Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 24, 2021 | Jun. 30, 2020 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 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 | Non-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 | FY | ||
Document Fiscal Year Focus | 2020 | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 5,742,286 | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 111,130,141 | ||
ICFR Auditor Attestation Flag | 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 | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 28,644 | $ 8,555 |
Restricted cash | 17,617 | 4,250 |
Investments in debt securities (includes $24,741 and $0 pledged as collateral at December 31, 2020 and 2019, respectively) | 31,038 | 31,365 |
Investments in partnerships (includes $364,990 and $296,855 pledged as collateral at December 31, 2020 and 2019, respectively) | 376,198 | 316,677 |
Deferred tax assets, net | 59,083 | 57,711 |
Loans held for investment (includes $0 and $53,600 of related party loans at December 31, 2020 and 2019, respectively) | 0 | 54,100 |
Other assets (includes $17,973 and $0 pledged as collateral at December 31, 2020 and 2019, respectively) | 20,482 | 12,984 |
Total assets | 533,062 | 485,642 |
LIABILITIES AND EQUITY | ||
Debt | 237,805 | 201,816 |
Accounts payable and accrued expenses | 2,845 | 2,527 |
Other liabilities | 2,528 | 174 |
Total liabilities | 243,178 | 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 December 31, 2020 and 2019 | ||
Common shareholders' equity: | ||
Common shares, no par value, 50,000,000 shares are authorized (5,708,920 and 5,701,946 shares issued and outstanding and 111,032 and 103,069 non-employee directors' deferred shares issued at December 31, 2020 and 2019, respectively) | 282,227 | 273,492 |
Accumulated other comprehensive income ("AOCI") | 7,657 | 7,633 |
Total shareholders' equity | 289,884 | 281,125 |
Total liabilities and equity | $ 533,062 | $ 485,642 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Bonds available-for-sale, pledged as collateral | $ 24,741,000 | $ 0 |
Available-for-sale Securities Pledged as Collateral | 24,741,000 | 0 |
Investments in partnerships, used as collateral | 364,990,000 | 296,855,000 |
Loans to a related party | 0 | 53,600,000 |
Other assets pledged as collateral | $ 17,973,000 | $ 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) | 5,708,920 | 5,701,946 |
Common shares, shares outstanding (in shares) | 5,708,920 | 5,701,946 |
Common shares, non-employee directors' and employee deferred shares (in shares) | 111,032 | 103,069 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest income | ||
Interest on bonds | $ 1,955 | $ 3,576 |
Interest on loans and short-term investments | 226 | 5,781 |
Total interest income | 2,181 | 9,357 |
Asset related interest expense | ||
Bond related debt | 381 | 428 |
Non-bond related debt | 213 | |
Total interest expense | 381 | 641 |
Net interest income | 1,800 | 8,716 |
Non-interest income | ||
Equity in income from unconsolidated funds and ventures | 43,519 | 21,904 |
Net gains on bonds | 28,606 | |
Net gains on real estate and other investments | 0 | 1,148 |
Net losses on derivatives | (2,978) | (3,723) |
Net loss on other assets | (877) | 0 |
Net gains on loans and extinguishment of liabilities | 97 | 459 |
Other income | 72 | 424 |
Non-interest income | 39,833 | 48,818 |
Other expenses | ||
Interest expense | 8,954 | 5,774 |
External management fees and reimbursable expenses | 8,260 | 7,248 |
General and administrative | 1,512 | 1,304 |
Professional fees | 2,783 | 2,472 |
Impairment losses | 12,731 | 0 |
Other expenses | 248 | 233 |
Total other expenses | 34,488 | 17,031 |
Net income from continuing operations before income taxes | 7,145 | 40,503 |
Income tax benefit | 1,229 | 60,482 |
Net income from continuing operations | 8,374 | 100,985 |
Net loss from discontinued operations, net of tax | (8) | |
Net income | $ 8,374 | $ 100,977 |
Basic and diluted income per common share: | ||
Income from continuing operations | $ 1.44 | $ 17.18 |
Loss from discontinued operations | ||
Income per common share | $ 1.44 | $ 17.18 |
Weighted-average common shares outstanding: | ||
Basic and diluted | 5,809 | 5,877 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 8,374 | $ 100,977 |
Bond related changes: | ||
Net unrealized (losses) gains | (62) | 1,244 |
Reclassification of fair value gains on sold or redeemed bonds into the Consolidated Statements of Operations | (28,301) | |
Income tax benefit (expense) | 17 | (2,902) |
Net change in other comprehensive loss due to bonds, net of taxes | (45) | (29,959) |
Foreign currency translation adjustment | 69 | (105) |
Other comprehensive income (loss) | 24 | (30,064) |
Comprehensive income | $ 8,398 | $ 70,913 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands | Common SharesCumulative Effect, Period of Adoption, Adjustment [Member] | Common Shares | AOCI | Cumulative Effect, Period of Adoption, Adjustment [Member] | Total |
Balance at Dec. 31, 2018 | $ 175,213 | $ 37,697 | $ 212,910 | ||
Balance (in shares) at Dec. 31, 2018 | 5,882 | ||||
Net income | $ 100,977 | 100,977 | |||
Other comprehensive income (loss) | (30,064) | (30,064) | |||
Common shares (restricted and deferred) issued under employee and non-employee director share plans | $ 299 | 299 | |||
Common shares (restricted and deferred) issued under employee and non-employee director share plans (in shares) | 9 | ||||
Common share repurchases | $ (2,730) | (2,730) | |||
Common share repurchases (in shares) | (86) | ||||
Balance at Dec. 31, 2019 | $ (267) | $ 273,492 | 7,633 | $ (267) | 281,125 |
Balance (in shares) at Dec. 31, 2019 | 5,805 | ||||
Net income | $ 8,374 | 8,374 | |||
Other comprehensive income (loss) | 24 | 24 | |||
Common shares (restricted and deferred) issued under employee and non-employee director share plans | $ 402 | 402 | |||
Common shares (restricted and deferred) issued under employee and non-employee director share plans (in shares) | 16 | ||||
Common share repurchases | $ (41) | (41) | |||
Common share repurchases (in shares) | (1) | ||||
Balance at Dec. 31, 2020 | $ 282,227 | $ 7,657 | $ 289,884 | ||
Balance (in shares) at Dec. 31, 2020 | 5,820 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 8,374,000 | $ 100,977,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provisions for credit losses and impairment | 12,731,000 | 0 |
Net equity in income from investments in partnerships | (43,519,000) | (21,904,000) |
Net gains on bonds | 0 | (28,606,000) |
Net gains on real estate and other investments | 0 | (1,148,000) |
Net losses on derivatives | 2,750,000 | 4,241,000 |
Net losses (gains) on loans, other assets and extinguishment of liabilities | 780,000 | (459,000) |
Current and deferred federal income tax expense | (1,372,000) | (60,476,000) |
Derivative terminations | 0 | 1,071,000 |
Distributions received from investments in partnerships | 36,026,000 | 17,324,000 |
Depreciation and amortization | 166,000 | (2,456,000) |
Foreign currency gains (losses) | 248,000 | (104,000) |
Stock-based compensation expense | 402,000 | 299,000 |
Other, net | 1,381,000 | 142,000 |
Net cash provided by operating activities | 17,967,000 | 8,901,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Principal payments and sales proceeds received on bonds and loans held for investment (includes $53,600 and $15,107 from a related party) | 55,181,000 | 45,796,000 |
Advances on and originations of loans held for investment (includes $0 and $11,279 from a related party) | (702,000) | (11,729,000) |
Investments in partnerships and real estate | (274,445,000) | (248,911,000) |
Proceeds from the sale of real estate and other investments | 0 | 2,080,000 |
Capital distributions received from investments in partnerships | 198,734,000 | 98,102,000 |
Net cash used in investing activities | (21,232,000) | (114,662,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from borrowing activity | 112,499,000 | 108,000,000 |
Repayment of borrowings | (74,990,000) | (17,651,000) |
Debt issuance costs | (747,000) | (2,931,000) |
Repurchase of common shares | (41,000) | (2,730,000) |
Net cash provided by financing activities | 36,721,000 | 84,688,000 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 33,456,000 | (21,073,000) |
Cash, cash equivalents and restricted cash at beginning of period | 12,805,000 | 33,878,000 |
Cash, cash equivalents and restricted cash at end of period | 46,261,000 | 12,805,000 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest paid | 8,725,000 | 6,224,000 |
Income taxes paid | 150,000 | 32,000 |
Non-cash investing and financing activities: | ||
Unrealized gains (losses) included in other comprehensive income | 24,000 | (30,064,000) |
Debt and liabilities extinguished through sales and collections on bonds and loans | 242,000 | 37,606,000 |
Decrease in investments in debt securities and common shareholders' equity due to change in accounting principle | 0 | 267,000 |
Increase in loans held for investment and decrease in investment in partnerships due to secured lending | 0 | 17,050,000 |
Decrease in loans held for investment and increase in investment in partnership due to derecognition of secured lending receivable | 0 | 28,654,000 |
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 $15,107 from a related party) | 53,600,000 | 15,107,000 |
Advances on and originations of loans held for investment (includes $0 and $11,279 from a related party) | $ 0 | $ (11,279,000) |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Reconciliation) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||
Cash and cash equivalents | $ 28,644 | $ 8,555 |
Restricted cash | 17,617 | 4,250 |
Total cash, cash equivalents and restricted cash shown in statement of cash flows | $ 46,261 | $ 12,805 |
CONSOLIDATED STATEMENTs OF CA_3
CONSOLIDATED STATEMENTs OF CASH FLOWS (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Principal payments and sales proceeds received on bonds and loans held for investment | $ 55,181,000 | $ 45,796,000 |
Advances on and originations of loans held for investment | 702,000 | 11,729,000 |
Hunt Companies [Member] | ||
Principal payments and sales proceeds received on bonds and loans held for investment | 53,600,000 | 15,107,000 |
Advances on and originations of loans held for investment | $ 0 | $ 11,279,000 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 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 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 are 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. Variable Interest Entity (“ VIE ”) Assessment We previously had interests in various legal entities that represent VIEs. A VIE is an entity: (i) that has total equity at risk that is not sufficient to finance its activities without additional subordinated financial support from other entities; (ii) where the group of equity holders does not have the power to direct the activities of the entity that most significantly impact the entity’s economic performance, or the obligation to absorb the entity’s expected losses or the right to receive the entity’s expected residual returns, or both, or (iii) where the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. We determine if a legal entity is a VIE by performing a qualitative analysis that requires certain subjective decisions including, but not limited to, the design of the entity, the variability that the entity was designed to create and pass along to its interest holders, the rights of the parties and the purpose of the arrangement. As of December 31, 2020, the Company had no investments in entities that were determined to be VIEs. Measurement of Consolidated Assets and Liabilities If we are required to consolidate an entity for reporting purposes, we will record upon the initial consolidation of an entity the assets, liabilities and noncontrolling interests at fair value and will recognize a gain or loss for the difference between (i) the fair value of the consideration paid, fair value of noncontrolling interests and the reported amount of any previously held interests and (ii) the net amount of the fair value of the assets and liabilities consolidated. We record gains or losses that are associated with the consolidation of VIEs as “Net gains on real estate and other investments” in our Consolidated Statements of Operations. If we cease to be deemed the primary beneficiary of a VIE, we will deconsolidate a VIE for reporting purposes. We use fair value to measure the initial cost basis for any retained interests that are recorded upon the deconsolidation of a VIE. Any difference between the fair value and the previous carrying amount of our investment in the VIE is recorded in our Consolidated Statements of Operations. Cash and Cash Equivalents Cash and cash equivalents are comprised of short-term marketable securities with maturities of three months or less at purchase, all of which are readily convertible to cash. Restricted Cash Restricted cash represents cash and cash equivalents restricted as to withdrawal or usage. The Company may be required to pledge cash collateral in connection with secured borrowings, derivative transactions or other contractual arrangements. Investments in Debt Securities We classify and account for mortgage revenue bonds and other municipal bonds that we own as available-for-sale pursuant to requirements established in Financial Accounting Standards Board (“ FASB ASC Investments – Debt and Equity Securities FV We evaluate each bond whose fair value has declined below its amortized cost to determine whether the decline in fair value is an other-than-temporary-impairment (“ OTTI There were no bonds in an unrealized loss position at December 31, 2020. Realized gains and losses on sales of these investments are measured using the specific identification method and are recognized in earnings at the time of disposition. The Company recognizes interest income over the contractual terms of the bonds using the interest method. Therefore, the Company will accrue interest based upon a yield that incorporates the effects of purchase premiums and discounts, as well as deferred fees and costs. Contingent interest on participating bonds is recognized when the contingencies are resolved. Bonds are placed on nonaccrual status when any portion of principal or interest is 90 days past due or on the date after which collectability of principal or interest is not reasonably assured. The Company applies interest payments received on nonaccrual bonds first to accrued interest and then as interest income. Bonds return to accrual status when principal and interest payments become current and future payments are anticipated to be fully collectible. At December 31, 2020, the Company had no bonds that were on nonaccrual status. Proceeds from the sale or repayment of bonds greater or less than their amortized cost (which would include any previously recorded impairment charges) are recorded as realized gains or losses and any previously unrealized gains included in AOCI are reversed. The Company may periodically agree to modify the contractual terms of its investments in debt securities in the interest of attempting to obtain more cash or other value from a debtor than it otherwise would, or to increase the probability of receipt, by granting a concession to a borrower. If the Company makes an economic concession to a borrower that is experiencing financial difficulty, the Company will typically assess a modification or other form of economic concession to represent a troubled debt restructuring (“ TDR Investments in Partnerships The Company’s investments in partnerships that are not required to be consolidated for reporting purposes are accounted for using the equity method as described in FASB ASC Topic 323, “ Equity Method Investments Under the equity method, the Company’s investment in the partnership is recorded at cost and is subsequently adjusted to recognize the Company’s allocable share of the earnings or losses from the partnership. The Company’s allocable share of earnings or losses from the partnership is adjusted for the following: the elimination of any intra-entity profits or losses; the amortization of any basis differences between the Company’s cost and the underlying equity in net assets of the partnership; capital transactions; and other comprehensive income. Dividends received by the Company are recognized as a reduction in the carrying amount of the investment. The Company continues to record its allocable share of losses from the partnership up to the Company’s investment carrying amount, including any additional financial support made or committed to be made to the partnership. The order in which additional equity method losses are applied to other investments in the partnership is based upon the seniority and priority in liquidation of the other investments. The Company ceases recording losses on an investment in partnership when the cumulative losses and distributions from the partnership exceed the carrying amount of the investment and any advances made by the Company, unless: (i) an imminent return to profitable operations by the partnership is assured; (ii) the Company has guaranteed obligations of the partnership, or (iii) the Company has otherwise committed to provide further financial support to the partnership. The Company must periodically assess the appropriateness of the carrying amount of its equity method investments to ensure that the carrying amount of its investment is not other-than-temporarily impaired whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. The Company recognizes impairment-related losses in the Consolidated Statements of Operations as a component of “Impairments.” The Company classifies distributions received from its equity investments as operating activities in our Consolidated Statements of Cash Flows when cumulative equity in earnings is greater than or equal to the cumulative cash distributions. The Company classifies distributions as cash flows from investing activities in our Consolidated Statements of Cash Flows when cumulative equity in earnings is less than cumulative cash distributions. Loans Loans Held For Sale (“ HFS ”) When we originate loans that we intend to sell, we classify these loans as HFS. We report HFS loans at the lower of cost or fair value. Any excess of an HFS loan’s cost over its fair value is recognized as a valuation allowance, with changes in the valuation allowance recognized as “Other expenses” in our Consolidated Statements of Operations. We recognize interest income on HFS loans on an accrual basis, unless we determine that the ultimate collection of contractual principal or interest payments in full is not reasonably assured. Purchase premiums, discounts and other cost basis adjustments on HFS loans are deferred upon loan acquisition, included in the cost basis of the loan, and not amortized. We determine any lower of cost or fair value adjustment on HFS loans at an individual loan level. In the event that we reclassify HFS loans to loans held for investment, we record the loans at lower of cost or fair value on the date of reclassification. We report any lower of cost or fair value adjustment recognized upon reclassification as a basis adjustment to the held for investment loan. Loans Held for Investment (“ HFI ”) When we recognize loans that we have the ability and the intent to hold for the foreseeable future or until maturity, we classify the loans as HFI. We report HFI loans at the unpaid principal balance, net of unamortized premiums and discounts, unearned income, non-refundable deferred origination fees and costs, and allowance for loan losses. We recognize interest income on HFI loans on an accrual basis using the interest method over the contractual life of the loan, including the amortization of any deferred cost basis adjustments, such as the premium or discount at acquisition, unless we determine that the ultimate collection of contractual principal or interest payments in full is not reasonably assured. The Company recognizes a provision for loan losses in its Consolidated Statements of Operations as a component of “Other expenses.” Allowance for Loan Losses Our allowance for loan losses is a valuation allowance that reflects management’s estimate of probable losses inherent in our lending activities. Quarterly, the Company reviews each loan to assess its overall collectability. For impaired loans, which include non-performing loans as well as loans modified in a TDR, management measures impairment primarily based on the present value of payments expected to be received, discounted at the loans’ original effective contractual interest rates. Impaired loans and TDRs may also be measured based on observable market prices, or for loans that are solely dependent on the collateral for repayment, the estimated fair value of the collateral less costs to sell. If the recorded investment exceeds this amount, a specific allowance is established as a component of the allowance for loan losses unless these are secured loans that are solely dependent on the collateral for repayment, in which case the amount that exceeds the fair value of the collateral is charged off. At December 31, 2020, the Company had no allowance for loan losses recorded. Nonaccrual Loans Loans that are past due 90 days or more as to principal or interest, or where reasonable doubt exists as to timely collection, including loans that are individually identified as being impaired, are generally placed on nonaccrual status unless the loan is well-secured and in the process of collection. Accrued interest receivable is reversed when loans are placed on nonaccrual status, provided collection is not anticipated within 12 months of being placed on nonaccrual status. Interest collections on any nonaccrual loans for which the ultimate collectability of principal is uncertain are applied as principal reductions; otherwise collections are credited to income when received. Loans may be restored to accrual status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. At December 31, 2020, the Company had no nonaccrual loans. Fair Value Option (“ FVO ”) Loans For loans for which the Company has elected the FVO, unearned income, non-refundable origination fees and costs are recognized at inception upon origination of the loan. These assets are subsequently measured on a fair value basis, with changes therein classified in our Consolidated Statements of Operations as a component of “Net gains on loans.” Real Estate Owned (“REO”) The Company’s REO is generally obtained when a delinquent borrower chooses to transfer a mortgaged property to us in lieu of going through a foreclosure process. The Company classifies REO in the Consolidated Balance Sheets in “Other assets.” REO is subsequently measured for reporting purposes based upon whether the Company has designated REO as HFS or held for use (“ HFU REO is classified as HFS when we intend to sell the property and we are actively marketing property that is available for immediate sale in its current condition and a sale is reasonably expected to take place within one year. REO that we do not classify as HFS is designated as HFU. REO that is designated as HFS is reported in the Consolidated Balance Sheets at the lower of its carrying amount or fair value less estimated selling costs. We recognize a recovery for any subsequent increase in fair value, less estimated costs to sell, up to the cumulative loss previously recognized through the valuation allowance. We do not depreciate REO that is classified as HFS. REO that is designated as HFU is depreciated for reporting purposes and evaluated for impairment when circumstances indicate that the carrying amount of the property is no longer recoverable. An impairment loss is recognized if the carrying amount of the REO is not recoverable and exceeds its fair value. We recognize impairment-related losses in our Consolidated Statements of Operations as a component of “Other expenses.” We recognize gains or losses on sales of REO in our Consolidated Statements of Operations as a component of “Other expenses.” Derivative Instruments The Company accounts for all derivative instruments at their fair value unless a given derivative instrument is determined to be exempt from the recognition and measurement requirements of FASB ASC Topic 815, “ Derivatives and Hedging The Company has not designated any of its derivative investments as hedging instruments for accounting purposes. As a result, changes in the fair value of these instruments are reported in our Consolidated Statements of Operations as a component of “Net losses on derivatives.” Derivative assets are classified in our Consolidated Balance Sheets as a component of “Other assets” while derivative liabilities are classified as a component of “Other liabilities.” Guarantees With respect to our contingent obligation to perform under a guarantee, we will recognize a liability for probable and estimable losses to the extent that a measured loss exceeds the unamortized balance of our noncontingent obligation to stand ready to perform under our guarantee. The Company recognizes guarantee-related losses in the Consolidated Statements of Operations as a component of “Other expenses” while related liabilities are classified in our Consolidated Balance Sheets as a component of “Other liabilities.” Guarantees provided by the Company in connection with the performance of a consolidated subsidiary are exempt from financial statement recognition, though disclosure of these activities is provided in Note 9, “Guarantees and Collateral.” Stock-Based Compensation The Company accounts for previously awarded employee stock-based compensation plans as liability classified awards. Compensation expense is based on the fair value of awarded instruments as of the reporting date, adjusted to reflect the vesting schedule. Subsequent compensation expense is determined by changes in the fair value of awarded instruments at subsequent reporting dates, continuing through the settlement date. At December 31, 2020, the Company had no outstanding stock options. The Company accounts for its director stock-based compensation plans as equity classified awards. Compensation expense is based on the fair value of awarded instruments at the grant date. Foreign Currency Conversion Assets, liabilities and operations of foreign subsidiaries are recorded based on the functional currency of each entity. For certain of the foreign operations, the functional currency is the local currency, in which case the assets, liabilities and operations are translated, for consolidation purposes, from the local currency to the U.S. dollar reporting currency at period-end rates for assets and liabilities and generally at average rates for results of operations. The resulting unrealized gains or losses are reported as a component of AOCI in our Consolidated Balance Sheets. When assets or liabilities are denominated in a currency other than the entity’s functional currency, the resulting remeasurement gains or losses on foreign currency-denominated assets or liabilities are included in earnings in the Company’s Consolidated Statements of Operations as a component of “Other expenses.” Income (Loss) per Common Share Basic income (loss) per share is computed by dividing net income (loss) to common shareholders by the weighted-average number of common shares issued and outstanding during the period. The numerator used to calculate diluted income (loss) per share includes net income (loss) to common shareholders adjusted to remove the difference in income or loss associated with reporting the dilutive employee share awards classified as liabilities as opposed to equity awards. The denominator used to calculate diluted income (loss) per share includes the weighted-average number of common shares issued and outstanding during the period adjusted to add in common stock equivalents associated with unvested share awards as well as in the money option awards unless they are contingent upon a certain share price that has not yet been achieved. At December 31, 2020, the Company had no outstanding stock options. Income Taxes All of our business activities, with the exception of our foreign investments, are conducted by entities included in our consolidated corporate federal income tax return. ASC Topic No. 740, “Income Taxes,” establishes financial accounting and reporting standards for the effect of income taxes. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current period and DTAs and deferred tax liabilities (“ DTLs effective tax rate calculation assuming that we will be able to realize the full benefit of the credits. Each reporting period, we assess whether DTAs are realizable. These reviews include management’s estimates and assumptions regarding future pretax book income, which also incorporates various tax planning strategies, including strategies that may be available to utilize NOLs before they expire. In connection with these reviews, if it is determined that a DTA is not realizable, a valuation allowance is established. At each reporting period, we evaluate the recoverability of our DTAs, weighing all positive and negative evidence, and are required to establish or maintain a valuation allowance for these assets if we determine that, based on the weight of available evidence, it is more likely than not that some or all of the DTAs will not be realized. The weight given to the evidence is commensurate with the extent to which evidence is objectively verifiable. If negative evidence exists, positive evidence must be present to support a conclusion that a valuation allowance is not necessary. We account for uncertain tax positions using a two-step approach whereby we recognize an income tax benefit if, based on the technical merits of a tax position, it is more likely than not that the tax position would be sustained upon examination by the taxing authority, which includes all related appeals and litigation. We then measure the recognized tax benefit based on the largest amount of tax benefit that is greater than 50% likely to be realized upon settlement with the taxing authority, considering all information available at the reporting date. We establish additional provisions for income taxes when there are certain tax positions that could be challenged and it is more likely than not these positions will not be sustained upon review by taxing authorities. Accounting Guidance Adoption of Accounting Standards Accounting for Financial Instruments In March 2017, the FASB issued Accounting Standards Update (“ 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.” disclosure requirements. We adopted this guidance on its effective date of January 1, 2020. The adoption of this guidance 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. 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. 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).” because the Company is a smaller reporting company the ASU will become effective for the Company on January 1, 2023. We are currently evaluating the potential impact of this new guidance on our consolidated financial statements. Accounting for Financial Instruments – General In March 2020, the FASB issued ASU No. 2020-03, “ Codification Improvements to Financial Instruments.” Accounting for Income Taxes In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” Accounting for Financial Instruments – Rate Reform In January 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform (Topic 848): An Amendment of the FASB Accounting Standards Codification.” discounting transition |
INVESTMENTS IN DEBT SECURITIES
INVESTMENTS IN DEBT SECURITIES | 12 Months Ended |
Dec. 31, 2020 | |
INVESTMENTS IN DEBT SECURITIES [Abstract] | |
Investments in Debt Securities | Note 2—Investments in Debt Securities At December 31, 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 At December 31, 2020 Gross Amortized Unrealized FV as a % (in thousands) UPB Cost (1) Gains FV of UPB Infrastructure Bond $ 26,440 $ 20,532 $ 4,209 $ 24,741 94% Multifamily tax-exempt bond 4,000 — 6,297 6,297 157% Total $ 30,440 $ 20,532 $ 10,506 $ 31,038 102% 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 OTTI recognized in “Impairments” in our Consolidated Statements of Operations. See Note 8, “Fair Value,” which describes factors that contributed to the $0.3 million decrease in the reported fair value of the Company’s investments in debt securities for the year ended December 31, 2020. Nonaccrual Bonds At December 31, 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 year ended December 31, 2020. The Company received cash proceeds in connection with the sale or redemption in full of investments in bonds of $29.3 million for the year ended December 31, 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 year ended December 31, (in thousands) 2020 2019 Gains recognized at time of sale or redemption $ — $ 28,606 |
INVESTMENTS IN PARTNERSHIPS
INVESTMENTS IN PARTNERSHIPS | 12 Months Ended |
Dec. 31, 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 December 31, December 31, (in thousands) 2020 2019 Investment in Solar Ventures $ 363,157 $ 289,123 Investments in U.S. real estate partnerships 11,208 19,822 Investment in South Africa Workforce Housing Fund (" SAWHF 1,833 7,732 Total investments in partnerships $ 376,198 $ 316,677 Investments Related to the Solar Ventures At December 31, 2020, we were a 50% investor member in the joint ventures through which we invest in renewable energy projects 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 December 31, 2020, the Company held 45.2%, 45.0% and 42.3% economic interests in Solar Construction Lending, LLC (“ SCL SPL SDL was the sole REL Solar Ventures was sole At December 31, 2020, the carrying value of the Company’s equity investments in SCL, SPL and SDL was $96.2 million, $80.4 and $186.6 million, respectively. None of these investees were assessed to constitute a VIE and the Company accounts for all of these investments using the equity method of accounting. At December 31, 2020, these joint ventures had $261.7 million of unfunded loan commitments that required borrowers to meet various conditions set forth in governing loan agreements in order for funding to occur. At December 31, 2020, $114.7 million of such commitments were attributable to the Company based upon various non-pro rata capital contribution agreements and our interest in these ventures. The unfunded loan commitments that qualified for funding, were anticipated to be funded primarily by capital within the joint ventures through a combination of existing loan redemptions and uninvested capital. To the extent capital within the joint ventures is not sufficient to meet their funding obligations additional capital contributions by the members would be required. 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 $0.9 million for the years ended December 31, 2020 and December 31, 2019. At December 31, 2020 and December 31, 2019, the unamortized balance of the Company’s basis difference was $2.2 million and $3.1 million, respectively. Subsequent to December 31, 2020, the Company and its capital partner in SCL and SDL funded various non-pro rata capital contributions, whereby our capital partner contributed the full $10.0 million in SCL capital calls and $102.0 million of $127.0 million in SDL capital calls, while the Company contributed the balance of these capital calls, or $25.0 million. In addition, our capital partner received distribution of $13.0 million in SCL, while the Company received distributions of $25.0 million. As a consequence of these non-pro rata capital contributions and distributions, our economic interest in SCL and SDL, as of March 24, 2021, decreased to 38.4% and 37.3%, respectively. In the fourth quarter of 2020, a renewable energy project in the ERCOT service area to which the Solar Ventures made construction and mezzanine loans, which had aggregate UPBs of $295.5 million and represented 39.6% of the total UPB of the loan portfolio of the Solar Ventures at September 30, 2020, began operational activities and was recapitalized with tax-equity and term debt provided by third parties and a $177.5 million sponsor equity loan provided by SPL (“ ERCOT Project 1 At December 31, 2020, all but two renewable energy projects, both of which are located in the ERCOT service area and were financed by three loans from the Solar Ventures that had a total UPB of $214.3 million, had usual and customary take-out commitments in place as generally required under the loan agreements. In most cases, the repayment of the Solar Venture loans, or their “take-out,” is dependent upon the refinancing of a loan made by the Solar Ventures or the sale of the underlying renewable energy project to third parties, both of which typically require some combination of tax credit equity, sponsor equity and construction or permanent debt financing. The Solar Ventures may themselves participate in the take-out of such loans by providing financing, including long-term mezzanine financing or other credit enhancements. Additionally, the Solar Ventures may increase the size of funding commitments or extend the contractual maturity of loan receivables as necessary to preserve the value of loan investments made. Given the macro-economic conditions, uncertainty in the financial markets and our dependence on a functioning renewable energy finance market, we continue to closely monitor loan performance and expected sources of repayment. As further discussed below, the two projects that, at December 31, 2020, did not have usual and customary take-out commitments are under construction or development in the ERCOT service area. On March 2, 2021, a take-out commitment was secured for one of these projects (“ ERCOT Project 2 ERCOT Project 3 During the second and third weeks of February 2021, a severe winter storm occurred in the southern and midwestern states in the U.S., including the ERCOT service area, that impaired the operational capabilities of numerous fossil fuel and renewable energy generating assets in the region. Extreme cold temperatures also caused the demand for electricity to surge to unprecedented levels, driving the market price of power to the maximum price permitted by ERCOT for multiple days. Weather conditions during this timeframe caused ERCOT Project 1 to be unable to meet its energy delivery requirements to its counterparty pursuant to various energy supply and pricing agreements. As a result, ERCOT Project 1 became obligated to purchase, at market prices in effect during that time, an amount of power equal to the shortfall in the electricity volumes that it was contractually obligated to deliver. The party which manages ERCOT energy deliveries and payments on behalf of ERCOT Project 1 under its supply agreements thereafter provided notification on March 10, 2021, that the net settlement cost associated with the power delivery shortfall during that period totaled $25.5 million. The project pledged $3.0 million of cash; however, given the liquidity constraints of the project and the sponsor member it is expected that they will be unable to meet the remaining net settlement payment. As a result, the Company and our capital partner expect that they will provide the capital to SPL to enable the project to satisfy its net settlement payment obligation of $22.5 million as well as any additional payment obligations, that may be required in connection with or to facilitate the final closing of the recapitalization of the ERCOT Project 1 in the fourth quarter of 2020 upon substantial completion of the project. Due to the project’s value, its capital structure and other repayment risk factors, we believe that recovery of these additional advances expected to be made by SPL would be at significant risk and, consequently, a related fair value loss is expected to be recognized by SPL in the first quarter of 2021 that, taken together with interest income that is not expected to be accrued during such reporting period (as further discussed below), could result in a substantial decrease in SPL’s net income. On March 2, 2021, SDL and SCL executed loan amendments and other agreements to facilitate the take-out of a development loan provided by SDL and of the allocated portion of a mezzanine loan provided by SCL, which are financing ERCOT Project 2. To mitigate risk and reduce exposure to this project, SDL and SCL agreed to waive all interest and fees on the repayment of SDL’s development loan and an allocated portion of SCL’s mezzanine loan which, at December 31, 2020, had a combined UPB of $44.7 million including the capitalization of $7.6 million of interest and fees, and further agreed to provide $30.2 million of bridge construction loan proceeds to the project in anticipation of an expected sale of the project to a prospective buyer by May 15, 2021. These agreements also provided the prospective buyer with a mezzanine loan facility up to $9.0 million, the proceeds of which can be utilized upon the closing to refinance the existing development loan and allocated portion of the mezzanine loan. The terms of any such new mezzanine loan are subject to final negotiation, approvals and documentation. Additionally, in consideration for its waiver of interest and fees on this development loan, as part of this loan’s restructuring SDL will, upon closing, have the ability to recover up to $4.0 million of foregone interest and fees through a participation interest, subject to the prospective buyer receiving a specified rate of return on its investment. All loans will be reported at fair value and, given loan related concessions made, a mark-to-market loss and other reductions in net income are expected to be recognized in the first quarter of 2021 by SDL and SCL and such impacts could be substantial. On January 12, 2021, a notice of default was issued by SDL in connection with a development loan made to ERCOT Project 3 that had a UBP and fair value of $160.3 million and $168.4 million, respectively, at December 31, 2020, because the loan was past its maturity date with no take-out commitment in place. During the first quarter of 2021, $80.1 million of additional advances were made in connection with this loan to continue to fund the project’s construction activities and keep it on schedule to meet its target mechanical completion date. Discussions to resolve any defaults associated with this loan and provide for the future ownership and operation of this project are currently in process. The ERCOT market remains volatile and uncertain primarily stemming from the February 2021 weather event and resulting energy crisis. There is litigation among various market participants and potential legislative reform is being considered, all of which remain uncertain. Assuming that the Company was unable to recover any of the additional advances made to ERCOT Project 1 (as outlined above), the Company’s allocable share of losses in the first quarter would, when taken together with loan-related interest income that is not expected to be accrued and other impacts stemming from the aforementioned actions taken to maximize the recovery of loans made to ERCOT Project 2, be $23.3 million, or approximately $4.00 per share (such loss would be recognized by the Company as a reduction in equity in income of the Solar Ventures). However, it is difficult to estimate first quarter impacts related to these exposures in absence of, among other things, the completion of fair value measurements of loans outstanding at the Solar Ventures at March 31, 2021, which require various valuation inputs that were not available as of the filing date of this Report. Further, additional events may occur that could cause this estimate to change by amounts that could be material. 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 December 31, December 31, 2020 2019 (in thousands) Total assets (1) $ 831,077 $ 706,792 Other liabilities (2) 4,059 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 year ended December 31, (in thousands) 2020 2019 Gross revenue $ 98,901 $ 55,905 Operating expenses 6,380 6,541 Net income and net income attributable to the entities 93,956 49,443 Investments in U.S. Real Estate Partnerships At December 31, 2020, the $11.2 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 economic interest based upon the partnership’s distribution waterfall. This entity was determined not to be a VIE because decision-making rights are shared equally among its members. Accordingly, the Company accounts for this investment using the equity method of accounting. 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 December 31, December 31, 2020 2019 (in thousands) Total assets $ 47,632 $ 51,718 Debt 6,644 6,426 Other liabilities 9,612 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 year ended December 31, (in thousands) 2020 2019 Gross revenue $ 12,551 $ 2,575 Operating expenses 2,288 2,133 Net income (loss) and net income (loss) attributable to the entity 5,338 (2,427) 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 December 31, 2020, the carrying value of the Company’s 11.85% equity investment in SAWHF was $1.8 million, which reflects a $5.9 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 December 31, December 31, 2020 2019 (in thousands) Total assets $ 15,861 $ 56,356 Other liabilities 150 130 The following table provides information about the gross revenue, operating expenses and net income of SAWHF: For the year ended December 31, (in thousands) 2020 2019 Gross revenue $ 1,581 $ 4,130 Operating expenses 928 1,003 Net income and net income attributable to the entity 5,105 781 |
LOANS HELD FOR INVESTMENT ("HFI
LOANS HELD FOR INVESTMENT ("HFI") | 12 Months Ended |
Dec. 31, 2020 | |
LOANS HELD FOR INVESTMENT ("HFI") [Abstract] | |
Loans Held for Investment ("HFI") | Note 4—Loans Held for Investment 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 December 31, December 31, (in thousands) 2020 2019 UPB $ — $ 54,100 Fair value adjustments — — Loans HFI, net $ — $ 54,100 At December 31, 2020, the Company had no HFI loans. At December 31, 2019, the Company had two HFI loans that had a combined UPB and fair value of $54.1 million. On January 3, 2020, the entire $53.6 million UPB of the Hunt Note was fully repaid and on December 30, 2020, the Company’s renewable energy-related loan was repaid in full at par. The Company elected the fair value option for one of its HFI loans that had a UPB and fair value of $0.5 million at December 31, 2019. The fair value option was elected upon its recognition so as to minimize certain operational challenges associated with accounting for this loan. At December 31, 2019, the Company had no Unfunded Loan Commitments At December 31, 2019, the Company, through its wholly owned subsidiary of REL, had $1.6 million of unfunded loan commitments. There were no unfunded loan commitments at December 31, 2020 as this loan was repaid in full. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 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 December 31, December 31, (in thousands) 2020 2019 Other assets: Real estate owned $ 15,510 $ 8,397 Debt issue costs 2,004 2,675 Equity investments 2,463 — Derivative assets 61 597 Accrued interest receivable 139 853 Other assets 305 462 Total other assets $ 20,482 $ 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 December 31, December 31, (in thousands) 2020 2019 Land improvements $ 12,891 $ 5,778 Land 2,619 2,619 Total $ 15,510 $ 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 year ended December 31, 2020, the Company invested $7.1 million in additional land improvements that were capitalized as part of the carrying value of such investment. Since the Company’s REO has not been placed in service, no depreciation expense was recognized in connection with this land investment for the years ended December 31, 2020 and December 31, 2019, nor were any impairment losses recognized by the Company during these reporting periods in connection with our REO. Debt Issuance Costs During 2019, the Company incurred, but deferred in the Consolidated Balance Sheets, $2.9 million of 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. These shares are pledged as collateral to the SAWHF debt included within notes payable and other debt. During the year ended December 31, 2020, the Company recognized $0.9 million in “Net loss on other assets” within the Company’s Consolidated Statements of Operations. At December 31, 2020, the carrying value of these shares was $2.5 million. See Note 6, “Debt,” Note 8, “Fair Value,” and Note 9, “Guarantees and Collateral” for more information. Derivative Assets At December 31, 2020 and December 31, 2019, the Company recognized $0.1 million and $0.6 million of derivative assets. See Note 7, “Derivative Instruments,” for more information. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 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 December 31, 2020 and December 31, 2019: At At December 31, 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 $ 2,217 1.5 % $ 2,212 3.2 % Due after one year 90,995 1.5 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 4,206 13.7 6,828 14.7 Due after one year 13,533 5.2 1,500 5.0 Total other debt 214,651 4.0 198,316 4.8 Asset Related Debt Notes Payable and Other Debt Bond related debt (3) Due within one year 242 2.5 — — Due after one year 22,912 2.5 — — Non-bond related debt Due within one year — — 650 5.0 Due after one year — — 2,850 5.0 Total asset related debt 23,154 2.5 3,500 5.0 Total debt $ 237,805 3.8 % $ 201,816 4.8 % (1) The subordinated debt balances include net cost basis adjustments of $6.9 million and $7.4 million at December 31, 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 $0.2 million $0.1 million at December 31, 2020 and December 31, 2019, respectively. (3) Included in Asset Related Debt – notes payable and other debt – bond related debt were unamortized debt issuance costs of $0.1 million at December 31, 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 December 31, 2020: Asset Related Debt (in thousands) and Other Debt 2021 $ 6,357 2022 128,525 2023 11,336 2024 1,813 2025 3,131 Thereafter 80,066 Net premium and debt issue costs 6,577 Total debt $ 237,805 At December 31, 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 December 31, 2020: (dollars in thousands) Net Premium Interim and Debt Carrying Principal Issuer UPB Issuance Costs Value Payments (1) Maturity Date Coupon MFH $ 25,483 $ 2,113 $ 27,596 Amortizing March 30, 2035 three-month LIBOR plus 2.0% MFH 23,172 1,918 25,090 Amortizing April 30, 2035 three-month LIBOR plus 2.0% MFH 13,357 1,023 14,380 Amortizing July 30, 2035 three-month LIBOR plus 2.0% MFH 24,286 1,860 26,146 Amortizing July 30, 2035 three-month LIBOR plus 2.0% Total $ 86,298 $ 6,914 $ 93,212 (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 December 31, 2020, the UPB Notes Payable and Other Debt At December 31, 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 $4.1 million and $4.0 million, respectively. This debt, which is denominated in South African rand, has a maturity date of December 24, 2021 and requires the Company to pay its counterparty a rate equal to the Johannesburg Interbank Agreed Rate (“ JIBAR At December 31, 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 December 31, 2020, the UPB and carrying value of this debt obligation was $9.5 million and $9.4 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 December 31, 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 $26.4 million with a pay rate of 6.3% at December 31, 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 December 31, 2020 and December 31, 2019. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 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 December 31, 2020 December 31, 2019 (in thousands) Assets Liabilities Assets Liabilities Basis swaps $ — $ 542 $ 318 $ — Interest rate caps 61 — 227 — Interest rate swaps — 1,665 52 — Foreign currency forward exchange — 86 — 117 Gain share arrangement (1) — 96 — — Total carrying value of derivative instruments $ 61 $ 2,389 $ 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 December 31, 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 4,494 4,685 Total notional amount of derivative instruments $ 109,494 $ 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 year ended December 31, (in thousands) 2020 2019 Total return swaps (1) $ — $ (42) Basis swaps (2) (854) (270) Interest rate caps (166) (771) Interest rate swaps (3) (1,948) (2,341) Foreign currency forward exchange 89 (299) Gain share arrangement (99) — Total net losses of derivative instruments $ (2,978) $ (3,723) (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 year ended December 31, 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 and $0.2 million for the years ended December 31, 2020 and December 31, 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 $0.2 million for the year ended December 31, 2020, while the net cash received was $0.2 million for the year ended December 31, 2019. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 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 December 31, Fair Value Measurements (in thousands) 2020 Level 1 Level 2 Level 3 Assets: Investments in debt securities $ 31,038 $ — $ — $ 31,038 Equity investments 2,463 2,463 — — Derivative instruments 61 — 61 — Liabilities: Derivative instruments $ 2,389 $ — $ 2,389 $ — 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 year ended December 31, 2020: Investments in Debt Loans Held for (in thousands) Securities Investment Balance, January 1, 2020 $ 31,365 $ 500 Net gains included in earnings (1) — 97 Net change in AOCI (2) (62) — Impact from loan originations / advances — 780 Impact from settlements (3) (265) (1,377) Balance, December 31, 2020 $ 31,038 $ — (1) This amount represents $0.1 million of realized gains recognized during this reporting period in connection with the Company’s loan investment that was repaid during 2020. This amount is classified as “Net gains on loans and extinguishment of liabilities” in the Company’s Consolidated Statement of Operations. (2) This amount represents $0.1 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 year ended December 31, 2019: Investments in Debt Derivative Loans Held for (in thousands) Securities Assets Investment Balance, January 1, 2019 $ 97,190 $ 1,130 $ — Net losses included in earnings — (195) — Net change in AOCI (1) (27,057) — — Impact from loan originations — — 500 Impact from sales or redemptions (38,209) — — Impact from settlements (2) (559) (935) — Balance, December 31, 2019 $ 31,365 $ — $ 500 (1) This amount represents the reclassification into the Consolidated Statements of Operations of $28.3 million of net fair value gains related to bonds that were sold or redeemed during this reporting period, partially offset by $1.2 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 year ended December 31, 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 28,606 153 Total net gains (losses) reported in earnings $ 28,606 $ (42) (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 December 31, 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 $ 24,741 Discounted cash flow Market yield 7.1 % N/A Multifamily tax-exempt bond Subordinated cash flow 6,297 Discounted cash flow Market yield 6.9 N/A Capitalization rate 6.4 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 December 31, 2020 and 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 dates, which was estimated by determining the Company’s share of the net asset value (“ NAV when adjusting this investment’s carrying value to its measured fair value at December 31, 2020 and June 30, 2020, respectively. Because of the limited observability of certain valuation inputs that were used to measure the fair value of this equity investment, it was classified as level 3 in the fair value hierarchy at each reporting period. There were no nonrecurring fair value adjustments recognized by the Company during the year ended December 31, 2019. 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 December 31, 2020 Carrying Fair Value (in thousands) Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 28,644 $ 28,644 $ — $ — Restricted cash 17,617 17,617 — — Liabilities: Notes payable and other debt - bond related 23,154 — — 23,267 Notes payable and other debt - non-bond related 17,739 — — 17,552 Revolving credit facility obligations 103,700 — — 103,700 Subordinated debt issued by MFH 93,212 — — 53,204 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 market yield been 5.9% and 10.9%, respectively. The measured fair value of this debt is inherently judgmental and based on management’s assumption of market yields. There can be no assurance that the Company could repurchase the remaining subordinated debt at the measured fair values reflected in the table above or that the debt would trade at that price. Revolving credit facility debt obligations |
GUARANTEES AND COLLATERAL
GUARANTEES AND COLLATERAL | 12 Months Ended |
Dec. 31, 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 December 31, 2020 and December 31, 2019: At December 31, 2020 Investments Total Restricted in Debt Investments in Other Assets (in thousands) Cash Securities Partnerships Assets Pledged Debt related to the revolving credit facility $ 1,502 $ — $ 363,157 $ — $ 364,659 Debt related to TRS agreement 10,020 24,741 — — 34,761 Debt related to the Company's REO 250 — — 15,510 15,760 Debt and derivatives related to the Company's 11.85% ownership interest in SAWHF 1,374 — 1,833 2,463 5,670 Interest rate swaps 4,463 — — — 4,463 Other 8 — — — 8 Total $ 17,617 $ 24,741 $ 364,990 $ 17,973 $ 425,321 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 | 12 Months Ended |
Dec. 31, 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. On February 11, 2021, SAH 2001 Fund III MM, Inc. (“ ”) served Jolt Realty, LLC (“ ”) and MMA Capital TC Fund I, LLC (“ ”) with a Complaint filed in the Superior Court of California, County of Orange. SAH is the managing member of the LNR 2001 Fund III MM, Inc. (the “ ”). TC Fund I, through Jolt, its wholly-owned subsidiary, is the investing member of the Fund. In its Complaint, SAH alleges that in July 2017 it mistakenly paid $1.8 million to Jolt as part of the distribution of proceeds from the sale of property from the Fund. SAH seeks return of that payment based on an alleged breach of the Fund’s Operating Agreement (Count I), unjust enrichment (Count II), and breach of the implied covenant of good faith and fair dealing (Count III). On January 8, 2018, MMA entered into a Master Transaction Agreement with an affiliate of its External Manager (the “ ”), pursuant to which, among other things, MMA sold its interest in TC Fund I to an affiliate of its External Manager. The terms of the MTA require MMA to indemnify Hunt for any losses associated with this claim and permitted MMA to assume the defense of this claim. MMA assumed the defense of this claim and is vigorously defending against the allegations in the Complaint and denies all counts of the Complaint. The litigation is in its preliminary stages, and discovery has not yet commenced. Although MMA has reason to believe that it will prevail on the merits, the ultimate outcome cannot be predicted at this time. At December 31, 2020, we had no other 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 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 DTAs, 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 December 31, 2020. During the fourth quarter of 2020, the Company recognized $2.9 million of net DTA. 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 gain or loss recognition depends upon future circumstances and, therefore, cannot be predicted at this time. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 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 December 31, 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 December 31, 2020, the Company was authorized to issue 50,000,000 common shares. The following table provides information about net income (loss) 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 year ended December 31, (in thousands) 2020 2019 Net income from continuing operations $ 8,374 $ 100,985 Net loss from discontinued operations — (8) Net income $ 8,374 $ 100,977 Basic and diluted weighted-average shares (1) 5,809 5,877 (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 December 31, 2020, the Company had two shareholders who held greater than a 4.9% interest in the Company, one of whom is its former Chief Executive Officer and current Chairman 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 made on or before 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 year ended December 31, 2020: Investments Foreign in Debt Currency (in thousands) Securities Translation AOCI Balance, January 1, 2020 $ 7,666 $ (33) $ 7,633 Net unrealized (losses) gains (62) 69 7 Income tax benefit 17 — 17 Net change in AOCI (45) 69 24 Balance, December 31, 2020 $ 7,621 $ 36 $ 7,657 The following table provides information related to the net change in AOCI for the year ended December 31, 2019: Investments Foreign in Debt Currency (in thousands) Securities Translation AOCI Balance, January 1, 2019 $ 37,625 $ 72 $ 37,697 Net unrealized gains (losses) 1,244 (105) 1,139 Reclassification of fair value gains on sold or redeemed bonds into the Consolidated Statements of Operations (28,301) — (28,301) Income tax expense (2,902) — (2,902) Net change in AOCI (29,959) (105) (30,064) Balance, December 31, 2019 $ 7,666 $ (33) $ 7,633 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 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 year ended December 31, (in thousands) 2020 2019 Non-employee Directors’ Stock-Based Compensation Plans $ 835 $ 595 Employees’ Stock-Based Compensation Plans At December 31, 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 365,369 were available to be issued at December 31, 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 years ended December 31, 2020 and December 31, 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 December 31, 2020 (1) $ 432,500 8,274 7,963 $ 24.79 — $ 835,000 December 31, 2019 297,500 2,222 7,194 31.59 — 595,000 (1) During the first quarter of 2020, the Board approved the addition of two independent directors and 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 | 12 Months Ended |
Dec. 31, 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 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 years ended December 31, 2020 and December 31, 2019, no incentive fee was earned by our External Manager. During the years ended December 31, 2020 and December 31, 2019, the Company recognized $8.3 million and $7.2 million, respectively, of management fees and expense reimbursements payable to our External Manager in its Consolidated Statements of Operations. At December 31, 2020 and December 31, 2019, $1.2 million 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 During the year ended December 31, 2019, the Company recognized $3.3 million of interest income associated with this note receivable in the Consolidated Statements of Operations. At December 31, 2019, $0.7 million of accrued interest was payable by Hunt. 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. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Income Taxes | Note 14—Income Taxes Provision for Income Taxes The Company was organized as a limited liability company that had elected to be taxed as a corporation for income tax purposes and, on January 1, 2019, converted into a corporation. All our business activities, with the exception of our foreign investments, are conducted by entities included in our consolidated corporate federal income tax return. The following table summarizes the components of our provision for income taxes for the years ended December 31, 2020 and December 31, 2019: For the year ended December 31, (in thousands) 2020 2019 Current income tax expense: Federal $ — $ — State (125) (131) Total current income tax expense (125) (131) Deferred income tax benefit Federal 1,036 46,353 State 318 14,260 Total deferred income tax benefit 1,354 60,613 Total provision benefit for income taxes $ 1,229 $ 60,482 The following table reflects the effective income tax reconciliation from continuing operations for the years ended December 31, 2020 and December 31, 2019: For the year ended December 31, (in thousands) 2020 2019 Income from continuing operations before income taxes $ 7,145 $ 40,503 Income tax expense at federal statutory rate (1,500) (8,506) Permanent differences: State income taxes, net of federal tax effect (459) 504 Impact from other comprehensive income 13 3,593 State net operating loss adjustment 1,107 4,373 Other 132 (1,512) Net decrease in the valuation allowance 1,936 62,030 Provision benefit for income taxes $ 1,229 $ 60,482 DTAs, DTLs and Valuation Allowance We recognize deferred tax assets and liabilities for future tax consequences arising from differences between the carrying amounts of existing assets and liabilities under GAAP and their respective tax bases, and for NOL carryforwards and tax credit carryforwards. At each reporting period, we evaluate the recoverability of our DTAs, weighing all positive and negative evidence, and are required to establish or maintain a valuation allowance for these assets if we determine that, based on the weight of available evidence, it is more likely than not that some or all of the DTAs will not be realized. The weight given to the evidence is commensurate with the extent to which evidence is objectively verifiable and is considered, in the judgment of management, more likely than not to occur. If negative evidence exists, positive evidence must be present to support a conclusion that a valuation allowance is not necessary. Our framework for assessing whether DTAs will be realized requires us to weigh all available evidence, including: ● our three-year cumulative income position; ● the trend of pretax book income results; ● the sustainability of recent profitability indicated by pretax book income from core business activities that was demonstrated in the past and would be reasonable to assume for the future (or, “ Core Earnings ”); ● our forecast of pretax book income; ● our access to capital; ● macroeconomic risks to the economy and our business operations; and ● the carryforward periods for NOLs, capital losses and tax credits. Our consideration of evidence requires significant judgment regarding estimates and assumptions that are inherently uncertain, particularly about our future business structure and financial results. Risks to our forward-looking estimates of pretax book income include, but are not limited to, changes in market rates of return, additional competitors entering the marketplace (which could reduce rates of return due to competition for new borrowers), limits on access to investible capital that would limit new investments that could be made by the Company, changes in the law and the Company’s dependence on a small, specialized team of the External Manager for underwriting activities. Given these risks our forward-looking estimates could materially differ from actual results. As of December 31, 2020 and 2019, the Company assessed that the weight of available evidence was sufficient to conclude that it was more likely than not that a portion of our DTAs would be realized. That assessment remained based, in part, on the Company’s three-year cumulative income position and positive three-year trend in pretax book income as evidence of the Company’s profitability. Moreover, the Company’s three-year trailing Core Earnings measurement at each measurement date, was positive. Therefore, while the Company continued to consider macroeconomic risks to its business operations as a potential source of negative evidence in its analysis of whether its DTAs would be realized, the Company assessed that the preponderance of evidence available at both December 31, 2020 and December 31, 2019, was positive. As a result of that assessment, the Company performed a forecast of pretax book income for purposes of measuring the expected utilization of the Company’s net deferred tax assets as of the measurement date. Based on the foregoing, the Company released a portion of its DTA valuation allowance in the fourth quarter of 2019 through the recognition of a $57.7 million net DTA. The amount released reflected the projected utilization of $210.2 million of federal NOLs based upon a federal corporate tax rate of 21.0% and a blended state tax rate (net of federal benefit) of 6.46% incorporating the Company’s forecast of pretax book income at December 31, 2019. In performing the update of the measurement at December 31, 2020, the Company recognized an additional $1.4 million of net DTA for the year ended December 31, 2020, or $59.1 million of recognized DTA at the measurement date, projecting the ability to utilize $215.2 million of federal NOLs over the balance of the life of the NOLs, with $143.8 million of federal NOLs projected to expire before their utilization. Projections of pretax book income were made using assumptions that, based on the Company’s historical experience and other factors considered management’s judgment, were assessed to be more likely than not to occur. However, realization of our DTAs remains dependent on generating sufficient pretax book income in future periods. Therefore, although we believe it is more likely than not at both December 31, 2020 and December 31, 2019, that future income will be sufficient to allow us to realize the carrying value of net DTAs recognized at those measurement dates, realization is not assured, and future events could cause us to change our judgment. The following table summarizes the carrying value of our DTAs, net of valuation allowance at December 31, 2020 and December 31, 2019: At At December 31, December 31, (in thousands) 2020 2019 Deferred tax assets: Net operating loss, tax credits and other tax carryforwards $ 119,626 $ 122,917 Cancellation of subordinated debt 3,209 3,340 Other 1,096 1,715 Gross deferred tax assets 123,931 127,972 Valuation allowance (63,437) (65,373) Total deferred tax assets, net of valuation allowance 60,494 62,599 Deferred tax liabilities: Other, net (1,411) (4,888) Total deferred tax liabilities (1,411) (4,888) Deferred tax assets, net $ 59,083 $ 57,711 The following table summarizes the change in the valuation allowance for the years ended December 31, 2020 and December 31, 2019: For the year ended December 31, (in thousands) 2020 2019 Balance, January 1 $ 65,373 $ 124,500 Net reductions due to discontinued operations — 2 Net reductions due to continuing operations (1) (1,936) (59,129) Balance, December 31 $ 63,437 $ 65,373 (1) This amount includes $2.9 million of valuation allowance release that is included in AOCI at December 31, 2019. There was no valuation release included in AOCI at December 31, 2020. At December 31, 2020 and December 31, 2019, the Company had pre-tax federal NOLs of $358.9 million and $374.9 million, respectively, which are available to reduce future federal income taxes and begin to expire in 2028 For both tax years ending December 31, 2020 and December 31, 2019, the Company had income taxes receivable (net of current taxes payable) of $0.1 million reported as an “Other assets” on our Consolidated Balance Sheets. Significant judgment is required in determining and evaluating income tax positions. The Company establishes additional provisions for income taxes when there are certain tax positions that could be challenged and that may not be supportable upon review by taxing authorities. The Company had no liabilities for uncertain tax positions at December 31, 2020 and December 31, 2019. The changes to tax positions that only affect timing are comprised of temporary differences that, if recognized, would adjust the amount of the NOL carryforwards which were subject to the Company’s valuation allowance in the period then recorded; therefore, a liability was not recorded for these uncertain tax positions. At December 31, 2020, there were no impacts for uncertain tax positions, including amounts that only affect timing. The Company is subject to audit under the statute of limitations by the Internal Revenue Service (“ IRS |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
SEGMENT INFORMATION [Abstract] | |
Segment Information | Note 15—Segment Information At December 31, 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) | 12 Months Ended |
Dec. 31, 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 are 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. Variable Interest Entity (“ VIE ”) Assessment We previously had interests in various legal entities that represent VIEs. A VIE is an entity: (i) that has total equity at risk that is not sufficient to finance its activities without additional subordinated financial support from other entities; (ii) where the group of equity holders does not have the power to direct the activities of the entity that most significantly impact the entity’s economic performance, or the obligation to absorb the entity’s expected losses or the right to receive the entity’s expected residual returns, or both, or (iii) where the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. We determine if a legal entity is a VIE by performing a qualitative analysis that requires certain subjective decisions including, but not limited to, the design of the entity, the variability that the entity was designed to create and pass along to its interest holders, the rights of the parties and the purpose of the arrangement. As of December 31, 2020, the Company had no investments in entities that were determined to be VIEs. Measurement of Consolidated Assets and Liabilities If we are required to consolidate an entity for reporting purposes, we will record upon the initial consolidation of an entity the assets, liabilities and noncontrolling interests at fair value and will recognize a gain or loss for the difference between (i) the fair value of the consideration paid, fair value of noncontrolling interests and the reported amount of any previously held interests and (ii) the net amount of the fair value of the assets and liabilities consolidated. We record gains or losses that are associated with the consolidation of VIEs as “Net gains on real estate and other investments” in our Consolidated Statements of Operations. If we cease to be deemed the primary beneficiary of a VIE, we will deconsolidate a VIE for reporting purposes. We use fair value to measure the initial cost basis for any retained interests that are recorded upon the deconsolidation of a VIE. Any difference between the fair value and the previous carrying amount of our investment in the VIE is recorded in our Consolidated Statements of Operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents are comprised of short-term marketable securities with maturities of three months or less at purchase, all of which are readily convertible to cash. |
Restricted Cash | Restricted Cash Restricted cash represents cash and cash equivalents restricted as to withdrawal or usage. The Company may be required to pledge cash collateral in connection with secured borrowings, derivative transactions or other contractual arrangements. |
Investments in Debt Securities and Investments in Partnerships | Investments in Debt Securities We classify and account for mortgage revenue bonds and other municipal bonds that we own as available-for-sale pursuant to requirements established in Financial Accounting Standards Board (“ FASB ASC Investments – Debt and Equity Securities FV We evaluate each bond whose fair value has declined below its amortized cost to determine whether the decline in fair value is an other-than-temporary-impairment (“ OTTI There were no bonds in an unrealized loss position at December 31, 2020. Realized gains and losses on sales of these investments are measured using the specific identification method and are recognized in earnings at the time of disposition. The Company recognizes interest income over the contractual terms of the bonds using the interest method. Therefore, the Company will accrue interest based upon a yield that incorporates the effects of purchase premiums and discounts, as well as deferred fees and costs. Contingent interest on participating bonds is recognized when the contingencies are resolved. Bonds are placed on nonaccrual status when any portion of principal or interest is 90 days past due or on the date after which collectability of principal or interest is not reasonably assured. The Company applies interest payments received on nonaccrual bonds first to accrued interest and then as interest income. Bonds return to accrual status when principal and interest payments become current and future payments are anticipated to be fully collectible. At December 31, 2020, the Company had no bonds that were on nonaccrual status. Proceeds from the sale or repayment of bonds greater or less than their amortized cost (which would include any previously recorded impairment charges) are recorded as realized gains or losses and any previously unrealized gains included in AOCI are reversed. The Company may periodically agree to modify the contractual terms of its investments in debt securities in the interest of attempting to obtain more cash or other value from a debtor than it otherwise would, or to increase the probability of receipt, by granting a concession to a borrower. If the Company makes an economic concession to a borrower that is experiencing financial difficulty, the Company will typically assess a modification or other form of economic concession to represent a troubled debt restructuring (“ TDR Investments in Partnerships The Company’s investments in partnerships that are not required to be consolidated for reporting purposes are accounted for using the equity method as described in FASB ASC Topic 323, “ Equity Method Investments Under the equity method, the Company’s investment in the partnership is recorded at cost and is subsequently adjusted to recognize the Company’s allocable share of the earnings or losses from the partnership. The Company’s allocable share of earnings or losses from the partnership is adjusted for the following: the elimination of any intra-entity profits or losses; the amortization of any basis differences between the Company’s cost and the underlying equity in net assets of the partnership; capital transactions; and other comprehensive income. Dividends received by the Company are recognized as a reduction in the carrying amount of the investment. The Company continues to record its allocable share of losses from the partnership up to the Company’s investment carrying amount, including any additional financial support made or committed to be made to the partnership. The order in which additional equity method losses are applied to other investments in the partnership is based upon the seniority and priority in liquidation of the other investments. The Company ceases recording losses on an investment in partnership when the cumulative losses and distributions from the partnership exceed the carrying amount of the investment and any advances made by the Company, unless: (i) an imminent return to profitable operations by the partnership is assured; (ii) the Company has guaranteed obligations of the partnership, or (iii) the Company has otherwise committed to provide further financial support to the partnership. The Company must periodically assess the appropriateness of the carrying amount of its equity method investments to ensure that the carrying amount of its investment is not other-than-temporarily impaired whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. The Company recognizes impairment-related losses in the Consolidated Statements of Operations as a component of “Impairments.” The Company classifies distributions received from its equity investments as operating activities in our Consolidated Statements of Cash Flows when cumulative equity in earnings is greater than or equal to the cumulative cash distributions. The Company classifies distributions as cash flows from investing activities in our Consolidated Statements of Cash Flows when cumulative equity in earnings is less than cumulative cash distributions. |
Loans Held for Sale and Loans Held for Investment | Loans Loans Held For Sale (“ HFS ”) When we originate loans that we intend to sell, we classify these loans as HFS. We report HFS loans at the lower of cost or fair value. Any excess of an HFS loan’s cost over its fair value is recognized as a valuation allowance, with changes in the valuation allowance recognized as “Other expenses” in our Consolidated Statements of Operations. We recognize interest income on HFS loans on an accrual basis, unless we determine that the ultimate collection of contractual principal or interest payments in full is not reasonably assured. Purchase premiums, discounts and other cost basis adjustments on HFS loans are deferred upon loan acquisition, included in the cost basis of the loan, and not amortized. We determine any lower of cost or fair value adjustment on HFS loans at an individual loan level. In the event that we reclassify HFS loans to loans held for investment, we record the loans at lower of cost or fair value on the date of reclassification. We report any lower of cost or fair value adjustment recognized upon reclassification as a basis adjustment to the held for investment loan. Loans Held for Investment (“ HFI ”) When we recognize loans that we have the ability and the intent to hold for the foreseeable future or until maturity, we classify the loans as HFI. We report HFI loans at the unpaid principal balance, net of unamortized premiums and discounts, unearned income, non-refundable deferred origination fees and costs, and allowance for loan losses. We recognize interest income on HFI loans on an accrual basis using the interest method over the contractual life of the loan, including the amortization of any deferred cost basis adjustments, such as the premium or discount at acquisition, unless we determine that the ultimate collection of contractual principal or interest payments in full is not reasonably assured. The Company recognizes a provision for loan losses in its Consolidated Statements of Operations as a component of “Other expenses.” Allowance for Loan Losses Our allowance for loan losses is a valuation allowance that reflects management’s estimate of probable losses inherent in our lending activities. Quarterly, the Company reviews each loan to assess its overall collectability. For impaired loans, which include non-performing loans as well as loans modified in a TDR, management measures impairment primarily based on the present value of payments expected to be received, discounted at the loans’ original effective contractual interest rates. Impaired loans and TDRs may also be measured based on observable market prices, or for loans that are solely dependent on the collateral for repayment, the estimated fair value of the collateral less costs to sell. If the recorded investment exceeds this amount, a specific allowance is established as a component of the allowance for loan losses unless these are secured loans that are solely dependent on the collateral for repayment, in which case the amount that exceeds the fair value of the collateral is charged off. At December 31, 2020, the Company had no allowance for loan losses recorded. Nonaccrual Loans Loans that are past due 90 days or more as to principal or interest, or where reasonable doubt exists as to timely collection, including loans that are individually identified as being impaired, are generally placed on nonaccrual status unless the loan is well-secured and in the process of collection. Accrued interest receivable is reversed when loans are placed on nonaccrual status, provided collection is not anticipated within 12 months of being placed on nonaccrual status. Interest collections on any nonaccrual loans for which the ultimate collectability of principal is uncertain are applied as principal reductions; otherwise collections are credited to income when received. Loans may be restored to accrual status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. At December 31, 2020, the Company had no nonaccrual loans. Fair Value Option (“ FVO ”) Loans For loans for which the Company has elected the FVO, unearned income, non-refundable origination fees and costs are recognized at inception upon origination of the loan. These assets are subsequently measured on a fair value basis, with changes therein classified in our Consolidated Statements of Operations as a component of “Net gains on loans.” |
Real Estate Owned ("REO") | Real Estate Owned (“REO”) The Company’s REO is generally obtained when a delinquent borrower chooses to transfer a mortgaged property to us in lieu of going through a foreclosure process. The Company classifies REO in the Consolidated Balance Sheets in “Other assets.” REO is subsequently measured for reporting purposes based upon whether the Company has designated REO as HFS or held for use (“ HFU REO is classified as HFS when we intend to sell the property and we are actively marketing property that is available for immediate sale in its current condition and a sale is reasonably expected to take place within one year. REO that we do not classify as HFS is designated as HFU. REO that is designated as HFS is reported in the Consolidated Balance Sheets at the lower of its carrying amount or fair value less estimated selling costs. We recognize a recovery for any subsequent increase in fair value, less estimated costs to sell, up to the cumulative loss previously recognized through the valuation allowance. We do not depreciate REO that is classified as HFS. REO that is designated as HFU is depreciated for reporting purposes and evaluated for impairment when circumstances indicate that the carrying amount of the property is no longer recoverable. An impairment loss is recognized if the carrying amount of the REO is not recoverable and exceeds its fair value. We recognize impairment-related losses in our Consolidated Statements of Operations as a component of “Other expenses.” We recognize gains or losses on sales of REO in our Consolidated Statements of Operations as a component of “Other expenses.” |
Derivative Instruments | Derivative Instruments The Company accounts for all derivative instruments at their fair value unless a given derivative instrument is determined to be exempt from the recognition and measurement requirements of FASB ASC Topic 815, “ Derivatives and Hedging The Company has not designated any of its derivative investments as hedging instruments for accounting purposes. As a result, changes in the fair value of these instruments are reported in our Consolidated Statements of Operations as a component of “Net losses on derivatives.” Derivative assets are classified in our Consolidated Balance Sheets as a component of “Other assets” while derivative liabilities are classified as a component of “Other liabilities.” |
Guarantees | Guarantees With respect to our contingent obligation to perform under a guarantee, we will recognize a liability for probable and estimable losses to the extent that a measured loss exceeds the unamortized balance of our noncontingent obligation to stand ready to perform under our guarantee. The Company recognizes guarantee-related losses in the Consolidated Statements of Operations as a component of “Other expenses” while related liabilities are classified in our Consolidated Balance Sheets as a component of “Other liabilities.” Guarantees provided by the Company in connection with the performance of a consolidated subsidiary are exempt from financial statement recognition, though disclosure of these activities is provided in Note 9, “Guarantees and Collateral.” |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for previously awarded employee stock-based compensation plans as liability classified awards. Compensation expense is based on the fair value of awarded instruments as of the reporting date, adjusted to reflect the vesting schedule. Subsequent compensation expense is determined by changes in the fair value of awarded instruments at subsequent reporting dates, continuing through the settlement date. At December 31, 2020, the Company had no outstanding stock options. The Company accounts for its director stock-based compensation plans as equity classified awards. Compensation expense is based on the fair value of awarded instruments at the grant date. |
Foreign Currency Conversion | Foreign Currency Conversion Assets, liabilities and operations of foreign subsidiaries are recorded based on the functional currency of each entity. For certain of the foreign operations, the functional currency is the local currency, in which case the assets, liabilities and operations are translated, for consolidation purposes, from the local currency to the U.S. dollar reporting currency at period-end rates for assets and liabilities and generally at average rates for results of operations. The resulting unrealized gains or losses are reported as a component of AOCI in our Consolidated Balance Sheets. When assets or liabilities are denominated in a currency other than the entity’s functional currency, the resulting remeasurement gains or losses on foreign currency-denominated assets or liabilities are included in earnings in the Company’s Consolidated Statements of Operations as a component of “Other expenses.” |
Income (Loss) per Common Share | Income (Loss) per Common Share Basic income (loss) per share is computed by dividing net income (loss) to common shareholders by the weighted-average number of common shares issued and outstanding during the period. The numerator used to calculate diluted income (loss) per share includes net income (loss) to common shareholders adjusted to remove the difference in income or loss associated with reporting the dilutive employee share awards classified as liabilities as opposed to equity awards. The denominator used to calculate diluted income (loss) per share includes the weighted-average number of common shares issued and outstanding during the period adjusted to add in common stock equivalents associated with unvested share awards as well as in the money option awards unless they are contingent upon a certain share price that has not yet been achieved. At December 31, 2020, the Company had no outstanding stock options. |
Income Taxes | Income Taxes All of our business activities, with the exception of our foreign investments, are conducted by entities included in our consolidated corporate federal income tax return. ASC Topic No. 740, “Income Taxes,” establishes financial accounting and reporting standards for the effect of income taxes. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current period and DTAs and deferred tax liabilities (“ DTLs effective tax rate calculation assuming that we will be able to realize the full benefit of the credits. Each reporting period, we assess whether DTAs are realizable. These reviews include management’s estimates and assumptions regarding future pretax book income, which also incorporates various tax planning strategies, including strategies that may be available to utilize NOLs before they expire. In connection with these reviews, if it is determined that a DTA is not realizable, a valuation allowance is established. At each reporting period, we evaluate the recoverability of our DTAs, weighing all positive and negative evidence, and are required to establish or maintain a valuation allowance for these assets if we determine that, based on the weight of available evidence, it is more likely than not that some or all of the DTAs will not be realized. The weight given to the evidence is commensurate with the extent to which evidence is objectively verifiable. If negative evidence exists, positive evidence must be present to support a conclusion that a valuation allowance is not necessary. We account for uncertain tax positions using a two-step approach whereby we recognize an income tax benefit if, based on the technical merits of a tax position, it is more likely than not that the tax position would be sustained upon examination by the taxing authority, which includes all related appeals and litigation. We then measure the recognized tax benefit based on the largest amount of tax benefit that is greater than 50% likely to be realized upon settlement with the taxing authority, considering all information available at the reporting date. We establish additional provisions for income taxes when there are certain tax positions that could be challenged and it is more likely than not these positions will not be sustained upon review by taxing authorities. |
New Accounting Guidance | Accounting Guidance Adoption of Accounting Standards Accounting for Financial Instruments In March 2017, the FASB issued Accounting Standards Update (“ 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.” disclosure requirements. We adopted this guidance on its effective date of January 1, 2020. The adoption of this guidance 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. 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. 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).” because the Company is a smaller reporting company the ASU will become effective for the Company on January 1, 2023. We are currently evaluating the potential impact of this new guidance on our consolidated financial statements. Accounting for Financial Instruments – General In March 2020, the FASB issued ASU No. 2020-03, “ Codification Improvements to Financial Instruments.” Accounting for Income Taxes In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” Accounting for Financial Instruments – Rate Reform In January 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform (Topic 848): An Amendment of the FASB Accounting Standards Codification.” discounting transition |
INVESTMENTS IN DEBT SECURITIES
INVESTMENTS IN DEBT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INVESTMENTS IN DEBT SECURITIES [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | At December 31, 2020 Gross Amortized Unrealized FV as a % (in thousands) UPB Cost (1) Gains FV of UPB Infrastructure Bond $ 26,440 $ 20,532 $ 4,209 $ 24,741 94% Multifamily tax-exempt bond 4,000 — 6,297 6,297 157% Total $ 30,440 $ 20,532 $ 10,506 $ 31,038 102% 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 OTTI recognized in “Impairments” in our Consolidated Statements of Operations. |
Gain (Loss) on Investments | For the year ended December 31, (in thousands) 2020 2019 Gains recognized at time of sale or redemption $ — $ 28,606 |
INVESTMENTS IN PARTNERSHIPS (Ta
INVESTMENTS IN PARTNERSHIPS (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, December 31, (in thousands) 2020 2019 Investment in Solar Ventures $ 363,157 $ 289,123 Investments in U.S. real estate partnerships 11,208 19,822 Investment in South Africa Workforce Housing Fund (" SAWHF 1,833 7,732 Total investments in partnerships $ 376,198 $ 316,677 |
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 December 31, December 31, 2020 2019 (in thousands) Total assets (1) $ 831,077 $ 706,792 Other liabilities (2) 4,059 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 year ended December 31, (in thousands) 2020 2019 Gross revenue $ 98,901 $ 55,905 Operating expenses 6,380 6,541 Net income and net income attributable to the entities 93,956 49,443 |
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 December 31, December 31, 2020 2019 (in thousands) Total assets $ 47,632 $ 51,718 Debt 6,644 6,426 Other liabilities 9,612 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 year ended December 31, (in thousands) 2020 2019 Gross revenue $ 12,551 $ 2,575 Operating expenses 2,288 2,133 Net income (loss) and net income (loss) attributable to the entity 5,338 (2,427) |
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 December 31, December 31, 2020 2019 (in thousands) Total assets $ 15,861 $ 56,356 Other liabilities 150 130 The following table provides information about the gross revenue, operating expenses and net income of SAWHF: For the year ended December 31, (in thousands) 2020 2019 Gross revenue $ 1,581 $ 4,130 Operating expenses 928 1,003 Net income and net income attributable to the entity 5,105 781 |
LOANS HELD FOR INVESTMENT ("H_2
LOANS HELD FOR INVESTMENT ("HFI") (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
LOANS HELD FOR INVESTMENT ("HFI") [Abstract] | |
Schedule of loans Held For Investments | At At December 31, December 31, (in thousands) 2020 2019 UPB $ — $ 54,100 Fair value adjustments — — Loans HFI, net $ — $ 54,100 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
OTHER ASSETS [Abstract] | |
Schedule of Other Assets | At At December 31, December 31, (in thousands) 2020 2019 Other assets: Real estate owned $ 15,510 $ 8,397 Debt issue costs 2,004 2,675 Equity investments 2,463 — Derivative assets 61 597 Accrued interest receivable 139 853 Other assets 305 462 Total other assets $ 20,482 $ 12,984 |
Schedule Of Real Estate Owned, Held For Use | At At December 31, December 31, (in thousands) 2020 2019 Land improvements $ 12,891 $ 5,778 Land 2,619 2,619 Total $ 15,510 $ 8,397 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
DEBT [Abstract] | |
Schedule of Debt | At At December 31, 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 $ 2,217 1.5 % $ 2,212 3.2 % Due after one year 90,995 1.5 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 4,206 13.7 6,828 14.7 Due after one year 13,533 5.2 1,500 5.0 Total other debt 214,651 4.0 198,316 4.8 Asset Related Debt Notes Payable and Other Debt Bond related debt (3) Due within one year 242 2.5 — — Due after one year 22,912 2.5 — — Non-bond related debt Due within one year — — 650 5.0 Due after one year — — 2,850 5.0 Total asset related debt 23,154 2.5 3,500 5.0 Total debt $ 237,805 3.8 % $ 201,816 4.8 % (1) The subordinated debt balances include net cost basis adjustments of $6.9 million and $7.4 million at December 31, 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 $0.2 million $0.1 million at December 31, 2020 and December 31, 2019, respectively. (3) Included in Asset Related Debt – notes payable and other debt – bond related debt were unamortized debt issuance costs of $0.1 million at December 31, 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 2021 $ 6,357 2022 128,525 2023 11,336 2024 1,813 2025 3,131 Thereafter 80,066 Net premium and debt issue costs 6,577 Total debt $ 237,805 |
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 $ 25,483 $ 2,113 $ 27,596 Amortizing March 30, 2035 three-month LIBOR plus 2.0% MFH 23,172 1,918 25,090 Amortizing April 30, 2035 three-month LIBOR plus 2.0% MFH 13,357 1,023 14,380 Amortizing July 30, 2035 three-month LIBOR plus 2.0% MFH 24,286 1,860 26,146 Amortizing July 30, 2035 three-month LIBOR plus 2.0% Total $ 86,298 $ 6,914 $ 93,212 (1) The subordinated principal amortizes 2.0% per annum. |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
DERIVATIVE INSTRUMENTS [Abstract] | |
Schedule of the Company's Derivative Assets and Liabilities | Fair Value At At December 31, 2020 December 31, 2019 (in thousands) Assets Liabilities Assets Liabilities Basis swaps $ — $ 542 $ 318 $ — Interest rate caps 61 — 227 — Interest rate swaps — 1,665 52 — Foreign currency forward exchange — 86 — 117 Gain share arrangement (1) — 96 — — Total carrying value of derivative instruments $ 61 $ 2,389 $ 597 $ 117 (1) Refer to Note 6, “Debt” for more information. |
Schedule of Derivative Notional Amounts | Notional Amounts At At December 31, 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 4,494 4,685 Total notional amount of derivative instruments $ 109,494 $ 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 year ended December 31, (in thousands) 2020 2019 Total return swaps (1) $ — $ (42) Basis swaps (2) (854) (270) Interest rate caps (166) (771) Interest rate swaps (3) (1,948) (2,341) Foreign currency forward exchange 89 (299) Gain share arrangement (99) — Total net losses of derivative instruments $ (2,978) $ (3,723) (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 year ended December 31, 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 and $0.2 million for the years ended December 31, 2020 and December 31, 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 $0.2 million for the year ended December 31, 2020, while the net cash received was $0.2 million for the year ended December 31, 2019. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | At December 31, Fair Value Measurements (in thousands) 2020 Level 1 Level 2 Level 3 Assets: Investments in debt securities $ 31,038 $ — $ — $ 31,038 Equity investments 2,463 2,463 — — Derivative instruments 61 — 61 — Liabilities: Derivative instruments $ 2,389 $ — $ 2,389 $ — 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 year ended December 31, 2020: Investments in Debt Loans Held for (in thousands) Securities Investment Balance, January 1, 2020 $ 31,365 $ 500 Net gains included in earnings (1) — 97 Net change in AOCI (2) (62) — Impact from loan originations / advances — 780 Impact from settlements (3) (265) (1,377) Balance, December 31, 2020 $ 31,038 $ — (1) This amount represents $0.1 million of realized gains recognized during this reporting period in connection with the Company’s loan investment that was repaid during 2020. This amount is classified as “Net gains on loans and extinguishment of liabilities” in the Company’s Consolidated Statement of Operations. (2) This amount represents $0.1 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 year ended December 31, 2019: Investments in Debt Derivative Loans Held for (in thousands) Securities Assets Investment Balance, January 1, 2019 $ 97,190 $ 1,130 $ — Net losses included in earnings — (195) — Net change in AOCI (1) (27,057) — — Impact from loan originations — — 500 Impact from sales or redemptions (38,209) — — Impact from settlements (2) (559) (935) — Balance, December 31, 2019 $ 31,365 $ — $ 500 (1) This amount represents the reclassification into the Consolidated Statements of Operations of $28.3 million of net fair value gains related to bonds that were sold or redeemed during this reporting period, partially offset by $1.2 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 year ended December 31, 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 28,606 153 Total net gains (losses) reported in earnings $ 28,606 $ (42) (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 December 31, 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 $ 24,741 Discounted cash flow Market yield 7.1 % N/A Multifamily tax-exempt bond Subordinated cash flow 6,297 Discounted cash flow Market yield 6.9 N/A Capitalization rate 6.4 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 December 31, 2020 Carrying Fair Value (in thousands) Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 28,644 $ 28,644 $ — $ — Restricted cash 17,617 17,617 — — Liabilities: Notes payable and other debt - bond related 23,154 — — 23,267 Notes payable and other debt - non-bond related 17,739 — — 17,552 Revolving credit facility obligations 103,700 — — 103,700 Subordinated debt issued by MFH 93,212 — — 53,204 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) | 12 Months Ended |
Dec. 31, 2020 | |
GUARANTEES AND COLLATERAL [Abstract] | |
Schedule of Financial Instruments Owned and Pledged as Collateral | At December 31, 2020 Investments Total Restricted in Debt Investments in Other Assets (in thousands) Cash Securities Partnerships Assets Pledged Debt related to the revolving credit facility $ 1,502 $ — $ 363,157 $ — $ 364,659 Debt related to TRS agreement 10,020 24,741 — — 34,761 Debt related to the Company's REO 250 — — 15,510 15,760 Debt and derivatives related to the Company's 11.85% ownership interest in SAWHF 1,374 — 1,833 2,463 5,670 Interest rate swaps 4,463 — — — 4,463 Other 8 — — — 8 Total $ 17,617 $ 24,741 $ 364,990 $ 17,973 $ 425,321 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) | 12 Months Ended |
Dec. 31, 2020 | |
EQUITY [Abstract] | |
Summary of Net (Loss) Income to Common Shareholders | For the year ended December 31, (in thousands) 2020 2019 Net income from continuing operations $ 8,374 $ 100,985 Net loss from discontinued operations — (8) Net income $ 8,374 $ 100,977 Basic and diluted weighted-average shares (1) 5,809 5,877 (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 year ended December 31, 2020: Investments Foreign in Debt Currency (in thousands) Securities Translation AOCI Balance, January 1, 2020 $ 7,666 $ (33) $ 7,633 Net unrealized (losses) gains (62) 69 7 Income tax benefit 17 — 17 Net change in AOCI (45) 69 24 Balance, December 31, 2020 $ 7,621 $ 36 $ 7,657 The following table provides information related to the net change in AOCI for the year ended December 31, 2019: Investments Foreign in Debt Currency (in thousands) Securities Translation AOCI Balance, January 1, 2019 $ 37,625 $ 72 $ 37,697 Net unrealized gains (losses) 1,244 (105) 1,139 Reclassification of fair value gains on sold or redeemed bonds into the Consolidated Statements of Operations (28,301) — (28,301) Income tax expense (2,902) — (2,902) Net change in AOCI (29,959) (105) (30,064) Balance, December 31, 2019 $ 7,666 $ (33) $ 7,633 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
STOCK-BASED COMPENSATION [Abstract] | |
Summary of Stock-Based Compensation Expense | For the year ended December 31, (in thousands) 2020 2019 Non-employee Directors’ Stock-Based Compensation Plans $ 835 $ 595 |
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 December 31, 2020 (1) $ 432,500 8,274 7,963 $ 24.79 — $ 835,000 December 31, 2019 297,500 2,222 7,194 31.59 — 595,000 (1) During the first quarter of 2020, the Board approved the addition of two independent directors and during the third quarter of 2020, our former Chief Executive Officer became a non-employee director. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Summary of components of provision for income taxes | For the year ended December 31, (in thousands) 2020 2019 Current income tax expense: Federal $ — $ — State (125) (131) Total current income tax expense (125) (131) Deferred income tax benefit Federal 1,036 46,353 State 318 14,260 Total deferred income tax benefit 1,354 60,613 Total provision benefit for income taxes $ 1,229 $ 60,482 |
Summary of effective income tax reconciliation | For the year ended December 31, (in thousands) 2020 2019 Income from continuing operations before income taxes $ 7,145 $ 40,503 Income tax expense at federal statutory rate (1,500) (8,506) Permanent differences: State income taxes, net of federal tax effect (459) 504 Impact from other comprehensive income 13 3,593 State net operating loss adjustment 1,107 4,373 Other 132 (1,512) Net decrease in the valuation allowance 1,936 62,030 Provision benefit for income taxes $ 1,229 $ 60,482 |
Summary of carrying value of DTAs, net of valuation allowance | At At December 31, December 31, (in thousands) 2020 2019 Deferred tax assets: Net operating loss, tax credits and other tax carryforwards $ 119,626 $ 122,917 Cancellation of subordinated debt 3,209 3,340 Other 1,096 1,715 Gross deferred tax assets 123,931 127,972 Valuation allowance (63,437) (65,373) Total deferred tax assets, net of valuation allowance 60,494 62,599 Deferred tax liabilities: Other, net (1,411) (4,888) Total deferred tax liabilities (1,411) (4,888) Deferred tax assets, net $ 59,083 $ 57,711 |
Summary of changes in valuation allowance | For the year ended December 31, (in thousands) 2020 2019 Balance, January 1 $ 65,373 $ 124,500 Net reductions due to discontinued operations — 2 Net reductions due to continuing operations (1) (1,936) (59,129) Balance, December 31 $ 63,437 $ 65,373 (1) This amount includes $2.9 million of valuation allowance release that is included in AOCI at December 31, 2019. There was no valuation release included in AOCI at December 31, 2020. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Number of securities in unrealized loss position | 0 | ||
Nonaccrual bonds | $ 0 | $ 0 | |
Allowance for loan losses | 0 | ||
Nonaccrual loans | $ 0 | ||
Outstanding, stock options | 0 | ||
ASU 2017-08 | Restatement Adjustment [Member] | |||
Retained earnings | $ (300,000) | ||
VIE | |||
Investments | $ 0 |
INVESTMENTS IN DEBT SECURITIE_2
INVESTMENTS IN DEBT SECURITIES (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security | |
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (Decrease) in Fair Value Of Bonds | $ (300,000) | |
Nonaccrual bonds | 0 | $ 0 |
Proceeds from sale of investments in bonds | 29,300,000 | |
Investments in debt securities | 31,038,000 | 31,365,000 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments in debt securities | 31,038,000 | 31,365,000 |
Unpaid principal balance of bond investments | 30,440,000 | 30,885,000 |
Multifamily Tax-Exempt Bond [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments in debt securities | 6,297,000 | 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 | $ 24,741,000 | $ 25,339,000 |
Unpaid principal balance of bond investments | $ 26,440,000 | $ 26,885,000 |
INVESTMENTS IN DEBT SECURITIE_3
INVESTMENTS IN DEBT SECURITIES (Bonds and Related Unrealized Gains and Losses) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 31,038 | $ 31,365 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unpaid principal balance of bond investments | 30,440 | 30,885 |
Amortized Cost | 20,532 | 20,797 |
Gross Unrealized Gains | 10,506 | 10,568 |
Fair Value | $ 31,038 | $ 31,365 |
FV as a % of UPB | 102.00% | 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 | 6,297 | 6,026 |
Fair Value | $ 6,297 | $ 6,026 |
FV as a % of UPB | 157.00% | 151.00% |
Infrastructure Bond [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unpaid principal balance of bond investments | $ 26,440 | $ 26,885 |
Amortized Cost | 20,532 | 20,797 |
Gross Unrealized Gains | 4,209 | 4,542 |
Fair Value | $ 24,741 | $ 25,339 |
FV as a % of UPB | 94.00% | 94.00% |
INVESTMENTS IN DEBT SECURITIE_4
INVESTMENTS IN DEBT SECURITIES (Realized Gains on Bond Sales and Redemptions) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
INVESTMENTS IN DEBT SECURITIES [Abstract] | ||
Gains recognized at time of sale or redemption | $ 28,606 |
INVESTMENTS IN PARTNERSHIPS (Na
INVESTMENTS IN PARTNERSHIPS (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | Mar. 10, 2021 | Sep. 30, 2020 | Jun. 01, 2018 | Mar. 31, 2021 | Mar. 24, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 02, 2021 | Jan. 12, 2021 |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Carrying value of equity investments | $ 376,198 | $ 376,198 | $ 316,677 | ||||||||
Purchase price paid | $ 5,100 | ||||||||||
Distributions received from investments in partnerships | 36,026 | 17,324 | |||||||||
Impairment losses, other than temporary | 3,700 | $ 9,000 | 0 | ||||||||
Additional advance amount | 112,499 | 108,000 | |||||||||
Loan proceeds | 0 | 0 | 54,100 | ||||||||
Carrying value of Loan receivable | 0 | 0 | 54,100 | ||||||||
Loans held for investment, fair value | 500 | ||||||||||
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 | $ 127,000 | ||||||||||
U.S. Real Estate Partnerships [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Carrying value of equity investments | 11,208 | 11,208 | 19,822 | ||||||||
Impairment losses, other than temporary | 12,700 | ||||||||||
U.S. Real Estate Partnerships formed in Q4 2014[Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Carrying value of equity investments | $ 11,200 | $ 11,200 | |||||||||
Equity method investment, ownership percentage | 80.00% | 80.00% | |||||||||
Equity method investment, economic interest percentage | 76.30% | 76.30% | |||||||||
Solar Ventures Investment [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Carrying value of equity investments | $ 363,157 | $ 363,157 | 289,123 | ||||||||
Cumulative basis adjustment | $ 4,500 | $ 2,200 | 2,200 | 3,100 | |||||||
Amortization expense of basis difference | $ 900 | $ 900 | |||||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | |||||||||
Unfunded loan commitments to borrowers | $ 114,700 | $ 114,700 | |||||||||
Solar Ventures Investment [Member] | Solar Ventures [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Unfunded loan commitments to borrowers | 261,700 | 261,700 | |||||||||
Solar Construction Lending LLC [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Carrying value of equity investments | $ 96,200 | $ 96,200 | |||||||||
Equity method investment, economic interest percentage | 45.20% | 45.20% | 42.00% | ||||||||
Solar Construction Lending LLC [Member] | Subsequent Event [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Equity method investment, ownership percentage | 38.40% | ||||||||||
Distributions received from investments in partnerships | $ 25,000 | ||||||||||
Solar Construction Lending LLC [Member] | Subsequent Event [Member] | Capital Partner | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Capital contribution amount for partnership | 10,000 | ||||||||||
Distributions received from investments in partnerships | 13,000 | ||||||||||
Solar Permanent Lending LLC [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Carrying value of equity investments | $ 80,400 | $ 80,400 | |||||||||
Equity method investment, economic interest percentage | 45.00% | 45.00% | 50.00% | ||||||||
Solar Development Lending, LLC [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Carrying value of equity investments | $ 186,600 | $ 186,600 | |||||||||
Equity method investment, economic interest percentage | 42.30% | 42.30% | 41.50% | ||||||||
Solar Development Lending, LLC [Member] | Subsequent Event [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Capital contribution amount for partnership | $ 25,000 | ||||||||||
Equity method investment, ownership percentage | 37.30% | ||||||||||
Solar Development Lending, LLC [Member] | Subsequent Event [Member] | Capital Partner | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Capital contribution amount for partnership | $ 102,000 | ||||||||||
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% | 100.00% | ||||||||
SAWHF | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Carrying value of equity investments | $ 1,833 | $ 1,833 | $ 7,732 | ||||||||
Equity method investment, ownership percentage | 11.85% | 11.85% | |||||||||
Equity method investment increase (decrease) in carrying value | $ (5,900) | ||||||||||
Equity method investment share distribution shares | 7.2 | ||||||||||
ERCOT Project 1 | Solar Ventures [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Loan commitment exposure | $ 110,500 | ||||||||||
ERCOT Project 1 | Construction and Mezzanine Loan [Member] | Solar Ventures [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Percentage of UPB on loan portfolio | 39.60% | ||||||||||
UPB receivable | 295,500 | $ 295,500 | |||||||||
ERCOT Project 1 | Sponsor Equity Loan [Member] | Solar Ventures [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Percentage of UPB on loan portfolio | 25.30% | ||||||||||
ERCOT Project 1 | Subsequent Event [Member] | Solar Permanent Lending LLC [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Net settlement cost | $ 25,500 | ||||||||||
Cash pledged by project | 3,000 | ||||||||||
ERCOT Project 1 | Solar Permanent Lending LLC [Member] | Sponsor Equity Loan [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Loan | 177,500 | $ 177,500 | |||||||||
ERCOT Project 1 | Solar Permanent Lending LLC [Member] | Subsequent Event [Member] | Capital Partner | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Remaining payment obligation amount | $ 22,500 | ||||||||||
ERCOT Project 2 | Solar Construction Lending LLC [Member] | Forecast | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Mezzanine loan facility, maximum | $ 9,000 | ||||||||||
ERCOT Project 2 | Development and Mezzanine Loan Receivable [Member] | Solar Ventures [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
UPB receivable | 44,700 | 44,700 | |||||||||
ERCOT Project 2 | Subsequent Event [Member] | Solar Construction Lending LLC and Solar Development Lending LLC [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
UPB receivable | 44,700 | ||||||||||
ERCOT Project 2 | Subsequent Event [Member] | Solar Development Lending, LLC [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Capitalization of interest and fees | 7,600 | ||||||||||
Foregone interest and fees recover amount | 4,000 | ||||||||||
ERCOT Project 2 | Subsequent Event [Member] | Bridge Construction Loan [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Loan proceeds | 30,200 | ||||||||||
Carrying value of Loan receivable | $ 30,200 | ||||||||||
ERCOT Project 2 | Solar Ventures Investment [Member] | Forecast | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Reductions in net income per share | $ 4 | ||||||||||
Potential losses related to loans through equity investment | $ 23,300 | ||||||||||
Two Renewable Energy Projects located in the Ercot Service Area [Member] | Solar Ventures Investment [Member] | Solar Ventures [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
UPB receivable | 214,300 | 214,300 | |||||||||
ERCOT Project 3 | Development and Mezzanine Loan Receivable [Member] | Solar Ventures [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
UPB receivable | $ 169,600 | $ 169,600 | |||||||||
ERCOT Project 3 | Subsequent Event [Member] | Solar Development Lending, LLC [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Loan proceeds | 80,100 | ||||||||||
Carrying value of Loan receivable | $ 80,100 | ||||||||||
ERCOT Project 3 Loans In Default | Subsequent Event [Member] | Solar Development Lending, LLC [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
UPB receivable | $ 160,300 | ||||||||||
Loans held for investment, fair value | $ 168,400 |
INVESTMENTS IN PARTNERSHIPS (Sc
INVESTMENTS IN PARTNERSHIPS (Schedule of Real Estate Investment Partnerships) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Total investments in partnerships | $ 376,198 | $ 316,677 |
Solar Ventures Investment [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investments in partnerships | 363,157 | 289,123 |
U.S. Real Estate Partnerships [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investments in partnerships | 11,208 | 19,822 |
SAWHF | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investments in partnerships | $ 1,833 | $ 7,732 |
INVESTMENTS IN PARTNERSHIPS (_2
INVESTMENTS IN PARTNERSHIPS (Schedule of Balance Sheet Accounts Related to Equity Method Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Total assets | $ 533,062 | $ 485,642 |
Debt | 237,805 | 201,816 |
Other liabilities | 2,528 | 174 |
Solar Ventures Investment [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total assets | 831,077 | 706,792 |
Other liabilities | 4,059 | 22,135 |
U.S. Real Estate Partnerships [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total assets | 47,632 | 51,718 |
Debt | 6,644 | 6,426 |
Other liabilities | 9,612 | 20,493 |
SAWHF | ||
Schedule of Equity Method Investments [Line Items] | ||
Total assets | 15,861 | 56,356 |
Other liabilities | $ 150 | $ 130 |
INVESTMENTS IN PARTNERSHIPS (_3
INVESTMENTS IN PARTNERSHIPS (Schedule of Income (Loss) in Earnings of Unconsolidated Venture) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||
Operating expenses | $ 34,488 | $ 17,031 |
Net income (loss) | 8,374 | 100,977 |
U.S. Real Estate Partnerships [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Gross revenue | 12,551 | 2,575 |
Operating expenses | 2,288 | 2,133 |
Net income (loss) | 5,338 | (2,427) |
Solar Ventures Investment [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Gross revenue | 98,901 | 55,905 |
Operating expenses | 6,380 | 6,541 |
Net income (loss) | 93,956 | 49,443 |
SAWHF | ||
Schedule of Equity Method Investments [Line Items] | ||
Gross revenue | 1,581 | 4,130 |
Operating expenses | 928 | 1,003 |
Net income (loss) | $ 5,105 | $ 781 |
LOANS HELD FOR INVESTMENT ("H_3
LOANS HELD FOR INVESTMENT ("HFI") (Narrative) (Details) | Jan. 03, 2020USD ($) | Mar. 24, 2021 | Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan |
Number of loans held for investment | 0 | 2 | ||
UPB | $ 0 | $ 54,100,000 | ||
Financing receivable UPB and fair value | $ 54,100,000 | |||
Number of loans in nonaccrual status and with principal and interest payments past due but still accruing | loan | 0 | |||
Repayment of hunt notes | $ 53,600,000 | |||
Unfunded loan commitments | 0 | $ 1,600,000 | ||
Carrying value of Loan receivable | $ 0 | 54,100,000 | ||
Finance Receivable Fair Value Option Elected [Member] | ||||
Financing receivable UPB and fair value | $ 500,000 | |||
Solar Development Lending, LLC [Member] | Subsequent Event [Member] | ||||
Equity method investment, ownership percentage | 37.30% |
LOANS HELD FOR INVESTMENT ("H_4
LOANS HELD FOR INVESTMENT ("HFI") (Composition of Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
LOANS HELD FOR INVESTMENT ("HFI") [Abstract] | ||
UPB | $ 0 | $ 54,100 |
Fair value adjustments | 0 | 0 |
Financing Receivable, Net | $ 0 | $ 54,100 |
LOANS HELD FOR INVESTMENT ("H_5
LOANS HELD FOR INVESTMENT ("HFI") (Loan Aging Analysis) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
LOANS HELD FOR INVESTMENT ("HFI") [Abstract] | ||
Loans Receivable, Net | $ 0 | $ 54,100 |
Loans Receivable, Net, Unpaid Principal Balance | $ 0 | $ 54,100 |
OTHER ASSETS (Narrative) (Detai
OTHER ASSETS (Narrative) (Details) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | May 22, 2020 | Mar. 31, 2020 | Sep. 19, 2019 | |
Derivative assets | $ 61 | $ 597 | |||
Derivative assets | 61 | 597 | |||
Debt issue costs | 2,004 | 2,675 | |||
Interest expense, debt | 8,954 | 5,774 | |||
Impairment losses recognized | 0 | 0 | |||
SAWHF | |||||
Equity investment distribution fair value | 2,500 | $ 2,900 | |||
Equity investment distribution shares received | 7.2 | ||||
Gain (losses) on equity investments | 900 | ||||
Revolving Credit Facility [Member] | |||||
Debt issuance costs, gross | 2,900 | $ 500 | |||
Interest expense, debt | 5,800 | 1,200 | |||
Unamortized debt issue costs | $ 2,000 | 2,700 | |||
Debt instrument, term | 3 years | ||||
Borrowing capacity | 175,000 | ||||
Amortization expense | $ 1,100 | 200 | |||
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 | $ 7,100 | ||||
Depreciation | 0 | $ 0 | |||
Property, Plant and Equipment, Additions | $ 7,100 |
OTHER ASSETS (Summary of Other
OTHER ASSETS (Summary of Other Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other assets: | ||
Real estate owned | $ 15,510 | $ 8,397 |
Debt issue costs | 2,004 | 2,675 |
Equity investments | 2,463 | 0 |
Derivative assets | 61 | 597 |
Accrued interest receivable | 139 | 853 |
Other assets | 305 | 462 |
Other Assets, Total | $ 20,482 | $ 12,984 |
OTHER ASSETS (REO held for use,
OTHER ASSETS (REO held for use, net) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Real estate held for use, net | $ 15,510 | $ 8,397 |
Land | ||
Real estate held for use, net | 2,619 | 2,619 |
Land improvements | ||
Real estate held for use, net | $ 12,891 | $ 5,778 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) | Jun. 01, 2020USD ($)item | Dec. 31, 2020USD ($)installment | Dec. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Sep. 19, 2019USD ($) |
Debt Instrument [Line Items] | |||||
Effective interest rate | 3.80% | 4.80% | |||
Carrying Value | $ 237,805,000 | $ 201,816,000 | |||
Letters of credit outstanding | 0 | 0 | |||
Interest expense, debt | 8,954,000 | 5,774,000 | |||
Derivative, notional amount | $ 109,494,000 | $ 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% | 4.80% | |||
Carrying Value | $ 214,651,000 | $ 198,316,000 | |||
Construction Loan [Member[ | |||||
Debt Instrument [Line Items] | |||||
Carrying Value | 9,400,000 | ||||
Principal amount of debt | $ 9,500,000 | ||||
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% | ||||
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 | 14.10% | ||||
Carrying Value | $ 4,000,000 | ||||
Ownership interest (as a percent) | 11.85% | ||||
Principal amount of debt | $ 4,100,000 | ||||
Bond Related Notes Payable and Other Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Underlying bond notional amount | $ 26,400,000 | ||||
Underlying Bond Interest Rate | 6.30% | ||||
Long-term Debt, Gross | $ 23,300,000 | ||||
Fixed spread (as a percent) | 2.00% | ||||
Debt instrument floor interest rate | $ 0.5 | ||||
Percentage that represents cash collateral of referenced bonds | 37.50% | ||||
Debt instrument average interest rate | 2.50% | ||||
Cash collateral for agreement | $ 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% | ||||
Principal amount of debt | $ 4,300,000 | ||||
Notes Payable | 4,300,000 | ||||
Bond Related Notes Payable and Other Debt [Member] | Morrison Grove Management LLC [Member] | Debt Obligations Mature In 2026 | |||||
Debt Instrument [Line Items] | |||||
Notes Payable | 2,800,000 | ||||
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 | ||||
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% | ||||
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) | 3.50% | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 5.60% | ||||
Carrying Value | $ 103,700,000 | ||||
Fixed spread (as a percent) | 2.75% | ||||
Principal amount of debt | $ 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 | $ 5,800,000 | $ 1,200,000 | |||
Debt instrument base rate plus fixed spread percentage rate | 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 ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Debt, Carrying Value | $ 237,805,000 | $ 201,816,000 |
Debt Instrument, Interest Rate, Effective Percentage | 3.80% | 4.80% |
Debt issuance costs, net | $ 2,004,000 | $ 2,675,000 |
Asset Related Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Carrying Value | $ 23,154,000 | $ 3,500,000 |
Debt Instrument, Interest Rate, Effective Percentage | 2.50% | 5.00% |
Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Carrying Value | $ 214,651,000 | $ 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 | $ 4,206,000 | $ 6,828,000 |
Debt, Due after one year | $ 13,533,000 | $ 1,500,000 |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 13.70% | 14.70% |
Debt Instrument, Interest Rate, Effective Percentage, Noncurrent Portion | 5.20% | 5.00% |
Debt issuance costs, net | $ 200,000 | $ 100,000 |
Bond Related Notes Payable and Other Debt [Member] | Asset Related Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | 242,000 | 0 |
Debt, Due after one year | $ 22,912,000 | 0 |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 2.50% | |
Debt Instrument, Interest Rate, Effective Percentage, Noncurrent Portion | 2.50% | |
Unamortized debt issue costs | $ 100,000 | |
Subordinated Loan [Member] | ||
Debt Instrument [Line Items] | ||
Net Premium and Debt Issuance Costs | 6,900,000 | 7,400,000 |
Subordinated Loan [Member] | Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | 2,217,000 | 2,212,000 |
Debt, Due after one year | $ 90,995,000 | $ 93,276,000 |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 1.50% | 3.20% |
Debt Instrument, Interest Rate, Effective Percentage, Noncurrent Portion | 1.50% | 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 | $ 2,000,000 | $ 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 | Dec. 31, 2020 | Dec. 31, 2019 |
DEBT [Abstract] | ||
2021 | $ 6,357 | |
2022 | 128,525 | |
2023 | 11,336 | |
2024 | 1,813 | |
2025 | 3,131 | |
Thereafter | 80,066 | |
Net premium and debt issue costs | (6,577) | |
Total | $ 237,805 | $ 201,816 |
DEBT (Subordinate Debt) (Detail
DEBT (Subordinate Debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Net premium and debt issue costs | $ 6,577 | |
Carrying Value | $ 237,805 | $ 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 | $ 86,298 | |
Net premium and debt issue costs | 6,914 | |
Carrying Value | 93,212 | |
Subordinated Loan [Member] | MFH Issue 1 [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | 25,483 | |
Net premium and debt issue costs | 2,113 | |
Carrying Value | $ 27,596 | |
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 | $ 23,172 | |
Net premium and debt issue costs | 1,918 | |
Carrying Value | $ 25,090 | |
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 | $ 13,357 | |
Net premium and debt issue costs | 1,023 | |
Carrying Value | $ 14,380 | |
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 | $ 24,286 | |
Net premium and debt issue costs | 1,860 | |
Carrying Value | $ 26,146 | |
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 | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | $ 61 | $ 597 |
Derivative Liability | 2,389 | 117 |
Basis Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 0 | 318 |
Derivative Liability | 542 | 0 |
Interest rate cap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 61 | 227 |
Derivative Liability | 0 | 0 |
Interest rate swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 0 | 52 |
Derivative Liability | 1,665 | 0 |
Foreign Exchange Forward [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 86 | 117 |
Gain Share Arrangement [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | $ 96 | $ 0 |
DERIVATIVE INSTRUMENTS (Sched_2
DERIVATIVE INSTRUMENTS (Schedule of Derivative Notional Amounts) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total notional amount of derivative instruments | $ 109,494 | $ 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 | $ 4,494 | $ 4,685 |
DERIVATIVE INSTRUMENTS (Summary
DERIVATIVE INSTRUMENTS (Summary of Derivative Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains of derivative instruments | $ (2,978) | $ (3,723) |
Total Return Swap [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains of derivative instruments | 0 | (42) |
Net proceeds from derivative instrument | 200 | |
Basis Swap [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains of derivative instruments | (854) | (270) |
Net proceeds from derivative instrument | 100 | 200 |
Interest rate cap [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains of derivative instruments | (166) | (771) |
Interest rate swap [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains of derivative instruments | (1,948) | (2,341) |
Net proceeds from derivative instrument | 200 | |
Payments For Proceeds From Derivative Instrument Operating Activities | 200 | |
Foreign Exchange Forward [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains of derivative instruments | 89 | (299) |
Gain Share Arrangement [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains of derivative instruments | $ (99) | $ 0 |
FAIR VALUE (Narrative) (Details
FAIR VALUE (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Impairment losses, other than temporary | $ 3,700,000 | $ 9,000,000 | $ 0 |
Subordinated Debt Obligations [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term Debt, Fair Value | 53,200,000 | ||
Minimum [Member] | Subordinated Debt Obligations [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Subordinated debt obligation | 43,500,000 | ||
Maximum [Member] | Subordinated Debt Obligations [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Subordinated debt obligation | $ 66,300,000 | ||
Measurement Input, Discount Rate [Member] | Subordinated Debt Obligations [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Subordinated debt measurement input | 8.4 | 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 | 5.9 | ||
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 | 10.9 |
FAIR VALUE (Fair Value of Asset
FAIR VALUE (Fair Value of Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Fair value of bond investments | $ 31,038 | $ 31,365 |
Loans held for investment | 500 | |
Equity investments | 2,463 | |
Derivative assets | 61 | 597 |
Liabilities: | ||
Derivative liabilities | 2,389 | 117 |
Level 1 [Member] | ||
Assets: | ||
Fair value of bond investments | 0 | 0 |
Loans held for investment | 0 | |
Equity investments | 2,463 | |
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 | |
Equity investments | 0 | |
Derivative assets | 61 | 597 |
Liabilities: | ||
Derivative liabilities | 2,389 | 117 |
Level 3 [Member] | ||
Assets: | ||
Fair value of bond investments | 31,038 | 31,365 |
Loans held for investment | 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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 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 | $ 28,301 | ||
Net unrealized gains (losses) arising during the period | (62) | 1,244 | |
Net gains on loans and extinguishment of liabilities | 97 | 459 | |
Net losses on derivatives | 2,978 | 3,723 | |
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 | ||
Impact from loan originations / advances | 500 | ||
Balance at end of period | 500 | ||
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 | 100 | ||
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 | 31,365 | 97,190 | |
Net (losses) gain included in earnings | 0 | 0 | |
Net change in AOCI (1) | (62) | (27,057) | |
Impact from loan originations / advances | 0 | 0 | |
Impacts from sales/redemptions | (38,209) | ||
Impacts from settlements | (265) | (559) | |
Balance at end of period | 31,038 | 31,365 | |
Reclassification of net fair value gains on sold/redeemed bonds | 28,300 | ||
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 | 500 | ||
Net (losses) gain included in earnings | 97 | ||
Net change in AOCI (1) | 0 | ||
Impact from loan originations / advances | 780 | ||
Impacts from settlements | (1,377) | ||
Balance at end of period | 0 | 500 | |
Net gains on loans and extinguishment of liabilities | 100 | ||
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 | $ 0 | 1,130 | |
Net (losses) gains included in earnings | (195) | ||
Net change in AOCI | 0 | ||
Impact from loan originations / advances | 0 | ||
Impact from sales/redemptions | 0 | ||
Impact from settlements | (935) | ||
Balance at ending period | $ 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) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
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 | 28,606 |
Total net (losses) gains reported in earnings | 28,606 |
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 | 153 |
Total net (losses) gains reported in earnings | $ (42) |
FAIR VALUE (Fair Value Measurem
FAIR VALUE (Fair Value Measurements By Level 3 Valuation Technique) (Details) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investments in debt securities | $ 31,038,000 | $ 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 | $ 6,297,000 | $ 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 | 6.9 | 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 | $ 24,741,000 | $ 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 | 7.1 | 7 |
Loans Held for Investment | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value, asset | $ 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 | 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 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Loans held for investment | $ 500 | |
Level 1 [Member] | ||
Assets: | ||
Loans held for investment | 0 | |
Level 1 [Member] | Fair Value, Nonrecurring [Member] | ||
Assets: | ||
Cash and cash equivalents | $ 28,644 | 8,555 |
Restricted cash | 17,617 | 4,250 |
Loans held for investment | 0 | |
Liabilities: | ||
Revolving credit facility obligations | 0 | |
Level 2 [Member] | ||
Assets: | ||
Loans held for investment | 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 | 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 | 17,552 | 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 | 23,267 | |
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 | 53,204 | 46,934 |
Reported Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 28,644 | 8,555 |
Restricted cash | 17,617 | 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 | 17,739 | 11,828 |
Reported Value Measurement [Member] | Notes Payable and Bond-Related Debt [Member] | ||
Liabilities: | ||
Notes payable and other debt | 23,154 | |
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 | $ 93,212 | $ 95,488 |
GUARANTEES AND COLLATERAL (Coll
GUARANTEES AND COLLATERAL (Collateral and Restricted Assets) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | $ 17,617,000 | $ 4,250,000 |
Bonds Available-for-Sale | 24,741,000 | 0 |
Investments in partnerships | 364,990,000 | 296,855,000 |
Other Assets | 17,973,000 | |
Total Assets Pledged | 425,321,000 | 301,105,000 |
Interest rate swap [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | 4,463,000 | 1,803,000 |
Bonds Available-for-Sale | 0 | |
Investments in partnerships | 0 | 0 |
Other Assets | 0 | |
Total Assets Pledged | 4,463,000 | 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 | 1,833,000 | 7,732,000 |
Other Assets | 2,463,000 | |
Total Assets Pledged | $ 5,670,000 | $ 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 | 24,741,000 | |
Investments in partnerships | 0 | |
Other Assets | 0 | |
Total Assets Pledged | 34,761,000 | |
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 | 15,510,000 | |
Total Assets Pledged | 15,760,000 | |
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 | 1,502,000 | 1,070,000 |
Bonds Available-for-Sale | 0 | |
Investments in partnerships | 363,157,000 | 289,123,000 |
Other Assets | 0 | |
Total Assets Pledged | $ 364,659,000 | $ 290,193,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | Feb. 11, 2021 | Dec. 31, 2020 |
Future rental commitments | $ 0 | |
Deferred tax assets recognized and released | $ 2,900 | |
Subsequent Event [Member] | ||
Loss contingency, damages sought, value | $ 1,800 |
EQUITY (Narrative) (Details)
EQUITY (Narrative) (Details) | Mar. 11, 2020shares | Dec. 31, 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 | 5,708,920 | 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 | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
EQUITY [Abstract] | ||
Net income from continuing operations | $ 8,374 | $ 100,985 |
Net income (loss) from discontinued operations | (8) | |
Net income | $ 8,374 | $ 100,977 |
Basic and diluted weighted-average shares | 5,809 | 5,877 |
EQUITY (Schedule of Accumulated
EQUITY (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Balance | $ 281,125 | $ 212,910 |
Other Comprehensive Income (Loss), before Tax Period Change [Abstract] | ||
Net change AOCI | 24 | (30,064) |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Income tax benefit (expense) | 17 | (2,902) |
Balance | 289,884 | 281,125 |
AOCI | ||
Balance | 7,633 | 37,697 |
Other Comprehensive Income (Loss), before Tax Period Change [Abstract] | ||
Net unrealized gains (losses), before tax | 7 | 1,139 |
Reclassification of fair value gains on sold or redeemed bonds into the Consolidated Statements of Operations | 28,301 | |
Net change AOCI | 24 | (30,064) |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Income tax benefit (expense) | 17 | (2,902) |
Balance | 7,657 | 7,633 |
Investments in Debt Securities [Member] | ||
Balance | 7,666 | 37,625 |
Other Comprehensive Income (Loss), before Tax Period Change [Abstract] | ||
Net unrealized gains (losses), before tax | (62) | 1,244 |
Reclassification of fair value gains on sold or redeemed bonds into the Consolidated Statements of Operations | 28,301 | |
Net change AOCI | (45) | (29,959) |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Income tax benefit (expense) | 17 | (2,902) |
Balance | 7,621 | 7,666 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Balance | (33) | 72 |
Other Comprehensive Income (Loss), before Tax Period Change [Abstract] | ||
Net unrealized gains (losses), before tax | 69 | (105) |
Net change AOCI | 69 | (105) |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Balance | $ 36 | $ (33) |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) | 12 Months Ended |
Dec. 31, 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 | 365,369 |
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 | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Non-employee Directors' Stock-Based Compensation Plans [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Compensation expense | $ 835 | $ 595 |
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 | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-employee director compensation, cash | $ 432,500 | $ 297,500 |
Weighted - average Grant Date Share Price | $ 24.79 | $ 31.59 |
Options Vested | 0 | 0 |
Directors' Fees Expense | $ 835,000 | $ 595,000 |
Common Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted | 8,274 | 2,222 |
Deferred Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted | 7,963 | 7,194 |
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 | Dec. 31, 2020 | Dec. 31, 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 | |||||||
Notes receivable | $ 57,000,000 | |||||||
Interest rate for note | 5.00% | |||||||
HFS loan acquired by Hunt | $ 54,100,000 | $ 0 | $ 54,100,000 | |||||
Termination fee payable upon termination of Management Agreement | 0 | |||||||
External management fees and reimbursable expenses | $ 8,260,000 | 7,248,000 | ||||||
Term of note receivable | 7 years | |||||||
Equity Method Investments | 316,677,000 | $ 376,198,000 | 316,677,000 | |||||
Reimbursement of compensation related expenses shareholders equity benchmark amount | 500,000,000 | |||||||
Financing Receivable, Net, Unpaid Principal Balance | 54,100,000 | 0 | 54,100,000 | |||||
Carrying value of Loan receivable | 54,100,000 | 0 | 54,100,000 | |||||
Investments in partnerships (includes $364,990 and $296,855 pledged as collateral at December 31, 2020 and 2019, respectively) | 316,677,000 | 376,198,000 | 316,677,000 | |||||
Proceeds from the sale of real estate and other investments | 0 | 2,080,000 | ||||||
External Management Fees and Expenses Reimbursement | Hunt Companies [Member] | ||||||||
External management fees and reimbursable expenses | 8,300,000 | 7,200,000 | ||||||
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 | 3,300,000 | |||||||
Interest Receivable | 700,000 | 700,000 | ||||||
Financing Receivable, Net, Unpaid Principal Balance | $ 1,100,000 | |||||||
Carrying value of Loan receivable | 300,000 | |||||||
Investments in partnerships (includes $364,990 and $296,855 pledged as collateral at December 31, 2020 and 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 | ||||||
Hunt Companies [Member] | External Management Fees and Expenses Reimbursement | External Manager [Member] | ||||||||
Management fees and expense reimbursements payable | $ 1,200,000 | $ 1,200,000 | $ 1,200,000 | |||||
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% |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Dec. 31, 2020 | |
Deferred tax assets | $ 57.7 | $ 1.4 |
Federal NOLs | $ 210.2 | 215.2 |
Corporate tax rate (as percentage) | 21.00% | |
State tax rate | 6.46% | |
Pre-tax federal NOLs | $ 374.9 | $ 358.9 |
Beginning expiration date for pre-tax federal NOLs | Jan. 1, 2028 | |
Uncertain tax positions | 0 | $ 0 |
Federal NOLs projected to expire | 143.8 | |
DTA at measurement date | 59.1 | |
Other Assets [Member] | ||
Income taxes receivable, current | $ 0.1 | $ 0.1 |
INCOME TAXES (Provision for inc
INCOME TAXES (Provision for income taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes | ||
State income tax (expense), Current | $ (125) | $ (131) |
Total current income tax expense | (125) | (131) |
Federal income tax benefit, Deferred | 1,036 | 46,353 |
State income tax benefit, Deferred | 318 | 14,260 |
Total deferred income tax benefit | 1,354 | 60,613 |
Total provision benefit for income taxes | $ 1,229 | $ 60,482 |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of income taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes | ||
Income from continuing operations before income taxes | $ 7,145 | $ 40,503 |
Income tax expense at federal statutory rate | (1,500) | (8,506) |
Permanent differences: | ||
State income taxes, net of federal tax effect | (459) | 504 |
Impact from other comprehensive income | 13 | 3,593 |
State net operating loss adjustment | 1,107 | 4,373 |
Other | 132 | (1,512) |
Net decrease in the valuation allowance | 1,936 | 62,030 |
Total provision benefit for income taxes | $ 1,229 | $ 60,482 |
INCOME TAXES (Carrying value of
INCOME TAXES (Carrying value of DTAs) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | |||
Net operating loss, tax credits and other tax carryforwards | $ 119,626 | $ 122,917 | |
Cancellation of subordinated debt | 3,209 | 3,340 | |
Other | 1,096 | 1,715 | |
Gross deferred tax assets | 123,931 | 127,972 | |
Valuation allowance | (63,437) | (65,373) | $ (124,500) |
Total deferred tax assets, net of valuation allowance | 60,494 | 62,599 | |
Deferred tax liabilities: | |||
Other, net | (1,411) | (4,888) | |
Total deferred tax liabilities | (1,411) | (4,888) | |
Deferred tax assets, net | $ 59,083 | $ 57,711 |
INCOME TAXES (Change in the val
INCOME TAXES (Change in the valuation allowance) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes | ||
Balance at beginning | $ 65,373 | $ 124,500 |
Net reductions due to discontinued operations | 2 | |
Net reductions due to continuing operations | (1,936) | (59,129) |
Balance at ending | 63,437 | 65,373 |
Valuation allowance released into AOCI | $ 0 | $ 2,900 |
SEGMENT INFORMATION (Narrative)
SEGMENT INFORMATION (Narrative) (Details) - segment | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
SEGMENT INFORMATION [Abstract] | ||
Number of reportable segments | 1 | 1 |