $ 30,885 $ 20,797 $ 10,568 $ 31,365 102% (1) Amortized cost consists of the UPB, unamortized premiums, discounts and other cost basis adjustments, as well as other-than-temporary-impairment (“ OTTI ”) recognized in “Impairments” in our Consolidated Statements of Operations. See Note 8, “Fair Value,” which describes factors that contributed to the $1.1 million decrease in the reported fair value of the Company’s investments in debt securities for the nine months ended September 30, 2020. Nonaccrual Bonds At September 30, 2020 and December 31, 2019, the Company had no bonds that were on nonaccrual status. Bond Sales and Redemptions There were no sales or redemption in full of investments in bonds during the three months and nine months ended September 30, 2020. The Company received cash proceeds in connection with the sale or redemption in full of investments in bonds of $2.4 million and $26.6 million for the three months and nine months ended September 30, 2019. The following table provides information about gains or losses that were recognized in the Company’s Consolidated Statements of Operations in connection with the Company’s investments in bonds: For the three months ended For the nine months ended September 30, September 30, (in thousands) 2020 2019 2020 2019 Gains recognized at time of sale or redemption $ — $ 2,156 $ — $ 26,420 |
INVESTMENTS IN PARTNERSHIPS
INVESTMENTS IN PARTNERSHIPS | 9 Months Ended |
Sep. 30, 2020 | |
INVESTMENTS IN PARTNERSHIPS [Abstract] | |
Investment in Partnerships | Note 3—Investments in Partnerships The following table provides information about the carrying value of the Company’s investments in partnerships and ventures: At At September 30, December 31, (in thousands) 2020 2019 Investment in Solar Ventures $ 362,403 $ 289,123 Investments in U.S. real estate partnerships 9,706 19,822 Investment in South Africa Workforce Housing Fund (" SAWHF 1,598 7,732 Total investments in partnerships $ 373,707 $ 316,677 Investments Related to the Solar Ventures At September 30, 2020, we were a 50% investor member in the renewable joint ventures in which we invest though we may periodically have a minority economic interest as a result of non-pro rata capital contributions made by our capital partner pursuant to a non-pro-rata funding agreement between the Company and our capital partner. Distributions from such ventures are generally made in proportion to the members’ respective economic interests but may be made disproportionately to our capital partner, when our capital partner has made non-pro rata capital contributions, until such time that the amount of equity invested by the Company and its capital partner have come back into equal balance. At September 30, 2020, the Company held 43.4%, 50.0% and 42.9% economic interests in Solar Construction Lending, LLC (“ SCL SPL SDL was the sole REL Solar Ventures At September 30, 2020, the carrying value of the Company’s equity investments in SCL, SPL and SDL was $239.8 million, $0 and $122.6 million, respectively. None of these investees were assessed to constitute a Variable Interest Entity (“ VIE During the third quarter of 2020, the Company and its capital partner in SCL and SDL funded various non-pro rata capital calls pursuant to which our capital partner contributed the full $56.0 million in SCL capital calls and $24.0 million of $39.0 million in SDL capital calls, while the Company contributed the $15.0 million balance with respect to SDL. In addition, in accordance with a non-pro rata funding agreement between the Company and our capital partner, our capital partner in SCL received distributions of $65.0 million, while the Company received distributions of $15.0 million. As a consequence of these non-pro rata capital contributions and distributions during the third quarter of 2020, our economic interest in SCL and SDL decreased in percentage terms from 44.2% and 43.6% in SCL and SDL, respectively, at June 30, 2020. Subsequent to September 30, 2020, the Company and its capital partner in SCL and SDL funded various non-pro rata capital calls pursuant to which our capital partner contributed $82.0 million of $97.0 million in SCL and SDL capital calls, while the Company contributed the balance of these capital calls, or $15.0 million, which represented the full $15.0 million of distributions received from the ventures subsequent to the third quarter. As a consequence of these non-pro rata capital contribution and distributions, our economic interest in SCL and SDL decreased to 39.2% and 39.6%, respectively. The Company paid $5.1 million for the buyout of our prior investment partner’s ownership interest in REL, on June 1, 2018, which was allocated to the net assets acquired based upon their relative fair values. This allocation resulted in a cumulative basis adjustment of $4.5 million to the Company’s investments that is amortized over the remaining investment period of SCL. The amortization expense related to the Company’s basis difference was $0.2 million for the three months ended September 30, 2020 and September 30, 2019, and $0.7 million for the nine months ended September 30, 2020 and September 30, 2019, respectively. At September 30, 2020 and December 31, 2019, the unamortized balance of the Company’s basis difference was $2.5 million and $3.1 million, respectively. The following table provides information about the carrying amount of total assets and liabilities of all renewable energy related investees in which the Company had an equity method investment: At At September 30, December 31, 2020 2019 (in thousands) Total assets (1) $ 837,977 $ 706,792 Other liabilities (2) 4,988 22,135 (1) Assets of these ventures are primarily comprised of loans that are carried at fair value. (2) Other liabilities of these ventures are primarily comprised of interest reserves. The following table provides information about the gross revenue, operating expenses and net income of all renewable energy related investees in which the Company had an equity method investment: For the three months ended For the nine months ended September 30, September 30, (in thousands) 2020 2019 2020 2019 Gross revenue $ 23,123 $ 16,081 $ 69,540 $ 38,367 Operating expenses 1,403 1,144 4,945 4,687 Net income and net income attributable to the entities 21,754 14,940 64,585 33,749 Investments in U.S. Real Estate Partnerships At September 30, 2020, the $9.7 million reported carrying value of investments in U.S. real estate partnerships represented the Company’s 80% ownership interest in a joint venture that owns and operates a mixed-use town center and undeveloped land parcels in Spanish Fort, Alabama (“ SF Venture decision-making rights are shared equally among its members. Accordingly, the Company accounts for this investment using the equity method of accounting. During the second quarter of 2020, our equity investment in the SF Venture was determined to be other-than-temporarily impaired due to the downturn in the economy that stemmed from the novel coronavirus (“ COVID-19 The following table provides information about the total assets, debt and other liabilities of the U.S. real estate partnerships in which the Company held an equity investment: At At September 30, December 31, 2020 2019 (in thousands) Total assets $ 50,406 $ 51,718 Debt 6,752 6,426 Other liabilities 20,307 20,493 The following table provides information about the gross revenue, operating expenses and net loss of U.S. real estate partnerships in which the Company had an equity investment: For the three months ended For the nine months ended September 30, September 30, (in thousands) 2020 2019 2020 2019 Gross revenue $ 648 $ 624 $ 1,839 $ 1,920 Operating expenses 515 437 1,623 1,380 Net loss and net loss attributable to the entities (538) (727) (1,937) (1,288) Investment in SAWHF SAWHF was determined not to be a VIE, and therefore, the Company accounts for this investment using the equity method of accounting. At September 30, 2020, the carrying value of the Company’s 11.85% equity investment in SAWHF was $1.6 million, which reflects a $6.1 million decline from December 31, 2019, due to: (i) a distribution from SAWHF of 7.2 million shares of a residential real estate investment trust (“ REIT JSE The following table provides information about the carrying value of total assets and other liabilities of SAWHF: At At September 30, December 31, 2020 2019 (in thousands) Total assets $ 13,785 $ 56,356 Other liabilities 91 130 The following table provides information about the gross revenue, operating expenses and net income of SAWHF: For the three months ended For the nine months ended September 30, September 30, (in thousands) 2020 2019 2020 2019 Gross revenue $ 57 $ 1,321 $ 1,574 $ 4,090 Operating expenses 119 236 755 722 Net income (loss) and net income (loss) attributable to the entity 790 (1,092) 1,911 1,690 |
LOANS HELD FOR INVESTMENT ("HFI
LOANS HELD FOR INVESTMENT ("HFI") | 9 Months Ended |
Sep. 30, 2020 | |
LOANS HELD FOR INVESTMENT ("HFI") [Abstract] | |
Loans Held for Investment ("HFI") | Note 4—Loans Held for Investment (“HFI”) We report the carrying value of HFI loans at their UPB, net of unamortized premiums, discounts and other cost basis adjustments and related allowances for loan losses, except in instances where we have elected the fair value option as further discussed below. The following table provides information about the UPB and fair value adjustments that were recognized in the Company’s Consolidated Balance Sheets related to loans that it classified as HFI: At At September 30, December 31, (in thousands) 2020 2019 UPB $ 1,280 $ 54,100 Fair value adjustments 22 — Loans HFI, net $ 1,302 $ 54,100 On January 3, 2020, the entire $53.6 million UPB of the Hunt Note was fully repaid. At September 30, 2020 and December 31, 2019, the Company had one and two HFI loans, respectively, that had a combined UPB and fair value of $1.3 million and $54.1 million, respectively. The Company elected the fair value option for one of its HFI loans that had a UPB and fair value of $1.3 million and $0.5 million at September 30, 2020 and December 31, 2019, respectively. The fair value option was elected upon its recognition so as to minimize certain operational challenges associated with accounting for this loan. At September 30, 2020 and December 31, 2019, the Company had no HFI loans that were on nonaccrual status or that were past due in scheduled principal or interest payments and still accruing interest. Unfunded Loan Commitments At September 30, 2020 and December 31, 2019, the Company, through its wholly owned subsidiary of REL, had $0.8 million and $1.6 million, respectively, of unfunded loan commitments. |
OTHER ASSETS
OTHER ASSETS | 9 Months Ended |
Sep. 30, 2020 | |
OTHER ASSETS [Abstract] | |
Other Assets | Note 5—Other Assets The following table provides information related to the carrying value of the Company’s other assets: At At September 30, December 31, (in thousands) 2020 2019 Other assets: Real estate owned $ 15,384 $ 8,397 Debt issue costs 2,297 2,675 Equity investments 2,574 — Derivative assets 569 597 Accrued interest receivable 551 853 Other assets 576 462 Total other assets $ 21,951 $ 12,984 Real Estate Owned (“REO”) The following table provides information about the carrying value of the Company’s REO held for use, net: At At September 30, December 31, (in thousands) 2020 2019 Land improvements $ 12,765 $ 5,778 Land 2,619 2,619 Total $ 15,384 $ 8,397 Land improvements are depreciated over a period of 15 years . The Company’s investments include the Company’s REO, which consists of a parcel of land that is currently in the process of being developed. During the first nine months of 2020, the Company invested $7.0 million in additional land improvements that were capitalized as part of the carrying value of such investment. Since REO has not been placed in service, no depreciation expense was recognized in connection with this land investment for the three months and nine months ended September 30, 2020 and September 30, 2019, nor were any impairment losses recognized by the Company during these periods in connection with REO. Debt Issuance Costs During the first quarter of 2020, the Company incurred, but deferred in the Consolidated Balance Sheets, $0.5 million of additional debt issuance costs in connection with the execution by MMA Energy Holdings, LLC (“ MEH Borrower Equity Investments On May 22, 2020, the Company received a $2.9 million pro-rata distribution from SAWHF of 7.2 million shares of a residential REIT that are listed on the Main Board of the JSE. These REIT shares, which trade under the trading symbol “TPF,” are reported at their fair value and are denominated in South African rand. During the nine months ended September 30, 2020, the Company recognized $0.4 million in “Net loss on other assets” within the Company’s Consolidated Statements of Operations. At September 30, 2020, the carrying value of these shares was $2.6 million. See Note 8, “Fair Value,” for more information. Derivative Assets At September 30, 2020 and December 31, 2019, the Company recognized $0.6 million of derivative assets. See Note 7, “Derivative Instruments,” for more information. |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2020 | |
DEBT [Abstract] | |
Debt | Note 6—Debt The table below provides information about the carrying values and weighted-average effective interest rates of the Company’s debt obligations that were outstanding at September 30, 2020 and December 31, 2019: At At September 30, 2020 December 31, 2019 Wtd. Avg. Wtd. Avg. Effective Effective Carrying Interest Carrying Interest (dollars in thousands) Value (4) Rate (4) Value (4) Rate (4) Other Debt Subordinated debt (1) Due within one year $ 2,225 1.6 % $ 2,212 3.2 % Due after one year 91,549 1.6 93,276 3.2 Revolving credit facility debt obligations Due within one year — — — — Due after one year 103,700 5.6 94,500 5.6 Notes payable and other debt (2) Due within one year 4,072 14.0 6,828 14.7 Due after one year 13,458 5.2 1,500 5.0 Total other debt 215,004 4.0 198,316 4.8 Asset Related Debt Notes Payable and Other Debt Bond related debt (3) Due within one year 275 2.8 — — Due after one year 23,102 2.8 — — Non-bond related debt Due within one year — — 650 5.0 Due after one year — — 2,850 5.0 Total asset related debt 23,377 2.8 3,500 5.0 Total debt $ 238,381 3.9 % $ 201,816 4.8 % (1) The subordinated debt balances include net cost basis adjustments of $7.0 million and $7.4 million at September 30, 2020 and December 31, 2019, respectively, that pertain to premiums and debt issuance costs. (2) Included in Other Debt – notes payable and other debt were unamortized debt issuance costs of $0.1 million at September 30, 2020 and December 31, 2019. (3) Included in Asset Related Debt – notes payable and other debt – bond related debt were unamortized debt issuance costs of $0.1 million at September 30, 2020. (4) Carrying value amounts and weighted-average interest rates reported in this table include the effects of any discounts, premiums and other cost basis adjustments. An effective interest rate represents an internal rate of return of a debt instrument that makes the net present value of all cash flows, inclusive of cash flows that give rise to cost basis adjustments, equal zero and in the case of (i) fixed rate instruments, is measured as of an instrument’s issuance date and (ii) variable rate instruments, is measured as of each date that a reference interest rate resets. Covenant Compliance and Debt Maturities The following table provides information about scheduled principal payments associated with the Company’s debt agreements that were outstanding at September 30, 2020: Asset Related Debt (in thousands) and Other Debt 2020 $ 4,529 2021 2,278 2022 128,550 2023 11,222 2024 1,813 Thereafter 83,197 Net premium and debt issue costs 6,792 Total debt $ 238,381 At September 30, 2020, the Company was in compliance with all covenants under its debt obligations. Other Debt Other debt of the Company finances non-interest-bearing assets and other business activities of the Company. The interest expense associated with this debt is classified as “Interest expense” under “Other expenses” on the Consolidated Statements of Operations. Subordinated Debt The table below provides information about the key terms of the subordinated debt that was issued by MMA Financial Holdings, Inc. (“ MFH ”), the Company’s wholly owned subsidiary, and that was outstanding at September 30, 2020: (dollars in thousands) Net Premium Interim and Debt Carrying Principal Issuer UPB Issuance Costs Value Payments (1) Maturity Date Coupon MFH $ 25,611 $ 2,152 $ 27,763 Amortizing March 30, 2035 three-month LIBOR plus 2.0% MFH 23,288 1,954 25,242 Amortizing April 30, 2035 three-month LIBOR plus 2.0% MFH 13,424 1,042 14,466 Amortizing July 30, 2035 three-month LIBOR plus 2.0% MFH 24,408 1,895 26,303 Amortizing July 30, 2035 three-month LIBOR plus 2.0% Total $ 86,731 $ 7,043 $ 93,774 (1) The subordinated principal amortizes 2.0% per annum. Revolving Credit Facility Debt Obligations On September 19, 2019, MEH entered into a $125.0 million (the “ Facility Amount Obligations associated with the revolving credit facility are guaranteed by the Company and are secured by specified assets of the Borrower and a pledge of all of the Company’s equity interest in the Borrower, which holds the equity interests in the Solar Ventures, through pledge and security documentation. Availability and amounts advanced under the revolving credit facility are subject to compliance with a borrowing base comprised of assets that comply with certain eligibility criteria, and includes late-stage development, construction and permanent loans to finance renewable energy projects and cash. The revolving credit facility contains affirmative and negative covenants binding on the Borrower that are customary for credit facilities of this type. Additionally, the credit agreement includes collateral performance tests and the following financial covenants of the Company and its consolidated subsidiaries: minimum debt service coverage ratio, maximum debt to net worth, minimum consolidated net worth and minimum consolidated net income. Borrowing under the revolving credit facility bears interest at the one-month London Interbank Offered Rate (“ LIBOR At September 30, 2020, the UPB Notes Payable and Other Debt At September 30, 2020, the UPB and carrying value of notes payable and other debt that was used to finance the Company’s 11.85% ownership interest in SAWHF was $3.9 million. This debt, which is denominated in South African rand, had an original contractual maturity date of September 8, 2020 and requires the Company to pay its counterparty a rate equal to the Johannesburg Interbank Agreed Rate (“ JIBAR At September 30, 2020, the UPB MGM Principals On June 1, 2020, the Company entered into a $10.0 million construction loan that is secured by our direct investment in real estate that is in the process of development. The initial advance from this debt was $9.3 million and $0.5 million of capacity that has been reserved for interest payments. The total amount advanced by the lender shall not exceed 65% of the value of pledged real estate and 75% of the development allowable hard costs incurred by borrower. The loan is prepayable at any time without penalty, with all net proceeds realized from the sale of any portion of the real property required to be used to repay the outstanding UPB of the loan. Construction draws may not exceed a total principal sum of $11.1 million over the life of the facility, with the maximum outstanding UPB at any point in time not to exceed $10.0 million. The contractual maturity date of this facility is June 1, 2023, although the facility is subject to three extension options (at the discretion of the borrower and lender): (i) the first extension term would expire on November 1, 2023; (ii) the second extension term would expire on May 1, 2024 and (iii) the final amortized term would expire three years after the initial term, first extension term and second extension term, as applicable. Amounts drawn from this debt facility are repayable on an interest only basis at a rate of 4.85% with all outstanding principal due at maturity during the initial term, first extension term and second extension term. However, during the final extension term the debt bears interest at a rate of three-month LIBOR plus 3.0% per annum, subject to a 5.0% floor with principal amortization required monthly over the three year extension term. Obligations associated with this debt are guaranteed by the Company. At September 30, 2020, the UPB and carrying value of this debt obligation was $9.4 million and $9.3 million, respectively. Asset Related Debt Asset related debt is debt that finances interest-bearing assets of the Company. The interest expense associated with this debt is included within “Net interest income” on the Consolidated Statements of Operations. Bond Related Debt On June 5, 2020, the Company entered into a total return swap (“ TRS At September 30, 2020, under the terms of this TRS agreement, which has a maturity date of June 6, 2022, the counterparty is required to pay the Company an amount equal to the interest payments received on the underlying bond (UPB of $26.7 million with a pay rate of 6.3% at September 30, 2020). The Company is required to pay the counterparty a rate that is based upon the Securities Industry and Financial Markets Association (“ SIFMA Non-bond Related Debt During the first quarter of 2020, the $3.5 million debt obligation to MGM Principals was reclassified to Other Debt upon the full repayment of the Hunt Note. Letters of Credit The Company had no letters of credit outstanding at September 30, 2020 and December 31, 2019. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Sep. 30, 2020 | |
DERIVATIVE INSTRUMENTS [Abstract] | |
Derivative Instruments | Note 7—Derivative Instruments The Company uses derivative instruments for various purposes. Pay-fixed interest rate swaps, interest rate basis swaps and interest rate caps are used to manage interest rate risk. Foreign currency forward exchange agreements are used to manage currency risk associated with the financing of our SAWHF equity investment. Derivative instruments that are recognized in the Consolidated Balance Sheets are measured on a fair value basis. Because the Company does not designate any of its derivative instruments as fair value or cash flow hedges, changes in fair value of these instruments are recognized in the Consolidated Statements of Operations as a component of “Net losses on derivatives.” Derivative assets are presented in the Consolidated Balance Sheets as a component of “Other assets” and derivative liabilities are presented in the Consolidated Balance Sheets as a component of “Other liabilities.” The following table provides information about the carrying value of the Company’s derivative instruments: Fair Value At At September 30, 2020 December 31, 2019 (in thousands) Assets Liabilities Assets Liabilities Basis swaps $ — $ 618 $ 318 $ — Interest rate caps 53 — 227 — Interest rate swaps — 1,886 52 — Foreign currency forward exchange 516 — — 117 Gain share arrangement (1) — 24 — — Total carrying value of derivative instruments $ 569 $ 2,528 $ 597 $ 117 (1) Refer to Note 6, “Debt” for more information. The following table provides information about the notional amounts of the Company’s derivative instruments: Notional Amounts At At September 30, December 31, (in thousands) 2020 2019 Basis swaps $ 35,000 $ 35,000 Interest rate caps 35,000 35,000 Interest rate swaps 35,000 35,000 Foreign currency forward exchange 3,915 4,685 Total notional amount of derivative instruments $ 108,915 $ 109,685 The following table provides information about the net losses that were recognized by the Company in connection with its derivative instruments: For the three months ended For the nine months ended September 30, September 30, (in thousands) 2020 2019 2020 2019 Total return swaps (1) $ — $ — $ — $ (42) Basis swaps (2) 29 (273) (907) (526) Interest rate caps (20) (234) (174) (797) Interest rate swaps (3) (28) (441) (2,072) (2,717) Foreign currency forward exchange (149) 269 726 89 Gain share arrangement 12 — (24) — Total net losses of derivative instruments $ (156) $ (679) $ (2,451) $ (3,993) (1) The accrual of net interest payments that are made in connection with TRS agreements that are reported as derivative instruments are classified as a component of “Net losses on derivatives” on the Consolidated Statements of Operations. Net cash received was $0.2 million for the nine months ended September 30, 2019. (2) The accrual of net interest payments that are made in connection with basis swaps is classified as a component of “Net losses on derivatives” on the Consolidated Statements of Operations. Net cash received was $0.1 million for the three months and nine months ended September 30, 2020. Net cash received was $0.1 million and $0.2 million for the three months and nine months ended September 30, 2019, respectively. (3) The accrual of net interest payments that are made in connection with interest rate swaps is classified as a component of “Net losses on derivatives” on the Consolidated Statements of Operations. Net cash paid was $0.1 million for the three months and nine months ended September 30, 2020, while the net cash received was de minimis for the three months ended September 30, 2019 and $0.2 million for the nine months ended September 30, 2019. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2020 | |
FAIR VALUE [Abstract] | |
Fair Value | Note 8—Fair Value We use fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Assets and liabilities recorded at fair value on a recurring basis are presented in the first table below in this Note. From time to time, we may be required to measure at fair value other assets on a nonrecurring basis such as certain loans held for investment or investments in partnerships. These nonrecurring fair value adjustments typically involve application of lower-of-cost-or-market accounting or write-downs of individual assets. Fair Value Hierarchy The Company measures the fair value of its assets and liabilities based upon their contractual terms and using relevant market information. A description of the methods used by the Company to measure fair value is provided below. Fair value measurements are subjective in nature, involve uncertainties and often require the Company to make significant judgments. Changes in assumptions could significantly affect the Company’s measurement of fair value. GAAP establishes a three-level hierarchy that prioritizes inputs into the valuation techniques used to measure fair value. Fair value measurements associated with assets and liabilities are categorized into one of the following levels of the hierarchy based upon how observable the valuation inputs are that are used in the fair value measurements. ● Level 1: Valuation is based upon quoted prices in active markets for identical instruments. ● Level 2: Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs or significant value drivers are observable in active markets. ● Level 3: Valuation is generated from techniques that use significant assumptions that are not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Recurring Changes in Fair Value The following tables present the carrying amounts of assets and liabilities that are measured at fair value on a recurring basis by instrument type and based upon the level of the fair value hierarchy within which fair value measurements of our assets and liabilities are categorized: At September 30, Fair Value Measurements (in thousands) 2020 Level 1 Level 2 Level 3 Assets: Investments in debt securities $ 30,305 $ — $ — $ 30,305 Loans held for investment 1,302 — — 1,302 Equity investments 2,574 2,574 — — Derivative instruments 569 — 569 — Liabilities: Derivative instruments $ 2,528 $ — $ 2,528 $ — At December 31, Fair Value Measurements (in thousands) 2019 Level 1 Level 2 Level 3 Assets: Investments in debt securities $ 31,365 $ — $ — $ 31,365 Loans held for investment 500 — — 500 Derivative instruments 597 — 597 — Liabilities: Derivative instruments $ 117 $ — $ 117 $ — Changes in Fair Value Changes in the fair value of assets and liabilities that are measured at fair value on a recurring basis and that are categorized as Level 3 within the fair value hierarchy are attributed in the following table to identified activities that occurred during the three months ended September 30, 2020: Investments in Loans Held for (in thousands) Debt Securities Investment Balance, July 1, 2020 $ 29,988 $ 1,291 Net gains included in earnings (1) — 11 Net change in AOCI (2) 272 — Impact from sales or redemptions — — Impact from settlements (3) 45 — Balance, September 30, 2020 $ 30,305 $ 1,302 (1) This amount represents $11 thousand of unrealized gains recognized during this reporting period in connection with the Company’s loan investment held at September 30, 2020. This amount is classified as “Net gains (losses) on loans and extinguishment of liabilities” in the Company’s Consolidated Statement of Operations. (2) This amount represents $0.3 million of net unrealized gains recognized during this reporting period in connection with the Company’s bond investments. (3) This impact considers the effect of principal payments received and amortization of cost basis adjustments. Changes in the fair value of assets and liabilities that are measured at fair value on a recurring basis and that are categorized as Level 3 within the fair value hierarchy are attributed in the following table to identified activities that occurred during the three months ended September 30, 2019: Investments in Debt (in thousands) Securities Balance, July 1, 2019 $ 35,236 Net change in AOCI (1) (890) Impact from sales or redemptions (264) Impact from settlements (2) 39 Balance, September 30, 2019 $ 34,121 (1) This amount represents the reclassification into the Consolidated Statements of Operations of $1.9 million of net fair value gains related to bonds that were sold or redeemed during this reporting period, partially offset by $1.0 million of net unrealized gains recognized during this reporting period. (2) This impact considers the effect of principal payments received and amortization of cost basis adjustments. The following table provides information about the amount of realized and unrealized gains that were reported in the Company’s Consolidated Statements of Operations for the three months ended September 30, 2019, related to activity presented in the preceding table: Net losses on (in thousands) bonds (1) Additional realized gains recognized $ 2,156 Total net gains reported in earnings $ 2,156 (1) Amounts are classified as “Net gains on bonds” in the Company’s Consolidated Statements of Operations. Changes in the fair value of assets and liabilities that are measured at fair value on a recurring basis and that are categorized as Level 3 within the fair value hierarchy are attributed in the following table to identified activities that occurred during the nine months ended September 30, 2020: Investments in Debt Loans Held for (in thousands) Securities Investment Balance, January 1, 2020 $ 31,365 $ 500 Net gains included in earnings (1) — 22 Net change in AOCI (2) (1,024) — Impact from loan originations / advances — 780 Impact from settlements (3) (36) — Balance, September 30, 2020 $ 30,305 $ 1,302 (1) This amount represents $22 thousand of unrealized gains recognized during this reporting period in connection with the Company’s loan investment held at September 30, 2020. This amount is classified as “Net gains (losses) on loans and extinguishment of liabilities” in the Company’s Consolidated Statement of Operations. (2) This amount represents $1.0 million of net unrealized losses recognized during this reporting period in connection with the Company’s bond investments. (3) This impact considers the effect of principal payments received and amortization of cost basis adjustments. Changes in the fair value of assets and liabilities that are measured at fair value on a recurring basis and that are categorized as Level 3 within the fair value hierarchy are attributed in the following table to identified activities that occurred during the nine months ended September 30, 2019: Investments in Debt Derivative (in thousands) Securities Assets Balance, January 1, 2019 $ 97,190 $ 1,130 Net losses included in earnings — (195) Net change in AOCI (1) (25,118) — Impact from sales or redemptions (37,633) — Impact from settlements (2) (318) (935) Balance, September 30, 2019 $ 34,121 $ — (1) This amount represents the reclassification into the Consolidated Statements of Operations of $26.1 million of net fair value gains related to bonds that were sold or redeemed during this reporting period, partially offset by $1.0 million of net unrealized gains recognized during this reporting period. (2) This impact considers the effect of principal payments received and amortization of cost basis adjustments. Included in this amount is $0.3 million of cumulative transition adjustment to retained earnings that was recognized in connection with the Company’s adoption of ASU No. 2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-10): Premium Amortization on Purchased Callable Debt Securities” on January 1, 2019. The following table provides information about the amount of realized and unrealized gains (losses) that were reported in the Company’s Consolidated Statements of Operations for the nine months ended September 30, 2019, related to activity presented in the preceding table: Net gains on Net losses on (in thousands) bonds (1) derivatives (2) Change in unrealized losses related to assets and liabilities held at January 1, 2019, but settled during 2019 $ — $ (195) Additional realized gains recognized 26,420 152 Total net gains (losses) reported in earnings $ 26,420 $ (43) (1) Amounts are classified as “Net gains on bonds” in the Company’s Consolidated Statements of Operations. (2) Amounts are classified as “Net losses on derivatives” in the Company’s Consolidated Statements of Operations. Fair Value Measurements of Instruments That Are Classified as Level 3 Significant unobservable inputs presented in the tables that follow are those we consider significant to the fair value of the Level 3 asset or liability. We consider unobservable inputs to be significant if, by their exclusion, the fair value of the Level 3 asset or liability would be impacted by a predetermined percentage change, or based on qualitative factors, such as nature of the instrument, type of valuation technique used and the significance of the unobservable inputs relative to other inputs used within the valuation. Following is a description of the significant unobservable inputs that are referenced in the tables below: ● Market yield – is a market rate of return used to calculate the present value of future expected cash flows to arrive at the fair value of an instrument. The market yield typically consists of a benchmark rate component and a risk premium component. The benchmark rate component, for example, Municipal Market Data or SIFMA index rates, is generally observable within the market and is necessary to appropriately reflect the time value of money. The risk premium component reflects the amount of compensation market participants require due to the uncertainty inherent in the instrument’s cash flows resulting from risks such as credit and liquidity. A significant decrease in this input in isolation would result in a significantly higher fair value measurement. ● Capitalization rate – is calculated as the ratio between the NOI produced by a commercial real estate property and the price for the asset. A significant decrease in this input in isolation would result in a significantly higher fair value measurement. ● NOI annual growth rate – is the amount of future growth in NOI that the Company projects each property to generate on an annual basis over the 10-year projection period. These annual growth estimates take into account the Company’s expectation about the future increases, or decreases, in rental rates, vacancy rates, bad debt expense, concessions and operating expenses for each property. Generally, an increase in NOI will result in an increase to the fair value of the property. ● Valuation technique weighting factors – represent factors that, in the aggregate, sum to 100% and that are individually applied to two or more indications of fair value considering the reasonableness of the range indicated by those results. ● Contract or bid prices – represents a third-party sale agreement or purchase offer executed in connection with the pending sale of an affordable housing property that secures one of the Company’s bond investments. In instances where multiple purchase offers have been received an average of the offers received is utilized. Estimated proceeds from the sale, or average offers, of such property that are determined to be allocable to a bond investment are used to measure the investment’s fair value at a given reporting date. The tables that follow provide quantitative information about the valuation techniques and the range and weighted-average of significant unobservable inputs used in the valuation of substantially all of our Level 3 assets and liabilities measured at fair value on a recurring basis for which we use an internal model to measure fair value. The significant unobservable inputs for Level 3 assets and liabilities that are valued using dealer pricing are not included in the tables, as the specific inputs applied are not provided by the dealer. Fair Value Measurement at September 30, 2020 Significant Significant Valuation Unobservable Weighted (dollars in thousands) Fair Value Techniques Inputs (1) Range (1) Average Recurring Fair Value Measurements: Investments in debt securities: Infrastructure Bond $ 24,099 Discounted cash flow Market yield 7.5 % N/A Multifamily tax-exempt bond Subordinated cash flow 6,206 Discounted cash flow Market yield 7.2 N/A Capitalization rate 6.4 N/A Loans held for investment 1,302 Discounted cash flow Market yield 7.1 N/A (1) Unobservable inputs reflect information that is not based upon independent sources that are readily available. These inputs are based upon assumptions and internally generated data made by the Company, which may include significant judgment that has been developed based upon available information from third-party sources or dealers about what a market participant would use in valuing the asset. Fair Value Measurement at December 31, 2019 Significant Significant Valuation Unobservable Weighted (dollars in thousands) Fair Value Techniques Inputs (1) Range (1) Average (2) Recurring Fair Value Measurements: Investments in debt securities: Infrastructure Bond $ 25,339 Discounted cash flow Market yield 7.0 % N/A Multifamily tax-exempt bond Subordinated cash flow 6,026 Discounted cash flow Market yield 7.3 N/A Capitalization rate 6.2 N/A Valuation technique weighting factors: • NOI annual growth rate ( 0.7 N/A • Bid price ( $ 16,611 N/A Loans held for investment 500 Discounted cash flow Market yield 8.0 % 8.0 % (1) Unobservable inputs reflect information that is not based upon independent sources that are readily available. These inputs are based upon assumptions and internally generated data made by the Company, which may include significant judgment that has been developed based upon available information from third-party sources or dealers about what a market participant would use in valuing the asset. (2) Weighted-averages are calculated using outstanding UPB for cash instruments, such as loans and securities, and notional amounts for derivative instruments. Nonrecurring Changes in Fair Value At June 30, 2020, the Company’s equity investment in the SF Venture was assessed to be other-than-temporarily impaired. Consequently, the Company adjusted the carrying value of such investment to its fair value as of such reporting date, which was estimated by determining the Company’s share of the net asset value (“ NAV Additional Disclosures Related To The Fair Value of Financial Instruments That Are Not Carried On The Consolidated Balance Sheets at Fair Value The tables that follow provide information about the carrying amounts and fair values of those financial instruments of the Company for which fair value is not measured on a recurring basis and organizes the information based upon the level of the fair value hierarchy within which fair value measurements are categorized. Assets and liabilities that do not represent financial instruments ( e.g. At September 30, 2020 Carrying Fair Value (in thousands) Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 21,784 $ 21,784 $ — $ — Restricted cash 17,224 17,224 — — Liabilities: Notes payable and other debt - bond related 23,377 — — 23,509 Notes payable and other debt - non-bond related 17,530 — — 16,872 Revolving credit facility obligations 103,700 — — 103,700 Subordinated debt issued by MFH 93,774 — — 44,122 At December 31, 2019 Carrying Fair Value (in thousands) Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 8,555 $ 8,555 $ — $ — Restricted cash 4,250 4,250 — — Loans held for investment 53,600 — — 54,276 Liabilities: Notes payable and other debt - non-bond related 11,828 — — 10,888 Revolving credit facility obligations 94,500 — — 94,500 Subordinated debt issued by MFH 95,488 — — 46,934 Valuation Techniques Cash and cash equivalents and restricted cash Loans held for investment – Notes payable and other debt Subordinated debt Revolving credit facility debt obligations |
GUARANTEES AND COLLATERAL
GUARANTEES AND COLLATERAL | 9 Months Ended |
Sep. 30, 2020 | |
GUARANTEES AND COLLATERAL [Abstract] | |
GUARANTEES AND COLLATERAL | Note 9—Guarantees and Collateral Guarantees The Company has guaranteed the performance of payment obligations of certain of its subsidiaries under various debt agreements to third parties. The Company has guaranteed all MFH payment obligations and performance under the terms of the Company’s subordinated debt. However, the Company’s guarantee of the subordinated debt is subordinated to repayment of any senior debt of the Company. Additionally, contemporaneously with the execution of the revolving credit facility, the Company agreed to guarantee all payment and performance obligations of MEH under the credit agreement to the lenders. Furthermore, the Company agreed to guarantee all payment and performance obligations of the borrower associated with financing obtained in the second quarter of 2020 related to our direct investment in real estate that is in process of development. Currently, the Company expects that it will not need to make any payments under these guarantees. Collateral and Restricted Assets The following tables summarize assets that are either pledged or restricted for the Company’s use at September 30, 2020 and December 31, 2019: At September 30, 2020 Investments Total Restricted in Debt Investments in Other Assets (in thousands) Cash Securities Partnerships Assets Pledged Debt related to the revolving credit facility $ 1,110 $ — $ 362,403 $ — $ 363,513 Debt related to TRS agreement 10,020 24,099 — — 34,119 Debt related to the Company's REO 250 — — 15,384 15,634 Debt and derivatives related to the Company's 11.85% ownership interest in SAWHF 1,374 — 1,598 2,574 5,546 Interest rate swaps 4,462 — — — 4,462 Other 8 — — — 8 Total $ 17,224 $ 24,099 $ 364,001 $ 17,958 $ 423,282 At December 31, 2019 Total Restricted Investments in Assets (in thousands) Cash Partnerships Pledged Debt related to the revolving credit facility $ 1,070 $ 289,123 $ 290,193 Debt and derivatives related to the Company's 11.85% ownership interest in SAWHF 1,369 7,732 9,101 Interest rate swaps 1,803 — 1,803 Other 8 — 8 Total $ 4,250 $ 296,855 $ 301,105 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2020 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Commitments and Contingencies | Note 10—Commitments and Contingencies Operating Leases The Company had no Litigation and Other Legal Matters In the ordinary course of business, the Company and its subsidiaries are named from time to time as defendants in various litigation matters or may have other claims made against them. These legal proceedings may include claims for substantial or indeterminate compensatory, consequential or punitive damages, or for injunctive or declaratory relief. The Company establishes reserves for litigation matters or other loss contingencies when a loss is probable and can be reasonably estimated. Once established, reserves may be adjusted when new information is obtained. At September 30, 2020, we had no significant litigation matters and we were not aware of any other claims that we believe would have a material adverse impact on our financial condition or results of operations. Other Risks and Uncertainties We are monitoring the economic impact of the COVID-19 pandemic on the performance of our investments and underlying real estate values. Although we have not recognized impairment charges other than that for the SF Venture discussed above, we believe it is reasonably possible that we may be required to recognize one or more material impairment charges over the next 12 months, particularly if underlying economic conditions continue to deteriorate. Because any such impairment charge will be based on future circumstances, we cannot predict at this time whether we will be required to recognize any further impairment charges and, if required, the timing or amount of any impairment charge. With respect to recognized DTA, the Company’s assessment of the likelihood of realizing tax benefits related to DTAs recognized in the fourth quarter of 2019 did not change in the third quarter of 2020. That is, while COVID-19 caused a sharp deterioration in macro-economic conditions, the potential amount and permanence of long-term impacts of those conditions on the Company’s business was uncertain at September 30, 2020. Consequently, the Company did not make an adjustment in the third quarter of 2020 to the carrying value of DTAs that were recognized at December 31, 2019. Nonetheless, given such uncertainty and other factors, we believe it is reasonably possible that, within the next 12 months, a change to the carrying value of recognized DTAs that is material to the Company’s financial statements could be recognized. However, the exact timing and amount of loss recognition depends upon future circumstances and, therefore, cannot be predicted at this time. |
EQUITY
EQUITY | 9 Months Ended |
Sep. 30, 2020 | |
EQUITY [Abstract] | |
Equity | Note 11—Equity Preferred Share Information On January 1, 2019, as part of the Company’s conversion to a corporation, the Company was authorized to issue 5,000,000 of preferred shares, in one or more series, with no par value. As of September 30, 2020, the Board of Directors (“ Board ”) has not authorized any of these shares to be issued and no rights have been established for any of these shares. Common Share Information As of September 30, 2020, the Company was authorized to issue 50,000,000 common shares. The following table provides information about net (loss) income to common shareholders as well as provides information that pertains to weighted-average share counts that were used in per share calculations as presented on the Consolidated Statements of Operations: For the three months ended For the nine months ended September 30, September 30, (in thousands) 2020 2019 2020 2019 Net income (loss) from continuing operations $ 2,936 $ 5,576 $ (3,630) $ 31,685 Net loss from discontinued operations — — — (8) Net income (loss) $ 2,936 $ 5,576 $ (3,630) $ 31,677 Basic and diluted weighted-average shares (1) 5,811 5,887 5,807 5,884 (1) Includes common shares issued and outstanding, as well as deferred shares of non-employee directors that have vested but are not issued and outstanding. Common Shares Effective May 5, 2015, the Company adopted a Tax Benefits Rights Agreement (the “ Rights Plan NOLs On January 3, 2018, the Board approved a waiver of the 4.9% ownership limitation for Hunt, increasing this limitation to the acquisition of 9.9% of the Company’s issued and outstanding shares in any rolling 12-month period without causing a triggering event. At September 30, 2020, the Company had two shareholders who held greater than a 4.9% interest in the Company, one of which was its former Chief Executive Officer and current member of the Board, Michael L. Falcone. On March 11, 2020, the Board named Mr. Falcone an exempted person in accordance with the Rights Plan for open-market share purchases of up to an additional 7,500 common shares, to be completed by December 31, 2020, with the Board reserving all its rights under the Rights Plan for any subsequent purchases. Upon Mr. Falcone’s resignation as Chief Executive Officer on August 12, 2020, he became eligible for Board compensation. Pursuant to the policy of our Governance Committee, each Board member receives one-half of his or her Board compensation in common shares. On November 5, 2020, the Board adopted an Amended and Restated 2012 Non-Employee Directors’ Compensation Plan to coordinate elements of the Rights Plan and share compensation for directors, in addition the Board named Mr. Falcone an exempted person in accordance with the Rights Plan for purposes of his share-based Board compensation. Accumulated Other Comprehensive Income The following table provides information related to the net change in AOCI for the three months ended September 30, 2020: Investments Foreign in Debt Currency (in thousands) Securities Translation AOCI Balance, July 1, 2020 $ 6,726 $ 683 $ 7,409 Net unrealized gains (losses) 272 (99) 173 Income tax losses (75) — (75) Net change in AOCI 197 (99) 98 Balance, September 30, 2020 $ 6,923 $ 584 $ 7,507 The following table provides information related to the net change in AOCI for the three months ended September 30, 2019: Investments Foreign in Debt Currency (in thousands) Securities Translation AOCI Balance, July 1, 2019 $ 13,397 $ 17 $ 13,414 Net unrealized gains 961 217 1,178 Reclassification of fair value gains on sold or redeemed bonds into the Consolidated Statements of Operations (1,851) — (1,851) Net change in AOCI (890) 217 (673) Balance, September 30, 2019 $ 12,507 $ 234 $ 12,741 The following table provides information related to the net change in AOCI for the nine months ended September 30, 2020: Investments Foreign in Debt Currency (in thousands) Securities Translation AOCI Balance, January 1, 2020 $ 7,666 $ (33) $ 7,633 Net unrealized (losses) gains (1,024) 617 (407) Income tax gains 281 — 281 Net change in AOCI (743) 617 (126) Balance, September 30, 2020 $ 6,923 $ 584 $ 7,507 The following table provides information related to the net change in AOCI for the nine months ended September 30, 2019: Investments Foreign in Debt Currency (in thousands) Securities Translation AOCI Balance, January 1, 2019 $ 37,625 $ 72 $ 37,697 Net unrealized gains 997 162 1,159 Reclassification of fair value gains on sold or redeemed bonds into the Consolidated Statements of Operations (26,115) — (26,115) Net change in AOCI (25,118) 162 (24,956) Balance, September 30, 2019 $ 12,507 $ 234 $ 12,741 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2020 | |
STOCK-BASED COMPENSATION [Abstract] | |
Stock-Based Compensation | Note 12—Stock-Based Compensation On January 8, 2018, the Company engaged the External Manager through the execution of a management agreement with the External Manager (the “ Management Agreement Plans Non-employee Directors’ Stock-Based Compensation Plans Employees’ Stock-Based Compensation Plans The following table provides information related to total compensation expense that was recorded for these Plans: For the three months ended For the nine months ended September 30, September 30, (in thousands) 2020 2019 2020 2019 Non-employee Directors’ Stock-Based Compensation Plans $ 223 $ 133 $ 611 $ 461 Employees’ Stock-Based Compensation Plans At September 30, 2020, there were 571,066 share awards available to be issued under Employees’ Stock-Based Compensation Plans. While each existing Employees’ Stock-Based Compensation Plan has been approved by the Board, not all of the Plans have been approved by the Company’s shareholders. The Plans that have not been approved by the Company’s shareholders are currently restricted to the issuance of only stock options. As a result, of the 571,066 shares available under the plans, 73,556 are available to be issued in the form of either stock options or shares, while the remaining 497,510 shares available for issuance must be issued in the form of stock options. Since the Company has no employees, the Company does not expect to issue any of these shares or options. Non-Employee Directors’ Stock-Based Compensation Plans The Non-employee Directors’ Stock-based Compensation Plans authorize a total of 1,130,000 shares for issuance, of which 372,494 were available to be issued at September 30, 2020. The Non-employee Directors’ Stock-based Compensation Plans provide for grants of non-qualified common stock options, common shares, restricted shares and deferred shares. The Non-employee Directors’ Stock-based Compensation Plans provide for directors to be paid $120,000 per year for their services. In addition, the Chairman receives an additional $20,000 per year, the Audit Committee Chair receives an additional $15,000 per year and the other committee chairs receive an additional $10,000 per year. Under this plan, 50% of such compensation is paid in cash and the remaining The table below summarizes non-employee director compensation, including cash, vested options and common and deferred shares, for services rendered for the nine months ended September 30, 2020 and September 30, 2019. The directors are fully vested in the deferred shares at the grant date. Common Deferred Weighted-average Shares Shares Grant Date Options Directors' Fees Cash Granted Granted Share Price Vested Expense September 30, 2020 (1) $ 320,625 5,720 5,946 $ 24.91 — $ 611,250 September 30, 2019 230,625 1,667 5,628 31.61 — 461,250 (1) During the first quarter of 2020, the Board approved the addition of two independent directors. Furthermore, during the third quarter of 2020, our former Chief Executive Officer became a non-employee director. |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES | 9 Months Ended |
Sep. 30, 2020 | |
RELATED PARTY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES [Abstract] | |
Related Party Transactions and Transactions with Affiliates | Note 13—Related Party Transactions and Transactions with Affiliates Transactions with Hunt External Management Fees and Expense Reimbursements On January 8, 2018, the Company sold certain businesses and assets (the “ Disposition first $500 million of common shareholders’ equity determined in accordance with GAAP in the U.S. on a fully diluted basis, adjusted to exclude the effect of (a) the carrying value of the Company’s DTAs, and (b) any gains or losses attributable to noncontrolling interests (“ GAAP Common Shareholders’ Equity CEO CFO The current term of the Management Agreement extends to December 31, 2022 and automatically renews thereafter for additional two-year terms. Either the Company or the External Manager may, upon written notice, decline to renew or terminate the Management Agreement without cause, effective at the end of the initial term or any renewal term. If the Company declines to renew or terminates the Management Agreement without cause or the External Manager terminates for cause, the Company is required to pay a termination fee to the External Manager equal to three times the sum of the average annual base and incentive management fees, plus one times the sum of the average renewable energy business expense reimbursements and the employee cost reimbursement expense, in each case, during the prior two-year period. The Company may also terminate the Management Agreement for cause. No termination fee is payable upon a termination by the Company for cause or upon a termination by the External Manager without cause. For the three months and nine months ended September 30, 2020 and September 30, 2019, no incentive fee was earned by our External Manager. During the three months ended September 30, 2020 and September 30, 2019, the Company recognized $1.8 million and $1.6 million, respectively, and $7.0 million and $6.0 million for the nine months ended September 30, 2020 and September 30, 2019, respectively, of management fees and expense reimbursements payable to our External Manager in its Consolidated Statements of Operations. At September 30, 2020 and December 31, 2019, $1.8 million and $1.2 million, respectively, of management fees and expense reimbursements was payable to the External Manager. Loans HFI and Investment in Partnerships As consideration for the Disposition, Hunt agreed to pay the Company $57.0 million and to assume certain liabilities of the Company. The Company provided seller financing through a $57.0 million note receivable from Hunt that had an initial term of seven years, prepayable at any time and bearing interest at the rate of 5% per annum. On October 4, 2018, the Company’s receivable from Hunt increased to $67.0 million as part of Hunt’s election to take assignment of the Company’s agreements to acquire (i) the LIHTC business of Morrison Grove Management and (ii) certain assets pertaining to a specific LIHTC property from affiliates of Morrison Grove Management, LLC (these agreements are collectively referred hereinafter to as the “ MGM Agreements On April 1, 2019, the Company purchased Hunt’s 30% ownership interest in SDL that pertained to an investment in a specific loan for $11.3 million, which represents the price that was projected to cause the Company and Hunt to achieve the same internal rate of return (“ IRR On December 20, 2019, the Company sold to Hunt a loan and three limited partner interests in partnerships that own affordable housing and in which our ownership interest ranged from 74.25% to 74.92%. This loan had a UPB and carrying value of $1.1 million and $0.3 million, respectively, while the three limited partner interests had a carrying value of $0.9 million at the time of sale. The Company received $3.1 million in sales proceed and recognized $1.9 million of gains in the Consolidated Statements of Operations. Investment in Debt Securities On April 25, 2019, the Company received $13.1 million of net proceeds from the sale of an affordable housing property that secured one of the Company’s non-performing bond investments. Hunt, as bond servicing agent, waived $0.9 million of servicing fees that were otherwise due and payable in priority to the Company’s bond investment. As a result, the Company received $0.9 million of additional bond redemption proceeds that we otherwise would not have received. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2020 | |
SEGMENT INFORMATION [Abstract] | |
Segment Information | Note 14—Segment Information At September 30, 2020 and December 31, 2019, the Company operates as a single reporting segment. Therefore, all required segment information can be found in our consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 9 Months Ended |
Sep. 30, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“ GAAP The Company evaluates subsequent events through the date of filing with the U.S. Securities and Exchange Commission (“ SEC |
Changes in Presentation | Changes in Presentation We have made certain reclassifications to prior year financial statements in order to enhance their comparability with current year financial statements. |
Use of Estimates | Use of Estimates The preparation of the Company’s financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, commitments and contingencies, and revenues and expenses. Management made estimates in certain areas, including the determination of the Company’s valuation allowance established against its DTAs as well as in the fair value measurement of bonds and derivative instruments. Actual results could differ materially from these estimates. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company as well as those entities in which the Company has a controlling financial interest, including wholly owned subsidiaries of the Company. All intercompany transactions and balances have been eliminated in consolidation. Equity investments in unconsolidated entities where the Company has the ability to exercise significant influence over the operations of the entity, but is not considered the primary beneficiary, are accounted for using the equity method of accounting. |
New Accounting Guidance | Accounting Guidance Adoption of Accounting Standards Accounting for Financial Instruments In March 2017, the Financial Accounting Standards Board (“ FASB ASU “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” Accounting for Income Taxes In February 2018, the FASB issued ASU No. 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” Tax Act Accounting for Stock Compensation In June 2018, the FASB issued ASU 2018-07 “ .” This guidance expands the scope of ASC Topic 718 to include all share-based payment arrangements related to the acquisition of goods and services from both nonemployees and employees. We adopted this new guidance on its effective date of January 1, 2019. The adoption of this guidance did not impact the Company’s Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Equity or Consolidated Statements of Cash Flows as of the adoption date. Accounting for Financial Instruments – Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” Accounting for Financial Instruments – Rate Reform In March 2020, the FASB issued ASU No. 2020-04, “ .” This guidance is elective and is provided for contract modifications that meet certain Codification topics and subtopics. The optional amendment of this new guidance is effective March 12, 2020 through December 31, 2022. We did not make any elections provided by this new guidance and, therefore, the adoption of these accounting principles did not impact the Company’s Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Equity or Consolidated Statements of Cash Flows as of the adoption date. Issued Accounting Standards Not Yet Adopted Accounting for Financial Instruments – Credit Losses In November 2019, the FASB issued ASU No. 2019-10, “ Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815) and Leases (Topic 842): Effective Dates.” In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Improvements.” In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” In May 2019, the FASB issued ASU No. 2019-05, “ Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief.” In November 2019, the FASB issued ASU No. 2019-11, “ Codification Improvements to Topic 326, Financial Instruments – Credit Losses.” In February 2020, the FASB issued ASU No. 2020-02, “ Financial Instruments – Credit Losses (Topic 326) and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842) (SEC Update).” Accounting for Financial Instruments – General In March 2020, the FASB issued ASU No. 2020-03, “ Codification Improvements to Financial Instruments.” are not effective until January 1, 2023, we are evaluating the potential impact of the new guidance on our consolidated financial statements. Accounting for Income Taxes In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” |
INVESTMENTS IN DEBT SECURITIES
INVESTMENTS IN DEBT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
INVESTMENTS IN DEBT SECURITIES [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | At September 30, 2020 Gross Amortized Unrealized FV as a % (in thousands) UPB Cost (1) Gains FV of UPB Infrastructure Bond $ 26,715 $ 20,761 $ 3,338 $ 24,099 90% Multifamily tax-exempt bond 4,000 — 6,206 6,206 155% Total $ 30,715 $ 20,761 $ 9,544 $ 30,305 99% At December 31, 2019 Gross Amortized Unrealized FV as a % (in thousands) UPB Cost (1) Gains FV of UPB Infrastructure Bond $ 26,885 $ 20,797 $ 4,542 $ 25,339 94% Multifamily tax-exempt bond 4,000 — 6,026 6,026 151% Total $ 30,885 $ 20,797 $ 10,568 $ 31,365 102% (1) Amortized cost consists of the UPB, unamortized premiums, discounts and other cost basis adjustments, as well as other-than-temporary-impairment (“ OTTI ”) recognized in “Impairments” in our Consolidated Statements of Operations. |
Gain (Loss) on Investments | For the three months ended For the nine months ended September 30, September 30, (in thousands) 2020 2019 2020 2019 Gains recognized at time of sale or redemption $ — $ 2,156 $ — $ 26,420 |
INVESTMENTS IN PARTNERSHIPS (Ta
INVESTMENTS IN PARTNERSHIPS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Investments in Partnerships | The following table provides information about the carrying value of the Company’s investments in partnerships and ventures: At At September 30, December 31, (in thousands) 2020 2019 Investment in Solar Ventures $ 362,403 $ 289,123 Investments in U.S. real estate partnerships 9,706 19,822 Investment in South Africa Workforce Housing Fund (" SAWHF 1,598 7,732 Total investments in partnerships $ 373,707 $ 316,677 |
U.S. Real Estate Partnerships [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Investments in Partnerships | The following table provides information about the total assets, debt and other liabilities of the U.S. real estate partnerships in which the Company held an equity investment: At At September 30, December 31, 2020 2019 (in thousands) Total assets $ 50,406 $ 51,718 Debt 6,752 6,426 Other liabilities 20,307 20,493 The following table provides information about the gross revenue, operating expenses and net loss of U.S. real estate partnerships in which the Company had an equity investment: For the three months ended For the nine months ended September 30, September 30, (in thousands) 2020 2019 2020 2019 Gross revenue $ 648 $ 624 $ 1,839 $ 1,920 Operating expenses 515 437 1,623 1,380 Net loss and net loss attributable to the entities (538) (727) (1,937) (1,288) |
Solar Ventures Investment [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Investments in Partnerships | The following table provides information about the carrying amount of total assets and liabilities of all renewable energy related investees in which the Company had an equity method investment: At At September 30, December 31, 2020 2019 (in thousands) Total assets (1) $ 837,977 $ 706,792 Other liabilities (2) 4,988 22,135 (1) Assets of these ventures are primarily comprised of loans that are carried at fair value. (2) Other liabilities of these ventures are primarily comprised of interest reserves. The following table provides information about the gross revenue, operating expenses and net income of all renewable energy related investees in which the Company had an equity method investment: For the three months ended For the nine months ended September 30, September 30, (in thousands) 2020 2019 2020 2019 Gross revenue $ 23,123 $ 16,081 $ 69,540 $ 38,367 Operating expenses 1,403 1,144 4,945 4,687 Net income and net income attributable to the entities 21,754 14,940 64,585 33,749 |
SAWHF | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Investments in Partnerships | The following table provides information about the carrying value of total assets and other liabilities of SAWHF: At At September 30, December 31, 2020 2019 (in thousands) Total assets $ 13,785 $ 56,356 Other liabilities 91 130 The following table provides information about the gross revenue, operating expenses and net income of SAWHF: For the three months ended For the nine months ended September 30, September 30, (in thousands) 2020 2019 2020 2019 Gross revenue $ 57 $ 1,321 $ 1,574 $ 4,090 Operating expenses 119 236 755 722 Net income (loss) and net income (loss) attributable to the entity 790 (1,092) 1,911 1,690 |
LOANS HELD FOR INVESTMENT ("H_2
LOANS HELD FOR INVESTMENT ("HFI") (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
LOANS HELD FOR INVESTMENT ("HFI") [Abstract] | |
Schedule of loans Held For Investments | At At September 30, December 31, (in thousands) 2020 2019 UPB $ 1,280 $ 54,100 Fair value adjustments 22 — Loans HFI, net $ 1,302 $ 54,100 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
OTHER ASSETS [Abstract] | |
Schedule of Other Assets | At At September 30, December 31, (in thousands) 2020 2019 Other assets: Real estate owned $ 15,384 $ 8,397 Debt issue costs 2,297 2,675 Equity investments 2,574 — Derivative assets 569 597 Accrued interest receivable 551 853 Other assets 576 462 Total other assets $ 21,951 $ 12,984 |
Schedule Of Real Estate Owned, Held For Use | At At September 30, December 31, (in thousands) 2020 2019 Land improvements $ 12,765 $ 5,778 Land 2,619 2,619 Total $ 15,384 $ 8,397 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
DEBT [Abstract] | |
Schedule of Debt | At At September 30, 2020 December 31, 2019 Wtd. Avg. Wtd. Avg. Effective Effective Carrying Interest Carrying Interest (dollars in thousands) Value (4) Rate (4) Value (4) Rate (4) Other Debt Subordinated debt (1) Due within one year $ 2,225 1.6 % $ 2,212 3.2 % Due after one year 91,549 1.6 93,276 3.2 Revolving credit facility debt obligations Due within one year — — — — Due after one year 103,700 5.6 94,500 5.6 Notes payable and other debt (2) Due within one year 4,072 14.0 6,828 14.7 Due after one year 13,458 5.2 1,500 5.0 Total other debt 215,004 4.0 198,316 4.8 Asset Related Debt Notes Payable and Other Debt Bond related debt (3) Due within one year 275 2.8 — — Due after one year 23,102 2.8 — — Non-bond related debt Due within one year — — 650 5.0 Due after one year — — 2,850 5.0 Total asset related debt 23,377 2.8 3,500 5.0 Total debt $ 238,381 3.9 % $ 201,816 4.8 % (1) The subordinated debt balances include net cost basis adjustments of $7.0 million and $7.4 million at September 30, 2020 and December 31, 2019, respectively, that pertain to premiums and debt issuance costs. (2) Included in Other Debt – notes payable and other debt were unamortized debt issuance costs of $0.1 million at September 30, 2020 and December 31, 2019. (3) Included in Asset Related Debt – notes payable and other debt – bond related debt were unamortized debt issuance costs of $0.1 million at September 30, 2020. (4) Carrying value amounts and weighted-average interest rates reported in this table include the effects of any discounts, premiums and other cost basis adjustments. An effective interest rate represents an internal rate of return of a debt instrument that makes the net present value of all cash flows, inclusive of cash flows that give rise to cost basis adjustments, equal zero and in the case of (i) fixed rate instruments, is measured as of an instrument’s issuance date and (ii) variable rate instruments, is measured as of each date that a reference interest rate resets. |
Schedule of Maturities of Long-term Debt | Asset Related Debt (in thousands) and Other Debt 2020 $ 4,529 2021 2,278 2022 128,550 2023 11,222 2024 1,813 Thereafter 83,197 Net premium and debt issue costs 6,792 Total debt $ 238,381 |
Schedule of Subordinate Debt | (dollars in thousands) Net Premium Interim and Debt Carrying Principal Issuer UPB Issuance Costs Value Payments (1) Maturity Date Coupon MFH $ 25,611 $ 2,152 $ 27,763 Amortizing March 30, 2035 three-month LIBOR plus 2.0% MFH 23,288 1,954 25,242 Amortizing April 30, 2035 three-month LIBOR plus 2.0% MFH 13,424 1,042 14,466 Amortizing July 30, 2035 three-month LIBOR plus 2.0% MFH 24,408 1,895 26,303 Amortizing July 30, 2035 three-month LIBOR plus 2.0% Total $ 86,731 $ 7,043 $ 93,774 (1) The subordinated principal amortizes 2.0% per annum. |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
DERIVATIVE INSTRUMENTS [Abstract] | |
Schedule of the Company's Derivative Assets and Liabilities | Fair Value At At September 30, 2020 December 31, 2019 (in thousands) Assets Liabilities Assets Liabilities Basis swaps $ — $ 618 $ 318 $ — Interest rate caps 53 — 227 — Interest rate swaps — 1,886 52 — Foreign currency forward exchange 516 — — 117 Gain share arrangement (1) — 24 — — Total carrying value of derivative instruments $ 569 $ 2,528 $ 597 $ 117 (1) Refer to Note 6, “Debt” for more information. |
Schedule of Derivative Notional Amounts | Notional Amounts At At September 30, December 31, (in thousands) 2020 2019 Basis swaps $ 35,000 $ 35,000 Interest rate caps 35,000 35,000 Interest rate swaps 35,000 35,000 Foreign currency forward exchange 3,915 4,685 Total notional amount of derivative instruments $ 108,915 $ 109,685 |
Schedule of Net Gains Recognized Recognized In Connection With Derivative Instruments | The following table provides information about the net losses that were recognized by the Company in connection with its derivative instruments: For the three months ended For the nine months ended September 30, September 30, (in thousands) 2020 2019 2020 2019 Total return swaps (1) $ — $ — $ — $ (42) Basis swaps (2) 29 (273) (907) (526) Interest rate caps (20) (234) (174) (797) Interest rate swaps (3) (28) (441) (2,072) (2,717) Foreign currency forward exchange (149) 269 726 89 Gain share arrangement 12 — (24) — Total net losses of derivative instruments $ (156) $ (679) $ (2,451) $ (3,993) (1) The accrual of net interest payments that are made in connection with TRS agreements that are reported as derivative instruments are classified as a component of “Net losses on derivatives” on the Consolidated Statements of Operations. Net cash received was $0.2 million for the nine months ended September 30, 2019. (2) The accrual of net interest payments that are made in connection with basis swaps is classified as a component of “Net losses on derivatives” on the Consolidated Statements of Operations. Net cash received was $0.1 million for the three months and nine months ended September 30, 2020. Net cash received was $0.1 million and $0.2 million for the three months and nine months ended September 30, 2019, respectively. (3) The accrual of net interest payments that are made in connection with interest rate swaps is classified as a component of “Net losses on derivatives” on the Consolidated Statements of Operations. Net cash paid was $0.1 million for the three months and nine months ended September 30, 2020, while the net cash received was de minimis for the three months ended September 30, 2019 and $0.2 million for the nine months ended September 30, 2019. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
FAIR VALUE [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | At September 30, Fair Value Measurements (in thousands) 2020 Level 1 Level 2 Level 3 Assets: Investments in debt securities $ 30,305 $ — $ — $ 30,305 Loans held for investment 1,302 — — 1,302 Equity investments 2,574 2,574 — — Derivative instruments 569 — 569 — Liabilities: Derivative instruments $ 2,528 $ — $ 2,528 $ — At December 31, Fair Value Measurements (in thousands) 2019 Level 1 Level 2 Level 3 Assets: Investments in debt securities $ 31,365 $ — $ — $ 31,365 Loans held for investment 500 — — 500 Derivative instruments 597 — 597 — Liabilities: Derivative instruments $ 117 $ — $ 117 $ — |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | Changes in the fair value of assets and liabilities that are measured at fair value on a recurring basis and that are categorized as Level 3 within the fair value hierarchy are attributed in the following table to identified activities that occurred during the three months ended September 30, 2020: Investments in Loans Held for (in thousands) Debt Securities Investment Balance, July 1, 2020 $ 29,988 $ 1,291 Net gains included in earnings (1) — 11 Net change in AOCI (2) 272 — Impact from sales or redemptions — — Impact from settlements (3) 45 — Balance, September 30, 2020 $ 30,305 $ 1,302 (1) This amount represents $11 thousand of unrealized gains recognized during this reporting period in connection with the Company’s loan investment held at September 30, 2020. This amount is classified as “Net gains (losses) on loans and extinguishment of liabilities” in the Company’s Consolidated Statement of Operations. (2) This amount represents $0.3 million of net unrealized gains recognized during this reporting period in connection with the Company’s bond investments. (3) This impact considers the effect of principal payments received and amortization of cost basis adjustments. Changes in the fair value of assets and liabilities that are measured at fair value on a recurring basis and that are categorized as Level 3 within the fair value hierarchy are attributed in the following table to identified activities that occurred during the three months ended September 30, 2019: Investments in Debt (in thousands) Securities Balance, July 1, 2019 $ 35,236 Net change in AOCI (1) (890) Impact from sales or redemptions (264) Impact from settlements (2) 39 Balance, September 30, 2019 $ 34,121 (1) This amount represents the reclassification into the Consolidated Statements of Operations of $1.9 million of net fair value gains related to bonds that were sold or redeemed during this reporting period, partially offset by $1.0 million of net unrealized gains recognized during this reporting period. (2) This impact considers the effect of principal payments received and amortization of cost basis adjustments. The following table provides information about the amount of realized and unrealized gains that were reported in the Company’s Consolidated Statements of Operations for the three months ended September 30, 2019, related to activity presented in the preceding table: Net losses on (in thousands) bonds (1) Additional realized gains recognized $ 2,156 Total net gains reported in earnings $ 2,156 (1) Amounts are classified as “Net gains on bonds” in the Company’s Consolidated Statements of Operations. Changes in the fair value of assets and liabilities that are measured at fair value on a recurring basis and that are categorized as Level 3 within the fair value hierarchy are attributed in the following table to identified activities that occurred during the nine months ended September 30, 2020: Investments in Debt Loans Held for (in thousands) Securities Investment Balance, January 1, 2020 $ 31,365 $ 500 Net gains included in earnings (1) — 22 Net change in AOCI (2) (1,024) — Impact from loan originations / advances — 780 Impact from settlements (3) (36) — Balance, September 30, 2020 $ 30,305 $ 1,302 (1) This amount represents $22 thousand of unrealized gains recognized during this reporting period in connection with the Company’s loan investment held at September 30, 2020. This amount is classified as “Net gains (losses) on loans and extinguishment of liabilities” in the Company’s Consolidated Statement of Operations. (2) This amount represents $1.0 million of net unrealized losses recognized during this reporting period in connection with the Company’s bond investments. (3) This impact considers the effect of principal payments received and amortization of cost basis adjustments. Changes in the fair value of assets and liabilities that are measured at fair value on a recurring basis and that are categorized as Level 3 within the fair value hierarchy are attributed in the following table to identified activities that occurred during the nine months ended September 30, 2019: Investments in Debt Derivative (in thousands) Securities Assets Balance, January 1, 2019 $ 97,190 $ 1,130 Net losses included in earnings — (195) Net change in AOCI (1) (25,118) — Impact from sales or redemptions (37,633) — Impact from settlements (2) (318) (935) Balance, September 30, 2019 $ 34,121 $ — (1) This amount represents the reclassification into the Consolidated Statements of Operations of $26.1 million of net fair value gains related to bonds that were sold or redeemed during this reporting period, partially offset by $1.0 million of net unrealized gains recognized during this reporting period. (2) This impact considers the effect of principal payments received and amortization of cost basis adjustments. Included in this amount is $0.3 million of cumulative transition adjustment to retained earnings that was recognized in connection with the Company’s adoption of ASU No. 2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-10): Premium Amortization on Purchased Callable Debt Securities” on January 1, 2019. The following table provides information about the amount of realized and unrealized gains (losses) that were reported in the Company’s Consolidated Statements of Operations for the nine months ended September 30, 2019, related to activity presented in the preceding table: Net gains on Net losses on (in thousands) bonds (1) derivatives (2) Change in unrealized losses related to assets and liabilities held at January 1, 2019, but settled during 2019 $ — $ (195) Additional realized gains recognized 26,420 152 Total net gains (losses) reported in earnings $ 26,420 $ (43) (1) Amounts are classified as “Net gains on bonds” in the Company’s Consolidated Statements of Operations. (2) Amounts are classified as “Net losses on derivatives” in the Company’s Consolidated Statements of Operations. |
Fair Value Measurements By Level 3 Valuation Technique | Fair Value Measurement at September 30, 2020 Significant Significant Valuation Unobservable Weighted (dollars in thousands) Fair Value Techniques Inputs (1) Range (1) Average Recurring Fair Value Measurements: Investments in debt securities: Infrastructure Bond $ 24,099 Discounted cash flow Market yield 7.5 % N/A Multifamily tax-exempt bond Subordinated cash flow 6,206 Discounted cash flow Market yield 7.2 N/A Capitalization rate 6.4 N/A Loans held for investment 1,302 Discounted cash flow Market yield 7.1 N/A (1) Unobservable inputs reflect information that is not based upon independent sources that are readily available. These inputs are based upon assumptions and internally generated data made by the Company, which may include significant judgment that has been developed based upon available information from third-party sources or dealers about what a market participant would use in valuing the asset. Fair Value Measurement at December 31, 2019 Significant Significant Valuation Unobservable Weighted (dollars in thousands) Fair Value Techniques Inputs (1) Range (1) Average (2) Recurring Fair Value Measurements: Investments in debt securities: Infrastructure Bond $ 25,339 Discounted cash flow Market yield 7.0 % N/A Multifamily tax-exempt bond Subordinated cash flow 6,026 Discounted cash flow Market yield 7.3 N/A Capitalization rate 6.2 N/A Valuation technique weighting factors: • NOI annual growth rate ( 0.7 N/A • Bid price ( $ 16,611 N/A Loans held for investment 500 Discounted cash flow Market yield 8.0 % 8.0 % (1) Unobservable inputs reflect information that is not based upon independent sources that are readily available. These inputs are based upon assumptions and internally generated data made by the Company, which may include significant judgment that has been developed based upon available information from third-party sources or dealers about what a market participant would use in valuing the asset. (2) Weighted-averages are calculated using outstanding UPB for cash instruments, such as loans and securities, and notional amounts for derivative instruments. |
Fair Value, by Balance Sheet Grouping | At September 30, 2020 Carrying Fair Value (in thousands) Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 21,784 $ 21,784 $ — $ — Restricted cash 17,224 17,224 — — Liabilities: Notes payable and other debt - bond related 23,377 — — 23,509 Notes payable and other debt - non-bond related 17,530 — — 16,872 Revolving credit facility obligations 103,700 — — 103,700 Subordinated debt issued by MFH 93,774 — — 44,122 At December 31, 2019 Carrying Fair Value (in thousands) Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 8,555 $ 8,555 $ — $ — Restricted cash 4,250 4,250 — — Loans held for investment 53,600 — — 54,276 Liabilities: Notes payable and other debt - non-bond related 11,828 — — 10,888 Revolving credit facility obligations 94,500 — — 94,500 Subordinated debt issued by MFH 95,488 — — 46,934 |
GUARANTEES AND COLLATERAL (Tabl
GUARANTEES AND COLLATERAL (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
GUARANTEES AND COLLATERAL [Abstract] | |
Schedule of Financial Instruments Owned and Pledged as Collateral | At September 30, 2020 Investments Total Restricted in Debt Investments in Other Assets (in thousands) Cash Securities Partnerships Assets Pledged Debt related to the revolving credit facility $ 1,110 $ — $ 362,403 $ — $ 363,513 Debt related to TRS agreement 10,020 24,099 — — 34,119 Debt related to the Company's REO 250 — — 15,384 15,634 Debt and derivatives related to the Company's 11.85% ownership interest in SAWHF 1,374 — 1,598 2,574 5,546 Interest rate swaps 4,462 — — — 4,462 Other 8 — — — 8 Total $ 17,224 $ 24,099 $ 364,001 $ 17,958 $ 423,282 At December 31, 2019 Total Restricted Investments in Assets (in thousands) Cash Partnerships Pledged Debt related to the revolving credit facility $ 1,070 $ 289,123 $ 290,193 Debt and derivatives related to the Company's 11.85% ownership interest in SAWHF 1,369 7,732 9,101 Interest rate swaps 1,803 — 1,803 Other 8 — 8 Total $ 4,250 $ 296,855 $ 301,105 |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
EQUITY [Abstract] | |
Summary of Net (Loss) Income to Common Shareholders | For the three months ended For the nine months ended September 30, September 30, (in thousands) 2020 2019 2020 2019 Net income (loss) from continuing operations $ 2,936 $ 5,576 $ (3,630) $ 31,685 Net loss from discontinued operations — — — (8) Net income (loss) $ 2,936 $ 5,576 $ (3,630) $ 31,677 Basic and diluted weighted-average shares (1) 5,811 5,887 5,807 5,884 (1) Includes common shares issued and outstanding, as well as deferred shares of non-employee directors that have vested but are not issued and outstanding. |
Schedule of Accumulated Other Comprehensive Income | The following table provides information related to the net change in AOCI for the three months ended September 30, 2020: Investments Foreign in Debt Currency (in thousands) Securities Translation AOCI Balance, July 1, 2020 $ 6,726 $ 683 $ 7,409 Net unrealized gains (losses) 272 (99) 173 Income tax losses (75) — (75) Net change in AOCI 197 (99) 98 Balance, September 30, 2020 $ 6,923 $ 584 $ 7,507 The following table provides information related to the net change in AOCI for the three months ended September 30, 2019: Investments Foreign in Debt Currency (in thousands) Securities Translation AOCI Balance, July 1, 2019 $ 13,397 $ 17 $ 13,414 Net unrealized gains 961 217 1,178 Reclassification of fair value gains on sold or redeemed bonds into the Consolidated Statements of Operations (1,851) — (1,851) Net change in AOCI (890) 217 (673) Balance, September 30, 2019 $ 12,507 $ 234 $ 12,741 The following table provides information related to the net change in AOCI for the nine months ended September 30, 2020: Investments Foreign in Debt Currency (in thousands) Securities Translation AOCI Balance, January 1, 2020 $ 7,666 $ (33) $ 7,633 Net unrealized (losses) gains (1,024) 617 (407) Income tax gains 281 — 281 Net change in AOCI (743) 617 (126) Balance, September 30, 2020 $ 6,923 $ 584 $ 7,507 The following table provides information related to the net change in AOCI for the nine months ended September 30, 2019: Investments Foreign in Debt Currency (in thousands) Securities Translation AOCI Balance, January 1, 2019 $ 37,625 $ 72 $ 37,697 Net unrealized gains 997 162 1,159 Reclassification of fair value gains on sold or redeemed bonds into the Consolidated Statements of Operations (26,115) — (26,115) Net change in AOCI (25,118) 162 (24,956) Balance, September 30, 2019 $ 12,507 $ 234 $ 12,741 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
STOCK-BASED COMPENSATION [Abstract] | |
Summary of Stock-Based Compensation Expense | For the three months ended For the nine months ended September 30, September 30, (in thousands) 2020 2019 2020 2019 Non-employee Directors’ Stock-Based Compensation Plans $ 223 $ 133 $ 611 $ 461 |
Summary of Nonemployee Director Stock Award Activity | Common Deferred Weighted-average Shares Shares Grant Date Options Directors' Fees Cash Granted Granted Share Price Vested Expense September 30, 2020 (1) $ 320,625 5,720 5,946 $ 24.91 — $ 611,250 September 30, 2019 230,625 1,667 5,628 31.61 — 461,250 (1) During the first quarter of 2020, the Board approved the addition of two independent directors. Furthermore, during the third quarter of 2020, our former Chief Executive Officer became a non-employee director. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020segment | Dec. 31, 2019segment | Jan. 01, 2019USD ($) | |
Number of reportable segments | segment | 1 | 1 | |
ASU 2017-08 | Restatement Adjustment [Member] | |||
Retained earnings | $ | $ (0.3) |
INVESTMENTS IN DEBT SECURITIE_2
INVESTMENTS IN DEBT SECURITIES (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)security | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)security | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Increase (Decrease) in Fair Value Of Bonds | $ (1,100,000) | |||
Nonaccrual bonds | 0 | $ 0 | ||
Proceeds from sale of investments in bonds | $ 2,400,000 | $ 26,600,000 | ||
Investments in debt securities | 30,305,000 | 31,365,000 | ||
Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investments in debt securities | 30,305,000 | 31,365,000 | ||
Unpaid principal balance of bond investments | 30,715,000 | 30,885,000 | ||
Multifamily Tax-Exempt Bond [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investments in debt securities | 6,206,000 | 6,026,000 | ||
Unpaid principal balance of bond investments | $ 4,000,000 | $ 4,000,000 | ||
Subordinated Multifamily Tax-Exempt Bond [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Number of municipal bonds classified as available for sale | security | 1 | 1 | ||
Infrastructure Bond [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Number of municipal bonds classified as available for sale | security | 1 | 1 | ||
Investments in debt securities | $ 24,099,000 | $ 25,339,000 | ||
Unpaid principal balance of bond investments | $ 26,715,000 | $ 26,885,000 |
INVESTMENTS IN DEBT SECURITIE_3
INVESTMENTS IN DEBT SECURITIES (Bonds and Related Unrealized Gains and Losses) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 30,305 | $ 31,365 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unpaid principal balance of bond investments | 30,715 | 30,885 |
Amortized Cost | 20,761 | 20,797 |
Gross Unrealized Gains | 9,544 | 10,568 |
Fair Value | $ 30,305 | $ 31,365 |
FV as a % of UPB | 99.00% | 102.00% |
Multifamily Tax-Exempt Bond [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unpaid principal balance of bond investments | $ 4,000 | $ 4,000 |
Amortized Cost | 0 | 0 |
Gross Unrealized Gains | 6,206 | 6,026 |
Fair Value | $ 6,206 | $ 6,026 |
FV as a % of UPB | 155.00% | 151.00% |
Infrastructure Bond [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unpaid principal balance of bond investments | $ 26,715 | $ 26,885 |
Amortized Cost | 20,761 | 20,797 |
Gross Unrealized Gains | 3,338 | 4,542 |
Fair Value | $ 24,099 | $ 25,339 |
FV as a % of UPB | 90.00% | 94.00% |
INVESTMENTS IN DEBT SECURITIE_4
INVESTMENTS IN DEBT SECURITIES (Realized Gains on Bond Sales and Redemptions) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
INVESTMENTS IN DEBT SECURITIES [Abstract] | ||||
Gains recognized at time of sale or redemption | $ 2,156 | $ 26,420 |
INVESTMENTS IN PARTNERSHIPS (Na
INVESTMENTS IN PARTNERSHIPS (Narrative) (Details) - USD ($) $ in Thousands, shares in Millions | Jun. 01, 2018 | Nov. 09, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Apr. 01, 2019 |
Schedule of Equity Method Investments [Line Items] | ||||||||||
Carrying value of equity investments | $ 373,707 | $ 373,707 | $ 316,677 | |||||||
Purchase price paid | $ 5,100 | |||||||||
Distributions received from investments in partnerships | 24,706 | $ 11,317 | ||||||||
Impairment losses, other than temporary | $ 9,000 | |||||||||
Subsequent Event [Member] | Solar Construction Lending LLC and Solar Development Lending LLC [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Capital contribution amount for partnership | $ 97,000 | |||||||||
U.S. Real Estate Partnerships [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Carrying value of equity investments | 9,706 | 9,706 | 19,822 | |||||||
Impairment losses, other than temporary | $ 9,000 | |||||||||
U.S. Real Estate Partnerships formed in Q4 2014[Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Carrying value of equity investments | $ 9,700 | $ 9,700 | ||||||||
Equity method investment, ownership percentage | 80.00% | 80.00% | ||||||||
Equity method investment, economic interest percentage | 80.00% | 80.00% | ||||||||
Solar Ventures Investment [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Carrying value of equity investments | $ 362,403 | $ 362,403 | 289,123 | |||||||
Cumulative basis adjustment | $ 4,500 | 2,500 | 2,500 | 3,100 | ||||||
Amortization expense of basis difference | $ 200 | $ 200 | $ 700 | 700 | ||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | ||||||||
Unfunded loan commitments to borrowers | $ 147,000 | $ 147,000 | ||||||||
Solar Ventures Investment [Member] | Solar Ventures [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Unfunded loan commitments to borrowers | $ 305,400 | $ 305,400 | ||||||||
Solar Construction Lending LLC [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Carrying value of equity investments | $ 239,800 | $ 239,800 | ||||||||
Equity method investment, ownership percentage | 44.20% | 44.20% | ||||||||
Equity method investment, economic interest percentage | 43.40% | 43.40% | ||||||||
Distributions received from investments in partnerships | $ 15,000 | |||||||||
Solar Construction Lending LLC [Member] | Capital Partner | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Capital contribution amount for partnership | 56,000 | |||||||||
Distributions received from investments in partnerships | 65,000 | |||||||||
Solar Construction Lending LLC [Member] | Subsequent Event [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity method investment, ownership percentage | 39.20% | |||||||||
Solar Permanent Lending LLC [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Carrying value of equity investments | $ 0 | $ 0 | ||||||||
Equity method investment, economic interest percentage | 50.00% | 50.00% | ||||||||
Solar Development Lending, LLC [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Capital contribution amount for partnership | $ 15,000 | |||||||||
Carrying value of equity investments | $ 122,600 | $ 122,600 | ||||||||
Equity method investment, ownership percentage | 43.60% | 43.60% | ||||||||
Equity method investment, economic interest percentage | 42.90% | 42.90% | ||||||||
Solar Development Lending, LLC [Member] | Capital Partner | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Capital contribution amount for partnership | $ 24,000 | |||||||||
Solar Development Lending, LLC [Member] | Solar Development Lending, LLC [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Capital contribution amount for partnership | $ 39,000 | |||||||||
Solar Development Lending, LLC [Member] | Subsequent Event [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity method investment, ownership percentage | 39.60% | |||||||||
Solar Construction Lending LLC and Solar Development Lending LLC [Member] | Subsequent Event [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Capital contribution amount for partnership | $ 15,000 | |||||||||
Distributions received from investments in partnerships | 15,000 | |||||||||
Solar Construction Lending LLC and Solar Development Lending LLC [Member] | Subsequent Event [Member] | Capital Partner | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Capital contribution amount for partnership | $ 82,000 | |||||||||
Renewable Energy Lending, LLC [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Venture equity percentage of ownership | 100.00% | 100.00% | ||||||||
SAWHF | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Carrying value of equity investments | $ 1,598 | $ 1,598 | $ 7,732 | |||||||
Equity method investment, ownership percentage | 11.85% | 11.85% | ||||||||
Equity method investment increase (decrease) in carrying value | $ (6,100) | |||||||||
Equity method investment share distribution shares | 7.2 | |||||||||
Hunt Companies [Member] | Solar Development Lending, LLC [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity method investment, ownership percentage | 30.00% |
INVESTMENTS IN PARTNERSHIPS (Sc
INVESTMENTS IN PARTNERSHIPS (Schedule of Real Estate Investment Partnerships) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Total investments in partnerships | $ 373,707 | $ 316,677 |
Solar Ventures Investment [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investments in partnerships | 362,403 | 289,123 |
U.S. Real Estate Partnerships [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investments in partnerships | 9,706 | 19,822 |
SAWHF | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investments in partnerships | $ 1,598 | $ 7,732 |
INVESTMENTS IN PARTNERSHIPS (_2
INVESTMENTS IN PARTNERSHIPS (Schedule of Balance Sheet Accounts Related to Equity Method Investments) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Solar Ventures Investment [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total assets | $ 837,977 | $ 706,792 |
Other Liabilities | 4,988 | 22,135 |
U.S. Real Estate Partnerships [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total assets | 50,406 | 51,718 |
Debt | 6,752 | 6,426 |
Other Liabilities | 20,307 | 20,493 |
SAWHF | ||
Schedule of Equity Method Investments [Line Items] | ||
Total assets | 13,785 | 56,356 |
Other Liabilities | $ 91 | $ 130 |
INVESTMENTS IN PARTNERSHIPS (_3
INVESTMENTS IN PARTNERSHIPS (Schedule of Income (Loss) in Earnings of Unconsolidated Venture) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
U.S. Real Estate Partnerships [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Gross revenue | $ 648 | $ 624 | $ 1,839 | $ 1,920 |
Operating expenses | 515 | 437 | 1,623 | 1,380 |
Net income (loss) | (538) | (727) | (1,937) | (1,288) |
Solar Ventures Investment [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Gross revenue | 23,123 | 16,081 | 69,540 | 38,367 |
Operating expenses | 1,403 | 1,144 | 4,945 | 4,687 |
Net income (loss) | 21,754 | 14,940 | 64,585 | 33,749 |
SAWHF | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Gross revenue | 57 | 1,321 | 1,574 | 4,090 |
Operating expenses | 119 | 236 | 755 | 722 |
Net income (loss) | $ 790 | $ (1,092) | $ 1,911 | $ 1,690 |
LOANS HELD FOR INVESTMENT ("H_3
LOANS HELD FOR INVESTMENT ("HFI") (Narrative) (Details) | Jan. 03, 2020USD ($) | Nov. 09, 2020 | Sep. 30, 2020USD ($)loan | Jun. 30, 2020 | Dec. 31, 2019USD ($)loan |
Number of loans held for investment | 1 | 2 | |||
UPB | $ 1,280,000 | $ 54,100,000 | |||
Financing receivable UPB and fair value | $ 1,300,000 | $ 54,100,000 | |||
Number of loans held for investment on non accrual status | loan | 0 | 0 | |||
Repayment of hunt notes | $ 53,600,000 | ||||
Unfunded loan commitments | $ 800,000 | $ 1,600,000 | |||
Carrying value of Loan receivable | 1,302,000 | 54,100,000 | |||
Finance Receivable Fair Value Option Elected [Member] | |||||
Financing receivable UPB and fair value | $ 1,300,000 | $ 500,000 | |||
Solar Development Lending, LLC [Member] | |||||
Equity method investment, ownership percentage | 43.60% | ||||
Solar Development Lending, LLC [Member] | Subsequent Event [Member] | |||||
Equity method investment, ownership percentage | 39.60% |
LOANS HELD FOR INVESTMENT ("H_4
LOANS HELD FOR INVESTMENT ("HFI") (Composition of Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
LOANS HELD FOR INVESTMENT ("HFI") [Abstract] | ||
UPB | $ 1,280 | $ 54,100 |
Fair value adjustments | 22 | 0 |
Financing Receivable, Net | $ 1,302 | $ 54,100 |
LOANS HELD FOR INVESTMENT ("H_5
LOANS HELD FOR INVESTMENT ("HFI") (Loan Aging Analysis) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
LOANS HELD FOR INVESTMENT ("HFI") [Abstract] | ||
Loans Receivable, Net | $ 1,302 | $ 54,100 |
Loans Receivable, Net, Unpaid Principal Balance | $ 1,280 | $ 54,100 |
OTHER ASSETS (Narrative) (Detai
OTHER ASSETS (Narrative) (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | May 22, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 19, 2019 | |
Derivative assets | $ 569 | $ 569 | $ 597 | |||||
Derivative assets | 569 | 569 | 597 | |||||
Debt issue costs | 2,297 | 2,297 | 2,675 | |||||
Interest expense, debt | 2,169 | $ 1,207 | 6,856 | $ 3,613 | ||||
Impairment losses recognized | 0 | 0 | 0 | 0 | ||||
SAWHF | ||||||||
Equity investment distribution fair value | 2,600 | 2,600 | $ 2,900 | |||||
Equity investment distribution shares received | 7.2 | |||||||
Gain (losses) on equity investments | 400 | |||||||
Revolving Credit Facility [Member] | ||||||||
Debt issuance costs, gross | $ 500 | |||||||
Interest expense, debt | 1,500 | 4,300 | ||||||
Unamortized debt issue costs | 2,300 | $ 2,300 | $ 2,700 | |||||
Debt instrument, term | 3 years | |||||||
Borrowing capacity | 175,000 | |||||||
Amortization expense | 300 | $ 800 | ||||||
Revolving Credit Facility [Member] | Facility Amount [Member] | Subsidiaries [Member] | ||||||||
Borrowing capacity | $ 125,000 | |||||||
Revolving Credit Facility [Member] | Committed Amount [Member] | ||||||||
Borrowing capacity | $ 120,000 | $ 100,000 | ||||||
Land improvements | ||||||||
Property, Plant and Equipment, Useful Life | 15 years | |||||||
Land investment | $ 7,000 | |||||||
Depreciation | $ 0 | $ 0 | 0 | $ 0 | ||||
Property, Plant and Equipment, Additions | $ 7,000 |
OTHER ASSETS (Summary of Other
OTHER ASSETS (Summary of Other Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Other assets: | ||
Real estate owned | $ 15,384 | $ 8,397 |
Debt issue costs | 2,297 | 2,675 |
Equity investments | 2,574 | 0 |
Derivative assets | 569 | 597 |
Accrued interest receivable | 551 | 853 |
Other assets | 576 | 462 |
Other Assets, Total | $ 21,951 | $ 12,984 |
OTHER ASSETS (REO held for use,
OTHER ASSETS (REO held for use, net) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Real estate held for use, net | $ 15,384 | $ 8,397 |
Land | ||
Real estate held for use, net | 2,619 | 2,619 |
Land improvements | ||
Real estate held for use, net | $ 12,765 | $ 5,778 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) | Jun. 01, 2020USD ($)item | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)installment | Sep. 30, 2019USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 19, 2019USD ($) |
Debt Instrument [Line Items] | ||||||||
Effective interest rate | 3.90% | 3.90% | 4.80% | |||||
Carrying Value | $ 238,381,000 | $ 238,381,000 | $ 201,816,000 | |||||
Letters of credit outstanding | 0 | 0 | 0 | |||||
Interest expense, debt | 2,169,000 | $ 1,207,000 | 6,856,000 | $ 3,613,000 | ||||
Derivative, notional amount | $ 108,915,000 | $ 108,915,000 | $ 109,685,000 | |||||
Final Extension [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed spread (as a percent) | 3.00% | |||||||
Debt instrument floor interest rate | $ 5 | |||||||
Other Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Effective interest rate | 4.00% | 4.00% | 4.80% | |||||
Carrying Value | $ 215,004,000 | $ 215,004,000 | $ 198,316,000 | |||||
Construction Loan [Member[ | ||||||||
Debt Instrument [Line Items] | ||||||||
Carrying Value | 9,300,000 | 9,300,000 | ||||||
Principal amount of debt | $ 9,400,000 | $ 9,400,000 | ||||||
Construction Loan [Member[ | Initial Term, First and Second Extension [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate (as a percent) | 4.85% | |||||||
SAWHF | ||||||||
Debt Instrument [Line Items] | ||||||||
Ownership interest (as a percent) | 11.85% | 11.85% | ||||||
Morrison Grove Management LLC [Member] | Other Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes Payable | $ 3,500,000 | |||||||
Notes Payable and Other Debt [Member] | SAWHF | ||||||||
Debt Instrument [Line Items] | ||||||||
Weighted average effective interest rates of debt obligations | 14.50% | 14.50% | ||||||
Ownership interest (as a percent) | 11.85% | 11.85% | ||||||
Principal amount of debt | $ 3,900,000 | $ 3,900,000 | ||||||
Bond Related Notes Payable and Other Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Underlying bond notional amount | $ 26,700,000 | $ 26,700,000 | ||||||
Underlying Bond Interest Rate | 6.30% | 6.30% | ||||||
Long-term Debt, Gross | $ 23,500,000 | $ 23,500,000 | ||||||
Fixed spread (as a percent) | 2.00% | |||||||
Debt instrument floor interest rate | $ 0.5 | $ 0.5 | ||||||
Percentage that represents cash collateral of referenced bonds | 37.50% | 37.50% | ||||||
Debt instrument average interest rate | 2.50% | 2.50% | ||||||
Cash collateral for agreement | $ 10,000,000 | $ 10,000,000 | ||||||
Bond Related Notes Payable and Other Debt [Member] | Morrison Grove Management LLC [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate (as a percent) | 5.00% | 5.00% | ||||||
Principal amount of debt | $ 4,400,000 | $ 4,400,000 | ||||||
Notes Payable | 4,400,000 | 4,400,000 | ||||||
Bond Related Notes Payable and Other Debt [Member] | Morrison Grove Management LLC [Member] | Debt Obligations Mature In 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes Payable | 2,900,000 | 2,900,000 | ||||||
Bond Related Notes Payable and Other Debt [Member] | Morrison Grove Management LLC [Member] | Debt Obligations Mature In 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes Payable | $ 1,500,000 | $ 1,500,000 | ||||||
Number of installments for amortization of debt | installment | 3 | |||||||
NonBond Related Notes Payable and Other Debt [Member] | Construction Loan [Member[ | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of extensions related to debt instrument | item | 3 | |||||||
Debt instrument covenant maximum percentage of credit to pledged assets | 65.00% | |||||||
Debt instrument covenant maximum percentage development hard costs | 75.00% | |||||||
Debt instrument covenant construction loan maximum draw | $ 11,100,000 | |||||||
Debt instrument covenant construction loan unpaid principal amount maximum | 10,000,000 | |||||||
Long-term construction loan | 10,000,000 | |||||||
Proceeds from construction loan | 9,300,000 | |||||||
Amount reserved for interest payments | $ 500,000 | |||||||
Total Return Swap [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of increase in fair value of referenced bond entitled to counterparty | 10.00% | 10.00% | ||||||
Johannesburg Interbank Agreed Rate (JIBAR) [Member] | Notes Payable and Other Debt [Member] | SAWHF | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed spread (as a percent) | 5.15% | |||||||
Base rate (as percentage) | 3.40% | 3.40% | ||||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Effective interest rate | 5.60% | 5.60% | ||||||
Carrying Value | $ 103,700,000 | $ 103,700,000 | ||||||
Fixed spread (as a percent) | 2.75% | |||||||
Principal amount of debt | 103,700,000 | $ 103,700,000 | ||||||
Borrowing capacity | 175,000,000 | |||||||
Debt instrument, maturity date | Sep. 19, 2022 | |||||||
Line of credit facility extension period | 12 months | |||||||
Interest expense, debt | $ 1,500,000 | $ 4,300,000 | ||||||
Debt instrument base rate plus fixed spread percentage rate | 4.25% | 4.25% | ||||||
Line of credit facility, maximum borrowing capacity | 175,000,000 | |||||||
Revolving Credit Facility [Member] | Committed Amount [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing capacity | 120,000,000 | $ 100,000,000 | ||||||
Line of credit facility, maximum borrowing capacity | $ 120,000,000 | $ 100,000,000 | ||||||
Minimum [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate (as a percent) | 1.50% | |||||||
Subsidiaries [Member] | Revolving Credit Facility [Member] | Facility Amount [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing capacity | $ 125,000,000 | |||||||
Line of credit facility, maximum borrowing capacity | $ 125,000,000 |
DEBT (Outstanding Debt Balances
DEBT (Outstanding Debt Balances) (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Debt, Carrying Value | $ 238,381,000 | $ 201,816,000 |
Debt Instrument, Interest Rate, Effective Percentage | 3.90% | 4.80% |
Asset Related Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Carrying Value | $ 23,377,000 | $ 3,500,000 |
Debt Instrument, Interest Rate, Effective Percentage | 2.80% | 5.00% |
Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Carrying Value | $ 215,004,000 | $ 198,316,000 |
Debt Instrument, Interest Rate, Effective Percentage | 4.00% | 4.80% |
NonBond Related Notes Payable and Other Debt [Member] | Asset Related Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | $ 0 | $ 650,000 |
Debt, Due after one year | $ 0 | $ 2,850,000 |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 0.00% | 5.00% |
Debt Instrument, Interest Rate, Effective Percentage, Noncurrent Portion | 0.00% | 5.00% |
Notes Payable and Other Debt [Member] | Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | $ 4,072,000 | $ 6,828,000 |
Debt, Due after one year | $ 13,458,000 | $ 1,500,000 |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 14.00% | 14.70% |
Debt Instrument, Interest Rate, Effective Percentage, Noncurrent Portion | 5.20% | 5.00% |
Unamortized debt issue costs | $ 100,000 | $ 100,000 |
Bond Related Notes Payable and Other Debt [Member] | Asset Related Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | 275,000 | 0 |
Debt, Due after one year | $ 23,102,000 | 0 |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 2.80% | |
Debt Instrument, Interest Rate, Effective Percentage, Noncurrent Portion | 2.80% | |
Unamortized debt issue costs | $ 100,000 | |
Subordinated Loan [Member] | ||
Debt Instrument [Line Items] | ||
Net Premium and Debt Issuance Costs | 7,000,000 | 7,400,000 |
Subordinated Loan [Member] | Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | 2,225,000 | 2,212,000 |
Debt, Due after one year | $ 91,549,000 | $ 93,276,000 |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 1.60% | 3.20% |
Debt Instrument, Interest Rate, Effective Percentage, Noncurrent Portion | 1.60% | 3.20% |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Carrying Value | $ 103,700,000 | |
Debt Instrument, Interest Rate, Effective Percentage | 5.60% | |
Unamortized debt issue costs | $ 2,300,000 | $ 2,700,000 |
Revolving Credit Facility [Member] | Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | 0 | 0 |
Debt, Due after one year | $ 103,700,000 | $ 94,500,000 |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 0.00% | |
Debt Instrument, Interest Rate, Effective Percentage, Noncurrent Portion | 5.60% | 5.60% |
DEBT (Principal Commitments) (D
DEBT (Principal Commitments) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
DEBT [Abstract] | ||
2020 | $ 4,529 | |
2021 | 2,278 | |
2022 | 128,550 | |
2023 | 11,222 | |
2024 | 1,813 | |
Thereafter | 83,197 | |
Net premium and debt issue costs | (6,792) | |
Total | $ 238,381 | $ 201,816 |
DEBT (Subordinate Debt) (Detail
DEBT (Subordinate Debt) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Net premium and debt issue costs | $ 6,792 | |
Carrying Value | $ 238,381 | $ 201,816 |
Subordinated principal (as percent) | 2.00% | |
Subordinated Loan [Member] | MMA Financial Holdings Inc. Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | $ 86,731 | |
Net premium and debt issue costs | 7,043 | |
Carrying Value | 93,774 | |
Subordinated Loan [Member] | MFH Issue 1 [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | 25,611 | |
Net premium and debt issue costs | 2,152 | |
Carrying Value | $ 27,763 | |
Maturity Date | March 30, 2035 | |
Coupon Interest Rate | three-month LIBOR plus 2.0% | |
Subordinated Loan [Member] | MFH Issue 2 [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | $ 23,288 | |
Net premium and debt issue costs | 1,954 | |
Carrying Value | $ 25,242 | |
Maturity Date | April 30, 2035 | |
Coupon Interest Rate | three-month LIBOR plus 2.0% | |
Subordinated Loan [Member] | MFH Issue 3 [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | $ 13,424 | |
Net premium and debt issue costs | 1,042 | |
Carrying Value | $ 14,466 | |
Maturity Date | July 30, 2035 | |
Coupon Interest Rate | three-month LIBOR plus 2.0% | |
Subordinated Loan [Member] | MFH Issue 4 [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | $ 24,408 | |
Net premium and debt issue costs | 1,895 | |
Carrying Value | $ 26,303 | |
Maturity Date | July 30, 2035 | |
Coupon Interest Rate | three-month LIBOR plus 2.0% |
DERIVATIVE INSTRUMENTS (Schedul
DERIVATIVE INSTRUMENTS (Schedule of the Company's Derivative Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | $ 569 | $ 597 |
Derivative Liability | 2,528 | 117 |
Basis Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 0 | 318 |
Derivative Liability | 618 | 0 |
Interest rate cap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 53 | 227 |
Derivative Liability | 0 | 0 |
Interest rate swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 0 | 52 |
Derivative Liability | 1,886 | 0 |
Foreign Exchange Forward [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 516 | 0 |
Derivative Liability | 0 | 117 |
Gain Share Arrangement [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | $ 24 | $ 0 |
DERIVATIVE INSTRUMENTS (Sched_2
DERIVATIVE INSTRUMENTS (Schedule of Derivative Notional Amounts) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total notional amount of derivative instruments | $ 108,915 | $ 109,685 |
Basis Swap [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total notional amount of derivative instruments | 35,000 | 35,000 |
Interest rate cap [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total notional amount of derivative instruments | 35,000 | 35,000 |
Interest rate swap [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total notional amount of derivative instruments | 35,000 | 35,000 |
Foreign Exchange Forward [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total notional amount of derivative instruments | $ 3,915 | $ 4,685 |
DERIVATIVE INSTRUMENTS (Summary
DERIVATIVE INSTRUMENTS (Summary of Derivative Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains of derivative instruments | $ (156) | $ (679) | $ (2,451) | $ (3,993) |
Total Return Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains of derivative instruments | 0 | 0 | 0 | (42) |
Net proceeds from derivative instrument | 200 | |||
Basis Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains of derivative instruments | 29 | (273) | (907) | (526) |
Net proceeds from derivative instrument | 100 | 100 | 100 | 200 |
Interest rate cap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains of derivative instruments | (20) | (234) | (174) | (797) |
Interest rate swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains of derivative instruments | (28) | (441) | (2,072) | (2,717) |
Net proceeds from derivative instrument | 200 | |||
Payments For Proceeds From Derivative Instrument Operating Activities | 100 | 100 | ||
Foreign Exchange Forward [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains of derivative instruments | (149) | 269 | 726 | 89 |
Gain Share Arrangement [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains of derivative instruments | $ 12 | $ 0 | $ (24) | $ 0 |
FAIR VALUE (Narrative) (Details
FAIR VALUE (Narrative) (Details) | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Impairment losses, other than temporary | $ 9,000,000 | ||
Subordinated Debt Obligations [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term Debt, Fair Value | $ 44,100,000 | ||
Minimum [Member] | Subordinated Debt Obligations [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Subordinated debt obligation | 36,600,000 | ||
Maximum [Member] | Subordinated Debt Obligations [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Subordinated debt obligation | $ 54,200,000 | ||
Measurement Input, Discount Rate [Member] | Subordinated Debt Obligations [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Subordinated debt measurement input | 10.5 | 11.7 | |
Measurement Input, Discount Rate [Member] | Minimum [Member] | Subordinated Debt Obligations [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Hypothetical fair value input discount rate | 8 | ||
Measurement Input, Discount Rate [Member] | Maximum [Member] | Subordinated Debt Obligations [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Hypothetical fair value input discount rate | 13 |
FAIR VALUE (Fair Value of Asset
FAIR VALUE (Fair Value of Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Fair value of bond investments | $ 30,305 | $ 31,365 |
Loans held for investment | 1,302 | 500 |
Equity investments | 2,574 | |
Derivative assets | 569 | 597 |
Liabilities: | ||
Derivative liabilities | 2,528 | 117 |
Level 1 [Member] | ||
Assets: | ||
Fair value of bond investments | 0 | 0 |
Loans held for investment | 0 | 0 |
Equity investments | 2,574 | |
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 2 [Member] | ||
Assets: | ||
Fair value of bond investments | 0 | 0 |
Loans held for investment | 0 | 0 |
Equity investments | 0 | |
Derivative assets | 569 | 597 |
Liabilities: | ||
Derivative liabilities | 2,528 | 117 |
Level 3 [Member] | ||
Assets: | ||
Fair value of bond investments | 30,305 | 31,365 |
Loans held for investment | 1,302 | 500 |
Equity investments | 0 | |
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | $ 0 | $ 0 |
FAIR VALUE (Activity for Assets
FAIR VALUE (Activity for Assets and Liabilities Measured on Recurring Level 3 Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jan. 01, 2019 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Reclassification of net fair value gains on sold/redeemed bonds | $ 1,851 | $ 26,115 | |||
Net unrealized gains (losses) arising during the period | 272 | 961 | (1,024) | 997 | |
Net gains (losses) on loans and extinguishment of liabilities | 11 | 0 | 22 | (30) | |
Net losses on derivatives | 156 | 679 | 2,451 | 3,993 | |
Investments in Debt Securities | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Balance at start of period | 35,236 | ||||
Net change in AOCI (1) | (890) | ||||
Impacts from sales/redemptions | (264) | ||||
Impacts from settlements | 39 | ||||
Balance at end of period | 34,121 | 34,121 | |||
Reclassification of net fair value gains on sold/redeemed bonds | 1,900 | ||||
Net unrealized gains (losses) arising during the period | 300 | 1,000 | |||
Loans Held for Investment | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Balance at start of period | 500 | ||||
Balance at end of period | 1,302 | 1,302 | |||
Bonds Available For Sale [Member] | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Net unrealized gains (losses) arising during the period | 1,000 | ||||
Level 3 [Member] | Investments in Debt Securities | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Balance at start of period | 29,988 | 31,365 | 97,190 | ||
Net (losses) gain included in earnings | 0 | 0 | 0 | ||
Net change in AOCI (1) | 272 | (1,024) | (25,118) | ||
Impact from loan originations / advances | 0 | ||||
Impacts from sales/redemptions | 0 | (37,633) | |||
Impacts from settlements | 45 | (36) | (318) | ||
Balance at end of period | 30,305 | 34,121 | 30,305 | 34,121 | |
Reclassification of net fair value gains on sold/redeemed bonds | 26,100 | ||||
Level 3 [Member] | Loans Held for Investment | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Balance at start of period | 1,291 | 500 | |||
Net (losses) gain included in earnings | 11 | 22 | |||
Net change in AOCI (1) | 0 | 0 | |||
Impact from loan originations / advances | 780 | ||||
Impacts from sales/redemptions | 0 | ||||
Impacts from settlements | 0 | 0 | |||
Balance at end of period | 1,302 | 1,302 | |||
Net gains (losses) on loans and extinguishment of liabilities | $ 11 | $ 22 | |||
Level 3 [Member] | Derivative Assets [Member] | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Balance at beginning period | 1,130 | ||||
Net (losses) gains included in earnings | (195) | ||||
Net change in AOCI | 0 | ||||
Impact from sales/redemptions | 0 | ||||
Impact from settlements | (935) | ||||
Balance at ending period | $ 0 | $ 0 | |||
Restatement Adjustment [Member] | ASU 2017-08 | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Retained earnings | $ (300) |
FAIR VALUE (Amount of Activity
FAIR VALUE (Amount of Activity Pertaining to Level 3 Assets and Liabilities Included in Earnings) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Change in unrealized losses related to assets and liabilities settled during the period | $ 0 | |
Additional realized gains recognized | $ 2,156 | 26,420 |
Total net (losses) gains reported in earnings | $ 2,156 | 26,420 |
Derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Change in unrealized losses related to assets and liabilities settled during the period | (195) | |
Additional realized gains recognized | 152 | |
Total net (losses) gains reported in earnings | $ (43) |
FAIR VALUE (Fair Value Measurem
FAIR VALUE (Fair Value Measurements By Level 3 Valuation Technique) (Details) | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investments in debt securities | $ 30,305,000 | $ 31,365,000 |
Measurement Input, Discount Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Valuation technique weighting factor for contract price (as percentage) | 50.00% | |
Measurement Input, NOI Annual Growth Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Valuation technique weighting factor for NOI annual growth rate (as percentage) | 50.00% | |
Available-for-sale, Multifamily Tax-exempt, Subordinated Cash Flow Bonds [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value, asset | $ 6,206,000 | $ 6,026,000 |
Available-for-sale, Multifamily Tax-exempt, Subordinated Cash Flow Bonds [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 7.2 | 7.3 |
Available for sale bid price | $ 16,611 | |
Available-for-sale, Multifamily Tax-exempt, Subordinated Cash Flow Bonds [Member] | Measurement Input, Cap Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 6.4 | 6.2 |
Available-for-sale, Multifamily Tax-exempt, Subordinated Cash Flow Bonds [Member] | Measurement Input, NOI Annual Growth Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.7 | |
Available-for-sale, Infrastructure Bonds [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value, asset | $ 24,099,000 | $ 25,339,000 |
Available-for-sale, Infrastructure Bonds [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 7.5 | 7 |
Loans Held for Investment | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value, asset | $ 1,302,000 | $ 500,000 |
Loans Held for Investment | Measurement Input, Discount Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Loans receivable, measurement input | 7.1 | 8 |
Weighted Average [Member] | Loans Held for Investment | Measurement Input, Discount Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Loans receivable, measurement input | 8 |
FAIR VALUE (Carrying Amounts an
FAIR VALUE (Carrying Amounts and Fair Values of Financial Instruments ) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Loans held for investment | $ 1,302 | $ 500 |
Level 1 [Member] | ||
Assets: | ||
Loans held for investment | 0 | 0 |
Level 1 [Member] | Fair Value, Nonrecurring [Member] | ||
Assets: | ||
Cash and cash equivalents | 21,784 | 8,555 |
Restricted cash | 17,224 | 4,250 |
Loans held for investment | 0 | |
Liabilities: | ||
Revolving credit facility obligations | 0 | |
Level 2 [Member] | ||
Assets: | ||
Loans held for investment | 0 | 0 |
Level 2 [Member] | Fair Value, Nonrecurring [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Loans held for investment | 0 | |
Liabilities: | ||
Revolving credit facility obligations | 0 | |
Level 3 [Member] | ||
Assets: | ||
Loans held for investment | 1,302 | 500 |
Level 3 [Member] | Fair Value, Nonrecurring [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Loans held for investment | 54,276 | |
Liabilities: | ||
Revolving credit facility obligations | 94,500 | |
Non Bond Related Debt [Member] | Level 1 [Member] | Fair Value, Nonrecurring [Member] | ||
Liabilities: | ||
Notes payable and other debt | 0 | 0 |
Non Bond Related Debt [Member] | Level 2 [Member] | Fair Value, Nonrecurring [Member] | ||
Liabilities: | ||
Notes payable and other debt | 0 | 0 |
Non Bond Related Debt [Member] | Level 3 [Member] | Fair Value, Nonrecurring [Member] | ||
Liabilities: | ||
Notes payable and other debt | 16,872 | 10,888 |
Notes Payable and Bond-Related Debt [Member] | Level 1 [Member] | Fair Value, Nonrecurring [Member] | ||
Liabilities: | ||
Notes payable and other debt | 0 | |
Notes Payable and Bond-Related Debt [Member] | Level 2 [Member] | Fair Value, Nonrecurring [Member] | ||
Liabilities: | ||
Notes payable and other debt | 0 | |
Notes Payable and Bond-Related Debt [Member] | Level 3 [Member] | Fair Value, Nonrecurring [Member] | ||
Liabilities: | ||
Notes payable and other debt | 23,509 | |
Debt Related To Consolidated Funds and Ventures [Member] | Level 1 [Member] | Fair Value, Nonrecurring [Member] | ||
Liabilities: | ||
Revolving credit facility obligations | 0 | |
Debt Related To Consolidated Funds and Ventures [Member] | Level 2 [Member] | Fair Value, Nonrecurring [Member] | ||
Liabilities: | ||
Revolving credit facility obligations | 0 | |
Debt Related To Consolidated Funds and Ventures [Member] | Level 3 [Member] | Fair Value, Nonrecurring [Member] | ||
Liabilities: | ||
Revolving credit facility obligations | 103,700 | |
Subordinated Loan [Member] | Level 1 [Member] | MFH [Member] | Fair Value, Nonrecurring [Member] | ||
Liabilities: | ||
Subordinated debt | 0 | 0 |
Subordinated Loan [Member] | Level 2 [Member] | MFH [Member] | Fair Value, Nonrecurring [Member] | ||
Liabilities: | ||
Subordinated debt | 0 | 0 |
Subordinated Loan [Member] | Level 3 [Member] | MFH [Member] | Fair Value, Nonrecurring [Member] | ||
Liabilities: | ||
Subordinated debt | 44,122 | 46,934 |
Reported Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 21,784 | 8,555 |
Restricted cash | 17,224 | 4,250 |
Loans held for investment | 53,600 | |
Liabilities: | ||
Revolving credit facility obligations | 94,500 | |
Reported Value Measurement [Member] | Non Bond Related Debt [Member] | ||
Liabilities: | ||
Notes payable and other debt | 17,530 | 11,828 |
Reported Value Measurement [Member] | Notes Payable and Bond-Related Debt [Member] | ||
Liabilities: | ||
Notes payable and other debt | 23,377 | |
Reported Value Measurement [Member] | Debt Related To Consolidated Funds and Ventures [Member] | ||
Liabilities: | ||
Revolving credit facility obligations | 103,700 | |
Reported Value Measurement [Member] | Subordinated Loan [Member] | MFH [Member] | ||
Liabilities: | ||
Subordinated debt | $ 93,774 | $ 95,488 |
GUARANTEES AND COLLATERAL (Coll
GUARANTEES AND COLLATERAL (Collateral and Restricted Assets) (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | $ 17,224,000 | $ 4,250,000 |
Bonds Available-for-Sale | 24,099,000 | 0 |
Investments in partnerships | 364,001,000 | 296,855,000 |
Other Assets | 17,958,000 | |
Total Assets Pledged | 423,282,000 | 301,105,000 |
Interest rate swap [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | 4,462,000 | 1,803,000 |
Bonds Available-for-Sale | 0 | |
Investments in partnerships | 0 | 0 |
Other Assets | 0 | |
Total Assets Pledged | 4,462,000 | 1,803,000 |
Debt and derivatives | SAWHF [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | 1,374,000 | 1,369,000 |
Bonds Available-for-Sale | 0 | |
Investments in partnerships | 1,598,000 | 7,732,000 |
Other Assets | 2,574,000 | |
Total Assets Pledged | $ 5,546,000 | $ 9,101,000 |
Ownership interest (as a percent) | 11.85% | 11.85% |
Debt and derivatives TRSs [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | $ 10,020,000 | |
Bonds Available-for-Sale | 24,099,000 | |
Investments in partnerships | 0 | |
Other Assets | 0 | |
Total Assets Pledged | 34,119,000 | |
Debt Related to Real Estate Owned [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | 250,000 | |
Bonds Available-for-Sale | 0 | |
Investments in partnerships | 0 | |
Other Assets | 15,384,000 | |
Total Assets Pledged | 15,634,000 | |
Other, Pledged or Restricted [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | 8,000 | $ 8,000 |
Bonds Available-for-Sale | 0 | |
Investments in partnerships | 0 | 0 |
Other Assets | 0 | |
Total Assets Pledged | 8,000 | 8,000 |
Revolving Credit Facility [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | 1,110,000 | 1,070,000 |
Bonds Available-for-Sale | 0 | |
Investments in partnerships | 362,403,000 | 289,123,000 |
Other Assets | 0 | |
Total Assets Pledged | $ 363,513,000 | $ 290,193,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Sep. 30, 2020USD ($) |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Future rental commitments | $ 0 |
EQUITY (Narrative) (Details)
EQUITY (Narrative) (Details) | Mar. 11, 2020shares | Sep. 30, 2020shareholderdirector$ / sharesshares | Dec. 31, 2019$ / sharesshares | Jan. 01, 2019$ / sharesshares | Jan. 03, 2018 | May 05, 2015shares |
Class of Stock [Line Items] | ||||||
Preferred shares, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | |||
Preferred shares, no par value | $ / shares | $ 0 | $ 0 | $ 0 | |||
Maximum percentage of Company stock ownership allowed | 9.90% | 4.90% | ||||
Number of rights issued per common stock | 1 | |||||
Tax benefit agreement term | 5 years | |||||
Number of shareholders held more than 4.9% | shareholder | 2 | |||||
Number of executives held more than 4.9% | director | 1 | |||||
Common stock, shares, issued | 5,706,366 | 5,701,946 | ||||
Common stock, shares authorized | 50,000,000 | 50,000,000 | ||||
Common stock ownership percentage benchmark | 4.90% | |||||
Executive Officer [Member] | ||||||
Class of Stock [Line Items] | ||||||
Maximum percentage of Company stock ownership allowed | 4.90% | |||||
Additional authorization of share purchase by exempt person | 7,500 |
EQUITY (Summary of Net (Loss) I
EQUITY (Summary of Net (Loss) Income to Common Shareholders) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
EQUITY [Abstract] | ||||||||
Net income from continuing operations | $ 2,936 | $ 5,576 | $ (3,630) | $ 31,685 | ||||
Net income (loss) from discontinued operations | (8) | |||||||
Net income (loss) | $ 2,936 | $ (3,508) | $ (3,058) | $ 5,576 | $ 23,219 | $ 2,882 | $ (3,630) | $ 31,677 |
Basic and diluted weighted-average shares | 5,811 | 5,887 | 5,807 | 5,884 |
EQUITY (Schedule of Accumulated
EQUITY (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Balance | $ 274,487 | $ 214,626 | $ 281,125 | $ 212,910 |
Other Comprehensive Income (Loss), before Tax Period Change [Abstract] | ||||
Net change AOCI | 98 | (673) | (126) | (24,956) |
Other Comprehensive Income (Loss), Tax [Abstract] | ||||
Income tax (loss) gain | (75) | 281 | ||
Balance | 277,618 | 219,595 | 277,618 | 219,595 |
AOCI | ||||
Balance | 7,409 | 13,414 | 7,633 | 37,697 |
Other Comprehensive Income (Loss), before Tax Period Change [Abstract] | ||||
Net unrealized gains (losses), before tax | 173 | 1,178 | (407) | 1,159 |
Reclassification of fair value gains on sold or redeemed bonds into the Consolidated Statements of Operations | (1,851) | 26,115 | ||
Net change AOCI | 98 | (673) | (126) | (24,956) |
Other Comprehensive Income (Loss), Tax [Abstract] | ||||
Income tax (loss) gain | (75) | 281 | ||
Balance | 7,507 | 12,741 | 7,507 | 12,741 |
Investments in Debt Securities [Member] | ||||
Balance | 6,726 | 13,397 | 7,666 | 37,625 |
Other Comprehensive Income (Loss), before Tax Period Change [Abstract] | ||||
Net unrealized gains (losses), before tax | 272 | 961 | (1,024) | 997 |
Reclassification of fair value gains on sold or redeemed bonds into the Consolidated Statements of Operations | (1,851) | 26,115 | ||
Net change AOCI | 197 | (890) | (743) | (25,118) |
Other Comprehensive Income (Loss), Tax [Abstract] | ||||
Income tax (loss) gain | (75) | 281 | ||
Balance | 6,923 | 12,507 | 6,923 | 12,507 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Balance | 683 | 17 | (33) | 72 |
Other Comprehensive Income (Loss), before Tax Period Change [Abstract] | ||||
Net unrealized gains (losses), before tax | (99) | 217 | 617 | 162 |
Net change AOCI | (99) | 217 | 617 | 162 |
Other Comprehensive Income (Loss), Tax [Abstract] | ||||
Balance | $ 584 | $ 234 | $ 584 | $ 234 |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2020USD ($)shares | |
Employees' Stock-Based Compensation Plans [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares available for issuance | 571,066 |
Employees' Stock-Based Compensation Plans [Member] | Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares available for issuance | 497,510 |
Employees' Stock-Based Compensation Plans [Member] | Employee Stock Options or Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares available for issuance | 73,556 |
Non-employee Directors' Stock-Based Compensation Plans [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares available for issuance | 1,130,000 |
Annual compensation | $ | $ 120,000 |
Number of shares currently available for issuance | 372,494 |
Compensation paid in cash (as percentage) | 50.00% |
Compensation paid in shares (as percentage) | 50.00% |
Non-employee Directors' Stock-Based Compensation Plans [Member] | Audit Committee Chair [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Additional Stock based Compensation | $ | $ 15,000 |
Non-employee Directors' Stock-Based Compensation Plans [Member] | Board Of Directors Chairman [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Additional Stock based Compensation | $ | 20,000 |
Non-employee Directors' Stock-Based Compensation Plans [Member] | Other Committee [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Additional Stock based Compensation | $ | $ 10,000 |
STOCK-BASED COMPENSATION (Summa
STOCK-BASED COMPENSATION (Summary of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Non-employee Directors' Stock-Based Compensation Plans [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Compensation expense | $ 223 | $ 133 | $ 611 | $ 461 |
STOCK-BASED COMPENSATION (Sum_2
STOCK-BASED COMPENSATION (Summary of Nonemployee Director Stock Award Activity) (Details) - Non-employee Directors' Stock-Based Compensation Plans [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-employee director compensation, cash | $ 320,625 | $ 230,625 |
Weighted - average Grant Date Share Price | $ 24.91 | $ 31.61 |
Options Vested | 0 | 0 |
Directors' Fees Expense | $ 611,250 | $ 461,250 |
Common Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted | 5,720 | 1,667 |
Deferred Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted | 5,946 | 5,628 |
RELATED PARTY TRANSACTIONS AN_2
RELATED PARTY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES (Details) - USD ($) | Dec. 20, 2019 | Apr. 25, 2019 | Apr. 01, 2019 | Oct. 04, 2018 | Jan. 08, 2018 | Dec. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Base management fee percentage on first $500 million share capital | 0.50% | |||||||||
Base management fee percentage in excess of $500 million share capital | 0.25% | |||||||||
Annual reimbursement cap until 2019 | $ 2,500,000 | |||||||||
Annual reimbursement cap after 2019 until share capital exceeds of $500 million | $ 3,500,000 | |||||||||
Renewal period of the agreement | 2 years | |||||||||
Agreement Violation Termination Fee Includes An Amount Times Sum of Average Annual Base and Incentive Management Fee | 3 | |||||||||
Agreement Violation Termination Fee Includes An Amount Times Sum of Average Energy Capital Business Expense Reimbursement and Employee Cost Reimbursement Expense | 1 | |||||||||
Termination fee period | 2 years | |||||||||
Consideration on disposal | $ 57,000,000 | $ 57,000,000 | ||||||||
Notes receivable | 57,000,000 | $ 57,000,000 | ||||||||
Interest rate for note | 5.00% | |||||||||
HFS loan acquired by Hunt | $ 54,100,000 | 1,302,000 | $ 1,302,000 | |||||||
Termination fee payable upon termination of Management Agreement | 0 | 0 | ||||||||
External management fees and reimbursable expenses | 1,836,000 | $ 1,646,000 | $ 7,045,000 | $ 6,042,000 | ||||||
Term of note receivable | 7 years | |||||||||
Equity Method Investments | 316,677,000 | 373,707,000 | $ 373,707,000 | |||||||
Reimbursement of compensation related expenses shareholders equity benchmark amount | 500,000,000 | 500,000,000 | ||||||||
Financing Receivable, Net, Unpaid Principal Balance | 54,100,000 | 1,280,000 | 1,280,000 | |||||||
Carrying value of Loan receivable | 54,100,000 | 1,302,000 | 1,302,000 | |||||||
Investments in partnerships (includes $364,001 and $296,855 pledged as collateral at September 30, 2020 and December 31, 2019, respectively) | 316,677,000 | 373,707,000 | 373,707,000 | |||||||
Hunt Companies [Member] | ||||||||||
Interest income, related party | 800,000 | |||||||||
External Management Fees and Expenses Reimbursement | Hunt Companies [Member] | ||||||||||
External management fees and reimbursable expenses | 7,000,000 | 6,000,000 | ||||||||
Investment in Debt Securities | ||||||||||
Net proceeds from sale of affordable house property | $ 13,100,000 | |||||||||
Hunt Companies [Member] | ||||||||||
Loans and leases receivable from related party | $ 67,000,000 | 53,600,000 | ||||||||
Interest income, related party | 2,500,000 | |||||||||
Interest Receivable | 700,000 | |||||||||
Financing Receivable, Net, Unpaid Principal Balance | $ 1,100,000 | |||||||||
Carrying value of Loan receivable | 300,000 | |||||||||
Investments in partnerships (includes $364,001 and $296,855 pledged as collateral at September 30, 2020 and December 31, 2019, respectively) | 900,000 | |||||||||
Proceeds from the sale of real estate and other investments | 3,100,000 | |||||||||
Gain (loss) on sale of loans and real estate related investments | 1,900,000 | |||||||||
Proceeds from loans receivable | $ 13,400,000 | |||||||||
Hunt Companies [Member] | External Management Fees and Expenses Reimbursement | ||||||||||
Incentive fee | 20.00% | |||||||||
External management fee, contract in excess for incentive fee. | 7.00% | |||||||||
Related party incentive fee expense | 0 | 0 | 0 | $ 0 | ||||||
External management fees and reimbursable expenses | 1,800,000 | $ 1,600,000 | ||||||||
Hunt Companies [Member] | External Management Fees and Expenses Reimbursement | External Manager [Member] | ||||||||||
Management fees and expense reimbursements payable | $ 1,200,000 | $ 1,800,000 | $ 1,800,000 | |||||||
Hunt Companies [Member] | Investment in Debt Securities | ||||||||||
Service fees waived by agent | 900,000 | |||||||||
Hunt Companies [Member] | Investment in Debt Securities | ||||||||||
Proceeds from redemption of bonds | $ 900,000 | |||||||||
Solar Development Lending, LLC [Member] | Hunt Companies [Member] | ||||||||||
Ownership interest | 30.00% | |||||||||
Payments to Acquire Equity Method Investments | $ 11,300,000 | |||||||||
Minimum [Member] | Hunt Companies [Member] | Affordable Housing Partnerships [Member] | ||||||||||
Ownership interest | 74.25% | |||||||||
Maximum [Member] | Hunt Companies [Member] | Affordable Housing Partnerships [Member] | ||||||||||
Ownership interest | 74.92% |
SEGMENT INFORMATION (Narrative)
SEGMENT INFORMATION (Narrative) (Details) - segment | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
SEGMENT INFORMATION [Abstract] | ||
Number of reportable segments | 1 | 1 |