Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 06, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-32216 | |
Entity Registrant Name | NEW YORK MORTGAGE TRUST, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 47-0934168 | |
Entity Address, Address Line One | 90 Park Avenue | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10016 | |
City Area Code | 212 | |
Local Phone Number | 792-0107 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 233,872,614 | |
Amendment Flag | false | |
Entity Central Index Key | 0001273685 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | NYMT | |
Security Exchange Name | NASDAQ | |
7.75% Series B Cumulative Redeemable Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 7.75% Series B Cumulative Redeemable Preferred Stock, | |
Trading Symbol | NYMTP | |
Security Exchange Name | NASDAQ | |
7.875% Series C Cumulative Redeemable Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 7.875% Series C Cumulative Redeemable Preferred Stock, | |
Trading Symbol | NYMTO | |
Security Exchange Name | NASDAQ | |
8.000% Series D Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 8.000% Series D Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, | |
Trading Symbol | NYMTN | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Investment securities, available for sale, at fair value | $ 1,743,869 | $ 1,512,252 | |
Investments in unconsolidated entities | 166,148 | 73,466 | |
Preferred equity and mezzanine loan investments | 191,387 | 165,555 | |
Multi-family loans held in securitization trusts, at fair value | 14,573,925 | 11,679,847 | |
Derivative assets | 14,047 | 10,263 | |
Cash and cash equivalents | 134,993 | 103,724 | |
Real estate held for sale in consolidated variable interest entities | 0 | 29,704 | |
Goodwill | 25,222 | 25,222 | |
Receivables and other assets | 135,845 | 114,821 | |
Total Assets | [1] | 18,265,484 | 14,737,638 |
Liabilities: | |||
Repurchase agreements | 1,843,815 | 1,543,577 | |
Convertible notes | 131,839 | 130,762 | |
Subordinated debentures | 45,000 | 45,000 | |
Mortgages and notes payable in consolidated variable interest entities | 3,986 | 31,227 | |
Securitized debt | 0 | 42,335 | |
Accrued expenses and other liabilities | 134,615 | 101,228 | |
Total Liabilities | [1] | 16,737,802 | 13,557,345 |
Commitments and Contingencies | |||
Stockholders' Equity: | |||
Common stock, $0.01 par value, 400,000,000 shares authorized, 210,872,614 and 155,589,528 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively | 2,109 | 1,556 | |
Additional paid-in capital | 1,337,330 | 1,013,391 | |
Accumulated other comprehensive income (loss) | 11,004 | (22,135) | |
Accumulated deficit | (128,207) | (103,178) | |
Company's stockholders' equity | 1,528,078 | 1,179,389 | |
Non-controlling interest in consolidated variable interest entities | (396) | 904 | |
Total equity | 1,527,682 | 1,180,293 | |
Total Liabilities and Stockholders' Equity | 18,265,484 | 14,737,638 | |
Series B Preferred Stock | |||
Stockholders' Equity: | |||
Preferred stock | 74,854 | 72,397 | |
Series C Preferred Stock | |||
Stockholders' Equity: | |||
Preferred stock | 96,486 | 86,862 | |
Series D Preferred Stock | |||
Stockholders' Equity: | |||
Preferred stock | 134,502 | 130,496 | |
Repurchase agreements | |||
Liabilities: | |||
Repurchase agreements | 2,604,356 | 2,131,505 | |
Residential collateralized debt obligations | |||
Liabilities: | |||
Collateralized debt obligations | 45,280 | 53,040 | |
Multi-family collateralized debt obligations, at fair value | |||
Liabilities: | |||
Collateralized debt obligations | 13,772,726 | 11,022,248 | |
Distressed and other residential mortgage loans (including pledged securities) | |||
ASSETS | |||
Residential mortgage loans, net | 1,061,954 | 737,523 | |
Residential mortgage loans held in securitization trusts, net | |||
ASSETS | |||
Residential mortgage loans, net | $ 218,094 | $ 285,261 | |
[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 June 30, 2019 and December 31, 2018 , assets of consolidated VIEs totaled $14,691,481 and $11,984,374 , respectively, and the liabilities of consolidated VIEs totaled $13,870,064 and $11,191,736 , respectively. See Note 9 for further discussion. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
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) | 12,661,287 | 12,000,000 |
Preferred stock, shares outstanding (in shares) | 12,661,287 | 12,000,000 |
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) | 210,872,614 | 155,589,528 |
Common stock, shares outstanding (in shares) | 210,872,614 | 155,589,528 |
Assets of consolidated VIEs | $ 14,691,481 | $ 11,984,374 |
Liabilities of consolidated VIEs | $ 13,870,064 | $ 11,191,736 |
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) | 3,101,683 | 3,000,000 |
Preferred stock, shares outstanding (in shares) | 3,101,683 | 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) | 6,600,000 | 4,140,000 |
Preferred stock, shares issued (in shares) | 3,993,866 | 3,600,000 |
Preferred stock, shares outstanding (in shares) | 3,993,866 | 3,600,000 |
Series D Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, cumulative redeemable dividend rate | 8.00% | 8.00% |
Preferred stock, liquidation preference per share (in dollars per share) | $ 25 | $ 25 |
Preferred stock, shares authorized (in shares) | 8,400,000 | 5,750,000 |
Preferred stock, shares issued (in shares) | 5,565,738 | 5,400,000 |
Preferred stock, shares outstanding (in shares) | 5,565,738 | 5,400,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
INTEREST INCOME: | ||||
Investment securities and other interest earning assets | $ 15,355 | $ 12,128 | $ 30,671 | $ 23,940 |
Total interest income | 167,258 | 107,723 | 315,240 | 216,614 |
INTEREST EXPENSE: | ||||
Repurchase agreements and other interest bearing liabilities | 22,823 | 10,477 | 43,209 | 20,127 |
Total interest expense | 141,567 | 90,223 | 263,344 | 179,363 |
NET INTEREST INCOME | 25,691 | 17,500 | 51,896 | 37,251 |
OTHER INCOME (LOSS): | ||||
Recovery of loan losses | 1,296 | 437 | 2,362 | 395 |
Realized (loss) gain on investment securities and related hedges, net | 0 | (8,847) | 16,801 | (12,270) |
Realized gain on distressed and other residential mortgage loans at carrying value, net | 2,054 | 2,214 | 4,133 | 1,442 |
Net gain (loss) on distressed and other residential mortgage loans at fair value | 12,271 | 97 | 23,281 | (70) |
Unrealized (loss) gain on investment securities and related hedges, net | (15,007) | 12,606 | (29,593) | 24,298 |
Unrealized gain on multi-family loans and debt held in securitization trusts, net | 5,207 | 12,019 | 14,617 | 19,564 |
Loss on extinguishment of debt | 0 | 0 | (2,857) | 0 |
Income from real estate held for sale in consolidated variable interest entities | 0 | 1,253 | 215 | 3,379 |
Other income | 2,740 | 228 | 10,465 | 4,223 |
Total other income | 8,561 | 20,007 | 39,424 | 40,961 |
GENERAL, ADMINISTRATIVE AND OPERATING EXPENSES: | ||||
General and administrative expenses | 9,272 | 5,276 | 17,459 | 9,932 |
Base management and incentive fees | 543 | 809 | 1,266 | 1,642 |
Expenses related to distressed and other residential mortgage loans | 2,579 | 1,811 | 5,831 | 3,414 |
Expenses related to real estate held for sale in consolidated variable interest entities | 0 | 873 | 482 | 2,479 |
Total general, administrative and operating expenses | 12,394 | 8,769 | 25,038 | 17,467 |
INCOME FROM OPERATIONS BEFORE INCOME TAXES | 21,858 | 28,738 | 66,282 | 60,745 |
Income tax benefit | (134) | (13) | (60) | (92) |
NET INCOME | 21,992 | 28,751 | 66,342 | 60,837 |
Net loss (income) attributable to non-controlling interest in consolidated variable interest entities | 743 | 943 | 532 | (1,526) |
NET INCOME ATTRIBUTABLE TO COMPANY | 22,735 | 29,694 | 66,874 | 59,311 |
Preferred stock dividends | (6,257) | (5,925) | (12,182) | (11,850) |
NET INCOME ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS | $ 16,478 | $ 23,769 | $ 54,692 | $ 47,461 |
Basic earnings per common share (in dollars per share) | $ 0.08 | $ 0.21 | $ 0.29 | $ 0.42 |
Diluted earnings per common share (in dollars per share) | $ 0.08 | $ 0.20 | $ 0.29 | $ 0.40 |
Weighted average shares outstanding-basic (in shares) | 200,691 | 115,211 | 187,628 | 113,623 |
Weighted average shares outstanding-diluted (in shares) | 202,398 | 135,164 | 209,011 | 133,470 |
Convertible notes | ||||
INTEREST EXPENSE: | ||||
Interest expense | $ 2,694 | $ 2,652 | $ 5,384 | $ 5,301 |
Subordinated debentures | ||||
INTEREST EXPENSE: | ||||
Subordinated debentures | 734 | 690 | 1,474 | 1,310 |
Securitized debt | ||||
INTEREST EXPENSE: | ||||
Interest expense | 0 | 1,243 | 742 | 2,574 |
Distressed and other residential mortgage loans | ||||
INTEREST INCOME: | ||||
Interest income | 13,598 | 5,104 | 29,489 | 12,645 |
Preferred equity and mezzanine loan investments | ||||
INTEREST INCOME: | ||||
Interest income | 5,148 | 4,862 | 10,155 | 9,308 |
Multi-family loans held in securitization trusts | ||||
INTEREST INCOME: | ||||
Interest income | 133,157 | 85,629 | 244,925 | 170,721 |
Residential collateralized debt obligations | ||||
INTEREST EXPENSE: | ||||
Interest expense | 402 | 475 | 824 | 886 |
Multi-family collateralized debt obligations | ||||
INTEREST EXPENSE: | ||||
Interest expense | $ 114,914 | $ 74,686 | $ 211,711 | $ 149,165 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
NET INCOME ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS | $ 16,478 | $ 23,769 | $ 54,692 | $ 47,461 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Increase (decrease) in fair value of available for sale securities | 20,092 | (6,525) | 46,804 | (31,003) |
Reclassification adjustment for net gain included in net income | 0 | 0 | (13,665) | 0 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | 20,092 | (6,525) | 33,139 | (31,003) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS | $ 36,570 | $ 17,244 | $ 87,831 | $ 16,458 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Preferred Stock | Preferred StockPreferred Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive (Loss) Income | Total Company Stockholders' Equity | Total Company Stockholders' EquityPreferred Stock | Non-Controlling Interest in Consolidated VIE |
Beginning balance at Dec. 31, 2017 | $ 976,001 | $ 1,119 | $ 289,755 | $ 751,155 | $ (75,717) | $ 5,553 | $ 971,865 | $ 4,136 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 60,837 | 59,311 | 59,311 | 1,526 | |||||||
Stock issuance, net | 74,929 | 124 | 74,805 | 74,929 | |||||||
Dividends declared on common stock | (47,285) | (47,285) | (47,285) | ||||||||
Dividends declared on preferred stock | (11,850) | (11,850) | (11,850) | ||||||||
Reclassification adjustment for net gain included in net income | 0 | ||||||||||
Increase in fair value of available for sale securities | (31,003) | (31,003) | (31,003) | ||||||||
Decrease in non-controlling interest related to distributions from and de-consolidation of variable interest entities | (5,428) | (5,428) | |||||||||
Ending balance at Jun. 30, 2018 | 1,016,201 | 1,243 | 289,755 | 825,960 | (75,541) | (25,450) | 1,015,967 | 234 | |||
Beginning balance at Dec. 31, 2017 | 976,001 | 1,119 | 289,755 | 751,155 | (75,717) | 5,553 | 971,865 | 4,136 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Stock issuance, net | $ 16,087 | ||||||||||
Ending balance at Dec. 31, 2018 | 1,180,293 | 1,556 | 289,755 | 1,013,391 | (103,178) | (22,135) | 1,179,389 | 904 | |||
Beginning balance at Mar. 31, 2018 | 950,787 | 1,121 | 289,755 | 751,542 | (74,447) | (18,925) | 949,046 | 1,741 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 28,751 | 29,694 | 29,694 | (943) | |||||||
Stock issuance, net | 74,540 | 122 | 74,418 | 74,540 | |||||||
Dividends declared on common stock | (24,863) | (24,863) | (24,863) | ||||||||
Dividends declared on preferred stock | (5,925) | (5,925) | (5,925) | ||||||||
Reclassification adjustment for net gain included in net income | 0 | ||||||||||
Increase in fair value of available for sale securities | (6,525) | (6,525) | (6,525) | ||||||||
Decrease in non-controlling interest related to distributions from and de-consolidation of variable interest entities | (564) | (564) | |||||||||
Ending balance at Jun. 30, 2018 | 1,016,201 | 1,243 | 289,755 | 825,960 | (75,541) | (25,450) | 1,015,967 | 234 | |||
Beginning balance at Dec. 31, 2018 | 1,180,293 | 1,556 | 289,755 | 1,013,391 | (103,178) | (22,135) | 1,179,389 | 904 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 66,342 | 66,874 | 66,874 | (532) | |||||||
Stock issuance, net | 324,492 | $ 16,087 | 553 | 323,939 | 324,492 | $ 16,087 | |||||
Dividends declared on common stock | (79,721) | (79,721) | (79,721) | ||||||||
Dividends declared on preferred stock | (12,182) | (12,182) | (12,182) | ||||||||
Reclassification adjustment for net gain included in net income | (13,665) | (13,665) | (13,665) | ||||||||
Increase in fair value of available for sale securities | 46,804 | 46,804 | 46,804 | ||||||||
Decrease in non-controlling interest related to distributions from and de-consolidation of variable interest entities | (768) | (768) | |||||||||
Ending balance at Jun. 30, 2019 | 1,527,682 | 2,109 | 305,842 | 1,337,330 | (128,207) | 11,004 | 1,528,078 | (396) | |||
Beginning balance at Mar. 31, 2019 | 1,379,452 | 1,878 | 289,755 | 1,199,090 | (102,530) | (9,088) | 1,379,105 | 347 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 21,992 | 22,735 | 22,735 | (743) | |||||||
Stock issuance, net | 138,471 | $ 16,087 | 231 | $ 16,087 | 138,240 | 138,471 | $ 16,087 | ||||
Dividends declared on common stock | (42,155) | (42,155) | (42,155) | ||||||||
Dividends declared on preferred stock | (6,257) | (6,257) | (6,257) | ||||||||
Reclassification adjustment for net gain included in net income | 0 | ||||||||||
Increase in fair value of available for sale securities | 20,092 | 20,092 | 20,092 | ||||||||
Ending balance at Jun. 30, 2019 | $ 1,527,682 | $ 2,109 | $ 305,842 | $ 1,337,330 | $ (128,207) | $ 11,004 | $ 1,528,078 | $ (396) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flows from Operating Activities: | ||
Net income | $ 66,342 | $ 60,837 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net accretion | (21,566) | (11,588) |
Realized (gain) loss on investment securities and related hedges, net | (16,801) | 12,270 |
Net gain on distressed and other residential mortgage | (27,414) | (1,372) |
Unrealized loss (gain) on investment securities and related hedges, net | 29,593 | (24,298) |
Gain on sale of real estate held for sale in consolidated variable interest entities | (1,580) | (2,328) |
Impairment of real estate under development in consolidated variable interest entities | 1,660 | 2,091 |
Loss on extinguishment of debt | 2,857 | 0 |
Unrealized gain on loans and debt held in multi-family securitization trusts, net | (14,617) | (19,564) |
Recovery of loan losses | (2,362) | (395) |
Income from unconsolidated entity, preferred equity and mezzanine loan investments | (22,292) | (13,526) |
Distributions of income from unconsolidated entity, preferred equity and mezzanine loan investments | 12,706 | 8,340 |
Amortization of stock based compensation, net | 2,792 | 1,211 |
Changes in operating assets and liabilities: | ||
Receivables and other assets | (21,763) | 610 |
Accrued expenses and other liabilities | 19,410 | (1,403) |
Net cash provided by operating activities | 6,965 | 10,885 |
Cash Flows from Investing Activities: | ||
Net proceeds from sale of real estate held for sale in consolidated variable interest entities | 3,587 | 33,192 |
Proceeds from sales of investment securities | 56,769 | 26,899 |
Purchases of investment securities | (321,134) | (60,321) |
Purchases of other assets | (923) | (35) |
Capital expenditures on real estate held for sale in consolidated variable interest entities | (128) | (255) |
Funding of preferred equity, equity and mezzanine loan investments | (130,004) | (45,532) |
Principal repayments received on preferred equity and mezzanine loan investments | 20,416 | 9,122 |
Return of capital from unconsolidated entity investments | 639 | 1,246 |
(Net payments made on) received from other derivative instruments settled during the period | (33,377) | 13,662 |
Principal paydowns on investment securities - available for sale | 84,418 | 120,508 |
Proceeds from sale of real estate owned | 1,266 | 2,136 |
Net cash (used in) provided by investing activities | (549,904) | 132,330 |
Cash Flows from Financing Activities: | ||
Net proceeds from (net payments made on) repurchase agreements | 471,998 | (54,120) |
Common stock issuance, net | 321,655 | 73,831 |
Preferred stock issuance, net | 16,101 | 0 |
Payments made on mortgages and notes payable in consolidated variable interest entities | (36) | (25,673) |
Proceeds from mortgages and notes payable in consolidated variable interest entities | 0 | 1,058 |
Payments of secured debt | (45,557) | (21,351) |
Net cash provided by (used in) financing activities | 569,744 | (158,998) |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 26,805 | (15,783) |
Cash, Cash Equivalents and Restricted Cash - Beginning of Period | 109,145 | 106,195 |
Cash, Cash Equivalents and Restricted Cash - End of Period | 135,950 | 90,412 |
Supplemental Disclosure: | ||
Cash paid for interest | 294,817 | 204,174 |
Cash paid for income taxes | 21 | 1,342 |
Non-Cash Investment Activities: | ||
Sales of investment securities not yet settled | 0 | 0 |
Purchase of investment securities not yet settled | 3,132 | 0 |
Transfer from residential loans to real estate owned | 2,368 | 3,558 |
Non-Cash Financing Activities: | ||
Mortgages and notes payable assumed by purchaser of real estate held for sale in consolidated variable entities | 27,260 | 0 |
Cash, Cash Equivalents and Restricted Cash Reconciliation: | ||
Total cash, cash equivalents, and restricted cash | 109,145 | 106,195 |
Multi-family collateralized debt obligations | ||
Non-Cash Investment Activities: | ||
Consolidation of multi-family collateralized debt obligations | 2,324,639 | 0 |
Multi-family loans held in securitization trust | ||
Non-Cash Investment Activities: | ||
Consolidation of multi-family loans held in securitization trusts | 2,426,210 | 0 |
Common Stock | ||
Cash Flows from Financing Activities: | ||
Dividends paid on stock | (68,684) | (44,805) |
Preferred Stock | ||
Cash Flows from Financing Activities: | ||
Dividends paid on stock | (11,850) | (11,910) |
Distressed residential mortgage loans held in securitization trusts, net | ||
Cash Flows from Investing Activities: | ||
Principal repayments received on loans | 144,228 | 57,903 |
Multi-family collateralized debt obligations | ||
Cash Flows from Investing Activities: | ||
Principal repayments received on loans | 106,363 | 67,880 |
Distressed residential mortgage loans | ||
Cash Flows from Investing Activities: | ||
Purchases of residential mortgage loans and distressed residential mortgage loans | (380,454) | (94,075) |
Multi-family loans held in securitization trust | ||
Cash Flows from Investing Activities: | ||
Purchases of residential mortgage loans and distressed residential mortgage loans | (101,570) | 0 |
Residential collateralized debt obligations | ||
Cash Flows from Financing Activities: | ||
Payments of secured debt | (7,792) | (8,142) |
Collateralized debt obligation | ||
Cash Flows from Financing Activities: | ||
Payments of secured debt | $ (106,091) | $ (67,886) |
Organization
Organization | 6 Months Ended |
Jun. 30, 2019 | |
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. Our objective is to deliver long-term stable distributions to our stockholders over changing economic conditions through a combination of net interest margin and net realized capital gains from a diversified investment portfolio. Our portfolio includes (i) structured multi-family property investments such as multi-family CMBS and preferred equity in, and mezzanine loans to, owners of multi-family properties, (ii) residential mortgage loans, including distressed residential mortgage loans, non-QM loans, second mortgages, and other residential mortgage loans, (iii) non-Agency RMBS, (iv) Agency RMBS and (v) certain mortgage-, residential housing- and other credit-related 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 U.S. federal income tax purposes. As such, the Company will generally not be subject to federal income taxes on that portion of its income that is distributed to stockholders if it distributes at least 90% of its annual 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 | 6 Months Ended |
Jun. 30, 2019 | |
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 mortgage-backed securities comprised of adjustable-rate, hybrid adjustable-rate, fixed-rate, interest only and inverse interest only and principal only securities; “Agency RMBS” refers to RMBS representing interests in or obligations backed by pools of mortgage loans issued or guaranteed by a government sponsored enterprise (“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 that are not guaranteed by any agency of the U.S. Government or any federally chartered corporation; “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; “IO RMBS” refers to RMBS comprised of IOs; “Agency IOs” refers to Agency RMBS comprised of IO RMBS; “POs” refers to mortgage-backed securities that represent the right to the principal component of the cash flow from a pool of mortgage loans; “ARMs” refers to adjustable-rate residential mortgage loans; “prime ARM loans” and “residential securitized loans” each refer to prime credit quality residential ARMs held in our 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; “ABS” refers to debt and/or equity tranches of securitizations backed by various asset classes including, but not limited to, automobiles, aircraft, credit cards, equipment, franchises, recreational vehicles and student loans; “CMBS” refers to commercial mortgage-backed securities comprised of commercial mortgage pass-through securities, as well as PO, IO, or mezzanine 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; “non-QM loans” refers to residential mortgage loans that are not deemed "qualified mortgage," or "QM," loans under the rules of the Consumer Financial Protection Bureau; and “second mortgages” refers to liens on residential properties that are subordinate to more senior mortgages or loans. Basis of Presentation – The accompanying condensed consolidated balance sheet as of December 31, 2018 has been derived from audited financial statements. The accompanying condensed consolidated balance sheet as of June 30, 2019 , the accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2019 and 2018 , the accompanying condensed consolidated statements of comprehensive income for the three and six months ended June 30, 2019 and 2018 , the accompanying condensed consolidated statements of changes in stockholders’ equity for the three and six months ended June 30, 2019 and 2018 and the accompanying condensed consolidated statements of cash flows for the six months ended June 30, 2019 and 2018 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, 2018 , as filed with the U.S. Securities and Exchange Commission (“SEC”). Accordingly, significant accounting policies and other disclosures have been omitted since such items are disclosed in Note 2 in the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2018 . Provided below is a summary of additional accounting policies that are significant to, or newly adopted by, the Company for the three and six months ended June 30, 2019 . The results of operations for the three and six months ended June 30, 2019 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 fair valuation of its distressed and other residential mortgage loans, multi-family loans held in securitization trusts, multi-family CDOs and CMBS held in securitization trusts, 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 those conditions 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. Adoption of Accounting Standards Codification ("ASC") Topic 842, Leases ("ASC 842") On January 1, 2019, the Company adopted ASC 842 using the modified retrospective transition method applied to all leases that were not completed as of January 1, 2019. Results for reporting periods beginning on or after January 1, 2019 are presented under ASC 842, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. We elected the practical expedients allowed for under ASC 842 that exempt an entity from reassessing whether existing contracts contain leases, reassessing the lease classification of existing leases, and reassessing the initial direct costs for existing leases. As such, there was no cumulative impact on opening accumulated deficit as of January 1, 2019 of adopting ASC 842 under the modified retrospective transition method. Operating lease right of use assets of $9.8 million and operating lease liabilities of $10.1 million are included in receivables and other assets and accrued expenses and other liabilities in the condensed consolidated balance sheets, respectively, as of June 30, 2019 . The adoption of ASC 842 did not have a material effect on our results of operations for the three and six months ended June 30, 2019 . Summary of Recent Accounting Pronouncements 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 purchased financial assets with credit deterioration and available-for-sale debt securities, which will require the recognition of credit losses through a valuation allowance when fair value is less than amortized cost. The amendments are effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted beginning in 2019. In May 2019, the FASB issued ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief ("ASU 2019-05"). The amendments allow an entity to make an irrevocable one-time election to measure financial assets accounted for under ASC 326-20, Financial Instruments—Credit Losses— Measured at Amortized Cost, using the fair value option upon adoption of ASU 2016-13. For the Company, the amendments are effective upon adoption of ASU 2016-13. The amendments in ASU 2019-05 should be applied on a modified retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings balance as of the date that an entity adopted the amendments in ASU 2016-13. The Company is currently assessing the impact of this guidance in conjunction with ASU 2016-13 as the ASUs will affect the Company's accounting for distressed and other residential mortgage loans, net and preferred equity and mezzanine loan investments that are accounted for as loans. It is the Company's intention to elect fair value option for impacted assets but the Company will continue to evaluate the new standards and any changes in our business or additional amendments to these standards could change our intention to elect fair value option. Fair Value Measurement (Topic 820) In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to Disclosure Requirements for Fair Value Measurement ("ASU 2018-13") . These amendments add, modify, or remove disclosure requirements regarding the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, narrative descriptions of measurement uncertainty, and the valuation processes for Level 3 fair value measurements. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted upon issuance of this update. An entity is permitted to early adopt any removed or modified disclosures upon issuance of ASU 2018-13 and delay adoption of the additional disclosures until their effective date. The Company anticipates the implementation of this guidance as of the effective date will result in additional and modified disclosures with respect to its Level 3 fair value measurements. |
Investment Securities Available
Investment Securities Available for Sale | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and December 31, 2018 (dollar amounts in thousands): June 30, 2019 December 31, 2018 Amortized Cost Unrealized Fair Value Amortized Cost Unrealized Fair Value Gains Losses Gains Losses Agency RMBS Agency ARMs Freddie Mac $ 24,618 $ — $ (733 ) $ 23,885 $ 26,338 $ — $ (1,052 ) $ 25,286 Fannie Mae 36,379 20 (895 ) 35,504 43,984 8 (1,384 ) 42,608 Ginnie Mae 3,233 — (103 ) 3,130 3,627 — (127 ) 3,500 Total Agency ARMs (1) 64,230 20 (1,731 ) 62,519 73,949 8 (2,563 ) 71,394 Agency Fixed- Rate Freddie Mac 82,165 650 (502 ) 82,313 87,018 — (2,526 ) 84,492 Fannie Mae 856,313 1,080 (8,025 ) 849,368 915,039 — (33,195 ) 881,844 Total Agency Fixed-Rate 938,478 1,730 (8,527 ) 931,681 1,002,057 — (35,721 ) 966,336 Total Agency RMBS 1,002,708 1,750 (10,258 ) 994,200 1,076,006 8 (38,284 ) 1,037,730 Non-Agency RMBS (1)(2) 428,443 4,719 (322 ) 432,840 215,337 166 (1,466 ) 214,037 CMBS (1) (3) 276,947 15,300 (157 ) 292,090 243,046 17,815 (376 ) 260,485 ABS 24,768 — (29 ) 24,739 — — — — Total investment securities available for sale $ 1,732,866 $ 21,769 $ (10,766 ) $ 1,743,869 $ 1,534,389 $ 17,989 $ (40,126 ) $ 1,512,252 (1) For the Company's Agency ARMs, non-Agency RMBS, and CMBS securities with stated reset periods, the weighted average reset periods are 28 months , five months , and one month , respectively. (2) Includes $3.1 million in non-Agency RMBS purchased not yet settled, which are included in accrued expenses and other liabilities on the Company's condensed consolidated balance sheet. (3) Included in CMBS is $52.7 million of first loss POs and certain IOs held in securitization trusts as of December 31, 2018 . Realized Gain or Loss Activity The Company did not sell investment securities available for sale during the three months ended June 30, 2019 . During the six months ended June 30, 2019 , the Company received total proceeds of approximately $56.8 million from the sale of investment securities available for sale, realizing a net gain of approximately $16.8 million . During the three and six months ended June 30, 2018 , the Company received total proceeds of approximately $16.8 million and $26.9 million , respectively, from the sale of investment securities available for sale, realizing a net loss of approximately $8.8 million and $12.3 million , respectively. Weighted Average Life Actual maturities of our available for sale securities are generally shorter than stated contractual maturities (with maturities up to 40 years ), as they are affected by periodic payments and prepayments of principal on the underlying mortgages. As of June 30, 2019 and December 31, 2018 , based on management’s estimates using the three month historical constant prepayment rate (“CPR”), the weighted average life of the Company’s available for sale securities portfolio was approximately 10.2 years and 5.7 years , respectively. The following table sets forth the weighted average lives of our investment securities available for sale as of June 30, 2019 and December 31, 2018 (dollar amounts in thousands): Weighted Average Life June 30, 2019 December 31, 2018 0 to 5 years $ 670,546 $ 456,947 Over 5 to 10 years 733,319 1,043,369 10+ years 340,004 11,936 Total $ 1,743,869 $ 1,512,252 Unrealized Losses in Other Comprehensive Income The following tables present the Company's investment securities available for sale in an unrealized loss position reported through other comprehensive income, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2019 and December 31, 2018 (dollar amounts in thousands): June 30, 2019 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 $ — $ — $ 617,454 $ (10,258 ) $ 617,454 $ (10,258 ) Non-Agency RMBS 36,903 (309 ) 133 (13 ) 37,036 (322 ) CMBS 31,310 (157 ) — — 31,310 (157 ) ABS 24,739 (29 ) — — 24,739 (29 ) Total investment securities available for sale $ 92,952 $ (495 ) $ 617,587 $ (10,271 ) $ 710,539 $ (10,766 ) At June 30, 2019 , 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 $10.3 million at June 30, 2019 . Agency RMBS are issued by 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, June 30, 2019 , any unrealized losses on its Agency RMBS were temporary. Gross unrealized losses on the Company's non-Agency RMBS and CMBS were $0.3 million and $0.2 million at June 30, 2019 , respectively. Credit risk associated with non-Agency RMBS and CMBS is regularly assessed as new information regarding the underlying collateral becomes available and based on updated estimates of cash flows generated by the underlying collateral. Based upon the most recent evaluation, the Company does not consider these unrealized losses to be indicative of other-than-temporary impairment and does not believe that these unrealized losses are credit related, but are rather a reflection of current market yields and/or marketplace bid-ask spreads. December 31, 2018 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 $ 310,783 $ (8,037 ) $ 726,028 $ (30,247 ) $ 1,036,811 $ (38,284 ) Non-Agency RMBS 187,395 (1,451 ) 158 (15 ) 187,553 (1,466 ) CMBS 75,292 (376 ) — — 75,292 (376 ) Total investment securities available for sale $ 573,470 $ (9,864 ) $ 726,186 $ (30,262 ) $ 1,299,656 $ (40,126 ) Other than Temporary Impairment For the three and six months ended June 30, 2019 and 2018 , the Company did not recognize other-than-temporary impairment through earnings. |
Distressed and Other Residentia
Distressed and Other Residential Mortgage Loans, At Fair Value | 6 Months Ended |
Jun. 30, 2019 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Distressed and Other Residential Mortgage Loans, at Fair Value | Distressed and Other Residential Mortgage Loans, At Fair Value Certain of the Company’s acquired residential mortgage loans, including distressed residential mortgage loans, non-QM loans and second 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. Subsequent changes in fair value are reported in current period earnings and presented in net gain (loss) on distressed and other residential mortgage loans at fair value on the Company’s condensed consolidated statements of operations. The Company’s distressed and other residential mortgage loans at fair value consist of the following as of June 30, 2019 and December 31, 2018 , respectively (dollar amounts in thousands): Principal Premium/(Discount) Unrealized Gains/(Losses) Carrying Value June 30, 2019 $ 1,110,163 $ (70,026 ) $ 21,817 $ 1,061,954 December 31, 2018 788,372 (54,905 ) 4,056 737,523 The following table presents the components of net gain (loss) on distressed and other residential mortgage loans at fair value for the three and six months ended June 30, 2019 and 2018 , respectively (dollar amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net realized gain on payoff and sale of loans $ 2,394 $ 330 $ 5,519 $ 369 Net unrealized gains (losses) 9,877 (233 ) 17,762 (439 ) The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of distressed and other residential mortgage loans at fair value as of June 30, 2019 and December 31, 2018 , respectively, are as follows: June 30, 2019 December 31, 2018 California 23.7 % 27.9 % Florida 9.8 % 9.0 % Texas 5.7 % 4.2 % New York 5.6 % 5.1 % The following table presents the fair value and aggregate unpaid principal balance of the Company's distressed and other residential mortgage loans at fair value greater than 90 days past due and in non-accrual status as of June 30, 2019 and December 31, 2018 , respectively (dollar amounts in thousands): Fair Value Unpaid Principal Balance June 30, 2019 $ 58,628 $ 73,120 December 31, 2018 60,117 75,167 Distressed and other residential mortgage loans with a fair value of approximately $806.6 million and $626.2 million at June 30, 2019 and December 31, 2018 , respectively, are pledged as collateral for master repurchase agreements ( see Note 12 ). |
Distressed and Other Resident_2
Distressed and Other Residential Mortgage Loans, Net | 6 Months Ended |
Jun. 30, 2019 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Distressed and Other Residential Mortgage Loans, Net | Distressed and Other Residential Mortgage Loans, Net Distressed Residential Mortgage Loans, Net As of June 30, 2019 and December 31, 2018 , the carrying value of the Company’s distressed residential mortgage loans accounted for under ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality ("ASC 310-30") amounts to approximately $169.3 million and $228.5 million , respectively. The Company did not purchase loans accounted for under ASC 310-30 during the six months ended June 30, 2019 and 2018 , respectively. The following table details activity in accretable yield for the distressed residential mortgage loans, net for the six months ended June 30, 2019 and 2018 , respectively (dollar amounts in thousands): June 30, 2019 June 30, 2018 Balance at beginning of period $ 195,560 $ 303,949 Additions 2,369 3,314 Disposals (45,004 ) (37,665 ) Accretion (2,370 ) (8,074 ) Balance at end of period (1) $ 150,555 $ 261,524 (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 six month periods ended June 30, 2019 and 2018 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, net as of June 30, 2019 and December 31, 2018 , respectively, are as follows: June 30, 2019 December 31, 2018 North Carolina 10.1 % 9.0 % Florida 9.9 % 10.4 % Georgia 7.0 % 7.2 % South Carolina 5.6 % 5.6 % Virginia 5.6 % 5.3 % Texas 5.5 % 4.9 % New York 5.4 % 5.4 % Ohio 5.2 % 5.0 % The Company had no distressed residential mortgage loans held in securitization trusts pledged as collateral for securitized debt as of June 30, 2019 . The Company's distressed residential mortgage loans held in securitization trusts with a carrying value of approximately $88.1 million at December 31, 2018 were pledged as collateral for certain of the Securitized Debt issued by the Company ( see Note 9 ). In addition, distressed residential mortgage loans with a carrying value of approximately $85.1 million and $128.1 million at June 30, 2019 and December 31, 2018 , respectively, are pledged as collateral for a master repurchase agreement ( see Note 12 ). Residential Mortgage Loans Held in Securitization Trusts, Net Residential mortgage loans held in securitization trusts, net are comprised of certain ARMs transferred to Consolidated VIEs that have been securitized into sequentially rated classes of beneficial interests. Residential mortgage loans held in securitization trusts, net consist of the following as of June 30, 2019 and December 31, 2018 , respectively (dollar amounts in thousands): June 30, 2019 December 31, 2018 Unpaid principal balance $ 51,986 $ 60,171 Deferred origination costs – net 334 383 Reserve for loan losses (3,521 ) (3,759 ) Total $ 48,799 $ 56,795 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, net for the six months ended June 30, 2019 and 2018 , respectively (dollar amounts in thousands): Six Months Ended June 30, 2019 2018 Balance at beginning of period $ 3,759 $ 4,191 Provision for (recovery of) loan losses 38 (110 ) Transfer to real estate owned (167 ) — Charge-offs (109 ) (237 ) Balance at the end of period $ 3,521 $ 3,844 On an ongoing basis, the Company evaluates the adequacy of its allowance for loan losses. The Company’s allowance for loan losses as of June 30, 2019 was $3.5 million , representing 677 basis points of the outstanding principal balance of residential mortgage loans held in securitization trusts, as compared to 625 basis points as of December 31, 2018 . 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. All of the Company’s residential mortgage loans held in securitization trusts and real estate owned are pledged as collateral for the residential collateralized debt obligations (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 $4.8 million as of June 30, 2019 and December 31, 2018 . Delinquency Status of Our Residential Mortgage Loans Held in Securitization Trusts As of June 30, 2019 , we had 19 delinquent loans with an aggregate principal amount outstanding of approximately $10.6 million categorized as residential mortgage loans held in securitization trusts, net, of which $6.5 million , or 61% , 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 as of June 30, 2019 (dollar amounts in thousands): June 30, 2019 Days Late Number of Delinquent Loans Total Unpaid Principal % of Loan Portfolio 30-60 1 $ 264 0.50 % 90 + 18 $ 10,384 19.85 % Real estate owned through foreclosure 1 $ 360 0.69 % As of December 31, 2018 , we had 19 delinquent loans with an aggregate principal amount outstanding of approximately $10.9 million categorized as residential mortgage loans held in securitization trusts, net, of which $6.6 million , or 61% , 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 as of December 31, 2018 (dollar amounts in thousands): December 31, 2018 Days Late Number of Delinquent Loans Total Unpaid Principal % of Loan Portfolio 90 + 19 $ 10,926 18.16 % The geographic concentrations of credit risk exceeding 5% of the total loan balances in our residential mortgage loans held in securitization trusts as of June 30, 2019 and December 31, 2018 are as follows: June 30, 2019 December 31, 2018 New York 34.7 % 33.9 % Massachusetts 17.6 % 20.0 % New Jersey 15.1 % 14.5 % Florida 11.2 % 9.9 % Maryland 5.4 % 5.3 % |
Consolidated K-Series
Consolidated K-Series | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Consolidated K-Series | Consolidated K-Series The Company's investments in first loss POs, certain IOs and mezzanine securities issued by certain Freddie Mac-sponsored multi-family loan K-series securitizations that the Company consolidates in its financial statements in accordance with GAAP represent the "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 that we own with an aggregate net carrying value of $801.2 million and $657.6 million at June 30, 2019 and December 31, 2018 , respectively ( see Note 9 ). The Consolidated K-Series is comprised of eleven and nine Freddie Mac-sponsored multi-family loan K-Series securitizations as of June 30, 2019 and December 31, 2018 , respectively. The condensed consolidated balance sheets of the Consolidated K-Series at June 30, 2019 and December 31, 2018 , respectively, are as follows (dollar amounts in thousands): Balance Sheets June 30, 2019 December 31, 2018 Assets Multi-family loans held in securitization trusts, at fair value $ 14,573,925 $ 11,679,847 Receivables 48,958 41,850 Total Assets $ 14,622,883 $ 11,721,697 Liabilities and Equity Multi-family CDOs, at fair value $ 13,772,726 $ 11,022,248 Accrued expenses 47,921 41,102 Total Liabilities 13,820,647 11,063,350 Equity 802,236 658,347 Total Liabilities and Equity $ 14,622,883 $ 11,721,697 The multi-family loans held in securitization trusts had unpaid aggregate principal balances of approximately $13.7 billion and $11.5 billion at June 30, 2019 and December 31, 2018 , respectively. The multi-family CDOs (the "Multi-Family CDOs") had aggregate unpaid principal balances of approximately $13.7 billion and $11.5 billion at June 30, 2019 and December 31, 2018 , respectively. As of June 30, 2019 and December 31, 2018 , the current weighted average interest rate on these Multi-Family CDOs was 4.14% and 3.96% , 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 the first loss POs, IOs and mezzanine securities owned by the Company). 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 ( see Note 16 ). The condensed consolidated statements of operations of the Consolidated K-Series for the three and six months ended June 30, 2019 and 2018 , respectively, are as follows (dollar amounts in thousands): Three Months Ended Six Months Ended Statements of Operations 2019 2018 2019 2018 Interest income $ 133,157 $ 85,629 $ 244,925 $ 170,721 Interest expense 114,914 74,686 211,711 149,165 Net interest income 18,243 10,943 33,214 21,556 Unrealized gain on multi-family loans and debt held in securitization trusts, net 5,207 12,019 14,617 19,564 Net income $ 23,450 $ 22,962 $ 47,831 $ 41,120 The geographic concentrations of credit risk exceeding 5% of the total loan balances related to multi-family loans held in securitization trusts as of June 30, 2019 and our CMBS investments included in investment securities available for sale, held in securitization trusts, and multi-family loans held in securitization trusts as of December 31, 2018 are as follows: June 30, 2019 December 31, 2018 California 16.1 % 14.8 % Texas 12.4 % 13.0 % Maryland 5.8 % 5.0 % New York 5.1 % 6.4 % Florida 5.0 % 4.5 % |
Investments in Unconsolidated E
Investments in Unconsolidated Entities | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities The Company's investments in unconsolidated entities accounted for under the equity method are comprised of preferred equity ownership interests in entities that invest in multi-family properties where the risks and payment characteristics are equivalent to an equity investment and consist of the following as of June 30, 2019 and December 31, 2018 (dollar amounts in thousands): June 30, 2019 December 31, 2018 Investment Name Ownership Interest Carrying Amount Ownership Interest Carrying Amount BBA-EP320 II, L.L.C., BBA-Ten10 II, L.L.C., and Lexington on the Green Apartments, L.L.C. (collectively) 45% $ 9,503 45% $ 8,948 Somerset Deerfield Investor, LLC 45% 16,796 45% 16,266 RS SWD Owner, LLC, RS SWD Mitchell Owner, LLC, RS SWD IF Owner, LLC, RS SWD Mullis Owner, LLC, RS SWD JH Mullis Owner, LLC and RS SWD Saltzman Owner, LLC (collectively) 43% 4,792 43% 4,714 Audubon Mezzanine Holdings, L.L.C. (Series A) 57% 10,795 57% 10,544 EP 320 Growth Fund, L.L.C. (Series A) and Turnbury Park Apartments - BC, L.L.C. (Series A) (collectively) 46% 6,687 — — Walnut Creek Properties Holdings, L.L.C. 36% 8,093 — — Towers Property Holdings, LLC 37% 10,885 — — Mansions Property Holdings, LLC 34% 10,489 — — Total - Equity Method $ 78,040 $ 40,472 The Company's investments in unconsolidated entities accounted for under the equity method using the fair value option consist of the following as of June 30, 2019 and December 31, 2018 (dollar amounts in thousands): June 30, 2019 December 31, 2018 Investment Name Ownership Interest Carrying Amount Ownership Interest Carrying Amount Joint venture equity investments in multi-family properties Evergreens JV Holdings, LLC 85% $ 12,500 85% $ 8,200 The Preserve at Port Royal Venture, LLC 77% 14,260 77% 13,840 Equity investments in entities that invest in residential properties and loans Morrocroft Neighborhood Stabilization Fund II, LP 11% 11,348 11% 10,954 Headlands Asset Management Fund III (Cayman), LP (Headlands Flagship Opportunity Fund Series I) 49% 50,000 — — Total - Fair Value Option $ 88,108 $ 32,994 The following table presents income from investments in unconsolidated entities for the three and six months ended June 30, 2019 and 2018 , respectively (dollar amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, Investment Name 2019 2018 2019 2018 BBA-EP320 II, L.L.C., BBA-Ten10 II, L.L.C., and Lexington on the Green Apartments, L.L.C. (collectively) $ 287 $ 259 $ 562 $ 512 Somerset Deerfield Investor, LLC 492 — 970 — RS SWD Owner, LLC, RS SWD Mitchell Owner, LLC, RS SWD IF Owner, LLC, RS SWD Mullis Owner, LLC, RS SWD JH Mullis Owner, LLC and RS SWD Saltzman Owner, LLC (collectively) 134 — 265 — Audubon Mezzanine Holdings, L.L.C. (Series A) 304 — 601 — EP 320 Growth Fund, L.L.C. (Series A) and Turnbury Park Apartments - BC, L.L.C. (Series A) (collectively) 188 — 353 — Walnut Creek Properties Holdings, L.L.C. 231 — 328 — Towers Property Holdings, LLC 10 — 10 — Mansions Property Holdings, LLC 10 — 10 — Evergreens JV Holdings, LLC 1,289 171 4,513 365 The Preserve at Port Royal Venture, LLC 409 419 847 902 WR Savannah Holdings, LLC — 1,269 — 1,629 Morrocroft Neighborhood Stabilization Fund II, LP 163 398 395 680 |
Preferred Equity and Mezzanine
Preferred Equity and Mezzanine Loan Investments | 6 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | |
Preferred Equity and Mezzanine Loan Investments | Preferred Equity and Mezzanine Loan Investments P referred equity and mezzanine loan investments consist of the following as of June 30, 2019 and December 31, 2018 (dollar amounts in thousands): June 30, 2019 December 31, 2018 Investment amount $ 192,814 $ 166,789 Deferred loan fees, net (1,427 ) (1,234 ) Total $ 191,387 $ 165,555 There were no delinquent preferred equity or mezzanine loan investments as of June 30, 2019 and December 31, 2018 . The geographic concentrations of credit risk exceeding 5% of the total preferred equity and mezzanine loan investment amounts as of June 30, 2019 and December 31, 2018 are as follows: June 30, 2019 December 31, 2018 Texas 17.0 % 16.6 % Tennessee 11.3 % 6.8 % Georgia 10.8 % 15.3 % Alabama 10.3 % 8.6 % Florida 10.0 % 11.3 % South Carolina 8.4 % 9.5 % Virginia 7.9 % 9.1 % |
Use of Special Purpose Entities
Use of Special Purpose Entities (SPE) and Variable Interest Entities (VIE) | 6 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | |
Use of Special Purpose Entities (SPE) and Variable Interest Entities (VIE) | Use of Special Purpose Entities (SPE) and Variable Interest Entities (VIE) 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 re-securitization or 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, Consolidation , and if so, whether the Company is the primary beneficiary requiring consolidation. As of June 30, 2019 , the Company evaluated its Residential CDOs and concluded that the entities created to facilitate each of the financing transactions are VIEs and that the Company is the primary beneficiary of these VIEs. Accordingly, the Company continues to consolidate the Residential CDOs as of June 30, 2019 . As of December 31, 2018, the Company evaluated the following re-securitization and 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 were VIEs and that the Company was the primary beneficiary of these VIEs. Accordingly, the Company consolidated the Financing VIEs as of December 31, 2018 . On March 14, 2019, the Company exercised its right to an optional redemption of its multi-family CMBS re-securitization with an outstanding principal balance of $33.2 million resulting in a loss on extinguishment of debt of $2.9 million . Additionally, on March 25, 2019, the Company repaid outstanding notes from its April 2016 distressed residential mortgage loan securitization with an outstanding principal balance of $6.5 million . Due to the redemptions, the multi-family CMBS held by the re-securitization trust and residential mortgage loans held in securitization trust were returned to the Company. The Company invests in multi-family CMBS consisting of POs that represent the first loss position of the Freddie Mac-sponsored multi-family K-series securitizations from which they were issued, and certain IOs and mezzanine CMBS securities issued from the securitization. The Company has evaluated these CMBS investments to determine whether they are VIEs and if so, whether the Company is the primary beneficiary requiring consolidation. The Company has determined that eleven and nine Freddie Mac-sponsored multi-family K-Series securitization trusts are VIEs as of June 30, 2019 and December 31, 2018 , 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 6 ). Of the multi-family CMBS investments owned by the Company that are included in the Consolidated K-Series, eleven and eight of these investments are not included as collateral to any Financing VIE as of June 30, 2019 and December 31, 2018 , 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. The Company owns 100% of RB Development Holding Company, LLC ("RBDHC"). RBDHC owns 50% of Kiawah River View Investors LLC ("KRVI"), a limited liability company that owns developed land and residential homes under development in Kiawah Island, SC, for which RiverBanc LLC ("RiverBanc", a wholly-owned subsidiary of the Company) 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. Real estate under development in KRVI as of June 30, 2019 and December 31, 2018 of $16.7 million and $22.0 million , respectively, is included in receivables and other assets on the condensed consolidated balance sheets. In March 2017, the Company reconsidered its evaluation of its variable interests in 200 RHC Hoover, LLC ("Riverchase Landing") and The Clusters, LLC ("The Clusters"), two VIEs that each owned a multi-family apartment community and in each of which the Company held 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 and consolidated them in its condensed consolidated financial statements. In March 2018, Riverchase Landing completed the sale of its multi-family apartment community and redeemed the Company's preferred equity investment. Also, in February 2019, The Clusters completed the sale of its multi-family apartment community and redeemed the Company's preferred equity investment. The Company de-consolidated Riverchase Landing and The Clusters as of the date of each property's sale. Prior to the properties' sale, the Company did not have any claims to the assets or obligations for the liabilities of Riverchase Landing and The Clusters. The following table presents a summary of the assets and liabilities of the Residential CDOs, the Consolidated K-Series, and KRVI of as of June 30, 2019 . Intercompany balances have been eliminated for purposes of this presentation. Financing VIE Other VIEs Residential Mortgage Loan Securitization Consolidated K-Series Other Total Cash and cash equivalents $ — $ — $ 1,513 $ 1,513 Residential mortgage loans held in securitization trusts, net 48,799 — — 48,799 Multi-family loans held in securitization trusts, at fair value — 14,573,925 — 14,573,925 Receivables and other assets 1,302 48,958 16,984 67,244 Total assets $ 50,101 $ 14,622,883 $ 18,497 $ 14,691,481 Residential collateralized debt obligations $ 45,280 $ — $ — $ 45,280 Multi-family collateralized debt obligations, at fair value — 13,772,726 — 13,772,726 Mortgages and notes payable in consolidated variable interest entities — — 3,986 3,986 Accrued expenses and other liabilities 40 47,921 111 48,072 Total liabilities $ 45,320 $ 13,820,647 $ 4,097 $ 13,870,064 The following table presents a summary of the assets and liabilities of the Financing VIEs, the Consolidated K-Series, KRVI, and The Clusters as of December 31, 2018 . Financing VIEs Other VIEs Multi-family CMBS Re- securitization (1) Distressed Residential Mortgage Loan Securitization (2) Residential Mortgage Loan Securitization Consolidated K-Series (3) Other Total Cash and cash equivalents $ — $ — $ — $ — $ 708 $ 708 Investment securities available for sale, at fair value held in securitization trusts 52,700 — — — — 52,700 Residential mortgage loans held in securitization trusts, net — — 56,795 — — 56,795 Distressed residential mortgage loans held in securitization trusts, net — 88,096 — — — 88,096 Multi-family loans held in securitization trusts, at fair value 1,107,071 — — 10,572,776 — 11,679,847 Real estate held for sale in consolidated variable interest entities — — — — 29,704 29,704 Receivables and other assets 4,243 10,287 1,061 37,679 23,254 76,524 Total assets $ 1,164,014 $ 98,383 $ 57,856 $ 10,610,455 $ 53,666 $ 11,984,374 Residential collateralized debt obligations $ — $ — $ 53,040 $ — $ — $ 53,040 Multi-family collateralized debt obligations, at fair value 1,036,604 — — 9,985,644 — 11,022,248 Securitized debt 30,121 12,214 — — — 42,335 Mortgages and notes payable in consolidated variable interest entities — — — — 31,227 31,227 Accrued expenses and other liabilities 4,228 444 26 37,022 1,166 42,886 Total liabilities $ 1,070,953 $ 12,658 $ 53,066 $ 10,022,666 $ 32,393 $ 11,191,736 (1) The Company classified the multi-family CMBS issued by two securitizations and held by this Financing VIE as available for sale securities. The Financing VIE consolidated one securitization included in the Consolidated K-Series 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 6 ). (2) The Company engaged in this transaction for the purpose of financing certain distressed residential mortgage loans acquired by the Company. The distressed residential mortgage loans serving as collateral for the financing are comprised of re-performing and, to a lesser extent, non-performing and other delinquent mortgage loans secured by first liens on one - to four - family properties. Balances as of December 31, 2018 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 held 5% of the Class A Notes issued as part of the securitization transaction, which were eliminated in consolidation. (3) Eight of the securitizations included in the Consolidated K-Series were not held in a Financing VIE as of December 31, 2018 . As of June 30, 2019 , the Company had no securitized debt outstanding. The following table summarizes the Company’s securitized debt collateralized by multi-family CMBS or distressed residential mortgage loans as of December 31, 2018 (dollar amounts in thousands): Multi-family CMBS Re-securitization (1) Distressed Residential Mortgage Loan Securitization Principal Amount at December 31, 2018 $ 33,177 $ 12,381 Carrying Value at December 31, 2018 (2) $ 30,121 $ 12,214 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 remained economically exposed to the first loss position on the underlying multi-family CMBS transferred to the Consolidated VIE. (2) Presented net of unamortized deferred costs of $0.2 million related to the issuance of the securitized debt, which included underwriting, rating agency, legal, accounting and other fees. The following table presents contractual maturity information about the Financing VIEs’ securitized debt as of December 31, 2018 (dollar amounts in thousands): Scheduled Maturity (principal amount) December 31, 2018 Within 24 months $ 12,381 Over 24 months to 36 months — Over 36 months 33,177 Total 45,558 Discount (2,983 ) Debt issuance cost (240 ) Carrying value $ 42,335 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 As of June 30, 2019 , the Company evaluated its investment securities, mezzanine loan, preferred equity and other equity investments to determine whether they are VIEs and should be consolidated by the Company. As of December 31, 2018 , the Company evaluated its multi-family CMBS investments in two Freddie Mac-sponsored multi-family loan K-Series securitizations 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, as of December 31, 2018 , except for 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 June 30, 2019 and December 31, 2018 , (dollar amounts in thousands): June 30, 2019 Investment securities, available for sale, at fair value Preferred equity and mezzanine loan investments Investments in unconsolidated entities Total ABS $ 24,739 $ — $ — $ 24,739 Preferred equity investments in multi-family properties — 184,727 78,040 262,767 Mezzanine loans on multi-family properties — 6,660 — 6,660 Equity investments in entities that invest in residential properties and loans — — 61,348 61,348 Total assets $ 24,739 $ 191,387 $ 139,388 $ 355,514 December 31, 2018 Investment securities, available for sale, at fair value, held in securitization trusts Receivables and other assets Preferred equity and mezzanine loan investments Investments in unconsolidated entities Total Multi-family CMBS $ 52,700 $ 72 $ — $ — $ 52,772 Preferred equity investments in multi-family properties — — 154,629 40,472 195,101 Mezzanine loans on multi-family properties — — 10,926 — 10,926 Equity investments in entities that invest in residential properties — — — 10,954 10,954 Total assets $ 52,700 $ 72 $ 165,555 $ 51,426 $ 269,753 Our maximum loss exposure on the investment securities available for sale, at fair value, preferred equity and mezzanine loan investments, and investments in unconsolidated entities is approximately $355.5 million at June 30, 2019 . Our maximum loss exposure on the investment securities available for sale, at fair value, held in securitization trusts, preferred equity and mezzanine loan investments, and investments in unconsolidated entities is approximately $269.8 million at December 31, 2018 . 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 | 6 Months Ended |
Jun. 30, 2019 | |
Real Estate [Abstract] | |
Real Estate Held for Sale in Consolidated VIEs | Real Estate Held for Sale in Consolidated VIEs In March 2017, the Company determined that it became the primary beneficiary of Riverchase Landing and The Clusters, two VIEs that each owned a multi-family apartment community and in each of which the Company held a preferred equity investment. Accordingly, the Company consolidated both Riverchase Landing and The Clusters into its condensed consolidated financial statements ( see Note 9). During the second quarter of 2017, Riverchase Landing determined to actively market its multi-family apartment community for sale and completed the sale in March 2018, recognizing a net gain on sale of approximately $2.3 million which is included in other income and is allocated to net income attributable to non-controlling interest in consolidated variable interest entities on the accompanying condensed consolidated statements of operations. In connection with the sale, the Company's preferred equity investment was redeemed, resulting in de-consolidation of Riverchase Landing as of the date of the sale. During the third quarter of 2017, The Clusters determined to actively market its multi-family apartment community for sale and completed the sale in February 2019, recognizing a net gain on sale of approximately $1.6 million which is included in other income and is allocated to net income attributable to non-controlling interest in consolidated variable interest entities on the accompanying condensed consolidated statements of operations. In connection with the sale, the Company's preferred equity investment was redeemed, resulting in de-consolidation of The Clusters as of the date of the sale. As of June 30, 2019 , there is no real estate held for sale in consolidated variable interest entities. The following is a summary of the real estate held for sale in consolidated variable interest entities as of December 31, 2018 (dollar amounts in thousands): December 31, 2018 Land $ 2,650 Building and improvements 26,032 Furniture, fixtures and equipment 974 Lease intangible 2,802 Real estate held for sale before accumulated depreciation and amortization 32,458 Accumulated depreciation (1) (418 ) Accumulated amortization of lease intangible (1) (2,336 ) Real estate held for sale in consolidated variable interest entities $ 29,704 (1) There were no depreciation and amortization expenses for the three and six months ended June 30, 2019 and 2018 . No gain or loss was recognized by the Company or allocated to non-controlling interests related to the initial classification of the real estate assets as held for sale during the year ended December 31, 2017 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2019 | |
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 may include interest rate swaps, swaptions, futures and options on futures. The Company may also purchase or sell “To-Be-Announced,” or TBAs, purchase options on U.S. Treasury futures or invest in other types of mortgage derivative securities. The Company's derivative instruments are currently comprised of interest rate swaps, which are designated as trading instruments. Derivatives Not Designated as Hedging Instruments The following table presents the fair value of derivative instruments and their location in our condensed consolidated balance sheets at June 30, 2019 and December 31, 2018 , respectively (dollar amounts in thousands): Type of Derivative Instrument Balance Sheet Location June 30, 2019 December 31, 2018 Interest rate swaps (1) Derivative assets $ 14,047 $ 10,263 (1) All of the Company's interest rate swaps outstanding are cleared through a central clearing house. The Company exchanges variation margin for swaps based upon daily changes in fair value. As a result of amendments to rules governing certain central clearing activities, the exchange of variation margin is treated as a legal settlement of the exposure under the swap contract. Previously such payments were treated as cash collateral pledged against the exposure under the swap contract. Accordingly, the Company accounted for the receipt or payment of variation margin as a direct reduction to or increase of the carrying value of the interest rate swap asset or liability on the Company's condensed consolidated balance sheets. Includes $27.8 million of derivative liabilities netted against a variation margin of $41.9 million at June 30, 2019 . Includes $1.8 million of derivative assets and variation margin of $8.5 million at December 31, 2018 . The tables below summarize the activity of derivative instruments not designated as hedges for the six months ended June 30, 2019 and 2018 , respectively (dollar amounts in thousands): Notional Amount For the Six Months Ended June 30, 2019 Type of Derivative Instrument December 31, 2018 Additions Settlement, Expiration or Exercise June 30, 2019 Interest rate swaps $ 495,500 $ — $ — $ 495,500 Notional Amount For the Six Months Ended June 30, 2018 Type of Derivative Instrument December 31, 2017 Additions Settlement, Expiration or Exercise June 30, 2018 Interest rate swaps $ 345,500 $ 50,000 $ — $ 395,500 The following table presents 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 six months ended June 30, 2019 and 2018 (dollar amounts in thousands): Three Months Ended June 30, 2019 2018 Realized Gains (Losses) Unrealized Gains (Losses) Realized Gains (Losses) Unrealized Gains (Losses) Interest rate swaps $ — $ (15,007 ) $ — $ 5,135 Total $ — $ (15,007 ) $ — $ 5,135 Six Months Ended June 30, 2019 2018 Realized Gains (Losses) Unrealized Gains (Losses) Realized Gains (Losses) Unrealized Gains (Losses) Interest rate swaps $ — $ (29,593 ) $ — $ 14,103 Total $ — $ (29,593 ) $ — $ 14,103 Derivatives Designated as Hedging Instruments As of June 30, 2019 and December 31, 2018 , there were no derivative instruments designated as hedging instruments. 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 ongoing 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. Outstanding Derivatives The following table presents information about our interest rate swaps whereby we receive floating rate payments in exchange for fixed rate payments as of June 30, 2019 and December 31, 2018 , respectively (dollar amounts in thousands): June 30, 2019 December 31, 2018 Swap Maturities Notional Amount Weighted Average Fixed Interest Rate Weighted Average Notional Amount Weighted Average Fixed Interest Rate Weighted Average 2024 $ 98,000 2.18 % 2.59 % $ 98,000 2.18 % 2.45 % 2027 247,500 2.39 % 2.57 % 247,500 2.39 % 2.53 % 2028 150,000 3.23 % 2.57 % 150,000 3.23 % 2.53 % Total $ 495,500 2.60 % 2.57 % $ 495,500 2.60 % 2.52 % |
Repurchase Agreements
Repurchase Agreements | 6 Months Ended |
Jun. 30, 2019 | |
Banking and Thrift [Abstract] | |
Repurchase Agreements | Repurchase Agreements Investment Securities, Available for Sale The Company has entered into repurchase agreements with third party financial institutions to finance its investment securities portfolio. These repurchase agreements are short-term borrowings that bear interest rates typically based on a spread to LIBOR and are secured by the investment securities which they finance. At June 30, 2019 and December 31, 2018 , the Company had repurchase agreements secured by investment securities with an outstanding balance of $1.8 billion and $1.5 billion , respectively, and a weighted average interest rate of 3.28% and 3.41% , respectively. The following table presents detailed information about the Company’s borrowings under repurchase agreements secured by investment securities and associated assets pledged as collateral at June 30, 2019 and December 31, 2018 (dollar amounts in thousands): June 30, 2019 December 31, 2018 Outstanding Repurchase Agreements Fair Value of Collateral Pledged Amortized Cost of Collateral Pledged Outstanding Repurchase Agreements Fair Value of Collateral Pledged Amortized Cost of Collateral Pledged Agency ARMs RMBS $ 58,802 $ 62,295 $ 64,004 $ 67,648 $ 70,747 $ 73,290 Agency Fixed-rate RMBS 812,811 858,359 863,160 857,582 907,610 940,994 Non-Agency RMBS 172,108 234,583 232,657 88,730 117,958 118,414 CMBS (1) 800,094 1,001,725 769,395 529,617 687,876 539,788 Balance at end of the period $ 1,843,815 $ 2,156,962 $ 1,929,216 $ 1,543,577 $ 1,784,191 $ 1,672,486 (1) Includes first loss PO, IO and mezzanine CMBS securities with a fair value amounting to $755.3 million and $543.0 million included in the Consolidated K-Series as of June 30, 2019 and December 31, 2018 , respectively. As of June 30, 2019 and December 31, 2018 , the average days to maturity for repurchase agreements secured by investment securities were 106 days and 62 days , respectively. The Company’s accrued interest payable on outstanding repurchase agreements secured by investment securities at June 30, 2019 and December 31, 2018 amounts to $4.2 million and $3.9 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 repurchase agreements secured by investment securities at June 30, 2019 and December 31, 2018 (dollar amounts in thousands): Contractual Maturity June 30, 2019 December 31, 2018 Within 30 days $ 240,210 $ 732,051 Over 30 days to 90 days 1,188,847 677,906 Over 90 days 414,758 133,620 Total $ 1,843,815 $ 1,543,577 As of June 30, 2019 , the outstanding balance under our repurchase agreements secured by investment securities was funded at a weighted average advance rate of 86.1% that implies an average “haircut” of 13.9% . As of June 30, 2019 , the weighted average “haircut” related to our repurchase agreement financing for our Agency RMBS, non-agency RMBS, and CMBS was approximately 5% , 26% , and 21% , respectively. In the event we are unable to obtain sufficient short-term financing through existing repurchase agreements, 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 June 30, 2019 and December 31, 2018 , the Company had financing arrangements with fourteen and eleven counterparties, respectively. As of June 30, 2019 , the Company had no exposure where the amount at risk was in excess of 5% of the Company's stockholders’ equity. As of December 31, 2018 the Company's only exposure where the amount at risk was in excess of 5% was to Jefferies & Company, Inc. at 5.04% . As of June 30, 2019 , our available liquid assets included unrestricted cash and cash equivalents and unencumbered securities that we believe may be posted as margin. The Company had $135.0 million in cash and cash equivalents and $388.1 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 June 30, 2019 included $73.5 million of Agency RMBS, $91.6 million of CMBS, $198.3 million of non-Agency RMBS and $24.7 million of ABS. The cash and unencumbered securities, which collectively represent 28.4% of our repurchase agreements secured by investment securities, are liquid and could be monetized to pay down or collateralize a liability immediately. Distressed and Other Residential Mortgage Loans The Company has master repurchase agreements with third party financial institutions to fund the purchase of distressed and other residential mortgage loans, including both first and second mortgages. The following table presents detailed information about the Company’s borrowings under these repurchase agreements and associated distressed and other residential mortgage loans pledged as collateral at June 30, 2019 and December 31, 2018 (dollar amounts in thousands): Maximum Aggregate Uncommitted Principal Amount Outstanding Repurchase Agreements Carrying Value of Loans Pledged (1) Weighted Average Rate Weighted Average Months to Maturity June 30, 2019 $ 950,000 $ 761,361 $ 891,664 4.43 % 7.01 December 31, 2018 $ 950,000 $ 589,148 $ 754,352 4.67 % 9.24 (1) Includes distressed and other residential mortgage loans at fair value of $806.6 million and $626.2 million and distressed and other residential mortgage loans, net of $85.1 million and $128.1 million at June 30, 2019 and December 31, 2018 , respectively. During the terms of the master repurchase agreements, proceeds from the distressed and other 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 distressed and other 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 liquidity, market capitalization, and total stockholders' equity. The Company is in compliance with such covenants as of August 6, 2019 . The Company expects to roll outstanding borrowings under these master repurchase agreements into new repurchase agreements or other financings prior to or at maturity. Costs related to the establishment of the repurchase agreements 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 $0.8 million as of June 30, 2019 and $1.2 million as of December 31, 2018 . 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. |
Residential Collateralized Debt
Residential Collateralized Debt Obligations | 6 Months Ended |
Jun. 30, 2019 | |
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 ARMs pledged as collateral, which are recorded as assets of the Company. Pledged assets of $48.8 million and $56.8 million are included in distressed and other residential mortgage loans, net in the Company's condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018 , respectively. As of June 30, 2019 and December 31, 2018 , the Company had Residential CDOs outstanding of $45.3 million and $53.0 million , respectively. As of June 30, 2019 and December 31, 2018 , the current weighted average interest rate on these Residential CDOs was 3.02% and 3.12% , respectively. The Residential CDOs are collateralized by ARM loans with a principal balance of $52.0 million and $60.2 million at June 30, 2019 and December 31, 2018 , respectively. The Company retained the owner trust certificates, or residual interest, for three securitizations, and, as of June 30, 2019 and December 31, 2018 , had a net investment in the residential securitization trusts of $4.8 million . Debt Convertible Notes On January 23, 2017 , the Company issued $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 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 with the total cost to the Company of approximately 8.24% . Costs related to the issuance of the Convertible Notes which include underwriting, legal, accounting and other fees, are reflected as deferred charges. The underwriter's discount and deferred charges, 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 $6.2 million and $7.2 million as of June 30, 2019 and December 31, 2018 , respectively. The underwriter's discount and deferred charges are amortized as an adjustment to interest expense using the effective interest method. 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 are 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 preceding 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 six months ended June 30, 2019 , none of the Convertible Notes were converted. As of August 6, 2019 , 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 June 30, 2019 and December 31, 2018 (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 August 6, 2019 , 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 In March 2017, the Company consolidated both Riverchase Landing and The Clusters into its condensed consolidated financial statements (s ee Note 9) . In March 2018, Riverchase Landing completed the sale of its multi-family apartment community and redeemed the Company's preferred equity investment. The Company de-consolidated Riverchase Landing as of the date of the sale. In February 2019, The Clusters completed the sale of its multi-family apartment community and redeemed the Company's preferred equity investment. The Company de-consolidated The Clusters as of the date of the sale. The Clusters' real estate investment was subject to a mortgage payable as of December 31, 2018 , and the Company had no obligation for this liability as of December 31, 2018 . The Company also consolidates KRVI into its condensed consolidated financial statements ( see Note 9 ). KRVI's real estate under development is subject to a note payable of $4.0 million that has an unused commitment of $4.4 million as of June 30, 2019 . 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 August 6, 2019 . The mortgages and notes payable in the consolidated VIEs as of June 30, 2019 are described below (dollar amounts in thousands): Mortgage Note Amount as of Assumption/Origination Date June 30, 2019 Maturity Date Interest Rate Net Deferred Finance Costs KRVI 12/16/2016 $ 3,986 12/16/2019 7.00 % $ — As of June 30, 2019 , maturities for debt on the Company's condensed consolidated balance sheet are as follows (dollar amounts in thousands): Year Ending December 31, Total 2019 $ 3,986 2020 — 2021 — 2022 138,000 2023 — Thereafter 45,000 $ 186,986 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
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 ARMs pledged as collateral, which are recorded as assets of the Company. Pledged assets of $48.8 million and $56.8 million are included in distressed and other residential mortgage loans, net in the Company's condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018 , respectively. As of June 30, 2019 and December 31, 2018 , the Company had Residential CDOs outstanding of $45.3 million and $53.0 million , respectively. As of June 30, 2019 and December 31, 2018 , the current weighted average interest rate on these Residential CDOs was 3.02% and 3.12% , respectively. The Residential CDOs are collateralized by ARM loans with a principal balance of $52.0 million and $60.2 million at June 30, 2019 and December 31, 2018 , respectively. The Company retained the owner trust certificates, or residual interest, for three securitizations, and, as of June 30, 2019 and December 31, 2018 , had a net investment in the residential securitization trusts of $4.8 million . Debt Convertible Notes On January 23, 2017 , the Company issued $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 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 with the total cost to the Company of approximately 8.24% . Costs related to the issuance of the Convertible Notes which include underwriting, legal, accounting and other fees, are reflected as deferred charges. The underwriter's discount and deferred charges, 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 $6.2 million and $7.2 million as of June 30, 2019 and December 31, 2018 , respectively. The underwriter's discount and deferred charges are amortized as an adjustment to interest expense using the effective interest method. 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 are 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 preceding 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 six months ended June 30, 2019 , none of the Convertible Notes were converted. As of August 6, 2019 , 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 June 30, 2019 and December 31, 2018 (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 August 6, 2019 , 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 In March 2017, the Company consolidated both Riverchase Landing and The Clusters into its condensed consolidated financial statements (s ee Note 9) . In March 2018, Riverchase Landing completed the sale of its multi-family apartment community and redeemed the Company's preferred equity investment. The Company de-consolidated Riverchase Landing as of the date of the sale. In February 2019, The Clusters completed the sale of its multi-family apartment community and redeemed the Company's preferred equity investment. The Company de-consolidated The Clusters as of the date of the sale. The Clusters' real estate investment was subject to a mortgage payable as of December 31, 2018 , and the Company had no obligation for this liability as of December 31, 2018 . The Company also consolidates KRVI into its condensed consolidated financial statements ( see Note 9 ). KRVI's real estate under development is subject to a note payable of $4.0 million that has an unused commitment of $4.4 million as of June 30, 2019 . 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 August 6, 2019 . The mortgages and notes payable in the consolidated VIEs as of June 30, 2019 are described below (dollar amounts in thousands): Mortgage Note Amount as of Assumption/Origination Date June 30, 2019 Maturity Date Interest Rate Net Deferred Finance Costs KRVI 12/16/2016 $ 3,986 12/16/2019 7.00 % $ — As of June 30, 2019 , maturities for debt on the Company's condensed consolidated balance sheet are as follows (dollar amounts in thousands): Year Ending December 31, Total 2019 $ 3,986 2020 — 2021 — 2022 138,000 2023 — Thereafter 45,000 $ 186,986 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitment to Purchase Securities - The Company has committed to purchase a first loss PO and IOs to be issued by a Freddie Mac-sponsored multi-family loan K-series securitization in the amount of approximately $48.3 million . Outstanding Litigation – The Company is at times subject to various legal proceedings arising in the ordinary course of business. As of June 30, 2019 , 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 | 6 Months Ended |
Jun. 30, 2019 | |
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 – The Company determines the fair value of the investment securities in our portfolio, except the CMBS held in securitization trusts, using a third-party pricing service or 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 2 fair values. The Company’s CMBS held in securitization trusts at December 31, 2018 were comprised of first loss POs and certain IOs for which there were not substantially similar securities that traded frequently. The Company classified these securities as Level 3 fair values. Fair value of the Company’s CMBS investments held in securitization trusts was based on an internal valuation model that considered expected cash flows from the underlying loans and yields required by market participants. The significant unobservable inputs used in the measurement of these investments were projected losses of certain identified loans within the pool of loans and a discount rate. The discount rate used in determining fair value incorporated default rate, loss severity and current market interest rates. The discount rate ranged from 4.5% to 9.5% as of December 31, 2018 . Significant increases or decreases in these inputs would have resulted 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 are based on dealer quotes and are presented net of variation margin payments pledged or received. The Company’s derivatives are classified as 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. Investments 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 distressed and other residential mortgage loans are recorded at fair value and classified as Level 3 in the fair value hierarchy. The fair value for distressed and other residential mortgage loans is determined using valuations obtained from a third party that specializes in providing valuations of residential mortgage loans. The valuation approach depends on whether the residential mortgage loan is considered performing, re-performing or non-performing at the date the valuation is performed. For performing and re-performing loans, estimates of fair value are derived using a discounted cash flow model, where estimates of cash flows are determined from scheduled payments for each loan, adjusted using forecast prepayment rates, default rates and rates for loss upon default. For non-performing loans, asset liquidation cash flows are derived based on the estimated time to liquidate the loan, expected liquidation costs and home price appreciation. The discount rate used in determining fair value for distressed and other residential mortgage loans ranges from 4.0% to 12.0% . 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 June 30, 2019 and December 31, 2018 , respectively, on the Company’s condensed consolidated balance sheets (dollar amounts in thousands): Measured at Fair Value on a Recurring Basis at June 30, 2019 December 31, 2018 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 $ — $ 994,200 $ — $ 994,200 $ — $ 1,037,730 $ — $ 1,037,730 Non-Agency RMBS — 432,840 — 432,840 — 214,037 — 214,037 CMBS — 292,090 — 292,090 — 207,785 52,700 260,485 ABS — 24,739 — 24,739 — — — — Multi-family loans held in securitization trusts — — 14,573,925 14,573,925 — — 11,679,847 11,679,847 Distressed and other residential mortgage loans, at fair value — — 1,061,954 1,061,954 — — 737,523 737,523 Derivative assets: Interest rate swaps (1) — 14,047 — 14,047 — 10,263 — 10,263 Investments in unconsolidated entities — — 88,108 88,108 — — 32,994 32,994 Total $ — $ 1,757,916 $ 15,723,987 $ 17,481,903 $ — $ 1,469,815 $ 12,503,064 $ 13,972,879 Liabilities carried at fair value Multi-family collateralized debt obligations $ — $ — $ 13,772,726 $ 13,772,726 $ — $ — $ 11,022,248 $ 11,022,248 Total $ — $ — $ 13,772,726 $ 13,772,726 $ — $ — $ 11,022,248 $ 11,022,248 (1) All of the Company's interest rate swaps outstanding are cleared through a central clearing house. The Company exchanges variation margin for swaps based upon daily changes in fair value. Includes derivative liabilities of $27.8 million netted against a variation margin of $41.9 million at June 30, 2019 . Includes derivative assets of $1.8 million and variation margin of $8.5 million at December 31, 2018 . The following tables detail changes in valuation for the Level 3 assets for the six months ended June 30, 2019 and 2018 , respectively (amounts in thousands): Level 3 Assets: Six Months Ended June 30, 2019 Multi-family loans held in securitization trusts Distressed and other residential mortgage loans Investments in unconsolidated entities CMBS held in securitization trusts Total Balance at beginning of period $ 11,679,847 $ 737,523 $ 32,994 $ 52,700 $ 12,503,064 Total gains/(losses) (realized/unrealized) Included in earnings 574,231 25,359 5,753 17,734 623,077 Included in other comprehensive income (loss) — — — (13,665 ) (13,665 ) Transfers in — — — — — Transfers out — (182 ) — — (182 ) Contributions — — 50,000 — 50,000 Paydowns/Distributions (106,363 ) (61,275 ) (639 ) — (168,277 ) Sales — (19,814 ) — (56,769 ) (76,583 ) Purchases (1) 2,426,210 380,343 — — 2,806,553 Balance at the end of period $ 14,573,925 $ 1,061,954 $ 88,108 $ — $ 15,723,987 (1) During the six months ended June 30, 2019 , the Company purchased first loss PO securities and certain IOs and mezzanine CMBS securities issued from securitizations that it determined to consolidate and included in the Consolidated K-Series. As a result, the Company consolidated assets of these securitizations in the amount of $2.4 billion during the six months ended June 30, 2019 ( see Notes 2 and 6 ). Six Months Ended June 30, 2018 Multi-family loans held in securitization trusts Distressed and other residential mortgage loans Investments in unconsolidated entities CMBS held in securitization trusts Total Balance at beginning of period $ 9,657,421 $ 87,153 $ 42,823 $ 47,922 $ 9,835,319 Total (losses)/gains (realized/unrealized) Included in earnings (244,181 ) (475 ) 3,575 1,915 (239,166 ) Included in other comprehensive income (loss) — — — 297 297 Transfers in — — — — — Transfers out — — — — — Contributions — — — — — Paydowns/Distributions (67,880 ) (9,371 ) (1,246 ) — (78,497 ) Sales — (2,185 ) — — (2,185 ) Purchases — 94,075 — — 94,075 Balance at the end of period $ 9,345,360 $ 169,197 $ 45,152 $ 50,134 $ 9,609,843 The following table details changes in valuation for the Level 3 liabilities (Multi-family CDOs) for the six months ended June 30, 2019 and 2018 , respectively (amounts in thousands): Level 3 Liabilities: Six Months Ended June 30, 2019 2018 Balance at beginning of period $ 11,022,248 $ 9,189,459 Total losses (gains) (realized/unrealized) Included in earnings (1) 531,930 (282,738 ) Purchases (2) 2,324,639 — Paydowns (106,091 ) (67,880 ) Balance at the end of period $ 13,772,726 $ 8,838,841 (1) Amounts included in interest expense on Multi-Family CDOs and unrealized gain on multi-family loans and debt held in securitization trusts. (2) During the six months ended June 30, 2019 , the Company purchased PO securities and certain IOs and mezzanine CMBS securities issued from securitizations that it determined to consolidate and include in the Consolidated K-Series. As a result, the Company consolidated liabilities of these securitizations in the amount of $2.3 billion ( see Notes 2 and 6 ). The following table details the changes in unrealized gains (losses) included in earnings for the three and six months ended June 30, 2019 and 2018 for our Level 3 assets and liabilities held as of June 30, 2019 and 2018 , respectively (dollar amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Assets Multi-family loans held in securitization trusts (1) $ 330,105 $ (47,200 ) $ 604,788 $ (219,746 ) Investments in unconsolidated entities (2) 1,698 1,858 5,359 2,896 Distressed and other residential mortgage loans, at fair value (3) 10,329 (34 ) 19,666 (126 ) Liabilities Multi-family debt held in securitization trusts (1) (324,898 ) 59,219 (590,171 ) 239,310 (1) Presented in unrealized gain on multi-family loans and debt held in securitization trusts, net on the Company's condensed consolidated statements of operations. (2) Presented in other income on the Company's condensed consolidated statements of operations. (3) Presented in net gain (loss) on distressed and other residential mortgage loans at fair value on the Company's condensed consolidated statements of operations. The following table presents assets measured at fair value on a non-recurring basis as of June 30, 2019 and December 31, 2018 , respectively, on the Company's condensed consolidated balance sheets (dollar amounts in thousands): Assets Measured at Fair Value on a Non-Recurring Basis at June 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Residential mortgage loans held in securitization trusts – impaired loans, net — — $ 5,590 $ 5,590 — — $ 5,921 $ 5,921 The following table presents gains (losses) incurred for assets measured at fair value on a non-recurring basis for the three and six months ended June 30, 2019 and 2018 , respectively, on the Company’s condensed consolidated statements of operations (dollar amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Residential mortgage loans held in securitization trusts – impaired loans, net — — $ (38 ) $ 110 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. The following table presents the carrying value and estimated fair value of the Company’s financial instruments at June 30, 2019 and December 31, 2018 , respectively (dollar amounts in thousands): June 30, 2019 December 31, 2018 Fair Value Hierarchy Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets: Cash and cash equivalents Level 1 $ 134,993 $ 134,993 $ 103,724 $ 103,724 Investment securities available for sale Level 2 or 3 1,743,869 1,743,869 1,512,252 1,512,252 Distressed and other residential mortgage loans, at fair value Level 3 1,061,954 1,061,954 737,523 737,523 Distressed and other residential mortgage loans, net Level 3 218,094 221,615 285,261 289,376 Investments in unconsolidated entities Level 3 166,148 166,983 73,466 73,833 Preferred equity and mezzanine loan investments Level 3 191,387 193,875 165,555 167,739 Multi-family loans held in securitization trusts Level 3 14,573,925 14,573,925 11,679,847 11,679,847 Derivative assets Level 2 14,047 14,047 10,263 10,263 Mortgage loans held for sale, net (1) Level 3 2,460 2,621 3,414 3,584 Mortgage loans held for investment (1) Level 3 1,580 1,580 1,580 1,580 Financial Liabilities: Repurchase agreements Level 2 2,604,356 2,604,356 2,131,505 2,131,505 Residential collateralized debt obligations Level 3 45,280 43,468 53,040 50,031 Multi-family collateralized debt obligations Level 3 13,772,726 13,772,726 11,022,248 11,022,248 Securitized debt Level 3 — — 42,335 45,030 Subordinated debentures Level 3 45,000 45,044 45,000 44,897 Convertible notes Level 2 131,839 138,773 130,762 135,689 (1) Included in receivables and other assets in the accompanying condensed consolidated balance sheets. 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. Distressed and other residential mortgage loans held in securitization trusts, net – Residential mortgage loans held in the securitization trusts are recorded at amortized cost, net of allowance for loan losses. 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 and other 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. 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. e. Preferred equity and mezzanine loan 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. f. Repurchase agreements – The fair value of these repurchase agreements approximates cost as they are short term in nature. g. Residential collateralized debt obligations – The fair value of these CDOs is based on discounted cash flows as well as market pricing on comparable obligations. h. Securitized debt – The fair value of securitized debt is based on discounted cash flows using management’s estimate for market yields. i. Subordinated debentures – The fair value of these subordinated debentures is based on discounted cash flows using management’s estimate for market yields. j. Convertible notes – The fair value is based on quoted prices provided by dealers who make markets in similar financial instruments. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
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 12,661,287 and 12,000,000 shares issued and outstanding as of June 30, 2019 and December 31, 2018 , respectively. At December 31, 2018 , the Company had designated 6,000,000 shares of 7.75% Series B Cumulative Redeemable Preferred Stock (“Series B Preferred Stock”), 4,140,000 shares of 7.875% Series C Cumulative Redeemable Preferred Stock (“Series C Preferred Stock”), and 5,750,000 shares of 8.00% Series D Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (“Series D Preferred Stock”). On March 28, 2019, the Company classified and designated an additional 2,460,000 shares and 2,650,000 shares of the Company's authorized but unissued preferred stock as Series C Preferred Stock and Series D Preferred Stock, respectively. At June 30, 2019 , the Company had designated 6,000,000 shares, 6,600,000 shares and 8,400,000 shares of Series B Preferred Stock, Series C Preferred Stock, and Series D Preferred Stock, respectively (collectively, the "Preferred Stock"). The Company had 3,101,683 shares of Series B Preferred Stock, 3,993,866 shares of Series C Preferred Stock and 5,565,738 shares of Series D Preferred Stock issued and outstanding as of June 30, 2019 . The Company had 3,000,000 shares of Series B Preferred Stock, 3,600,000 shares of Series C Preferred Stock and 5,400,000 shares of Series D Preferred Stock issued and outstanding as of December 31, 2018 . Each of the Series B Preferred Stock and the Series C Preferred Stock are entitled to receive a dividend at a rate of 7.75% and 7.875% , respectively, per year on its $25 liquidation preference. The Series D Preferred Stock is entitled to receive a dividend at a fixed rate to, but excluding, October 15, 2027 of 8.00% per year on its $25 liquidation preference. Beginning October 15, 2027, the Series D Preferred Stock is entitled to receive a dividend at a floating rate equal to three-month LIBOR plus a spread of 5.695% per year on its $25 liquidation preference. Each series of the Preferred Stock is senior to the common stock with respect to distributions upon liquidation, dissolution or winding up. The 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 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 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 any series of the Preferred Stock cannot be made without the affirmative vote of holders of at least two-thirds of the outstanding shares of the series of Preferred Stock whose terms are being changed. The Series B Preferred Stock, Series C Preferred Stock, and Series D Preferred Stock are not redeemable by the Company prior to June 4, 2018, April 22, 2020, and October 15, 2027, respectively, 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, Series C Preferred Stock, and Series D Preferred Stock, respectively). On and after June 4, 2018, April 22, 2020, and October 15, 2027, the Company may, at its option, redeem the Series B Preferred Stock, Series C Preferred Stock, and Series D 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 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. The 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 Preferred Stock will have the right (unless the Company has exercised its right to redeem the Preferred Stock) to convert some or all of the Preferred Stock held by such holder into a number of shares of our common stock per share of the applicable series of 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 the Preferred Stock through June 30, 2019 , 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 such quarterly cash dividends declared on the Preferred Stock commencing January 1, 2018 through June 30, 2019 : Cash Dividend Per Share Declaration Date Record Date Payment Date Series B Preferred Stock Series C Preferred Stock Series D Preferred Stock June 14, 2019 July 1, 2019 July 15, 2019 $ 0.484375 $ 0.4921875 $ 0.50 March 19, 2019 April 1, 2019 April 15, 2019 0.484375 0.4921875 0.50 December 4, 2018 January 1, 2019 January 15, 2019 0.484375 0.4921875 0.50 September 17, 2018 October 1, 2018 October 15, 2018 0.484375 0.4921875 0.50 June 18, 2018 July 1, 2018 July 15, 2018 0.484375 0.4921875 0.50 March 19, 2018 April 1, 2018 April 15, 2018 0.484375 0.4921875 0.50 (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, 2018 and ended June 30, 2019 : Period Declaration Date Record Date Payment Date Cash Dividend Per Share Second Quarter 2019 June 14, 2019 June 24, 2019 July 25, 2019 $ 0.20 First Quarter 2019 March 19, 2019 March 29, 2019 April 25, 2019 0.20 Fourth Quarter 2018 December 4, 2018 December 14, 2018 January 25, 2019 0.20 Third Quarter 2018 September 17, 2018 September 27, 2018 October 26, 2018 0.20 Second Quarter 2018 June 18, 2018 June 28, 2018 July 26, 2018 0.20 First Quarter 2018 March 19, 2018 March 29, 2018 April 26, 2018 0.20 (c) Public Offering of Common Stock The following table details the Company's public offering of common stock during the six months ended June 30, 2019 (dollar amounts in thousands): Share Issue Month Shares Issued Net Proceeds (1) January 2019 14,490,000 $ 83,772 March 2019 17,250,000 101,160 May 2019 20,700,000 123,102 (1) Proceeds are net of underwriting discounts and commissions and offering expenses (d) Equity Distribution Agreements On August 10, 2017, the Company entered into an equity distribution agreement (the “Common 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. On September 10, 2018, the Company entered into an amendment to the Common Equity Distribution Agreement that increased the maximum aggregate sales price to $177.1 million . The Company has no obligation to sell any of the shares of common stock issuable under the Common Equity Distribution Agreement and may at any time suspend solicitations and offers under the Common Equity Distribution Agreement. During the three and six months ended June 30, 2019 , the Company issued 2,260,200 shares of common stock under the Common Equity Distribution Agreement, at an average sales price of $6.12 per share, resulting in total net proceeds to the Company of $13.6 million . During the three and six months ended June 30, 2018 , the Company issued 12,145,144 shares of common stock under the Common Equity Distribution Agreement, at an average sales price of $6.17 per share, resulting in total net proceeds to the Company of $73.8 million . As of June 30, 2019 , approximately $72.5 million of common stock remains available for issuance under the Common Equity Distribution Agreement. On March 29, 2019, the Company entered into an equity distribution agreement (the "Preferred Equity Distribution Agreement") with JonesTrading Institutional Services LLC, as sales agent, pursuant to which the Company may offer and sell shares of the Company's Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock, having a maximum aggregate gross sales price of up to $50.0 million , from time to time through the sales agent. The Company has no obligation to sell any of the shares of Preferred Stock issuable under the Preferred Equity Distribution Agreement and may at any time suspend solicitations and offers under the Preferred Equity Distribution Agreement. During the three and six months ended June 30, 2019 , the Company issued 661,287 shares of Preferred Stock under the Preferred Equity Distribution Agreement, at an average sales price of $24.72 per share, resulting in total net proceeds to the Company of $16.1 million . As of June 30, 2019 , approximately $33.7 million |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
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 stock units, and the number of incremental shares that are to be added to the weighted-average number of shares outstanding. During the three months ended June 30, 2019 , the Company's Convertible Notes were determined to be anti-dilutive and were not 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. During the six months ended June 30, 2019 , the Company's Convertible Notes were determined to be dilutive and were included in the calculation of diluted earnings per common share. During the three and six months ended June 30, 2018 , the Company's Convertible Notes were determined to be dilutive and were included in the calculation of diluted earnings per common share. During the three and six months ended June 30, 2019 and 2018 , performance stock units ("PSUs") awarded under the Company's 2017 Equity Incentive Plan (as amended, the "2017 Plan," see Note 19 ) were determined to be dilutive and were included in the calculation of diluted earnings per common share under the treasury stock method. Under this method, common equivalent shares are calculated assuming that target PSUs vest according to the PSU award agreements ("PSU Agreements") and unrecognized compensation cost is used to repurchase shares of the Company’s outstanding common stock at the average market price during the reported period. 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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 (1) Basic Earnings per Common Share Net income attributable to Company $ 22,735 $ 29,694 $ 66,874 $ 59,311 Less: Preferred stock dividends (6,257 ) (5,925 ) (12,182 ) (11,850 ) Net income attributable to Company's common stockholders $ 16,478 $ 23,769 $ 54,692 $ 47,461 Basic weighted average common shares outstanding 200,691 115,211 187,628 113,623 Basic Earnings per Common Share $ 0.08 $ 0.21 $ 0.29 $ 0.42 Diluted Earnings per Common Share: Net income attributable to Company $ 22,735 $ 29,694 $ 66,874 $ 59,311 Less: Preferred stock dividends (6,257 ) (5,925 ) (12,182 ) (11,850 ) Add back: Interest expense on convertible notes for the period, net of tax — 2,633 5,307 5,267 Net income attributable to Company's common stockholders $ 16,478 $ 26,402 $ 59,999 $ 52,728 Weighted average common shares outstanding 200,691 115,211 187,628 113,623 Net effect of assumed convertible notes conversion to common shares — 19,695 19,695 19,695 Net effect of assumed PSUs vested 1,707 258 1,688 152 Diluted weighted average common shares outstanding 202,398 135,164 209,011 133,470 Diluted Earnings per Common Share $ 0.08 $ 0.20 $ 0.29 $ 0.40 |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation In May 2017, the Company’s stockholders approved the 2017 Plan, with such stockholder action resulting in the termination of the Company’s 2010 Stock Incentive Plan (the “2010 Plan”). In June 2019, the Company's stockholders approved an amendment to the 2017 Plan to increase the shares reserved under the 2017 Plan by 7,600,000 shares of common stock. 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 June 30, 2019 , there were 81,837 shares of non-vested restricted stock outstanding under the 2010 Plan. 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 13,170,000 . Of the common stock authorized at June 30, 2019 , 9,051,591 shares remain available for issuance under the 2017 Plan. The Company’s non-employee directors have been issued 228,750 shares under the 2017 Plan as of June 30, 2019 . The Company’s employees have been issued 828,701 shares of restricted stock under the 2017 Plan as of June 30, 2019 . At June 30, 2019 , there were 756,861 shares of non-vested restricted stock outstanding and 3,060,958 common shares reserved for issuance in connection with PSUs under the 2017 Plan. Of the common stock authorized at December 31, 2018 , 3,865,174 shares were reserved for issuance under the 2017 Plan. The Company's non-employee directors had been issued 131,975 shares under the 2017 Plan as of December 31, 2018 . The Company’s employees had been issued 292,459 shares of restricted stock under the 2017 Plan as of December 31, 2018 . At December 31, 2018 , there were 290,373 shares of non-vested restricted stock outstanding and 1,280,392 common shares reserved for issuance in connection with outstanding PSUs under the 2017 Plan. (a) Restricted Common Stock Awards During the three and six months ended June 30, 2019 , the Company recognized non-cash compensation expense on its restricted common stock awards of $0.6 million and $1.1 million , respectively. During the three and six months ended June 30, 2018 , the Company recognized non-cash compensation expense on its restricted common stock awards of $0.3 million and $0.6 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 of shares for the three and six months ended June 30, 2019 . There were forfeitures of 5,120 shares for the three and six months ended June 30, 2018 . A summary of the activity of the Company's non-vested restricted stock collectively under the 2010 Plan and 2017 Plan for the six months ended June 30, 2019 and 2018 , respectively, is presented below: 2019 2018 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 1 507,536 $ 5.91 422,928 $ 6.36 Granted 536,242 6.30 206,597 5.57 Vested (205,080 ) 5.85 (200,064 ) 6.55 Forfeited — — (5,120 ) 6.25 Non-vested shares as of June 30 838,698 $ 6.18 424,341 $ 5.90 Restricted stock granted during the period 536,242 $ 6.30 206,597 $ 5.57 (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 June 30, 2019 and 2018 , the Company had unrecognized compensation expense of $4.2 million and $2.1 million , respectively, related to the non-vested shares of restricted common stock under the 2010 Plan and 2017 Plan, collectively. The unrecognized compensation expense at June 30, 2019 is expected to be recognized over a weighted average period of 2.3 years . The total fair value of restricted shares vested during the six months ended June 30, 2019 and 2018 was approximately $1.3 million and $1.1 million , respectively. The requisite service period for restricted stock awards at issuance is three years and the restricted common stock either vests ratably over a three year period or at the end of the requisite service period. (b) Performance Stock Units During the three and six months ended June 30, 2019 and 2018 , the Compensation Committee and the Board of Directors approved the grant of PSUs. Each PSU represents an unfunded promise to receive one share of the Company's common stock once the performance condition has been satisfied. The awards were issued pursuant to and are consistent with the terms and conditions of the 2017 Plan. The PSU awards are subject to performance-based vesting under the 2017 Plan pursuant to the PSU Agreements. Vesting of the PSUs will occur at the end of three years based on the following: • If three -year TSR performance relative to the Company's identified performance peer group (the "Relative TSR") is less than the 30 th percentile, then 0% of the target PSUs will vest; • If three -year Relative TSR performance is equal to the 30 th percentile, then the Threshold % (as defined in the individual PSU Agreements) of the target PSUs will vest; • If three -year Relative TSR performance is equal to the 50 th percentile, then 100% of the target PSUs will vest; and • If three -year Relative TSR performance is greater than or equal to the 80 th percentile, then the Maximum % (as defined in the individual PSU Agreements) of the target PSUs will vest. The percentage of target PSUs that vest for performance between the 30 th , 50 th , and 80 th percentiles will be calculated using linear interpolation. Total shareholder return for the Company and each member of the peer group will be determined by dividing (i) the sum of the cumulative amount of such entity’s dividends per share for the performance period and the arithmetic average per share volume weighted average price (the “VWAP”) of such entity’s common stock for the last thirty (30) consecutive trading days of the performance period minus the arithmetic average per share VWAP of such entity’s common stock for the last thirty (30) consecutive trading days immediately prior to the performance period by (ii) the arithmetic average per share VWAP of such entity’s common stock for the last thirty (30) consecutive trading days immediately prior to the performance period. The grant date fair value of the PSUs 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 identified performance peer companies to determine the Relative TSR of the Company’s common stock over a future period of three years . For the PSUs granted in 2019 and 2018, the inputs used by the model to determine the fair value are (i) historical stock price volatilities of the Company and its identified performance peer companies over the most recent three year period and correlation between each company's stock and the identified performance peer group over the same time series and (ii) a risk free rate for the period interpolated from the U.S. Treasury yield curve on grant date. A summary of the activity of the target PSU Awards under the 2017 Plan for the six months ended June 30, 2019 and 2018 , respectively, is presented below: 2019 2018 Number of Non-vested Target Shares Weighted Average Per Share Grant Date Fair Value Number of Non-vested Target Shares Weighted Average Per Share Grant Date Fair Value Non-vested target PSUs at January 1 842,792 $ 4.20 — $ — Granted 1,175,726 4.01 653,365 4.08 Vested — — — — Non-vested target PSUs as of June 30 2,018,518 $ 4.09 653,365 $ 4.08 As of June 30, 2019 and 2018 , there was $5.9 million and $2.4 million of unrecognized compensation cost related to the non-vested portion of the PSUs, respectively. Compensation expense related to the PSUs was $0.7 million and $1.4 million for the three and six months ended June 30, 2019 , respectively. Compensation expense related to the PSUs was $0.2 million for the three and six months ended June 30, 2018 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three and six months ended June 30, 2019 and 2018 , the Company qualified to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the "Internal Revenue 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 six months ended June 30, 2019 and 2018 , respectively, is comprised of the following components (dollar amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Current income tax expense $ 15 $ 7 $ 8 $ 7 Deferred income tax benefit (149 ) (20 ) (68 ) (99 ) Total benefit $ (134 ) $ (13 ) $ (60 ) $ (92 ) Deferred Tax Assets and Liabilities The major sources of temporary differences included in the deferred tax assets and their deferred tax effect as of June 30, 2019 and December 31, 2018 are as follows (dollar amounts in thousands): June 30, 2019 December 31, 2018 Deferred tax assets Net operating loss carryforward $ 3,213 $ 2,416 Capital loss carryover 1,173 739 GAAP/Tax basis differences 4,073 3,903 Total deferred tax assets (1) 8,459 7,058 Deferred tax liabilities Deferred tax liabilities 5 6 Total deferred tax liabilities (2) 5 6 Valuation allowance (1) (7,403 ) (6,069 ) Total net deferred tax asset $ 1,051 $ 983 (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 June 30, 2019 , the Company, through wholly-owned TRSs, had incurred net operating losses in the aggregate amount of approximately $9.4 million . The Company’s carryforward net operating losses can be carried forward indefinitely until they are offset by future taxable income. Additionally, as of June 30, 2019 , the Company, through one of its wholly-owned TRSs, had also incurred approximately $3.4 million in capital losses. The Company's carryforward capital losses will expire between 2023 and 2024 if they are not offset by future capital gains. At June 30, 2019 , 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. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 22, 2019 , the Company issued 23,000,000 shares of its common stock through an underwritten public offering at a public offering price of $6.11 per share, resulting in total net proceeds to the Company of $137.5 million |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation – The accompanying condensed consolidated balance sheet as of December 31, 2018 has been derived from audited financial statements. The accompanying condensed consolidated balance sheet as of June 30, 2019 , the accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2019 and 2018 , the accompanying condensed consolidated statements of comprehensive income for the three and six months ended June 30, 2019 and 2018 , the accompanying condensed consolidated statements of changes in stockholders’ equity for the three and six months ended June 30, 2019 and 2018 and the accompanying condensed consolidated statements of cash flows for the six months ended June 30, 2019 and 2018 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, 2018 , as filed with the U.S. Securities and Exchange Commission (“SEC”). Accordingly, significant accounting policies and other disclosures have been omitted since such items are disclosed in Note 2 in the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2018 . Provided below is a summary of additional accounting policies that are significant to, or newly adopted by, the Company for the three and six months ended June 30, 2019 . The results of operations for the three and six months ended June 30, 2019 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 fair valuation of its distressed and other residential mortgage loans, multi-family loans held in securitization trusts, multi-family CDOs and CMBS held in securitization trusts, 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 those conditions 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. |
Adoption of Accounting Standards Codification and Summary of Recent Accounting Pronouncements | Adoption of Accounting Standards Codification ("ASC") Topic 842, Leases ("ASC 842") On January 1, 2019, the Company adopted ASC 842 using the modified retrospective transition method applied to all leases that were not completed as of January 1, 2019. Results for reporting periods beginning on or after January 1, 2019 are presented under ASC 842, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. We elected the practical expedients allowed for under ASC 842 that exempt an entity from reassessing whether existing contracts contain leases, reassessing the lease classification of existing leases, and reassessing the initial direct costs for existing leases. As such, there was no cumulative impact on opening accumulated deficit as of January 1, 2019 of adopting ASC 842 under the modified retrospective transition method. Operating lease right of use assets of $9.8 million and operating lease liabilities of $10.1 million are included in receivables and other assets and accrued expenses and other liabilities in the condensed consolidated balance sheets, respectively, as of June 30, 2019 . The adoption of ASC 842 did not have a material effect on our results of operations for the three and six months ended June 30, 2019 . Summary of Recent Accounting Pronouncements 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 purchased financial assets with credit deterioration and available-for-sale debt securities, which will require the recognition of credit losses through a valuation allowance when fair value is less than amortized cost. The amendments are effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted beginning in 2019. In May 2019, the FASB issued ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief ("ASU 2019-05"). The amendments allow an entity to make an irrevocable one-time election to measure financial assets accounted for under ASC 326-20, Financial Instruments—Credit Losses— Measured at Amortized Cost, using the fair value option upon adoption of ASU 2016-13. For the Company, the amendments are effective upon adoption of ASU 2016-13. The amendments in ASU 2019-05 should be applied on a modified retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings balance as of the date that an entity adopted the amendments in ASU 2016-13. The Company is currently assessing the impact of this guidance in conjunction with ASU 2016-13 as the ASUs will affect the Company's accounting for distressed and other residential mortgage loans, net and preferred equity and mezzanine loan investments that are accounted for as loans. It is the Company's intention to elect fair value option for impacted assets but the Company will continue to evaluate the new standards and any changes in our business or additional amendments to these standards could change our intention to elect fair value option. Fair Value Measurement (Topic 820) In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to Disclosure Requirements for Fair Value Measurement ("ASU 2018-13") . These amendments add, modify, or remove disclosure requirements regarding the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, narrative descriptions of measurement uncertainty, and the valuation processes for Level 3 fair value measurements. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted upon issuance of this update. An entity is permitted to early adopt any removed or modified disclosures upon issuance of ASU 2018-13 and delay adoption of the additional disclosures until their effective date. The Company anticipates the implementation of this guidance as of the effective date will result in additional and modified disclosures with respect to its Level 3 fair value measurements. |
Investment Securities Availab_2
Investment Securities Available for Sale (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available for Sale Securities | Investment securities available for sale consisted of the following as of June 30, 2019 and December 31, 2018 (dollar amounts in thousands): June 30, 2019 December 31, 2018 Amortized Cost Unrealized Fair Value Amortized Cost Unrealized Fair Value Gains Losses Gains Losses Agency RMBS Agency ARMs Freddie Mac $ 24,618 $ — $ (733 ) $ 23,885 $ 26,338 $ — $ (1,052 ) $ 25,286 Fannie Mae 36,379 20 (895 ) 35,504 43,984 8 (1,384 ) 42,608 Ginnie Mae 3,233 — (103 ) 3,130 3,627 — (127 ) 3,500 Total Agency ARMs (1) 64,230 20 (1,731 ) 62,519 73,949 8 (2,563 ) 71,394 Agency Fixed- Rate Freddie Mac 82,165 650 (502 ) 82,313 87,018 — (2,526 ) 84,492 Fannie Mae 856,313 1,080 (8,025 ) 849,368 915,039 — (33,195 ) 881,844 Total Agency Fixed-Rate 938,478 1,730 (8,527 ) 931,681 1,002,057 — (35,721 ) 966,336 Total Agency RMBS 1,002,708 1,750 (10,258 ) 994,200 1,076,006 8 (38,284 ) 1,037,730 Non-Agency RMBS (1)(2) 428,443 4,719 (322 ) 432,840 215,337 166 (1,466 ) 214,037 CMBS (1) (3) 276,947 15,300 (157 ) 292,090 243,046 17,815 (376 ) 260,485 ABS 24,768 — (29 ) 24,739 — — — — Total investment securities available for sale $ 1,732,866 $ 21,769 $ (10,766 ) $ 1,743,869 $ 1,534,389 $ 17,989 $ (40,126 ) $ 1,512,252 (1) For the Company's Agency ARMs, non-Agency RMBS, and CMBS securities with stated reset periods, the weighted average reset periods are 28 months , five months , and one month , respectively. (2) Includes $3.1 million in non-Agency RMBS purchased not yet settled, which are included in accrued expenses and other liabilities on the Company's condensed consolidated balance sheet. (3) Included in CMBS is $52.7 million of first loss POs and certain IOs held in securitization trusts as of December 31, 2018 . |
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 June 30, 2019 and December 31, 2018 (dollar amounts in thousands): Weighted Average Life June 30, 2019 December 31, 2018 0 to 5 years $ 670,546 $ 456,947 Over 5 to 10 years 733,319 1,043,369 10+ years 340,004 11,936 Total $ 1,743,869 $ 1,512,252 |
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 other comprehensive income, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2019 and December 31, 2018 (dollar amounts in thousands): June 30, 2019 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 $ — $ — $ 617,454 $ (10,258 ) $ 617,454 $ (10,258 ) Non-Agency RMBS 36,903 (309 ) 133 (13 ) 37,036 (322 ) CMBS 31,310 (157 ) — — 31,310 (157 ) ABS 24,739 (29 ) — — 24,739 (29 ) Total investment securities available for sale $ 92,952 $ (495 ) $ 617,587 $ (10,271 ) $ 710,539 $ (10,766 ) December 31, 2018 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 $ 310,783 $ (8,037 ) $ 726,028 $ (30,247 ) $ 1,036,811 $ (38,284 ) Non-Agency RMBS 187,395 (1,451 ) 158 (15 ) 187,553 (1,466 ) CMBS 75,292 (376 ) — — 75,292 (376 ) Total investment securities available for sale $ 573,470 $ (9,864 ) $ 726,186 $ (30,262 ) $ 1,299,656 $ (40,126 ) |
Distressed and Other Resident_3
Distressed and Other Residential Mortgage Loans, At Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Residential Mortgage Loans At Fair Value | The Company’s distressed and other residential mortgage loans at fair value consist of the following as of June 30, 2019 and December 31, 2018 , respectively (dollar amounts in thousands): Principal Premium/(Discount) Unrealized Gains/(Losses) Carrying Value June 30, 2019 $ 1,110,163 $ (70,026 ) $ 21,817 $ 1,061,954 December 31, 2018 788,372 (54,905 ) 4,056 737,523 |
Components of Net Gain on Residential Mortgage Loans at Fair Value | The following table presents the components of net gain (loss) on distressed and other residential mortgage loans at fair value for the three and six months ended June 30, 2019 and 2018 , respectively (dollar amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net realized gain on payoff and sale of loans $ 2,394 $ 330 $ 5,519 $ 369 Net unrealized gains (losses) 9,877 (233 ) 17,762 (439 ) |
Schedule of Geographic Concentration of Credit Risk | The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of distressed and other residential mortgage loans at fair value as of June 30, 2019 and December 31, 2018 , respectively, are as follows: June 30, 2019 December 31, 2018 California 23.7 % 27.9 % Florida 9.8 % 9.0 % Texas 5.7 % 4.2 % New York 5.6 % 5.1 % The geographic concentrations of credit risk exceeding 5% of the total loan balances in our residential mortgage loans held in securitization trusts as of June 30, 2019 and December 31, 2018 are as follows: June 30, 2019 December 31, 2018 New York 34.7 % 33.9 % Massachusetts 17.6 % 20.0 % New Jersey 15.1 % 14.5 % Florida 11.2 % 9.9 % Maryland 5.4 % 5.3 % The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of our distressed residential mortgage loans, net as of June 30, 2019 and December 31, 2018 , respectively, are as follows: June 30, 2019 December 31, 2018 North Carolina 10.1 % 9.0 % Florida 9.9 % 10.4 % Georgia 7.0 % 7.2 % South Carolina 5.6 % 5.6 % Virginia 5.6 % 5.3 % Texas 5.5 % 4.9 % New York 5.4 % 5.4 % Ohio 5.2 % 5.0 % |
Residential Mortgage Loans, Fair Value Compared to Unpaid Principal | The following table presents the fair value and aggregate unpaid principal balance of the Company's distressed and other residential mortgage loans at fair value greater than 90 days past due and in non-accrual status as of June 30, 2019 and December 31, 2018 , respectively (dollar amounts in thousands): Fair Value Unpaid Principal Balance June 30, 2019 $ 58,628 $ 73,120 December 31, 2018 60,117 75,167 |
Distressed and Other Resident_4
Distressed and Other Residential Mortgage Loans, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Activity in Accretable Yield for Distressed Residential Mortgage Loans | The following table details activity in accretable yield for the distressed residential mortgage loans, net for the six months ended June 30, 2019 and 2018 , respectively (dollar amounts in thousands): June 30, 2019 June 30, 2018 Balance at beginning of period $ 195,560 $ 303,949 Additions 2,369 3,314 Disposals (45,004 ) (37,665 ) Accretion (2,370 ) (8,074 ) Balance at end of period (1) $ 150,555 $ 261,524 (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 six month periods ended June 30, 2019 and 2018 is not necessarily indicative of future results. |
Schedule of Geographic Concentration of Credit Risk Exceeding 5% of Balances | The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of distressed and other residential mortgage loans at fair value as of June 30, 2019 and December 31, 2018 , respectively, are as follows: June 30, 2019 December 31, 2018 California 23.7 % 27.9 % Florida 9.8 % 9.0 % Texas 5.7 % 4.2 % New York 5.6 % 5.1 % The geographic concentrations of credit risk exceeding 5% of the total loan balances in our residential mortgage loans held in securitization trusts as of June 30, 2019 and December 31, 2018 are as follows: June 30, 2019 December 31, 2018 New York 34.7 % 33.9 % Massachusetts 17.6 % 20.0 % New Jersey 15.1 % 14.5 % Florida 11.2 % 9.9 % Maryland 5.4 % 5.3 % The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of our distressed residential mortgage loans, net as of June 30, 2019 and December 31, 2018 , respectively, are as follows: June 30, 2019 December 31, 2018 North Carolina 10.1 % 9.0 % Florida 9.9 % 10.4 % Georgia 7.0 % 7.2 % South Carolina 5.6 % 5.6 % Virginia 5.6 % 5.3 % Texas 5.5 % 4.9 % New York 5.4 % 5.4 % Ohio 5.2 % 5.0 % |
Schedule of Residential Mortgage Loans Held in Securitization Trusts (Net) | Residential mortgage loans held in securitization trusts, net consist of the following as of June 30, 2019 and December 31, 2018 , respectively (dollar amounts in thousands): June 30, 2019 December 31, 2018 Unpaid principal balance $ 51,986 $ 60,171 Deferred origination costs – net 334 383 Reserve for loan losses (3,521 ) (3,759 ) Total $ 48,799 $ 56,795 |
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, net for the six months ended June 30, 2019 and 2018 , respectively (dollar amounts in thousands): Six Months Ended June 30, 2019 2018 Balance at beginning of period $ 3,759 $ 4,191 Provision for (recovery of) loan losses 38 (110 ) Transfer to real estate owned (167 ) — Charge-offs (109 ) (237 ) Balance at the end of period $ 3,521 $ 3,844 |
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 as of December 31, 2018 (dollar amounts in thousands): December 31, 2018 Days Late Number of Delinquent Loans Total Unpaid Principal % of Loan Portfolio 90 + 19 $ 10,926 18.16 % June 30, 2019 (dollar amounts in thousands): June 30, 2019 Days Late Number of Delinquent Loans Total Unpaid Principal % of Loan Portfolio 30-60 1 $ 264 0.50 % 90 + 18 $ 10,384 19.85 % Real estate owned through foreclosure 1 $ 360 0.69 % |
Consolidated K-Series (Tables)
Consolidated K-Series (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in 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 distressed and other residential mortgage loans at fair value as of June 30, 2019 and December 31, 2018 , respectively, are as follows: June 30, 2019 December 31, 2018 California 23.7 % 27.9 % Florida 9.8 % 9.0 % Texas 5.7 % 4.2 % New York 5.6 % 5.1 % The geographic concentrations of credit risk exceeding 5% of the total loan balances in our residential mortgage loans held in securitization trusts as of June 30, 2019 and December 31, 2018 are as follows: June 30, 2019 December 31, 2018 New York 34.7 % 33.9 % Massachusetts 17.6 % 20.0 % New Jersey 15.1 % 14.5 % Florida 11.2 % 9.9 % Maryland 5.4 % 5.3 % The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of our distressed residential mortgage loans, net as of June 30, 2019 and December 31, 2018 , respectively, are as follows: June 30, 2019 December 31, 2018 North Carolina 10.1 % 9.0 % Florida 9.9 % 10.4 % Georgia 7.0 % 7.2 % South Carolina 5.6 % 5.6 % Virginia 5.6 % 5.3 % Texas 5.5 % 4.9 % New York 5.4 % 5.4 % Ohio 5.2 % 5.0 % |
Multi-family loans held in securitization trusts | |
SEC Schedule, 12-29, Real Estate Companies, Investment in 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 multi-family loans held in securitization trusts as of June 30, 2019 and our CMBS investments included in investment securities available for sale, held in securitization trusts, and multi-family loans held in securitization trusts as of December 31, 2018 are as follows: June 30, 2019 December 31, 2018 California 16.1 % 14.8 % Texas 12.4 % 13.0 % Maryland 5.8 % 5.0 % New York 5.1 % 6.4 % Florida 5.0 % 4.5 % |
Consolidated K-Series | |
SEC Schedule, 12-29, Real Estate Companies, Investment in 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 June 30, 2019 and December 31, 2018 , respectively, are as follows (dollar amounts in thousands): Balance Sheets June 30, 2019 December 31, 2018 Assets Multi-family loans held in securitization trusts, at fair value $ 14,573,925 $ 11,679,847 Receivables 48,958 41,850 Total Assets $ 14,622,883 $ 11,721,697 Liabilities and Equity Multi-family CDOs, at fair value $ 13,772,726 $ 11,022,248 Accrued expenses 47,921 41,102 Total Liabilities 13,820,647 11,063,350 Equity 802,236 658,347 Total Liabilities and Equity $ 14,622,883 $ 11,721,697 |
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 six months ended June 30, 2019 and 2018 , respectively, are as follows (dollar amounts in thousands): Three Months Ended Six Months Ended Statements of Operations 2019 2018 2019 2018 Interest income $ 133,157 $ 85,629 $ 244,925 $ 170,721 Interest expense 114,914 74,686 211,711 149,165 Net interest income 18,243 10,943 33,214 21,556 Unrealized gain on multi-family loans and debt held in securitization trusts, net 5,207 12,019 14,617 19,564 Net income $ 23,450 $ 22,962 $ 47,831 $ 41,120 |
Investments in Unconsolidated_2
Investments in Unconsolidated Entities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 are comprised of preferred equity ownership interests in entities that invest in multi-family properties where the risks and payment characteristics are equivalent to an equity investment and consist of the following as of June 30, 2019 and December 31, 2018 (dollar amounts in thousands): June 30, 2019 December 31, 2018 Investment Name Ownership Interest Carrying Amount Ownership Interest Carrying Amount BBA-EP320 II, L.L.C., BBA-Ten10 II, L.L.C., and Lexington on the Green Apartments, L.L.C. (collectively) 45% $ 9,503 45% $ 8,948 Somerset Deerfield Investor, LLC 45% 16,796 45% 16,266 RS SWD Owner, LLC, RS SWD Mitchell Owner, LLC, RS SWD IF Owner, LLC, RS SWD Mullis Owner, LLC, RS SWD JH Mullis Owner, LLC and RS SWD Saltzman Owner, LLC (collectively) 43% 4,792 43% 4,714 Audubon Mezzanine Holdings, L.L.C. (Series A) 57% 10,795 57% 10,544 EP 320 Growth Fund, L.L.C. (Series A) and Turnbury Park Apartments - BC, L.L.C. (Series A) (collectively) 46% 6,687 — — Walnut Creek Properties Holdings, L.L.C. 36% 8,093 — — Towers Property Holdings, LLC 37% 10,885 — — Mansions Property Holdings, LLC 34% 10,489 — — Total - Equity Method $ 78,040 $ 40,472 The Company's investments in unconsolidated entities accounted for under the equity method using the fair value option consist of the following as of June 30, 2019 and December 31, 2018 (dollar amounts in thousands): June 30, 2019 December 31, 2018 Investment Name Ownership Interest Carrying Amount Ownership Interest Carrying Amount Joint venture equity investments in multi-family properties Evergreens JV Holdings, LLC 85% $ 12,500 85% $ 8,200 The Preserve at Port Royal Venture, LLC 77% 14,260 77% 13,840 Equity investments in entities that invest in residential properties and loans Morrocroft Neighborhood Stabilization Fund II, LP 11% 11,348 11% 10,954 Headlands Asset Management Fund III (Cayman), LP (Headlands Flagship Opportunity Fund Series I) 49% 50,000 — — Total - Fair Value Option $ 88,108 $ 32,994 The following table presents income from investments in unconsolidated entities for the three and six months ended June 30, 2019 and 2018 , respectively (dollar amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, Investment Name 2019 2018 2019 2018 BBA-EP320 II, L.L.C., BBA-Ten10 II, L.L.C., and Lexington on the Green Apartments, L.L.C. (collectively) $ 287 $ 259 $ 562 $ 512 Somerset Deerfield Investor, LLC 492 — 970 — RS SWD Owner, LLC, RS SWD Mitchell Owner, LLC, RS SWD IF Owner, LLC, RS SWD Mullis Owner, LLC, RS SWD JH Mullis Owner, LLC and RS SWD Saltzman Owner, LLC (collectively) 134 — 265 — Audubon Mezzanine Holdings, L.L.C. (Series A) 304 — 601 — EP 320 Growth Fund, L.L.C. (Series A) and Turnbury Park Apartments - BC, L.L.C. (Series A) (collectively) 188 — 353 — Walnut Creek Properties Holdings, L.L.C. 231 — 328 — Towers Property Holdings, LLC 10 — 10 — Mansions Property Holdings, LLC 10 — 10 — Evergreens JV Holdings, LLC 1,289 171 4,513 365 The Preserve at Port Royal Venture, LLC 409 419 847 902 WR Savannah Holdings, LLC — 1,269 — 1,629 Morrocroft Neighborhood Stabilization Fund II, LP 163 398 395 680 |
Preferred Equity and Mezzanin_2
Preferred Equity and Mezzanine Loan Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | |
Schedule of Preferred Equity and Mezzanine Loan Investments | The geographic concentrations of credit risk exceeding 5% of the total preferred equity and mezzanine loan investment amounts as of June 30, 2019 and December 31, 2018 are as follows: June 30, 2019 December 31, 2018 Texas 17.0 % 16.6 % Tennessee 11.3 % 6.8 % Georgia 10.8 % 15.3 % Alabama 10.3 % 8.6 % Florida 10.0 % 11.3 % South Carolina 8.4 % 9.5 % Virginia 7.9 % 9.1 % P referred equity and mezzanine loan investments consist of the following as of June 30, 2019 and December 31, 2018 (dollar amounts in thousands): June 30, 2019 December 31, 2018 Investment amount $ 192,814 $ 166,789 Deferred loan fees, net (1,427 ) (1,234 ) Total $ 191,387 $ 165,555 December 31, 2018 (dollar amounts in thousands): Multi-family CMBS Re-securitization (1) Distressed Residential Mortgage Loan Securitization Principal Amount at December 31, 2018 $ 33,177 $ 12,381 Carrying Value at December 31, 2018 (2) $ 30,121 $ 12,214 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 remained economically exposed to the first loss position on the underlying multi-family CMBS transferred to the Consolidated VIE. (2) Presented net of unamortized deferred costs of $0.2 million related to the issuance of the securitized debt, which included underwriting, rating agency, legal, accounting and other fees. |
Use of Special Purpose Entiti_2
Use of Special Purpose Entities (SPE) and Variable Interest Entities (VIE) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entity [Line Items] | |
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 June 30, 2019 and December 31, 2018 , respectively (dollar amounts in thousands): June 30, 2019 December 31, 2018 Fair Value Hierarchy Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets: Cash and cash equivalents Level 1 $ 134,993 $ 134,993 $ 103,724 $ 103,724 Investment securities available for sale Level 2 or 3 1,743,869 1,743,869 1,512,252 1,512,252 Distressed and other residential mortgage loans, at fair value Level 3 1,061,954 1,061,954 737,523 737,523 Distressed and other residential mortgage loans, net Level 3 218,094 221,615 285,261 289,376 Investments in unconsolidated entities Level 3 166,148 166,983 73,466 73,833 Preferred equity and mezzanine loan investments Level 3 191,387 193,875 165,555 167,739 Multi-family loans held in securitization trusts Level 3 14,573,925 14,573,925 11,679,847 11,679,847 Derivative assets Level 2 14,047 14,047 10,263 10,263 Mortgage loans held for sale, net (1) Level 3 2,460 2,621 3,414 3,584 Mortgage loans held for investment (1) Level 3 1,580 1,580 1,580 1,580 Financial Liabilities: Repurchase agreements Level 2 2,604,356 2,604,356 2,131,505 2,131,505 Residential collateralized debt obligations Level 3 45,280 43,468 53,040 50,031 Multi-family collateralized debt obligations Level 3 13,772,726 13,772,726 11,022,248 11,022,248 Securitized debt Level 3 — — 42,335 45,030 Subordinated debentures Level 3 45,000 45,044 45,000 44,897 Convertible notes Level 2 131,839 138,773 130,762 135,689 (1) Included in receivables and other assets in the accompanying condensed consolidated balance sheets. |
Schedule of Securitized Debt Collateralized | The geographic concentrations of credit risk exceeding 5% of the total preferred equity and mezzanine loan investment amounts as of June 30, 2019 and December 31, 2018 are as follows: June 30, 2019 December 31, 2018 Texas 17.0 % 16.6 % Tennessee 11.3 % 6.8 % Georgia 10.8 % 15.3 % Alabama 10.3 % 8.6 % Florida 10.0 % 11.3 % South Carolina 8.4 % 9.5 % Virginia 7.9 % 9.1 % P referred equity and mezzanine loan investments consist of the following as of June 30, 2019 and December 31, 2018 (dollar amounts in thousands): June 30, 2019 December 31, 2018 Investment amount $ 192,814 $ 166,789 Deferred loan fees, net (1,427 ) (1,234 ) Total $ 191,387 $ 165,555 December 31, 2018 (dollar amounts in thousands): Multi-family CMBS Re-securitization (1) Distressed Residential Mortgage Loan Securitization Principal Amount at December 31, 2018 $ 33,177 $ 12,381 Carrying Value at December 31, 2018 (2) $ 30,121 $ 12,214 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 remained economically exposed to the first loss position on the underlying multi-family CMBS transferred to the Consolidated VIE. (2) Presented net of unamortized deferred costs of $0.2 million related to the issuance of the securitized debt, which included underwriting, rating agency, legal, accounting and other fees. |
Schedule of Contractual Maturities of Financing VIE's | The following table presents contractual maturity information about the Financing VIEs’ securitized debt as of December 31, 2018 (dollar amounts in thousands): Scheduled Maturity (principal amount) December 31, 2018 Within 24 months $ 12,381 Over 24 months to 36 months — Over 36 months 33,177 Total 45,558 Discount (2,983 ) Debt issuance cost (240 ) Carrying value $ 42,335 As of June 30, 2019 , maturities for debt on the Company's condensed consolidated balance sheet are as follows (dollar amounts in thousands): Year Ending December 31, Total 2019 $ 3,986 2020 — 2021 — 2022 138,000 2023 — Thereafter 45,000 $ 186,986 |
Schedule of Classification and Carrying Value of Unconsolidated VIEs [Table Text Block] | December 31, 2018 Investment securities, available for sale, at fair value, held in securitization trusts Receivables and other assets Preferred equity and mezzanine loan investments Investments in unconsolidated entities Total Multi-family CMBS $ 52,700 $ 72 $ — $ — $ 52,772 Preferred equity investments in multi-family properties — — 154,629 40,472 195,101 Mezzanine loans on multi-family properties — — 10,926 — 10,926 Equity investments in entities that invest in residential properties — — — 10,954 10,954 Total assets $ 52,700 $ 72 $ 165,555 $ 51,426 $ 269,753 June 30, 2019 and December 31, 2018 , (dollar amounts in thousands): June 30, 2019 Investment securities, available for sale, at fair value Preferred equity and mezzanine loan investments Investments in unconsolidated entities Total ABS $ 24,739 $ — $ — $ 24,739 Preferred equity investments in multi-family properties — 184,727 78,040 262,767 Mezzanine loans on multi-family properties — 6,660 — 6,660 Equity investments in entities that invest in residential properties and loans — — 61,348 61,348 Total assets $ 24,739 $ 191,387 $ 139,388 $ 355,514 |
Financing VIE | |
Variable Interest Entity [Line Items] | |
Schedule of Assets and Liabilities of Consolidated VIE's | The following table presents a summary of the assets and liabilities of the Residential CDOs, the Consolidated K-Series, and KRVI of as of June 30, 2019 . Intercompany balances have been eliminated for purposes of this presentation. Financing VIE Other VIEs Residential Mortgage Loan Securitization Consolidated K-Series Other Total Cash and cash equivalents $ — $ — $ 1,513 $ 1,513 Residential mortgage loans held in securitization trusts, net 48,799 — — 48,799 Multi-family loans held in securitization trusts, at fair value — 14,573,925 — 14,573,925 Receivables and other assets 1,302 48,958 16,984 67,244 Total assets $ 50,101 $ 14,622,883 $ 18,497 $ 14,691,481 Residential collateralized debt obligations $ 45,280 $ — $ — $ 45,280 Multi-family collateralized debt obligations, at fair value — 13,772,726 — 13,772,726 Mortgages and notes payable in consolidated variable interest entities — — 3,986 3,986 Accrued expenses and other liabilities 40 47,921 111 48,072 Total liabilities $ 45,320 $ 13,820,647 $ 4,097 $ 13,870,064 The following table presents a summary of the assets and liabilities of the Financing VIEs, the Consolidated K-Series, KRVI, and The Clusters as of December 31, 2018 . Financing VIEs Other VIEs Multi-family CMBS Re- securitization (1) Distressed Residential Mortgage Loan Securitization (2) Residential Mortgage Loan Securitization Consolidated K-Series (3) Other Total Cash and cash equivalents $ — $ — $ — $ — $ 708 $ 708 Investment securities available for sale, at fair value held in securitization trusts 52,700 — — — — 52,700 Residential mortgage loans held in securitization trusts, net — — 56,795 — — 56,795 Distressed residential mortgage loans held in securitization trusts, net — 88,096 — — — 88,096 Multi-family loans held in securitization trusts, at fair value 1,107,071 — — 10,572,776 — 11,679,847 Real estate held for sale in consolidated variable interest entities — — — — 29,704 29,704 Receivables and other assets 4,243 10,287 1,061 37,679 23,254 76,524 Total assets $ 1,164,014 $ 98,383 $ 57,856 $ 10,610,455 $ 53,666 $ 11,984,374 Residential collateralized debt obligations $ — $ — $ 53,040 $ — $ — $ 53,040 Multi-family collateralized debt obligations, at fair value 1,036,604 — — 9,985,644 — 11,022,248 Securitized debt 30,121 12,214 — — — 42,335 Mortgages and notes payable in consolidated variable interest entities — — — — 31,227 31,227 Accrued expenses and other liabilities 4,228 444 26 37,022 1,166 42,886 Total liabilities $ 1,070,953 $ 12,658 $ 53,066 $ 10,022,666 $ 32,393 $ 11,191,736 (1) The Company classified the multi-family CMBS issued by two securitizations and held by this Financing VIE as available for sale securities. The Financing VIE consolidated one securitization included in the Consolidated K-Series 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 6 ). (2) The Company engaged in this transaction for the purpose of financing certain distressed residential mortgage loans acquired by the Company. The distressed residential mortgage loans serving as collateral for the financing are comprised of re-performing and, to a lesser extent, non-performing and other delinquent mortgage loans secured by first liens on one - to four - family properties. Balances as of December 31, 2018 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 held 5% of the Class A Notes issued as part of the securitization transaction, which were eliminated in consolidation. (3) Eight of the securitizations included in the Consolidated K-Series were not held in a Financing VIE as of December 31, 2018 . |
Real Estate Held for Sale in _2
Real Estate Held for Sale in Consolidated VIEs (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Real Estate [Abstract] | |
Schedule of Provisional Summary Real Estate Held for Sale | The following is a summary of the real estate held for sale in consolidated variable interest entities as of December 31, 2018 (dollar amounts in thousands): December 31, 2018 Land $ 2,650 Building and improvements 26,032 Furniture, fixtures and equipment 974 Lease intangible 2,802 Real estate held for sale before accumulated depreciation and amortization 32,458 Accumulated depreciation (1) (418 ) Accumulated amortization of lease intangible (1) (2,336 ) Real estate held for sale in consolidated variable interest entities $ 29,704 (1) There were no depreciation and amortization expenses for the three and six months ended June 30, 2019 and 2018 . |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Instruments Not Designated | The following table presents the fair value of derivative instruments and their location in our condensed consolidated balance sheets at June 30, 2019 and December 31, 2018 , respectively (dollar amounts in thousands): Type of Derivative Instrument Balance Sheet Location June 30, 2019 December 31, 2018 Interest rate swaps (1) Derivative assets $ 14,047 $ 10,263 (1) All of the Company's interest rate swaps outstanding are cleared through a central clearing house. The Company exchanges variation margin for swaps based upon daily changes in fair value. As a result of amendments to rules governing certain central clearing activities, the exchange of variation margin is treated as a legal settlement of the exposure under the swap contract. Previously such payments were treated as cash collateral pledged against the exposure under the swap contract. Accordingly, the Company accounted for the receipt or payment of variation margin as a direct reduction to or increase of the carrying value of the interest rate swap asset or liability on the Company's condensed consolidated balance sheets. Includes $27.8 million of derivative liabilities netted against a variation margin of $41.9 million at June 30, 2019 . Includes $1.8 million of derivative assets and variation margin of $8.5 million at December 31, 2018 . |
Schedule Of Derivative Instruments Volume Activity | The tables below summarize the activity of derivative instruments not designated as hedges for the six months ended June 30, 2019 and 2018 , respectively (dollar amounts in thousands): Notional Amount For the Six Months Ended June 30, 2019 Type of Derivative Instrument December 31, 2018 Additions Settlement, Expiration or Exercise June 30, 2019 Interest rate swaps $ 495,500 $ — $ — $ 495,500 Notional Amount For the Six Months Ended June 30, 2018 Type of Derivative Instrument December 31, 2017 Additions Settlement, Expiration or Exercise June 30, 2018 Interest rate swaps $ 345,500 $ 50,000 $ — $ 395,500 |
Schedule of Components of Realized and Unrealized Gains and Losses | The following table presents 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 six months ended June 30, 2019 and 2018 (dollar amounts in thousands): Three Months Ended June 30, 2019 2018 Realized Gains (Losses) Unrealized Gains (Losses) Realized Gains (Losses) Unrealized Gains (Losses) Interest rate swaps $ — $ (15,007 ) $ — $ 5,135 Total $ — $ (15,007 ) $ — $ 5,135 Six Months Ended June 30, 2019 2018 Realized Gains (Losses) Unrealized Gains (Losses) Realized Gains (Losses) Unrealized Gains (Losses) Interest rate swaps $ — $ (29,593 ) $ — $ 14,103 Total $ — $ (29,593 ) $ — $ 14,103 |
Schedule of Interest Rate Swaps, Variable and Fixed Interest Rates | The following table presents information about our interest rate swaps whereby we receive floating rate payments in exchange for fixed rate payments as of June 30, 2019 and December 31, 2018 , respectively (dollar amounts in thousands): June 30, 2019 December 31, 2018 Swap Maturities Notional Amount Weighted Average Fixed Interest Rate Weighted Average Notional Amount Weighted Average Fixed Interest Rate Weighted Average 2024 $ 98,000 2.18 % 2.59 % $ 98,000 2.18 % 2.45 % 2027 247,500 2.39 % 2.57 % 247,500 2.39 % 2.53 % 2028 150,000 3.23 % 2.57 % 150,000 3.23 % 2.53 % Total $ 495,500 2.60 % 2.57 % $ 495,500 2.60 % 2.52 % |
Repurchase Agreements (Tables)
Repurchase Agreements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 these repurchase agreements and associated distressed and other residential mortgage loans pledged as collateral at June 30, 2019 and December 31, 2018 (dollar amounts in thousands): Maximum Aggregate Uncommitted Principal Amount Outstanding Repurchase Agreements Carrying Value of Loans Pledged (1) Weighted Average Rate Weighted Average Months to Maturity June 30, 2019 $ 950,000 $ 761,361 $ 891,664 4.43 % 7.01 December 31, 2018 $ 950,000 $ 589,148 $ 754,352 4.67 % 9.24 (1) Includes distressed and other residential mortgage loans at fair value of $806.6 million and $626.2 million and distressed and other residential mortgage loans, net of $85.1 million and $128.1 million at June 30, 2019 and December 31, 2018 , respectively. The following table presents detailed information about the Company’s borrowings under repurchase agreements secured by investment securities and associated assets pledged as collateral at June 30, 2019 and December 31, 2018 (dollar amounts in thousands): June 30, 2019 December 31, 2018 Outstanding Repurchase Agreements Fair Value of Collateral Pledged Amortized Cost of Collateral Pledged Outstanding Repurchase Agreements Fair Value of Collateral Pledged Amortized Cost of Collateral Pledged Agency ARMs RMBS $ 58,802 $ 62,295 $ 64,004 $ 67,648 $ 70,747 $ 73,290 Agency Fixed-rate RMBS 812,811 858,359 863,160 857,582 907,610 940,994 Non-Agency RMBS 172,108 234,583 232,657 88,730 117,958 118,414 CMBS (1) 800,094 1,001,725 769,395 529,617 687,876 539,788 Balance at end of the period $ 1,843,815 $ 2,156,962 $ 1,929,216 $ 1,543,577 $ 1,784,191 $ 1,672,486 (1) Includes first loss PO, IO and mezzanine CMBS securities with a fair value amounting to $755.3 million and $543.0 million included in the Consolidated K-Series as of June 30, 2019 and December 31, 2018 , respectively. |
Schedule of Contractual Maturities of Outstanding Financing Arrangements | The following table presents contractual maturity information about the Company’s outstanding repurchase agreements secured by investment securities at June 30, 2019 and December 31, 2018 (dollar amounts in thousands): Contractual Maturity June 30, 2019 December 31, 2018 Within 30 days $ 240,210 $ 732,051 Over 30 days to 90 days 1,188,847 677,906 Over 90 days 414,758 133,620 Total $ 1,843,815 $ 1,543,577 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Subordinated Borrowing | The following table summarizes the key details of the Company’s subordinated debentures as of June 30, 2019 and December 31, 2018 (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 as of June 30, 2019 are described below (dollar amounts in thousands): Mortgage Note Amount as of Assumption/Origination Date June 30, 2019 Maturity Date Interest Rate Net Deferred Finance Costs KRVI 12/16/2016 $ 3,986 12/16/2019 7.00 % $ — |
Schedule of Maturities of Long-term Debt | The following table presents contractual maturity information about the Financing VIEs’ securitized debt as of December 31, 2018 (dollar amounts in thousands): Scheduled Maturity (principal amount) December 31, 2018 Within 24 months $ 12,381 Over 24 months to 36 months — Over 36 months 33,177 Total 45,558 Discount (2,983 ) Debt issuance cost (240 ) Carrying value $ 42,335 As of June 30, 2019 , maturities for debt on the Company's condensed consolidated balance sheet are as follows (dollar amounts in thousands): Year Ending December 31, Total 2019 $ 3,986 2020 — 2021 — 2022 138,000 2023 — Thereafter 45,000 $ 186,986 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and December 31, 2018 , respectively, on the Company’s condensed consolidated balance sheets (dollar amounts in thousands): Measured at Fair Value on a Recurring Basis at June 30, 2019 December 31, 2018 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 $ — $ 994,200 $ — $ 994,200 $ — $ 1,037,730 $ — $ 1,037,730 Non-Agency RMBS — 432,840 — 432,840 — 214,037 — 214,037 CMBS — 292,090 — 292,090 — 207,785 52,700 260,485 ABS — 24,739 — 24,739 — — — — Multi-family loans held in securitization trusts — — 14,573,925 14,573,925 — — 11,679,847 11,679,847 Distressed and other residential mortgage loans, at fair value — — 1,061,954 1,061,954 — — 737,523 737,523 Derivative assets: Interest rate swaps (1) — 14,047 — 14,047 — 10,263 — 10,263 Investments in unconsolidated entities — — 88,108 88,108 — — 32,994 32,994 Total $ — $ 1,757,916 $ 15,723,987 $ 17,481,903 $ — $ 1,469,815 $ 12,503,064 $ 13,972,879 Liabilities carried at fair value Multi-family collateralized debt obligations $ — $ — $ 13,772,726 $ 13,772,726 $ — $ — $ 11,022,248 $ 11,022,248 Total $ — $ — $ 13,772,726 $ 13,772,726 $ — $ — $ 11,022,248 $ 11,022,248 (1) All of the Company's interest rate swaps outstanding are cleared through a central clearing house. The Company exchanges variation margin for swaps based upon daily changes in fair value. Includes derivative liabilities of $27.8 million netted against a variation margin of $41.9 million at June 30, 2019 . Includes derivative assets of $1.8 million and variation margin of $8.5 million at December 31, 2018 . |
Changes in Valuation of Level 3 Assets | (1) All of the Company's interest rate swaps outstanding are cleared through a central clearing house. The Company exchanges variation margin for swaps based upon daily changes in fair value. Includes derivative liabilities of $27.8 million netted against a variation margin of $41.9 million at June 30, 2019 . Includes derivative assets of $1.8 million and variation margin of $8.5 million at December 31, 2018 . The following tables detail changes in valuation for the Level 3 assets for the six months ended June 30, 2019 and 2018 , respectively (amounts in thousands): Level 3 Assets: Six Months Ended June 30, 2019 Multi-family loans held in securitization trusts Distressed and other residential mortgage loans Investments in unconsolidated entities CMBS held in securitization trusts Total Balance at beginning of period $ 11,679,847 $ 737,523 $ 32,994 $ 52,700 $ 12,503,064 Total gains/(losses) (realized/unrealized) Included in earnings 574,231 25,359 5,753 17,734 623,077 Included in other comprehensive income (loss) — — — (13,665 ) (13,665 ) Transfers in — — — — — Transfers out — (182 ) — — (182 ) Contributions — — 50,000 — 50,000 Paydowns/Distributions (106,363 ) (61,275 ) (639 ) — (168,277 ) Sales — (19,814 ) — (56,769 ) (76,583 ) Purchases (1) 2,426,210 380,343 — — 2,806,553 Balance at the end of period $ 14,573,925 $ 1,061,954 $ 88,108 $ — $ 15,723,987 (1) During the six months ended June 30, 2019 , the Company purchased first loss PO securities and certain IOs and mezzanine CMBS securities issued from securitizations that it determined to consolidate and included in the Consolidated K-Series. As a result, the Company consolidated assets of these securitizations in the amount of $2.4 billion during the six months ended June 30, 2019 ( see Notes 2 and 6 |
Changes in Valuation of Level 3 Liabilities | Six Months Ended June 30, 2018 Multi-family loans held in securitization trusts Distressed and other residential mortgage loans Investments in unconsolidated entities CMBS held in securitization trusts Total Balance at beginning of period $ 9,657,421 $ 87,153 $ 42,823 $ 47,922 $ 9,835,319 Total (losses)/gains (realized/unrealized) Included in earnings (244,181 ) (475 ) 3,575 1,915 (239,166 ) Included in other comprehensive income (loss) — — — 297 297 Transfers in — — — — — Transfers out — — — — — Contributions — — — — — Paydowns/Distributions (67,880 ) (9,371 ) (1,246 ) — (78,497 ) Sales — (2,185 ) — — (2,185 ) Purchases — 94,075 — — 94,075 Balance at the end of period $ 9,345,360 $ 169,197 $ 45,152 $ 50,134 $ 9,609,843 The following table details changes in valuation for the Level 3 liabilities (Multi-family CDOs) for the six months ended June 30, 2019 and 2018 , respectively (amounts in thousands): Level 3 Liabilities: Six Months Ended June 30, 2019 2018 Balance at beginning of period $ 11,022,248 $ 9,189,459 Total losses (gains) (realized/unrealized) Included in earnings (1) 531,930 (282,738 ) Purchases (2) 2,324,639 — Paydowns (106,091 ) (67,880 ) Balance at the end of period $ 13,772,726 $ 8,838,841 (1) Amounts included in interest expense on Multi-Family CDOs and unrealized gain on multi-family loans and debt held in securitization trusts. (2) During the six months ended June 30, 2019 , the Company purchased PO securities and certain IOs and mezzanine CMBS securities issued from securitizations that it determined to consolidate and include in the Consolidated K-Series. As a result, the Company consolidated liabilities of these securitizations in the amount of $2.3 billion ( see Notes 2 and 6 |
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 the three and six months ended June 30, 2019 and 2018 for our Level 3 assets and liabilities held as of June 30, 2019 and 2018 , respectively (dollar amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Assets Multi-family loans held in securitization trusts (1) $ 330,105 $ (47,200 ) $ 604,788 $ (219,746 ) Investments in unconsolidated entities (2) 1,698 1,858 5,359 2,896 Distressed and other residential mortgage loans, at fair value (3) 10,329 (34 ) 19,666 (126 ) Liabilities Multi-family debt held in securitization trusts (1) (324,898 ) 59,219 (590,171 ) 239,310 (1) Presented in unrealized gain on multi-family loans and debt held in securitization trusts, net on the Company's condensed consolidated statements of operations. (2) Presented in other income on the Company's condensed consolidated statements of operations. (3) Presented in net gain (loss) on distressed and other residential mortgage loans at fair value on the Company's condensed consolidated statements of operations. |
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 June 30, 2019 and December 31, 2018 , respectively, on the Company's condensed consolidated balance sheets (dollar amounts in thousands): Assets Measured at Fair Value on a Non-Recurring Basis at June 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Residential mortgage loans held in securitization trusts – impaired loans, net — — $ 5,590 $ 5,590 — — $ 5,921 $ 5,921 |
Schedule of Gains (Losses) Incurred for Assets Measured at Fair Value on a Non-recurring Basis | The following table presents gains (losses) incurred for assets measured at fair value on a non-recurring basis for the three and six months ended June 30, 2019 and 2018 , respectively, on the Company’s condensed consolidated statements of operations (dollar amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Residential mortgage loans held in securitization trusts – impaired loans, net — — $ (38 ) $ 110 |
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 June 30, 2019 and December 31, 2018 , respectively (dollar amounts in thousands): June 30, 2019 December 31, 2018 Fair Value Hierarchy Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets: Cash and cash equivalents Level 1 $ 134,993 $ 134,993 $ 103,724 $ 103,724 Investment securities available for sale Level 2 or 3 1,743,869 1,743,869 1,512,252 1,512,252 Distressed and other residential mortgage loans, at fair value Level 3 1,061,954 1,061,954 737,523 737,523 Distressed and other residential mortgage loans, net Level 3 218,094 221,615 285,261 289,376 Investments in unconsolidated entities Level 3 166,148 166,983 73,466 73,833 Preferred equity and mezzanine loan investments Level 3 191,387 193,875 165,555 167,739 Multi-family loans held in securitization trusts Level 3 14,573,925 14,573,925 11,679,847 11,679,847 Derivative assets Level 2 14,047 14,047 10,263 10,263 Mortgage loans held for sale, net (1) Level 3 2,460 2,621 3,414 3,584 Mortgage loans held for investment (1) Level 3 1,580 1,580 1,580 1,580 Financial Liabilities: Repurchase agreements Level 2 2,604,356 2,604,356 2,131,505 2,131,505 Residential collateralized debt obligations Level 3 45,280 43,468 53,040 50,031 Multi-family collateralized debt obligations Level 3 13,772,726 13,772,726 11,022,248 11,022,248 Securitized debt Level 3 — — 42,335 45,030 Subordinated debentures Level 3 45,000 45,044 45,000 44,897 Convertible notes Level 2 131,839 138,773 130,762 135,689 (1) Included in receivables and other assets in the accompanying condensed consolidated balance sheets. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Class of Stock [Line Items] | |
Schedule of Public Offering Of Common Stock | The following table details the Company's public offering of common stock during the six months ended June 30, 2019 (dollar amounts in thousands): Share Issue Month Shares Issued Net Proceeds (1) January 2019 14,490,000 $ 83,772 March 2019 17,250,000 101,160 May 2019 20,700,000 123,102 |
Preferred Stock | |
Class of Stock [Line Items] | |
Schedule of Dividends Declared | The following table presents the relevant dates with respect to such quarterly cash dividends declared on the Preferred Stock commencing January 1, 2018 through June 30, 2019 : Cash Dividend Per Share Declaration Date Record Date Payment Date Series B Preferred Stock Series C Preferred Stock Series D Preferred Stock June 14, 2019 July 1, 2019 July 15, 2019 $ 0.484375 $ 0.4921875 $ 0.50 March 19, 2019 April 1, 2019 April 15, 2019 0.484375 0.4921875 0.50 December 4, 2018 January 1, 2019 January 15, 2019 0.484375 0.4921875 0.50 September 17, 2018 October 1, 2018 October 15, 2018 0.484375 0.4921875 0.50 June 18, 2018 July 1, 2018 July 15, 2018 0.484375 0.4921875 0.50 March 19, 2018 April 1, 2018 April 15, 2018 0.484375 0.4921875 0.50 |
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, 2018 and ended June 30, 2019 : Period Declaration Date Record Date Payment Date Cash Dividend Per Share Second Quarter 2019 June 14, 2019 June 24, 2019 July 25, 2019 $ 0.20 First Quarter 2019 March 19, 2019 March 29, 2019 April 25, 2019 0.20 Fourth Quarter 2018 December 4, 2018 December 14, 2018 January 25, 2019 0.20 Third Quarter 2018 September 17, 2018 September 27, 2018 October 26, 2018 0.20 Second Quarter 2018 June 18, 2018 June 28, 2018 July 26, 2018 0.20 First Quarter 2018 March 19, 2018 March 29, 2018 April 26, 2018 0.20 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 (1) Basic Earnings per Common Share Net income attributable to Company $ 22,735 $ 29,694 $ 66,874 $ 59,311 Less: Preferred stock dividends (6,257 ) (5,925 ) (12,182 ) (11,850 ) Net income attributable to Company's common stockholders $ 16,478 $ 23,769 $ 54,692 $ 47,461 Basic weighted average common shares outstanding 200,691 115,211 187,628 113,623 Basic Earnings per Common Share $ 0.08 $ 0.21 $ 0.29 $ 0.42 Diluted Earnings per Common Share: Net income attributable to Company $ 22,735 $ 29,694 $ 66,874 $ 59,311 Less: Preferred stock dividends (6,257 ) (5,925 ) (12,182 ) (11,850 ) Add back: Interest expense on convertible notes for the period, net of tax — 2,633 5,307 5,267 Net income attributable to Company's common stockholders $ 16,478 $ 26,402 $ 59,999 $ 52,728 Weighted average common shares outstanding 200,691 115,211 187,628 113,623 Net effect of assumed convertible notes conversion to common shares — 19,695 19,695 19,695 Net effect of assumed PSUs vested 1,707 258 1,688 152 Diluted weighted average common shares outstanding 202,398 135,164 209,011 133,470 Diluted Earnings per Common Share $ 0.08 $ 0.20 $ 0.29 $ 0.40 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Nonvested Restricted Stock Activity | A summary of the activity of the Company's non-vested restricted stock collectively under the 2010 Plan and 2017 Plan for the six months ended June 30, 2019 and 2018 , respectively, is presented below: 2019 2018 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 1 507,536 $ 5.91 422,928 $ 6.36 Granted 536,242 6.30 206,597 5.57 Vested (205,080 ) 5.85 (200,064 ) 6.55 Forfeited — — (5,120 ) 6.25 Non-vested shares as of June 30 838,698 $ 6.18 424,341 $ 5.90 Restricted stock granted during the period 536,242 $ 6.30 206,597 $ 5.57 (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. |
Schedule of PSU Award Activity | A summary of the activity of the target PSU Awards under the 2017 Plan for the six months ended June 30, 2019 and 2018 , respectively, is presented below: 2019 2018 Number of Non-vested Target Shares Weighted Average Per Share Grant Date Fair Value Number of Non-vested Target Shares Weighted Average Per Share Grant Date Fair Value Non-vested target PSUs at January 1 842,792 $ 4.20 — $ — Granted 1,175,726 4.01 653,365 4.08 Vested — — — — Non-vested target PSUs as of June 30 2,018,518 $ 4.09 653,365 $ 4.08 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provision | The income tax provision for the three and six months ended June 30, 2019 and 2018 , respectively, is comprised of the following components (dollar amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Current income tax expense $ 15 $ 7 $ 8 $ 7 Deferred income tax benefit (149 ) (20 ) (68 ) (99 ) Total benefit $ (134 ) $ (13 ) $ (60 ) $ (92 ) |
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 June 30, 2019 and December 31, 2018 are as follows (dollar amounts in thousands): June 30, 2019 December 31, 2018 Deferred tax assets Net operating loss carryforward $ 3,213 $ 2,416 Capital loss carryover 1,173 739 GAAP/Tax basis differences 4,073 3,903 Total deferred tax assets (1) 8,459 7,058 Deferred tax liabilities Deferred tax liabilities 5 6 Total deferred tax liabilities (2) 5 6 Valuation allowance (1) (7,403 ) (6,069 ) Total net deferred tax asset $ 1,051 $ 983 (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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Adoption of Accounting Standards Codification Topic 842 Leases (Details) - ASU 2016-02 $ in Millions | Jan. 01, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating Lease right-of-use assets | $ 9.8 |
Operating lease liabilities | $ 10.1 |
Investment Securities Availab_3
Investment Securities Available for Sale - Schedule of Available for Sale Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | $ 1,732,866 | $ 1,534,389 |
Unrealized Gains | 21,769 | 17,989 |
Unrealized Losses | (10,766) | (40,126) |
Fair Value | 1,743,869 | 1,512,252 |
Agency ARMs | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 64,230 | 73,949 |
Unrealized Gains | 20 | 8 |
Unrealized Losses | (1,731) | (2,563) |
Fair Value | $ 62,519 | 71,394 |
Weighted average reset period | 28 months | |
Agency ARMs | Freddie Mac | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | $ 24,618 | 26,338 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (733) | (1,052) |
Fair Value | 23,885 | 25,286 |
Agency ARMs | Fannie Mae | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 36,379 | 43,984 |
Unrealized Gains | 20 | 8 |
Unrealized Losses | (895) | (1,384) |
Fair Value | 35,504 | 42,608 |
Agency ARMs | Ginnie Mae | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 3,233 | 3,627 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (103) | (127) |
Fair Value | 3,130 | 3,500 |
Agency Fixed- Rate | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 938,478 | 1,002,057 |
Unrealized Gains | 1,730 | 0 |
Unrealized Losses | (8,527) | (35,721) |
Fair Value | 931,681 | 966,336 |
Agency Fixed- Rate | Freddie Mac | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 82,165 | 87,018 |
Unrealized Gains | 650 | 0 |
Unrealized Losses | (502) | (2,526) |
Fair Value | 82,313 | 84,492 |
Agency Fixed- Rate | Fannie Mae | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 856,313 | 915,039 |
Unrealized Gains | 1,080 | 0 |
Unrealized Losses | (8,025) | (33,195) |
Fair Value | 849,368 | 881,844 |
Agency RMBS | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 1,002,708 | 1,076,006 |
Unrealized Gains | 1,750 | 8 |
Unrealized Losses | (10,258) | (38,284) |
Fair Value | 994,200 | 1,037,730 |
Non-Agency RMBS | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 428,443 | 215,337 |
Unrealized Gains | 4,719 | 166 |
Unrealized Losses | (322) | (1,466) |
Fair Value | $ 432,840 | 214,037 |
Weighted average reset period | 5 months | |
Purchases not yet settled included in accrued expenses and other liabiiities | $ 3,100 | |
CMBS | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 276,947 | 243,046 |
Unrealized Gains | 15,300 | 17,815 |
Unrealized Losses | (157) | (376) |
Fair Value | $ 292,090 | 260,485 |
Weighted average reset period | 1 month | |
CMBS | Available-for-sale securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Investment securities, available for sale held in securitization trusts | 52,700 | |
ABS | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | $ 24,768 | 0 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (29) | 0 |
Fair Value | $ 24,739 | $ 0 |
Investment Securities Availab_4
Investment Securities Available for Sale - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Schedule of Investments [Line Items] | |||||
Proceeds from sales of investment securities | $ 16,800,000 | $ 56,800,000 | $ 26,900,000 | ||
Realized net (loss) gain on sales of investment securities available for sale | (8,800,000) | $ 16,800,000 | (12,300,000) | ||
Contractual maturities (up to) | 40 years | ||||
Weighted average life of available for sale securities portfolio | 10 years 2 months 12 days | 5 years 8 months 12 days | |||
Gross unrealized losses | $ 10,766,000 | $ 10,766,000 | $ 40,126,000 | ||
Other-than-temporary impairment recorded in earnings | 0 | $ 0 | 0 | $ 0 | |
Agency RMBS | |||||
Schedule of Investments [Line Items] | |||||
Gross unrealized losses | 10,258,000 | 10,258,000 | 38,284,000 | ||
Non-Agency RMBS | |||||
Schedule of Investments [Line Items] | |||||
Gross unrealized losses | 322,000 | 322,000 | 1,466,000 | ||
CMBS | |||||
Schedule of Investments [Line Items] | |||||
Gross unrealized losses | $ 157,000 | $ 157,000 | $ 376,000 |
Investment Securities Availab_5
Investment Securities Available for Sale - Weighted Average Lives for Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
0 to 5 years | $ 670,546 | $ 456,947 |
Over 5 to 10 years | 733,319 | 1,043,369 |
10 years | 340,004 | 11,936 |
Total | $ 1,743,869 | $ 1,512,252 |
Investment Securities Availab_6
Investment Securities Available for Sale - Schedule of Investment Securities Available for Sale in Unrealized Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Carrying Value Less Than 12 Months | $ 92,952 | $ 573,470 |
Gross Unrealized Losses Less Than 12 Months | (495) | (9,864) |
Carrying Value Greater Than 12 Months | 617,587 | 726,186 |
Gross Unrealized Losses Greater Than 12 Months | (10,271) | (30,262) |
Carrying Value | 710,539 | 1,299,656 |
Gross Unrealized Losses | (10,766) | (40,126) |
Agency RMBS | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Carrying Value Less Than 12 Months | 0 | 310,783 |
Gross Unrealized Losses Less Than 12 Months | 0 | (8,037) |
Carrying Value Greater Than 12 Months | 617,454 | 726,028 |
Gross Unrealized Losses Greater Than 12 Months | (10,258) | (30,247) |
Carrying Value | 617,454 | 1,036,811 |
Gross Unrealized Losses | (10,258) | (38,284) |
Non-Agency RMBS | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Carrying Value Less Than 12 Months | 36,903 | 187,395 |
Gross Unrealized Losses Less Than 12 Months | (309) | (1,451) |
Carrying Value Greater Than 12 Months | 133 | 158 |
Gross Unrealized Losses Greater Than 12 Months | (13) | (15) |
Carrying Value | 37,036 | 187,553 |
Gross Unrealized Losses | (322) | (1,466) |
CMBS | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Carrying Value Less Than 12 Months | 31,310 | 75,292 |
Gross Unrealized Losses Less Than 12 Months | (157) | (376) |
Carrying Value Greater Than 12 Months | 0 | 0 |
Gross Unrealized Losses Greater Than 12 Months | 0 | 0 |
Carrying Value | 31,310 | 75,292 |
Gross Unrealized Losses | (157) | $ (376) |
ABS | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Carrying Value Less Than 12 Months | 24,739 | |
Gross Unrealized Losses Less Than 12 Months | (29) | |
Carrying Value Greater Than 12 Months | 0 | |
Gross Unrealized Losses Greater Than 12 Months | 0 | |
Carrying Value | 24,739 | |
Gross Unrealized Losses | $ (29) |
Distressed and Other Resident_5
Distressed and Other Residential Mortgage Loans, At Fair Value - Residential Mortgage Loans at Fair Value (Details) - First And Second Mortgage - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal | $ 1,110,163 | $ 788,372 |
Premium/(Discount) | (70,026) | (54,905) |
Unrealized Gains/(Losses) | 21,817 | 4,056 |
Carrying Value | $ 1,061,954 | $ 737,523 |
Distressed and Other Resident_6
Distressed and Other Residential Mortgage Loans, At Fair Value - Components of Net Gain (Loss) on Residential Mortgages (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | ||||
Net realized gain on payoff and sale of loans | $ 2,394 | $ 330 | $ 5,519 | $ 369 |
Net unrealized gains (losses) | $ 9,877 | $ (233) | $ 17,762 | $ (439) |
Distressed and Other Resident_7
Distressed and Other Residential Mortgage Loans, At Fair Value - Concentration of Risk (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Florida | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 10.00% | 11.30% |
Texas | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 17.00% | 16.60% |
Geographic Concentration Risk | Residential mortgage loans, at fair value | California | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 23.70% | 27.90% |
Geographic Concentration Risk | Residential mortgage loans, at fair value | Florida | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 9.80% | 9.00% |
Geographic Concentration Risk | Residential mortgage loans, at fair value | Texas | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 5.70% | 4.20% |
Geographic Concentration Risk | Residential mortgage loans, at fair value | New York | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 5.60% | 5.10% |
Distressed and Other Resident_8
Distressed and Other Residential Mortgage Loans, At Fair Value - Differences Between Fair Value and Aggregate Unpaid Principal (Details) - 90 days past due - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Fair Value | $ 58,628 | $ 60,117 |
Unpaid Principal Balance | $ 73,120 | $ 75,167 |
Distressed and Other Resident_9
Distressed and Other Residential Mortgage Loans, At Fair Value - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Distressed Residential Loans And Second Mortgages | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans pledged as collateral | $ 806.6 | $ 626.2 |
Distressed and Other Residen_10
Distressed and Other Residential Mortgage Loans, Net - Narrative (Details) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Allowance for loan losses | $ 3,521,000 | $ 3,759,000 | $ 3,844,000 | $ 4,191,000 |
Allowance for loan losses, basis points | 6.77% | 6.25% | ||
CDOs outstanding | $ 4,800,000 | $ 4,800,000 | ||
Residential Mortgage Loans Held in Securitization Trusts and Real Estate Owned Held in Residential Securitization | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Number of delinquent loans | loan | 19 | 19 | ||
Principal amount of delinquent loans | $ 10,600,000 | $ 10,900,000 | ||
Residential Mortgage Loans Held in Securitization Trusts and Real Estate Owned Held in Residential Securitization | Payment Deferral | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Principal amount of delinquent loans | $ 6,500,000 | $ 6,600,000 | ||
Delinquent loans under modified payment, percent | 61.00% | 61.00% | ||
Distressed residential mortgage loans | Residential Mortgage | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Loans pledged as collateral, carrying value | $ 85,100,000 | $ 128,100,000 | ||
Distressed residential mortgage loans | Residential Mortgage | Deutsche Bank AG, Cayman Islands Branch | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Loans pledged as collateral, carrying value | 85,100,000 | 128,100,000 | ||
Distressed residential mortgage loans held in securitization trusts, net | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Distressed residential mortgage loans held in securitization trusts, carrying amount | 0 | 88,100,000 | ||
Financial Asset Acquired with Credit Deterioration | Distressed residential mortgage loans | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Distressed residential mortgage loans held in securitization trusts, carrying amount | $ 169,300,000 | $ 228,500,000 |
Distressed and Other Residen_11
Distressed and Other Residential Mortgage Loans, Net - Schedule of Accretable Yield (Details) - Distressed residential mortgage loans - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at beginning of period | $ 195,560 | $ 303,949 |
Additions | 2,369 | 3,314 |
Disposals | (45,004) | (37,665) |
Accretion | (2,370) | (8,074) |
Balance at end of period | $ 150,555 | $ 261,524 |
Distressed and Other Residen_12
Distressed and Other Residential Mortgage Loans, Net - Schedule of Geographic Concentrations of Credit Risk of Unpaid Principal Balances (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
North Carolina | Distressed residential mortgage loans held in securitization trusts, net | Geographic Concentration Risk | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 10.10% | 9.00% |
Florida | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 10.00% | 11.30% |
Florida | Distressed residential mortgage loans held in securitization trusts, net | Geographic Concentration Risk | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 9.90% | 10.40% |
Georgia | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 10.80% | 15.30% |
Georgia | Distressed residential mortgage loans held in securitization trusts, net | Geographic Concentration Risk | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 7.00% | 7.20% |
South Carolina | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 8.40% | 9.50% |
South Carolina | Distressed residential mortgage loans held in securitization trusts, net | Geographic Concentration Risk | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 5.60% | 5.60% |
Virginia | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 7.90% | 9.10% |
Virginia | Distressed residential mortgage loans held in securitization trusts, net | Geographic Concentration Risk | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 5.60% | 5.30% |
Texas | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 17.00% | 16.60% |
Texas | Distressed residential mortgage loans held in securitization trusts, net | Geographic Concentration Risk | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 5.50% | 4.90% |
New York | Distressed residential mortgage loans held in securitization trusts, net | Geographic Concentration Risk | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 5.40% | 5.40% |
Ohio | Distressed residential mortgage loans held in securitization trusts, net | Geographic Concentration Risk | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 5.20% | 5.00% |
Distressed and Other Residen_13
Distressed and Other Residential Mortgage Loans, Net - Residential Mortgage Loans Held in Securitization Trusts, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | ||
Unpaid principal balance | $ 51,986 | $ 60,171 |
Deferred origination costs – net | 334 | 383 |
Reserve for loan losses | (3,521) | (3,759) |
Total | $ 48,799 | $ 56,795 |
Distressed and Other Residen_14
Distressed and Other Residential Mortgage Loans, Net - Allowance for Loan Losses on Residential Mortgage Loans Held in Securitization Trusts (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | $ 3,759 | $ 4,191 |
Provision for (recovery of) loan losses | 38 | (110) |
Transfer to real estate owned | (167) | 0 |
Charge-offs | (109) | (237) |
Balance at the end of period | $ 3,521 | $ 3,844 |
Distressed and Other Residen_15
Distressed and Other Residential Mortgage Loans, Net - Delinquencies in Portfolio of Residential Mortgage Loans Held in Securitization Trusts (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Financing Receivable, Past Due [Line Items] | ||
Real estate owned through foreclosure, Number of Delinquent Loans | loan | 1 | |
Real estate owned through foreclosure, Total Unpaid Principal | $ | $ 360 | |
Real estate owned through foreclosure, % of Loan Portfolio | 0.69% | |
30-60 | ||
Financing Receivable, Past Due [Line Items] | ||
Number of Delinquent Loans | loan | 1 | |
Total Unpaid Principal | $ | $ 264 | |
% of Loan Portfolio | 0.50% | |
90 | ||
Financing Receivable, Past Due [Line Items] | ||
Number of Delinquent Loans | loan | 18 | 19 |
Total Unpaid Principal | $ | $ 10,384 | $ 10,926 |
% of Loan Portfolio | 19.85% | 18.16% |
Distressed and Other Residen_16
Distressed and Other Residential Mortgage Loans, Net - Schedule of Geographic Concentrations of Credit Risk Exceeding 5% of Total Loan Balances (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Florida | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 10.00% | 11.30% |
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 | 34.70% | 33.90% |
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 | 17.60% | 20.00% |
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 | 15.10% | 14.50% |
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 | 11.20% | 9.90% |
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 | 5.40% | 5.30% |
Consolidated K-Series - Narrati
Consolidated K-Series - Narrative (Details) $ in Millions | Jun. 30, 2019USD ($)securitization | Dec. 31, 2018USD ($)securitization |
Multi-family loans held in securitization trusts | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 13,700 | $ 11,500 |
Multi-family collateralized debt obligations, at fair value | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 13,700 | $ 11,500 |
Weighted average interest rate | 4.14% | 3.96% |
Consolidated K-Series | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
K-Series, carrying value | $ 801.2 | $ 657.6 |
Consolidated K-Series | Freddie Mac Multi-family loan K-Series | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Number of securitizations | securitization | 11 | 9 |
Consolidated K-Series - Condens
Consolidated K-Series - Condensed Balance Sheet of Consolidated K-Series (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Assets | |||||||
Multi-family loans held in securitization trusts, at fair value | $ 14,573,925 | $ 11,679,847 | |||||
Total Assets | [1] | 18,265,484 | 14,737,638 | ||||
Liabilities and Equity | |||||||
Total Liabilities | [1] | 16,737,802 | 13,557,345 | ||||
Equity | 1,527,682 | $ 1,379,452 | 1,180,293 | $ 1,016,201 | $ 950,787 | $ 976,001 | |
Total Liabilities and Stockholders' Equity | 18,265,484 | 14,737,638 | |||||
Consolidated K-Series | |||||||
Assets | |||||||
Multi-family loans held in securitization trusts, at fair value | 14,573,925 | 11,679,847 | |||||
Receivables | 48,958 | 41,850 | |||||
Total Assets | 14,622,883 | 11,721,697 | |||||
Liabilities and Equity | |||||||
Multi-family CDOs, at fair value | 13,772,726 | 11,022,248 | |||||
Accrued expenses | 47,921 | 41,102 | |||||
Total Liabilities | 13,820,647 | 11,063,350 | |||||
Equity | 802,236 | 658,347 | |||||
Total Liabilities and Stockholders' Equity | $ 14,622,883 | $ 11,721,697 | |||||
[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 June 30, 2019 and December 31, 2018 , assets of consolidated VIEs totaled $14,691,481 and $11,984,374 , respectively, and the liabilities of consolidated VIEs totaled $13,870,064 and $11,191,736 , respectively. See Note 9 for further discussion. |
Consolidated K-Series - Conde_2
Consolidated K-Series - Condensed Statement of Operations of Consolidated K-Series (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Income Statements, Captions [Line Items] | ||||
Interest expense | $ 141,567 | $ 90,223 | $ 263,344 | $ 179,363 |
NET INTEREST INCOME | 25,691 | 17,500 | 51,896 | 37,251 |
Unrealized gain on multi-family loans and debt held in securitization trusts, net | 5,207 | 12,019 | 14,617 | 19,564 |
NET INCOME ATTRIBUTABLE TO COMPANY | 22,735 | 29,694 | 66,874 | 59,311 |
Consolidated K-Series | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Interest income | 133,157 | 85,629 | 244,925 | 170,721 |
Interest expense | 114,914 | 74,686 | 211,711 | 149,165 |
NET INTEREST INCOME | 18,243 | 10,943 | 33,214 | 21,556 |
Unrealized gain on multi-family loans and debt held in securitization trusts, net | 5,207 | 12,019 | 14,617 | 19,564 |
NET INCOME ATTRIBUTABLE TO COMPANY | $ 23,450 | $ 22,962 | $ 47,831 | $ 41,120 |
Consolidated K-Series - Geograp
Consolidated K-Series - Geographic Concentrations of Credit Risk (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Texas | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 17.00% | 16.60% |
Florida | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 10.00% | 11.30% |
Geographic Concentration Risk | Multi-family loans held in securitization trusts | California | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 16.10% | 14.80% |
Geographic Concentration Risk | Multi-family loans held in securitization trusts | Texas | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 12.40% | 13.00% |
Geographic Concentration Risk | Multi-family loans held in securitization trusts | Maryland | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 5.80% | 5.00% |
Geographic Concentration Risk | Multi-family loans held in securitization trusts | New York | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 5.10% | 6.40% |
Geographic Concentration Risk | Multi-family loans held in securitization trusts | Florida | ||
Concentration Risk [Line Items] | ||
Geographic concentration, percent | 5.00% | 4.50% |
Investments in Unconsolidated_3
Investments in Unconsolidated Entities (Details) - Equity Method Investments - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||||
Carrying Amount | $ 78,040 | $ 78,040 | $ 40,472 | ||
Carrying Amount, fair value option | $ 88,108 | $ 88,108 | $ 32,994 | ||
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 | $ 9,503 | $ 9,503 | $ 8,948 | ||
Income from investments in unconsolidated entities | $ 287 | $ 259 | $ 562 | $ 512 | |
Somerset Deerfield Investor, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 45.00% | 45.00% | 45.00% | ||
Carrying Amount | $ 16,796 | $ 16,796 | $ 16,266 | ||
Income from investments in unconsolidated entities | $ 492 | 0 | $ 970 | 0 | |
RS SWD Owner, LLC, RS SWD Mitchell Owner, LLC, RS SWD IF Owner, LLC, RS SWD Mullis Owner, LLC, RS SWD JH Mullis Owner, and RS SWD Saltzman Owner, LLC (collectively) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 43.00% | 43.00% | 43.00% | ||
Carrying Amount | $ 4,792 | $ 4,792 | $ 4,714 | ||
Income from investments in unconsolidated entities | $ 134 | 0 | $ 265 | 0 | |
Audubon Mezzanine Holdings, LLC (Series A) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 57.00% | 57.00% | 57.00% | ||
Carrying Amount | $ 10,795 | $ 10,795 | $ 10,544 | ||
Income from investments in unconsolidated entities | $ 304 | 0 | $ 601 | 0 | |
EP 320 Growth Fund, L.L.C. (Series A) and Turnbury Park Apartments - BC, L.L.C. (Series A) (collectively) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 46.00% | 46.00% | 0.00% | ||
Carrying Amount | $ 6,687 | $ 6,687 | $ 0 | ||
Income from investments in unconsolidated entities | $ 188 | 0 | $ 353 | 0 | |
Walnut Creek Properties Holdings, L.L.C. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 36.00% | 36.00% | 0.00% | ||
Carrying Amount | $ 8,093 | $ 8,093 | $ 0 | ||
Income from investments in unconsolidated entities | $ 231 | 0 | $ 328 | 0 | |
Towers Property Holdings LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 37.00% | 37.00% | 0.00% | ||
Carrying Amount | $ 10,885 | $ 10,885 | $ 0 | ||
Income from investments in unconsolidated entities | $ 10 | 0 | $ 10 | 0 | |
Mansions Property Holdings LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 34.00% | 34.00% | 0.00% | ||
Carrying Amount | $ 10,489 | $ 10,489 | $ 0 | ||
Income from investments in unconsolidated entities | $ 10 | 0 | $ 10 | 0 | |
Evergreens JV Holdings, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 85.00% | 85.00% | 85.00% | ||
Carrying Amount, fair value option | $ 12,500 | $ 12,500 | $ 8,200 | ||
Income from investments in unconsolidated entities | $ 1,289 | 171 | $ 4,513 | 365 | |
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 | $ 14,260 | $ 14,260 | $ 13,840 | ||
Income from investments in unconsolidated entities | $ 409 | 419 | $ 847 | 902 | |
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 | $ 11,348 | $ 11,348 | $ 10,954 | ||
Income from investments in unconsolidated entities | $ 163 | 398 | $ 395 | 680 | |
Headlands Asset Management Fund III, Cayman, LP, Headlands Flagship Opportunity Fund Series I [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 49.00% | 49.00% | 0.00% | ||
Carrying Amount, fair value option | $ 50,000 | $ 50,000 | $ 0 | ||
WR Savannah Holdings, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Income from investments in unconsolidated entities | $ 0 | $ 1,269 | $ 0 | $ 1,629 |
Preferred Equity and Mezzanin_3
Preferred Equity and Mezzanine Loan Investments (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Variable Interest Entity [Line Items] | ||
Total | $ 191,387 | $ 165,555 |
Texas | ||
Variable Interest Entity [Line Items] | ||
Geographic concentration, percent | 17.00% | 16.60% |
Tennessee | ||
Variable Interest Entity [Line Items] | ||
Geographic concentration, percent | 11.30% | 6.80% |
Georgia | ||
Variable Interest Entity [Line Items] | ||
Geographic concentration, percent | 10.80% | 15.30% |
Alabama | ||
Variable Interest Entity [Line Items] | ||
Geographic concentration, percent | 10.30% | 8.60% |
Florida | ||
Variable Interest Entity [Line Items] | ||
Geographic concentration, percent | 10.00% | 11.30% |
South Carolina | ||
Variable Interest Entity [Line Items] | ||
Geographic concentration, percent | 8.40% | 9.50% |
Virginia | ||
Variable Interest Entity [Line Items] | ||
Geographic concentration, percent | 7.90% | 9.10% |
Preferred equity and mezzanine loan investments | ||
Variable Interest Entity [Line Items] | ||
Investment amount | $ 192,814 | $ 166,789 |
Deferred loan fees, net | (1,427) | (1,234) |
Total | $ 191,387 | $ 165,555 |
Number of delinquent loans | loan | 0 | 0 |
Use of Special Purpose Entiti_3
Use of Special Purpose Entities (SPE) and Variable Interest Entities (VIE) - Narrative (Details) $ in Thousands | Mar. 14, 2019USD ($) | Mar. 31, 2017variable_interest_entity | Jun. 30, 2019USD ($)securitization | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)securitization | Jun. 30, 2018USD ($) | Mar. 25, 2019USD ($) | Dec. 31, 2018USD ($)securitization |
Variable Interest Entity [Line Items] | ||||||||
Loss on extinguishment of debt | $ 0 | $ 0 | $ 2,857 | $ 0 | ||||
Unconsolidated VIE, maximum loss exposure | $ 355,500 | $ 355,500 | $ 269,800 | |||||
RBDHC | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Ownership percentage | 100.00% | |||||||
Riverchase Landing and The Clusters | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Number of variable interest entities consolidated | variable_interest_entity | 2 | |||||||
Multi-family CMBS Re-securitization | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Principal amount | $ 33,200 | $ 33,177 | ||||||
Loss on extinguishment of debt | $ 2,900 | |||||||
Multi-family CMBS Re-securitization | K-Series | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Number of consolidated securitizations | securitization | 1 | |||||||
Distressed Residential Mortgage Loan Securitization | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Principal amount | $ 6,500 | $ 12,381 | ||||||
Non-Financings, Multi-Family CMBS | K-Series | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Number of securitizations, non-financing VIE's | securitization | 11 | 11 | 8 | |||||
VIE, Primary Beneficiary | RBDHC | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Noncontrolling interest, ownership by parent, percentage | 50.00% | |||||||
VIE, Primary Beneficiary | K-Series | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Number of consolidated securitizations | securitization | 11 | 11 | 9 | |||||
Residential Mortgage Loans Held In Securitization Trusts Net | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Number of securitizations completed to date | securitization | 4 | 4 | ||||||
Number of securitizations, consolidated, accounted for as permanent financing | securitization | 3 | 3 | ||||||
Receivables and other assets | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Real estate under development | $ 16,700 | $ 16,700 | $ 22,000 |
Use of Special Purpose Entiti_4
Use of Special Purpose Entities (SPE) and Variable Interest Entities (VIE) - Assets and Liabilities of Consolidated VIEs (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)securitization | Jun. 30, 2019USD ($)securitization | Jun. 30, 2018USD ($) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | $ 103,724 | $ 134,993 | $ 84,717 | |
Multi-family loans held in securitization trusts, at fair value | 11,679,847 | 14,573,925 | ||
Real estate held for sale in consolidated variable interest entities | 29,704 | 0 | ||
Receivables and other assets | 114,821 | 135,845 | ||
Total Assets | [1] | 14,737,638 | 18,265,484 | |
Securitized debt | 42,335 | 0 | ||
Mortgages and notes payable in consolidated variable interest entities | 31,227 | 3,986 | ||
Accrued expenses and other liabilities | 101,228 | 134,615 | ||
Total Liabilities | [1] | 13,557,345 | 16,737,802 | |
Collateralized Mortgage Obligations | Class A Notes | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Proceeds from issuance of secured debt | $ 177,500 | |||
Percentage of ownership | 5.00% | |||
Residential collateralized debt obligations | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Collateralized debt obligations | $ 53,040 | 45,280 | ||
Multi-family collateralized debt obligations, at fair value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Collateralized debt obligations | 11,022,248 | 13,772,726 | ||
Residential Mortgage Loan Securitization | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Receivables and other assets | 1,061 | 1,302 | ||
Total Assets | 57,856 | 50,101 | ||
Accrued expenses and other liabilities | 26 | 40 | ||
Total Liabilities | 53,066 | 45,320 | ||
Residential Mortgage Loan Securitization | Residential collateralized debt obligations | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Collateralized debt obligations | 53,040 | 45,280 | ||
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 | 56,795 | 48,799 | ||
Consolidated K-Series | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Receivables and other assets | 37,679 | 48,958 | ||
Total Assets | 10,610,455 | 14,622,883 | ||
Accrued expenses and other liabilities | 37,022 | 47,921 | ||
Total Liabilities | 10,022,666 | 13,820,647 | ||
Consolidated K-Series | Multi-family collateralized debt obligations, at fair value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Collateralized debt obligations | 9,985,644 | 13,772,726 | ||
Consolidated K-Series | 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 | 10,572,776 | 14,573,925 | ||
Other | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 708 | 1,513 | ||
Real estate held for sale in consolidated variable interest entities | 29,704 | |||
Receivables and other assets | 23,254 | 16,984 | ||
Total Assets | 53,666 | 18,497 | ||
Mortgages and notes payable in consolidated variable interest entities | 31,227 | 3,986 | ||
Accrued expenses and other liabilities | 1,166 | 111 | ||
Total Liabilities | 32,393 | 4,097 | ||
Multi-family CMBS Re-securitization | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Investment securities available for sale | 52,700 | |||
Receivables and other assets | 4,243 | |||
Total Assets | 1,164,014 | |||
Securitized debt | 30,121 | |||
Accrued expenses and other liabilities | 4,228 | |||
Total Liabilities | $ 1,070,953 | |||
Multi-family CMBS Re-securitization | Consolidated K-Series | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Number of securitizations | securitization | 2 | |||
Number of consolidated securitizations | securitization | 1 | |||
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 | $ 1,036,604 | |||
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 | 1,107,071 | |||
Distressed Residential Mortgage Loan Securitization | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Receivables and other assets | 10,287 | |||
Total Assets | 98,383 | |||
Securitized debt | 12,214 | |||
Accrued expenses and other liabilities | 444 | |||
Total Liabilities | 12,658 | |||
Distressed Residential Mortgage Loan Securitization | Distressed 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 | 88,096 | |||
Financing And Other VIEs | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 708 | 1,513 | ||
Investment securities available for sale | 52,700 | |||
Real estate held for sale in consolidated variable interest entities | 29,704 | |||
Receivables and other assets | 76,524 | 67,244 | ||
Total Assets | 11,984,374 | 14,691,481 | ||
Securitized debt | 42,335 | |||
Mortgages and notes payable in consolidated variable interest entities | 31,227 | 3,986 | ||
Accrued expenses and other liabilities | 42,886 | 48,072 | ||
Total Liabilities | 11,191,736 | 13,870,064 | ||
Financing And Other VIEs | Residential collateralized debt obligations | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Collateralized debt obligations | 53,040 | 45,280 | ||
Financing And Other VIEs | Multi-family collateralized debt obligations, at fair value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Collateralized debt obligations | 11,022,248 | 13,772,726 | ||
Financing And Other 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 | 56,795 | 48,799 | ||
Financing And Other VIEs | Distressed 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 | 88,096 | |||
Financing And Other 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 | $ 11,679,847 | $ 14,573,925 | ||
Non-Financings, Multi-Family CMBS | Consolidated K-Series | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Number of securitizations, non-financing VIE's | securitization | 8 | 11 | ||
[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 June 30, 2019 and December 31, 2018 , assets of consolidated VIEs totaled $14,691,481 and $11,984,374 , respectively, and the liabilities of consolidated VIEs totaled $13,870,064 and $11,191,736 , respectively. See Note 9 for further discussion. |
Use of Special Purpose Entiti_5
Use of Special Purpose Entities (SPE) and Variable Interest Entities (VIE) - Securitized Debt (Details) - USD ($) | Jun. 30, 2019 | Mar. 25, 2019 | Mar. 14, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||||
Carrying value | $ 0 | $ 42,335,000 | ||
Multi-family CMBS Re-securitization | ||||
Variable Interest Entity [Line Items] | ||||
Principal amount | $ 33,200,000 | 33,177,000 | ||
Carrying value | $ 30,121,000 | |||
Multi-family CMBS Re-securitization | LIBOR | ||||
Variable Interest Entity [Line Items] | ||||
Pass-through rate of notes issued | 5.35% | |||
Distressed Residential Mortgage Loan Securitization | ||||
Variable Interest Entity [Line Items] | ||||
Principal amount | $ 6,500,000 | $ 12,381,000 | ||
Carrying value | $ 12,214,000 | |||
Distressed Residential Mortgage Loan Securitization | LIBOR | ||||
Variable Interest Entity [Line Items] | ||||
Pass-through rate of notes issued | 4.00% | |||
Variable Interest Entity, Securitized Debt | ||||
Variable Interest Entity [Line Items] | ||||
Principal amount | $ 0 | |||
Unamortized deferred finance costs | $ 200,000 |
Use of Special Purpose Entiti_6
Use of Special Purpose Entities (SPE) and Variable Interest Entities (VIE) - Financing VIEs Securitized Debt by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Total | $ 186,986 | |
Carrying value | $ 0 | $ 42,335 |
Financing VIE | ||
Variable Interest Entity [Line Items] | ||
Within 24 months | 12,381 | |
Over 24 months to 36 months | 0 | |
Over 36 months | 33,177 | |
Total | 45,558 | |
Discount | (2,983) | |
Debt issuance cost | (240) | |
Carrying value | $ 42,335 |
Use of Special Purpose Entiti_7
Use of Special Purpose Entities (SPE) and Variable Interest Entities (VIE) - Classification and Carrying Value of Unconsolidated VIEs (Details) $ in Thousands | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($)securitization |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total assets | $ 355,514 | $ 269,753 |
Variable Interest Entity, Not Primary Beneficiary | Investment securities, available for sale, at fair value, held in securitization trusts | ||
Variable Interest Entity [Line Items] | ||
Total assets | 24,739 | 52,700 |
Variable Interest Entity, Not Primary Beneficiary | Receivables and other assets | ||
Variable Interest Entity [Line Items] | ||
Total assets | 72 | |
Variable Interest Entity, Not Primary Beneficiary | Preferred equity and mezzanine loan investments | ||
Variable Interest Entity [Line Items] | ||
Total assets | 191,387 | 165,555 |
Variable Interest Entity, Not Primary Beneficiary | Investments in unconsolidated entities | ||
Variable Interest Entity [Line Items] | ||
Total assets | 139,388 | 51,426 |
Variable Interest Entity, Not Primary Beneficiary | ABS | ||
Variable Interest Entity [Line Items] | ||
Total assets | 24,739 | |
Variable Interest Entity, Not Primary Beneficiary | ABS | Investment securities, available for sale, at fair value, held in securitization trusts | ||
Variable Interest Entity [Line Items] | ||
Total assets | 24,739 | |
Variable Interest Entity, Not Primary Beneficiary | ABS | Preferred equity and mezzanine loan investments | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | |
Variable Interest Entity, Not Primary Beneficiary | ABS | Investments in unconsolidated entities | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | |
Variable Interest Entity, Not Primary Beneficiary | Multi-family CMBS | ||
Variable Interest Entity [Line Items] | ||
Total assets | 52,772 | |
Variable Interest Entity, Not Primary Beneficiary | Multi-family CMBS | Investment securities, available for sale, at fair value, held in securitization trusts | ||
Variable Interest Entity [Line Items] | ||
Total assets | 52,700 | |
Variable Interest Entity, Not Primary Beneficiary | Multi-family CMBS | Receivables and other assets | ||
Variable Interest Entity [Line Items] | ||
Total assets | 72 | |
Variable Interest Entity, Not Primary Beneficiary | Multi-family CMBS | Preferred equity and mezzanine loan investments | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | |
Variable Interest Entity, Not Primary Beneficiary | Multi-family CMBS | Investments in unconsolidated entities | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | |
Variable Interest Entity, Not Primary Beneficiary | Preferred equity investments in multi-family properties | ||
Variable Interest Entity [Line Items] | ||
Total assets | 262,767 | 195,101 |
Variable Interest Entity, Not Primary Beneficiary | Preferred equity investments in multi-family properties | Investment securities, available for sale, at fair value, held in securitization trusts | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | 0 |
Variable Interest Entity, Not Primary Beneficiary | Preferred equity investments in multi-family properties | Receivables and other assets | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | |
Variable Interest Entity, Not Primary Beneficiary | Preferred equity investments in multi-family properties | Preferred equity and mezzanine loan investments | ||
Variable Interest Entity [Line Items] | ||
Total assets | 184,727 | 154,629 |
Variable Interest Entity, Not Primary Beneficiary | Preferred equity investments in multi-family properties | Investments in unconsolidated entities | ||
Variable Interest Entity [Line Items] | ||
Total assets | 78,040 | 40,472 |
Variable Interest Entity, Not Primary Beneficiary | Mezzanine loans on multi-family properties | ||
Variable Interest Entity [Line Items] | ||
Total assets | 6,660 | 10,926 |
Variable Interest Entity, Not Primary Beneficiary | Mezzanine loans on multi-family properties | Investment securities, available for sale, at fair value, held in securitization trusts | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | 0 |
Variable Interest Entity, Not Primary Beneficiary | Mezzanine loans on multi-family properties | Receivables and other assets | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | |
Variable Interest Entity, Not Primary Beneficiary | Mezzanine loans on multi-family properties | Preferred equity and mezzanine loan investments | ||
Variable Interest Entity [Line Items] | ||
Total assets | 6,660 | 10,926 |
Variable Interest Entity, Not Primary Beneficiary | Mezzanine loans on multi-family properties | Investments in unconsolidated entities | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | 0 |
Variable Interest Entity, Not Primary Beneficiary | Equity investments in entities that invest in residential properties | ||
Variable Interest Entity [Line Items] | ||
Total assets | 61,348 | 10,954 |
Variable Interest Entity, Not Primary Beneficiary | Equity investments in entities that invest in residential properties | Investment securities, available for sale, at fair value, held in securitization trusts | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | 0 |
Variable Interest Entity, Not Primary Beneficiary | Equity investments in entities that invest in residential properties | Receivables and other assets | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | |
Variable Interest Entity, Not Primary Beneficiary | Equity investments in entities that invest in residential properties | Preferred equity and mezzanine loan investments | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | 0 |
Variable Interest Entity, Not Primary Beneficiary | Equity investments in entities that invest in residential properties | Investments in unconsolidated entities | ||
Variable Interest Entity [Line Items] | ||
Total assets | $ 61,348 | $ 10,954 |
K-Series | Multi-family collateralized mortgage backed securities | ||
Variable Interest Entity [Line Items] | ||
Number of securitizations | securitization | 2 |
Real Estate Held for Sale in _3
Real Estate Held for Sale in Consolidated VIEs (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Feb. 28, 2019 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Investment [Line Items] | |||||||
Real estate held for sale before accumulated depreciation and amortization | $ 0 | $ 0 | $ 29,704,000 | ||||
Riverchase Landing | VIE, Primary Beneficiary | |||||||
Investment [Line Items] | |||||||
Gain on sale | $ 2,300,000 | ||||||
Land | 2,650,000 | ||||||
Building and improvements | 26,032,000 | ||||||
Furniture, fixtures and equipment | 974,000 | ||||||
Lease intangible | 2,802,000 | ||||||
Real estate held for sale before accumulated depreciation and amortization | 32,458,000 | ||||||
Accumulated depreciation | (418,000) | ||||||
Accumulated amortization of lease intangible | (2,336,000) | ||||||
Real estate held for sale in consolidated variable interest entities | 0 | 0 | $ 29,704,000 | ||||
Depreciation | 0 | $ 0 | 0 | $ 0 | |||
Amortization | $ 0 | $ 0 | $ 0 | ||||
The Clusters | VIE, Primary Beneficiary | |||||||
Investment [Line Items] | |||||||
Gain on sale | $ 1,600,000 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments (Details) - Interest rate swaps - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Derivative labilities | $ 27,800 | $ 8,500 |
Variation margin | 41,900 | 8,500 |
Derivative assets | 1,800 | |
Trading | ||
Derivative [Line Items] | ||
Derivative assets | $ 14,047 | $ 10,263 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Activity of Derivative Instruments Not Designated as Hedges (Details) - Trading - Interest rate swaps - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Roll Forward] | ||
Beginning balance | $ 495,500 | $ 345,500 |
Additions | 0 | 50,000 |
Settlement, Expiration or Exercise | 0 | 0 |
Ending balance | $ 495,500 | $ 395,500 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Components of Realized and Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Unrealized Gains (Losses) | $ (15,007) | $ 12,606 | $ (29,593) | $ 24,298 |
Trading | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized Gains (Losses) | 0 | 0 | 0 | 0 |
Unrealized Gains (Losses) | (15,007) | 5,135 | (29,593) | 14,103 |
Trading | Interest rate swaps | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized Gains (Losses) | 0 | 0 | 0 | 0 |
Unrealized Gains (Losses) | $ (15,007) | $ 5,135 | $ (29,593) | $ 14,103 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Interest Rate Swaps (Details) - Designated as Hedging Instrument - Cash Flow Hedging - Interest rate swaps - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | $ 495,500,000 | $ 495,500,000 |
Weighted Average Fixed Interest Rate | 2.60% | 2.60% |
Weighted Average Variable Interest Rate | 2.57% | 2.52% |
2024 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | $ 98,000,000 | $ 98,000,000 |
Weighted Average Fixed Interest Rate | 2.18% | 2.18% |
Weighted Average Variable Interest Rate | 2.59% | 2.45% |
2027 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | $ 247,500,000 | $ 247,500,000 |
Weighted Average Fixed Interest Rate | 2.39% | 2.39% |
Weighted Average Variable Interest Rate | 2.57% | 2.53% |
2028 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | $ 150,000,000 | $ 150,000,000 |
Weighted Average Fixed Interest Rate | 3.23% | 3.23% |
Weighted Average Variable Interest Rate | 2.57% | 2.53% |
Repurchase Agreements - Narrati
Repurchase Agreements - Narrative (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019USD ($)counterparty | Dec. 31, 2018USD ($)counterparty | Jun. 30, 2018USD ($) | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Average days to maturity | 106 days | 62 days | |
Interest payable | $ 4,200 | $ 3,900 | |
Advance rate | 86.10% | ||
Average haircut | 13.90% | ||
Repurchase agreements, number of counterparties | counterparty | 14 | 11 | |
Cash and cash equivalents | $ 134,993 | $ 103,724 | $ 84,717 |
Unencumbered investment securities | $ 388,100 | ||
Liquidation proceeds, percentage | 28.40% | ||
Distressed residential mortgage loans | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Deferred finance costs, gross | $ 800 | $ 1,200 | |
Lender Concentration Risk | Stockholders' Equity | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Average haircut | 5.00% | ||
Concentration risk, percentage | 5.04% | ||
Agency RMBS | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Average haircut | 5.00% | ||
Non-Agency RMBS | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Average haircut | 26.00% | ||
Unencumbered investment securities | $ 198,300 | ||
CMBS | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Average haircut | 21.00% | ||
Unencumbered investment securities | $ 91,600 | ||
Residential Mortgage Backed Securities | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Unencumbered investment securities | 73,500 | ||
ABS | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Unencumbered investment securities | 24,700 | ||
Loans | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Repurchase agreement, amount outstanding | $ 1,800,000 | $ 1,500,000 | |
Weighted average interest rate | 3.28% | 3.41% |
Repurchase Agreements - Assets
Repurchase Agreements - Assets Pledged as Collateral (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Repurchase Agreements | $ 1,843,815 | $ 1,543,577 |
Fair Value of Collateral Pledged | 2,156,962 | 1,784,191 |
Amortized Cost of Collateral Pledged | 1,929,216 | 1,672,486 |
Consolidated K-Series | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
K-Series, carrying value | 801,200 | 657,600 |
Agency ARMs | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Repurchase Agreements | 58,802 | 67,648 |
Fair Value of Collateral Pledged | 62,295 | 70,747 |
Amortized Cost of Collateral Pledged | 64,004 | 73,290 |
Agency Fixed- Rate | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Repurchase Agreements | 812,811 | 857,582 |
Fair Value of Collateral Pledged | 858,359 | 907,610 |
Amortized Cost of Collateral Pledged | 863,160 | 940,994 |
Non-Agency RMBS | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Repurchase Agreements | 172,108 | 88,730 |
Fair Value of Collateral Pledged | 234,583 | 117,958 |
Amortized Cost of Collateral Pledged | 232,657 | 118,414 |
CMBS | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Repurchase Agreements | 800,094 | 529,617 |
Fair Value of Collateral Pledged | 1,001,725 | 687,876 |
Amortized Cost of Collateral Pledged | 769,395 | 539,788 |
CMBS | Consolidated K-Series | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
K-Series, carrying value | $ 755,300 | $ 543,000 |
Repurchase Agreements - Outstan
Repurchase Agreements - Outstanding Repurchase Agreement Borrowings by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Outstanding repurchase agreements | $ 1,843,815 | $ 1,543,577 |
Within 30 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Outstanding repurchase agreements | 240,210 | 732,051 |
Over 30 days to 90 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Outstanding repurchase agreements | 1,188,847 | 677,906 |
Over 90 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Outstanding repurchase agreements | $ 414,758 | $ 133,620 |
Repurchase Agreements - Borrowi
Repurchase Agreements - Borrowings Under Financing Arrangements and Associated Assets Pledged as Collateral (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Weighted Average Months to Maturity | 106 days | 62 days |
Distressed residential mortgage loans | Residential Mortgage | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Loans pledged as collateral | $ 85,100 | $ 128,100 |
Residential Mortgage | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Maximum Aggregate Uncommitted Principal Amount | 950,000 | 950,000 |
Outstanding Repurchase Agreements | 761,361 | 589,148 |
Carrying Value of Loans Pledged | $ 891,664 | $ 754,352 |
Weighted Average Rate | 4.43% | 4.67% |
Weighted Average Months to Maturity | 7 years 3 days | 9 years 2 months 26 days |
Distressed and other residential mortgage loans | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Fair value of loans | $ 806,600 | $ 626,200 |
Residential Collateralized De_2
Residential Collateralized Debt Obligations (Details) $ in Thousands | Jun. 30, 2019USD ($)securitization | Dec. 31, 2018USD ($)securitization |
Debt Instrument [Line Items] | ||
Pledged assets | $ 48,799 | $ 56,795 |
Number of residential CDO securitizations | securitization | 3 | 3 |
CDOs outstanding | $ 4,800 | $ 4,800 |
Arm Loans | ||
Debt Instrument [Line Items] | ||
Loans pledged as collateral | 52,000 | 60,200 |
Residential collateralized debt obligations | ||
Debt Instrument [Line Items] | ||
Secured debt, carrying value | $ 45,300 | $ 53,000 |
Weighted average interest rate | 3.02% | 3.12% |
Adjustable Rate Residential Mortgage | Residential collateralized debt obligations | ||
Debt Instrument [Line Items] | ||
Pledged assets | $ 48,800 | $ 56,800 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jan. 23, 2017USD ($)$ / shares | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Mortgages | KRVI | VIE, Primary Beneficiary | |||
Debt Instrument [Line Items] | |||
Interest rate | 7.00% | ||
Long-term debt, gross | $ 3,986,000 | ||
Unused borrowing capacity | 4,400,000 | ||
6.25% senior convertible notes due 2022 | Convertible Notes | |||
Debt Instrument [Line Items] | |||
Face amount | $ 138,000,000 | ||
Interest rate | 6.25% | ||
Proceeds from issuance of convertible notes | $ 127,000,000 | ||
Debt issuance cost, percentage | 8.24% | ||
Unamortized debt issuance costs | $ 6,200,000 | $ 7,200,000 | |
Effective interest rate | 96.00% | ||
Conversion ratio | 0.1427144 | ||
Conversion price (in dollars per share) | $ / shares | $ 7.01 | ||
6.25% senior notes due 2022, over-allotment option | Convertible Notes | |||
Debt Instrument [Line Items] | |||
Face amount | $ 18,000,000 |
Debt - Preferred Securities (De
Debt - Preferred Securities (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
NYM Preferred Trust I | ||
Debt Instrument [Line Items] | ||
Principal value of trust preferred securities | $ 25,000,000 | $ 25,000,000 |
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 |
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) - KRVI - VIE, Primary Beneficiary - Mortgages $ in Thousands | Jun. 30, 2019USD ($) |
Debt Instrument [Line Items] | |
Mortgage Note Amount as of June 30, 2019 | $ 3,986 |
Interest Rate | 7.00% |
Net Deferred Finance Costs | $ 0 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long-Term Debt (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Year Ending December 31, | |
2019 | $ 3,986 |
2020 | 0 |
2021 | 0 |
2022 | 138,000 |
2023 | 0 |
Thereafter | 45,000 |
Total | $ 186,986 |
Commitments and Contingencies C
Commitments and Contingencies Commitments (Details) $ in Millions | Jun. 30, 2019USD ($) |
Commitment To Purchase First Loss PO And IOs | Freddie Mac Multi-family loan K-Series | |
Other Commitments [Line Items] | |
Other Commitment | $ 48.3 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) - Discount Rate | Jun. 30, 2019 | Dec. 31, 2018 |
CMBS | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Rate used to determine fair value | 0.045 | |
CMBS | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Rate used to determine fair value | 0.095 | |
Distressed and other residential mortgage loans | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Rate used to determine fair value | 0.040 | |
Distressed and other residential mortgage loans | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Rate used to determine fair value | 0.120 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets carried at fair value | ||
Investment securities available for sale | $ 1,743,869 | $ 1,512,252 |
Interest rate swaps | ||
Assets carried at fair value | ||
Derivative assets | 1,800 | |
Liabilities carried at fair value | ||
Derivative labilities | 27,800 | 8,500 |
Variation margin | 41,900 | 8,500 |
Level 3 | ||
Assets carried at fair value | ||
Investments in unconsolidated entities | 166,983 | 73,833 |
Fair Value, Measurements, Recurring | ||
Assets carried at fair value | ||
Distressed and other residential mortgage loans, at fair value | 1,061,954 | 737,523 |
Investments in unconsolidated entities | 88,108 | 32,994 |
Total | 17,481,903 | 13,972,879 |
Liabilities carried at fair value | ||
Total | 13,772,726 | 11,022,248 |
Fair Value, Measurements, Recurring | Interest rate swaps | ||
Assets carried at fair value | ||
Derivative assets | 14,047 | 10,263 |
Fair Value, Measurements, Recurring | Agency RMBS | ||
Assets carried at fair value | ||
Investment securities available for sale | 994,200 | 1,037,730 |
Fair Value, Measurements, Recurring | Non-Agency RMBS | ||
Assets carried at fair value | ||
Investment securities available for sale | 432,840 | 214,037 |
Fair Value, Measurements, Recurring | CMBS | ||
Assets carried at fair value | ||
Investment securities available for sale | 292,090 | 260,485 |
Fair Value, Measurements, Recurring | ABS | ||
Assets carried at fair value | ||
Investment securities available for sale | 24,739 | 0 |
Fair Value, Measurements, Recurring | Multi-family loans held in securitization trusts | ||
Assets carried at fair value | ||
Multi-family loans held in securitization trusts | 14,573,925 | 11,679,847 |
Fair Value, Measurements, Recurring | Multi-family collateralized debt obligations | ||
Liabilities carried at fair value | ||
Multi-family collateralized debt obligations | 13,772,726 | 11,022,248 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets carried at fair value | ||
Distressed and other residential mortgage loans, at fair value | 0 | 0 |
Investments in unconsolidated entities | 0 | 0 |
Total | 0 | 0 |
Liabilities carried at fair value | ||
Total | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Interest rate swaps | ||
Assets carried at fair value | ||
Derivative assets | 0 | 0 |
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 | CMBS | ||
Assets carried at fair value | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | ABS | ||
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 | ||
Distressed and other residential mortgage loans, at fair value | 0 | 0 |
Investments in unconsolidated entities | 0 | 0 |
Total | 1,757,916 | 1,469,815 |
Liabilities carried at fair value | ||
Total | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Interest rate swaps | ||
Assets carried at fair value | ||
Derivative assets | 14,047 | 10,263 |
Fair Value, Measurements, Recurring | Level 2 | Agency RMBS | ||
Assets carried at fair value | ||
Investment securities available for sale | 994,200 | 1,037,730 |
Fair Value, Measurements, Recurring | Level 2 | Non-Agency RMBS | ||
Assets carried at fair value | ||
Investment securities available for sale | 432,840 | 214,037 |
Fair Value, Measurements, Recurring | Level 2 | CMBS | ||
Assets carried at fair value | ||
Investment securities available for sale | 292,090 | 207,785 |
Fair Value, Measurements, Recurring | Level 2 | ABS | ||
Assets carried at fair value | ||
Investment securities available for sale | 24,739 | 0 |
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 | ||
Distressed and other residential mortgage loans, at fair value | 1,061,954 | 737,523 |
Investments in unconsolidated entities | 88,108 | 32,994 |
Total | 15,723,987 | 12,503,064 |
Liabilities carried at fair value | ||
Total | 13,772,726 | 11,022,248 |
Fair Value, Measurements, Recurring | Level 3 | Interest rate swaps | ||
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 | CMBS | ||
Assets carried at fair value | ||
Investment securities available for sale | 0 | 52,700 |
Fair Value, Measurements, Recurring | Level 3 | ABS | ||
Assets carried at fair value | ||
Investment securities available for sale | 0 | 0 |
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 | 14,573,925 | 11,679,847 |
Fair Value, Measurements, Recurring | Level 3 | Multi-family collateralized debt obligations | ||
Liabilities carried at fair value | ||
Multi-family collateralized debt obligations | $ 13,772,726 | $ 11,022,248 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Valuation for Level 3 Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at beginning of period | $ 12,503,064 | $ 9,835,319 | |
Total gains/(losses) (realized/unrealized) | |||
Included in earnings | 623,077 | (239,166) | |
Included in other comprehensive income (loss) | (13,665) | 297 | |
Transfers in | 0 | 0 | |
Transfers out | (182) | 0 | |
Contributions | 50,000 | 0 | |
Paydowns/Distributions | (168,277) | (78,497) | |
Sales | (76,583) | (2,185) | |
Purchases | 2,806,553 | 94,075 | |
Balance at the end of period | 15,723,987 | 9,609,843 | |
Assets of consolidated VIEs | 14,691,481 | $ 11,984,374 | |
Consolidated K-Series | |||
Total gains/(losses) (realized/unrealized) | |||
Assets of consolidated VIEs | 2,400,000 | ||
Multi-family loans held in securitization trusts | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at beginning of period | 11,679,847 | 9,657,421 | |
Total gains/(losses) (realized/unrealized) | |||
Included in earnings | 574,231 | (244,181) | |
Included in other comprehensive income (loss) | 0 | 0 | |
Transfers in | 0 | 0 | |
Transfers out | 0 | 0 | |
Contributions | 0 | 0 | |
Paydowns/Distributions | (106,363) | (67,880) | |
Sales | 0 | 0 | |
Purchases | 2,426,210 | 0 | |
Balance at the end of period | 14,573,925 | 9,345,360 | |
Distressed and other residential mortgage loans | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at beginning of period | 737,523 | 87,153 | |
Total gains/(losses) (realized/unrealized) | |||
Included in earnings | 25,359 | (475) | |
Included in other comprehensive income (loss) | 0 | 0 | |
Transfers in | 0 | 0 | |
Transfers out | (182) | 0 | |
Contributions | 0 | 0 | |
Paydowns/Distributions | (61,275) | (9,371) | |
Sales | (19,814) | (2,185) | |
Purchases | 380,343 | 94,075 | |
Balance at the end of period | 1,061,954 | 169,197 | |
Investments in unconsolidated entities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at beginning of period | 32,994 | 42,823 | |
Total gains/(losses) (realized/unrealized) | |||
Included in earnings | 5,753 | 3,575 | |
Included in other comprehensive income (loss) | 0 | 0 | |
Transfers in | 0 | 0 | |
Transfers out | 0 | 0 | |
Contributions | 50,000 | 0 | |
Paydowns/Distributions | (639) | (1,246) | |
Sales | 0 | 0 | |
Purchases | 0 | 0 | |
Balance at the end of period | 88,108 | 45,152 | |
CMBS held in securitization trusts | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at beginning of period | 52,700 | 47,922 | |
Total gains/(losses) (realized/unrealized) | |||
Included in earnings | 17,734 | 1,915 | |
Included in other comprehensive income (loss) | (13,665) | 297 | |
Transfers in | 0 | 0 | |
Transfers out | 0 | 0 | |
Contributions | 0 | 0 | |
Paydowns/Distributions | 0 | 0 | |
Sales | (56,769) | 0 | |
Purchases | 0 | 0 | |
Balance at the end of period | $ 0 | $ 50,134 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Valuation for Level 3 Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at beginning of period | $ 11,022,248 | $ 9,189,459 | |
Total losses (gains) (realized/unrealized) | |||
Included in earnings | 531,930 | (282,738) | |
Purchases | 2,324,639 | 0 | |
Paydowns | (106,091) | (67,880) | |
Balance at the end of period | 13,772,726 | $ 8,838,841 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities of consolidated VIEs | 13,870,064 | $ 11,191,736 | |
Consolidated K-Series | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities of consolidated VIEs | $ 2,300,000 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Changes in Unrealized Gains (Losses) Included in Earnings for Level 3 Assets and Liabilities (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Multi-family debt held in securitization trusts | $ (324,898) | $ 59,219 | $ (590,171) | $ 239,310 |
Multi-family loans held in securitization trust | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Multi-family loans held in securitization trusts | 330,105 | (47,200) | 604,788 | (219,746) |
Investment in unconsolidated entities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Multi-family loans held in securitization trusts | 1,698 | 1,858 | 5,359 | 2,896 |
Distressed and other residential mortgage loans, at fair value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Multi-family loans held in securitization trusts | $ 10,329 | $ (34) | $ 19,666 | $ (126) |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - Residential mortgage loans held in securitization trusts – impaired loans, net - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential mortgage loans held in securitization trusts – impaired loans, net | $ 5,590 | $ 5,921 |
Level 1 | ||
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 | ||
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 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential mortgage loans held in securitization trusts – impaired loans, net | $ 5,590 | $ 5,921 |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments - Gains (losses) Incurred for Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Residential mortgage loans held in securitization trusts – impaired loans, net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gains (losses) for assets measured at fair value on a non-recurring basis | $ 0 | $ 0 | $ (38) | $ 110 |
Fair Value of Financial Inst_10
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value of the Company's Financial Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Financial Assets: | |||
Cash and cash equivalents | $ 134,993 | $ 103,724 | $ 84,717 |
Investment securities available for sale | 1,743,869 | 1,512,252 | |
Preferred equity and mezzanine loan investments, carrying value | 135,845 | 114,821 | |
Derivative assets | 14,047 | 10,263 | |
Financial Liabilities | |||
Outstanding repurchase agreements | 1,843,815 | 1,543,577 | |
Subordinated debentures, carrying value | 45,000 | 45,000 | |
Convertible notes, carrying value | 131,839 | 130,762 | |
Residential collateralized debt obligations | |||
Financial Liabilities | |||
Secured debt, carrying value | 45,280 | 53,040 | |
Multi-family collateralized debt obligations | |||
Financial Liabilities | |||
Secured debt, carrying value | 13,772,726 | 11,022,248 | |
Level 1 | |||
Financial Assets: | |||
Cash and cash equivalents | 134,993 | 103,724 | |
Cash and cash equivalents, estimated fair value | 134,993 | 103,724 | |
Level 3 | |||
Financial Assets: | |||
Investment in unconsolidated entities, carrying value | 166,148 | 73,466 | |
Investments in unconsolidated entities, estimated fair value | 166,983 | 73,833 | |
Preferred equity and mezzanine loan investments, carrying value | 191,387 | 165,555 | |
Preferred equity and mezzanine loan investments, estimated fair value | 193,875 | 167,739 | |
Mortgage loans held for sale, net, carrying value | 2,460 | 3,414 | |
Mortgage loans held for sale, net, estimated fair value | 2,621 | 3,584 | |
Mortgage loans held for investment, carrying value | 1,580 | 1,580 | |
Mortgage loans held for investment, estimated fair value | 1,580 | 1,580 | |
Financial Liabilities | |||
Secured debt, carrying value | 0 | 42,335 | |
Secured debt, estimated fair value | 0 | 45,030 | |
Subordinated debentures, carrying value | 45,000 | 45,000 | |
Subordinated debentures, estimated fair value | 45,044 | 44,897 | |
Level 3 | Residential collateralized debt obligations | |||
Financial Liabilities | |||
Secured debt, carrying value | 45,280 | 53,040 | |
Secured debt, estimated fair value | 43,468 | 50,031 | |
Level 3 | Multi-family collateralized debt obligations | |||
Financial Liabilities | |||
Secured debt, carrying value | 13,772,726 | 11,022,248 | |
Secured debt, estimated fair value | 13,772,726 | 11,022,248 | |
Level 3 | Distressed and other residential mortgage loans, at fair value | |||
Financial Assets: | |||
Residential mortgage loans, carrying value | 1,061,954 | 737,523 | |
Residential mortgage loans, estimated fair value | 1,061,954 | 737,523 | |
Level 3 | Distressed residential mortgage loans | |||
Financial Assets: | |||
Residential mortgage loans, carrying value | 218,094 | 285,261 | |
Residential mortgage loans, estimated fair value | 221,615 | 289,376 | |
Level 3 | Multi-family loans held in securitization trusts | |||
Financial Assets: | |||
Residential mortgage loans, carrying value | 14,573,925 | 11,679,847 | |
Residential mortgage loans, estimated fair value | 14,573,925 | 11,679,847 | |
Level 2 | |||
Financial Assets: | |||
Derivative assets | 14,047 | 10,263 | |
Financial Liabilities | |||
Convertible notes, carrying value | 131,839 | 130,762 | |
Convertible notes, estimated fair value | 138,773 | 135,689 | |
Level 2 | Portfolio Investments | |||
Financial Liabilities | |||
Outstanding repurchase agreements | $ 2,604,356 | $ 2,131,505 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | 18 Months Ended | |||||||
Jun. 30, 2019USD ($)directorquarter$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2019USD ($)directorquarter$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Dec. 31, 2018$ / sharesshares | Mar. 31, 2019 | Mar. 29, 2019USD ($) | Mar. 28, 2019shares | Sep. 10, 2018USD ($) | Oct. 13, 2017$ / shares | Aug. 10, 2017USD ($)$ / shares | |
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) | 12,661,287 | 12,661,287 | 12,000,000 | ||||||||
Preferred stock, shares outstanding (in shares) | 12,661,287 | 12,661,287 | 12,000,000 | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Proceeds from issuance of preferred stock | $ | $ 16,100 | $ 16,101 | $ 0 | ||||||||
Equity Distribution Agreements | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||||||
Common stock that may be sold (up to) | $ | $ 177,100 | $ 100,000 | |||||||||
Shares Issued | 2,260,200 | 12,145,144 | 2,260,200 | 12,145,144 | |||||||
Share price (in dollars per share) | $ / shares | $ 6.12 | $ 6.17 | $ 6.12 | $ 6.17 | |||||||
Proceeds from issuance of common stock | $ | $ 13,600 | $ 73,800 | $ 13,600 | $ 73,800 | |||||||
Common stock reserved for issuance | $ | $ 72,500 | $ 72,500 | |||||||||
Preferred Equity Distribution Agreement | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, shares issued (in shares) | 661,287 | 661,287 | |||||||||
Equity agreement for preferred stock maximum aggregate sales price (up to) | $ | $ 50,000 | ||||||||||
Preferred stock available for future issuance, value | $ | $ 33,700 | ||||||||||
Preferred Stock | Preferred Equity Distribution Agreement | |||||||||||
Class of Stock [Line Items] | |||||||||||
Share price (in dollars per share) | $ / shares | $ 24.72 | $ 24.72 | |||||||||
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 | ||||||||
Preferred stock, shares issued (in shares) | 3,101,683 | 3,101,683 | 3,000,000 | ||||||||
Preferred stock, shares outstanding (in shares) | 3,101,683 | 3,101,683 | 3,000,000 | ||||||||
Preferred stock, cumulative redeemable dividend rate | 7.75% | 7.75% | |||||||||
Preferred stock, liquidation preference per share (in dollars per share) | $ / shares | $ 25 | $ 25 | $ 25 | ||||||||
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) | 6,600,000 | 6,600,000 | 4,140,000 | ||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Preferred stock, shares issued (in shares) | 3,993,866 | 3,993,866 | 3,600,000 | ||||||||
Preferred stock, shares outstanding (in shares) | 3,993,866 | 3,993,866 | 3,600,000 | ||||||||
Preferred stock, cumulative redeemable dividend rate | 7.875% | 7.875% | |||||||||
Preferred stock, liquidation preference per share (in dollars per share) | $ / shares | $ 25 | $ 25 | $ 25 | ||||||||
Preferred stock, shares authorized but unissued | 2,460,000 | ||||||||||
Redemption term | 120 days | ||||||||||
Redemption price (in dollars per share) | $ / shares | $ 25 | $ 25 | |||||||||
Series D Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, shares authorized (in shares) | 8,400,000 | 8,400,000 | 5,750,000 | ||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Preferred stock, shares issued (in shares) | 5,565,738 | 5,565,738 | 5,400,000 | ||||||||
Preferred stock, shares outstanding (in shares) | 5,565,738 | 5,565,738 | 5,400,000 | ||||||||
Preferred stock, cumulative redeemable dividend rate | 8.00% | 8.00% | 8.00% | ||||||||
Preferred stock, liquidation preference per share (in dollars per share) | $ / shares | $ 25 | $ 25 | $ 25 | $ 25 | |||||||
Preferred stock, shares authorized but unissued | 2,650,000 | ||||||||||
Redemption term | 120 days | ||||||||||
Redemption price (in dollars per share) | $ / shares | $ 25 | $ 25 | |||||||||
Series B, Series C and Series D 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% | |||||||||
LIBOR | Series D Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, cumulative redeemable dividend rate | 5.695% |
Stockholders' Equity - Cash Div
Stockholders' Equity - Cash Dividends Declared - Preferred Stock (Details) - $ / shares | Jul. 15, 2019 | Apr. 15, 2019 | Jan. 15, 2019 | Oct. 15, 2018 | Jul. 15, 2018 | Apr. 15, 2018 |
Series B Preferred Stock | ||||||
Dividends Payable [Line Items] | ||||||
Cash Dividend Per Share (in dollars per share) | $ 0.484375 | $ 0.484375 | $ 0.484375 | $ 0.484375 | $ 0.484375 | |
Series C Preferred Stock | ||||||
Dividends Payable [Line Items] | ||||||
Cash Dividend Per Share (in dollars per share) | 0.4921875 | 0.4921875 | 0.4921875 | 0.4921875 | 0.4921875 | |
Series D Preferred Stock | ||||||
Dividends Payable [Line Items] | ||||||
Cash Dividend Per Share (in dollars per share) | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | |
Subsequent Event | Series B Preferred Stock | ||||||
Dividends Payable [Line Items] | ||||||
Cash Dividend Per Share (in dollars per share) | $ 0.484375 | |||||
Subsequent Event | Series C Preferred Stock | ||||||
Dividends Payable [Line Items] | ||||||
Cash Dividend Per Share (in dollars per share) | 0.4921875 | |||||
Subsequent Event | Series D Preferred Stock | ||||||
Dividends Payable [Line Items] | ||||||
Cash Dividend Per Share (in dollars per share) | $ 0.50 |
Stockholders' Equity - Cash D_2
Stockholders' Equity - Cash Dividends Declared - Common Stock (Details) - $ / shares | 3 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | ||||||
Cash dividend per share (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Public Offering of Common Stock (Details) - Underwritten Public Offering - Common Stock - USD ($) $ in Thousands | 1 Months Ended | ||
May 31, 2019 | Mar. 31, 2019 | Jan. 31, 2019 | |
Class of Stock [Line Items] | |||
Shares Issued | 20,700,000 | 17,250,000 | 14,490,000 |
Net Proceeds | $ 123,102 | $ 101,160 | $ 83,772 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Basic Earnings per Common Share | ||||
Net income attributable to Company | $ 22,735 | $ 29,694 | $ 66,874 | $ 59,311 |
Less: Preferred stock dividends | (6,257) | (5,925) | (12,182) | (11,850) |
NET INCOME ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS | $ 16,478 | $ 23,769 | $ 54,692 | $ 47,461 |
Weighted average common shares outstanding-basic (in shares) | 200,691 | 115,211 | 187,628 | 113,623 |
Basic Earnings per Common Share (in dollars per share) | $ 0.08 | $ 0.21 | $ 0.29 | $ 0.42 |
Diluted Earnings per Common Share: | ||||
Net income attributable to Company | $ 22,735 | $ 29,694 | $ 66,874 | $ 59,311 |
Less: Preferred stock dividends | (6,257) | (5,925) | (12,182) | (11,850) |
Add back: Interest expense on convertible notes for the period, net of tax | 0 | 2,633 | 5,307 | 5,267 |
Net income attributable to Company's common stockholders | $ 16,478 | $ 26,402 | $ 59,999 | $ 52,728 |
Weighted average common shares outstanding-basic (in shares) | 200,691 | 115,211 | 187,628 | 113,623 |
Net effect of assumed convertible notes conversion to common shares (in shares) | 0 | 19,695 | 19,695 | 19,695 |
Net effect of assumed PSUs vested (in shares) | 1,707 | 258 | 1,688 | 152 |
Diluted weighted average common shares outstanding (in shares) | 202,398 | 135,164 | 209,011 | 133,470 |
Diluted Earnings per Common Share (in dollars per share) | $ 0.08 | $ 0.20 | $ 0.29 | $ 0.40 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Forfeited (in shares) | 5,120 | ||||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Non-vested shares (in shares) | 838,698 | 838,698 | 424,341 | 838,698 | 424,341 | 507,536 | 422,928 |
Forfeited (in shares) | 0 | ||||||
Performance Share Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Non-vested shares (in shares) | 2,018,518 | 2,018,518 | 653,365 | 2,018,518 | 653,365 | 842,792 | 0 |
2010 Stock Incentive Plan | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Non-vested shares (in shares) | 81,837 | 81,837 | 81,837 | ||||
Share-based compensation expense | $ 0.6 | $ 0.3 | $ 0.6 | $ 1.1 | |||
Forfeited (in shares) | 0 | 5,120 | 0 | 5,120 | |||
Unrecognized compensation cost | $ 4.2 | $ 4.2 | $ 2.1 | $ 4.2 | $ 2.1 | ||
Unrecognized compensation cost, period for recognition | 2 years 3 months 18 days | ||||||
Fair value of vested shares | $ 1.3 | 1.1 | |||||
Requisite service period | 3 years | ||||||
Award vesting period | 3 years | ||||||
2010 Stock Incentive Plan | Performance Share Awards | Board of Directors Chairman | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
2017 Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Increase the shares reserved | 7,600,000 | ||||||
Maximum number of shares that may be issued (in shares) | 13,170,000 | 13,170,000 | 13,170,000 | ||||
Shares available for grant (in shares) | 9,051,591 | 9,051,591 | 9,051,591 | 3,865,174 | |||
2017 Incentive Plan | Director | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares Issued | 228,750 | 131,975 | |||||
2017 Incentive Plan | Employee | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares Issued | 828,701 | ||||||
2017 Incentive Plan | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Non-vested shares (in shares) | 756,861 | 756,861 | 756,861 | 290,373 | |||
Shares available for grant (in shares) | 1,280,392 | ||||||
2017 Incentive Plan | Performance Share Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for grant (in shares) | 3,060,958 | 3,060,958 | 3,060,958 | ||||
Share-based compensation expense | $ 0.7 | 0.2 | $ 1.4 | 0.2 | |||
Unrecognized compensation cost | $ 5.9 | $ 5.9 | $ 2.4 | $ 5.9 | $ 2.4 | ||
Award vesting period | 3 years | ||||||
2017 Incentive Plan | Performance Share Awards | Relative TSR performance Is Less Than The Thirtieth Percentile | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting rights, percentage | 0.00% | ||||||
2017 Incentive Plan | Performance Share Awards | Relative TSR Performance Is Equal To The Fiftieth Percentile | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting rights, percentage | 100.00% | ||||||
2017 Incentive Plan | Performance Share Awards | Board of Directors Chairman | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Fair value, expected term | 3 years | ||||||
Fair value, expected term for volatility rate | 3 years | ||||||
2017 Incentive Plan | Employee Stock Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares Issued | 292,459 |
Stock Based Compensation - Non-
Stock Based Compensation - Non-vested Restricted Stock and PSU Award Activity (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Number of Non-vested Restricted Shares | ||
Forfeited (in shares) | (5,120) | |
Restricted Stock | ||
Number of Non-vested Restricted Shares | ||
Non-vested shares at beginning of period (in shares) | 507,536 | 422,928 |
Granted (in shares) | 536,242 | 206,597 |
Vested (in shares) | (205,080) | (200,064) |
Forfeited (in shares) | 0 | |
Non-vested shares at end of period (in shares) | 838,698 | 424,341 |
Weighted Average Per Share Grant Date Fair Value | ||
Non-vested shares at beginning of period (in dollars per share) | $ 5.91 | $ 6.36 |
Granted (in dollars per share) | 6.30 | 5.57 |
Vested (in dollars per share) | 5.85 | 6.55 |
Forfeited (in dollars per share) | 0 | 6.25 |
Non-vested shares at end of period (in dollars per share) | $ 6.18 | $ 5.90 |
Performance Share Awards | ||
Number of Non-vested Restricted Shares | ||
Non-vested shares at beginning of period (in shares) | 842,792 | 0 |
Granted (in shares) | 1,175,726 | 653,365 |
Vested (in shares) | 0 | 0 |
Non-vested shares at end of period (in shares) | 2,018,518 | 653,365 |
Weighted Average Per Share Grant Date Fair Value | ||
Non-vested shares at beginning of period (in dollars per share) | $ 4.20 | $ 0 |
Granted (in dollars per share) | 4.01 | 4.08 |
Vested (in dollars per share) | 0 | 0 |
Non-vested shares at end of period (in dollars per share) | $ 4.09 | $ 4.08 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Current income tax expense | $ 15 | $ 7 | $ 8 | $ 7 |
Deferred income tax benefit | (149) | (20) | (68) | (99) |
Total benefit | $ (134) | $ (13) | $ (60) | $ (92) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Asset (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||
Net operating loss carryforward | $ 3,213 | $ 2,416 |
Capital loss carryover | 1,173 | 739 |
GAAP/Tax basis differences | 4,073 | 3,903 |
Total deferred tax assets | 8,459 | 7,058 |
Deferred tax liabilities | ||
Deferred tax liabilities | 5 | 6 |
Valuation allowance | (7,403) | (6,069) |
Total net deferred tax asset | $ 1,051 | $ 983 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - Taxable REIT Subsidiaries $ in Millions | Jun. 30, 2019USD ($) |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 9.4 |
Capital losses | $ 3.4 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - Underwritten Public Offering $ / shares in Units, $ in Millions | Jul. 22, 2019USD ($)$ / sharesshares |
Subsequent Event [Line Items] | |
Shares issued (in shares) | shares | 23,000,000 |
Sale of stock, price per share (in dollars per share) | $ / shares | $ 6.11 |
Proceeds from issuance of shares | $ | $ 137.5 |
Uncategorized Items - nymt-0630
Label | Element | Value |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 5,695,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | 957,000 |
Common Stock [Member] | ||
Dividends Payable | us-gaap_DividendsPayableCurrentAndNoncurrent | 24,863,000 |
Dividends Payable | us-gaap_DividendsPayableCurrentAndNoncurrent | 42,155,000 |
Preferred Stock [Member] | ||
Dividends Payable | us-gaap_DividendsPayableCurrentAndNoncurrent | 5,925,000 |
Dividends Payable | us-gaap_DividendsPayableCurrentAndNoncurrent | $ 6,257,000 |