Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 07, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | NEW YORK MORTGAGE TRUST INC | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 111,854,023 | |
Amendment Flag | false | |
Entity Central Index Key | 1,273,685 | |
Entity Filer Category | Large Accelerated Filer | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
ASSETS | |||
Investment securities, available for sale, at fair value (including $46,623 and $43,897 held in securitization trusts as of September 30, 2017 and December 31, 2016, respectively, and pledged securities of $493,632 and $690,592, as of September 30, 2017 and December 31, 2016, respectively) | $ 674,161 | $ 818,976 | |
Multi-family loans held in securitization trusts, at fair value | 8,399,334 | 6,939,844 | |
Derivative assets | 182,115 | 150,296 | |
Receivable for securities sold | 1,261 | 0 | |
Cash and cash equivalents | 101,904 | 83,554 | |
Investment in unconsolidated entities | 51,268 | 79,259 | |
Mezzanine loan and preferred equity investments | 122,578 | 100,150 | |
Real estate held for sale in consolidated variable interest entities | 64,097 | 0 | |
Goodwill | 25,222 | 25,222 | |
Receivables and other assets | 123,944 | 138,323 | |
Total Assets | [1] | 10,264,922 | 8,951,631 |
Liabilities: | |||
Financing arrangements | 608,304 | 773,142 | |
Securitized debt | 98,371 | 158,867 | |
Mortgages and notes payable in consolidated variable interest entities | 57,342 | 1,588 | |
Derivative liabilities | 467 | 498 | |
Payable for securities purchased | 181,718 | 148,015 | |
Accrued expenses and other liabilities | 71,394 | 64,381 | |
Subordinated debentures | 45,000 | 45,000 | |
Convertible notes | 128,273 | 0 | |
Total Liabilities | [1] | 9,418,917 | 8,100,469 |
Commitments and Contingencies | |||
Stockholders' Equity: | |||
Common stock, $0.01 par value, 400,000,000 shares authorized, 111,854,023 and 111,474,521 shares issued and outstanding as of September 30, and December 31, 2016, respectively | 1,119 | 1,115 | |
Additional paid-in capital | 750,438 | 748,599 | |
Accumulated other comprehensive income | 9,203 | 1,639 | |
Accumulated deficit | (77,966) | (62,537) | |
Company's stockholders' equity | 842,053 | 848,075 | |
Non-controlling interest in consolidated variable interest entities | 3,952 | 3,087 | |
Total equity | 846,005 | 851,162 | |
Total Liabilities and Stockholders' Equity | 10,264,922 | 8,951,631 | |
Assets of consolidated VIEs | 8,799,352 | 7,330,872 | |
Liabilities of consolidated VIEs | 8,255,541 | 6,902,536 | |
Series B Preferred Stock | |||
Stockholders' Equity: | |||
Preferred stock | 72,397 | 72,397 | |
Series C Preferred Stock | |||
Stockholders' Equity: | |||
Preferred stock | 86,862 | 86,862 | |
Financing arrangements, portfolio investments | |||
Liabilities: | |||
Financing arrangements | 608,304 | 773,142 | |
Financing arrangements, residential mortgage loans | |||
Liabilities: | |||
Financing arrangements | 160,562 | 192,419 | |
Residential collateralized debt obligations | |||
Liabilities: | |||
Collateralized debt obligations | 76,867 | 91,663 | |
Multi-family collateralized debt obligations, at fair value | |||
Liabilities: | |||
Collateralized debt obligations | 7,990,619 | 6,624,896 | |
Residential mortgage loans held in securitization trusts, net | |||
ASSETS | |||
Residential mortgage loans, net | 79,875 | 95,144 | |
Residential mortgage loans, at fair value | |||
ASSETS | |||
Residential mortgage loans, net | 69,512 | 17,769 | |
Distressed residential mortgage loans, net (including $133,972 and $195,347 held in securitization trusts as of September 30, 2017 and December 31, 2016, respectively) | |||
ASSETS | |||
Residential mortgage loans, net | $ 369,651 | $ 503,094 | |
[1] | Our condensed consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company is the primary beneficiary of these VIEs. As of September 30, 2017 and December 31, 2016, assets of consolidated VIEs totaled $8,799,352 and $7,330,872, respectively, and the liabilities of consolidated VIEs totaled $8,255,541 and $6,902,536, respectively. See Note 10 for further discussion. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Pledged securities | $ 493,632 | $ 690,592 |
Distressed residential mortgage loans, net (including $133,972 and $195,347 held in securitization trusts as of September 30, 2017 and December 31, 2016, respectively) | $ 133,972 | $ 195,347 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Preferred stock, shares issued (in shares) | 6,600,000 | 6,600,000 |
Preferred stock, shares outstanding (in shares) | 6,600,000 | 6,600,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 111,854,023 | 111,474,521 |
Common stock, shares outstanding (in shares) | 111,854,023 | 111,474,521 |
Series B Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, cumulative redeemable dividend rate | 7.75% | 7.75% |
Preferred stock, liquidation preference per share (in dollars per share) | $ 25 | $ 25 |
Preferred stock, shares authorized (in shares) | 6,000,000 | 6,000,000 |
Preferred stock, shares issued (in shares) | 3,000,000 | 3,000,000 |
Preferred stock, shares outstanding (in shares) | 3,000,000 | 3,000,000 |
Series C Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, cumulative redeemable dividend rate | 7.875% | 7.875% |
Preferred stock, liquidation preference per share (in dollars per share) | $ 25 | $ 25 |
Preferred stock, shares authorized (in shares) | 4,140,000 | 4,140,000 |
Preferred stock, shares issued (in shares) | 3,600,000 | 3,600,000 |
Preferred stock, shares outstanding (in shares) | 3,600,000 | 3,600,000 |
Available-for-sale securities | ||
Investment securities, available for sale, at fair value (including $46,623 and $43,897 held in securitization trusts as of September 30, 2017 and December 31, 2016, respectively, and pledged securities of $493,632 and $690,592, as of September 30, 2017 and December 31, 2016, respectively) | $ 46,623 | $ 43,897 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
INTEREST INCOME: | ||||
Investment securities and other | $ 9,716 | $ 8,587 | $ 29,716 | $ 25,612 |
Total interest income | 91,382 | 79,525 | 263,748 | 240,917 |
INTEREST EXPENSE: | ||||
Investment securities and other | 5,759 | 4,598 | 17,132 | 12,409 |
Total interest expense | 78,062 | 64,007 | 220,801 | 191,093 |
NET INTEREST INCOME | 13,320 | 15,518 | 42,947 | 49,824 |
OTHER INCOME (LOSS): | ||||
Recovery of (provision for) loan losses | 563 | (26) | 452 | 661 |
Realized gain on investment securities and related hedges, net | 4,059 | 2,306 | 3,951 | 5,333 |
Realized gain on distressed residential mortgage loans at carrying value, net | 6,689 | 6,416 | 21,024 | 11,990 |
Net gain on residential mortgage loans at fair value | 717 | 0 | 717 | 0 |
Unrealized gain (loss) on investment securities and related hedges, net | 1,192 | 1,563 | 1,687 | (1,594) |
Unrealized gain on multi-family loans and debt held in securitization trusts, net | 2,353 | 738 | 5,184 | 2,340 |
Income from operating real estate and real estate held for sale in consolidated variable interest entities | 2,429 | 0 | 4,746 | 0 |
Other income | 6,916 | 5,635 | 12,037 | 16,833 |
Total other income | 24,918 | 16,632 | 49,798 | 35,563 |
Base management and incentive fees | 1,386 | 1,453 | 4,355 | 7,958 |
Expenses related to distressed residential mortgage loans | 2,225 | 2,398 | 6,682 | 8,332 |
Expenses related to operating real estate and real estate held for sale in consolidated variable interest entities | 3,143 | 0 | 7,558 | 0 |
Other general and administrative expenses | 4,242 | 4,854 | 14,196 | 11,711 |
Total general, administrative and operating expenses | 10,996 | 8,705 | 32,791 | 28,001 |
INCOME FROM OPERATIONS BEFORE INCOME TAXES | 27,242 | 23,445 | 59,954 | 57,386 |
Income tax expense | 507 | 163 | 2,187 | 2,720 |
NET INCOME | 26,735 | 23,282 | 57,767 | 54,666 |
Net loss (income) attributable to non-controlling interest in consolidated variable interest entities | 1,110 | (14) | 3,597 | (12) |
NET INCOME ATTRIBUTABLE TO COMPANY | 27,845 | 23,268 | 61,364 | 54,654 |
Preferred stock dividends | (3,225) | (3,225) | (9,675) | (9,675) |
NET INCOME ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS | $ 24,620 | $ 20,043 | $ 51,689 | $ 44,979 |
Basic earnings per common share (in dollars per share) | $ 0.22 | $ 0.18 | $ 0.46 | $ 0.41 |
Diluted earnings per common share (in dollars per share) | $ 0.21 | $ 0.18 | $ 0.45 | $ 0.41 |
Weighted average shares outstanding-basic (in shares) | 111,886 | 109,569 | 111,824 | 109,487 |
Weighted average shares outstanding-diluted (in shares) | 131,580 | 109,569 | 129,931 | 109,487 |
Convertible notes | ||||
INTEREST EXPENSE: | ||||
Interest expense | $ 2,630 | $ 0 | $ 7,220 | $ 0 |
Securitized debt | ||||
INTEREST EXPENSE: | ||||
Interest expense | 1,651 | 3,209 | 5,937 | 8,436 |
Subordinated debentures | ||||
INTEREST EXPENSE: | ||||
Subordinated debentures | 589 | 519 | 1,699 | 1,528 |
Multi-family loans held in securitization trusts | ||||
INTEREST INCOME: | ||||
Interest income | 76,186 | 62,126 | 213,242 | 187,427 |
Residential mortgage loans | ||||
INTEREST INCOME: | ||||
Interest income | 1,556 | 947 | 4,163 | 2,705 |
Distressed residential mortgage loans | ||||
INTEREST INCOME: | ||||
Interest income | 3,924 | 7,865 | 16,627 | 25,173 |
Multi-family collateralized debt obligations | ||||
INTEREST EXPENSE: | ||||
Interest expense | 67,030 | 55,359 | 187,835 | 167,783 |
Residential collateralized debt obligations | ||||
INTEREST EXPENSE: | ||||
Interest expense | $ 403 | $ 322 | $ 978 | $ 937 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
NET INCOME ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS | $ 24,620 | $ 20,043 | $ 51,689 | $ 44,979 |
OTHER COMPREHENSIVE INCOME | ||||
Increase in fair value of available for sale securities | 4,560 | 1,469 | 11,946 | 13,045 |
Reclassification adjustment for net gain included in net income | (3,538) | 0 | (4,298) | 0 |
(Decrease) increase in in fair value of derivative instruments utilized for cash flow hedges | (176) | 521 | (84) | (607) |
OTHER COMPREHENSIVE INCOME | 846 | 1,990 | 7,564 | 12,438 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS | $ 25,466 | $ 22,033 | $ 59,253 | $ 57,417 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Changes in Stockholders' Equity - 9 months ended Sep. 30, 2017 - USD ($) $ in Thousands | Total | Common Stock | Preferred Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive (Loss) Income | Total Company Stockholders' Equity | Non-Controlling Interest in Consolidated Variable Interest Entities |
Beginning balance at Dec. 31, 2016 | $ 851,162 | $ 1,115 | $ 159,259 | $ 748,599 | $ (62,537) | $ 1,639 | $ 848,075 | $ 3,087 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 57,767 | 61,364 | 61,364 | (3,597) | ||||
Common Stock issuance, net | 1,843 | 4 | 0 | 1,839 | 1,843 | |||
Dividends declared on common stock | (67,118) | (67,118) | (67,118) | |||||
Dividends declared on preferred stock | (9,675) | (9,675) | (9,675) | |||||
Reclassification adjustment for net gain included in net income | (4,298) | (4,298) | (4,298) | |||||
Increase in fair value on available for sale securities | 11,946 | 11,946 | 11,946 | |||||
Decrease in fair value of derivative instruments utilized for cash flow hedges | (84) | (84) | (84) | |||||
Increase in non-controlling interest related to initial consolidation of variable interest entities | 4,462 | 4,462 | ||||||
Ending balance at Sep. 30, 2017 | $ 846,005 | $ 1,119 | $ 159,259 | $ 750,438 | $ (77,966) | $ 9,203 | $ 842,053 | $ 3,952 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Cash Flows from Operating Activities: | ||||||
Net income | $ 26,735 | $ 23,282 | $ 57,767 | $ 54,666 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Net amortization | 2,248 | 5,713 | ||||
Realized gain on investment securities and related hedges, net | (4,059) | (2,306) | (3,951) | (5,333) | ||
Net gain on distressed residential mortgage and residential mortgage loans | (21,741) | (11,990) | ||||
Unrealized (gain) loss on investment securities and related hedges, net | (1,192) | (1,563) | (1,687) | 1,594 | ||
Gain on remeasurement of existing membership interest in businesses acquired | 0 | (5,052) | ||||
Gain on bargain purchase on businesses acquired | 0 | (65) | ||||
Unrealized gain on loans and debt held in multi-family securitization trusts | (5,184) | (2,340) | ||||
Net decrease in loans held for sale | 24 | 432 | ||||
Recovery of loan losses | (563) | 26 | (452) | (661) | ||
Income from unconsolidated entity, mezzanine loan and preferred equity investments | (21,507) | (16,934) | ||||
Distributions of income from unconsolidated entity, mezzanine loan and preferred equity investments | 17,348 | 12,085 | ||||
Amortization of stock based compensation, net | 1,268 | 514 | ||||
Changes in operating assets and liabilities: | ||||||
Receivables and other assets | (7,823) | 8,288 | ||||
Accrued expenses and other liabilities | 9,875 | 3,687 | ||||
Net cash provided by operating activities | 26,185 | 44,604 | ||||
Cash Flows from Investing Activities: | ||||||
Acquisition of businesses, net of cash and restricted cash acquired | 0 | (28,447) | ||||
Cash received from initial consolidation of variable interest entities | 112 | 0 | ||||
Proceeds from sales of investment securities | 100,937 | 198,280 | ||||
Purchases of investment securities | (129,923) | (339,650) | ||||
Redemption of FHLBI stock | 0 | 5,423 | ||||
Purchases of other assets | (23) | (85) | ||||
Capital expenditures on operating real estate and real estate held for sale in consolidated variable interest entities | (191) | 0 | ||||
Funding of mezzanine loans, equity and preferred equity investments | (45,101) | (40,860) | ||||
Principal repayments received on mezzanine loans and preferred equity investments | 18,947 | 464 | ||||
Return of capital from unconsolidated entity investments | 23,395 | 6,002 | ||||
Net proceeds on other derivative instruments settled during the period | 3,950 | 8,155 | ||||
Principal paydowns on investment securities - available for sale | 170,133 | 84,592 | ||||
Proceeds from sale of real estate owned | 5,656 | 1,525 | ||||
Purchases of residential mortgage loans and distressed residential mortgage loans | (81,472) | (52,130) | ||||
Purchases of investments held in multi-family securitization trusts | (65,453) | 0 | ||||
Net cash provided by investing activities | 299,227 | 55,007 | ||||
Cash Flows from Financing Activities: | ||||||
(Payments made on) net proceeds from financing arrangements, including FHLBI advances and payments | (197,590) | 64,185 | ||||
Proceeds from issuance of convertible notes, net | 126,995 | 0 | ||||
Proceeds from issuance of securitized debt | 0 | 167,724 | ||||
Common stock issuance, net | 574 | 385 | ||||
Payments made on mortgages and notes payable in consolidated variable interest entities | (266) | 0 | ||||
Proceeds from mortgages and notes payable in consolidated variable interest entities | 4,425 | 0 | ||||
Payments of secured debt | (62,098) | (53,354) | ||||
Redemption of preferred debt | 0 | (16,255) | ||||
Net cash used in financing activities | (328,950) | (38,438) | ||||
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash | (3,538) | 61,173 | ||||
Cash, Cash Equivalents and Restricted Cash - Beginning of Period | $ 143,915 | 139,530 | 82,742 | $ 82,742 | ||
Cash, Cash Equivalents and Restricted Cash - End of Period | 135,992 | 143,915 | 135,992 | 143,915 | $ 139,530 | |
Supplemental Disclosure: | ||||||
Cash paid for interest | 245,891 | 226,555 | ||||
Cash paid for income taxes | 2,153 | 2,172 | ||||
Non-Cash Investment Activities: | ||||||
Sales of investment securities not yet settled | 1,261 | 0 | ||||
Purchase of investment securities not yet settled | 181,718 | 290,833 | ||||
Consolidation of multi-family loans held in securitization trusts | 1,537,526 | 0 | ||||
Consolidation of multi-family collateralized debt obligations | 1,472,073 | 0 | ||||
Transfer from residential loans to real estate owned | 6,221 | 5,844 | ||||
Common Stock | ||||||
Cash Flows from Financing Activities: | ||||||
Dividends paid on stock | (71,501) | (78,811) | ||||
Non-Cash Financing Activities: | ||||||
Dividends declared on stock to be paid in subsequent period | 22,371 | 26,296 | 22,371 | 26,296 | ||
Preferred Stock | ||||||
Cash Flows from Financing Activities: | ||||||
Dividends paid on stock | (9,675) | (9,675) | ||||
Non-Cash Financing Activities: | ||||||
Dividends declared on stock to be paid in subsequent period | $ 3,225 | $ 3,225 | 3,225 | 3,225 | ||
Distressed residential mortgage loans | ||||||
Cash Flows from Investing Activities: | ||||||
Principal repayments received on loans | 14,190 | 19,607 | ||||
Distressed residential mortgage loans held in securitization trust (net) | ||||||
Cash Flows from Investing Activities: | ||||||
Principal repayments received on loans | 179,108 | 100,217 | ||||
Multi-family collateralized debt obligations, at fair value | ||||||
Cash Flows from Investing Activities: | ||||||
Principal repayments received on loans | 104,962 | 91,914 | ||||
Residential collateralized debt obligations | ||||||
Cash Flows from Financing Activities: | ||||||
Payments of secured debt | (14,856) | (20,736) | ||||
Collateralized debt obligation | ||||||
Cash Flows from Financing Activities: | ||||||
Payments of secured debt | $ (55,900) | $ (104,958) | $ (91,901) |
Organization
Organization | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization New York Mortgage Trust, Inc., together with its consolidated subsidiaries ("NYMT," "we," "our," or the “Company"), is a real estate investment trust, or REIT, in the business of acquiring, investing in, financing and managing mortgage-related and residential housing-related assets and financial assets. Our objective is to deliver stable distributions to our stockholders over diverse economic conditions through a combination of income generated by net interest margin and net realized capital gains from our diversified investment portfolio. Our portfolio includes residential mortgage loans, including loans sourced from distressed markets and second mortgage loans, multi-family CMBS, preferred equity and joint venture equity investments in, and mezzanine loans to, owners of multi-family properties, equity and debt securities issued by entities that invest in residential and commercial real estate, non-Agency RMBS, Agency RMBS consisting of fixed-rate, adjustable-rate and hybrid adjustable-rate RMBS and Agency IOs consisting of interest only and inverse interest-only RMBS that represent the right to the interest component of the cash flow from a pool of mortgage loans and certain other investments in mortgage-related and residential housing-related assets and financial assets. The Company conducts its business through the parent company, New York Mortgage Trust, Inc., and several subsidiaries, including special purpose subsidiaries established for residential loan, distressed residential loan and CMBS securitization purposes, taxable REIT subsidiaries ("TRSs") and qualified REIT subsidiaries ("QRSs"). The Company consolidates all of its subsidiaries under generally accepted accounting principles in the United States of America (“GAAP”). The Company is organized and conducts its operations to qualify as a REIT for federal income tax purposes. As such, the Company will generally not be subject to federal income tax on that portion of its income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by the due date of its federal income tax return and complies with various other requirements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Definitions – The following defines certain of the commonly used terms in these financial statements: “RMBS” refers to residential adjustable-rate, hybrid adjustable-rate, fixed-rate, interest only and inverse interest only and principal only mortgage-backed securities; “Agency RMBS” refers to RMBS representing interests in or obligations backed by pools of mortgage loans issued or guaranteed by a federally chartered corporation (“GSE”), such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”), or an agency of the U.S. government, such as the Government National Mortgage Association (“Ginnie Mae”); “Non-Agency RMBS” refers to RMBS backed by prime jumbo mortgage loans and re-performing and non-performing mortgage loans; “IOs” refers collectively to interest only and inverse interest only mortgage-backed securities that represent the right to the interest component of the cash flow from a pool of mortgage loans; “POs” refers to mortgage-backed securities that represent the right to the principal component of the cash flow from a pool of mortgage loans; “Agency IOs” refers to an IO that represents the right to the interest component of the cash flows from a pool of residential mortgage loans issued or guaranteed by a GSE or an agency of the U.S. government; “ARMs” refers to adjustable-rate residential mortgage loans; “Prime ARM loans” and “residential securitized loans” each refer to prime credit quality residential ARM loans held in securitization trusts formed in 2005; “Agency ARMs” refers to Agency RMBS comprised of adjustable-rate and hybrid adjustable-rate RMBS; "Agency fixed-rate RMBS" refers to Agency RMBS comprised of fixed-rate RMBS; “CMBS” refers to commercial mortgage-backed securities comprised of commercial mortgage pass-through securities, as well as IO or PO securities that represent the right to a specific component of the cash flow from a pool of commercial mortgage loans; “Multi-family CMBS” refers to CMBS backed by commercial mortgage loans on multi-family properties; “CDOs” refers to collateralized debt obligations; and “CLO” refers to collateralized loan obligations. Basis of Presentation – The accompanying condensed consolidated balance sheet as of December 31, 2016 has been derived from audited financial statements. The accompanying condensed consolidated balance sheet as of September 30, 2017 , the accompanying condensed consolidated statements of operations for the three and nine months ended September 30, 2017 and 2016 , the accompanying condensed consolidated statements of comprehensive income for the three and nine months ended September 30, 2017 and 2016 , the accompanying condensed consolidated statement of changes in stockholders’ equity for the nine months ended September 30, 2017 and the accompanying condensed consolidated statements of cash flows for the nine months ended September 30, 2017 and 2016 are unaudited. In our opinion, all adjustments (which include only normal recurring adjustments) necessary to present fairly the Company’s financial position, results of operations and cash flows have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with Article 10 of Regulation S-X and the instructions to Form 10-Q. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016 , as filed with the U.S. Securities and Exchange Commission (“SEC”). The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the operating results for the full year. The accompanying condensed consolidated financial statements have been prepared on the accrual basis of accounting in accordance with GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management has made significant estimates in several areas, including valuation of its CMBS investments, multi-family loans held in securitization trusts and multi-family CDOs, as well as, income recognition on distressed residential mortgage loans purchased at a discount. Although the Company’s estimates contemplate current conditions and how it expects them to change in the future, it is reasonably possible that actual conditions could be different than anticipated in those estimates, which could materially impact the Company’s results of operations and its financial condition. Reclassifications – Certain prior period amounts have been reclassified in the condensed consolidated financial statements to conform to current period presentation. Principles of Consolidation and Variable Interest Entities – The accompanying condensed consolidated financial statements of the Company include the accounts of all its subsidiaries which are majority-owned, controlled by the Company or a variable interest entity ("VIE") where the Company is the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation. A VIE is an entity that lacks one or more of the characteristics of a voting interest entity. A VIE is defined as an entity in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The Company consolidates a VIE when it is the primary beneficiary of such VIE, herein referred to as a "Consolidated VIE". As primary beneficiary, the Company has both the power to direct the activities that most significantly impact the economic performance of the VIE and a right to receive benefits or absorb losses of the entity that could be potentially significant to the VIE. The Company is required to reconsider its evaluation of whether to consolidate a VIE each reporting period, based upon changes in the facts and circumstances pertaining to the VIE. Business Combinations – The Company evaluates each purchase transaction to determine whether the acquired assets meet the definition of a business. The Company accounts for business combinations by applying the acquisition method in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations ("ASC 805"). Transaction costs related to acquisition of a business are expensed as incurred and excluded from the fair value of consideration transferred. The identifiable assets acquired, liabilities assumed and non-controlling interests, if any, in an acquired entity are recognized and measured at their estimated fair values. The excess of the fair value of consideration transferred over the fair values of identifiable assets acquired, liabilities assumed and non-controlling interests, if any, in an acquired entity, net of fair value of any previously held interest in the acquired entity, is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets and liabilities. Contingent consideration is classified as a liability or equity, as applicable. Contingent consideration in connection with the acquisition of a business is measured at fair value on acquisition date, and unless classified as equity, is remeasured at fair value each reporting period thereafter until the consideration is settled, with changes in fair value included in net income. Net cash paid to acquire a business is classified as investing activities on the accompanying condensed consolidated statements of cash flows. On May 16, 2016, the Company acquired the outstanding membership interests in RiverBanc LLC ("RiverBanc"), RB Multifamily Investors LLC ("RBMI"), and RB Development Holding Company, LLC ("RBDHC") that were not previously owned by the Company through the consummation of separate membership interest purchase agreements, thereby increasing the Company's ownership of each of these entities to 100% ( see Note 23 ). These transactions were accounted for by applying the acquisition method for business combinations under ASC 805. On March 31, 2017 , the Company determined that it became the primary beneficiary of 200 RHC Hoover, LLC ("Riverchase Landing") and The Clusters, LLC ("The Clusters"), two variable interest entities that each own a multi-family apartment community and in which the Company holds preferred equity investments. Accordingly, on this date, the Company consolidated both Riverchase Landing and The Clusters into its condensed consolidated financial statements in accordance with ASC 810, Consolidation ("ASC 810"). These transactions were accounted for by applying the acquisition method for business combinations under ASC 805 ( see Note 10 ). Investment Securities Available for Sale – The Company's investment securities, where the fair value option has not been elected and which are reported at fair value with unrealized gains and losses reported in Other Comprehensive Income (“OCI”), include Agency RMBS, non-Agency RMBS and CMBS. The Company has elected the fair value option for its Agency IOs, U.S. Treasury securities, and certain Agency ARMs and Agency fixed-rate RMBS within the Agency IO portfolio, which measures unrealized gains and losses through earnings in the accompanying condensed consolidated statements of operations. The fair value option was elected for these investment securities to better match the accounting for these investment securities with the related derivative instruments within the Agency IO portfolio, which are not designated as hedging instruments for accounting purposes. The Company generally intends to hold its investment securities until maturity; however, from time to time, it may sell any of its securities as part of the overall management of its business. As a result, our investment securities are classified as available for sale securities. Realized gains and losses recorded on the sale of investment securities available for sale are based on the specific identification method and included in realized gain (loss) on investment securities and related hedges in the accompanying condensed consolidated statements of operations. Interest income on our investment securities available for sale is accrued based on the outstanding principal balance and their contractual terms. Purchase premiums or discounts on investment securities are amortized or accreted to interest income over the estimated life of the investment securities using the effective yield method. Adjustments to amortization are made for actual prepayment activity. Interest income on certain of our credit sensitive securities, such as our CMBS that were purchased at a discount to par value, is recognized based on the security’s effective interest rate. The effective interest rate on these securities is based on management’s estimate of the projected cash flows from each security, which are estimated based on assumptions related to fluctuations in interest rates, prepayment speeds and the timing and amount of credit losses. On at least a quarterly basis, management reviews and, if appropriate, adjusts its cash flow projections based on input and analysis received from external sources, internal models, and its judgment about interest rates, prepayment rates, the timing and amount of credit losses, and other factors. Changes in cash flows from those originally projected, or from those estimated at the last evaluation, may result in a prospective change in the yield/interest income recognized on these securities. A portion of the purchase discount on the Company’s first loss tranche PO multi-family CMBS is designated as non-accretable purchase discount or credit reserve, which partially mitigates the Company’s risk of loss on the mortgages collateralizing such multi-family CMBS, and is not expected to be accreted into interest income. The amount designated as a credit reserve may be adjusted over time, based on the actual performance of the security, its underlying collateral, actual and projected cash flow from such collateral, economic conditions and other factors. If the performance of a security with a credit reserve is more favorable than forecasted, a portion of the amount designated as credit reserve may be accreted into interest income over time. Conversely, if the performance of a security with a credit reserve is less favorable than forecasted, the amount designated as credit reserve may be increased, or impairment charges and writedowns of such securities to a new cost basis could be required. The Company accounts for debt securities that are of high credit quality (generally those rated AA or better by a Nationally Recognized Statistical Rating Organization, or NRSRO) at date of acquisition in accordance with ASC 320-10, Investments - Debt and Equity Securities ("ASC 320-10"). The Company accounts for debt securities that are not of high credit quality (i.e., those whose risk of loss is less than remote) or securities that can be contractually prepaid such that we would not recover our initial investment at the date of acquisition in accordance with ASC 325-40, Investments - Beneficial Interests in Securitized Financial Assets ("ASC 325-40"). The Company considers credit ratings, the underlying credit risk and other market factors in determining whether the debt securities are of high credit quality; however, securities rated lower than AA or an equivalent rating are not considered of high credit quality and are accounted for in accordance with ASC 325-40. If ratings are inconsistent among NRSROs, the Company uses the lower rating in determining whether the securities are of high credit quality. The Company assesses its impaired securities on at least a quarterly basis and designates such impairments as either “temporary” or “other-than-temporary” by applying the guidance prescribed in ASC 320-10. When the fair value of an investment security is less than its amortized cost as of the reporting balance sheet date, the security is considered impaired. If the Company intends to sell an impaired security, or it is more likely than not that it will be required to sell the impaired security before its anticipated recovery, then it must recognize an other-than-temporary impairment through earnings equal to the entire difference between the investment’s amortized cost and its fair value as of the balance sheet date. If the Company does not expect to sell an other-than-temporarily impaired security, only the portion of the other-than-temporary impairment related to credit losses is recognized through earnings with the remainder recognized as a component of other comprehensive income (loss) on the accompanying condensed consolidated balance sheets. Impairments recognized through other comprehensive income (loss) do not impact earnings. Following the recognition of an other-than-temporary impairment through earnings, a new cost basis is established for the security, which may not be adjusted for subsequent recoveries in fair value through earnings. However, other-than-temporary impairments recognized through earnings may be accreted back to the amortized cost basis of the security on a prospective basis through interest income. The determination as to whether an other-than-temporary impairment exists and, if so, the amount considered other-than-temporarily impaired is subjective, as such determinations are based on both factual and subjective information available at the time of assessment as well the Company’s estimates of the future performance and cash flow projections. As a result, the timing and amount of other-than-temporary impairments constitute material estimates that are susceptible to significant change. In determining the other-than temporary impairment related to credit losses for securities that are not of high credit quality, the Company compares the present value of the remaining cash flows expected to be collected at the prior reporting date or purchase date, whichever is most recent, against the present value of the cash flows expected to be collected at the current financial reporting date. The Company considers information available about the past and expected future performance of underlying mortgage loans, including timing of expected future cash flows, prepayment rates, default rates, loss severities and delinquency rates. Residential Mortgage Loans Held in Securitization Trusts – Residential mortgage loans held in securitization trusts are comprised of certain ARM loans transferred to Consolidated VIEs that have been securitized into sequentially rated classes of beneficial interests. The Company accounted for these securitization trusts as financings which are consolidated into the Company’s financial statements. Residential mortgage loans held in securitization trusts are carried at their unpaid principal balances, net of unamortized premium or discount, unamortized loan origination costs and allowance for loan losses. Interest income is accrued and recognized as revenue when earned according to the terms of the mortgage loans and when, in the opinion of management, it is collectible. The accrual of interest on loans is discontinued when, in management’s opinion, the interest is not collectible in the normal course of business, but in all cases when payment becomes greater than 90 days delinquent. Loans return to accrual status when principal and interest become current and are anticipated to be fully collectible. We establish an allowance for loan losses based on management's judgment and estimate of credit losses inherent in our portfolio of residential mortgage loans held in securitization trusts. Estimation involves the consideration of various credit-related factors, including but not limited to, macro-economic conditions, current housing market conditions, loan-to-value ratios, delinquency status, historical credit loss severity rates, purchased mortgage insurance, the borrower's current economic condition and other factors deemed to warrant consideration. Additionally, we look at the balance of any delinquent loan and compare that to the current value of the collateralizing property. We utilize various home valuation methodologies including appraisals, broker pricing opinions, internet-based property data services to review comparable properties in the same area or consult with a broker in the property's area. Residential Mortgage Loans, at fair value – Certain of the Company’s acquired residential mortgage loans, including distressed residential mortgage loans and second lien mortgages, are presented at fair value on its condensed consolidated balance sheets as a result of a fair value election made at the time of acquisition pursuant to ASC 825. Changes in fair value are recorded in current period earnings in net gain on residential mortgage loans at fair value in the Company's condensed consolidated statements of operations. Premiums and discounts associated with the purchase of residential mortgage loans, at fair value are amortized or accreted into interest income over the life of the related loan using the effective interest method. Any premium amortization or discount accretion is reflected as a component of interest income, residential mortgage loans in the Company's condensed consolidated statements of operations. Acquired Distressed Residential Mortgage Loans – Distressed residential mortgage loans are comprised of pools of fixed and adjustable rate residential mortgage loans acquired by the Company at a discount, with evidence of credit deterioration since their origination and where it is possible that the Company will not collect all contractually required principal payments. Distressed residential mortgage loans held in securitization trusts are distressed residential mortgage loans transferred to Consolidated VIEs that have been securitized into beneficial interests. The Company accounted for these securitization trusts as financings which are consolidated into the Company’s financial statements. Acquired distressed residential mortgage loans that have evidence of deteriorated credit quality at acquisition are accounted for under ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality ("ASC 310-30"). Management evaluates whether there is evidence of credit quality deterioration as of the acquisition date using indicators such as past due or modified status, risk ratings, recent borrower credit scores and recent loan-to-value percentages. Acquired distressed residential mortgage loans are recorded at fair value at the date of acquisition, with no allowance for loan losses. Under ASC 310-30, the acquired loans may be accounted for individually or aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. A pool is accounted for as a single asset with a single composite interest rate and an expectation of aggregate cash flows. Once a pool is assembled, it is treated as if it was one loan for purposes of applying the accounting guidance. Under ASC 310-30, the excess of cash flows expected to be collected over the carrying amount of the loans, referred to as the “accretable yield,” is accreted into interest income over the life of the loans in each pool or individually using a level yield methodology. Accordingly, our acquired distressed residential mortgage loans accounted for under ASC 310-30 are not subject to classification as nonaccrual classification in the same manner as our residential mortgage loans that were not distressed when acquired by us. Rather, interest income on acquired distressed residential mortgage loans relates to the accretable yield recognized at the pool level or on an individual loan basis, and not to contractual interest payments received at the loan level. The difference between contractually required principal and interest payments and the cash flows expected to be collected, referred to as the “nonaccretable difference,” includes estimates of both the impact of prepayments and expected credit losses over the life of the individual loan, or the pool (for loans grouped into a pool). Management monitors actual cash collections against its expectations, and revised cash flow estimates are prepared as necessary. A decrease in expected cash flows in subsequent periods may indicate that the loan pool or individual loan, as applicable, is impaired, thus requiring the establishment of an allowance for loan losses by a charge to the provision for loan losses. An increase in expected cash flows in subsequent periods initially reduces any previously established allowance for loan losses by the increase in the present value of cash flows expected to be collected, and results in a recalculation of the amount of accretable yield for the loan pool. The adjustment of accretable yield due to an increase in expected cash flows is accounted for prospectively as a change in estimate. The additional cash flows expected to be collected are reclassified from the nonaccretable difference to the accretable yield, and the amount of periodic accretion is adjusted accordingly over the remaining life of the loans in the pool or individual loan, as applicable. The impacts of (i) prepayments, (ii) changes in variable interest rates, and (iii) any other changes in the timing of expected cash flows are recognized prospectively as adjustments to interest income. A distressed residential mortgage loan disposal, which may include a loan sale, receipt of payment in full from the borrower or foreclosure, results in removal of the loan from the loan pool at its allocated carrying amount. In the event of a sale of the loan and receipt of payment (in full or partial) from the borrower, a gain or loss on sale is recognized and reported based on the difference between the sales proceeds or payment from the borrower and the allocated carrying amount of the acquired distressed residential mortgage loan. In the case of a foreclosure, an individual loan is removed from the pool and a loss on sale is recognized if the carrying value exceeds the fair value of the collateral less costs to sell. A gain is not recognized if the fair value of collateral less costs to sell exceeds the carrying value. The Company uses the specific allocation method for the removal of loans as the estimated cash flows and related carrying amount for each individual loan are known. In these cases, the remaining accretable yield is unaffected and any material change in remaining effective yield caused by the removal of the loan from the pool is addressed by the re-assessment of the estimate of cash flows for the pool prospectively. Acquired distressed residential mortgage loans subject to modification are not removed from the pool even if those loans would otherwise be considered troubled debt restructurings because the pool, and not the individual loan, represents the unit of account. For individual loans not accounted for in pools that are sold or satisfied by payment in full, a gain or loss on sale is recognized and reported based on the difference between the sales proceeds and the carrying amount of the acquired distressed residential mortgage loan. In the case of a foreclosure, a loss is recognized if the carrying value exceeds the fair value of the underlying collateral less costs to sell. A gain is not recognized if the fair value of the underlying collateral less costs to sell exceeds the carrying value. Multi-Family Loans Held in Securitization Trusts – Multi-family loans held in securitization trusts are comprised of multi-family mortgage loans held in Freddie Mac-sponsored multi-family K-Series securitizations (the “Consolidated K-Series”). Based on a number of factors, we determined that we were the primary beneficiary of each VIE within the Consolidated K-Series, met the criteria for consolidation and, accordingly, have consolidated these Freddie Mac-sponsored multi-family K-Series securitizations, including their assets, liabilities, income and expenses in our condensed consolidated financial statements. The Company has elected the fair value option on each of the assets and liabilities held within the Consolidated K-Series, which requires that changes in valuations be reflected in the Company's accompanying condensed consolidated statement of operations. The Company adopted Accounting Standards Update ("ASU") 2014-13 Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity, effective January 1, 2016. As a result, the Company measures both the financial assets and financial liabilities of a qualifying collateralized financing entity ("CFE") using the fair value of either the CFE’s financial assets or financial liabilities, whichever is more observable. As the Company’s securitization trusts are considered qualifying CFEs, the Company determines the fair value of multi-family loans held in securitization trusts based on the fair value of its multi-family collateralized debt obligations and its retained interests from these securitizations (eliminated in consolidation in accordance with GAAP), as the fair value of these instruments is more observable. Interest income is accrued and recognized as revenue when earned according to the terms of the multi-family loans and when, in the opinion of management, it is collectible. The accrual of interest on multi-family loans is discontinued when, in management’s opinion, the interest is not collectible in the normal course of business, but in all cases when payment becomes greater than 90 days delinquent. The multi-family loans return to accrual status when principal and interest become current and are anticipated to be fully collectible. Mezzanine Loan and Preferred Equity Investments – The Company invests in mezzanine loans and preferred equity of entities that have significant real estate assets. The mezzanine loan is secured by a pledge of the borrower’s equity ownership in the property. Unlike a mortgage, this loan does not represent a lien on the property. Therefore, it is always junior and subordinate to any first-lien as well as second liens, if applicable, on the property. These loans are senior to any preferred equity or common equity interests. A preferred equity investment is an equity investment in the entity that owns the underlying property. Preferred equity is not secured by the underlying property, but holders have priority relative to common equity holders on cash flow distributions and proceeds from capital events. In addition, preferred equity holders may be able to enhance their position and protect their equity position with covenants that limit the entity’s activities and grant the holder the exclusive right to control the property after an event of default. Mezzanine loans and preferred equity investments, where the risks and payment characteristics are equivalent to mezzanine loans, are accounted for as loans and are stated at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, net of valuation allowances. The Company has evaluated its mezzanine loan and preferred equity investments for accounting treatment as loans versus equity investment utilizing the guidance provided by the ADC Arrangements Subsection of ASC 310, Receivables . For mezzanine loan and preferred equity investments where the characteristics, facts and circumstances indicate that loan accounting treatment is appropriate, the Company accretes or amortizes any discounts or premiums and deferred fees and expenses over the life of the related asset utilizing the effective interest method or straight line-method, if the result is not materially different. Management evaluates the collectibility of both interest and principal of each of these loans, if circumstances warrant, to determine whether they are impaired. A loan is impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the existing contractual terms. When a loan is impaired, the amount of the loss accrual is calculated by comparing the carrying amount of the investment to the estimated fair value of the loan or, as a practical expedient, to the value of the collateral if the loan is collateral dependent. Interest income is accrued and recognized as revenue when earned according to the terms of the loans and when, in the opinion of management, it is collectible. The accrual of interest on loans is discontinued when, in management’s opinion, the interest is not collectible in the normal course of business, but in all cases when payment becomes greater than 90 days delinquent. Loans return to accrual status when principal and interest become current and are anticipated to be fully collectible. Mezzanine loans and preferred equity investments where the risks and payment characteristics are equivalent to an equity investment are accounted for using the equity method of accounting. See “ Investment in Unconsolidated Entities. ” Mortgage Loans Held for Investment – Mortgage loans held for investment are stated at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, net of valuation allowances, and are included in receivables and other assets. Interest income is accrued on the principal amount of the loan based on the loan’s contractual interest rate. Amortization of premiums and discounts is recorded using the effective yield method. Interest income, amortization of premiums and discounts and prepayment fees are reported in interest income. A loan is considered to be impaired when it is probable that based upon current information and events, the Company will be unable to collect all amounts due under the contractual terms of the loan agreement. Based on the facts and circumstances of the individual loans being impaired, loan specific valuation allowances are established for the excess carrying value of the loan over either: (i) the present value of expected future cash flows discounted at the loan’s original effective interest rate, (ii) the estimated fair value of the loan’s underlying collateral if the loa |
Investment Securities Available
Investment Securities Available for Sale | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities Available for Sale | Investment Securities Available For Sale Investment securities available for sale consisted of the following as of September 30, 2017 and December 31, 2016 (dollar amounts in thousands): September 30, 2017 December 31, 2016 Amortized Cost Unrealized Fair Value Amortized Cost Unrealized Fair Value Gains Losses Gains Losses Agency RMBS (1) Agency ARMs Freddie Mac $ 34,733 $ 21 $ (351 ) $ 34,403 $ 39,138 $ 24 $ (528 ) $ 38,634 Fannie Mae 59,583 13 (545 ) 59,051 69,031 71 (698 ) 68,404 Ginnie Mae 5,022 — (209 ) 4,813 6,011 — (204 ) 5,807 Total Agency ARMs 99,338 34 (1,105 ) 98,267 114,180 95 (1,430 ) 112,845 Agency Fixed Rate Freddie Mac 21,556 — (586 ) 20,970 26,338 — (644 ) 25,694 Fannie Mae 267,169 — (9,089 ) 258,080 312,515 — (10,035 ) 302,480 Ginnie Mae 379 — (5 ) 374 457 — (4 ) 453 Total Agency Fixed Rate 289,104 — (9,680 ) 279,424 339,310 — (10,683 ) 328,627 Agency IOs (1) Freddie Mac 9,423 25 (2,571 ) 6,877 19,768 559 (3,363 ) 16,964 Fannie Mae 13,752 50 (3,316 ) 10,486 27,597 478 (4,777 ) 23,298 Ginnie Mae 23,858 411 (4,291 ) 19,978 49,788 1,223 (6,382 ) 44,629 Total Agency IOs 47,033 486 (10,178 ) 37,341 97,153 2,260 (14,522 ) 84,891 Total Agency RMBS 435,475 520 (20,963 ) 415,032 550,643 2,355 (26,635 ) 526,363 Non-Agency RMBS 131,253 1,789 (20 ) 133,022 162,220 1,218 (154 ) 163,284 U.S. Treasury securities (1) 2,920 4 — 2,924 2,920 — (33 ) 2,887 CMBS (2) 105,020 18,163 — 123,183 113,955 12,876 (389 ) 126,442 Total investment securities available for sale $ 674,668 $ 20,476 $ (20,983 ) $ 674,161 $ 829,738 $ 16,449 $ (27,211 ) $ 818,976 (1) Included in investment securities available for sale are Agency IOs, Agency RMBS and U.S. Treasury securities managed by Midway that are measured at fair value through earnings. (2) Included in CMBS is $46.6 million and $43.9 million of investment securities available for sale held in securitization trusts as of September 30, 2017 and December 31, 2016 , respectively. Realized Gain or Loss Activity During the three and nine months ended September 30, 2017 , the Company received proceeds of approximately $49.5 million and $102.2 million on sales of investment securities available for sale realizing a gain of approximately $3.0 million and $0.7 million , respectively. During the three and nine months ended September 30, 2016 , the Company received proceeds of approximately $9.6 million and $112.0 million on sales of investment securities available for sale realizing a loss of approximately $1.4 million and $2.4 million , respectively. Weighted Average Life Actual maturities of our available for sale securities are generally shorter than stated contractual maturities (with maturities up to 30 years ), as they are affected by periodic payments and prepayments of principal on the underlying mortgages. As of September 30, 2017 and December 31, 2016 , the weighted average life of the Company’s available for sale securities portfolio was approximately 3.3 years and 4.3 years , respectively. The following table sets forth the weighted average lives of our investment securities available for sale as of September 30, 2017 and December 31, 2016 (dollar amounts in thousands): Weighted Average Life September 30, 2017 December 31, 2016 0 to 5 years $ 508,612 $ 606,079 Over 5 to 10 years 152,559 177,765 10+ years 12,990 35,132 Total $ 674,161 $ 818,976 Portfolio Interest Reset Periods The following tables set forth the stated reset periods of our investment securities available for sale and investment securities available for sale held in securitization trusts at September 30, 2017 and December 31, 2016 at carrying value (dollar amounts in thousands): September 30, 2017 December 31, 2016 Less than 6 6 to 24 More than Total Less than 6 to 24 More than Total Agency RMBS $ 36,940 $ 23,332 $ 354,760 $ 415,032 $ 53,043 $ 27,272 $ 446,048 $ 526,363 Non-Agency RMBS 6,205 — 126,817 133,022 50,080 — 113,204 163,284 U.S. Treasury securities — — 2,924 2,924 — — 2,887 2,887 CMBS 76,560 — 46,623 123,183 82,545 — 43,897 126,442 Total investment securities available for sale $ 119,705 $ 23,332 $ 531,124 $ 674,161 $ 185,668 $ 27,272 $ 606,036 $ 818,976 Unrealized Losses in OCI The following tables present the Company's investment securities available for sale in an unrealized loss position reported through OCI, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2017 and December 31, 2016 (dollar amounts in thousands): September 30, 2017 Less than 12 months Greater than 12 months Total Carrying Value Gross Unrealized Losses Carrying Value Gross Unrealized Losses Carrying Value Gross Unrealized Losses Agency RMBS $ 91,170 $ (914 ) $ 281,152 $ (9,866 ) $ 372,322 $ (10,780 ) Non-Agency RMBS — — 212 (20 ) 212 (20 ) Total investment securities available for sale $ 91,170 $ (914 ) $ 281,364 $ (9,886 ) $ 372,534 $ (10,800 ) At September 30, 2017 , the Company does not intend to sell any of its investments that were in an unrealized loss position, and it is “more likely than not” that the Company will not be required to sell these securities before recovery of their amortized cost basis, which may be at their maturity. Gross unrealized losses on the Company’s Agency RMBS were $10.8 million at September 30, 2017 . Agency RMBS are issued by Government Sponsored Entities (“GSEs”) and enjoy either the implicit or explicit backing of the full faith and credit of the U.S. Government. While the Company’s Agency RMBS are not rated by any rating agency, they are currently perceived by market participants to be of high credit quality, with risk of default limited to the unlikely event that the U.S. Government would not continue to support the GSEs. Given the credit quality inherent in Agency RMBS, the Company does not consider any of the current impairments on its Agency RMBS to be credit-related. In assessing whether it is more likely than not that it will be required to sell any impaired security before its anticipated recovery, which may be at its maturity, the Company considers for each impaired security, the significance of each investment, the amount of impairment, the projected future performance of such impaired securities, as well as the Company’s current and anticipated leverage capacity and liquidity position. Based on these analyses, the Company determined that at September 30, 2017 any unrealized losses on its Agency RMBS were temporary. December 31, 2016 Less than 12 months Greater than 12 months Total Carrying Value Gross Unrealized Losses Carrying Value Gross Unrealized Losses Carrying Value Gross Unrealized Losses Agency RMBS $ 96,357 $ (1,290 ) $ 328,474 $ (10,819 ) $ 424,831 $ (12,109 ) Non-Agency RMBS — — 596 (154 ) 596 (154 ) CMBS 16,523 (389 ) — — 16,523 (389 ) Total investment securities available for sale $ 112,880 $ (1,679 ) $ 329,070 $ (10,973 ) $ 441,950 $ (12,652 ) Other than Temporary Impairment For the three and nine months ended September 30, 2017 and 2016 , the Company recognized no other-than-temporary impairment through earnings. |
Residential Mortgage Loans Held
Residential Mortgage Loans Held in Securitization Trusts (Net) and Real Estate Owned | 9 Months Ended |
Sep. 30, 2017 | |
Mortgage Loans on Real Estate [Abstract] | |
Residential Mortgage Loans Held in Securitization Trusts (Net) and Real Estate Owned | Residential Mortgage Loans Held in Securitization Trusts (Net) and Real Estate Owned Residential mortgage loans held in securitization trusts (net) consist of the following as of September 30, 2017 and December 31, 2016 , respectively (dollar amounts in thousands): September 30, 2017 December 31, 2016 Unpaid principal balance $ 83,068 $ 98,303 Deferred origination costs – net 532 623 Reserve for loan losses (3,725 ) (3,782 ) Total $ 79,875 $ 95,144 Allowance for Loan Losses - The following table presents the activity in the Company's allowance for loan losses on residential mortgage loans held in securitization trusts for the nine months ended September 30, 2017 and 2016 , respectively (dollar amounts in thousands): Nine Months Ended September 30, 2017 2016 Balance at beginning of period $ 3,782 $ 3,399 Provisions for loan losses 306 557 Transfer to real estate owned (303 ) — Charge-offs (60 ) (123 ) Balance at the end of period $ 3,725 $ 3,833 On an ongoing basis, the Company evaluates the adequacy of its allowance for loan losses. The Company’s allowance for loan losses as of September 30, 2017 was $3.7 million , representing 448 basis points of the outstanding principal balance of residential loans held in securitization trusts, as compared to 385 basis points as of December 31, 2016 . As part of the Company’s allowance for loan loss adequacy analysis, management will assess an overall level of allowances while also assessing credit losses inherent in each non-performing residential mortgage loan held in securitization trusts. These estimates involve the consideration of various credit related factors, including but not limited to, current housing market conditions, current loan to value ratios, delinquency status, the borrower’s current economic and credit status and other relevant factors. Real Estate Owned – The following table presents the activity in the Company’s real estate owned held in residential securitization trusts for the nine months ended September 30, 2017 and 2016 , respectively (dollar amounts in thousands): Nine Months Ended September 30, 2017 2016 Balance at beginning of period $ 150 $ 411 Write downs — — Transfer from/(to) mortgage loans held in securitization trusts 742 173 Disposal (150 ) (411 ) Balance at the end of period $ 742 $ 173 Real estate owned held in residential securitization trusts are included in receivables and other assets on the accompanying condensed consolidated balance sheets and write downs are included in recovery of loan losses in the accompanying condensed consolidated statements of operations for reporting purposes. All of the Company’s mortgage loans and real estate owned held in residential securitization trusts are pledged as collateral for the Residential CDOs issued by the Company. The Company’s net investment in the residential securitization trusts, which is the maximum amount of the Company’s investment that is at risk to loss and represents the difference between (i) the carrying amount of the mortgage loans, real estate owned and receivables held in residential securitization trusts and (ii) the amount of Residential CDOs outstanding, was $4.6 million and $4.4 million as of September 30, 2017 and December 31, 2016 , respectively. Delinquency Status of Our Residential Mortgage Loans Held in Securitization Trusts As of September 30, 2017 , we had 24 delinquent loans with an aggregate principal amount outstanding of approximately $15.4 million categorized as Residential Mortgage Loans Held in Securitization trusts (net), of which $10.3 million , or 67% , are under some form of temporary modified payment plan. The table below shows delinquencies in our portfolio of residential mortgage loans held in securitization trusts, including REO through foreclosure, as of September 30, 2017 (dollar amounts in thousands): September 30, 2017 Days Late Number of Delinquent Loans Total Unpaid Principal % of Loan Portfolio 30 - 60 — $ — — 61 - 90 — $ — — 90 + 24 $ 15,410 18.32 % Real estate owned through foreclosure 2 $ 1,045 1.24 % As of December 31, 2016 , we had 31 delinquent loans with an aggregate principal amount outstanding of approximately $18.7 million categorized as Residential Mortgage Loans Held in Securitization Trusts (net), of which $11.2 million , or 60% , are under some form of modified payment plan. The table below shows delinquencies in our portfolio of residential mortgage loans held in securitization trusts, including real estate owned through foreclosure (REO), as of December 31, 2016 (dollar amounts in thousands): December 31, 2016 Days Late Number of Delinquent Loans Total Unpaid Principal % of Loan Portfolio 30 - 60 1 $ 247 0.25 % 61 - 90 — $ — — 90 + 30 $ 18,416 18.68 % Real estate owned through foreclosure 1 $ 268 0.27 % The geographic concentrations of credit risk exceeding 5% of the total loan balances in our residential mortgage loans held in securitization trusts and real estate owned held in residential securitization trusts as of September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 December 31, 2016 New York 32.0 % 33.8 % Massachusetts 19.9 % 19.9 % New Jersey 11.1 % 10.8 % Florida 10.0 % 8.9 % Connecticut 8.1 % 7.4 % Maryland 5.3 % 5.1 % |
Residential Mortgage Loans, At
Residential Mortgage Loans, At Fair Value | 9 Months Ended |
Sep. 30, 2017 | |
Mortgage Loans on Real Estate [Abstract] | |
Residential Mortgage Loans, at Fair Value | Residential Mortgage Loans, At Fair Value Certain of the Company’s residential mortgage loans, including distressed residential mortgage loans and second lien mortgages, are presented at fair value on its condensed consolidated balance sheets as a result of a fair value election made at time of acquisition. Subsequent changes in fair value are reported in current period earnings and presented in net gain on residential mortgage loans at fair value on the Company’s condensed consolidated statements of operations. The Company’s residential mortgage loans at fair value consist of the following as of September 30, 2017 and December 31, 2016 , respectively (dollar amounts in thousands): Principal Premium/(Discount) Unrealized Gains/(Losses) Carrying Value September 30, 2017 $ 73,546 $ (4,258 ) $ 224 $ 69,512 December 31, 2016 $ 17,540 $ 229 $ — $ 17,769 The following table presents the components of net gain on residential mortgage loans at fair value for the nine months ended September 30, 2017 and 2016 : September 30, 2017 September 30, 2016 Net realized gain on payoff and sale of loans $ 493 $ — Net unrealized gains $ 224 $ — |
Distressed Residential Mortgage
Distressed Residential Mortgage Loans | 9 Months Ended |
Sep. 30, 2017 | |
Mortgage Loans on Real Estate [Abstract] | |
Distressed Residential Mortgage Loans | Distressed Residential Mortgage Loans As of September 30, 2017 and December 31, 2016 , the carrying value of the Company’s distressed residential mortgage loans, including distressed residential mortgage loans held in securitization trusts, amounts to approximately $369.7 million and $503.1 million , respectively. The Company considers its purchase price for the distressed residential mortgage loans, including distressed residential mortgage loans held in securitization trusts, to be at fair value at the date of acquisition. The Company only establishes an allowance for loan losses subsequent to acquisition. The following table presents information regarding the estimates of the contractually required payments, the cash flows expected to be collected, and the estimated fair value of the distressed residential mortgage loans acquired during the nine months ended September 30, 2017 and 2016 , respectively (dollar amounts in thousands): September 30, 2017 September 30, 2016 Contractually required principal and interest $ 76,529 $ 89,590 Non-accretable yield (6,467 ) (7,516 ) Expected cash flows to be collected 70,062 82,074 Accretable yield (58,767 ) (44,007 ) Fair value at the date of acquisition $ 11,295 $ 38,067 The following table details activity in accretable yield for the distressed residential mortgage loans, including distressed residential mortgage loans held in securitization trusts, for the nine months ended September 30, 2017 and 2016 , respectively (dollar amounts in thousands): September 30, 2017 September 30, 2016 Balance at beginning of period $ 530,511 $ 579,009 Additions 91,356 54,917 Disposals (263,475 ) (119,113 ) Accretion (16,635 ) (25,166 ) Balance at end of period (1) $ 341,757 $ 489,647 (1) Accretable yield is the excess of the distressed residential mortgage loans’ cash flows expected to be collected over the purchase price. The cash flows expected to be collected represents the Company’s estimate of the amount and timing of undiscounted principal and interest cash flows. Additions include accretable yield estimates for purchases made during the period and reclassification to accretable yield from nonaccretable yield. Disposals include distressed residential mortgage loan dispositions, which include refinancing, sale and foreclosure of the underlying collateral and resulting removal of the distressed residential mortgage loans from the accretable yield, and reclassifications from accretable to nonaccretable yield. The reclassifications between accretable and nonaccretable yield and the accretion of interest income is based on various estimates regarding loan performance and the value of the underlying real estate securing the loans. As the Company continues to update its estimates regarding the loans and the underlying collateral, the accretable yield may change. Therefore, the amount of accretable income recorded in each of the nine month periods ended September 30, 2017 and 2016 is not necessarily indicative of future results. The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of our distressed residential mortgage loans, including distressed residential mortgage loans held in securitization trusts, as of September 30, 2017 and December 31, 2016 , respectively, are as follows: September 30, 2017 December 31, 2016 Florida 10.6 % 12.2 % North Carolina 8.2 % 7.7 % Georgia 7.4 % 6.0 % California 6.6 % 8.8 % New York 5.5 % 5.4 % Ohio 5.0 % 4.8 % The Company's distressed residential mortgage loans held in securitization trusts with a carrying value of approximately $134.0 million and $195.3 million at September 30, 2017 and December 31, 2016 , respectively, are pledged as collateral for certain of the Securitized Debt issued by the Company ( see Note 10 ). In addition, distressed residential mortgage loans with a carrying value of approximately $206.3 million and $279.9 million at September 30, 2017 and December 31, 2016 , respectively, are pledged as collateral for a Master Repurchase Agreement with Deutsche Bank AG, Cayman Islands Branch ( see Note 14 ). |
Consolidated K-Series
Consolidated K-Series | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Consolidated K-Series | Consolidated K-Series The Company has elected the fair value option on the assets and liabilities held within the Consolidated K-Series, which requires that changes in valuations in the assets and liabilities of the Consolidated K-Series be reflected in the Company's condensed consolidated statements of operations. Our investment in the Consolidated K-Series is limited to the multi-family CMBS comprised of first loss tranche PO, certain IOs and mezzanine securities issued by certain K-Series securitizations with an aggregate net carrying value of $408.7 million and $314.9 million at September 30, 2017 and December 31, 2016 , respectively ( see Note 10 ). The Consolidated K-Series is comprised of six and five K-Series securitizations as of September 30, 2017 and December 31, 2016 , respectively. The condensed consolidated balance sheets of the Consolidated K-Series at September 30, 2017 and December 31, 2016 , respectively, are as follows (dollar amounts in thousands): Balance Sheets September 30, 2017 December 31, 2016 Assets Multi-family loans held in securitization trusts $ 8,399,334 $ 6,939,844 Receivables 28,103 24,098 Total Assets $ 8,427,437 $ 6,963,942 Liabilities and Equity Multi-family CDOs $ 7,990,619 $ 6,624,896 Accrued expenses 27,783 24,003 Total Liabilities 8,018,402 6,648,899 Equity 409,035 315,043 Total Liabilities and Equity $ 8,427,437 $ 6,963,942 The multi-family loans held in securitization trusts had an unpaid principal balance of approximately $8.1 billion and $6.7 billion at September 30, 2017 and December 31, 2016 , respectively. The multi-family CDOs had an unpaid principal balance of approximately $8.1 billion and $6.7 billion at September 30, 2017 and December 31, 2016 , respectively. As of September 30, 2017 and December 31, 2016 , the current weighted average interest rate on these multi-family CDOs was 4.07% and 3.97% , respectively. The Company does not have any claims to the assets or obligations for the liabilities of the Consolidated K-Series (other than those securities represented by our first loss and mezzanine tranche securities). We have elected the fair value option for the Consolidated K-Series. The net fair value of our investment in the Consolidated K-Series, which represents the difference between the carrying values of multi-family loans held in securitization trusts less the carrying value of multi-family CDOs, approximates the fair value of our underlying securities. The fair value of our underlying securities is determined using the same valuation methodology as our CMBS investments available for sale ( see Note 18 ). The condensed consolidated statements of operations of the Consolidated K-Series for the three and nine months ended September 30, 2017 and 2016 , respectively, are as follows (dollar amounts in thousands): Three Months Ended Nine Months Ended Statements of Operations 2017 2016 2017 2016 Interest income $ 76,186 $ 62,126 $ 213,242 $ 187,427 Interest expense 67,030 55,359 187,835 167,783 Net interest income 9,156 6,767 25,407 19,644 Unrealized gain on multi-family loans and debt held in securitization trusts, net 2,353 738 5,184 2,340 Net income $ 11,509 $ 7,505 $ 30,591 $ 21,984 The geographic concentrations of credit risk exceeding 5% of the total loan balances related to our CMBS investments included in investment securities available for sale and multi-family loans held in securitization trusts as of September 30, 2017 and December 31, 2016 , respectively, are as follows: September 30, 2017 December 31, 2016 California 11.8 % 13.8 % Texas 10.5 % 12.4 % New York 6.9 % 8.1 % Maryland 4.5 % 5.3 % |
Investment in Unconsolidated En
Investment in Unconsolidated Entities | 9 Months Ended |
Sep. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Entities | Investment in Unconsolidated Entities The Company's investments in unconsolidated entities accounted for under the equity method consist of the following as of September 30, 2017 and December 31, 2016 (dollar amounts in thousands): September 30, 2017 December 31, 2016 Investment Name Ownership Interest Carrying Amount Ownership Interest Carrying Amount Autumnwood Investments LLC — $ 2,020 — $ 2,092 200 RHC Hoover, LLC (1) — — 63% 8,886 BBA-EP320 II, L.L.C., BBA-Ten10 II, L.L.C., and Lexington on the Green Apartments, L.L.C. (collectively) 45% 8,222 45% 7,949 Total - Equity Method $ 10,242 $ 18,927 (1) On March 31, 2017 , the Company reconsidered its evaluation of its variable interest in 200 RHC Hoover, LLC ("Riverchase Landing") and determined that it became the primary beneficiary of Riverchase Landing. Accordingly, on this date, the Company consolidated Riverchase Landing into its condensed consolidated financial statements (s ee Note 10). The Company's investments in unconsolidated entities accounted for under the equity method using the fair value option consist of the following as of September 30, 2017 and December 31, 2016 (dollar amounts in thousands): September 30, 2017 December 31, 2016 Investment Name Ownership Interest Carrying Amount Ownership Interest Carrying Amount Morrocroft Neighborhood Stabilization Fund II, LP 11% $ 11,206 11% $ 9,732 Evergreens JV Holdings, LLC 85% 4,120 85% 3,810 Bent Tree JV Holdings, LLC (1) — — 78% 9,890 Summerchase LR Partners LLC (1) — — 80% 4,410 Lake Mary Realty Partners, LLC (1) — — 80% 7,690 The Preserve at Port Royal Venture, LLC 77% 12,850 77% 12,280 WR Savannah Holdings, LLC 90% 12,850 90% 12,520 Total - Fair Value Option $ 41,026 $ 60,332 (1) The unconsolidated entity redeemed the Company's investment in the three months ended September 30, 2017. The following table presents income from investments in unconsolidated entities for the three and nine months ended September 30, 2017 and September 30, 2016 (dollar amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, Investment Name 2017 2016 2017 2016 Autumnwood Investments LLC $ 64 $ 71 $ 137 $ 213 200 RHC Hoover, LLC — 276 275 1,091 BBA-EP320 II, L.L.C., BBA-Ten10 II, L.L.C., and Lexington on the Green Apartments, L.L.C. (collectively) 252 189 741 189 RiverBanc LLC (1) — — — 125 Kiawah River View Investors LLC ("KRVI") (1) — — — 1,250 RB Development Holding Company, LLC (1) — — — 107 RB Multifamily Investors LLC (1) — — — 2,262 Morrocroft Neighborhood Stabilization Fund II, LP 394 244 1,374 702 Evergreens JV Holdings, LLC 161 79 464 89 Bent Tree JV Holdings, LLC (2) 1,210 157 1,795 257 Summerchase LR Partners LLC (2) 194 190 556 200 Lake Mary Realty Partners, LLC (2) 2,312 238 2,745 258 The Preserve at Port Royal Venture, LLC 440 392 1,266 492 WR Savannah Holdings, LLC 405 362 1,030 422 (1) As of May 16, 2016, RiverBanc LLC, RB Development Holding Company, LLC, and RB Multifamily Investors LLC became wholly-owned subsidiaries of the Company as a result of the Company's acquisition of the remaining ownership interests in those entities held by other unaffiliated entities ( see Note 23 ). Also as of May 16, 2016, the Company consolidated KRVI into its condensed consolidated financial statements ( see Note 10 ). (2) Includes income recognized from redemption of the Company's investment during the three and nine months ended September 30, 2017. |
Mezzanine Loan and Preferred Eq
Mezzanine Loan and Preferred Equity Investments | 9 Months Ended |
Sep. 30, 2017 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | |
Mezzanine Loan and Preferred Equity Investments | Mezzanine Loan and Preferred Equity Investments Mezzanine loan and preferred equity investments consist of the following as of September 30, 2017 and December 31, 2016 (dollar amounts in thousands): September 30, 2017 December 31, 2016 Investment amount $ 124,172 $ 101,154 Deferred loan fees, net (1,594 ) (1,004 ) Total $ 122,578 $ 100,150 There were no delinquent mezzanine loan or preferred equity investments as of September 30, 2017 and December 31, 2016 . The geographic concentrations of credit risk exceeding 5% of the total mezzanine loan and preferred equity investment amounts as of September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 December 31, 2016 Texas 27.5 % 43.3 % New York 21.6 % — Virginia 12.3 % 14.9 % South Carolina 7.9 % 9.4 % Kentucky 5.9 % 7.2 % |
Use of Special Purpose Entities
Use of Special Purpose Entities and Variable Interest Entities | 9 Months Ended |
Sep. 30, 2017 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | |
Use of Special Purpose Entities and Variable Interest Entities | Use of Special Purpose Entities and Variable Interest Entities The Company uses SPEs to facilitate transactions that involve securitizing financial assets or re-securitizing previously securitized financial assets. The objective of such transactions may include obtaining non-recourse financing, obtaining liquidity or refinancing the underlying securitized financial assets on improved terms. Securitization involves transferring assets to an SPE to convert all or a portion of those assets into cash before they would have been realized in the normal course of business through the SPE’s issuance of debt or equity instruments. Investors in an SPE usually have recourse only to the assets in the SPE and depending on the overall structure of the transaction, may benefit from various forms of credit enhancement, such as over-collateralization in the form of excess assets in the SPE, priority with respect to receipt of cash flows relative to holders of other debt or equity instruments issued by the SPE, or a line of credit or other form of liquidity agreement that is designed with the objective of ensuring that investors receive principal and/or interest cash flow on the investment in accordance with the terms of their investment agreement. The Company has entered into resecuritization and financing transactions which required the Company to analyze and determine whether the SPEs that were created to facilitate the transactions are VIEs in accordance with ASC 810 , and if so, whether the Company is the primary beneficiary requiring consolidation. The Company evaluated the following resecuritization or financing transactions: 1) its Residential CDOs; 2) its multi-family CMBS re-securitization transaction and 3) its distressed residential mortgage loan securitization transaction (each a “Financing VIE” and collectively, the “Financing VIEs”) and concluded that the entities created to facilitate each of the transactions are VIEs and that the Company is the primary beneficiary of these VIEs. Accordingly, the Company continues to consolidate the Financing VIEs as of September 30, 2017 . The Company invests in multi-family CMBS consisting of PO securities that represent the first loss tranche of the securitizations from which they were issued, and certain IOs and mezzanine CMBS securities issued from Freddie Mac-sponsored multi-family K-Series securitization trusts. The Company has evaluated these CMBS investments in Freddie Mac-sponsored K-Series securitization trusts to determine whether they are VIEs and if so, whether the Company is the primary beneficiary requiring consolidation. The Company has determined that the Freddie Mac-sponsored multi-family K-Series securitization trusts are VIEs as of September 30, 2017 and December 31, 2016 , respectively. The Company also determined that it is the primary beneficiary of each VIE within the Consolidated K-Series and, accordingly, has consolidated its assets, liabilities, income and expenses in the accompanying condensed consolidated financial statements ( see Notes 2 and 7 ). Of the Company’s multi-family CMBS investments included in the Consolidated K-Series, five and four of these investments are not included as collateral to any Financing VIE as of September 30, 2017 and December 31, 2016 , respectively. In analyzing whether the Company is the primary beneficiary of the Consolidated K-Series and the Financing VIEs, the Company considered its involvement in each of the VIEs, including the design and purpose of each VIE, and whether its involvement reflected a controlling financial interest that resulted in the Company being deemed the primary beneficiary of the VIEs. In determining whether the Company would be considered the primary beneficiary, the following factors were assessed: • whether the Company has both the power to direct the activities that most significantly impact the economic performance of the VIE; and • whether the Company has a right to receive benefits or absorb losses of the entity that could be potentially significant to the VIE. On May 16, 2016, the Company acquired the remaining outstanding membership interests in RBDHC, resulting in the Company's 100% ownership of RBDHC. RBDHC owns 50% of KRVI, a limited liability company that owns developed land and residential homes under development in Kiawah Island, SC, for which RiverBanc is the manager. The Company has evaluated KRVI to determine if it is a VIE and if so, whether the Company is the primary beneficiary requiring consolidation. The Company has determined that KRVI is a VIE for which RBDHC is the primary beneficiary as the Company, collectively through its wholly-owned subsidiaries, RiverBanc and RBDHC, has both the power to direct the activities that most significantly impact the economic performance of KRVI and has a right to receive benefits or absorb losses of KRVI that could be potentially significant to KRVI. Accordingly, the Company has consolidated KRVI in its condensed consolidated financial statements with a non-controlling interest for the third-party ownership of KRVI membership interests. On March 31, 2017 , (the "Changeover Date"), the Company reconsidered its evaluation of its variable interests in Riverchase Landing and The Clusters, two variable interest entities that each own a multi-family apartment community and each in which the Company holds a preferred equity investment. The Company determined that it gained the power to direct the activities, and became primary beneficiary, of Riverchase Landing and The Clusters on the Changeover Date. Prior to the Changeover Date, the Company accounted for Riverchase Landing as an investment in an unconsolidated entity and for The Clusters as a preferred equity investment. The Company does not have any claims to the assets or obligations for the liabilities of Riverchase Landing and The Clusters. On the Changeover Date, the Company consolidated Riverchase Landing and The Clusters into its condensed consolidated financial statements. These transactions were accounted for by applying the acquisition method for business combinations. The estimated Changeover Date fair value of the consideration transferred totaled $ 12.5 million , which consisted of the estimated fair value of the Company's preferred equity investments in both Riverchase Landing and The Clusters. The Company determined the estimated fair value of its preferred equity investments in Riverchase Landing and The Clusters using assumptions for the timing and amount of expected future cash flows from the underlying multi-family apartment communities and a discount rate. The following table summarizes the estimated fair values of the assets and liabilities of Riverchase Landing and The Clusters at the Changeover Date (dollar amounts in thousands). The estimated fair values shown below are provisional measurements that are based upon preliminary financial information provided by Riverchase Landing and The Clusters and are subject to change. Cash $ 112 Operating real estate (1) 62,322 Lease intangibles (1) 5,340 Receivables and other assets 2,260 Total assets 70,034 Mortgages payable 51,570 Accrued expenses and other liabilities 1,519 Total liabilities 53,089 Non-controlling interest (2) 4,462 Net assets consolidated $ 12,483 (1) Reclassified to real estate held for sale in consolidated variable interest entities on the condensed consolidated balance sheets ( see Note 11 ). (2) Represents third party ownership of membership interests in Riverchase Landing and The Clusters. The fair value of the non-controlling interests in Riverchase Landing and The Clusters, both private companies, was estimated using assumptions for the timing and amount of expected future cash flows from the underlying multi-family apartment communities and a discount rate. The Consolidated K-Series, the Financing VIEs, KRVI, Riverchase Landing and The Clusters are collectively referred to in this footnote as "Consolidated VIEs". The following tables present a summary of the assets and liabilities of these Consolidated VIEs as of September 30, 2017 and December 31, 2016 , respectively. Intercompany balances have been eliminated for purposes of this presentation. Assets and Liabilities of Consolidated VIEs as of September 30, 2017 (dollar amounts in thousands): Financing VIEs Other VIEs Multi-family CMBS Re- securitization (1) Distressed Residential Mortgage Loan Securitization (2) Residential Mortgage Loan Securitization Multi- family CMBS (3) Other Total Cash and cash equivalents $ — $ — $ — $ — $ 1,194 $ 1,194 Investment securities available for sale, at fair value held in securitization trusts 46,623 — — — — 46,623 Residential mortgage loans held in securitization trusts (net) — — 79,875 — — 79,875 Distressed residential mortgage loans held in securitization trust (net) — 133,972 — — — 133,972 Multi-family loans held in securitization trusts, at fair value 1,174,341 — — 7,224,993 — 8,399,334 Real estate held for sale in consolidated variable interest entities — — — — 64,097 64,097 Receivables and other assets 4,217 19,795 1,585 23,959 24,701 74,257 Total assets $ 1,225,181 $ 153,767 $ 81,460 $ 7,248,952 $ 89,992 $ 8,799,352 Residential collateralized debt obligations $ — $ — $ 76,867 $ — $ — $ 76,867 Multi-family collateralized debt obligations, at fair value 1,112,651 — — 6,877,968 — 7,990,619 Securitized debt 28,946 69,425 — — — 98,371 Mortgages and notes payable in consolidated variable interest entities — — — — 57,342 57,342 Accrued expenses and other liabilities 4,200 1,766 22 23,733 2,621 32,342 Total liabilities $ 1,145,797 $ 71,191 $ 76,889 $ 6,901,701 $ 59,963 $ 8,255,541 (1) The Company classified the multi-family CMBS issued by two K-Series securitizations and held by this Financing VIE as available for sale securities as the purpose is not to trade these securities. The Financing VIE consolidated one K-Series securitization that issued certain of the multi-family CMBS owned by the Company, including its assets, liabilities, income and expenses, in its financial statements, as based on a number of factors, the Company determined that it was the primary beneficiary and has a controlling financial interest in this particular K-Series securitization ( see Note 7 ). (2) The Company engaged in this transaction for the purpose of financing distressed residential mortgage loans acquired by the Company. The distressed residential mortgage loans serving as collateral for the financing are comprised of performing, re-performing and, to a lesser extent, non-performing, fixed and adjustable-rate, fully-amortizing, interest only and balloon, seasoned mortgage loans secured by first liens on one to four family properties. Balances as of September 30, 2017 are related to a securitization transaction that closed in April 2016 that involved the issuance of $177.5 million of Class A Notes representing the beneficial ownership in a pool of performing and re-performing seasoned mortgage loans. The Company holds 5% of the Class A Notes issued as part of the securitization transaction, which were eliminated in consolidation. (3) Five of the Company’s Freddie Mac-sponsored multi-family K-Series securitizations included in the Consolidated K-Series were not held in a Financing VIE as of September 30, 2017 . Assets and Liabilities of Consolidated VIEs as of December 31, 2016 (dollar amounts in thousands): Financing VIEs Other VIEs Multi-family CMBS Re- securitization (1) Distressed Residential Mortgage Loan Securitization (2) Residential Mortgage Loan Securitization Multi- family CMBS (3) Other Total Cash and cash equivalents $ — $ — $ — $ — $ 186 $ 186 Investment securities available for sale, at fair value held in securitization trusts 43,897 — — — — 43,897 Residential mortgage loans held in securitization trusts (net) — — 95,144 — — 95,144 Distressed residential mortgage loans held in securitization trust (net) — 195,347 — — — 195,347 Multi-family loans held in securitization trusts, at fair value 1,196,835 — — 5,743,009 — 6,939,844 Receivables and other assets 4,420 13,610 912 19,753 17,759 56,454 Total assets $ 1,245,152 $ 208,957 $ 96,056 $ 5,762,762 $ 17,945 $ 7,330,872 Residential collateralized debt obligations $ — $ — $ 91,663 $ — $ — $ 91,663 Multi-family collateralized debt obligations, at fair value 1,137,002 — — 5,487,894 — 6,624,896 Securitized debt 28,332 130,535 — — — 158,867 Mortgages and notes payable in consolidated variable interest entities — — — — 1,588 1,588 Accrued expenses and other liabilities 4,400 1,336 20 19,753 13 25,522 Total liabilities $ 1,169,734 $ 131,871 $ 91,683 $ 5,507,647 $ 1,601 $ 6,902,536 (1) The Company classified the multi-family CMBS issued by two K-Series securitizations and held by this Financing VIE as available for sale securities as the purpose is not to trade these securities. The Financing VIE consolidated one K-Series securitization that issued certain of the multi-family CMBS owned by the Company, including its assets, liabilities, income and expenses, in its financial statements, as based on a number of factors, the Company determined that it was the primary beneficiary and has a controlling financial interest in this particular K-Series securitization ( see Note 7 ). (2) The Company engaged in this transaction for the purpose of financing distressed residential mortgage loans acquired by the Company. The distressed residential mortgage loans serving as collateral for the financing are comprised of performing, re-performing and, to a lesser extent, non-performing, fixed and adjustable-rate, fully-amortizing, interest only and balloon, seasoned mortgage loans secured by first liens on one to four family properties. Balances as of December 31, 2016 are related to a securitization transaction that closed in April 2016 that involved the issuance of $177.5 million of Class A Notes representing the beneficial ownership in a pool of performing and re-performing seasoned mortgage loans. The Company holds 5% of the Class A Notes issued as part of the securitization transaction, which have been eliminated in consolidation. (3) Four of the Company’s Freddie Mac-sponsored multi-family K-Series securitizations included in the Consolidated K-Series were not held in a Financing VIE as of December 31, 2016 . In October 2016, the Company repaid $55.9 million of outstanding notes from its November 2013 collateralized recourse financing, which was comprised of securities issued from three separate Freddie Mac-sponsored multi-family K-Series securitizations. In connection with the repayment of the notes, the Company terminated and de-consolidated the Financing VIE that facilitated this financing transaction and securities serving as collateral on the notes were transferred back to the Company. The following table summarizes the Company’s securitized debt collateralized by multi-family CMBS and distressed residential mortgage loans (dollar amounts in thousands): Multi-family CMBS Re-securitization (1) Distressed Residential Mortgage Loan Securitizations Principal Amount at September 30, 2017 $ 33,399 $ 70,374 Principal Amount at December 31, 2016 $ 33,553 $ 132,319 Carrying Value at September 30, 2017 (2) $ 28,946 $ 69,425 Carrying Value at December 31, 2016 (2) $ 28,332 $ 130,535 Pass-through rate of Notes issued 5.35% 4.00% (1) The Company engaged in the re-securitization transaction primarily for the purpose of obtaining non-recourse financing on a portion of its multi-family CMBS portfolio. As a result of engaging in this transaction, the Company remains economically exposed to the first loss position on the underlying multi-family CMBS transferred to the Consolidated VIE. The holders of the Note issued in this re-securitization transaction have no recourse to the general credit of the Company, but the Company does have the obligation, under certain circumstances, to repurchase assets upon the breach of certain representations and warranties. The Company will receive all remaining cash flow, if any, through its retained ownership. (2) Classified as securitized debt in the liability section of the Company’s accompanying condensed consolidated balance sheets, net of debt issuance costs. The following table presents contractual maturity information about the Financing VIEs’ securitized debt as of September 30, 2017 and December 31, 2016 , respectively (dollar amounts in thousands): Scheduled Maturity (principal amount) September 30, 2017 December 31, 2016 Within 24 months $ 70,374 $ — Over 24 months to 36 months — 132,319 Over 36 months 33,399 33,553 Total outstanding principal 103,773 165,872 Discount (4,567 ) (5,589 ) Debt Issuance Cost (835 ) (1,416 ) Carrying value $ 98,371 $ 158,867 There is no guarantee that the Company will receive any cash flows from these securitization trusts. Residential Mortgage Loan Securitization Transaction The Company has completed four residential mortgage loan securitizations (other than the distressed residential mortgage loan securitizations discussed above) since inception; the first three were accounted for as permanent financings and have been included in the Company’s accompanying condensed consolidated financial statements. The fourth was accounted for as a sale and accordingly, is not included in the Company’s accompanying condensed consolidated financial statements. Unconsolidated VIEs The Company has evaluated its multi-family CMBS investments in two Freddie Mac-sponsored K-Series securitizations as of September 30, 2017 and December 31, 2016 , respectively, and its mezzanine loan, preferred equity and other equity investments to determine whether they are VIEs and should be consolidated by the Company. Based on a number of factors, the Company determined that, except for Riverchase Landing and The Clusters, it does not have a controlling financial interest and is not the primary beneficiary of these VIEs. The following tables present the classification and carrying value of unconsolidated VIEs as of September 30, 2017 and December 31, 2016 (dollar amounts in thousands): September 30, 2017 Investment securities, available for sale, at fair value Receivables and other assets Mezzanine loan and preferred equity investments Investment in unconsolidated entities Total Multi-family CMBS $ 46,623 $ 73 $ — $ — $ 46,696 Mezzanine loan on multi-family properties — — 6,875 — 6,875 Preferred equity investment on multi-family properties — — 115,703 10,242 125,945 Equity investment in entities that invest in multi-family properties — — — 24,056 24,056 Total assets $ 46,623 $ 73 $ 122,578 $ 34,298 $ 203,572 December 31, 2016 Investment securities, available for sale, at fair value Receivables and other assets Mezzanine loan and preferred equity investments Investment in unconsolidated entities Total Multi-family CMBS $ 43,897 $ 74 $ — $ — $ 43,971 Mezzanine loan on multi-family properties — — 18,881 — 18,881 Preferred equity investment on multi-family properties — — 81,269 18,928 100,197 Equity investment in entities that invest in multi-family properties — — — 22,252 22,252 Total assets $ 43,897 $ 74 $ 100,150 $ 41,180 $ 185,301 Our maximum loss exposure on the multi-family CMBS investments, mezzanine loan and equity investments is approximately $203.6 million and $185.3 million at September 30, 2017 and December 31, 2016 , respectively. The Company’s maximum exposure does not exceed the carrying value of its investments. |
Real Estate Held for Sale in Co
Real Estate Held for Sale in Consolidated VIEs | 9 Months Ended |
Sep. 30, 2017 | |
Real Estate [Abstract] | |
Real Estate Held for Sale in Consolidated VIEs | Real Estate Held for Sale in Consolidated VIEs On March 31, 2017 , the Company determined that it became the primary beneficiary of Riverchase Landing and The Clusters, two variable interest entities that each own a multi-family apartment community and in which the Company holds preferred equity investments. Accordingly, on this date, the Company consolidated both Riverchase Landing and The Clusters into its condensed consolidated financial statements ( see Note 10). During the second quarter of 2017, Riverchase Landing determined to actively market its multifamily apartment community for sale. The Company anticipates completing a sale to a third party buyer in 2018. Accordingly, the Company classified the real estate assets in Riverchase Landing as held for sale as of September 30, 2017 in the accompanying condensed consolidated balance sheets. The Company also ceased depreciation of the operating real estate assets and amortization of the related lease intangible asset in Riverchase Landing as of June 5, 2017. During the third quarter of 2017, The Clusters determined to actively market its multifamily apartment community for sale. The Company anticipates completing a sale to a third party buyer in 2018. Accordingly, the Company classified the real estate assets in The Clusters as held for sale as of September 30, 2017 in the accompanying condensed consolidated balance sheets. The Company also ceased depreciation of the operating real estate assets and amortization of the related lease intangible asset in The Clusters as of September 1, 2017. The following is a provisional summary of the real estate held for sale in both Riverchase Landing and The Clusters as of September 30, 2017 (dollar amounts in thousands): Land $ 7,000 Building and improvements 53,435 Furniture, fixtures and equipment 2,078 Lease intangible 5,340 Real estate held for sale before accumulated depreciation and amortization 67,853 Accumulated depreciation (1) (647 ) Accumulated amortization of lease intangible (1) (3,109 ) Real estate held for sale in consolidated variable interest entities $ 64,097 (1) Depreciation and amortization expenses for the three months ended September 30, 2017 totaled $0.2 million and $0.9 million , respectively. Depreciation and amortization expenses for the nine months ended September 30, 2017 totaled $0.6 million and $3.1 million , respectively. No gain or loss was recognized by the Company or allocated to non-controlling interests related to the classification of the real estate assets as held for sale. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company enters into derivative instruments in connection with its risk management activities. These derivative instruments include interest rate swaps, swaptions and futures. The Company may also purchase or sell short TBAs, purchase put or call options on U.S. Treasury futures or invest in other types of mortgage derivative securities. Derivatives Not Designated as Hedging Instruments The following table presents the fair value of derivative instruments that were not designated as hedging instruments and their location in our condensed consolidated balance sheets at September 30, 2017 and December 31, 2016 , respectively (dollar amounts in thousands): Derivatives Not Designated Balance Sheet Location September 30, 2017 December 31, 2016 Eurodollar futures Derivative assets $ 289 $ 1,175 TBA securities Derivative assets 180,562 148,139 Interest rate swap futures Derivative assets 1,228 444 Swaptions Derivative assets 18 431 U.S. Treasury futures Derivative liabilities 193 107 Interest rate swaps (1) Derivative liabilities 274 384 (1) Includes interest rate swaps in our Agency IO portfolio. There was no netting of interest rate swaps at September 30, 2017 and December 31, 2016 . The tables below summarize the activity of derivative instruments not designated as hedges for the nine months ended September 30, 2017 and 2016 , respectively (dollar amounts in thousands): Notional Amount For the Nine Months Ended September 30, 2017 Derivatives Not Designated as Hedging Instruments December 31, 2016 Additions Settlement, Expiration or Exercise September 30, 2017 TBA securities $ 149,000 $ 1,466,000 $ (1,440,000 ) $ 175,000 U.S. Treasury futures 17,100 123,900 (135,500 ) 5,500 Interest rate swap futures (151,700 ) 413,800 (349,000 ) (86,900 ) Eurodollar futures (2,575,000 ) 5,989,000 (5,054,000 ) (1,640,000 ) Options on U.S. Treasury futures — 5,000 (5,000 ) — Swaptions 154,000 — — 154,000 Interest rate swaps 15,000 — — 15,000 Notional Amount For the Nine Months Ended September 30, 2016 Derivatives Not Designated as Hedging Instruments December 31, 2015 Additions Settlement, Expiration or Exercise September 30, 2016 TBA securities $ 222,000 $ 2,925,000 $ (2,866,000 ) $ 281,000 U.S. Treasury futures — 189,800 (146,400 ) 43,400 Interest rate swap futures (137,200 ) 718,700 (700,300 ) (118,800 ) Eurodollar futures (2,769,000 ) 4,134,000 (4,838,000 ) (3,473,000 ) Options on U.S. Treasury futures 28,000 91,000 (114,000 ) 5,000 Swaptions 159,000 — (5,000 ) 154,000 Interest rate swaps 10,000 5,000 — 15,000 The following tables present the components of realized and unrealized gains and losses related to our derivative instruments that were not designated as hedging instruments included in other income category in our condensed consolidated statements of operations for the three and nine months ended September 30, 2017 and 2016 (dollar amounts in thousands): Three Months Ended September 30, 2017 2016 Realized Gains (Losses) Unrealized Gains (Losses) Realized Gains (Losses) Unrealized Gains (Losses) TBA securities $ 1,470 $ (265 ) $ 4,981 $ (2,547 ) Eurodollar futures (1) 62 39 (1,674 ) 3,877 Interest rate swaps — 36 — 65 Swaptions — 171 — 190 U.S. Treasury and interest rate swap futures and options (583 ) 505 462 (790 ) Total $ 949 $ 486 $ 3,769 $ 795 Nine Months Ended September 30, 2017 2016 Realized Gains (Losses) Unrealized Gains (Losses) Realized Gains (Losses) Unrealized Gains (Losses) TBA securities $ 3,285 $ (1,080 ) $ 13,489 $ 883 Eurodollar futures (1) 849 (886 ) (3,180 ) 547 Interest rate swaps — 110 — 40 Swaptions — 239 — 212 U.S. Treasury and interest rate swap futures and options (999 ) 699 (2,534 ) (1,251 ) Total $ 3,135 $ (918 ) $ 7,775 $ 431 (1) At September 30, 2017 , the Eurodollar futures consist of 1,640 contracts with expiration dates ranging between December 2017 and June 2019 . The use of TBAs exposes the Company to market value risk, as the market value of the securities that the Company is required to purchase pursuant to a TBA transaction may increase or decrease from the agreed-upon purchase price. At September 30, 2017 and December 31, 2016 , our condensed consolidated balance sheets include TBA-related liabilities of $181.7 million and $148.0 million included in payable for securities purchased, respectively. Open TBA purchases and sales involving the same counterparty, same underlying deliverable and the same settlement date are reflected in our condensed consolidated financial statements on a net basis. There were no TBA sales netted against TBA purchases at September 30, 2017 . There was $114.4 million netting of TBA sales against TBA purchases of $262.4 million at December 31, 2016 . Derivatives Designated as Hedging Instruments The Company’s interest rate swaps, except interest swaps included in its Agency IO portfolio, are used to hedge the variable cash flows associated with borrowings made under our financing arrangements, including FHLBI advances until January 2016 when we repaid them, and are designated as cash flow hedges. There were no costs incurred at the inception of the Company's interest rate swaps, under which the Company agrees to pay a fixed rate of interest and receive a variable interest rate based on one month LIBOR, on the notional amount of the interest rate swaps. The Company documents its risk-management policies, including objectives and strategies, as they relate to its hedging activities, and upon entering into hedging transactions, documents the relationship between the hedging instrument and the hedged liability contemporaneously. The Company assesses, both at inception of a hedge and on an on-going basis, whether or not the hedge is “highly effective” when using the matched term basis. The Company discontinues hedge accounting on a prospective basis and recognizes changes in the fair value through earnings when: (i) it is determined that the derivative is no longer effective in offsetting cash flows of a hedged item (including forecasted transactions); (ii) it is no longer probable that the forecasted transaction will occur; or (iii) it is determined that designating the derivative as a hedge is no longer appropriate. The Company’s derivative instruments are carried on the Company’s balance sheets at fair value, as assets, if their fair value is positive, or as liabilities, if their fair value is negative. For the Company’s derivative instruments that are designated as “cash flow hedges,” changes in their fair value are recorded in accumulated other comprehensive income (loss), provided that the hedges are effective. A change in fair value for any ineffective amount of the Company’s derivative instruments would be recognized in earnings. The Company has not recognized any change in the value of its existing derivative instruments designated as cash flow hedges through earnings as a result of ineffectiveness of any of its hedges. The following table presents the fair value of derivative instruments designated as hedging instruments and their location in the Company’s condensed consolidated balance sheets at September 30, 2017 and December 31, 2016 , respectively (dollar amounts in thousands): Derivatives Designated as Hedging Instruments Balance Sheet Location Total Notional Amount September 30, 2017 December 31, 2016 Interest rate swaps Derivative asset $ 80,000 $ 18 $ — Interest rate swaps Derivative asset 65,000 — 108 Interest rate swaps Derivative liabilities 150,000 — 6 The Company has netting arrangements by counterparty with respect to its interest rate swaps. There was no netting of interest rate swaps designated as hedging instruments at September 30, 2017 . The following table presents the impact of the Company’s derivative instruments on the Company’s accumulated other comprehensive income for the nine months ended September 30, 2017 and 2016 , respectively (dollar amounts in thousands): Nine Months Ended September 30, Derivatives Designated as Hedging Instruments 2017 2016 Accumulated other comprehensive income for derivative instruments: Balance at beginning of the period $ 102 $ 304 Unrealized loss on interest rate swaps (84 ) (607 ) Balance at end of the period $ 18 $ (303 ) The Company estimates that over the next 12 months, approximately none of the net unrealized gains on the interest rate swaps will be reclassified from accumulated other comprehensive income (loss) into earnings. The following table details the impact of the Company’s interest rate swaps designated as hedging instruments included in interest expense for the three and nine months ended September 30, 2017 and 2016 , respectively (dollar amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Interest income-investment securities $ 176 $ — $ 249 $ — Interest expense-investment securities — 177 — 604 The following table presents information about our interest rate swaps (includes interest rate swaps in our Agency IO portfolio) whereby we receive floating rate payments in exchange for fixed rate payments as of September 30, 2017 and December 31, 2016 , respectively (dollar amounts in thousands): September 30, 2017 December 31, 2016 Swap Maturities Notional Amount Weighted Average Fixed Interest Rate Weighted Average Notional Amount Weighted Average Fixed Interest Rate Weighted Average 2017 $ 80,000 0.71 % 1.23 % $ 215,000 0.83 % 0.74 % 2019 10,000 2.25 % 1.32 % 10,000 2.25 % 0.97 % Total $ 90,000 0.88 % 1.24 % $ 225,000 0.90 % 0.75 % The following table presents information about our interest rate swaps in our Agency IO portfolio whereby we receive fixed rate payments in exchange for floating rate payments as of September 30, 2017 and December 31, 2016 , respectively (dollar amounts in thousands): September 30, 2017 December 31, 2016 Swap Maturities Notional Weighted Average Weighted Average Notional Weighted Average Weighted Average 2026 $ 5,000 1.80 % 1.33 % $ 5,000 1.80 % 1.00 % Total $ 5,000 1.80 % 1.33 % $ 5,000 1.80 % 1.00 % The use of derivatives exposes the Company to counterparty credit risks in the event of a default by a counterparty. If a counterparty defaults under the applicable derivative agreement, the Company may be unable to collect payments to which it is entitled under its derivative agreements and may have difficulty collecting the assets it pledged as collateral against such derivatives. The Company currently has in place with all counterparties bi-lateral margin agreements requiring a party to post collateral to the Company for any valuation deficit. This arrangement is intended to limit the Company’s exposure to losses in the event of a counterparty default. The Company is required to pledge assets under a bi-lateral margin arrangement, including either cash or Agency RMBS, as collateral for its interest rate swaps, futures contracts and TBAs, whose collateral requirements vary by counterparty and change over time based on the market value, notional amount, and remaining term of the agreement. In the event the Company is unable to meet a margin call under one of its agreements, thereby causing an event of default or triggering an early termination event under one of its agreements, the counterparty to such agreement may have the option to terminate all of such counterparty’s outstanding transactions with the Company. In addition, under this scenario, any close-out amount due to the counterparty upon termination of the counterparty’s transactions would be immediately payable by the Company pursuant to the applicable agreement. The Company believes it was in compliance with all margin requirements under its agreements as of September 30, 2017 and December 31, 2016 . The Company had $7.9 million and $6.1 million of restricted cash related to margin posted for its agreements as of September 30, 2017 and December 31, 2016 , respectively. The restricted cash held by third parties is included in receivables and other assets in the accompanying condensed consolidated balance sheets. |
Financing Arrangements, Portfol
Financing Arrangements, Portfolio Investments | 9 Months Ended |
Sep. 30, 2017 | |
Portfolio Investments | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Financing Arrangements, Portfolio Investments | Financing Arrangements, Portfolio Investments The Company has entered into repurchase agreements with third party financial institutions to finance its investment portfolio. These financing arrangements are short-term borrowings that bear interest rates typically based on a spread to LIBOR, and are secured by the securities which they finance. At September 30, 2017 , the Company had repurchase agreements with an outstanding balance of $608.3 million and a weighted average interest rate of 2.33% . At December 31, 2016 , the Company had repurchase agreements with an outstanding balance of $773.1 million and a weighted average interest rate of 1.92% . The following table presents detailed information about the Company’s borrowings under financing arrangements and associated assets pledged as collateral at September 30, 2017 and December 31, 2016 (dollar amounts in thousands): September 30, 2017 December 31, 2016 Outstanding Financing Arrangements Fair Value of Collateral Pledged Amortized Cost of Collateral Pledged Outstanding Financing Arrangements Fair Value of Collateral Pledged Amortized Cost of Collateral Pledged Agency ARMs $ 80,327 $ 85,117 $ 85,990 $ 102,088 $ 109,552 $ 110,903 Agency Fixed Rate 248,936 261,450 270,587 289,619 308,411 318,544 Agency IOs/U.S. Treasury Securities 26,048 36,702 47,913 60,862 82,153 93,819 Non Agency 48,773 64,917 63,792 113,749 150,944 149,969 CMBS (1) 204,220 283,669 221,440 206,824 294,083 216,092 Balance at end of the period $ 608,304 $ 731,855 $ 689,722 $ 773,142 $ 945,143 $ 889,327 (1) Includes first loss tranche PO and mezzanine CMBS securities with a fair value amounting to $237.8 million and $254.6 million included in the Consolidated K-Series as of September 30, 2017 and December 31, 2016 , respectively. As of September 30, 2017 and December 31, 2016 , the average days to maturity for financing arrangements were 18 days and 12 days, respectively. The Company’s accrued interest payable on outstanding financing arrangements at September 30, 2017 and December 31, 2016 amounts to $0.5 million and $1.1 million , respectively, and is included in accrued expenses and other liabilities on the Company’s condensed consolidated balance sheets. The following table presents contractual maturity information about the Company’s outstanding financing arrangements, at September 30, 2017 and December 31, 2016 (dollar amounts in thousands): Contractual Maturity September 30, 2017 December 31, 2016 Within 30 days $ 608,304 $ 729,134 Over 30 days to 90 days — 44,008 Over 90 days — — Total $ 608,304 $ 773,142 As of September 30, 2017 , the outstanding balance under our financing arrangements was funded at an advance rate of 87.8% that implies an average haircut of 12.2% . As of September 30, 2017 , the weighted average “haircut” related to our repurchase agreement financing for our Agency RMBS (excluding Agency IOs), Non-Agency RMBS, CMBS and Agency IOs was approximately 4% , 25% , 20% and 25% , respectively. In the event we are unable to obtain sufficient short-term financing through existing financings arrangements, or our lenders start to require additional collateral, we may have to liquidate our investment securities at a disadvantageous time, which could result in losses. Any losses resulting from the disposition of our investment securities in this manner could have a material adverse effect on our operating results and net profitability. At September 30, 2017 and December 31, 2016 , the Company had financing arrangements with eight counterparties. As of September 30, 2017 , we had no counterparties where the amount at risk was in excess of 5% of the Company's stockholders’ equity. At December 31, 2016 , the Company's only exposure where the amount at risk was in excess of 5% of the Company's stockholders' equity was to Deutsche Bank AG, London Branch at 5.1% . The amount at risk is defined as the fair value of securities pledged as collateral to the financing arrangement in excess of the financing arrangement liability. As of September 30, 2017 , our available liquid assets included unrestricted cash and cash equivalents, overnight deposits and unencumbered securities that we believe may be posted as margin. The Company had $101.9 million in cash and cash equivalents, $8.9 million in overnight deposits in our Agency IO portfolio included in restricted cash and $243.1 million in unencumbered investment securities to meet additional haircuts or market valuation requirements. The unencumbered securities that we believe may be posted as margin as of September 30, 2017 included $35.1 million of Agency RMBS, $139.9 million of CMBS and $68.1 million of Non-Agency RMBS and other investment securities. The cash and unencumbered securities, which collectively represent 58.2% of our financing arrangements, are liquid and could be monetized to pay down or collateralize a liability immediately. |
Financing Arrangements, Residen
Financing Arrangements, Residential Mortgage Loans | 9 Months Ended |
Sep. 30, 2017 | |
Distressed Residential Mortgage Loans | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |
Financing Arrangements, Residential Mortgage Loans | Financing Arrangements, Residential Mortgage Loans The Company has a master repurchase agreement with Deutsche Bank AG, Cayman Islands Branch in an aggregate principal amount of $200.0 million and a maximum uncommitted principal amount of $50.0 million to fund its distressed residential mortgage loan portfolio, expiring on December 13, 2017. The outstanding balance on this master repurchase agreement as of September 30, 2017 and December 31, 2016 amounts to approximately $140.3 million and $193.8 million , respectively, bearing interest at one month LIBOR plus 2.50% ( 3.74% and 3.26% at September 30, 2017 and December 31, 2016 , respectively). The Company expects to roll outstanding borrowings under this master repurchase agreement into a new repurchase agreement or other financing prior to or at maturity. In November 2015, the Company entered into a master repurchase agreement with Deutsche Bank AG, Cayman Islands Branch in an aggregate principal amount of up to $100.0 million to fund the future purchase of residential mortgage loans, expiring on May 25, 2017 . On May 24, 2017 , the Company entered into an amended master repurchase agreement that reduced the committed principal amount to $25.0 million and expires on November 24, 2018 . The outstanding balance on this master repurchase agreement as of September 30, 2017 amounts to approximately $20.7 million , bearing interest at one-month LIBOR plus 3.50% ( 4.74% at September 30, 2017 ). There was no outstanding balance on this master repurchase agreement as of December 31, 2016 . During the term of the master repurchase agreements, proceeds from the residential mortgage loans, including the Company's distressed residential mortgage loans, will be applied to pay any price differential and to reduce the aggregate repurchase price of the collateral. The financings under the master repurchase agreements are subject to margin calls to the extent the market value of the residential mortgage loans falls below specified levels and repurchase may be accelerated upon an event of default under the master repurchase agreements. The master repurchase agreements contain various covenants, including among other things, the maintenance of certain amounts of net worth, liquidity and leverage ratios. The Company is in compliance with such covenants as of November 7, 2017 . |
Residential Collateralized Debt
Residential Collateralized Debt Obligations | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Residential Collateralized Debt Obligations | Residential Collateralized Debt Obligations The Company’s Residential CDOs, which are recorded as liabilities on the Company’s condensed consolidated balance sheets, are secured by ARM loans pledged as collateral, which are recorded as assets of the Company. As of September 30, 2017 and December 31, 2016 , the Company had Residential CDOs outstanding of $76.9 million and $91.7 million , respectively. As of September 30, 2017 and December 31, 2016 , the current weighted average interest rate on these Residential CDOs was 1.85% and 1.37% , respectively. The Residential CDOs are collateralized by ARM loans with a principal balance of $83.1 million and $98.3 million at September 30, 2017 and December 31, 2016 , respectively. The Company retained the owner trust certificates, or residual interest, for three securitizations, and, as of September 30, 2017 and December 31, 2016 , had a net investment in the residential securitization trusts of $4.6 million and $4.4 million , respectively. Debt Convertible Notes On January 23, 2017 , the Company completed the issuance and sale to an underwriter, $138.0 million aggregate principal amount of its 6.25% Senior Convertible Notes due 2022 (the "Convertible Notes"), including $18.0 million aggregate principal amount of the Convertible Notes issued upon exercise of the underwriter's over-allotment option, in an underwritten public offering. The net proceeds to the Company from the sale of the Convertible Notes, after deducting the underwriter's discounts, commissions and offering expenses, were approximately $127.0 million . The Convertible Notes were issued at 96% of the principal amount, bear interest at a rate equal to 6.25% per year, payable semi-annually in arrears on January 15 and July 15 of each year, and are expected to mature on January 15, 2022 , unless earlier converted or repurchased. The Company does not have the right to redeem the Convertible Notes prior to maturity and no sinking fund is provided for the Convertible Notes. Holders of the Convertible Notes will be permitted to convert their Convertible Notes into shares of the Company's common stock at any time prior to the close of business on the business day immediately proceeding January 15, 2022 . The conversion rate for the Convertible Notes, which is subject to adjustment upon the occurrence of certain specified events, initially equals 142.7144 shares of the Company’s common stock per $1,000 principal amount of Convertible Notes, which is equivalent to a conversion price of approximately $7.01 per share of the Company’s common stock, based on a $1,000 principal amount of the Convertible Notes. The Convertible Notes are senior unsecured obligations of the Company that rank senior in right of payment to the Company's subordinated debentures and any of its other indebtedness that is expressly subordinated in right of payment to the Convertible Notes. During the nine months ended September 30, 2017 , none of the Convertible Notes were converted. As of November 7, 2017 , the Company has not been notified, and is not aware, of any event of default under the covenants for the Convertible Notes. Subordinated Debentures Subordinated debentures are trust preferred securities that are fully guaranteed by the Company with respect to distributions and amounts payable upon liquidation, redemption or repayment. The following table summarizes the key details of the Company’s subordinated debentures as of September 30, 2017 and December 31, 2016 (dollar amounts in thousands): NYM Preferred Trust I NYM Preferred Trust II Principal value of trust preferred securities $ 25,000 $ 20,000 Interest Rate Three month LIBOR plus 3.75%, resetting quarterly Three month LIBOR plus 3.95%, resetting quarterly Scheduled maturity March 30, 2035 October 30, 2035 As of November 7, 2017 , the Company has not been notified, and is not aware, of any event of default under the covenants for the subordinated debentures. Mortgages and Notes Payable in Consolidated VIEs On March 31, 2017 , the Company determined that it became the primary beneficiary of Riverchase Landing and The Clusters, two variable interest entities that each own a multi-family apartment community and in which the Company holds preferred equity investments. Accordingly, on this date, the Company consolidated both Riverchase Landing and The Clusters into its condensed consolidated financial statements (s ee Note 10) . Both Riverchase Landing's and The Clusters' real estate investments are subject to mortgages payable and the Company has no obligation for these liabilities as of September 30, 2017 . The Company also consolidates KRVI into its condensed consolidated financial statements ( see Note 10 ). KRVI's real estate under development is subject to a note payable of $6.0 million that has an unused commitment of $2.4 million as of September 30, 2017 . The Company has not been notified, and is not aware, of any event of default under the covenants of KRVI's note payable as of November 7, 2017 . The mortgages and notes payable in the consolidated VIEs are described below (dollar amounts in thousands): Assumption/Origination Date Mortgage Note Amount as of September 30, 2017 Maturity Date Interest Rate Net Deferred Finance Costs Riverchase Landing 10/2/2015 (1) $ 23,674 11/1/2022 3.88 % $ 194 The Clusters 6/30/2014 $ 27,917 7/6/2024 4.49 % $ 68 KRVI 12/16/2016 $ 6,013 12/16/2019 6.00 % $ — (1) Origination date of 10/26/2012 As of September 30, 2017 , maturities for debt on the Company's condensed consolidated balance sheet are as follows (dollar amounts in thousands): Fiscal Year Total 2017 $ — 2018 — 2019 6,013 2020 — 2021 — 2022 161,674 Thereafter 72,917 $ 240,604 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Residential Collateralized Debt Obligations The Company’s Residential CDOs, which are recorded as liabilities on the Company’s condensed consolidated balance sheets, are secured by ARM loans pledged as collateral, which are recorded as assets of the Company. As of September 30, 2017 and December 31, 2016 , the Company had Residential CDOs outstanding of $76.9 million and $91.7 million , respectively. As of September 30, 2017 and December 31, 2016 , the current weighted average interest rate on these Residential CDOs was 1.85% and 1.37% , respectively. The Residential CDOs are collateralized by ARM loans with a principal balance of $83.1 million and $98.3 million at September 30, 2017 and December 31, 2016 , respectively. The Company retained the owner trust certificates, or residual interest, for three securitizations, and, as of September 30, 2017 and December 31, 2016 , had a net investment in the residential securitization trusts of $4.6 million and $4.4 million , respectively. Debt Convertible Notes On January 23, 2017 , the Company completed the issuance and sale to an underwriter, $138.0 million aggregate principal amount of its 6.25% Senior Convertible Notes due 2022 (the "Convertible Notes"), including $18.0 million aggregate principal amount of the Convertible Notes issued upon exercise of the underwriter's over-allotment option, in an underwritten public offering. The net proceeds to the Company from the sale of the Convertible Notes, after deducting the underwriter's discounts, commissions and offering expenses, were approximately $127.0 million . The Convertible Notes were issued at 96% of the principal amount, bear interest at a rate equal to 6.25% per year, payable semi-annually in arrears on January 15 and July 15 of each year, and are expected to mature on January 15, 2022 , unless earlier converted or repurchased. The Company does not have the right to redeem the Convertible Notes prior to maturity and no sinking fund is provided for the Convertible Notes. Holders of the Convertible Notes will be permitted to convert their Convertible Notes into shares of the Company's common stock at any time prior to the close of business on the business day immediately proceeding January 15, 2022 . The conversion rate for the Convertible Notes, which is subject to adjustment upon the occurrence of certain specified events, initially equals 142.7144 shares of the Company’s common stock per $1,000 principal amount of Convertible Notes, which is equivalent to a conversion price of approximately $7.01 per share of the Company’s common stock, based on a $1,000 principal amount of the Convertible Notes. The Convertible Notes are senior unsecured obligations of the Company that rank senior in right of payment to the Company's subordinated debentures and any of its other indebtedness that is expressly subordinated in right of payment to the Convertible Notes. During the nine months ended September 30, 2017 , none of the Convertible Notes were converted. As of November 7, 2017 , the Company has not been notified, and is not aware, of any event of default under the covenants for the Convertible Notes. Subordinated Debentures Subordinated debentures are trust preferred securities that are fully guaranteed by the Company with respect to distributions and amounts payable upon liquidation, redemption or repayment. The following table summarizes the key details of the Company’s subordinated debentures as of September 30, 2017 and December 31, 2016 (dollar amounts in thousands): NYM Preferred Trust I NYM Preferred Trust II Principal value of trust preferred securities $ 25,000 $ 20,000 Interest Rate Three month LIBOR plus 3.75%, resetting quarterly Three month LIBOR plus 3.95%, resetting quarterly Scheduled maturity March 30, 2035 October 30, 2035 As of November 7, 2017 , the Company has not been notified, and is not aware, of any event of default under the covenants for the subordinated debentures. Mortgages and Notes Payable in Consolidated VIEs On March 31, 2017 , the Company determined that it became the primary beneficiary of Riverchase Landing and The Clusters, two variable interest entities that each own a multi-family apartment community and in which the Company holds preferred equity investments. Accordingly, on this date, the Company consolidated both Riverchase Landing and The Clusters into its condensed consolidated financial statements (s ee Note 10) . Both Riverchase Landing's and The Clusters' real estate investments are subject to mortgages payable and the Company has no obligation for these liabilities as of September 30, 2017 . The Company also consolidates KRVI into its condensed consolidated financial statements ( see Note 10 ). KRVI's real estate under development is subject to a note payable of $6.0 million that has an unused commitment of $2.4 million as of September 30, 2017 . The Company has not been notified, and is not aware, of any event of default under the covenants of KRVI's note payable as of November 7, 2017 . The mortgages and notes payable in the consolidated VIEs are described below (dollar amounts in thousands): Assumption/Origination Date Mortgage Note Amount as of September 30, 2017 Maturity Date Interest Rate Net Deferred Finance Costs Riverchase Landing 10/2/2015 (1) $ 23,674 11/1/2022 3.88 % $ 194 The Clusters 6/30/2014 $ 27,917 7/6/2024 4.49 % $ 68 KRVI 12/16/2016 $ 6,013 12/16/2019 6.00 % $ — (1) Origination date of 10/26/2012 As of September 30, 2017 , maturities for debt on the Company's condensed consolidated balance sheet are as follows (dollar amounts in thousands): Fiscal Year Total 2017 $ — 2018 — 2019 6,013 2020 — 2021 — 2022 161,674 Thereafter 72,917 $ 240,604 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Loans Sold to Third Parties – In the normal course of business, the Company is obligated to repurchase loans based on violations of representations and warranties in the loan sale agreements. The Company did not repurchase any loans during the nine months ended September 30, 2017 . Outstanding Litigation – The Company is at times subject to various legal proceedings arising in the ordinary course of business. As of September 30, 2017 , the Company does not believe that any of its current legal proceedings, individually or in the aggregate, will have a material adverse effect on the Company’s operations, financial condition or cash flows. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company has established and documented processes for determining fair values. Fair value is based upon quoted market prices, where available. If listed prices or quotes are not available, then fair value is based upon internally developed models that primarily use inputs that are market-based or independently-sourced market parameters, including interest rate yield curves. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of valuation hierarchy are defined as follows: Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The following describes the valuation methodologies used for the Company’s financial instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy. a. Investment Securities Available for Sale – Fair value for the investment securities in our portfolio, except the CMBS held in securitization trusts, are valued using a third-party pricing service or are based on quoted prices provided by dealers who make markets in similar financial instruments. Dealer valuations typically incorporate common market pricing methods, including a spread measurement to the Treasury curve or interest rate swap curve as well as underlying characteristics of the particular security including coupon, periodic and life caps, collateral type, rate reset period and seasoning or age of the security. If quoted prices for a security are not reasonably available from a dealer, the security will be classified as a Level 3 security and, as a result, management will determine fair value by modeling the security based on its specific characteristics and available market information. Management reviews all prices used in determining fair value to ensure they represent current market conditions. This review includes surveying similar market transactions, comparisons to interest pricing models as well as offerings of like securities by dealers. The Company's investment securities, except the CMBS held in securitization trusts, are valued based upon readily observable market parameters and are classified as Level 1 or 2 fair values. The Company’s CMBS held in securitization trusts are comprised of securities for which there are not substantially similar securities that trade frequently. The Company classifies these securities as Level 3 fair values. Fair value of the Company’s CMBS investments held in securitization trusts is based on an internal valuation model that considers expected cash flows from the underlying loans and yields required by market participants. The significant unobservable inputs used in the measurement of these investments are projected losses of certain identified loans within the pool of loans and a discount rate. The discount rate used in determining fair value incorporates default rate, loss severity and current market interest rates. The discount rate ranges from 4.5% to 10.6% . Significant increases or decreases in these inputs would result in a significantly lower or higher fair value measurement. b. Multi - Family Loans Held in Securitization Trusts – Multi-family loans held in securitization trusts are carried at fair value as a result of a fair value election and classified as Level 3 fair values. The Company determines the fair value of multi-family loans held in securitization trusts based on the fair value of its Multi-Family CDOs and its retained interests from these securitizations (eliminated in consolidation in accordance with GAAP), as the fair value of these instruments is more observable. c. Derivative Instruments – The fair value of interest rate swaps, swaptions, options and TBAs are based on dealer quotes. The fair value of future contracts are based on exchange-traded prices. The Company’s derivatives are classified as Level 1 or Level 2 fair values. d. Multi-Family CDOs – Multi-Family CDOs are recorded at fair value and classified as Level 3 fair values. The fair value of Multi-Family CDOs is determined using a third party pricing service or are based on quoted prices provided by dealers who make markets in similar financial instruments. The dealers will consider contractual cash payments and yields expected by market participants. Dealers also incorporate common market pricing methods, including a spread measurement to the Treasury curve or interest rate swap curve as well as underlying characteristics of the particular security including coupon, periodic and life caps, collateral type, rate reset period and seasoning or age of the security. e. Investment in Unconsolidated Entities – Fair value for investments in unconsolidated entities is determined based on a valuation model using assumptions for the timing and amount of expected future cash flow for income and realization events for the underlying assets in the unconsolidated entities and a discount rate. This fair value measurement is generally based on unobservable inputs and, as such, is classified as Level 3 in the fair value hierarchy. f. Residential Mortgage Loans - Certain of the Company’s acquired residential mortgage loans, including distressed residential mortgage loans and second lien mortgages, are recorded at fair value and classified as Level 3 in the fair value hierarchy. The fair value for first lien mortgages is determined using prices obtained from a third party pricing service. The fair value is based upon cash flow models that primarily use market-based inputs such as current interest and discount rates but also include unobservable market data inputs such as prepayment speeds, default rates and loss severities. The fair value for second lien residential loans is based upon an internal cash flow model that considers current interest rates, prepayment speeds, default rates, and loss severities. Any changes to the valuation methodology are reviewed by management to ensure the changes are appropriate. As markets and products develop and the pricing for certain products becomes more transparent, the Company continues to refine its valuation methodologies. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. The Company uses inputs that are current as of each reporting date, which may include periods of market dislocation, during which time price transparency may be reduced. This condition could cause the Company’s financial instruments to be reclassified from Level 2 to Level 3 in future periods. The following table presents the Company’s financial instruments measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 , respectively, on the Company’s condensed consolidated balance sheets (dollar amounts in thousands): Measured at Fair Value on a Recurring Basis at September 30, 2017 December 31, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets carried at fair value Investment securities available for sale: Agency RMBS $ — $ 415,032 $ — $ 415,032 $ — $ 526,363 $ — $ 526,363 Non-Agency RMBS — 133,022 — 133,022 — 163,284 — 163,284 U.S. Treasury Securities 2,924 — — 2,924 2,887 — — 2,887 CMBS — 76,560 46,623 123,183 — 82,545 43,897 126,442 Multi-family loans held in securitization trusts — — 8,399,334 8,399,334 — — 6,939,844 6,939,844 Residential mortgage loans, at fair value — — 69,512 69,512 — — 17,769 17,769 Derivative assets: TBA Securities — 180,562 — 180,562 — 148,139 — 148,139 Interest rate swap futures 1,228 — — 1,228 444 — — 444 Interest rate swaps — 18 — 18 — 108 — 108 Swaptions — 18 — 18 — 431 — 431 Eurodollar futures 289 — — 289 1,175 — — 1,175 Investment in unconsolidated entities — — 41,026 41,026 — — 60,332 60,332 Total $ 4,441 $ 805,212 $ 8,556,495 $ 9,366,148 $ 4,506 $ 920,870 $ 7,061,842 $ 7,987,218 Liabilities carried at fair value Multi-family collateralized debt obligations $ — $ — $ 7,990,619 $ 7,990,619 $ — $ — $ 6,624,896 $ 6,624,896 Derivative liabilities: U.S. Treasury futures 193 — — 193 107 — — 107 Interest rate swaps — 274 — 274 — 391 — 391 Total $ 193 $ 274 $ 7,990,619 $ 7,991,086 $ 107 $ 391 $ 6,624,896 $ 6,625,394 The following table details changes in valuation for the Level 3 assets for the nine months ended September 30, 2017 and 2016 , respectively (amounts in thousands): Level 3 Assets: Nine Months Ended September 30, 2017 2016 Balance at beginning of period $ 7,061,842 $ 7,214,587 Total gains/(losses) (realized/unrealized) Included in earnings (1) 38,978 215,325 Included in other comprehensive income 208 178 Purchases 1,598,018 13,326 Transfers in (2) — 52,176 Transfers out (3) — (56,756 ) Contributions 1,300 2,000 Paydowns/Distributions (139,751 ) (93,129 ) Sales (4,100 ) — Balance at the end of period $ 8,556,495 $ 7,340,018 (1) Amounts included in interest income from multi-family loans held in securitization trusts, interest income from residential mortgage loans, realized gain on distressed residential mortgage loans, net gain on residential mortgage loans at fair value, unrealized gain on multi-family loans and debt held in securitization trusts, and other income. (2) Transfers into Level 3 include investments in unconsolidated entities held by RiverBanc and RBMI for which the Company accounts under the equity method of accounting with a fair value election. These transfers in are a result of the Company's acquisition of the outstanding membership interests in RiverBanc and RBMI that were not previously owned by the Company on May 16, 2016, which resulted in consolidation of these entities into the Company's financial statements ( see Note 23 ). (3) Transfers out of Level 3 represent the Company's previously held membership interests in RBMI and RBDHC that were accounted for under the equity method of accounting with a fair value election. These transfers out are a result of the Company's acquisition of the outstanding membership interests in RBMI and RBDHC that were not previously owned by the Company on May 16, 2016, which resulted in consolidation of these entities into the Company's financial statements ( see Note 23 ) . The following table details changes in valuation for the Level 3 liabilities for the nine months ended September 30, 2017 and 2016 , respectively (amounts in thousands): Level 3 Liabilities: Nine Months Ended September 30, 2017 2016 Balance at beginning of period $ 6,624,896 $ 6,818,901 Total gains/(losses) (realized/unrealized) Included in earnings (1) (1,389 ) 186,855 Purchases 1,472,073 — Paydowns (104,961 ) (91,901 ) Balance at the end of period $ 7,990,619 $ 6,913,855 (1) Amounts included in interest expense on Multi-Family CDOs and unrealized gain on multi-family loans and debt held in securitization trusts. The following table details the changes in unrealized gains (losses) included in earnings for our Level 3 multi-family loans and debt held in securitization trusts for the three and nine months ended September 30, 2017 and 2016 , respectively (dollar amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Change in unrealized (losses) gains – assets $ (19,767 ) $ (17,722 ) $ 56,995 $ 237,934 Change in unrealized gains (losses) – liabilities 22,120 18,460 (51,811 ) (235,594 ) Net change in unrealized gains included in earnings for assets and liabilities $ 2,353 $ 738 $ 5,184 $ 2,340 The following table presents assets measured at fair value on a non-recurring basis as of September 30, 2017 and December 31, 2016 , respectively, on the condensed consolidated balance sheets (dollar amounts in thousands): Assets Measured at Fair Value on a Non-Recurring Basis at September 30, 2017 December 31, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Residential mortgage loans held in securitization trusts – impaired loans (net) $ — $ — $ 7,201 $ 7,201 $ — $ — $ 9,050 $ 9,050 Real estate owned held in residential securitization trusts — — 742 742 — — 150 150 The following table presents losses (gains) incurred for assets measured at fair value on a non-recurring basis for the three and nine months ended September 30, 2017 and 2016 , respectively, on the Company’s condensed consolidated statements of operations (dollar amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Residential mortgage loans held in securitization trusts – impaired loans (net) $ (199 ) $ 102 $ 6 $ 534 Real estate owned held in residential securitization trusts 297 46 303 23 Residential Mortgage Loans Held in Securitization Trusts – Impaired Loans (net) – Impaired residential mortgage loans held in securitization trusts are recorded at amortized cost less specific loan loss reserves. Impaired loan value is based on management’s estimate of the net realizable value taking into consideration local market conditions of the property, updated appraisal values of the property and estimated expenses required to remediate the impaired loan. Real Estate Owned Held in Residential Securitization Trusts – Real estate owned held in the residential securitization trusts are recorded at net realizable value. Any subsequent adjustment will result in the reduction in carrying value with the corresponding amount charged to earnings. Net realizable value is based on an estimate of disposal taking into consideration local market conditions of the property, updated appraisal values of the property and estimated expenses required to sell the property. The following table presents the carrying value and estimated fair value of the Company’s financial instruments at September 30, 2017 and December 31, 2016 , respectively (dollar amounts in thousands): September 30, 2017 December 31, 2016 Fair Value Hierarchy Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets: Cash and cash equivalents Level 1 $ 101,904 $ 101,904 $ 83,554 $ 83,554 Investment securities available for sale (1) Level 1, 2 or 3 674,161 674,161 818,976 818,976 Residential mortgage loans held in securitization trusts (net) Level 3 79,875 77,412 95,144 88,718 Distressed residential mortgage loans, at carrying value (2) Level 3 369,651 374,169 503,094 504,915 Residential mortgage loans, at fair value Level 3 69,512 69,512 17,769 17,769 Multi-family loans held in securitization trusts Level 3 8,399,334 8,399,334 6,939,844 6,939,844 Derivative assets Level 1 or 2 182,115 182,115 150,296 150,296 Mortgage loans held for sale (net) (3) Level 3 6,797 6,899 7,847 7,959 Mortgage loans held for investment (3) Level 3 1,760 1,900 19,529 19,641 Mezzanine loan and preferred equity investments (4) Level 3 122,578 124,436 100,150 101,408 Investment in unconsolidated entities (5) Level 3 51,268 51,342 79,259 79,390 Receivable for securities sold Level 1 1,261 1,261 — — Financial Liabilities: Financing arrangements, portfolio investments Level 2 608,304 608,304 773,142 773,142 Financing arrangements, residential mortgage loans Level 2 160,562 160,562 192,419 192,419 Residential collateralized debt obligations Level 3 76,867 72,428 91,663 85,568 Multi-family collateralized debt obligations Level 3 7,990,619 7,990,619 6,624,896 6,624,896 Securitized debt Level 3 98,371 105,768 158,867 163,884 Derivative liabilities Level 1 or 2 467 467 498 498 Payable for securities purchased Level 1 181,718 181,718 148,015 148,015 Subordinated debentures Level 3 45,000 44,989 45,000 43,132 Convertible notes Level 2 128,273 138,697 — — (1) Includes $46.6 million and $43.9 million of investment securities for sale held in securitization trusts as of September 30, 2017 and December 31, 2016 , respectively. (2) Includes distressed residential mortgage loans held in securitization trusts with a carrying value amounting to approximately $134.0 million and $195.3 million at September 30, 2017 and December 31, 2016 , respectively, and distressed residential mortgage loans with a carrying value amounting to approximately $235.7 million and $307.7 million at September 30, 2017 and December 31, 2016 , respectively. (3) Included in receivables and other assets in the accompanying condensed consolidated balance sheets. (4) Includes mezzanine loan and preferred equity investments accounted for as loans ( see Note 9 ). (5) Includes investments in unconsolidated entities accounted for under the fair value option with a carrying value of $41.0 million and $60.3 million at September 30, 2017 and December 31, 2016 , respectively ( see Note 8) . In addition to the methodology to determine the fair value of the Company’s financial assets and liabilities reported at fair value on a recurring basis and non-recurring basis, as previously described, the following methods and assumptions were used by the Company in arriving at the fair value of the Company’s other financial instruments in the table immediately above: a. Cash and cash equivalents – Estimated fair value approximates the carrying value of such assets. b. Residential mortgage loans held in securitization trusts (net) – Residential mortgage loans held in the securitization trusts are recorded at amortized cost. Fair value is based on an internal valuation model that considers the aggregated characteristics of groups of loans such as, but not limited to, collateral type, index, interest rate, margin, length of fixed-rate period, life cap, periodic cap, underwriting standards, age and credit estimated using the estimated market prices for similar types of loans. c. Distressed residential mortgage loans (net) – Fair value is estimated using pricing models taking into consideration current interest rates, loan amount, payment status and property type, and forecasts of future interest rates, home prices and property values, prepayment speeds, default, loss severities, and actual purchases and sales of similar loans. d. Receivable for securities sold – Estimated fair value approximates the carrying value of such assets. e. Mortgage loans held for sale (net) – The fair value of mortgage loans held for sale (net) are estimated by the Company based on the price that would be received if the loans were sold as whole loans taking into consideration the aggregated characteristics of the loans such as, but not limited to, collateral type, index, interest rate, margin, length of fixed interest rate period, life time cap, periodic cap, underwriting standards, age and credit. f. Mezzanine loan and preferred equity investments – Estimated fair value is determined by both market comparable pricing and discounted cash flows. The discounted cash flows are based on the underlying contractual cash flows and estimated changes in market yields. The fair value also reflects consideration of changes in credit risk since the origination or time of initial investment. g. Financing arrangements – The fair value of these financing arrangements approximates cost as they are short term in nature. h. Residential collateralized debt obligations – The fair value of these CDOs is based on discounted cash flows as well as market pricing on comparable obligations. i. Securitized debt – The fair value of securitized debt is based on discounted cash flows using management’s estimate for market yields. j. Payable for securities purchased – Estimated fair value approximates the carrying value of such liabilities. k. Subordinated debentures – The fair value of these subordinated debentures is based on discounted cash flows using management’s estimate for market yields. l. Convertible notes – The fair value is based on quoted prices provided by dealers who make markets in similar financial instruments. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity (a) Dividends on Preferred Stock The Company had 200,000,000 authorized shares of preferred stock, par value $0.01 per share, with 6,600,000 shares issued and outstanding as of September 30, 2017 and December 31, 2016 . On June 4, 2013, the Company issued 3,000,000 shares of 7.75% Series B Cumulative Redeemable Preferred Stock (“Series B Preferred Stock”), with a par value of $0.01 per share and a liquidation preference of $25 per share, in an underwritten public offering, for net proceeds of approximately $72.4 million , after deducting underwriting discounts and offering expenses. As of September 30, 2017 and December 31, 2016 , there were 6,000,000 shares of Series B Preferred Stock authorized. The Series B Preferred Stock is entitled to receive a dividend at a rate of 7.75% per year on the $25 liquidation preference and is senior to the common stock with respect to dividends and distribution of assets upon liquidation, dissolution or winding up. On April 22, 2015, the Company issued 3,600,000 shares of 7.875% Series C Cumulative Redeemable Preferred Stock (“Series C Preferred Stock”), with a par value of $0.01 per share and a liquidation preference of $25 per share, in an underwritten public offering, for net proceeds of approximately $86.9 million , after deducting underwriting discounts and offering expenses. As of September 30, 2017 and December 31, 2016 , there were 4,140,000 shares of Series C Preferred Stock authorized. The Series C Preferred Stock is entitled to receive a dividend at a rate of 7.875% per year on the $25 liquidation preference and is senior to the common stock with respect to dividends and distribution of assets upon liquidation, dissolution or winding up. The Series B Preferred Stock and Series C Preferred Stock generally do not have any voting rights, subject to an exception in the event the Company fails to pay dividends on such stock for six or more quarterly periods (whether or not consecutive). Under such circumstances, holders of the Series B Preferred Stock and Series C Preferred Stock, voting together as a single class with the holders of all other classes or series of our preferred stock upon which like voting rights have been conferred and are exercisable and which are entitled to vote as a class with the Series B Preferred Stock and Series C Preferred Stock, will be entitled to vote to elect two additional directors to the Company’s Board of Directors (the “Board”) until all unpaid dividends have been paid or declared and set apart for payment. In addition, certain material and adverse changes to the terms of the Series B Preferred Stock and Series C Preferred Stock cannot be made without the affirmative vote of holders of at least two-thirds of the outstanding shares of Series B Preferred Stock and Series C Preferred Stock. Neither the Series B Preferred Stock and Series C Preferred Stock are redeemable by the Company prior to June 4, 2018, in the case of the Series B Preferred Stock, and April 22, 2020, in the case of the Series C Preferred Stock, except under circumstances intended to preserve the Company’s qualification as a REIT and except upon the occurrence of a Change of Control (as defined in the Articles Supplementary designating the Series B Preferred Stock and Series C Preferred Stock, respectively). On and after June 4, 2018 and April 22, 2020, the Company may, at its option, redeem the Series B Preferred Stock and Series C Preferred Stock, respectively, in whole or in part, at any time or from time to time, for cash at a redemption price equal to $25.00 per share, plus any accumulated and unpaid dividends. In addition, upon the occurrence of a Change of Control, the Company may, at its option, redeem the Series B Preferred Stock and Series C Preferred Stock, in whole or in part, within 120 days after the first date, on which such Change of Control occurred, for cash at a redemption price of $25.00 per share, plus any accumulated and unpaid dividends. Each of the Series B Preferred Stock and Series C Preferred Stock has no stated maturity, is not subject to any sinking fund or mandatory redemption and will remain outstanding indefinitely unless repurchased or redeemed by the Company or converted into the Company’s common stock in connection with a Change of Control. Upon the occurrence of a Change of Control, each holder of Series B Preferred Stock and Series C Preferred Stock will have the right (unless the Company has exercised its right to redeem the Series B Preferred Stock or Series C Preferred Stock, respectively) to convert some or all of the Series B Preferred Stock or Series C Preferred Stock held by such holder into a number of shares of our common stock per share of Series B Preferred Stock or Series C Preferred Stock determined by a formula, in each case, on the terms and subject to the conditions described in the applicable Articles Supplementary for such series. From the time of original issuance of each of the Series B Preferred Stock and the Series C Preferred Stock through September 30, 2017 , the Company has declared and paid all required quarterly dividends on such series of stock. The following table presents the relevant dates with respect to quarterly cash dividends on the Series B Preferred Stock and Series C Preferred Stock declared from January 1, 2016 through September 30, 2017 : Series B Preferred Stock Series C Preferred Stock Declaration Date Record Date Payment Date Cash Dividend Per Share Declaration Date Record Date Payment Date Cash Dividend Per Share September 14, 2017 October 1, 2017 October 15, 2017 $ 0.484375 September 14, 2017 October 1, 2017 October 15, 2017 $ 0.4921875 June 14, 2017 July 1, 2017 July 15, 2017 0.484375 June 14, 2017 July 1, 2017 July 15, 2017 0.4921875 March 16, 2017 April 1, 2017 April 15, 2017 0.484375 March 16, 2017 April 1, 2017 April 15, 2017 0.4921875 December 15, 2016 January 1, 2017 January 15, 2017 0.484375 December 15, 2016 January 1, 2017 January 15, 2017 0.4921875 September 15, 2016 October 1, 2016 October 15, 2016 0.484375 September 15, 2016 October 1, 2016 October 15, 2016 0.4921875 June 16, 2016 July 1, 2016 July 15, 2016 0.484375 June 16, 2016 July 1, 2016 July 15, 2016 0.4921875 March 18, 2016 April 1, 2016 April 15, 2016 0.484375 March 18, 2016 April 1, 2016 April 15, 2016 0.4921875 (b) Dividends on Common Stock The following table presents cash dividends declared by the Company on its common stock with respect to each of the quarterly periods commencing January 1, 2016 and ended September 30, 2017 : Period Declaration Date Record Date Payment Date Cash Dividend Per Share Third Quarter 2017 September 14, 2017 September 25, 2017 October 25, 2017 $ 0.20 Second Quarter 2017 June 14, 2017 June 26, 2017 July 25, 2017 0.20 First Quarter 2017 March 16, 2017 March 27, 2017 April 25, 2017 0.20 Fourth Quarter 2016 December 15, 2016 December 27, 2016 January 26, 2017 0.24 Third Quarter 2016 September 15, 2016 September 26, 2016 October 28, 2016 0.24 Second Quarter 2016 June 16, 2016 June 27, 2016 July 25, 2016 0.24 First Quarter 2016 March 18, 2016 March 28, 2016 April 25, 2016 0.24 (c) Public Offering of Common Stock There were no underwritten public offerings of common stock during the three and nine months ended September 30, 2017 . (d) Equity Distribution Agreements On August 10, 2017, the Company entered into an equity distribution agreement (the “Equity Distribution Agreement”) with Credit Suisse Securities (USA) LLC (“Credit Suisse”), as sales agent, pursuant to which the Company may offer and sell shares of its common stock, par value $0.01 per share, having a maximum aggregate sales price of up to $100.0 million , from time to time through Credit Suisse. The Company has no obligation to sell any of the shares of common stock issuable under the Equity Distribution Agreement and may at any time suspend solicitations and offers under the Equity Distribution Agreement. The Equity Distribution Agreement replaces the Company’s prior equity distribution agreements with JMP Securities LLC and Ladenburg Thalmann & Co. Inc. dated as of March 20, 2015 and August 25, 2016, respectively (the “Prior Equity Distribution Agreements”), pursuant to which up to $39.3 million of aggregate value of the Company's common stock and Series B Preferred Stock remained available for issuance immediately prior to termination. The Prior Equity Distribution Agreements were terminated effective on August 7, 2017. There were no shares of common stock issued under the Prior Equity Distribution Agreements and the Equity Distribution Agreement during the three months ended September 30, 2017 . During the nine months ended September 30, 2017 , the Company issued 87,737 shares of its common stock under the Prior Equity Distribution Agreements, at an average sales price of $6.68 per share, resulting in total net proceeds to the Company of $0.6 million after deducting the placement fees. During the three and nine months ended September 30, 2016 , the Company issued no shares under the Prior Equity Distribution Agreements. As of September 30, 2017 , approximately $100.0 million of securities remains available for issuance under the Equity Distribution Agreement. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company calculates basic earnings per common share by dividing net income attributable to the Company's common stockholders for the period by weighted-average shares of common stock outstanding for that period. Diluted earnings per common share takes into account the effect of dilutive instruments, such as convertible notes and performance share awards, and the number of incremental shares that are to be added to the weighted-average number of shares outstanding. During the three and nine months ended September 30, 2017 , the Company's Convertible Notes were determined to be dilutive and were included in the calculation of diluted earnings per common share under the "if-converted" method. Under this method, the periodic interest expense (net of applicable taxes) for dilutive notes is added back to the numerator and the number of shares that the notes are entitled to (if converted, regardless of whether they are in or out of the money) are included in the denominator. There were no dilutive instruments for the three and nine months ended September 30, 2016 . The following table presents the computation of basic and diluted earnings per common share for the periods indicated (dollar and share amounts in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Basic Earnings per Common Share Net income attributable to Company $ 27,845 $ 23,268 $ 61,364 $ 54,654 Less: Preferred stock dividends (3,225 ) (3,225 ) (9,675 ) (9,675 ) Net income attributable to Company's common stockholders $ 24,620 $ 20,043 $ 51,689 $ 44,979 Basic weighted average common shares outstanding 111,886 109,569 111,824 109,487 Basic Earnings per Common Share $ 0.22 $ 0.18 $ 0.46 $ 0.41 Diluted Earnings per Common Share: Net income attributable to Company 27,845 23,268 61,364 54,654 Less: Preferred stock dividends (3,225 ) (3,225 ) (9,675 ) (9,675 ) Add back: Interest expense on convertible notes for the period, net of tax 2,428 — 6,982 — Net income attributable to Company's common stockholders $ 27,048 $ 20,043 $ 58,671 $ 44,979 Weighted average common shares outstanding 111,886 109,569 111,824 109,487 Net effect of assumed convertible notes conversion to common shares 19,694 — 18,107 — Diluted weighted average common shares outstanding 131,580 109,569 129,931 109,487 Diluted Earnings per Common Share $ 0.21 $ 0.18 $ 0.45 $ 0.41 |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock Based Compensation In May 2017, the Company’s stockholders approved the Company’s 2017 Equity Incentive Plan (the “2017 Plan”), with such stockholder action resulting in the termination of the Company’s 2010 Stock Incentive Plan (the “2010 Plan”). The terms of the 2017 Plan are substantially the same as the 2010 Plan. However, any outstanding awards under the 2010 Plan will continue in accordance with the terms of the 2010 Plan and any award agreement executed in connection with such outstanding awards. At September 30, 2017 , there are 94,043 common shares reserved for issuance under the 2010 Plan in connection with an outstanding performance share award. Pursuant to the 2017 Plan, eligible employees, officers and directors of the Company are offered the opportunity to acquire the Company's common stock through the award of restricted stock and other equity awards under the 2017 Plan. The maximum number of shares that may be issued under the 2017 Plan is 5,570,000 . The Company’s non-employee directors have been issued 58,920 shares under the 2017 Plan as of September 30, 2017 . The Company’s employees have been issued 6,258 shares under the 2017 Plan as of September 30, 2017 . At September 30, 2017 , there were 6,258 shares of non-vested restricted stock outstanding under the 2017 Plan. Of the common stock authorized at December 31, 2016 , 326,663 shares were reserved for issuance under the 2010 Plan. The Company’s non-employee directors have been issued 265,934 shares collectively under the 2010 and 2017 Plans as of September 30, 2017 . The Company's non-employee directors had been issued 207,014 shares under the 2010 plan as of December 31, 2016 . The Company’s employees have been issued 895,201 and 562,280 restricted shares collectively under the 2010 and 2017 Plans as of September 30, 2017 and December 31, 2016 , respectively. At September 30, 2017 and December 31, 2016 , there were 422,928 and 319,058 shares of non-vested restricted stock outstanding collectively under the 2010 and 2017 Plans. (a) Restricted Common Stock Awards During the three and nine months ended September 30, 2017 , the Company recognized non-cash compensation expense on its restricted common stock awards of $0.8 million and $1.5 million , respectively. During the three and nine months ended September 30, 2016 , the Company recognized non-cash compensation expense on its restricted common stock awards of $0.3 million and $0.7 million , respectively. Dividends are paid on all restricted common stock issued, whether those shares have vested or not. In general, non-vested restricted stock is forfeited upon the recipient's termination of employment. There were no forfeitures during the nine months ended September 30, 2017 and 2016 . A summary of the activity of the Company's non-vested restricted stock for the nine months ended September 30, 2017 and 2016 , respectively, is presented below: 2017 2016 Number of Non-vested Restricted Shares Weighted Average Per Share Grant Date Fair Value (1) Number of Non-vested Restricted Shares Weighted Average Per Share Grant Date Fair Value (1) Non-vested shares at January 1 319,058 $ 6.40 280,457 $ 7.63 Granted 332,921 6.54 160,453 5.11 Vested (229,051 ) 6.67 (121,852 ) 7.54 Non-vested shares as of September 30 422,928 6.36 319,058 6.40 Weighted-average fair value of restricted stock granted during the period 332,921 $ 6.54 160,453 $ 5.11 (1) The grant date fair value of restricted stock awards is based on the closing market price of the Company’s common stock at the grant date. At September 30, 2017 and 2016 , the Company had unrecognized compensation expense of $1.9 million and $1.5 million , respectively, related to the non-vested shares of restricted common stock under the 2010 and 2017 Plans. The unrecognized compensation expense at September 30, 2017 is expected to be recognized over a weighted average period of 2.1 years. The total fair value of restricted shares vested during the nine months ended September 30, 2017 and 2016 was approximately $1.5 million and $0.6 million , respectively. The requisite service period for restricted shares at issuance is three years. (b) Performance Share Awards In May 2015, the Compensation Committee of the Board of Directors approved a performance share award (“PSA”) under the 2010 Plan to the Company’s Chairman and Chief Executive Officer. At the time of grant, the target number of shares pursuant to the PSA consisted of 89,629 shares of common stock. The PSA had a grant date fair value of approximately $0.4 million . The PSA award under which the number of underlying shares of Company common stock that can be earned will generally range from 0% to 200% of the target number of shares, with the target number of shares increased to reflect the value of the reinvestment of any dividends declared on Company common stock during the vesting period. Vesting of the PSA will occur at the end of three years based on three -year TSR, as follows: • If three -year TSR is less than 33%, then 0% of the PSA will vest; • If three -year TSR is greater than or equal to 33% and the TSR is not in the bottom quartile of an identified peer group, then 100% of the PSA will vest; • If three -year TSR is greater than or equal to 33% and the TSR is in the top quartile of an identified peer group, then 200% of the PSA will vest; • If three -year TSR is greater than or equal to 33% and the TSR is in the bottom quartile of an identified peer group, then 50% of the PSA will vest. TSR is defined, with respect to the Company and each member of the identified peer group, as applicable, as the average annual total shareholder return based on common stock price appreciation/depreciation during the applicable measurement period or until the date of a change of control, whichever first occurs, plus the value on the last day of the applicable measurement period or the date of a change of control of common shares if all cash dividends declared on a common share during such period were reinvested in additional common shares. Under the terms of the agreement pursuant to which the PSA was granted (the "PSA Agreement"), the PSA is subject to the terms and conditions of the 2010 Plan and in the event of any conflict between the terms of the 2010 Plan and the PSA Agreement, the terms of the 2010 Plan govern. The 2010 Plan provides that the Compensation Committee may determine that the amount payable when an award of performance shares is earned may be settled in cash, by the issuance of shares, or a combination thereof. The maximum number of shares which may be issued under the PSA is limited to 94,043 shares. In the event the PSA is earned at a level that would cause the Company to issue more than 94,043 shares, the dollar value of the PSA earned in excess of 94,043 shares will be paid in cash, subject to the terms of the 2010 Plan. The grant date fair value of the PSA was determined through a Monte-Carlo simulation of the Company’s common stock total shareholder return and the common stock total shareholder return of its peer companies to determine the TSR of the Company’s common stock relative to its peer companies over a future period of three years. For the PSA granted in 2015, the inputs used by the model to determine the fair value are (i) historical stock return volatilities of the Company and its peer companies over the most recent three year period, (ii) a risk free rate based on the three year U.S. Treasury rate on grant date, and (iii) historical pairwise stock return correlations between the Company and its peer companies over the most recent three year period. Compensation expense related to the PSA was $32.0 thousand and $95.1 thousand for the three and nine months ended September 30, 2017 . As of September 30, 2017 , there was $0.1 million of unrecognized compensation cost related to the non-vested portion of the PSA. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three and nine months ended September 30, 2017 and September 30, 2016 , the Company qualified to be taxed as a REIT under the Code for U.S. federal income tax purposes. As long as the Company qualifies as a REIT, the Company generally will not be subject to U.S. federal income taxes on its taxable income to the extent it annually distributes at least 100% of its taxable income to stockholders and does not engage in prohibited transactions. Certain activities the Company performs may produce income that will not be qualifying income for REIT purposes. The Company has designated its TRSs to engage in these activities. The tables below reflect the taxes accrued at the TRS level and the tax attributes included in the consolidated financial statements. The income tax provision for the three and nine months ended September 30, 2017 and September 30, 2016 is comprised of the following components (dollar amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Current income tax expense $ 541 $ 326 $ 2,280 $ 2,581 Deferred income tax (benefit) expense (34 ) (163 ) (93 ) 139 Total provision $ 507 $ 163 $ 2,187 $ 2,720 Deferred Tax Assets and Liabilities The major sources of temporary differences included in the deferred tax assets and their deferred tax effect as of September 30, 2017 and December 31, 2016 are as follows (dollar amounts in thousands): September 30, 2017 December 31, 2016 Deferred tax assets Net operating loss carryforward $ 2,174 $ 2,287 Net capital loss carryforward — 1,123 GAAP/Tax basis differences 3,556 3,059 Total deferred tax assets (1) 5,730 6,469 Deferred tax liabilities Deferred tax liabilities 200 303 Total deferred tax liabilities (2) 200 303 Valuation allowance (1) (5,248 ) (5,978 ) Total net deferred tax asset $ 282 $ 188 (1) Included in receivables and other assets in the accompanying condensed consolidated balance sheets. (2) Included in accrued expenses and other liabilities in the accompanying condensed consolidated balance sheets. As of September 30, 2017 , the Company, through wholly owned TRSs, had incurred net operating losses in the aggregate amount of approximately $4.8 million . The Company’s carryforward net operating losses will expire between 2033 and 2037 if they are not offset by future taxable income. At September 30, 2017 , the Company has recorded a valuation allowance against certain deferred tax assets as management does not believe that it is more likely than not that these deferred tax assets will be realized. The Company files income tax returns with the U.S. federal government and various state and local jurisdictions. The Company's federal, state and city income tax returns are subject to examination by the Internal Revenue Service and related tax authorities generally for three years after they were filed. The Company has assessed its tax positions for all open years and concluded that there are no material uncertainties to be recognized. In addition, based on the Company’s evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in the Company’s financial statements. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations On May 16, 2016 (the “Acquisition Date”), the Company acquired the outstanding common equity interests in RiverBanc, RBMI, and RBDHC (collectively, the “Acquirees”) that were not previously owned by the Company through the consummation of separate membership interest purchase agreements, thereby increasing the Company's ownership of each of these entities to 100% . The results of the Acquirees’ operations have been included in the condensed consolidated financial statements since the Acquisition Date. Prior to the Acquisition Date, the Company owned 20.0% , 67.19% and 62.5% of the outstanding common equity interests in RiverBanc, RBMI and RBDHC, respectively. RiverBanc is an investment management firm that was founded in 2010 and has sourced and managed direct and indirect investments in multi-family apartment properties on behalf of both public and private institutional investors, including the Company, RBMI and RBDHC. Prior to the completion of the RiverBanc acquisition, RiverBanc had served as an external manager of the Company pursuant to an investment management agreement, for which it received base management and incentive fees. In connection with the acquisition, the Company terminated its investment management agreement with RiverBanc on May 17, 2016. As of March 31, 2016, RiverBanc managed approximately $371.5 million of the Company’s capital. In acquiring a 100% ownership interest in RiverBanc, the Company has internalized the management of its multi-family investments. The Company has achieved certain synergies related to processes and personnel as a result of this internalization. Prior to the completion of the acquisitions described above, Donlon Family LLC beneficially owned 59.40% , 5.47% and 6.25% of the outstanding common equity interests in RiverBanc, RMI and RBDHC, respectively. The estimated Acquisition Date fair value of the consideration transferred totaled $53.5 million, which consisted of the following (dollar amounts in thousands): Cash (1) $ 29,073 Contingent consideration 3,800 Fair value of previously held membership interests 20,608 Total consideration transferred $ 53,481 (1) Includes $16.3 million paid to Donlon Family LLC and reflects a post-closing working capital adjustment of $20 thousand delivered to the sellers of RiverBanc on July 15, 2016. Prior to the Acquisition Date, the Company accounted for its previously held membership interests in the Acquirees as equity method investments, utilizing the fair value election for both RBMI and RBDHC. The Acquisition Date fair value of the Company's previously held membership interests in the Acquirees was $20.6 million and is included in the measurement of consideration transferred. In the year ended December 31, 2016 , the Company recorded a net gain as a result of remeasuring its previously held membership interests in RiverBanc, RBMI, and RBDHC totaling $5.0 million. This net gain was included in other income on the Company's consolidated statements of operations for the year ended December 31, 2016 . The Company determined the estimated fair value of its previously held membership interests in RiverBanc using assumptions for the timing and amount of expected net future cash flow for the managed portfolio and a discount rate. The Company determined the estimated fair value of its previously held membership interests in RBMI and RBDHC using assumptions for the timing and amount of expected future cash flow for income and realization events for the underlying assets and a discount rate. The contingent consideration includes two components: • A cash holdback in the amount of $3.0 million to be released to Donlon Family LLC upon the purchase of $3.0 million in Company common shares on the open market within 90 days of the Acquisition Date. This cash holdback was paid to Donlon Family LLC on June 10, 2016 upon satisfaction of the conditions to the release of this holdback. • A severance holdback in the amount of $0.8 million to fund the aggregate amount of all severance compensation and severance benefits to be paid or provided to current or former RiverBanc employees as a result of the acquisition. The severance holdback was settled in cash and paid to a separated employee on June 30, 2016 and the holdback amount in excess of actual severance costs was delivered to the sellers of RiverBanc on July 15, 2016. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed by the Company at the Acquisition Date (dollar amounts in thousands). The membership interest purchase agreement for the acquisition of RiverBanc included a post-closing working capital adjustment that was calculated at $20 thousand and settled with the sellers of RiverBanc on July 15, 2016. Additionally, the excess severance holdback amount described above was settled with the sellers of RiverBanc on July 15, 2016. The Company engaged a third party for valuations of certain intangible assets. Cash $ 4,325 Investment in unconsolidated entities 52,176 Mezzanine loan and preferred equity investments 23,638 Real estate under development (1) 14,922 Receivables and other assets 911 Intangible assets (1) 3,490 Total identifiable assets acquired 99,462 Construction loan payable (2) 8,499 Accrued expenses and other liabilities 2,864 Total liabilities assumed 11,363 Preferred equity (3) 56,697 Net identifiable assets acquired 31,402 Goodwill (4) 25,222 Gain on bargain purchase (5) (65 ) Non-controlling interest (6) (3,078 ) Net assets acquired $ 53,481 (1) Included in receivables and other assets on the condensed consolidated balance sheets. (2) Construction loan payable to the Company is eliminated on the condensed consolidated balance sheets. (3) Includes $40.4 million of preferred equity owned by the Company that is eliminated on the condensed consolidated balance sheets. Remaining $16.3 million of preferred equity owned by third parties was redeemed on June 10, 2016 and June 24, 2016. (4) Goodwill recognized in the acquisition of RiverBanc. (5) Gain on bargain purchase recognized in the acquisitions of RBMI and RBDHC in the year ended December 31, 2016 . (6) Represents third-party ownership of KRVI membership interests ( see Note 10 ). The Company consolidates its investment in KRVI. The third-party ownership in KRVI is represented in the condensed consolidated financial statements and the pro forma net income attributable to the Company's common stockholders as non-controlling interests. The fair value of the non-controlling interests in KRVI was estimated to be $3.1 million. The fair value of the non-controlling interests in KRVI, a private company, was estimated using assumptions for the timing and amount of expected future cash flow for income and realization events for the underlying real estate. The $3.5 million of intangible assets relates to the RiverBanc acquisition and was recognized at estimated fair value on the Acquisition Date. Intangible assets include an acquired trade name, acquired technology, and employment/non-compete agreements with useful lives ranging from 1 to 10 years. The $25.2 million of goodwill recognized is attributable primarily to expected synergies and economies of scale from combining with RiverBanc and the assembled workforce of RiverBanc. For the Company’s ongoing evaluation of goodwill for impairment in accordance with ASC 350, Intangibles - Goodwill and Other , the Company’s multi-family investment portfolio (inclusive of RiverBanc) will be considered a reporting unit. As of December 31, 2016 , there were changes in the recognized amounts of goodwill resulting from the acquisition of RiverBanc as a result of payment of the post-closing working capital adjustment of $20 thousand and adjustments to the estimated fair value of intangible assets in the amount of $0.4 million . The Company evaluated goodwill as of October 1, 2016 and no impairment was indicated. The acquisition of both RBMI and RBDHC was negotiated directly with the sellers and the fair value of identifiable assets acquired and liabilities assumed exceed the fair value of the consideration transferred. Subsequently, the Company reassessed the identification and recognition of identifiable assets acquired and liabilities assumed, the Company’s previously held membership interests, and the consideration transferred and concluded that all items were recognized and that the valuation procedures and measurements were appropriate. Accordingly, the Company recorded a net gain on bargain purchase of $0.1 million that was included in other income on the Company’s consolidated statements of operations for the year ended December 31, 2016 . The amount of revenue of the Acquirees included in the Company’s consolidated statements of operations from the Acquisition Date to the period ended December 31, 2016 was $5.3 million. The following represents the pro forma consolidated revenue and net income attributable to the Company's common stockholders as if the Acquirees had been included in the consolidated results of the Company for the nine months ended September 30, 2016 (dollar amounts in thousands): For the Nine Months Ended September 30, 2016 Revenue $ 272,074 Net income attributable to Company's common stockholders $ 42,077 Basic pro forma earnings per share $ 0.38 Diluted pro forma earnings per share $ 0.38 These amounts have been calculated after applying the Company’s accounting policies and adjustments for consolidation and amortization that would have been charged assuming the estimated fair value adjustments to intangible assets had been applied on January 1, 2015. Material, nonrecurring pro forma adjustments directly attributable to the business combinations have been included in the pro forma consolidated revenue and net income attributable to the Company's common stockholders shown above as if the transaction occurred on January 1, 2015. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company terminated its management agreement with RiverBanc on May 17, 2016 as a result of the Company's acquisition of the remaining 80% membership interest in RiverBanc, which resulted in consolidation of RiverBanc into the Company's financial statements ( see Note 23 ). Prior to May 16, 2016, RiverBanc sourced and managed direct and indirect investments in multi-family properties on behalf of the Company pursuant to a management agreement entered into on April 5, 2011 and amended on March 13, 2013. The amended and restated management agreement had an effective date of January 1, 2013 and had an initial term that expired on December 31, 2015 and was subject to annual automatic one -year renewals (subject to any notice of termination). Prior to May 16, 2016, the Company owned a 20% membership interest in RiverBanc. For the nine months ended September 30, 2016 , the Company recognized approximately $0.1 million in equity income related to its investment in RiverBanc. For the nine months ended September 30, 2016 , the Company expensed $1.8 million in fees to RiverBanc. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 13, 2017, the Company closed on an underwritten public offering of 5,400,000 shares of the Company's 8.00% Series D Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, $0.01 par value per share ("Series D Preferred Stock"), including 400,000 shares of Series D Preferred Stock issued pursuant to the partial exercise of the underwriters' option to purchase up to 750,000 additional shares. Holders of Series D Preferred Stock will be entitled to receive cumulative cash dividends (i) from and including the original issue date to, but excluding, October 15, 2027 at a fixed rate equal to 8.00% per annum of the $25.00 per share liquidation preference (equivalent to $2.00 per annum per share) and (ii) from and including October 15, 2027 at a floating rate equal to three-month LIBOR plus a spread of 5.695% per annum of the $25.00 per share liquidation preference. The Series D Preferred Stock is not redeemable by the Company prior to October 15, 2027, except under circumstances where it is necessary to preserve the Company’s qualification as a REIT for U.S. federal income tax purposes and except in certain instances upon the occurrence of a change of control. The issuance and sale of the 5,400,000 shares of Series D Preferred Stock resulted in total net proceeds to the Company of approximately $130.4 million after deduction of underwriting discounts and commissions and estimated offering expenses. On October 27, 2017, the Company purchased $36.7 million in first loss tranche PO and certain IO securities issued by a Freddie Mac-sponsored multi-family K-Series securitization collateralized by multi-family loans in the amount of approximately $1.3 billion . |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Basis of Presentation | Basis of Presentation – The accompanying condensed consolidated balance sheet as of December 31, 2016 has been derived from audited financial statements. The accompanying condensed consolidated balance sheet as of September 30, 2017 , the accompanying condensed consolidated statements of operations for the three and nine months ended September 30, 2017 and 2016 , the accompanying condensed consolidated statements of comprehensive income for the three and nine months ended September 30, 2017 and 2016 , the accompanying condensed consolidated statement of changes in stockholders’ equity for the nine months ended September 30, 2017 and the accompanying condensed consolidated statements of cash flows for the nine months ended September 30, 2017 and 2016 are unaudited. In our opinion, all adjustments (which include only normal recurring adjustments) necessary to present fairly the Company’s financial position, results of operations and cash flows have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with Article 10 of Regulation S-X and the instructions to Form 10-Q. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016 , as filed with the U.S. Securities and Exchange Commission (“SEC”). The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the operating results for the full year. The accompanying condensed consolidated financial statements have been prepared on the accrual basis of accounting in accordance with GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management has made significant estimates in several areas, including valuation of its CMBS investments, multi-family loans held in securitization trusts and multi-family CDOs, as well as, income recognition on distressed residential mortgage loans purchased at a discount. Although the Company’s estimates contemplate current conditions and how it expects them to change in the future, it is reasonably possible that actual conditions could be different than anticipated in those estimates, which could materially impact the Company’s results of operations and its financial condition. |
Reclassifications | Reclassifications – Certain prior period amounts have been reclassified in the condensed consolidated financial statements to conform to current period presentation. |
Principles of Consolidation and Variable Interest Entities | Principles of Consolidation and Variable Interest Entities – The accompanying condensed consolidated financial statements of the Company include the accounts of all its subsidiaries which are majority-owned, controlled by the Company or a variable interest entity ("VIE") where the Company is the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation. A VIE is an entity that lacks one or more of the characteristics of a voting interest entity. A VIE is defined as an entity in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The Company consolidates a VIE when it is the primary beneficiary of such VIE, herein referred to as a "Consolidated VIE". As primary beneficiary, the Company has both the power to direct the activities that most significantly impact the economic performance of the VIE and a right to receive benefits or absorb losses of the entity that could be potentially significant to the VIE. The Company is required to reconsider its evaluation of whether to consolidate a VIE each reporting period, based upon changes in the facts and circumstances pertaining to the VIE. |
Business Combinations | Business Combinations – The Company evaluates each purchase transaction to determine whether the acquired assets meet the definition of a business. The Company accounts for business combinations by applying the acquisition method in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations ("ASC 805"). Transaction costs related to acquisition of a business are expensed as incurred and excluded from the fair value of consideration transferred. The identifiable assets acquired, liabilities assumed and non-controlling interests, if any, in an acquired entity are recognized and measured at their estimated fair values. The excess of the fair value of consideration transferred over the fair values of identifiable assets acquired, liabilities assumed and non-controlling interests, if any, in an acquired entity, net of fair value of any previously held interest in the acquired entity, is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets and liabilities. Contingent consideration is classified as a liability or equity, as applicable. Contingent consideration in connection with the acquisition of a business is measured at fair value on acquisition date, and unless classified as equity, is remeasured at fair value each reporting period thereafter until the consideration is settled, with changes in fair value included in net income. Net cash paid to acquire a business is classified as investing activities on the accompanying condensed consolidated statements of cash flows. |
Investment Securities Available for Sale | Investment Securities Available for Sale – The Company's investment securities, where the fair value option has not been elected and which are reported at fair value with unrealized gains and losses reported in Other Comprehensive Income (“OCI”), include Agency RMBS, non-Agency RMBS and CMBS. The Company has elected the fair value option for its Agency IOs, U.S. Treasury securities, and certain Agency ARMs and Agency fixed-rate RMBS within the Agency IO portfolio, which measures unrealized gains and losses through earnings in the accompanying condensed consolidated statements of operations. The fair value option was elected for these investment securities to better match the accounting for these investment securities with the related derivative instruments within the Agency IO portfolio, which are not designated as hedging instruments for accounting purposes. The Company generally intends to hold its investment securities until maturity; however, from time to time, it may sell any of its securities as part of the overall management of its business. As a result, our investment securities are classified as available for sale securities. Realized gains and losses recorded on the sale of investment securities available for sale are based on the specific identification method and included in realized gain (loss) on investment securities and related hedges in the accompanying condensed consolidated statements of operations. Interest income on our investment securities available for sale is accrued based on the outstanding principal balance and their contractual terms. Purchase premiums or discounts on investment securities are amortized or accreted to interest income over the estimated life of the investment securities using the effective yield method. Adjustments to amortization are made for actual prepayment activity. Interest income on certain of our credit sensitive securities, such as our CMBS that were purchased at a discount to par value, is recognized based on the security’s effective interest rate. The effective interest rate on these securities is based on management’s estimate of the projected cash flows from each security, which are estimated based on assumptions related to fluctuations in interest rates, prepayment speeds and the timing and amount of credit losses. On at least a quarterly basis, management reviews and, if appropriate, adjusts its cash flow projections based on input and analysis received from external sources, internal models, and its judgment about interest rates, prepayment rates, the timing and amount of credit losses, and other factors. Changes in cash flows from those originally projected, or from those estimated at the last evaluation, may result in a prospective change in the yield/interest income recognized on these securities. A portion of the purchase discount on the Company’s first loss tranche PO multi-family CMBS is designated as non-accretable purchase discount or credit reserve, which partially mitigates the Company’s risk of loss on the mortgages collateralizing such multi-family CMBS, and is not expected to be accreted into interest income. The amount designated as a credit reserve may be adjusted over time, based on the actual performance of the security, its underlying collateral, actual and projected cash flow from such collateral, economic conditions and other factors. If the performance of a security with a credit reserve is more favorable than forecasted, a portion of the amount designated as credit reserve may be accreted into interest income over time. Conversely, if the performance of a security with a credit reserve is less favorable than forecasted, the amount designated as credit reserve may be increased, or impairment charges and writedowns of such securities to a new cost basis could be required. The Company accounts for debt securities that are of high credit quality (generally those rated AA or better by a Nationally Recognized Statistical Rating Organization, or NRSRO) at date of acquisition in accordance with ASC 320-10, Investments - Debt and Equity Securities ("ASC 320-10"). The Company accounts for debt securities that are not of high credit quality (i.e., those whose risk of loss is less than remote) or securities that can be contractually prepaid such that we would not recover our initial investment at the date of acquisition in accordance with ASC 325-40, Investments - Beneficial Interests in Securitized Financial Assets ("ASC 325-40"). The Company considers credit ratings, the underlying credit risk and other market factors in determining whether the debt securities are of high credit quality; however, securities rated lower than AA or an equivalent rating are not considered of high credit quality and are accounted for in accordance with ASC 325-40. If ratings are inconsistent among NRSROs, the Company uses the lower rating in determining whether the securities are of high credit quality. The Company assesses its impaired securities on at least a quarterly basis and designates such impairments as either “temporary” or “other-than-temporary” by applying the guidance prescribed in ASC 320-10. When the fair value of an investment security is less than its amortized cost as of the reporting balance sheet date, the security is considered impaired. If the Company intends to sell an impaired security, or it is more likely than not that it will be required to sell the impaired security before its anticipated recovery, then it must recognize an other-than-temporary impairment through earnings equal to the entire difference between the investment’s amortized cost and its fair value as of the balance sheet date. If the Company does not expect to sell an other-than-temporarily impaired security, only the portion of the other-than-temporary impairment related to credit losses is recognized through earnings with the remainder recognized as a component of other comprehensive income (loss) on the accompanying condensed consolidated balance sheets. Impairments recognized through other comprehensive income (loss) do not impact earnings. Following the recognition of an other-than-temporary impairment through earnings, a new cost basis is established for the security, which may not be adjusted for subsequent recoveries in fair value through earnings. However, other-than-temporary impairments recognized through earnings may be accreted back to the amortized cost basis of the security on a prospective basis through interest income. The determination as to whether an other-than-temporary impairment exists and, if so, the amount considered other-than-temporarily impaired is subjective, as such determinations are based on both factual and subjective information available at the time of assessment as well the Company’s estimates of the future performance and cash flow projections. As a result, the timing and amount of other-than-temporary impairments constitute material estimates that are susceptible to significant change. In determining the other-than temporary impairment related to credit losses for securities that are not of high credit quality, the Company compares the present value of the remaining cash flows expected to be collected at the prior reporting date or purchase date, whichever is most recent, against the present value of the cash flows expected to be collected at the current financial reporting date. The Company considers information available about the past and expected future performance of underlying mortgage loans, including timing of expected future cash flows, prepayment rates, default rates, loss severities and delinquency rates. |
Residential Mortgage Loans Held in Securitization Trusts | Residential Mortgage Loans Held in Securitization Trusts – Residential mortgage loans held in securitization trusts are comprised of certain ARM loans transferred to Consolidated VIEs that have been securitized into sequentially rated classes of beneficial interests. The Company accounted for these securitization trusts as financings which are consolidated into the Company’s financial statements. Residential mortgage loans held in securitization trusts are carried at their unpaid principal balances, net of unamortized premium or discount, unamortized loan origination costs and allowance for loan losses. Interest income is accrued and recognized as revenue when earned according to the terms of the mortgage loans and when, in the opinion of management, it is collectible. The accrual of interest on loans is discontinued when, in management’s opinion, the interest is not collectible in the normal course of business, but in all cases when payment becomes greater than 90 days delinquent. Loans return to accrual status when principal and interest become current and are anticipated to be fully collectible. We establish an allowance for loan losses based on management's judgment and estimate of credit losses inherent in our portfolio of residential mortgage loans held in securitization trusts. Estimation involves the consideration of various credit-related factors, including but not limited to, macro-economic conditions, current housing market conditions, loan-to-value ratios, delinquency status, historical credit loss severity rates, purchased mortgage insurance, the borrower's current economic condition and other factors deemed to warrant consideration. Additionally, we look at the balance of any delinquent loan and compare that to the current value of the collateralizing property. We utilize various home valuation methodologies including appraisals, broker pricing opinions, internet-based property data services to review comparable properties in the same area or consult with a broker in the property's area. |
Residential Mortgage Loans, at fair value | Residential Mortgage Loans, at fair value – Certain of the Company’s acquired residential mortgage loans, including distressed residential mortgage loans and second lien mortgages, are presented at fair value on its condensed consolidated balance sheets as a result of a fair value election made at the time of acquisition pursuant to ASC 825. Changes in fair value are recorded in current period earnings in net gain on residential mortgage loans at fair value in the Company's condensed consolidated statements of operations. Premiums and discounts associated with the purchase of residential mortgage loans, at fair value are amortized or accreted into interest income over the life of the related loan using the effective interest method. Any premium amortization or discount accretion is reflected as a component of interest income, residential mortgage loans in the Company's condensed consolidated statements of operations. |
Acquired Distressed Residential Mortgage Loans | Acquired Distressed Residential Mortgage Loans – Distressed residential mortgage loans are comprised of pools of fixed and adjustable rate residential mortgage loans acquired by the Company at a discount, with evidence of credit deterioration since their origination and where it is possible that the Company will not collect all contractually required principal payments. Distressed residential mortgage loans held in securitization trusts are distressed residential mortgage loans transferred to Consolidated VIEs that have been securitized into beneficial interests. The Company accounted for these securitization trusts as financings which are consolidated into the Company’s financial statements. Acquired distressed residential mortgage loans that have evidence of deteriorated credit quality at acquisition are accounted for under ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality ("ASC 310-30"). Management evaluates whether there is evidence of credit quality deterioration as of the acquisition date using indicators such as past due or modified status, risk ratings, recent borrower credit scores and recent loan-to-value percentages. Acquired distressed residential mortgage loans are recorded at fair value at the date of acquisition, with no allowance for loan losses. Under ASC 310-30, the acquired loans may be accounted for individually or aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. A pool is accounted for as a single asset with a single composite interest rate and an expectation of aggregate cash flows. Once a pool is assembled, it is treated as if it was one loan for purposes of applying the accounting guidance. Under ASC 310-30, the excess of cash flows expected to be collected over the carrying amount of the loans, referred to as the “accretable yield,” is accreted into interest income over the life of the loans in each pool or individually using a level yield methodology. Accordingly, our acquired distressed residential mortgage loans accounted for under ASC 310-30 are not subject to classification as nonaccrual classification in the same manner as our residential mortgage loans that were not distressed when acquired by us. Rather, interest income on acquired distressed residential mortgage loans relates to the accretable yield recognized at the pool level or on an individual loan basis, and not to contractual interest payments received at the loan level. The difference between contractually required principal and interest payments and the cash flows expected to be collected, referred to as the “nonaccretable difference,” includes estimates of both the impact of prepayments and expected credit losses over the life of the individual loan, or the pool (for loans grouped into a pool). Management monitors actual cash collections against its expectations, and revised cash flow estimates are prepared as necessary. A decrease in expected cash flows in subsequent periods may indicate that the loan pool or individual loan, as applicable, is impaired, thus requiring the establishment of an allowance for loan losses by a charge to the provision for loan losses. An increase in expected cash flows in subsequent periods initially reduces any previously established allowance for loan losses by the increase in the present value of cash flows expected to be collected, and results in a recalculation of the amount of accretable yield for the loan pool. The adjustment of accretable yield due to an increase in expected cash flows is accounted for prospectively as a change in estimate. The additional cash flows expected to be collected are reclassified from the nonaccretable difference to the accretable yield, and the amount of periodic accretion is adjusted accordingly over the remaining life of the loans in the pool or individual loan, as applicable. The impacts of (i) prepayments, (ii) changes in variable interest rates, and (iii) any other changes in the timing of expected cash flows are recognized prospectively as adjustments to interest income. A distressed residential mortgage loan disposal, which may include a loan sale, receipt of payment in full from the borrower or foreclosure, results in removal of the loan from the loan pool at its allocated carrying amount. In the event of a sale of the loan and receipt of payment (in full or partial) from the borrower, a gain or loss on sale is recognized and reported based on the difference between the sales proceeds or payment from the borrower and the allocated carrying amount of the acquired distressed residential mortgage loan. In the case of a foreclosure, an individual loan is removed from the pool and a loss on sale is recognized if the carrying value exceeds the fair value of the collateral less costs to sell. A gain is not recognized if the fair value of collateral less costs to sell exceeds the carrying value. The Company uses the specific allocation method for the removal of loans as the estimated cash flows and related carrying amount for each individual loan are known. In these cases, the remaining accretable yield is unaffected and any material change in remaining effective yield caused by the removal of the loan from the pool is addressed by the re-assessment of the estimate of cash flows for the pool prospectively. Acquired distressed residential mortgage loans subject to modification are not removed from the pool even if those loans would otherwise be considered troubled debt restructurings because the pool, and not the individual loan, represents the unit of account. For individual loans not accounted for in pools that are sold or satisfied by payment in full, a gain or loss on sale is recognized and reported based on the difference between the sales proceeds and the carrying amount of the acquired distressed residential mortgage loan. In the case of a foreclosure, a loss is recognized if the carrying value exceeds the fair value of the underlying collateral less costs to sell. A gain is not recognized if the fair value of the underlying collateral less costs to sell exceeds the carrying value. |
Multi-Family Loans Held in Securitization Trusts | Multi-Family Loans Held in Securitization Trusts – Multi-family loans held in securitization trusts are comprised of multi-family mortgage loans held in Freddie Mac-sponsored multi-family K-Series securitizations (the “Consolidated K-Series”). Based on a number of factors, we determined that we were the primary beneficiary of each VIE within the Consolidated K-Series, met the criteria for consolidation and, accordingly, have consolidated these Freddie Mac-sponsored multi-family K-Series securitizations, including their assets, liabilities, income and expenses in our condensed consolidated financial statements. The Company has elected the fair value option on each of the assets and liabilities held within the Consolidated K-Series, which requires that changes in valuations be reflected in the Company's accompanying condensed consolidated statement of operations. The Company adopted Accounting Standards Update ("ASU") 2014-13 Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity, effective January 1, 2016. As a result, the Company measures both the financial assets and financial liabilities of a qualifying collateralized financing entity ("CFE") using the fair value of either the CFE’s financial assets or financial liabilities, whichever is more observable. As the Company’s securitization trusts are considered qualifying CFEs, the Company determines the fair value of multi-family loans held in securitization trusts based on the fair value of its multi-family collateralized debt obligations and its retained interests from these securitizations (eliminated in consolidation in accordance with GAAP), as the fair value of these instruments is more observable. Interest income is accrued and recognized as revenue when earned according to the terms of the multi-family loans and when, in the opinion of management, it is collectible. The accrual of interest on multi-family loans is discontinued when, in management’s opinion, the interest is not collectible in the normal course of business, but in all cases when payment becomes greater than 90 days delinquent. The multi-family loans return to accrual status when principal and interest become current and are anticipated to be fully collectible. |
Mezzanine Loan and Preferred Equity Investments, Mortgage Loans Held for Investment, and Investments in Unconsolidated Entities | Mezzanine Loan and Preferred Equity Investments – The Company invests in mezzanine loans and preferred equity of entities that have significant real estate assets. The mezzanine loan is secured by a pledge of the borrower’s equity ownership in the property. Unlike a mortgage, this loan does not represent a lien on the property. Therefore, it is always junior and subordinate to any first-lien as well as second liens, if applicable, on the property. These loans are senior to any preferred equity or common equity interests. A preferred equity investment is an equity investment in the entity that owns the underlying property. Preferred equity is not secured by the underlying property, but holders have priority relative to common equity holders on cash flow distributions and proceeds from capital events. In addition, preferred equity holders may be able to enhance their position and protect their equity position with covenants that limit the entity’s activities and grant the holder the exclusive right to control the property after an event of default. Mezzanine loans and preferred equity investments, where the risks and payment characteristics are equivalent to mezzanine loans, are accounted for as loans and are stated at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, net of valuation allowances. The Company has evaluated its mezzanine loan and preferred equity investments for accounting treatment as loans versus equity investment utilizing the guidance provided by the ADC Arrangements Subsection of ASC 310, Receivables . For mezzanine loan and preferred equity investments where the characteristics, facts and circumstances indicate that loan accounting treatment is appropriate, the Company accretes or amortizes any discounts or premiums and deferred fees and expenses over the life of the related asset utilizing the effective interest method or straight line-method, if the result is not materially different. Management evaluates the collectibility of both interest and principal of each of these loans, if circumstances warrant, to determine whether they are impaired. A loan is impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the existing contractual terms. When a loan is impaired, the amount of the loss accrual is calculated by comparing the carrying amount of the investment to the estimated fair value of the loan or, as a practical expedient, to the value of the collateral if the loan is collateral dependent. Interest income is accrued and recognized as revenue when earned according to the terms of the loans and when, in the opinion of management, it is collectible. The accrual of interest on loans is discontinued when, in management’s opinion, the interest is not collectible in the normal course of business, but in all cases when payment becomes greater than 90 days delinquent. Loans return to accrual status when principal and interest become current and are anticipated to be fully collectible. Mezzanine loans and preferred equity investments where the risks and payment characteristics are equivalent to an equity investment are accounted for using the equity method of accounting. See “ Investment in Unconsolidated Entities. ” Mortgage Loans Held for Investment – Mortgage loans held for investment are stated at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, net of valuation allowances, and are included in receivables and other assets. Interest income is accrued on the principal amount of the loan based on the loan’s contractual interest rate. Amortization of premiums and discounts is recorded using the effective yield method. Interest income, amortization of premiums and discounts and prepayment fees are reported in interest income. A loan is considered to be impaired when it is probable that based upon current information and events, the Company will be unable to collect all amounts due under the contractual terms of the loan agreement. Based on the facts and circumstances of the individual loans being impaired, loan specific valuation allowances are established for the excess carrying value of the loan over either: (i) the present value of expected future cash flows discounted at the loan’s original effective interest rate, (ii) the estimated fair value of the loan’s underlying collateral if the loan is in the process of foreclosure or otherwise collateral dependent, or (iii) the loan’s observable market price. Investment in Unconsolidated Entities – Non-controlling, unconsolidated ownership interests in an entity may be accounted for using the equity method or the cost method. In circumstances where the Company has a non-controlling interest but either owns a significant interest or is able to exert influence over the affairs of the enterprise, the Company utilizes the equity method of accounting. Under the equity method of accounting, the initial investment is increased each period for additional capital contributions and a proportionate share of the entity’s earnings or preferred return and decreased for cash distributions and a proportionate share of the entity’s losses. Management periodically reviews its investments for impairment based on projected cash flows from the entity over the holding period. When any impairment is identified, the investments are written down to recoverable amounts. The Company may elect the fair value option for an investment in an unconsolidated entity that is accounted for using the equity method. The Company elected the fair value option for certain investments in unconsolidated entities that own interests (directly or indirectly) in commercial and residential real estate assets because the Company determined that such presentation represents the underlying economics of the respective investment. The Company records the change in fair value of its investment in other income in the condensed consolidated statements of operations (s ee Note 8 ). |
Real Estate | Operating Real Estate Held in Consolidated Variable Interest Entities, Net – The Company records its initial investments in income-producing real estate at fair value at the acquisition date in accordance with ASC 805. The purchase price of acquired properties is apportioned to the tangible and identified intangible assets and liabilities acquired at their respective estimated fair values. In making estimates of fair values for purposes of allocating purchase price, the Company utilizes a number of sources, including independent appraisals that may be obtained in connection with the acquisition or financing of the respective real estate, its own analysis of recently-acquired and existing comparable properties, property financial results, and other market data. The Company also considers information obtained about the real estate as a result of its due diligence, including marketing and leasing activities, in estimating the fair value of the tangible and intangible assets acquired. The Company considers the value of acquired in-place leases and utilizes an amortization period that is the average remaining term of the acquired leases. The Company has reclassified its operating real estate held in consolidated variable interest entities to real estate held for sale in consolidated variable interest entities as of September 30, 2017 . Depreciation of Real Estate – The Company depreciates on a straight-line basis the building component of its real estate over a 30 -year estimated useful life, building and improvements over a 10 -year to 30 -year estimated useful life, and furniture, fixtures and equipment over a 5 -year estimated useful life, all of which are judgmental determinations. Betterments and certain costs directly related to the improvement of real estate are capitalized. Expenditures for ordinary maintenance and repairs are expensed to operations as incurred. Real Estate Held for Sale in Consolidated Variable Interest Entities - The Company classifies its long-lived assets as held for sale in accordance with ASC 360, Property, Plant, and Equipment . When real estate assets are identified as held for sale, the Company discontinues depreciating (amortizing) the assets and estimates the fair value, net of selling costs, of such assets. Real estate held for sale in consolidated variable interest entities is recorded at the lower of the net carrying amount of the assets or the estimated net fair value. If the estimated net fair value of the real estate held for sale is less than the net carrying amount of the assets, an impairment charge is recorded in the condensed consolidated statements of operations with an allocation to non-controlling interests in the respective VIEs, if any. The Company assesses the net fair value of real estate held for sale each reporting period the assets remain classified as held for sale. Subsequent changes, if any, in the net fair value of the real estate assets held for sale that require an adjustment to the carrying amount are recorded in the condensed consolidated statements of operations with an allocation to non-controlling interests in the respective VIEs, if any, unless the adjustment causes the carrying amount of the assets to exceed the net carrying amount upon initial classification as held for sale. If circumstances arise that the Company previously considered unlikely and, as a result, the Company decides not to sell real estate assets previously classified as held for sale, the real estate assets are reclassified to another real estate classification. Real estate assets that are reclassified are measured at the lower of (a) their carrying amount before they were classified as held for sale, adjusted for any depreciation (amortization) expense that would have been recognized had the assets remained in their previous classification, or (b) their fair value at the date of the subsequent decision not to sell. Real Estate - Under Development – The Company's expenditures which directly relate to the acquisition, development, construction and improvement of properties are capitalized, at cost. During the development period, which culminates once a property is substantially complete and ready for intended use, operating and carrying costs such as interest expense, real estate taxes, insurance and other direct costs are capitalized. Advertising and general administrative costs that do not relate to the development of a property are expensed as incurred. Real estate under development as of September 30, 2017 and December 31, 2016 of $21.9 million and $17.5 million , respectively, is included in receivables and other assets on the condensed consolidated balance sheets. Real Estate - Impairment – The Company periodically evaluates its long-lived assets for indicators of impairment. The judgments regarding the existence of impairment indicators are based on factors such as operational performance, market conditions and legal and environmental concerns, as well as the Company's ability to hold and its intent with regard to each asset. Future events could occur which would cause the Company to conclude that impairment indicators exist and an impairment is warranted. If impairment indicators exist for long-lived assets to be held and used, and the expected future undiscounted cash flows are less than the carrying amount of the asset, then the Company will record an impairment loss for the difference between the fair value of the asset and its carrying amount. If the asset is to be disposed of, then an impairment loss is recognized for the difference between the estimated fair value of the asset, net of selling costs, and its carrying amount. |
Cash and Cash Equivalents | Cash and Cash Equivalents – Cash and cash equivalents include cash on hand, amounts due from banks and overnight deposits. The Company maintains its cash and cash equivalents in highly rated financial institutions, and at times these balances exceed insurable amounts. |
Goodwill | Goodwill – Goodwill represents the excess of the fair value of consideration transferred in a business combination over the fair values of identifiable assets acquired, liabilities assumed and non-controlling interests, if any, in an acquired entity, net of fair value of any previously held interest in the acquired entity. Goodwill is not amortized but tested for impairment annually or more frequently if events or circumstances indicate that goodwill may be impaired. Goodwill of $25.2 million as of September 30, 2017 and December 31, 2016 relates to the Company's multi-family investment reporting unit. Goodwill is evaluated for impairment on an annual basis, or more frequently if the Company believes indicators of impairment exist, by initially performing a qualitative screen and, if necessary, then comparing fair value of the reporting unit to its carrying value, including goodwill. If the fair value of the reporting unit is less than the carrying value, an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value (in an amount not to exceed the total amount of goodwill allocated to the reporting unit) is recognized. |
Intangible Assets | Intangible Assets – Intangible assets consisting of acquired trade name, acquired technology, employment/non-compete agreements, and acquired in-place leases with useful lives ranging from 6 months to 10 years are included in receivables and other assets on the condensed consolidated balance sheets. Intangible assets with estimable useful lives are amortized on a straight-line basis over their respective estimated useful lives and reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The useful lives of intangible assets are evaluated on an annual basis to determine whether events and circumstances warrant a revision to the remaining useful life. See " Operating Real Estate Held in Consolidated Variable Interest Entities, Net " for further discussion of acquired in-place lease intangible assets. |
Receivables and Other Assets | Receivables and Other Assets – Receivables and other assets as of September 30, 2017 and December 31, 2016 include restricted cash held by third parties of $34.1 million and $56.0 million , respectively. Included in restricted cash is $8.9 million and $35.6 million held in our Agency IO portfolio to be used for trading purposes and $7.9 million and $6.1 million held by counterparties as collateral for hedging instruments as of September 30, 2017 and December 31, 2016 , respectively. Interest receivable on multi-family loans held in securitization trusts is also included in the amounts of $28.1 million and $24.1 million as of September 30, 2017 and December 31, 2016 , respectively. |
Derivative Financial Instruments | Derivative Financial Instruments – In accordance with ASC 815, the Company records derivative financial instruments on its consolidated balance sheet as assets or liabilities at fair value. Changes in fair value are accounted for depending on the use of the derivative instruments and whether they qualify for hedge accounting treatment. In connection with our investment in Agency IOs, the Company uses several types of derivative instruments such as interest rate swaps, futures, put and call options on futures and TBAs to hedge the interest rate risk, as well as spread risk associated with these investments. The Company also purchases, or sells short, To-Be-Announced securities (“TBAs”) through its Agency IO portfolio. TBAs are forward-settling purchases and sales of Agency RMBS where the underlying pools of mortgage loans are “To-Be-Announced.” Pursuant to these TBA transactions, we agree to purchase or sell, for future settlement, Agency RMBS with certain principal and interest terms and certain types of underlying collateral, but the particular Agency RMBS to be delivered is not identified until shortly before the TBA settlement date. For TBA contracts that we have entered into, we have not asserted that physical settlement is probable, therefore we have not designated these forward commitments as hedging instruments. The use of TBAs, futures, options on futures and interest rate swaps in our Agency IO portfolio hedge the overall risk profile of investment securities in the portfolio. The derivative instruments in our Agency IO portfolio are not designated as hedging instruments, therefore realized and unrealized gains and losses associated with these derivative instruments are recognized through earnings and reported as part of the other income (loss) category in the Company's condensed consolidated statements of operations. The Company also uses interest rate swaps to hedge the variable cash flows associated with borrowings made under our financing arrangements and Residential CDOs. We typically pay a fixed rate and receive a floating rate based on one-month LIBOR, on the notional amount of the interest rate swaps. The floating rate we receive under our swap agreements has the effect of offsetting the repricing characteristics and cash flows of our financing arrangements. These interest rate swaps qualify as a cash flow hedge, where the effective portion of the gain or loss on the derivative instrument is reported as a component of OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instruments in excess of the cumulative change in the present value of future cash flows of the hedged item, if any, is recognized in current earnings during the period of change. |
Termination of Hedging Relationships | Termination of Hedging Relationships – The Company employs risk management monitoring procedures to ensure that the designated hedging relationships are demonstrating, and are expected to continue to demonstrate, a high level of effectiveness. Hedge accounting is discontinued on a prospective basis if it is determined that the hedging relationship is no longer highly effective or expected to be highly effective in offsetting changes in fair value of the hedged item. Additionally, the Company may elect to un-designate a hedge relationship during an interim period and re-designate upon the rebalancing of a hedge profile and the corresponding hedge relationship. When hedge accounting is discontinued, the Company continues to carry the derivative instruments at fair value with changes recorded in current earnings. |
Manager Compensation | Manager Compensation – We are a party to separate investment management agreements with Headlands Asset Management LLC (“Headlands”) and The Midway Group, LP (“Midway”), with Headlands providing investment management services with respect to our investments in certain distressed residential mortgage loans and Midway providing investment management services with respect to our investments in Agency IOs. These investment management agreements provide for the payment to our investment managers of a management fee, incentive fee and reimbursement of certain operating expenses, which are accrued and expensed during the period for which they are earned or incurred. |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) – The Company’s comprehensive income/(loss) attributable to the Company's common stockholders includes net income, the change in net unrealized gains/(losses) on its available for sale securities and its derivative hedging instruments, currently comprised of interest rate swaps, (to the extent that such changes are not recorded in earnings), adjusted by realized net gains/(losses) reclassified out of accumulated other comprehensive income/(loss) for available for sale securities, reduced by dividends declared on the Company’s preferred stock and increased for net loss attributable to non-controlling interest. |
Employee Benefit Plans | Employee Benefits Plans – The Company sponsors a defined contribution plan (the “Plan”) for all eligible domestic employees. The Plan qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). |
Stock Based Compensation | Stock Based Compensation – The Company has awarded restricted stock to eligible employees and officers as part of their compensation. Compensation expense for equity based awards and stock issued for services are recognized over the vesting period of such awards and services based upon the fair value of the award at the grant date. In May 2015, the Company granted certain Performance Share Awards (“PSAs”) which cliff vest after a three -year period, subject to the achievement of certain performance criteria based on a formula tied to the Company’s achievement of three -year total stockholder return (“TSR”) and the Company’s TSR relative to the TSR of certain peer companies. The feature in this award constitutes a “market condition” which impacts the amount of compensation expense recognized for these awards. The grant date fair values of PSAs were determined through Monte-Carlo simulation analysis. |
Income Taxes | Income Taxes – The Company operates in such a manner so as to qualify as a REIT under the requirements of the Internal Revenue Code. Requirements for qualification as a REIT include various restrictions on ownership of the Company’s stock, requirements concerning distribution of taxable income and certain restrictions on the nature of assets and sources of income. A REIT must distribute at least 90% of its taxable income to its stockholders, of which 85% plus any undistributed amounts from the prior year must be distributed within the taxable year in order to avoid the imposition of an excise tax. Distribution of the remaining balance may extend until timely filing of the Company’s tax return in the subsequent taxable year. Qualifying distributions of taxable income are deductible by a REIT in computing taxable income. Certain activities of the Company are conducted through TRSs and therefore are subject to federal and various state and local income taxes. Accordingly, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. ASC 740, Income Taxes ("ASC 740"), provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. In situations involving uncertain tax positions related to income tax matters, we do not recognize benefits unless it is more likely than not that they will be sustained. ASC 740 was applied to all open taxable years as of the effective date. Management’s determinations regarding ASC 740 may be subject to review and adjustment at a later date based on factors including, but not limited to, an ongoing analysis of tax laws, regulations and interpretations thereof. The Company will recognize interest and penalties, if any, related to uncertain tax positions as income tax expense. |
Earnings Per Share | Earnings Per Share – Basic earnings per share excludes dilution and is computed by dividing net income attributable to the Company's common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. |
Segment Reporting | Segment Reporting – ASC 280, Segment Reporting , is the authoritative guidance for the way public entities report information about operating segments in their annual financial statements. We are a REIT focused on the business of acquiring, investing in, financing and managing primarily mortgage-related and residential housing-related assets and financial assets, and currently operate in only one reportable segment. |
Summary of Recent Accounting Pronouncements | Summary of Recent Accounting Pronouncements Revenue Recognition (Topic 606) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). This guidance creates a new, principle-based revenue recognition framework that will affect nearly every revenue-generating entity. ASU 2014-09 also creates a new topic in the Codification, Topic 606 (“ASC 606”). In addition to superseding and replacing nearly all existing GAAP revenue recognition guidance, including industry-specific guidance, ASC 606 does the following: (1) establishes a new control-based revenue recognition model; (2) changes the basis for deciding when revenue is recognized over time or at a point in time; (3) provides new and more detailed guidance on specific aspects of revenue recognition; and (4) expands and improves disclosures about revenue. In August 2015, the FASB issued ASU 2015-14 that defers the effective date of ASU 2014-09 for public business entities for annual reporting periods beginning after December 15, 2017, including interim periods therein. Early application is permitted for public business entities only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. ASC 606 applies to all contracts with customers with exceptions for financial instruments and other contractual rights or obligations that are within the scope of other ASC Topics. Exclusions from the scope of ASC 606 include investment securities available for sale (subject to ASC 320, Investments - Debt and Equity Securities or ASC 325, Investments - Other ); residential mortgage loans, distressed residential mortgage loans, multi-family loans, and mezzanine loan and preferred equity investments (subject to either ASC 310, Receivables or ASC 825, Financial Instruments ); derivative assets and derivative liabilities (subject to ASC 815, Derivatives and Hedging ); and investment in unconsolidated entities (subject to either ASC 323, Investments- Equity Method and Joint Ventures or ASC 825, Financial Instruments ). The Company evaluated the applicability of this ASU with respect to its investment portfolio, considering the scope exceptions listed above, and has determined that the adoption of this ASU will not have a material impact on the Company's financial condition or results of operations as the majority of the Company's revenue is generated by financial instruments and other contractual rights and obligations that are not within the scope of ASC 606. Financial Instruments —Credit Losses (Topic 326) In June 2016, the FASB issued ASU 2016-13, Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). The amendments require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption as of the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 is permitted. The Company is currently assessing the impact of this guidance as the ASU will have an effect on the Company's estimation of credit losses on distressed residential mortgage loans, residential mortgage loans held in securitization trusts, residential mortgage loans, and mezzanine loans and preferred equity investments that are accounted for as loans. Statement of Cash Flows (Topic 230) In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash ("ASU 2016-18") . These amendments require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments do not provide a definition of restricted cash or restricted cash equivalents. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company adopted the ASU effective January 1, 2017 and included restricted cash of $34.1 million and $78.6 million as of September 30, 2017 and 2016, respectively, with cash and cash equivalents as shown on the condensed consolidated statements of cash flows. Intangibles - Goodwill and Other (Topic 350) In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"). The amendments simplify annual or interim goodwill impairment tests by eliminating a second step to compute the implied fair value of goodwill if the fair value of a reporting unit is less than its carrying amount. Instead, should the fair value of a reporting unit be less than its carrying amount, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value (in an amount not to exceed the total amount of goodwill allocated to that reporting unit). The amendments are effective for all entities for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates on or after January 1, 2017. The Company adopted the ASU effective January 1, 2017 and will apply the guidance to the performance of our annual impairment test of $25.2 million in goodwill for the year ended December 31, 2017. |
Residential collateralized debt obligations | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Residential Collateralized Debt Obligations, Multi-Family Collateralized Debt Obligations, Securitized Debt, and Convertible Notes | Residential Collateralized Debt Obligations (“Residential CDOs”) – We use Residential CDOs to permanently finance our residential mortgage loans held in securitization trusts. For financial reporting purposes, the ARM loans held as collateral are recorded as assets of the Company and the Residential CDOs are recorded as the Company’s debt. The Company completed four securitizations in 2005 and 2006. The first three were accounted for as a permanent financing while the fourth was accounted for as a sale and accordingly, is not included in the Company’s accompanying condensed consolidated financial statements. |
Multi-family collateralized debt obligations | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Residential Collateralized Debt Obligations, Multi-Family Collateralized Debt Obligations, Securitized Debt, and Convertible Notes | Multi-Family Collateralized Debt Obligations (“Multi-Family CDOs”) – We consolidated the Consolidated K-Series including their debt, referred to as Multi-Family CDOs, in our condensed consolidated financial statements. The Multi-Family CDOs permanently finance the multi-family mortgage loans held in the Consolidated K-Series securitizations. For financial reporting purposes, the loans held as collateral are recorded as assets of the Company and the Multi-Family CDOs are recorded as the Company’s debt. We refer to both the Residential CDOs and Multi-Family CDOs as CDOs in this report. |
Securitized debt | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Residential Collateralized Debt Obligations, Multi-Family Collateralized Debt Obligations, Securitized Debt, and Convertible Notes | Securitized Debt – Securitized Debt represents third-party liabilities of Consolidated VIEs and excludes liabilities of the VIEs acquired by the Company that are eliminated on consolidation. The Company has entered into several financing transactions that resulted in the Company consolidating as VIEs the special purpose entities (the “SPEs”) that were created to facilitate the transactions and to which underlying assets in connection with the financing were transferred. The Company engaged in these transactions primarily to obtain permanent or longer term financing on a portion of its multi-family CMBS and acquired distressed residential mortgage loans. Costs related to issuance of securitized debt which include underwriting, rating agency, legal, accounting and other fees are reflected as deferred charges. Such costs are presented as a deduction from the corresponding debt liability on the Company’s accompanying condensed consolidated balance sheets in the amount of $0.8 million and $1.4 million as of September 30, 2017 and December 31, 2016 , respectively. These deferred charges are amortized as an adjustment to interest expense using the effective interest method, or straight line-method, if the result is not materially different. |
Convertible Notes | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Residential Collateralized Debt Obligations, Multi-Family Collateralized Debt Obligations, Securitized Debt, and Convertible Notes | Convertible Notes – On January 23, 2017, the Company issued Convertible Notes to finance the acquisition of targeted assets and for general working capital purposes. The Company evaluated the conversion features of the Convertible Notes for embedded derivatives in accordance with ASC 815, Derivatives and Hedging ("ASC 815") and determined that the conversion features should not be bifurcated from the notes. The Convertible Notes were issued at a 4% discount. Costs related to issuance of the Convertible Notes which include underwriting, legal, accounting and other fees are reflected as deferred charges. The discount and deferred charges are amortized as an adjustment to interest expense using the effective interest method. The discount and deferred issuance costs, net of amortization, are presented as a deduction from the corresponding debt liability on the Company's accompanying condensed consolidated balance sheets in the amount of $9.7 million as of September 30, 2017 . |
Portfolio Investments | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Financing Arrangements, Portfolio Investments and Residential Mortgage Loans | Financing Arrangements, Portfolio Investments – The Company finances the majority of its investment securities available for sale using repurchase agreements. Under a repurchase agreement, an asset is sold to a counterparty to be repurchased at a future date at a predetermined price, which represents the original sales price plus interest. The Company accounts for these repurchase agreements as financings and are carried at their contractual amounts, as specified in the respective agreements. Borrowings under repurchase agreements generally bear interest rates of a specified margin over one-month LIBOR. |
Distressed Residential Mortgage Loans | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Financing Arrangements, Portfolio Investments and Residential Mortgage Loans | Financing Arrangements, Residential Mortgage Loans – The Company finances a portion of its residential mortgage loans, including its distressed residential mortgage loans, through a repurchase agreement expiring within 12 to 15 months. The borrowing under the repurchase agreement bears an interest rate of a specified margin over one-month LIBOR. The repurchase agreement is treated as a collateralized financing transaction and is carried at the contractual amounts, as specified in the respective agreement. Costs related to the establishment of the repurchase agreement which include underwriting, legal, accounting and other fees are reflected as deferred charges. Such costs are presented as a deduction from the corresponding debt liability on the Company’s accompanying condensed consolidated balance sheets in the amount of $0.4 million as of September 30, 2017 and $1.3 million as of December 31, 2016 . These deferred charges are amortized as an adjustment to interest expense using the effective interest method, or straight line-method, if the result is not materially different. |
Investment Securities Availab34
Investment Securities Available for Sale (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available for Sale Securities | Investment securities available for sale consisted of the following as of September 30, 2017 and December 31, 2016 (dollar amounts in thousands): September 30, 2017 December 31, 2016 Amortized Cost Unrealized Fair Value Amortized Cost Unrealized Fair Value Gains Losses Gains Losses Agency RMBS (1) Agency ARMs Freddie Mac $ 34,733 $ 21 $ (351 ) $ 34,403 $ 39,138 $ 24 $ (528 ) $ 38,634 Fannie Mae 59,583 13 (545 ) 59,051 69,031 71 (698 ) 68,404 Ginnie Mae 5,022 — (209 ) 4,813 6,011 — (204 ) 5,807 Total Agency ARMs 99,338 34 (1,105 ) 98,267 114,180 95 (1,430 ) 112,845 Agency Fixed Rate Freddie Mac 21,556 — (586 ) 20,970 26,338 — (644 ) 25,694 Fannie Mae 267,169 — (9,089 ) 258,080 312,515 — (10,035 ) 302,480 Ginnie Mae 379 — (5 ) 374 457 — (4 ) 453 Total Agency Fixed Rate 289,104 — (9,680 ) 279,424 339,310 — (10,683 ) 328,627 Agency IOs (1) Freddie Mac 9,423 25 (2,571 ) 6,877 19,768 559 (3,363 ) 16,964 Fannie Mae 13,752 50 (3,316 ) 10,486 27,597 478 (4,777 ) 23,298 Ginnie Mae 23,858 411 (4,291 ) 19,978 49,788 1,223 (6,382 ) 44,629 Total Agency IOs 47,033 486 (10,178 ) 37,341 97,153 2,260 (14,522 ) 84,891 Total Agency RMBS 435,475 520 (20,963 ) 415,032 550,643 2,355 (26,635 ) 526,363 Non-Agency RMBS 131,253 1,789 (20 ) 133,022 162,220 1,218 (154 ) 163,284 U.S. Treasury securities (1) 2,920 4 — 2,924 2,920 — (33 ) 2,887 CMBS (2) 105,020 18,163 — 123,183 113,955 12,876 (389 ) 126,442 Total investment securities available for sale $ 674,668 $ 20,476 $ (20,983 ) $ 674,161 $ 829,738 $ 16,449 $ (27,211 ) $ 818,976 (1) Included in investment securities available for sale are Agency IOs, Agency RMBS and U.S. Treasury securities managed by Midway that are measured at fair value through earnings. (2) Included in CMBS is $46.6 million and $43.9 million of investment securities available for sale held in securitization trusts as of September 30, 2017 and December 31, 2016 , respectively. |
Weighted Average Lives of Investment Securities Available for Sale | The following table sets forth the weighted average lives of our investment securities available for sale as of September 30, 2017 and December 31, 2016 (dollar amounts in thousands): Weighted Average Life September 30, 2017 December 31, 2016 0 to 5 years $ 508,612 $ 606,079 Over 5 to 10 years 152,559 177,765 10+ years 12,990 35,132 Total $ 674,161 $ 818,976 |
Stated Reset Periods of Investment Securities Available for Sale | The following tables set forth the stated reset periods of our investment securities available for sale and investment securities available for sale held in securitization trusts at September 30, 2017 and December 31, 2016 at carrying value (dollar amounts in thousands): September 30, 2017 December 31, 2016 Less than 6 6 to 24 More than Total Less than 6 to 24 More than Total Agency RMBS $ 36,940 $ 23,332 $ 354,760 $ 415,032 $ 53,043 $ 27,272 $ 446,048 $ 526,363 Non-Agency RMBS 6,205 — 126,817 133,022 50,080 — 113,204 163,284 U.S. Treasury securities — — 2,924 2,924 — — 2,887 2,887 CMBS 76,560 — 46,623 123,183 82,545 — 43,897 126,442 Total investment securities available for sale $ 119,705 $ 23,332 $ 531,124 $ 674,161 $ 185,668 $ 27,272 $ 606,036 $ 818,976 |
Schedule of Investment Securities Available for Sale in Unrealized Loss Position | The following tables present the Company's investment securities available for sale in an unrealized loss position reported through OCI, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2017 and December 31, 2016 (dollar amounts in thousands): September 30, 2017 Less than 12 months Greater than 12 months Total Carrying Value Gross Unrealized Losses Carrying Value Gross Unrealized Losses Carrying Value Gross Unrealized Losses Agency RMBS $ 91,170 $ (914 ) $ 281,152 $ (9,866 ) $ 372,322 $ (10,780 ) Non-Agency RMBS — — 212 (20 ) 212 (20 ) Total investment securities available for sale $ 91,170 $ (914 ) $ 281,364 $ (9,886 ) $ 372,534 $ (10,800 ) At September 30, 2017 , the Company does not intend to sell any of its investments that were in an unrealized loss position, and it is “more likely than not” that the Company will not be required to sell these securities before recovery of their amortized cost basis, which may be at their maturity. Gross unrealized losses on the Company’s Agency RMBS were $10.8 million at September 30, 2017 . Agency RMBS are issued by Government Sponsored Entities (“GSEs”) and enjoy either the implicit or explicit backing of the full faith and credit of the U.S. Government. While the Company’s Agency RMBS are not rated by any rating agency, they are currently perceived by market participants to be of high credit quality, with risk of default limited to the unlikely event that the U.S. Government would not continue to support the GSEs. Given the credit quality inherent in Agency RMBS, the Company does not consider any of the current impairments on its Agency RMBS to be credit-related. In assessing whether it is more likely than not that it will be required to sell any impaired security before its anticipated recovery, which may be at its maturity, the Company considers for each impaired security, the significance of each investment, the amount of impairment, the projected future performance of such impaired securities, as well as the Company’s current and anticipated leverage capacity and liquidity position. Based on these analyses, the Company determined that at September 30, 2017 any unrealized losses on its Agency RMBS were temporary. December 31, 2016 Less than 12 months Greater than 12 months Total Carrying Value Gross Unrealized Losses Carrying Value Gross Unrealized Losses Carrying Value Gross Unrealized Losses Agency RMBS $ 96,357 $ (1,290 ) $ 328,474 $ (10,819 ) $ 424,831 $ (12,109 ) Non-Agency RMBS — — 596 (154 ) 596 (154 ) CMBS 16,523 (389 ) — — 16,523 (389 ) Total investment securities available for sale $ 112,880 $ (1,679 ) $ 329,070 $ (10,973 ) $ 441,950 $ (12,652 ) |
Residential Mortgage Loans He35
Residential Mortgage Loans Held in Securitization Trusts (Net) and Real Estate Owned (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Mortgage Loans on Real Estate [Abstract] | |
Schedule of Residential Mortgage Loans Held in Securitization Trusts (Net) | Residential mortgage loans held in securitization trusts (net) consist of the following as of September 30, 2017 and December 31, 2016 , respectively (dollar amounts in thousands): September 30, 2017 December 31, 2016 Unpaid principal balance $ 83,068 $ 98,303 Deferred origination costs – net 532 623 Reserve for loan losses (3,725 ) (3,782 ) Total $ 79,875 $ 95,144 |
Allowance for Loan Losses on Residential Mortgage Loans Held in Securitization Trusts | The following table presents the activity in the Company's allowance for loan losses on residential mortgage loans held in securitization trusts for the nine months ended September 30, 2017 and 2016 , respectively (dollar amounts in thousands): Nine Months Ended September 30, 2017 2016 Balance at beginning of period $ 3,782 $ 3,399 Provisions for loan losses 306 557 Transfer to real estate owned (303 ) — Charge-offs (60 ) (123 ) Balance at the end of period $ 3,725 $ 3,833 |
Activity in Real Estate Owned Held in Residential Securitization Trust | The following table presents the activity in the Company’s real estate owned held in residential securitization trusts for the nine months ended September 30, 2017 and 2016 , respectively (dollar amounts in thousands): Nine Months Ended September 30, 2017 2016 Balance at beginning of period $ 150 $ 411 Write downs — — Transfer from/(to) mortgage loans held in securitization trusts 742 173 Disposal (150 ) (411 ) Balance at the end of period $ 742 $ 173 |
Delinquencies in Portfolio of Residential Mortgage Loans Held in Securitization Trusts | The table below shows delinquencies in our portfolio of residential mortgage loans held in securitization trusts, including real estate owned through foreclosure (REO), as of December 31, 2016 (dollar amounts in thousands): December 31, 2016 Days Late Number of Delinquent Loans Total Unpaid Principal % of Loan Portfolio 30 - 60 1 $ 247 0.25 % 61 - 90 — $ — — 90 + 30 $ 18,416 18.68 % Real estate owned through foreclosure 1 $ 268 0.27 % The table below shows delinquencies in our portfolio of residential mortgage loans held in securitization trusts, including REO through foreclosure, as of September 30, 2017 (dollar amounts in thousands): September 30, 2017 Days Late Number of Delinquent Loans Total Unpaid Principal % of Loan Portfolio 30 - 60 — $ — — 61 - 90 — $ — — 90 + 24 $ 15,410 18.32 % Real estate owned through foreclosure 2 $ 1,045 1.24 % |
Schedule of Geographic Concentration of Credit Risk | The geographic concentrations of credit risk exceeding 5% of the total loan balances in our residential mortgage loans held in securitization trusts and real estate owned held in residential securitization trusts as of September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 December 31, 2016 New York 32.0 % 33.8 % Massachusetts 19.9 % 19.9 % New Jersey 11.1 % 10.8 % Florida 10.0 % 8.9 % Connecticut 8.1 % 7.4 % Maryland 5.3 % 5.1 % The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of residential mortgage loans at fair value as of September 30, 2017 and December 31, 2016 , respectively, are as follows: September 30, 2017 December 31, 2016 California 34.98 % 63.32 % Florida 8.48 % 5.63 % New Jersey 8.28 % 2.46 % |
Residential Mortgage Loans, A36
Residential Mortgage Loans, At Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Mortgage Loans on Real Estate [Abstract] | |
Residential Mortgage Loans at Fair Value | The Company’s residential mortgage loans at fair value consist of the following as of September 30, 2017 and December 31, 2016 , respectively (dollar amounts in thousands): Principal Premium/(Discount) Unrealized Gains/(Losses) Carrying Value September 30, 2017 $ 73,546 $ (4,258 ) $ 224 $ 69,512 December 31, 2016 $ 17,540 $ 229 $ — $ 17,769 |
Components of Net Gain on Residential Mortgage Loans at Fair Value | The following table presents the components of net gain on residential mortgage loans at fair value for the nine months ended September 30, 2017 and 2016 : September 30, 2017 September 30, 2016 Net realized gain on payoff and sale of loans $ 493 $ — Net unrealized gains $ 224 $ — |
Schedule of Geographic Concentration of Credit Risk | The geographic concentrations of credit risk exceeding 5% of the total loan balances in our residential mortgage loans held in securitization trusts and real estate owned held in residential securitization trusts as of September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 December 31, 2016 New York 32.0 % 33.8 % Massachusetts 19.9 % 19.9 % New Jersey 11.1 % 10.8 % Florida 10.0 % 8.9 % Connecticut 8.1 % 7.4 % Maryland 5.3 % 5.1 % The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of residential mortgage loans at fair value as of September 30, 2017 and December 31, 2016 , respectively, are as follows: September 30, 2017 December 31, 2016 California 34.98 % 63.32 % Florida 8.48 % 5.63 % New Jersey 8.28 % 2.46 % |
Distressed Residential Mortga37
Distressed Residential Mortgage Loans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Mortgage Loans on Real Estate [Line Items] | |
Schedule of Information of Distressed Residential Mortgage Loans Acquired | The following table presents information regarding the estimates of the contractually required payments, the cash flows expected to be collected, and the estimated fair value of the distressed residential mortgage loans acquired during the nine months ended September 30, 2017 and 2016 , respectively (dollar amounts in thousands): September 30, 2017 September 30, 2016 Contractually required principal and interest $ 76,529 $ 89,590 Non-accretable yield (6,467 ) (7,516 ) Expected cash flows to be collected 70,062 82,074 Accretable yield (58,767 ) (44,007 ) Fair value at the date of acquisition $ 11,295 $ 38,067 |
Activity in Accretable Yield for Distressed Residential Mortgage Loans | The following table details activity in accretable yield for the distressed residential mortgage loans, including distressed residential mortgage loans held in securitization trusts, for the nine months ended September 30, 2017 and 2016 , respectively (dollar amounts in thousands): September 30, 2017 September 30, 2016 Balance at beginning of period $ 530,511 $ 579,009 Additions 91,356 54,917 Disposals (263,475 ) (119,113 ) Accretion (16,635 ) (25,166 ) Balance at end of period (1) $ 341,757 $ 489,647 (1) Accretable yield is the excess of the distressed residential mortgage loans’ cash flows expected to be collected over the purchase price. The cash flows expected to be collected represents the Company’s estimate of the amount and timing of undiscounted principal and interest cash flows. Additions include accretable yield estimates for purchases made during the period and reclassification to accretable yield from nonaccretable yield. Disposals include distressed residential mortgage loan dispositions, which include refinancing, sale and foreclosure of the underlying collateral and resulting removal of the distressed residential mortgage loans from the accretable yield, and reclassifications from accretable to nonaccretable yield. The reclassifications between accretable and nonaccretable yield and the accretion of interest income is based on various estimates regarding loan performance and the value of the underlying real estate securing the loans. As the Company continues to update its estimates regarding the loans and the underlying collateral, the accretable yield may change. Therefore, the amount of accretable income recorded in each of the nine month periods ended September 30, 2017 and 2016 is not necessarily indicative of future results. |
Schedule of Geographic Concentration of Credit Risk | The geographic concentrations of credit risk exceeding 5% of the total loan balances in our residential mortgage loans held in securitization trusts and real estate owned held in residential securitization trusts as of September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 December 31, 2016 New York 32.0 % 33.8 % Massachusetts 19.9 % 19.9 % New Jersey 11.1 % 10.8 % Florida 10.0 % 8.9 % Connecticut 8.1 % 7.4 % Maryland 5.3 % 5.1 % The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of residential mortgage loans at fair value as of September 30, 2017 and December 31, 2016 , respectively, are as follows: September 30, 2017 December 31, 2016 California 34.98 % 63.32 % Florida 8.48 % 5.63 % New Jersey 8.28 % 2.46 % |
Distressed residential mortgage loans held in securitization trust (net) | |
Mortgage Loans on Real Estate [Line Items] | |
Schedule of Geographic Concentration of Credit Risk | The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of our distressed residential mortgage loans, including distressed residential mortgage loans held in securitization trusts, as of September 30, 2017 and December 31, 2016 , respectively, are as follows: September 30, 2017 December 31, 2016 Florida 10.6 % 12.2 % North Carolina 8.2 % 7.7 % Georgia 7.4 % 6.0 % California 6.6 % 8.8 % New York 5.5 % 5.4 % Ohio 5.0 % 4.8 % |
Consolidated K-Series (Tables)
Consolidated K-Series (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Mortgage Loans on Real Estate [Line Items] | |
Schedule of Geographic Concentration of Credit Risk | The geographic concentrations of credit risk exceeding 5% of the total loan balances in our residential mortgage loans held in securitization trusts and real estate owned held in residential securitization trusts as of September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 December 31, 2016 New York 32.0 % 33.8 % Massachusetts 19.9 % 19.9 % New Jersey 11.1 % 10.8 % Florida 10.0 % 8.9 % Connecticut 8.1 % 7.4 % Maryland 5.3 % 5.1 % The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of residential mortgage loans at fair value as of September 30, 2017 and December 31, 2016 , respectively, are as follows: September 30, 2017 December 31, 2016 California 34.98 % 63.32 % Florida 8.48 % 5.63 % New Jersey 8.28 % 2.46 % |
Consolidated K-Series | |
Mortgage Loans on Real Estate [Line Items] | |
Condensed Consolidated Balance Sheet of the Consolidated K-Series | The condensed consolidated balance sheets of the Consolidated K-Series at September 30, 2017 and December 31, 2016 , respectively, are as follows (dollar amounts in thousands): Balance Sheets September 30, 2017 December 31, 2016 Assets Multi-family loans held in securitization trusts $ 8,399,334 $ 6,939,844 Receivables 28,103 24,098 Total Assets $ 8,427,437 $ 6,963,942 Liabilities and Equity Multi-family CDOs $ 7,990,619 $ 6,624,896 Accrued expenses 27,783 24,003 Total Liabilities 8,018,402 6,648,899 Equity 409,035 315,043 Total Liabilities and Equity $ 8,427,437 $ 6,963,942 |
Condensed Consolidated Statements of Operations of the Consolidated K-Series | The condensed consolidated statements of operations of the Consolidated K-Series for the three and nine months ended September 30, 2017 and 2016 , respectively, are as follows (dollar amounts in thousands): Three Months Ended Nine Months Ended Statements of Operations 2017 2016 2017 2016 Interest income $ 76,186 $ 62,126 $ 213,242 $ 187,427 Interest expense 67,030 55,359 187,835 167,783 Net interest income 9,156 6,767 25,407 19,644 Unrealized gain on multi-family loans and debt held in securitization trusts, net 2,353 738 5,184 2,340 Net income $ 11,509 $ 7,505 $ 30,591 $ 21,984 |
Multi-family loans held in securitization trusts | |
Mortgage Loans on Real Estate [Line Items] | |
Schedule of Geographic Concentration of Credit Risk | The geographic concentrations of credit risk exceeding 5% of the total loan balances related to our CMBS investments included in investment securities available for sale and multi-family loans held in securitization trusts as of September 30, 2017 and December 31, 2016 , respectively, are as follows: September 30, 2017 December 31, 2016 California 11.8 % 13.8 % Texas 10.5 % 12.4 % New York 6.9 % 8.1 % Maryland 4.5 % 5.3 % |
Investment in Unconsolidated 39
Investment in Unconsolidated Entities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investments in Unconsolidated Entities | The Company's investments in unconsolidated entities accounted for under the equity method consist of the following as of September 30, 2017 and December 31, 2016 (dollar amounts in thousands): September 30, 2017 December 31, 2016 Investment Name Ownership Interest Carrying Amount Ownership Interest Carrying Amount Autumnwood Investments LLC — $ 2,020 — $ 2,092 200 RHC Hoover, LLC (1) — — 63% 8,886 BBA-EP320 II, L.L.C., BBA-Ten10 II, L.L.C., and Lexington on the Green Apartments, L.L.C. (collectively) 45% 8,222 45% 7,949 Total - Equity Method $ 10,242 $ 18,927 (1) On March 31, 2017 , the Company reconsidered its evaluation of its variable interest in 200 RHC Hoover, LLC ("Riverchase Landing") and determined that it became the primary beneficiary of Riverchase Landing. Accordingly, on this date, the Company consolidated Riverchase Landing into its condensed consolidated financial statements (s ee Note 10). The Company's investments in unconsolidated entities accounted for under the equity method using the fair value option consist of the following as of September 30, 2017 and December 31, 2016 (dollar amounts in thousands): September 30, 2017 December 31, 2016 Investment Name Ownership Interest Carrying Amount Ownership Interest Carrying Amount Morrocroft Neighborhood Stabilization Fund II, LP 11% $ 11,206 11% $ 9,732 Evergreens JV Holdings, LLC 85% 4,120 85% 3,810 Bent Tree JV Holdings, LLC (1) — — 78% 9,890 Summerchase LR Partners LLC (1) — — 80% 4,410 Lake Mary Realty Partners, LLC (1) — — 80% 7,690 The Preserve at Port Royal Venture, LLC 77% 12,850 77% 12,280 WR Savannah Holdings, LLC 90% 12,850 90% 12,520 Total - Fair Value Option $ 41,026 $ 60,332 (1) The unconsolidated entity redeemed the Company's investment in the three months ended September 30, 2017. The following table presents income from investments in unconsolidated entities for the three and nine months ended September 30, 2017 and September 30, 2016 (dollar amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, Investment Name 2017 2016 2017 2016 Autumnwood Investments LLC $ 64 $ 71 $ 137 $ 213 200 RHC Hoover, LLC — 276 275 1,091 BBA-EP320 II, L.L.C., BBA-Ten10 II, L.L.C., and Lexington on the Green Apartments, L.L.C. (collectively) 252 189 741 189 RiverBanc LLC (1) — — — 125 Kiawah River View Investors LLC ("KRVI") (1) — — — 1,250 RB Development Holding Company, LLC (1) — — — 107 RB Multifamily Investors LLC (1) — — — 2,262 Morrocroft Neighborhood Stabilization Fund II, LP 394 244 1,374 702 Evergreens JV Holdings, LLC 161 79 464 89 Bent Tree JV Holdings, LLC (2) 1,210 157 1,795 257 Summerchase LR Partners LLC (2) 194 190 556 200 Lake Mary Realty Partners, LLC (2) 2,312 238 2,745 258 The Preserve at Port Royal Venture, LLC 440 392 1,266 492 WR Savannah Holdings, LLC 405 362 1,030 422 (1) As of May 16, 2016, RiverBanc LLC, RB Development Holding Company, LLC, and RB Multifamily Investors LLC became wholly-owned subsidiaries of the Company as a result of the Company's acquisition of the remaining ownership interests in those entities held by other unaffiliated entities ( see Note 23 ). Also as of May 16, 2016, the Company consolidated KRVI into its condensed consolidated financial statements ( see Note 10 ). (2) Includes income recognized from redemption of the Company's investment during the three and nine months ended September 30, 2017. |
Mezzanine Loan and Preferred 40
Mezzanine Loan and Preferred Equity Investments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | |
Schedule of Mezzanine Loans and Preferred Equity Investments | Mezzanine loan and preferred equity investments consist of the following as of September 30, 2017 and December 31, 2016 (dollar amounts in thousands): September 30, 2017 December 31, 2016 Investment amount $ 124,172 $ 101,154 Deferred loan fees, net (1,594 ) (1,004 ) Total $ 122,578 $ 100,150 The geographic concentrations of credit risk exceeding 5% of the total mezzanine loan and preferred equity investment amounts as of September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 December 31, 2016 Texas 27.5 % 43.3 % New York 21.6 % — Virginia 12.3 % 14.9 % South Carolina 7.9 % 9.4 % Kentucky 5.9 % 7.2 % The following tables present the classification and carrying value of unconsolidated VIEs as of September 30, 2017 and December 31, 2016 (dollar amounts in thousands): September 30, 2017 Investment securities, available for sale, at fair value Receivables and other assets Mezzanine loan and preferred equity investments Investment in unconsolidated entities Total Multi-family CMBS $ 46,623 $ 73 $ — $ — $ 46,696 Mezzanine loan on multi-family properties — — 6,875 — 6,875 Preferred equity investment on multi-family properties — — 115,703 10,242 125,945 Equity investment in entities that invest in multi-family properties — — — 24,056 24,056 Total assets $ 46,623 $ 73 $ 122,578 $ 34,298 $ 203,572 December 31, 2016 Investment securities, available for sale, at fair value Receivables and other assets Mezzanine loan and preferred equity investments Investment in unconsolidated entities Total Multi-family CMBS $ 43,897 $ 74 $ — $ — $ 43,971 Mezzanine loan on multi-family properties — — 18,881 — 18,881 Preferred equity investment on multi-family properties — — 81,269 18,928 100,197 Equity investment in entities that invest in multi-family properties — — — 22,252 22,252 Total assets $ 43,897 $ 74 $ 100,150 $ 41,180 $ 185,301 The following table summarizes the Company’s securitized debt collateralized by multi-family CMBS and distressed residential mortgage loans (dollar amounts in thousands): Multi-family CMBS Re-securitization (1) Distressed Residential Mortgage Loan Securitizations Principal Amount at September 30, 2017 $ 33,399 $ 70,374 Principal Amount at December 31, 2016 $ 33,553 $ 132,319 Carrying Value at September 30, 2017 (2) $ 28,946 $ 69,425 Carrying Value at December 31, 2016 (2) $ 28,332 $ 130,535 Pass-through rate of Notes issued 5.35% 4.00% (1) The Company engaged in the re-securitization transaction primarily for the purpose of obtaining non-recourse financing on a portion of its multi-family CMBS portfolio. As a result of engaging in this transaction, the Company remains economically exposed to the first loss position on the underlying multi-family CMBS transferred to the Consolidated VIE. The holders of the Note issued in this re-securitization transaction have no recourse to the general credit of the Company, but the Company does have the obligation, under certain circumstances, to repurchase assets upon the breach of certain representations and warranties. The Company will receive all remaining cash flow, if any, through its retained ownership. (2) Classified as securitized debt in the liability section of the Company’s accompanying condensed consolidated balance sheets, net of debt issuance costs. |
Use of Special Purpose Entiti41
Use of Special Purpose Entities and Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Variable Interest Entity [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets and liabilities of Riverchase Landing and The Clusters at the Changeover Date (dollar amounts in thousands). The estimated fair values shown below are provisional measurements that are based upon preliminary financial information provided by Riverchase Landing and The Clusters and are subject to change. Cash $ 112 Operating real estate (1) 62,322 Lease intangibles (1) 5,340 Receivables and other assets 2,260 Total assets 70,034 Mortgages payable 51,570 Accrued expenses and other liabilities 1,519 Total liabilities 53,089 Non-controlling interest (2) 4,462 Net assets consolidated $ 12,483 (1) Reclassified to real estate held for sale in consolidated variable interest entities on the condensed consolidated balance sheets ( see Note 11 ). (2) Represents third party ownership of membership interests in Riverchase Landing and The Clusters. The fair value of the non-controlling interests in Riverchase Landing and The Clusters, both private companies, was estimated using assumptions for the timing and amount of expected future cash flows from the underlying multi-family apartment communities and a discount rate. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed by the Company at the Acquisition Date (dollar amounts in thousands). The membership interest purchase agreement for the acquisition of RiverBanc included a post-closing working capital adjustment that was calculated at $20 thousand and settled with the sellers of RiverBanc on July 15, 2016. Additionally, the excess severance holdback amount described above was settled with the sellers of RiverBanc on July 15, 2016. The Company engaged a third party for valuations of certain intangible assets. Cash $ 4,325 Investment in unconsolidated entities 52,176 Mezzanine loan and preferred equity investments 23,638 Real estate under development (1) 14,922 Receivables and other assets 911 Intangible assets (1) 3,490 Total identifiable assets acquired 99,462 Construction loan payable (2) 8,499 Accrued expenses and other liabilities 2,864 Total liabilities assumed 11,363 Preferred equity (3) 56,697 Net identifiable assets acquired 31,402 Goodwill (4) 25,222 Gain on bargain purchase (5) (65 ) Non-controlling interest (6) (3,078 ) Net assets acquired $ 53,481 (1) Included in receivables and other assets on the condensed consolidated balance sheets. (2) Construction loan payable to the Company is eliminated on the condensed consolidated balance sheets. (3) Includes $40.4 million of preferred equity owned by the Company that is eliminated on the condensed consolidated balance sheets. Remaining $16.3 million of preferred equity owned by third parties was redeemed on June 10, 2016 and June 24, 2016. (4) Goodwill recognized in the acquisition of RiverBanc. (5) Gain on bargain purchase recognized in the acquisitions of RBMI and RBDHC in the year ended December 31, 2016 . (6) Represents third-party ownership of KRVI membership interests ( see Note 10 ). The Company consolidates its investment in KRVI. The third-party ownership in KRVI is represented in the condensed consolidated financial statements and the pro forma net income attributable to the Company's common stockholders as non-controlling interests. The fair value of the non-controlling interests in KRVI was estimated to be $3.1 million. The fair value of the non-controlling interests in KRVI, a private company, was estimated using assumptions for the timing and amount of expected future cash flow for income and realization events for the underlying real estate. |
Schedule of Assets and Liabilities of Consolidated VIE's | The following table presents the carrying value and estimated fair value of the Company’s financial instruments at September 30, 2017 and December 31, 2016 , respectively (dollar amounts in thousands): September 30, 2017 December 31, 2016 Fair Value Hierarchy Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets: Cash and cash equivalents Level 1 $ 101,904 $ 101,904 $ 83,554 $ 83,554 Investment securities available for sale (1) Level 1, 2 or 3 674,161 674,161 818,976 818,976 Residential mortgage loans held in securitization trusts (net) Level 3 79,875 77,412 95,144 88,718 Distressed residential mortgage loans, at carrying value (2) Level 3 369,651 374,169 503,094 504,915 Residential mortgage loans, at fair value Level 3 69,512 69,512 17,769 17,769 Multi-family loans held in securitization trusts Level 3 8,399,334 8,399,334 6,939,844 6,939,844 Derivative assets Level 1 or 2 182,115 182,115 150,296 150,296 Mortgage loans held for sale (net) (3) Level 3 6,797 6,899 7,847 7,959 Mortgage loans held for investment (3) Level 3 1,760 1,900 19,529 19,641 Mezzanine loan and preferred equity investments (4) Level 3 122,578 124,436 100,150 101,408 Investment in unconsolidated entities (5) Level 3 51,268 51,342 79,259 79,390 Receivable for securities sold Level 1 1,261 1,261 — — Financial Liabilities: Financing arrangements, portfolio investments Level 2 608,304 608,304 773,142 773,142 Financing arrangements, residential mortgage loans Level 2 160,562 160,562 192,419 192,419 Residential collateralized debt obligations Level 3 76,867 72,428 91,663 85,568 Multi-family collateralized debt obligations Level 3 7,990,619 7,990,619 6,624,896 6,624,896 Securitized debt Level 3 98,371 105,768 158,867 163,884 Derivative liabilities Level 1 or 2 467 467 498 498 Payable for securities purchased Level 1 181,718 181,718 148,015 148,015 Subordinated debentures Level 3 45,000 44,989 45,000 43,132 Convertible notes Level 2 128,273 138,697 — — (1) Includes $46.6 million and $43.9 million of investment securities for sale held in securitization trusts as of September 30, 2017 and December 31, 2016 , respectively. (2) Includes distressed residential mortgage loans held in securitization trusts with a carrying value amounting to approximately $134.0 million and $195.3 million at September 30, 2017 and December 31, 2016 , respectively, and distressed residential mortgage loans with a carrying value amounting to approximately $235.7 million and $307.7 million at September 30, 2017 and December 31, 2016 , respectively. (3) Included in receivables and other assets in the accompanying condensed consolidated balance sheets. (4) Includes mezzanine loan and preferred equity investments accounted for as loans ( see Note 9 ). (5) Includes investments in unconsolidated entities accounted for under the fair value option with a carrying value of $41.0 million and $60.3 million at September 30, 2017 and December 31, 2016 , respectively ( see Note 8) . |
Summary of Classification and Carrying Value of Unconsolidated VIE's | Mezzanine loan and preferred equity investments consist of the following as of September 30, 2017 and December 31, 2016 (dollar amounts in thousands): September 30, 2017 December 31, 2016 Investment amount $ 124,172 $ 101,154 Deferred loan fees, net (1,594 ) (1,004 ) Total $ 122,578 $ 100,150 The geographic concentrations of credit risk exceeding 5% of the total mezzanine loan and preferred equity investment amounts as of September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 December 31, 2016 Texas 27.5 % 43.3 % New York 21.6 % — Virginia 12.3 % 14.9 % South Carolina 7.9 % 9.4 % Kentucky 5.9 % 7.2 % The following tables present the classification and carrying value of unconsolidated VIEs as of September 30, 2017 and December 31, 2016 (dollar amounts in thousands): September 30, 2017 Investment securities, available for sale, at fair value Receivables and other assets Mezzanine loan and preferred equity investments Investment in unconsolidated entities Total Multi-family CMBS $ 46,623 $ 73 $ — $ — $ 46,696 Mezzanine loan on multi-family properties — — 6,875 — 6,875 Preferred equity investment on multi-family properties — — 115,703 10,242 125,945 Equity investment in entities that invest in multi-family properties — — — 24,056 24,056 Total assets $ 46,623 $ 73 $ 122,578 $ 34,298 $ 203,572 December 31, 2016 Investment securities, available for sale, at fair value Receivables and other assets Mezzanine loan and preferred equity investments Investment in unconsolidated entities Total Multi-family CMBS $ 43,897 $ 74 $ — $ — $ 43,971 Mezzanine loan on multi-family properties — — 18,881 — 18,881 Preferred equity investment on multi-family properties — — 81,269 18,928 100,197 Equity investment in entities that invest in multi-family properties — — — 22,252 22,252 Total assets $ 43,897 $ 74 $ 100,150 $ 41,180 $ 185,301 The following table summarizes the Company’s securitized debt collateralized by multi-family CMBS and distressed residential mortgage loans (dollar amounts in thousands): Multi-family CMBS Re-securitization (1) Distressed Residential Mortgage Loan Securitizations Principal Amount at September 30, 2017 $ 33,399 $ 70,374 Principal Amount at December 31, 2016 $ 33,553 $ 132,319 Carrying Value at September 30, 2017 (2) $ 28,946 $ 69,425 Carrying Value at December 31, 2016 (2) $ 28,332 $ 130,535 Pass-through rate of Notes issued 5.35% 4.00% (1) The Company engaged in the re-securitization transaction primarily for the purpose of obtaining non-recourse financing on a portion of its multi-family CMBS portfolio. As a result of engaging in this transaction, the Company remains economically exposed to the first loss position on the underlying multi-family CMBS transferred to the Consolidated VIE. The holders of the Note issued in this re-securitization transaction have no recourse to the general credit of the Company, but the Company does have the obligation, under certain circumstances, to repurchase assets upon the breach of certain representations and warranties. The Company will receive all remaining cash flow, if any, through its retained ownership. (2) Classified as securitized debt in the liability section of the Company’s accompanying condensed consolidated balance sheets, net of debt issuance costs. |
Schedule of Contractual Maturities of Financing VIE's | The following table presents contractual maturity information about the Financing VIEs’ securitized debt as of September 30, 2017 and December 31, 2016 , respectively (dollar amounts in thousands): Scheduled Maturity (principal amount) September 30, 2017 December 31, 2016 Within 24 months $ 70,374 $ — Over 24 months to 36 months — 132,319 Over 36 months 33,399 33,553 Total outstanding principal 103,773 165,872 Discount (4,567 ) (5,589 ) Debt Issuance Cost (835 ) (1,416 ) Carrying value $ 98,371 $ 158,867 As of September 30, 2017 , maturities for debt on the Company's condensed consolidated balance sheet are as follows (dollar amounts in thousands): Fiscal Year Total 2017 $ — 2018 — 2019 6,013 2020 — 2021 — 2022 161,674 Thereafter 72,917 $ 240,604 |
Financing VIE | |
Variable Interest Entity [Line Items] | |
Schedule of Assets and Liabilities of Consolidated VIE's | Assets and Liabilities of Consolidated VIEs as of September 30, 2017 (dollar amounts in thousands): Financing VIEs Other VIEs Multi-family CMBS Re- securitization (1) Distressed Residential Mortgage Loan Securitization (2) Residential Mortgage Loan Securitization Multi- family CMBS (3) Other Total Cash and cash equivalents $ — $ — $ — $ — $ 1,194 $ 1,194 Investment securities available for sale, at fair value held in securitization trusts 46,623 — — — — 46,623 Residential mortgage loans held in securitization trusts (net) — — 79,875 — — 79,875 Distressed residential mortgage loans held in securitization trust (net) — 133,972 — — — 133,972 Multi-family loans held in securitization trusts, at fair value 1,174,341 — — 7,224,993 — 8,399,334 Real estate held for sale in consolidated variable interest entities — — — — 64,097 64,097 Receivables and other assets 4,217 19,795 1,585 23,959 24,701 74,257 Total assets $ 1,225,181 $ 153,767 $ 81,460 $ 7,248,952 $ 89,992 $ 8,799,352 Residential collateralized debt obligations $ — $ — $ 76,867 $ — $ — $ 76,867 Multi-family collateralized debt obligations, at fair value 1,112,651 — — 6,877,968 — 7,990,619 Securitized debt 28,946 69,425 — — — 98,371 Mortgages and notes payable in consolidated variable interest entities — — — — 57,342 57,342 Accrued expenses and other liabilities 4,200 1,766 22 23,733 2,621 32,342 Total liabilities $ 1,145,797 $ 71,191 $ 76,889 $ 6,901,701 $ 59,963 $ 8,255,541 (1) The Company classified the multi-family CMBS issued by two K-Series securitizations and held by this Financing VIE as available for sale securities as the purpose is not to trade these securities. The Financing VIE consolidated one K-Series securitization that issued certain of the multi-family CMBS owned by the Company, including its assets, liabilities, income and expenses, in its financial statements, as based on a number of factors, the Company determined that it was the primary beneficiary and has a controlling financial interest in this particular K-Series securitization ( see Note 7 ). (2) The Company engaged in this transaction for the purpose of financing distressed residential mortgage loans acquired by the Company. The distressed residential mortgage loans serving as collateral for the financing are comprised of performing, re-performing and, to a lesser extent, non-performing, fixed and adjustable-rate, fully-amortizing, interest only and balloon, seasoned mortgage loans secured by first liens on one to four family properties. Balances as of September 30, 2017 are related to a securitization transaction that closed in April 2016 that involved the issuance of $177.5 million of Class A Notes representing the beneficial ownership in a pool of performing and re-performing seasoned mortgage loans. The Company holds 5% of the Class A Notes issued as part of the securitization transaction, which were eliminated in consolidation. (3) Five of the Company’s Freddie Mac-sponsored multi-family K-Series securitizations included in the Consolidated K-Series were not held in a Financing VIE as of September 30, 2017 . Assets and Liabilities of Consolidated VIEs as of December 31, 2016 (dollar amounts in thousands): Financing VIEs Other VIEs Multi-family CMBS Re- securitization (1) Distressed Residential Mortgage Loan Securitization (2) Residential Mortgage Loan Securitization Multi- family CMBS (3) Other Total Cash and cash equivalents $ — $ — $ — $ — $ 186 $ 186 Investment securities available for sale, at fair value held in securitization trusts 43,897 — — — — 43,897 Residential mortgage loans held in securitization trusts (net) — — 95,144 — — 95,144 Distressed residential mortgage loans held in securitization trust (net) — 195,347 — — — 195,347 Multi-family loans held in securitization trusts, at fair value 1,196,835 — — 5,743,009 — 6,939,844 Receivables and other assets 4,420 13,610 912 19,753 17,759 56,454 Total assets $ 1,245,152 $ 208,957 $ 96,056 $ 5,762,762 $ 17,945 $ 7,330,872 Residential collateralized debt obligations $ — $ — $ 91,663 $ — $ — $ 91,663 Multi-family collateralized debt obligations, at fair value 1,137,002 — — 5,487,894 — 6,624,896 Securitized debt 28,332 130,535 — — — 158,867 Mortgages and notes payable in consolidated variable interest entities — — — — 1,588 1,588 Accrued expenses and other liabilities 4,400 1,336 20 19,753 13 25,522 Total liabilities $ 1,169,734 $ 131,871 $ 91,683 $ 5,507,647 $ 1,601 $ 6,902,536 (1) The Company classified the multi-family CMBS issued by two K-Series securitizations and held by this Financing VIE as available for sale securities as the purpose is not to trade these securities. The Financing VIE consolidated one K-Series securitization that issued certain of the multi-family CMBS owned by the Company, including its assets, liabilities, income and expenses, in its financial statements, as based on a number of factors, the Company determined that it was the primary beneficiary and has a controlling financial interest in this particular K-Series securitization ( see Note 7 ). (2) The Company engaged in this transaction for the purpose of financing distressed residential mortgage loans acquired by the Company. The distressed residential mortgage loans serving as collateral for the financing are comprised of performing, re-performing and, to a lesser extent, non-performing, fixed and adjustable-rate, fully-amortizing, interest only and balloon, seasoned mortgage loans secured by first liens on one to four family properties. Balances as of December 31, 2016 are related to a securitization transaction that closed in April 2016 that involved the issuance of $177.5 million of Class A Notes representing the beneficial ownership in a pool of performing and re-performing seasoned mortgage loans. The Company holds 5% of the Class A Notes issued as part of the securitization transaction, which have been eliminated in consolidation. (3) Four of the Company’s Freddie Mac-sponsored multi-family K-Series securitizations included in the Consolidated K-Series were not held in a Financing VIE as of December 31, 2016 . In October 2016, the Company repaid $55.9 million of outstanding notes from its November 2013 collateralized recourse financing, which was comprised of securities issued from three separate Freddie Mac-sponsored multi-family K-Series securitizations. In connection with the repayment of the notes, the Company terminated and de-consolidated the Financing VIE that facilitated this financing transaction and securities serving as collateral on the notes were transferred back to the Company. |
Real Estate Held for Sale in 42
Real Estate Held for Sale in Consolidated VIEs (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Real Estate [Abstract] | |
Schedule of Provisional Summary Real Estate Held for Sale | The following is a provisional summary of the real estate held for sale in both Riverchase Landing and The Clusters as of September 30, 2017 (dollar amounts in thousands): Land $ 7,000 Building and improvements 53,435 Furniture, fixtures and equipment 2,078 Lease intangible 5,340 Real estate held for sale before accumulated depreciation and amortization 67,853 Accumulated depreciation (1) (647 ) Accumulated amortization of lease intangible (1) (3,109 ) Real estate held for sale in consolidated variable interest entities $ 64,097 (1) Depreciation and amortization expenses for the three months ended September 30, 2017 totaled $0.2 million and $0.9 million , respectively. Depreciation and amortization expenses for the nine months ended September 30, 2017 totaled $0.6 million and $3.1 million , respectively. |
Derivative Instruments and He43
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Activity of Derivative Instruments Not Designated as Hedges | The tables below summarize the activity of derivative instruments not designated as hedges for the nine months ended September 30, 2017 and 2016 , respectively (dollar amounts in thousands): Notional Amount For the Nine Months Ended September 30, 2017 Derivatives Not Designated as Hedging Instruments December 31, 2016 Additions Settlement, Expiration or Exercise September 30, 2017 TBA securities $ 149,000 $ 1,466,000 $ (1,440,000 ) $ 175,000 U.S. Treasury futures 17,100 123,900 (135,500 ) 5,500 Interest rate swap futures (151,700 ) 413,800 (349,000 ) (86,900 ) Eurodollar futures (2,575,000 ) 5,989,000 (5,054,000 ) (1,640,000 ) Options on U.S. Treasury futures — 5,000 (5,000 ) — Swaptions 154,000 — — 154,000 Interest rate swaps 15,000 — — 15,000 Notional Amount For the Nine Months Ended September 30, 2016 Derivatives Not Designated as Hedging Instruments December 31, 2015 Additions Settlement, Expiration or Exercise September 30, 2016 TBA securities $ 222,000 $ 2,925,000 $ (2,866,000 ) $ 281,000 U.S. Treasury futures — 189,800 (146,400 ) 43,400 Interest rate swap futures (137,200 ) 718,700 (700,300 ) (118,800 ) Eurodollar futures (2,769,000 ) 4,134,000 (4,838,000 ) (3,473,000 ) Options on U.S. Treasury futures 28,000 91,000 (114,000 ) 5,000 Swaptions 159,000 — (5,000 ) 154,000 Interest rate swaps 10,000 5,000 — 15,000 |
Schedule of Components of Realized and Unrealized Gains and Losses of Derivative Not Designated as Hedging Instruments | The following tables present the components of realized and unrealized gains and losses related to our derivative instruments that were not designated as hedging instruments included in other income category in our condensed consolidated statements of operations for the three and nine months ended September 30, 2017 and 2016 (dollar amounts in thousands): Three Months Ended September 30, 2017 2016 Realized Gains (Losses) Unrealized Gains (Losses) Realized Gains (Losses) Unrealized Gains (Losses) TBA securities $ 1,470 $ (265 ) $ 4,981 $ (2,547 ) Eurodollar futures (1) 62 39 (1,674 ) 3,877 Interest rate swaps — 36 — 65 Swaptions — 171 — 190 U.S. Treasury and interest rate swap futures and options (583 ) 505 462 (790 ) Total $ 949 $ 486 $ 3,769 $ 795 Nine Months Ended September 30, 2017 2016 Realized Gains (Losses) Unrealized Gains (Losses) Realized Gains (Losses) Unrealized Gains (Losses) TBA securities $ 3,285 $ (1,080 ) $ 13,489 $ 883 Eurodollar futures (1) 849 (886 ) (3,180 ) 547 Interest rate swaps — 110 — 40 Swaptions — 239 — 212 U.S. Treasury and interest rate swap futures and options (999 ) 699 (2,534 ) (1,251 ) Total $ 3,135 $ (918 ) $ 7,775 $ 431 (1) At September 30, 2017 , the Eurodollar futures consist of 1,640 contracts with expiration dates ranging between December 2017 and June 2019 . |
Schedule of Derivative Instruments Designated as Hedging Instruments and Location in Condensed Consolidated Balance Sheet | The following table presents the fair value of derivative instruments designated as hedging instruments and their location in the Company’s condensed consolidated balance sheets at September 30, 2017 and December 31, 2016 , respectively (dollar amounts in thousands): Derivatives Designated as Hedging Instruments Balance Sheet Location Total Notional Amount September 30, 2017 December 31, 2016 Interest rate swaps Derivative asset $ 80,000 $ 18 $ — Interest rate swaps Derivative asset 65,000 — 108 Interest rate swaps Derivative liabilities 150,000 — 6 |
Schedule of Derivative Instruments, Effect on Accumulated Other Comprehensive Income | The following table presents the impact of the Company’s derivative instruments on the Company’s accumulated other comprehensive income for the nine months ended September 30, 2017 and 2016 , respectively (dollar amounts in thousands): Nine Months Ended September 30, Derivatives Designated as Hedging Instruments 2017 2016 Accumulated other comprehensive income for derivative instruments: Balance at beginning of the period $ 102 $ 304 Unrealized loss on interest rate swaps (84 ) (607 ) Balance at end of the period $ 18 $ (303 ) |
Schedule of Interest Rate Swaps Designated as Hedging Instruments | The following table details the impact of the Company’s interest rate swaps designated as hedging instruments included in interest expense for the three and nine months ended September 30, 2017 and 2016 , respectively (dollar amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Interest income-investment securities $ 176 $ — $ 249 $ — Interest expense-investment securities — 177 — 604 |
Schedule of Interest Rate Swaps, Variable and Fixed Interest Rates | The following table presents information about our interest rate swaps (includes interest rate swaps in our Agency IO portfolio) whereby we receive floating rate payments in exchange for fixed rate payments as of September 30, 2017 and December 31, 2016 , respectively (dollar amounts in thousands): September 30, 2017 December 31, 2016 Swap Maturities Notional Amount Weighted Average Fixed Interest Rate Weighted Average Notional Amount Weighted Average Fixed Interest Rate Weighted Average 2017 $ 80,000 0.71 % 1.23 % $ 215,000 0.83 % 0.74 % 2019 10,000 2.25 % 1.32 % 10,000 2.25 % 0.97 % Total $ 90,000 0.88 % 1.24 % $ 225,000 0.90 % 0.75 % The following table presents information about our interest rate swaps in our Agency IO portfolio whereby we receive fixed rate payments in exchange for floating rate payments as of September 30, 2017 and December 31, 2016 , respectively (dollar amounts in thousands): September 30, 2017 December 31, 2016 Swap Maturities Notional Weighted Average Weighted Average Notional Weighted Average Weighted Average 2026 $ 5,000 1.80 % 1.33 % $ 5,000 1.80 % 1.00 % Total $ 5,000 1.80 % 1.33 % $ 5,000 1.80 % 1.00 % |
Not Designated as Hedging Instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Derivative Instruments | The following table presents the fair value of derivative instruments that were not designated as hedging instruments and their location in our condensed consolidated balance sheets at September 30, 2017 and December 31, 2016 , respectively (dollar amounts in thousands): Derivatives Not Designated Balance Sheet Location September 30, 2017 December 31, 2016 Eurodollar futures Derivative assets $ 289 $ 1,175 TBA securities Derivative assets 180,562 148,139 Interest rate swap futures Derivative assets 1,228 444 Swaptions Derivative assets 18 431 U.S. Treasury futures Derivative liabilities 193 107 Interest rate swaps (1) Derivative liabilities 274 384 (1) Includes interest rate swaps in our Agency IO portfolio. There was no netting of interest rate swaps at September 30, 2017 and December 31, 2016 . |
Financing Arrangements, Portf44
Financing Arrangements, Portfolio Investments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Banking and Thrift [Abstract] | |
Schedule of Borrowings Under Financing Arrangements and Assets Pledged as Collateral | The following table presents detailed information about the Company’s borrowings under financing arrangements and associated assets pledged as collateral at September 30, 2017 and December 31, 2016 (dollar amounts in thousands): September 30, 2017 December 31, 2016 Outstanding Financing Arrangements Fair Value of Collateral Pledged Amortized Cost of Collateral Pledged Outstanding Financing Arrangements Fair Value of Collateral Pledged Amortized Cost of Collateral Pledged Agency ARMs $ 80,327 $ 85,117 $ 85,990 $ 102,088 $ 109,552 $ 110,903 Agency Fixed Rate 248,936 261,450 270,587 289,619 308,411 318,544 Agency IOs/U.S. Treasury Securities 26,048 36,702 47,913 60,862 82,153 93,819 Non Agency 48,773 64,917 63,792 113,749 150,944 149,969 CMBS (1) 204,220 283,669 221,440 206,824 294,083 216,092 Balance at end of the period $ 608,304 $ 731,855 $ 689,722 $ 773,142 $ 945,143 $ 889,327 (1) Includes first loss tranche PO and mezzanine CMBS securities with a fair value amounting to $237.8 million and $254.6 million included in the Consolidated K-Series as of September 30, 2017 and December 31, 2016 , respectively. |
Schedule of Contractual Maturities of Outstanding Financing Arrangements | The following table presents contractual maturity information about the Company’s outstanding financing arrangements, at September 30, 2017 and December 31, 2016 (dollar amounts in thousands): Contractual Maturity September 30, 2017 December 31, 2016 Within 30 days $ 608,304 $ 729,134 Over 30 days to 90 days — 44,008 Over 90 days — — Total $ 608,304 $ 773,142 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Subordinated Borrowing | The following table summarizes the key details of the Company’s subordinated debentures as of September 30, 2017 and December 31, 2016 (dollar amounts in thousands): NYM Preferred Trust I NYM Preferred Trust II Principal value of trust preferred securities $ 25,000 $ 20,000 Interest Rate Three month LIBOR plus 3.75%, resetting quarterly Three month LIBOR plus 3.95%, resetting quarterly Scheduled maturity March 30, 2035 October 30, 2035 |
Schedule of Long-term Debt Instruments | The mortgages and notes payable in the consolidated VIEs are described below (dollar amounts in thousands): Assumption/Origination Date Mortgage Note Amount as of September 30, 2017 Maturity Date Interest Rate Net Deferred Finance Costs Riverchase Landing 10/2/2015 (1) $ 23,674 11/1/2022 3.88 % $ 194 The Clusters 6/30/2014 $ 27,917 7/6/2024 4.49 % $ 68 KRVI 12/16/2016 $ 6,013 12/16/2019 6.00 % $ — (1) Origination date of 10/26/2012 |
Schedule of Maturities of Long-term Debt | The following table presents contractual maturity information about the Financing VIEs’ securitized debt as of September 30, 2017 and December 31, 2016 , respectively (dollar amounts in thousands): Scheduled Maturity (principal amount) September 30, 2017 December 31, 2016 Within 24 months $ 70,374 $ — Over 24 months to 36 months — 132,319 Over 36 months 33,399 33,553 Total outstanding principal 103,773 165,872 Discount (4,567 ) (5,589 ) Debt Issuance Cost (835 ) (1,416 ) Carrying value $ 98,371 $ 158,867 As of September 30, 2017 , maturities for debt on the Company's condensed consolidated balance sheet are as follows (dollar amounts in thousands): Fiscal Year Total 2017 $ — 2018 — 2019 6,013 2020 — 2021 — 2022 161,674 Thereafter 72,917 $ 240,604 |
Fair Value of Financial Instr46
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Measured at Fair Value on a Recurring Basis | The following table presents the Company’s financial instruments measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 , respectively, on the Company’s condensed consolidated balance sheets (dollar amounts in thousands): Measured at Fair Value on a Recurring Basis at September 30, 2017 December 31, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets carried at fair value Investment securities available for sale: Agency RMBS $ — $ 415,032 $ — $ 415,032 $ — $ 526,363 $ — $ 526,363 Non-Agency RMBS — 133,022 — 133,022 — 163,284 — 163,284 U.S. Treasury Securities 2,924 — — 2,924 2,887 — — 2,887 CMBS — 76,560 46,623 123,183 — 82,545 43,897 126,442 Multi-family loans held in securitization trusts — — 8,399,334 8,399,334 — — 6,939,844 6,939,844 Residential mortgage loans, at fair value — — 69,512 69,512 — — 17,769 17,769 Derivative assets: TBA Securities — 180,562 — 180,562 — 148,139 — 148,139 Interest rate swap futures 1,228 — — 1,228 444 — — 444 Interest rate swaps — 18 — 18 — 108 — 108 Swaptions — 18 — 18 — 431 — 431 Eurodollar futures 289 — — 289 1,175 — — 1,175 Investment in unconsolidated entities — — 41,026 41,026 — — 60,332 60,332 Total $ 4,441 $ 805,212 $ 8,556,495 $ 9,366,148 $ 4,506 $ 920,870 $ 7,061,842 $ 7,987,218 Liabilities carried at fair value Multi-family collateralized debt obligations $ — $ — $ 7,990,619 $ 7,990,619 $ — $ — $ 6,624,896 $ 6,624,896 Derivative liabilities: U.S. Treasury futures 193 — — 193 107 — — 107 Interest rate swaps — 274 — 274 — 391 — 391 Total $ 193 $ 274 $ 7,990,619 $ 7,991,086 $ 107 $ 391 $ 6,624,896 $ 6,625,394 |
Changes in Valuation of Level 3 Assets | The following table details changes in valuation for the Level 3 assets for the nine months ended September 30, 2017 and 2016 , respectively (amounts in thousands): Level 3 Assets: Nine Months Ended September 30, 2017 2016 Balance at beginning of period $ 7,061,842 $ 7,214,587 Total gains/(losses) (realized/unrealized) Included in earnings (1) 38,978 215,325 Included in other comprehensive income 208 178 Purchases 1,598,018 13,326 Transfers in (2) — 52,176 Transfers out (3) — (56,756 ) Contributions 1,300 2,000 Paydowns/Distributions (139,751 ) (93,129 ) Sales (4,100 ) — Balance at the end of period $ 8,556,495 $ 7,340,018 (1) Amounts included in interest income from multi-family loans held in securitization trusts, interest income from residential mortgage loans, realized gain on distressed residential mortgage loans, net gain on residential mortgage loans at fair value, unrealized gain on multi-family loans and debt held in securitization trusts, and other income. (2) Transfers into Level 3 include investments in unconsolidated entities held by RiverBanc and RBMI for which the Company accounts under the equity method of accounting with a fair value election. These transfers in are a result of the Company's acquisition of the outstanding membership interests in RiverBanc and RBMI that were not previously owned by the Company on May 16, 2016, which resulted in consolidation of these entities into the Company's financial statements ( see Note 23 ). (3) Transfers out of Level 3 represent the Company's previously held membership interests in RBMI and RBDHC that were accounted for under the equity method of accounting with a fair value election. These transfers out are a result of the Company's acquisition of the outstanding membership interests in RBMI and RBDHC that were not previously owned by the Company on May 16, 2016, which resulted in consolidation of these entities into the Company's financial statements ( see Note 23 ) . |
Changes in Valuation of Level 3 Liabilities | The following table details changes in valuation for the Level 3 liabilities for the nine months ended September 30, 2017 and 2016 , respectively (amounts in thousands): Level 3 Liabilities: Nine Months Ended September 30, 2017 2016 Balance at beginning of period $ 6,624,896 $ 6,818,901 Total gains/(losses) (realized/unrealized) Included in earnings (1) (1,389 ) 186,855 Purchases 1,472,073 — Paydowns (104,961 ) (91,901 ) Balance at the end of period $ 7,990,619 $ 6,913,855 (1) Amounts included in interest expense on Multi-Family CDOs and unrealized gain on multi-family loans and debt held in securitization trusts. |
Changes in Unrealized Gains (Losses) Included in Earnings for Level 3 Assets and Liabilities | The following table details the changes in unrealized gains (losses) included in earnings for our Level 3 multi-family loans and debt held in securitization trusts for the three and nine months ended September 30, 2017 and 2016 , respectively (dollar amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Change in unrealized (losses) gains – assets $ (19,767 ) $ (17,722 ) $ 56,995 $ 237,934 Change in unrealized gains (losses) – liabilities 22,120 18,460 (51,811 ) (235,594 ) Net change in unrealized gains included in earnings for assets and liabilities $ 2,353 $ 738 $ 5,184 $ 2,340 |
Schedule of Assets Measured at Fair Value on a Non-recurring Basis | The following table presents assets measured at fair value on a non-recurring basis as of September 30, 2017 and December 31, 2016 , respectively, on the condensed consolidated balance sheets (dollar amounts in thousands): Assets Measured at Fair Value on a Non-Recurring Basis at September 30, 2017 December 31, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Residential mortgage loans held in securitization trusts – impaired loans (net) $ — $ — $ 7,201 $ 7,201 $ — $ — $ 9,050 $ 9,050 Real estate owned held in residential securitization trusts — — 742 742 — — 150 150 |
Schedule of Gains (Losses) Incurred for Assets Measured at Fair Value on a Non-recurring Basis | The following table presents losses (gains) incurred for assets measured at fair value on a non-recurring basis for the three and nine months ended September 30, 2017 and 2016 , respectively, on the Company’s condensed consolidated statements of operations (dollar amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Residential mortgage loans held in securitization trusts – impaired loans (net) $ (199 ) $ 102 $ 6 $ 534 Real estate owned held in residential securitization trusts 297 46 303 23 |
Schedule of Carrying Value and Estimated Fair Value of Financial Instruments | The following table presents the carrying value and estimated fair value of the Company’s financial instruments at September 30, 2017 and December 31, 2016 , respectively (dollar amounts in thousands): September 30, 2017 December 31, 2016 Fair Value Hierarchy Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets: Cash and cash equivalents Level 1 $ 101,904 $ 101,904 $ 83,554 $ 83,554 Investment securities available for sale (1) Level 1, 2 or 3 674,161 674,161 818,976 818,976 Residential mortgage loans held in securitization trusts (net) Level 3 79,875 77,412 95,144 88,718 Distressed residential mortgage loans, at carrying value (2) Level 3 369,651 374,169 503,094 504,915 Residential mortgage loans, at fair value Level 3 69,512 69,512 17,769 17,769 Multi-family loans held in securitization trusts Level 3 8,399,334 8,399,334 6,939,844 6,939,844 Derivative assets Level 1 or 2 182,115 182,115 150,296 150,296 Mortgage loans held for sale (net) (3) Level 3 6,797 6,899 7,847 7,959 Mortgage loans held for investment (3) Level 3 1,760 1,900 19,529 19,641 Mezzanine loan and preferred equity investments (4) Level 3 122,578 124,436 100,150 101,408 Investment in unconsolidated entities (5) Level 3 51,268 51,342 79,259 79,390 Receivable for securities sold Level 1 1,261 1,261 — — Financial Liabilities: Financing arrangements, portfolio investments Level 2 608,304 608,304 773,142 773,142 Financing arrangements, residential mortgage loans Level 2 160,562 160,562 192,419 192,419 Residential collateralized debt obligations Level 3 76,867 72,428 91,663 85,568 Multi-family collateralized debt obligations Level 3 7,990,619 7,990,619 6,624,896 6,624,896 Securitized debt Level 3 98,371 105,768 158,867 163,884 Derivative liabilities Level 1 or 2 467 467 498 498 Payable for securities purchased Level 1 181,718 181,718 148,015 148,015 Subordinated debentures Level 3 45,000 44,989 45,000 43,132 Convertible notes Level 2 128,273 138,697 — — (1) Includes $46.6 million and $43.9 million of investment securities for sale held in securitization trusts as of September 30, 2017 and December 31, 2016 , respectively. (2) Includes distressed residential mortgage loans held in securitization trusts with a carrying value amounting to approximately $134.0 million and $195.3 million at September 30, 2017 and December 31, 2016 , respectively, and distressed residential mortgage loans with a carrying value amounting to approximately $235.7 million and $307.7 million at September 30, 2017 and December 31, 2016 , respectively. (3) Included in receivables and other assets in the accompanying condensed consolidated balance sheets. (4) Includes mezzanine loan and preferred equity investments accounted for as loans ( see Note 9 ). (5) Includes investments in unconsolidated entities accounted for under the fair value option with a carrying value of $41.0 million and $60.3 million at September 30, 2017 and December 31, 2016 , respectively ( see Note 8) . |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Preferred Stock | |
Class of Stock [Line Items] | |
Schedule of Dividends Declared | The following table presents the relevant dates with respect to quarterly cash dividends on the Series B Preferred Stock and Series C Preferred Stock declared from January 1, 2016 through September 30, 2017 : Series B Preferred Stock Series C Preferred Stock Declaration Date Record Date Payment Date Cash Dividend Per Share Declaration Date Record Date Payment Date Cash Dividend Per Share September 14, 2017 October 1, 2017 October 15, 2017 $ 0.484375 September 14, 2017 October 1, 2017 October 15, 2017 $ 0.4921875 June 14, 2017 July 1, 2017 July 15, 2017 0.484375 June 14, 2017 July 1, 2017 July 15, 2017 0.4921875 March 16, 2017 April 1, 2017 April 15, 2017 0.484375 March 16, 2017 April 1, 2017 April 15, 2017 0.4921875 December 15, 2016 January 1, 2017 January 15, 2017 0.484375 December 15, 2016 January 1, 2017 January 15, 2017 0.4921875 September 15, 2016 October 1, 2016 October 15, 2016 0.484375 September 15, 2016 October 1, 2016 October 15, 2016 0.4921875 June 16, 2016 July 1, 2016 July 15, 2016 0.484375 June 16, 2016 July 1, 2016 July 15, 2016 0.4921875 March 18, 2016 April 1, 2016 April 15, 2016 0.484375 March 18, 2016 April 1, 2016 April 15, 2016 0.4921875 |
Common Stock | |
Class of Stock [Line Items] | |
Schedule of Dividends Declared | The following table presents cash dividends declared by the Company on its common stock with respect to each of the quarterly periods commencing January 1, 2016 and ended September 30, 2017 : Period Declaration Date Record Date Payment Date Cash Dividend Per Share Third Quarter 2017 September 14, 2017 September 25, 2017 October 25, 2017 $ 0.20 Second Quarter 2017 June 14, 2017 June 26, 2017 July 25, 2017 0.20 First Quarter 2017 March 16, 2017 March 27, 2017 April 25, 2017 0.20 Fourth Quarter 2016 December 15, 2016 December 27, 2016 January 26, 2017 0.24 Third Quarter 2016 September 15, 2016 September 26, 2016 October 28, 2016 0.24 Second Quarter 2016 June 16, 2016 June 27, 2016 July 25, 2016 0.24 First Quarter 2016 March 18, 2016 March 28, 2016 April 25, 2016 0.24 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Dilutive Net Income Per Share | The following table presents the computation of basic and diluted earnings per common share for the periods indicated (dollar and share amounts in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Basic Earnings per Common Share Net income attributable to Company $ 27,845 $ 23,268 $ 61,364 $ 54,654 Less: Preferred stock dividends (3,225 ) (3,225 ) (9,675 ) (9,675 ) Net income attributable to Company's common stockholders $ 24,620 $ 20,043 $ 51,689 $ 44,979 Basic weighted average common shares outstanding 111,886 109,569 111,824 109,487 Basic Earnings per Common Share $ 0.22 $ 0.18 $ 0.46 $ 0.41 Diluted Earnings per Common Share: Net income attributable to Company 27,845 23,268 61,364 54,654 Less: Preferred stock dividends (3,225 ) (3,225 ) (9,675 ) (9,675 ) Add back: Interest expense on convertible notes for the period, net of tax 2,428 — 6,982 — Net income attributable to Company's common stockholders $ 27,048 $ 20,043 $ 58,671 $ 44,979 Weighted average common shares outstanding 111,886 109,569 111,824 109,487 Net effect of assumed convertible notes conversion to common shares 19,694 — 18,107 — Diluted weighted average common shares outstanding 131,580 109,569 129,931 109,487 Diluted Earnings per Common Share $ 0.21 $ 0.18 $ 0.45 $ 0.41 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Nonvested Restricted Stock Activity | A summary of the activity of the Company's non-vested restricted stock for the nine months ended September 30, 2017 and 2016 , respectively, is presented below: 2017 2016 Number of Non-vested Restricted Shares Weighted Average Per Share Grant Date Fair Value (1) Number of Non-vested Restricted Shares Weighted Average Per Share Grant Date Fair Value (1) Non-vested shares at January 1 319,058 $ 6.40 280,457 $ 7.63 Granted 332,921 6.54 160,453 5.11 Vested (229,051 ) 6.67 (121,852 ) 7.54 Non-vested shares as of September 30 422,928 6.36 319,058 6.40 Weighted-average fair value of restricted stock granted during the period 332,921 $ 6.54 160,453 $ 5.11 (1) The grant date fair value of restricted stock awards is based on the closing market price of the Company’s common stock at the grant date. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provision | The income tax provision for the three and nine months ended September 30, 2017 and September 30, 2016 is comprised of the following components (dollar amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Current income tax expense $ 541 $ 326 $ 2,280 $ 2,581 Deferred income tax (benefit) expense (34 ) (163 ) (93 ) 139 Total provision $ 507 $ 163 $ 2,187 $ 2,720 |
Schedule of Deferred Tax Assets and Liabilities | The major sources of temporary differences included in the deferred tax assets and their deferred tax effect as of September 30, 2017 and December 31, 2016 are as follows (dollar amounts in thousands): September 30, 2017 December 31, 2016 Deferred tax assets Net operating loss carryforward $ 2,174 $ 2,287 Net capital loss carryforward — 1,123 GAAP/Tax basis differences 3,556 3,059 Total deferred tax assets (1) 5,730 6,469 Deferred tax liabilities Deferred tax liabilities 200 303 Total deferred tax liabilities (2) 200 303 Valuation allowance (1) (5,248 ) (5,978 ) Total net deferred tax asset $ 282 $ 188 (1) Included in receivables and other assets in the accompanying condensed consolidated balance sheets. (2) Included in accrued expenses and other liabilities in the accompanying condensed consolidated balance sheets. |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Fair Value of Consideration Transferred | The estimated Acquisition Date fair value of the consideration transferred totaled $53.5 million, which consisted of the following (dollar amounts in thousands): Cash (1) $ 29,073 Contingent consideration 3,800 Fair value of previously held membership interests 20,608 Total consideration transferred $ 53,481 (1) Includes $16.3 million paid to Donlon Family LLC and reflects a post-closing working capital adjustment of $20 thousand delivered to the sellers of RiverBanc on July 15, 2016. |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets and liabilities of Riverchase Landing and The Clusters at the Changeover Date (dollar amounts in thousands). The estimated fair values shown below are provisional measurements that are based upon preliminary financial information provided by Riverchase Landing and The Clusters and are subject to change. Cash $ 112 Operating real estate (1) 62,322 Lease intangibles (1) 5,340 Receivables and other assets 2,260 Total assets 70,034 Mortgages payable 51,570 Accrued expenses and other liabilities 1,519 Total liabilities 53,089 Non-controlling interest (2) 4,462 Net assets consolidated $ 12,483 (1) Reclassified to real estate held for sale in consolidated variable interest entities on the condensed consolidated balance sheets ( see Note 11 ). (2) Represents third party ownership of membership interests in Riverchase Landing and The Clusters. The fair value of the non-controlling interests in Riverchase Landing and The Clusters, both private companies, was estimated using assumptions for the timing and amount of expected future cash flows from the underlying multi-family apartment communities and a discount rate. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed by the Company at the Acquisition Date (dollar amounts in thousands). The membership interest purchase agreement for the acquisition of RiverBanc included a post-closing working capital adjustment that was calculated at $20 thousand and settled with the sellers of RiverBanc on July 15, 2016. Additionally, the excess severance holdback amount described above was settled with the sellers of RiverBanc on July 15, 2016. The Company engaged a third party for valuations of certain intangible assets. Cash $ 4,325 Investment in unconsolidated entities 52,176 Mezzanine loan and preferred equity investments 23,638 Real estate under development (1) 14,922 Receivables and other assets 911 Intangible assets (1) 3,490 Total identifiable assets acquired 99,462 Construction loan payable (2) 8,499 Accrued expenses and other liabilities 2,864 Total liabilities assumed 11,363 Preferred equity (3) 56,697 Net identifiable assets acquired 31,402 Goodwill (4) 25,222 Gain on bargain purchase (5) (65 ) Non-controlling interest (6) (3,078 ) Net assets acquired $ 53,481 (1) Included in receivables and other assets on the condensed consolidated balance sheets. (2) Construction loan payable to the Company is eliminated on the condensed consolidated balance sheets. (3) Includes $40.4 million of preferred equity owned by the Company that is eliminated on the condensed consolidated balance sheets. Remaining $16.3 million of preferred equity owned by third parties was redeemed on June 10, 2016 and June 24, 2016. (4) Goodwill recognized in the acquisition of RiverBanc. (5) Gain on bargain purchase recognized in the acquisitions of RBMI and RBDHC in the year ended December 31, 2016 . (6) Represents third-party ownership of KRVI membership interests ( see Note 10 ). The Company consolidates its investment in KRVI. The third-party ownership in KRVI is represented in the condensed consolidated financial statements and the pro forma net income attributable to the Company's common stockholders as non-controlling interests. The fair value of the non-controlling interests in KRVI was estimated to be $3.1 million. The fair value of the non-controlling interests in KRVI, a private company, was estimated using assumptions for the timing and amount of expected future cash flow for income and realization events for the underlying real estate. |
Pro Forma Information | The following represents the pro forma consolidated revenue and net income attributable to the Company's common stockholders as if the Acquirees had been included in the consolidated results of the Company for the nine months ended September 30, 2016 (dollar amounts in thousands): For the Nine Months Ended September 30, 2016 Revenue $ 272,074 Net income attributable to Company's common stockholders $ 42,077 Basic pro forma earnings per share $ 0.38 Diluted pro forma earnings per share $ 0.38 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies (Details) | Mar. 31, 2017variable_interest_entity | Oct. 01, 2016USD ($) | May 16, 2016 | May 31, 2015 | Sep. 30, 2017USD ($)securitization | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)segmentsecuritization | Sep. 30, 2016USD ($) | Jan. 23, 2017 | Dec. 31, 2016USD ($)securitization | Dec. 31, 2015securitization | Dec. 31, 2006securitization |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Residential mortgage loans, delinquency period | 90 days | |||||||||||
Goodwill | $ 25,222,000 | $ 25,222,000 | $ 25,222,000 | |||||||||
Goodwill impairment | $ 0 | |||||||||||
Restricted cash | 34,100,000 | 34,100,000 | 56,000,000 | |||||||||
Interest receivable | 28,100,000 | 28,100,000 | 24,100,000 | |||||||||
Deferred finance costs, gross | 800,000 | 800,000 | 1,400,000 | |||||||||
Employer contributions | 0 | $ 100,000 | $ 0 | $ 100,000 | ||||||||
Number of operating segments | segment | 1 | |||||||||||
Held in Agency IO Portfolio for Trading Purposes | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Restricted cash | 8,900,000 | $ 8,900,000 | 35,600,000 | |||||||||
Held by Counterparties as Collateral for Hedging Instruments | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Restricted cash | 7,900,000 | 7,900,000 | 6,100,000 | |||||||||
Distressed Residential Mortgage Loans | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Deferred finance costs, gross | $ 400,000 | $ 400,000 | $ 1,300,000 | |||||||||
Consolidated K-Series | K-Series | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Number of securitizations | securitization | 6 | 6 | 5 | 4 | 4 | |||||||
Receivables and other assets | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Real estate under development | $ 21,900,000 | $ 21,900,000 | $ 17,500,000 | |||||||||
Minimum | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Finite-lived intangible asset, useful life | 6 months | |||||||||||
Repurchase agreements, expiration period | 12 months | |||||||||||
Maximum | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Finite-lived intangible asset, useful life | 10 years | |||||||||||
Repurchase agreements, expiration period | 15 months | |||||||||||
Performance Share Awards | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Award vesting period | 3 years | |||||||||||
RiverBanc, RBMI, and RBDHC | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Subsidiary cumulative percentage ownership after all transactions | 100.00% | |||||||||||
Accounting Standards Update 2016-18 | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Restricted cash | 34,100,000 | $ 78,600,000 | $ 34,100,000 | $ 78,600,000 | ||||||||
6.25% senior convertible notes due 2022 | Convertible Notes | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Convertible note discount, percentage | 4.00% | |||||||||||
Discount and deferred issuance costs, net of amortization | $ 9,700,000 | $ 9,700,000 | ||||||||||
Building | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Components of real estate, useful life | 30 years | |||||||||||
Building and Improvements | Minimum | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Components of real estate, useful life | 10 years | |||||||||||
Building and Improvements | Maximum | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Components of real estate, useful life | 30 years | |||||||||||
Furniture, Fixtures and Equipment | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Components of real estate, useful life | 5 years | |||||||||||
Riverchase Landing and The Clusters | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Number of variable interest entities consolidated | variable_interest_entity | 2 |
Investment Securities Availab53
Investment Securities Available for Sale - Schedule of Available for Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 674,668 | $ 829,738 |
Unrealized Gains | 20,476 | 16,449 |
Unrealized Losses | (20,983) | (27,211) |
Fair Value | 674,161 | 818,976 |
Available-for-sale securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities, available for sale, at fair value (including $46,623 and $43,897 held in securitization trusts as of September 30, 2017 and December 31, 2016, respectively, and pledged securities of $493,632 and $690,592, as of September 30, 2017 and December 31, 2016, respectively) | 46,623 | 43,897 |
Agency ARMs | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 99,338 | 114,180 |
Unrealized Gains | 34 | 95 |
Unrealized Losses | (1,105) | (1,430) |
Fair Value | 98,267 | 112,845 |
Agency ARMs | Freddie Mac | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 34,733 | 39,138 |
Unrealized Gains | 21 | 24 |
Unrealized Losses | (351) | (528) |
Fair Value | 34,403 | 38,634 |
Agency ARMs | Fannie Mae | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 59,583 | 69,031 |
Unrealized Gains | 13 | 71 |
Unrealized Losses | (545) | (698) |
Fair Value | 59,051 | 68,404 |
Agency ARMs | Ginnie Mae | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5,022 | 6,011 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (209) | (204) |
Fair Value | 4,813 | 5,807 |
Agency Fixed Rate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 289,104 | 339,310 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (9,680) | (10,683) |
Fair Value | 279,424 | 328,627 |
Agency Fixed Rate | Freddie Mac | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 21,556 | 26,338 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (586) | (644) |
Fair Value | 20,970 | 25,694 |
Agency Fixed Rate | Fannie Mae | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 267,169 | 312,515 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (9,089) | (10,035) |
Fair Value | 258,080 | 302,480 |
Agency Fixed Rate | Ginnie Mae | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 379 | 457 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (5) | (4) |
Fair Value | 374 | 453 |
Agency IOs | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 47,033 | 97,153 |
Unrealized Gains | 486 | 2,260 |
Unrealized Losses | (10,178) | (14,522) |
Fair Value | 37,341 | 84,891 |
Agency IOs | Freddie Mac | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9,423 | 19,768 |
Unrealized Gains | 25 | 559 |
Unrealized Losses | (2,571) | (3,363) |
Fair Value | 6,877 | 16,964 |
Agency IOs | Fannie Mae | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 13,752 | 27,597 |
Unrealized Gains | 50 | 478 |
Unrealized Losses | (3,316) | (4,777) |
Fair Value | 10,486 | 23,298 |
Agency IOs | Ginnie Mae | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 23,858 | 49,788 |
Unrealized Gains | 411 | 1,223 |
Unrealized Losses | (4,291) | (6,382) |
Fair Value | 19,978 | 44,629 |
Agency RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 435,475 | 550,643 |
Unrealized Gains | 520 | 2,355 |
Unrealized Losses | (20,963) | (26,635) |
Fair Value | 415,032 | 526,363 |
Non-Agency RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 131,253 | 162,220 |
Unrealized Gains | 1,789 | 1,218 |
Unrealized Losses | (20) | (154) |
Fair Value | 133,022 | 163,284 |
U.S. Treasury Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,920 | 2,920 |
Unrealized Gains | 4 | 0 |
Unrealized Losses | 0 | (33) |
Fair Value | 2,924 | 2,887 |
CMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 105,020 | 113,955 |
Unrealized Gains | 18,163 | 12,876 |
Unrealized Losses | 0 | (389) |
Fair Value | 123,183 | 126,442 |
CMBS | Available-for-sale securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities, available for sale, at fair value (including $46,623 and $43,897 held in securitization trusts as of September 30, 2017 and December 31, 2016, respectively, and pledged securities of $493,632 and $690,592, as of September 30, 2017 and December 31, 2016, respectively) | $ 46,600 | $ 43,900 |
Investment Securities Availab54
Investment Securities Available for Sale - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Schedule of Investments [Line Items] | |||||
Proceeds from sales of investment securities | $ 49,500,000 | $ 9,600,000 | $ 102,200,000 | $ 112,000,000 | |
Realized gain (loss) on sales of investment securities available for sale | 3,000,000 | (1,400,000) | $ 700,000 | (2,400,000) | |
Contractual maturities of available for sale securities | 30 years | ||||
Weighted average life of available for sale securities portfolio | 3 years 102 days | 4 years 106 days | |||
Gross unrealized losses | 10,800,000 | $ 10,800,000 | $ 12,652,000 | ||
Other-than-temporary impairment recorded in earnings | 0 | $ 0 | 0 | $ 0 | |
Agency RMBS | |||||
Schedule of Investments [Line Items] | |||||
Gross unrealized losses | $ 10,780,000 | $ 10,780,000 | $ 12,109,000 |
Investment Securities Availab55
Investment Securities Available for Sale - Weighted Average Lives for Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
0 to 5 years | $ 508,612 | $ 606,079 |
Over 5 to 10 years | 152,559 | 177,765 |
10 years | 12,990 | 35,132 |
Total | $ 674,161 | $ 818,976 |
Investment Securities Availab56
Investment Securities Available for Sale - Stated Reset Periods of Investment Securities Available for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 674,161 | $ 818,976 |
Less than 6 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 119,705 | 185,668 |
6 to 24 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 23,332 | 27,272 |
More than 24 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 531,124 | 606,036 |
Agency RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 415,032 | 526,363 |
Agency RMBS | Less than 6 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 36,940 | 53,043 |
Agency RMBS | 6 to 24 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 23,332 | 27,272 |
Agency RMBS | More than 24 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 354,760 | 446,048 |
Non-Agency RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 133,022 | 163,284 |
Non-Agency RMBS | Less than 6 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 6,205 | 50,080 |
Non-Agency RMBS | 6 to 24 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 0 | 0 |
Non-Agency RMBS | More than 24 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 126,817 | 113,204 |
U.S. Treasury Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 2,924 | 2,887 |
U.S. Treasury Securities | Less than 6 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 0 | 0 |
U.S. Treasury Securities | 6 to 24 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 0 | 0 |
U.S. Treasury Securities | More than 24 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 2,924 | 2,887 |
CMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 123,183 | 126,442 |
CMBS | Less than 6 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 76,560 | 82,545 |
CMBS | 6 to 24 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 0 | 0 |
CMBS | More than 24 months | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 46,623 | $ 43,897 |
Investment Securities Availab57
Investment Securities Available for Sale - Schedule of Investment Securities Available for Sale in Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Carrying Value Less Than 12 Months | $ 91,170 | $ 112,880 |
Gross Unrealized Losses Less Than 12 Months | (914) | (1,679) |
Carrying Value Greater Than 12 Months | 281,364 | 329,070 |
Gross Unrealized Losses Greater Than 12 Months | (9,886) | (10,973) |
Carrying Value | 372,534 | 441,950 |
Gross Unrealized Losses | (10,800) | (12,652) |
Agency RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Carrying Value Less Than 12 Months | 91,170 | 96,357 |
Gross Unrealized Losses Less Than 12 Months | (914) | (1,290) |
Carrying Value Greater Than 12 Months | 281,152 | 328,474 |
Gross Unrealized Losses Greater Than 12 Months | (9,866) | (10,819) |
Carrying Value | 372,322 | 424,831 |
Gross Unrealized Losses | (10,780) | (12,109) |
Non-Agency RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Carrying Value Less Than 12 Months | 0 | 0 |
Gross Unrealized Losses Less Than 12 Months | 0 | 0 |
Carrying Value Greater Than 12 Months | 212 | 596 |
Gross Unrealized Losses Greater Than 12 Months | (20) | (154) |
Carrying Value | 212 | 596 |
Gross Unrealized Losses | $ (20) | (154) |
CMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Carrying Value Less Than 12 Months | 16,523 | |
Gross Unrealized Losses Less Than 12 Months | (389) | |
Carrying Value Greater Than 12 Months | 0 | |
Gross Unrealized Losses Greater Than 12 Months | 0 | |
Carrying Value | 16,523 | |
Gross Unrealized Losses | $ (389) |
Residential Mortgage Loans He58
Residential Mortgage Loans Held in Securitization Trusts (Net) and Real Estate Owned - Mortgage Loans Held in Securitization Trusts (Net) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Mortgage Loans on Real Estate [Abstract] | ||
Unpaid principal balance | $ 83,068 | $ 98,303 |
Deferred origination costs – net | 532 | 623 |
Reserve for loan losses | (3,725) | (3,782) |
Total | $ 79,875 | $ 95,144 |
Residential Mortgage Loans He59
Residential Mortgage Loans Held in Securitization Trusts (Net) and Real Estate Owned - Allowance for Loan Losses on Residential Mortgage Loans Held in Securitization Trusts (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | $ 3,782 | $ 3,399 |
Provisions for loan losses | 306 | 557 |
Transfer to real estate owned | (303) | 0 |
Charge-offs | (60) | (123) |
Balance at the end of period | $ 3,725 | $ 3,833 |
Residential Mortgage Loans He60
Residential Mortgage Loans Held in Securitization Trusts (Net) and Real Estate Owned - Narrative (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Mortgage Loans on Real Estate [Line Items] | ||||
Allowance for loan losses | $ 3,725 | $ 3,782 | $ 3,833 | $ 3,399 |
Allowance for loan losses, basis points | 4.48% | 3.85% | ||
CDOs outstanding | $ 4,600 | $ 4,400 | ||
Residential Mortgage Loans Held in Securitization Trusts and Real Estate Owned Held in Residential Securitization | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Number of delinquent loans | loan | 24 | 31 | ||
Principal amount of delinquent loans | $ 15,400 | $ 18,700 | ||
Residential Mortgage Loans Held in Securitization Trusts and Real Estate Owned Held in Residential Securitization | Payment Deferral | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Principal amount of delinquent loans | $ 10,300 | $ 11,200 | ||
Delinquent loans under modified payment, percent | 67.00% | 60.00% |
Residential Mortgage Loans He61
Residential Mortgage Loans Held in Securitization Trusts (Net) and Real Estate Owned - Activity in Real Estate Owned Held in Residential Securitization Trust (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | ||
Balance at beginning of period | $ 150 | $ 411 |
Write downs | 0 | 0 |
Transfer from/(to) mortgage loans held in securitization trusts | 742 | 173 |
Disposal | (150) | (411) |
Balance at the end of period | $ 742 | $ 173 |
Residential Mortgage Loans He62
Residential Mortgage Loans Held in Securitization Trusts (Net) and Real Estate Owned - Delinquencies in Portfolio of Residential Mortgage Loans Held in Securitization Trusts (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Real estate owned through foreclosure, Number of Delinquent Loans | loan | 2 | 1 |
Real estate owned through foreclosure, Total Unpaid Principal | $ | $ 1,045 | $ 268 |
Real estate owned through foreclosure, % of Loan Portfolio | 1.24% | 0.27% |
30 - 60 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of Delinquent Loans | loan | 0 | 1 |
Total Unpaid Principal | $ | $ 0 | $ 247 |
% of Loan Portfolio | 0.00% | 0.25% |
61 - 90 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of Delinquent Loans | loan | 0 | 0 |
Total Unpaid Principal | $ | $ 0 | $ 0 |
% of Loan Portfolio | 0.00% | 0.00% |
90 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of Delinquent Loans | loan | 24 | 30 |
Total Unpaid Principal | $ | $ 15,410 | $ 18,416 |
% of Loan Portfolio | 18.32% | 18.68% |
Residential Mortgage Loans He63
Residential Mortgage Loans Held in Securitization Trusts (Net) and Real Estate Owned - Schedule of Geographic Concentrations of Credit Risk (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
New York | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 21.60% | 0.00% |
Residential Mortgage Loans Held in Securitization Trusts and Real Estate Owned Held in Residential Securitization | Geographic Concentration Risk | New York | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 32.00% | 33.80% |
Residential Mortgage Loans Held in Securitization Trusts and Real Estate Owned Held in Residential Securitization | Geographic Concentration Risk | Massachusetts | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 19.90% | 19.90% |
Residential Mortgage Loans Held in Securitization Trusts and Real Estate Owned Held in Residential Securitization | Geographic Concentration Risk | New Jersey | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 11.10% | 10.80% |
Residential Mortgage Loans Held in Securitization Trusts and Real Estate Owned Held in Residential Securitization | Geographic Concentration Risk | Florida | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 10.00% | 8.90% |
Residential Mortgage Loans Held in Securitization Trusts and Real Estate Owned Held in Residential Securitization | Geographic Concentration Risk | Connecticut | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 8.10% | 7.40% |
Residential Mortgage Loans Held in Securitization Trusts and Real Estate Owned Held in Residential Securitization | Geographic Concentration Risk | Maryland | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 5.30% | 5.10% |
Residential Mortgage Loans, A64
Residential Mortgage Loans, At Fair Value - Residential Mortgage Loans at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Mortgage Loans on Real Estate [Abstract] | ||
Principal | $ 73,546 | $ 17,540 |
Premium/(Discount) | (4,258) | 229 |
Unrealized Gains/(Losses) | 224 | 0 |
Carrying Value | $ 69,512 | $ 17,769 |
Residential Mortgage Loans, A65
Residential Mortgage Loans, At Fair Value - Components of Net Gain on Residential Mortgages (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Mortgage Loans on Real Estate [Abstract] | ||
Net realized gain on payoff and sale of loans | $ 493 | $ 0 |
Net unrealized gains | $ 224 | $ 0 |
Residential Mortgage Loans, A66
Residential Mortgage Loans, At Fair Value - Concentration of Risk (Details) - Geographic Concentration Risk - Residential mortgage loans, at fair value | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
California | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 34.98% | 63.32% |
Florida | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 8.48% | 5.63% |
New Jersey | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 8.28% | 2.46% |
Distressed Residential Mortga67
Distressed Residential Mortgage Loans - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Mortgage Loans on Real Estate [Line Items] | ||
Distressed residential mortgage loans, net (including $133,972 and $195,347 held in securitization trusts as of September 30, 2017 and December 31, 2016, respectively) | $ 133,972 | $ 195,347 |
Distressed residential mortgage loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Distressed residential mortgage loans, net (including $133,972 and $195,347 held in securitization trusts as of September 30, 2017 and December 31, 2016, respectively) | 369,700 | 503,100 |
Distressed residential mortgage loans | Residential Mortgage | Deutsche Bank AG, Cayman Islands Branch | ||
Mortgage Loans on Real Estate [Line Items] | ||
Loans pledged as collateral, carrying value | 206,300 | 279,900 |
Distressed residential mortgage loans held in securitization trust (net) | ||
Mortgage Loans on Real Estate [Line Items] | ||
Distressed residential mortgage loans, net (including $133,972 and $195,347 held in securitization trusts as of September 30, 2017 and December 31, 2016, respectively) | $ 134,000 | $ 195,300 |
Distressed Residential Mortga68
Distressed Residential Mortgage Loans - Distressed Residential Mortgage Loans Acquired (Details) - Distressed residential mortgage loans - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Mortgage Loans on Real Estate [Line Items] | ||
Contractually required principal and interest | $ 76,529 | $ 89,590 |
Non-accretable yield | (6,467) | (7,516) |
Expected cash flows to be collected | 70,062 | 82,074 |
Accretable yield | (58,767) | (44,007) |
Fair value at the date of acquisition | $ 11,295 | $ 38,067 |
Distressed Residential Mortga69
Distressed Residential Mortgage Loans - Activity in Accretable Yield for Distressed Residential Mortgage Loans (Details) - Distressed residential mortgage loans - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Movement in Mortgage Loans on Real Estate [Roll Forward] | ||
Balance at beginning of period | $ 530,511 | $ 579,009 |
Additions | 91,356 | 54,917 |
Disposals | (263,475) | (119,113) |
Accretion | (16,635) | (25,166) |
Balance at end of period | $ 341,757 | $ 489,647 |
Distressed Residential Mortga70
Distressed Residential Mortgage Loans - Geographic Concentrations of Credit Risk (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
New York | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 21.60% | 0.00% |
Geographic Concentration Risk | Distressed residential mortgage loans held in securitization trust (net) | Florida | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 10.60% | 12.20% |
Geographic Concentration Risk | Distressed residential mortgage loans held in securitization trust (net) | North Carolina | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 8.20% | 7.70% |
Geographic Concentration Risk | Distressed residential mortgage loans held in securitization trust (net) | Georgia | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 7.40% | 6.00% |
Geographic Concentration Risk | Distressed residential mortgage loans held in securitization trust (net) | California | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 6.60% | 8.80% |
Geographic Concentration Risk | Distressed residential mortgage loans held in securitization trust (net) | New York | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 5.50% | 5.40% |
Geographic Concentration Risk | Distressed residential mortgage loans held in securitization trust (net) | Ohio | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 5.00% | 4.80% |
Consolidated K-Series - Narrati
Consolidated K-Series - Narrative (Details) $ in Millions | Sep. 30, 2017USD ($)securitization | Dec. 31, 2016USD ($)securitization | Dec. 31, 2015securitization | Dec. 31, 2006securitization |
Multi-family collateralized debt obligations, at fair value | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Loans, unpaid principal balance | $ 8,100 | $ 6,700 | ||
Weighted average interest rate | 4.07% | 3.97% | ||
Multi-family loans held in securitization trusts | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Loans, unpaid principal balance | $ 8,100 | $ 6,700 | ||
Consolidated K-Series | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
K-Series, carrying value | $ 408.7 | $ 314.9 | ||
Consolidated K-Series | K-Series | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Number of securitizations | securitization | 6 | 5 | 4 | 4 |
Consolidated K-Series - Condens
Consolidated K-Series - Condensed Balance Sheet of Consolidated K-Series (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Assets | |||
Multi-family loans held in securitization trusts | $ 8,399,334 | $ 6,939,844 | |
Total Assets | [1] | 10,264,922 | 8,951,631 |
Liabilities and Equity | |||
Total Liabilities | [1] | 9,418,917 | 8,100,469 |
Equity | 846,005 | 851,162 | |
Total Liabilities and Stockholders' Equity | 10,264,922 | 8,951,631 | |
Consolidated K-Series | |||
Assets | |||
Multi-family loans held in securitization trusts | 8,399,334 | 6,939,844 | |
Receivables | 28,103 | 24,098 | |
Total Assets | 8,427,437 | 6,963,942 | |
Liabilities and Equity | |||
Multi-family CDOs | 7,990,619 | 6,624,896 | |
Accrued expenses | 27,783 | 24,003 | |
Total Liabilities | 8,018,402 | 6,648,899 | |
Equity | 409,035 | 315,043 | |
Total Liabilities and Stockholders' Equity | $ 8,427,437 | $ 6,963,942 | |
[1] | Our condensed consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company is the primary beneficiary of these VIEs. As of September 30, 2017 and December 31, 2016, assets of consolidated VIEs totaled $8,799,352 and $7,330,872, respectively, and the liabilities of consolidated VIEs totaled $8,255,541 and $6,902,536, respectively. See Note 10 for further discussion. |
Consolidated K-Series - Conde73
Consolidated K-Series - Condensed Statement of Operations of Consolidated K-Series (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Income Statements, Captions [Line Items] | ||||
NET INTEREST INCOME | $ 13,320 | $ 15,518 | $ 42,947 | $ 49,824 |
Unrealized gain on multi-family loans and debt held in securitization trusts, net | 2,353 | 738 | 5,184 | 2,340 |
NET INCOME ATTRIBUTABLE TO COMPANY | 27,845 | 23,268 | 61,364 | 54,654 |
Consolidated K-Series | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Interest income | 76,186 | 62,126 | 213,242 | 187,427 |
Interest expense | 67,030 | 55,359 | 187,835 | 167,783 |
NET INTEREST INCOME | 9,156 | 6,767 | 25,407 | 19,644 |
Unrealized gain on multi-family loans and debt held in securitization trusts, net | 2,353 | 738 | 5,184 | 2,340 |
NET INCOME ATTRIBUTABLE TO COMPANY | $ 11,509 | $ 7,505 | $ 30,591 | $ 21,984 |
Consolidated K-Series - Geograp
Consolidated K-Series - Geographic Concentrations of Credit Risk (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Texas | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 27.50% | 43.30% |
New York | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 21.60% | 0.00% |
Geographic Concentration Risk | Multi-family loans held in securitization trusts | California | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 11.80% | 13.80% |
Geographic Concentration Risk | Multi-family loans held in securitization trusts | Texas | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 10.50% | 12.40% |
Geographic Concentration Risk | Multi-family loans held in securitization trusts | New York | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 6.90% | 8.10% |
Geographic Concentration Risk | Multi-family loans held in securitization trusts | Maryland | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 4.50% | 5.30% |
Investment in Unconsolidated 75
Investment in Unconsolidated Entities (Details) - Equity Method Investments - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||||
Carrying Amount | $ 10,242 | $ 10,242 | $ 18,927 | ||
Carrying Amount, fair value option | $ 41,026 | $ 41,026 | $ 60,332 | ||
Autumnwood Investments LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 0.00% | 0.00% | 0.00% | ||
Carrying Amount | $ 2,020 | $ 2,020 | $ 2,092 | ||
Income from investments in unconsolidated entities | $ 64 | $ 71 | $ 137 | $ 213 | |
200 RHC Hoover, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 0.00% | 0.00% | 63.00% | ||
Carrying Amount | $ 0 | $ 0 | $ 8,886 | ||
Income from investments in unconsolidated entities | $ 0 | 276 | $ 275 | 1,091 | |
BBA-EP320 II, L.L.C., BBA-Ten10 II, L.L.C., and Lexington on the Green Apartments, L.L.C. (collectively) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 45.00% | 45.00% | 45.00% | ||
Carrying Amount | $ 8,222 | $ 8,222 | $ 7,949 | ||
Income from investments in unconsolidated entities | 252 | 189 | 741 | 189 | |
RiverBanc LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Income from investments in unconsolidated entities | 0 | 0 | 0 | 125 | |
Kiawah River View Investors LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Income from investments in unconsolidated entities | 0 | 0 | 0 | 1,250 | |
RB Development Holding Company, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Income from investments in unconsolidated entities | 0 | 0 | 0 | 107 | |
RB Multifamily Investors LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Income from investments in unconsolidated entities | $ 0 | 0 | $ 0 | 2,262 | |
Morrocroft Neighborhood Stabilization Fund II, LP | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 11.00% | 11.00% | 11.00% | ||
Carrying Amount, fair value option | $ 11,206 | $ 11,206 | $ 9,732 | ||
Income from investments in unconsolidated entities | $ 394 | 244 | $ 1,374 | 702 | |
Evergreens JV Holdings, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 85.00% | 85.00% | 85.00% | ||
Carrying Amount, fair value option | $ 4,120 | $ 4,120 | $ 3,810 | ||
Income from investments in unconsolidated entities | $ 161 | 79 | $ 464 | 89 | |
Bent Tree JV Holdings, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 0.00% | 0.00% | 78.00% | ||
Carrying Amount, fair value option | $ 0 | $ 0 | $ 9,890 | ||
Income from investments in unconsolidated entities | $ 1,210 | 157 | $ 1,795 | 257 | |
Summerchase LR Partners LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 0.00% | 0.00% | 80.00% | ||
Carrying Amount, fair value option | $ 0 | $ 0 | $ 4,410 | ||
Income from investments in unconsolidated entities | $ 194 | 190 | $ 556 | 200 | |
Lake Mary Realty Partners, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 0.00% | 0.00% | 80.00% | ||
Carrying Amount, fair value option | $ 0 | $ 0 | $ 7,690 | ||
Income from investments in unconsolidated entities | $ 2,312 | 238 | $ 2,745 | 258 | |
The Preserve at Port Royal Venture, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 77.00% | 77.00% | 77.00% | ||
Carrying Amount, fair value option | $ 12,850 | $ 12,850 | $ 12,280 | ||
Income from investments in unconsolidated entities | $ 440 | 392 | $ 1,266 | 492 | |
WR Savannah Holdings, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 90.00% | 90.00% | 90.00% | ||
Carrying Amount, fair value option | $ 12,850 | $ 12,850 | $ 12,520 | ||
Income from investments in unconsolidated entities | $ 405 | $ 362 | $ 1,030 | $ 422 |
Mezzanine Loan and Preferred 76
Mezzanine Loan and Preferred Equity Investments (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | |
Variable Interest Entity [Line Items] | ||
Total | $ 122,578 | $ 100,150 |
Texas | ||
Variable Interest Entity [Line Items] | ||
Geographic concentration, percent | 27.50% | 43.30% |
New York | ||
Variable Interest Entity [Line Items] | ||
Geographic concentration, percent | 21.60% | 0.00% |
Virginia | ||
Variable Interest Entity [Line Items] | ||
Geographic concentration, percent | 12.30% | 14.90% |
South Carolina | ||
Variable Interest Entity [Line Items] | ||
Geographic concentration, percent | 7.90% | 9.40% |
Kentucky | ||
Variable Interest Entity [Line Items] | ||
Geographic concentration, percent | 5.90% | 7.20% |
Mezzanine loan and preferred equity investments | ||
Variable Interest Entity [Line Items] | ||
Investment amount | $ 124,172 | $ 101,154 |
Deferred loan fees, net | (1,594) | (1,004) |
Total | $ 122,578 | $ 100,150 |
Number of delinquent loans | loan | 0 | 0 |
Use of Special Purpose Entiti77
Use of Special Purpose Entities and Variable Interest Entities - Narrative (Details) $ in Millions | Mar. 31, 2017USD ($)variable_interest_entity | May 16, 2016 | Sep. 30, 2017securitization | Dec. 31, 2016securitization |
Riverchase Landing and The Clusters | ||||
Variable Interest Entity [Line Items] | ||||
Number of variable interest entities consolidated | variable_interest_entity | 2 | |||
RBDHC | ||||
Variable Interest Entity [Line Items] | ||||
Subsidiary cumulative percentage ownership after all transactions | 100.00% | |||
Riverchase Landing and The Clusters | ||||
Variable Interest Entity [Line Items] | ||||
Consideration transferred | $ | $ 12.5 | |||
Non-Financings, Multi-Family CMBS | K-Series | ||||
Variable Interest Entity [Line Items] | ||||
Number of securitizations, non-financing VIE's | securitization | 5 | 4 | ||
VIE, Primary Beneficiary | RBDHC | ||||
Variable Interest Entity [Line Items] | ||||
Noncontrolling interest, ownership by parent, percentage | 50.00% |
Use of Special Purpose Entiti78
Use of Special Purpose Entities and Variable Interest Entities - Fair Value of Assets and Liabilities Transferred (Details) - Riverchase Landing and The Clusters $ in Thousands | Sep. 30, 2017USD ($) |
Business Acquisition [Line Items] | |
Cash | $ 112 |
Operating real estate | 62,322 |
Lease intangibles | 5,340 |
Receivables and other assets | 2,260 |
Total assets | 70,034 |
Mortgages payable | 51,570 |
Accrued expenses and other liabilities | 1,519 |
Total liabilities assumed | 53,089 |
Non-controlling interest | 4,462 |
Net assets consolidated | $ 12,483 |
Use of Special Purpose Entiti79
Use of Special Purpose Entities and Variable Interest Entities - Assets and Liabilities of Consolidated VIEs (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 31, 2016USD ($) | Sep. 30, 2017USD ($)securitization | Sep. 30, 2017USD ($)securitization | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($)securitization | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Cash and cash equivalents | $ 101,904 | $ 101,904 | $ 83,554 | |||
Investment securities available for sale | 674,161 | 674,161 | 818,976 | |||
Multi-family loans held in securitization trusts, at fair value | 8,399,334 | 8,399,334 | 6,939,844 | |||
Real estate held for sale in consolidated variable interest entities | 64,097 | 64,097 | 0 | |||
Receivables and other assets | 123,944 | 123,944 | 138,323 | |||
Total Assets | [1] | 10,264,922 | 10,264,922 | 8,951,631 | ||
Securitized debt | 98,371 | 98,371 | 158,867 | |||
Mortgages and notes payable in consolidated variable interest entities | 57,342 | 57,342 | 1,588 | |||
Accrued expenses and other liabilities | 71,394 | 71,394 | 64,381 | |||
Total Liabilities | [1] | 9,418,917 | 9,418,917 | 8,100,469 | ||
Repayments of secured debt | 62,098 | $ 53,354 | ||||
Collateralized Mortgage Obligations | Class A Notes | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Proceeds from issuance of secured debt | $ 177,500 | 177,500 | $ 177,500 | |||
Available-for-sale securities, debt securities, ownership percentage | 5.00% | 5.00% | ||||
Residential collateralized debt obligations | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Collateralized debt obligations | $ 76,867 | 76,867 | $ 91,663 | |||
Repayments of secured debt | 14,856 | 20,736 | ||||
Multi-family collateralized debt obligations, at fair value | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Collateralized debt obligations | 7,990,619 | 7,990,619 | 6,624,896 | |||
Collateralized Loan Obligation | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Repayments of secured debt | $ 55,900 | 104,958 | $ 91,901 | |||
Residential mortgage loans held in securitization trusts (net) | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Residential mortgage loans held in securitization trusts (net) | 79,875 | 79,875 | 95,144 | |||
Multi-family CMBS Re-securitization | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Investment securities available for sale | 46,623 | 46,623 | 43,897 | |||
Receivables and other assets | 4,217 | 4,217 | 4,420 | |||
Total Assets | 1,225,181 | 1,225,181 | 1,245,152 | |||
Securitized debt | 28,946 | 28,946 | 28,332 | |||
Accrued expenses and other liabilities | 4,200 | 4,200 | 4,400 | |||
Total Liabilities | 1,145,797 | 1,145,797 | 1,169,734 | |||
Multi-family CMBS Re-securitization | Multi-family collateralized debt obligations, at fair value | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Collateralized debt obligations | 1,112,651 | 1,112,651 | 1,137,002 | |||
Multi-family CMBS Re-securitization | Multi-family loans held in securitization trusts, at fair value | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Multi-family loans held in securitization trusts, at fair value | 1,174,341 | 1,174,341 | 1,196,835 | |||
Distressed Residential Mortgage Loan Securitizations | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Receivables and other assets | 19,795 | 19,795 | 13,610 | |||
Total Assets | 153,767 | 153,767 | 208,957 | |||
Securitized debt | 69,425 | 69,425 | 130,535 | |||
Accrued expenses and other liabilities | 1,766 | 1,766 | 1,336 | |||
Total Liabilities | 71,191 | 71,191 | 131,871 | |||
Distressed Residential Mortgage Loan Securitizations | Distressed residential mortgage loans held in securitization trust (net) | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Residential mortgage loans held in securitization trusts (net) | 133,972 | 133,972 | 195,347 | |||
Residential Mortgage Loan Securitization | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Receivables and other assets | 1,585 | 1,585 | 912 | |||
Total Assets | 81,460 | 81,460 | 96,056 | |||
Accrued expenses and other liabilities | 22 | 22 | 20 | |||
Total Liabilities | 76,889 | 76,889 | 91,683 | |||
Residential Mortgage Loan Securitization | Residential collateralized debt obligations | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Collateralized debt obligations | 76,867 | 76,867 | 91,663 | |||
Residential Mortgage Loan Securitization | Residential mortgage loans held in securitization trusts (net) | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Residential mortgage loans held in securitization trusts (net) | 79,875 | 79,875 | 95,144 | |||
Multi-family CMBS | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Receivables and other assets | 23,959 | 23,959 | 19,753 | |||
Total Assets | 7,248,952 | 7,248,952 | 5,762,762 | |||
Accrued expenses and other liabilities | 23,733 | 23,733 | 19,753 | |||
Total Liabilities | 6,901,701 | 6,901,701 | 5,507,647 | |||
Multi-family CMBS | Multi-family collateralized debt obligations, at fair value | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Collateralized debt obligations | 6,877,968 | 6,877,968 | 5,487,894 | |||
Multi-family CMBS | Multi-family loans held in securitization trusts, at fair value | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Multi-family loans held in securitization trusts, at fair value | 7,224,993 | 7,224,993 | 5,743,009 | |||
Other | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Cash and cash equivalents | 1,194 | 1,194 | 186 | |||
Real estate held for sale in consolidated variable interest entities | 64,097 | 64,097 | ||||
Receivables and other assets | 24,701 | 24,701 | 17,759 | |||
Total Assets | 89,992 | 89,992 | 17,945 | |||
Mortgages and notes payable in consolidated variable interest entities | 57,342 | 57,342 | 1,588 | |||
Accrued expenses and other liabilities | 2,621 | 2,621 | 13 | |||
Total Liabilities | 59,963 | 59,963 | 1,601 | |||
Financing and Non-Financing VIEs | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Cash and cash equivalents | 1,194 | 1,194 | 186 | |||
Investment securities available for sale | 46,623 | 46,623 | 43,897 | |||
Real estate held for sale in consolidated variable interest entities | 64,097 | 64,097 | ||||
Receivables and other assets | 74,257 | 74,257 | 56,454 | |||
Total Assets | 8,799,352 | 8,799,352 | 7,330,872 | |||
Securitized debt | 98,371 | 98,371 | 158,867 | |||
Mortgages and notes payable in consolidated variable interest entities | 57,342 | 57,342 | 1,588 | |||
Accrued expenses and other liabilities | 32,342 | 32,342 | 25,522 | |||
Total Liabilities | 8,255,541 | 8,255,541 | 6,902,536 | |||
Financing and Non-Financing VIEs | Residential collateralized debt obligations | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Collateralized debt obligations | 76,867 | 76,867 | 91,663 | |||
Financing and Non-Financing VIEs | Multi-family collateralized debt obligations, at fair value | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Collateralized debt obligations | 7,990,619 | 7,990,619 | 6,624,896 | |||
Financing and Non-Financing VIEs | Residential mortgage loans held in securitization trusts (net) | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Residential mortgage loans held in securitization trusts (net) | 79,875 | 79,875 | 95,144 | |||
Financing and Non-Financing VIEs | Distressed residential mortgage loans held in securitization trust (net) | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Residential mortgage loans held in securitization trusts (net) | 133,972 | 133,972 | 195,347 | |||
Financing and Non-Financing VIEs | Multi-family loans held in securitization trusts, at fair value | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Multi-family loans held in securitization trusts, at fair value | $ 8,399,334 | $ 8,399,334 | $ 6,939,844 | |||
Multi-family collateralized mortgage backed securities | K-Series | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Number of securitizations | securitization | 2 | 2 | 2 | |||
Number of consolidated securitizations | securitization | 1 | 1 | 1 | |||
Non-Financings, Multi-Family CMBS | K-Series | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Number of securitizations, non-financing VIE's | securitization | 5 | 5 | 4 | |||
Collateralized Recourse Financing | Collateralized Loan Obligation | K-Series | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Number of securitizations | securitization | 3 | |||||
[1] | Our condensed consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company is the primary beneficiary of these VIEs. As of September 30, 2017 and December 31, 2016, assets of consolidated VIEs totaled $8,799,352 and $7,330,872, respectively, and the liabilities of consolidated VIEs totaled $8,255,541 and $6,902,536, respectively. See Note 10 for further discussion. |
Use of Special Purpose Entiti80
Use of Special Purpose Entities and Variable Interest Entities - Securitized Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Variable Interest Entity [Line Items] | ||
Carrying value | $ 98,371 | $ 158,867 |
Multi-family CMBS Re-securitization | ||
Variable Interest Entity [Line Items] | ||
Principal amount | 33,399 | 33,553 |
Carrying value | $ 28,946 | 28,332 |
Multi-family CMBS Re-securitization | LIBOR | ||
Variable Interest Entity [Line Items] | ||
Pass-through rate of Notes issued | 5.35% | |
Distressed Residential Mortgage Loan Securitizations | ||
Variable Interest Entity [Line Items] | ||
Principal amount | $ 70,374 | 132,319 |
Carrying value | $ 69,425 | $ 130,535 |
Distressed Residential Mortgage Loan Securitizations | LIBOR | ||
Variable Interest Entity [Line Items] | ||
Pass-through rate of Notes issued | 4.00% |
Use of Special Purpose Entiti81
Use of Special Purpose Entities and Variable Interest Entities - Financing VIEs Securitized Debt by Contractual Maturity (Details) $ in Thousands | Sep. 30, 2017USD ($)securitization | Dec. 31, 2016USD ($) |
Variable Interest Entity [Line Items] | ||
Total outstanding principal | $ 240,604 | |
Carrying value | 98,371 | $ 158,867 |
Financing VIE | ||
Variable Interest Entity [Line Items] | ||
Within 24 months | 70,374 | 0 |
Over 24 months to 36 months | 0 | 132,319 |
Over 36 months | 33,399 | 33,553 |
Total outstanding principal | 103,773 | 165,872 |
Discount | (4,567) | (5,589) |
Debt Issuance Cost | (835) | (1,416) |
Carrying value | $ 98,371 | $ 158,867 |
Residential mortgage loans held In securitization trusts net | ||
Variable Interest Entity [Line Items] | ||
Number of securitizations completed to date | securitization | 4 | |
Number of securitizations, consolidated, accounted for as permanent financing | securitization | 3 |
Use of Special Purpose Entiti82
Use of Special Purpose Entities and Variable Interest Entities - Classification and Carrying Value of Unconsolidated VIEs (Details) $ in Thousands | Sep. 30, 2017USD ($)securitization | Dec. 31, 2016USD ($)securitization |
Variable Interest Entity [Line Items] | ||
Unconsolidated VIE, maximum loss exposure | $ 203,600 | $ 185,300 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total assets | 203,572 | 185,301 |
Variable Interest Entity, Not Primary Beneficiary | Investment securities, available for sale, at fair value | ||
Variable Interest Entity [Line Items] | ||
Total assets | 46,623 | 43,897 |
Variable Interest Entity, Not Primary Beneficiary | Receivables and other assets | ||
Variable Interest Entity [Line Items] | ||
Total assets | 73 | 74 |
Variable Interest Entity, Not Primary Beneficiary | Mezzanine loan and preferred equity investments | ||
Variable Interest Entity [Line Items] | ||
Total assets | 122,578 | 100,150 |
Variable Interest Entity, Not Primary Beneficiary | Investment in unconsolidated entities | ||
Variable Interest Entity [Line Items] | ||
Total assets | 34,298 | 41,180 |
Variable Interest Entity, Not Primary Beneficiary | Multi-family CMBS | ||
Variable Interest Entity [Line Items] | ||
Total assets | 46,696 | 43,971 |
Variable Interest Entity, Not Primary Beneficiary | Multi-family CMBS | Investment securities, available for sale, at fair value | ||
Variable Interest Entity [Line Items] | ||
Total assets | 46,623 | 43,897 |
Variable Interest Entity, Not Primary Beneficiary | Multi-family CMBS | Receivables and other assets | ||
Variable Interest Entity [Line Items] | ||
Total assets | 73 | 74 |
Variable Interest Entity, Not Primary Beneficiary | Multi-family CMBS | Mezzanine loan and preferred equity investments | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | 0 |
Variable Interest Entity, Not Primary Beneficiary | Multi-family CMBS | Investment in unconsolidated entities | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | 0 |
Variable Interest Entity, Not Primary Beneficiary | Mezzanine loan on multi-family properties | ||
Variable Interest Entity [Line Items] | ||
Total assets | 6,875 | 18,881 |
Variable Interest Entity, Not Primary Beneficiary | Mezzanine loan on multi-family properties | Investment securities, available for sale, at fair value | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | 0 |
Variable Interest Entity, Not Primary Beneficiary | Mezzanine loan on multi-family properties | Receivables and other assets | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | 0 |
Variable Interest Entity, Not Primary Beneficiary | Mezzanine loan on multi-family properties | Mezzanine loan and preferred equity investments | ||
Variable Interest Entity [Line Items] | ||
Total assets | 6,875 | 18,881 |
Variable Interest Entity, Not Primary Beneficiary | Mezzanine loan on multi-family properties | Investment in unconsolidated entities | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | 0 |
Variable Interest Entity, Not Primary Beneficiary | Preferred equity investment on multi-family properties | ||
Variable Interest Entity [Line Items] | ||
Total assets | 125,945 | 100,197 |
Variable Interest Entity, Not Primary Beneficiary | Preferred equity investment on multi-family properties | Investment securities, available for sale, at fair value | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | 0 |
Variable Interest Entity, Not Primary Beneficiary | Preferred equity investment on multi-family properties | Receivables and other assets | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | 0 |
Variable Interest Entity, Not Primary Beneficiary | Preferred equity investment on multi-family properties | Mezzanine loan and preferred equity investments | ||
Variable Interest Entity [Line Items] | ||
Total assets | 115,703 | 81,269 |
Variable Interest Entity, Not Primary Beneficiary | Preferred equity investment on multi-family properties | Investment in unconsolidated entities | ||
Variable Interest Entity [Line Items] | ||
Total assets | 10,242 | 18,928 |
Variable Interest Entity, Not Primary Beneficiary | Equity investment in entities that invest in multi-family properties | ||
Variable Interest Entity [Line Items] | ||
Total assets | 24,056 | 22,252 |
Variable Interest Entity, Not Primary Beneficiary | Equity investment in entities that invest in multi-family properties | Investment securities, available for sale, at fair value | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | 0 |
Variable Interest Entity, Not Primary Beneficiary | Equity investment in entities that invest in multi-family properties | Receivables and other assets | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | 0 |
Variable Interest Entity, Not Primary Beneficiary | Equity investment in entities that invest in multi-family properties | Mezzanine loan and preferred equity investments | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | 0 |
Variable Interest Entity, Not Primary Beneficiary | Equity investment in entities that invest in multi-family properties | Investment in unconsolidated entities | ||
Variable Interest Entity [Line Items] | ||
Total assets | $ 24,056 | $ 22,252 |
K-Series | Multi-family collateralized mortgage backed securities | ||
Variable Interest Entity [Line Items] | ||
Number of securitizations | securitization | 2 | 2 |
Real Estate Held for Sale in 83
Real Estate Held for Sale in Consolidated VIEs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | |
Investment [Line Items] | |||
Real estate held for sale before accumulated depreciation and amortization | $ 64,097 | $ 64,097 | $ 0 |
Riverchase Landing | VIE, Primary Beneficiary | |||
Investment [Line Items] | |||
Land | 7,000 | 7,000 | |
Building and improvements | 53,435 | 53,435 | |
Furniture, fixtures and equipment | 2,078 | 2,078 | |
Lease intangible | 5,340 | 5,340 | |
Real estate held for sale before accumulated depreciation and amortization | 67,853 | 67,853 | |
Accumulated depreciation | (647) | (647) | |
Accumulated amortization of lease intangible | (3,109) | (3,109) | |
Real estate held for sale in consolidated variable interest entities | 64,097 | 64,097 | |
Depreciation | 200 | 600 | |
Amortization | $ 900 | $ 3,100 |
Derivative Instruments and He84
Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Eurodollar futures | ||
Derivative [Line Items] | ||
Derivative assets | $ 289 | $ 1,175 |
TBA securities | ||
Derivative [Line Items] | ||
Derivative assets | 180,562 | 148,139 |
Interest rate swap futures | ||
Derivative [Line Items] | ||
Derivative assets | 1,228 | 444 |
Swaptions | ||
Derivative [Line Items] | ||
Derivative assets | 18 | 431 |
U.S. Treasury futures | ||
Derivative [Line Items] | ||
Derivative liabilities | 193 | 107 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative liabilities | $ 274 | $ 384 |
Derivative Instruments and He85
Derivative Instruments and Hedging Activities - Derivative Instruments Not Designated as Hedges (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
TBA securities | ||
Derivative Instruments and Hedging Activities Disclosures [Roll Forward] | ||
Beginning balance | $ 149,000 | $ 222,000 |
Additions | 1,466,000 | 2,925,000 |
Settlement, Expiration or Exercise | (1,440,000) | (2,866,000) |
Ending balance | 175,000 | 281,000 |
U.S. Treasury futures | ||
Derivative Instruments and Hedging Activities Disclosures [Roll Forward] | ||
Beginning balance | 17,100 | 0 |
Additions | 123,900 | 189,800 |
Settlement, Expiration or Exercise | (135,500) | (146,400) |
Ending balance | 5,500 | 43,400 |
Interest rate swap futures | ||
Derivative Instruments and Hedging Activities Disclosures [Roll Forward] | ||
Beginning balance | (151,700) | (137,200) |
Additions | 413,800 | 718,700 |
Settlement, Expiration or Exercise | (349,000) | (700,300) |
Ending balance | (86,900) | (118,800) |
Eurodollar futures | ||
Derivative Instruments and Hedging Activities Disclosures [Roll Forward] | ||
Beginning balance | (2,575,000) | (2,769,000) |
Additions | 5,989,000 | 4,134,000 |
Settlement, Expiration or Exercise | (5,054,000) | (4,838,000) |
Ending balance | (1,640,000) | (3,473,000) |
Options on U.S. Treasury futures | ||
Derivative Instruments and Hedging Activities Disclosures [Roll Forward] | ||
Beginning balance | 0 | 28,000 |
Additions | 5,000 | 91,000 |
Settlement, Expiration or Exercise | (5,000) | (114,000) |
Ending balance | 0 | 5,000 |
Swaptions | ||
Derivative Instruments and Hedging Activities Disclosures [Roll Forward] | ||
Beginning balance | 154,000 | 159,000 |
Additions | 0 | 0 |
Settlement, Expiration or Exercise | 0 | (5,000) |
Ending balance | 154,000 | 154,000 |
Interest rate swaps | ||
Derivative Instruments and Hedging Activities Disclosures [Roll Forward] | ||
Beginning balance | 15,000 | 10,000 |
Additions | 0 | 5,000 |
Settlement, Expiration or Exercise | 0 | 0 |
Ending balance | $ 15,000 | $ 15,000 |
Derivative Instruments and He86
Derivative Instruments and Hedging Activities - Components of Realized and Unrealized Gains and Losses (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($)contract | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)contract | Sep. 30, 2016USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Unrealized Gains (Losses) | $ 1,192 | $ 1,563 | $ 1,687 | $ (1,594) |
Not Designated as Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized Gains (Losses) | 949 | 3,769 | 3,135 | 7,775 |
Unrealized Gains (Losses) | 486 | 795 | (918) | 431 |
Not Designated as Hedging Instrument | TBA securities | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized Gains (Losses) | 1,470 | 4,981 | 3,285 | 13,489 |
Unrealized Gains (Losses) | (265) | (2,547) | (1,080) | 883 |
Not Designated as Hedging Instrument | Eurodollar futures | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized Gains (Losses) | 62 | (1,674) | 849 | (3,180) |
Unrealized Gains (Losses) | $ 39 | 3,877 | $ (886) | 547 |
Number of contracts | contract | 1,640 | 1,640 | ||
Not Designated as Hedging Instrument | Interest rate swaps | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized Gains (Losses) | $ 0 | 0 | $ 0 | 0 |
Unrealized Gains (Losses) | 36 | 65 | 110 | 40 |
Not Designated as Hedging Instrument | Swaptions | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized Gains (Losses) | 0 | 0 | 0 | 0 |
Unrealized Gains (Losses) | 171 | 190 | 239 | 212 |
Not Designated as Hedging Instrument | U.S. Treasury and interest rate swap futures and options | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized Gains (Losses) | (583) | 462 | (999) | (2,534) |
Unrealized Gains (Losses) | $ 505 | $ (790) | $ 699 | $ (1,251) |
Derivative Instruments and He87
Derivative Instruments and Hedging Activities - Narrative (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative liabilities | $ 467,000 | $ 498,000 | |
TBA purchases | 23,000 | $ 85,000 | |
Restricted cash | 34,100,000 | 56,000,000 | |
Collateral for Hedging Instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Restricted cash | 7,900,000 | 6,100,000 | |
Not Designated as Hedging Instrument | TBA securities | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative liabilities | 181,700,000 | 148,000,000 | |
Proceeds from sale of investment | $ 0 | 114,400,000 | |
TBA purchases | $ 262,400,000 | ||
Derivatives Designated as Hedging Instruments | Interest rate swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Time to transfer gain (loss) from AOCI to earnings | 12 months | ||
Estimated transfer of gain (loss) from AOCI to earnings | $ 0 |
Derivative Instruments and He88
Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments Designated as Hedging Instruments (Details) - Derivatives Designated as Hedging Instruments - Interest rate swaps - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset, notional amount | $ 80,000,000 | |
Derivative asset, fair value | 18,000 | $ 0 |
Derivative asset, notional amount | 65,000,000 | |
Derivative asset, fair value | 0 | 108,000 |
Derivative liability, notional amount | 150,000,000 | |
Derivative liability, fair value | $ 0 | $ 6,000 |
Derivative Instruments and He89
Derivative Instruments and Hedging Activities - Derivative Instruments Included in the Company's Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of the period | $ 848,075 | |
Balance at end of the period | 842,053 | |
Accumulated other comprehensive income for derivative instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of the period | 102 | $ 304 |
Unrealized loss on interest rate swaps | (84) | (607) |
Balance at end of the period | $ 18 | $ (303) |
Derivative Instruments and He90
Derivative Instruments and Hedging Activities - Interest Rate Swaps and Interest Rate Caps (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Interest income-investment securities | $ 9,716 | $ 8,587 | $ 29,716 | $ 25,612 |
Interest expense-investment securities | 5,759 | 4,598 | 17,132 | 12,409 |
Derivatives Designated as Hedging Instruments | Interest rate swaps | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Interest income-investment securities | 176 | 0 | 249 | 0 |
Interest expense-investment securities | $ 0 | $ 177 | $ 0 | $ 604 |
Derivative Instruments and He91
Derivative Instruments and Hedging Activities - Interest Rate Swaps (Details) - Derivatives Designated as Hedging Instruments - Cash Flow Hedging - Interest rate swaps - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | $ 90,000,000 | $ 225,000,000 |
Weighted Average Fixed Interest Rate | 0.88% | 0.90% |
Weighted Average Variable Interest Rate | 1.24% | 0.75% |
2,017 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | $ 80,000,000 | $ 215,000,000 |
Weighted Average Fixed Interest Rate | 0.71% | 0.83% |
Weighted Average Variable Interest Rate | 1.23% | 0.74% |
2,019 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | $ 10,000,000 | $ 10,000,000 |
Weighted Average Fixed Interest Rate | 2.25% | 2.25% |
Weighted Average Variable Interest Rate | 1.32% | 0.97% |
Agency IOs | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | $ 5,000,000 | $ 5,000,000 |
Weighted Average Fixed Interest Rate | 1.80% | 1.80% |
Weighted Average Variable Interest Rate | 1.33% | 1.00% |
Agency IOs | 2026 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | $ 5,000,000 | $ 5,000,000 |
Weighted Average Fixed Interest Rate | 1.80% | 1.80% |
Weighted Average Variable Interest Rate | 1.33% | 1.00% |
Financing Arrangements, Portf92
Financing Arrangements, Portfolio Investments - Narrative (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017USD ($)counterparty | Dec. 31, 2016USD ($)counterparty | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Average days to maturity | 18 days | 12 days |
Interest payable | $ 500 | $ 1,100 |
Advance rate | 87.80% | |
Average haircut | 12.20% | |
Repurchase agreements, number of counterparties | counterparty | 8 | |
Cash and cash equivalents | $ 101,904 | $ 83,554 |
Unencumbered investment securities | $ 243,100 | |
Liquidation proceeds, percentage | 58.20% | |
Held in Agency IO Portfolio for Trading Purposes | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Unencumbered investment securities | $ 8,900 | |
Lender Concentration Risk | Stockholders' Equity | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Repurchase agreements, number of counterparties | counterparty | 0 | 0 |
Concentration risk, percentage | 5.10% | |
Agency RMBS | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Average haircut | 4.00% | 5.00% |
Non-Agency RMBS | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Average haircut | 25.00% | |
Unencumbered investment securities | $ 68,100 | |
CMBS | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Average haircut | 20.00% | |
Unencumbered investment securities | $ 139,900 | |
Agency IOs | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Average haircut | 25.00% | |
Residential Mortgage Backed Securities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Unencumbered investment securities | $ 35,100 | |
Loans | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Repurchase agreement, amount outstanding | $ 608,300 | $ 773,100 |
Weighted average interest rate | 2.33% | 1.92% |
Financing Arrangements, Portf93
Financing Arrangements, Portfolio Investments - Assets Pledged as Collateral (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Financing Arrangements | $ 608,304 | $ 773,142 |
Fair Value of Collateral Pledged | 731,855 | 945,143 |
Amortized Cost of Collateral Pledged | 689,722 | 889,327 |
Consolidated K-Series | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
K-Series, carrying value | 408,700 | 314,900 |
Agency ARMs | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Financing Arrangements | 80,327 | 102,088 |
Fair Value of Collateral Pledged | 85,117 | 109,552 |
Amortized Cost of Collateral Pledged | 85,990 | 110,903 |
Agency Fixed Rate | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Financing Arrangements | 248,936 | 289,619 |
Fair Value of Collateral Pledged | 261,450 | 308,411 |
Amortized Cost of Collateral Pledged | 270,587 | 318,544 |
Agency IOs/U.S. Treasury Securities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Financing Arrangements | 26,048 | 60,862 |
Fair Value of Collateral Pledged | 36,702 | 82,153 |
Amortized Cost of Collateral Pledged | 47,913 | 93,819 |
Non Agency | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Financing Arrangements | 48,773 | 113,749 |
Fair Value of Collateral Pledged | 64,917 | 150,944 |
Amortized Cost of Collateral Pledged | 63,792 | 149,969 |
CMBS | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Financing Arrangements | 204,220 | 206,824 |
Fair Value of Collateral Pledged | 283,669 | 294,083 |
Amortized Cost of Collateral Pledged | 221,440 | 216,092 |
CMBS | Consolidated K-Series | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
K-Series, carrying value | $ 237,800 | $ 254,600 |
Financing Arrangements, Portf94
Financing Arrangements, Portfolio Investments - Outstanding Repurchase Agreement Borrowings by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Outstanding financing agreements | $ 608,304 | $ 773,142 |
Within 30 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Outstanding financing agreements | 608,304 | 729,134 |
Over 30 days to 90 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Outstanding financing agreements | 0 | 44,008 |
Over 90 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Outstanding financing agreements | $ 0 | $ 0 |
Financing Arrangements, Resid95
Financing Arrangements, Residential Mortgage Loans (Details) - Deutsche Bank AG, Cayman Islands Branch - USD ($) | 9 Months Ended | ||
Sep. 30, 2017 | May 24, 2017 | Dec. 31, 2016 | |
Pool of Distressed Residential Mortgage Loans | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Maximum repurchase amount | $ 200,000,000 | ||
Principal amount | 50,000,000 | ||
Repurchase agreement, amount outstanding | $ 140,300,000 | $ 193,800,000 | |
Repurchase agreement, effective interest rate | 3.74% | 3.26% | |
Pool of Distressed Residential Mortgage Loans | LIBOR | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Interest rate, basis spread | 2.50% | ||
Residential Mortgage | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Maximum repurchase amount | $ 25,000,000 | $ 100,000,000 | |
Repurchase agreement, amount outstanding | $ 20,700,000 | $ 0 | |
Residential Mortgage | LIBOR | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Interest rate, basis spread | 3.50% | ||
Repurchase agreement, effective interest rate | 4.74% |
Residential Collateralized De96
Residential Collateralized Debt Obligations (Details) $ in Millions | Sep. 30, 2017USD ($)securitization | Dec. 31, 2016USD ($)securitization |
Debt Instrument [Line Items] | ||
Number of residential CDO securitizations | securitization | 3 | 3 |
CDOs outstanding | $ 4.6 | $ 4.4 |
Arm Loans | ||
Debt Instrument [Line Items] | ||
Loans pledged as collateral | 83.1 | 98.3 |
Residential collateralized debt obligations | ||
Debt Instrument [Line Items] | ||
Secured debt, carrying value | $ 76.9 | $ 91.7 |
Weighted average interest rate | 1.85% | 1.37% |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jan. 23, 2017USD ($)$ / shares | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) |
Debt Instrument [Line Items] | |||
Proceeds from issuance of convertible notes, net | $ 126,995,000 | $ 0 | |
Convertible Notes | 6.25% senior convertible notes due 2022 | |||
Debt Instrument [Line Items] | |||
Face amount | $ 138,000,000 | ||
Stated interest rate | 6.25% | ||
Proceeds from issuance of convertible notes, net | $ 127,000,000 | ||
Effective interest rate | 96.00% | ||
Conversion ratio | 0.1427144 | ||
Conversion price (in dollars per share) | $ / shares | $ 7.01 | ||
Convertible Notes | 6.25% senior notes due 2022, over-allotment option | |||
Debt Instrument [Line Items] | |||
Face amount | $ 18,000,000 | ||
Mortgages | KRVI | VIE, Primary Beneficiary | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.00% | ||
Long-term debt, gross | $ 6,013,000 | ||
Unused borrowing capacity | $ 2,400,000 |
Debt - Preferred Securities (De
Debt - Preferred Securities (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
NYM Preferred Trust I | ||
Debt Instrument [Line Items] | ||
Principal value of trust preferred securities | $ 25,000,000 | $ 25,000,000 |
Interest Rate | Three month LIBOR plus 3.75%, resetting quarterly | Three month LIBOR plus 3.75%, resetting quarterly |
Scheduled maturity | March 30, 2035 | March 30, 2035 |
NYM Preferred Trust I | LIBOR | ||
Debt Instrument [Line Items] | ||
Interest rate, basis spread | 3.75% | 3.75% |
NYM Preferred Trust II | ||
Debt Instrument [Line Items] | ||
Principal value of trust preferred securities | $ 20,000,000 | $ 20,000,000 |
Interest Rate | Three month LIBOR plus 3.95%, resetting quarterly | Three month LIBOR plus 3.95%, resetting quarterly |
Scheduled maturity | October 30, 2035 | October 30, 2035 |
NYM Preferred Trust II | LIBOR | ||
Debt Instrument [Line Items] | ||
Interest rate, basis spread | 3.95% | 3.95% |
Debt - Schedule of VIE Debt (De
Debt - Schedule of VIE Debt (Details) - VIE, Primary Beneficiary - Mortgages $ in Thousands | Sep. 30, 2017USD ($) |
Riverchase Landing | |
Debt Instrument [Line Items] | |
Mortgage Note Amount | $ 23,674 |
Interest Rate | 3.88% |
Net Deferred Finance Costs | $ 194 |
The Clusters | |
Debt Instrument [Line Items] | |
Mortgage Note Amount | $ 27,917 |
Interest Rate | 4.486% |
Net Deferred Finance Costs | $ 68 |
KRVI | |
Debt Instrument [Line Items] | |
Mortgage Note Amount | $ 6,013 |
Interest Rate | 6.00% |
Net Deferred Finance Costs | $ 0 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long-Term Debt (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Fiscal Year | |
2,017 | $ 0 |
2,018 | 0 |
2,019 | 6,013 |
2,020 | 0 |
2,021 | 0 |
2,022 | 161,674 |
Thereafter | 72,917 |
Total outstanding principal | $ 240,604 |
Fair Value of Financial Inst101
Fair Value of Financial Instruments - Narrative (Details) - CMBS | 9 Months Ended |
Sep. 30, 2017 | |
Minimum | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Fair value inputs, discount rate | 4.50% |
Maximum | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Fair value inputs, discount rate | 10.60% |
Fair Value of Financial Inst102
Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets carried at fair value | ||
Investment securities available for sale | $ 674,161 | $ 818,976 |
Level 3 | ||
Assets carried at fair value | ||
Investment in unconsolidated entities | 51,342 | 79,390 |
Fair Value, Measurements, Recurring | ||
Assets carried at fair value | ||
Residential mortgage loans, at fair value | 69,512 | 17,769 |
Investment in unconsolidated entities | 41,026 | 60,332 |
Total | 9,366,148 | 7,987,218 |
Liabilities carried at fair value | ||
Total | 7,991,086 | 6,625,394 |
Fair Value, Measurements, Recurring | TBA securities | ||
Assets carried at fair value | ||
Derivative assets | 180,562 | 148,139 |
Fair Value, Measurements, Recurring | Interest rate swap futures | ||
Assets carried at fair value | ||
Derivative assets | 1,228 | 444 |
Fair Value, Measurements, Recurring | U.S. Treasury futures | ||
Liabilities carried at fair value | ||
Derivative liabilities | 193 | 107 |
Fair Value, Measurements, Recurring | Interest rate swaps | ||
Assets carried at fair value | ||
Derivative assets | 18 | 108 |
Liabilities carried at fair value | ||
Derivative liabilities | 274 | 391 |
Fair Value, Measurements, Recurring | Swaptions | ||
Assets carried at fair value | ||
Derivative assets | 18 | 431 |
Fair Value, Measurements, Recurring | Eurodollar futures | ||
Assets carried at fair value | ||
Derivative assets | 289 | 1,175 |
Fair Value, Measurements, Recurring | Agency RMBS | ||
Assets carried at fair value | ||
Investment securities available for sale | 415,032 | 526,363 |
Fair Value, Measurements, Recurring | Non-Agency RMBS | ||
Assets carried at fair value | ||
Investment securities available for sale | 133,022 | 163,284 |
Fair Value, Measurements, Recurring | U.S. Treasury Securities | ||
Assets carried at fair value | ||
Investment securities available for sale | 2,924 | 2,887 |
Fair Value, Measurements, Recurring | CMBS | ||
Assets carried at fair value | ||
Investment securities available for sale | 123,183 | 126,442 |
Fair Value, Measurements, Recurring | Multi-family loans held in securitization trusts | ||
Assets carried at fair value | ||
Multi-family loans held in securitization trusts | 8,399,334 | 6,939,844 |
Fair Value, Measurements, Recurring | Multi-family collateralized debt obligations | ||
Liabilities carried at fair value | ||
Multi-family collateralized debt obligations | 7,990,619 | 6,624,896 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets carried at fair value | ||
Residential mortgage loans, at fair value | 0 | 0 |
Investment in unconsolidated entities | 0 | 0 |
Total | 4,441 | 4,506 |
Liabilities carried at fair value | ||
Total | 193 | 107 |
Fair Value, Measurements, Recurring | Level 1 | TBA securities | ||
Assets carried at fair value | ||
Derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Interest rate swap futures | ||
Assets carried at fair value | ||
Derivative assets | 1,228 | 444 |
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury futures | ||
Liabilities carried at fair value | ||
Derivative liabilities | 193 | 107 |
Fair Value, Measurements, Recurring | Level 1 | Interest rate swaps | ||
Assets carried at fair value | ||
Derivative assets | 0 | 0 |
Liabilities carried at fair value | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Swaptions | ||
Assets carried at fair value | ||
Derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Eurodollar futures | ||
Assets carried at fair value | ||
Derivative assets | 289 | 1,175 |
Fair Value, Measurements, Recurring | Level 1 | Agency RMBS | ||
Assets carried at fair value | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Non-Agency RMBS | ||
Assets carried at fair value | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury Securities | ||
Assets carried at fair value | ||
Investment securities available for sale | 2,924 | 2,887 |
Fair Value, Measurements, Recurring | Level 1 | CMBS | ||
Assets carried at fair value | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Multi-family loans held in securitization trusts | ||
Assets carried at fair value | ||
Multi-family loans held in securitization trusts | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Multi-family collateralized debt obligations | ||
Liabilities carried at fair value | ||
Multi-family collateralized debt obligations | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets carried at fair value | ||
Residential mortgage loans, at fair value | 0 | 0 |
Investment in unconsolidated entities | 0 | 0 |
Total | 805,212 | 920,870 |
Liabilities carried at fair value | ||
Total | 274 | 391 |
Fair Value, Measurements, Recurring | Level 2 | TBA securities | ||
Assets carried at fair value | ||
Derivative assets | 180,562 | 148,139 |
Fair Value, Measurements, Recurring | Level 2 | Interest rate swap futures | ||
Assets carried at fair value | ||
Derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury futures | ||
Liabilities carried at fair value | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Interest rate swaps | ||
Assets carried at fair value | ||
Derivative assets | 18 | 108 |
Liabilities carried at fair value | ||
Derivative liabilities | 274 | 391 |
Fair Value, Measurements, Recurring | Level 2 | Swaptions | ||
Assets carried at fair value | ||
Derivative assets | 18 | 431 |
Fair Value, Measurements, Recurring | Level 2 | Eurodollar futures | ||
Assets carried at fair value | ||
Derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Agency RMBS | ||
Assets carried at fair value | ||
Investment securities available for sale | 415,032 | 526,363 |
Fair Value, Measurements, Recurring | Level 2 | Non-Agency RMBS | ||
Assets carried at fair value | ||
Investment securities available for sale | 133,022 | 163,284 |
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury Securities | ||
Assets carried at fair value | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | CMBS | ||
Assets carried at fair value | ||
Investment securities available for sale | 76,560 | 82,545 |
Fair Value, Measurements, Recurring | Level 2 | Multi-family loans held in securitization trusts | ||
Assets carried at fair value | ||
Multi-family loans held in securitization trusts | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Multi-family collateralized debt obligations | ||
Liabilities carried at fair value | ||
Multi-family collateralized debt obligations | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets carried at fair value | ||
Residential mortgage loans, at fair value | 69,512 | 17,769 |
Investment in unconsolidated entities | 41,026 | 60,332 |
Total | 8,556,495 | 7,061,842 |
Liabilities carried at fair value | ||
Total | 7,990,619 | 6,624,896 |
Fair Value, Measurements, Recurring | Level 3 | TBA securities | ||
Assets carried at fair value | ||
Derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Interest rate swap futures | ||
Assets carried at fair value | ||
Derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury futures | ||
Liabilities carried at fair value | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Interest rate swaps | ||
Assets carried at fair value | ||
Derivative assets | 0 | 0 |
Liabilities carried at fair value | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Swaptions | ||
Assets carried at fair value | ||
Derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Eurodollar futures | ||
Assets carried at fair value | ||
Derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Agency RMBS | ||
Assets carried at fair value | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Non-Agency RMBS | ||
Assets carried at fair value | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury Securities | ||
Assets carried at fair value | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | CMBS | ||
Assets carried at fair value | ||
Investment securities available for sale | 46,623 | 43,897 |
Fair Value, Measurements, Recurring | Level 3 | Multi-family loans held in securitization trusts | ||
Assets carried at fair value | ||
Multi-family loans held in securitization trusts | 8,399,334 | 6,939,844 |
Fair Value, Measurements, Recurring | Level 3 | Multi-family collateralized debt obligations | ||
Liabilities carried at fair value | ||
Multi-family collateralized debt obligations | $ 7,990,619 | $ 6,624,896 |
Fair Value of Financial Inst103
Fair Value of Financial Instruments - Valuation for Level 3 Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at beginning of period | $ 7,061,842 | $ 7,214,587 | $ 7,214,587 |
Total gains/(losses) (realized/unrealized) | |||
Included in earnings | 38,978 | 215,325 | |
Included in other comprehensive income | 208 | 178 | |
Purchases | 1,598,018 | 13,326 | |
Transfers in | 0 | 52,176 | |
Transfers out | 0 | (56,756) | |
Contributions | 1,300 | 2,000 | |
Paydowns/Distributions | (139,751) | (93,129) | |
Sales | (4,100) | 0 | |
Balance at the end of period | $ 8,556,495 | $ 7,340,018 | $ 7,061,842 |
Fair Value of Financial Inst104
Fair Value of Financial Instruments - Valuation for Level 3 Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 6,624,896 | $ 6,818,901 |
Total gains/(losses) (realized/unrealized) | ||
Included in earnings | (1,389) | 186,855 |
Purchases | 1,472,073 | 0 |
Paydowns | (104,961) | (91,901) |
Balance at the end of period | $ 7,990,619 | $ 6,913,855 |
Fair Value of Financial Inst105
Fair Value of Financial Instruments - Changes in Unrealized Gains (Losses) Included in Earnings for Level 3 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net change in unrealized gains included in earnings for assets and liabilities | $ 2,353 | $ 738 | $ 5,184 | $ 2,340 |
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Change in unrealized (losses) gains – assets | (19,767) | (17,722) | 56,995 | 237,934 |
Change in unrealized gains (losses) – liabilities | 22,120 | 18,460 | (51,811) | (235,594) |
Net change in unrealized gains included in earnings for assets and liabilities | $ 2,353 | $ 738 | $ 5,184 | $ 2,340 |
Fair Value of Financial Inst106
Fair Value of Financial Instruments - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Residential mortgage loans held in securitization trusts – impaired loans (net) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential mortgage loans held in securitization trusts – impaired loans (net) | $ 7,201 | $ 9,050 |
Real estate owned held in residential securitization trusts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate owned held in residential securitization trusts | 742 | 150 |
Level 1 | Residential mortgage loans held in securitization trusts – impaired loans (net) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential mortgage loans held in securitization trusts – impaired loans (net) | 0 | 0 |
Level 1 | Real estate owned held in residential securitization trusts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate owned held in residential securitization trusts | 0 | 0 |
Level 2 | Residential mortgage loans held in securitization trusts – impaired loans (net) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential mortgage loans held in securitization trusts – impaired loans (net) | 0 | 0 |
Level 2 | Real estate owned held in residential securitization trusts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate owned held in residential securitization trusts | 0 | 0 |
Level 3 | Residential mortgage loans held in securitization trusts – impaired loans (net) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential mortgage loans held in securitization trusts – impaired loans (net) | 7,201 | 9,050 |
Level 3 | Real estate owned held in residential securitization trusts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate owned held in residential securitization trusts | $ 742 | $ 150 |
Fair Value of Financial Inst107
Fair Value of Financial Instruments - Losses Incurred for Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Residential mortgage loans held in securitization trusts – impaired loans (net) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loss (gain) for assets measured at fair value on a non-recurring basis | $ (199) | $ 102 | $ 6 | $ 534 |
Real estate owned held in residential securitization trusts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loss (gain) for assets measured at fair value on a non-recurring basis | $ 297 | $ 46 | $ 303 | $ 23 |
Fair Value of Financial Inst108
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value of the Company's Financial Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financial Assets: | ||
Cash and cash equivalents | $ 101,904 | $ 83,554 |
Fair Value | 674,161 | 818,976 |
Derivative assets | 182,115 | 150,296 |
Mezzanine loan and preferred equity investments, carrying value | 123,944 | 138,323 |
Financial Liabilities | ||
Financing arrangements | 608,304 | 773,142 |
Derivative liabilities | 467 | 498 |
Subordinated debentures, carrying value | 45,000 | 45,000 |
Convertible notes, carrying value | 128,273 | 0 |
Distressed residential mortgage loans held in securitization trusts, carrying amount | 133,972 | 195,347 |
Distressed residential mortgage loans | ||
Financial Assets: | ||
Residential mortgage loans held in securitization trusts (net) | 235,700 | 307,700 |
Financial Liabilities | ||
Distressed residential mortgage loans held in securitization trusts, carrying amount | 369,700 | 503,100 |
Distressed residential mortgage loans | ||
Financial Liabilities | ||
Distressed residential mortgage loans held in securitization trusts, carrying amount | 134,000 | 195,300 |
Equity Method Investments | ||
Financial Assets: | ||
Investment in unconsolidated entities, carrying value | 10,242 | 18,927 |
Investments in unconsolidated entities, estimated fair value | 41,026 | 60,332 |
Portfolio Investments | ||
Financial Liabilities | ||
Financing arrangements | 608,304 | 773,142 |
Residential collateralized debt obligations | ||
Financial Liabilities | ||
Secured debt, carrying value | 76,867 | 91,663 |
Multi-family collateralized debt obligations | ||
Financial Liabilities | ||
Secured debt, carrying value | 7,990,619 | 6,624,896 |
Available-for-sale securities | ||
Financial Liabilities | ||
Investment securities, available for sale, at fair value (including $46,623 and $43,897 held in securitization trusts as of September 30, 2017 and December 31, 2016, respectively, and pledged securities of $493,632 and $690,592, as of September 30, 2017 and December 31, 2016, respectively) | 46,623 | 43,897 |
Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents | 101,904 | 83,554 |
Cash and cash equivalents, estimated fair value | 101,904 | 83,554 |
Receivable for securities sold, carrying value | 1,261 | 0 |
Receivable for securities sold, estimated fair value | 1,261 | 0 |
Financial Liabilities | ||
Payable for securities purchased, carrying value | 181,718 | 148,015 |
Payable for securities purchased, estimated fair value | 181,718 | 148,015 |
Level 3 | ||
Financial Assets: | ||
Mortgage loans held for sale (net), carrying value | 6,797 | 7,847 |
Mortgage loans held for sale (net), estimated fair value | 6,899 | 7,959 |
Mortgage loans held for investment, carrying value | 1,760 | 19,529 |
Mortgage loans held for investment, estimated fair value | 1,900 | 19,641 |
Mezzanine loan and preferred equity investments, carrying value | 122,578 | 100,150 |
Mezzanine loan and preferred equity investments, estimated fair value | 124,436 | 101,408 |
Investment in unconsolidated entities, carrying value | 51,268 | 79,259 |
Investments in unconsolidated entities, estimated fair value | 51,342 | 79,390 |
Financial Liabilities | ||
Secured debt, carrying value | 98,371 | 158,867 |
Secured debt, estimated fair value | 105,768 | 163,884 |
Subordinated debentures, carrying value | 45,000 | 45,000 |
Subordinated debentures, estimated fair value | 44,989 | 43,132 |
Level 3 | Residential collateralized debt obligations | ||
Financial Liabilities | ||
Secured debt, carrying value | 76,867 | 91,663 |
Secured debt, estimated fair value | 72,428 | 85,568 |
Level 3 | Multi-family collateralized debt obligations | ||
Financial Liabilities | ||
Secured debt, carrying value | 7,990,619 | 6,624,896 |
Secured debt, estimated fair value | 7,990,619 | 6,624,896 |
Level 3 | Residential mortgage loans held in securitization trusts | ||
Financial Assets: | ||
Residential mortgage loans held in securitization trusts (net) | 79,875 | 95,144 |
Residential mortgage loans held in securitization trusts (net), estimated fair value | 77,412 | 88,718 |
Level 3 | Distressed residential mortgage loans | ||
Financial Assets: | ||
Residential mortgage loans held in securitization trusts (net) | 369,651 | 503,094 |
Residential mortgage loans held in securitization trusts (net), estimated fair value | 374,169 | 504,915 |
Level 3 | Residential mortgage loans, at fair value | ||
Financial Assets: | ||
Residential mortgage loans held in securitization trusts (net) | 69,512 | 17,769 |
Residential mortgage loans held in securitization trusts (net), estimated fair value | 69,512 | 17,769 |
Level 3 | Multi-family loans held in securitization trusts | ||
Financial Assets: | ||
Residential mortgage loans held in securitization trusts (net) | 8,399,334 | 6,939,844 |
Residential mortgage loans held in securitization trusts (net), estimated fair value | 8,399,334 | 6,939,844 |
Level 1 and 2 | ||
Financial Assets: | ||
Derivative assets | 182,115 | 150,296 |
Financial Liabilities | ||
Derivative liabilities | 467 | 498 |
Level 2 | ||
Financial Liabilities | ||
Convertible notes, carrying value | 128,273 | 0 |
Convertible notes, estimated fair value | 138,697 | 0 |
Level 2 | Portfolio Investments | ||
Financial Liabilities | ||
Financing arrangements | 608,304 | 773,142 |
Level 2 | Distressed residential mortgage loans | ||
Financial Liabilities | ||
Financing arrangements | $ 160,562 | $ 192,419 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | Apr. 22, 2015USD ($)$ / sharesshares | Jun. 04, 2013USD ($)$ / sharesshares | Sep. 30, 2017USD ($)directorquarter$ / sharesshares | Sep. 30, 2016shares | Sep. 30, 2017USD ($)directorquarter$ / sharesshares | Sep. 30, 2016shares | Dec. 31, 2016$ / sharesshares | Aug. 10, 2017USD ($)$ / shares | Mar. 20, 2015USD ($) |
Class of Stock [Line Items] | |||||||||
Preferred stock, shares authorized (in shares) | 200,000,000 | 200,000,000 | 200,000,000 | ||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
Preferred stock, shares issued (in shares) | 6,600,000 | 6,600,000 | 6,600,000 | ||||||
Preferred stock, shares outstanding (in shares) | 6,600,000 | 6,600,000 | 6,600,000 | ||||||
Proceeds from initial public offering | $ | $ 0 | $ 0 | |||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
Equity Distribution Agreements | |||||||||
Class of Stock [Line Items] | |||||||||
Shares issued (in shares) | 0 | 0 | 87,737 | 0 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||||
Common stock that may be sold (up to) | $ | $ 100,000,000 | $ 39,300,000 | |||||||
Share price (in dollars per share) | $ / shares | $ 6.68 | $ 6.68 | |||||||
Proceeds from issuance of common stock | $ | $ 600,000 | ||||||||
Common stock reserved for issuance | $ | $ 100,000,000 | $ 100,000,000 | |||||||
Series B Preferred Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, shares authorized (in shares) | 6,000,000 | 6,000,000 | 6,000,000 | ||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Preferred stock, shares issued (in shares) | 3,000,000 | 3,000,000 | 3,000,000 | ||||||
Preferred stock, shares outstanding (in shares) | 3,000,000 | 3,000,000 | 3,000,000 | ||||||
Shares issued (in shares) | 3,000,000 | ||||||||
Preferred stock, cumulative redeemable dividend rate | 7.75% | 7.75% | 7.75% | ||||||
Preferred stock, liquidation preference per share (in dollars per share) | $ / shares | $ 25 | $ 25 | $ 25 | $ 25 | |||||
Preferred stock issuance, net | $ | $ 72,400,000 | ||||||||
Redemption term | 120 days | ||||||||
Redemption price (in dollars per share) | $ / shares | $ 25 | $ 25 | |||||||
Series C Preferred Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, shares authorized (in shares) | 4,140,000 | 4,140,000 | 4,140,000 | ||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Preferred stock, shares issued (in shares) | 3,600,000 | 3,600,000 | 3,600,000 | 3,600,000 | |||||
Preferred stock, shares outstanding (in shares) | 3,600,000 | 3,600,000 | 3,600,000 | ||||||
Preferred stock, cumulative redeemable dividend rate | 7.875% | 7.875% | 7.875% | ||||||
Preferred stock, liquidation preference per share (in dollars per share) | $ / shares | $ 25 | $ 25 | $ 25 | $ 25 | |||||
Preferred stock issuance, net | $ | $ 86,900,000 | ||||||||
Series B and C Preferred Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Number of quarters with no dividends that results in voting rights | quarter | 6 | 6 | |||||||
Number of elected directors pending preferred stock voting rights | director | 2 | 2 | |||||||
Stockholders required for term changes, percentage | 66.67% | 66.67% |
Stockholders' Equity - Cash Div
Stockholders' Equity - Cash Dividends Declared - Preferred Stock (Details) - $ / shares | Oct. 15, 2017 | Jul. 15, 2017 | Apr. 15, 2017 | Jan. 15, 2017 | Oct. 15, 2016 | Jul. 15, 2016 | Apr. 15, 2016 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 |
Dividends Payable [Line Items] | ||||||||||||||
Declaration Date | Sep. 14, 2017 | Jun. 14, 2017 | Mar. 16, 2017 | Dec. 15, 2016 | Sep. 15, 2016 | Jun. 16, 2016 | Mar. 18, 2016 | |||||||
Record Date | Sep. 25, 2017 | Jun. 26, 2017 | Mar. 27, 2017 | Dec. 27, 2016 | Sep. 26, 2016 | Jun. 27, 2016 | Mar. 28, 2016 | |||||||
Payment Date | Oct. 25, 2017 | Jul. 25, 2017 | Apr. 25, 2017 | Jan. 26, 2017 | Oct. 28, 2016 | Jul. 25, 2016 | Apr. 25, 2016 | |||||||
Series B Preferred Stock | ||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||
Declaration Date | Sep. 14, 2017 | Jun. 14, 2017 | Mar. 16, 2017 | Dec. 15, 2016 | Sep. 15, 2016 | Jun. 16, 2016 | Mar. 18, 2016 | |||||||
Record Date | Oct. 1, 2017 | Jul. 1, 2017 | Apr. 1, 2017 | Jan. 1, 2017 | Oct. 1, 2016 | Jul. 1, 2016 | Apr. 1, 2016 | |||||||
Payment Date | Oct. 15, 2017 | Jul. 15, 2017 | Apr. 15, 2017 | Jan. 15, 2017 | Oct. 15, 2016 | Jul. 15, 2016 | Apr. 15, 2016 | |||||||
Cash Dividend Per Share (in dollars per share) | $ 0.484375 | $ 0.484375 | $ 0.484375 | $ 0.484375 | $ 0.484375 | $ 0.484375 | ||||||||
Series B Preferred Stock | Subsequent Event | ||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||
Cash Dividend Per Share (in dollars per share) | $ 0.484375 | |||||||||||||
Series C Preferred Stock | ||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||
Declaration Date | Sep. 14, 2017 | Jun. 14, 2017 | Mar. 16, 2017 | Dec. 15, 2016 | Sep. 15, 2016 | Jun. 16, 2016 | Mar. 18, 2016 | |||||||
Record Date | Oct. 1, 2017 | Jul. 1, 2017 | Apr. 1, 2017 | Jan. 1, 2017 | Oct. 1, 2016 | Jul. 1, 2016 | Apr. 1, 2016 | |||||||
Payment Date | Oct. 15, 2017 | Jul. 15, 2017 | Apr. 15, 2017 | Jan. 15, 2017 | Oct. 15, 2016 | Jul. 15, 2016 | Apr. 15, 2016 | |||||||
Cash Dividend Per Share (in dollars per share) | $ 0.4921875 | $ 0.4921875 | $ 0.4921875 | $ 0.4921875 | $ 0.4921875 | |||||||||
Series C Preferred Stock | Subsequent Event | ||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||
Cash Dividend Per Share (in dollars per share) | $ 0.4921875 |
Stockholders' Equity - Cash 111
Stockholders' Equity - Cash Dividends Declared - Common Stock (Details) - $ / shares | Oct. 25, 2017 | Jul. 25, 2017 | Apr. 25, 2017 | Jan. 26, 2017 | Oct. 28, 2016 | Jul. 25, 2016 | Apr. 25, 2016 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 |
Subsequent Event [Line Items] | ||||||||||||||
Declaration Date | Sep. 14, 2017 | Jun. 14, 2017 | Mar. 16, 2017 | Dec. 15, 2016 | Sep. 15, 2016 | Jun. 16, 2016 | Mar. 18, 2016 | |||||||
Record Date | Sep. 25, 2017 | Jun. 26, 2017 | Mar. 27, 2017 | Dec. 27, 2016 | Sep. 26, 2016 | Jun. 27, 2016 | Mar. 28, 2016 | |||||||
Payment Date | Oct. 25, 2017 | Jul. 25, 2017 | Apr. 25, 2017 | Jan. 26, 2017 | Oct. 28, 2016 | Jul. 25, 2016 | Apr. 25, 2016 | |||||||
Cash dividend per share (in dollars per share) | $ 0.2 | $ 0.20 | $ 0.24 | $ 0.24 | $ 0.24 | $ 0.24 | ||||||||
Subsequent Event | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Cash dividend per share (in dollars per share) | $ 0.2 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||
Dilutive instruments (in shares) | 0 | 0 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Basic Earnings per Common Share | ||||
Net income attributable to Company | $ 27,845 | $ 23,268 | $ 61,364 | $ 54,654 |
Less: Preferred stock dividends | (3,225) | (3,225) | (9,675) | (9,675) |
NET INCOME ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS | $ 24,620 | $ 20,043 | $ 51,689 | $ 44,979 |
Weighted average common shares outstanding-basic (in shares) | 111,886 | 109,569 | 111,824 | 109,487 |
Basic Earnings per Common Share (in dollars per share) | $ 0.22 | $ 0.18 | $ 0.46 | $ 0.41 |
Diluted Earnings per Common Share: | ||||
Net income attributable to Company | $ 27,845 | $ 23,268 | $ 61,364 | $ 54,654 |
Less: Preferred stock dividends | (3,225) | (3,225) | (9,675) | (9,675) |
Add back: Interest expense on convertible notes for the period, net of tax | 2,428 | 0 | 6,982 | 0 |
Net income attributable to Company's common stockholders | $ 27,048 | $ 20,043 | $ 58,671 | $ 44,979 |
Weighted average common shares outstanding-basic (in shares) | 111,886 | 109,569 | 111,824 | 109,487 |
Net effect of assumed convertible notes conversion to common shares (in shares) | 19,694 | 0 | 18,107 | 0 |
Diluted weighted average common shares outstanding (in shares) | 131,580 | 109,569 | 129,931 | 109,487 |
Diluted Earnings per Common Share (in dollars per share) | $ 0.21 | $ 0.18 | $ 0.45 | $ 0.41 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
May 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Director | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued, aggregate (in shares) | 265,934 | 265,934 | |||||
Performance Share Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Non-vested shares (in shares) | 422,928 | 319,058 | 422,928 | 319,058 | 319,058 | 280,457 | |
Shares granted (in shares) | 332,921 | 160,453 | |||||
Employee Stock Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued, aggregate (in shares) | 895,201 | 895,201 | 562,280 | ||||
PSA Award | Performance Share Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum number of shares that may be issued (in shares) | 94,043 | 94,043 | |||||
2017 Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum number of shares that may be issued (in shares) | 5,570,000 | 5,570,000 | |||||
2017 Incentive Plan | Director | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued (in shares) | 58,920 | ||||||
2017 Incentive Plan | Employee | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued (in shares) | 6,258 | ||||||
2017 Incentive Plan | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Non-vested shares (in shares) | 6,258 | 6,258 | |||||
2010 Stock Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for grant (in shares) | 326,663 | ||||||
2010 Stock Incentive Plan | Director | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued, aggregate (in shares) | 207,014 | ||||||
2010 Stock Incentive Plan | Performance Share Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ 32,000 | $ 95,100 | |||||
Unrecognized compensation cost | 100,000 | 100,000 | |||||
2010 Stock Incentive Plan | Performance Share Awards | Board of Directors Chairman | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted (in shares) | 89,629 | ||||||
Fair value of shares granted | $ 400,000 | ||||||
Percentage of target PSA's granted eligible for receipt, minimum | 0.00% | ||||||
Percentage of target PSA's granted eligible for receipt, maximum | 200.00% | ||||||
Award vesting period | 3 years | ||||||
Fair value, expected term | 3 years | ||||||
Fair value, expected term for volatility rate | 3 years | ||||||
Fair value, expected term for risk free interest rate | 3 years | ||||||
Fair value, expected term for dividend rate | 3 years | ||||||
2010 Stock Incentive Plan | Performance Share Awards | Board of Directors Chairman | If TSR is Less Than 33% | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting rights, percentage | 0.00% | ||||||
2010 Stock Incentive Plan | Performance Share Awards | Board of Directors Chairman | If TSR is Greater Than or Equal to 33% | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting rights, percentage | 100.00% | ||||||
2010 Stock Incentive Plan | Performance Share Awards | Board of Directors Chairman | If TSR is Greater Than or Equal to 33% and TSR Is In Top Quartile of Identified Peer Group | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting rights, percentage | 200.00% | ||||||
2010 Stock Incentive Plan | Performance Share Awards | Board of Directors Chairman | If TSR Is Greater Than or Equal to 33% and TSR Is In Bottom Quartile of Identified Peer Group | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting rights, percentage | 50.00% | ||||||
2010 Stock Incentive Plan | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | 800,000 | $ 300,000 | $ 1,500,000 | $ 700,000 | |||
Forfeitures (in shares) | 0 | 0 | |||||
Unrecognized compensation cost | $ 1,900,000 | $ 1,500,000 | $ 1,900,000 | $ 1,500,000 | |||
Unrecognized compensation cost, period for recognition | 2 years 29 days | ||||||
Fair value of vested shares | $ 1,500,000 | $ 600,000 | |||||
Requisite service period | 3 years |
Stock Based Compensation - Non-
Stock Based Compensation - Non-vested Restricted Stock (Details) - Restricted Stock - $ / shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Number of Non-vested Restricted Shares | ||
Non-vested shares at beginning of period (in shares) | 319,058 | 280,457 |
Granted (in shares) | 332,921 | 160,453 |
Vested (in shares) | (229,051) | (121,852) |
Non-vested shares at end of period (in shares) | 422,928 | 319,058 |
Weighted Average Per Share Grant Date Fair Value | ||
Non-vested shares at beginning of period (in dollars per share) | $ 6.40 | $ 7.63 |
Granted (in dollars per share) | 6.54 | 5.11 |
Vested (in dollars per share) | 6.67 | 7.54 |
Non-vested shares at end of period (in dollars per share) | $ 6.36 | $ 6.40 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Current income tax expense | $ 541 | $ 326 | $ 2,280 | $ 2,581 |
Deferred income tax (benefit) expense | (34) | (163) | (93) | 139 |
Total provision | $ 507 | $ 163 | $ 2,187 | $ 2,720 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Asset (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Deferred tax assets | ||
Net operating loss carryforward | $ 2,174 | $ 2,287 |
Net capital loss carryforward | 0 | 1,123 |
GAAP/Tax basis differences | 3,556 | 3,059 |
Total deferred tax assets | 5,730 | 6,469 |
Deferred tax liabilities | ||
Deferred tax liabilities | 200 | 303 |
Valuation allowance | (5,248) | (5,978) |
Total net deferred tax asset | $ 282 | $ 188 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Loss Carryforwards [Line Items] | ||||
Net operating losses | $ (27,845) | $ (23,268) | $ (61,364) | $ (54,654) |
Taxable REIT Subsidiaries | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating losses | $ 4,800 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) | Oct. 01, 2016USD ($) | Jul. 15, 2016USD ($) | Jun. 10, 2016USD ($) | May 16, 2016USD ($)component | Dec. 31, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | May 17, 2016 | May 15, 2016 | Mar. 31, 2016USD ($) |
Business Acquisition [Line Items] | |||||||||||
Equity interest in acquiree, percentage | 80.00% | ||||||||||
Capital | $ 371,500,000 | ||||||||||
Gain on remeasurement of existing membership interest in businesses acquired | $ 0 | $ 5,052,000 | |||||||||
Goodwill | $ 25,222,000 | 25,222,000 | $ 25,222,000 | ||||||||
Goodwill impairment | $ 0 | ||||||||||
Gain on bargain purchase on businesses acquired | $ 0 | $ 65,000 | |||||||||
Revenue of acquiree since acquisition date | 5,300,000 | ||||||||||
Minimum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Finite-lived intangible asset, useful life | 6 months | ||||||||||
Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Finite-lived intangible asset, useful life | 10 years | ||||||||||
RiverBanc | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Ownership percentage by noncontrolling owners prior to acquisition | 59.40% | ||||||||||
RBMI | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Ownership percentage by noncontrolling owners prior to acquisition | 5.47% | ||||||||||
RBDHC | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Ownership percentage by noncontrolling owners prior to acquisition | 6.25% | ||||||||||
RiverBanc, RBMI, and RBDHC | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Subsidiary cumulative percentage ownership after all transactions | 100.00% | ||||||||||
Total consideration transferred | $ 53,481,000 | ||||||||||
Fair value of previously held membership interests | $ 20,608,000 | ||||||||||
Contingent consideration, number of components | component | 2 | ||||||||||
Payments for previous acquisition | $ 20,000 | ||||||||||
Intangible assets | $ 3,490,000 | ||||||||||
RiverBanc, RBMI, and RBDHC | Other Income | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Gain on remeasurement of existing membership interest in businesses acquired | 5,000,000 | ||||||||||
RiverBanc, RBMI, and RBDHC | Cash Holdback | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Payments for previous acquisition | $ 3,000,000 | ||||||||||
Contingent consideration | 3,000,000 | ||||||||||
Reimbursement to previous beneficial owner for purchase of company shares | $ 3,000,000 | ||||||||||
Contingent consideration term | 90 days | ||||||||||
RiverBanc, RBMI, and RBDHC | Severance Holdback | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Payments for previous acquisition | 800,000 | ||||||||||
Contingent consideration | $ 800,000 | ||||||||||
RiverBanc, RBMI, and RBDHC | RiverBanc | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Equity interest in acquiree, percentage | 20.00% | ||||||||||
RiverBanc, RBMI, and RBDHC | RBMI | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Equity interest in acquiree, percentage | 67.19% | ||||||||||
RiverBanc, RBMI, and RBDHC | RBDHC | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Equity interest in acquiree, percentage | 62.50% | ||||||||||
RiverBanc | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill purchase accounting adjustments | $ 20,000 | ||||||||||
Intangible assets | 3,500,000 | ||||||||||
Goodwill | $ 25,222,000 | ||||||||||
Measurement period adjustment in intangible assets | $ 400,000 | ||||||||||
Goodwill impairment | $ 0 | ||||||||||
RiverBanc | Minimum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Finite-lived intangible asset, useful life | 1 year | ||||||||||
RiverBanc | Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Finite-lived intangible asset, useful life | 10 years | ||||||||||
RBMI, RBDHC | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Gain on bargain purchase on businesses acquired | $ 65,000 | $ 100,000 |
Business Combinations - Schedul
Business Combinations - Schedule of Fair Value Consideration Transferred (Details) - USD ($) $ in Thousands | Jul. 15, 2016 | May 16, 2016 |
RiverBanc, RBMI, and RBDHC | ||
Business Acquisition [Line Items] | ||
Cash | $ 29,073 | |
Contingent consideration | 3,800 | |
Fair value of previously held membership interests | 20,608 | |
Total consideration transferred | 53,481 | |
Payments to beneficial owner to acquire business | $ 16,300 | |
RiverBanc | ||
Business Acquisition [Line Items] | ||
Goodwill purchase accounting adjustments | $ 20 |
Business Combinations - Sche121
Business Combinations - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | May 16, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 25,222 | $ 25,222 | ||
Gain on bargain purchase on businesses acquired | 0 | $ (65) | ||
Non-controlling interest | $ (4,462) | |||
Intercompany transaction eliminated | $ 40,400 | |||
Mortgages payable | 16,300 | |||
RiverBanc, RBMI, and RBDHC | ||||
Business Acquisition [Line Items] | ||||
Cash | 4,325 | |||
Investment in unconsolidated entities | 52,176 | |||
Mezzanine loan and preferred equity investments | 23,638 | |||
Real estate under development | 14,922 | |||
Receivables and other assets | 911 | |||
Intangible assets | 3,490 | |||
Total identifiable assets acquired | 99,462 | |||
Construction loan payable | 8,499 | |||
Accrued expenses and other liabilities | 2,864 | |||
Total liabilities assumed | 11,363 | |||
Preferred equity | 56,697 | |||
Net identifiable assets acquired | 31,402 | |||
Non-controlling interest | (3,078) | |||
Net assets acquired | 53,481 | |||
RiverBanc | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 3,500 | |||
Goodwill | 25,222 | |||
RBMI, RBDHC | ||||
Business Acquisition [Line Items] | ||||
Gain on bargain purchase on businesses acquired | (65) | $ (100) | ||
KRVI | ||||
Business Acquisition [Line Items] | ||||
Non-controlling interest | $ (3,100) |
Business Combinations - Pro For
Business Combinations - Pro Forma Information (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($)$ / shares | |
Business Combinations [Abstract] | |
Revenue | $ | $ 272,074 |
Net income attributable to Company's common stockholders | $ | $ 42,077 |
Basic pro forma earnings per share (in dollars per share) | $ / shares | $ 0.38 |
Diluted pro forma earnings per share (in dollars per share) | $ / shares | $ 0.38 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | Jan. 01, 2013 | Sep. 30, 2016 | May 17, 2016 | May 15, 2016 |
Related Party Transaction [Line Items] | ||||
Equity interest in acquiree, percentage | 80.00% | |||
Management Agreement With River Banc LLC | ||||
Related Party Transaction [Line Items] | ||||
Management agreement, renewal term | 1 year | |||
Equity method investment, ownership Interest | 20.00% | |||
Revenue (loss) from related parties | $ 0.1 | |||
Expenses from transactions with related parties | $ 1.8 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 27, 2017 | Oct. 13, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | ||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Subsequent Event | Freddie Mac-Sponsored Multi-family K-Series | ||||
Subsequent Event [Line Items] | ||||
Purchase of first loss tranche securities | $ 36.7 | |||
Collateral, multi-family loans | $ 1,300 | |||
Subsequent Event | Series D Preferred Stock | ||||
Subsequent Event [Line Items] | ||||
Preferred stock, cumulative redeemable dividend rate | 8.00% | |||
Preferred stock, par value (in dollars per share) | $ 0.01 | |||
Subsequent Event | LIBOR | Series D Preferred Stock | ||||
Subsequent Event [Line Items] | ||||
Interest rate, basis spread | 5.695% | |||
Subsequent Event | Underwritten Public Offering | Series D Preferred Stock | ||||
Subsequent Event [Line Items] | ||||
Number of shares sold (in shares) | 5,400,000 | |||
Preferred stock, cumulative redeemable dividend rate | 8.00% | |||
Preferred stock, liquidation preference per share (in dollars per share) | $ 25 | |||
Redemption price (in dollars per share) | $ 2 | |||
Proceeds from issuance of preferred stock | $ 130.4 | |||
Subsequent Event | Underwriter's Option to Purchase Additional Shares | Series D Preferred Stock | ||||
Subsequent Event [Line Items] | ||||
Number of shares sold (in shares) | 400,000 | |||
Option to purchase additional shares (in shares) | 750,000 |