Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 01, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | RESOURCE CAPITAL CORP. | ||
Entity Central Index Key | 1,332,551 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-know Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 31,441,991 | ||
Public Float | $ 491,679,835 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
ASSETS | |||
Cash and cash equivalents | [1] | $ 78,756 | $ 79,905 |
Restricted cash | [1] | 40,635 | 122,138 |
Investment securities, trading | [1] | 25,550 | 20,786 |
Investment securities available-for-sale, pledged as collateral, at fair value | [1] | 162,306 | 197,800 |
Investment securities available-for-sale, at fair value | [1] | 45,782 | 77,920 |
Linked transactions, net at fair value | [1] | 0 | 15,367 |
Loans held for sale ($94.5 million and $113.4 million at fair value) | [1] | 95,946 | 113,675 |
Property available-for-sale | 0 | 180 | |
Loans, pledged as collateral and net of allowances of $47.5 million and $4.6 million | [1] | 2,160,751 | 1,925,980 |
Loans receivable–related party | [1] | 0 | 558 |
Investments in unconsolidated subsidiaries | [1] | 50,030 | 59,827 |
Derivatives, at fair value | [1] | 3,446 | 5,304 |
Interest receivable | [1] | 14,009 | 16,260 |
Deferred tax asset, net | [1] | 12,646 | 12,634 |
Principal paydown receivable | [1] | 17,941 | 40,920 |
Direct financing leases, net of allowances of $0.5 million and $0 | [1] | 931 | 2,109 |
Intangible assets | [1] | 26,228 | 18,610 |
Prepaid expenses | [1] | 3,180 | 4,196 |
Other assets | [1] | 22,295 | 14,510 |
Total assets | [1] | 2,760,432 | 2,728,679 |
LIABILITIES | |||
Borrowings | [2] | 1,895,288 | 1,716,871 |
Distribution payable | [2] | 17,351 | 30,592 |
Accrued interest expense | [2] | 5,604 | 2,123 |
Derivatives, at fair value | [2] | 3,941 | 8,476 |
Accrued tax liability | [2] | 549 | 9,219 |
Accounts payable and other liabilities | [2] | 10,939 | 9,287 |
Total liabilities | [2] | 1,933,672 | 1,776,568 |
EQUITY | |||
Common stock, par value $0.001: 125,000,000 shares authorized; 31,562,724 and 33,243,794 shares issued and outstanding (including 691,369 and 505,910 unvested restricted shares) | 32 | 33 | |
Additional paid-in capital | 1,228,346 | 1,245,345 | |
Accumulated other comprehensive income (loss) | (2,923) | 6,043 | |
Distributions in excess of earnings | (406,603) | (315,910) | |
Total stockholders’ equity | 818,864 | 935,523 | |
Non-controlling interests | 7,896 | 16,588 | |
Total equity | 826,760 | 952,111 | |
TOTAL LIABILITIES AND EQUITY | 2,760,432 | 2,728,679 | |
Redeemable Preferred Stock Series A [Member] | |||
EQUITY | |||
Preferred stock, par value $0.001 | 1 | 1 | |
Redeemable Preferred Stock Series B [Member] | |||
EQUITY | |||
Preferred stock, par value $0.001 | 6 | 6 | |
Redeemable Preferred Stock Series C [Member] | |||
EQUITY | |||
Preferred stock, par value $0.001 | $ 5 | $ 5 | |
[1] | December 31, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $95 $25 Restricted cash$39,061 $121,247 Investments securities available-for-sale, pledged as collateral, at fair value66,137 119,203 Loans held for sale1,475 282Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,416,441 1,261,137 Interest receivable6,592 8,941 Prepaid expenses238 221 Principal paydown receivable17,800 25,767 Other assets833 (12) Total assets of consolidated VIEs$1,548,672 $1,536,811 | ||
[2] | December 31, 2015 December 31, 2014Liabilities of consolidated VIEs included in the total liabilities above: Borrowings$1,032,581 $1,046,494 Accrued interest expense923 1,000 Derivatives, at fair value3,346 8,439 Unsettled loan purchases— (529) Accounts payable and other liabilities(117) (386) Total liabilities of consolidated VIEs$1,036,733 $1,055,018 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
ASSETS | ||
Loans Pledged as collateral, fair value | $ 94,500 | $ 113,400 |
Financing Receivable, Allowance for Credit Losses | 47,536 | 4,613 |
Provision (recovery) for loan and lease losses | $ 49,889 | $ 1,804 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, shares authorized (in shares) | 100,000,000 | |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock, shares issued (in shares) | 31,562,724 | 33,243,794 |
Common stock, shares outstanding (in shares) | 31,562,724 | 33,243,794 |
Common stock, shares issued, non-vested restricted shares (in shares) | 691,369 | 505,910 |
Assets of consolidated Variable Interest Entities (VIEs) included in the total assets above: | ||
Cash and cash equivalents | $ 95 | $ 25 |
Restricted cash | 39,061 | 121,247 |
Investments securities available-for-sale, pledged as collateral, at fair value | 66,137 | 119,203 |
Loans held for sale | 1,475 | 282 |
Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million | 1,416,441 | 1,261,137 |
Interest receivable | 6,592 | 8,941 |
Prepaid expenses | 238 | 221 |
Principal paydown receivable | 17,800 | 25,767 |
Other assets | 833 | (12) |
Total assets of consolidated VIEs | 1,548,672 | 1,536,811 |
Liabilities of consolidated VIEs included in the total liabilities above: | ||
Borrowings | 1,032,581 | 1,046,494 |
Accrued interest expense | 923 | 1,000 |
Derivatives, at fair value | 3,346 | 8,439 |
Unsettled loan purchases | 0 | (529) |
Accounts payable and other liabilities | (117) | (386) |
Total liabilities of consolidated VIEs | 1,036,733 | 1,055,018 |
Variable interest entity, loans, pledged as collateral, allowance | $ 42,800 | $ 8,800 |
Redeemable Preferred Stock Series A [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 25 | |
Preferred stock, coupon authorized (in hundredths) | 8.50% | |
Preferred stock, shares issued (in shares) | 1,069,016 | 1,069,016 |
Preferred stock, shares outstanding (in shares) | 1,069,016 | 1,069,016 |
Redeemable Preferred Stock Series B [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 25 | |
Preferred stock, coupon authorized (in hundredths) | 8.25% | |
Preferred stock, shares issued (in shares) | 5,740,479 | 5,601,146 |
Preferred stock, shares outstanding (in shares) | 5,740,479 | 5,601,146 |
Redeemable Preferred Stock Series C [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 25 | |
Preferred stock, coupon authorized (in hundredths) | 8.625% | |
Preferred stock, shares issued (in shares) | 4,800,000 | 4,800,000 |
Preferred stock, shares outstanding (in shares) | 4,800,000 | 4,800,000 |
Loans Receivable - Direct Financing Leases [Member] | ||
ASSETS | ||
Financing Receivable, Allowance for Credit Losses | $ 465 | $ 0 |
Provision (recovery) for loan and lease losses | $ 465 | $ 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest income: | |||
Loans | $ 134,930 | $ 102,857 | $ 99,455 |
Securities | 18,332 | 17,265 | 14,309 |
Leases | 556 | 0 | 0 |
Interest income − other | 4,259 | 6,785 | 4,212 |
Total interest income | 158,077 | 126,907 | 117,976 |
Interest expense | 65,653 | 45,473 | 61,010 |
Net interest income | 92,424 | 81,434 | 56,966 |
Rental income | 0 | 8,441 | 19,923 |
Dividend income | 66 | 186 | 273 |
Fee income | 9,509 | 9,385 | 5,821 |
Total revenues | 101,999 | 99,446 | 82,983 |
OPERATING EXPENSES | |||
Management fees − related party | 13,306 | 13,584 | 14,220 |
Equity compensation − related party | 3,145 | 6,566 | 10,472 |
Rental operating expense | 6 | 5,443 | 14,062 |
Lease operating | 57 | 0 | 0 |
General and administrative | 48,080 | 34,861 | 14,507 |
Depreciation and amortization | 4,858 | 2,737 | 3,855 |
Impairment losses | 372 | 0 | 863 |
Provision for loan and lease losses | 49,889 | 1,804 | 3,020 |
Total operating expenses | 119,713 | 64,995 | 60,999 |
Net interest and other revenues less operating expenses | (17,714) | 34,451 | 21,984 |
OTHER INCOME (EXPENSE) | |||
Equity in earnings of unconsolidated subsidiaries | 2,388 | 4,767 | 949 |
Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives | 35,703 | 15,283 | 9,637 |
Net realized and unrealized (loss) gain on investment securities, trading | (547) | (2,818) | (324) |
Unrealized gain (loss) and net interest income on linked transactions, net | 235 | 7,850 | (3,841) |
(Loss) on reissuance/gain on extinguishment of debt | (1,403) | (4,442) | 0 |
Gain on sale of real estate | 206 | 6,127 | 16,616 |
Other income (expense) | 60 | (1,262) | 391 |
Total other income (expense) | 36,642 | 25,505 | 23,428 |
INCOME (LOSS) BEFORE TAXES | 18,928 | 59,956 | 45,412 |
Income tax (expense) benefit | (1,745) | 2,212 | 1,041 |
NET INCOME (LOSS) | 17,183 | 62,168 | 46,453 |
Net (income) loss allocable to non-controlling interest, net of taxes | (24,437) | (17,176) | (7,221) |
Net (income) loss allocable to non-controlling interest, net of taxes | (6,628) | (965) | 0 |
NET INCOME (LOSS) ALLOCABLE TO COMMON SHARES | $ (13,882) | $ 44,027 | $ 39,232 |
NET INCOME PER SHARE - BASIC (in dollars per share) | $ (0.43) | $ 1.38 | $ 1.32 |
NET INCOME PER SHARE - DILUTED (in dollars per shares) | $ (0.43) | $ 1.36 | $ 1.31 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC (in shares) | 32,280,319 | 32,007,766 | 29,619,668 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - DILUTED (in shares) | 32,280,319 | 32,314,847 | 30,009,743 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 17,183 | $ 62,168 | $ 46,453 |
Other comprehensive income (loss): | |||
Reclassification adjustment for realized (gains) losses on available-for-sale securities included in net income | (13,435) | 9,051 | (2,459) |
Unrealized gains (losses) on available-for-sale securities, net | (4,781) | 13,937 | 10,858 |
Reclassification adjustments associated with unrealized gains (losses) from interest rate hedges included in net income | 275 | 282 | 395 |
Unrealized gains on derivatives, net | 5,221 | 1,906 | 4,045 |
Foreign currency translation adjustments | 349 | (608) | 196 |
Total other comprehensive income (loss) | (12,371) | 24,568 | 13,035 |
Comprehensive income (loss) before allocation to non-controlling interests and preferred shares | 4,812 | 86,736 | 59,488 |
Unrealized (gains) losses on available-for-sale securities allocable to non-controlling interests | 3,405 | (4,482) | 0 |
Net (income) loss allocable to non-controlling interests | (6,628) | (965) | 0 |
Net (income) loss allocated to preferred shares | (24,437) | (17,176) | (7,221) |
Comprehensive income (loss) allocable to common shares | $ (22,848) | $ 64,113 | $ 52,267 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Parent [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive (Loss)/Income [Member] | Retained Earnings [Member] | Distributions in Excess of Earnings [Member] | Noncontrolling Interest [Member] | Preferred Shares - Series A [Member]Preferred Stock [Member] | Preferred Shares - Series B [Member]Preferred Stock [Member] | Redeemable Preferred Stock Series C [Member] | Redeemable Preferred Stock Series C [Member]Preferred Stock [Member] | Preferred Stock [Member] | Preferred Stock [Member]Parent [Member] | Preferred Stock [Member]Additional Paid-In Capital [Member] | Common Stock [Member] | Common Stock [Member]Parent [Member] | Common Stock [Member]Common Stock [Member] | Common Stock [Member]Additional Paid-In Capital [Member] |
Balance (in shares) at Dec. 31, 2012 | 26,279,523 | ||||||||||||||||||
Balance at Dec. 31, 2012 | $ 613,345 | $ 613,345 | $ 26 | $ 836,132 | $ (27,078) | $ 0 | $ (195,737) | $ 0 | $ 1 | $ 1 | $ 0 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Proceeds from dividend reinvestment and stock purchase plan (in shares) | 852,882 | ||||||||||||||||||
Proceeds from dividend reinvestment and stock purchase plan | 19,209 | 19,209 | $ 1 | 19,208 | |||||||||||||||
Proceeds from common stock (in shares) | 4,671,875 | ||||||||||||||||||
Proceeds from issuance of stock | 58,012 | 58,012 | $ 5 | 58,010 | 2 | $ 118,264 | $ 118,264 | $ 118,259 | |||||||||||
Offering costs | (5,493) | (5,493) | (5,493) | ||||||||||||||||
Discount on 6% and 8% convertible senior notes | 4,851 | 4,851 | 4,851 | ||||||||||||||||
Stock based compensation (in shares) | 175,451 | ||||||||||||||||||
Stock based compensation | 1,137 | 1,137 | $ 0 | 1,137 | |||||||||||||||
Amortization of stock based compensation | 10,472 | 10,472 | 10,472 | ||||||||||||||||
Net income | 46,453 | 46,453 | 46,453 | 0 | |||||||||||||||
Preferred dividends | (7,221) | (7,221) | (7,221) | ||||||||||||||||
Securities available-for-sale, fair value adjustment, net | 8,399 | 8,399 | 8,399 | ||||||||||||||||
Designated derivatives, fair value adjustment | 4,440 | 4,440 | 4,440 | ||||||||||||||||
Foreign currency translation adjustment | 196 | 196 | 196 | ||||||||||||||||
Distributions on common stock | (98,140) | (98,140) | (39,232) | (58,908) | |||||||||||||||
Balance (in shares) at Dec. 31, 2013 | 31,979,731 | ||||||||||||||||||
Balance at Dec. 31, 2013 | 773,924 | 773,924 | $ 32 | 1,042,576 | (14,043) | 0 | (254,645) | 0 | 1 | 3 | 0 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Proceeds from dividend reinvestment and stock purchase plan (in shares) | 1,382,976 | ||||||||||||||||||
Proceeds from dividend reinvestment and stock purchase plan | 30,293 | 30,293 | $ 1 | 30,292 | |||||||||||||||
Proceeds from common stock (in shares) | 0 | ||||||||||||||||||
Proceeds from issuance of stock | 0 | 3 | 5 | $ 174,159 | $ 174,159 | $ 174,151 | 0 | 0 | $ 0 | 0 | |||||||||
Offering costs | (1,414) | (1,414) | (1,414) | ||||||||||||||||
Stock based compensation (in shares) | 222,483 | ||||||||||||||||||
Stock based compensation | 0 | 0 | $ 0 | 0 | |||||||||||||||
Amortization of stock based compensation | 6,566 | 6,566 | 6,566 | ||||||||||||||||
Purchase and retirement of shares, shares | (341,396) | ||||||||||||||||||
Purchase and retirement of shares | (6,826) | (6,826) | $ 0 | (6,826) | |||||||||||||||
Contributions from (distributions to), net non-controlling interests | (11,141) | (11,141) | |||||||||||||||||
Net income | 62,168 | 61,203 | 61,203 | 0 | 965 | ||||||||||||||
Preferred dividends | (17,176) | (17,176) | (17,176) | ||||||||||||||||
Securities available-for-sale, fair value adjustment, net | 22,988 | 18,506 | 18,506 | 4,482 | |||||||||||||||
Designated derivatives, fair value adjustment | 2,188 | 2,188 | 2,188 | ||||||||||||||||
Foreign currency translation adjustment | (608) | (608) | (608) | ||||||||||||||||
Distributions on common stock | $ (105,292) | (105,292) | (44,027) | (61,265) | |||||||||||||||
Balance (in shares) at Dec. 31, 2014 | 33,243,794 | 33,243,794 | |||||||||||||||||
Balance at Dec. 31, 2014 | $ 952,111 | 935,523 | $ 33 | 1,245,345 | 6,043 | 0 | (315,910) | 16,588 | 1 | 6 | 5 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Proceeds from dividend reinvestment and stock purchase plan (in shares) | 20,963 | 20,963 | |||||||||||||||||
Proceeds from dividend reinvestment and stock purchase plan | $ 328 | 328 | $ 0 | 328 | |||||||||||||||
Proceeds from common stock (in shares) | 0 | 0 | |||||||||||||||||
Proceeds from issuance of stock | 0 | 0 | 0 | $ 3,113 | $ 3,113 | $ 3,113 | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||
Offering costs | (185) | (185) | (185) | ||||||||||||||||
Discount on 6% and 8% convertible senior notes | 2,528 | 2,528 | |||||||||||||||||
Stock based compensation (in shares) | 307,611 | ||||||||||||||||||
Stock based compensation | 0 | 0 | $ 0 | 0 | |||||||||||||||
Amortization of stock based compensation | 3,145 | 3,145 | 3,145 | ||||||||||||||||
Purchase and retirement of shares, shares | (2,001,263) | ||||||||||||||||||
Purchase and retirement of shares | (25,929) | (25,929) | $ (1) | (25,928) | |||||||||||||||
Forfeiture of unvested stock, In shares | (8,381) | ||||||||||||||||||
Contributions from (distributions to), net non-controlling interests | (11,915) | (11,915) | |||||||||||||||||
Net income | 17,183 | 10,555 | 10,555 | 0 | 6,628 | ||||||||||||||
Preferred dividends | (24,437) | (24,437) | (24,437) | ||||||||||||||||
Securities available-for-sale, fair value adjustment, net | (18,216) | (14,811) | (14,811) | (3,405) | |||||||||||||||
Designated derivatives, fair value adjustment | 5,496 | 5,496 | 5,496 | ||||||||||||||||
Foreign currency translation adjustment | 349 | 349 | 349 | ||||||||||||||||
Distributions on common stock | $ (76,811) | (76,811) | 13,882 | (90,693) | |||||||||||||||
Balance (in shares) at Dec. 31, 2015 | 31,562,724 | 31,562,724 | |||||||||||||||||
Balance at Dec. 31, 2015 | $ 826,760 | $ 818,864 | $ 32 | $ 1,228,346 | $ (2,923) | $ 0 | $ (406,603) | $ 7,896 | $ 1 | $ 6 | $ 5 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Net income (loss) | $ 17,183,000 | $ 62,168,000 | $ 46,453,000 | ||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||
Provision for (recovery of) loan losses | 49,889,000 | 1,804,000 | 3,020,000 | ||
Depreciation, amortization, and accretion | 19,700,000 | 3,414,000 | 14,362,000 | ||
Amortization of stock-based compensation | 3,145,000 | 6,566,000 | 10,472,000 | ||
Non-cash incentive compensation to the Manager | 0 | 0 | 484,000 | ||
Deferred income tax (benefit) expense | (390,000) | (11,536,000) | (6,710,000) | ||
Sale (origination) of residential mortgage loans held for sale, net | (17,346,000) | 96,536,000 | 146,000 | ||
Sale (purchase) of and principal payments on securities, trading, net | (5,486,000) | (16,515,000) | 12,961,000 | ||
Net realized and unrealized loss (gain) on investment securities, trading | 547,000 | 2,818,000 | 324,000 | ||
Net realized (gain) loss on sales of investment securities available-for-sale and loans | (35,703,000) | (15,283,000) | (10,986,000) | ||
Loss (gain) on the reissuance / (extinguishment) of debt | 1,403,000 | 4,442,000 | 0 | ||
Loss (gain) on sale of real estate | (206,000) | (6,127,000) | (16,616,000) | ||
Settlement of derivative instruments | 909,000 | (23,000) | 0 | ||
Net impairment losses recognized in earnings | 372,000 | 0 | 855,000 | ||
Unrealized gain (loss) and net interest income on linked transactions, net | (235,000) | (7,850,000) | 3,841,000 | ||
Linked Transactions, Fair Value Adjustments | 235,000 | 5,615,000 | (6,018,000) | ||
Equity in net (earnings) losses of unconsolidated subsidiaries | (2,388,000) | (4,767,000) | (949,000) | ||
Changes in operating assets and liabilities, net of acquisitions | |||||
Decrease (increase) in restricted cash | 1,704,000 | 5,204,000 | 8,445,000 | ||
(Increase) decrease in interest receivable, net of purchased interest | 1,456,000 | (7,295,000) | (1,108,000) | ||
Increase (decrease) in management fee payable | 0 | 171,000 | (6,357,000) | ||
Increase (decrease) in security deposits | 0 | 4,696,000 | (337,000) | ||
(Decrease) increase in accounts payable and accrued liabilities | 2,290,000 | (3,363,000) | (16,327,000) | ||
Increase (decrease) in accrued interest expense | 3,406,000 | 430,000 | (1,445,000) | ||
(Increase) decrease in other assets | (4,947,000) | 9,873,000 | 7,259,000 | ||
Net cash (used in) provided by operating activities | 69,995,000 | (65,474,000) | 49,672,000 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
(Increase) decrease in restricted cash | 79,799,000 | (23,568,000) | 22,248,000 | ||
Purchase of securities available-for-sale | (40,375,000) | (180,990,000) | (136,282,000) | ||
Principal payments on securities available-for-sale | 75,960,000 | 56,053,000 | 52,812,000 | ||
Proceeds from sale of securities available-for-sale | 65,787,000 | 147,171,000 | 11,893,000 | ||
Return of investment (investment in) in unconsolidated entity | 2,715,000 | 9,557,000 | (28,034,000) | ||
Improvement of real estate held-for-sale | 0 | 0 | (404,000) | ||
Settlement of derivative instruments | 5,553,000 | (4,119,000) | 0 | ||
Proceeds from sale of real estate held-for-sale | 301,000 | 65,753,000 | 37,001,000 | ||
Origination and purchase of loans | (940,583,000) | (1,019,721,000) | (725,657,000) | ||
Principal payments received on loans and leases | 560,182,000 | 376,219,000 | 590,663,000 | ||
Proceeds from sale of loans | 130,612,000 | 209,707,000 | 674,977,000 | ||
Distributions from investments in real estate | 0 | 0 | 1,094,000 | ||
Improvements in investments in real estate | 0 | (221,000) | (365,000) | ||
Purchase of furniture and fixtures | 0 | (69,000) | (133,000) | ||
Acquisition of property and equipment | (14,000) | (865,000) | (373,000) | ||
Investment in loans - related parties | 0 | (1,572,000) | (1,241,000) | ||
Principal payments received on loans – related parties | 558,000 | 3,848,000 | 1,685,000 | ||
Net cash (used in) provided by investing activities | (59,505,000) | (393,250,000) | 492,271,000 | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Net proceeds from issuances of common stock, dividend reinvestment and stock purchase plan (net of offering costs of $100, $0, and $3,837) | 228,000 | 30,297,000 | 133,665,000 | ||
Net proceeds from dividend reinvestment and stock purchase plan (net of offering costs of $0, $0 and $0) | 0 | 0 | 0 | ||
Repurchase of common stock | (25,929,000) | (6,832,000) | 0 | ||
Proceeds from borrowings: | |||||
Repurchase agreements, net of repayments | (13,541,000) | 277,875,000 | 15,226,000 | ||
Securitizations | 505,862,000 | 235,344,000 | 260,840,000 | ||
Convertible Senior Notes | 99,000,000 | 0 | 115,000,000 | ||
Senior Secured Revolving Credit Facility | 138,500,000 | 113,500,000 | 0 | ||
Reissuance of debt | 16,597,000 | 52,663,000 | 0 | ||
Payments on borrowings: | |||||
Collateralized debt obligations | (327,537,000) | (451,991,000) | (797,573,000) | ||
Securitizations | (205,125,000) | (34,000,000) | 0 | ||
Senior Secured Revolving Credit Facility | (62,000,000) | 0 | 0 | ||
Settlement of derivative instruments | 0 | 3,052,000 | 0 | ||
Mortgage payable | 0 | 0 | (13,600,000) | ||
Payment of debt issuance costs | (13,799,000) | (8,939,000) | (9,786,000) | ||
Distributions to non-controlling interest and subordinated note holders | (12,433,000) | (2,323,000) | (30,709,000) | ||
Proceeds received from non-controlling interests | 0 | 14,213,000 | 5,531,000 | ||
Distributions paid on preferred stock | (24,390,000) | (15,008,000) | (6,413,000) | ||
Distributions paid on common stock | (90,100,000) | (104,225,000) | (93,458,000) | ||
Net cash provided by (used in) financing activities | (11,639,000) | 276,359,000 | (364,951,000) | ||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (1,149,000) | (182,365,000) | 176,992,000 | ||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 79,905,000 | [1] | 262,270,000 | 85,278,000 | |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 78,756,000 | [1] | 79,905,000 | [1] | 262,270,000 |
SUPPLEMENTAL DISCLOSURE: | |||||
Interest expense paid in cash | 48,089,000 | 35,690,000 | 41,453,000 | ||
Income taxes paid in cash | 11,710,000 | 3,305,000 | 10,710,000 | ||
Redeemable Preferred Stock Series A [Member] | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Proceeds from issuance of redeemable preferred shares, net of offering costs | 0 | 8,984,000 | 112,000 | ||
Redeemable Preferred Stock Series B [Member] | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Proceeds from issuance of redeemable preferred shares, net of offering costs | 3,028,000 | 47,481,000 | 56,214,000 | ||
Redeemable Preferred Stock Series C [Member] | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Proceeds from issuance of redeemable preferred shares, net of offering costs | 0 | 116,268,000 | 0 | ||
Moselle CLO [Member] | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
Acquisition of controlling interest in Moselle CLO S.A. | 0 | (30,433,000) | 0 | ||
Primary Capital Advisors LLC [Member] | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
Acquisition of controlling interest in Moselle CLO S.A. | $ 0 | $ 0 | $ (7,613,000) | ||
[1] | December 31, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $95 $25 Restricted cash$39,061 $121,247 Investments securities available-for-sale, pledged as collateral, at fair value66,137 119,203 Loans held for sale1,475 282Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,416,441 1,261,137 Interest receivable6,592 8,941 Prepaid expenses238 221 Principal paydown receivable17,800 25,767 Other assets833 (12) Total assets of consolidated VIEs$1,548,672 $1,536,811 |
CONSOLIDATED STATEMENTS OF CAS8
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net proceeds from dividend reinvestment and stock purchase plan, offering costs | $ 0 | $ 0 | $ 0 |
Common Stock [Member] | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Offering costs on stock issuance | 100 | 0 | 3,837 |
Redeemable Preferred Stock Series A [Member] | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Offering costs on stock issuance | $ 0 | 260 | 3 |
Preferred stock, coupon authorized (in hundredths) | 8.50% | ||
Redeemable Preferred Stock Series B [Member] | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Offering costs on stock issuance | $ 0 | 858 | 670 |
Preferred stock, coupon authorized (in hundredths) | 8.25% | ||
Redeemable Preferred Stock Series C [Member] | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Offering costs on stock issuance | $ 0 | $ 300 | $ 0 |
Preferred stock, coupon authorized (in hundredths) | 8.625% |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION Resource Capital Corp. and subsidiaries’ (collectively the ‘‘Company’’) principal business activity is to originate, purchase and manage a diversified portfolio of commercial real estate-related assets and commercial finance assets. The Company’s investment activities are managed by Resource Capital Manager, Inc. (‘‘Manager’’) pursuant to a management agreement (the ‘‘Management Agreement’’). The Manager is a wholly-owned indirect subsidiary of Resource America, Inc. (“Resource America”) (NASDAQ: REXI). In September 2013, it was determined that the Company is a variable interest entity ("VIE") and that Resource America was the primary beneficiary of the Company. In December 2015, Resource America early adopted the consolidation guidance issued by the Financial Accounting Standards Board ("FASB") (see Note 2) and it was determined that the Company is no longer a VIE. Therefore, the Company's financial statements are no longer consolidated into Resource America's financial statements. The following subsidiaries are consolidated in the Company’s financial statements: • RCC Real Estate, Inc. (“RCC Real Estate”) holds real estate investments, including commercial real estate loans, commercial real estate-related securities and direct investments in real estate. RCC Real Estate owns 100% of the equity of the following VIEs: ◦ Resource Real Estate Funding CDO 2006-1, Ltd. (“RREF CDO 2006-1”), a Cayman Islands limited liability company and qualified real estate investment trust (“REIT”) subsidiary (“QRS”). RREF CDO 2006-1 was established to complete a collateralized debt obligation (“CDO”) issuance secured by a portfolio of commercial real estate ("CRE") loans and commercial mortgage-backed securities (“CMBS”). ◦ Resource Real Estate Funding CDO 2007-1, Ltd. (“RREF CDO 2007-1”), a Cayman Islands limited liability company and QRS. RREF CDO 2007-1 was established to complete a CDO issuance secured by a portfolio of CRE loans and CMBS. ◦ Resource Capital Corp. CRE Notes 2013, Ltd. (“RCC CRE Notes 2013”), a Cayman Islands limited liability company and QRS. RCC CRE Notes 2013 was established to complete a CRE securitization issuance secured by a portfolio of CRE loans. ◦ Resource Capital Corp. 2014-CRE2, Ltd. (“RCC 2014-CRE2”), a Cayman Islands limited liability company and QRS. RCC 2014-CRE2 was established to complete a CRE securitization issuance secured by a portfolio of CRE loans. ◦ Resource Capital Corp. 2015-CRE3, Ltd. (“RCC 2015-CRE3”), a Cayman Islands limited liability company and QRS. RCC 2015-CRE3 was established to complete a CRE securitization issuance secured by a portfolio of CRE loans. ◦ Resource Capital Corp. 2015-CRE4, Ltd. (“RCC 2015-CRE4”), a Cayman Islands limited liability company and QRS. RCC 2015-CRE4 was established to complete a CRE securitization issuance secured by a portfolio of CRE loans. • RCC Commercial, Inc. (“RCC Commercial”) holds a 29.6% investment in Northport TRS, LLC ("Northport LLC") and owns 100% of the equity of the following VIE: ◦ Apidos CDO III, Ltd. (“Apidos CDO III”), a Cayman Islands limited liability company and taxable REIT subsidiary (“TRS”). Apidos CDO III was established to complete a CDO issuance secured by a portfolio of bank loans and asset-backed securities (“ABS”). On March 31, 2015, the Company issued a notice of redemption to Apidos CDO III's trustee to call the CDO. In June 2015, the Company liquidated Apidos CDO III and, as a result, all of the assets were sold. • RCC Commercial II, Inc. (“Commercial II”) holds structured notes, available-for-sale securities and investments in the subordinated notes of foreign, syndicated bank loan collateralized loan obligation ("CLO") vehicles. Commercial II owns 100% , 68.3% , and 88.6% , respectively, of the equity of the following VIEs: ◦ Apidos Cinco CDO, Ltd. (“Apidos Cinco CDO”), a Cayman Islands limited liability company and TRS. Apidos Cinco CDO was established to complete a CDO issuance secured by a portfolio of bank loans, ABS and corporate bonds. ◦ Whitney CLO I, Ltd. ("Whitney CLO I"), a Cayman Islands limited liability company and TRS. In September 2013, the Company liquidated Whitney CLO I and, as a result, all of the assets were sold. ◦ Moselle CLO S.A. ("Moselle CLO"), incorporated in Luxembourg, is a CLO issuer whose assets consisted of European senior secured loans, U.S. senior secured loans, U.S. senior unsecured loans, U.S. second lien loans, European mezzanine loans, and a limited amount of synthetic securities and other eligible debt obligations. In December 2014, the Company liquidated Moselle CLO and, as a result, all of the assets were sold. • RCC Commercial III, Inc. (“Commercial III”) holds bank loan investments. Commercial III owned 90% of the equity of the following VIE: ◦ Apidos CDO I, Ltd. (“Apidos CDO I”), a Cayman Islands limited liability company and TRS. Apidos CDO I was established to complete a CDO issuance secured by a portfolio of bank loans and ABS. In October 2014, the Company liquidated Apidos CLO I, and as a result, substantially all of the assets were sold. • Resource TRS, Inc. (“Resource TRS”), a TRS directly owned by the Company, holds the Company’s equity investment in a leasing company and holds all of its investment securities, trading (through both direct and indirect investments in such securities). Resource TRS also owns equity in the following: ◦ Resource TRS, LLC, a Delaware limited liability company, which holds an 25.8% investment in Northport LLC. ◦ Northport LLC, a Delaware limited liability company, which holds bank loan investments and the Company's self-originated middle market loans. Resource TRS owns 44.6% of the equity in Northport LLC as of December 31, 2015 . The remaining 29.6% of the equity is owned by RCC Commercial. ◦ Pelium Capital Partners, L.P., ("Pelium Capital") a Delaware limited partnership, which holds investment securities, trading. Resource TRS owns 80.2% of the equity in Pelium Capital as of December 31, 2015 . • Resource TRS II, Inc. (“Resource TRS II”), a TRS directly owned by the Company, holds the Company’s management rights in bank loan CLOs not originated by the Company. Resource TRS II owns 100% of the equity of the following VIE: ◦ Resource Capital Asset Management (“RCAM”), a domestic limited liability company, which is entitled to collect senior, subordinated, and incentive fees related to three CLO issuers to which it provides management services through CVC Credit Partners, L.P., formerly Apidos Capital Management ("ACM"), a subsidiary of CVC Capital Partners SICAV-FIS, S.A., a private equity firm (“CVC”). Resource America owns a 24% interest in CVC Credit Partners, L.P., ("CVC Credit Partners"). • Resource TRS III, Inc. (“Resource TRS III”), a TRS directly owned by the Company, holds the Company’s interests in a bank loan CDO originated by the Company. Resource TRS III owned 33% of the equity of the following VIE: ◦ Apidos CLO VIII, Ltd (“Apidos CLO VIII”), a Cayman Islands limited liability company and TRS. In October 2013, the Company liquidated Apidos CLO VIII, and as a result, all of the assets were sold. • Resource TRS IV, Inc. (“Resource TRS IV”), a TRS directly owned by the Company, held the Company's equity investment in hotel condominium units acquired in conjunction with a loan foreclosure. The hotel condominium units were sold in April 2014. • Resource TRS V, Inc. (“Resource TRS V”), a TRS directly owned by the Company, held the Company's equity investment in a held for sale condominium complex. All of the condominiums were sold as of December 31, 2013. • RSO EquityCo, LLC ("RSO Equity") owned 10% of the equity of Apidos CDO I and 10% of the equity of Apidos CLO VIII. • Long Term Care Conversion, Inc. ("LTCC"), a TRS directly owned by the Company, is a Delaware corporation that owns 100% of the following entities: ◦ Long Term Care Conversion, Funding ("LTCC Funding"), a New York limited liability company, which owns a 70.9% equity interest in Life Care Funding, LLC ("LCF") and provides funding through a financing facility to fund the acquisition of life settlement contracts. LCF, a New York limited liability company, is a joint venture between LTCC and Life Care Funding Group Partners and was established for the purpose of originating and acquiring life settlement contracts. ◦ ZWH4, LLC ("ZAIS"), a Delaware limited liability company, owns a beneficial interest in the warehouse of ZAIS CLO 4, Limited, a Cayman Islands exempted limited liability company, in equity form, that will be used to finance the purchase of syndicated bank loans. • RCC Residential, Inc., ("RCC Residential") a TRS directly owned by the Company, is a Delaware corporation, which owns 100% of the following entities: ◦ Primary Capital Mortgage, LLC ("PCM"), (formerly known as Primary Capital Advisors, LLC), a limited liability company that originates and services residential mortgage loans. ◦ RCM Global Manager, LLC ("RCM Global Manager"), a Delaware limited liability company, owns 30.2% of the following entity: ▪ RCM Global, LLC ("RCM Global"), a Delaware limited liability company, which holds a portfolio of investment securities, available-for-sale. • RCC Residential Portfolio, Inc. ("RCC Resi Portfolio"), a Delaware corporation directly owned by the Company, invests in residential mortgage-backed securities (“RMBS”). • RCC Residential Portfolio TRS, Inc. ("RCC Resi TRS"), a TRS directly owned by the Company, is a Delaware corporation which holds strategic residential positions which cannot be held by RCC Resi Portfolio. ◦ RCC Residential Depositor, LLC ("RCC Resi Depositor"), a Delaware limited liability company, owns 100% of the following entity: ▪ RCC Residential Acquisition, LLC ("RCC Resi Acquisition"), a Delaware limited liability company, purchases residential mortgage loans from PCM and transfers the assets to RCC Opp Trust. * RCC Opportunities Trust ("RCC Opp Trust"), a Delaware statutory trust, holds a portfolio of residential mortgage loans, available-for-sale. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of the Company. All inter-company transactions and balances have been eliminated. Variable Interest Entities A VIE is defined as an entity in which equity investors (i) do not have a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional financial support from other parties. A VIE is required to be consolidated by its primary beneficiary, which is defined as the party that (a) has the power to control the activities that most significantly impact the VIE's economic performance and (b) has the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company considers the following criteria in determining whether an entity is a VIE: 1. The equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by any parties, including the equity holders. 2. The equity investors lack one or more of the following essential characteristics of a controlling financial interest. a. The direct ability to make decisions about the entity's activities through voting rights or similar rights. b. The obligation to absorb the expected losses of the entity. c. The right to receive the expected residual returns of the entity. 3. The equity investors have voting rights that are not proportionate to their economic interests, and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. In determining whether the Company is the primary beneficiary of a VIE, the Company reviews governing contracts, formation documents and any other contractual arrangements for any relevant terms and determines the activities that have the most significant impact on the VIE and who has the power to direct those activities. The Company also looks for kick-out rights, protective rights and participating rights as well as any financial or other support provided to the VIE and the reason for that support, and the terms of any explicit or implicit arrangements that may require the Company to provide future support. The Company then makes a determination based on its power to direct the most significant activities of the VIE and/or a financial interest that is potentially significant. The Company continually reassesses whether it should be deemed to be the primary beneficiary of its VIEs. Voting Interest Entities A voting interest entity is an entity in which the total equity investment at risk is sufficient to enable it to finance its activities independently and the equity holders have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the losses of the entity and the right to receive the residual returns of the entity. The usual condition for a controlling financial interest in a voting interest entity is ownership of a majority voting interest. If the Company has a majority voting interest in a voting interest entity, the entity will generally be consolidated. The Company does not consolidate a voting interest entity if there are substantive participating rights by other parties and/or kick-out rights by a single party or through a simple majority vote. The Company performs on-going reassessments of whether entities previously evaluated under the voting interest framework have become VIEs, based on certain events, and therefore subject to the VIE consolidation framework. Reverse Stock Split and Amended and Restated Certificate of Incorporation Effective August 31, 2015, the Company completed a one-for-four reverse stock split of its outstanding common stock. The accompanying financial statements and notes to the financial statements give retroactive effect to the reverse stock split for all periods presented. In addition, the Company adopted an Amended and Restated Certificate of Incorporation, which provides that our authorized capital stock consists of 125,000,000 shares of common stock, $0.001 par value per share, and 100,000,000 shares of preferred stock, $0.001 par value per share. Use of Estimates 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. Actual results could differ from those estimates. Estimates affecting the accompanying consolidated financial statements include the net realizable and fair values of the Company's investments and derivatives, the estimated life used on investments to calculate depreciation, amortization, and accretion of premiums and discounts, respectively, provisions for loan losses, valuation of servicing assets and the disclosure of contingent liabilities. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and all highly liquid investments with original maturities of three months or less at the time of purchase. Cash, including amounts restricted, may at times exceed the Federal Deposit Insurance Corporation deposit insurance limit of $250,000 per institution, subjecting the Company to risk related to the uninsured balance. At December 31, 2015 and 2014 , the reported cash balances included $25.9 million and $31.8 million , respectively, held in a prime brokerage and custody accounts, $44.5 million and $32.6 million , respectively, held in money market accounts, $8.4 million and $15.4 million , respectively, held in checking accounts, and $0 and $100,000 , respectively, held in accounts at the Company's investment properties. All of the Company's cash deposits are held at large, established financial institutions. Investment in Unconsolidated Entities The Company's non-controlling investments in unconsolidated entities are included in investments in unconsolidated entities on the consolidated balance sheet and may be accounted for under the equity method or the cost method. Under the equity method, capital contributions, distributions, profits and losses of the entities are allocated in accordance with the terms of the entities' operating agreements. Such allocations may differ from the stated percentage interests, if any, as a result of preferred returns and allocation formulas as described in the entities' operating agreements. The Company may account for an investment that does not qualify for equity method accounting using the cost method. Under the cost method, the Company records dividend income when declared to the extent it is not considered a return of capital, which is recorded as a reduction of the cost of the investment. Investment Securities The Company classifies its investment portfolio as trading or available-for-sale. The Company, from time to time, may sell any of its investments due to changes in market conditions or in accordance with its investment strategy. The Company’s investment securities, trading and investment securities, available-for-sale are reported at fair value. To determine fair value, the Company uses an independent third-party valuation firm utilizing data available in the market as well as appropriate prepayment, default, and recovery rates. These valuations are validated utilizing dealer quotes or bids or internal models. If there is a material difference between the value indicated by the third-party valuation firm and the dealer quote, bid, or internal models, the Company will evaluate the difference, which could result in an updated valuation from the third-party or a revised dealer quote. Based on a prioritization of inputs used in valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. Any changes in fair value to the Company's investment securities, trading are recorded in the Company’s consolidated statements of operations as net realized and unrealized (loss) gain on investment securities, trading. Any changes in fair value to the Company's investment securities available-for-sale are recorded in the Company’s consolidated balance sheets as a component of accumulated other comprehensive income (loss) in stockholders' equity. On a quarterly basis, the Company evaluates its available-for-sale investments for other-than-temporary impairment. An available-for-sale investment is impaired when its fair value has declined below its amortized cost basis. An impairment is considered other-than-temporary when the amortized cost basis of the investment or some portion thereof will not be recovered. The determination of other-than-temporary impairment is a subjective process, and different judgments and assumptions could affect the timing of loss realization. The Company reviews its portfolios and makes other-than-temporary impairment determinations at least quarterly. The Company considers the following factors when determining if there is an other-than-temporary impairment on a security: • the length of time the market value has been less than amortized cost; • the severity of the impairment; • the expected loss of the security as generated by a third-party valuation model; • original and current credit ratings from the rating agencies; • underlying credit fundamentals of the collateral backing the securities; • whether, based upon the Company’s intent, it is more likely than not that the Company will sell the security before the recovery of the amortized cost basis; and • third-party support for default, for recovery, prepayment speed and reinvestment price assumptions. Where credit quality is believed to be the cause of the other-than-temporary impairment, that component of the impairment is recognized as an impairment loss in the consolidated statements of operations. Where other market components are believed to be the cause of the impairment, that component of the impairment is recognized as other comprehensive loss. The Company performs an on-going review of third-party reports and updated financial data on the underlying properties in order to analyze current and projected security performance. Rating agency downgrades are considered with respect to the Company’s income approach when determining other-than temporary impairment and, when inputs are subjected to testing for economic changes within possible ranges, the resulting projected cash flows reflect a full recovery of principal and interest indicating no impairment. Investment security transactions are recorded on the trade date. Realized gains and losses on investment securities are determined on the specific identification method. Investment Interest Income Recognition Interest income on the Company’s mortgage-backed and other asset-backed securities is accrued using the effective yield method based on the actual coupon rate and the outstanding principal amount of the underlying mortgages or other assets. Premiums and discounts are amortized or accreted into interest income over the lives of the securities also using the effective yield method, adjusted for the effects of estimated prepayments. For an investment purchased at par, the effective yield is the contractual interest rate on the investment. If the investment is purchased at a discount or at a premium, the effective yield is computed based on the contractual interest rate increased for the accretion of a purchase discount or decreased for the amortization of a purchase premium. The effective yield method requires the Company to make estimates of future prepayment rates for its investments that can be contractually prepaid before their contractual maturity date so that the purchase discount can be accreted, or the purchase premium can be amortized, over the estimated remaining life of the investment. The prepayment estimates that the Company uses directly impact the estimated remaining lives of its investments. Actual prepayment estimates are reviewed as of each quarter end or more frequently if the Company becomes aware of any material information that would lead it to believe that an adjustment is necessary. If prepayment estimates are incorrect, the amortization or accretion of premiums and discounts may have to be adjusted, which would have an impact on future income. To the extent that the Company invests in securities qualifying as beneficial interests in securitized financial assets, the Company will recognize the excess of all cash flows attributable to the beneficial interest estimated at the acquisition/transaction date over the initial investment (the accretable yield) as interest income over the life of the beneficial interest using the effective yield method. Loans - Other than Residential Mortgage Loans The Company acquires loans through direct origination, through the acquisition of participations in commercial real estate loans and corporate leveraged loans in the secondary market and through syndications of newly originated loans. Loans are held for investment; therefore, the Company initially records them at their acquisition price, and subsequently, accounts for them based on their outstanding principal plus or minus unamortized premiums or discounts. The Company may sell a loan held for investment where the credit fundamentals underlying a particular loan have changed in such a manner that the Company's expected return on investment may decrease. Once the determination has been made by the Company that it no longer will hold the loan for investment, the Company identifies these loans as “Loans held for sale” and will account for them at the lower of amortized cost or fair value. Loan Interest Income Recognition Interest income on loans includes interest at stated rates adjusted for amortization or accretion of premiums and discounts. Premiums and discounts are amortized or accreted into income using the effective yield method. If a loan with a premium or discount is prepaid, the Company immediately recognizes the unamortized portion as a decrease or increase to interest income. In addition, the Company defers loan origination fees and loan origination costs and recognizes them over the life of the related loan against interest income using the effective yield method. Residential Mortgage Loan Origination The Company originates residential mortgage loans to be funded by permanent investors. The Company originates loans in 41 states with a focus on the Southeastern United States. The Company may sell or retain the right to service the loans. Servicing fees are recognized as income when the related mortgage payments are collected based on the outstanding balance of the related residential mortgage loans or on an agreed upon rate. Servicing fee income is reduced by amortization of capitalized servicing rights. The fair value option has been elected for all residential mortgage loans held for sale. As such, residential mortgage loans held for sale are valued at fair value, determined on an individual-loan basis. Additionally, due to such election, origination fees and direct origination costs are immediately recognized in earnings. Market value for conforming, agency loans is determined using sales commitments to permanent investors or on current market rates for loans of similar quality and type (generally Level 2 in the fair value hierarchy). Market value for non-agency, jumbo loans is determined using sales commitments to permanent investors, current market rates for loans of similar quality, or through the use of cash flow models (generally Level 3 in the fair value hierarchy). Residential mortgage loans are included as loans held for sale in the consolidated balance sheets. Conforming, agency loans are generally sold within 15 to 45 days of origination. Non-agency, jumbo loans may either be sold to private investors or held for securitization. Residential real estate properties acquired through foreclosure to be sold are initially recorded at fair value less selling costs at the date of foreclosure, establishing a new cost basis. Any write down to fair value at the time of foreclosure is charged to the allowance for loan losses. After foreclosure, valuations are periodically performed by management and the real estate is carried at the lower of the carrying amount or fair value less costs to sell. Costs related to holding foreclosed real estate and subsequent adjustments to value are expensed. The fair value of real estate owned is determined using unobservable inputs including estimates of selling costs and marketability of the property (Level 3). The unpaid principal balances of loans serviced by the Company for others are not included in the accompanying consolidated balance sheets. Sales of Financial Assets Originated residential mortgage loans are principally sold directly to, or pursuant to programs sponsored by, government-sponsored entities and other investors; however, some residential mortgage loans are sold to private investors. Each type of loan sale agreement is evaluated for sales treatment through a review that includes both an accounting and a legal analysis to determine whether or not the transferred assets have been isolated from the transferor, the extent of the continuing involvement and the existence of any protection provisions. To the extent the loan transfer qualifies as a sale, the asset is derecognized and the gain or loss is recorded on the sale date. In the event the transfer of assets does not qualify as a sale, the transfer would be treated as a secured borrowing. Mortgage Servicing Rights A mortgage servicing right is the right to receive a portion of the interest coupon and fees collected from the mortgagor for performing specified mortgage servicing activities, which consist of collecting loan payments, remitting principal and interest payments to investors, managing escrow funds for the payment of mortgage-related expenses such as taxes and insurance and otherwise administering the mortgage loan servicing portfolio. Mortgage servicing rights are created through either the direct purchase of servicing from a third party or through the sale of an originated mortgage loan. The fair value of residential servicing rights included in the consolidated balance sheets was determined using an estimated current market value at the date of loan origination and other assumptions. Capitalized servicing rights are amortized over the life of the loan, assuming certain prepayment and other assumptions and are evaluated at each reporting date for the lower of cost or fair value. Allowance for Loan Loss The Company maintains an allowance for loan loss. For the Company's CRE, bank and middle market loan portfolios, loans held for investment are first individually evaluated for impairment to determine whether a specific reserve is required. Loans that are not determined to be impaired individually are then evaluated for impairment as a homogeneous pool of loans with substantially similar characteristics so that a general reserve can be established, if needed. The reviews are performed at least quarterly. The Company considers a loan to be impaired if one of two conditions exists. The first condition is if, based on current information and events, management believes that a loss event has occurred which makes it probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The second condition is if the loan is deemed to be a troubled-debt restructuring (“TDR”) where a concession has been given to a borrower in financial difficulty. These TDRs may not have an associated specific loan loss allowance if the principal and interest amount is considered recoverable based on current market conditions, expected collateral performance and/or guarantees made by the borrowers. When a loan is impaired under either of these two conditions, the allowance for loan losses is increased by the amount of the excess of the amortized cost basis of the loan over its fair value. Fair value may be determined based on the present value of estimated cash flows; on market price, if available; or on the fair value of the collateral less estimated disposition costs. When a loan, or a portion thereof, is considered uncollectible and pursuit of collection is not warranted, the Company will record a charge-off or write-down of the loan against the allowance for loan losses. An impaired loan may remain on accrual status during the period in which the Company is pursuing repayment of the loan; however, the loan would be placed on non-accrual status at such time as (i) management believes that scheduled debt service payments will not be met within the coming 12 months; (ii) the loan becomes 90 days delinquent; (iii) management determines the borrower is incapable of, or has ceased efforts toward, curing the cause of the impairment; or (iv) the net realizable value of the loan’s underlying collateral approximates the Company’s carrying value for such loan. While on non-accrual status, the Company recognizes interest income only when an actual payment is received. When a loan is placed on non-accrual, previously accrued interest is reversed from interest income. For the Company's residential mortgage loans, the allowance is based upon management's periodic review of the collectability of the loans in light of historical experience, the nature and amount of the loan portfolio, adverse situations that may affect the borrower's ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific and general components. The specific component relates to loans that are classified as doubtful, substandard, or special mention. For such loans that are also identified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan are lower than the carrying value of that loan. A general component is maintained to cover uncertainties that could affect management's estimate of probable losses. The general component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impaired loans are carried at fair value and are measured on a quarterly basis. The fair value is determined using unobservable inputs including estimates of selling costs (Level 3). Long-Lived and Intangible Assets Long-lived assets and certain identifiable intangibles to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. The review of recoverability is based on an estimate of the future undiscounted cash flows (excluding interest charges) expected to result from the long-lived asset’s use and eventual disposition. If impairment has occurred, the loss will be measured as the excess of the carrying amount of the asset over the fair value of the asset. There was an impairment charge of $2.4 million , on a pre-tax basis, recorded with respect to the Company's intangible assets as of December 31, 2015 , recorded in depreciation and amortization on the Company's consolidated statement of operations. There were no impairment charges recorded with respect to the Company’s investment in real estate or intangible assets during the years ended December 31, 2014 or 2013. Comprehensive Income (Loss) Comprehensive income (loss) for the Company includes net income and the change in net unrealized gains (losses) on available-for-sale securities, derivative instruments used to hedge exposure to interest rate fluctuations and protect against declines in the market value of assets resulting from general market trends as well as translation of currency as a result of the Company's investment in the equity of foreign CDOs. Income Taxes The Company operates in such a manner as to qualify as a real estate investment trust (“REIT”) under the provisions of the Internal Revenue Code of 1986, as amended (the "Code"); therefore, applicable REIT taxable income is included in the taxable income of its shareholders, to the extent distributed by the Company. To maintain REIT status for federal income tax purposes, the Company is generally required to distribute at least 90% of its REIT taxable income to its shareholders as well as comply with certain other qualification requirements as defined under the Code. As a REIT, the Company is not subject to federal corporate income tax to the extent that it distributes 100% of its REIT taxable income each year. Taxable income, from non-REIT activities managed through the Company's TRSs, are subject to federal, state and local income taxes. The Company's TRS' income taxes are accounted for under the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for the temporary differences between the financial reporting basis and tax basis of assets and liabilities. Apidos CDO I, Apidos CDO III, Apidos Cinco CDO, Apidos CLO VIII, Whitney CLO I, Harvest CLO VII, Moselle CLO, Harvest CLO VIII, Harvest X Investor, Harvest CLO X, and Harvest CLO XV Designated Activity Company, the Company's foreign TRSs, are organized as exempted companies incorporated with limited liability under the laws of the Cayman Islands and, with respect to Moselle CLO, Luxembourg and, with respect to Harvest CLO VII, Harvest CLO VIII, Harvest CLO X, and Harvest CLO XV Designated Activity Company, Ireland, and are generally exempt from federal and state income tax at the corporate level because their activities in the United States are limited to trading in stock and securities for their own account. Therefore, despite their status as TRSs, they generally will not be subject to corporate tax on their earnings and no provision for income taxes is required; however, because they are “controlled foreign corporations,” the Company will generally be required to include Apidos CDO I's, Apidos CDO III's, Apidos Cinco CDO's, Apidos CLO VIII's, Whitney CLO I's, Harvest CLO VII’s, Moselle CLO’s, Harvest CLO VIII’s, Harvest X Investor’s, Harvest CLO X’s, and Harvest CLO XV Designated Activity Company’s current taxable income in its calculation of REIT taxable income. On October 27, 2011 the Company reorganized the ownership structure of Apidos CDO I and Apidos CDO III. As a result, the earnings from Apidos CDO I and Apidos CDO III are excluded from the Company's calculation of REIT taxable income and are subject to corporate tax. On January 24, 2012, the Company again reorganized the ownership structure of Apidos CDO I and Apidos CDO III. As a result, for the period January 1, 2012 through January 23, 2012, the earnings from Apidos CDO I and Apidos CDO III are excluded from the Company's calculation of REIT taxable income and are subject to corporate tax. For the period January 24, 2012 through December 31, 2012 the earnings from Apidos CDO I are included in the Company's calculation of REIT taxable income. On December 11, 2012, the Company further reorganized the ownership structure of Apidos CDO III. As a result, for the period from January 24, 2012 through December 10, 2012 the earnings from Apidos CDO III are included in the Company's calculation of REIT taxable income. Also as a result of the reorganization on December 11, 2012, for the period December 11, 2012 through December 31, 2012, the earnings from Apidos CDO III are excluded from the Company's calculation of REIT taxable income and are subject to corporate tax. On November 12, 2012, the Company reorganized the ownership structure of Apidos Cinco CDO and Whitney CLO I. As a result, for the period November 12, 2012 through December 31, 2012, the earnings from Apidos Cinco CDO and Whitney CLO I are excluded from the Company's calculation of REIT taxable income and are subject to corporate tax. Accordingly, a provision for income taxes on the earnings from November 12, 2012 through December 31, 2012 was recorded. On February 13, 2013, the Company reorganized the ownership structure of Apidos Cinco CDO and Whitney CLO I. As a result, for the period January 1, 2013 through February 12, 2013, the earnings from Apidos Cinco CDO and Whitney CLO I are excluded from the Company’s calculation of REIT taxable income and are subject to corporate tax. Accordingly, a provision for income taxes on the earnings from January 1, 2013 through February 12, 2013 has been recorded. Also as a result of the reorganization on February 13, 2013, for the period February 13, 2013 and ending December 31, 2013 the earnings from Apidos Cinco CDO and Whitney CLO I are included in the Company’s calculation of REIT taxable income. On March 8, 2013 the Company reorganized the ownership structure of Apidos CDO III. As a result, the earnings from Apidos CDO III for the period January 1, 2013 through March 7, 2013 are excluded from the Company’s calculation of REIT taxable income and are subject to corporate tax. Accordingly, a provision for income taxes on the earnings from January 1, 2013 through March 7, 2013 has been recorded. Also as a result of the reorganization on March 8, 2013, for the period March 8, 2013 and ending December 31, 2013 the earnings from Apidos CDO III are included in the Company’s calculation of REIT taxable income. On September 10, 2013, the Company acquired approximately 9.5% of the equity of Harvest CLO VII, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of Ireland. This equity is directly owned by a domestic QRS (Qualified REIT Subsidiary) of the Company; therefore, its earnings are included in the Company’s calculation of REIT taxable income. On February 24, 2014, the Company acquired approximately 88.6% of the equity of Moselle CLO S.A., which is a foreign TRS, incorporated in Luxembourg. This equity was directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. On March 27, 2014, the Company acquired approximately 12.6% of the equity of Harvest CLO VIII, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of Ireland. This equity is directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. On July 3, 2014, the Company acquired approximately 55.0% of the equity of Harvest X Investor, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of the Cayman Islands. As of November 6, 2014, the Company’s investment was returned and the Company no longer has an active ownership interest in Harvest X Investor. For the period July 3, 2014 through November 6, 2014 the equity was directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. On November 6, 2014, the Company acquired approximately 32.1% of the equity of Harvest CLO X, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of Ireland. This equity is directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. On September 28, 2015, the Company acquired 100.0% of the equity of Harvest CLO |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | NOTE 3 - VARIABLE INTEREST ENTITIES The Company has evaluated its securities, loans, investments in unconsolidated entities, liabilities to subsidiary trusts issuing preferred securities (consisting of unsecured junior subordinated notes) and its securitizations in order to determine if they are variable interests in VIEs. The Company monitors these legal interests and, to the extent it has determined that it has a variable interest, analyzes the entity for potential consolidation. A VIE is required to be consolidated by its primary beneficiary, which, generally, is the entity that has the power to direct the activities that are most significant to the VIE and the right to receive benefits or the obligation to absorb losses that could potentially be significant to the VIE. The Company continuously analyzes entities in which it holds variable interests, including when there is a reconsideration event, to determine whether such entities are VIEs and whether such potential VIEs should be consolidated or deconsolidated. This analysis requires considerable judgment in determining the primary beneficiary of a VIE and could result in the consolidation of an entity that would otherwise not have been consolidated or the non-consolidation of an entity that otherwise would have been consolidated. Consolidated VIEs (the Company is the primary beneficiary) Based on management’s analysis, the Company is the primary beneficiary of thirteen VIEs at December 31, 2015 : Apidos CDO I, Apidos CDO III, Apidos Cinco CDO, Apidos CLO VIII, RREF CDO 2006-1, RREF CDO 2007-1, Whitney CLO I, RCC CRE Notes 2013, RCC 2014-CRE2, RCC 2015-CRE3, RCC 2015-CRE4, Moselle CLO and RCM Global, LLC. In performing the primary beneficiary analysis for Apidos CDO I, Apidos CDO III, Apidos Cinco CDO, Apidos CLO VIII, RREF CDO 2006-1, RREF CDO 2007-1, RCC CRE Notes 2013, RCC 2014-CRE2, RCC 2015-CRE3, RCC 2015-CRE4 and RCM Global, LLC, it was determined that the parties that have the power to direct the activities that are most significant to each of these VIEs and who have the right to receive benefits and the obligation to absorb losses that could potentially be significant to these VIEs, are a related-party group. It was then determined that the Company was the party within that group that is more closely associated with each such VIE considering the design of the VIE, the principal-agency relationship between the Company and other members of the related-party group, and the relationship and significance of the activities of the VIE to the Company compared to the other members of the related-party group. Apidos CDO I, Apidos CDO III, Apidos Cinco CDO, Apidos CLO VIII, RREF CDO 2006-1, RREF CDO 2007-1, RCC CRE Notes 2013, RCC 2014-CRE2, RCC 2015-CRE3, RCC 2015-CRE4 and RCM Global, LLC were formed on behalf of the Company to invest in real estate-related securities, CMBS, property available-for-sale, bank loans, corporate bonds and asset-backed securities and were financed by the issuance of debt securities. The Manager manages the commercial real estate-related entities on behalf of the Company, and CVC Credit Partners manages the commercial finance-related entities on behalf of the Company. By financing these assets with long-term borrowings through the issuance of bonds, the Company seeks to generate attractive risk-adjusted equity returns and to match the term of its assets and liabilities. The primary beneficiary determination for each of these VIEs was made at each VIE’s inception and is continually assessed. Moselle CLO was a European securitization in which the Company purchased a $30.4 million interest in the form of subordinate notes representing 100% of the Class 1 Subordinated Notes and 67.9% of the Class 2 subordinated Notes in February 2014. The CLO was managed by an independent third-party, and such collateral management activities were determined to be the activities that most significantly impacted the economic performance of the CLO. Though neither the Company nor one of its related parties managed the CLO, due to certain unilateral kick-out rights within the collateral management agreement it was determined that the Company had the power to direct the activities that most significantly impacted the economic performance of Moselle CLO. Having both the power to direct the activities that most significantly impact Moselle CLO and a financial interest that was expected to absorb both positive and negative variability in the CLO that could potentially be significant, the Company was determined to be the primary beneficiary of Moselle CLO and, therefore, consolidated the CLO. During the fourth quarter of 2014, the CLO began the liquidation process and all assets were subsequently sold. Whitney CLO I was a securitization in which the Company acquired rights to manage the collateral assets held by the entity in February 2011. For a discussion on the primary beneficiary analysis for Whitney, see “— Unconsolidated VIEs – Resource Capital Asset Management,” below. On July 9, 2014, RCC Residential together with Resource America and certain Resource America employees acquired through RCM Global a portfolio of securities from JP Morgan for $23.5 million . The portfolio is managed by Resource America. RCC Residential c ontributed $15.0 million for a 63.8% membership interest. E ach of the members of RCM Global is allocated revenues and expenses of RCM Global in accordance with his or her membership interest. RCM Global was determined to be a VIE based on the equity holders' inability to direct the activities that are most significant to the entity. The Company was determined to be the the primary beneficiary of RCM Global and, therefore, consolidated the entity. The Company's ownership interest of the portfolio's remaining assets was 30.2% as of December 31, 2015 . In September 2014, the Company contributed $17.5 million to Pelium Capital for an initial ownership interest of 80.4% . Pelium Capital is a specialized credit opportunity fund managed by Resource America. The Company funded its final commitment of $2.5 million , as of February 1, 2015. The Company will receive 10% of the carried interest in the partnership for the first five years which can increase its interest to 20% if the Company's capital contributions aggregate $40.0 million . Resource America contributed cash of $2.8 million to the formation of Pelium Capital. The portion of the fund that the Company does not own is presented as non-controlling interests as of the dates and for the periods presented in the Company's consolidated financial statements. All intercompany accounts and transactions have been eliminated in consolidation. Pelium Capital was determined not to be a VIE as there was sufficient equity at risk, the Company does not have disproportionate voting rights and Pelium Capital's partners have all of the following characteristics: (1) the power to direct the activities of Pelium; (2) the obligation to absorb losses; and (3) the right to receive residual returns. However, Pelium Capital was consolidated as a result of the Company's majority ownership and the Company's unilateral kick-out rights. The non-controlling interest in Pelium Capital is owned by Resource America and outside investors. All intercompany accounts and transactions have been eliminated in consolidation. The Company's interest in Pelium Capital was 80.2% as of December 31, 2015 . On June 24, 2015, the Company committed up to $50.0 million in Pearlmark Mezzanine Realty Partners IV, L.P. ("Pearlmark Mezz IV L.P."), a Delaware limited partnership created to acquire and manage financial interests in commercial real estate property. The contractual fund manager of the fund is Pearlmark Real Estate LLC ("Pearlmark"), a Delaware limited liability company that is 50% owned by Resource America. Pearlmark Mezz IV L.P. was determined not to be a VIE as there was sufficient equity at risk to finance its activities independently and the equity holders have the power to direct the activities of the entity that most significantly impact its economic performance, the right to receive the residual returns of the entity and the obligation to absorb the losses of the entity. However, because the Company's equity interest is passive and does not contain substantive participating rights and/or unilateral kick-out rights, Pearlmark Mezz IV L.P. was not consolidated. The Company will pay Pearlmark Mezz IV L.P. management fees of 1.0% on the unfunded committed capital and 1.5% on the invested capital. The Company is entitled to a management fee rebate of 25% for the first year of the fund. As of December 31, 2015 , the Company has an investment balance of $6.5 million and a 47.42% ownership interest in the fund. For a discussion of the Company’s securitizations, see Note 1 , and for a discussion of the debt issued through the securitizations, see Note 13 . For consolidated CLOs in which the Company does not own 100% of the subordinated notes, the Company imputes an interest rate using expected cash flows over the life of the CLO and records the third party's share of the cash flows as interest expense on the consolidated statements of operations. The Company has exposure to losses on its securitizations to the extent of its subordinated debt and preferred equity interests in them. The Company is entitled to receive payments of principal and interest on the debt securities it holds and, to the extent revenues exceed debt service requirements and other expenses of the securitizations, distributions with respect to its preferred equity interests. As a result of consolidation, debt and equity interests the Company holds in these securitizations have been eliminated, and the Company’s consolidated balance sheets reflect both the assets held and debt issued by the securitizations to third parties and any accrued expense to third parties. The Company's operating results and cash flows include the gross amounts related to the securitizations' assets and liabilities as opposed to the Company's net economic interests in the securitizations. Assets and liabilities related to the securitizations are disclosed, in the aggregate, on the Company's consolidated balance sheets. The creditors of the Company’s thirteen consolidated VIEs have no recourse to the general credit of the Company. However, in its capacity as manager, the Company has voluntarily supported two credits in one of its commercial real estate CDOs as the credits went through a restructuring in order to maximize their future cash flows. The Company provided no financial support for the year ended December 31, 2015 . For the years ended December 31, 2014 and 2013 , the Company has provided financial support of $219,000 and $166,000 , respectively. The Company has provided no other financial support to any other of its VIEs nor does it have any requirement to do so, although it may choose to do so in the future to maximize future cash flows on such investments by the Company. There are no explicit arrangements that obligate the Company to provide financial support to any of its consolidated VIEs. The following table shows the classification and carrying value of assets and liabilities of consolidated VIEs as of December 31, 2015 (in thousands): Apidos I Apidos Apidos Whitney CLO I RREF RREF RCC CRE Notes 2013 RCC 2014-CRE2 RCC 2015-CRE3 RCC 2015-CRE4 Moselle RCM Global, LLC Total ASSETS (3) Cash and cash equivalents $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 95 $ 95 Restricted cash (1) 82 125 16,693 116 22 — 1,296 18,952 — 1,775 — — 39,061 Investment securities — — 6,584 — 5,956 49,821 — — — — — 3,776 66,137 Loans, pledged as collateral — — 133,234 — 70,450 160,904 103,761 296,606 343,348 308,138 — — 1,416,441 Loans held for sale 153 — 1,322 — — — — — — — — — 1,475 Interest receivable — — 663 — 730 1,061 474 1,164 1,316 1,184 — — 6,592 Prepaid assets — — 18 — 79 61 19 21 21 19 — — 238 Principal paydown receivable — — — — 17,700 — — — — — — 100 17,800 Other assets — — — — — — — — — — — 833 833 Total assets (2) $ 235 $ 125 $ 158,514 $ 116 $ 94,937 $ 211,847 $ 105,550 $ 316,743 $ 344,685 $ 311,116 $ — $ 4,804 $ 1,548,672 LIABILITIES Borrowings $ — $ — $ 135,417 $ — $ 52,772 $ 91,752 $ 57,801 $ 195,603 $ 278,661 $ 220,575 $ — $ — $ 1,032,581 Accrued interest expense — — 211 — 19 63 73 130 247 180 — — 923 Derivatives, at fair value — — — — 83 3,263 — — — — — — 3,346 Unsettled loan purchases — — — — — — — — — — — — — Accounts payable and — — 11 — — — 3 21 — — (154 ) 2 (117 ) Total liabilities $ — $ — $ 135,639 $ — $ 52,874 $ 95,078 $ 57,877 $ 195,754 $ 278,908 $ 220,755 $ (154 ) $ 2 $ 1,036,733 (1) Includes $22.0 million designated to fund future commitments on specific commercial real estate loans in certain of the securitizations. (2) Assets of each of the consolidated VIEs may only be used to settle the obligations of each respective VIE. (3) In October 2013, the Company liquidated Apidos CLO VIII and all of the assets were sold. However, the Company still owns its share of beneficial interests that caused it to consolidate it. Unconsolidated VIEs (the Company is not the primary beneficiary, but has a variable interest) Based on management’s analysis, the Company is not the primary beneficiary of the VIEs discussed below since it does not have both (i) the power to direct the activities that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb the losses of the VIE or the right to receive the benefits from the VIE, which could be significant to the VIE. Accordingly, the following VIEs are not consolidated in the Company’s financial statements as of December 31, 2015 . The Company’s maximum exposure to risk for each of these unconsolidated VIEs is set forth in the “Maximum Exposure to Loss” column in the table below. LEAF Commercial Capital, Inc. On November 16, 2011, the Company together with LEAF Financial, Inc. ("LEAF Financial"), a subsidiary of Resource America, and LEAF Commercial Capital, Inc. (“LCC”), another subsidiary of Resource America, entered into a stock purchase agreement and related agreements (collectively the “SPA”) with Eos Partners, L.P., a private investment firm, and its affiliates (“Eos”). In exchange for its prior interests in its lease related investments, the Company received 31,341 shares of Series A Preferred Stock (the "Series A Preferred Stock"), 4,872 shares of newly issued 8% Series B Redeemable Preferred Stock (the "Series B Preferred Stock") and 2,364 shares of newly issued Series D Redeemable Preferred Stock (the "Series D Preferred Stock"), collectively representing, on a fully-diluted basis assuming conversion, a 26.7% interest in LCC. At the time of investment, the Company’s investment in LCC was valued at $36.3 million based on a third-party valuation at that time. During 2013, the Company entered into a third stock purchase agreement with LCC to purchase 3,682 shares of newly issued Series A-1 Preferred Stock (the "Series A-1 Preferred Stock") for $3.7 million and 4,445 shares of newly issued Series E Preferred Stock (the "Series E Preferred Stock") for $4.4 million . The Series E Preferred Stock has priority over all other classes of preferred stock. The Company's fully-diluted interest in LCC assuming conversion is 29.0% as of December 31, 2015 . The Company’s investment in LCC was recorded at $42.0 million and $39.4 million as of December 31, 2015 and 2014 , respectively. The Company determined that it is not the primary beneficiary of LCC because it does not participate in any management or portfolio decisions, holds only two of six board positions, and only controls 29.0% of the voting rights in the entity. Furthermore, Eos holds consent rights with respect to significant LCC actions, including incurrence of indebtedness, consummation of a sale of the entity, liquidation or initiating a public offering. Unsecured Junior Subordinated Debentures The Company has a 100% interest in the common shares of Resource Capital Trust I (“RCT I”) and RCC Trust II (“RCT II”), recorded at a collective cost of $1.5 million (or 3% of each trust). RCT I and RCT II were formed for the purposes of providing debt financing to the Company, as described below. The Company completed a qualitative analysis to determine whether or not it is the primary beneficiary of each of the trusts and determined that it was not the primary beneficiary of either trust because it does not have the power to direct the activities most significant to the trusts, which include the collection of principal and interest and protection of collateral through servicing rights. Accordingly, neither trust is consolidated into the Company’s consolidated financial statements. The Company records its investments in RCT I and RCT II’s common shares as investments in unconsolidated trusts using the cost method and records dividend income when declared by RCT I and RCT II. The trusts each hold subordinated debentures for which the Company is the obligor in the amount of $25.8 million for RCT I and $25.8 million for RCT II. The debentures were funded by the issuance of trust preferred securities of RCT I and RCT II. The Company will continuously reassess whether it should be deemed to be the primary beneficiary of the trusts. Resource Capital Asset Management CLOs In February 2011, the Company purchased a company that managed bank loan assets through five CLOs. As a result, the Company became entitled to collect senior, subordinated and incentive management fees from these CLOs. The purchase price of $22.5 million resulted in an intangible asset that was allocated to each of the five CLOs and is amortized over the expected life of each CLO. The unamortized balance of the intangible asset was $5.3 million and $9.4 million at December 31, 2015 and 2014 , respectively. The Company recognized fee income of $3.9 million , $5.1 million and $5.3 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. With respect to four of these CLOs, the Company determined that it does not hold a controlling financial interest and, therefore, is not the primary beneficiary. One of the CLOs was liquidated in February 2013. With respect to the fifth CLO, Whitney CLO I, in October 2012, the Company purchased 66.6% of its preferred equity, which resulted in consolidation. Based upon that purchase, the Company determined that it had an obligation to absorb losses and/or the right to receive benefits that could potentially be significant to Whitney CLO I and that a related party had the power to direct the activities that are most significant to the VIE. As a result, together with the related party, the Company had both the power to direct and the right to receive benefits and the obligation to absorb losses. It was then determined that, between the Company and the related party, the Company was the party within that group that was more closely associated with Whitney CLO I because of its preferred equity interest in Whitney CLO I. The Company, therefore, consolidated Whitney CLO I. In May 2013, the Company purchased additional equity in this CLO which increased its ownership of outstanding preferred equity to 68.3% . In September 2013, the Company liquidated Whitney CLO I, and, as a result, all of the assets were sold. In January 2016 another RCAM-managed CLO was called and $2.4 million of impairment, on a pre-tax basis, was recorded in depreciation and amortization on the Company's consolidated statements of operations on the related intangible asset, as of December 31, 2015 . Investment in ZAIS In February 2015, the Company made an investment in ZAIS CLO 4 Limited, an offshore financing vehicle created to acquire and warehouse syndicated bank loans, through its wholly-owned, indirect subsidiary ZAIS and through its consolidated subsidiary Pelium Capital together with a certain Resource America employee. The Company, through ZAIS and Pelium Capital, committed to invest $10.0 million and $3.0 million , respectively, during the vehicle's warehousing period. The vehicle is managed by ZAIS Leveraged Loan Manager 4, LLC (the “Collateral Manager”), an entity unrelated to the Company or to Pelium Capital, and such collateral management activities were determined to be the activities that most significantly impacted the economic performance of the entity. The Collateral Manager can be replaced either for cause by the entity’s administrative agent if there is an event of default or by a unanimous vote of the entity’s equity investors, excluding any preference shares held by the Collateral Manager or its affiliates. Although the Company has an investment in the entity that is potentially significant, because it was determined that the Company did not have the ability to kick out the Collateral Manager, the Company was not determined to be the primary beneficiary and, hence, not required to consolidate ZAIS CLO 4, Limited. As of December 31, 2015 , the Company had invested $10.0 million and $3.0 million through ZAIS and Pelium Capital, respectively. The Company accounts for its investment in ZAIS as an investment security available-for-sale in its consolidated financial statements. Investments in the Harvest CLO Securities In September 2013 and March 2014, the Company made investments in Harvest CLO VII Limited and Harvest CLO VIII Limited (collectively, the “Harvest Securities”), respectively, offshore limited liability companies created to acquire syndicated bank loans and issue collateral loan obligations, through its wholly-owned, direct subsidiary Commercial II. The Harvest Securities are managed by 3i Debt Management Investments Limited (the “Portfolio Manager”), an entity unrelated to the Company, and such collateral management activities were determined to be the activities that most significantly impacted the economic performance of the entity. The Portfolio Manager can be replaced only for cause by the Harvest Securities’ trustee. Although the Company has investments in the Harvest Securities that are potentially significant, because it was determined that the Company did not have the ability to unilaterally kick out the Portfolio Manager, the Company was not determined to be the primary beneficiary and, hence, not required to consolidate the Harvest Securities. As of December 31, 2015, the Company had investments of $3.9 million in Harvest CLO VII Limited and $4.5 million in Harvest CLO VIII Limited. The Company accounts for its investments in the Harvest Securities as investment securities available-for-sale in its consolidated financial statements. Investment in Harvest CLO XV Designated Activity Company In September 2015, the Company made an investment in Harvest CLO XV Designated Activity Company ("Harvest XV"), an offshore financing vehicle created to acquire and warehouse syndicated bank loans, through its wholly-owned, direct subsidiary Commercial II. The vehicle is managed by 3i Debt Management Investments Limited (the “Collateral Manager”), an entity unrelated to the Company, and such collateral management activities were determined to be the activities that most significantly impacted the economic performance of the entity. The Collateral Manager can be replaced only for cause by the entity’s administrative agent. Although the Company has an investment in the entity that is potentially significant, because it was determined that the Company did not have the ability to unilaterally kick out the Collateral Manager, the Company was not determined to be the primary beneficiary and, hence, not required to consolidate Harvest XV. As of December 31, 2015 , the Company had an investment of $10.6 million in Harvest XV's warehouse. The Company accounts for its investment in Harvest XV as an investment security available-for-sale in its consolidated financial statements. The following table shows the classification, carrying value and maximum exposure to loss with respect to the Company’s unconsolidated VIEs as of December 31, 2015 (in thousands): Unconsolidated Variable Interest Entities LCC Unsecured Resource Investments in ZAIS and Harvest Total Maximum Investment in unconsolidated entities $ 42,017 $ 1,548 $ — $ 31,586 $ 75,151 $ 75,151 Intangible assets — — 5,316 — 5,316 $ 5,316 Total assets 42,017 1,548 5,316 31,586 80,467 Borrowings — 51,413 — — 51,413 N/A Total liabilities — 51,413 — — 51,413 N/A Net asset (liability) $ 42,017 $ (49,865 ) $ 5,316 $ 31,586 $ 29,054 N/A As of December 31, 2015 , there were no explicit arrangements or implicit variable interests that could require the Company to provide financial support to any of its unconsolidated VIEs. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | NOTE 4 - SUPPLEMENTAL CASH FLOW INFORMATION Supplemental disclosure of cash flow information (in thousands): Years Ended December 31, 2015 2014 2013 Non-cash operating activities include the following: Reclassification of linked transactions, net at fair value to investment securities available-for-sale, pledged as collateral, at fair value and borrowings (1) $ 15,367 $ — $ — Non-cash investing activities include the following: Reclassification of linked transactions, net at fair value to investment securities available-for-sale, pledged as collateral, at fair value (1) $ 48,764 $ — $ — Assumption of direct financing leases and other assets (2) $ — $ 2,385 $ — Non-cash financing activities include the following: Distributions on common stock accrued but not paid $ 13,274 $ 26,563 $ 25,536 Distribution on preferred stock accrued but not paid $ 4,077 $ 6,044 $ 2,159 Contribution of security deposits and other liabilities (2) $ — $ 457 $ — Reclassification of linked transactions, net at fair value to borrowings (1) $ 33,397 $ — $ — (1) As a result of an accounting standards update adopted on January 1, 2015 ( see Note 2 ), the Company unlinked its previously linked transactions, resulting in non-cash increases in both its investment securities available-for-sale, pledged as collateral, at fair value and related repurchase agreements borrowings balances. (2) On December 31, 2014, the Company assumed direct financing leases and related assets and liabilities in satisfaction of a loan receivable from a related party. |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
RESTRICTED CASH | NOTE 5 - RESTRICTED CASH The following summarizes the Company's restricted cash (in thousands): December 31, 2015 2014 Restricted cash: Cash held by consolidated securitizations $ 39,062 $ 121,247 Restricted cash pledged with minimum reserve balance requirements 218 209 Cash collateralizing outstanding margin calls on cash flow hedges 500 500 Cash collateralizing margin posted on forward/short positions 855 182 $ 40,635 $ 122,138 |
INVESTMENT SECURITIES, TRADING
INVESTMENT SECURITIES, TRADING | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES, TRADING | NOTE 6 - INVESTMENT SECURITIES, TRADING Structured notes are CLO debt securities collateralized by syndicated bank loans, and RMBS is a type of mortgage-backed debt obligation whose cash flows come from residential mortgage debt. The following table summarizes the Company's structured notes and RMBS that are classified as investment securities, trading and carried at fair value (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value As of December 31, 2015: Structured notes $ 28,576 $ 1,674 $ (4,700 ) $ 25,550 RMBS 1,896 — (1,896 ) — Total $ 30,472 $ 1,674 $ (6,596 ) $ 25,550 As of December 31, 2014: Structured notes $ 22,876 $ 1,098 $ (3,188 ) $ 20,786 RMBS 1,896 — (1,896 ) — Total $ 24,772 $ 1,098 $ (5,084 ) $ 20,786 The Company sold 19 and nine securities during the years ended December 31, 2015 and 2014 , for a net realized gain of $1.4 million and $3.0 million , respectively. The Company held 56 and 37 investment securities, trading as of December 31, 2015 and 2014 , respectively. |
INVESTMENT SECURITIES AVAILABLE
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | 12 Months Ended |
Dec. 31, 2015 | |
Available-for-sale Securities [Abstract] | |
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | NOTE 7 - INVESTMENT SECURITIES AVAILABLE-FOR-SALE The following table summarizes the Company's investment securities, including those pledged as collateral and classified as available-for-sale, which are carried at fair value (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value (1) As of December 31, 2015: CMBS $ 158,584 $ 2,631 $ (1,791 ) $ 159,424 RMBS 2,156 122 (88 ) 2,190 ABS 41,994 3,218 (998 ) 44,214 Corporate Bonds 2,422 — (162 ) 2,260 Total $ 205,156 $ 5,971 $ (3,039 ) $ 208,088 As of December 31, 2014: CMBS $ 168,669 $ 4,938 $ (3,202 ) $ 170,405 RMBS 29,814 937 — 30,751 ABS 55,617 16,876 (336 ) 72,157 Corporate Bonds 2,415 10 (18 ) 2,407 Total $ 256,515 $ 22,761 $ (3,556 ) $ 275,720 (1) As of December 31, 2015 and 2014 , $162.3 million and $ 197.8 million , respectively, of securities were pledged as collateral security under related financings. The following table summarizes the estimated maturities of the Company’s CMBS, RMBS, ABS and corporate bonds according to their estimated weighted average life classifications (in thousands, except percentages): Weighted Average Life Fair Value Amortized Cost Weighted Average Coupon As of December 31, 2015: Less than one year $ 117,221 (1) $ 118,215 7.13% Greater than one year and less than five years 71,370 68,808 5.31% Greater than five years and less than ten years 12,382 11,271 10.45% Greater than ten years 7,115 6,862 16.85% Total $ 208,088 $ 205,156 7.03% As of December 31, 2014: Less than one year $ 78,095 (1) $ 79,649 4.13% Greater than one year and less than five years 115,302 100,909 4.64% Greater than five years and less than ten years 20,177 17,516 16.45% Greater than ten years 62,146 58,441 7.86% Total $ 275,720 $ 256,515 6.08% (1) The Company expects that the maturity date of these CMBS and ABS will either be extended or that they will be paid in full. The contractual maturities of the CMBS investment securities available-for-sale range from January 2016 to December 2022 . The contractual maturity date of RMBS investment securities available-for-sale is June 2029 . The contractual maturities of the ABS investment securities available-for-sale range from February 2017 to October 2050 . The contractual maturities of the corporate bond investment securities available-for-sale range from May 2016 to December 2019 . The following table shows the fair value, gross unrealized losses and number of securities aggregated by investment category and length of time, that individual investment securities available-for-sale have been in a continuous unrealized loss position during the periods specified (in thousands, except number of securities): Less than 12 Months More than 12 Months Total Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized Number of As of December 31, 2015: CMBS $ 79,570 $ (849 ) 31 $ 13,783 $ (942 ) 15 $ 93,353 $ (1,791 ) 46 RMBS 1,157 (88 ) 2 — — — 1,157 (88 ) 2 ABS 2,330 (824 ) 5 668 (174 ) 5 2,998 (998 ) 10 Corporate bonds 65 (18 ) 1 1,327 (144 ) 1 1,392 (162 ) 2 Total temporarily $ 83,122 $ (1,779 ) 39 $ 15,778 $ (1,260 ) 21 $ 98,900 $ (3,039 ) 60 As of December 31, 2014: CMBS $ 35,860 $ (555 ) 22 $ 25,583 $ (2,647 ) 13 $ 61,443 $ (3,202 ) 35 ABS 1,000 (278 ) 8 958 (58 ) 3 1,958 (336 ) 11 Corporate bonds 1,447 (18 ) 1 — — — 1,447 (18 ) 1 Total temporarily $ 38,307 $ (851 ) 31 $ 26,541 $ (2,705 ) 16 $ 64,848 $ (3,556 ) 47 The unrealized losses in the above table are considered to be temporary impairments due to market factors and are not reflective of credit deterioration. During the years ended December 31, 2015 , 2014 and 2013 , the Company recognized other-than-temporary impairment losses of $372,000 , $0 , and $863,000 , respectively, on investment securities available-for-sale. The following table summarizes the Company's sales of investment securities available-for-sale during the period indicated (in thousands, except number of securities): Positions Positions Redeemed Par Amount Sold/Redeemed Realized Gain (Loss) For the Year Ended December 31, 2015: ABS 24 3 $ 69,901 $ 9,197 RMBS 6 — $ 28,305 $ 984 CMBS 1 — $ 3,000 $ (58 ) For the Year Ended December 31, 2014: ABS 8 1 $ 14,074 $ 2,948 Corporate bond — 2 $ 1,630 $ 48 CMBS 5 — $ 27,370 $ 573 |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2015 | |
LOANS HELD FOR INVESTMENT [Abstract] | |
LOANS | NOTE 8 - LOANS The following is a summary of the Company’s loans (in thousands): Loan Description Principal Unamortized (Discount) Premium (1) Carrying Value (2) As of December 31, 2015: Commercial real estate loans: Whole loans $ 1,640,744 $ (9,943 ) $ 1,630,801 B notes 15,934 — 15,934 Mezzanine loans 45,368 4 45,372 Total commercial real estate loans 1,702,046 (9,939 ) 1,692,107 Bank loans 134,890 (373 ) 134,517 Middle market loans 380,687 (1,235 ) 379,452 Residential mortgage loans, held for investment 1,746 — 1,746 Subtotal loans before allowance 2,219,369 (11,547 ) 2,207,822 Allowance for loan loss (47,071 ) — (47,071 ) Total loans held for investment, net of allowance 2,172,298 (11,547 ) 2,160,751 Bank loans held for sale 1,475 — 1,475 Residential mortgage loans held for sale, at fair value (3) 94,471 — 94,471 Total loans held for sale 95,946 — 95,946 Total loans, net $ 2,268,244 $ (11,547 ) $ 2,256,697 As of December 31, 2014: Commercial real estate loans: Whole loans $ 1,271,121 $ (7,529 ) $ 1,263,592 B notes 16,120 (48 ) 16,072 Mezzanine loans 67,446 (80 ) 67,366 Total commercial real estate loans 1,354,687 (7,657 ) 1,347,030 Bank loans 332,058 (1,410 ) 330,648 Middle market loans 250,859 (746 ) 250,113 Residential mortgage loans, held for investment 2,802 — 2,802 Subtotal loans before allowance 1,940,406 (9,813 ) 1,930,593 Allowance for loan loss (4,613 ) — (4,613 ) Total loans held for investment, net of allowance 1,935,793 (9,813 ) 1,925,980 Bank loans held for sale 282 — 282 Residential mortgage loans held for sale, at fair value (3) 113,393 — 113,393 Total loans held for sale 113,675 — 113,675 Total loans, net $ 2,049,468 $ (9,813 ) $ 2,039,655 (1) Amounts include deferred amendment fees of $42,000 and $88,000 and deferred upfront fees of $12,000 and $82,000 being amortized over the life of the bank loans as of December 31, 2015 and 2014 , respectively. Amounts also include unamortized loan origination fees of $9.9 million and $7.6 million as of December 31, 2015 and 2014 , respectively. (2) Substantially all loans are pledged as collateral under various borrowings at December 31, 2015 and 2014 , respectively. (3) Amortized cost approximates fair value. Commercial Real Estate Loans The following is a summary of the Company’s commercial real estate loans held for investment (in thousands): Description Quantity Amortized Cost Contracted Interest Rates Maturity Dates (3) As of December 31, 2015: Whole loans, floating rate (1)(4)(5)(6)(7)(10) 87 $ 1,630,801 LIBOR plus 1.75% to February 2016 to February 2019 B notes, fixed rate (11) 1 15,934 8.68% April 2016 Mezzanine loans, fixed rate (9) 2 45,372 9.01% September 2016 Total (2) 90 $ 1,692,107 As of December 31, 2014: Whole loans, floating rate (1) (5) (6) 73 $ 1,263,592 LIBOR plus 1.75% to May 2015 to February 2019 B notes, fixed rate 1 16,072 8.68% April 2016 Mezzanine loans, floating rate 1 12,558 LIBOR plus 15.32% April 2016 Mezzanine loans, fixed rate (8) 3 54,808 0.50% to 18.71% January 2016 to Total (2) 78 $ 1,347,030 (1) Whole loans had $112.6 million and $105.1 million in unfunded loan commitments as of December 31, 2015 and 2014 , respectively. These unfunded commitments are advanced as the borrowers formally request additional funding as permitted under the loan agreement and any necessary approvals have been obtained. (2) Totals do not include an allowance for loan loss of $41.8 million and $4.0 million as of December 31, 2015 and 2014 , respectively. (3) Maturity dates do not include possible extension options that may be available to the borrowers, or maturity dates associated with loans that are fully reserved. (4) Includes two whole loans with a combined $51.2 million senior component that entered into modifications in 2015 that resulted in a fixed rate of 0.50% as of December 31, 2015 . The two loans were previously identified as TDR's. (5) Includes two whole loans with a combined $12.0 million mezzanine component that have fixed rates of 12.0% , and two whole loans with a combined $4.2 million mezzanine component that have fixed rates of 15.0% at December 31, 2015 and 2014 , respectively. (6) Includes a $799,000 junior mezzanine tranche of a whole loan that has a fixed rate of 10.0% as of December 31, 2015 and 2014 . (7) Contractual interest rate does not include a whole loan with an amortized cost of $32.5 million that entered into a modification in 2015 which reduced the floating rate spread to 1.00% as of December 31, 2015 . The loan was previously identified as a TDR. (8) Fixed rate mezzanine loans include a mezzanine loan that was modified into two tranches, which both currently pay interest at 0.50% . In addition, the subordinate tranche accrues interest at LIBOR plus 18.50% which is deferred until maturity. (9) Contractual interest rates and maturity dates do not include rates or maturity dates associated with one loan with an amortized cost of $38.1 million that was fully reserved as of June 30, 2015. (10) Floating rate whole loans includes a loan with an amortized cost of $13.0 million which extended to February 2017 from February 2016. (11) Fixed rate B notes includes a loan with an amortized cost of $15.9 million which paid off in January 2016. The following is a summary of the contractual maturity of the Company’s commercial real estate loans, at amortized cost (in thousands): Description 2016 2017 2018 and Thereafter Total As of December 31, 2015: B notes $ 15,934 $ — $ — $ 15,934 Mezzanine loans 13,011 — 32,361 45,372 Whole loans 9,958 140,712 1,480,131 1,630,801 Total (1) $ 38,903 $ 140,712 $ 1,512,492 $ 1,692,107 As of December 31, 2014: 2015 2016 2017 and Thereafter Total B notes $ — $ 16,072 $ — $ 16,072 Mezzanine loans 5,711 16,736 44,919 67,366 Whole loans — 27,665 1,235,927 1,263,592 Total (1) $ 5,711 $ 60,473 $ 1,280,846 $ 1,347,030 (1) Contractual maturity of commercial real estate loans assumes full exercise of extension options available to borrowers. At December 31, 2015 , approximately 28.7% , 26.8% and 7.4% of the Company's commercial real estate portfolio was concentrated in California, Texas and Georgia, respectively. At December 31, 2014, approximately 27.4% , 27.3% and 7.3% of the Company's commercial real estate loan portfolio was concentrated in California, Texas and Arizona, respectively. Bank Loans The following table provides information as to the lien position and status of the Company's bank loans, at amortized cost (in thousands): Apidos I Apidos III Apidos Cinco Total As of December 31, 2015: Loans held for investment: First lien loans $ — $ — $ 131,281 $ 131,281 Second lien loans — — 1,692 1,692 Third lien loans — — — — Defaulted first lien loans — — 1,544 1,544 Defaulted second lien loans — — — — Total — — 134,517 134,517 First lien loans held for sale at fair value 153 — 1,322 1,475 Total $ 153 $ — $ 135,839 $ 135,992 As of December 31, 2014: Loans held for investment: First lien loans $ 153 $ 80,196 $ 245,377 $ 325,726 Second lien loans — — 3,572 3,572 Third lien loans — — — — Defaulted first lien loans — — — — Defaulted second lien loans — 971 379 1,350 Total 153 81,167 249,328 330,648 First lien loans held for sale at fair value — — 282 282 Total $ 153 $ 81,167 $ 249,610 $ 330,930 At December 31, 2015 , the Company’s bank loan portfolio, including loans held for sale, consisted of $134.7 million (net of allowance of $1.3 million ) of floating rate loans, which bear interest ranging between the three month London Interbank Offered Rate (“LIBOR”) plus 1.25% and the three month LIBOR plus 8.00% with maturity dates ranging from January 2016 to August 2021 . At December 31, 2014 , the Company’s bank loan portfolio, including loans held for sale, consisted of $330.4 million (net of allowance of $570,000 ) of floating rate loans, which bear interest ranging between the three month LIBOR plus 1.25% , and the three month LIBOR plus 8.75% with maturity dates ranging from January 2015 to February 2024 . The following is a summary of the weighted average maturity of the Company’s bank loans loans, at amortized cost and loans held-for-sale, at the lower of the cost or market (in thousands): December 31, 2015 2014 One year or less $ 3,922 $ 7,829 Greater than one year and less than five years 128,480 274,332 Five years or greater 3,590 48,769 Total $ 135,992 $ 330,930 At December 31, 2015 , approximately 13.5% , 13.0% and 9.6% of the Company's bank loans portfolio was concentrated in the collective industry grouping of automobile, diversified/conglomerate service and retail stores, respectively. At December 31, 2014 , approximately 17.5% , 11.7% and 6.7% of the Company’s bank loan portfolio was concentrated in the collective industry grouping of healthcare, education and childcare, diversified/conglomerate service and chemicals, plastics and rubber, respectively. Middle Market Loans The following table provides information as to the lien position and status of middle market loans, at carrying value (in thousands): December 31, 2015 2014 First Lien $ 248,367 $ 149,287 Second Lien 127,146 100,826 Total $ 375,513 $ 250,113 At December 31, 2015 , the Company’s middle market loan portfolio consisted of $ 375.5 million (net of allowance of $3.9 million ) of floating rate loans, bearing interest of one or three month LIBOR plus a spread ranging from 6.25% and 12.00% with maturity dates from December 2016 through July 2023 . At December 31, 2014 , the Company’s middle market loan portfolio consisted of $ 250.1 million of floating rate loans, bearing interest of one or three month LIBOR plus a spread ranging from 5.50% and 9.25% with maturity dates from December 2016 through November 2022 . The following is a summary of the weighted average maturity of the Company’s middle market loans, at carrying value (in thousands): December 31, 2015 2014 One year or less $ 14,960 $ — Greater than one year and less than five years 250,709 132,353 Five years or greater 109,844 117,760 $ 375,513 $ 250,113 At December 31, 2015 , approximately 12.8% and 12.4% , respectively, of the Company’s middle market loan portfolio was concentrated in the collective industry groupings of diversified/conglomerate service and healthcare, education and childcare. At December 31, 2014 , approximately 13.7% and 13.1% , respectively, of the Company’s middle market loan portfolio was concentrated in the collective industry groupings of personal, food and miscellaneous services and hotels, motels, inns and gaming. Residential Mortgage Loans The Company originates and services residential mortgage loans through its indirect wholly-owned subsidiary PCM. PCM is an approved seller/servicer for the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Government National Mortgage Association and is licensed to originate loans insured by the Federal Housing Administration, the Department of Veterans Affairs and the United States Department of Agriculture and is licensed to transact business in 41 states. In order to maintain its licenses and status as an approved seller/servicer, PCM must meet certain capital requirements. PCM was in compliance with those capital requirements as of December 31, 2015. Residential mortgage loans held for sale, at fair value, consisted of $29.2 million and $65.3 million of agency-conforming and jumbo mortgage loans (net of allowance of $11,000 ), respectively, as of December 31, 2015 . Residential mortgage loans held for sale, at fair value, consisted of $28.9 million and $82.6 million of agency-conforming and jumbo mortgage loans, respectively, as of December 31, 2014 . During the year ended December 31, 2015 , approximately 44.9% of the Company's residential mortgage loans were originated in Georgia, 11.2% in Utah, 9.1% in Virginia, 4.4% in Florida, and 4.1% in Colorado. During the year ended December 31, 2014 , approximately 56.0% of the Company's residential mortgage loans were originated in Georgia, 8.0% in Utah, 7.0% in Virginia, 5.0% in Alabama and 4.0% in Tennessee. Allowance for Loan Losses The following is a summary of the allocation of the allowance for loan loss with respect to the Company’s loans (in thousands, except percentages) by asset class: Description Allowance for Loan Loss Percentage of Total Allowance As of December 31, 2015: B notes $ 15 0.03% Mezzanine loans 38,079 80.90% Whole loans 3,745 7.96% Bank loans 1,282 2.72% Middle market loans 3,939 8.37% Residential mortgage loans 11 0.02% Total $ 47,071 As of December 31, 2014: B notes $ 55 1.19% Mezzanine loans 230 4.99% Whole loans 3,758 81.46% Bank loans 570 12.36% Total $ 4,613 Principal Paydown Receivables Principal paydown receivables represent the portion of the Company's loan portfolio for which indication has been provided through its various servicers, trustees, or its asset management group that a payoff or paydown of a loan has been received but for which, as of period end, the Company has not received and applied such cash to the outstanding loan balance. At December 31, 2015 , principal paydown receivables totaled $17.9 million , the entirety of which the Company received in cash during January 2016. At December 31, 2014 , principal paydown receivables totaled $40.9 million , the entirety of which the Company received in cash during January 2015. |
INVESTMENTS IN UNCONSOLIDATED S
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES | NOTE 9 - INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES The following table shows the Company's investments in unconsolidated entities as of 2015 and 2014 and equity in net earnings of unconsolidated subsidiaries for the years ended December 31, 2015 , 2014 and 2013 (in thousands): Equity in Earnings of Unconsolidated Subsidiaries Balance as of Years Ended December 31, Ownership % as of December 31, 2015 December 31, December 31, 2015 2014 2013 Varde Investment Partners, L.P —% $ — $ 654 $ (90 ) $ (20 ) $ 148 RRE VIP Borrower, LLC (1) —% — — 325 3,473 277 Investment in LCC Preferred Stock 29.0% 42,017 39,416 2,601 (1,555 ) (183 ) Investment in CVC Global Credit Opportunities Fund (2) —% — 18,209 8 2,032 1,177 Investment in (3) 70.9% — — — (75 ) (470 ) Pearlmark Mezz IV L.P. (6) 47.4% 6,465 — (460 ) — — Investment in School Lane House (1) —% — — 4 912 — Subtotal 48,482 58,279 2,388 4,767 949 Investment in RCT I and II (4) 3.0% 1,548 1,548 (2,421 ) (2,387 ) (2,401 ) Investment in Preferred Equity (1) (5) —% — — — 410 992 Total $ 50,030 $ 59,827 $ (33 ) $ 2,790 $ (460 ) (1) Investment in School Lane House, Investment in RRE VIP Borrower and the Investments in preferred equity were sold or repaid as of December 31, 2014. (2) In December 2015, the Company elected a full redemption of their remaining investment from the fund. (3) In January 2013, LTCC invested $2.0 million into LCF for the purpose of originating and acquiring life settlement contracts. In February 2014, the Company invested an additional $1.4 million which resulted in the consolidation of LCF during the first quarter of 2014. Ownership percentage represents ownership following additional investments and consolidation. (4) For the years ended December 31, 2015 , 2014 , and 2013 these amounts are recorded in interest expense on the Company's consolidated statements of operations. (5) For the years ended December 31, 2014 and 2013 these amounts are recorded in interest income on loans on the Company's consolidated statements of operations. (6) The Company has committed up to $50.0 million in Pearlmark Mezzanine Realty Partners IV, L.P. The commitment termination date ends when the original commitment is fully funded, or the fifth anniversary of the final closing date, June 24, 2015. |
FINANCING RECEIVABLES
FINANCING RECEIVABLES | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
FINANCING RECEIVABLES | NOTE 10 - FINANCING RECEIVABLES The following tables show the allowance for loan and lease losses for the years indicated (in thousands): Commercial Real Estate Loans Bank Loans Middle Market Loans Residential Mortgage Loans Direct Financing Leases Loans Receivable - Related Party Total As of December 31, 2015: Allowance for Loan and Lease Losses: Allowance for losses at January 1, 2015 $ 4,043 $ 570 $ — $ — $ — $ — $ 4,613 Provision (recovery) for loan and lease losses 37,735 2,887 8,901 (99 ) 465 — 49,889 Loans charged-off — (2,175 ) (4,962 ) 110 — — (7,027 ) Recoveries 61 — — — — — 61 Allowance for losses at December 31, 2015 $ 41,839 $ 1,282 $ 3,939 $ 11 $ 465 $ — $ 47,536 Ending balance: Individually evaluated for impairment $ 40,274 $ 1,282 $ — $ — $ 465 $ — $ 42,021 Collectively evaluated for impairment $ 1,565 $ — $ 3,939 $ 11 $ — $ — $ 5,515 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — $ — Loans and Leases: Ending balance: Individually evaluated for impairment $ 169,707 $ 1,544 $ — $ — $ 1,396 $ — $ 172,647 Collectively evaluated for impairment $ 1,522,400 $ 132,973 $ 379,452 $ 1,746 $ — $ — $ 2,036,571 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — $ — As of December 31, 2014: Allowance for Loan and Lease Losses: Allowance for losses at January 1, 2013 $ 10,416 $ 3,391 $ — $ — $ — $ — $ 13,807 Provision (recovery)for loan and lease losses (3,758 ) 4,173 92 — — 1,297 $ 1,804 Loans charged-off (2,615 ) (6,994 ) (92 ) — — (1,297 ) $ (10,998 ) Allowance for losses at December 31, 2014 $ 4,043 $ 570 $ — $ — $ — $ — $ 4,613 Ending balance: Individually evaluated for impairment $ — $ 570 $ — $ — $ — $ — $ 570 Collectively evaluated for impairment $ 4,043 $ — $ — $ — $ — $ — $ 4,043 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — $ — Loans and Leases: Ending balance: Individually evaluated for impairment $ 166,180 $ 1,350 $ 250,113 $ — $ — $ 1,277 $ 418,920 Collectively evaluated for impairment $ 1,180,850 $ 329,580 $ — $ 2,802 $ — $ — $ 1,513,232 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — $ — Credit quality indicators Bank Loans Loans are graded at inception and updates to assigned grades are made continually as new information is received. Loans are graded on a scale of 1 to 5 with 1 representing the Company’s highest rating and 5 representing its lowest rating. Bank loans are first individually evaluated for impairment. To the extent no individual impairment is determined, a general reserve is established. The characteristics of each rating category are as follows: 1. Loans with a rating of 1 are considered performing within expectations. All interest and principal payments are current, all future payments are anticipated and loss is not probable; 2. Loans with a rating of a 2 are considered to have limited liquidity concerns and are watched closely. Loans identified in this category show remote signs of liquidity concerns, loss is not probable and therefore no reserve is established; 3. Loans with a rating of a 3 are considered to have possible future liquidity concerns. Loans identified in this category show some liquidity concerns, but the ability to estimate potential defaults is not quantifiable and therefore no reserve is established; 4. Loans with a rating of a 4 are considered to have nearer term liquidity concerns. These loans have a reasonable possibility of future default. However, the risk of loss is not assignable to one specific credit. The noted risk of the loans in this category is covered by general reserves; and 5. Loans with a rating of a 5 have defaulted in payment of principal and interest or default is imminent. It is probable that impairment has occurred on these loans based on their payment status and that impairment is estimable. The noted risk of the loans in this category is covered by specific reserves. Credit risk profiles of bank loans were as follows (in thousands): Rating 1 Rating 2 Rating 3 Rating 4 Rating 5 Held for Sale Total As of December 31, 2015: Bank loans $ 113,897 $ 17,578 $ 1,498 $ — $ 1,544 $ 1,475 $ 135,992 As of December 31, 2014: Bank loans $ 291,214 $ 32,660 $ 5,424 $ — $ 1,350 $ 282 $ 330,930 All of the Company’s bank loans were current with respect to debt service with the exception of one loans with an amortized cost of $1.5 million as of December 31, 2015 . As of December 31, 2014 , all of the Company's bank loans were current with respect to debt services, with the exception of two loans with an amortized aggregate cost of $1.4 million , one of which defaulted as of March 31, 2014 and the other which defaulted as of September 30, 2014. Both of these loans were sold in 2015. Middle Market Loans At inception, all middle market loans are graded at a 2 and updates to assigned grades are made continually as new information is received. Loans are graded on a scale of 1 to 5 with 1 representing the Company’s highest rating and 5 representing its lowest rating. Middle market loans are only evaluated individually for impairment. The characteristics of each rating category are as follows: 1. A loan with a rating of a 1 is considered performing above expectations and the likelihood of loss is remote; 2. A loan with a rating of a 2 is considered performing within expectations and the likelihood of loss is remote; 3. A loan with a rating of a 3 is considered performing below expectations and requires close monitoring but no loss of interest or principal is expected. Loans receiving this rating may be out of compliance with financial covenants; however, these loans are current with respect to interest and principal; 4. A loan with a rating of a 4 is considered performing below expectations and some loss of interest or dividend is expected but no loss of principal. In addition to the borrower being generally out of compliance with debt covenants, loan payments may be past due, but generally not more than 180 days past due; and 5. A loan with a rating of a 5 is considered performing substantially below expectations, in default and some loss of principal is expected. Most or all of the debt covenants are out of compliance and payments are substantially delinquent. Credit risk profiles of middle market loans were as follows (in thousands): Rating 1 Rating 2 Rating 3 Rating 4 Rating 5 Held for Sale Total As of December 31, 2015: Middle market loans $ 44,252 $ 305,578 $ 29,622 $ — $ — $ — $ 379,452 As of December 31, 2014: Middle market loans $ — $ 240,245 $ 9,868 $ — $ — $ — $ 250,113 All of the Company’s middle market loans were current with respect to debt service as of December 31, 2015 and 2014 . Commercial Real Estate Loans Loans are graded at inception and updates to assigned grades are made continually as new information is received. Loans are graded on a scale of 1 to 4 with 1 representing the Company’s highest rating and 4 representing its lowest rating. Commercial real estate loans are first individually evaluated for impairment. To the extent no individual impairment is determined, a general reserve is established. The characteristics of each rating category are as follows: 1. A loan with a rating of a 1 is considered to have satisfactory performance with no issues noted. All interest and principal payments are current and the probability of loss is remote; 2. A loan is graded with a rating of a 2 if a surveillance trigger event has occurred, but loss is not probable at this time. Such trigger events could include but are not limited to a trending decrease in occupancy rates or a flattening of lease revenues; and to a lesser extent, ground lease defaults, ground lease expirations that occur in the next six months or the borrower is delinquent on payment of property taxes or insurance.; 3. A loan with a rating of 3 has experienced an extended decline in operating performance, a significant deviation from its origination plan or the occurrence of one or more surveillance trigger events which create an increased risk for potential default. Loans identified in this category show some liquidity concerns. However, the risk of loss is not specifically assignable to any individual loan. The noted risk of the loans in this category is covered by general reserves; 4. A loan with a rating of a 4 is considered to be in payment default or default is expected, full recovery of the unpaid principal balance is improbable and loss is considered probable. The noted risk of the loans in this category is covered by specific reserves. During the second quarter of 2015, the Company recorded an allowance for loan loss on a subordinated mezzanine loan position that was acquired in 2007. The outstanding loan balance of $38.1 million was fully reserved and associated accrued interest of $3.0 million was reversed against interest income, for a total charge to operations of $41.1 million . The loan was originally supported by a portfolio of 13 hotel properties, most of which were luxury brand hotels. An impairment analysis showed that the fair value of the underlying collateral declined from that as of March 31, 2015. Contributing to this decline was a modification of the senior mortgage that accelerated the time horizon for disposing of the remaining properties collateralizing the loan. Compounding this fact, the remaining two luxury brand hotel properties securing the loan are located in or near San Juan, Puerto Rico, and recent economic and credit disruptions in Puerto Rico resulted in events that caused the Company to determine that realizable values had declined rapidly and that the troubled debt restructuring should be fully reserved as of June 30, 2015. This loan remains fully reserved as of December 31, 2015 . Credit risk profiles of commercial real estate loans were as follows (in thousands): Rating 1 Rating 2 Rating 3 Rating 4 Held for Sale Total As of December 31, 2015: Whole loans $ 1,596,099 $ 32,500 $ — $ 2,202 $ — $ 1,630,801 B notes 15,934 — — — — 15,934 Mezzanine loans 7,300 — — 38,072 — 45,372 $ 1,619,333 $ 32,500 $ — $ 40,274 $ — $ 1,692,107 As of December 31, 2014: Whole loans $ 1,231,092 $ 32,500 $ — $ — $ — $ 1,263,592 B notes 16,072 — — — — 16,072 Mezzanine loans 45,432 21,934 — — — 67,366 $ 1,292,596 $ 54,434 $ — $ — $ — $ 1,347,030 All of the Company's commercial real estate loans are current with the exception of one mezzanine loan that was defaulted as of December 31, 2015 . All of the Company's commercial real estate loans were current as of December 31, 2014 . Residential Mortgage Loans Residential mortgage loans are reviewed periodically for collectability in light of historical experience, the nature and amount of the loan portfolio, adverse situations that may affect the borrower's ability to repay, estimated value of any underlying collateral, and prevailing underlying conditions. Loans Receivable - Related Party During the year ended December 31, 2014 , the Company recorded a provision of $1.3 million before extinguishing the loan and bringing direct financing leases in the amount of $2.1 million on the Company's books in lieu of the loan receivable. Direct Financing Leases During the year ended December 31, 2015 , the Company recorded a provision against the value of the direct financing leases in the amount of $465,000 . As of December 31, 2015 , the Company held $931,000 of direct financing leases, net of provisions. Loan and Lease Portfolios Aging Analysis The following table shows the loan and lease portfolio aging analysis as of the dates indicated at amortized cost (in thousands): 30-59 Days 60-89 Days Greater than 90 Days Total Past Due Current (2) Total Loan and Lease Receivable Total > 90 Days and Accruing As of December 31, 2015: Whole loans $ — $ — $ — $ — $ 1,630,801 $ 1,630,801 $ — B notes — — — — 15,934 15,934 — Mezzanine loans — 38,072 — 38,072 7,300 45,372 — Bank loans 1,544 — — 1,544 132,973 134,517 — Middle market loans — — — — 379,452 379,452 — Direct financing leases 12 214 — 226 1,170 1,396 — Residential mortgage loans (1) 27 41 80 148 96,069 96,217 — Total loans $ 1,583 $ 38,327 $ 80 $ 39,990 $ 2,263,699 $ 2,303,689 $ — As of December 31, 2014: Whole loans $ — $ — $ — $ — $ 1,263,592 $ 1,263,592 $ — B notes — — — — 16,072 16,072 — Mezzanine loans — — — — 67,366 67,366 — Bank loans — — 1,350 1,350 329,580 330,930 — Middle market loans — — — — 250,113 250,113 — Residential mortgage loans (1) 443 82 119 644 113,612 114,256 — Loans receivable- related party — — — — 1,277 1,277 — Total loans $ 443 $ 82 $ 1,469 $ 1,994 $ 2,041,612 $ 2,043,606 $ — (1) Contains $94.5 million and $113.4 million of residential mortgage loans held for sale at December 31, 2015 and 2014 , respectively. (2) Current loans include one impaired whole loan with an amortized cost of $2.2 million , that was fully reserved as of December 31, 2015 . Impaired Loans The following tables show impaired loans as of the dates indicated (in thousands): Recorded Balance Unpaid Principal Balance Specific Allowance Average Investment in Impaired Loans Interest Income Recognized As of December 31, 2015: Loans without a specific valuation allowance: Whole loans $ 129,433 $ 129,433 $ — $ 128,591 $ 3,939 B notes $ — $ — $ — $ — $ — Mezzanine loans $ — $ — $ — $ — $ — Bank loans $ — $ — $ — $ — $ — Middle market loans $ — $ — $ — $ — $ — Residential mortgage loans $ — $ — $ — $ — $ — Loans receivable - related party $ — $ — $ — $ — $ — Loans with a specific valuation allowance: Whole loans $ 2,202 $ 2,202 $ (2,202 ) $ 2,202 $ 63 B notes $ — $ — $ — $ — $ — Mezzanine loans $ 38,072 $ 38,072 $ (38,072 ) $ 38,072 $ (2,879 ) Bank loans $ 1,544 $ 1,551 $ (1,282 ) $ 1,544 $ — Middle market loans $ — $ — $ — $ — $ — Residential mortgage loans $ — $ — $ — $ — $ — Loans receivable - related party $ — $ — $ — $ — $ — Total: Whole loans $ 131,635 $ 131,635 $ (2,202 ) $ 130,793 $ 4,002 B notes — — — — — Mezzanine loans 38,072 38,072 (38,072 ) 38,072 (2,879 ) Bank loans 1,544 1,551 (1,282 ) 1,544 — Middle market loans — — — — — Residential mortgage loans — — — — — Loans receivable - related party — — — — — $ 171,251 $ 171,258 $ (41,556 ) $ 170,409 $ 1,123 As of December 31, 2014: Loans without a specific valuation allowance: Whole loans $ 128,108 $ 128,108 $ — $ 130,445 $ 4,620 B notes $ — $ — $ — $ — $ — Mezzanine loans $ 38,072 $ 38,072 $ — $ 38,072 $ 1,269 Bank loans $ — $ — $ — $ — $ — Middle market loans $ — $ — $ — $ — $ — Residential mortgage loans $ 2,082 $ 2,082 $ — $ 2,082 $ 148 Loans receivable - related party $ — $ — $ — $ — $ — Loans with a specific valuation allowance: Whole loans $ — $ — $ — $ — $ — B notes $ — $ — $ — $ — $ — Mezzanine loans $ — $ — $ — $ — $ — Bank loans $ 1,350 $ 1,350 $ (570 ) $ — $ — Middle market loans $ — $ — $ — $ — $ — Residential mortgage loans $ — $ — $ — $ — $ — Loans receivable - related party $ — $ — $ — $ — $ — Total: Whole loans $ 128,108 $ 128,108 $ — $ 130,445 $ 4,620 B notes — — — — — Mezzanine loans 38,072 38,072 — 38,072 1,269 Bank loans 1,350 1,350 (570 ) — — Middle market loans — — — — — Residential mortgage loans 2,082 2,082 — 2,082 148 Loans receivable - related party — — — — — $ 169,612 $ 169,612 $ (570 ) $ 170,599 $ 6,037 Troubled- Debt Restructurings The following tables show troubled-debt restructurings in the Company's loan portfolio (in thousands): Number of Loans Pre-Modification Outstanding Recorded Balance Post-Modification Outstanding Recorded Balance Year Ended December 31, 2015: Whole loans 3 $ 99,959 $ 99,959 B notes — — — Mezzanine loans 1 38,072 — Bank loans — — — Middle market loans — — — Residential mortgage loans — — — Loans receivable - related party — — — Total loans 4 $ 138,031 $ 99,959 Year Ended December 31, 2014: Whole loans 3 $ 99,739 $ 99,739 B notes — — — Mezzanine loans 1 38,072 38,072 Bank loans — — — Middle market loans — — — Loans receivable - related party — — — Total loans 4 $ 137,811 $ 137,811 As of December 31, 2015 , one commercial real estate loan troubled-debt restructuring has subsequently defaulted. As of December 31, 2014 , no commercial real estate loan troubled-debt restructurings had subsequently defaulted. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | NOTE 11 - BUSINESS COMBINATIONS On February 26, 2014, the Company made an additional capital contribution to LCF which gave the Company majority ownership at 50.2% . As a result, the Company began consolidating the LCF joint venture. The joint venture was established for the purpose of originating and acquiring life settlement contracts through a financing facility. On April 30, 2015, the Company committed to another capital contribution in the amount of $750,000 , increasing its ownership of LCF to 60.7% . The first installment of $375,000 was funded on April 30, 2015 and the second installment of $375,000 was funded on July 30, 2015. On December 15, 2015, the Company committed to an additional capital contribution in the amount of $1,250,000 , increasing its ownership of LCF to 70.9% . The first installment of $750,000 was funded on January 5, 2016 and the second installment of $500,000 will be funded no later than July 1, 2016. The Company engaged a third party expert to assist in determining the fair values of the assets acquired and liabilities assumed on this investment. Based on the final valuation, which determined an enterprise value of LCF of approximately $4.1 million , and in accordance with guidance on business combinations, the Company confirmed that no further adjustments are necessary. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 12 - INTANGIBLE ASSETS The following table summarizes the activity of intangible assets for the year ended December 31, 2015 (in thousands): Management Contracts Wholesale/Correspondent Relationships Mortgage Servicing Rights Total Balance, January 1, 2015 $ 9,434 $ 302 $ 8,874 $ 18,610 Additions — — 16,552 16,552 Sales — — — — Amortization (4,118 ) (212 ) (4,504 ) (8,834 ) Total before impairment adjustment 5,316 90 20,922 26,328 Temporary impairment adjustment — — (100 ) (100 ) Balance, December 31, 2015 $ 5,316 $ 90 $ 20,822 $ 26,228 Management Contracts and Wholesale/Correspondent Relationships For the years ended December 31, 2015 , 2014 , and 2013 , the Company recognized $3.9 million , $5.1 million , and $5.3 million , respectively, of fee income on management contracts. For the years ended December 31, 2015 , 2014 , and 2013 , the Company recorded amortization expense of $4.3 million , $2.1 million , and $2.0 million in relation to the Company's management contracts and wholesale/correspondent relationships. In January 2016 a RCAM-managed CLO was called and $2.4 million of impairment, on a pre-tax basis, was recorded in depreciation and amortization on the Company's consolidated statements of operations on the related management contract, as of December 31, 2015 . The Company expects to record amortization expense on its management contracts and wholesale/correspondent relationships of approximately $1.5 million for the year ending December 31, 2016 , $1.3 million for the year ending December 31, 2017 , $1.2 million for the year ending December 31, 2018 , $514,000 for the year ending December 31, 2019 , and $515,000 for the year ending December 31, 2020 . The weighted average amortization period was 5.8 years and 6.6 years at December 31, 2015 and 2014 , respectively. Mortgage Servicing Rights Through the Company's wholly-owned residential mortgage originator PCM, residential mortgage loans are sold through one of the following methods: (i) sales to or pursuant to programs sponsored by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and Government National Mortgage Association, or (ii) sales to private investors. The Company may have continuing involvement in mortgage loans sold by retaining servicing rights and servicing obligations. The total servicing portfolio consists of loans associated with capitalized mortgage servicing rights (“MSRs”) and loans held for sale. In accordance with guidance on servicing assets and liabilities, the Company utilizes the amortization method for the subsequent measurement of its MSRs. The total servicing portfolio was $2.0 billion and $894.8 million as of December 31, 2015 and December 31, 2014 , respectively. MSRs recorded in the Company's consolidated balance sheets are related to the capitalized servicing portfolio and are created through the sale of originated loans. For the years ended December 31, 2015 , 2014 , and 2013 , the Company recorded amortization expense of $4.5 million , $1.6 million , and $254,000 , respectively, of amortization expense related to mortgage servicing rights. The Company expects to recognize amortization related to its mortgage servicing rights portfolio in the amount of $4.6 million for the year ending December 31, 2016 , $4.4 million for the year ending December 31, 2017 , $4.3 million for the year ending December 31, 2018 , $3.8 million for the year ending December 31, 2019 , and $2.5 million for the year ending December 31, 2020 . The weighted average amortization period was 1.2 years and 1.4 years at December 31, 2015 and December 31, 2014 , respectively. The activity in the loan servicing portfolio associated with capitalized servicing rights consisted of (in thousands): December 31, 2015 December 31, 2014 Balance, beginning of period $ 894,767 $ 433,153 Additions 1,236,145 519,915 Payoffs, sales and curtailments (132,639 ) (58,301 ) Balance, end of period $ 1,998,273 $ 894,767 The value of MSRs is driven by the net positive, or in some cases net negative, cash flows associated with servicing activities. These cash flows include contractually specified servicing fees, late fees and other ancillary servicing revenue and were recorded within fee income as follows (in thousands): Years Ended December 31, 2015 2014 2013 Servicing fees from capitalized portfolio $ 3,773 $ 1,649 $ 178 Late Fees $ 106 $ 81 $ 7 Other ancillary servicing revenue $ 11 $ 6 $ 1 |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
BORROWINGS | NOTE 13 - BORROWINGS The Company historically has financed the acquisition of its investments, including investment securities and loans, through the use of secured and unsecured borrowings in the form of securitized notes, repurchase agreements, secured term facilities, warehouse facilities, convertible senior notes, senior secured revolving credit agreements and trust preferred securities issuances. Certain information with respect to the Company’s borrowings is summarized in the following table (in thousands, except percentages): Principal Outstanding Unamortized Outstanding Borrowings Weighted Average Weighted Average Value of As of December 31, 2015: RREF CDO 2006-1 Senior Notes $ 52,772 $ — $ 52,772 2.60% 30.6 years $ 94,379 RREF CDO 2007-1 Senior Notes 91,752 — 91,752 1.65% 30.8 years 210,904 RCC CRE Notes 2013 Senior Notes 58,465 664 57,801 3.21% 13.0 years 104,439 RCC 2014-CRE2 Senior Notes 198,594 2,991 195,603 1.68% 16.3 years 313,663 RCC 2015-CRE3 Senior Notes 282,127 3,466 278,661 2.25% 16.2 years 341,099 RCC 2015-CRE4 Senior Notes 223,735 3,160 220,575 2.06% 16.6 years 308,042 Apidos Cinco CDO Senior Notes 135,417 — 135,417 1.25% 4.4 years 154,584 Unsecured Junior Subordinated Debentures (1) 51,548 135 51,413 4.40% 20.8 years — 6.0% Convertible Senior Notes 115,000 4,917 110,083 6.00% 2.9 years — 8.0% Convertible Senior Notes 100,000 4,599 95,401 8.00% 4.0 years — CRE - Term Repurchase Facilities (2) 225,346 2,418 222,928 2.64% 17 days 321,267 CMBS - Term Repurchase Facility (3) 25,658 2 25,656 1.57% 18 days 31,650 Trust Certificates - Term Repurchase Facility (4) 26,659 415 26,244 5.85% 2.9 years 89,181 Residential Investments - Term Repurchase Facility (5) 782 — 782 2.75% 264 days 835 Residential Mortgage Financing Agreements 85,819 — 85,819 3.10% 257 days 120,952 CMBS - Short Term Repurchase Agreements (6) 57,407 — 57,407 2.06% 18 days 79,347 Senior Secured Revolving Credit Agreement 190,000 3,026 186,974 3.09% 3.2 years 376,306 Total $ 1,921,081 $ 25,793 $ 1,895,288 2.89% 10.4 years $ 2,546,648 Principal Outstanding Unamortized Outstanding Borrowings Weighted Average Weighted Average Value of As of December 31, 2014: RREF CDO 2006-1 Senior Notes $ 61,423 $ — $ 61,423 2.12% 31.6 years $ 139,242 RREF CDO 2007-1 Senior Notes 130,340 133 130,207 1.19% 31.8 years 271,423 RCC CRE Notes 2013 Senior Notes 226,840 2,683 224,157 2.11% 14.0 years 249,983 RCC 2014-CRE2 Senior Notes 235,344 3,687 231,657 1.45% 17.3 years 346,585 Apidos CDO III Senior Notes 74,646 — 74,646 1.18% 5.7 years 85,553 Apidos Cinco CDO Senior Notes 255,664 201 255,463 0.81% 5.4 years 272,512 Moselle CLO S.A. Senior Notes, at fair value (7) 63,321 — 63,321 1.49% 5.0 years 93,576 Moselle CLO S.A. Securitized Borrowings, at fair value (8) 5,619 — 5,619 1.49% 5.0 years — Unsecured Junior Subordinated Debentures (1) 51,548 343 51,205 4.19% 21.8 years — 6.0% Convertible Senior Notes 115,000 6,626 108,374 6.00% 3.9 years — CRE - Term Repurchase Facilities (2) 207,640 1,958 205,682 2.43% 20 days 297,571 CMBS - Term Repurchase Facility (3) 24,967 — 24,967 1.35% 20 days 30,180 Residential Investments - Term Repurchase Facility (5) 22,248 36 22,212 1.16% 1 day 27,885 Residential Mortgage Financing Agreements 102,576 — 102,576 2.78% 207 days 147,472 CMBS - Short Term Repurchase Agreements (6) 44,225 — 44,225 1.63% 17 days 62,446 Senior Secured Revolving Credit Agreement 113,500 2,363 111,137 2.66% 3.7 years 262,687 Total $ 1,734,901 $ 18,030 $ 1,716,871 2.09% 10.0 years $ 2,287,115 (1) Amount represents junior subordinated debentures issued to RCT I and RCT II in May 2006 and September 2006, respectively. (2) Amounts also include accrued interest expense of $315,000 and $198,000 related to CRE repurchase facilities as of December 31, 2015 and 2014 , respectively. (3) Amounts also include accrued interest expense of $18,000 and $12,000 related to CMBS repurchase facilities as of December 31, 2015 and 2014 , respectively. Amounts do not reflect CMBS repurchase agreement borrowings that are components of linked transactions as of December 31, 2014 . (4) Amount also includes accrued interest expense of $61,000 related to trust certificate repurchase facilities as of December 31, 2015 . (5) Amounts also include accrued interest expense of $30,000 and $20,000 related to residential investment repurchase facilities as of December 31, 2015 and 2014 , respectively. (6) Amounts also include accrued interest expense of $40,000 and $31,000 related to CMBS short term repurchase facilities as of December 31, 2015 and 2014 , respectively. (7) The fair value option was elected for the borrowings associated with Moselle CLO. As such, the outstanding borrowings and principal outstanding amounts are stated at fair value. The unpaid principal amounts of these borrowings were $63.3 million at December 31, 2014 . (8) The securitized borrowings were collateralized by the same assets as the Moselle CLO Senior Notes. Securitizations The following table sets forth certain information with respect to the Company's securitizations: Securitization Closing Date Maturity Date Reinvestment Period End Total Note Paydowns as of December 31, 2015 (in millions) RREF CDO 2006-1 Senior Notes August 2006 August 2046 September 2011 $ 180.5 RREF CDO 2007-1 Senior Notes June 2007 September 2046 June 2012 $ 252.0 RCC CRE Notes 2013 Senior Notes December 2013 December 2028 N/A $ 202.4 RCC 2014-CRE2 Senior Notes July 2014 April 2032 N/A $ 36.8 RCC 2015-CRE3 Senior Notes February 2015 March 2032 N/A $ — RCC 2015-CRE4 Senior Notes August 2015 August 2032 N/A $ — Apidos Cinco CDO Senior Notes May 2007 May 2020 May 2014 $ 186.6 In June 2015, the Company called Apidos CDO III, substantially liquidating the securitization's assets. Proceeds from the sale of these assets, plus proceeds from previous sales and paydowns in the CDO, were used to pay down the securitization's $262.5 million of Senior Notes in full. In December 2014, Moselle CLO S.A. was called and liquidated, and as a result, all of the assets were sold. The investments held by the Company's securitizations collateralize the securitization's borrowings and, as a result, are not available to the Company, its creditors, or stockholders. All senior notes retained at closing or subsequently repurchased by the Company as of December 31, 2015 eliminate in consolidation. Resource Real Estate Funding CDO 2006-1 In August 2006, the Company closed RREF CDO 2006-1, a $345.0 million CDO transaction that provided financing for commercial real estate loans. RREF CDO 2006-1 issued a total of $308.7 million of senior notes at par to investors of which RCC Real Estate purchased 100% of the Class J senior notes (rated BB: Fitch) and Class K senior notes (rated B:Fitch) for $43.1 million . In addition, Resource Real Estate Funding 2006-1 CDO Investor, LLC, a subsidiary of RCC Real Estate, purchased a $36.3 million equity interest representing 100% of the outstanding preference shares. The senior notes purchased by RCC Real Estate are subordinated in right of payment to all other senior notes issued by RREF CDO 2006-1 but are senior in right of payment to the preference shares. The equity interest is subordinated in right of payment to all other securities issued by RREF CDO 2006-1. At closing, the senior notes issued to investors by RREF CDO 2006-1 consisted of the following classes: (i) $129.4 million of Class A-1 notes bearing interest at one-month LIBOR plus 0.32% ; (ii) $17.4 million of Class A-2 notes bearing interest at one-month LIBOR plus 0.35% ; (iii) $5.0 million of Class A-2 notes bearing interest at a fixed rate of 5.842% ; (iv) $6.9 million of Class B notes bearing interest at one-month LIBOR plus 0.40% ; (v) $20.7 million of Class C notes bearing interest at one-month LIBOR plus 0.62% ; (vi) $15.5 million of Class D notes bearing interest at one-month LIBOR plus 0.80% ; (vii) $20.7 million of Class E notes bearing interest at one-month LIBOR plus 1.30% ; (viii) $19.8 million of Class F notes bearing interest at one-month LIBOR plus 1.60% ; (ix) $17.3 million of Class G notes bearing interest at one-month LIBOR plus 1.90% ; (x) $12.9 million of Class H notes bearing interest at one-month LIBOR plus 3.75% ; (xi) $14.7 million of Class J notes bearing interest at a fixed rate of 6.00% ; and (xii) $28.4 million of Class K notes bearing interest at a fixed rate of 6.00% . All of the notes issued mature in August 2046, although the Company has the right to call the notes anytime after August 2016 until maturity. During the years ended December 31, 2015 , 2014 , and 2013 , the Company did not repurchase any notes. During the the year ended December 31, 2015 the Company reissued $6.3 million of Class F notes at a weighted average price of 96.02% to par which resulted in a $249,000 loss on the reissuance of debt in the consolidated statements of operations. During the the year ended December 31, 2014 the Company reissued $6.7 million of Class A-1 notes at a price of 98.94% to par, and $12.0 million of Class A-2 notes at a price of 95.56% to par, which resulted in a $604,000 loss on the reissuance of debt in the consolidated statements of operations. Resource Real Estate Funding CDO 2007-1 In June 2007, the Company closed RREF CDO 2007-1, a $500.0 million CDO transaction that provided financing for commercial real estate loans and commercial mortgage-backed securities. RREF CDO 2007-1 issued a total of $265.6 million of senior notes at par to unrelated investors. RCC Real Estate purchased 100% of the Class H senior notes (rated BBB+:Fitch), Class K senior notes (rated BBB-:Fitch), Class L senior notes (rated BB:Fitch) and Class M senior notes (rated B: Fitch) for $68.0 million . In addition, Resource Real Estate Funding 2007-1 CDO Investor, LLC, a subsidiary of RCC Real Estate, purchased a $41.3 million equity interest representing 100% of the outstanding preference shares. The senior notes purchased by RCC Real Estate are subordinated in right of payment to all other senior notes issued by RREF CDO 2007-1 but are senior in right of payment to the preference shares. The equity interest is subordinated in right of payment to all other securities issued by RREF CDO 2007-1. At closing, the senior notes issued to investors by RREF CDO 2007-1 consisted of the following classes: (i) $180.0 million of Class A-1 notes bearing interest at one-month LIBOR plus 0.28% ; (ii) $50.0 million of unissued Class A-1R notes, which allowed the CDO to fund future funding obligations under the existing whole loan participations that had future funding commitments; the undrawn balance of the Class A-1R notes accrued a commitment fee at a rate per annum equal to 0.18% , the drawn balance bore interest at one-month LIBOR plus 0.32% ; (iii) $57.5 million of Class A-2 notes bearing interest at one-month LIBOR plus 0.46% ; (iv) $22.5 million of Class B notes bearing interest at one-month LIBOR plus 0.80% ; (v) $7.0 million of Class C notes bearing interest at a fixed rate of 6.423% ; (vi) $26.8 million of Class D notes bearing interest at one-month LIBOR plus 0.95% ; (vii) $11.9 million of Class E notes bearing interest at one-month LIBOR plus 1.15% ; (viii) $11.9 million of Class F notes bearing interest at one-month LIBOR plus 1.30% ; (ix) $11.3 million of Class G notes bearing interest at one-month LIBOR plus 1.55% ; (x) $11.3 million of Class H notes bearing interest at one-month LIBOR plus 2.30% ; (xi) $11.3 million of Class J notes bearing interest at one-month LIBOR plus 2.95% ; (xii) $10.0 million of Class K notes bearing interest at one-month LIBOR plus 3.25% ; (xiii) $18.8 million of Class L notes bearing interest at a fixed rate of 7.50% ; and (xiv) $28.8 million of Class M notes bearing interest at a fixed rate of 8.50% . The Company has the right to call the notes anytime after July 2017 until maturity. During the years ended December 31, 2015 , 2014 , and 2013 , the Company did not repurchase any notes. During the year ended December 31, 2015, the Company reissued $11.8 million of Class D notes at a weighted average price of 90.18% to par, which resulted in a $1.2 million loss on the reissuance of debt in the consolidated statements of operations. During the the year ended December 31, 2014 the Company reissued $25.0 million of Class A-1 notes at a price of 92.53% to par, and $15.0 million of Class D notes at a weighted average price of 86.85% to par, which resulted in a $3.8 million loss on the reissuance of debt in the consolidated statements of operations. RCC CRE Notes 2013 In December 2013, the Company closed RCC CRE Notes 2013, a $307.8 million CRE securitization transaction that provided financing for transitional commercial real estate loans. RCC CRE Notes 2013 issued a total of $260.8 million of senior notes at par to unrelated investors. RCC Real Estate purchased 100% of the Class D senior notes (rated BBB:DBRS), Class E senior notes (rated BB:DBRS) and Class F senior notes (rated B:DBRS) for $30.0 million . In addition, Resource Real Estate Funding 2013 Notes Investor, LLC, a subsidiary of RCC Real Estate, purchased a $16.9 million equity interest representing 100% of the outstanding preference shares. The senior notes purchased by RCC Real Estate are subordinated in right of payment to all other senior notes issued by RCC CRE Notes 2013 but are senior in right of payment to the preference shares. The equity interest is subordinated in right of payment to all other securities issued by RCC CRE Notes 2013. At closing, the senior notes issued to investors by RCC CRE Notes 2013 consisted of the following classes: (i) $136.9 million of Class A notes bearing interest at one-month LIBOR plus 1.30% ; (ii) $78.5 million of Class A-S notes bearing interest at one-month LIBOR plus 2.15% ; (iii) $30.8 million of Class B notes bearing interest at one-month LIBOR plus 2.85% ; (iv) $14.6 million of Class C notes bearing interest at one-month LIBOR plus 3.50% ; (v) $13.8 million of Class D notes bearing interest at one-month LIBOR plus 4.50% ; (vi) $9.2 million of Class E notes bearing interest at one-month LIBOR plus 5.50% ; (vii) and $6.9 million of Class F notes bearing interest at one-month LIBOR plus 6.50% . All of the notes issued mature in December 2028, although the Company has the right to call the notes anytime after January 2016 until maturity. RCC 2014-CRE2 In July 2014, the Company closed RCC 2014-CRE2, a $353.9 million CRE securitization transaction that provided financing for transitional commercial real estate loans. RCC 2014-CRE2 issued a total of $253.3 million of senior notes at par to unrelated investors. RCC Real Estate purchased 100% of the Class C senior notes (rated B2:Moody's) for $17.7 million . In addition, Resource Real Estate Funding 2014-CRE2 Investor, LLC, a subsidiary of RCC Real Estate, purchased a $100.9 million equity interest representing 100% of the outstanding preference shares. The senior notes purchased by RCC Real Estate are subordinated in right of payment to all other senior notes issued by RCC 2014-CRE2, but are senior in right of payment to the preference shares. The equity interest is subordinated in right of payment to all other securities issued by RCC 2014-CRE2. At closing, the senior notes issued to investors by RCC 2014-CRE2 consisted of the following classes: (i) $196.4 million of Class A notes bearing interest at one-month LIBOR plus 1.05% ; (ii) $38.9 million of Class B notes bearing interest at one-month LIBOR plus 2.50% ; and (iii) $17.7 million of Class C notes bearing interest at one-month LIBOR plus 4.25% . All of the notes issued mature in April 2032 , although the Company has the right to call the notes anytime after July 2016 until maturity. RCC 2015-CRE3 In February 2015, the Company closed RCC 2015-CRE3, a $346.2 million CRE securitization transaction that provided financing for transitional commercial real estate loans. RCC 2015-CRE3 issued a total of $282.1 million of senior notes at par to unrelated investors. RCC Real Estate purchased 100% of the Class E and Class F senior notes for $20.8 million and $15.6 million , respectively. In addition, Resource Real Estate Funding 2015-CRE3 Investor, LLC, a subsidiary of RCC Real Estate, purchased a $27.7 million equity interest representing 100% of the outstanding preference shares. The senior notes purchased by RCC Real Estate are subordinated in right of payment to all other senior notes issued by RCC 2015-CRE3, but are senior in right of payment to the preference shares. The equity interest is subordinated in right of payment to all other securities issued by RCC 2015-CRE3. At closing, the senior notes issued to investors by RCC 2015-CRE3 consisted of the following classes: (i) $193.9 million of Class A notes bearing interest at one-month LIBOR plus 1.40% ; (ii) $17.3 million of Class A-S notes bearing interest at one-month LIBOR plus 1.65% ; (iii) $19.5 million of Class B notes bearing interest at one-month LIBOR plus 2.40% ; (iv) $20.8 million of Class C notes bearing interest at one-month LIBOR plus 3.15% ; (v) $30.7 million of Class D notes bearing interest at one-month LIBOR plus 4.00% ; (vi) $20.8 million of Class E notes bearing interest at one-month LIBOR plus 4.75% ; (vii) and $15.6 million of Class F notes bearing interest at one-month LIBOR plus 5.50% . All of the notes issued mature in March 2032 , although the Company has the right to call the notes anytime after March 2017 until maturity. There is no reinvestment period in RCC 2015-CRE3; however, principal repayments, for a period ending in February 2017, may be used to purchase funding participations with respect to existing collateral held outside of the securitization. RCC 2015-CRE4 In August 2015, the Company closed RCC 2015-CRE4, a $312.9 million CRE securitization transaction that provided financing for transitional commercial real estate loans. RCC 2015-CRE4 issued a total of $223.7 million of senior notes at par to unrelated investors. RCC Real Estate purchased 100% of the Class C senior notes for $26.6 million . In addition, Resource Real Estate Funding 2015-CRE4 Investor, LLC , a subsidiary of RCC Real Estate purchased a $62.6 million equity interest representing 100% of the outstanding preference shares. The senior notes purchased by RCC Real Estate are subordinated in right of payment to all other senior notes issued by RCC 2015-CRE4, but are senior in right of the payment to the preference shares. The equity interest is subordinated in right of payment to all other securities issued by RCC 2015-CRE4. At closing, the senior notes issued to investors by RCC 2015-CRE4 consisted of the following classes: (i) $179.9 million of Class A notes bearing interest at one-month LIBOR plus 1.40% ; (ii) $43.8 million of Class B notes bearing interest at one-month LIBOR plus 3.00% ; (iii) $26.6 million of Class C notes bearing interest at one-month LIBOR plus 4.75% . All of the notes issued mature in August 2032 , although the Company has the right to call the notes anytime after September 2017 until maturity. There is no reinvestment period in RCC 2015-CRE4; however, principal repayments, for a period ending in September 2017, may be used to purchase funding participations with respect to existing collateral held outside of the securitization. Apidos CDO III In May 2006, the Company closed Apidos CDO III, a $285.5 million CDO transaction that provided financing for bank loans. Apidos CDO III issued a total of $262.5 million of senior notes at par to investors and RCC Commercial purchased a $23.0 million equity interest representing 100% of the outstanding preference shares. The equity interest is subordinated in right of payment to all other securities issued by Apidos CDO III. At closing, the senior notes issued to investors by Apidos CDO III consist of the following classes: (i) $212.0 million of Class A-1 notes bearing interest at 3-month LIBOR plus 0.26% ; (ii) $19.0 million of Class A-2 notes bearing interest at 3-month LIBOR plus 0.45% ; (iii) $15.0 million of Class B notes bearing interest at 3-month LIBOR plus 0.75% ; (iv) $10.5 million of Class C notes bearing interest at 3-month LIBOR plus 1.75% ; and (v) $6.0 million of Class D notes bearing interest at 3-month LIBOR plus 4.25% . All of the notes issued mature on September 12, 2020, although the Company has the right to call the notes anytime after September 12, 2011 until maturity. In June 2015, the Company called Apidos CDO III, substantially liquidating the securitization's assets. Proceeds from the sale of these assets, plus proceeds from previous sales and paydowns in the CDO, were used to pay down the securitization's remaining senior notes. Apidos Cinco CDO In May 2007, the Company closed Apidos Cinco CDO, a $350.0 million CDO transaction that provided financing for bank loans. Apidos Cinco CDO issued a total of $322.0 million of senior notes at par to investors and RCC Commercial II purchased a $28.0 million equity interest representing 100% of the outstanding preference shares. The equity interest is subordinated in right of payment to all other securities issued by Apidos Cinco CDO. The senior notes issued to investors by Apidos Cinco CDO consist of the following classes: (i) $37.5 million of Class A-1 notes bearing interest at LIBOR plus 0.24% ; (ii) $200.0 million of Class A-2a notes bearing interest at LIBOR plus 0.23% ; (iii) $22.5 million of Class A-2b notes bearing interest at LIBOR plus 0.32% ; (iv) $19.0 million of Class A-3 notes bearing interest at LIBOR plus 0.42% ; (v) $18.0 million of Class B notes bearing interest at LIBOR plus 0.80% ; (vi) $14.0 million of Class C notes bearing interest at LIBOR plus 2.25% ; and (vii) $11.0 million of Class D notes bearing interest at LIBOR plus 4.25% . The Company has the right to call the notes anytime after May 14, 2011 until maturity. Moselle CLO S.A. In February 2014, the Company purchased 100% of the Class 1 Subordinated Notes and 67.9% of the Class 2 Subordinated Notes, which represented 88.6% of the outstanding subordinated notes in the European securitization Moselle CLO S.A. Due to the Company's economic interest combined with its contractual, unilateral kick-out rights acquired upon its purchase of a majority of the subordinate notes, the Company determined that it had a controlling financial interest and consolidated Moselle CLO ( see Note 3 ). The notes purchased by the Company are subordinated in right of payment to all other notes issued by Moselle CLO. The balances of the senior notes issued to investors when the Company acquired a controlling financial interest in February 2014 were as follows: (i) €24.9 million of Class A-1E notes bearing interest at LIBOR plus 0.25% ; (ii) $24.9 million of Class A-1L notes bearing interest at LIBOR plus 0.25% ; (iii) €10.3 million of Class A-1LE notes bearing interest at LIBOR plus 0.31% ; (iv) $10.3 million of Class A-1LE notes bearing interest at LIBOR plus 0.31% ; (v) €13.8 million of Class A-2E notes bearing interest at LIBOR plus 0.40% ; (vi) $13.8 million of Class A-2L notes bearing interest at LIBOR plus 0.40% ; (vii) €6.8 million of Class A-3E notes bearing interest at LIBOR plus 0.70% ; (viii) $6.8 million of Class A-3L notes bearing interest at LIBOR plus 0.75% ; (ix) €16 million of Class B-1E notes bearing interest at LIBOR plus 1.80% ; and (x) $16.0 million of Class B-1L notes bearing interest at LIBOR plus 1.85% . The Company had the right to call the notes anytime after January 6, 2010 until maturity and in November 2014, the Company exercised this right and substantially liquidated the securitization's assets. Proceeds from the sale of these assets were used to pay down the senior notes and securities borrowings in full as of December 31, 2015 . Unsecured Junior Subordinated Debentures In May 2006 and September 2006, the Company formed RCT I and RCT II, respectively, for the sole purpose of issuing and selling capital securities representing preferred beneficial interests. Although the Company owns $774,000 of the common securities of RCT I and RCT II, RCT I and RCT II are not consolidated into the Company’s consolidated financial statements because the Company is not deemed to be the primary beneficiary of these entities. In connection with the issuance and sale of the capital securities, the Company issued junior subordinated debentures to RCT I and RCT II of $25.8 million each, representing the Company’s maximum exposure to loss. The debt issuance costs associated with the junior subordinated debentures for RCT I and RCT II are included in borrowings and are being amortized into interest expense in the consolidated statements of operations using the effective yield method over a ten year period. The debt issuance costs associated with the junior subordinated debentures for RCT I and RCT II at December 31, 2015 were $54,000 and $80,000 , respectively. The debt issuance costs associated with the junior subordinated debentures for RCT I and RCT II at December 31, 2014 were $160,000 and $183,000 , respectively. The rates for RCT I and RCT II, at December 31, 2015 , were 4.55% and 4.25% , respectively. The rates for RCT I and RCT II, at December 31, 2014 , were 4.21% and 4.18% , respectively. The rights of holders of common securities of RCT I and RCT II are subordinate to the rights of the holders of capital securities only in the event of a default; otherwise, the common securities’ economic and voting rights are pari passu with the capital securities. The capital and common securities of RCT I and RCT II are subject to mandatory redemption upon the maturity or call of the junior subordinated debentures held by each. Unless earlier dissolved, RCT I will dissolve on May 25, 2041 and RCT II will dissolve on September 29, 2041. The junior subordinated debentures are the sole assets of RCT I and RCT II, mature on September 30, 2036 and October 30, 2036, respectively, and may be called at par by the Company any time after September 30, 2011 and October 30, 2011, respectively. The Company records its investments in RCT I and RCT II’s common securities of $774,000 each as investments in unconsolidated entities and records dividend income upon declaration by RCT I and RCT II. 6.0% Convertible Senior Notes On October 21, 2013, the Company issued and sold in a public offering $115.0 million aggregate principal amount of its 6.0% Convertible Senior Notes due 2018, ("6.0% Convertible Senior Notes"). After deducting the underwriting discount and the estimated offering costs, the Company received approximately $111.1 million of net proceeds. The discount of $4.9 million on the 6.0% Convertible Senior Notes reflects the difference between the stated value of the debt and the fair value of the notes as if they were issued without a conversion feature and at a higher rate of interest that the Company estimated would have been applicable without the conversion feature. The discount will be amortized on a straight-line basis as additional interest expense through maturity on December 1, 2018 . Interest on the 6.0% Convertible Senior Notes is paid semi-annually. Prior to December 1, 2018 , the 6.0% Convertible Senior Notes are not redeemable at the Company's option, except to preserve the Company's status as a REIT. On or after December 1, 2018 , the Company may redeem all or a portion of the 6.0% Convertible Senior Notes at a redemption price equal to the principal amount plus accrued and unpaid interest. Holders of 6.0% Convertible Senior Notes may require the Company to repurchase all or a portion of the 6.0% Convertible Senior Notes at a purchase price equal to the principal amount plus accrued and unpaid interest on December 1, 2018 , or upon the occurrence of certain defined fundamental changes. The 6.0% Convertible Senior Notes had an original conversion rate of 150.1502 common shares per $1,000 principal amount of 6.0% Convertible Senior Notes (equivalent to an initial conversion price of $6.66 per common share). Upon conversion of 6.0% Convertible Senior Notes by a holder, the holder will receive cash, the Company's common shares or a combination of cash and common shares, at the Company's election. In connection with the Company's one-for-four reverse stock split, the 6.0% Convertible Senior Notes automatically adjusted from 150.1502 common shares per $1,000 principal amount of such notes to 37.5376 common shares per $1,000 principal amount of such notes. The conversion price was adjusted from $6.66 to $26.64 as a result of the stock split. 8.0% Convertible Senior Notes In January 2015, the Company issued and sold in a public offering $100.0 million aggregate principal amount of its 8.0% Convertible Senior Notes due 2020, (" 8.0% Convertible Senior Notes"). After deducting a $1.0 million underwriting discount and deferred debt issuance costs totaling $2.1 million , the Company received approximately $97.0 million of net proceeds. In addition, the Company recorded a discount of $2.5 million (the offset of which was recorded in additional paid-in capital) on the 8.0% Convertible Senior Notes that reflects the difference between the stated value of the debt and the fair value of the notes as if they were issued without a conversion feature. The aforementioned market discounts and the deferred debt issuance costs will be amortized on a straight-line basis as additional interest expense through maturity on January 15, 2020. Interest on the 8.0% Convertible Senior Notes is paid semi-annually. Prior to January 15, 2020, the 8.0% Convertible Senior Notes are not redeemable at the Company's option, except to preserve the Company's status as a REIT. On or after January 15, 2020, the Company may redeem all or a portion of the 8.0% Convertible Senior Notes at a redemption price equal to the principal amount plus accrued and unpaid interest. Holders of 8.0% Convertible Senior Notes may require the Company to repurchase all or a portion of the 8.0% Convertible Senior Notes at a purchase price equal to the principal amount plus accrued and unpaid interest on January 15, 2020, or upon the occurrence of certain defined fundamental changes. The 8.0% Convertible Senior Notes had an original conversion rate of 187.4414 common shares per $1,000 principal amount of 8.0% Convertible Senior Notes (equivalent to an initial conversion price of $5.34 per common share). Upon conversion of 8.0% Convertible Senior Notes by a holder, the holder will receive cash, the Company's common shares or a combination of cash and common shares, at the Company's election. In connection with the Company's one-for-four reverse stock split, the 8.0% Convertible Senior Notes automatically adjusted from 187.4414 common shares per $1,000 principal amount of such notes to 46.86035 shares of common stock per $1,000 principal amount of such notes. The conversion price was adjusted from $5.34 to $21.36 as a result of the stock split. Repurchase and Credit Facilities Borrowings under the repurchase agreements were guaranteed by the Company or one of its subsidiaries. The following table sets forth certain information with respect to the Company's borrowings at December 31, 2015 and 2014 (dollars in thousands): As of December 31, 2015 As of December 31, 2014 Outstanding Value of Number of Weighted Average Outstanding Value of Number of Weighted Average CMBS Term Wells Fargo Bank (1) $ 25,656 $ 31,650 21 1.57% $ 24,967 $ 30,180 33 1.35% CRE Term Wells Fargo Bank (2) 123,937 179,169 9 2.39% 179,762 258,223 15 2.38% Deutsche Bank AG (3) — — — —% 25,920 39,348 2 2.78% Morgan Stanley Bank (4) 98,991 142,098 7 2.96% — — — —% Trust Certificates Term Repurchase Facility RSO Repo SPE Trust 2015 (5) 26,244 89,181 1 5.85% — — — —% Short-Term Repurchase Wells Fargo Securities, LLC 13,548 19,829 3 1.93% 10,442 17,695 1 1.66% Deutsche Bank Securities, LLC 43,859 59,518 17 2.10% 33,783 44,751 8 1.62% Residential Investments Term Wells Fargo Bank (6) 782 835 1 2.75% 22,212 27,885 6 1.16% Residential Mortgage New Century Bank 43,789 61,111 199 3.17% 41,387 51,961 158 2.82% Wells Fargo Bank 42,030 59,841 166 3.03% 61,189 95,511 104 2.75% Totals $ 418,836 $ 643,232 $ 399,662 $ 565,554 (1) The Wells Fargo Bank CMBS term repurchase facility includes $2,000 and $0 , of deferred debt issuance costs as of December 31, 2015 and 2014 , respectively. (2) The Wells Fargo Bank CRE term repurchase facility includes $675,000 and $1.7 million of deferred debt issuance costs as of December 31, 2015 and 2014 , respectively. (3) The Deutsche Bank CRE term repurchase facility includes $0 and $268,000 of deferred debt issuance costs as of December 31, 2015 and 2014 , respectively. (4) The Morgan Stanley Bank CRE term repurc |
STOCK INCENTIVE PLANS AND SHARE
STOCK INCENTIVE PLANS AND SHARE ISSUANCE AND REPURCHASE | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
STOCK INCENTIVE PLANS AND SHARE ISSUANCE AND REPURCHASE | NOTE 14 - STOCK INCENTIVE PLANS AND SHARE ISSUANCE AND REPURCHASE Upon formation of the Company, the 2005 Stock Incentive Plan (the “2005 Plan”) was adopted for the purpose of attracting and retaining executive officers, employees, directors and other persons and entities that provide services to the Company. The 2005 Plan authorized the issuance of up to 383,333 shares of common stock in the form of options to purchase common stock, stock awards, performance shares and stock appreciation rights. In July 2007, the Company’s shareholders approved the 2007 Omnibus Equity Compensation Plan (the “2007 Plan”). The 2007 Plan authorized the issuance of up to 500,000 shares of common stock in the form of options to purchase common stock, stock awards, performance shares and stock appreciation rights. On June 23, 2011, the 2007 Plan was amended to: (i) increase the number of shares authorized for issuance under the Plan from 500,000 shares to 1,350,000 shares; (ii) extend the expiration date of the Plan to June 23, 2021; (iii) provide that the administrator making certain determinations after a change of control, as defined in the 2007 Plan, will be comprised of the same persons who constitute the administrator immediately before the change of control; and (iv) make other clarifying and updating amendments to the Plan. The following table summarizes the Company's preferred stock: Year ended December 31, 2015 Total Outstanding Number of Shares Sold Weighted Average Offering Price Number of Shares Weighted Average Offering Price 8.50% Series A Preferred Stock — $ — 1,069,016 $ 24.05 8.25% Series B Preferred Stock 139,333 $ 22.34 5,740,479 $ 23.81 8.625% Series C Preferred Stock — $ — 4,800,000 $ 25.00 On or after June 14, 2017 , the Company may, at its option, redeem the Series A preferred stock, in whole or part, at any time and from time to time, for cash at $25.00 per share, plus accrued and unpaid dividends, if any, to the redemption date. On or after October 2, 2017 , the Company may, at its option, redeem the Series B preferred stock, in whole or part, at any time and from time to time, for cash at $25.00 per share, plus accrued and unpaid dividends, if any, to the redemption date. On or after July 30, 2024 , the Company may, at its option, redeem the Series C preferred stock, in whole or part, at any time and from time to time, for cash at $25.00 per share, plus accrued and unpaid dividends, if any, to the redemption date. Under a dividend reinvestment plan authorized by the board of directors on March 21, 2013, the Company is authorized to issue up to 5,000,000 shares of common stock. During the year ended December 31, 2015 , the Company sold 20,963 shares of common stock through this program, resulting in proceeds of approximately $328,000 . Under a share repurchase plan authorized by the board of directors on August 3, 2015, the Company is authorized to repurchase up to $50.0 million of its outstanding equity and debt securities. Since the inception of the program through December 31, 2015 , the Company has repurchased $25.9 million of its common stock, representing approximately 2.0 million shares or 5.9% of the Company's outstanding balance. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 15 - SHARE-BASED COMPENSATION The following table summarizes the Company's restricted common stock transactions: Non-Employee Directors Non-Employees Employees Total Unvested shares as of January 1, 2015 12,301 453,213 40,396 505,910 Issued 13,896 250,390 43,326 307,612 Vested (10,930 ) (81,281 ) (21,561 ) (113,772 ) Forfeited — (4,665 ) (3,716 ) (8,381 ) Unvested shares as of December 31, 2015 15,267 617,657 58,445 691,369 The Company is required to value any unvested shares of restricted common stock granted to non-employees at the current market price. The estimated fair value of the unvested shares of restricted stock granted during the years ended December 31, 2015 , 2014 , and 2013 , including the grant date fair value of shares issued to the Company’s seven non-employee directors, was $5.1 million , $4.9 million , and $3.7 million , respectively. The estimated fair value of the unvested shares of restricted stock granted during the years ended December 31, 2015 , 2014 , and 2013 , including the grant date fair value of shares issued to the Company’s employees, was $737,000 , $132,000 , and $1.5 million , respectively. The Company reports any unvested shares of restricted common stock granted to non-employee directors at the fair value on the grant date amortized over the service period. The amortization recognized during the years ended December 31, 2015 , 2014 , and 2013 , was $257,000 and $256,000 and $218,000 , respectively. As of December 31, 2015 the total unrecognized restricted common stock expense for non-employees was $2.3 million , with a weighted average amortization period remaining of 1.8 years . The following table summarizes the restricted common stock grants during the year ended December 31, 2015 : Date Shares Vesting/Year Date(s) February 3, 2015 1,819 100% 2/3/16 February 5, 2015 241,524 33.3% 2/5/16, 2/5/17, 2/5/18 February 5, 2015 28,818 33.3% 2/5/16, 2/5/17, 2/5/18 March 9, 2015 8,047 100% 3/9/16 March 12, 2015 1,906 100% 3/12/16 March 31, 2015 8,841 100% 5/15/16 (1) June 8, 2015 2,124 100% 6/8/16 August 10, 2015 14,503 100% 3/31/16, 3/31/17, 3/31/18 September 1, 2015 (2) 30 various various (1) In connection with a grant of restricted common stock made on September 24, 2014 , the Company agreed to issue up to 17,682 additional shares of common stock if certain commercial real estate loan origination performance thresholds were achieved by personnel from the Company’s commercial real estate loan origination team. The performance criteria are measured at the end of two annual measurement periods which began April 1, 2014. The agreement also provided dividend equivalent rights pursuant to which the dividends that would have been paid on the shares had they been issued on the date of grant were paid at the end of each annual measurement period if the performance criteria were met. If the performance criteria are not met, the accrued dividends are forfeited. As a consequence, the Company did not record the dividend equivalent rights until earned. On March 31, 2015 , the first annual measurement period ended and 8,841 shares were earned. These shares will vest over the subsequent 12 months at a rate of one-fourth per quarter. In addition, approximately $21,000 of accrued dividend equivalent rights were earned and paid. As of December 31, 2015 , it was determined that the performance criteria for the final 8,841 shares were earned prior to the end of the measurement period, March 31, 2016 . As of December 31, 2015 , $42,000 of accrued dividend equivalent rights were accrued and will be paid in April 2016. These performance shares will vest over the subsequent 12 months at a rate of one-fourth per quarter. (2) In connection with the Company's one-for-four reverse stock split, 30 shares of unvested shares of common stock were issued on September 1, 2015 due to rounding. The following table summarizes the status of the Company’s vested stock options as of December 31, 2015 : Vested Options Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Vested as of January 1, 2015 160,167 $ 57.80 Vested — $ — Exercised — $ — Forfeited — $ — Expired (133,917 ) $ 60.00 Vested as of December 31, 2015 26,250 $ 46.60 3.20 $ — There were no options granted during the years ended December 31, 2015 or 2014 . The outstanding stock options have a weighted average remaining contractual term of ten years . The components of equity compensation expense for the periods presented are as follows (in thousands): December 31, 2015 2014 2013 Options granted to Manager and non-employees $ — $ (2 ) $ 6 Restricted shares granted to non-employees 2,163 5,679 10,142 Restricted shares granted to employees 725 633 106 Restricted shares granted to non-employee directors 257 256 218 Total equity compensation expense $ 3,145 $ 6,566 $ 10,472 There were no incentive fees paid to the Manager in shares for the years ended December 31, 2015 and 2014 . During the year ended December 31, 2013 , the Manager received 47,707 shares as incentive compensation valued at $1.1 million pursuant to the Management Agreement. The incentive management fee is paid one quarter in arrears. Apart from incentive compensation payable under the Management Agreement, the Company has established no formal criteria for equity awards as of December 31, 2015 . All awards are discretionary in nature and subject to approval by the Compensation Committee of the Company's board of directors. On October 31, 2013, the Company, through its TRS, RCC Residential, completed a business combination whereby it acquired the assets of PCM, an Atlanta based company that originates and services residential mortgage loans, for approximately $7.6 million in cash. As part of this transaction, a key employee of PCM was granted approximately $800,000 of the Company’s restricted stock. Any grants for employees of PCM are accounted for as compensation and amortized to equity compensation expense over the vesting period. Dividends declared on the stock while unvested are recorded as a general and administrative expense. Dividends declared after the stock vests are recorded as a distribution. For the years ended December 31, 2015 , 2014 , and 2013 , was $725,000 , $633,000 and $106,000 of amortization of the stock grants were recorded to equity compensation expense, respectively. For the years ended December 31, 2015 , 2014 , and 2013 , expenses of $160,000 , $189,000 and $48,000 related to the dividends on unvested shares were recorded to general and administrative expense on the Company's consolidated statements of operations, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 16 - EARNINGS PER SHARE The following table presents a reconciliation of basic and diluted earnings per share for the periods presented as follows (in thousands, except share and per share amounts): Years Ended December 31, 2015 2014 2013 Basic: Net income (loss) allocable to common shares $ (13,882 ) $ 44,027 $ 39,232 Weighted average number of shares outstanding 32,280,319 32,007,766 29,619,668 Basic net income (loss) per share $ (0.43 ) $ 1.38 $ 1.32 Diluted: Net income (loss) allocable to common shares $ (13,882 ) $ 44,027 $ 39,232 Weighted average number of shares outstanding 32,280,319 32,007,766 29,619,668 Additional shares due to assumed conversion of dilutive instruments — 307,081 390,075 Adjusted weighted-average number of common shares outstanding 32,280,319 32,314,847 30,009,743 Diluted net income (loss) per share $ (0.43 ) $ 1.36 $ 1.31 Potentially dilutive shares consisting of 691,369 shares of restricted stock are not included in the calculation of diluted net income (loss) per share for the year ended December 31, 2015. Potentially dilutive shares consisting of 9,002,864 shares issuable in connection with the potential conversion of the Company's 6% and 8% Convertible Senior Notes ( see Note 13 ) for the year ended December 31, 2015 , were not included in the calculation of diluted net income (loss) per share because the effect was anti-dilutive. Potentially dilutive shares consisting of 4,316,818 shares issuable in connection with the potential conversion of the Company's 6% Convertible Senior Notes for the year ended December 31, 2014 and 999,876 shares and stock options for the year ended December 31, 2013 were not included in the calculation of diluted net income per share because the effect was anti-dilutive. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 17 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table, which is presented gross of tax, presents the changes in each component of accumulated other comprehensive income for the year ended December 31, 2015 (dollars in thousands): Net unrealized (loss) gain on derivatives Net unrealized (loss) gain on securities, Foreign currency translation Accumulated other comprehensive income (loss) January 1, 2015 $ (8,967 ) $ 15,422 $ (412 ) $ 6,043 Other comprehensive gain (loss) before reclassifications 5,221 (4,781 ) 349 789 Amounts reclassified from accumulated other 275 (13,435 ) — (13,160 ) Net current-period other comprehensive income 5,496 (18,216 ) 349 (12,371 ) Unrealized gains (losses) on available-for-sale securities allocable to non-controlling interests — 3,405 — 3,405 December 31, 2015 $ (3,471 ) $ 611 $ (63 ) $ (2,923 ) |
THE MANAGEMENT AGREEMENT
THE MANAGEMENT AGREEMENT | 12 Months Ended |
Dec. 31, 2015 | |
THE MANAGEMENT AGREEMENT [Abstract] | |
THE MANAGEMENT AGREEMENT | NOTE 18 - THE MANAGEMENT AGREEMENT On March 8, 2005, the Company entered into a Management Agreement with the Manager and Resource America pursuant to which the Manager provides the Company investment management, administrative and related services. The agreement has been amended several times over the years. Under the amended and restated agreement, the Manager receives fees and is reimbursed for its expenses as follows: • A monthly base management fee equal to 1/12 th of the amount of the Company's equity multiplied by 1.50% . Under the management agreement, ''equity'' is equal to the net proceeds from any issuance of shares of capital stock less offering related costs, plus or minus the Company's retained earnings (excluding non-cash equity compensation incurred in current or prior periods) less any amounts the Company has paid for common stock repurchases. The calculation is adjusted for one-time events due to changes in GAAP, as well as other non-cash charges, upon approval of the independent directors of the Company. • Incentive compensation is calculated as follows: (i) twenty-five percent ( 25% ) of the dollar amount by which (A) the Company's adjusted operating earnings (before incentive compensation but after the base management fee) for such quarter per common share (based on the weighted average number of common shares outstanding for such quarter) exceeds (B) an amount equal to (1) the weighted average of the price per share of the common shares in the initial offering by the Company and the prices per share of the Common Shares in any subsequent offerings by the Company, in each case at the time of issuance thereof, multiplied by (2) the greater of (a) 2.0% and (b) 0.50% plus one-fourth of the Ten Year Treasury Rate for such quarter, multiplied by (ii) the weighted average number of common shares outstanding during such quarter, subject to adjustment, to exclude events pursuant to changes in GAAP or the application of GAAP, as well as non-recurring or unusual transactions or events, after discussion between the Manager and the Independent Directors and approval by a majority of the independent directors in the case of non-recurring or unusual transactions or events. The fees paid by a taxable REIT subsidiary of the Company to employees, agents or affiliates of the Manager with respect to profits of such taxable REIT subsidiary (or any subsidiary thereof) are deducted from the Company's quarterly calculation of incentive compensation payable to the Manager. Additionally, any income taxes payable by a taxable REIT subsidiary of the Company will be excluded from the Company's calculation of operating earnings. • Reimbursement of out-of-pocket expenses and certain other costs incurred by the Manager that relate directly to the Company and its operations. Incentive compensation is paid quarterly. Up to 75% of the incentive compensation is paid in cash and at least 25% is paid in the form of an award of common stock. The Manager may elect to receive more than 25% in incentive compensation in common stock. All shares are fully vested upon issuance. However, the Manager may not sell such shares for one year after the incentive compensation becomes due and payable. Shares payable as incentive compensation are valued as follows: • if such shares are traded on a securities exchange, at the average of the closing prices of the shares on such exchange over the thirty day period ending three days prior to the issuance of such shares; • if such shares are actively traded over-the-counter, at the average of the closing bid or sales price as applicable over the thirty day period ending three days prior to the issuance of such shares; and • if there is no active market for such shares, the value is the fair market value thereof, as reasonably determined in good faith by the board of directors of the Company. On February 24, 2011, the Company entered into an amendment to the Management Agreement in where, the Company agreed to pay CVC Credit Partners, LLC, formerly Apidos Capital Management (“ACM”) such fees as are set forth in a Services Agreement dated as of February 24, 2011 among a subsidiary of the Company, RCAM and CVC. The Services Agreement provides that 10% of all base collateral management fees and additional collateral management fees paid to RCAM and 50% of all incentive collateral management fees will be paid by RCAM to CVC. During the years ended December 31, 2015 , 2014 and 2013 , RCAM paid CVC $1.4 million , $1.3 million and $643,000 respectively in fees. The Manager provides the Company with a Chairman, a Chief Financial Officer, a Chief Accounting Officer and several accounting and tax professionals, each of whom is exclusively dedicated to the Company's operations. The Manager also provides the Company with a director of investor relations who is 50% dedicated to the Company's operations. The Company bears the expense of the wages, salaries and benefits of the Chief Financial Officer and a sufficient amount of additional accounting and tax professionals, and bears 50% of the salary and benefits of the director of investor relations. In November 2013, the Company amended the second amended and restated Management Agreement to allow an ancillary operating subsidiary (PCM), that is an operating entity principally engaged in the evaluation, underwriting, origination, servicing, holding, trading and financing of loans, securities, investments and credit products other than commercial real estate loans to directly incur and pay all of its own operating costs and expenses, including compensation of employees and reimbursement of any compensation costs incurred by the Manager for personnel principally devoted to such ancillary operating subsidiary. As amended, the Management Agreement's initial term ended March 31, 2013, with automatic annual one -year renewals unless at the end of the initial term or any renewal term at least two-thirds of the independent directors or a majority of the outstanding common shares agreed not to renew the Management Agreement. With a two-thirds vote of the independent directors, the independent directors may elect to terminate the Management Agreement because of the following: • unsatisfactory performance; and/or • unfair compensation payable to the Manager where fair compensation cannot be agreed upon by the Company (pursuant to a vote of two-thirds of the independent directors) and the Manager. If the Management Agreement is terminated based on the above provisions, the Company must pay the Manager a termination fee equal to four times the sum of the average annual base management fee and the average annual incentive during the two 12 -month periods immediately preceding the date of such termination. The Company is also entitled to terminate the Management Agreement for cause (as defined therein) without payment of any termination fee. The base management fee for the years ended December 31, 2015 , 2014 and 2013 was $12.6 million , $13.0 million and $11.6 million , respectively. There were no incentive management fees earned during the years ended December 31, 2015 and 2014 . The Manager earned an incentive management fee of $2.1 million of which $1.5 million was paid in cash, which also included $123,000 related to the Company's investment management agreement with a subsidiary of the Manager, and $484,000 was paid in stock ( 20,047 shares) for the period from January 1, 2013 to December 31, 2013 . At December 31, 2015 , the Company was indebted to the Manager for base management fees of $978,000 , $805,000 of fees payable to CVC from RCAM, and expense reimbursements of $152,000 . At December 31, 2014 , the Company was indebted to the Manager for base management fees of $1.2 million , $63,000 of fees payable to CVC from RCAM, and expense reimbursements of $121,000 . |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 19 - RELATED PARTY TRANSACTIONS Relationship with Resource America and Certain of its Subsidiaries Relationship with Resource America. On September 19, 2013, the Audit Committee of the Board of Directors of Resource America concluded that Resource America should consolidate the financial statements of the Company, which was previously treated as an unconsolidated VIE. Resource America's Audit Committee reached this conclusion after consultations with the Office of the Chief Accountant of the Securities and Exchange Commission (the “Commission”) following comments received from the staff of the Division of Corporation Finance of the Commission and the Audit Committee's discussion with the Company's management and its independent registered public accounting firm. Resource America's Audit Committee noted that consolidation of the Company was not expected to materially affect Resource America's previously reported net income attributable to common shareholders. In December 2015, Resource America elected to early adopt consolidation guidance issued by the FASB in February 2015 (see Note 2) and was required to reevaluate whether or not the Company should be consolidated into Resource America’s financial statements. It was determined that the Company is no longer a VIE and Resource America will no longer consolidate the Company’s financial statements. At December 31, 2015 , Resource America owned 715,396 shares, or 2.3% , of the Company’s outstanding common stock. In addition, Resource America held 2,166 options to purchase restricted stock, which expired on March 8, 2015. The Company is managed by the Manager, which is a wholly-owned subsidiary of Resource America, pursuant to a Management Agreement that provides for both base and incentive management fees. For the years ended December 31, 2015 , 2014 and 2013 , the Manager earned base management fees of approximately $12.6 million , $13.0 million and $11.6 million , respectively. No incentive management fees were earned for the year ended December 31, 2015 and December 31, 2014 . For the year ended December 31, 2013 , the Manager earned incentive management fees of $1.9 million . The Company also reimburses the Manager and Resource America for expenses, including the expenses of employees of Resource America who perform legal, accounting, due diligence and other services that outside professionals or consultants would otherwise perform, and for the wages, salaries and benefits of several Resource America personnel dedicated to the Company’s operations. The Company also reimburses Resource America for additional costs incurred related to our life care business, Long Term Care Conversion Funding, established for the purpose of originating and acquiring life settlement contracts. The initial agreement, authorized in December 2012, provided for an annual fee of $550,000 , with a two -year term. In March 2015, the agreement was amended for an additional year through 2016. This fee is paid quarterly. For the years ended December 31, 2015 , 2014 , and 2013 , the Company paid the Manager $5.5 million , $5.0 million and $3.8 million , respectively, as expense reimbursements. On November 24, 2010, the Company entered into an Investment Management Agreement with Resource Capital Markets, Inc. (“RCM”), a wholly-owned subsidiary of Resource America. The initial agreement provided that: (a) RCM may invest up to $5.0 million of the Company’s funds, with the investable amount being adjusted by portfolio gains (losses) and collections, and offset by expenses, taxes and realized management fees, and (b) RCM can earn a management fee in any year that the net profits earned exceed a preferred return. On June 17, 2011, the Company entered into a revised Investment Management Agreement with RCM which provided an additional $8.0 million of the Company’s funds. The management fee is 20% of the amount by which the net profits exceed the preferred return. During the years ended December 31, 2015 and 2014 , RCM earned no management fees. During the year ended December 31, 2013 , RCM earned $123,000 in management fees. The portfolio began a partial liquidation during the year ended December 31, 2013 that has resulted in the outstanding portfolio balance being significantly decreased . The Company holds $3.7 million in fair market value of trading securities as of December 31, 2015 , a slight increase of $300,000 from $3.4 million at fair market value as of December 31, 2014 . The Company and RCM also established an escrow account that allocates the net profit or net losses of the portfolio on a yearly basis based on the net assets value of the account. During the years ended December 31, 2015 and 2014 , RCM earned no profits from this account. During the year ended December 31, 2013 RCM earned $35,000 as its share of the net profits from this account. The Company also reimburses RCM for expenses paid on the Company's behalf. For the years ended December 31, 2015 , 2014 and 2013 , the Company paid RCM $128,000 , $164,000 and $258,000 , respectively, as expense reimbursements. At December 31, 2015 , the Company was indebted to Resource America and the Manager for $2.5 million , comprised of base management fees of $978,000 and expense reimbursements of $1.6 million . At December 31, 2014 , the Company was indebted to the Manager for $1.6 million , comprised of base management fees of $1.2 million and expense reimbursements of $480,000 . At December 31, 2015 , the Company was indebted to RCM, under the Company’s Investment Management Agreement for $152,000 , comprised entirely of expense reimbursements. At December 31, 2014 , the Company was indebted to RCM for $121,000 , comprised entirely of expense reimbursements. The Company's base management fee payable as well as expense reimbursements parable are recorded in accounts payable and other liabilities on the consolidated balance sheets. During the year ended December 31, 2013 , the Company, through one of its subsidiaries, began originating middle-market loans. Resource America is paid origination fees in connection with the Company's middle-market lending operations, which fees may not exceed 2% of the loan balance for any loan originated. On November 7, 2013, the Company, through a wholly-owned subsidiary, purchased all of the membership interests in Elevation Home Loans, LLC, a start-up residential mortgage company, from an employee of Resource America for $830,000 , paid in the form of 34,165 shares of restricted Company common stock. The restricted stock cliff vests in full on November 7, 2016, and includes dividend equivalent rights. The Company had executed eleven and nine securitizations as of December 31, 2015 and 2014 , respectively, which were structured for the Company by the Manager. Under the Management Agreement, the Manager was not separately compensated by the Company for executing these transactions and is not separately compensated for managing the securitization's entities and their assets. The Company has since liquidated three of these securitizations, one in October 2013, one in October 2014, and another in June 2015. Relationship with LEAF Commercial Capital. LCC originated and managed equipment leases and notes on behalf of the Company. On March 5, 2010, the Company entered into agreements with Lease Equity Appreciation Fund II, L.P. (“LEAF II”) (an equipment leasing partnership sponsored by LEAF Financial and of which a LEAF Financial subsidiary is the general partner), pursuant to which the Company provided and funded an $8.0 million credit facility to LEAF II. The credit facility initially had a one year term with interest at 12% per year, payable quarterly, and was secured by all the assets of LEAF II, including its entire ownership interest in LEAF II Receivables Funding. The Company received a 1% origination fee in connection with establishing the facility. The facility originally matured on March 3, 2011 and was extended until September 3, 2011 with a 1% extension fee paid on the outstanding loan balance. On June 3, 2011, the Company entered into an amendment to extend the maturity to February 15, 2012 and to decrease the interest rate from 12% to 10% per annum resulting in a troubled-debt restructuring under current accounting guidance. On February 15, 2012, the credit facility was further amended to extend the maturity to February 15, 2013 with a 1% extension fee accrued and added to the amount outstanding. On January 11, 2013, the Company entered into another amendment to extend the maturity to February 15, 2014 with an additional 1% extension fee accrued and added to the amount outstanding. On December 17, 2013, the Company entered into another amendment to extend the maturity to February 15, 2015. At the end of 2014, the Company recorded a provision for loan loss on this loan of $1.3 million before extinguishing the loan and bringing direct financing leases in the amount of $2.1 million on the Company's books in lieu of the loan receivable. During the year ended December 31, 2015 , the Company recorded a provision against the value of the direct financing leases in the amount of $465,000 . As of December 31, 2015 , the Company held $931,000 of direct financing leases. On November 16, 2011, the Company together with LEAF Financial and LCC entered into the SPA with Eos ( see Note 3 ). The Company’s resulting interest is accounted for under the equity method. For the years ended December 31, 2015 , 2014 and 2013 , the Company recorded a gain of $2.6 million and losses of $1.6 million and $183,000 , respectively, which were recorded in equity in net earnings of unconsolidated subsidiaries on the consolidated statement of operations. The Company’s investment in LCC had a cost basis of $42.0 million and $39.4 million as of December 31, 2015 and 2014 , respectively. Relationship with CVC Credit Partners. On April 17, 2012, ACM, a former subsidiary of Resource America, was sold to CVC Credit Partners, L.P. ("CVC Credit Partners"), a joint venture entity in which Resource America owns a 24% interest. CVC Credit Partners manages internally and externally originated bank loan assets on the Company’s behalf. On February 24, 2011, a subsidiary of the Company purchased 100% of the ownership interests in Churchill Pacific Asset Management LLC ("CPAM") from Churchill Financial Holdings LLC for $22.5 million . CPAM subsequently changed its name to RCAM. Through RCAM, the Company is entitled to collect senior, subordinated and incentive fees related to five CLO issuers holding approximately $1.9 billion in assets managed by RCAM. RCAM is assisted by CVC Credit Partners in managing these CLOs. CVC Credit Partners is entitled to 10% of all subordinated fees and 50% of the incentive fees received by RCAM. For the years ended December 31, 2015 , 2014 and 2013 , CVC Credit Partners earned subordinated and incentive fees of $1.4 million , $1.3 million and $643,000 , respectively. In October 2012, the Company purchased 66.6% of the preferred equity in one of the RCAM CLOs. In May 2013, the Company purchased additional equity in this CLO, increasing its ownership percentage to 68.3% . In 2013 two of the five CLOs were called and the notes were paid down in full. In January 2016 another RCAM-managed CLO was called and $ 2.4 million of impairment, on a pre-tax basis, was recorded in depreciation and amortization on the Company's consolidated statements of operations on the related intangible asset, as of December 31, 2015 . In May, June and July 2013, the Company invested a total of $15.0 million in CVC Global Credit Opportunities Fund, L.P. which generally invests in assets through the Master Fund ( see Note 3 ). The fund pays the investment manager a quarterly management fee in advance calculated at the rate of 1.5% annually based on the balance of each limited partner's capital account. The Company's management fee was waived upon entering the agreement since the Company is a related party of CVC Credit Partners. For the years ended December 31, 2015 , 2014 and 2013 , the Company recorded earnings of $8,000 , $2.0 million and $1.2 million , respectively, which was recorded in equity in net earnings of unconsolidated subsidiaries on the consolidated statements of operations. In March 2015, the Company elected to withdraw $5.0 million from the fund. In July 2015, a $625,000 withdrawal was requested and received. In October 2015, another $4.0 million was withdrawn from the fund. In December 2015, the Company elected to withdraw the remaining $8.6 million from the fund. The Company retained no investment in the fund as of December 31, 2015 as compared to $18.2 million as of December 31, 2014 . The investment is recorded as an investment in unconsolidated subsidiaries on the Company's consolidated balance sheets using the equity method. Relationship with Resource Real Estate. Resource Real Estate, a subsidiary of Resource America, originates, finances and manages the Company’s commercial real estate loan portfolio, including whole loans, B notes, mezzanine loans, and investments in real estate. The Company reimburses Resource Real Estate for loan origination costs associated with all loans originated. The Company had a receivable of $2,500 and $100,000 due from Resource Real Estate for loan origination costs in connection with the Company's commercial real estate loan portfolio as of December 31, 2015 and 2014 , respectively. On August 9, 2006, the Company, through its subsidiary, RCC Real Estate, originated a loan to Lynnfield Place, a multi-family apartment property, in the amount of $22.4 million . The loan was then purchased by RREF CDO 2006-1. The loan, which was set to mature on May 9, 2018, carried an interest rate of LIBOR plus a spread of 3.50% with a LIBOR floor of 2.50% . On June 14, 2011, RCC Real Estate converted this loan collateralized by a multi-family building, to equity. The loan was kept outstanding and was used as collateral in RREF CDO 2006-1. RREM was appointed as the asset manager as of August 1, 2011. RREM performed lease review and approval, debt service collection, loan workout, foreclosure, disposition and/or entitlements and permitting, as applicable. RREM was also responsible for engaging third parties to perform day-to-day property management, property leasing, rent collection, maintenance, and capital improvements. RREM was entitled to a monthly asset management fee equal to 4.0% of the gross receipts generated from the property. The Company incurred fees payable to RREM in the amounts of $ 127,000 and $136,000 during the years ended December 31, 2014 and 2013 , respectively. There were no fees incurred during the year ended December 31, 2015 as the property was sold during the last quarter of 2014 for a gain of $1.9 million . On December 1, 2009, the Company purchased a membership interest in RRE VIP Borrower, LLC (an unconsolidated VIE that held an interest in a real estate joint venture) from Resource America for $2.1 million , its book value ( see Note 3 ). RREM was asset manager of the venture and received a monthly asset management fee equal to 1.0% of the combined investment calculated as of the last calendar day of the month. For the years ended December 31, 2014 and 2013 , the Company paid RREM management fees of $6,000 and $28,000 , respectively. There were no fees incurred for the year ended December 31, 2015 . For the years ended December 31, 2015 , 2014 and 2013 , the Company recorded income from RRE VIP Borrower of $325,000 , $3.5 million and $278,000 , respectively, which was recorded in equity in net earnings of unconsolidated subsidiaries on the consolidated statements of operation. The last property associated with the joint venture was sold in July 2014. The income recorded in 2015 was due to a liquidation of an existing bank account with respect to the sold properties. On January 15, 2010, the Company loaned $2.0 million to Resource Capital Partners, Inc. (“RCP”), a wholly-owned subsidiary of Resource America, so that it could acquire a 5.0% limited partnership interest in Resource Real Estate Opportunity Fund, L.P. (“RRE Opportunity Fund”). RCP is the general partner of the RRE Opportunity Fund. The loan was secured by RCP’s partnership interest in the RRE Opportunity Fund. The promissory note bore interest at a fixed rate of 8.0% per annum on the unpaid principal balance. In the event of default, interest accrued at a rate of 5.0% in excess of the fixed rate. Interest was payable quarterly. Mandatory principal payments were required to the extent distributable cash or other proceeds from RRE Opportunity Fund represent a return of RCP’s capital. The loan had an original maturity date on January 14, 2015 with two one -year extensions. RCP exercised the first option, extending the maturity date to January 14, 2016. The loan balance was $558,000 at December 31, 2014, which was paid in full in April 2015. On June 21, 2011, the Company entered into a joint venture with an unaffiliated third party to form CR SLH Partners, L.P. (“SLH Partners”) to purchase a defaulted promissory note secured by a mortgage on a multi-family apartment building. The Company purchased a 10% equity interest in the venture and also loaned SLH Partners $7.0 million to finance the project secured by a first mortgage lien on the property. The loan had a maturity date of September 21, 2012 and bore interest at a fixed rate of 10.0% per annum on the unpaid principal balance, payable monthly. The Company received a commitment fee equal to 1.0% of the loan amount at the origination of the loan and received a $70,000 exit fee upon repayment. On May 23, 2012, SLH Partners repaid the $7.0 million loan in its entirety. RREM was appointed as the asset manager of the venture. RREM performed lease review and approval, debt service collection, loan workout, foreclosure, disposition and permitting, as applicable. RREM was also responsible for engaging third parties to perform day-to-day property management, property leasing, rent collection, maintenance, and capital improvements. RREM received an annual asset management fee equal to 2.0% of the gross receipts generated from the property. The Company held a $975,000 preferred equity investment in SLH Partners as of December 31, 2013. The investment was sold in 2014 for a $912,000 gain which was recorded on the Company's statements of operations in equity of earnings of unconsolidated subsidiaries. The Company has closed the following four real estate securitization transactions, which provide financing for commercial real estate loans: RCC CRE Notes 2013, a $307.8 million securitization in December 2013; RCC 2014-CRE2, a $353.9 million securitization on July 30, 2014; RCC 2015-CRE3; a $346.2 million securitization on February 24, 2015; and RCC 2015-CRE4, a $312.9 million securitization on August 18, 2015. With respect to each specialty service mortgage loan, Resource Real Estate receives an amount equal to the product of (a) the Special Servicing Fee Rate, 0.25% per annum, and (b) the outstanding principal balance of such Specialty Service Mortgage Loan. The servicing fee is payable monthly, on an asset-by-asset basis. Resource Real Estate agreed to waive its rights to receive the Special Servicing Fee to the extent that the Company continues to hold the majority equity of the securitizations. The Company utilizes the brokerage services of Resource Securities, Inc. ("Resource Securities"), a wholly-owned broker-dealer subsidiary of Resource America, on a limited basis to conduct some of its asset trades. The Company paid Resource Securities placement agent fees in connection with each transaction as follows: $205,000 , $175,000 , $100,000 and $85,000 , respectively. In July 2014, the Company formed RCM Global Manager to invest in RCM Global, an entity formed to hold a portfolio of structured product securities. The Company contributed $15.0 million for a 63.8% membership interest in RCM Global. A five member board manages RCM Global, and all actions, including purchases and sales, must be approved by no less than three of the five members of the board. The portion of RCM Global that the Company does not own is presented as non-controlling interests as of the dates and for the periods presented in the Company's consolidated financial statements. All intercompany accounts and transactions have been eliminated in consolidation. In March and June 2015, the Company requested and received a proportional, in-kind distribution in certain securities held by RCM Global. The distribution of and subsequent sale of those securities by the Company through its subsidiary, RCC Residential, resulted in the realization of $5.0 million of net gains for the year ended December 31, 2015 . As a result of these distributions, the Company's ownership interest of the remaining assets decreased to 30.2% as of December 31, 2015 . In September 2014, the Company contributed $17.5 million to Pelium Capital for an initial ownership interest of 80.4% . Pelium Capital is a specialized credit opportunity fund managed by Resource America. The Company funded its final commitment of $2.5 million , as of February 1, 2015. The Company will receive 10% of the carried interest in the partnership for the first five years which can increase its interest to 20% if the Company's capital contributions aggregate $40.0 million . Resource America contributed cash of $2.8 million to the formation of Pelium Capital. The portion of the fund that the Company does not own is presented as non-controlling interests as of the dates and for the periods presented in the Company's consolidated financial statements. All intercompany accounts and transactions have been eliminated in consolidation. Pelium Capital was determined not to be a VIE as there was sufficient equity at risk, the Company does not have disproportionate voting rights and Pelium Capital's partners have all of the following characteristics: (1) the power to direct the activities of Pelium; (2) the obligation to absorb losses; and (3) the right to receive residual returns. However, Pelium Capital was consolidated as a result of the Company's majority ownership and the Company's unilateral kick-out rights. The non-controlling interest in Pelium Capital is owned by Resource America and outside investors. All intercompany accounts and transactions have been eliminated in consolidation. The Company's interest in Pelium Capital was 80.2% as of December 31, 2015 . On April 10, 2015, the Company entered into two first mortgage bridge loans in the amount of $2.5 million and $3.3 million with two funds sponsored by Resource America, Resource Real Estate Investors LP and Resource Real Estate Investors II, LP. Each loan carried an interest rate of LIBOR plus 5.75% with a LIBOR floor of 0.25% . The loans had a maturity date of May 5, 2016, with two consecutive one -year options to extend upon the first maturity date. The loan in the amount of $2.5 million was repaid in full with interest on April 29, 2015. The second loan in the amount of $3.3 million was repaid in full with interest on July 31, 2015. On June 24, 2015, the Company committed up to $50.0 million in Pearlmark Mezzanine Realty Partners IV, L.P. ("Pearlmark Mezz IV L.P."), a Delaware limited partnership. The contractual fund manager of the fund is Pearlmark Real Estate LLC ("Pearlmark"), a Delaware limited liability company that is 50% owned by Resource America. The Company will pay Pearlmark Mezz IV L.P management fees of 1.0% on the unfunded committed capital and 1.5% on the invested capital. The Company is entitled to a management fee rebate of 25% for the first year of the fund. As of December 31, 2015 , the Company is indebted for $94,000 for management fees, net of the rebate. In October, November and December 2015, the Company contributed an aggregate of $6.9 million in capital to Pearlmark Mezz IV. As of December 31, 2015 , the Company has an investment balance of $6.5 million and a 47.42% ownership interest in the fund. Resource America has agreed that it will credit any such fees paid by the Company to Pearlmark against the base management fee that the Company pays to Resource America. Relationship with Law Firm . Until 1996, Edward E. Cohen, a director who was the Company’s Chairman from its inception until November 2009, was of counsel to Ledgewood, P.C., a law firm. In addition, one of the Company’s executive officers, Jeffrey F. Brotman, was employed by Ledgewood until 2007. Mr. E. Cohen receives certain debt service payments from Ledgewood related to the termination of his affiliation with Ledgewood and its redemption of his interest in the firm. Mr. Brotman also receives certain debt service payments from Ledgewood related to the termination of his affiliation with the firm. For the years ended December 31, 2015 , 2014 and 2013 , the Company paid Ledgewood $434,000 , $280,000 and $360,000 , respectively, in connection with legal services rendered to the Company. |
DISTRIBUTIONS
DISTRIBUTIONS | 12 Months Ended |
Dec. 31, 2015 | |
DISTRIBUTIONS [Abstract] | |
DISTRIBUTIONS | NOTE 20 - DISTRIBUTIONS For the years ended December 31, 2015 , 2014 and 2013 , the Company has declared and paid $2.34 , $3.20 , and $3.20 dividends per common share, respectively. In order to qualify as a REIT, the Company must currently distribute at least 90% of its REIT taxable income. In addition, the Company must distribute 100% of its taxable income in order not to be subject to corporate federal income taxes on retained income. The Company anticipates it will distribute substantially all of its taxable income to its stockholders. Because taxable income differs from cash flow from operations due to non-cash revenues or expenses (such as provisions for loan and lease losses and depreciation), in certain circumstances, the Company may generate operating cash flow in excess of its distributions or, alternatively, may be required to borrow to make sufficient distribution payments. The Company’s 2016 dividends will be determined by the Company’s board of directors which will also consider the composition of any dividends declared, including the option of paying a portion in cash and the balance in additional common shares. The following tables presents dividends declared (on a per share basis) for the years ended December 31, 2015 , 2014 and 2013 : Common Stock Date Paid Total Dividend (in thousands) 2015 March 31 April 28 $ 21,444 $ 0.64 June 30 July 28 $ 21,426 $ 0.64 September 30 October 28 $ 20,667 $ 0.64 December 31 January 28, 2016 $ 13,274 $ 0.42 2014 March 31 April 28 $ 25,921 $ 0.80 June 30 July 28 $ 26,179 $ 0.80 September 30 October 28 $ 26,629 $ 0.80 December 31 January 28, 2015 $ 26,563 $ 0.80 2013 March 31 April 26 $ 21,634 $ 0.80 June 30 July 26 $ 25,399 $ 0.80 September 30 October 28 $ 25,447 $ 0.80 December 31 January 28, 2014 $ 25,536 $ 0.80 Preferred Stock Series A Series B Series C Date Paid Total Dividend Date Paid Total Dividend Date Paid Total Dividend (in thousands) (in thousands) (in thousands) 2015 2015 March 31 April 30 $ 568 $ 0.531250 April 30 $ 2,960 $ 0.515625 April 30 $ 2,588 $ 0.539063 June 30 July 30 $ 568 $ 0.531250 July 30 $ 2,960 $ 0.515625 July 30 $ 2,588 $ 0.539063 September 30 October 30 $ 568 $ 0.531250 October 30 $ 2,960 $ 0.515625 October 30 $ 2,588 $ 0.539063 December 31 February 1, 2016 $ 568 $ 0.531250 February 1, 2016 $ 2,960 $ 0.515625 February 1, 2016 $ 2,588 $ 0.539063 2014 2014 March 31 April 30 $ 463 $ 0.531250 April 30 $ 2,057 $ 0.515625 April 30 $ — $ — June 30 July 30 $ 537 $ 0.531250 July 30 $ 2,378 $ 0.515625 July 30 $ 1,437 $ 0.299479 September 30 October 30 $ 537 $ 0.531250 October 30 $ 2,430 $ 0.515625 October 30 $ 2,588 $ 0.539063 December 31 January 30, 2015 $ 568 $ 0.531250 January 30, 2015 $ 2,888 $ 0.515625 January 30, 2015 $ 2,588 $ 0.539063 2013 2013 March 31 April 30 $ 359 $ 0.531250 April 30 $ 1,152 $ 0.515625 June 30 July 30 $ 359 $ 0.531250 July 30 $ 1,584 $ 0.515625 September 30 October 30 $ 362 $ 0.531250 October 30 $ 1,662 $ 0.515625 December 31 January 30, 2014 $ 362 $ 0.531250 January 30, 2014 $ 1,797 $ 0.515625 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 21 - FAIR VALUE OF FINANCIAL INSTRUMENTS In analyzing the fair value of its investments accounted for on a fair value basis, the Company uses the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company determines fair value based on quoted prices when available or, if quoted prices are not available, through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The hierarchy followed defines three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability. Level 3 - Unobservable inputs that reflect the entity’s own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques. The determination of where an asset or liability falls in the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter; depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. However, the Company expects that changes in classifications between levels will be rare. Certain assets and liabilities are measured at fair value on a recurring basis. The following is a discussion of these assets and liabilities as well as the valuation techniques applied to each for fair value measurement. The Company reports its investment securities, available-for-sale at fair value. To determine fair value, the Company uses an independent third-party valuation firm utilizing data available in the market as well as appropriate prepayment, default, and recovery rates. These valuations are validated utilizing dealer quotes, bids, or internal models. If there is a material difference between the value indicated by the third-party valuation firm and the dealer quote or bid, the Company will evaluate the difference, which could result in an updated valuation from the third party or a revised dealer quote. Any changes in the fair value of investment securities, available-for-sale are recorded in other comprehensive income. Based on a prioritization of inputs used in the valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. The Company reports its investment securities, trading at fair value, based on an independent third-party valuation. The Company evaluates the reasonableness of the valuation it receives by using a dealer quote, bid, or internal model. If there is a material difference between the value indicated by the third party and a quote the Company receives, the Company will evaluate the difference, which could result in an updated valuation from the third party or a revised dealer quote. Any changes in fair value are recorded in the Company’s results of operations as net unrealized and unrealized (loss) gain on investment securities, trading. The Company's investments securities, trading are generally classified as Level 2 or Level 3 in the fair value hierarchy. The CMBS underlying the Company’s linked transactions were valued using the same techniques as those used for the Company’s other investment securities, available-for-sale and were generally classified as Level 2 or Level 3 in the fair value hierarchy. Due to a change in accounting guidance, as of January 1, 2015, the concept of linked transactions no longer exists. Derivatives, both assets and liabilities, are reported at fair value, and are valued by a third-party pricing agent using an income approach with models that use, as their primary inputs, readily observable market parameters. This valuation process considers factors including interest rate yield curves, time value, credit factors and volatility factors. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparties. The Company assesses the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and, if material, categorizes those derivatives within Level 3 of the fair value hierarchy . The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as follows (in thousands): Level 1 Level 2 Level 3 Total As of December 31, 2015: Assets: Investment securities, trading $ — $ — $ 25,550 $ 25,550 Investment securities available-for-sale — 4,451 203,637 208,088 Loans held for sale — 66,588 29,358 95,946 Derivatives — 826 2,620 3,446 Total assets at fair value $ — $ 71,865 $ 261,165 $ 333,030 Liabilities: Derivatives $ — $ — $ 3,941 $ 3,941 Total liabilities at fair value $ — $ — $ 3,941 $ 3,941 As of December 31, 2014: Assets: Investment securities, trading $ — $ — $ 20,786 $ 20,786 Investment securities available-for-sale — 33,158 242,562 275,720 CMBS - linked transactions — — 15,367 15,367 Derivatives 3,429 7 1,868 5,304 Total assets at fair value $ 3,429 $ 33,165 $ 280,583 $ 317,177 Liabilities: Moselle CLO Notes $ — $ — $ 68,940 $ 68,940 Derivatives (net) — — 8,476 8,476 Total liabilities at fair value $ — $ — $ 77,416 $ 77,416 The Company's residential mortgage loan portfolio included in loans held for sale is comprised of both agency loans and non-agency jumbo loans. The fair values of the Company's agency loan portfolio are generally classified as Level 2 in the fair value hierarchy, as those values are determined based on quoted market prices for similar assets or upon other observable inputs. The fair values of the Company's jumbo loan portfolio are generally classified as Level 3 in the fair value hierarchy, as those values are generally based upon valuation techniques that utilize unobservable inputs that reflect the assumptions that a market participant would use in pricing those assets. For the year ended December 31, 2014, the Company both acquired and liquidated the assets in Moselle CLO. As of December 31, 2014, all that remained of the Company's investment in Moselle CLO were cash, receivables related to the liquidation of Moselle CLO's assets, and the notes of the securitization ( see Note 13 for further discussion of Moselle CLO's notes). At acquisition, the Company recorded $176.9 million as the fair value of the notes (including the fair value of the securitized borrowing described in Note 13). During the year ended December 31, 2014, paydowns of $100.3 million were received, and net fair value and foreign currency adjustments of $7.5 million were recognized through earnings, resulting in a combined fair value of $68.9 million ( $63.3 million of which was attributable to Moselle CLO's senior notes and $5.6 million was attributable to Moselle CLO's securitized borrowings). As of December 31, 2015, Moselle CLO paid off all of its outstanding CLO notes. The following table presents additional information about assets that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs (in thousands): CMBS (1) ABS Structured Finance Warrants Interest Rate Lock Commitments Loans Held for Sale Total Balance, January 1, 2015 $ 185,772 $ 72,157 $ 20,786 $ 898 $ 970 $ 83,380 $ 363,963 Included in earnings 2,107 2,051 2,403 153 30,028 (1,248 ) 35,494 Unlinked transaction 33,239 — — — — — 33,239 Purchases originations 12,374 24,811 25,185 — — 274,623 336,993 Sales (3,000 ) (27,800 ) (17,282 ) — — (321,231 ) (369,313 ) Paydowns (67,933 ) (9,048 ) (2,432 ) — — (6,320 ) (85,733 ) Issuances — — — — — — — Settlements — (11,216 ) — — (29,777 ) — (40,993 ) Capitalized Interest — 1,857 — — — — 1,857 Included in OCI (3,135 ) (12,471 ) (3,110 ) — — — (18,716 ) Transfers into Level 3 — 3,872 — — — 154 4,026 Balance, December 31, 2015 $ 159,424 $ 44,213 $ 25,550 $ 1,051 $ 1,221 $ 29,358 $ 260,817 (1) Beginning balance includes linked transactions. Due to a change in accounting guidance, as of January 1, 2015, the concept of linked transactions no longer exists. The following table presents additional information about liabilities that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs (in thousands): Interest Rate Swaps Forwards - Residential Mortgage Loans Total Balance, January 1, 2015 $ 8,680 $ 1,029 $ 9,709 Included in earnings (275 ) 2,197 1,922 Settlements — (2,744 ) (2,744 ) Included in OCI (4,946 ) — (4,946 ) Transfers into Level 3 — — — Balance, December 31, 2015 $ 3,459 $ 482 $ 3,941 The following table summarizes financial assets and liabilities measured at fair value on a nonrecurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as follows (in thousands): Level 1 Level 2 Level 3 Total As of December 31, 2015: Assets : Loans held for sale $ — $ 1,279 $ 153 $ 1,432 Impaired loans — 262 129,433 129,695 Total assets at fair value $ — $ 1,541 $ 129,586 $ 131,127 As of December 31, 2014: Assets : Loans held for sale $ — $ 36,956 $ — $ 36,956 Impaired loans — 1,678 137,811 139,489 Total assets at fair value $ — $ 38,634 $ 137,811 $ 176,445 Loans held for sale consist of bank loans and CRE loans identified for sale due to credit concerns. Interest on loans held for sale is recognized according to the contractual terms of the loan and included in interest income on loans. The fair value of bank loans held for sale and impaired bank loans is based on what secondary markets are currently offering for these loans. As such, the Company classifies these loans as nonrecurring Level 2. For the Company’s CRE loans where there is no primary market, fair value is measured using discounted cash flow analysis and other valuation techniques and these loans are classified as nonrecurring Level 3. The amount of nonrecurring fair value losses for specifically impaired loans for the years ended December 31, 2015 , 2014 and 2013 was $39.2 million , $1.3 million and $3.1 million respectively. The amounts of nonrecurring fair value losses for loans held for sale for the years ended December 31, 2015 , 2014 and 2013 was $1.3 million , $680,000 , and $3.9 million . The Company had $372,000 , $0 and $863,000 of losses included in earnings due to the other-than-temporary impairment charges during the years ended December 31, 2015 , 2014 and 2013 , respectively. These losses were included in the consolidated statements of operations as net impairment losses recognized in earnings. In accordance with guidance on fair value measurements and disclosures, the Company is not required to disclose quantitative information with respect to unobservable inputs contained in fair value measurements that are not developed by the Company. As a consequence, the Company has not disclosed such information associated with fair values obtained from third-party pricing sources. For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2015 , for which quantitative information with respect to unobservable inputs was available, the significant unobservable inputs used in the fair value measurements were as follows (in thousands, except were otherwise indicated): Fair Value at December 31, 2015 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Value Interest rate swap agreements $ 3,459 Discounted cash flow Weighted average credit spreads 5.38 % Warrant $ 1,051 Option pricing model Market capitalization (in millions) $ 172.7 Volatility 50.0 % The Company is required to disclose the fair value of financial instruments for which it is practicable to estimate that value. The fair values of the Company's short-term financial instruments such as cash and cash equivalents, restricted cash, principal paydown receivable, interest receivable, distribution payable and accrued interest expense, repurchase agreements and the secured revolving credit agreement approximate their carrying value on the consolidated balance sheets. The fair values of the Company’s investment securities, trading is reported in Note 6 . The fair values of the Company’s investment securities available-for-sale are reported in Note 7 . The fair values of the Company’s derivative instruments and linked transactions are reported in Note 22. Loans held-for-investment: The fair value of the Company’s Level 2 Loans held-for-investment was primarily measured using a third-party pricing service. The fair value of the Company’s Level 3 Loans held-for-investment was measured by discounting the expected future cash flows using the current interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans receivable-related party are estimated by discounting the expected future cash flows using the current interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. CDO notes are valued using the dealer quotes, typically the dealer who underwrote the CDO in which the notes are held. Junior subordinated notes are estimated by obtaining quoted prices for similar assets in active markets. The fair value of the convertible notes was determined using a discounted cash flow model that discounts the expected future cash flows using current interest rates on similar debts that do not have a conversion option. The 6% Convertible Senior Notes are discounted at a rate of 7.00% and the 8% Convertible Senior Notes are discounted at a rate of 8.60% . The fair value of the CRE portfolio was determined using a discounted cash flow model that discounts the expected future cash flows at current rates at which similar loans would be made to borrowers with similar credit rating and with the same remaining maturities. Discount rates used range between 15%-25% . The fair values of the Company’s remaining financial instruments that are not reported at fair value on the consolidated balance sheets are reported below (in thousands): Fair Value Measurements Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) As of December 31, 2015: Loans held-for-investment $ 2,160,751 $ 2,150,061 $ — $ 222,100 $ 1,927,961 CDO notes $ 1,032,581 $ 923,817 $ — $ — $ 923,817 Junior subordinated notes $ 51,413 $ 17,907 $ — $ — $ 17,907 Convertible notes $ 205,484 $ 205,484 $ — $ — $ 205,484 Repurchase agreements $ 418,836 $ 418,836 $ — $ — $ 418,836 Senior secured revolving credit agreement $ 186,974 $ 186,974 $ — $ — $ 186,974 As of December 31, 2014: Loans held-for-investment $ 1,925,980 $ 1,909,019 $ — $ 570,071 $ 1,338,948 Loans receivable-related party $ 558 $ 558 $ — $ — $ 558 CDO notes $ 1,046,493 $ 975,762 $ — $ — $ 975,762 Junior subordinated notes $ 51,205 $ 17,699 $ — $ — $ 17,699 Convertible notes $ 108,374 $ 108,374 $ — $ — $ 108,374 Repurchase agreements $ 399,662 $ 399,662 $ — $ — $ 399,662 Senior secured revolving credit agreement $ 111,137 $ 111,137 $ — $ — $ 111,137 |
MARKET RISK AND DERIVATIVE INST
MARKET RISK AND DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
MARKET RISK AND DERIVATIVE INSTRUMENTS | 30 days to 90 days — — % Total $ 33,397 1.56 %" id="sjs-B4">NOTE 22 - MARKET RISK AND DERIVATIVE INSTRUMENTS The Company is directly and indirectly affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company's financial performance and are referred to as "market risks." When deemed appropriate, the Company uses derivatives as a risk management tool to mitigate the potential impact of certain market risks. The primary market risks managed by the Company through the use of derivative instruments are interest rate risk and foreign currency exchange rate risk. The Company may hold various derivatives in the ordinary course of business, including warrants, interest rate swaps, forward contracts, options and interest rate lock commitments. Warrants are securities that give the holder the right, but not the obligation, to purchase securities from an issuer at a specific price within a specified time period. Options are contracts sold by one party to another that give the buyer the right, but not the obligation, to buy or sell a financial asset at an agreed-upon price during a certain period of time or on a specific date. Interest rate swap agreements are contracts between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices. Forward contracts represent future commitments to either purchase or to deliver loans, securities or a quantity of a currency at a predetermined future date, at a predetermined rate or price and are used to manage interest rate risk on loan commitments and mortgage loans held for sale as well as currency risk with respect to the Company's long positions in foreign currency-denominated investment securities. Rate lock commitments represent commitments to fund loans at a specific rate and by a specified time and are used to mitigate risk of changes in interest rate in the Company's residential mortgage loan portfolio. A significant market risk to the Company is interest rate risk. Interest rates are highly sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political considerations and other factors beyond the Company’s control. Changes in the general level of interest rates can affect net interest income, which is the difference between the interest income earned on interest-earning assets and the interest expense incurred in connection with the interest-bearing liabilities, by affecting the spread between the interest-earning assets and interest-bearing liabilities. Changes in the level of interest rates also can affect the value of the Company’s interest-earning assets and the Company’s ability to realize gains from the sale of these assets. A decline in the value of the Company’s interest-earning assets pledged as collateral for borrowings could result in the counterparties demanding additional collateral pledges or liquidation of some of the existing collateral to reduce borrowing levels. The Company seeks to manage the extent to which net income changes as a function of changes in interest rates by matching adjustable-rate assets with variable-rate borrowings. The Company mitigates the potential impact on net income of periodic and lifetime coupon adjustment restrictions in its investment portfolio by entering into interest rate hedging agreements such as interest rate caps and interest rate swaps. At December 31, 2015 , the Company had nine interest rate swap contracts outstanding whereby the Company paid a weighted average fixed rate of 5.38% and received a variable rate equal to one-month LIBOR. The aggregate notional amount of these contracts was $102.8 million at December 31, 2015 . The counterparties for the Company’s designated interest rate hedge contracts at such date were Credit Suisse International and Wells Fargo. The Company had master netting agreements with Credit Suisse International and Wells Fargo at December 31, 2015 . Regulations promulgated under the Dodd-Frank Act mandate that the Company clear certain new interest rate swap transactions through a central counterparty. Transactions that are centrally cleared result in the Company facing a clearing house, rather than a swap dealer, as counterparty. Central clearing requires the Company to post collateral in the form of initial and variation margin to satisfy potential future obligations. As of December 31, 2015 , there were no centrally cleared interest rate swap contracts. The Company classifies these hedges as cash flow hedges, which are hedges that eliminate the risk of changes in the cash flows of a financial asset or liability. The Company records changes in fair value of derivatives designated and effective as cash flow hedges in other comprehensive income, and records changes in fair value of derivatives designated and ineffective as cash flow hedges in earnings. At December 31, 2014 , the Company had 10 interest rate swap contracts outstanding whereby the Company paid a weighted average fixed rate of 5.12% and received a variable rate equal to one-month LIBOR. The aggregate notional amount of these contracts was $124.0 million at December 31, 2014 . The counterparties for the Company’s designated interest rate hedge contracts are Credit Suisse International and Wells Fargo with which the Company has master netting agreements. The estimated fair value of the Company’s liability related to interest rate swaps was $3.5 million and $8.7 million as of December 31, 2015 and December 31, 2014 , respectively. The Company had aggregate unrealized losses of $3.5 million and $9.0 million on the interest rate swap agreements as of December 31, 2015 and December 31, 2014 , respectively, which is recorded in accumulated other comprehensive income and a portion is recognized through earnings. The amortization is reflected in interest expense in the Company’s consolidated statements of operations. In connection with the June 2007 close of RREF CDO 2007-1, the Company realized a swap termination gain of $2.6 million , which is being amortized over the term of RREF CDO 2007-1. The accretion is reflected as a reduction of interest expense in the Company’s consolidated statements of operations. In connection with the termination of a $53.6 million swap related to RREF CDO 2006-1 during the nine months ended September 30, 2008, the Company realized a swap termination loss of $4.2 million , which is being amortized over the term of a new $45.0 million swap. The amortization is reflected in interest expense in the Company’s consolidated statements of operations. During the years ended December 31, 2006, 2007 and 2008, the Company terminated 18 hedges through accumulated other comprehensive loss, to be amortized through earnings over the life of the remaining debt. During the years ended December 31, 2015 , 2014 and 2013 , the Company recognized expense of $275,000 , $282,000 and $288,000 , respectively, into earnings related to the amortization of gains and losses on the 18 terminated hedges. In the next twelve months, the Company expects to reclassify $57,000 from accumulated other comprehensive loss to earnings. The Company is also exposed to foreign currency exchange risk, a form of risk that arises from the change in price of one currency against another. Substantially all of the Company's revenues are transacted in U.S. dollars; however, a portion of the Company's capital is exposed to other currencies, primarily the Euro and, to a lesser extent, the pound sterling. To address this market risk, the Company generally hedges foreign currency-denominated exposures (typically investments in debt instruments, including forecasted principal and interest payments) with foreign currency forward contracts. The Company classifies these hedges as fair value hedges, which are hedges that mitigate the risk of changes in the fair values of assets, liabilities, and certain types of firm commitments. The Company records changes in the fair value of derivatives designated and effective as fair value hedges in earnings offset by the corresponding changes in the fair values of the hedged items. Forward contracts also contain an element of risk in that the counterparties may be unable to meet the terms of such agreements. In the event the parties to deliver commitments are unable to fulfill their obligations, the Company could potentially incur significant additional costs by replacing the positions at then current market rates. The Company manages its risk of exposure by limiting counterparties to those banks and institutions deemed appropriate by management. The Company does not expect any counterparty to default on its obligations and, therefore, the Company does not expect to incur any cost related to counterparty default. The Company is exposed to interest rate risk on loans held for sale and interest rate lock commitments. As market interest rates increase or decrease, the fair value of mortgage loans held for sale and rate lock commitments will decline or increase accordingly. To offset this interest rate risk, the Company may enter into derivatives such as forward contracts to sell loans. The fair value of these forward sales contracts will change as market interest rates change, and the change in the value of these instruments is expected to largely, though not entirely, offset the change in fair value of loans held for sale and rate lock commitments. The objective of this activity is to minimize the exposure to losses on rate lock commitments and loans held for sale due to market interest rate fluctuations. The net effect of derivatives on earnings will depend on risk management activities and a variety of other factors, including market interest rate volatility, the amount of interest rate lock commitments that close, the ability to fill the forward contracts before expiration, and the time period required to close and sell loans. During the warehousing phase of the Company’s investments in certain structured vehicles, the Company may enter into total return swaps to finance the Company’s exposure to assets that will ultimately be securitized. A total return swap is a swap agreement in which one party makes payments based on a set rate, while the other party makes payments based on the return of an underlying asset. Traditionally, the Company pays either an indexed or fixed interest payment to the warehousing lender and receives the net interest income and realized capital gains of the referenced portfolio of assets, generally loans, to be securitized that are owned and held by the warehousing lender. Upon the close of the warehousing period, the Company’s invested equity plus net interest and any capital gains realized during the warehousing period are returned to the Company. Additionally, upon the close of the securitization, the Company may purchase beneficial interests in the securitization at fair value. In March 2014, the Company was issued warrants in connection with the funding of a middle market loan. The warrants give the Company the right, but not the obligation, to purchase up to 0.9% of the total fully diluted common stock of Constellation Health LLC. As amended in September 2014, the warrants have an exercise price equal to the lesser of the Constellation Health's trailing twelve month earnings before interest, taxes, depreciation, and amortization times a multiplier of 6, or $50.0 million . The warrants also feature a seven -year term, allowances for either cash-based or cashless exercise, standard adjustments for stock splits, full-ratchet anti-dilution adjustments, and beneficial ownership limitations. The value of the warrants was calculated by performing a Black-Scholes analysis. In December 2014, the Company, through its subsidiary, Pelium, purchased call options on U.S. Treasury futures to act as a hedge against interest rate risk. The options gave the Company the right, but not the obligation, to purchase futures contracts on March 2015 U.S. Treasury notes. The options were sold during the three months ended March 31, 2015. The following tables present the fair value of the Company’s derivative financial instruments as well as their classification on the Company's consolidated balance sheets and on the consolidated statements of operations for the years presented: Fair Value of Derivative Instruments as of December 31, 2015 (in thousands) Asset Derivatives Notional Amount Balance Sheet Location Fair Value Interest rate lock agreements (1) $ 105,385 Derivatives, at fair value $ 1,224 Forward contracts - residential mortgage lending $ 92,413 Derivatives, at fair value $ 345 Forward contracts - foreign currency, hedging (2)(3) $ 24,850 Derivatives, at fair value $ 727 Forward contracts - TBA securities $ 29,500 Derivatives, at fair value $ 99 Warrants (4) $ 553 Derivatives, at fair value $ 1,051 Liability Derivatives Notional Amount Balance Sheet Location Fair Value Interest rate swap contracts, hedging (5) $ 102,799 Derivatives, at fair value $ 3,459 Interest rate lock agreements (6) $ 505 Derivatives, at fair value $ 3 Forward contracts - residential mortgage lending $ 143,553 Derivatives, at fair value $ 479 Forward contracts - TBA securities $ 1,500 Derivatives, at fair value $ — Interest rate swap contracts, hedging $ 102,799 Accumulated other comprehensive income (loss) $ (3,471 ) (1) The notional amount of the Company’s interest rate lock agreements in an asset position is the pass-through weighted total commitments with a weighted average pass-through percentage of 85.9% . (2) The notional amount is presented on a currency converted basis. The notional amount of our foreign currency hedging forward contracts was €22.9 million as of December 31, 2015 . (3) Foreign currency forward contracts are accounted for as fair value hedges. (4) The notional amount of the Company's warrants is the calculated number of shares available for purchase. (5) Interest rate swaps contracts are accounted for as fair value hedges. (6) The notional amount of the Company’s interest rate lock agreements in a liability position is the pass-through weighted total commitments with a weighted average pass-through percentage of 19.5% . Fair Value of Derivative Instruments as of December 31, 2014 (in thousands) Asset Derivatives Notional Amount Balance Sheet Location Fair Value Interest rate lock agreements (1) $ 59,467 Derivatives, at fair value $ 970 Forward contracts - residential mortgage lending $ 5,000 Derivatives, at fair value $ 7 Forward contracts - RMBS securities $ 42,614 Derivatives, at fair value $ 1,297 Forward contracts - foreign currency, hedging (2)(3) $ 54,948 Derivatives, at fair value $ 3,377 Options - U.S. Treasury futures $ 90 Derivatives, at fair value $ 52 Warrants (4) $ 492 Derivatives, at fair value $ 898 Liability Derivatives Notional Amount Balance Sheet Location Fair Value Interest rate swap contracts, hedging (5) $ 124,017 Derivatives, at fair value $ 8,680 Interest rate lock agreements (6) $ 798 Derivatives, at fair value $ 10 Forward contracts - residential mortgage lending $ 154,692 Derivatives, at fair value $ 1,036 Forward contracts - TBA securities $ 15,000 Derivatives, at fair value $ 47 Interest rate swap contracts, hedging $ 124,017 Accumulated other comprehensive income (loss) $ (8,680 ) (1) The notional amount of the Company’s interest rate lock agreements in an asset position is the pass-through weighted total commitments with a weighted average pass-through percentage of 76.4% . (2) The notional amount is presented on a currency converted basis. The notional amount of our foreign currency hedging forward contracts was €45.4 million as of December 31, 2014 . (3) Foreign currency forward contracts are accounted for as fair value hedges. (4) The notional amount of the Company's warrants is the calculated number of shares available for purchase. (5) Interest rate swaps contracts are accounted for as fair value hedges. (6) The notional amount of the Company’s interest rate lock agreements in a liability position is the pass-through weighted total commitments with a weighted average pass-through percentage of 21.2% . The Effect of Derivative Instruments on the Statements of Operations for the Year Ended December 31, 2015 (in thousands) Derivatives Statement of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ 6,335 Interest rate swap contracts, hedging Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ (18 ) Interest rate lock agreements Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 261 Forward contracts - residential mortgage lending Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 895 Forward contracts - RMBS securities Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ (215 ) Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 2,925 Options - U.S. Treasury futures Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 184 Forward contracts - TBA securities Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 483 The Effect of Derivative Instruments on the Statements of Operations for the Year Ended December 31, 2014 (in thousands) Derivatives Statement of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ 6,555 Interest rate lock agreements Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 960 Forward contracts - residential mortgage lending Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ (1,029 ) Forward contracts - RMBS securities Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 1,297 Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 3,377 Options - U.S. Treasury futures Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ (28 ) Forward contracts - TBA securities Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ (47 ) Warrants Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 898 The Effect of Derivative Instruments on the Statements of Operations for the Year Ended December 31, 2013 (in thousands) Derivatives Statement of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ 6,751 (1) Negative values indicate a decrease to the associated balance sheets or consolidated statements of operations line items. Linked Transactions As the result of an accounting standards update adopted on January 1, 2015 ( see Note 2 ), the Company unlinked its previously linked transactions and disclosed affected asset, liability, income and expense balances at their gross values in its consolidated financial statements. Accordingly, the Company had no financing arrangements being accounted for as linked transactions as of December 31, 2015 . The Company's linked transactions were evaluated on a combined basis, reported as forward (derivative) instruments and presented as assets on the Company's consolidated balance sheets at fair value. The fair value of linked transactions reflected the value of the underlying CMBS, linked repurchase agreement borrowings and accrued interest payable on such instruments. The Company's linked transactions were not designated as hedging instruments and, as a result, the change in the fair value and net interest income from linked transactions was reported in other income on the Company's consolidated statements of operations in prior periods. As of December 31, 2014 , the Company held non-hedging linked transactions, net at fair value of $15.4 million . During the years ended December 31, 2014 and 2013 , the Company recorded unrealized gain (loss) and net interest income on linked transactions, net of $7.9 million and $(3.8) million , respectively. The following table presents certain information about the components of the unrealized gain (loss) and net interest income from linked transactions, net, included in the Company's consolidated statements of operations for the years ended 2015 , 2014 and 2013 (in thousands): December 31, 2015 2014 2013 Components of Unrealized Net (Losses) Gains and Net Interest Income Income from Linked Transactions Interest income attributable to CMBS underlying linked transactions $ — $ 2,879 $ 2,912 Interest expense attributable to linked repurchase — (644 ) (735 ) Change in fair value of linked transactions included in earnings — 5,615 (6,018 ) Unrealized net (losses) gains and net interest income from linked transactions $ — $ 7,850 $ (3,841 ) The following table summarizes the Company's investment securities, underlying linked transactions, which were carried at fair value (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value As of December 31, 2014: CMBS linked transactions $ 48,138 $ 539 $ (72 ) $ 48,605 The following table summarizes the estimated maturities of the Company’s CMBS previously linked transactions according to their estimated weighted average life classifications (in thousands, except percentages): Weighted Average Life Fair Value Amortized Cost Weighted Average Coupon As of December 31, 2014: Less than one year $ 7,834 $ 7,775 5.36% Greater than one year and less than five years 36,587 36,274 4.65% Greater than five years and less than ten years 4,184 4,089 4.52% Greater than ten years — — —% Total $ 48,605 $ 48,138 4.66% The following table shows the fair value, gross unrealized losses and the length of time the investment securities available-for-sale have been in a continuous unrealized loss position during the period specified (in thousands): Less than 12 Months More than 12 Months Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses As of December 31, 2014: CMBS linked transactions $ 7,609 $ (57 ) $ 777 $ (15 ) $ 8,386 $ (72 ) The following table summarizes the Company's CMBS previously linked repurchase agreements (in thousands, except percentages): As of December 31, 2014 Maturity or Repricing Balance (1) Weighted Average Interest Rate Within 30 days $ 33,397 1.56 % >30 days to 90 days — — % Total $ 33,397 1.56 % |
OFFSETTING OF FINANCIAL ASSETS
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2015 | |
Offsetting [Abstract] | |
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | NOTE 23 - OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES As the result of an accounting standards update adopted on January 1, 2015 ( see Note 2 ), the Company unlinked its previously linked transactions and disclosed affected asset, liability, income and expense balances at their gross values in its consolidated financial statements. Accordingly, the Company had no financing arrangements being accounted for as linked transactions as of December 31, 2015 . The following table presents a summary of the Company's offsetting of derivative assets, presented (in thousands): (i) Recognized Assets (ii) Consolidated Balance Sheets (iii) = (i) - (ii) the Consolidated Balance Sheets (iv) Gross Amounts Not Offset in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged (v) = (iii) - (iv) Net Amount As of December 31, 2015: Derivative hedging instruments, $ 3,446 $ — $ 3,446 $ — $ — $ 3,446 Total $ 3,446 $ — $ 3,446 $ — $ — $ 3,446 As of December 31, 2014: Derivative hedging instruments, $ 4,334 $ — $ 4,334 $ — $ — $ 4,334 Linked transactions 48,764 33,397 15,367 — — 15,367 Total $ 53,098 $ 33,397 $ 19,701 $ — $ — $ 19,701 The following table presents a summary of the Company's offsetting of financial liabilities and derivative liabilities for the periods presented as follows (in thousands): (i) (ii) (iii) = (i) - (ii) (iv) (v) = (iii) - (iv) Financial (1) Cash (2) As of December 31, 2015: Derivative hedging instruments, (3) $ 3,941 $ — $ 3,941 $ — $ 500 $ 3,441 Repurchase agreements and term facilities (4) 418,836 — 418,836 418,836 — — Total $ 422,777 $ — $ 422,777 $ 418,836 $ 500 $ 3,441 As of December 31, 2014: Derivative hedging instruments, (3) $ 8,466 $ — $ 8,466 $ — $ 500 $ 7,966 Repurchase agreements and term facilities (4) 399,662 — 399,662 399,662 — — Linked transactions 33,397 33,397 — — — — Total $ 441,525 $ 33,397 $ 408,128 $ 399,662 $ 500 $ 7,966 (1) Amounts represent collateral pledged that is available to be offset against liability balances associated with term facilities, repurchase agreements and derivative transactions. (2) Amounts represent amounts pledged as collateral against derivative transactions. (3) The fair value of securities and/or cash and cash equivalents pledged against the Company's swaps was $500,000 and $2.6 million at December 31, 2015 and 2014 , respectively. (4) The combined fair value of securities and loans pledged against the Company's various term facilities and repurchase agreements was $643.2 million and $565.6 million at December 31, 2015 and 2014 , respectively. In the Company's consolidated balance sheets, all balances associated with repurchase agreement and derivatives transactions are presented on a gross basis. Certain of the Company's repurchase agreement and derivative transactions are governed by underlying agreements that generally provide for a right of offset in the event of default or in the event of a bankruptcy of either party to the transaction. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 24 - INCOME TAXES The Company operates in such a manner as to quality as a REIT, under the provisions of the Internal Revenue Code of 1986, as amended (the "Code"); therefore, applicable REIT taxable income is included in the taxable income of its shareholders, to the extent distributed by the Company. To maintain REIT status for federal income tax purposes, the Company is generally required to distribute at least 90% of its REIT taxable income to its shareholders as well as comply with certain other qualification requirements as defined under the Code. As a REIT, the Company is not subject to federal corporate income tax to the extent that it distributes 100% of its REIT taxable income each year. Taxable income from non-REIT activities managed primarily through the Company's taxable REIT subsidiaries is subject to federal, state and local income taxes. The Company's taxable REIT subsidiaries' income taxes are accounted for under the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for the temporary differences between the financial reporting basis and tax basis of assets and liabilities. The following table details the components of income taxes (in thousands): Years Ended December 31, 2015 2014 2013 Provision (benefit) for income taxes: Current: Federal $ 1,705 $ 6,819 $ 4,601 State 430 2,505 1,068 Total current 2,135 9,324 5,669 Deferred: Federal (1,007 ) (9,450 ) (5,116 ) State 617 (2,086 ) (1,594 ) Total deferred (390 ) (11,536 ) (6,710 ) Income tax provision (benefit) $ 1,745 $ (2,212 ) $ (1,041 ) A reconciliation of the income tax benefit (provision) based upon the statutory tax rate to the effective income tax rate is as follows (in thousands): Years Ended December 31, 2015 2014 2013 Statutory tax $ 361 $ (2,232 ) $ (588 ) State and local taxes, net of federal benefit 704 (375 ) (728 ) Permanent adjustments 149 41 2 True-up of prior period tax expense 530 353 253 Other items 1 1 20 $ 1,745 $ (2,212 ) $ (1,041 ) The components of deferred tax assets and liabilities are as follows (in thousands): December 31, 2015 2014 Deferred tax assets related to: Investment in securities $ 1,657 $ 1,030 Intangible assets basis difference — 2,533 Federal, state and local loss carryforwards 11,156 7,848 Bad debt for reserves 208 — Reserve on MSR valuation 222 — Deferred revenue — 207 Accrued expenses 895 56 Amortization of intangibles 3,182 766 Unrealized gains/losses 1,725 1,799 Mark to market adjustment — 188 Charitable contribution carryforwards 6 6 CLCO carryforwards 1,826 — Foreign exchange gain (loss) 156 — Equity compensation 34 167 Gain (loss) on sale of investments — 116 Partnership investment 1,965 (1,622 ) Total deferred tax assets 23,032 13,094 Valuation allowance — — Total deferred tax assets $ 23,032 $ 13,094 Deferred tax liabilities related to: Unrealized gain (loss) on investments $ (951 ) $ (366 ) Amortization of intangibles (6,319 ) — Gain (loss) on sale of investments (1,389 ) — Depreciation (80 ) (1 ) Accrued expenses — (3 ) Deferred revenue (2 ) — Partnership investment (1,645 ) (90 ) Total deferred tax liabilities $ (10,386 ) $ (460 ) Deferred tax assets, net $ 12,646 $ 12,634 Apidos CDO I, Apidos CDO III, Apidos Cinco CDO, Apidos CLO VIII, Whitney CLO I, Harvest CLO VII, Moselle CLO, Harvest CLO VIII, Harvest X Investor, Harvest CLO X, and Harvest CLO XV Designated Activity Company, the Company's foreign TRSs, are organized as exempted companies incorporated with limited liability under the laws of the Cayman Islands and, with respect to Moselle CLO, Luxembourg and, with respect to Harvest CLO VII, Harvest CLO VIII, Harvest CLO X, and Harvest CLO XV Designated Activity Company, Ireland, and are generally exempt from federal and state income tax at the corporate level because their activities in the United States are limited to trading in stock and securities for their own account. Therefore, despite their status as TRSs, they generally will not be subject to corporate tax on their earnings and no provision for income taxes is required; however, because they are “controlled foreign corporations,” the Company will generally be required to include Apidos CDO I's, Apidos CDO III's, Apidos Cinco CDO's, Apidos CLO VIII's, Whitney CLO I's, Harvest CLO VII’s, Moselle CLO’s, Harvest CLO VIII’s, Harvest X Investor’s, Harvest X CLO’s and Harvest XV Designated Activity Comoany's current taxable income in its calculation of REIT taxable income. On October 27, 2011 the Company reorganized the ownership structure of Apidos CDO I and Apidos CDO III. As a result, the earnings from Apidos CDO I and Apidos CDO III are excluded from the Company's calculation of REIT taxable income and are subject to corporate tax. On January 24, 2012, the Company again reorganized the ownership structure of Apidos CDO I and Apidos CDO III. As a result, for the period January 1, 2012 through January 23, 2012, the earnings from Apidos CDO I and Apidos CDO III are excluded from the Company's calculation of REIT taxable income and are subject to corporate tax. For the period January 24, 2012 through December 31, 2012 the earnings from Apidos CDO I are included in the Company's calculation of REIT taxable income. On December 11, 2012, the Company further reorganized the ownership structure of Apidos CDO III. As a result, for the period from January 24, 2012 through December 10, 2012 the earnings from Apidos CDO III are included in the Company's calculation of REIT taxable income. Also as a result of the reorganization on December 11, 2012, for the period December 11, 2012 through December 31, 2012, the earnings from Apidos CDO III are excluded from the Company's calculation of REIT taxable income and are subject to corporate tax. On November 12, 2012, the Company reorganized the ownership structure of Apidos Cinco CDO and Whitney CLO I. As a result, for the period November 12, 2012 through December 31, 2012, the earnings from Apidos Cinco CDO and Whitney CLO I are excluded from the Company's calculation of REIT taxable income and are subject to corporate tax. Accordingly, a provision for income taxes on the earnings from November 12, 2012 through December 31, 2012 has been recorded. On February 13, 2013, the Company reorganized the ownership structure of Apidos Cinco CDO and Whitney CLO I. As a result, for the period January 1, 2013 through February 12, 2013, the earnings from Apidos Cinco CDO and Whitney CLO I are excluded from the Company’s calculation of REIT taxable income and are subject to corporate tax. Accordingly, a provision for income taxes on the earnings from January 1, 2013 through February 12, 2013 has been recorded. Also as a result of the reorganization on February 13, 2013, for the period February 13, 2013 and ending December 31, 2013 the earnings from Apidos Cinco CDO and Whitney CLO I are included in the Company’s calculation of REIT taxable income. On March 8, 2013 the Company reorganized the ownership structure of Apidos CDO III. As a result, the earnings from Apidos CDO III for the period January 1, 2013 through March 7, 2013 are excluded from the Company’s calculation of REIT taxable income and are subject to corporate tax. Accordingly, a provision for income taxes on the earnings from January 1, 2013 through March 7, 2013 has been recorded. Also as a result of the reorganization on March 8, 2013, for the period March 8, 2013 and ending December 31, 2013 the earnings from Apidos CDO III are included in the Company’s calculation of REIT taxable income. On September 10, 2013, the Company acquired approximately 9.5% of the equity of Harvest CLO VII, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of Ireland. This equity is directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. On February 24, 2014, the Company acquired approximately 88.6% of the equity of Moselle CLO S.A., which is a foreign TRS, incorporated in Luxembourg. This equity is directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. On March 27, 2014, the Company acquired approximately 12.6% of the equity of Harvest CLO VIII, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of Ireland. This equity is directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. On July 3, 2014, the Company acquired approximately 55% of the equity of Harvest X Investor, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of the Cayman Islands. As of November 6, 2014, the Company’s investment was returned and the Company no longer has an active ownership interest in Harvest X Investor. For the period July 3, 2014 through November 6, 2014 the equity was directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. On November 6, 2014, the Company acquired approximately 32.1% of the equity of Harvest CLO X, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of Ireland. This equity is directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. On September 28, 2015, the Company acquired 100.0% of the equity of Harvest CLO XV Designated Activity Company, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of Ireland. This equity is directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earning are included in the Company’s calculation of REIT taxable income. In December 2015, a third party purchased a piece of the equity, decreasing our ownership to 66.0% . Effective January 1, 2007, the Company adopted the provisions of FASB's guidance for uncertain tax positions. This implementation did not have an impact on the Company's consolidated balance sheets or consolidated statements of income. The guidance prescribes that a tax position should only be recognized if it is more likely than not that the position will be sustained upon examination by the appropriate taxing authority. A tax position that meets this threshold is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. The Company is required to disclose its accounting policy for classifying interest and penalties, the amount of interest and penalties charged to expense each period as well as the cumulative amounts recorded in the consolidated balance sheets. The Company will continue to classify any tax penalties as other operating expenses and any interest as interest expense. The Company does not have any unrecognized tax benefits that would affect the Company's financial position. As of December 31, 2015 , the Company had $29.7 million of gross federal and $74.7 million of gross state and local net operating tax loss carryforwards ("NOLs"), respectively, or $104.4 million (deferred tax asset of $11.2 million ) in total that will begin to expire in 2032. Management believes it is more likely than not that the Company will be able to utilize all of these NOLs during the respective loss carry forward periods based on tax planning strategies that will generate future taxable income. As such, a valuation allowance has not been established against these deferred tax assets. Management will continue to assess the need for a valuation allowance in future periods. As of December 31, 2015 , income tax returns for the calendar years 2012 - 2015 remain subject to examination by IRS and/or any state or local taxing jurisdiction. The Company has not executed any agreements with the IRS or any state and/or local taxing jurisdiction to extend a statue of limitations in relation to any previous year. |
QUARTERLY RESULTS
QUARTERLY RESULTS | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY RESULTS | NOTE 25 - QUARTERLY RESULTS The following is a presentation of the quarterly results of operations: March 31 June 30 September 30 December 31 (unaudited) (unaudited) (unaudited) (unaudited) (in thousands, except per share data) Year Ended December 31, 2015: Interest income $ 37,642 $ 36,541 $ 39,328 $ 44,566 Interest expense (1) 14,902 15,803 17,227 17,721 Net interest income $ 22,740 $ 20,738 $ 22,101 $ 26,845 Net income (loss) allocable to common shares $ 9,402 $ (31,011 ) $ 6,778 $ 949 Net income (loss) per share − basic $ 0.29 $ (0.94 ) $ 0.21 $ 0.03 Net income (loss) per share − diluted $ 0.28 $ (0.94 ) $ 0.21 $ 0.03 Year Ended December 31, 2014: Interest income $ 27,085 $ 30,592 $ 33,841 $ 35,389 Interest expense (1) 9,627 10,610 11,510 13,726 Net interest income $ 17,458 $ 19,982 $ 22,331 $ 21,663 Net income allocable to common shares $ 15,116 $ 14,677 $ 7,328 $ 6,906 Net income per share − basic $ 0.48 $ 0.46 $ 0.23 $ 0.21 Net income per share − diluted $ 0.48 $ 0.46 $ 0.22 $ 0.21 (1) Certain reclassifications have been made to the 2015 and 2014 consolidated financial statements. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 26 - COMMITMENTS AND CONTINGENCIES From time to time, the Company may become involved in litigation on various matters, including disputes arising out of loans in the Company's portfolio and agreements to purchase or sell assets. Given the nature of the Company's business activities, the Company considers these matters to be routine and in the ordinary conduct of its business. The resolution of these matters may result in adverse judgments, fines, penalties, injunctions and other relief against the Company as well as monetary payments or other agreements and obligations. Alternately, the Company may engage in settlement discussions on certain matters in order to avoid the additional costs of engaging in litigation. In September 2015, Daren Levin filed a putative class action in the United States District Court for the Southern District of New York on behalf of all persons who purchased Company common stock between March 2, 2015 and August 4, 2015. On November 24, 2015, the Court appointed Douglas Drees as the lead plaintiff in the action, and thereafter entered a stipulation and order directing the lead plaintiff to file an amended complaint. On February 12, 2016, the lead plaintiff filed an amended complaint, alleging that the Company and certain of its officers and directors materially misrepresented certain risks of the Company’s commercial loan portfolio and its processes and controls for assessing the quality of its portfolio. Based on these allegations, the amended complaint asserts claims for violation of the securities laws and seeks a variety of relief, including unspecified monetary damages as well as costs and attorneys’ fees. The Company believes the amended complaint is without merit and intends to defend itself vigorously. In December 2015, Josh Reaves filed a shareholder derivative suit in the Supreme Court of New York alleging that the directors and certain officers of the Company breached their fiduciary duties by causing the Company to misrepresent certain risks of the Company’s commercial loan portfolio, by failing to employ adequate internal and financial controls at the Company, and by failing to disclose and causing the Company to fail to disclose the alleged internal control deficiencies. The Complaint, which has not yet been served on the Company, purports to seek relief on behalf of the Company for unspecified damages as well as costs and attorneys’ fees. The Company believes that the Plaintiff, who failed to make a pre-suit demand on the Board, lacks standing to assert claims derivatively on behalf of the Company and intends to respond accordingly in the event that it is served. PCM is a party to various claims and legal proceedings at various times. If they believe that a loss arising from any of these matters is probable and can be reasonably estimated, the loss is recorded. Some of these claims may relate to claims for repurchases or indemnifications on loans that PCM has sold to investors. Such claims are included in the reserve for mortgage repurchases and indemnifications. There was no additional accrual for litigation outcomes at December 31, 2015 and 2014. On May 13, 2014, ResCap Liquidating Trust (“ResCap”) as successor to Residential Funding Company, LLC (“RFC”), filed an adversary proceeding against PCM in United States Bankruptcy Court of the Southern District of New York. ResCap has sued some 90 sellers of residential mortgage loans for alleged breaches of warranty in various loans sold to RFC. RFC contends that such breaches caused it damages from loan losses and liability to other transferees of the loans. The case remains pending and has been consolidated with other cases for discovery and pre-trial purposes. PCM intends to defend the action vigorously. Loans on one-to-four family residential mortgages originated by PCM are sold to various financial institutions and governmental entities with representations and warranties that are usual and customary for the industry. In the event of a breach of any of the representations and warranties related to a loan sold, PCM may be required to indemnify the investor against future losses, repurchase the mortgage loan or reimburse the investor for actual losses incurred (referred to as “make whole payments”). The maximum exposure to credit loss in the event of an indemnification or loan repurchase would be the unpaid principal balance of the loan along with any premium paid by the investor when the loan was purchased, accrued but unpaid interest and other minor cost reimbursements. This maximum exposure is at least partially mitigated by the value of the collateral underlying the mortgage loan. As of December 31, 2015, outstanding demands for indemnification, repurchase or make whole payments totaled approximately $20.5 million , of which a substantial portion related to loans sold to four investors prior to 2011. Furthermore, a significant portion of these demands are involved in litigation with the investor. Unfunded commitments on the Company's originated CRE loans generally fall into two categories: (1) pre-approved capital improvement projects; and (2) new or additional construction costs subject, in each case, to the borrower meeting specified criteria. Upon completion of the improvements or construction, the Company would receive additional interest income on the advanced amount. Except as previously discussed, the Company is unaware of any contingencies arising from such routine litigation that would require accrual or additional disclosure in the consolidated financial statements as of December 31, 2015 . |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 27 - SEGMENT REPORTING The Company has five reportable operating segments: Commercial Real Estate Lending, Commercial Finance, Middle Market Lending, Residential Mortgage Lending, and Corporate & Other. The reportable operating segments are business units that offer different products and services. The Commercial Real Estate Lending operating segment includes the Company’s activities and operations related to commercial real estate loans, commercial real estate-related securities, and investments in real estate. The Commercial Finance operating segment includes the Company’s activities and operations related to bank loans, bank loan-related securities, and direct financing leases. The Middle Market Lending operating segment includes the Company’s activities and operations related to the origination and purchase of middle market loans. The Residential Mortgage Lending operating segment includes the Company’s activities and operations related to the origination and servicing of residential mortgage loans and the investment in RMBS. The Corporate & Other segment includes corporate level interest income, interest expense, inter-segment eliminations not allocable to any particular operating segment, and general and administrative expense. The accounting policies of the operating segments are the same as those described in Note 2 . The Company accounts for inter-segment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. Relevant expenses incurred at the Corporate & Other segment are allocated to TRS subsidiaries based on their percentage of adjusted pre-tax net income (loss), which excludes unrealized gains and losses and provisions on loan and lease losses that are specific to the periods presented. No single customer represents 10% or more of the consolidated revenues. Consequently, management believes that the Company’s revenues are appropriately diversified. Commercial Real Estate Lending Commercial Finance Middle Market Lending Residential Mortgage Lending Corporate & Other (1)(2)(3) Total For the Year Ended December 31, 2015: Interest income: External customers $ 100,203 $ 17,452 $ 31,340 $ 4,823 $ — $ 153,818 Other 89 4,072 6 1 91 4,259 Total interest income 100,292 21,524 31,346 4,824 91 158,077 Interest expense 33,775 2,818 5,331 3,903 19,826 65,653 Net interest income 66,517 18,706 26,015 921 (19,735 ) 92,424 Amortization of MSRs — — — (4,504 ) — (4,504 ) Other income from external customers — 4,865 — 9,148 66 14,079 Total revenues 66,517 23,571 26,015 5,565 (19,669 ) 101,999 Less: Segment operating expenses 130 1,507 2,351 1,229 11,297 16,514 General and administrative 2,263 3,494 2,360 31,871 8,092 48,080 Depreciation and amortization — 4,118 2 611 127 4,858 Impairment losses — 372 — — — 372 Provision (recovery) for loan losses 37,736 3,352 8,900 (99 ) — 49,889 Equity in earnings of unconsolidated subsidiaries 277 (2,608 ) — — (57 ) (2,388 ) Gain on sale of mortgages — — — (17,251 ) — (17,251 ) Other (income) expense 216 (8,582 ) (240 ) (4,717 ) (3,680 ) (17,003 ) Income (loss) before taxes 25,895 21,918 12,642 (6,079 ) (35,448 ) 18,928 Income tax (expense) benefit 37 (2,029 ) — 3,739 (3,492 ) (1,745 ) Net income (loss) $ 25,932 $ 19,889 $ 12,642 $ (2,340 ) $ (38,940 ) $ 17,183 Commercial Real Estate Lending Commercial Finance Middle Market Lending Residential Mortgage Lending Corporate & Other (1)(2)(3) Total For the Year Ended December 31, 2014: Interest income: External customers $ 76,619 $ 29,228 $ 11,878 $ 2,397 $ — $ 120,122 Other 1 6,556 — — 228 6,785 Total interest income 76,620 35,784 11,878 2,397 228 126,907 Interest expense 23,958 8,182 806 1,347 11,180 45,473 Net interest income 52,662 27,602 11,072 1,050 (10,952 ) 81,434 Amortization of MSRs — — — (1,606 ) — (1,606 ) Other income from external customers 8,441 6,392 — 5,100 (315 ) 19,618 Total revenues 61,103 33,994 11,072 4,544 (11,267 ) 99,446 Less: Segment operating expenses 5,443 3,071 338 1,457 15,284 25,593 General and administrative 2,088 4,773 352 20,400 7,248 34,861 Depreciation and amortization 484 1,800 — 379 74 2,737 Impairment losses — — — — — — Provision (recovery) for loan losses (3,808 ) 5,519 42 — 51 1,804 Equity in earnings of unconsolidated subsidiaries (4,364 ) (478 ) — — 75 (4,767 ) Gain on sale of mortgages — — — (7,997 ) — (7,997 ) Other (income) expense (8,003 ) (9,277 ) (435 ) 1,023 3,951 (12,741 ) Income (loss) before taxes 69,263 28,586 10,775 (10,718 ) (37,950 ) 59,956 Income tax (expense) benefit 300 (399 ) — 2,932 (621 ) 2,212 Net income (loss) $ 69,563 $ 28,187 $ 10,775 $ (7,786 ) $ (38,571 ) $ 62,168 Commercial Real Estate Lending Commercial Finance Middle Market Lending Residential Mortgage Lending Corporate & Other (1)(2)(3) Total For the Year Ended December 31, 2013: Interest income: External customers $ 55,905 $ 57,119 $ 607 $ 133 $ — $ 113,764 Other 6 3,938 — — 268 4,212 Total interest income 55,911 61,057 607 133 268 117,976 Interest expense 17,053 39,994 — 81 3,882 61,010 Net interest income 38,858 21,063 607 52 (3,614 ) 56,966 Amortization of MSRs — — — (254 ) — (254 ) Other income from external customers 19,923 6,115 — 617 (384 ) 26,271 Total revenues 58,781 27,178 607 415 (3,998 ) 82,983 Less: Segment operating expenses 14,062 2,407 — — 22,285 38,754 General and administrative 926 6,244 — 2,552 4,785 14,507 Depreciation and amortization 1,906 1,871 — 59 19 3,855 Impairment losses 328 535 — — — 863 Provision (recovery) for loan losses 4,292 333 — — (1,605 ) 3,020 Equity in earnings of unconsolidated subsidiaries (425 ) (994 ) — — 470 (949 ) Gain on sale of mortgages — — — (2,188 ) — (2,188 ) Other (income) expense (13,240 ) (7,849 ) — 958 (160 ) (20,291 ) Income (loss) before taxes 50,932 24,631 607 (966 ) (29,792 ) 45,412 Income tax (expense) benefit (33 ) (2,419 ) — 475 3,018 1,041 Net income (loss) $ 50,899 $ 22,212 $ 607 $ (491 ) $ (26,774 ) $ 46,453 (1) Includes interest expense for the Convertible Senior Notes of $17.4 million , $8.8 million , and $1.5 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. (2) Includes interest expense for the Unsecured Junior Subordinated Debentures of $2.4 million , $2.4 million , and $2.4 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. (3) Includes general corporate expenses and inter-segment eliminations not allocable to any particular operating segment. The following table presents total investments in unconsolidated subsidiaries and total assets by segment for the periods indicated (in thousands): Commercial Real Estate Lending Commercial Finance Middle Market Lending Residential Mortgage Lending Corporate & Other (1) Total Investments in unconsolidated subsidiaries December 31, 2015 $ 6,465 $ 42,017 $ — $ — $ 1,548 $ 50,030 Total Assets December 31, 2015 $ 1,907,951 $ 298,028 $ 384,973 $ 149,351 $ 20,129 $ 2,760,432 Investments in unconsolidated subsidiaries December 31, 2014 $ 654 $ 57,625 $ — $ — $ 1,548 $ 59,827 Total Assets December 31, 2014 $ 1,576,433 $ 639,639 $ 278,691 $ 179,714 $ 54,202 $ 2,728,679 (1) Includes assets not allocable to any particular operating segment. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 28 - SUBSEQUENT EVENTS The Company has evaluated subsequent events through the filing of this report and determined that there have not been any events that have occurred that would require adjustments to or disclosures in the consolidated financial statements, except the following: For the period January 1, 2016 through March 1, 2016, the Company has repurchased $4.5 million of its common stock, representing approximately 396,000 shares. The total amount repurchased to date is $30.4 million , or approximately 7.1% of the Company's outstanding balance. On February 3, 2016, Lehman Brothers Holdings Inc. (“LBHI”) as Plan Administrator under the Chapter 11 Plan of Lehman Brothers Holdings Inc. (“Lehman”), filed an adversary proceeding against PCM and more than 100 sellers of residential mortgage loans for alleged breaches of warranty in various loans sold to Lehman. LBHI contends that such breaches caused it damages from loan losses and liability to other transferees of the loans. PCM intends to defend the action vigorously. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II Valuation and Qualifying Accounts | SCHEDULE II Resource Capital Corp. Valuation and Qualifying Accounts (dollars in thousands) Balance at Charge to Write-offs Recoveries Balance at Allowance for loan and lease loss: Year ended December 31, 2015 $ 4,613 $ 49,889 $ (7,027 ) $ 61 $ 47,536 Year ended December 31, 2014 $ 13,807 $ 1,804 $ (10,998 ) $ — $ 4,613 Year ended December 31, 2013 $ 17,691 $ 3,020 $ (6,904 ) $ — $ 13,807 |
Schedule III - Real Estate and
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2015 | |
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
SCHEDULE III Real Estate and Accumulated Depreciation | SCHEDULE III Resource Capital Corp. Real Estate and Accumulated Depreciation December 31, 2015 (dollars in thousands) 2015 2014 2013 Real Estate Balance, beginning of year $ — $ 32,380 $ 77,936 Additions: Improvements — 25 268 — 25 268 Deductions: Cost of real estate sold — (32,405 ) (20,216 ) Property available-for-sale — — (25,608 ) Balance, end of year $ — $ — $ 32,380 Accumulated Depreciation Balance, beginning of year $ — $ 2,602 $ 2,550 Additions: Depreciation expense — 433 1,049 — 433 1,049 Deductions: Sales — (3,035 ) (997 ) Balance, end of year $ — $ — $ 2,602 |
Schedule IV Mortgage Loans on R
Schedule IV Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2015 | |
Mortgage Loans on Real Estate [Abstract] | |
SCHEDULE IV Mortgage Loans on Real Estate | SCHEDULE IV Resource Capital Corp. Mortgage Loans on Real Estate As of December 31, 2015 (Dollars in thousands) Type of Loan/ Borrower Description / Location Interest Payment Rates Final Maturity Date Periodic Payment (1) Prior Liens (2) Face Amount of Loans (3) Net Carrying Amount of Loans Principal Amount of Loans subject to delinquent principal or interest Whole Loans: Borrower A Multi-Family/Houston, TX LIBOR FLOOR 0.25% + 4.50% 7/5/2019 I/O — $ 73,075 $ 72,696 $ — Borrower B Retail/Various LIBOR FLOOR 0.25% + 5.24% 12/5/2020 I/O — 66,615 65,837 — Borrower C Multi-Family/NC & GA LIBOR FLOOR 0.25% + 5.35% 2/5/2020 I/O — 56,500 56,040 — All other Whole Loans individually less than 3% 1,444,554 1,432,482 — Total Whole Loans $ 1,640,744 (4) $ 1,627,055 $ — Mezzanine Loans: All Other Mezzanine Loans individually less than 3% $ 45,368 $ 7,923 $ 38,072 Total Mezzanine Loans $ 45,368 $ 7,923 $ 38,072 B Notes: All Other B Notes $ 15,934 $ 15,920 $ — Total B Notes $ 15,934 (4) $ 15,920 $ — Total Commercial Real Estate Loans $ 1,702,046 $ 1,650,898 (5) $ 38,072 Residential Mortgage Loans: All other Residential Mortgage Loans individually less than 3% $ 96,217 $ 96,206 $ 147 Total Residential Mortgage Loans $ 96,217 $ 96,206 (6) $ 147 Explanatory Notes: (1) IO = interest only (2) Represents only Third Party Liens. (3) Does not include unfunded commitments. (4) All Whole Loans and B Notes are current with respect to principal and interest payments. (5) The net carrying amount of loans includes an allowance for loan loss of $41.8 million at December 31, 2015 allocated to as follows: Whole Loans $3.7 million , Mezzanine Loans $38.1 million , and B Notes $16,000 . (6) The net carrying amount of Residential Mortgage Loans includes an allowance for loan loss of $11,000 at December 31, 2015. |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of the Company. All inter-company transactions and balances have been eliminated. Variable Interest Entities A VIE is defined as an entity in which equity investors (i) do not have a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional financial support from other parties. A VIE is required to be consolidated by its primary beneficiary, which is defined as the party that (a) has the power to control the activities that most significantly impact the VIE's economic performance and (b) has the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company considers the following criteria in determining whether an entity is a VIE: 1. The equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by any parties, including the equity holders. 2. The equity investors lack one or more of the following essential characteristics of a controlling financial interest. a. The direct ability to make decisions about the entity's activities through voting rights or similar rights. b. The obligation to absorb the expected losses of the entity. c. The right to receive the expected residual returns of the entity. 3. The equity investors have voting rights that are not proportionate to their economic interests, and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. In determining whether the Company is the primary beneficiary of a VIE, the Company reviews governing contracts, formation documents and any other contractual arrangements for any relevant terms and determines the activities that have the most significant impact on the VIE and who has the power to direct those activities. The Company also looks for kick-out rights, protective rights and participating rights as well as any financial or other support provided to the VIE and the reason for that support, and the terms of any explicit or implicit arrangements that may require the Company to provide future support. The Company then makes a determination based on its power to direct the most significant activities of the VIE and/or a financial interest that is potentially significant. The Company continually reassesses whether it should be deemed to be the primary beneficiary of its VIEs. Voting Interest Entities A voting interest entity is an entity in which the total equity investment at risk is sufficient to enable it to finance its activities independently and the equity holders have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the losses of the entity and the right to receive the residual returns of the entity. The usual condition for a controlling financial interest in a voting interest entity is ownership of a majority voting interest. If the Company has a majority voting interest in a voting interest entity, the entity will generally be consolidated. The Company does not consolidate a voting interest entity if there are substantive participating rights by other parties and/or kick-out rights by a single party or through a simple majority vote. The Company performs on-going reassessments of whether entities previously evaluated under the voting interest framework have become VIEs, based on certain events, and therefore subject to the VIE consolidation framework. |
Use of Estimates | Use of Estimates 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. Actual results could differ from those estimates. Estimates affecting the accompanying consolidated financial statements include the net realizable and fair values of the Company's investments and derivatives, the estimated life used on investments to calculate depreciation, amortization, and accretion of premiums and discounts, respectively, provisions for loan losses, valuation of servicing assets and the disclosure of contingent liabilities. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and all highly liquid investments with original maturities of three months or less at the time of purchase. |
Investment in Unconsolidated Entities | Investment in Unconsolidated Entities The Company's non-controlling investments in unconsolidated entities are included in investments in unconsolidated entities on the consolidated balance sheet and may be accounted for under the equity method or the cost method. Under the equity method, capital contributions, distributions, profits and losses of the entities are allocated in accordance with the terms of the entities' operating agreements. Such allocations may differ from the stated percentage interests, if any, as a result of preferred returns and allocation formulas as described in the entities' operating agreements. The Company may account for an investment that does not qualify for equity method accounting using the cost method. Under the cost method, the Company records dividend income when declared to the extent it is not considered a return of capital, which is recorded as a reduction of the cost of the investment. |
Investment Securities | Investment Securities The Company classifies its investment portfolio as trading or available-for-sale. The Company, from time to time, may sell any of its investments due to changes in market conditions or in accordance with its investment strategy. The Company’s investment securities, trading and investment securities, available-for-sale are reported at fair value. To determine fair value, the Company uses an independent third-party valuation firm utilizing data available in the market as well as appropriate prepayment, default, and recovery rates. These valuations are validated utilizing dealer quotes or bids or internal models. If there is a material difference between the value indicated by the third-party valuation firm and the dealer quote, bid, or internal models, the Company will evaluate the difference, which could result in an updated valuation from the third-party or a revised dealer quote. Based on a prioritization of inputs used in valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. Any changes in fair value to the Company's investment securities, trading are recorded in the Company’s consolidated statements of operations as net realized and unrealized (loss) gain on investment securities, trading. Any changes in fair value to the Company's investment securities available-for-sale are recorded in the Company’s consolidated balance sheets as a component of accumulated other comprehensive income (loss) in stockholders' equity. On a quarterly basis, the Company evaluates its available-for-sale investments for other-than-temporary impairment. An available-for-sale investment is impaired when its fair value has declined below its amortized cost basis. An impairment is considered other-than-temporary when the amortized cost basis of the investment or some portion thereof will not be recovered. The determination of other-than-temporary impairment is a subjective process, and different judgments and assumptions could affect the timing of loss realization. The Company reviews its portfolios and makes other-than-temporary impairment determinations at least quarterly. The Company considers the following factors when determining if there is an other-than-temporary impairment on a security: • the length of time the market value has been less than amortized cost; • the severity of the impairment; • the expected loss of the security as generated by a third-party valuation model; • original and current credit ratings from the rating agencies; • underlying credit fundamentals of the collateral backing the securities; • whether, based upon the Company’s intent, it is more likely than not that the Company will sell the security before the recovery of the amortized cost basis; and • third-party support for default, for recovery, prepayment speed and reinvestment price assumptions. Where credit quality is believed to be the cause of the other-than-temporary impairment, that component of the impairment is recognized as an impairment loss in the consolidated statements of operations. Where other market components are believed to be the cause of the impairment, that component of the impairment is recognized as other comprehensive loss. The Company performs an on-going review of third-party reports and updated financial data on the underlying properties in order to analyze current and projected security performance. Rating agency downgrades are considered with respect to the Company’s income approach when determining other-than temporary impairment and, when inputs are subjected to testing for economic changes within possible ranges, the resulting projected cash flows reflect a full recovery of principal and interest indicating no impairment. Investment security transactions are recorded on the trade date. Realized gains and losses on investment securities are determined on the specific identification method. |
Investment Interest Income Recognition | Investment Interest Income Recognition Interest income on the Company’s mortgage-backed and other asset-backed securities is accrued using the effective yield method based on the actual coupon rate and the outstanding principal amount of the underlying mortgages or other assets. Premiums and discounts are amortized or accreted into interest income over the lives of the securities also using the effective yield method, adjusted for the effects of estimated prepayments. For an investment purchased at par, the effective yield is the contractual interest rate on the investment. If the investment is purchased at a discount or at a premium, the effective yield is computed based on the contractual interest rate increased for the accretion of a purchase discount or decreased for the amortization of a purchase premium. The effective yield method requires the Company to make estimates of future prepayment rates for its investments that can be contractually prepaid before their contractual maturity date so that the purchase discount can be accreted, or the purchase premium can be amortized, over the estimated remaining life of the investment. The prepayment estimates that the Company uses directly impact the estimated remaining lives of its investments. Actual prepayment estimates are reviewed as of each quarter end or more frequently if the Company becomes aware of any material information that would lead it to believe that an adjustment is necessary. If prepayment estimates are incorrect, the amortization or accretion of premiums and discounts may have to be adjusted, which would have an impact on future income. To the extent that the Company invests in securities qualifying as beneficial interests in securitized financial assets, the Company will recognize the excess of all cash flows attributable to the beneficial interest estimated at the acquisition/transaction date over the initial investment (the accretable yield) as interest income over the life of the beneficial interest using the effective yield method. |
Loans - Other than Residential Mortgage Loans | Loans - Other than Residential Mortgage Loans The Company acquires loans through direct origination, through the acquisition of participations in commercial real estate loans and corporate leveraged loans in the secondary market and through syndications of newly originated loans. Loans are held for investment; therefore, the Company initially records them at their acquisition price, and subsequently, accounts for them based on their outstanding principal plus or minus unamortized premiums or discounts. The Company may sell a loan held for investment where the credit fundamentals underlying a particular loan have changed in such a manner that the Company's expected return on investment may decrease. Once the determination has been made by the Company that it no longer will hold the loan for investment, the Company identifies these loans as “Loans held for sale” and will account for them at the lower of amortized cost or fair value. |
Loan Interest Income Recognition | Loan Interest Income Recognition Interest income on loans includes interest at stated rates adjusted for amortization or accretion of premiums and discounts. Premiums and discounts are amortized or accreted into income using the effective yield method. If a loan with a premium or discount is prepaid, the Company immediately recognizes the unamortized portion as a decrease or increase to interest income. In addition, the Company defers loan origination fees and loan origination costs and recognizes them over the life of the related loan against interest income using the effective yield method. |
Residential Mortgage Loan Origination | Residential Mortgage Loan Origination The Company originates residential mortgage loans to be funded by permanent investors. The Company originates loans in 41 states with a focus on the Southeastern United States. The Company may sell or retain the right to service the loans. Servicing fees are recognized as income when the related mortgage payments are collected based on the outstanding balance of the related residential mortgage loans or on an agreed upon rate. Servicing fee income is reduced by amortization of capitalized servicing rights. The fair value option has been elected for all residential mortgage loans held for sale. As such, residential mortgage loans held for sale are valued at fair value, determined on an individual-loan basis. Additionally, due to such election, origination fees and direct origination costs are immediately recognized in earnings. Market value for conforming, agency loans is determined using sales commitments to permanent investors or on current market rates for loans of similar quality and type (generally Level 2 in the fair value hierarchy). Market value for non-agency, jumbo loans is determined using sales commitments to permanent investors, current market rates for loans of similar quality, or through the use of cash flow models (generally Level 3 in the fair value hierarchy). Residential mortgage loans are included as loans held for sale in the consolidated balance sheets. Conforming, agency loans are generally sold within 15 to 45 days of origination. Non-agency, jumbo loans may either be sold to private investors or held for securitization. Residential real estate properties acquired through foreclosure to be sold are initially recorded at fair value less selling costs at the date of foreclosure, establishing a new cost basis. Any write down to fair value at the time of foreclosure is charged to the allowance for loan losses. After foreclosure, valuations are periodically performed by management and the real estate is carried at the lower of the carrying amount or fair value less costs to sell. Costs related to holding foreclosed real estate and subsequent adjustments to value are expensed. The fair value of real estate owned is determined using unobservable inputs including estimates of selling costs and marketability of the property (Level 3). The unpaid principal balances of loans serviced by the Company for others are not included in the accompanying consolidated balance sheets. |
Sales of Financial Asssets | Sales of Financial Assets Originated residential mortgage loans are principally sold directly to, or pursuant to programs sponsored by, government-sponsored entities and other investors; however, some residential mortgage loans are sold to private investors. Each type of loan sale agreement is evaluated for sales treatment through a review that includes both an accounting and a legal analysis to determine whether or not the transferred assets have been isolated from the transferor, the extent of the continuing involvement and the existence of any protection provisions. To the extent the loan transfer qualifies as a sale, the asset is derecognized and the gain or loss is recorded on the sale date. In the event the transfer of assets does not qualify as a sale, the transfer would be treated as a secured borrowing. |
Mortgage Servicing Rights | Mortgage Servicing Rights A mortgage servicing right is the right to receive a portion of the interest coupon and fees collected from the mortgagor for performing specified mortgage servicing activities, which consist of collecting loan payments, remitting principal and interest payments to investors, managing escrow funds for the payment of mortgage-related expenses such as taxes and insurance and otherwise administering the mortgage loan servicing portfolio. Mortgage servicing rights are created through either the direct purchase of servicing from a third party or through the sale of an originated mortgage loan. The fair value of residential servicing rights included in the consolidated balance sheets was determined using an estimated current market value at the date of loan origination and other assumptions. Capitalized servicing rights are amortized over the life of the loan, assuming certain prepayment and other assumptions and are evaluated at each reporting date for the lower of cost or fair value. |
Allowance for Loan Loss | Allowance for Loan Loss The Company maintains an allowance for loan loss. For the Company's CRE, bank and middle market loan portfolios, loans held for investment are first individually evaluated for impairment to determine whether a specific reserve is required. Loans that are not determined to be impaired individually are then evaluated for impairment as a homogeneous pool of loans with substantially similar characteristics so that a general reserve can be established, if needed. The reviews are performed at least quarterly. The Company considers a loan to be impaired if one of two conditions exists. The first condition is if, based on current information and events, management believes that a loss event has occurred which makes it probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The second condition is if the loan is deemed to be a troubled-debt restructuring (“TDR”) where a concession has been given to a borrower in financial difficulty. These TDRs may not have an associated specific loan loss allowance if the principal and interest amount is considered recoverable based on current market conditions, expected collateral performance and/or guarantees made by the borrowers. When a loan is impaired under either of these two conditions, the allowance for loan losses is increased by the amount of the excess of the amortized cost basis of the loan over its fair value. Fair value may be determined based on the present value of estimated cash flows; on market price, if available; or on the fair value of the collateral less estimated disposition costs. When a loan, or a portion thereof, is considered uncollectible and pursuit of collection is not warranted, the Company will record a charge-off or write-down of the loan against the allowance for loan losses. An impaired loan may remain on accrual status during the period in which the Company is pursuing repayment of the loan; however, the loan would be placed on non-accrual status at such time as (i) management believes that scheduled debt service payments will not be met within the coming 12 months; (ii) the loan becomes 90 days delinquent; (iii) management determines the borrower is incapable of, or has ceased efforts toward, curing the cause of the impairment; or (iv) the net realizable value of the loan’s underlying collateral approximates the Company’s carrying value for such loan. While on non-accrual status, the Company recognizes interest income only when an actual payment is received. When a loan is placed on non-accrual, previously accrued interest is reversed from interest income. For the Company's residential mortgage loans, the allowance is based upon management's periodic review of the collectability of the loans in light of historical experience, the nature and amount of the loan portfolio, adverse situations that may affect the borrower's ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific and general components. The specific component relates to loans that are classified as doubtful, substandard, or special mention. For such loans that are also identified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan are lower than the carrying value of that loan. A general component is maintained to cover uncertainties that could affect management's estimate of probable losses. The general component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impaired loans are carried at fair value and are measured on a quarterly basis. The fair value is determined using unobservable inputs including estimates of selling costs (Level 3). |
Long-Lived and Intangible Assets | Long-Lived and Intangible Assets Long-lived assets and certain identifiable intangibles to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. The review of recoverability is based on an estimate of the future undiscounted cash flows (excluding interest charges) expected to result from the long-lived asset’s use and eventual disposition. If impairment has occurred, the loss will be measured as the excess of the carrying amount of the asset over the fair value of the asset. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) for the Company includes net income and the change in net unrealized gains (losses) on available-for-sale securities, derivative instruments used to hedge exposure to interest rate fluctuations and protect against declines in the market value of assets resulting from general market trends as well as translation of currency as a result of the Company's investment in the equity of foreign CDOs. |
Income Taxes | Income Taxes The Company operates in such a manner as to qualify as a real estate investment trust (“REIT”) under the provisions of the Internal Revenue Code of 1986, as amended (the "Code"); therefore, applicable REIT taxable income is included in the taxable income of its shareholders, to the extent distributed by the Company. To maintain REIT status for federal income tax purposes, the Company is generally required to distribute at least 90% of its REIT taxable income to its shareholders as well as comply with certain other qualification requirements as defined under the Code. As a REIT, the Company is not subject to federal corporate income tax to the extent that it distributes 100% of its REIT taxable income each year. Taxable income, from non-REIT activities managed through the Company's TRSs, are subject to federal, state and local income taxes. The Company's TRS' income taxes are accounted for under the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for the temporary differences between the financial reporting basis and tax basis of assets and liabilities. Apidos CDO I, Apidos CDO III, Apidos Cinco CDO, Apidos CLO VIII, Whitney CLO I, Harvest CLO VII, Moselle CLO, Harvest CLO VIII, Harvest X Investor, Harvest CLO X, and Harvest CLO XV Designated Activity Company, the Company's foreign TRSs, are organized as exempted companies incorporated with limited liability under the laws of the Cayman Islands and, with respect to Moselle CLO, Luxembourg and, with respect to Harvest CLO VII, Harvest CLO VIII, Harvest CLO X, and Harvest CLO XV Designated Activity Company, Ireland, and are generally exempt from federal and state income tax at the corporate level because their activities in the United States are limited to trading in stock and securities for their own account. Therefore, despite their status as TRSs, they generally will not be subject to corporate tax on their earnings and no provision for income taxes is required; however, because they are “controlled foreign corporations,” the Company will generally be required to include Apidos CDO I's, Apidos CDO III's, Apidos Cinco CDO's, Apidos CLO VIII's, Whitney CLO I's, Harvest CLO VII’s, Moselle CLO’s, Harvest CLO VIII’s, Harvest X Investor’s, Harvest CLO X’s, and Harvest CLO XV Designated Activity Company’s current taxable income in its calculation of REIT taxable income. On October 27, 2011 the Company reorganized the ownership structure of Apidos CDO I and Apidos CDO III. As a result, the earnings from Apidos CDO I and Apidos CDO III are excluded from the Company's calculation of REIT taxable income and are subject to corporate tax. On January 24, 2012, the Company again reorganized the ownership structure of Apidos CDO I and Apidos CDO III. As a result, for the period January 1, 2012 through January 23, 2012, the earnings from Apidos CDO I and Apidos CDO III are excluded from the Company's calculation of REIT taxable income and are subject to corporate tax. For the period January 24, 2012 through December 31, 2012 the earnings from Apidos CDO I are included in the Company's calculation of REIT taxable income. On December 11, 2012, the Company further reorganized the ownership structure of Apidos CDO III. As a result, for the period from January 24, 2012 through December 10, 2012 the earnings from Apidos CDO III are included in the Company's calculation of REIT taxable income. Also as a result of the reorganization on December 11, 2012, for the period December 11, 2012 through December 31, 2012, the earnings from Apidos CDO III are excluded from the Company's calculation of REIT taxable income and are subject to corporate tax. On November 12, 2012, the Company reorganized the ownership structure of Apidos Cinco CDO and Whitney CLO I. As a result, for the period November 12, 2012 through December 31, 2012, the earnings from Apidos Cinco CDO and Whitney CLO I are excluded from the Company's calculation of REIT taxable income and are subject to corporate tax. Accordingly, a provision for income taxes on the earnings from November 12, 2012 through December 31, 2012 was recorded. On February 13, 2013, the Company reorganized the ownership structure of Apidos Cinco CDO and Whitney CLO I. As a result, for the period January 1, 2013 through February 12, 2013, the earnings from Apidos Cinco CDO and Whitney CLO I are excluded from the Company’s calculation of REIT taxable income and are subject to corporate tax. Accordingly, a provision for income taxes on the earnings from January 1, 2013 through February 12, 2013 has been recorded. Also as a result of the reorganization on February 13, 2013, for the period February 13, 2013 and ending December 31, 2013 the earnings from Apidos Cinco CDO and Whitney CLO I are included in the Company’s calculation of REIT taxable income. On March 8, 2013 the Company reorganized the ownership structure of Apidos CDO III. As a result, the earnings from Apidos CDO III for the period January 1, 2013 through March 7, 2013 are excluded from the Company’s calculation of REIT taxable income and are subject to corporate tax. Accordingly, a provision for income taxes on the earnings from January 1, 2013 through March 7, 2013 has been recorded. Also as a result of the reorganization on March 8, 2013, for the period March 8, 2013 and ending December 31, 2013 the earnings from Apidos CDO III are included in the Company’s calculation of REIT taxable income. On September 10, 2013, the Company acquired approximately 9.5% of the equity of Harvest CLO VII, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of Ireland. This equity is directly owned by a domestic QRS (Qualified REIT Subsidiary) of the Company; therefore, its earnings are included in the Company’s calculation of REIT taxable income. On February 24, 2014, the Company acquired approximately 88.6% of the equity of Moselle CLO S.A., which is a foreign TRS, incorporated in Luxembourg. This equity was directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. On March 27, 2014, the Company acquired approximately 12.6% of the equity of Harvest CLO VIII, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of Ireland. This equity is directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. On July 3, 2014, the Company acquired approximately 55.0% of the equity of Harvest X Investor, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of the Cayman Islands. As of November 6, 2014, the Company’s investment was returned and the Company no longer has an active ownership interest in Harvest X Investor. For the period July 3, 2014 through November 6, 2014 the equity was directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. On November 6, 2014, the Company acquired approximately 32.1% of the equity of Harvest CLO X, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of Ireland. This equity is directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earnings are included in the Company’s calculation of REIT taxable income. On September 28, 2015, the Company acquired 100.0% of the equity of Harvest CLO XV Designated Activity Company, which is a foreign TRS, organized as an exempt company incorporated with limited liability under the laws of Ireland. This equity is directly owned by a domestic qualified REIT subsidiary of the Company and, accordingly, its earning are included in the Company’s calculation of REIT taxable income. In December 2015, a third party purchased a piece of the equity, decreasing our ownership to 66.0% The Company accounts for taxes assessed by a governmental authority that is directly imposed on a revenue-producing transaction (e.g., sales, use, value added) on a net (excluded from revenue) basis. |
Stock Based Compensation | Stock Based Compensation Issuances of restricted stock and options are accounted for using the fair value based methodology whereby the fair value of the award is measured on the grant date and expensed monthly to equity compensation expense-related party on the consolidated statements of operations with a corresponding entry to additional paid-in capital. For issuances to the Company's Manager and to non-employees, the unvested stock and options are adjusted quarterly to reflect changes in fair value as performance under the agreement is completed. For issuances to the Company's seven non-employee directors or to any direct employees of the Company's subsidiaries, the amount is not remeasured under the fair value-based method. The compensation for each of these issuances is amortized over the service period and included in equity compensation expense. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The Company calculates basic income per share by dividing net income for the period by the weighted-average number of shares of its common stock, including vested restricted stock and participating securities, outstanding for that period. Diluted income per share takes into account the effect of dilutive instruments, such as stock options, unvested restricted stock and convertible debt, but uses the average share price for the period in determining the number of incremental shares that are to be added to the weighted-average number of shares outstanding. |
Derivative Instruments | Derivative Instruments The Company's policies permit it to enter into derivative contracts, including interest rate swaps and interest rate caps, to add stability to its interest expense and to manage its exposure to interest rate movements or other identified risks. The Company has designated these transactions as cash flow hedges. The contracts or hedge instruments are evaluated at inception and at subsequent consolidated balance sheets dates to determine if they qualify for hedge accounting which requires that the Company recognize all derivatives on the consolidated balance sheets at fair value. The Company records changes in the estimated fair value of the derivative in other comprehensive income to the extent that it is effective. Any ineffective portion of a derivative's change in fair value is immediately recognized in earnings. The Company may also enter into forward currency contracts. Forward contracts represent future commitments to either purchase or to deliver loans, securities or a quantity of a currency at a predetermined future date, at a predetermined rate or price and are used to manage interest rate risk on loan commitments and mortgage loans held for sale as well as currency risk with respect to the Company's long positions in foreign currency-denominated investment securities. The Company may also enter into forward contracts for the sale of mortgage-backed securities for the purpose of hedging its closed residential mortgage loans held for sale and its pipeline of residential mortgage loans expected to close. As residential mortgage loans are closed, they are typically sold at prices specified in the forward contracts. Gains or losses may arise if the yields of the loans delivered vary from those specified in the forward contracts. Derivative mortgage loan commitments, or interest rate locks, may also be utilized and relate to the origination of a mortgage that will be held for sale upon funding. The Company may also hold warrants. Warrants give the holder the right, but not the obligation, to purchase equity in the Company at a specific price within a specified time period. Typically, the warrant contracts include expiration dates well into the future and an exercise price set above the current fair value of the common stock. With the expiration date set into the future, the warrant’s value is impacted by the time value of money. Both this factor and the fluctuation in the underlying stock’s price impact the value of the warrant, thereby causing the holder to consider this investment as a derivative. The Company may also hold options on future contracts. Options are contracts sold by one party to another that give the buyer the right, but not the obligation, to buy or sell a financial asset at an agreed-upon price during a certain period of time or on a specific date. |
Linked Transactions | Linked Transactions Prior to January 1, 2015, if the Company financed the purchase of securities with repurchase agreements with the same counterparty from whom the securities were purchased and both transactions were entered into contemporaneously or in contemplation of each other, the transactions were presumed not to meet sale accounting criteria and the Company accounted for the purchase of such securities and the repurchase agreement on a net basis and recorded a forward purchase commitment to purchase securities (each, a “Linked Transaction”) at fair value on the Company's consolidated balance sheets in the line item linked transactions, at fair value. Changes in the fair value of the assets and liabilities underlying the linked transactions and associated interest income and interest expense were reported as unrealized (loss) gain and net interest income on linked transactions, net on the Company's consolidated statements of operations. Due to a change in accounting guidance, as of January 1, 2015, the concept of linked transactions no longer exists. |
Recent Accounting Standards | Recent Accounting Standards In January 2016, the Financial Accounting Standards Board ("FASB") issued guidance to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments in order to provide users of financial statements with more decision-useful information. The guidance requires equity investments to be measured at fair value with changes in fair value recognized in net income; simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; requires separate presentation of financial assets and financial liabilities by measurement category and form of financial assets on the balance sheet or the accompanying notes to the financial statements and clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. It is effective for annual reporting periods, and the interim periods within those periods, beginning after December 15, 2017 and early adoption is permitted for certain provisions. The Company is currently evaluating the effect of adoption. In September 2015, the FASB issued guidance that simplifies the accounting for adjustments made to provisional amounts recognized in a business combination, which are currently recognized on a retrospective basis. Under the new requirements, adjustments to provisional amounts will be recognized in the reporting period in which the adjustments are determined. The effects of changes in depreciation, amortization, or other income arising from changes to the provisional amounts, if any, are included in earnings of the reporting period in which the adjustments to the provisional amounts are determined. An entity is also required to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. It is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, but early adoption is permitted. The Company is currently evaluating the effect of adoption. In April 2015, the FASB issued guidance that simplifies the presentation of debt issuance costs by requiring that debt issuance costs be presented in the balance sheet as a deduction from the carrying amount of the related debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. It is effective for annual reporting periods beginning after December 15, 2015, but early adoption is permitted. The Company has early adopted the provisions of this guidance. Note 13, Borrowings , reflects the presentation of debt issuance costs as prescribed by this accounting standards update. Adoption did not have a material impact on the Company's consolidated financial statements. In February 2015, the FASB issued guidance that requires an entity to evaluate whether it should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: (1) modify the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities; (2) eliminate the presumption that a general partner should consolidate a limited partnership; (3) affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related-party relationships; and (4) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. This guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early application is permitted. The Company is currently evaluating the effect of adoption. In November 2014, the FASB issued guidance to eliminate the use of different methods in practice and thereby reduce existing diversity under GAAP in the accounting for hybrid financial instruments issued in the form of shares. An entity that issues or invests in a hybrid financial instrument is required to separate an embedded derivative feature from the host contract (for example, an underlying share) and account for the feature as a derivative according to Accounting Standards Codification ("ASC") Subtopic 815-10 on derivatives and hedging if certain criteria are met. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The Company is currently evaluating the effect of adoption. In August 2014, the FASB issued guidance that clarifies the disclosures management must make in its interim and annual financial statement footnotes when management has determined that conditions exist that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued (or within one year after the date the financial statements are available to be issued when applicable). In accordance with this guidance, management’s assessment is required to be made each reporting period and should be based on relevant conditions and events that are known and reasonably knowable at the date the financial statements are issued. In all cases, to the extent that substantial doubt about the entity’s ability to continue as a going concern is determined to be probable, management must disclose the principal conditions or events that gave rise to the substantial doubt about the entity’s ability to continue as a going concern, management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, and management’s plans that either alleviate or are intended to mitigate the conditions or events that gave rise to the substantial doubt about the entity’s ability to continue as a going concern. Additionally, to the extent substantial doubt about the entity’s ability to continue as a going concern is not alleviated by management’s plans, management must indicate in the footnotes that there is substantial doubt about the entity’s ability to continue as a going concern. This guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. The Company does not expect adoption will have a material impact on its consolidated financial statements. In August 2014, the FASB issued guidance that provides for the election of a measurement alternative when a reporting entity determines that it is the primary beneficiary of a collateralized financing entity and, hence, is required to consolidate that collateralized financing entity. The measurement alternative allows a qualifying consolidated collateralized financing entity to use the more observable of the fair value of the financial assets or the fair value of the financial liabilities adjusted by the carrying amount of non-financial assets and the fair value of any beneficial interests retained by the reporting entity (including those beneficial interests that represent compensation for services). Alternatively, if the measurement alternative is not elected for a qualifying consolidated collateralized financing entity, this guidance requires that the financial assets and financial liabilities be measured in accordance with ASC Topic 820, and that any difference in the fair value of the financial assets and the fair value of the financial liabilities be reflected in earnings and attributed to the reporting entity in the consolidated statement of operations. This guidance is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted as of the beginning of an annual period. The Company is currently evaluating the effect of adoption. In June 2014, the FASB issued guidance that changes the accounting for repurchase-to-maturity transactions to secured borrowing accounting and requires separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which results in secured borrowing accounting for the repurchase arrangements. This amendment also requires additional disclosure for certain transactions comprising a transfer of a financial asset accounted for as a sale and an agreement with the same transferee entered into in contemplation of the initial transfer that results in the transferor retaining substantially all of the exposure to the economic return on the transferred financial asset throughout the term of the transaction. The Company adopted this accounting standards update on January 1, 2015. Upon adoption, the Company unlinked its previously linked transactions and disclosed affected asset, liability, income and expense balances at their gross values in its consolidated financial statements. In April 2014, the FASB issued guidance that changes the requirements for reporting discontinued operations. The amendments in this update require an entity to present, for each comparative period, the assets and liabilities of a disposal group that includes a discontinued operation separately in the asset and liability sections of the statement of financial position. The amendments in this update also require additional disclosures about discontinued operations and new disclosures for disposal transactions of individually significant components of an entity that do not meet the definition of a discontinued operation. Additionally, this guidance both permits and expands the disclosures about an entity’s significant continuing involvement with a discontinued operation. This guidance is effective for all disposals, or classifications of assets as held for sale, of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption was permitted for disposals that had not been reported in financial statements previously issued or available for issuance. The Company early adopted the provisions of this guidance. Adoption did not have a material impact on the Company's consolidated financial statements. In January 2014, the FASB issued guidance that clarifies when a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan. Furthermore, the guidance requires interim and annual disclosure of the amount of foreclosed residential real estate property held by the creditor and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. This guidance was effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Adoption did not have a material impact on the Company's consolidated financial statements. |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2013 and 2014 consolidated financial statements to conform to the 2015 presentation. |
Distributions | In order to qualify as a REIT, the Company must currently distribute at least 90% of its REIT taxable income. In addition, the Company must distribute 100% of its taxable income in order not to be subject to corporate federal income taxes on retained income. The Company anticipates it will distribute substantially all of its taxable income to its stockholders. Because taxable income differs from cash flow from operations due to non-cash revenues or expenses (such as provisions for loan and lease losses and depreciation), in certain circumstances, the Company may generate operating cash flow in excess of its distributions or, alternatively, may be required to borrow to make sufficient distribution payments. The Company’s 2016 dividends will be determined by the Company’s board of directors which will also consider the composition of any dividends declared, including the option of paying a portion in cash and the balance in additional common shares. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table shows the classification and carrying value of assets and liabilities of consolidated VIEs as of December 31, 2015 (in thousands): Apidos I Apidos Apidos Whitney CLO I RREF RREF RCC CRE Notes 2013 RCC 2014-CRE2 RCC 2015-CRE3 RCC 2015-CRE4 Moselle RCM Global, LLC Total ASSETS (3) Cash and cash equivalents $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 95 $ 95 Restricted cash (1) 82 125 16,693 116 22 — 1,296 18,952 — 1,775 — — 39,061 Investment securities — — 6,584 — 5,956 49,821 — — — — — 3,776 66,137 Loans, pledged as collateral — — 133,234 — 70,450 160,904 103,761 296,606 343,348 308,138 — — 1,416,441 Loans held for sale 153 — 1,322 — — — — — — — — — 1,475 Interest receivable — — 663 — 730 1,061 474 1,164 1,316 1,184 — — 6,592 Prepaid assets — — 18 — 79 61 19 21 21 19 — — 238 Principal paydown receivable — — — — 17,700 — — — — — — 100 17,800 Other assets — — — — — — — — — — — 833 833 Total assets (2) $ 235 $ 125 $ 158,514 $ 116 $ 94,937 $ 211,847 $ 105,550 $ 316,743 $ 344,685 $ 311,116 $ — $ 4,804 $ 1,548,672 LIABILITIES Borrowings $ — $ — $ 135,417 $ — $ 52,772 $ 91,752 $ 57,801 $ 195,603 $ 278,661 $ 220,575 $ — $ — $ 1,032,581 Accrued interest expense — — 211 — 19 63 73 130 247 180 — — 923 Derivatives, at fair value — — — — 83 3,263 — — — — — — 3,346 Unsettled loan purchases — — — — — — — — — — — — — Accounts payable and — — 11 — — — 3 21 — — (154 ) 2 (117 ) Total liabilities $ — $ — $ 135,639 $ — $ 52,874 $ 95,078 $ 57,877 $ 195,754 $ 278,908 $ 220,755 $ (154 ) $ 2 $ 1,036,733 (1) Includes $22.0 million designated to fund future commitments on specific commercial real estate loans in certain of the securitizations. (2) Assets of each of the consolidated VIEs may only be used to settle the obligations of each respective VIE. (3) In October 2013, the Company liquidated Apidos CLO VIII and all of the assets were sold. However, the Company still owns its share of beneficial interests that caused it to consolidate it. |
Variable Interest Entity, Maximum Exposure | The following table shows the classification, carrying value and maximum exposure to loss with respect to the Company’s unconsolidated VIEs as of December 31, 2015 (in thousands): Unconsolidated Variable Interest Entities LCC Unsecured Resource Investments in ZAIS and Harvest Total Maximum Investment in unconsolidated entities $ 42,017 $ 1,548 $ — $ 31,586 $ 75,151 $ 75,151 Intangible assets — — 5,316 — 5,316 $ 5,316 Total assets 42,017 1,548 5,316 31,586 80,467 Borrowings — 51,413 — — 51,413 N/A Total liabilities — 51,413 — — 51,413 N/A Net asset (liability) $ 42,017 $ (49,865 ) $ 5,316 $ 31,586 $ 29,054 N/A |
SUPPLEMENTAL CASH FLOW INFORM42
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Other Significant Noncash Transactions | Supplemental disclosure of cash flow information (in thousands): Years Ended December 31, 2015 2014 2013 Non-cash operating activities include the following: Reclassification of linked transactions, net at fair value to investment securities available-for-sale, pledged as collateral, at fair value and borrowings (1) $ 15,367 $ — $ — Non-cash investing activities include the following: Reclassification of linked transactions, net at fair value to investment securities available-for-sale, pledged as collateral, at fair value (1) $ 48,764 $ — $ — Assumption of direct financing leases and other assets (2) $ — $ 2,385 $ — Non-cash financing activities include the following: Distributions on common stock accrued but not paid $ 13,274 $ 26,563 $ 25,536 Distribution on preferred stock accrued but not paid $ 4,077 $ 6,044 $ 2,159 Contribution of security deposits and other liabilities (2) $ — $ 457 $ — Reclassification of linked transactions, net at fair value to borrowings (1) $ 33,397 $ — $ — (1) As a result of an accounting standards update adopted on January 1, 2015 ( see Note 2 ), the Company unlinked its previously linked transactions, resulting in non-cash increases in both its investment securities available-for-sale, pledged as collateral, at fair value and related repurchase agreements borrowings balances. (2) On December 31, 2014, the Company assumed direct financing leases and related assets and liabilities in satisfaction of a loan receivable from a related party. |
RESTRICTED CASH (Tables)
RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of restricted cash | The following summarizes the Company's restricted cash (in thousands): December 31, 2015 2014 Restricted cash: Cash held by consolidated securitizations $ 39,062 $ 121,247 Restricted cash pledged with minimum reserve balance requirements 218 209 Cash collateralizing outstanding margin calls on cash flow hedges 500 500 Cash collateralizing margin posted on forward/short positions 855 182 $ 40,635 $ 122,138 |
INVESTMENT SECURITIES, TRADING
INVESTMENT SECURITIES, TRADING (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment trading securities at fair value | The following table summarizes the Company's structured notes and RMBS that are classified as investment securities, trading and carried at fair value (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value As of December 31, 2015: Structured notes $ 28,576 $ 1,674 $ (4,700 ) $ 25,550 RMBS 1,896 — (1,896 ) — Total $ 30,472 $ 1,674 $ (6,596 ) $ 25,550 As of December 31, 2014: Structured notes $ 22,876 $ 1,098 $ (3,188 ) $ 20,786 RMBS 1,896 — (1,896 ) — Total $ 24,772 $ 1,098 $ (5,084 ) $ 20,786 |
INVESTMENT SECURITIES AVAILAB45
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Available-for-sale Securities [Abstract] | |
Available-for-sale Securities | The following table summarizes the Company's sales of investment securities available-for-sale during the period indicated (in thousands, except number of securities): Positions Positions Redeemed Par Amount Sold/Redeemed Realized Gain (Loss) For the Year Ended December 31, 2015: ABS 24 3 $ 69,901 $ 9,197 RMBS 6 — $ 28,305 $ 984 CMBS 1 — $ 3,000 $ (58 ) For the Year Ended December 31, 2014: ABS 8 1 $ 14,074 $ 2,948 Corporate bond — 2 $ 1,630 $ 48 CMBS 5 — $ 27,370 $ 573 The following table summarizes the Company's investment securities, including those pledged as collateral and classified as available-for-sale, which are carried at fair value (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value (1) As of December 31, 2015: CMBS $ 158,584 $ 2,631 $ (1,791 ) $ 159,424 RMBS 2,156 122 (88 ) 2,190 ABS 41,994 3,218 (998 ) 44,214 Corporate Bonds 2,422 — (162 ) 2,260 Total $ 205,156 $ 5,971 $ (3,039 ) $ 208,088 As of December 31, 2014: CMBS $ 168,669 $ 4,938 $ (3,202 ) $ 170,405 RMBS 29,814 937 — 30,751 ABS 55,617 16,876 (336 ) 72,157 Corporate Bonds 2,415 10 (18 ) 2,407 Total $ 256,515 $ 22,761 $ (3,556 ) $ 275,720 (1) As of December 31, 2015 and 2014 , $162.3 million and $ 197.8 million , respectively, of securities were pledged as collateral security under related financings. |
Estimated maturities of available-for-sale securities | The following table summarizes the estimated maturities of the Company’s CMBS, RMBS, ABS and corporate bonds according to their estimated weighted average life classifications (in thousands, except percentages): Weighted Average Life Fair Value Amortized Cost Weighted Average Coupon As of December 31, 2015: Less than one year $ 117,221 (1) $ 118,215 7.13% Greater than one year and less than five years 71,370 68,808 5.31% Greater than five years and less than ten years 12,382 11,271 10.45% Greater than ten years 7,115 6,862 16.85% Total $ 208,088 $ 205,156 7.03% As of December 31, 2014: Less than one year $ 78,095 (1) $ 79,649 4.13% Greater than one year and less than five years 115,302 100,909 4.64% Greater than five years and less than ten years 20,177 17,516 16.45% Greater than ten years 62,146 58,441 7.86% Total $ 275,720 $ 256,515 6.08% (1) The Company expects that the maturity date of these CMBS and ABS will either be extended or that they will be paid in full. |
Gross unrealized loss and fair value of securities | The following table shows the fair value, gross unrealized losses and number of securities aggregated by investment category and length of time, that individual investment securities available-for-sale have been in a continuous unrealized loss position during the periods specified (in thousands, except number of securities): Less than 12 Months More than 12 Months Total Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized Number of As of December 31, 2015: CMBS $ 79,570 $ (849 ) 31 $ 13,783 $ (942 ) 15 $ 93,353 $ (1,791 ) 46 RMBS 1,157 (88 ) 2 — — — 1,157 (88 ) 2 ABS 2,330 (824 ) 5 668 (174 ) 5 2,998 (998 ) 10 Corporate bonds 65 (18 ) 1 1,327 (144 ) 1 1,392 (162 ) 2 Total temporarily $ 83,122 $ (1,779 ) 39 $ 15,778 $ (1,260 ) 21 $ 98,900 $ (3,039 ) 60 As of December 31, 2014: CMBS $ 35,860 $ (555 ) 22 $ 25,583 $ (2,647 ) 13 $ 61,443 $ (3,202 ) 35 ABS 1,000 (278 ) 8 958 (58 ) 3 1,958 (336 ) 11 Corporate bonds 1,447 (18 ) 1 — — — 1,447 (18 ) 1 Total temporarily $ 38,307 $ (851 ) 31 $ 26,541 $ (2,705 ) 16 $ 64,848 $ (3,556 ) 47 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
LOANS HELD FOR INVESTMENT [Abstract] | |
Summary of loans held for Investments | The following is a summary of the Company’s loans (in thousands): Loan Description Principal Unamortized (Discount) Premium (1) Carrying Value (2) As of December 31, 2015: Commercial real estate loans: Whole loans $ 1,640,744 $ (9,943 ) $ 1,630,801 B notes 15,934 — 15,934 Mezzanine loans 45,368 4 45,372 Total commercial real estate loans 1,702,046 (9,939 ) 1,692,107 Bank loans 134,890 (373 ) 134,517 Middle market loans 380,687 (1,235 ) 379,452 Residential mortgage loans, held for investment 1,746 — 1,746 Subtotal loans before allowance 2,219,369 (11,547 ) 2,207,822 Allowance for loan loss (47,071 ) — (47,071 ) Total loans held for investment, net of allowance 2,172,298 (11,547 ) 2,160,751 Bank loans held for sale 1,475 — 1,475 Residential mortgage loans held for sale, at fair value (3) 94,471 — 94,471 Total loans held for sale 95,946 — 95,946 Total loans, net $ 2,268,244 $ (11,547 ) $ 2,256,697 As of December 31, 2014: Commercial real estate loans: Whole loans $ 1,271,121 $ (7,529 ) $ 1,263,592 B notes 16,120 (48 ) 16,072 Mezzanine loans 67,446 (80 ) 67,366 Total commercial real estate loans 1,354,687 (7,657 ) 1,347,030 Bank loans 332,058 (1,410 ) 330,648 Middle market loans 250,859 (746 ) 250,113 Residential mortgage loans, held for investment 2,802 — 2,802 Subtotal loans before allowance 1,940,406 (9,813 ) 1,930,593 Allowance for loan loss (4,613 ) — (4,613 ) Total loans held for investment, net of allowance 1,935,793 (9,813 ) 1,925,980 Bank loans held for sale 282 — 282 Residential mortgage loans held for sale, at fair value (3) 113,393 — 113,393 Total loans held for sale 113,675 — 113,675 Total loans, net $ 2,049,468 $ (9,813 ) $ 2,039,655 (1) Amounts include deferred amendment fees of $42,000 and $88,000 and deferred upfront fees of $12,000 and $82,000 being amortized over the life of the bank loans as of December 31, 2015 and 2014 , respectively. Amounts also include unamortized loan origination fees of $9.9 million and $7.6 million as of December 31, 2015 and 2014 , respectively. (2) Substantially all loans are pledged as collateral under various borrowings at December 31, 2015 and 2014 , respectively. (3) Amortized cost approximates fair value. |
Summary of the commercial real estate loans | The following is a summary of the Company’s commercial real estate loans held for investment (in thousands): Description Quantity Amortized Cost Contracted Interest Rates Maturity Dates (3) As of December 31, 2015: Whole loans, floating rate (1)(4)(5)(6)(7)(10) 87 $ 1,630,801 LIBOR plus 1.75% to February 2016 to February 2019 B notes, fixed rate (11) 1 15,934 8.68% April 2016 Mezzanine loans, fixed rate (9) 2 45,372 9.01% September 2016 Total (2) 90 $ 1,692,107 As of December 31, 2014: Whole loans, floating rate (1) (5) (6) 73 $ 1,263,592 LIBOR plus 1.75% to May 2015 to February 2019 B notes, fixed rate 1 16,072 8.68% April 2016 Mezzanine loans, floating rate 1 12,558 LIBOR plus 15.32% April 2016 Mezzanine loans, fixed rate (8) 3 54,808 0.50% to 18.71% January 2016 to Total (2) 78 $ 1,347,030 (1) Whole loans had $112.6 million and $105.1 million in unfunded loan commitments as of December 31, 2015 and 2014 , respectively. These unfunded commitments are advanced as the borrowers formally request additional funding as permitted under the loan agreement and any necessary approvals have been obtained. (2) Totals do not include an allowance for loan loss of $41.8 million and $4.0 million as of December 31, 2015 and 2014 , respectively. (3) Maturity dates do not include possible extension options that may be available to the borrowers, or maturity dates associated with loans that are fully reserved. (4) Includes two whole loans with a combined $51.2 million senior component that entered into modifications in 2015 that resulted in a fixed rate of 0.50% as of December 31, 2015 . The two loans were previously identified as TDR's. (5) Includes two whole loans with a combined $12.0 million mezzanine component that have fixed rates of 12.0% , and two whole loans with a combined $4.2 million mezzanine component that have fixed rates of 15.0% at December 31, 2015 and 2014 , respectively. (6) Includes a $799,000 junior mezzanine tranche of a whole loan that has a fixed rate of 10.0% as of December 31, 2015 and 2014 . (7) Contractual interest rate does not include a whole loan with an amortized cost of $32.5 million that entered into a modification in 2015 which reduced the floating rate spread to 1.00% as of December 31, 2015 . The loan was previously identified as a TDR. (8) Fixed rate mezzanine loans include a mezzanine loan that was modified into two tranches, which both currently pay interest at 0.50% . In addition, the subordinate tranche accrues interest at LIBOR plus 18.50% which is deferred until maturity. (9) Contractual interest rates and maturity dates do not include rates or maturity dates associated with one loan with an amortized cost of $38.1 million that was fully reserved as of June 30, 2015. (10) Floating rate whole loans includes a loan with an amortized cost of $13.0 million which extended to February 2017 from February 2016. (11) Fixed rate B notes includes a loan with an amortized cost of $15.9 million which paid off in January 2016. |
Summary of the weighted average life of the commercial real estate loans at amortized cost | The following is a summary of the contractual maturity of the Company’s commercial real estate loans, at amortized cost (in thousands): Description 2016 2017 2018 and Thereafter Total As of December 31, 2015: B notes $ 15,934 $ — $ — $ 15,934 Mezzanine loans 13,011 — 32,361 45,372 Whole loans 9,958 140,712 1,480,131 1,630,801 Total (1) $ 38,903 $ 140,712 $ 1,512,492 $ 1,692,107 As of December 31, 2014: 2015 2016 2017 and Thereafter Total B notes $ — $ 16,072 $ — $ 16,072 Mezzanine loans 5,711 16,736 44,919 67,366 Whole loans — 27,665 1,235,927 1,263,592 Total (1) $ 5,711 $ 60,473 $ 1,280,846 $ 1,347,030 (1) Contractual maturity of commercial real estate loans assumes full exercise of extension options available to borrowers. |
Summary lien position and status of our bank and middle market loans [Table Text Block] | The following table provides information as to the lien position and status of the Company's bank loans, at amortized cost (in thousands): Apidos I Apidos III Apidos Cinco Total As of December 31, 2015: Loans held for investment: First lien loans $ — $ — $ 131,281 $ 131,281 Second lien loans — — 1,692 1,692 Third lien loans — — — — Defaulted first lien loans — — 1,544 1,544 Defaulted second lien loans — — — — Total — — 134,517 134,517 First lien loans held for sale at fair value 153 — 1,322 1,475 Total $ 153 $ — $ 135,839 $ 135,992 As of December 31, 2014: Loans held for investment: First lien loans $ 153 $ 80,196 $ 245,377 $ 325,726 Second lien loans — — 3,572 3,572 Third lien loans — — — — Defaulted first lien loans — — — — Defaulted second lien loans — 971 379 1,350 Total 153 81,167 249,328 330,648 First lien loans held for sale at fair value — — 282 282 Total $ 153 $ 81,167 $ 249,610 $ 330,930 |
Summary of the weighted average life of bank loans at amortized cost | The following is a summary of the weighted average maturity of the Company’s bank loans loans, at amortized cost and loans held-for-sale, at the lower of the cost or market (in thousands): December 31, 2015 2014 One year or less $ 3,922 $ 7,829 Greater than one year and less than five years 128,480 274,332 Five years or greater 3,590 48,769 Total $ 135,992 $ 330,930 The following is a summary of the weighted average maturity of the Company’s middle market loans, at carrying value (in thousands): December 31, 2015 2014 One year or less $ 14,960 $ — Greater than one year and less than five years 250,709 132,353 Five years or greater 109,844 117,760 $ 375,513 $ 250,113 |
Schedule lien position and status of middle market loans, at amortized cost [Table Text Block] | The following table provides information as to the lien position and status of middle market loans, at carrying value (in thousands): December 31, 2015 2014 First Lien $ 248,367 $ 149,287 Second Lien 127,146 100,826 Total $ 375,513 $ 250,113 |
Allocation of allowance for loan loss | The following is a summary of the allocation of the allowance for loan loss with respect to the Company’s loans (in thousands, except percentages) by asset class: Description Allowance for Loan Loss Percentage of Total Allowance As of December 31, 2015: B notes $ 15 0.03% Mezzanine loans 38,079 80.90% Whole loans 3,745 7.96% Bank loans 1,282 2.72% Middle market loans 3,939 8.37% Residential mortgage loans 11 0.02% Total $ 47,071 As of December 31, 2014: B notes $ 55 1.19% Mezzanine loans 230 4.99% Whole loans 3,758 81.46% Bank loans 570 12.36% Total $ 4,613 |
INVESTMENTS IN UNCONSOLIDATED47
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The following table shows the Company's investments in unconsolidated entities as of 2015 and 2014 and equity in net earnings of unconsolidated subsidiaries for the years ended December 31, 2015 , 2014 and 2013 (in thousands): Equity in Earnings of Unconsolidated Subsidiaries Balance as of Years Ended December 31, Ownership % as of December 31, 2015 December 31, December 31, 2015 2014 2013 Varde Investment Partners, L.P —% $ — $ 654 $ (90 ) $ (20 ) $ 148 RRE VIP Borrower, LLC (1) —% — — 325 3,473 277 Investment in LCC Preferred Stock 29.0% 42,017 39,416 2,601 (1,555 ) (183 ) Investment in CVC Global Credit Opportunities Fund (2) —% — 18,209 8 2,032 1,177 Investment in (3) 70.9% — — — (75 ) (470 ) Pearlmark Mezz IV L.P. (6) 47.4% 6,465 — (460 ) — — Investment in School Lane House (1) —% — — 4 912 — Subtotal 48,482 58,279 2,388 4,767 949 Investment in RCT I and II (4) 3.0% 1,548 1,548 (2,421 ) (2,387 ) (2,401 ) Investment in Preferred Equity (1) (5) —% — — — 410 992 Total $ 50,030 $ 59,827 $ (33 ) $ 2,790 $ (460 ) (1) Investment in School Lane House, Investment in RRE VIP Borrower and the Investments in preferred equity were sold or repaid as of December 31, 2014. (2) In December 2015, the Company elected a full redemption of their remaining investment from the fund. (3) In January 2013, LTCC invested $2.0 million into LCF for the purpose of originating and acquiring life settlement contracts. In February 2014, the Company invested an additional $1.4 million which resulted in the consolidation of LCF during the first quarter of 2014. Ownership percentage represents ownership following additional investments and consolidation. (4) For the years ended December 31, 2015 , 2014 , and 2013 these amounts are recorded in interest expense on the Company's consolidated statements of operations. (5) For the years ended December 31, 2014 and 2013 these amounts are recorded in interest income on loans on the Company's consolidated statements of operations. |
FINANCING RECEIVABLES (Tables)
FINANCING RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Allowance for loan losses and recorded investments in loans | The following tables show the allowance for loan and lease losses for the years indicated (in thousands): Commercial Real Estate Loans Bank Loans Middle Market Loans Residential Mortgage Loans Direct Financing Leases Loans Receivable - Related Party Total As of December 31, 2015: Allowance for Loan and Lease Losses: Allowance for losses at January 1, 2015 $ 4,043 $ 570 $ — $ — $ — $ — $ 4,613 Provision (recovery) for loan and lease losses 37,735 2,887 8,901 (99 ) 465 — 49,889 Loans charged-off — (2,175 ) (4,962 ) 110 — — (7,027 ) Recoveries 61 — — — — — 61 Allowance for losses at December 31, 2015 $ 41,839 $ 1,282 $ 3,939 $ 11 $ 465 $ — $ 47,536 Ending balance: Individually evaluated for impairment $ 40,274 $ 1,282 $ — $ — $ 465 $ — $ 42,021 Collectively evaluated for impairment $ 1,565 $ — $ 3,939 $ 11 $ — $ — $ 5,515 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — $ — Loans and Leases: Ending balance: Individually evaluated for impairment $ 169,707 $ 1,544 $ — $ — $ 1,396 $ — $ 172,647 Collectively evaluated for impairment $ 1,522,400 $ 132,973 $ 379,452 $ 1,746 $ — $ — $ 2,036,571 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — $ — As of December 31, 2014: Allowance for Loan and Lease Losses: Allowance for losses at January 1, 2013 $ 10,416 $ 3,391 $ — $ — $ — $ — $ 13,807 Provision (recovery)for loan and lease losses (3,758 ) 4,173 92 — — 1,297 $ 1,804 Loans charged-off (2,615 ) (6,994 ) (92 ) — — (1,297 ) $ (10,998 ) Allowance for losses at December 31, 2014 $ 4,043 $ 570 $ — $ — $ — $ — $ 4,613 Ending balance: Individually evaluated for impairment $ — $ 570 $ — $ — $ — $ — $ 570 Collectively evaluated for impairment $ 4,043 $ — $ — $ — $ — $ — $ 4,043 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — $ — Loans and Leases: Ending balance: Individually evaluated for impairment $ 166,180 $ 1,350 $ 250,113 $ — $ — $ 1,277 $ 418,920 Collectively evaluated for impairment $ 1,180,850 $ 329,580 $ — $ 2,802 $ — $ — $ 1,513,232 Loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — $ — |
Credit quality indicators for Bank loans, Middle market and Commercial real estate loans | Credit risk profiles of middle market loans were as follows (in thousands): Rating 1 Rating 2 Rating 3 Rating 4 Rating 5 Held for Sale Total As of December 31, 2015: Middle market loans $ 44,252 $ 305,578 $ 29,622 $ — $ — $ — $ 379,452 As of December 31, 2014: Middle market loans $ — $ 240,245 $ 9,868 $ — $ — $ — $ 250,113 Credit risk profiles of commercial real estate loans were as follows (in thousands): Rating 1 Rating 2 Rating 3 Rating 4 Held for Sale Total As of December 31, 2015: Whole loans $ 1,596,099 $ 32,500 $ — $ 2,202 $ — $ 1,630,801 B notes 15,934 — — — — 15,934 Mezzanine loans 7,300 — — 38,072 — 45,372 $ 1,619,333 $ 32,500 $ — $ 40,274 $ — $ 1,692,107 As of December 31, 2014: Whole loans $ 1,231,092 $ 32,500 $ — $ — $ — $ 1,263,592 B notes 16,072 — — — — 16,072 Mezzanine loans 45,432 21,934 — — — 67,366 $ 1,292,596 $ 54,434 $ — $ — $ — $ 1,347,030 Credit risk profiles of bank loans were as follows (in thousands): Rating 1 Rating 2 Rating 3 Rating 4 Rating 5 Held for Sale Total As of December 31, 2015: Bank loans $ 113,897 $ 17,578 $ 1,498 $ — $ 1,544 $ 1,475 $ 135,992 As of December 31, 2014: Bank loans $ 291,214 $ 32,660 $ 5,424 $ — $ 1,350 $ 282 $ 330,930 |
Loan portfolios aging analysis | The following table shows the loan and lease portfolio aging analysis as of the dates indicated at amortized cost (in thousands): 30-59 Days 60-89 Days Greater than 90 Days Total Past Due Current (2) Total Loan and Lease Receivable Total > 90 Days and Accruing As of December 31, 2015: Whole loans $ — $ — $ — $ — $ 1,630,801 $ 1,630,801 $ — B notes — — — — 15,934 15,934 — Mezzanine loans — 38,072 — 38,072 7,300 45,372 — Bank loans 1,544 — — 1,544 132,973 134,517 — Middle market loans — — — — 379,452 379,452 — Direct financing leases 12 214 — 226 1,170 1,396 — Residential mortgage loans (1) 27 41 80 148 96,069 96,217 — Total loans $ 1,583 $ 38,327 $ 80 $ 39,990 $ 2,263,699 $ 2,303,689 $ — As of December 31, 2014: Whole loans $ — $ — $ — $ — $ 1,263,592 $ 1,263,592 $ — B notes — — — — 16,072 16,072 — Mezzanine loans — — — — 67,366 67,366 — Bank loans — — 1,350 1,350 329,580 330,930 — Middle market loans — — — — 250,113 250,113 — Residential mortgage loans (1) 443 82 119 644 113,612 114,256 — Loans receivable- related party — — — — 1,277 1,277 — Total loans $ 443 $ 82 $ 1,469 $ 1,994 $ 2,041,612 $ 2,043,606 $ — (1) Contains $94.5 million and $113.4 million of residential mortgage loans held for sale at December 31, 2015 and 2014 , respectively. (2) Current loans include one impaired whole loan with an amortized cost of $2.2 million , that was fully reserved as of December 31, 2015 . |
Impaired loans | The following tables show impaired loans as of the dates indicated (in thousands): Recorded Balance Unpaid Principal Balance Specific Allowance Average Investment in Impaired Loans Interest Income Recognized As of December 31, 2015: Loans without a specific valuation allowance: Whole loans $ 129,433 $ 129,433 $ — $ 128,591 $ 3,939 B notes $ — $ — $ — $ — $ — Mezzanine loans $ — $ — $ — $ — $ — Bank loans $ — $ — $ — $ — $ — Middle market loans $ — $ — $ — $ — $ — Residential mortgage loans $ — $ — $ — $ — $ — Loans receivable - related party $ — $ — $ — $ — $ — Loans with a specific valuation allowance: Whole loans $ 2,202 $ 2,202 $ (2,202 ) $ 2,202 $ 63 B notes $ — $ — $ — $ — $ — Mezzanine loans $ 38,072 $ 38,072 $ (38,072 ) $ 38,072 $ (2,879 ) Bank loans $ 1,544 $ 1,551 $ (1,282 ) $ 1,544 $ — Middle market loans $ — $ — $ — $ — $ — Residential mortgage loans $ — $ — $ — $ — $ — Loans receivable - related party $ — $ — $ — $ — $ — Total: Whole loans $ 131,635 $ 131,635 $ (2,202 ) $ 130,793 $ 4,002 B notes — — — — — Mezzanine loans 38,072 38,072 (38,072 ) 38,072 (2,879 ) Bank loans 1,544 1,551 (1,282 ) 1,544 — Middle market loans — — — — — Residential mortgage loans — — — — — Loans receivable - related party — — — — — $ 171,251 $ 171,258 $ (41,556 ) $ 170,409 $ 1,123 As of December 31, 2014: Loans without a specific valuation allowance: Whole loans $ 128,108 $ 128,108 $ — $ 130,445 $ 4,620 B notes $ — $ — $ — $ — $ — Mezzanine loans $ 38,072 $ 38,072 $ — $ 38,072 $ 1,269 Bank loans $ — $ — $ — $ — $ — Middle market loans $ — $ — $ — $ — $ — Residential mortgage loans $ 2,082 $ 2,082 $ — $ 2,082 $ 148 Loans receivable - related party $ — $ — $ — $ — $ — Loans with a specific valuation allowance: Whole loans $ — $ — $ — $ — $ — B notes $ — $ — $ — $ — $ — Mezzanine loans $ — $ — $ — $ — $ — Bank loans $ 1,350 $ 1,350 $ (570 ) $ — $ — Middle market loans $ — $ — $ — $ — $ — Residential mortgage loans $ — $ — $ — $ — $ — Loans receivable - related party $ — $ — $ — $ — $ — Total: Whole loans $ 128,108 $ 128,108 $ — $ 130,445 $ 4,620 B notes — — — — — Mezzanine loans 38,072 38,072 — 38,072 1,269 Bank loans 1,350 1,350 (570 ) — — Middle market loans — — — — — Residential mortgage loans 2,082 2,082 — 2,082 148 Loans receivable - related party — — — — — $ 169,612 $ 169,612 $ (570 ) $ 170,599 $ 6,037 |
Troubled debt restructurings on financing receivables | The following tables show troubled-debt restructurings in the Company's loan portfolio (in thousands): Number of Loans Pre-Modification Outstanding Recorded Balance Post-Modification Outstanding Recorded Balance Year Ended December 31, 2015: Whole loans 3 $ 99,959 $ 99,959 B notes — — — Mezzanine loans 1 38,072 — Bank loans — — — Middle market loans — — — Residential mortgage loans — — — Loans receivable - related party — — — Total loans 4 $ 138,031 $ 99,959 Year Ended December 31, 2014: Whole loans 3 $ 99,739 $ 99,739 B notes — — — Mezzanine loans 1 38,072 38,072 Bank loans — — — Middle market loans — — — Loans receivable - related party — — — Total loans 4 $ 137,811 $ 137,811 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of intangible assets | The following table summarizes the activity of intangible assets for the year ended December 31, 2015 (in thousands): Management Contracts Wholesale/Correspondent Relationships Mortgage Servicing Rights Total Balance, January 1, 2015 $ 9,434 $ 302 $ 8,874 $ 18,610 Additions — — 16,552 16,552 Sales — — — — Amortization (4,118 ) (212 ) (4,504 ) (8,834 ) Total before impairment adjustment 5,316 90 20,922 26,328 Temporary impairment adjustment — — (100 ) (100 ) Balance, December 31, 2015 $ 5,316 $ 90 $ 20,822 $ 26,228 |
Schedule Loan Servicing Portfolio | The activity in the loan servicing portfolio associated with capitalized servicing rights consisted of (in thousands): December 31, 2015 December 31, 2014 Balance, beginning of period $ 894,767 $ 433,153 Additions 1,236,145 519,915 Payoffs, sales and curtailments (132,639 ) (58,301 ) Balance, end of period $ 1,998,273 $ 894,767 |
Servicing Fees | These cash flows include contractually specified servicing fees, late fees and other ancillary servicing revenue and were recorded within fee income as follows (in thousands): Years Ended December 31, 2015 2014 2013 Servicing fees from capitalized portfolio $ 3,773 $ 1,649 $ 178 Late Fees $ 106 $ 81 $ 7 Other ancillary servicing revenue $ 11 $ 6 $ 1 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Instrument [Line Items] | |
Information with Respect to Borrowings | Certain information with respect to the Company’s borrowings is summarized in the following table (in thousands, except percentages): Principal Outstanding Unamortized Outstanding Borrowings Weighted Average Weighted Average Value of As of December 31, 2015: RREF CDO 2006-1 Senior Notes $ 52,772 $ — $ 52,772 2.60% 30.6 years $ 94,379 RREF CDO 2007-1 Senior Notes 91,752 — 91,752 1.65% 30.8 years 210,904 RCC CRE Notes 2013 Senior Notes 58,465 664 57,801 3.21% 13.0 years 104,439 RCC 2014-CRE2 Senior Notes 198,594 2,991 195,603 1.68% 16.3 years 313,663 RCC 2015-CRE3 Senior Notes 282,127 3,466 278,661 2.25% 16.2 years 341,099 RCC 2015-CRE4 Senior Notes 223,735 3,160 220,575 2.06% 16.6 years 308,042 Apidos Cinco CDO Senior Notes 135,417 — 135,417 1.25% 4.4 years 154,584 Unsecured Junior Subordinated Debentures (1) 51,548 135 51,413 4.40% 20.8 years — 6.0% Convertible Senior Notes 115,000 4,917 110,083 6.00% 2.9 years — 8.0% Convertible Senior Notes 100,000 4,599 95,401 8.00% 4.0 years — CRE - Term Repurchase Facilities (2) 225,346 2,418 222,928 2.64% 17 days 321,267 CMBS - Term Repurchase Facility (3) 25,658 2 25,656 1.57% 18 days 31,650 Trust Certificates - Term Repurchase Facility (4) 26,659 415 26,244 5.85% 2.9 years 89,181 Residential Investments - Term Repurchase Facility (5) 782 — 782 2.75% 264 days 835 Residential Mortgage Financing Agreements 85,819 — 85,819 3.10% 257 days 120,952 CMBS - Short Term Repurchase Agreements (6) 57,407 — 57,407 2.06% 18 days 79,347 Senior Secured Revolving Credit Agreement 190,000 3,026 186,974 3.09% 3.2 years 376,306 Total $ 1,921,081 $ 25,793 $ 1,895,288 2.89% 10.4 years $ 2,546,648 Principal Outstanding Unamortized Outstanding Borrowings Weighted Average Weighted Average Value of As of December 31, 2014: RREF CDO 2006-1 Senior Notes $ 61,423 $ — $ 61,423 2.12% 31.6 years $ 139,242 RREF CDO 2007-1 Senior Notes 130,340 133 130,207 1.19% 31.8 years 271,423 RCC CRE Notes 2013 Senior Notes 226,840 2,683 224,157 2.11% 14.0 years 249,983 RCC 2014-CRE2 Senior Notes 235,344 3,687 231,657 1.45% 17.3 years 346,585 Apidos CDO III Senior Notes 74,646 — 74,646 1.18% 5.7 years 85,553 Apidos Cinco CDO Senior Notes 255,664 201 255,463 0.81% 5.4 years 272,512 Moselle CLO S.A. Senior Notes, at fair value (7) 63,321 — 63,321 1.49% 5.0 years 93,576 Moselle CLO S.A. Securitized Borrowings, at fair value (8) 5,619 — 5,619 1.49% 5.0 years — Unsecured Junior Subordinated Debentures (1) 51,548 343 51,205 4.19% 21.8 years — 6.0% Convertible Senior Notes 115,000 6,626 108,374 6.00% 3.9 years — CRE - Term Repurchase Facilities (2) 207,640 1,958 205,682 2.43% 20 days 297,571 CMBS - Term Repurchase Facility (3) 24,967 — 24,967 1.35% 20 days 30,180 Residential Investments - Term Repurchase Facility (5) 22,248 36 22,212 1.16% 1 day 27,885 Residential Mortgage Financing Agreements 102,576 — 102,576 2.78% 207 days 147,472 CMBS - Short Term Repurchase Agreements (6) 44,225 — 44,225 1.63% 17 days 62,446 Senior Secured Revolving Credit Agreement 113,500 2,363 111,137 2.66% 3.7 years 262,687 Total $ 1,734,901 $ 18,030 $ 1,716,871 2.09% 10.0 years $ 2,287,115 (1) Amount represents junior subordinated debentures issued to RCT I and RCT II in May 2006 and September 2006, respectively. (2) Amounts also include accrued interest expense of $315,000 and $198,000 related to CRE repurchase facilities as of December 31, 2015 and 2014 , respectively. (3) Amounts also include accrued interest expense of $18,000 and $12,000 related to CMBS repurchase facilities as of December 31, 2015 and 2014 , respectively. Amounts do not reflect CMBS repurchase agreement borrowings that are components of linked transactions as of December 31, 2014 . (4) Amount also includes accrued interest expense of $61,000 related to trust certificate repurchase facilities as of December 31, 2015 . (5) Amounts also include accrued interest expense of $30,000 and $20,000 related to residential investment repurchase facilities as of December 31, 2015 and 2014 , respectively. (6) Amounts also include accrued interest expense of $40,000 and $31,000 related to CMBS short term repurchase facilities as of December 31, 2015 and 2014 , respectively. (7) The fair value option was elected for the borrowings associated with Moselle CLO. As such, the outstanding borrowings and principal outstanding amounts are stated at fair value. The unpaid principal amounts of these borrowings were $63.3 million at December 31, 2014 . (8) The securitized borrowings were collateralized by the same assets as the Moselle CLO Senior Notes. |
Schedule of Securitizations | The following table sets forth certain information with respect to the Company's securitizations: Securitization Closing Date Maturity Date Reinvestment Period End Total Note Paydowns as of December 31, 2015 (in millions) RREF CDO 2006-1 Senior Notes August 2006 August 2046 September 2011 $ 180.5 RREF CDO 2007-1 Senior Notes June 2007 September 2046 June 2012 $ 252.0 RCC CRE Notes 2013 Senior Notes December 2013 December 2028 N/A $ 202.4 RCC 2014-CRE2 Senior Notes July 2014 April 2032 N/A $ 36.8 RCC 2015-CRE3 Senior Notes February 2015 March 2032 N/A $ — RCC 2015-CRE4 Senior Notes August 2015 August 2032 N/A $ — Apidos Cinco CDO Senior Notes May 2007 May 2020 May 2014 $ 186.6 |
Repurchase and Credit Facilities | The following table sets forth certain information with respect to the Company's borrowings at December 31, 2015 and 2014 (dollars in thousands): As of December 31, 2015 As of December 31, 2014 Outstanding Value of Number of Weighted Average Outstanding Value of Number of Weighted Average CMBS Term Wells Fargo Bank (1) $ 25,656 $ 31,650 21 1.57% $ 24,967 $ 30,180 33 1.35% CRE Term Wells Fargo Bank (2) 123,937 179,169 9 2.39% 179,762 258,223 15 2.38% Deutsche Bank AG (3) — — — —% 25,920 39,348 2 2.78% Morgan Stanley Bank (4) 98,991 142,098 7 2.96% — — — —% Trust Certificates Term Repurchase Facility RSO Repo SPE Trust 2015 (5) 26,244 89,181 1 5.85% — — — —% Short-Term Repurchase Wells Fargo Securities, LLC 13,548 19,829 3 1.93% 10,442 17,695 1 1.66% Deutsche Bank Securities, LLC 43,859 59,518 17 2.10% 33,783 44,751 8 1.62% Residential Investments Term Wells Fargo Bank (6) 782 835 1 2.75% 22,212 27,885 6 1.16% Residential Mortgage New Century Bank 43,789 61,111 199 3.17% 41,387 51,961 158 2.82% Wells Fargo Bank 42,030 59,841 166 3.03% 61,189 95,511 104 2.75% Totals $ 418,836 $ 643,232 $ 399,662 $ 565,554 (1) The Wells Fargo Bank CMBS term repurchase facility includes $2,000 and $0 , of deferred debt issuance costs as of December 31, 2015 and 2014 , respectively. (2) The Wells Fargo Bank CRE term repurchase facility includes $675,000 and $1.7 million of deferred debt issuance costs as of December 31, 2015 and 2014 , respectively. (3) The Deutsche Bank CRE term repurchase facility includes $0 and $268,000 of deferred debt issuance costs as of December 31, 2015 and 2014 , respectively. (4) The Morgan Stanley Bank CRE term repurchase facility includes $1.7 million and $0 of deferred debt issuance costs as of December 31, 2015 and 2014 , respectively. (5) The RSO Repo SPE Trust 2015 term repurchase facility includes $415,000 and $0 of deferred debt issuance costs as of December 31, 2015 and 2014 , respectively. (6) The Wells Fargo Bank residential investments term repurchase facility includes $0 and $36,000 of deferred debt issuance costs as of December 31, 2015 and 2014 , respectively. |
Schedule of Linked Transactions | The assets in the following table were accounted for as linked transactions. These linked repurchase agreements are not included in borrowings on the Company's consolidated balance sheets at that date ( see Note 22 ). As of December 31, 2014 Borrowings (1) Value of Collateral Number Weighted Average CMBS Term Wells Fargo Bank $ 4,941 $ 6,371 7 1.67% Short-Term Repurchase Wells Fargo Securities, LLC 4,108 6,233 2 1.37% Deutsche Bank Securities, LLC 24,348 36,001 10 1.57% Totals $ 33,397 $ 48,605 |
Schedule of Amount at Risk under Credit Facility | The following table shows information about the amount at risk under the repurchase facilities (dollars in thousands): Amount at (1) Weighted Average Weighted Average As of December 31, 2015: CMBS Term Repurchase Facility Wells Fargo Bank, National Association $ 6,053 18 days 1.57% Residential Investments Term Repurchase Facility Wells Fargo Bank, National Association $ 54 264 days 2.75% CRE Term Repurchase Facilities Wells Fargo Bank, National Association $ 54,674 18 days 2.39% Morgan Stanley Bank, National Association $ 41,248 15 days 2.96% Trust Certificates Term Repurchase Facility RSO Repo SPE Trust 2015 $ 62,575 2.9 years 5.85% Short-Term Repurchase Agreements - CMBS Wells Fargo Securities, LLC $ 6,288 11 days 1.93% Deutsche Bank Securities, LLC $ 16,330 20 days 2.05% Residential Mortgage Financing Agreements New Century Bank $ 17,322 124 days 3.17% Wells Fargo Bank, National Association $ 17,811 134 days 3.03% As of December 31, 2014: CMBS Term Repurchase Facility Wells Fargo Bank, National Association $ 6,486 20 days 1.35% Residential Investments Term Repurchase Facility Wells Fargo Bank, National Association $ 5,017 1 day 1.16% CRE Term Repurchase Facilities Wells Fargo Bank, National Association $ 76,148 20 days 2.38% Deutsche Bank AG $ 13,017 19 days 2.78% Short-Term Repurchase Agreements - CMBS Wells Fargo Securities, LLC $ 2,127 9 days 1.66% Deutsche Bank Securities, LLC $ 11,810 20 days 1.62% Residential Mortgage Financing Agreements New Century Bank $ 853 242 days 2.82% Wells Fargo Bank, National Association $ 6,902 183 days 2.75% (1) Equal to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense. |
Contractual Obligation | Contractual maturity dates of the Company's borrowings by category and year are presented in the table below: Total 2016 2017 2018 2019 2020 and Thereafter CDOs $ 279,941 $ — $ — $ — $ — $ 279,941 CRE Securitizations 752,640 — — — — 752,640 Repurchase Agreements 418,836 392,592 — 26,244 — — Unsecured Junior Subordinated Debentures 51,413 — — — — 51,413 6.0 % Convertible Notes 110,083 — — 110,083 — — 8.0 % Convertible Notes 95,401 — — — — 95,401 Senior Secured Revolving Credit Facility 186,974 — — — 186,974 — Total $ 1,895,288 $ 392,592 $ — $ 136,327 $ 186,974 $ 1,179,395 |
STOCK INCENTIVE PLANS AND SHA51
STOCK INCENTIVE PLANS AND SHARE ISSUANCE AND REPURCHASE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes the Company's preferred stock: Year ended December 31, 2015 Total Outstanding Number of Shares Sold Weighted Average Offering Price Number of Shares Weighted Average Offering Price 8.50% Series A Preferred Stock — $ — 1,069,016 $ 24.05 8.25% Series B Preferred Stock 139,333 $ 22.34 5,740,479 $ 23.81 8.625% Series C Preferred Stock — $ — 4,800,000 $ 25.00 The following table summarizes the status of the Company’s vested stock options as of December 31, 2015 : Vested Options Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Vested as of January 1, 2015 160,167 $ 57.80 Vested — $ — Exercised — $ — Forfeited — $ — Expired (133,917 ) $ 60.00 Vested as of December 31, 2015 26,250 $ 46.60 3.20 $ — |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of restricted common stock transactions | The following table summarizes the Company's restricted common stock transactions: Non-Employee Directors Non-Employees Employees Total Unvested shares as of January 1, 2015 12,301 453,213 40,396 505,910 Issued 13,896 250,390 43,326 307,612 Vested (10,930 ) (81,281 ) (21,561 ) (113,772 ) Forfeited — (4,665 ) (3,716 ) (8,381 ) Unvested shares as of December 31, 2015 15,267 617,657 58,445 691,369 |
Schedule of restricted stock granted | The following table summarizes the restricted common stock grants during the year ended December 31, 2015 : Date Shares Vesting/Year Date(s) February 3, 2015 1,819 100% 2/3/16 February 5, 2015 241,524 33.3% 2/5/16, 2/5/17, 2/5/18 February 5, 2015 28,818 33.3% 2/5/16, 2/5/17, 2/5/18 March 9, 2015 8,047 100% 3/9/16 March 12, 2015 1,906 100% 3/12/16 March 31, 2015 8,841 100% 5/15/16 (1) June 8, 2015 2,124 100% 6/8/16 August 10, 2015 14,503 100% 3/31/16, 3/31/17, 3/31/18 September 1, 2015 (2) 30 various various (1) In connection with a grant of restricted common stock made on September 24, 2014 , the Company agreed to issue up to 17,682 additional shares of common stock if certain commercial real estate loan origination performance thresholds were achieved by personnel from the Company’s commercial real estate loan origination team. The performance criteria are measured at the end of two annual measurement periods which began April 1, 2014. The agreement also provided dividend equivalent rights pursuant to which the dividends that would have been paid on the shares had they been issued on the date of grant were paid at the end of each annual measurement period if the performance criteria were met. If the performance criteria are not met, the accrued dividends are forfeited. As a consequence, the Company did not record the dividend equivalent rights until earned. On March 31, 2015 , the first annual measurement period ended and 8,841 shares were earned. These shares will vest over the subsequent 12 months at a rate of one-fourth per quarter. In addition, approximately $21,000 of accrued dividend equivalent rights were earned and paid. As of December 31, 2015 , it was determined that the performance criteria for the final 8,841 shares were earned prior to the end of the measurement period, March 31, 2016 . As of December 31, 2015 , $42,000 of accrued dividend equivalent rights were accrued and will be paid in April 2016. These performance shares will vest over the subsequent 12 months at a rate of one-fourth per quarter. |
Summary of stock option transactions | The following table summarizes the Company's preferred stock: Year ended December 31, 2015 Total Outstanding Number of Shares Sold Weighted Average Offering Price Number of Shares Weighted Average Offering Price 8.50% Series A Preferred Stock — $ — 1,069,016 $ 24.05 8.25% Series B Preferred Stock 139,333 $ 22.34 5,740,479 $ 23.81 8.625% Series C Preferred Stock — $ — 4,800,000 $ 25.00 The following table summarizes the status of the Company’s vested stock options as of December 31, 2015 : Vested Options Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Vested as of January 1, 2015 160,167 $ 57.80 Vested — $ — Exercised — $ — Forfeited — $ — Expired (133,917 ) $ 60.00 Vested as of December 31, 2015 26,250 $ 46.60 3.20 $ — |
Summary of share based compensation expense | The components of equity compensation expense for the periods presented are as follows (in thousands): December 31, 2015 2014 2013 Options granted to Manager and non-employees $ — $ (2 ) $ 6 Restricted shares granted to non-employees 2,163 5,679 10,142 Restricted shares granted to employees 725 633 106 Restricted shares granted to non-employee directors 257 256 218 Total equity compensation expense $ 3,145 $ 6,566 $ 10,472 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Reconciliation of basic and diluted earnings per share | The following table presents a reconciliation of basic and diluted earnings per share for the periods presented as follows (in thousands, except share and per share amounts): Years Ended December 31, 2015 2014 2013 Basic: Net income (loss) allocable to common shares $ (13,882 ) $ 44,027 $ 39,232 Weighted average number of shares outstanding 32,280,319 32,007,766 29,619,668 Basic net income (loss) per share $ (0.43 ) $ 1.38 $ 1.32 Diluted: Net income (loss) allocable to common shares $ (13,882 ) $ 44,027 $ 39,232 Weighted average number of shares outstanding 32,280,319 32,007,766 29,619,668 Additional shares due to assumed conversion of dilutive instruments — 307,081 390,075 Adjusted weighted-average number of common shares outstanding 32,280,319 32,314,847 30,009,743 Diluted net income (loss) per share $ (0.43 ) $ 1.36 $ 1.31 |
ACCUMULATED OTHER COMPREHENSI54
ACCUMULATED OTHER COMPREHENSIVE (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | The following table, which is presented gross of tax, presents the changes in each component of accumulated other comprehensive income for the year ended December 31, 2015 (dollars in thousands): Net unrealized (loss) gain on derivatives Net unrealized (loss) gain on securities, Foreign currency translation Accumulated other comprehensive income (loss) January 1, 2015 $ (8,967 ) $ 15,422 $ (412 ) $ 6,043 Other comprehensive gain (loss) before reclassifications 5,221 (4,781 ) 349 789 Amounts reclassified from accumulated other 275 (13,435 ) — (13,160 ) Net current-period other comprehensive income 5,496 (18,216 ) 349 (12,371 ) Unrealized gains (losses) on available-for-sale securities allocable to non-controlling interests — 3,405 — 3,405 December 31, 2015 $ (3,471 ) $ 611 $ (63 ) $ (2,923 ) |
DISTRIBUTIONS (Tables)
DISTRIBUTIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
DISTRIBUTIONS [Abstract] | |
Dividends Declared | The following tables presents dividends declared (on a per share basis) for the years ended December 31, 2015 , 2014 and 2013 : Common Stock Date Paid Total Dividend (in thousands) 2015 March 31 April 28 $ 21,444 $ 0.64 June 30 July 28 $ 21,426 $ 0.64 September 30 October 28 $ 20,667 $ 0.64 December 31 January 28, 2016 $ 13,274 $ 0.42 2014 March 31 April 28 $ 25,921 $ 0.80 June 30 July 28 $ 26,179 $ 0.80 September 30 October 28 $ 26,629 $ 0.80 December 31 January 28, 2015 $ 26,563 $ 0.80 2013 March 31 April 26 $ 21,634 $ 0.80 June 30 July 26 $ 25,399 $ 0.80 September 30 October 28 $ 25,447 $ 0.80 December 31 January 28, 2014 $ 25,536 $ 0.80 Preferred Stock Series A Series B Series C Date Paid Total Dividend Date Paid Total Dividend Date Paid Total Dividend (in thousands) (in thousands) (in thousands) 2015 2015 March 31 April 30 $ 568 $ 0.531250 April 30 $ 2,960 $ 0.515625 April 30 $ 2,588 $ 0.539063 June 30 July 30 $ 568 $ 0.531250 July 30 $ 2,960 $ 0.515625 July 30 $ 2,588 $ 0.539063 September 30 October 30 $ 568 $ 0.531250 October 30 $ 2,960 $ 0.515625 October 30 $ 2,588 $ 0.539063 December 31 February 1, 2016 $ 568 $ 0.531250 February 1, 2016 $ 2,960 $ 0.515625 February 1, 2016 $ 2,588 $ 0.539063 2014 2014 March 31 April 30 $ 463 $ 0.531250 April 30 $ 2,057 $ 0.515625 April 30 $ — $ — June 30 July 30 $ 537 $ 0.531250 July 30 $ 2,378 $ 0.515625 July 30 $ 1,437 $ 0.299479 September 30 October 30 $ 537 $ 0.531250 October 30 $ 2,430 $ 0.515625 October 30 $ 2,588 $ 0.539063 December 31 January 30, 2015 $ 568 $ 0.531250 January 30, 2015 $ 2,888 $ 0.515625 January 30, 2015 $ 2,588 $ 0.539063 2013 2013 March 31 April 30 $ 359 $ 0.531250 April 30 $ 1,152 $ 0.515625 June 30 July 30 $ 359 $ 0.531250 July 30 $ 1,584 $ 0.515625 September 30 October 30 $ 362 $ 0.531250 October 30 $ 1,662 $ 0.515625 December 31 January 30, 2014 $ 362 $ 0.531250 January 30, 2014 $ 1,797 $ 0.515625 |
FAIR VALUE OF FINANCIAL INSTR56
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value assets and liabilities measured on recurring basis | The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as follows (in thousands): Level 1 Level 2 Level 3 Total As of December 31, 2015: Assets: Investment securities, trading $ — $ — $ 25,550 $ 25,550 Investment securities available-for-sale — 4,451 203,637 208,088 Loans held for sale — 66,588 29,358 95,946 Derivatives — 826 2,620 3,446 Total assets at fair value $ — $ 71,865 $ 261,165 $ 333,030 Liabilities: Derivatives $ — $ — $ 3,941 $ 3,941 Total liabilities at fair value $ — $ — $ 3,941 $ 3,941 As of December 31, 2014: Assets: Investment securities, trading $ — $ — $ 20,786 $ 20,786 Investment securities available-for-sale — 33,158 242,562 275,720 CMBS - linked transactions — — 15,367 15,367 Derivatives 3,429 7 1,868 5,304 Total assets at fair value $ 3,429 $ 33,165 $ 280,583 $ 317,177 Liabilities: Moselle CLO Notes $ — $ — $ 68,940 $ 68,940 Derivatives (net) — — 8,476 8,476 Total liabilities at fair value $ — $ — $ 77,416 $ 77,416 |
Fair value assets unobservable input reconciliation | The following table presents additional information about assets that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs (in thousands): CMBS (1) ABS Structured Finance Warrants Interest Rate Lock Commitments Loans Held for Sale Total Balance, January 1, 2015 $ 185,772 $ 72,157 $ 20,786 $ 898 $ 970 $ 83,380 $ 363,963 Included in earnings 2,107 2,051 2,403 153 30,028 (1,248 ) 35,494 Unlinked transaction 33,239 — — — — — 33,239 Purchases originations 12,374 24,811 25,185 — — 274,623 336,993 Sales (3,000 ) (27,800 ) (17,282 ) — — (321,231 ) (369,313 ) Paydowns (67,933 ) (9,048 ) (2,432 ) — — (6,320 ) (85,733 ) Issuances — — — — — — — Settlements — (11,216 ) — — (29,777 ) — (40,993 ) Capitalized Interest — 1,857 — — — — 1,857 Included in OCI (3,135 ) (12,471 ) (3,110 ) — — — (18,716 ) Transfers into Level 3 — 3,872 — — — 154 4,026 Balance, December 31, 2015 $ 159,424 $ 44,213 $ 25,550 $ 1,051 $ 1,221 $ 29,358 $ 260,817 (1) Beginning balance includes linked transactions. Due to a change in accounting guidance, as of January 1, 2015, the concept of linked transactions no longer exists. |
Fair value liabilities unobservable input reconciliation | The following table presents additional information about liabilities that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs (in thousands): Interest Rate Swaps Forwards - Residential Mortgage Loans Total Balance, January 1, 2015 $ 8,680 $ 1,029 $ 9,709 Included in earnings (275 ) 2,197 1,922 Settlements — (2,744 ) (2,744 ) Included in OCI (4,946 ) — (4,946 ) Transfers into Level 3 — — — Balance, December 31, 2015 $ 3,459 $ 482 $ 3,941 |
Fair value assets and liabilities measured on nonrecurring basis | The following table summarizes financial assets and liabilities measured at fair value on a nonrecurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as follows (in thousands): Level 1 Level 2 Level 3 Total As of December 31, 2015: Assets : Loans held for sale $ — $ 1,279 $ 153 $ 1,432 Impaired loans — 262 129,433 129,695 Total assets at fair value $ — $ 1,541 $ 129,586 $ 131,127 As of December 31, 2014: Assets : Loans held for sale $ — $ 36,956 $ — $ 36,956 Impaired loans — 1,678 137,811 139,489 Total assets at fair value $ — $ 38,634 $ 137,811 $ 176,445 |
Significant unobservable inputs used in fair value measurements | For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2015 , for which quantitative information with respect to unobservable inputs was available, the significant unobservable inputs used in the fair value measurements were as follows (in thousands, except were otherwise indicated): Fair Value at December 31, 2015 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Value Interest rate swap agreements $ 3,459 Discounted cash flow Weighted average credit spreads 5.38 % Warrant $ 1,051 Option pricing model Market capitalization (in millions) $ 172.7 Volatility 50.0 % |
Fair value financial instruments not reported at fair value | The fair values of the Company’s remaining financial instruments that are not reported at fair value on the consolidated balance sheets are reported below (in thousands): Fair Value Measurements Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) As of December 31, 2015: Loans held-for-investment $ 2,160,751 $ 2,150,061 $ — $ 222,100 $ 1,927,961 CDO notes $ 1,032,581 $ 923,817 $ — $ — $ 923,817 Junior subordinated notes $ 51,413 $ 17,907 $ — $ — $ 17,907 Convertible notes $ 205,484 $ 205,484 $ — $ — $ 205,484 Repurchase agreements $ 418,836 $ 418,836 $ — $ — $ 418,836 Senior secured revolving credit agreement $ 186,974 $ 186,974 $ — $ — $ 186,974 As of December 31, 2014: Loans held-for-investment $ 1,925,980 $ 1,909,019 $ — $ 570,071 $ 1,338,948 Loans receivable-related party $ 558 $ 558 $ — $ — $ 558 CDO notes $ 1,046,493 $ 975,762 $ — $ — $ 975,762 Junior subordinated notes $ 51,205 $ 17,699 $ — $ — $ 17,699 Convertible notes $ 108,374 $ 108,374 $ — $ — $ 108,374 Repurchase agreements $ 399,662 $ 399,662 $ — $ — $ 399,662 Senior secured revolving credit agreement $ 111,137 $ 111,137 $ — $ — $ 111,137 |
MARKET RISK AND DERIVATIVE IN57
MARKET RISK AND DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | |
Components of Unrealized Net Gains and Net Income from Linked Transactions | The following table presents certain information about the components of the unrealized gain (loss) and net interest income from linked transactions, net, included in the Company's consolidated statements of operations for the years ended 2015 , 2014 and 2013 (in thousands): December 31, 2015 2014 2013 Components of Unrealized Net (Losses) Gains and Net Interest Income Income from Linked Transactions Interest income attributable to CMBS underlying linked transactions $ — $ 2,879 $ 2,912 Interest expense attributable to linked repurchase — (644 ) (735 ) Change in fair value of linked transactions included in earnings — 5,615 (6,018 ) Unrealized net (losses) gains and net interest income from linked transactions $ — $ 7,850 $ (3,841 ) |
Available-for-sale Securities | The following table summarizes the Company's sales of investment securities available-for-sale during the period indicated (in thousands, except number of securities): Positions Positions Redeemed Par Amount Sold/Redeemed Realized Gain (Loss) For the Year Ended December 31, 2015: ABS 24 3 $ 69,901 $ 9,197 RMBS 6 — $ 28,305 $ 984 CMBS 1 — $ 3,000 $ (58 ) For the Year Ended December 31, 2014: ABS 8 1 $ 14,074 $ 2,948 Corporate bond — 2 $ 1,630 $ 48 CMBS 5 — $ 27,370 $ 573 The following table summarizes the Company's investment securities, including those pledged as collateral and classified as available-for-sale, which are carried at fair value (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value (1) As of December 31, 2015: CMBS $ 158,584 $ 2,631 $ (1,791 ) $ 159,424 RMBS 2,156 122 (88 ) 2,190 ABS 41,994 3,218 (998 ) 44,214 Corporate Bonds 2,422 — (162 ) 2,260 Total $ 205,156 $ 5,971 $ (3,039 ) $ 208,088 As of December 31, 2014: CMBS $ 168,669 $ 4,938 $ (3,202 ) $ 170,405 RMBS 29,814 937 — 30,751 ABS 55,617 16,876 (336 ) 72,157 Corporate Bonds 2,415 10 (18 ) 2,407 Total $ 256,515 $ 22,761 $ (3,556 ) $ 275,720 (1) As of December 31, 2015 and 2014 , $162.3 million and $ 197.8 million , respectively, of securities were pledged as collateral security under related financings. |
Interest Rate Swap [Member] | |
Derivatives, Fair Value [Line Items] | |
Fair Value of Derivative Instruments | The following tables present the fair value of the Company’s derivative financial instruments as well as their classification on the Company's consolidated balance sheets and on the consolidated statements of operations for the years presented: Fair Value of Derivative Instruments as of December 31, 2015 (in thousands) Asset Derivatives Notional Amount Balance Sheet Location Fair Value Interest rate lock agreements (1) $ 105,385 Derivatives, at fair value $ 1,224 Forward contracts - residential mortgage lending $ 92,413 Derivatives, at fair value $ 345 Forward contracts - foreign currency, hedging (2)(3) $ 24,850 Derivatives, at fair value $ 727 Forward contracts - TBA securities $ 29,500 Derivatives, at fair value $ 99 Warrants (4) $ 553 Derivatives, at fair value $ 1,051 Liability Derivatives Notional Amount Balance Sheet Location Fair Value Interest rate swap contracts, hedging (5) $ 102,799 Derivatives, at fair value $ 3,459 Interest rate lock agreements (6) $ 505 Derivatives, at fair value $ 3 Forward contracts - residential mortgage lending $ 143,553 Derivatives, at fair value $ 479 Forward contracts - TBA securities $ 1,500 Derivatives, at fair value $ — Interest rate swap contracts, hedging $ 102,799 Accumulated other comprehensive income (loss) $ (3,471 ) (1) The notional amount of the Company’s interest rate lock agreements in an asset position is the pass-through weighted total commitments with a weighted average pass-through percentage of 85.9% . (2) The notional amount is presented on a currency converted basis. The notional amount of our foreign currency hedging forward contracts was €22.9 million as of December 31, 2015 . (3) Foreign currency forward contracts are accounted for as fair value hedges. (4) The notional amount of the Company's warrants is the calculated number of shares available for purchase. (5) Interest rate swaps contracts are accounted for as fair value hedges. (6) The notional amount of the Company’s interest rate lock agreements in a liability position is the pass-through weighted total commitments with a weighted average pass-through percentage of 19.5% . Fair Value of Derivative Instruments as of December 31, 2014 (in thousands) Asset Derivatives Notional Amount Balance Sheet Location Fair Value Interest rate lock agreements (1) $ 59,467 Derivatives, at fair value $ 970 Forward contracts - residential mortgage lending $ 5,000 Derivatives, at fair value $ 7 Forward contracts - RMBS securities $ 42,614 Derivatives, at fair value $ 1,297 Forward contracts - foreign currency, hedging (2)(3) $ 54,948 Derivatives, at fair value $ 3,377 Options - U.S. Treasury futures $ 90 Derivatives, at fair value $ 52 Warrants (4) $ 492 Derivatives, at fair value $ 898 Liability Derivatives Notional Amount Balance Sheet Location Fair Value Interest rate swap contracts, hedging (5) $ 124,017 Derivatives, at fair value $ 8,680 Interest rate lock agreements (6) $ 798 Derivatives, at fair value $ 10 Forward contracts - residential mortgage lending $ 154,692 Derivatives, at fair value $ 1,036 Forward contracts - TBA securities $ 15,000 Derivatives, at fair value $ 47 Interest rate swap contracts, hedging $ 124,017 Accumulated other comprehensive income (loss) $ (8,680 ) |
The Effect of Derivative Instruments on the Statement of Income | The Effect of Derivative Instruments on the Statements of Operations for the Year Ended December 31, 2015 (in thousands) Derivatives Statement of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ 6,335 Interest rate swap contracts, hedging Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ (18 ) Interest rate lock agreements Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 261 Forward contracts - residential mortgage lending Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 895 Forward contracts - RMBS securities Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ (215 ) Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 2,925 Options - U.S. Treasury futures Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 184 Forward contracts - TBA securities Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 483 The Effect of Derivative Instruments on the Statements of Operations for the Year Ended December 31, 2014 (in thousands) Derivatives Statement of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ 6,555 Interest rate lock agreements Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 960 Forward contracts - residential mortgage lending Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ (1,029 ) Forward contracts - RMBS securities Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 1,297 Forward contracts - foreign currency, hedging Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 3,377 Options - U.S. Treasury futures Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ (28 ) Forward contracts - TBA securities Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ (47 ) Warrants Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives $ 898 The Effect of Derivative Instruments on the Statements of Operations for the Year Ended December 31, 2013 (in thousands) Derivatives Statement of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ 6,751 (1) Negative values indicate a decrease to the associated balance sheets or consolidated statements of operations line items. |
Linked Transactions [Member] | |
Derivatives, Fair Value [Line Items] | |
Available-for-sale Securities | The following table summarizes the estimated maturities of the Company’s CMBS previously linked transactions according to their estimated weighted average life classifications (in thousands, except percentages): Weighted Average Life Fair Value Amortized Cost Weighted Average Coupon As of December 31, 2014: Less than one year $ 7,834 $ 7,775 5.36% Greater than one year and less than five years 36,587 36,274 4.65% Greater than five years and less than ten years 4,184 4,089 4.52% Greater than ten years — — —% Total $ 48,605 $ 48,138 4.66% The following table summarizes the Company's investment securities, underlying linked transactions, which were carried at fair value (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value As of December 31, 2014: CMBS linked transactions $ 48,138 $ 539 $ (72 ) $ 48,605 |
Available-for-sale Securities in a Continuous Loss Position | The following table shows the fair value, gross unrealized losses and the length of time the investment securities available-for-sale have been in a continuous unrealized loss position during the period specified (in thousands): Less than 12 Months More than 12 Months Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses As of December 31, 2014: CMBS linked transactions $ 7,609 $ (57 ) $ 777 $ (15 ) $ 8,386 $ (72 ) |
CMBS Linked Repurchase Agreements | The following table summarizes the Company's CMBS previously linked repurchase agreements (in thousands, except percentages): As of December 31, 2014 Maturity or Repricing Balance (1) Weighted Average Interest Rate Within 30 days $ 33,397 1.56 % >30 days to 90 days — — % Total $ 33,397 1.56 % |
OFFSETTING OF FINANCIAL ASSET58
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Offsetting [Abstract] | |
Offsetting Financial Liabilities and Derivative Liabilities | The following table presents a summary of the Company's offsetting of derivative assets, presented (in thousands): (i) Recognized Assets (ii) Consolidated Balance Sheets (iii) = (i) - (ii) the Consolidated Balance Sheets (iv) Gross Amounts Not Offset in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged (v) = (iii) - (iv) Net Amount As of December 31, 2015: Derivative hedging instruments, $ 3,446 $ — $ 3,446 $ — $ — $ 3,446 Total $ 3,446 $ — $ 3,446 $ — $ — $ 3,446 As of December 31, 2014: Derivative hedging instruments, $ 4,334 $ — $ 4,334 $ — $ — $ 4,334 Linked transactions 48,764 33,397 15,367 — — 15,367 Total $ 53,098 $ 33,397 $ 19,701 $ — $ — $ 19,701 The following table presents a summary of the Company's offsetting of financial liabilities and derivative liabilities for the periods presented as follows (in thousands): (i) (ii) (iii) = (i) - (ii) (iv) (v) = (iii) - (iv) Financial (1) Cash (2) As of December 31, 2015: Derivative hedging instruments, (3) $ 3,941 $ — $ 3,941 $ — $ 500 $ 3,441 Repurchase agreements and term facilities (4) 418,836 — 418,836 418,836 — — Total $ 422,777 $ — $ 422,777 $ 418,836 $ 500 $ 3,441 As of December 31, 2014: Derivative hedging instruments, (3) $ 8,466 $ — $ 8,466 $ — $ 500 $ 7,966 Repurchase agreements and term facilities (4) 399,662 — 399,662 399,662 — — Linked transactions 33,397 33,397 — — — — Total $ 441,525 $ 33,397 $ 408,128 $ 399,662 $ 500 $ 7,966 (1) Amounts represent collateral pledged that is available to be offset against liability balances associated with term facilities, repurchase agreements and derivative transactions. (2) Amounts represent amounts pledged as collateral against derivative transactions. (3) The fair value of securities and/or cash and cash equivalents pledged against the Company's swaps was $500,000 and $2.6 million at December 31, 2015 and 2014 , respectively. (4) The combined fair value of securities and loans pledged against the Company's various term facilities and repurchase agreements was $643.2 million and $565.6 million at December 31, 2015 and 2014 , respectively. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of Income Taxes | The following table details the components of income taxes (in thousands): Years Ended December 31, 2015 2014 2013 Provision (benefit) for income taxes: Current: Federal $ 1,705 $ 6,819 $ 4,601 State 430 2,505 1,068 Total current 2,135 9,324 5,669 Deferred: Federal (1,007 ) (9,450 ) (5,116 ) State 617 (2,086 ) (1,594 ) Total deferred (390 ) (11,536 ) (6,710 ) Income tax provision (benefit) $ 1,745 $ (2,212 ) $ (1,041 ) |
Reconciliation Between Federal Statutory Income Tax Rate and Effective Income Tax Rate | A reconciliation of the income tax benefit (provision) based upon the statutory tax rate to the effective income tax rate is as follows (in thousands): Years Ended December 31, 2015 2014 2013 Statutory tax $ 361 $ (2,232 ) $ (588 ) State and local taxes, net of federal benefit 704 (375 ) (728 ) Permanent adjustments 149 41 2 True-up of prior period tax expense 530 353 253 Other items 1 1 20 $ 1,745 $ (2,212 ) $ (1,041 ) |
Components of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities are as follows (in thousands): December 31, 2015 2014 Deferred tax assets related to: Investment in securities $ 1,657 $ 1,030 Intangible assets basis difference — 2,533 Federal, state and local loss carryforwards 11,156 7,848 Bad debt for reserves 208 — Reserve on MSR valuation 222 — Deferred revenue — 207 Accrued expenses 895 56 Amortization of intangibles 3,182 766 Unrealized gains/losses 1,725 1,799 Mark to market adjustment — 188 Charitable contribution carryforwards 6 6 CLCO carryforwards 1,826 — Foreign exchange gain (loss) 156 — Equity compensation 34 167 Gain (loss) on sale of investments — 116 Partnership investment 1,965 (1,622 ) Total deferred tax assets 23,032 13,094 Valuation allowance — — Total deferred tax assets $ 23,032 $ 13,094 Deferred tax liabilities related to: Unrealized gain (loss) on investments $ (951 ) $ (366 ) Amortization of intangibles (6,319 ) — Gain (loss) on sale of investments (1,389 ) — Depreciation (80 ) (1 ) Accrued expenses — (3 ) Deferred revenue (2 ) — Partnership investment (1,645 ) (90 ) Total deferred tax liabilities $ (10,386 ) $ (460 ) Deferred tax assets, net $ 12,646 $ 12,634 |
QUARTERLY RESULTS (Tables)
QUARTERLY RESULTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations | The following is a presentation of the quarterly results of operations: March 31 June 30 September 30 December 31 (unaudited) (unaudited) (unaudited) (unaudited) (in thousands, except per share data) Year Ended December 31, 2015: Interest income $ 37,642 $ 36,541 $ 39,328 $ 44,566 Interest expense (1) 14,902 15,803 17,227 17,721 Net interest income $ 22,740 $ 20,738 $ 22,101 $ 26,845 Net income (loss) allocable to common shares $ 9,402 $ (31,011 ) $ 6,778 $ 949 Net income (loss) per share − basic $ 0.29 $ (0.94 ) $ 0.21 $ 0.03 Net income (loss) per share − diluted $ 0.28 $ (0.94 ) $ 0.21 $ 0.03 Year Ended December 31, 2014: Interest income $ 27,085 $ 30,592 $ 33,841 $ 35,389 Interest expense (1) 9,627 10,610 11,510 13,726 Net interest income $ 17,458 $ 19,982 $ 22,331 $ 21,663 Net income allocable to common shares $ 15,116 $ 14,677 $ 7,328 $ 6,906 Net income per share − basic $ 0.48 $ 0.46 $ 0.23 $ 0.21 Net income per share − diluted $ 0.48 $ 0.46 $ 0.22 $ 0.21 (1) Certain reclassifications have been made to the 2015 and 2014 consolidated financial statements. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information] | Commercial Real Estate Lending Commercial Finance Middle Market Lending Residential Mortgage Lending Corporate & Other (1)(2)(3) Total For the Year Ended December 31, 2015: Interest income: External customers $ 100,203 $ 17,452 $ 31,340 $ 4,823 $ — $ 153,818 Other 89 4,072 6 1 91 4,259 Total interest income 100,292 21,524 31,346 4,824 91 158,077 Interest expense 33,775 2,818 5,331 3,903 19,826 65,653 Net interest income 66,517 18,706 26,015 921 (19,735 ) 92,424 Amortization of MSRs — — — (4,504 ) — (4,504 ) Other income from external customers — 4,865 — 9,148 66 14,079 Total revenues 66,517 23,571 26,015 5,565 (19,669 ) 101,999 Less: Segment operating expenses 130 1,507 2,351 1,229 11,297 16,514 General and administrative 2,263 3,494 2,360 31,871 8,092 48,080 Depreciation and amortization — 4,118 2 611 127 4,858 Impairment losses — 372 — — — 372 Provision (recovery) for loan losses 37,736 3,352 8,900 (99 ) — 49,889 Equity in earnings of unconsolidated subsidiaries 277 (2,608 ) — — (57 ) (2,388 ) Gain on sale of mortgages — — — (17,251 ) — (17,251 ) Other (income) expense 216 (8,582 ) (240 ) (4,717 ) (3,680 ) (17,003 ) Income (loss) before taxes 25,895 21,918 12,642 (6,079 ) (35,448 ) 18,928 Income tax (expense) benefit 37 (2,029 ) — 3,739 (3,492 ) (1,745 ) Net income (loss) $ 25,932 $ 19,889 $ 12,642 $ (2,340 ) $ (38,940 ) $ 17,183 Commercial Real Estate Lending Commercial Finance Middle Market Lending Residential Mortgage Lending Corporate & Other (1)(2)(3) Total For the Year Ended December 31, 2014: Interest income: External customers $ 76,619 $ 29,228 $ 11,878 $ 2,397 $ — $ 120,122 Other 1 6,556 — — 228 6,785 Total interest income 76,620 35,784 11,878 2,397 228 126,907 Interest expense 23,958 8,182 806 1,347 11,180 45,473 Net interest income 52,662 27,602 11,072 1,050 (10,952 ) 81,434 Amortization of MSRs — — — (1,606 ) — (1,606 ) Other income from external customers 8,441 6,392 — 5,100 (315 ) 19,618 Total revenues 61,103 33,994 11,072 4,544 (11,267 ) 99,446 Less: Segment operating expenses 5,443 3,071 338 1,457 15,284 25,593 General and administrative 2,088 4,773 352 20,400 7,248 34,861 Depreciation and amortization 484 1,800 — 379 74 2,737 Impairment losses — — — — — — Provision (recovery) for loan losses (3,808 ) 5,519 42 — 51 1,804 Equity in earnings of unconsolidated subsidiaries (4,364 ) (478 ) — — 75 (4,767 ) Gain on sale of mortgages — — — (7,997 ) — (7,997 ) Other (income) expense (8,003 ) (9,277 ) (435 ) 1,023 3,951 (12,741 ) Income (loss) before taxes 69,263 28,586 10,775 (10,718 ) (37,950 ) 59,956 Income tax (expense) benefit 300 (399 ) — 2,932 (621 ) 2,212 Net income (loss) $ 69,563 $ 28,187 $ 10,775 $ (7,786 ) $ (38,571 ) $ 62,168 Commercial Real Estate Lending Commercial Finance Middle Market Lending Residential Mortgage Lending Corporate & Other (1)(2)(3) Total For the Year Ended December 31, 2013: Interest income: External customers $ 55,905 $ 57,119 $ 607 $ 133 $ — $ 113,764 Other 6 3,938 — — 268 4,212 Total interest income 55,911 61,057 607 133 268 117,976 Interest expense 17,053 39,994 — 81 3,882 61,010 Net interest income 38,858 21,063 607 52 (3,614 ) 56,966 Amortization of MSRs — — — (254 ) — (254 ) Other income from external customers 19,923 6,115 — 617 (384 ) 26,271 Total revenues 58,781 27,178 607 415 (3,998 ) 82,983 Less: Segment operating expenses 14,062 2,407 — — 22,285 38,754 General and administrative 926 6,244 — 2,552 4,785 14,507 Depreciation and amortization 1,906 1,871 — 59 19 3,855 Impairment losses 328 535 — — — 863 Provision (recovery) for loan losses 4,292 333 — — (1,605 ) 3,020 Equity in earnings of unconsolidated subsidiaries (425 ) (994 ) — — 470 (949 ) Gain on sale of mortgages — — — (2,188 ) — (2,188 ) Other (income) expense (13,240 ) (7,849 ) — 958 (160 ) (20,291 ) Income (loss) before taxes 50,932 24,631 607 (966 ) (29,792 ) 45,412 Income tax (expense) benefit (33 ) (2,419 ) — 475 3,018 1,041 Net income (loss) $ 50,899 $ 22,212 $ 607 $ (491 ) $ (26,774 ) $ 46,453 (1) Includes interest expense for the Convertible Senior Notes of $17.4 million , $8.8 million , and $1.5 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. (2) Includes interest expense for the Unsecured Junior Subordinated Debentures of $2.4 million , $2.4 million , and $2.4 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. (3) Includes general corporate expenses and inter-segment eliminations not allocable to any particular operating segment. The following table presents total investments in unconsolidated subsidiaries and total assets by segment for the periods indicated (in thousands): Commercial Real Estate Lending Commercial Finance Middle Market Lending Residential Mortgage Lending Corporate & Other (1) Total Investments in unconsolidated subsidiaries December 31, 2015 $ 6,465 $ 42,017 $ — $ — $ 1,548 $ 50,030 Total Assets December 31, 2015 $ 1,907,951 $ 298,028 $ 384,973 $ 149,351 $ 20,129 $ 2,760,432 Investments in unconsolidated subsidiaries December 31, 2014 $ 654 $ 57,625 $ — $ — $ 1,548 $ 59,827 Total Assets December 31, 2014 $ 1,576,433 $ 639,639 $ 278,691 $ 179,714 $ 54,202 $ 2,728,679 |
ORGANIZATION AND BASIS OF PRE62
ORGANIZATION AND BASIS OF PRESENTATION (Details) - Entity | Dec. 15, 2015 | Apr. 30, 2015 | Feb. 26, 2014 | Dec. 31, 2015 | Sep. 30, 2014 | Jul. 31, 2014 | Jul. 09, 2014 |
Resource Real Estate Funding CDO 2006-1 [Member] | RCC Real Estate [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 100.00% | ||||||
Northport LLC [Member] | RCC Commercial [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 29.60% | ||||||
Northport LLC [Member] | Resource TRS, LLC [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 25.80% | ||||||
Northport LLC [Member] | Resource TRS, Inc [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 44.60% | ||||||
Apidos CDO III Ltd. [Member] | RCC Commercial [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 100.00% | ||||||
Resource Real Estate Funding CDO 2007-1 [Member] | RCC Real Estate [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 100.00% | ||||||
RCC CRE Notes 2013 [Member] | RCC Real Estate [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 100.00% | ||||||
Apidos Cinco CDO Ltd [Member] | RCC Commercial II [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 100.00% | ||||||
Whitney CLO I, Ltd. [Member] | RCC Commercial II [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 68.30% | ||||||
Moselle CLO [Member] | RCC Commercial II [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 88.60% | ||||||
Apidos CDO I Ltd. [Member] | RCC Commercial III [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 90.00% | ||||||
Apidos CDO I Ltd. [Member] | RSO EquityCo, LLC [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 10.00% | ||||||
Resource Capital Asset Management [Member] | Resource TRS II [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 100.00% | ||||||
Number of CDO issuers | 3 | ||||||
CVC Credit Partners, LLC [Member] | Resource America [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 24.00% | ||||||
Apidos CLO VIII Ltd. [Member] | Resource TRS III [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 33.00% | ||||||
Apidos CLO VIII Ltd. [Member] | RSO EquityCo, LLC [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 10.00% | ||||||
Life Care Funding, LLC [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 70.90% | 60.70% | 50.20% | ||||
Life Care Funding, LLC [Member] | Long Term Care Conversion Funding [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 70.90% | ||||||
Long Term Care Conversion Funding [Member] | Long Term Care Conversion, Inc [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 100.00% | ||||||
Primary Capital Advisors LLC [Member] | RCC Residential, Inc. [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 100.00% | ||||||
RCM Global Manager, LLC [Member] | RCC Residential, Inc. [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 30.20% | ||||||
Resource Capital Corp. 2014-CRE2, Ltd. [Member] | RCC Real Estate [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 100.00% | ||||||
Resource Capital Corp. 2015-CRE3, Ltd. [Member] | RCC Real Estate [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 100.00% | ||||||
RCC Residential Acquisition, LLC [Member] | RCC Depositor, LLC [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 100.00% | ||||||
Resource Capital Corp. 2015-CRE4, Ltd. [Member] | RCC Real Estate [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage in VIE | 100.00% | ||||||
Pelium [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage (percent) | 80.20% | 80.40% | |||||
Pelium [Member] | Resource TRS, Inc [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage (percent) | 80.20% | ||||||
RCC Residential, Inc. [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership percentage (percent) | 63.80% | 63.80% |
SUMMARY OF SIGNIFICANT ACCOUN63
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Dec. 31, 2015USD ($)shares | Sep. 28, 2015 | Aug. 31, 2015 | Nov. 06, 2014 | Jul. 03, 2014 | Mar. 27, 2014 | Feb. 24, 2014 | Sep. 10, 2013 | Dec. 31, 2015USD ($)shares | Nov. 06, 2014 | Dec. 31, 2015USD ($)stateshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | ||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Impairment of intangible assets | $ 2,400,000 | |||||||||||||||||
Common stock, shares authorized (in shares) | shares | 125,000,000 | 125,000,000 | 125,000,000 | 125,000,000 | ||||||||||||||
Stock split conversion ratio (percentage) | 0.25 | |||||||||||||||||
Cash and cash equivalents | $ 78,756,000 | [1] | $ 78,756,000 | [1] | $ 78,756,000 | [1] | $ 79,905,000 | [1] | $ 262,270,000 | $ 85,278,000 | ||||||||
Number of states where the Company originates loans | state | 41 | |||||||||||||||||
Impairment charges | 0 | $ 0 | ||||||||||||||||
Preferred stock, shares authorized (in shares) | shares | 100,000,000 | 100,000,000 | 100,000,000 | |||||||||||||||
Prime Brokerage Account [Member] | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Cash and cash equivalents | $ 25,900,000 | $ 25,900,000 | $ 25,900,000 | 31,800,000 | ||||||||||||||
Money Market Account [Member] | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Cash and cash equivalents | 44,500,000 | 44,500,000 | 44,500,000 | 32,600,000 | ||||||||||||||
Checking Accounts [Member] | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Cash and cash equivalents | 8,400,000 | 8,400,000 | 8,400,000 | 15,400,000 | ||||||||||||||
Accounts at Investment Properties [Member] | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Cash and cash equivalents | $ 0 | $ 0 | $ 0 | $ 100,000 | ||||||||||||||
Harvest CLO VII Limited [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Ownership percentage in VIE | 9.50% | |||||||||||||||||
Moselle CLO S.A. [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Ownership percentage in VIE | 88.60% | |||||||||||||||||
Harvest CLO VIII Limited [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Ownership percentage in VIE | 12.60% | |||||||||||||||||
Harvest X Investor [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Ownership percentage in VIE | 55.00% | 55.00% | ||||||||||||||||
Harvest CLO X [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Ownership percentage in VIE | 32.10% | |||||||||||||||||
Harvest CLO XV [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Ownership percentage in VIE | 100.00% | 66.00% | ||||||||||||||||
[1] | December 31, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $95 $25 Restricted cash$39,061 $121,247 Investments securities available-for-sale, pledged as collateral, at fair value66,137 119,203 Loans held for sale1,475 282Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,416,441 1,261,137 Interest receivable6,592 8,941 Prepaid expenses238 221 Principal paydown receivable17,800 25,767 Other assets833 (12) Total assets of consolidated VIEs$1,548,672 $1,536,811 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) | Dec. 31, 2015USD ($)PositionEntity | Jun. 24, 2015USD ($) | Jul. 09, 2014USD ($) | Mar. 27, 2014 | Sep. 10, 2013 | Nov. 16, 2011USD ($)shares | Sep. 30, 2014USD ($) | Jul. 31, 2014USD ($) | Feb. 28, 2014USD ($) | Feb. 28, 2013Entity | Oct. 31, 2012 | Feb. 28, 2011USD ($)Entity | Dec. 31, 2015USD ($)PositionEntity | Dec. 31, 2015USD ($)creditPositionEntity | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)shares | Dec. 15, 2015USD ($) | Apr. 30, 2015USD ($) | Feb. 28, 2015USD ($) | May. 31, 2013 | |||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Number of credits supported in VIE | credit | 2 | ||||||||||||||||||||||||
Investments in unconsolidated subsidiaries | $ 50,030,000 | [1] | $ 50,030,000 | [1] | $ 50,030,000 | [1] | $ 59,827,000 | [1] | $ 1,250,000 | $ 750,000 | |||||||||||||||
Borrowings | [2] | 1,895,288,000 | 1,895,288,000 | 1,895,288,000 | 1,716,871,000 | ||||||||||||||||||||
Intangible assets | [1] | 26,228,000 | 26,228,000 | 26,228,000 | 18,610,000 | ||||||||||||||||||||
Fee income | 9,509,000 | 9,385,000 | $ 5,821,000 | ||||||||||||||||||||||
Impairment of intangible assets | 2,400,000 | ||||||||||||||||||||||||
Investment in unconsolidated entities | $ 50,030,000 | $ 50,030,000 | $ 50,030,000 | 59,827,000 | |||||||||||||||||||||
Resource America [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Payments to acquire additional interest | $ 2,800,000 | ||||||||||||||||||||||||
RCC Residential, Inc. [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Acquisition of membership interests | $ 15,000,000 | ||||||||||||||||||||||||
Payments to acquire businesses and interest in affiliates | $ 23,500,000 | ||||||||||||||||||||||||
Ownership percentage (percent) | 63.80% | 63.80% | |||||||||||||||||||||||
Pelium [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Acquisition of membership interests | $ 17,500,000 | ||||||||||||||||||||||||
Ownership percentage (percent) | 80.20% | 80.40% | 80.20% | 80.20% | |||||||||||||||||||||
Payments to acquire additional interest | $ 2,500,000 | ||||||||||||||||||||||||
Ownership interest | 10.00% | ||||||||||||||||||||||||
Ownership percentage, duration | 5 years | ||||||||||||||||||||||||
Ownership interest increase | 20.00% | ||||||||||||||||||||||||
Contributions | $ 40,000,000 | ||||||||||||||||||||||||
Interest in LCC [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Ownership percentage (percent) | 29.00% | 29.00% | 29.00% | ||||||||||||||||||||||
Investments in unconsolidated subsidiaries | $ 42,017,000 | $ 36,300,000 | $ 42,017,000 | $ 42,017,000 | 39,416,000 | ||||||||||||||||||||
Pearlmark Mezzanine Realty Partners IV, L.P. [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Acquisition of membership interests | $ 6,900,000 | ||||||||||||||||||||||||
Ownership percentage (percent) | 47.42% | 47.42% | 47.42% | ||||||||||||||||||||||
Investments in unconsolidated subsidiaries | $ 6,465,000 | $ 6,465,000 | $ 6,465,000 | 0 | |||||||||||||||||||||
Other commitment | $ 50,000,000 | ||||||||||||||||||||||||
Management fee, committed capital, percent fee | 1.00% | ||||||||||||||||||||||||
Management fee, invested capital, percent fee | 1.50% | ||||||||||||||||||||||||
rebate, percentage | 25.00% | ||||||||||||||||||||||||
Pearlmark Mezzanine Realty Partners IV, L.P. [Member] | Resource America [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Ownership percentage in VIE | 50.00% | ||||||||||||||||||||||||
Moselle CLO [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Ownership percentage in VIE | 88.60% | ||||||||||||||||||||||||
Moselle CLO S.A. Senior Notes [Member] | Class 1 Subordinated Notes [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Percentage of outstanding notes purchased | 100.00% | ||||||||||||||||||||||||
Moselle CLO S.A. Senior Notes [Member] | Class 2 Subordinated Notes [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Percentage of outstanding notes purchased | 67.90% | ||||||||||||||||||||||||
Investment in RCAM [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Number of CLOs held by purchased entity | Entity | 5 | ||||||||||||||||||||||||
Acquisition | $ 22,500,000 | ||||||||||||||||||||||||
Intangible assets | 5,300,000 | $ 5,300,000 | 5,300,000 | 9,400,000 | |||||||||||||||||||||
Fee income | 3,900,000 | 5,100,000 | 5,300,000 | ||||||||||||||||||||||
Impairment of intangible assets | $ 2,400,000 | $ 2,400,000 | |||||||||||||||||||||||
VIE, Primary Beneficiary [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Number of consolidated VIEs | Entity | 13 | 13 | 13 | ||||||||||||||||||||||
Financial support, amount | $ 0 | 219,000 | 166,000 | ||||||||||||||||||||||
VIE, Primary Beneficiary [Member] | Moselle CLO [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Acquisition of membership interests | $ 30,400,000 | ||||||||||||||||||||||||
VIE, Primary Beneficiary [Member] | Investment in RCAM [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Preferred equity interest acquired | 66.60% | ||||||||||||||||||||||||
VIE, Primary Beneficiary [Member] | Whitney CLO I, Ltd. [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Ownership interests in variable interest entity | 68.30% | ||||||||||||||||||||||||
RCM Global Manager, LLC [Member] | RCC Residential, Inc. [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Ownership percentage in VIE | 30.20% | ||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Investment in unconsolidated entities | $ 75,151,000 | $ 75,151,000 | $ 75,151,000 | ||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | ZAIS [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Investments in unconsolidated subsidiaries | 10,000,000 | 10,000,000 | 10,000,000 | ||||||||||||||||||||||
Investment maximum | $ 10,000,000 | ||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | Pelium [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Investments in unconsolidated subsidiaries | 3,000,000 | 3,000,000 | 3,000,000 | ||||||||||||||||||||||
Investment maximum | $ 3,000,000 | ||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | Harvest CLO VII Limited [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Ownership percentage in VIE | 9.50% | ||||||||||||||||||||||||
Investments in unconsolidated subsidiaries | 3,900,000 | 3,900,000 | 3,900,000 | ||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | Harvest CLO VIII Limited [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Ownership percentage in VIE | 12.60% | ||||||||||||||||||||||||
Investments in unconsolidated subsidiaries | 4,500,000 | 4,500,000 | 4,500,000 | ||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | Harvest XV [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Investment in unconsolidated entities | $ 10,600,000 | $ 10,600,000 | $ 10,600,000 | ||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | LEAF Commercial Capital, Inc. [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Ownership percentage in VIE | 26.70% | ||||||||||||||||||||||||
Investments in unconsolidated subsidiaries | $ 39,400,000 | ||||||||||||||||||||||||
Variable interest entity, number of board positions held by the company | Position | 2 | 2 | 2 | ||||||||||||||||||||||
Variable interest entity, total number of board positions | Position | 6 | 6 | 6 | ||||||||||||||||||||||
Investment in unconsolidated entities | $ 42,017,000 | $ 42,017,000 | $ 42,017,000 | ||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | LEAF Commercial Capital, Inc. [Member] | Preferred Shares - Series A [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Acquisition of membership interests | $ 3,700,000 | ||||||||||||||||||||||||
Shares received in equity method transaction (in shares) | shares | 31,341 | ||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | LEAF Commercial Capital, Inc. [Member] | Preferred Shares - Series B [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Shares received in equity method transaction (in shares) | shares | 4,872 | ||||||||||||||||||||||||
Preferred stock, coupon authorized (in hundredths) | 8.00% | ||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | LEAF Commercial Capital, Inc. [Member] | Series D Preferred Stock [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Shares received in equity method transaction (in shares) | shares | 2,364 | ||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | LEAF Commercial Capital, Inc. [Member] | Series A1 Preferred Stock [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Shares received in equity method transaction (in shares) | shares | 3,682 | ||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | LEAF Commercial Capital, Inc. [Member] | Series E Preferred Stock [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Acquisition of membership interests | $ 4,400,000 | ||||||||||||||||||||||||
Shares received in equity method transaction (in shares) | shares | 4,445 | ||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | LEAF Commercial Capital, Inc. [Member] | Interest in LCC [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Ownership percentage in VIE | 29.00% | ||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | Interest in RCT I and RCT II [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Ownership percentage in VIE | 100.00% | ||||||||||||||||||||||||
Investments in unconsolidated subsidiaries | $ 1,500,000 | $ 1,500,000 | $ 1,500,000 | ||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | Interest in RCT I [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Percentage of total value of trusts owned | 3.00% | 3.00% | 3.00% | ||||||||||||||||||||||
Borrowings | $ 25,800,000 | $ 25,800,000 | $ 25,800,000 | ||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | Interest in RCT II [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Percentage of total value of trusts owned | 3.00% | 3.00% | 3.00% | ||||||||||||||||||||||
Borrowings | $ 25,800,000 | $ 25,800,000 | $ 25,800,000 | ||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | Investment in RCAM [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||
Number of CLOs held by purchased entity | Entity | 4 | ||||||||||||||||||||||||
Number of CLOs liquidated | Entity | 1 | ||||||||||||||||||||||||
[1] | December 31, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $95 $25 Restricted cash$39,061 $121,247 Investments securities available-for-sale, pledged as collateral, at fair value66,137 119,203 Loans held for sale1,475 282Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,416,441 1,261,137 Interest receivable6,592 8,941 Prepaid expenses238 221 Principal paydown receivable17,800 25,767 Other assets833 (12) Total assets of consolidated VIEs$1,548,672 $1,536,811 | ||||||||||||||||||||||||
[2] | December 31, 2015 December 31, 2014Liabilities of consolidated VIEs included in the total liabilities above: Borrowings$1,032,581 $1,046,494 Accrued interest expense923 1,000 Derivatives, at fair value3,346 8,439 Unsettled loan purchases— (529) Accounts payable and other liabilities(117) (386) Total liabilities of consolidated VIEs$1,036,733 $1,055,018 |
VARIABLE INTEREST ENTITIES (Sch
VARIABLE INTEREST ENTITIES (Schedule of Carrying Value of Assets and Liabilities of Consolidated VIEs) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS (3) | ||
Cash and cash equivalents | $ 95 | $ 25 |
Restricted cash | 39,061 | 121,247 |
Investment securities available-for-sale, pledged as collateral, at fair value | 66,137 | 119,203 |
Loans, pledged as collateral | 1,416,441 | 1,261,137 |
Loans held for sale | 1,475 | 282 |
Interest receivable | 6,592 | 8,941 |
Prepaid assets | 238 | 221 |
Principal paydown receivable | 17,800 | 25,767 |
Other assets | 833 | (12) |
Total assets of consolidated VIEs | 1,548,672 | 1,536,811 |
LIABILITIES | ||
Borrowings | 1,032,581 | 1,046,494 |
Accrued interest expense | 923 | 1,000 |
Derivatives, at fair value | 3,346 | 8,439 |
Unsettled loan purchases | 0 | (529) |
Accounts payable and other liabilities | (117) | (386) |
Total liabilities of consolidated VIEs | 1,036,733 | $ 1,055,018 |
VIE, Primary Beneficiary [Member] | ||
ASSETS (3) | ||
Cash and cash equivalents | 95 | |
Restricted cash | 39,061 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 66,137 | |
Loans, pledged as collateral | 1,416,441 | |
Loans held for sale | 1,475 | |
Interest receivable | 6,592 | |
Prepaid assets | 238 | |
Principal paydown receivable | 17,800 | |
Other assets | 833 | |
Total assets of consolidated VIEs | 1,548,672 | |
LIABILITIES | ||
Borrowings | 1,032,581 | |
Accrued interest expense | 923 | |
Derivatives, at fair value | 3,346 | |
Unsettled loan purchases | 0 | |
Accounts payable and other liabilities | (117) | |
Total liabilities of consolidated VIEs | 1,036,733 | |
Restricted cash available for reinvestment in certain of the CDOs | 22,000 | |
VIE, Primary Beneficiary [Member] | Apidos CDO I Ltd. [Member] | ||
ASSETS (3) | ||
Cash and cash equivalents | 0 | |
Restricted cash | 82 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | |
Loans, pledged as collateral | 0 | |
Loans held for sale | 153 | |
Interest receivable | 0 | |
Prepaid assets | 0 | |
Principal paydown receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 235 | |
LIABILITIES | ||
Borrowings | 0 | |
Accrued interest expense | 0 | |
Derivatives, at fair value | 0 | |
Unsettled loan purchases | 0 | |
Accounts payable and other liabilities | 0 | |
Total liabilities of consolidated VIEs | 0 | |
VIE, Primary Beneficiary [Member] | Apidos CDO III Ltd. [Member] | ||
ASSETS (3) | ||
Cash and cash equivalents | 0 | |
Restricted cash | 125 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | |
Loans, pledged as collateral | 0 | |
Loans held for sale | 0 | |
Interest receivable | 0 | |
Prepaid assets | 0 | |
Principal paydown receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 125 | |
LIABILITIES | ||
Borrowings | 0 | |
Accrued interest expense | 0 | |
Derivatives, at fair value | 0 | |
Unsettled loan purchases | 0 | |
Accounts payable and other liabilities | 0 | |
Total liabilities of consolidated VIEs | 0 | |
VIE, Primary Beneficiary [Member] | Apidos Cinco CDO Ltd [Member] | ||
ASSETS (3) | ||
Cash and cash equivalents | 0 | |
Restricted cash | 16,693 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 6,584 | |
Loans, pledged as collateral | 133,234 | |
Loans held for sale | 1,322 | |
Interest receivable | 663 | |
Prepaid assets | 18 | |
Principal paydown receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 158,514 | |
LIABILITIES | ||
Borrowings | 135,417 | |
Accrued interest expense | 211 | |
Derivatives, at fair value | 0 | |
Unsettled loan purchases | 0 | |
Accounts payable and other liabilities | 11 | |
Total liabilities of consolidated VIEs | 135,639 | |
VIE, Primary Beneficiary [Member] | Whitney CLO I, Ltd. [Member] | ||
ASSETS (3) | ||
Cash and cash equivalents | 0 | |
Restricted cash | 116 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | |
Loans, pledged as collateral | 0 | |
Loans held for sale | 0 | |
Interest receivable | 0 | |
Prepaid assets | 0 | |
Principal paydown receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 116 | |
LIABILITIES | ||
Borrowings | 0 | |
Accrued interest expense | 0 | |
Derivatives, at fair value | 0 | |
Unsettled loan purchases | 0 | |
Accounts payable and other liabilities | 0 | |
Total liabilities of consolidated VIEs | 0 | |
VIE, Primary Beneficiary [Member] | Resource Real Estate Funding CDO 2006-1 [Member] | ||
ASSETS (3) | ||
Cash and cash equivalents | 0 | |
Restricted cash | 22 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 5,956 | |
Loans, pledged as collateral | 70,450 | |
Loans held for sale | 0 | |
Interest receivable | 730 | |
Prepaid assets | 79 | |
Principal paydown receivable | 17,700 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 94,937 | |
LIABILITIES | ||
Borrowings | 52,772 | |
Accrued interest expense | 19 | |
Derivatives, at fair value | 83 | |
Unsettled loan purchases | 0 | |
Accounts payable and other liabilities | 0 | |
Total liabilities of consolidated VIEs | 52,874 | |
VIE, Primary Beneficiary [Member] | Resource Real Estate Funding CDO 2007-1 [Member] | ||
ASSETS (3) | ||
Cash and cash equivalents | 0 | |
Restricted cash | 0 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 49,821 | |
Loans, pledged as collateral | 160,904 | |
Loans held for sale | 0 | |
Interest receivable | 1,061 | |
Prepaid assets | 61 | |
Principal paydown receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 211,847 | |
LIABILITIES | ||
Borrowings | 91,752 | |
Accrued interest expense | 63 | |
Derivatives, at fair value | 3,263 | |
Unsettled loan purchases | 0 | |
Accounts payable and other liabilities | 0 | |
Total liabilities of consolidated VIEs | 95,078 | |
VIE, Primary Beneficiary [Member] | RCC CRE Notes 2013 [Member] | ||
ASSETS (3) | ||
Cash and cash equivalents | 0 | |
Restricted cash | 1,296 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | |
Loans, pledged as collateral | 103,761 | |
Loans held for sale | 0 | |
Interest receivable | 474 | |
Prepaid assets | 19 | |
Principal paydown receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 105,550 | |
LIABILITIES | ||
Borrowings | 57,801 | |
Accrued interest expense | 73 | |
Derivatives, at fair value | 0 | |
Unsettled loan purchases | 0 | |
Accounts payable and other liabilities | 3 | |
Total liabilities of consolidated VIEs | 57,877 | |
VIE, Primary Beneficiary [Member] | RCC CRE Notes 2014 [Member] | ||
ASSETS (3) | ||
Cash and cash equivalents | 0 | |
Restricted cash | 18,952 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | |
Loans, pledged as collateral | 296,606 | |
Loans held for sale | 0 | |
Interest receivable | 1,164 | |
Prepaid assets | 21 | |
Principal paydown receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 316,743 | |
LIABILITIES | ||
Borrowings | 195,603 | |
Accrued interest expense | 130 | |
Derivatives, at fair value | 0 | |
Unsettled loan purchases | 0 | |
Accounts payable and other liabilities | 21 | |
Total liabilities of consolidated VIEs | 195,754 | |
VIE, Primary Beneficiary [Member] | RCC CRE Notes 2015-CRE3 [Member] | ||
ASSETS (3) | ||
Cash and cash equivalents | 0 | |
Restricted cash | 0 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | |
Loans, pledged as collateral | 343,348 | |
Loans held for sale | 0 | |
Interest receivable | 1,316 | |
Prepaid assets | 21 | |
Principal paydown receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 344,685 | |
LIABILITIES | ||
Borrowings | 278,661 | |
Accrued interest expense | 247 | |
Derivatives, at fair value | 0 | |
Unsettled loan purchases | 0 | |
Accounts payable and other liabilities | 0 | |
Total liabilities of consolidated VIEs | 278,908 | |
VIE, Primary Beneficiary [Member] | RCC CRE Notes 2015 [Member] | ||
ASSETS (3) | ||
Cash and cash equivalents | 0 | |
Restricted cash | 1,775 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | |
Loans, pledged as collateral | 308,138 | |
Loans held for sale | 0 | |
Interest receivable | 1,184 | |
Prepaid assets | 19 | |
Principal paydown receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 311,116 | |
LIABILITIES | ||
Borrowings | 220,575 | |
Accrued interest expense | 180 | |
Derivatives, at fair value | 0 | |
Unsettled loan purchases | 0 | |
Accounts payable and other liabilities | 0 | |
Total liabilities of consolidated VIEs | 220,755 | |
VIE, Primary Beneficiary [Member] | Moselle CLO [Member] | ||
ASSETS (3) | ||
Cash and cash equivalents | 0 | |
Restricted cash | 0 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | |
Loans, pledged as collateral | 0 | |
Loans held for sale | 0 | |
Interest receivable | 0 | |
Prepaid assets | 0 | |
Principal paydown receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 0 | |
LIABILITIES | ||
Borrowings | 0 | |
Accrued interest expense | 0 | |
Derivatives, at fair value | 0 | |
Unsettled loan purchases | 0 | |
Accounts payable and other liabilities | (154) | |
Total liabilities of consolidated VIEs | (154) | |
VIE, Primary Beneficiary [Member] | RCM Global Manager, LLC [Member] | ||
ASSETS (3) | ||
Cash and cash equivalents | 95 | |
Restricted cash | 0 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 3,776 | |
Loans, pledged as collateral | 0 | |
Loans held for sale | 0 | |
Interest receivable | 0 | |
Prepaid assets | 0 | |
Principal paydown receivable | 100 | |
Other assets | 833 | |
Total assets of consolidated VIEs | 4,804 | |
LIABILITIES | ||
Borrowings | 0 | |
Accrued interest expense | 0 | |
Derivatives, at fair value | 0 | |
Unsettled loan purchases | 0 | |
Accounts payable and other liabilities | 2 | |
Total liabilities of consolidated VIEs | $ 2 |
VARIABLE INTEREST ENTITIES (S66
VARIABLE INTEREST ENTITIES (Schedule of Classification, Carrying Value, and Maximum Exposure to Loss of Unconsolidated VIEs) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Variable Interest Entity [Line Items] | ||
Investment in unconsolidated entities | $ 50,030 | $ 59,827 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Investment in unconsolidated entities | 75,151 | |
Intangible assets | 5,316 | |
Total assets | 80,467 | |
Borrowings | 51,413 | |
Total liabilities | 51,413 | |
Net asset (liability) | 29,054 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | Investments in Unconsolidated Entities [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 75,151 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | Intangible Assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 5,316 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | LEAF Commercial Capital, Inc. [Member] | ||
Variable Interest Entity [Line Items] | ||
Investment in unconsolidated entities | 42,017 | |
Intangible assets | 0 | |
Total assets | 42,017 | |
Borrowings | 0 | |
Total liabilities | 0 | |
Net asset (liability) | 42,017 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | Unsecured Junior Subordinated Debentures [Member] | ||
Variable Interest Entity [Line Items] | ||
Investment in unconsolidated entities | 1,548 | |
Intangible assets | 0 | |
Total assets | 1,548 | |
Borrowings | 51,413 | |
Total liabilities | 51,413 | |
Net asset (liability) | (49,865) | |
Variable Interest Entity, Not Primary Beneficiary [Member] | Resource Capital Asset Management [Member] | ||
Variable Interest Entity [Line Items] | ||
Investment in unconsolidated entities | 0 | |
Intangible assets | 5,316 | |
Total assets | 5,316 | |
Borrowings | 0 | |
Total liabilities | 0 | |
Net asset (liability) | 5,316 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | ZAIS, Harvest and Pearlmark [Member] | ||
Variable Interest Entity [Line Items] | ||
Investment in unconsolidated entities | 31,586 | |
Intangible assets | 0 | |
Total assets | 31,586 | |
Borrowings | 0 | |
Total liabilities | 0 | |
Net asset (liability) | $ 31,586 |
SUPPLEMENTAL CASH FLOW INFORM67
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Non-cash operating activities include the following: | |||
Reclassification of linked transactions, net at fair value to investment securities available-for-sale, pledged as collateral, at fair value and borrowings | $ 15,367 | $ 0 | $ 0 |
Non-cash investing activities include the following: | |||
Reclassification of linked transactions, net at fair value to investment securities available-for-sale, pledged as collateral, at fair value | 48,764 | 0 | 0 |
Assumption of direct financing leases and other assets | 0 | 2,385 | 0 |
Non-cash financing activities include the following: | |||
Contribution of security deposits and other liabilities | 0 | 457 | 0 |
Reclassification of linked transactions, net at fair value to borrowings | 33,397 | 0 | 0 |
Common Stock [Member] | |||
Non-cash financing activities include the following: | |||
Distributions on common and preferred stock declared but not paid | 13,274 | 26,563 | 25,536 |
Preferred Stock [Member] | |||
Non-cash financing activities include the following: | |||
Distributions on common and preferred stock declared but not paid | $ 4,077 | $ 6,044 | $ 2,159 |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | [1] | $ 40,635 | $ 122,138 |
Consolidated securitizations [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | 39,062 | 121,247 | |
Restricted cash pledged with minimum reserve balance requirements [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | 218 | 209 | |
Cash collateralizing outstanding margin calls on cash flow hedges [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | 500 | 500 | |
Cash collateralizing margin posted on forward/short positions [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 855 | $ 182 | |
[1] | December 31, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $95 $25 Restricted cash$39,061 $121,247 Investments securities available-for-sale, pledged as collateral, at fair value66,137 119,203 Loans held for sale1,475 282Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,416,441 1,261,137 Interest receivable6,592 8,941 Prepaid expenses238 221 Principal paydown receivable17,800 25,767 Other assets833 (12) Total assets of consolidated VIEs$1,548,672 $1,536,811 |
INVESTMENT SECURITIES, TRADIN69
INVESTMENT SECURITIES, TRADING (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)Security | Dec. 31, 2014USD ($)Security | |
Investments, Debt and Equity Securities [Abstract] | ||
Trading securities sold | 19 | 9 |
Net realized gain (loss) on trading securities | $ | $ 1.4 | $ 3 |
Number of trading securities held | 56 | 37 |
INVESTMENT SECURITIES, TRADIN70
INVESTMENT SECURITIES, TRADING (Schedule of Investment Trading Securities at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost | $ 30,472 | $ 24,772 | |
Unrealized Gains | 1,674 | 1,098 | |
Unrealized Losses | (6,596) | (5,084) | |
Fair Value | [1] | 25,550 | 20,786 |
Structured Notes [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost | 28,576 | 22,876 | |
Unrealized Gains | 1,674 | 1,098 | |
Unrealized Losses | (4,700) | (3,188) | |
Fair Value | 25,550 | 20,786 | |
RMBS [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost | 1,896 | 1,896 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | (1,896) | (1,896) | |
Fair Value | $ 0 | $ 0 | |
[1] | December 31, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $95 $25 Restricted cash$39,061 $121,247 Investments securities available-for-sale, pledged as collateral, at fair value66,137 119,203 Loans held for sale1,475 282Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,416,441 1,261,137 Interest receivable6,592 8,941 Prepaid expenses238 221 Principal paydown receivable17,800 25,767 Other assets833 (12) Total assets of consolidated VIEs$1,548,672 $1,536,811 |
INVESTMENT SECURITIES AVAILAB71
INVESTMENT SECURITIES AVAILABLE-FOR-SALE - Textuals (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Net impairment losses recognized in earnings | $ 372,000 | $ 0 | $ 855,000 |
CMBS [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Net impairment losses recognized in earnings | $ 863,000 |
INVESTMENT SECURITIES AVAILAB72
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Schedule of Available-for-Sale Securities, Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 205,156 | $ 256,515 | |
Unrealized Gains | 5,971 | 22,761 | |
Unrealized Losses | (3,039) | (3,556) | |
Fair Value (1) | 208,088 | 275,720 | |
Investment securities available-for-sale, pledged as collateral, at fair value | [1] | 162,306 | 197,800 |
CMBS [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 158,584 | 168,669 | |
Unrealized Gains | 2,631 | 4,938 | |
Unrealized Losses | (1,791) | (3,202) | |
Fair Value (1) | 159,424 | 170,405 | |
RMBS [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 2,156 | 29,814 | |
Unrealized Gains | 122 | 937 | |
Unrealized Losses | (88) | 0 | |
Fair Value (1) | 2,190 | 30,751 | |
ABS [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 41,994 | 55,617 | |
Unrealized Gains | 3,218 | 16,876 | |
Unrealized Losses | (998) | (336) | |
Fair Value (1) | 44,214 | 72,157 | |
Corporate bonds [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 2,422 | 2,415 | |
Unrealized Gains | 0 | 10 | |
Unrealized Losses | (162) | (18) | |
Fair Value (1) | $ 2,260 | $ 2,407 | |
[1] | December 31, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $95 $25 Restricted cash$39,061 $121,247 Investments securities available-for-sale, pledged as collateral, at fair value66,137 119,203 Loans held for sale1,475 282Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,416,441 1,261,137 Interest receivable6,592 8,941 Prepaid expenses238 221 Principal paydown receivable17,800 25,767 Other assets833 (12) Total assets of consolidated VIEs$1,548,672 $1,536,811 |
INVESTMENT SECURITIES AVAILAB73
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Estimated Maturities of Available-For-Sale Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value | ||
Less than one year | $ 117,221 | $ 78,095 |
Greater than one year and less than five years | 71,370 | 115,302 |
Greater than five years and less than ten years | 12,382 | 20,177 |
Greater than ten years | 7,115 | 62,146 |
Total | 208,088 | 275,720 |
Amortized Cost | ||
Less than one year | 118,215 | 79,649 |
Greater than one year and less than five years | 68,808 | 100,909 |
Greater than five years and less than ten years | 11,271 | 17,516 |
Greater than ten years | 6,862 | 58,441 |
Total | $ 205,156 | $ 256,515 |
Weighted Average Coupon | ||
Less than one year | 7.13% | 4.13% |
Greater than one year and less than five years | 5.31% | 4.64% |
Greater than five years and less than ten years | 10.45% | 16.45% |
Greater than ten years | 16.85% | 7.86% |
Total | 7.03% | 6.08% |
INVESTMENT SECURITIES AVAILAB74
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Gross Unrealized Loss and Fair Value of Securities) (Details) $ in Thousands | Dec. 31, 2015USD ($)Security | Dec. 31, 2014USD ($)Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | $ 83,122 | $ 38,307 |
Unrealized losses, less than 12 months | $ (1,779) | $ (851) |
Number of securities, less than 12 months | Security | 39 | 31 |
Fair value, more than 12 months | $ 15,778 | $ 26,541 |
Unrealized losses, more than 12 Months | $ (1,260) | $ (2,705) |
Number of securities, more than 12 Months | Security | 21 | 16 |
Fair value, total | $ 98,900 | $ 64,848 |
Unrealized losses, total | $ (3,039) | $ (3,556) |
Number of Securities, total | Security | 60 | 47 |
CMBS [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | $ 79,570 | $ 35,860 |
Unrealized losses, less than 12 months | $ (849) | $ (555) |
Number of securities, less than 12 months | Security | 31 | 22 |
Fair value, more than 12 months | $ 13,783 | $ 25,583 |
Unrealized losses, more than 12 Months | $ (942) | $ (2,647) |
Number of securities, more than 12 Months | Security | 15 | 13 |
Fair value, total | $ 93,353 | $ 61,443 |
Unrealized losses, total | $ (1,791) | $ (3,202) |
Number of Securities, total | Security | 46 | 35 |
RMBS [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | $ 1,157 | |
Unrealized losses, less than 12 months | $ (88) | |
Number of securities, less than 12 months | Security | 2 | |
Fair value, more than 12 months | $ 0 | |
Unrealized losses, more than 12 Months | $ 0 | |
Number of securities, more than 12 Months | Security | 0 | |
Fair value, total | $ 1,157 | |
Unrealized losses, total | $ (88) | |
Number of Securities, total | Security | 2 | |
ABS [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | $ 2,330 | $ 1,000 |
Unrealized losses, less than 12 months | $ (824) | $ (278) |
Number of securities, less than 12 months | Security | 5 | 8 |
Fair value, more than 12 months | $ 668 | $ 958 |
Unrealized losses, more than 12 Months | $ (174) | $ (58) |
Number of securities, more than 12 Months | Security | 5 | 3 |
Fair value, total | $ 2,998 | $ 1,958 |
Unrealized losses, total | $ (998) | $ (336) |
Number of Securities, total | Security | 10 | 11 |
Corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | $ 65 | $ 1,447 |
Unrealized losses, less than 12 months | $ (18) | $ (18) |
Number of securities, less than 12 months | Security | 1 | 1 |
Fair value, more than 12 months | $ 1,327 | $ 0 |
Unrealized losses, more than 12 Months | $ (144) | $ 0 |
Number of securities, more than 12 Months | Security | 1 | 0 |
Fair value, total | $ 1,392 | $ 1,447 |
Unrealized losses, total | $ (162) | $ (18) |
Number of Securities, total | Security | 2 | 1 |
INVESTMENT SECURITIES AVAILAB75
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Summary of Sales of Investment Securities Available-for-Sale) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)Security | Dec. 31, 2014USD ($)Security | |
ABS [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Positions Sold | Security | 24 | 8 |
Positions Redeemed | Security | 3,000 | 1,000 |
Par Amount Sold/Redeemed | $ | $ 69,901 | $ 14,074 |
Realized Gain (Loss) | $ | $ 9,197 | $ 2,948 |
CMBS [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Positions Sold | Security | 1 | 5 |
Positions Redeemed | Security | 0 | 0 |
Par Amount Sold/Redeemed | $ | $ 3,000 | $ 27,370 |
Realized Gain (Loss) | $ | $ (58) | $ 573 |
Corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Positions Sold | Security | 0 | |
Positions Redeemed | Security | 2,000 | |
Par Amount Sold/Redeemed | $ | $ 1,630 | |
Realized Gain (Loss) | $ | $ 48 | |
RMBS [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Positions Sold | Security | 6 | |
Positions Redeemed | Security | 0 | |
Par Amount Sold/Redeemed | $ | $ 28,305 | |
Realized Gain (Loss) | $ | $ 984 |
LOANS (Textuals) (Details)
LOANS (Textuals) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)state | Dec. 31, 2014USD ($) | ||
Receivables with Imputed Interest [Line Items] | |||
Number of states licensed to transact in | state | 41 | ||
Loans held for sale, net | [1] | $ 95,946 | $ 113,675 |
Allowance for loan loss | 47,071 | 4,613 | |
First lien loans held for sale at fair value | 95,946 | 113,675 | |
Allowance for credit losses, collectively evaluated for impairment | 5,515 | 4,043 | |
Principal paydown receivable | [1] | $ 17,941 | $ 40,920 |
Georgia [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Percentage of loans originated | 44.90% | 56.00% | |
Utah [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Percentage of loans originated | 11.20% | 8.00% | |
Tennessee [Member} | |||
Receivables with Imputed Interest [Line Items] | |||
Percentage of loans originated | 4.00% | ||
Virginia [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Percentage of loans originated | 9.10% | 7.00% | |
Florida [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Percentage of loans originated | 4.40% | ||
Alabama [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Percentage of loans originated | 5.00% | ||
Colorado [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Percentage of loans originated | 4.10% | ||
Middle-market Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Loans held for sale, net | $ 375,500 | $ 250,100 | |
Allowance for loan loss | 3,939 | ||
Bank and Middle Market Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Loans held for sale, net | 134,700 | 330,400 | |
Allowance for loan loss | 1,300 | 570 | |
Whole Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Allowance for loan loss | $ 3,745 | $ 3,758 | |
Commercial Real Estate Loans [Member] | California [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Concentration of loan portfolio risk (in hundredths) | 28.70% | 27.40% | |
Commercial Real Estate Loans [Member] | Texas [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Concentration of loan portfolio risk (in hundredths) | 26.80% | 27.30% | |
Commercial Real Estate Loans [Member] | Georgia [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Concentration of loan portfolio risk (in hundredths) | 7.40% | ||
Commercial Real Estate Loans [Member] | Arizona [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Concentration of loan portfolio risk (in hundredths) | 7.30% | ||
Bank Loans [Member] | Minimum [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Basis spread on variable rate | 1.25% | 1.25% | |
Bank Loans [Member] | Maximum [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Basis spread on variable rate | 8.00% | 8.75% | |
Bank Loans [Member] | Industry Grouping of Automobile [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Concentration of loan portfolio risk (in hundredths) | 13.50% | ||
Bank Loans [Member] | Industry Grouping of Diversified/conglomerate Service [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Concentration of loan portfolio risk (in hundredths) | 13.00% | 11.70% | |
Bank Loans [Member] | Industry Grouping of Retail Stores [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Concentration of loan portfolio risk (in hundredths) | 9.60% | ||
Bank Loans [Member] | Industry Grouping of Healthcare [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Concentration of loan portfolio risk (in hundredths) | 17.50% | ||
Bank Loans [Member] | Industry Diversified/conglomerate Service and Chemicals, Plastics and Rubber [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Concentration of loan portfolio risk (in hundredths) | 6.70% | ||
Middle-market Loans [Member] | Minimum [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Basis spread on variable rate | 6.25% | 5.50% | |
Middle-market Loans [Member] | Maximum [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Basis spread on variable rate | 12.00% | 9.25% | |
Middle-market Loans [Member] | Industry Grouping of Diversified/conglomerate Service [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Concentration of loan portfolio risk (in hundredths) | 12.80% | ||
Middle-market Loans [Member] | Industry Grouping of Healthcare, Education, and Childcare [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Concentration of loan portfolio risk (in hundredths) | 12.40% | ||
Middle-market Loans [Member] | Industry Grouping of Personal, Food and Miscellaneous Service [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Concentration of loan portfolio risk (in hundredths) | 13.70% | ||
Middle-market Loans [Member] | Industry Grouping Miscellaneous Services and Hotels, Motels, Inns and Gaming [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Concentration of loan portfolio risk (in hundredths) | 13.10% | ||
Lease Receivables [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Allowance for credit losses, collectively evaluated for impairment | $ 11 | $ 0 | |
Agency-Conforming [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
First lien loans held for sale at fair value | 29,200 | 28,900 | |
Jumbo Mortgage Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
First lien loans held for sale at fair value | $ 65,300 | $ 82,600 | |
[1] | December 31, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $95 $25 Restricted cash$39,061 $121,247 Investments securities available-for-sale, pledged as collateral, at fair value66,137 119,203 Loans held for sale1,475 282Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,416,441 1,261,137 Interest receivable6,592 8,941 Prepaid expenses238 221 Principal paydown receivable17,800 25,767 Other assets833 (12) Total assets of consolidated VIEs$1,548,672 $1,536,811 |
LOANS (Summary of Loans) (Detai
LOANS (Summary of Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Receivables with Imputed Interest [Line Items] | |||
Principal, Gross | $ 2,219,369 | $ 1,940,406 | |
Unamortized (discount) premium, gross | (11,547) | (9,813) | |
Gross carrying value of loans held for investment | 2,207,822 | 1,930,593 | |
Loans Receivable Allowance | 47,071 | ||
Allowance for loan loss | (47,536) | (4,613) | $ (13,807) |
Unamortized (discount) premium, gross, allowance for loan loss | 0 | 0 | |
Carrying value, allowance for loan loss | (47,071) | (4,613) | |
Principal, Net | 2,172,298 | 1,935,793 | |
Unamortized (discount) premium, net | (11,547) | (9,813) | |
Net carrying value of loans held for investment | 2,160,751 | 1,925,980 | |
First lien loans held for sale at fair value | 95,946 | 113,675 | |
Financing Receivable, Net and Loans Receivable Held-for-sale | 2,268,244 | 2,049,468 | |
Net Carrying Value of Loans Held for Investment and Loans Held for Sale | 2,256,697 | 2,039,655 | |
Deferred amendment fees | 42 | 88 | |
Bank Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Principal, Gross | 134,890 | 332,058 | |
Unamortized (discount) premium, gross | (373) | (1,410) | |
Gross carrying value of loans held for investment | 134,517 | 330,648 | |
First lien loans held for sale at fair value | 1,475 | 282 | |
Deferred upfront fee | 12 | 82 | |
Residential mortgage loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Principal, Gross | 1,746 | 2,802 | |
Unamortized (discount) premium, gross | 0 | 0 | |
Gross carrying value of loans held for investment | 1,746 | 2,802 | |
First lien loans held for sale at fair value | 94,471 | 113,393 | |
Middle-market Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Principal, Gross | 380,687 | 250,859 | |
Unamortized (discount) premium, gross | (1,235) | (746) | |
Gross carrying value of loans held for investment | 379,452 | 250,113 | |
Commercial Real Estate Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Principal, Gross | 1,702,046 | 1,354,687 | |
Unamortized (discount) premium, gross | (9,939) | (7,657) | |
Gross carrying value of loans held for investment | 1,692,107 | 1,347,030 | |
Loan origination fees | 9,900 | 7,600 | |
Commercial Real Estate Loans [Member] | Whole Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Principal, Gross | 1,640,744 | 1,271,121 | |
Unamortized (discount) premium, gross | (9,943) | (7,529) | |
Gross carrying value of loans held for investment | 1,630,801 | 1,263,592 | |
Commercial Real Estate Loans [Member] | B Notes [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Principal, Gross | 15,934 | 16,120 | |
Unamortized (discount) premium, gross | 0 | (48) | |
Gross carrying value of loans held for investment | 15,934 | 16,072 | |
Commercial Real Estate Loans [Member] | Mezzanine Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Principal, Gross | 45,368 | 67,446 | |
Unamortized (discount) premium, gross | 4 | (80) | |
Gross carrying value of loans held for investment | 45,372 | 67,366 | |
Residential mortgage loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
First lien loans held for sale at fair value | $ 94,471 | $ 113,393 |
LOANS (Commercial Real Estate L
LOANS (Commercial Real Estate Loans Held for Investment) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan | Jun. 30, 2015USD ($) | |
Receivables with Imputed Interest [Line Items] | |||
Allowance for loan loss | $ 47,071 | $ 4,613 | |
Individually evaluated for impairment | $ 42,021 | $ 570 | |
Commercial Real Estate Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Quantity of loans | Loan | 90 | 78 | |
Amortized Cost | $ 1,692,107 | $ 1,347,030 | |
Whole Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Allowance for loan loss | 3,745 | 3,758 | |
Whole Loans [Member] | Commercial Real Estate Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Amortized Cost | $ 1,630,801 | $ 1,263,592 | |
Fixed contractual interest in floating rate whole loan | 12.00% | ||
Fixed contractual interest in floating rate whole loan, rate two | 15.00% | ||
Whole Loans, Floating Rate [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Loans held for investment, unfunded loan commitments | $ 112,600 | $ 105,100 | |
Whole Loans, Floating Rate [Member] | Commercial Real Estate Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Quantity of loans | Loan | 87 | 73 | |
Amortized Cost | $ 1,630,801 | $ 1,263,592 | |
Quantity | Loan | 2 | ||
The amortized cost of loans held for investments, fixed rate whole loans included in floating rate whole loans. | $ 12,000 | ||
Quantity of loans with fixed contractual interest in floating rate whole loan | Loan | 2 | ||
Individually evaluated for impairment | $ 13,000 | ||
Whole Loans, Floating Rate [Member] | Minimum [Member] | Commercial Real Estate Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Maturity Dates | May 2,015 | May 2,015 | |
Variable rate basis | LIBOR | LIBOR | |
Basis spread on variable rate | 1.75% | 1.75% | |
Whole Loans, Floating Rate [Member] | Maximum [Member] | Commercial Real Estate Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Maturity Dates | February 2,019 | February 2,019 | |
Variable rate basis | LIBOR | LIBOR | |
Basis spread on variable rate | 15.00% | 15.00% | |
Preferred equity tranche [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Amortized Cost | $ 799 | $ 799 | |
Preferred equity tranche [Member] | Commercial Real Estate Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Fixed preferred equity interest in floating rate whole loan | 10.00% | 10.00% | |
B Notes [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Allowance for loan loss | $ 15 | $ 55 | |
B Notes [Member] | Commercial Real Estate Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Amortized Cost | $ 15,934 | $ 16,072 | |
B Notes, Fixed Rate [Member] | Commercial Real Estate Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Quantity of loans | Loan | 1 | 1 | |
Amortized Cost | $ 15,934 | $ 16,072 | |
Stated interest rate | 8.68% | 8.68% | |
Individually evaluated for impairment | $ 15,900 | ||
B Notes, Fixed Rate [Member] | Maximum [Member] | Commercial Real Estate Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Maturity Dates | April 2,016 | April 2,016 | |
Mezzanine Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Allowance for loan loss | $ 38,079 | $ 230 | |
Mezzanine Loans [Member] | Commercial Real Estate Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Amortized Cost | 45,372 | 67,366 | |
Not included in total [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Allowance for loan loss | 41,800 | $ 4,000 | |
Whole Loans, Floating Rate, Modification [Member] | Commercial Real Estate Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Amortized Cost | $ 32,500 | ||
Whole Loans, Floating Rate, Modification [Member] | Minimum [Member] | Commercial Real Estate Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Senior Component [Member] | Whole Loans [Member] | Commercial Real Estate Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Fixed contractual interest in floating rate whole loan | 0.50% | ||
Senior Component [Member] | Whole Loans, Floating Rate [Member] | Commercial Real Estate Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Quantity | Loan | 2 | ||
The amortized cost of loans held for investments, fixed rate whole loans included in floating rate whole loans. | $ 51,200 | ||
Mezzanine Loans [Member] | |||
Receivables with Imputed Interest [Line Items] | |||
Individually evaluated for impairment | $ 38,100 |
LOANS (Weighted Average Life of
LOANS (Weighted Average Life of Commercial Real Estate Loans, at Amortized Cost) (Details) - Commercial Real Estate Loans [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables with Imputed Interest [Line Items] | ||
2,016 | $ 38,903 | $ 5,711 |
2,017 | 140,712 | 60,473 |
2018 and Thereafter | 1,512,492 | 1,280,846 |
Total | 1,692,107 | 1,347,030 |
B Notes [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
2,016 | 15,934 | 0 |
2,017 | 0 | 16,072 |
2018 and Thereafter | 0 | 0 |
Total | 15,934 | 16,072 |
Mezzanine Loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
2,016 | 13,011 | 5,711 |
2,017 | 0 | 16,736 |
2018 and Thereafter | 32,361 | 44,919 |
Total | 45,372 | 67,366 |
Whole Loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
2,016 | 9,958 | 0 |
2,017 | 140,712 | 27,665 |
2018 and Thereafter | 1,480,131 | 1,235,927 |
Total | $ 1,630,801 | $ 1,263,592 |
LOANS (Loans Held for Investmen
LOANS (Loans Held for Investment) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment: | $ 134,517 | $ 330,648 |
First lien loans held for sale at fair value | 95,946 | 113,675 |
Total | 135,992 | 330,930 |
Apidos CDO I Ltd. [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment: | 0 | 153 |
Total | 153 | 153 |
Apidos CDO III Ltd. [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment: | 0 | 81,167 |
Total | 0 | 81,167 |
Apidos Cinco CDO Ltd [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment: | 134,517 | 249,328 |
Total | 135,839 | 249,610 |
First Lien [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment: | 131,281 | 325,726 |
First lien loans held for sale at fair value | 1,475 | 282 |
First Lien [Member] | Apidos CDO I Ltd. [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment: | 0 | 153 |
First lien loans held for sale at fair value | 153 | 0 |
First Lien [Member] | Apidos CDO III Ltd. [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment: | 0 | 80,196 |
First lien loans held for sale at fair value | 0 | 0 |
First Lien [Member] | Apidos Cinco CDO Ltd [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment: | 131,281 | 245,377 |
First lien loans held for sale at fair value | 1,322 | 282 |
Second Lien [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment: | 1,692 | 3,572 |
Second Lien [Member] | Apidos CDO I Ltd. [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment: | 0 | 0 |
Second Lien [Member] | Apidos CDO III Ltd. [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment: | 0 | 0 |
Second Lien [Member] | Apidos Cinco CDO Ltd [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment: | 1,692 | 3,572 |
Third Lien [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment: | 0 | 0 |
Third Lien [Member] | Apidos CDO I Ltd. [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment: | 0 | 0 |
Third Lien [Member] | Apidos CDO III Ltd. [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment: | 0 | 0 |
Third Lien [Member] | Apidos Cinco CDO Ltd [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment: | 0 | 0 |
Defaulted First Lien [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment: | 1,544 | 0 |
Defaulted First Lien [Member] | Apidos CDO I Ltd. [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment: | 0 | 0 |
Defaulted First Lien [Member] | Apidos CDO III Ltd. [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment: | 0 | 0 |
Defaulted First Lien [Member] | Apidos Cinco CDO Ltd [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment: | 1,544 | 0 |
Defaulted Second Lien [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment: | 0 | 1,350 |
Defaulted Second Lien [Member] | Apidos CDO I Ltd. [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment: | 0 | 0 |
Defaulted Second Lien [Member] | Apidos CDO III Ltd. [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment: | 0 | 971 |
Defaulted Second Lien [Member] | Apidos Cinco CDO Ltd [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment: | $ 0 | $ 379 |
LOANS (Weighted Average Life 81
LOANS (Weighted Average Life of Bank Loans, at Amortized Cost) (Details) - Bank Loans [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Less than one year | $ 3,922 | $ 7,829 |
Greater than one year and less than five years | 128,480 | 274,332 |
Five years or greater | 3,590 | 48,769 |
Total | $ 135,992 | $ 330,930 |
LOANS (Allocation of Allowance
LOANS (Allocation of Allowance for Loan Loss for Commercial and Bank Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables with Imputed Interest [Line Items] | ||
Allowance for Loan Loss | $ 47,071 | $ 4,613 |
B Notes [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Allowance for Loan Loss | $ 15 | $ 55 |
Percentage of Total Allowance | 0.03% | 1.19% |
Mezzanine Loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Allowance for Loan Loss | $ 38,079 | $ 230 |
Percentage of Total Allowance | 80.90% | 4.99% |
Whole Loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Allowance for Loan Loss | $ 3,745 | $ 3,758 |
Percentage of Total Allowance | 7.96% | 81.46% |
Bank Loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Allowance for Loan Loss | $ 1,282 | $ 570 |
Percentage of Total Allowance | 2.72% | 12.36% |
Middle-market Loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Allowance for Loan Loss | $ 3,939 | |
Percentage of Total Allowance | 8.37% | |
Residential Mortgage Loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Allowance for Loan Loss | $ 11 | |
Percentage of Total Allowance | 0.02% |
LOANS (Lien Position and Status
LOANS (Lien Position and Status of Middle Market Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net carrying value of loans held for investment | $ 2,160,751 | $ 1,925,980 |
Middle-market Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net carrying value of loans held for investment | 375,513 | 250,113 |
First Lien [Member] | Middle-market Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net carrying value of loans held for investment | 248,367 | 149,287 |
Second Lien [Member] | Middle-market Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net carrying value of loans held for investment | $ 127,146 | $ 100,826 |
LOANS (Weighted Average Life 84
LOANS (Weighted Average Life of Middle Market Loans, at Amortized Cost) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables with Imputed Interest [Line Items] | ||
Net carrying value of loans held for investment | $ 2,160,751 | $ 1,925,980 |
Middle-market Loans [Member] | ||
Receivables with Imputed Interest [Line Items] | ||
Loans held for investment, Less than twelve months, Amortized cost | 14,960 | 0 |
Loans Held For Investment,Greater than Twelve Month and Less than Sixty Months, Carry Value | 250,709 | 132,353 |
Loans Held For Investment,Greater than Sixty Months, Carry Value | 109,844 | 117,760 |
Net carrying value of loans held for investment | $ 375,513 | $ 250,113 |
INVESTMENTS IN UNCONSOLIDATED85
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES (Details) - USD ($) $ in Thousands | Dec. 01, 2009 | Feb. 28, 2014 | Jan. 31, 2013 | Dec. 31, 2015 | Jul. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 15, 2015 | Jun. 24, 2015 | Apr. 30, 2015 | Nov. 16, 2011 | |||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Investments in unconsolidated subsidiaries | $ 50,030 | [1] | $ 50,030 | [1] | $ 59,827 | [1] | $ 1,250 | $ 750 | |||||||
Income (ioss) and interest expense from equity method investments | $ (33) | 2,790 | $ (460) | ||||||||||||
Varde Investment Partners, LP [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Ownership percentage (percent) | 0.00% | 0.00% | |||||||||||||
Investments in unconsolidated subsidiaries | $ 0 | $ 0 | 654 | ||||||||||||
Income (ioss) and interest expense from equity method investments | $ (90) | (20) | 148 | ||||||||||||
RRE VIP Borrower, LLC [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Ownership percentage (percent) | 0.00% | 0.00% | |||||||||||||
Investments in unconsolidated subsidiaries | $ 0 | $ 0 | 0 | ||||||||||||
Income (ioss) and interest expense from equity method investments | 3,473 | 277 | |||||||||||||
Acquisition of membership interests | $ 2,100 | ||||||||||||||
Interest in LCC [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Ownership percentage (percent) | 29.00% | 29.00% | |||||||||||||
Investments in unconsolidated subsidiaries | $ 42,017 | $ 42,017 | 39,416 | $ 36,300 | |||||||||||
Income (ioss) and interest expense from equity method investments | $ 2,601 | (1,555) | (183) | ||||||||||||
CVC Global Credit Opportunities Fund, LP [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Ownership percentage (percent) | 0.00% | 0.00% | |||||||||||||
Investments in unconsolidated subsidiaries | $ 0 | $ 0 | 18,209 | ||||||||||||
Income (ioss) and interest expense from equity method investments | $ 8 | 2,032 | 1,177 | ||||||||||||
Life Care Funding, LLC [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Ownership percentage (percent) | 70.90% | 70.90% | |||||||||||||
Investments in unconsolidated subsidiaries | $ 0 | $ 0 | 0 | ||||||||||||
Income (ioss) and interest expense from equity method investments | $ 0 | (75) | (470) | ||||||||||||
Acquisition of membership interests | $ 1,400 | ||||||||||||||
Pearlmark Mezzanine Realty Partners IV, L.P. [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Ownership percentage (percent) | 47.42% | 47.42% | |||||||||||||
Investments in unconsolidated subsidiaries | $ 6,465 | $ 6,465 | 0 | ||||||||||||
Income (ioss) and interest expense from equity method investments | $ (460) | 0 | 0 | ||||||||||||
Acquisition of membership interests | $ 6,900 | ||||||||||||||
Other commitment | $ 50,000 | ||||||||||||||
Investment in School Lane House [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Ownership percentage (percent) | 0.00% | 0.00% | |||||||||||||
Investments in unconsolidated subsidiaries | $ 0 | $ 0 | 0 | ||||||||||||
Income (ioss) and interest expense from equity method investments | 4 | 912 | 0 | ||||||||||||
Investments in Unconsolidated Entities [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Investments in unconsolidated subsidiaries | $ 48,482 | 48,482 | 58,279 | ||||||||||||
Income (ioss) and interest expense from equity method investments | $ 2,388 | 4,767 | 949 | ||||||||||||
Interest in RCT I and RCT II [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Ownership percentage (percent) | 3.00% | 3.00% | |||||||||||||
Investments in unconsolidated subsidiaries | $ 1,548 | $ 1,548 | 1,548 | ||||||||||||
Income (ioss) and interest expense from equity method investments | $ (2,421) | (2,387) | (2,401) | ||||||||||||
Investment in Preferred Equity [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Ownership percentage (percent) | 0.00% | 0.00% | |||||||||||||
Investments in unconsolidated subsidiaries | $ 0 | $ 0 | 0 | ||||||||||||
Income (ioss) and interest expense from equity method investments | $ 0 | $ 410 | $ 992 | ||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | CVC Global Credit Opportunities Fund, LP [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Acquisition of membership interests | $ 15,000 | ||||||||||||||
Life Care Funding, LLC [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Acquisition of membership interests | $ 2,000 | ||||||||||||||
[1] | December 31, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $95 $25 Restricted cash$39,061 $121,247 Investments securities available-for-sale, pledged as collateral, at fair value66,137 119,203 Loans held for sale1,475 282Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,416,441 1,261,137 Interest receivable6,592 8,941 Prepaid expenses238 221 Principal paydown receivable17,800 25,767 Other assets833 (12) Total assets of consolidated VIEs$1,548,672 $1,536,811 |
FINANCING RECEIVABLES (Textuals
FINANCING RECEIVABLES (Textuals) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2015USD ($)Property | Dec. 31, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan | Dec. 31, 2013USD ($) | Sep. 30, 2014Loan | Mar. 31, 2014Loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans and receivables | $ 2,172,298 | $ 1,935,793 | |||||
Interest income − other | 4,259 | 6,785 | $ 4,212 | ||||
Provision for loan and lease losses | 49,889 | 1,804 | $ 3,020 | ||||
Provision (recovery) for loan and lease losses | 49,889 | 1,804 | |||||
Direct financing lease revenue | 2,100 | ||||||
Direct financing leases, net of provisions | [1] | $ 931 | $ 2,109 | ||||
Subsequent default, number of contracts | Loan | 1 | 0 | |||||
Bank Loans [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans and receivables | $ 135,992 | $ 330,930 | |||||
Provision (recovery) for loan and lease losses | $ 2,887 | $ 4,173 | |||||
Bank Loans [Member] | Nonperforming Financing Receivable [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of defaulted loans | Loan | 1 | 2 | 1,000 | 1 | |||
Loans and receivables | $ 1,500 | $ 1,400 | |||||
Mezzanine Loans [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans and receivables | $ 38,100 | 45,372 | 67,366 | ||||
Interest income − other | 3,000 | ||||||
Provision for loan and lease losses | $ 41,100 | ||||||
Number of properties, loan portfolio | Property | 13 | ||||||
Whole Loans [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans and receivables | $ 1,630,801 | 1,263,592 | |||||
Number of impaired loans | Loan | 1 | ||||||
Loans Receivable - Related Party [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Provision (recovery) for loan and lease losses | $ 0 | 1,297 | |||||
Loans Receivable - Direct Financing Leases [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Provision (recovery) for loan and lease losses | $ 465 | 0 | |||||
Lease Equity Appreciation Fund II [Member] | Resource Capital Corp [Member] | Loans Receivable - Related Party [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Provision (recovery) for loan and lease losses | $ 1,300 | ||||||
[1] | December 31, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $95 $25 Restricted cash$39,061 $121,247 Investments securities available-for-sale, pledged as collateral, at fair value66,137 119,203 Loans held for sale1,475 282Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,416,441 1,261,137 Interest receivable6,592 8,941 Prepaid expenses238 221 Principal paydown receivable17,800 25,767 Other assets833 (12) Total assets of consolidated VIEs$1,548,672 $1,536,811 |
FINANCING RECEIVABLES (Allowanc
FINANCING RECEIVABLES (Allowance for Loan Losses and Recorded Investments in Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | $ 4,613 | $ 13,807 |
Provision (recovery) for loan and lease losses | 49,889 | 1,804 |
Loans charged-off | (7,027) | (10,998) |
Recoveries | 61 | |
Allowance for losses at end of period | 47,536 | 4,613 |
Allowance for losses, ending balance: | ||
Individually evaluated for impairment | 42,021 | 570 |
Collectively evaluated for impairment | 5,515 | 4,043 |
Loans, ending balance: | ||
Individually evaluated for impairment | 172,647 | 418,920 |
Collectively evaluated for impairment | 2,036,571 | 1,513,232 |
Financing Receivable, Net | 2,172,298 | 1,935,793 |
Commercial Real Estate Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 4,043 | 10,416 |
Provision (recovery) for loan and lease losses | 37,735 | (3,758) |
Loans charged-off | 0 | (2,615) |
Recoveries | 61 | |
Allowance for losses at end of period | 41,839 | 4,043 |
Allowance for losses, ending balance: | ||
Individually evaluated for impairment | 40,274 | 0 |
Collectively evaluated for impairment | 1,565 | 4,043 |
Loans, ending balance: | ||
Individually evaluated for impairment | 169,707 | 166,180 |
Collectively evaluated for impairment | 1,522,400 | 1,180,850 |
Financing Receivable, Net | 1,692,107 | 1,347,030 |
Bank Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 570 | 3,391 |
Provision (recovery) for loan and lease losses | 2,887 | 4,173 |
Loans charged-off | (2,175) | (6,994) |
Recoveries | 0 | |
Allowance for losses at end of period | 1,282 | 570 |
Allowance for losses, ending balance: | ||
Individually evaluated for impairment | 1,282 | 570 |
Collectively evaluated for impairment | 0 | 0 |
Loans, ending balance: | ||
Individually evaluated for impairment | 1,544 | 1,350 |
Collectively evaluated for impairment | 132,973 | 329,580 |
Financing Receivable, Net | 135,992 | 330,930 |
Middle-market Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 0 | 0 |
Provision (recovery) for loan and lease losses | 8,901 | 92 |
Loans charged-off | (4,962) | (92) |
Recoveries | 0 | |
Allowance for losses at end of period | 3,939 | 0 |
Allowance for losses, ending balance: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 3,939 | 0 |
Loans, ending balance: | ||
Individually evaluated for impairment | 0 | 250,113 |
Collectively evaluated for impairment | 379,452 | 0 |
Financing Receivable, Net | 379,452 | 250,113 |
Residential Mortgage Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 0 | 0 |
Provision (recovery) for loan and lease losses | (99) | 0 |
Loans charged-off | 110 | 0 |
Recoveries | 0 | |
Allowance for losses at end of period | 11 | 0 |
Allowance for losses, ending balance: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 11 | 0 |
Loans, ending balance: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 1,746 | 2,802 |
Direct Financing Leases [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 0 | 0 |
Provision (recovery) for loan and lease losses | 465 | 0 |
Loans charged-off | 0 | 0 |
Recoveries | 0 | |
Allowance for losses at end of period | 465 | 0 |
Allowance for losses, ending balance: | ||
Individually evaluated for impairment | 465 | 0 |
Collectively evaluated for impairment | 0 | 0 |
Loans, ending balance: | ||
Individually evaluated for impairment | 1,396 | 0 |
Collectively evaluated for impairment | 0 | 0 |
Loans Receivable - Related Party [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 0 | 0 |
Provision (recovery) for loan and lease losses | 0 | 1,297 |
Loans charged-off | 0 | (1,297) |
Recoveries | 0 | |
Allowance for losses at end of period | 0 | 0 |
Allowance for losses, ending balance: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 0 | 0 |
Loans, ending balance: | ||
Individually evaluated for impairment | 0 | 1,277 |
Collectively evaluated for impairment | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 0 | |
Allowance for losses at end of period | 0 | 0 |
Loans, ending balance: | ||
Financing Receivable, Net | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial Real Estate Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 0 | |
Allowance for losses at end of period | 0 | 0 |
Loans, ending balance: | ||
Financing Receivable, Net | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Bank Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 0 | |
Allowance for losses at end of period | 0 | 0 |
Loans, ending balance: | ||
Financing Receivable, Net | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Middle-market Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 0 | |
Allowance for losses at end of period | 0 | 0 |
Loans, ending balance: | ||
Financing Receivable, Net | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Residential Mortgage Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 0 | |
Allowance for losses at end of period | 0 | 0 |
Loans, ending balance: | ||
Financing Receivable, Net | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Direct Financing Leases [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 0 | |
Allowance for losses at end of period | 0 | 0 |
Loans, ending balance: | ||
Financing Receivable, Net | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Loans Receivable - Related Party [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for losses at beginning of period | 0 | |
Allowance for losses at end of period | 0 | 0 |
Loans, ending balance: | ||
Financing Receivable, Net | $ 0 | 0 |
Resource Capital Corp [Member] | Lease Equity Appreciation Fund II [Member] | Loans Receivable - Related Party [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Provision (recovery) for loan and lease losses | $ 1,300 |
FINANCING RECEIVABLES (Credit R
FINANCING RECEIVABLES (Credit Risk Profiles of Bank Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | $ 2,172,298 | $ 1,935,793 |
Bank Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | 135,992 | 330,930 |
Bank Loans [Member] | Rating 1 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | 113,897 | 291,214 |
Bank Loans [Member] | Rating 2 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | 17,578 | 32,660 |
Bank Loans [Member] | Rating 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | 1,498 | 5,424 |
Bank Loans [Member] | Rating 4 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | 0 | 0 |
Bank Loans [Member] | Rating 5 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | 1,544 | 1,350 |
Bank Loans [Member] | Held for Sale [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and receivables | $ 1,475 | $ 282 |
FINANCING RECEIVABLES (Credit89
FINANCING RECEIVABLES (Credit Risk Profiles of Middle Market Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Impaired [Line Items] | ||
Financing Receivable, Net | $ 2,172,298 | $ 1,935,793 |
Middle-market Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Financing Receivable, Net | 379,452 | 250,113 |
Middle-market Loans [Member] | Rating 1 [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Financing Receivable, Net | 44,252 | 0 |
Middle-market Loans [Member] | Rating 2 [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Financing Receivable, Net | 305,578 | 240,245 |
Middle-market Loans [Member] | Rating 3 [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Financing Receivable, Net | 29,622 | 9,868 |
Middle-market Loans [Member] | Rating 4 [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Financing Receivable, Net | 0 | 0 |
Middle-market Loans [Member] | Rating 5 [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Financing Receivable, Net | 0 | 0 |
Middle-market Loans [Member] | Held for Sale [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Financing Receivable, Net | $ 0 | $ 0 |
FINANCING RECEIVABLES (Credit90
FINANCING RECEIVABLES (Credit Risk Profiles of Commercial Real Estate Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | $ 2,172,298 | $ 1,935,793 | |
Whole Loans [Member] | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 1,630,801 | 1,263,592 | |
Whole Loans [Member] | Rating 1 [Member] | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 1,596,099 | 1,231,092 | |
Whole Loans [Member] | Rating 2 [Member] | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 32,500 | 32,500 | |
Whole Loans [Member] | Rating 3 [Member] | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | 0 | |
Whole Loans [Member] | Rating 4 [Member] | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 2,202 | 0 | |
Whole Loans [Member] | Held for Sale [Member] | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | 0 | |
B Notes [Member] | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 15,934 | 16,072 | |
B Notes [Member] | Rating 1 [Member] | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 15,934 | 16,072 | |
B Notes [Member] | Rating 2 [Member] | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | 0 | |
B Notes [Member] | Rating 3 [Member] | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | 0 | |
B Notes [Member] | Rating 4 [Member] | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | 0 | |
B Notes [Member] | Held for Sale [Member] | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | 0 | |
Mezzanine Loans [Member] | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 45,372 | $ 38,100 | 67,366 |
Mezzanine Loans [Member] | Rating 1 [Member] | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 7,300 | 45,432 | |
Mezzanine Loans [Member] | Rating 2 [Member] | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | 21,934 | |
Mezzanine Loans [Member] | Rating 3 [Member] | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | 0 | |
Mezzanine Loans [Member] | Rating 4 [Member] | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 38,072 | 0 | |
Mezzanine Loans [Member] | Held for Sale [Member] | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | 0 | |
Commercial Portfolio Segment [Member] | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 1,692,107 | 1,347,030 | |
Commercial Portfolio Segment [Member] | Rating 1 [Member] | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 1,619,333 | 1,292,596 | |
Commercial Portfolio Segment [Member] | Rating 2 [Member] | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 32,500 | 54,434 | |
Commercial Portfolio Segment [Member] | Rating 3 [Member] | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 0 | 0 | |
Commercial Portfolio Segment [Member] | Rating 4 [Member] | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | 40,274 | 0 | |
Commercial Portfolio Segment [Member] | Held for Sale [Member] | |||
Schedule Of Financing Receivables [Line Items] | |||
Loans and receivables | $ 0 | $ 0 |
FINANCING RECEIVABLES (Loan Por
FINANCING RECEIVABLES (Loan Portfolio Aging Analysis as of the Dates Indicated at Cost Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 39,990 | $ 1,994 | |
Current (2) | 2,263,699 | 2,041,612 | |
Total Loan and Lease Receivable | 2,303,689 | 2,043,606 | |
Total Loans Greater Than 90 days and accruing | 0 | 0 | |
First lien loans held for sale at fair value | 95,946 | 113,675 | |
Individually evaluated for impairment | 42,021 | 570 | |
Whole Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current (2) | 1,630,801 | 1,263,592 | |
Total Loan and Lease Receivable | 1,630,801 | 1,263,592 | |
Total Loans Greater Than 90 days and accruing | 0 | 0 | |
Individually evaluated for impairment | 2,200 | ||
B Notes [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current (2) | 15,934 | 16,072 | |
Total Loan and Lease Receivable | 15,934 | 16,072 | |
Total Loans Greater Than 90 days and accruing | 0 | 0 | |
Mezzanine Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 38,072 | 0 | |
Current (2) | 7,300 | 67,366 | |
Total Loan and Lease Receivable | 45,372 | 67,366 | |
Total Loans Greater Than 90 days and accruing | 0 | 0 | |
Individually evaluated for impairment | $ 38,100 | ||
Bank Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,544 | 1,350 | |
Current (2) | 132,973 | 329,580 | |
Total Loan and Lease Receivable | 134,517 | 330,930 | |
Total Loans Greater Than 90 days and accruing | 0 | 0 | |
Individually evaluated for impairment | 1,282 | 570 | |
Middle-market Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current (2) | 379,452 | 250,113 | |
Total Loan and Lease Receivable | 379,452 | 250,113 | |
Total Loans Greater Than 90 days and accruing | 0 | 0 | |
Individually evaluated for impairment | 0 | 0 | |
Direct financing leases [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 226 | ||
Current (2) | 1,170 | ||
Total Loan and Lease Receivable | 1,396 | ||
Total Loans Greater Than 90 days and accruing | 0 | ||
Residential Mortgage Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 148 | 644 | |
Current (2) | 96,069 | 113,612 | |
Total Loan and Lease Receivable | 96,217 | 114,256 | |
Total Loans Greater Than 90 days and accruing | 0 | 0 | |
First lien loans held for sale at fair value | 94,471 | 113,393 | |
Loans Receivable - Related Party [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | ||
Current (2) | 1,277 | ||
Total Loan and Lease Receivable | 1,277 | ||
Total Loans Greater Than 90 days and accruing | 0 | ||
Individually evaluated for impairment | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,583 | 443 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Whole Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | B Notes [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Mezzanine Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Bank Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,544 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Middle-market Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Direct financing leases [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 12 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Mortgage Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 27 | 443 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Loans Receivable - Related Party [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 38,327 | 82 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Whole Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | B Notes [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Mezzanine Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 38,072 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Bank Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Middle-market Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Direct financing leases [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 214 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Mortgage Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 41 | 82 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Loans Receivable - Related Party [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 80 | 1,469 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Whole Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | B Notes [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Mezzanine Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Bank Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 1,350 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Middle-market Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Direct financing leases [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Mortgage Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 80 | 119 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Loans Receivable - Related Party [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 0 |
FINANCING RECEIVABLES (Impaired
FINANCING RECEIVABLES (Impaired Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance | $ 171,251 | $ 169,612 |
Unpaid Principal Balance | 171,258 | 169,612 |
Specific Allowance | (41,556) | (570) |
Average Investment in Impaired Loans | 170,409 | 170,599 |
Interest Income Recognized | 1,123 | 6,037 |
Whole Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans without a specific valuation allowance, Recorded balance | 129,433 | 128,108 |
Loans with a specific valuation allowance, Recorded balance | 2,202 | 0 |
Recorded Balance | 131,635 | 128,108 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 129,433 | 128,108 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 2,202 | 0 |
Unpaid Principal Balance | 131,635 | 128,108 |
Specific Allowance | (2,202) | 0 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 128,591 | 130,445 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 2,202 | 0 |
Average Investment in Impaired Loans | 130,793 | 130,445 |
Loans without a specific valuation allowance, Interest Income Recognized | 3,939 | 4,620 |
Loans with a specific valuation allowance, Interest Income Recognized | 63 | 0 |
Interest Income Recognized | 4,002 | 4,620 |
B Notes [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans without a specific valuation allowance, Recorded balance | 0 | 0 |
Loans with a specific valuation allowance, Recorded balance | 0 | 0 |
Recorded Balance | 0 | 0 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 0 | 0 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Specific Allowance | 0 | 0 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 |
Average Investment in Impaired Loans | 0 | 0 |
Loans without a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Mezzanine Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans without a specific valuation allowance, Recorded balance | 0 | 38,072 |
Loans with a specific valuation allowance, Recorded balance | 38,072 | 0 |
Recorded Balance | 38,072 | 38,072 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 0 | 38,072 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 38,072 | 0 |
Unpaid Principal Balance | 38,072 | 38,072 |
Specific Allowance | (38,072) | 0 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 0 | 38,072 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 38,072 | 0 |
Average Investment in Impaired Loans | 38,072 | 38,072 |
Loans without a specific valuation allowance, Interest Income Recognized | 0 | 1,269 |
Loans with a specific valuation allowance, Interest Income Recognized | (2,879) | 0 |
Interest Income Recognized | (2,879) | 1,269 |
Bank Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans without a specific valuation allowance, Recorded balance | 0 | 0 |
Loans with a specific valuation allowance, Recorded balance | 1,544 | 1,350 |
Recorded Balance | 1,544 | 1,350 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 0 | 0 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 1,551 | 1,350 |
Unpaid Principal Balance | 1,551 | 1,350 |
Specific Allowance | (1,282) | (570) |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 1,544 | 0 |
Average Investment in Impaired Loans | 1,544 | 0 |
Loans without a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Middle-market Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans without a specific valuation allowance, Recorded balance | 0 | 0 |
Loans with a specific valuation allowance, Recorded balance | 0 | 0 |
Recorded Balance | 0 | 0 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 0 | 0 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Specific Allowance | 0 | 0 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 |
Average Investment in Impaired Loans | 0 | 0 |
Loans without a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Residential Mortgage Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans without a specific valuation allowance, Recorded balance | 0 | 2,082 |
Loans with a specific valuation allowance, Recorded balance | 0 | 0 |
Recorded Balance | 0 | 2,082 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 0 | 2,082 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 0 | 0 |
Unpaid Principal Balance | 0 | 2,082 |
Specific Allowance | 0 | 0 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 0 | 2,082 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 |
Average Investment in Impaired Loans | 0 | 2,082 |
Loans without a specific valuation allowance, Interest Income Recognized | 0 | 148 |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Interest Income Recognized | 0 | 148 |
Loans Receivable - Related Party [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans without a specific valuation allowance, Recorded balance | 0 | 0 |
Loans with a specific valuation allowance, Recorded balance | 0 | 0 |
Recorded Balance | 0 | 0 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 0 | 0 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Specific Allowance | 0 | 0 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 |
Average Investment in Impaired Loans | 0 | 0 |
Loans without a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Interest Income Recognized | $ 0 | $ 0 |
FINANCING RECEIVABLES (Loan P93
FINANCING RECEIVABLES (Loan Portfolio Troubled-debt Restructurings) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan | |
Troubled debt restructuring [Abstract] | ||
Number of Loans | Loan | 4 | 4 |
Pre-Modification Outstanding Recorded Balance | $ 138,031 | $ 137,811 |
Post-Modification Outstanding Recorded Balance | $ 99,959 | $ 137,811 |
Whole Loans [Member] | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | Loan | 3 | 3 |
Pre-Modification Outstanding Recorded Balance | $ 99,959 | $ 99,739 |
Post-Modification Outstanding Recorded Balance | $ 99,959 | $ 99,739 |
B Notes [Member] | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | Loan | 0 | 0 |
Pre-Modification Outstanding Recorded Balance | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Balance | $ 0 | $ 0 |
Mezzanine Loans [Member] | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | Loan | 1 | 1 |
Pre-Modification Outstanding Recorded Balance | $ 38,072 | $ 38,072 |
Post-Modification Outstanding Recorded Balance | $ 0 | $ 38,072 |
Bank Loans [Member] | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | Loan | 0 | 0 |
Pre-Modification Outstanding Recorded Balance | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Balance | $ 0 | $ 0 |
Middle-market Loans [Member] | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | Loan | 0 | 0 |
Pre-Modification Outstanding Recorded Balance | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Balance | $ 0 | $ 0 |
Residential Mortgage Loans [Member] | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | Loan | 0 | |
Pre-Modification Outstanding Recorded Balance | $ 0 | |
Post-Modification Outstanding Recorded Balance | $ 0 | |
Loans Receivable - Related Party [Member] | ||
Troubled debt restructuring [Abstract] | ||
Number of Loans | Loan | 0 | 0 |
Pre-Modification Outstanding Recorded Balance | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Balance | $ 0 | $ 0 |
BUSINESS COMBINATION (Details)
BUSINESS COMBINATION (Details) - USD ($) $ in Thousands | Jul. 01, 2016 | Jan. 05, 2016 | Dec. 15, 2015 | Jul. 30, 2015 | Apr. 30, 2015 | Feb. 26, 2014 | Dec. 31, 2015 | [1] | Dec. 31, 2014 | [1] |
Business Acquisition [Line Items] | ||||||||||
Investments in unconsolidated subsidiaries | $ 1,250 | $ 750 | $ 50,030 | $ 59,827 | ||||||
Life Care Funding, LLC [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership percentage in VIE | 70.90% | 60.70% | 50.20% | |||||||
Acquisition of membership interests | $ 375 | $ 375 | ||||||||
Enterprise value | $ 4,100 | |||||||||
Subsequent Event [Member] | Life Care Funding, LLC [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquisition of membership interests | $ 750 | |||||||||
Scenario, Forecast [Member] | Life Care Funding, LLC [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquisition of membership interests | $ 500 | |||||||||
[1] | December 31, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $95 $25 Restricted cash$39,061 $121,247 Investments securities available-for-sale, pledged as collateral, at fair value66,137 119,203 Loans held for sale1,475 282Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,416,441 1,261,137 Interest receivable6,592 8,941 Prepaid expenses238 221 Principal paydown receivable17,800 25,767 Other assets833 (12) Total assets of consolidated VIEs$1,548,672 $1,536,811 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Fee income | $ 9,509 | $ 9,385 | $ 5,821 | |
Impairment of intangible assets | $ 2,400 | |||
Expected amortization, 2016 | 1,500 | 1,500 | ||
Expected amortization, 2017 | 1,300 | 1,300 | ||
Expected amortization, 2018 | 1,200 | 1,200 | ||
Expected amortization, 2019 | 514 | 514 | ||
Expected amortization, 2020 | 515 | $ 515 | ||
Weighted average amortization period (in years) | 5 years 9 months 6 days | 6 years 7 months 6 days | ||
Investments in Real Estate [Member] | Above (Below) Market Leases [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 4,300 | $ 2,100 | 2,000 | |
Servicing Contracts [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 4,500 | $ 1,600 | 254 | |
Expected amortization, 2016 | 4,600 | 4,600 | ||
Expected amortization, 2017 | 4,400 | 4,400 | ||
Expected amortization, 2018 | 4,300 | 4,300 | ||
Expected amortization, 2019 | 3,800 | 3,800 | ||
Expected amortization, 2020 | 2,500 | $ 2,500 | ||
Weighted average amortization period (in years) | 1 year 2 months 12 days | 1 year 4 months 24 days | ||
Principal amount outstanding of loans held-in-portfolio | 1,998,273 | $ 1,998,273 | $ 894,767 | 433,153 |
Investment in RCAM [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Fee income | 3,900 | $ 5,100 | $ 5,300 | |
Impairment of intangible assets | $ 2,400 | $ 2,400 |
INTANGIBLE ASSETS (Summary of I
INTANGIBLE ASSETS (Summary of Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning Balance | $ 26,328 | $ 18,610 | |
Additions | 16,552 | ||
Sales | 0 | ||
Accumulated Amortization | (8,834) | ||
Temporary impairment adjustment | (100) | ||
Net Asset | [1] | 26,228 | |
Investment in RCAM [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning Balance | 5,316 | 9,434 | |
Additions | 0 | ||
Sales | 0 | ||
Accumulated Amortization | (4,118) | ||
Temporary impairment adjustment | 0 | ||
Net Asset | 5,316 | ||
Servicing Contracts [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning Balance | 20,922 | 8,874 | |
Additions | 16,552 | ||
Sales | 0 | ||
Accumulated Amortization | (4,504) | ||
Temporary impairment adjustment | (100) | ||
Net Asset | 20,822 | ||
Wholesale or Correspondent Relationships [Member] | Investment in PCM [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning Balance | 90 | $ 302 | |
Additions | 0 | ||
Sales | 0 | ||
Accumulated Amortization | (212) | ||
Temporary impairment adjustment | 0 | ||
Net Asset | $ 90 | ||
[1] | December 31, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $95 $25 Restricted cash$39,061 $121,247 Investments securities available-for-sale, pledged as collateral, at fair value66,137 119,203 Loans held for sale1,475 282Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,416,441 1,261,137 Interest receivable6,592 8,941 Prepaid expenses238 221 Principal paydown receivable17,800 25,767 Other assets833 (12) Total assets of consolidated VIEs$1,548,672 $1,536,811 |
INTANGIBLE ASSETS (Loan Servici
INTANGIBLE ASSETS (Loan Servicing Portfolio) (Details) - Servicing Contracts [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Principal Amount Outstanding of Loans Held-in-portfolio [Roll Forward] | ||
Balance, beginning of period | $ 894,767 | $ 433,153 |
Additions | 1,236,145 | 519,915 |
Payoffs, sales and curtailments | (132,639) | (58,301) |
Balance, end of period | $ 1,998,273 | $ 894,767 |
INTANGIBLE ASSETS (Servicing Fe
INTANGIBLE ASSETS (Servicing Fees, Late fees and Other Ancillary Servicing Revenue) (Details) - Other Income [Member] - Servicing Contracts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Servicing fees from capitalized portfolio | $ 3,773 | $ 1,649 | $ 178 |
Late Fees | 106 | 81 | 7 |
Other ancillary servicing revenue | $ 11 | $ 6 | $ 1 |
BORROWINGS (Schedule of Debt) (
BORROWINGS (Schedule of Debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 1,921,081 | $ 1,734,901 | |
Unamortized Issuance Costs and Discounts | 25,793 | 18,030 | |
Outstanding Borrowings | $ 1,895,288 | $ 1,716,871 | |
Weighted Average Borrowing Rate | 2.89% | 2.09% | |
Weighted Average Remaining Maturity | 10 years 5 months | 10 years | |
Value of Collateral | $ 2,546,648 | $ 2,287,115 | |
Accrued interest costs | [1] | 5,604 | 2,123 |
RREF CDO 2006-1 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 52,772 | 61,423 | |
Unamortized Issuance Costs and Discounts | 0 | 0 | |
Outstanding Borrowings | $ 52,772 | $ 61,423 | |
Weighted Average Borrowing Rate | 2.60% | 2.12% | |
Weighted Average Remaining Maturity | 30 years 7 months | 31 years 7 months | |
Value of Collateral | $ 94,379 | $ 139,242 | |
RREF CDO 2007-1 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 91,752 | 130,340 | |
Unamortized Issuance Costs and Discounts | 0 | 133 | |
Outstanding Borrowings | $ 91,752 | $ 130,207 | |
Weighted Average Borrowing Rate | 1.65% | 1.19% | |
Weighted Average Remaining Maturity | 30 years 9 months | 31 years 9 months | |
Value of Collateral | $ 210,904 | $ 271,423 | |
RCC CRE Notes 2013 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 58,465 | 226,840 | |
Unamortized Issuance Costs and Discounts | 664 | 2,683 | |
Outstanding Borrowings | $ 57,801 | $ 224,157 | |
Weighted Average Borrowing Rate | 3.21% | 2.11% | |
Weighted Average Remaining Maturity | 13 years | 14 years | |
Value of Collateral | $ 104,439 | $ 249,983 | |
RCC CRE Notes 2014 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 198,594 | 235,344 | |
Unamortized Issuance Costs and Discounts | 2,991 | 3,687 | |
Outstanding Borrowings | $ 195,603 | $ 231,657 | |
Weighted Average Borrowing Rate | 1.68% | 1.45% | |
Weighted Average Remaining Maturity | 16 years 4 months | 17 years 4 months | |
Value of Collateral | $ 313,663 | $ 346,585 | |
RCC CRE Notes 2015-CRE3 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 282,127 | ||
Unamortized Issuance Costs and Discounts | 3,466 | ||
Outstanding Borrowings | $ 278,661 | ||
Weighted Average Borrowing Rate | 2.25% | ||
Weighted Average Remaining Maturity | 16 years 2 months | ||
Value of Collateral | $ 341,099 | ||
RCC CRE Notes 2015 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 223,735 | ||
Unamortized Issuance Costs and Discounts | 3,160 | ||
Outstanding Borrowings | $ 220,575 | ||
Weighted Average Borrowing Rate | 2.06% | ||
Weighted Average Remaining Maturity | 16 years 7 months | ||
Value of Collateral | $ 308,042 | ||
Apidos CDO III Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 74,646 | ||
Unamortized Issuance Costs and Discounts | 0 | ||
Outstanding Borrowings | $ 74,646 | ||
Weighted Average Borrowing Rate | 1.18% | ||
Weighted Average Remaining Maturity | 5 years 8 months | ||
Value of Collateral | $ 85,553 | ||
Apidos Cinco CDO Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 135,417 | 255,664 | |
Unamortized Issuance Costs and Discounts | 0 | 201 | |
Outstanding Borrowings | $ 135,417 | $ 255,463 | |
Weighted Average Borrowing Rate | 1.25% | 0.81% | |
Weighted Average Remaining Maturity | 4 years 5 months | 5 years 5 months | |
Value of Collateral | $ 154,584 | $ 272,512 | |
Moselle CLO S.A. Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 63,321 | ||
Unamortized Issuance Costs and Discounts | 0 | ||
Outstanding Borrowings | $ 63,321 | ||
Weighted Average Borrowing Rate | 1.49% | ||
Weighted Average Remaining Maturity | 5 years | ||
Value of Collateral | $ 93,576 | ||
Fair value of amount outstanding | 63,300 | ||
Moselle CLO S.A. Securitized Borrowings [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 5,619 | ||
Unamortized Issuance Costs and Discounts | 0 | ||
Outstanding Borrowings | $ 5,619 | ||
Weighted Average Borrowing Rate | 1.49% | ||
Weighted Average Remaining Maturity | 5 years | ||
Value of Collateral | $ 0 | ||
Unsecured Junior Subordinated Debentures [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 51,548 | 51,548 | |
Unamortized Issuance Costs and Discounts | 135 | 343 | |
Outstanding Borrowings | $ 51,413 | $ 51,205 | |
Weighted Average Borrowing Rate | 4.40% | 4.19% | |
Weighted Average Remaining Maturity | 20 years 9 months | 21 years 9 months | |
Value of Collateral | $ 0 | $ 0 | |
6% Convertible Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 115,000 | 115,000 | |
Unamortized Issuance Costs and Discounts | 4,917 | 6,626 | |
Outstanding Borrowings | $ 110,083 | $ 108,374 | |
Weighted Average Borrowing Rate | 6.00% | 6.00% | |
Weighted Average Remaining Maturity | 2 years 11 months | 3 years 11 months | |
Value of Collateral | $ 0 | $ 0 | |
8% Convertible Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 100,000 | ||
Unamortized Issuance Costs and Discounts | 4,599 | ||
Outstanding Borrowings | $ 95,401 | ||
Weighted Average Borrowing Rate | 8.00% | ||
Weighted Average Remaining Maturity | 4 years | ||
Value of Collateral | $ 0 | ||
CRE - Term Repurchase Facility [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 225,346 | 207,640 | |
Unamortized Issuance Costs and Discounts | 2,418 | 1,958 | |
Outstanding Borrowings | $ 222,928 | $ 205,682 | |
Weighted Average Borrowing Rate | 2.64% | 2.43% | |
Weighted Average Remaining Maturity | 17 days | 20 days | |
Value of Collateral | $ 321,267 | $ 297,571 | |
Accrued interest costs | 315 | 198 | |
CMBS - Term Repurchase Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 25,658 | 24,967 | |
Unamortized Issuance Costs and Discounts | 2 | 0 | |
Outstanding Borrowings | $ 25,656 | $ 24,967 | |
Weighted Average Borrowing Rate | 1.57% | 1.35% | |
Weighted Average Remaining Maturity | 18 days | 20 days | |
Value of Collateral | $ 31,650 | $ 30,180 | |
Accrued interest costs | 18 | 12 | |
Trust Certificates - Term Repurchase Facility [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 26,659 | ||
Unamortized Issuance Costs and Discounts | 415 | ||
Outstanding Borrowings | $ 26,244 | ||
Weighted Average Borrowing Rate | 5.85% | ||
Weighted Average Remaining Maturity | 2 years 11 months | ||
Value of Collateral | $ 89,181 | ||
Accrued interest costs | 61 | ||
RMBS - Term Repurchase Facility [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 782 | 22,248 | |
Unamortized Issuance Costs and Discounts | 0 | 36 | |
Outstanding Borrowings | $ 782 | $ 22,212 | |
Weighted Average Borrowing Rate | 2.75% | 1.16% | |
Weighted Average Remaining Maturity | 264 days | 1 day | |
Value of Collateral | $ 835 | $ 27,885 | |
Accrued interest costs | 30 | 20 | |
Residential Mortgage Financing Agreements [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 85,819 | 102,576 | |
Unamortized Issuance Costs and Discounts | 0 | 0 | |
Outstanding Borrowings | $ 85,819 | $ 102,576 | |
Weighted Average Borrowing Rate | 3.10% | 2.78% | |
Weighted Average Remaining Maturity | 257 days | 207 days | |
Value of Collateral | $ 120,952 | $ 147,472 | |
CMBS - Short Term Repurchase Agreements [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 57,407 | 44,225 | |
Unamortized Issuance Costs and Discounts | 0 | 0 | |
Outstanding Borrowings | $ 57,407 | $ 44,225 | |
Weighted Average Borrowing Rate | 2.06% | 1.63% | |
Weighted Average Remaining Maturity | 18 days | 17 days | |
Value of Collateral | $ 79,347 | $ 62,446 | |
Accrued interest costs | 40 | 31 | |
Senior Secured Revolving Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 190,000 | 113,500 | |
Unamortized Issuance Costs and Discounts | 3,026 | 2,363 | |
Outstanding Borrowings | $ 186,974 | $ 111,137 | |
Weighted Average Borrowing Rate | 3.09% | 2.66% | |
Weighted Average Remaining Maturity | 3 years 2 months | 3 years 8 months | |
Value of Collateral | $ 376,306 | $ 262,687 | |
[1] | December 31, 2015 December 31, 2014Liabilities of consolidated VIEs included in the total liabilities above: Borrowings$1,032,581 $1,046,494 Accrued interest expense923 1,000 Derivatives, at fair value3,346 8,439 Unsettled loan purchases— (529) Accounts payable and other liabilities(117) (386) Total liabilities of consolidated VIEs$1,036,733 $1,055,018 |
BORROWINGS (Securitzations) (De
BORROWINGS (Securitzations) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Jun. 30, 2015 |
RREF CDO 2006-1 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Cumulative amount of debt paid down | $ 180.5 | |
RREF CDO 2007-1 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Cumulative amount of debt paid down | 252 | |
RCC CRE Notes 2013 [Member] | ||
Debt Instrument [Line Items] | ||
Cumulative amount of debt paid down | 202.4 | |
RCC CRE Notes 2014 [Member] | ||
Debt Instrument [Line Items] | ||
Cumulative amount of debt paid down | 36.8 | |
RCC CRE Notes 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Cumulative amount of debt paid down | 0 | |
RCC CRE Notes 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Cumulative amount of debt paid down | 0 | |
Apidos CDO III Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Cumulative amount of debt paid down | $ 186.6 | |
Apidos CDO I Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Cumulative amount of debt paid down | $ 262.5 |
BORROWINGS (Resource Real Estat
BORROWINGS (Resource Real Estate Funding CDO 2006-1) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2007 | Aug. 31, 2006 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.30% | |||
Reissuance price to par | 98.94% | |||
Resource Real Estate Funding CDO 2006-1 [Member] | ||||
Debt Instrument [Line Items] | ||||
Closing transaction amount | $ 345,000,000 | |||
Face amount of debt issued | 308,700,000 | |||
Resource Real Estate Funding CDO 2006-1 [Member] | Resource Real Estate Funding 2006-1 CDO Investor LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Purchased equity interests | $ 36,300,000 | |||
Percentage of total preference shares (in hundredths) | 100.00% | |||
Resource Real Estate Funding CDO 2006-1 [Member] | RCC Real Estate [Member] | ||||
Debt Instrument [Line Items] | ||||
Percentage of senior notes acquired by the parent | 100.00% | |||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class J and K [Member] | RCC Real Estate [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 43,100,000 | |||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class A-1 [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 129,400,000 | |||
Basis spread on variable rate | 0.32% | |||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class A-2 [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 17,400,000 | |||
Basis spread on variable rate | 0.35% | |||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class A-2b [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 5,000,000 | |||
Interest rate at period end | 5.842% | |||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class B [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 6,900,000 | |||
Basis spread on variable rate | 0.40% | |||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class C [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 20,700,000 | |||
Basis spread on variable rate | 0.62% | |||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class D [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 15,500,000 | |||
Basis spread on variable rate | 0.80% | |||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class E [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 20,700,000 | |||
Basis spread on variable rate | 1.30% | |||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class F [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 19,800,000 | |||
Basis spread on variable rate | 1.60% | |||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class G [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 17,300,000 | |||
Basis spread on variable rate | 1.90% | |||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class H [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 12,900,000 | |||
Basis spread on variable rate | 3.75% | |||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class J [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 14,700,000 | |||
Interest rate at period end | 6.00% | |||
Resource Real Estate Funding CDO 2006-1 [Member] | Senior Notes Class K [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 28,400,000 | |||
Interest rate at period end | 6.00% | |||
RREF CDO 2006-1 Senior Notes [Member] | Senior Notes Class A-1 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, amount, reissuance | $ 6,700,000 | |||
RREF CDO 2006-1 Senior Notes [Member] | Senior Notes Class A-2 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, amount, reissuance | $ 12,000,000 | |||
Reissuance price to par | 95.56% | |||
Gain (loss) on reissuance of debt instrument | $ (604,000) | |||
RREF CDO 2006-1 Senior Notes [Member] | Senior Notes Class F [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, amount, reissuance | $ 6,300,000 | |||
Reissuance price to par | 96.02% | |||
Gain (loss) on reissuance of debt instrument | $ 249,000 |
BORROWINGS (Resource Real Es102
BORROWINGS (Resource Real Estate Funding CDO 2007-1) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2007 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.30% | ||
Reissuance price to par | 98.94% | ||
RREF CDO 2007-1 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Closing transaction amount | $ 500,000,000 | ||
Percentage of senior notes acquired by the parent | 100.00% | ||
RREF CDO 2007-1 Senior Notes [Member] | RCC Real Estate [Member] | |||
Debt Instrument [Line Items] | |||
Payments by parent to acquire notes issued by VIE | $ 68,000,000 | ||
Percentage of senior notes acquired by the parent | 100.00% | ||
RREF CDO 2007-1 Senior Notes [Member] | Resource Real Estate Funding 2007-1 CDO Investor LLC [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 265,600,000 | ||
Payments by parent to acquire notes issued by VIE | 41,300,000 | ||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class A-1 [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 180,000,000 | ||
Basis spread on variable rate | 0.28% | ||
Debt instrument, amount, reissuance | $ 25,000,000 | ||
Reissuance price to par | 92.53% | ||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class A-1R [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 50,000,000 | ||
Basis spread on variable rate | 0.32% | ||
Commitment fee percentage | 0.18% | ||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class A-2 [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 57,500,000 | ||
Basis spread on variable rate | 0.46% | ||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class B [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 22,500,000 | ||
Basis spread on variable rate | 0.80% | ||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class C [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 7,000,000 | ||
Interest rate at period end | 6.423% | ||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class D [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 26,800,000 | ||
Basis spread on variable rate | 0.95% | ||
Debt instrument, amount, reissuance | $ 11,800,000 | $ 15,000,000 | |
Reissuance price to par | 90.18% | 86.85% | |
Gain (loss) on reissuance of debt instrument | $ 1,200,000 | $ 3,800,000 | |
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class E [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 11,900,000 | ||
Basis spread on variable rate | 1.15% | ||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class F [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 11,900,000 | ||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class G [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 11,300,000 | ||
Basis spread on variable rate | 1.55% | ||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class H [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 11,300,000 | ||
Basis spread on variable rate | 1.30% | ||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class J [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 11,300,000 | ||
Basis spread on variable rate | 2.95% | ||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class K [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 10,000,000 | ||
Basis spread on variable rate | 3.25% | ||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class L [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 18,800,000 | ||
Interest rate at period end | 7.50% | ||
RREF CDO 2007-1 Senior Notes [Member] | Senior Notes Class M [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 28,800,000 | ||
Interest rate at period end | 8.50% |
BORROWINGS (RCC CRE Notes 2013)
BORROWINGS (RCC CRE Notes 2013) (Details) - USD ($) | 1 Months Ended | ||||
Dec. 31, 2013 | Jun. 30, 2007 | Dec. 31, 2015 | Feb. 24, 2015 | Jul. 30, 2014 | |
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.30% | ||||
RCC CRE Notes 2015 [Member] | |||||
Debt Instrument [Line Items] | |||||
Closing transaction amount | $ 346,200,000 | ||||
RCC CRE Notes 2013 [Member] | |||||
Debt Instrument [Line Items] | |||||
Closing transaction amount | $ 307,800,000 | $ 307,800,000 | $ 353,900,000 | ||
Face amount of debt issued | $ 260,800,000 | ||||
Percentage of senior notes acquired by the parent | 100.00% | ||||
Payments by parent to acquire notes issued by VIE | $ 30,000,000 | ||||
RCC CRE Notes 2013 [Member] | RCC CRE Notes 2012 Investor, LLC [Member] | |||||
Debt Instrument [Line Items] | |||||
Purchased equity interests | 16,900,000 | ||||
RCC CRE Notes 2013 [Member] | Senior Notes Class D [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 13,800,000 | ||||
Percentage of senior notes acquired by the parent | 100.00% | ||||
Description of variable rate basis | one-month LIBOR | ||||
Basis spread on variable rate | 4.50% | ||||
RCC CRE Notes 2013 [Member] | Senior Notes Class A [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 136,900,000 | ||||
Description of variable rate basis | one-month LIBOR | ||||
Basis spread on variable rate | 1.30% | ||||
RCC CRE Notes 2013 [Member] | Senior Notes Class A-S [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 78,500,000 | ||||
Description of variable rate basis | one-month LIBOR | ||||
Basis spread on variable rate | 2.15% | ||||
RCC CRE Notes 2013 [Member] | Senior Notes Class B [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 30,800,000 | ||||
Description of variable rate basis | one-month LIBOR | ||||
Basis spread on variable rate | 2.85% | ||||
RCC CRE Notes 2013 [Member] | Senior Notes Class C [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 14,600,000 | ||||
Description of variable rate basis | one-month LIBOR | ||||
Basis spread on variable rate | 3.50% | ||||
RCC CRE Notes 2013 [Member] | Senior Notes Class E [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 9,200,000 | ||||
Description of variable rate basis | one-month LIBOR | ||||
Basis spread on variable rate | 5.50% | ||||
RCC CRE Notes 2013 [Member] | Senior Notes Class F [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 6,900,000 | ||||
Description of variable rate basis | one-month LIBOR | ||||
Basis spread on variable rate | 6.50% |
BORROWINGS (RCC CRE 2014) (Deta
BORROWINGS (RCC CRE 2014) (Details) - USD ($) | 1 Months Ended | |
Jul. 31, 2014 | Jun. 30, 2007 | |
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.30% | |
RCC CRE Notes 2014 [Member] | ||
Debt Instrument [Line Items] | ||
Closing transaction amount | $ 353,900,000 | |
Face amount of debt issued | $ 253,300,000 | |
Percentage of senior notes acquired by the parent | 100.00% | |
Ownership interests in variable interest entity | 100.00% | |
RCC CRE Notes 2014 [Member] | Senior Notes Class C [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 17,700,000 | |
Basis spread on variable rate | 4.25% | |
RCC CRE Notes 2014 [Member] | Senior Notes Class A [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 196,400,000 | |
Basis spread on variable rate | 1.05% | |
RCC CRE Notes 2014 [Member] | Senior Notes Class B [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 38,900,000 | |
Basis spread on variable rate | 2.50% | |
RCC Commercial [Member] | RCC CRE Notes 2014 [Member] | ||
Debt Instrument [Line Items] | ||
Payments by parent to acquire notes issued by VIE | $ 100,900,000 | |
RCC Commercial [Member] | RCC CRE Notes 2014 [Member] | Senior Notes Class C [Member] | ||
Debt Instrument [Line Items] | ||
Payments by parent to acquire notes issued by VIE | $ 17,700,000 |
BORROWINGS (RCC CRE 2015) (Deta
BORROWINGS (RCC CRE 2015) (Details) - USD ($) | 1 Months Ended | 2 Months Ended | |||||
Aug. 31, 2015 | Feb. 28, 2015 | Dec. 31, 2013 | Jun. 30, 2007 | Sep. 30, 2015 | Dec. 31, 2015 | Jul. 30, 2014 | |
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.30% | ||||||
RCC CRE Notes 2015-CRE3 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Closing transaction amount | $ 346,200,000 | ||||||
Face amount of debt issued | $ 282,100,000 | ||||||
Percentage of senior notes acquired by the parent | 100.00% | ||||||
Ownership interests in variable interest entity | 100.00% | ||||||
RCC CRE Notes 2015-CRE3 [Member] | Senior Notes Class E [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | $ 20,800,000 | ||||||
Basis spread on variable rate | 4.75% | ||||||
RCC CRE Notes 2015-CRE3 [Member] | Senior Notes Class F [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | $ 15,600,000 | ||||||
Basis spread on variable rate | 5.50% | ||||||
RCC CRE Notes 2015-CRE3 [Member] | Senior Notes Class A [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | $ 193,900,000 | ||||||
Basis spread on variable rate | 1.40% | ||||||
RCC CRE Notes 2015-CRE3 [Member] | Senior Notes Class A-S [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | $ 17,300,000 | ||||||
Basis spread on variable rate | 1.65% | ||||||
RCC CRE Notes 2015-CRE3 [Member] | Senior Notes Class B [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | $ 19,500,000 | ||||||
Basis spread on variable rate | 2.40% | ||||||
RCC CRE Notes 2015-CRE3 [Member] | Senior Notes Class C [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | $ 20,800,000 | ||||||
Basis spread on variable rate | 3.15% | ||||||
RCC CRE Notes 2015-CRE3 [Member] | Senior Notes Class D [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | $ 30,700,000 | ||||||
Basis spread on variable rate | 4.00% | ||||||
RCC CRE Notes 2013 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Closing transaction amount | $ 307,800,000 | $ 307,800,000 | $ 353,900,000 | ||||
Face amount of debt issued | $ 260,800,000 | ||||||
Percentage of senior notes acquired by the parent | 100.00% | ||||||
Payments by parent to acquire notes issued by VIE | $ 30,000,000 | ||||||
RCC CRE Notes 2013 [Member] | Senior Notes Class E [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | $ 9,200,000 | ||||||
Basis spread on variable rate | 5.50% | ||||||
RCC CRE Notes 2013 [Member] | Senior Notes Class F [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | $ 6,900,000 | ||||||
Basis spread on variable rate | 6.50% | ||||||
RCC CRE Notes 2013 [Member] | Senior Notes Class A [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | $ 136,900,000 | ||||||
Basis spread on variable rate | 1.30% | ||||||
RCC CRE Notes 2013 [Member] | Senior Notes Class A-S [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | $ 78,500,000 | ||||||
Basis spread on variable rate | 2.15% | ||||||
RCC CRE Notes 2013 [Member] | Senior Notes Class B [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | $ 30,800,000 | ||||||
Basis spread on variable rate | 2.85% | ||||||
RCC CRE Notes 2013 [Member] | Senior Notes Class C [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | $ 14,600,000 | ||||||
Basis spread on variable rate | 3.50% | ||||||
RCC CRE Notes 2013 [Member] | Senior Notes Class D [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | $ 13,800,000 | ||||||
Percentage of senior notes acquired by the parent | 100.00% | ||||||
Basis spread on variable rate | 4.50% | ||||||
RCC CRE Notes 2015 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Closing transaction amount | $ 312,900,000 | ||||||
Face amount of debt issued | $ 223,700,000 | ||||||
Percentage of senior notes acquired by the parent | 100.00% | ||||||
RCC CRE Notes 2015 [Member] | Senior Notes Class A [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | $ 179,900,000 | ||||||
Basis spread on variable rate | 1.40% | ||||||
RCC CRE Notes 2015 [Member] | Senior Notes Class B [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | $ 43,800,000 | ||||||
Basis spread on variable rate | 3.00% | ||||||
RCC CRE Notes 2015 [Member] | Senior Notes Class C [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | $ 26,600,000 | ||||||
Basis spread on variable rate | 4.75% | ||||||
RCC Commercial [Member] | RCC CRE Notes 2015-CRE3 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Payments by parent to acquire notes issued by VIE | $ 27,700,000 | ||||||
RCC Commercial [Member] | RCC CRE Notes 2015-CRE3 [Member] | Senior Notes Class E [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Payments by parent to acquire notes issued by VIE | 20,800,000 | ||||||
RCC Commercial [Member] | RCC CRE Notes 2015-CRE3 [Member] | Senior Notes Class F [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Payments by parent to acquire notes issued by VIE | $ 15,600,000 | ||||||
RCC Commercial [Member] | RCC CRE Notes 2015 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Payments by parent to acquire notes issued by VIE | $ 62,600,000 | ||||||
Ownership interests in variable interest entity | 100.00% | ||||||
RCC Commercial [Member] | RCC CRE Notes 2015 [Member] | Senior Notes Class E [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Payments by parent to acquire notes issued by VIE | $ 26,600,000 |
BORROWINGS (Apidos CDO III) (De
BORROWINGS (Apidos CDO III) (Details) - USD ($) | 1 Months Ended | |
Jun. 30, 2007 | May. 31, 2006 | |
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.30% | |
Apidos CDO III Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Closing transaction amount | $ 285,500,000 | |
Face amount of debt issued | 262,500,000 | |
Apidos CDO III Senior Notes [Member] | RCC Commercial [Member] | ||
Debt Instrument [Line Items] | ||
Payments by parent to acquire notes issued by VIE | $ 23,000,000 | |
Percentage of senior notes acquired by the parent | 100.00% | |
Apidos CDO III Senior Notes [Member] | Senior Notes Class A-1 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 212,000,000 | |
Basis spread on variable rate | 0.26% | |
Apidos CDO III Senior Notes [Member] | Senior Notes Class A-2 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 19,000,000 | |
Basis spread on variable rate | 0.45% | |
Apidos CDO III Senior Notes [Member] | Senior Notes Class B [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 15,000,000 | |
Basis spread on variable rate | 0.75% | |
Apidos CDO III Senior Notes [Member] | Senior Notes Class C [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 10,500,000 | |
Basis spread on variable rate | 1.75% | |
Apidos CDO III Senior Notes [Member] | Senior Notes Class D [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 6,000,000 | |
Basis spread on variable rate | 4.25% |
BORROWINGS (Apidos Cinco CDO) (
BORROWINGS (Apidos Cinco CDO) (Details) - USD ($) | 1 Months Ended | |
Jun. 30, 2007 | May. 31, 2007 | |
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.30% | |
Apidos Cinco CDO Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Closing transaction amount | $ 350,000,000 | |
Percentage of senior notes acquired by the parent | 100.00% | |
Basis spread on variable rate | 0.32% | |
Apidos Cinco CDO Senior Notes [Member] | Senior Notes Class A-1 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 37,500,000 | |
Basis spread on variable rate | 0.24% | |
Apidos Cinco CDO Senior Notes [Member] | Senior Notes Class A-2a [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 200,000,000 | |
Basis spread on variable rate | 0.23% | |
Apidos Cinco CDO Senior Notes [Member] | Senior Notes Class A-2b [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 22,500,000 | |
Apidos Cinco CDO Senior Notes [Member] | Senior Notes Class A-3 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 19,000,000 | |
Basis spread on variable rate | 0.42% | |
Apidos Cinco CDO Senior Notes [Member] | Senior Notes Class B [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 18,000,000 | |
Basis spread on variable rate | 0.80% | |
Apidos Cinco CDO Senior Notes [Member] | Senior Notes Class C [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 14,000,000 | |
Basis spread on variable rate | 2.25% | |
Apidos Cinco CDO Senior Notes [Member] | Senior Notes Class D [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 11,000,000 | |
Basis spread on variable rate | 4.25% | |
Apidos Cinco CDO Senior Notes [Member] | RCC Commercial [Member] | ||
Debt Instrument [Line Items] | ||
Payments by parent to acquire notes issued by VIE | $ 28,000,000 | |
Apidos Cinco CDO Senior Notes [Member] | Apidos Cinco CDO Ltd [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 322,000,000 |
BORROWINGS (Moselle CLO S.A.) (
BORROWINGS (Moselle CLO S.A.) (Details) | 1 Months Ended | ||
Feb. 28, 2014USD ($) | Jun. 30, 2007 | Feb. 28, 2014EUR (€) | |
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.30% | ||
Moselle CLO S.A. Senior Notes [Member] | Senior Notes Class A-1E [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | € | € 24,900,000 | ||
Basis spread on variable rate | 0.25% | ||
Moselle CLO S.A. Senior Notes [Member] | Senior Notes Class A-1L [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ | $ 24,900,000 | ||
Basis spread on variable rate | 0.25% | ||
Moselle CLO S.A. Senior Notes [Member] | Senior Notes Class A-1LE [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 10,300,000 | 10,300,000 | |
Basis spread on variable rate | 0.31% | ||
Moselle CLO S.A. Senior Notes [Member] | Senior Notes Class A-1LE USD [Member] [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.31% | ||
Moselle CLO S.A. Senior Notes [Member] | Senior Notes Class A-2E [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | € | 13,800,000 | ||
Basis spread on variable rate | 0.40% | ||
Moselle CLO S.A. Senior Notes [Member] | Senior Notes Class A-2L [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ | $ 13,800,000 | ||
Basis spread on variable rate | 0.40% | ||
Moselle CLO S.A. Senior Notes [Member] | Senior Notes Class A-3E [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | € | 6,800,000 | ||
Basis spread on variable rate | 0.70% | ||
Moselle CLO S.A. Senior Notes [Member] | Senior Notes Class A-3L [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ | $ 6,800,000 | ||
Basis spread on variable rate | 0.75% | ||
Moselle CLO S.A. Senior Notes [Member] | Senior Notes Class B-1E [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | € | € 16,000,000 | ||
Basis spread on variable rate | 1.80% | ||
Moselle CLO S.A. Senior Notes [Member] | Senior Notes Class B-1L [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ | $ 16,000,000 | ||
Basis spread on variable rate | 1.85% | ||
Moselle CLO S.A. Senior Notes [Member] | Class 1 Subordinated Notes [Member] | |||
Debt Instrument [Line Items] | |||
Percentage of outstanding notes purchased | 100.00% | ||
Moselle CLO S.A. Senior Notes [Member] | Class 2 Subordinated Notes [Member] | |||
Debt Instrument [Line Items] | |||
Percentage of outstanding notes purchased | 67.90% | ||
Moselle CLO [Member] | |||
Debt Instrument [Line Items] | |||
Ownership percentage in VIE | 88.60% |
BORROWINGS (Unsecured Junior Su
BORROWINGS (Unsecured Junior Subordinated Debentures) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 15, 2015 | Apr. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2006 | |||
Debt Instrument [Line Items] | |||||||
Investments in unconsolidated subsidiaries | $ 50,030 | [1] | $ 1,250 | $ 750 | $ 59,827 | [1] | |
Unamortized Issuance Costs and Discounts | 25,793 | 18,030 | |||||
Unsecured Junior Subordinated Debentures [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized Issuance Costs and Discounts | 135 | 343 | |||||
Unsecured Junior Subordinated Debentures [Member] | Interest in RCT II [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Investments in unconsolidated subsidiaries | 774 | ||||||
Unsecured Junior Subordinated Debentures [Member] | Interest in RCT I [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Investments in unconsolidated subsidiaries | $ 774 | ||||||
Unsecured Junior Subordinated Debentures [Member] | RCT I entity [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | $ 25,800 | ||||||
Debt issuance costs, amortization period (in years) | 10 years | ||||||
Unamortized Issuance Costs and Discounts | $ 54 | $ 160 | |||||
Interest rate at period end | 4.55% | 4.21% | |||||
Unsecured Junior Subordinated Debentures [Member] | RCT II entity [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt issued | $ 25,800 | ||||||
Debt issuance costs, amortization period (in years) | 10 years | ||||||
Unamortized Issuance Costs and Discounts | $ 80 | $ 183 | |||||
Interest rate at period end | 4.25% | 4.18% | |||||
[1] | December 31, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $95 $25 Restricted cash$39,061 $121,247 Investments securities available-for-sale, pledged as collateral, at fair value66,137 119,203 Loans held for sale1,475 282Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,416,441 1,261,137 Interest receivable6,592 8,941 Prepaid expenses238 221 Principal paydown receivable17,800 25,767 Other assets833 (12) Total assets of consolidated VIEs$1,548,672 $1,536,811 |
BORROWINGS (6% Convertible Seni
BORROWINGS (6% Convertible Senior Notes) (Details) | Oct. 21, 2013USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jan. 31, 2015 |
Debt Instrument [Line Items] | |||||
Reissuance of debt | $ 16,597,000 | $ 52,663,000 | $ 0 | ||
Unamortized Issuance Costs and Discounts | $ 25,793,000 | $ 18,030,000 | |||
Convertible Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 8.00% | ||||
6% Convertible Senior Notes [Member] | Convertible Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 115,000,000 | ||||
Debt instrument, interest rate, stated percentage | 6.00% | ||||
Reissuance of debt | $ 111,100,000 | ||||
Unamortized discount | $ 4,900,000 | ||||
Shares issuable upon conversion | 150.1502 | ||||
Conversion ratio | 37.5376 | ||||
Conversion price per common share | $ / shares | $ 6.66 | $ 26.64 |
BORROWINGS (8% Convertible Seni
BORROWINGS (8% Convertible Senior Notes) (Details) | Feb. 01, 2015$ / shares | Jan. 31, 2015USD ($)$ / shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Debt Instrument [Line Items] | |||||
Unamortized Issuance Costs and Discounts | $ 25,793,000 | $ 18,030,000 | |||
Reissuance of debt | $ 16,597,000 | $ 52,663,000 | $ 0 | ||
Convertible Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 8.00% | ||||
Convertible Debt [Member] | 8% Convertible Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 100,000,000 | ||||
Conversion ratio | 46.86035 | 187.4414 | |||
Conversion price per common share | $ / shares | $ 21.36 | $ 5.34 | |||
Unamortized discount | $ 1,000,000 | ||||
Unamortized Issuance Costs and Discounts | 2,100,000 | ||||
Reissuance of debt | 97,000,000 | ||||
Discount adjustment, fair value without conversion feature | $ 2,500,000 |
BORROWINGS (Repurchase and Cred
BORROWINGS (Repurchase and Credit Facilities) (Details) | Dec. 31, 2015USD ($)Loan | Nov. 20, 2015USD ($) | Dec. 31, 2014USD ($)Loan |
Debt Instrument [Line Items] | |||
Weighted Average Interest Rate | 2.89% | 2.09% | |
Unamortized Issuance Costs and Discounts | $ 25,793,000 | $ 18,030,000 | |
RCC Real Estate [Member] | Deutsche Bank Securities, LLC [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized Issuance Costs and Discounts | 0 | 268,000 | |
Repurchase Agreements [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | 418,836,000 | 399,662,000 | |
Value of Collateral | 643,232,000 | 565,554,000 | |
Repurchase Agreements [Member] | Wells Fargo Bank, National Association [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | 42,030,000 | 61,189,000 | |
Value of Collateral | $ 59,841,000 | $ 95,511,000 | |
Number of Positions as Collateral | Loan | 166 | 104 | |
Weighted Average Interest Rate | 3.03% | 2.75% | |
Repurchase Agreements [Member] | Wells Fargo Securities, LLC [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | $ 13,548,000 | $ 10,442,000 | |
Value of Collateral | $ 19,829,000 | $ 17,695,000 | |
Number of Positions as Collateral | Loan | 3 | 1 | |
Weighted Average Interest Rate | 1.93% | 1.66% | |
Repurchase Agreements [Member] | Deutsche Bank Securities, LLC [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | $ 43,859,000 | $ 33,783,000 | |
Value of Collateral | $ 59,518,000 | $ 44,751,000 | |
Number of Positions as Collateral | Loan | 17 | 8 | |
Weighted Average Interest Rate | 2.10% | 1.62% | |
Repurchase Agreements [Member] | New Century Bank [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | $ 43,789,000 | $ 41,387,000 | |
Value of Collateral | $ 61,111,000 | $ 51,961,000 | |
Number of Positions as Collateral | Loan | 199 | 158 | |
Weighted Average Interest Rate | 3.17% | 2.82% | |
Trust Certificates - Term Repurchase Facility [Member] | Repurchase Agreements [Member] | RSO Repo SPE Trust 2015 [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | $ 26,244,000 | $ 26,598,000 | $ 0 |
Value of Collateral | $ 89,181,000 | $ 0 | |
Number of Positions as Collateral | Loan | 1 | 0 | |
Weighted Average Interest Rate | 5.85% | 0.00% | |
Unamortized Issuance Costs and Discounts | $ 415,000 | $ 0 | |
CMBS - Term Repurchase Facilities [Member] | Repurchase Agreements [Member] | Wells Fargo Bank, National Association [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | 25,656,000 | 24,967,000 | |
Value of Collateral | $ 31,650,000 | $ 30,180,000 | |
Number of Positions as Collateral | Loan | 21 | 33 | |
Weighted Average Interest Rate | 1.57% | 1.35% | |
Unamortized Issuance Costs and Discounts | $ 0 | $ 0 | |
CRE - Term Repurchase Facility [Member] | Repurchase Agreements [Member] | Wells Fargo Bank, National Association [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | 123,937,000 | 179,762,000 | |
Value of Collateral | $ 179,169,000 | $ 258,223,000 | |
Number of Positions as Collateral | Loan | 9 | 15 | |
Weighted Average Interest Rate | 2.39% | 2.38% | |
CRE - Term Repurchase Facility [Member] | Repurchase Agreements [Member] | Deutsche Bank AG [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | $ 0 | $ 25,920,000 | |
Value of Collateral | $ 0 | $ 39,348,000 | |
Number of Positions as Collateral | Loan | 0 | 2 | |
Weighted Average Interest Rate | 0.00% | 2.78% | |
CRE - Term Repurchase Facility [Member] | Repurchase Agreements [Member] | Morgan Stanley Bank [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | $ 98,991,000 | $ 0 | |
Value of Collateral | $ 142,098,000 | $ 0 | |
Number of Positions as Collateral | Loan | 7 | 0 | |
Weighted Average Interest Rate | 2.96% | 0.00% | |
Unamortized Issuance Costs and Discounts | $ 1,700,000 | $ 0 | |
RMBS - Term Repurchase Facility [Member] | Repurchase Agreements [Member] | Wells Fargo Bank, National Association [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Borrowings | 782,000 | 22,212,000 | |
Value of Collateral | $ 835,000 | $ 27,885,000 | |
Number of Positions as Collateral | Loan | 1 | 6 | |
Weighted Average Interest Rate | 2.75% | 1.16% | |
Unamortized Issuance Costs and Discounts | $ 0 | $ 36,000 | |
RMBS - Term Repurchase Facility [Member] | |||
Debt Instrument [Line Items] | |||
Weighted Average Interest Rate | 2.75% | 1.16% | |
Unamortized Issuance Costs and Discounts | $ 0 | $ 36,000 | |
CRE - Term Repurchase Facility [Member] | |||
Debt Instrument [Line Items] | |||
Weighted Average Interest Rate | 2.64% | 2.43% | |
Unamortized Issuance Costs and Discounts | $ 2,418,000 | $ 1,958,000 | |
CRE - Term Repurchase Facility [Member] | RCC Real Estate [Member] | Wells Fargo Bank, National Association [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized Issuance Costs and Discounts | $ 675,000 | $ 1,700,000 | |
CMBS - Term Repurchase Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Weighted Average Interest Rate | 1.57% | 1.35% | |
Unamortized Issuance Costs and Discounts | $ 2,000 | $ 0 |
BORROWINGS (Linked Transactions
BORROWINGS (Linked Transactions) (Details) $ in Thousands | Dec. 31, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan | |
Debt Instrument [Line Items] | |||
Value of Collateral Under Linked Transactions | [1] | $ 0 | $ 15,367 |
Weighted Average Interest Rate of Linked Transactions | 2.89% | 2.09% | |
Repurchase Agreements [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 418,836 | $ 399,662 | |
Repurchase Agreements [Member] | Wells Fargo Bank, National Association [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 42,030 | $ 61,189 | |
Number of Positions as Collateral Under Linked Transactions | Loan | 166 | 104 | |
Weighted Average Interest Rate of Linked Transactions | 3.03% | 2.75% | |
Repurchase Agreements [Member] | Wells Fargo Securities, LLC [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 13,548 | $ 10,442 | |
Number of Positions as Collateral Under Linked Transactions | Loan | 3 | 1 | |
Weighted Average Interest Rate of Linked Transactions | 1.93% | 1.66% | |
Repurchase Agreements [Member] | CMBS - Term Repurchase Facilities [Member] | Wells Fargo Bank, National Association [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 25,656 | $ 24,967 | |
Number of Positions as Collateral Under Linked Transactions | Loan | 21 | 33 | |
Weighted Average Interest Rate of Linked Transactions | 1.57% | 1.35% | |
Linked Transactions [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 33,397 | ||
Value of Collateral Under Linked Transactions | 48,605 | ||
Linked Transactions [Member] | CMBS - Term Repurchase Facilities [Member] | Wells Fargo Bank, National Association [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | 4,941 | ||
Value of Collateral Under Linked Transactions | $ 6,371 | ||
Number of Positions as Collateral Under Linked Transactions | Loan | 7 | ||
Weighted Average Interest Rate of Linked Transactions | 1.67% | ||
Linked Transactions [Member] | Repurchase Agreements [Member] | JP Morgan Securities, LLC [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 4,108 | ||
Value of Collateral Under Linked Transactions | $ 6,233 | ||
Number of Positions as Collateral Under Linked Transactions | Loan | 2 | ||
Weighted Average Interest Rate of Linked Transactions | 1.37% | ||
Linked Transactions [Member] | Repurchase Agreements [Member] | Wells Fargo Securities, LLC [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 24,348 | ||
Value of Collateral Under Linked Transactions | $ 36,001 | ||
Number of Positions as Collateral Under Linked Transactions | Loan | 10 | ||
Weighted Average Interest Rate of Linked Transactions | 1.57% | ||
[1] | December 31, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $95 $25 Restricted cash$39,061 $121,247 Investments securities available-for-sale, pledged as collateral, at fair value66,137 119,203 Loans held for sale1,475 282Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,416,441 1,261,137 Interest receivable6,592 8,941 Prepaid expenses238 221 Principal paydown receivable17,800 25,767 Other assets833 (12) Total assets of consolidated VIEs$1,548,672 $1,536,811 |
BORROWINGS (Amount at Risk Unde
BORROWINGS (Amount at Risk Under Repurchase Facilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 10 years 5 months | 10 years |
Weighted Average Interest Rate | 2.89% | 2.09% |
CMBS - Term Repurchase Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 18 days | 20 days |
Weighted Average Interest Rate | 1.57% | 1.35% |
RMBS - Term Repurchase Facility [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 264 days | 1 day |
Weighted Average Interest Rate | 2.75% | 1.16% |
CRE - Term Repurchase Facility [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 17 days | 20 days |
Weighted Average Interest Rate | 2.64% | 2.43% |
Trust Certificates - Term Repurchase Facility [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 2 years 11 months | |
Weighted Average Interest Rate | 5.85% | |
Repurchase Agreements [Member] | Wells Fargo Bank, National Association [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 3.03% | 2.75% |
Repurchase Agreements [Member] | Wells Fargo Securities, LLC [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 1.93% | 1.66% |
Repurchase Agreements [Member] | Deutsche Bank Securities, LLC [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 2.10% | 1.62% |
Repurchase Agreements [Member] | New Century Bank [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 3.17% | 2.82% |
Linked and Non-linked Transactions [Member] | CMBS - Term Repurchase Facilities [Member] | Wells Fargo Bank, National Association [Member] | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 6,053 | $ 6,486 |
Weighted Average Remaining Maturity | 18 days | 20 days |
Weighted Average Interest Rate | 1.57% | 1.35% |
Linked and Non-linked Transactions [Member] | RMBS - Term Repurchase Facility [Member] | Wells Fargo Bank, National Association [Member] | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 54 | $ 5,017 |
Weighted Average Remaining Maturity | 264 days | 1 day |
Weighted Average Interest Rate | 2.75% | 1.16% |
Linked and Non-linked Transactions [Member] | CRE - Term Repurchase Facility [Member] | Wells Fargo Bank, National Association [Member] | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 54,674 | $ 76,148 |
Weighted Average Remaining Maturity | 18 days | 20 days |
Weighted Average Interest Rate | 2.39% | 2.38% |
Linked and Non-linked Transactions [Member] | CRE - Term Repurchase Facility [Member] | Deutsche Bank Securities, LLC [Member] | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 41,248 | |
Weighted Average Remaining Maturity | 15 days | |
Weighted Average Interest Rate | 2.96% | |
Linked and Non-linked Transactions [Member] | Trust Certificates - Term Repurchase Facility [Member] | RSO Repo SPE Trust 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 62,575 | |
Weighted Average Remaining Maturity | 2 years 325 days | |
Weighted Average Interest Rate | 5.85% | |
Linked and Non-linked Transactions [Member] | Repurchase Agreements [Member] | Wells Fargo Bank, National Association [Member] | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 17,811 | $ 6,902 |
Weighted Average Remaining Maturity | 134 days | 183 days |
Weighted Average Interest Rate | 3.03% | 2.75% |
Linked and Non-linked Transactions [Member] | Repurchase Agreements [Member] | Deutsche Bank AG [Member] | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 13,017 | |
Weighted Average Remaining Maturity | 19 days | |
Weighted Average Interest Rate | 2.78% | |
Linked and Non-linked Transactions [Member] | Repurchase Agreements [Member] | Wells Fargo Securities, LLC [Member] | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 6,288 | $ 2,127 |
Weighted Average Remaining Maturity | 11 days | 9 days |
Weighted Average Interest Rate | 1.93% | 1.66% |
Linked and Non-linked Transactions [Member] | Repurchase Agreements [Member] | Deutsche Bank Securities, LLC [Member] | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 16,330 | $ 11,810 |
Weighted Average Remaining Maturity | 20 days | 20 days |
Weighted Average Interest Rate | 2.05% | 1.62% |
Linked and Non-linked Transactions [Member] | Repurchase Agreements [Member] | New Century Bank [Member] | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 17,322 | $ 853 |
Weighted Average Remaining Maturity | 124 days | 242 days |
Weighted Average Interest Rate | 3.17% | 2.82% |
BORROWINGS (Term Repurchase Fac
BORROWINGS (Term Repurchase Facilities) (Details) | Nov. 20, 2015USD ($) | Sep. 10, 2015 | Apr. 10, 2015option | Jul. 19, 2013USD ($)option | Apr. 02, 2013USD ($)option | Jun. 30, 2014USD ($) | Feb. 28, 2011USD ($) | Jun. 30, 2007 | Dec. 31, 2015USD ($) | Sep. 20, 2015Amendment | Dec. 31, 2014USD ($) | Nov. 01, 2014USD ($) | Oct. 31, 2014USD ($) | Apr. 01, 2013USD ($) | Feb. 27, 2012 |
Debt Instrument [Line Items] | |||||||||||||||
Line of credit facility term period | 1 year | ||||||||||||||
Line Of credit facility extension period | 1 year | ||||||||||||||
Number of amendments to facility | Amendment | 5 | ||||||||||||||
Debt instrument term, option to extend | 1 year | ||||||||||||||
Basis spread on variable rate | 2.30% | ||||||||||||||
Debt instrument term, number of options to extend | option | 2 | ||||||||||||||
Line of credit facility, increase borrowing capacity | $ 400,000,000 | $ 150,000,000 | |||||||||||||
RCC Real Estate [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum amount of facility | $ 250,000,000 | ||||||||||||||
Loan origination fee | 0.375% | ||||||||||||||
Wells Fargo Bank, National Association [Member] | RMBS - Term Repurchase Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum amount of facility | $ 285,000,000 | $ 0 | |||||||||||||
Line of credit facility, interest rate during period (in hundredths) | 1.45% | ||||||||||||||
Maximum borrowing threshold, percent | 40.00% | ||||||||||||||
Basis spread on variable rate | 0.25% | ||||||||||||||
Wells Fargo Bank, National Association [Member] | Trust Certificates - Term Repurchase Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum amount of facility | $ 30,000,000 | ||||||||||||||
Wells Fargo Bank, National Association [Member] | Jumbo Loans - Term Repurchase Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of credit facility, interest rate during period (in hundredths) | 3.00% | ||||||||||||||
Wells Fargo Bank, National Association [Member] | RCC Real Estate And RCC Commercial [Member] | CMBS - Term Repurchase Facilities [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument term | 2 years | ||||||||||||||
Debt instrument term, option to extend | 1 year | ||||||||||||||
Description of variable rate basis | one-month LIBOR | ||||||||||||||
Basis spread on variable rate | 1.00% | ||||||||||||||
Structuring fee, percent | 0.25% | ||||||||||||||
Line of credit facility, extension fee percentage (in hundredths) | 0.25% | ||||||||||||||
Wells Fargo Bank, National Association [Member] | RCC Real Estate [Member] | CRE - Term Repurchase Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum amount of facility | $ 150,000,000 | ||||||||||||||
Debt instrument term | 18 months | ||||||||||||||
Debt instrument term, option to extend | 1 year | ||||||||||||||
Structuring fee | $ 101,000 | ||||||||||||||
Extension fee | $ 938,000 | ||||||||||||||
Debt instrument term, number of options to extend | option | 2 | ||||||||||||||
Fee amount | $ 1,600,000 | ||||||||||||||
Deutsche Bank AG [Member] | RCC Real Estate SPE 5 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum amount of facility | $ 200,000,000 | ||||||||||||||
Debt instrument term | 12 months | ||||||||||||||
Debt instrument term, option to extend | 1 year | ||||||||||||||
Structuring fee, percent | 0.25% | ||||||||||||||
Line of credit facility, extension fee percentage (in hundredths) | 0.25% | ||||||||||||||
Debt instrument term, number of options to extend | option | 2 | ||||||||||||||
Maximum [Member] | Wells Fargo Bank, National Association [Member] | RCC Real Estate And RCC Commercial [Member] | CMBS - Term Repurchase Facilities [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Face amount of debt issued | $ 100,000,000 | ||||||||||||||
RCC Real Estate SPE 6 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Origination fee with establishment of line of credit facility (in hundredths) | 0.65% | ||||||||||||||
RCC Real Estate SPE 6 [Member] | Morgan Stanley Bank [Member] | RMBS - Term Repurchase Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum amount of facility | 250,000,000 | ||||||||||||||
Debt instrument term | 3 years | ||||||||||||||
Debt instrument term, option to extend | 1 year | ||||||||||||||
Judgment allowed against Company | 15,000,000 | ||||||||||||||
Judgment allowed against subsidiary | 250,000 | ||||||||||||||
RCC Real Estate SPE 6 [Member] | Maximum [Member] | Morgan Stanley Bank [Member] | RMBS - Term Repurchase Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 2.75% | ||||||||||||||
Unused fee, percent | 0.50% | ||||||||||||||
Unused fee, outstanding borrowing threshold, percent | 65.00% | ||||||||||||||
RCC Real Estate SPE 6 [Member] | Minimum [Member] | Morgan Stanley Bank [Member] | RMBS - Term Repurchase Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 2.25% | ||||||||||||||
Unused fee, percent | 0.25% | ||||||||||||||
Unused fee, outstanding borrowing threshold, percent | 50.00% | ||||||||||||||
Repurchase Agreements [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Face amount of debt issued | 418,836,000 | $ 399,662,000 | |||||||||||||
Repurchase Agreements [Member] | Wells Fargo Bank, National Association [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Face amount of debt issued | 42,030,000 | 61,189,000 | |||||||||||||
Interest Rate Swaps and Cap Agreements for Securities [Member] | Wells Fargo Bank, National Association [Member] | RCC Real Estate And RCC Commercial [Member] | CMBS - Term Repurchase Facilities [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument term | 2 years | ||||||||||||||
Trust Certificates - Term Repurchase Facility [Member] | Repurchase Agreements [Member] | RSO Repo SPE Trust 2015 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Face amount of debt issued | $ 26,598,000 | $ 26,244,000 | $ 0 | ||||||||||||
Debt instrument term | 3 years | ||||||||||||||
Basis spread on variable rate | 5.50% | ||||||||||||||
Default event, amount | $ 2,000,000 |
BORROWINGS (Residential Mortgag
BORROWINGS (Residential Mortgage Financing Agreements) (Details) | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2007 | Dec. 31, 2015USD ($)staffAmendment | Sep. 20, 2015Amendment | Dec. 31, 2014 | Apr. 02, 2013USD ($) | |
Debt Instrument [Line Items] | |||||
Number of amendments to facility | Amendment | 5 | ||||
Basis spread on variable rate | 2.30% | ||||
Judgment allowed against subsidiary or guarantor | $ 250,000 | ||||
Weighted Average Interest Rate of Linked Transactions | 2.89% | 2.09% | |||
RCC Real Estate [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum amount of facility | $ 250,000,000 | ||||
Primary Capital Advisors LLC [Member] | |||||
Debt Instrument [Line Items] | |||||
Weighted Average Interest Rate of Linked Transactions | 2.50% | ||||
Wells Fargo Securities, LLC [Member] | |||||
Debt Instrument [Line Items] | |||||
Weighted Average Interest Rate of Linked Transactions | 2.38% | ||||
New Century Bank [Member] | Primary Capital Advisors LLC [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum amount of facility | $ 65,000,000 | ||||
Number of amendments to facility | Amendment | 9 | ||||
Employment, number | staff | 2 | ||||
Judgment allowed against subsidiary | $ 10,000 | ||||
Judgment allowed against subsidiary or guarantor | 50,000 | ||||
Minimum maintenance balance required to be maintained | $ 1,500,000 | ||||
ViewPoint Bank, NA [Member] | Primary Capital Advisors LLC [Member] | |||||
Debt Instrument [Line Items] | |||||
Number of amendments to facility | Amendment | 4 | ||||
Wells Fargo Bank, National Association [Member] | Primary Capital Advisors LLC [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum amount of facility | $ 100,000,000 | ||||
Weighted Average Interest Rate of Linked Transactions | 3.00% | ||||
Minimum [Member] | New Century Bank [Member] | Primary Capital Advisors LLC [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.625% | ||||
Maximum [Member] | New Century Bank [Member] | Primary Capital Advisors LLC [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 4.875% |
BORROWINGS (Senior Secured Revo
BORROWINGS (Senior Secured Revolving Credit Facility) (Details) - USD ($) | Jun. 30, 2015 | Apr. 10, 2015 | Jun. 30, 2007 | Jun. 30, 2015 | Feb. 18, 2015 | Dec. 31, 2015 | Jul. 01, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Nov. 01, 2014 | Oct. 31, 2014 | Sep. 30, 2014 | Sep. 18, 2014 |
Debt Instrument [Line Items] | |||||||||||||
Line of credit facility, increase borrowing capacity | $ 400,000,000 | $ 150,000,000 | |||||||||||
Principal Outstanding | $ 1,921,081,000 | $ 1,734,901,000 | |||||||||||
Basis spread on variable rate | 2.30% | ||||||||||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 0.25% | ||||||||||||
Revolving Credit Facility [Member] | Northport LLC [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum amount of facility | $ 110,000,000 | ||||||||||||
Basis spread on variable rate | 0.25% | ||||||||||||
Remaining borrowing capacity | $ 35,000,000 | ||||||||||||
Revolving Credit Facility [Member] | Northport LLC [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 2.75% | ||||||||||||
Revolving Credit Facility [Member] | Northport LLC [Member] | Prime Rate [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 3.50% | ||||||||||||
Revolving Credit Facility [Member] | Northport LLC [Member] | Base Rate [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 1.75% | ||||||||||||
Revolving Credit Facility [Member] | Maximum [Member] | Northport LLC [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Commitment fee percentage, ramp up period | 0.50% | ||||||||||||
Unused capacity, commitment fee percentage, ramp up period | 35.00% | ||||||||||||
Origination fee with establishment of line of credit facility (in hundredths) | 1.00% | ||||||||||||
Revolving Credit Facility [Member] | Minimum [Member] | Northport LLC [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Commitment fee percentage, ramp up period | 0.375% | ||||||||||||
Senior Secured Revolving Credit Agreement [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal Outstanding | $ 190,000,000 | $ 113,500,000 | |||||||||||
Revolving Credit Facility [Member] | Northport LLC [Member] | Revolving Credit Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum amount of facility | $ 225,000,000 | $ 225,000,000 | $ 225,000,000 | $ 300,000,000 | |||||||||
Maximum borrowing capacity, effective commitment | $ 140,000,000 | $ 125,000,000 | |||||||||||
Line of credit facility, increase borrowing capacity | $ 85,000,000 | $ 85,000,000 |
BORROWINGS Contractual Commitme
BORROWINGS Contractual Commitments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | |
Total | $ 1,895,288 |
2,016 | 392,592 |
2,017 | 0 |
2,018 | 136,327 |
2,019 | 186,974 |
2020 and Thereafter | 1,179,395 |
Collateralized Debt Obligations [Member] | |
Debt Instrument [Line Items] | |
Total | 279,941 |
2,016 | 0 |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
2020 and Thereafter | 279,941 |
CRE - Term Repurchase Facility [Member] | |
Debt Instrument [Line Items] | |
Total | 752,640 |
2,016 | 0 |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
2020 and Thereafter | 752,640 |
Short-Term Repurchase Agreements [Member] | |
Debt Instrument [Line Items] | |
Total | 418,836 |
2,016 | 392,592 |
2,017 | 0 |
2,018 | 26,244 |
2,019 | 0 |
2020 and Thereafter | 0 |
Unsecured Junior Subordinated Debentures [Member] | |
Debt Instrument [Line Items] | |
Total | 51,413 |
2,016 | 0 |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
2020 and Thereafter | 51,413 |
Convertible Debt [Member] | 6% Convertible Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Total | 110,083 |
2,016 | 0 |
2,017 | 0 |
2,018 | 110,083 |
2,019 | 0 |
2020 and Thereafter | 0 |
Convertible Debt [Member] | 8% Convertible Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Total | 95,401 |
2,016 | 0 |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
2020 and Thereafter | 95,401 |
Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Total | 186,974 |
2,016 | 0 |
2,017 | 0 |
2,018 | 0 |
2,019 | 186,974 |
2020 and Thereafter | $ 0 |
STOCK INCENTIVE PLANS AND SH119
STOCK INCENTIVE PLANS AND SHARE ISSUANCE AND REPURCHASE Textuals (Details) - USD ($) $ / shares in Units, $ in Thousands | 5 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2015 | Aug. 03, 2015 | Mar. 21, 2013 | Jun. 23, 2011 | Jul. 31, 2007 | |
Class of Stock [Line Items] | ||||||
Shares issued from dividend reinvestment plan (in shares) | 20,963 | |||||
Dividend reinvestment plan | $ 328 | |||||
Repurchase program, authorized amount | $ 50,000 | |||||
Shares acquired | $ 25,900 | |||||
Shares, acquired (in shares) | 2,000,000 | |||||
Stock acquired, percentage | 5.90% | |||||
2005 Stock Incentive Plan [Member] | ||||||
Class of Stock [Line Items] | ||||||
Number of share options authorized for issue (in shares) | 383,333 | 383,333 | ||||
2007 Omnibus Equity Compensation Plan [Member] | ||||||
Class of Stock [Line Items] | ||||||
Number of share options authorized for issue (in shares) | 1,350,000 | 500,000 | ||||
Redeemable Preferred Stock Series A [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | ||||
Redeemable Preferred Stock Series B [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, liquidation preference (in dollars per share) | 25 | 25 | ||||
Redeemable Preferred Stock Series C [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | ||||
Common Stock [Member] | Dividend Reinvestment Plan March 21 2013 [Member] | ||||||
Class of Stock [Line Items] | ||||||
Shares authorized for dividend reinvestment plan (in shares) | 5,000,000 |
STOCK INCENTIVE PLANS AND SH120
STOCK INCENTIVE PLANS AND SHARE ISSUANCE AND REPURCHASE Share Issuance (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Redeemable Preferred Stock Series A [Member] | ||
Class of Stock [Line Items] | ||
Stock issued during period (in shares) | 0 | |
Weighted Average Offering Price (in dollars per share) | $ 0 | |
Number of Shares (In shares) | 1,069,016 | 1,069,016 |
Weighted Average Offering Price (in dollars per share) | $ 24.05 | |
Redeemable Preferred Stock Series B [Member] | ||
Class of Stock [Line Items] | ||
Stock issued during period (in shares) | 139,333 | |
Weighted Average Offering Price (in dollars per share) | $ 22.34 | |
Number of Shares (In shares) | 5,740,479 | 5,601,146 |
Weighted Average Offering Price (in dollars per share) | $ 23.81 | |
Redeemable Preferred Stock Series C [Member] | ||
Class of Stock [Line Items] | ||
Stock issued during period (in shares) | 0 | |
Weighted Average Offering Price (in dollars per share) | $ 0 | |
Number of Shares (In shares) | 4,800,000 | 4,800,000 |
Weighted Average Offering Price (in dollars per share) | $ 25 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) $ in Thousands | Sep. 01, 2015 | Aug. 31, 2015 | Mar. 31, 2015USD ($)shares | Sep. 24, 2014shares | Oct. 31, 2013USD ($) | Mar. 21, 2013 | Dec. 31, 2015USD ($)Directorshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($)shares |
Restricted common stock and stock options [Abstract] | |||||||||
Allocated share-based compensation expense | $ 3,145 | $ 6,566 | $ 10,472 | ||||||
Shares issued pursuant to the Management agreement (in shares) | shares | 0 | 0 | 47,707 | ||||||
Incentive compensation value | $ 1,100 | ||||||||
Stock split conversion ratio (percentage) | 0.25 | ||||||||
Restricted Stock [Member] | |||||||||
Restricted common stock and stock options [Abstract] | |||||||||
Number of non employee directors granted shares (directors) | Director | 7 | ||||||||
Estimated fair value of shares granted | $ 5,100 | $ 4,900 | 3,700 | ||||||
Restricted Stock [Member] | Non Employee Directors [Member] | |||||||||
Restricted common stock and stock options [Abstract] | |||||||||
Allocated share-based compensation expense | 257 | 256 | 218 | ||||||
Restricted Stock [Member] | Employees [Member] | |||||||||
Restricted common stock and stock options [Abstract] | |||||||||
Grant date fair value of shares | 737 | 132 | 1,500 | ||||||
Allocated share-based compensation expense | $ 725 | $ 633 | 106 | ||||||
Stock Options [Member] | |||||||||
Restricted common stock and stock options [Abstract] | |||||||||
Options granted (in shares) | shares | 0 | 0 | |||||||
Weighted average remaining contractual term | 10 years | ||||||||
Loan origination performance plan [Member] | Common Stock [Member] | |||||||||
Restricted common stock and stock options [Abstract] | |||||||||
Additional shares authorized upon meeting performance thresholds (in shares) | shares | 17,682 | ||||||||
Share grants on achievement of performance threshold (in shares) | shares | 8,841 | 8,841 | |||||||
Dividends payable on performance shares granted | $ 21 | $ 42 | |||||||
Stock split conversion ratio (percentage) | 4,000 | ||||||||
Vesting, percentage | 0.25% | ||||||||
Equity Compensation Expense [Member] | |||||||||
Restricted common stock and stock options [Abstract] | |||||||||
Allocated share-based compensation expense | 725 | $ 633 | 106 | ||||||
Nonvested awards, compensation cost not yet recognized | $ 2,300 | ||||||||
Weighted Average Remaining Contractual Term (in years) | 1 year 9 months 14 days | ||||||||
Equity Compensation Expense [Member] | Non Employee Directors [Member] | |||||||||
Restricted common stock and stock options [Abstract] | |||||||||
Allocated share-based compensation expense | $ 257 | 256 | 218 | ||||||
General and Administrative Expense [Member] | |||||||||
Restricted common stock and stock options [Abstract] | |||||||||
Allocated share-based compensation expense | 160 | 189 | 48 | ||||||
Primary Capital Advisors LLC [Member] | |||||||||
Restricted common stock and stock options [Abstract] | |||||||||
Payments to acquire businesses, | $ 7,600 | $ 0 | $ 0 | $ 7,613 | |||||
Stock issued during period | $ 800 | ||||||||
Annual Vesting, Sixty-Six Percent [Member] | 2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | |||||||||
Restricted common stock and stock options [Abstract] | |||||||||
Vesting, percentage | 66.60% |
SHARE-BASED COMPENSATION (Restr
SHARE-BASED COMPENSATION (Restricted Stock Activity) (Details) | 12 Months Ended |
Dec. 31, 2015shares | |
Non Employee Directors [Member] | |
Restricted common stock transactions [Roll Forward] | |
Unvested shares, beginning of period (in shares) | 12,301 |
Issued (shares) | 13,896 |
Vested (shares) | (10,930) |
Forfeited (shares) | 0 |
Unvested shares, end of period (in shares) | 15,267 |
Non-Employees [Member] | |
Restricted common stock transactions [Roll Forward] | |
Unvested shares, beginning of period (in shares) | 453,213 |
Issued (shares) | 250,390 |
Vested (shares) | (81,281) |
Forfeited (shares) | (4,665) |
Unvested shares, end of period (in shares) | 617,657 |
Employees [Member] | |
Restricted common stock transactions [Roll Forward] | |
Unvested shares, beginning of period (in shares) | 40,396 |
Issued (shares) | 43,326 |
Vested (shares) | (21,561) |
Forfeited (shares) | (3,716) |
Unvested shares, end of period (in shares) | 58,445 |
Manager and Non Employees [Member] | |
Restricted common stock transactions [Roll Forward] | |
Unvested shares, beginning of period (in shares) | 505,910 |
Issued (shares) | 307,612 |
Vested (shares) | (113,772) |
Forfeited (shares) | (8,381) |
Unvested shares, end of period (in shares) | 691,369 |
SHARE-BASED COMPENSATION (Re123
SHARE-BASED COMPENSATION (Restricted Common Stock Grants) (Details) - USD ($) $ in Thousands | Sep. 01, 2015 | Aug. 10, 2015 | Jun. 08, 2015 | Mar. 31, 2015 | Mar. 12, 2015 | Mar. 09, 2015 | Feb. 05, 2015 | Feb. 03, 2015 | Sep. 24, 2014 | Dec. 31, 2015 |
Restricted Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares | 30 | |||||||||
Loan origination performance plan [Member] | Common Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting/Year | 0.25% | |||||||||
Additional shares authorized upon meeting performance thresholds (in shares) | 17,682 | |||||||||
Share grants on achievement of performance threshold (in shares) | 8,841 | 8,841 | ||||||||
Dividends payable on performance shares granted | $ 21 | $ 42 | ||||||||
2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | Annual Vesting, Thirty-Three Percent, Number 1 [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares | 241,524 | |||||||||
Vesting/Year | 33.30% | |||||||||
2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | Annual Vesting, Thirty-Three Percent, Number 2 [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares | 28,818 | |||||||||
Vesting/Year | 33.30% | |||||||||
2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | Annual Vesting, One Hundred Percent [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares | 14,503 | 2,124 | 8,841 | 1,906 | 8,047 | 1,819 | ||||
Vesting/Year | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | ||||
2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | Annual Vesting, Various [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares | 30 |
SHARE-BASED COMPENSATION (Statu
SHARE-BASED COMPENSATION (Status of Vested Stock Options) (Details) - Vested [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Stock options outstanding [Roll Forward] | |
Outstanding beginning of period (in shares) | shares | 160,167 |
Vested (in shares) | shares | 0 |
Exercised (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Expired (in shares) | shares | (133,917) |
Outstanding end of period (in shares) | shares | 26,250 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Outstanding beginning of period (in dollars per share) | $ / shares | $ 57.80 |
Vested (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited (usd per share) | $ / shares | 0 |
Outstanding end of period (in dollars per share) | $ / shares | $ 46.60 |
Weighted Average Remaining Contractual Term (in years) | 3 years 2 months 12 days |
Aggregate Intrinsic Value (in thousands) | $ | $ 0 |
Expired (in dollars per share) | $ / shares | $ 60 |
SHARE-BASED COMPENSATION (Compo
SHARE-BASED COMPENSATION (Components of Equity Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | $ 3,145 | $ 6,566 | $ 10,472 |
Manager and Non Employees [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 0 | (2) | 6 |
Manager and Non Employees [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 2,163 | 5,679 | 10,142 |
Employees [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 725 | 633 | 106 |
Non Employee Directors [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | $ 257 | $ 256 | $ 218 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Dilutive shares excluded from calculation of diluted net income per share | 691,369 | 999,876 | |||||||||
Basic: [Abstract] | |||||||||||
Net income (loss) allocable to common shares | $ (13,882) | $ 44,027 | $ 39,232 | ||||||||
Weighted average number of shares outstanding | 32,280,319 | 32,007,766 | 29,619,668 | ||||||||
Basic net income per share (in dollars per share) | $ 0.03 | $ 0.21 | $ (0.94) | $ 0.29 | $ 0.21 | $ 0.23 | $ 0.46 | $ 0.48 | $ (0.43) | $ 1.38 | $ 1.32 |
Diluted: [Abstract] | |||||||||||
Net income (loss) allocable to common shares | $ (13,882) | $ 44,027 | $ 39,232 | ||||||||
Weighted average number of shares outstanding | 32,280,319 | 32,007,766 | 29,619,668 | ||||||||
Additional shares due to assumed conversion of dilutive instruments | 0 | 307,081 | 390,075 | ||||||||
Adjusted weighted-average number of common shares outstanding | 32,280,319 | 32,314,847 | 30,009,743 | ||||||||
Diluted net income per share (in dollars per share) | $ 0.03 | $ 0.21 | $ (0.94) | $ 0.28 | $ 0.21 | $ 0.22 | $ 0.46 | $ 0.48 | $ (0.43) | $ 1.36 | $ 1.31 |
6% Convertible Senior Notes [Member] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Dilutive shares excluded from calculation of diluted net income per share | 9,002,864 | 4,316,818 |
ACCUMULATED OTHER COMPREHENS127
ACCUMULATED OTHER COMPREHENSIVE (LOSS) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
January 1, 2015 | $ 6,043 | ||
Unrealized gains on derivatives, net | 5,221 | $ 1,906 | $ 4,045 |
Unrealized gains (losses) on available-for-sale securities, net | (4,781) | 13,937 | 10,858 |
Foreign currency translation adjustment | 349 | (608) | 196 |
Other comprehensive gain (loss) before reclassifications | 789 | ||
Amounts reclassified from accumulated other comprehensive income | 275 | 282 | 395 |
Amounts reclassified from accumulated other comprehensive income | (13,435) | 9,051 | (2,459) |
Amounts reclassified from accumulated other comprehensive income | (13,160) | ||
Net current-period other comprehensive income | (12,371) | ||
Unrealized (gains) losses on available-for-sale securities allocable to non-controlling interests | 3,405 | (4,482) | $ 0 |
December 31, 2015 | (2,923) | 6,043 | |
Net unrealized (loss) gain on derivatives [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
January 1, 2015 | (8,967) | ||
Unrealized gains on derivatives, net | 5,221 | ||
Amounts reclassified from accumulated other comprehensive income | 275 | ||
Net current-period other comprehensive income | 5,496 | ||
Unrealized (gains) losses on available-for-sale securities allocable to non-controlling interests | 0 | ||
December 31, 2015 | (3,471) | (8,967) | |
Net unrealized (loss) gain on securities, available-for-sale [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
January 1, 2015 | 15,422 | ||
Unrealized gains (losses) on available-for-sale securities, net | (4,781) | ||
Amounts reclassified from accumulated other comprehensive income | (13,435) | ||
Net current-period other comprehensive income | (18,216) | ||
Unrealized (gains) losses on available-for-sale securities allocable to non-controlling interests | 3,405 | ||
December 31, 2015 | 611 | 15,422 | |
Foreign Currency Translation [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
January 1, 2015 | (412) | ||
Foreign currency translation adjustment | 349 | ||
Amounts reclassified from accumulated other comprehensive income | 0 | ||
Net current-period other comprehensive income | 349 | ||
Unrealized (gains) losses on available-for-sale securities allocable to non-controlling interests | 0 | ||
December 31, 2015 | $ (63) | $ (412) |
THE MANAGEMENT AGREEMENT (Detai
THE MANAGEMENT AGREEMENT (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)periodshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($)shares | |
Management Agreement [Line Items] | |||
Investment management fee equity multiplier (percent) | 1.50% | ||
Incentive compensation multiplier (percent) | 25.00% | ||
Incentive compensation, weighted average price share multiplier, one | 2.00% | ||
Weighted average price share multiplier (percent) | 0.50% | ||
Weighted average price share multiplier, spread on multiplier, percentage of base rate (percent) | 25.00% | ||
Incentive compensation paid in common stock minimum holding period before sale | 1 year | ||
Average closing price period for shares traded on a Securities Exchange | 30 days | ||
Average closing price time period before issuance for shares traded on a Securities Exchange | 3 days | ||
Average closing price period for shares traded Over-The-Counter | 30 days | ||
Average closing price time period before issuance for shares traded Over-The-Counter | 3 days | ||
Director of Investor Relations percentage dedicated to company operations (percent) | 50.00% | ||
Percentage of salary and benefits company must pay for Director of Investor Relations (percent) | 50.00% | ||
Renewal period | 1 year | ||
Voting percentage of independent auditors required to cancel investment manager agreement (percent) | 66.66% | ||
Investment management agreement termination fee multiplier (percent) | 400.00% | ||
Number of 12-month periods for measurement of termination fee for investment management agreement | period | 2 | ||
Base investment management fee | $ 12,600 | $ 13,000 | $ 11,600 |
Shares issued pursuant to the Management agreement (in shares) | shares | 0 | 0 | 47,707 |
Investment management fee | $ 2,100 | ||
Payments for investments management fee | 1,500 | ||
Investment management fee value | $ 484 | ||
Investment management fee (in shares) | shares | 20,047 | ||
Base investment management fees payable | $ 978 | $ 1,200 | |
Reimbursable expenses | $ 152 | 121 | |
Monthly fee, percentage fee of equity | 8.33% | ||
Resource Capital Asset Management [Member] | |||
Management Agreement [Line Items] | |||
Base investment management fees paid to subsidiary (percent) | 10.00% | ||
CVC Credit Partners, LLC [Member] | |||
Management Agreement [Line Items] | |||
Incentive investment management fees paid by subsidiary (percent) | 50.00% | ||
Incentive investment management fees paid to subsidiary | $ 1,400 | 1,300 | $ 643 |
Investment management fees payable | $ 805 | $ 63 | |
Maximum [Member] | |||
Management Agreement [Line Items] | |||
Incentive compensation paid in cash (up to 75%) (percent) | 75.00% | ||
Minimum [Member] | |||
Management Agreement [Line Items] | |||
Incentive compensation paid in common stock (at least 25%) (percent) | 25.00% | ||
Percentage of incentive compensation that Manager may elect to receive in common stock (more than 25%) (percent) | 25.00% | ||
Subsidiaries [Member] | |||
Management Agreement [Line Items] | |||
Investment management fee | $ 123 |
RELATED PARTY TRANSACTIONS (Rel
RELATED PARTY TRANSACTIONS (Relationship with Resource America) (Details) | Nov. 07, 2013USD ($)shares | Dec. 31, 2012USD ($) | Dec. 31, 2015USD ($)Transactionshares | Dec. 31, 2014USD ($)Transaction | Dec. 31, 2013USD ($) | Jun. 30, 2015Transaction | Oct. 31, 2014Transaction | Oct. 31, 2013Transaction | Jun. 17, 2011USD ($) | Nov. 24, 2010USD ($) | |
Related Party Transaction [Line Items] | |||||||||||
General and administrative | $ 48,080,000 | $ 34,861,000 | $ 14,507,000 | ||||||||
Sale (purchase) of and principal payments on securities, trading, net | (5,486,000) | (16,515,000) | 12,961,000 | ||||||||
Fair Value | [1] | 25,550,000 | 20,786,000 | ||||||||
Equity in earnings of unconsolidated subsidiaries | 2,388,000 | 4,767,000 | 949,000 | ||||||||
Management fees − related party | $ 13,306,000 | 13,584,000 | $ 14,220,000 | ||||||||
Resource America [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Loan origination fee | 2.00% | ||||||||||
Manager pursuant to the Management Agreement [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Related party expense reimbursement annual fee | $ 550,000 | ||||||||||
Related party expense reimbursement term of annual fee | 2 years | ||||||||||
Resource Capital Corp [Member] | Resource America [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of common shares of the Company owned by a related party (in shares) | shares | 715,396 | ||||||||||
Ownership percentage (percent) | 2.30% | ||||||||||
Investment owned balance restricted stock options to purchase | shares | 2,166 | ||||||||||
Resource Capital Corp [Member] | Manager pursuant to the Management Agreement [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
General and administrative | $ 5,500,000 | 5,000,000 | $ 3,800,000 | ||||||||
Expense reimbursement payable | $ 1,600,000 | $ 480,000 | |||||||||
Number of executed CDO transactions (transactions) | Transaction | 11 | 9 | 1 | 1 | 1 | ||||||
Management fees − related party | $ 12,600,000 | $ 13,000,000 | 11,600,000 | ||||||||
IncentivemManagement fees related party | 0 | 0 | 1,900,000 | ||||||||
Investment maximum | $ 5,000,000 | ||||||||||
Additional Investment Per Investment Management Agreement | $ 8,000,000 | ||||||||||
Management fee percentage of net profits in excess of preferred return (in hundredths) | 20.00% | ||||||||||
Total indebtedness | 2,500,000 | 1,600,000 | |||||||||
Accrued management fees related party | 978,000 | 1,200,000 | |||||||||
Resource Capital Corp [Member] | Resource Capital Markets, Inc. [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Sale (purchase) of and principal payments on securities, trading, net | (300,000) | ||||||||||
Fair Value | 3,700,000 | 3,400,000 | |||||||||
Management fees − related party | 0 | 0 | 123,000 | ||||||||
Management fee portion of net profits In excess of preferred return | 0 | 0 | 35,000 | ||||||||
Related party, expense reimbursements | 128,000 | 164,000 | $ 258,000 | ||||||||
Total indebtedness | $ 152,000 | $ 121,000 | |||||||||
Elevation Home Loans, LLC [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Payments to acquire businesses | $ 830,000 | ||||||||||
Equity interest issued, (shares) | shares | 34,165 | ||||||||||
[1] | December 31, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $95 $25 Restricted cash$39,061 $121,247 Investments securities available-for-sale, pledged as collateral, at fair value66,137 119,203 Loans held for sale1,475 282Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,416,441 1,261,137 Interest receivable6,592 8,941 Prepaid expenses238 221 Principal paydown receivable17,800 25,767 Other assets833 (12) Total assets of consolidated VIEs$1,548,672 $1,536,811 |
RELATED PARTY TRANSACTIONS (130
RELATED PARTY TRANSACTIONS (Relationship with LEAF Financial) (Details) - USD ($) | Jan. 11, 2013 | Feb. 15, 2012 | Sep. 03, 2011 | Mar. 05, 2010 | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 05, 2011 | Jun. 03, 2011 | Dec. 15, 2015 | Apr. 30, 2015 | Nov. 16, 2011 | |||
Related Party Transaction [Line Items] | ||||||||||||||||
Line of credit facility term period | 1 year | |||||||||||||||
Provision (recovery) for loan loss | $ 49,889,000 | $ 1,804,000 | ||||||||||||||
Direct financing lease revenue | 2,100,000 | |||||||||||||||
Direct financing leases, net of provisions | [1] | 931,000 | 2,109,000 | |||||||||||||
Income (ioss) and interest expense from equity method investments | (33,000) | 2,790,000 | $ (460,000) | |||||||||||||
Investments in unconsolidated subsidiaries | 50,030,000 | [1] | 59,827,000 | [1] | $ 1,250,000 | $ 750,000 | ||||||||||
Lease Equity Appreciation Fund II [Member] | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Origination fee with establishment of line of credit facility (in hundredths) | 1.00% | |||||||||||||||
Resource Capital Corp [Member] | Lease Equity Appreciation Fund II [Member] | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Maximum amount of facility | $ 8,000,000 | |||||||||||||||
Line of credit facility term period | 1 year | |||||||||||||||
Line of credit facility, interest rate during period (in hundredths) | 12.00% | 10.00% | ||||||||||||||
Line of credit facility, extension fee percentage (in hundredths) | 1.00% | 1.00% | 1.00% | |||||||||||||
Interest in LCC [Member] | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Income (ioss) and interest expense from equity method investments | 2,601,000 | (1,555,000) | $ (183,000) | |||||||||||||
Investments in unconsolidated subsidiaries | 42,017,000 | 39,416,000 | $ 36,300,000 | |||||||||||||
Loans Receivable - Related Party [Member] | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Provision (recovery) for loan loss | 0 | 1,297,000 | ||||||||||||||
Loans Receivable - Related Party [Member] | Resource Capital Corp [Member] | Lease Equity Appreciation Fund II [Member] | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Provision (recovery) for loan loss | 1,300,000 | |||||||||||||||
Loans Receivable - Direct Financing Leases [Member] | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Provision (recovery) for loan loss | $ 465,000 | $ 0 | ||||||||||||||
[1] | December 31, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $95 $25 Restricted cash$39,061 $121,247 Investments securities available-for-sale, pledged as collateral, at fair value66,137 119,203 Loans held for sale1,475 282Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,416,441 1,261,137 Interest receivable6,592 8,941 Prepaid expenses238 221 Principal paydown receivable17,800 25,767 Other assets833 (12) Total assets of consolidated VIEs$1,548,672 $1,536,811 |
RELATED PARTY TRANSACTIONS (131
RELATED PARTY TRANSACTIONS (Relationship with CVC Credit Partners, LLC) (Details) $ in Thousands | Dec. 31, 2015USD ($)Entity | Feb. 24, 2011USD ($) | Dec. 31, 2015USD ($)Entity | Oct. 31, 2015USD ($) | Jul. 31, 2015USD ($) | Mar. 31, 2015USD ($) | Oct. 31, 2012 | Jul. 31, 2013USD ($) | Dec. 31, 2015USD ($)Entity | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)Entity | Dec. 15, 2015USD ($) | Apr. 30, 2015USD ($) | ||||
Related Party Transaction [Line Items] | |||||||||||||||||
Investments in unconsolidated subsidiaries | $ 50,030 | [1] | $ 50,030 | [1] | $ 50,030 | [1] | $ 59,827 | [1] | $ 1,250 | $ 750 | |||||||
Number of collateralized loan obligation Issuers | Entity | 5 | 5 | 5 | 2 | |||||||||||||
Impairment of intangible assets | $ 2,400 | ||||||||||||||||
Equity in earnings of unconsolidated subsidiaries | $ 2,388 | 4,767 | $ 949 | ||||||||||||||
Churchill Pacific Asset Management LLC [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Assets under management, carrying amount | 1,900,000 | ||||||||||||||||
CVC Credit Partners, LLC [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Asset management fee, percentage | 1.50% | 1.50% | 1.50% | ||||||||||||||
Resource America [Member] | CVC Capital Partners [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Ownership percentage (percent) | 24.00% | 24.00% | 24.00% | ||||||||||||||
Resource Capital Corp [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Preferred equity interest acquired | 66.60% | ||||||||||||||||
Resource Capital Corp [Member] | Churchill Pacific Asset Management LLC [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Ownership percentage (percent) | 100.00% | ||||||||||||||||
Purchase price of acquired entity paid by acquiring entity | $ 22,500 | ||||||||||||||||
Apidos Capital Management LLC [Member] | CVC Capital Partners [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Percentage of subordinated fees the company is entitled to collect | 10.00% | 10.00% | 10.00% | ||||||||||||||
Percentage of incentive fees the company is entitled to collect | 50.00% | 50.00% | 50.00% | ||||||||||||||
Subordinated fees received | $ 1,400 | 1,300 | 643 | ||||||||||||||
Whitney CLO I, Ltd. [Member] | RCC Commercial II [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Ownership percentage in VIE | 68.30% | ||||||||||||||||
CVC Global Credit Opportunities Fund, LP [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Ownership percentage (percent) | 0.00% | 0.00% | 0.00% | ||||||||||||||
Investments in unconsolidated subsidiaries | $ 0 | $ 0 | $ 0 | 18,209 | |||||||||||||
Proceeds from divestiture of businesses | $ 8,600 | $ 4,000 | $ 625 | $ 5,000 | |||||||||||||
CVC Global Credit Opportunities Fund, LP [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Acquisition of membership interests | $ 15,000 | ||||||||||||||||
Investment in RCAM [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Impairment of intangible assets | $ 2,400 | 2,400 | |||||||||||||||
CVC Global Credit Opportunities Fund, LP [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Equity in earnings of unconsolidated subsidiaries | $ 8 | $ 2,000 | $ 1,200 | ||||||||||||||
[1] | December 31, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $95 $25 Restricted cash$39,061 $121,247 Investments securities available-for-sale, pledged as collateral, at fair value66,137 119,203 Loans held for sale1,475 282Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,416,441 1,261,137 Interest receivable6,592 8,941 Prepaid expenses238 221 Principal paydown receivable17,800 25,767 Other assets833 (12) Total assets of consolidated VIEs$1,548,672 $1,536,811 |
RELATED PARTY TRANSACTIONS (132
RELATED PARTY TRANSACTIONS (Relationship with Resource Real Estate) (Details) | Aug. 18, 2015USD ($) | Jun. 24, 2015USD ($) | Apr. 10, 2015USD ($)Loanoption | Feb. 24, 2015USD ($) | Jul. 30, 2014USD ($) | May. 23, 2012USD ($) | Jun. 21, 2011USD ($) | Jan. 15, 2010USD ($) | Dec. 01, 2009USD ($) | Aug. 09, 2006USD ($) | Sep. 30, 2014USD ($) | Jul. 31, 2014USD ($)member | Dec. 31, 2013USD ($) | Jun. 30, 2007 | Dec. 31, 2015USD ($)extension | May. 23, 2012 | Dec. 31, 2015USD ($)extension | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 15, 2015USD ($) | Apr. 30, 2015USD ($) | Jul. 09, 2014 | ||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Basis spread on variable rate | 2.30% | |||||||||||||||||||||||||
Investments in unconsolidated subsidiaries | $ 50,030,000 | [1] | $ 50,030,000 | [1] | $ 59,827,000 | [1] | $ 1,250,000 | $ 750,000 | ||||||||||||||||||
Equity in net (earnings) losses of unconsolidated subsidiaries | (2,388,000) | (4,767,000) | $ (949,000) | |||||||||||||||||||||||
Loans receivable–related party | [1] | 0 | 0 | 558,000 | ||||||||||||||||||||||
Management fees − related party | 13,306,000 | 13,584,000 | 14,220,000 | |||||||||||||||||||||||
Income (ioss) and interest expense from equity method investments | (33,000) | 2,790,000 | (460,000) | |||||||||||||||||||||||
Placement agent fee | $ 175,000 | |||||||||||||||||||||||||
Number of bridge loans | Loan | 2 | |||||||||||||||||||||||||
Debt instrument term, number of options to extend | option | 2 | |||||||||||||||||||||||||
Debt instrument term, option to extend | 1 year | |||||||||||||||||||||||||
Resource Real Estate Funding CDO 2006-1 [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Basis spread on variable rate | 3.50% | |||||||||||||||||||||||||
Variable rate basis, floor | 2.50% | |||||||||||||||||||||||||
Resource America [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Payments to acquire additional interest | $ 2,800,000 | |||||||||||||||||||||||||
RRE VIP Borrower, LLC [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Acquisition of membership interests | $ 2,100,000 | |||||||||||||||||||||||||
Investments in unconsolidated subsidiaries | $ 0 | $ 0 | 0 | |||||||||||||||||||||||
Ownership percentage (percent) | 0.00% | 0.00% | ||||||||||||||||||||||||
Income (ioss) and interest expense from equity method investments | 3,473,000 | 277,000 | ||||||||||||||||||||||||
SLH Partners [Member] | Resource Capital Corp [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Amount of loan to related party | $ 7,000,000 | |||||||||||||||||||||||||
Equity in net (earnings) losses of unconsolidated subsidiaries | $ (912,000) | |||||||||||||||||||||||||
Ownership percentage (percent) | 10.00% | |||||||||||||||||||||||||
Line of credit facility, interest rate during period (in hundredths) | 10.00% | |||||||||||||||||||||||||
Origination fee with establishment of line of credit facility (in hundredths) | 1.00% | |||||||||||||||||||||||||
Exit fee | $ 70,000 | |||||||||||||||||||||||||
Equity method investments | 975,000 | |||||||||||||||||||||||||
Related parties, principal payments | $ 7,000,000 | |||||||||||||||||||||||||
RCC Residential, Inc. [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Acquisition of membership interests | $ 15,000,000 | |||||||||||||||||||||||||
Ownership percentage (percent) | 63.80% | 63.80% | ||||||||||||||||||||||||
Number of board members | member | 5 | |||||||||||||||||||||||||
Pelium [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Acquisition of membership interests | $ 17,500,000 | |||||||||||||||||||||||||
Ownership percentage (percent) | 80.40% | 80.20% | 80.20% | |||||||||||||||||||||||
Payments to acquire additional interest | $ 2,500,000 | |||||||||||||||||||||||||
Ownership interest | 10.00% | |||||||||||||||||||||||||
Contributions | $ 40,000,000 | |||||||||||||||||||||||||
Ownership percentage, duration | 5 years | |||||||||||||||||||||||||
Ownership interest increase | 20.00% | |||||||||||||||||||||||||
Pearlmark Mezzanine Realty Partners IV, L.P. [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Acquisition of membership interests | $ 6,900,000 | |||||||||||||||||||||||||
Investments in unconsolidated subsidiaries | $ 6,465,000 | $ 6,465,000 | 0 | |||||||||||||||||||||||
Ownership percentage (percent) | 47.42% | 47.42% | ||||||||||||||||||||||||
Income (ioss) and interest expense from equity method investments | $ (460,000) | 0 | 0 | |||||||||||||||||||||||
Other commitment | $ 50,000,000 | |||||||||||||||||||||||||
Management fee, committed capital, percent fee | 1.00% | |||||||||||||||||||||||||
Management fee, invested capital, percent fee | 1.50% | |||||||||||||||||||||||||
rebate, percentage | 25.00% | |||||||||||||||||||||||||
Investment management fees payable | $ 94,000 | $ 94,000 | ||||||||||||||||||||||||
Lynnfield Place [Member] | RCC Real Estate [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Amount of loan to related party | $ 22,400,000 | |||||||||||||||||||||||||
Resource Real Estate Management, LLC [Member] | RCC Real Estate [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Gain (loss) on disposition of property | $ 1,900,000 | |||||||||||||||||||||||||
Asset management fee, percentage | 4.00% | 4.00% | ||||||||||||||||||||||||
Management fees − related party | $ 0 | 127,000 | 136,000 | |||||||||||||||||||||||
Resource Real Estate Management, LLC [Member] | RRE VIP Borrower, LLC [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Asset management fee, percentage | 1.00% | 1.00% | ||||||||||||||||||||||||
Management fees − related party | $ 0 | 6,000 | 28,000 | |||||||||||||||||||||||
Income (ioss) and interest expense from equity method investments | $ 325,000 | 3,500,000 | 278,000 | |||||||||||||||||||||||
Resource Real Estate Management, LLC [Member] | SLH Partners [Member] | Resource Capital Corp [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Asset management fee, percentage | 2.00% | 2.00% | ||||||||||||||||||||||||
Resource Capital Partners Inc [Member] | Resource Capital Corp [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Amount of loan to related party | $ 2,000,000 | |||||||||||||||||||||||||
Related party loan, stated interest rate (in hundredths) | 8.00% | 8.00% | ||||||||||||||||||||||||
Loans receivable–related party | 558,000 | |||||||||||||||||||||||||
Debt default, additional Interest | 5.00% | 5.00% | ||||||||||||||||||||||||
Number of extensions | extension | 2 | 2 | ||||||||||||||||||||||||
Loan extension | 1 year | |||||||||||||||||||||||||
Resource Real Estate Opportunity Fund, L.P. [Member] | Resource America [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Ownership percentage (percent) | 5.00% | |||||||||||||||||||||||||
Resource America [Member] | Resource Capital Corp [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Ownership percentage (percent) | 2.30% | 2.30% | ||||||||||||||||||||||||
Resource America [Member] | Pearlmark Mezzanine Realty Partners IV, L.P. [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Ownership percentage in VIE | 50.00% | |||||||||||||||||||||||||
RCC CRE Notes 2013 [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Closing transaction amount | $ 353,900,000 | $ 307,800,000 | $ 307,800,000 | $ 307,800,000 | $ 307,800,000 | |||||||||||||||||||||
Special servicing fee rate | 0.25% | |||||||||||||||||||||||||
Placement agent fee | $ 205,000 | |||||||||||||||||||||||||
RCC CRE Notes 2015 [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Closing transaction amount | $ 346,200,000 | |||||||||||||||||||||||||
Placement agent fee | $ 100,000 | |||||||||||||||||||||||||
Resource Capital Corp. 2015-CRE4, Ltd. [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Closing transaction amount | $ 312,900,000 | |||||||||||||||||||||||||
Placement agent fee | $ 85,000 | |||||||||||||||||||||||||
Commercial Real Estate Loans [Member] | Resource Real Estate [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Payable to related party | $ 2,500 | 2,500 | $ 100,000 | |||||||||||||||||||||||
RCM Global Manager, LLC [Member] | RCC Residential, Inc. [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Gain on sale of investments | $ 5,000,000 | |||||||||||||||||||||||||
Ownership percentage in VIE | 30.20% | |||||||||||||||||||||||||
Bridge Loan [Member] | Bridge Loan One [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Basis spread on variable rate | 5.75% | |||||||||||||||||||||||||
Bridge loan | $ 2,500,000 | |||||||||||||||||||||||||
Bridge Loan [Member] | Bridge Loan Two [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Bridge loan | $ 3,300,000 | |||||||||||||||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Basis spread on variable rate | 0.25% | |||||||||||||||||||||||||
[1] | December 31, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $95 $25 Restricted cash$39,061 $121,247 Investments securities available-for-sale, pledged as collateral, at fair value66,137 119,203 Loans held for sale1,475 282Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,416,441 1,261,137 Interest receivable6,592 8,941 Prepaid expenses238 221 Principal paydown receivable17,800 25,767 Other assets833 (12) Total assets of consolidated VIEs$1,548,672 $1,536,811 |
RELATED PARTY TRANSACTIONS (133
RELATED PARTY TRANSACTIONS (Relationship with Law Firm) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Resource Capital Corp [Member] | Ledgewood [Member] | |||
Related Party Transaction [Line Items] | |||
Legal fees | $ 434 | $ 280 | $ 360 |
DISTRIBUTIONS (Details)
DISTRIBUTIONS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Class of Stock [Line Items] | |||||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 2,340 | $ 3,200 | $ 3,200 | ||||||||||||
Dividend Per Share | $ 2.34 | $ 3.20 | $ 3.20 | ||||||||||||
Common Stock [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Total Dividend Paid | $ 13,274 | $ 20,667 | $ 21,426 | $ 21,444 | $ 26,563 | $ 26,629 | $ 26,179 | $ 25,921 | $ 25,536 | $ 25,447 | $ 25,399 | $ 21,634 | |||
Dividend Per Share | $ 0.42 | $ 0.64 | $ 0.64 | $ 0.64 | $ 0.80 | $ 0.80 | $ 0.80 | $ 0.80 | $ 0.80 | $ 0.80 | $ 0.80 | $ 0.80 | |||
Preferred Shares - Series A [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Total Dividend Paid | $ 568 | $ 568 | $ 568 | $ 568 | $ 568 | $ 537 | $ 537 | $ 463 | $ 362 | $ 362 | $ 359 | $ 359 | |||
Dividend Per Share | $ 0.531250 | $ 0.531250 | $ 0.531250 | $ 0.531250 | $ 0.531250 | $ 0.531250 | $ 0.531250 | $ 0.531250 | $ 0.531250 | $ 0.531250 | $ 0.531250 | $ 0.531250 | |||
Preferred Shares - Series B [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Total Dividend Paid | $ 2,960 | $ 2,960 | $ 2,960 | $ 2,960 | $ 2,888 | $ 2,430 | $ 2,378 | $ 2,057 | $ 1,797 | $ 1,662 | $ 1,584 | $ 1,152 | |||
Dividend Per Share | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | $ 0.515625 | |||
Series C Preferred Stock [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Total Dividend Paid | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 1,437 | $ 0 | |||||||
Dividend Per Share | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.299479 | $ 0 |
FAIR VALUE OF FINANCIAL INST135
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Outstanding Borrowings | $ 1,895,288,000 | $ 1,716,871,000 | |
Principal Outstanding | 1,921,081,000 | 1,734,901,000 | |
Provision for (recovery of) loan losses | 49,889,000 | 1,804,000 | $ 3,020,000 |
Net impairment losses recognized in earnings | 372,000 | 0 | 855,000 |
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Principal Outstanding | 186,974,000 | 111,137,000 | |
Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Provision for (recovery of) loan losses | 1,300,000 | 680,000 | 3,900,000 |
Nonrecurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Provision for (recovery of) loan losses | 39,200,000 | 1,300,000 | 3,100,000 |
Moselle CLO [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Outstanding Borrowings | 176,900,000 | ||
Cumulative amount of debt paid down | 100,300,000 | ||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | 7,500,000 | ||
Principal Outstanding | 68,900,000 | ||
Moselle CLO S.A. Senior Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Outstanding Borrowings | 63,321,000 | ||
Principal Outstanding | 63,321,000 | ||
Moselle CLO S.A. Securitized Borrowings [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Outstanding Borrowings | 5,619,000 | ||
Principal Outstanding | 5,619,000 | ||
6% Convertible Senior Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Outstanding Borrowings | 110,083,000 | 108,374,000 | |
Principal Outstanding | $ 115,000,000 | $ 115,000,000 | |
Fair Value Inputs, Discount Rate | 7.00% | ||
8% Convertible Senior Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Outstanding Borrowings | $ 95,401,000 | ||
Principal Outstanding | $ 100,000,000 | ||
Fair Value Inputs, Discount Rate | 8.60% | ||
Minimum [Member] | CRE Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Discount Rate | 15.00% | ||
Maximum [Member] | CRE Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Discount Rate | 25.00% | ||
CMBS [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net impairment losses recognized in earnings | $ 863,000 |
FAIR VALUE OF FINANCIAL INST136
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets: | |||
Investment securities, trading | [1] | $ 25,550 | $ 20,786 |
Investment securities available-for-sale | 208,088 | 275,720 | |
CMBS - linked transactions | [1] | 0 | 15,367 |
Derivatives | [1] | 3,446 | 5,304 |
Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Investment securities, trading | 25,550 | 20,786 | |
Investment securities available-for-sale | 208,088 | 275,720 | |
Loans held for sale | 95,946 | ||
CMBS - linked transactions | 15,367 | ||
Derivatives | 3,446 | 5,304 | |
Total assets at fair value | 333,030 | 317,177 | |
Liabilities: | |||
Moselle CLO Notes | 68,940 | ||
Derivatives | 3,941 | 8,476 | |
Total liabilities at fair value | 3,941 | 77,416 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Assets: | |||
Investment securities, trading | 0 | 0 | |
Investment securities available-for-sale | 0 | 0 | |
Loans held for sale | 0 | ||
CMBS - linked transactions | 0 | ||
Derivatives | 0 | 3,429 | |
Total assets at fair value | 0 | 3,429 | |
Liabilities: | |||
Moselle CLO Notes | 0 | ||
Derivatives | 0 | 0 | |
Total liabilities at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Assets: | |||
Investment securities, trading | 0 | 0 | |
Investment securities available-for-sale | 4,451 | 33,158 | |
Loans held for sale | 66,588 | ||
CMBS - linked transactions | 0 | ||
Derivatives | 826 | 7 | |
Total assets at fair value | 71,865 | 33,165 | |
Liabilities: | |||
Moselle CLO Notes | 0 | ||
Derivatives | 0 | 0 | |
Total liabilities at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Assets: | |||
Investment securities, trading | 25,550 | 20,786 | |
Investment securities available-for-sale | 203,637 | 242,562 | |
Loans held for sale | 29,358 | ||
CMBS - linked transactions | 15,367 | ||
Derivatives | 2,620 | 1,868 | |
Total assets at fair value | 261,165 | 280,583 | |
Liabilities: | |||
Moselle CLO Notes | 68,940 | ||
Derivatives | 3,941 | 8,476 | |
Total liabilities at fair value | $ 3,941 | $ 77,416 | |
[1] | December 31, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $95 $25 Restricted cash$39,061 $121,247 Investments securities available-for-sale, pledged as collateral, at fair value66,137 119,203 Loans held for sale1,475 282Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,416,441 1,261,137 Interest receivable6,592 8,941 Prepaid expenses238 221 Principal paydown receivable17,800 25,767 Other assets833 (12) Total assets of consolidated VIEs$1,548,672 $1,536,811 |
FAIR VALUE OF FINANCIAL INST137
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets Measured on Recurring Basis) (Details) - Level 3 [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Total gains or losses (realized or unrealized): | |
Beginning balance, January 1 | $ 363,963 |
Included in earnings | 35,494 |
Unlinked transaction | 33,239 |
Purchases originations | 336,993 |
Sales | (369,313) |
Paydowns | (85,733) |
Issuances | 0 |
Settlements | (40,993) |
Capitalized Interest | 1,857 |
Included in OCI | (18,716) |
Transfers into level 3 | 4,026 |
Ending balance, December 31 | 260,817 |
CMBS [Member] | |
Total gains or losses (realized or unrealized): | |
Beginning balance, January 1 | 185,772 |
Included in earnings | 2,107 |
Unlinked transaction | 33,239 |
Purchases originations | 12,374 |
Sales | (3,000) |
Paydowns | (67,933) |
Issuances | 0 |
Settlements | 0 |
Capitalized Interest | 0 |
Included in OCI | (3,135) |
Transfers into level 3 | 0 |
Ending balance, December 31 | 159,424 |
Asset-backed Securities [Member] | |
Total gains or losses (realized or unrealized): | |
Beginning balance, January 1 | 72,157 |
Included in earnings | 2,051 |
Unlinked transaction | 0 |
Purchases originations | 24,811 |
Sales | (27,800) |
Paydowns | (9,048) |
Issuances | 0 |
Settlements | (11,216) |
Capitalized Interest | 1,857 |
Included in OCI | (12,471) |
Transfers into level 3 | 3,872 |
Ending balance, December 31 | 44,213 |
Structured Finance Securities [Member] | |
Total gains or losses (realized or unrealized): | |
Beginning balance, January 1 | 20,786 |
Included in earnings | 2,403 |
Unlinked transaction | 0 |
Purchases originations | 25,185 |
Sales | (17,282) |
Paydowns | (2,432) |
Issuances | 0 |
Settlements | 0 |
Capitalized Interest | 0 |
Included in OCI | (3,110) |
Transfers into level 3 | 0 |
Ending balance, December 31 | 25,550 |
Structured Notes [Member] | |
Total gains or losses (realized or unrealized): | |
Beginning balance, January 1 | 898 |
Included in earnings | 153 |
Unlinked transaction | 0 |
Purchases originations | 0 |
Sales | 0 |
Paydowns | 0 |
Issuances | 0 |
Settlements | 0 |
Capitalized Interest | 0 |
Included in OCI | 0 |
Transfers into level 3 | 0 |
Ending balance, December 31 | 1,051 |
Interest Rate Lock Commitments [Member] | |
Total gains or losses (realized or unrealized): | |
Beginning balance, January 1 | 970 |
Included in earnings | 30,028 |
Unlinked transaction | 0 |
Purchases originations | 0 |
Sales | 0 |
Paydowns | 0 |
Issuances | 0 |
Settlements | (29,777) |
Capitalized Interest | 0 |
Included in OCI | 0 |
Transfers into level 3 | 0 |
Ending balance, December 31 | 1,221 |
Held for Sale [Member] | |
Total gains or losses (realized or unrealized): | |
Beginning balance, January 1 | 83,380 |
Included in earnings | (1,248) |
Unlinked transaction | 0 |
Purchases originations | 274,623 |
Sales | (321,231) |
Paydowns | (6,320) |
Issuances | 0 |
Settlements | 0 |
Capitalized Interest | 0 |
Included in OCI | 0 |
Transfers into level 3 | 154 |
Ending balance, December 31 | $ 29,358 |
FAIR VALUE OF FINANCIAL INST138
FAIR VALUE OF FINANCIAL INSTRUMENTS (Liabilities Measured on Recurring Basis) (Details) - Level 3 [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 9,709 |
Included in earnings | 1,922 |
Settlements | (2,744) |
Included in OCI | (4,946) |
Transfers into Level 3 | 0 |
Ending balance | 3,941 |
Interest Rate Swap [Member] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 8,680 |
Included in earnings | (275) |
Settlements | 0 |
Included in OCI | (4,946) |
Transfers into Level 3 | 0 |
Ending balance | 3,459 |
Forwards Residential Mortgage [Member] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 1,029 |
Included in earnings | 2,197 |
Settlements | (2,744) |
Included in OCI | 0 |
Transfers into Level 3 | 0 |
Ending balance | $ 482 |
FAIR VALUE OF FINANCIAL INST139
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities, Quantitative Information) (Details) - Nonrecurring [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale | $ 1,432 | $ 36,956 |
Impaired loans | 129,695 | 139,489 |
Total assets at fair value | 131,127 | 176,445 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale | 0 | 0 |
Impaired loans | 0 | 0 |
Total assets at fair value | 0 | 0 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale | 1,279 | 36,956 |
Impaired loans | 262 | 1,678 |
Total assets at fair value | 1,541 | 38,634 |
Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale | 153 | 0 |
Impaired loans | 129,433 | 137,811 |
Total assets at fair value | $ 129,586 | $ 137,811 |
FAIR VALUE OF FINANCIAL INST140
FAIR VALUE OF FINANCIAL INSTRUMENTS (Significant Observable Outputs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Option Pricing Model [Member] | Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Volatility | 50.00% | |
Interest Rate Swap [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Weighted average credit spreads | 5.12% | |
Interest Rate Swap [Member] | Discounted Cash Flow Technique [Member] | Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value at December 31, 2015 | $ 3,459 | |
Weighted average credit spreads | 5.38% | |
Warrant [Member] | Option Pricing Model [Member] | Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value at December 31, 2015 | $ 1,051 | |
Market capitalization (in millions) | $ 0 |
FAIR VALUE OF FINANCIAL INST141
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held-for-investment | [1] | $ 2,160,751 | $ 1,925,980 |
Loans receivable-related party | [1] | 0 | 558 |
Senior secured revolving credit agreement | 1,921,081 | 1,734,901 | |
Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held-for-investment | 2,160,751 | 1,925,980 | |
Loans receivable-related party | 558 | ||
CDO notes | 1,032,581 | 1,046,493 | |
Junior subordinated notes | 51,413 | 51,205 | |
Convertible notes | 205,484 | 108,374 | |
Repurchase agreements | 418,836 | 399,662 | |
Senior secured revolving credit agreement | 186,974 | 111,137 | |
Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held-for-investment | 2,150,061 | 1,909,019 | |
Loans receivable-related party | 558 | ||
CDO notes | 923,817 | 975,762 | |
Junior subordinated notes | 17,907 | 17,699 | |
Convertible notes | 205,484 | 108,374 | |
Repurchase agreements | 418,836 | 399,662 | |
Senior secured revolving credit agreement | 186,974 | 111,137 | |
Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held-for-investment | 0 | 0 | |
Loans receivable-related party | 0 | ||
CDO notes | 0 | 0 | |
Junior subordinated notes | 0 | 0 | |
Convertible notes | 0 | 0 | |
Repurchase agreements | 0 | 0 | |
Senior secured revolving credit agreement | 0 | 0 | |
Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held-for-investment | 222,100 | 570,071 | |
Loans receivable-related party | 0 | ||
CDO notes | 0 | 0 | |
Junior subordinated notes | 0 | 0 | |
Convertible notes | 0 | 0 | |
Repurchase agreements | 0 | 0 | |
Senior secured revolving credit agreement | 0 | 0 | |
Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held-for-investment | 1,927,961 | 1,338,948 | |
Loans receivable-related party | 558 | ||
CDO notes | 923,817 | 975,762 | |
Junior subordinated notes | 17,907 | 17,699 | |
Convertible notes | 205,484 | 108,374 | |
Repurchase agreements | 418,836 | 399,662 | |
Senior secured revolving credit agreement | $ 186,974 | $ 111,137 | |
[1] | December 31, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $95 $25 Restricted cash$39,061 $121,247 Investments securities available-for-sale, pledged as collateral, at fair value66,137 119,203 Loans held for sale1,475 282Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,416,441 1,261,137 Interest receivable6,592 8,941 Prepaid expenses238 221 Principal paydown receivable17,800 25,767 Other assets833 (12) Total assets of consolidated VIEs$1,548,672 $1,536,811 |
MARKET RISK AND DERIVATIVE I142
MARKET RISK AND DERIVATIVE INSTRUMENTS (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | 10 Months Ended | 12 Months Ended | 36 Months Ended | |||||
Sep. 30, 2014USD ($) | Mar. 31, 2014 | Jun. 30, 2007USD ($) | Sep. 30, 2008USD ($) | Dec. 31, 2014USD ($)Derivative | Dec. 31, 2015USD ($)Derivative | Dec. 31, 2014USD ($)Derivative | Dec. 31, 2013USD ($) | Dec. 31, 2008Derivative | ||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value | $ 8,466 | $ 3,941 | $ 8,466 | |||||||
Number of hedges terminated | Derivative | 18 | |||||||||
Derivative instruments, gain (loss) reclassification from accumulated OCI to income, estimated | 57 | |||||||||
Warrant exercise price | $ 50,000 | |||||||||
Warrant, term | 7 years | |||||||||
CMBS - linked transactions | [1] | $ 15,367 | 0 | 15,367 | ||||||
Expense recognized in earnings for amortization of gains and losses on terminated hedges | $ 275 | $ 282 | $ 288 | |||||||
Interest Rate Swap [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Number of derivative instruments held | Derivative | 10 | 9 | 10 | |||||||
Weighted average credit spreads | 5.12% | 5.12% | ||||||||
Notional amount | $ 45,000 | $ 124,000 | $ 102,800 | $ 124,000 | ||||||
Fair Value | 8,700 | 3,500 | 8,700 | |||||||
Unrealized losses on non-designated derivative instruments | 3,500 | 9,000 | ||||||||
Gain (loss) on termination of derivative instrument | $ 2,600 | (4,200) | ||||||||
Notional amount of derivative instrument terminated | $ 53,600 | |||||||||
Linked Transactions [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Fair Value | 0 | 0 | ||||||||
CMBS - linked transactions | 48,605 | 48,605 | ||||||||
Unrealized gain (loss) and net interest income on derivatives | $ 0 | 7,850 | $ (3,841) | |||||||
Derivative Financial Instruments, Liabilities [Member] | Discounted Cash Flow Technique [Member] | Level 3 [Member] | Interest Rate Swap [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Weighted average credit spreads | 5.38% | |||||||||
Maximum [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Warrant conversation, percentage | 0.90% | |||||||||
Linked Transactions, Net at Fair Value [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
CMBS - linked transactions | $ 15,400 | $ 15,400 | ||||||||
[1] | December 31, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $95 $25 Restricted cash$39,061 $121,247 Investments securities available-for-sale, pledged as collateral, at fair value66,137 119,203 Loans held for sale1,475 282Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,416,441 1,261,137 Interest receivable6,592 8,941 Prepaid expenses238 221 Principal paydown receivable17,800 25,767 Other assets833 (12) Total assets of consolidated VIEs$1,548,672 $1,536,811 |
MARKET RISK AND DERIVATIVE I143
MARKET RISK AND DERIVATIVE INSTRUMENTS (Fair Value and Classification of Derivatives) (Details) $ in Thousands, € in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2014EUR (€) | |
Derivatives, Fair Value [Line Items] | |||||
Gross Amounts of Recognized Assets | $ 3,446 | $ 4,334 | |||
Gross Amounts of Recognized Liabilities | $ 3,941 | $ 8,466 | |||
Weighted average pass-through percentage, asset position | 85.90% | 76.40% | |||
Weighted average pass-through percentage, liability position | 19.50% | 21.20% | |||
Realized and Unrealized Gain (Loss) | $ (275) | $ (282) | $ (288) | ||
Interest Rate Lock Commitments [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Notional Amount | 105,385 | 59,467 | |||
Derivative Liability, Notional Amount | 505 | 798 | |||
Interest Rate Lock Commitments [Member] | Net Realized Gain on Sales of Investment Securities Available-for-sale and Loans [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | 261 | 960 | |||
Interest Rate Lock Commitments [Member] | Derivatives, at fair value [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gross Amounts of Recognized Assets | 1,224 | 970 | |||
Gross Amounts of Recognized Liabilities | 3 | 10 | |||
Interest Rate Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Notional Amount | 102,799 | 124,017 | |||
Interest Rate Swap [Member] | Interest Expense [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | 6,335 | 6,555 | $ 6,751 | ||
Interest Rate Swap [Member] | Net Realized Gain on Sales of Investment Securities Available-for-sale and Loans [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | (18) | ||||
Interest Rate Swap [Member] | Derivatives, at fair value [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gross Amounts of Recognized Liabilities | 3,459 | 8,680 | |||
Interest Rate Swap [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gross Amounts of Recognized Liabilities | (3,471) | (8,680) | |||
Forward Contracts [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Notional Amount | 92,413 | 5,000 | |||
Derivative Liability, Notional Amount | 143,553 | 154,692 | |||
Forward Contracts [Member] | Net Realized Gain on Sales of Investment Securities Available-for-sale and Loans [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | 895 | (1,029) | |||
Forward Contracts [Member] | Derivatives, at fair value [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gross Amounts of Recognized Assets | 345 | 7 | |||
Gross Amounts of Recognized Liabilities | 479 | 1,036 | |||
RMBS [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Notional Amount | 42,614 | ||||
RMBS [Member] | Net Realized Gain on Sales of Investment Securities Available-for-sale and Loans [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | (215) | 1,297 | |||
RMBS [Member] | Derivatives, at fair value [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gross Amounts of Recognized Assets | 1,297 | ||||
Foreign Exchange Forward [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Notional Amount | 24,850 | 54,948 | € 22.9 | € 45.4 | |
Foreign Exchange Forward [Member] | Net Realized Gain on Sales of Investment Securities Available-for-sale and Loans [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | 2,925 | 3,377 | |||
Foreign Exchange Forward [Member] | Derivatives, at fair value [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gross Amounts of Recognized Assets | 727 | 3,377 | |||
US Treasury Securities [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Notional Amount | 90 | ||||
US Treasury Securities [Member] | Net Realized Gain on Sales of Investment Securities Available-for-sale and Loans [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | 184 | (28) | |||
US Treasury Securities [Member] | Derivatives, at fair value [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gross Amounts of Recognized Assets | 52 | ||||
Other Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Notional Amount | 29,500 | ||||
Derivative Liability, Notional Amount | 1,500 | 15,000 | |||
Other Contract [Member] | Net Realized Gain on Sales of Investment Securities Available-for-sale and Loans [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | 483 | (47) | |||
Other Contract [Member] | Derivatives, at fair value [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gross Amounts of Recognized Assets | 99 | ||||
Gross Amounts of Recognized Liabilities | 0 | 47 | |||
Warrant [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Notional Amount | 553 | 492 | |||
Warrant [Member] | Net Realized Gain on Sales of Investment Securities Available-for-sale and Loans [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Realized and Unrealized Gain (Loss) | 898 | ||||
Warrant [Member] | Derivatives, at fair value [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gross Amounts of Recognized Assets | $ 1,051 | $ 898 |
MARKET RISK AND DERIVATIVE I144
MARKET RISK AND DERIVATIVE INSTRUMENTS (Summary of Linked Transactions) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Derivatives, Fair Value [Line Items] | ||||
Linked transactions, net at fair value | [1] | $ 0 | $ 15,367 | |
CMBS Linked Transactions [Abstract] | ||||
Amortized Cost | 205,156 | 256,515 | ||
Unrealized Losses | (3,039) | (3,556) | ||
Fair Value | ||||
Less than one year | 117,221 | 78,095 | ||
Greater than one year and less than five years | 71,370 | 115,302 | ||
Greater than five years and less than ten years | 12,382 | 20,177 | ||
Greater than ten years | 7,115 | 62,146 | ||
Amortized Cost | ||||
Less than one year | 118,215 | 79,649 | ||
Greater than one year and less than five years | 68,808 | 100,909 | ||
Greater than five years and less than ten years | 11,271 | 17,516 | ||
Greater than ten years | 6,862 | 58,441 | ||
Amortized Cost | 205,156 | 256,515 | ||
Linked Transactions, Continuous Unrealized Loss Position [Abstract] | ||||
Fair value, less than 12 months | 83,122 | 38,307 | ||
Unrealized losses, less than 12 months | (1,779) | (851) | ||
Fair value, more than 12 months | 15,778 | 26,541 | ||
Gross unrealized losses, more than 12 Months | (1,260) | (2,705) | ||
Fair value, total | 98,900 | 64,848 | ||
Unrealized losses, total | (3,039) | (3,556) | ||
Linked Transactions [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Linked transactions, net at fair value | 48,605 | |||
Components of Unrealized Net Gains and Net Interest Income from Linked Transactions [Abstract] | ||||
Interest income attributable to CMBS underlying linked transactions | 0 | 2,879 | $ 2,912 | |
Interest expense attributable to linked repurchase agreement borrowings underlying linked transactions | 0 | (644) | (735) | |
Change in fair value of linked transactions included in earnings | 0 | 5,615 | (6,018) | |
Unrealized net (losses) gains and net interest income from linked transactions | $ 0 | 7,850 | $ (3,841) | |
Linked Transactions [Member] | CMBS [Member] | ||||
CMBS Linked Transactions [Abstract] | ||||
Amortized Cost | 48,138 | |||
Unrealized Gains | 539 | |||
Unrealized Losses | (72) | |||
Total | 48,605 | |||
Fair Value | ||||
Less than one year | 7,834 | |||
Greater than one year and less than five years | 36,587 | |||
Greater than five years and less than ten years | 4,184 | |||
Greater than ten years | 0 | |||
Total | 48,605 | |||
Amortized Cost | ||||
Less than one year | 7,775 | |||
Greater than one year and less than five years | 36,274 | |||
Greater than five years and less than ten years | 4,089 | |||
Greater than ten years | 0 | |||
Amortized Cost | $ 48,138 | |||
Weighted Average Coupon | ||||
Less than one year | 5.36% | |||
Greater than one year and less than five years | 4.65% | |||
Greater than five years and less than ten years | 4.52% | |||
Greater than ten years | 0.00% | |||
Total | 4.66% | |||
Linked Transactions, Continuous Unrealized Loss Position [Abstract] | ||||
Fair value, less than 12 months | $ 7,609 | |||
Unrealized losses, less than 12 months | (57) | |||
Fair value, more than 12 months | 777 | |||
Gross unrealized losses, more than 12 Months | (15) | |||
Fair value, total | 8,386 | |||
Unrealized losses, total | (72) | |||
CMBS Linked Repurchase Agreements [Abstract] | ||||
CMBS Linked repurchase agreement, Balance | $ 33,397 | |||
CMBS Linked repurchase agreement, Weighted Average Interest Rate | 1.56% | |||
Linked Transactions [Member] | CMBS [Member] | Within 30 days [Member] | ||||
CMBS Linked Repurchase Agreements [Abstract] | ||||
CMBS Linked repurchase agreement, Balance | $ 33,397 | |||
CMBS Linked repurchase agreement, Weighted Average Interest Rate | 1.56% | |||
Linked Transactions [Member] | CMBS [Member] | 30 days to 90 days [Member] | ||||
CMBS Linked Repurchase Agreements [Abstract] | ||||
CMBS Linked repurchase agreement, Balance | $ 0 | |||
CMBS Linked repurchase agreement, Weighted Average Interest Rate | 0.00% | |||
Not Designated as Hedging Instrument [Member] | Linked Transactions, Net at Fair Value [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Linked transactions, net at fair value | $ 15,400 | |||
[1] | December 31, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $95 $25 Restricted cash$39,061 $121,247 Investments securities available-for-sale, pledged as collateral, at fair value66,137 119,203 Loans held for sale1,475 282Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,416,441 1,261,137 Interest receivable6,592 8,941 Prepaid expenses238 221 Principal paydown receivable17,800 25,767 Other assets833 (12) Total assets of consolidated VIEs$1,548,672 $1,536,811 |
OFFSETTING OF FINANCIAL ASSE145
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative hedging instruments, at fair value-Assets | ||
Gross Amounts of Recognized Assets | $ 3,446 | $ 4,334 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Included in the Consolidated Balance Sheets | 3,446 | 4,334 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | 0 |
Net Amount | 3,446 | 4,334 |
Derivative hedging instruments, at fair value-Liabilities | ||
Gross Amounts of Recognized Liabilities | 3,941 | 8,466 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 3,941 | 8,466 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | 500 | 500 |
Net Amount | 3,441 | 7,966 |
Total-Assets | ||
Gross Amounts of Recognized Assets | 3,446 | 53,098 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 33,397 |
Net Amounts of Assets Included in the Consolidated Balance Sheets | 3,446 | 19,701 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | 0 |
Net Amount | 3,446 | 19,701 |
Repurchase agreements-Liabilities | ||
Gross Amounts of Recognized Liabilities | 418,836 | 399,662 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 418,836 | 399,662 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 418,836 | 399,662 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | 0 |
Net Amount | 0 | 0 |
Total-Liabilities | ||
Gross Amounts of Recognized Liabilities | 422,777 | 441,525 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 33,397 |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 422,777 | 408,128 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 418,836 | 399,662 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | 500 | 500 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | 3,441 | 7,966 |
Fair value of securities pledged against swaps | 500 | 2,600 |
Fair value of securities pledged against repurchase agreements | $ 643,200 | 565,600 |
Linked Transactions [Member] | ||
Derivative hedging instruments, at fair value-Assets | ||
Gross Amounts of Recognized Assets | 48,764 | |
Gross Amounts Offset in the Consolidated Balance Sheets | 33,397 | |
Net Amounts of Assets Included in the Consolidated Balance Sheets | 15,367 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 0 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | |
Net Amount | 15,367 | |
Derivative hedging instruments, at fair value-Liabilities | ||
Gross Amounts of Recognized Liabilities | 33,397 | |
Gross Amounts Offset in the Consolidated Balance Sheets | 33,397 | |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 0 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 0 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | |
Net Amount | $ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | Sep. 28, 2015 | Nov. 06, 2014 | Jul. 03, 2014 | Mar. 27, 2014 | Feb. 24, 2014 | Sep. 10, 2013 | Dec. 31, 2015 | Nov. 06, 2014 |
Variable Interest Entity [Line Items] | ||||||||
Deferred tax assets, operating loss carryforwards, domestic | $ 29.7 | |||||||
Deferred tax assets, operating loss carryforwards, state and local | 74.7 | |||||||
Operating loss carryforwards | 104.4 | |||||||
Net operating loss carryforwards | $ 11.2 | |||||||
Harvest CLO VII Limited [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Ownership percentage in VIE | 9.50% | |||||||
Moselle CLO S.A. [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Ownership percentage in VIE | 88.60% | |||||||
Harvest CLO VIII Limited [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Ownership percentage in VIE | 12.60% | |||||||
Harvest X Investor [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Ownership percentage in VIE | 55.00% | 55.00% | ||||||
Harvest CLO X [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Ownership percentage in VIE | 32.10% | |||||||
Harvest CLO XV [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Ownership percentage in VIE | 100.00% | 66.00% |
INCOME TAXES (Components of Inc
INCOME TAXES (Components of Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 1,705 | $ 6,819 | $ 4,601 |
State | 430 | 2,505 | 1,068 |
Total current | 2,135 | 9,324 | 5,669 |
Deferred: | |||
Federal | (1,007) | (9,450) | (5,116) |
State | 617 | (2,086) | (1,594) |
Total deferred | (390) | (11,536) | (6,710) |
Income tax provision (benefit) | $ 1,745 | $ (2,212) | $ (1,041) |
INCOME TAXES (Reconciliation Be
INCOME TAXES (Reconciliation Between Federal Statutory Income Tax Rate and Effective Income Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax | $ 361 | $ (2,232) | $ (588) |
State and local taxes, net of federal benefit | 704 | (375) | (728) |
Permanent adjustments | 149 | 41 | 2 |
True-up of prior period tax expense | 530 | 353 | 253 |
Other items | 1 | 1 | 20 |
Income tax provision (benefit) | $ 1,745 | $ (2,212) | $ (1,041) |
INCOME TAXES (Components of Def
INCOME TAXES (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred tax assets related to: | |||
Investment in securities | $ 1,657 | $ 1,030 | |
Intangible assets basis difference | 0 | 2,533 | |
Federal, state and local loss carryforwards | 11,156 | 7,848 | |
Bad debt for reserves | 208 | 0 | |
Reserve on MSR valuation | 222 | 0 | |
Deferred revenue | 0 | 207 | |
Accrued expenses | 895 | 56 | |
Amortization of intangibles | 3,182 | 766 | |
Unrealized gains/losses | 1,725 | 1,799 | |
Mark to market adjustment | 0 | 188 | |
Charitable contribution carryforwards | 6 | 6 | |
CLCO carryforwards | 1,826 | 0 | |
Foreign exchange gain (loss) | 156 | 0 | |
Equity compensation | 34 | 167 | |
Gain (loss) on sale of investments | 0 | 116 | |
Partnership investment | 1,965 | (1,622) | |
Total deferred tax assets | 23,032 | 13,094 | |
Valuation allowance | 0 | 0 | |
Total deferred tax assets | 23,032 | 13,094 | |
Deferred tax liabilities related to: | |||
Unrealized gain (loss) on investments | (951) | (366) | |
Amortization of intangibles | (6,319) | 0 | |
Gain (loss) on sale of investments | 1,389 | 0 | |
Depreciation | (80) | (1) | |
Accrued expenses | 0 | (3) | |
Deferred revenue | (2) | 0 | |
Partnership investment | (1,645) | (90) | |
Total deferred tax liabilities | (10,386) | (460) | |
Deferred tax assets, net | [1] | $ 12,646 | $ 12,634 |
[1] | December 31, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $95 $25 Restricted cash$39,061 $121,247 Investments securities available-for-sale, pledged as collateral, at fair value66,137 119,203 Loans held for sale1,475 282Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,416,441 1,261,137 Interest receivable6,592 8,941 Prepaid expenses238 221 Principal paydown receivable17,800 25,767 Other assets833 (12) Total assets of consolidated VIEs$1,548,672 $1,536,811 |
QUARTERLY RESULTS (Details)
QUARTERLY RESULTS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 44,566 | $ 39,328 | $ 36,541 | $ 37,642 | $ 35,389 | $ 33,841 | $ 30,592 | $ 27,085 | $ 158,077 | $ 126,907 | $ 117,976 |
Interest expense | 17,721 | 17,227 | 15,803 | 14,902 | 13,726 | 11,510 | 10,610 | 9,627 | 65,653 | 45,473 | 61,010 |
Net interest income | 26,845 | 22,101 | 20,738 | 22,740 | 21,663 | 22,331 | 19,982 | 17,458 | 92,424 | 81,434 | 56,966 |
Net income (loss) allocable to common shares | $ 949 | $ 6,778 | $ (31,011) | $ 9,402 | $ 6,906 | $ 7,328 | $ 14,677 | $ 15,116 | $ 17,183 | $ 62,168 | $ 46,453 |
NET INCOME PER SHARE - BASIC (in dollars per share) | $ 0.03 | $ 0.21 | $ (0.94) | $ 0.29 | $ 0.21 | $ 0.23 | $ 0.46 | $ 0.48 | $ (0.43) | $ 1.38 | $ 1.32 |
NET INCOME PER SHARE - DILUTED (in dollars per shares) | $ 0.03 | $ 0.21 | $ (0.94) | $ 0.28 | $ 0.21 | $ 0.22 | $ 0.46 | $ 0.48 | $ (0.43) | $ 1.36 | $ 1.31 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | May. 13, 2014Defendant | Dec. 31, 2015USD ($)Loanplantiff |
Commercial Real Estate Portfolio Segment [Member] | ||
Loss Contingencies [Line Items] | ||
Category of loans (in loans) | Loan | 2 | |
PCM [Member] | ||
Loss Contingencies [Line Items] | ||
Loss contingency, number of defendants | Defendant | 90 | |
Estimate of possible loss | $ | $ 20.5 | |
Number of plaintiffs | plantiff | 4 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | $ 44,566 | $ 39,328 | $ 36,541 | $ 37,642 | $ 35,389 | $ 33,841 | $ 30,592 | $ 27,085 | $ 158,077 | $ 126,907 | $ 117,976 | |
Interest expense | 17,721 | 17,227 | 15,803 | 14,902 | 13,726 | 11,510 | 10,610 | 9,627 | 65,653 | 45,473 | 61,010 | |
Net interest income | 26,845 | 22,101 | 20,738 | 22,740 | 21,663 | 22,331 | 19,982 | 17,458 | 92,424 | 81,434 | 56,966 | |
Interest income − other | 4,259 | 6,785 | 4,212 | |||||||||
Total revenues | 101,999 | 99,446 | 82,983 | |||||||||
Segment operating expenses | 119,713 | 64,995 | 60,999 | |||||||||
General and administrative | 48,080 | 34,861 | 14,507 | |||||||||
Depreciation and amortization | 4,858 | 2,737 | 3,855 | |||||||||
Impairment losses | 372 | 0 | 863 | |||||||||
Provision for loan and lease losses | 49,889 | 1,804 | 3,020 | |||||||||
Equity in net (earnings) losses of unconsolidated subsidiaries | (2,388) | (4,767) | (949) | |||||||||
Other (income) expense | (60) | 1,262 | (391) | |||||||||
Income (loss) before taxes | 18,928 | 59,956 | 45,412 | |||||||||
Income tax (expense) benefit | (1,745) | 2,212 | 1,041 | |||||||||
Net income (loss) | 949 | $ 6,778 | $ (31,011) | $ 9,402 | 6,906 | $ 7,328 | $ 14,677 | $ 15,116 | 17,183 | 62,168 | 46,453 | |
Investments in unconsolidated subsidiaries | 50,030 | 59,827 | 50,030 | 59,827 | ||||||||
Total Assets | [1] | 2,760,432 | 2,728,679 | 2,760,432 | 2,728,679 | |||||||
Commercial Real Estate Loans [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest expense | 33,775 | 23,958 | 17,053 | |||||||||
Net interest income | 66,517 | 52,662 | 38,858 | |||||||||
Amortization of MSRs | 0 | 0 | 0 | |||||||||
Interest income − other | 0 | 8,441 | 19,923 | |||||||||
Total revenues | 66,517 | 61,103 | 58,781 | |||||||||
Segment operating expenses | 130 | 5,443 | 14,062 | |||||||||
General and administrative | 2,263 | 2,088 | 926 | |||||||||
Depreciation and amortization | 0 | 484 | 1,906 | |||||||||
Impairment losses | 0 | 0 | 328 | |||||||||
Provision for loan and lease losses | 37,736 | (3,808) | 4,292 | |||||||||
Equity in net (earnings) losses of unconsolidated subsidiaries | 277 | (4,364) | (425) | |||||||||
Gain on sale of mortgages | 0 | 0 | 0 | |||||||||
Other (income) expense | 216 | (8,003) | (13,240) | |||||||||
Income (loss) before taxes | 25,895 | 69,263 | 50,932 | |||||||||
Income tax (expense) benefit | 37 | 300 | (33) | |||||||||
Net income (loss) | 25,932 | 69,563 | 50,899 | |||||||||
Investments in unconsolidated subsidiaries | 6,465 | 654 | 6,465 | 654 | ||||||||
Total Assets | 1,907,951 | 1,576,433 | 1,907,951 | 1,576,433 | ||||||||
Commercial Finance [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest expense | 2,818 | 8,182 | 39,994 | |||||||||
Net interest income | 18,706 | 27,602 | 21,063 | |||||||||
Amortization of MSRs | 0 | 0 | 0 | |||||||||
Interest income − other | 4,865 | 6,392 | 6,115 | |||||||||
Total revenues | 23,571 | 33,994 | 27,178 | |||||||||
Segment operating expenses | 1,507 | 3,071 | 2,407 | |||||||||
General and administrative | 3,494 | 4,773 | 6,244 | |||||||||
Depreciation and amortization | 4,118 | 1,800 | 1,871 | |||||||||
Impairment losses | 372 | 0 | 535 | |||||||||
Provision for loan and lease losses | 3,352 | 5,519 | 333 | |||||||||
Equity in net (earnings) losses of unconsolidated subsidiaries | (2,608) | (478) | (994) | |||||||||
Gain on sale of mortgages | 0 | 0 | 0 | |||||||||
Other (income) expense | (8,582) | (9,277) | (7,849) | |||||||||
Income (loss) before taxes | 21,918 | 28,586 | 24,631 | |||||||||
Income tax (expense) benefit | (2,029) | (399) | (2,419) | |||||||||
Net income (loss) | 19,889 | 28,187 | 22,212 | |||||||||
Investments in unconsolidated subsidiaries | 42,017 | 57,625 | 42,017 | 57,625 | ||||||||
Total Assets | 298,028 | 639,639 | 298,028 | 639,639 | ||||||||
Middle-market Loans [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest expense | 5,331 | 806 | 0 | |||||||||
Net interest income | 26,015 | 11,072 | 607 | |||||||||
Amortization of MSRs | 0 | 0 | 0 | |||||||||
Interest income − other | 0 | 0 | 0 | |||||||||
Total revenues | 26,015 | 11,072 | 607 | |||||||||
Segment operating expenses | 2,351 | 338 | 0 | |||||||||
General and administrative | 2,360 | 352 | 0 | |||||||||
Depreciation and amortization | 2 | 0 | 0 | |||||||||
Impairment losses | 0 | 0 | 0 | |||||||||
Provision for loan and lease losses | 8,900 | 42 | 0 | |||||||||
Equity in net (earnings) losses of unconsolidated subsidiaries | 0 | 0 | 0 | |||||||||
Gain on sale of mortgages | 0 | 0 | 0 | |||||||||
Other (income) expense | (240) | (435) | 0 | |||||||||
Income (loss) before taxes | 12,642 | 10,775 | 607 | |||||||||
Income tax (expense) benefit | 0 | 0 | 0 | |||||||||
Net income (loss) | 12,642 | 10,775 | 607 | |||||||||
Investments in unconsolidated subsidiaries | 0 | 0 | 0 | 0 | ||||||||
Total Assets | 384,973 | 278,691 | 384,973 | 278,691 | ||||||||
Residential Mortgage Loans [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest expense | 3,903 | 1,347 | 81 | |||||||||
Net interest income | 921 | 1,050 | 52 | |||||||||
Amortization of MSRs | (4,504) | (1,606) | (254) | |||||||||
Interest income − other | 9,148 | 5,100 | 617 | |||||||||
Total revenues | 5,565 | 4,544 | 415 | |||||||||
Segment operating expenses | 1,229 | 1,457 | 0 | |||||||||
General and administrative | 31,871 | 20,400 | 2,552 | |||||||||
Depreciation and amortization | 611 | 379 | 59 | |||||||||
Impairment losses | 0 | 0 | 0 | |||||||||
Provision for loan and lease losses | (99) | 0 | 0 | |||||||||
Equity in net (earnings) losses of unconsolidated subsidiaries | 0 | 0 | 0 | |||||||||
Gain on sale of mortgages | (17,251) | (7,997) | (2,188) | |||||||||
Other (income) expense | (4,717) | 1,023 | 958 | |||||||||
Income (loss) before taxes | (6,079) | (10,718) | (966) | |||||||||
Income tax (expense) benefit | 3,739 | 2,932 | 475 | |||||||||
Net income (loss) | (2,340) | (7,786) | (491) | |||||||||
Investments in unconsolidated subsidiaries | 0 | 0 | 0 | 0 | ||||||||
Total Assets | 149,351 | 179,714 | 149,351 | 179,714 | ||||||||
Corporate and Other [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest expense | 19,826 | 11,180 | 3,882 | |||||||||
Net interest income | (19,735) | (10,952) | (3,614) | |||||||||
Amortization of MSRs | 0 | 0 | 0 | |||||||||
Interest income − other | 66 | (315) | (384) | |||||||||
Total revenues | (19,669) | (11,267) | (3,998) | |||||||||
Segment operating expenses | 11,297 | 15,284 | 22,285 | |||||||||
General and administrative | 8,092 | 7,248 | 4,785 | |||||||||
Depreciation and amortization | 127 | 74 | 19 | |||||||||
Impairment losses | 0 | 0 | 0 | |||||||||
Provision for loan and lease losses | 0 | 51 | (1,605) | |||||||||
Equity in net (earnings) losses of unconsolidated subsidiaries | (57) | 75 | 470 | |||||||||
Gain on sale of mortgages | 0 | 0 | 0 | |||||||||
Other (income) expense | (3,680) | 3,951 | (160) | |||||||||
Income (loss) before taxes | (35,448) | (37,950) | (29,792) | |||||||||
Income tax (expense) benefit | (3,492) | (621) | 3,018 | |||||||||
Net income (loss) | (38,940) | (38,571) | (26,774) | |||||||||
Investments in unconsolidated subsidiaries | 1,548 | 1,548 | 1,548 | 1,548 | ||||||||
Total Assets | $ 20,129 | $ 54,202 | 20,129 | 54,202 | ||||||||
Cumulative intercompany reclassification [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest expense | 65,653 | 45,473 | 61,010 | |||||||||
Net interest income | 92,424 | 81,434 | 56,966 | |||||||||
Amortization of MSRs | (4,504) | (1,606) | (254) | |||||||||
Interest income − other | 14,079 | 19,618 | 26,271 | |||||||||
Total revenues | 101,999 | 99,446 | 82,983 | |||||||||
Segment operating expenses | 16,514 | 25,593 | 38,754 | |||||||||
General and administrative | 48,080 | 34,861 | 14,507 | |||||||||
Depreciation and amortization | 4,858 | 2,737 | 3,855 | |||||||||
Impairment losses | 372 | 0 | 863 | |||||||||
Provision for loan and lease losses | 49,889 | 1,804 | 3,020 | |||||||||
Equity in net (earnings) losses of unconsolidated subsidiaries | (2,388) | (4,767) | (949) | |||||||||
Gain on sale of mortgages | (17,251) | (7,997) | (2,188) | |||||||||
Other (income) expense | (17,003) | (12,741) | (20,291) | |||||||||
Income (loss) before taxes | 18,928 | 59,956 | 45,412 | |||||||||
Income tax (expense) benefit | (1,745) | 2,212 | 1,041 | |||||||||
Net income (loss) | 17,183 | 62,168 | 46,453 | |||||||||
Other Segments [Member] | Commercial Real Estate Loans [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 89 | 1 | 6 | |||||||||
Other Segments [Member] | Commercial Finance [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 4,072 | 6,556 | 3,938 | |||||||||
Other Segments [Member] | Middle-market Loans [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 6 | 0 | 0 | |||||||||
Other Segments [Member] | Residential Mortgage Loans [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 1 | 0 | 0 | |||||||||
Other Segments [Member] | Corporate and Other [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 91 | 228 | 268 | |||||||||
Other Segments [Member] | Cumulative intercompany reclassification [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 4,259 | 6,785 | 4,212 | |||||||||
Operating Segments [Member] | Commercial Real Estate Loans [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 100,292 | 76,620 | 55,911 | |||||||||
Operating Segments [Member] | Commercial Finance [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 21,524 | 35,784 | 61,057 | |||||||||
Operating Segments [Member] | Middle-market Loans [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 31,346 | 11,878 | 607 | |||||||||
Operating Segments [Member] | Residential Mortgage Loans [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 4,824 | 2,397 | 133 | |||||||||
Operating Segments [Member] | Corporate and Other [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 91 | 228 | 268 | |||||||||
Operating Segments [Member] | Cumulative intercompany reclassification [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 158,077 | 126,907 | 117,976 | |||||||||
External Customers [Member] | Commercial Real Estate Loans [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 100,203 | 76,619 | 55,905 | |||||||||
External Customers [Member] | Commercial Finance [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 17,452 | 29,228 | 57,119 | |||||||||
External Customers [Member] | Middle-market Loans [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 31,340 | 11,878 | 607 | |||||||||
External Customers [Member] | Residential Mortgage Loans [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 4,823 | 2,397 | 133 | |||||||||
External Customers [Member] | Corporate and Other [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 0 | 0 | 0 | |||||||||
External Customers [Member] | Cumulative intercompany reclassification [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | $ 153,818 | $ 120,122 | $ 113,764 | |||||||||
[1] | December 31, 2015December 31, 2014Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Cash and cash equivalents $95 $25 Restricted cash$39,061 $121,247 Investments securities available-for-sale, pledged as collateral, at fair value66,137 119,203 Loans held for sale1,475 282Loans, pledged as collateral and net of allowances of $3.3 million and $8.8 million1,416,441 1,261,137 Interest receivable6,592 8,941 Prepaid expenses238 221 Principal paydown receivable17,800 25,767 Other assets833 (12) Total assets of consolidated VIEs$1,548,672 $1,536,811 |
SEGMENT REPORTING Textuals (Det
SEGMENT REPORTING Textuals (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | segment | 5 | ||||||||||
Interest expense | $ 17,721 | $ 17,227 | $ 15,803 | $ 14,902 | $ 13,726 | $ 11,510 | $ 10,610 | $ 9,627 | $ 65,653 | $ 45,473 | $ 61,010 |
Convertible Debt [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Interest expense | 17,400 | 8,800 | 1,500 | ||||||||
Unsecured Junior Subordinated Debentures [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Interest expense | $ 2,400 | $ 2,400 | $ 2,400 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) shares in Thousands, $ in Millions | Feb. 03, 2016Defendant | Mar. 01, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Mar. 01, 2016USD ($) |
Subsequent Event [Line Items] | ||||
Shares acquired | $ | $ 25.9 | |||
Shares, acquired (in shares) | shares | 2,000 | |||
Stock acquired, percentage | 5.90% | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Shares acquired | $ | $ 4.5 | $ 30.4 | ||
Shares, acquired (in shares) | shares | 396 | |||
Stock acquired, percentage | 7.10% | |||
Lehman Brothers Holdings Inc [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Loss contingency, number of defendants | Defendant | 100 |
Schedule II Valuation and Qu155
Schedule II Valuation and Qualifying Accounts (Details) - Allowance for Loan and Lease Losses, Real Estate [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 4,613 | $ 13,807 | $ 17,691 |
Charge to expense | 49,889 | 1,804 | 3,020 |
Write-offs | (7,027) | (10,998) | (6,904) |
Recoveries | 61 | 0 | 0 |
Balance at end of period | $ 47,536 | $ 4,613 | $ 13,807 |
Schedule III - Real Estate a156
Schedule III - Real Estate and Accumulated Depreciation (Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||
Balance, beginning of year | $ 0 | $ 32,380 | $ 77,936 |
Additions: | |||
Improvements | 0 | 25 | 268 |
Total additions | 0 | 25 | 268 |
Deductions: | |||
Cost of real estate sold | 0 | (32,405) | (20,216) |
Property available-for-sale | 0 | 0 | (25,608) |
Balance, end of year | 0 | 0 | 32,380 |
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||
Balance, beginning of year | 0 | 2,602 | 2,550 |
Depreciation expense | 0 | 433 | 1,049 |
Total additions | 0 | 433 | 1,049 |
Sales | 0 | (3,035) | (997) |
Balance, end of year | $ 0 | $ 0 | $ 2,602 |
Schedule IV Mortgage Loans o157
Schedule IV Mortgage Loans on Real Estate (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2007 | Dec. 31, 2015 | Dec. 31, 2014 | |
Mortgage Loans on Real Estate [Line Items] | |||
Basis spread on variable rate | 2.30% | ||
Allowance for Loan Loss | $ 47,071,000 | $ 4,613,000 | |
Residential Mortgage Loans [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Allowance for Loan Loss | $ 11,000 | ||
Whole Loans [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Percentage of face amount and carrying amount of loans, less than 3% | 3.00% | ||
Face Amount of Loans | $ 1,640,744,000 | ||
Net Carrying Amount of Loans | 1,627,055,000 | ||
Principal Amount of Loans subject to delinquent principal or interest | 0 | ||
Allowance for Loan Loss | 3,700,000 | ||
Whole Loans, Not Separately Disclosed [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Face Amount of Loans | 1,444,554,000 | ||
Net Carrying Amount of Loans | 1,432,482,000 | ||
Principal Amount of Loans subject to delinquent principal or interest | 0 | ||
B Notes, Not Separately Disclosed [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Face Amount of Loans | 15,934,000 | ||
Net Carrying Amount of Loans | 15,920,000 | ||
Principal Amount of Loans subject to delinquent principal or interest | $ 0 | ||
Mezzanine Loans [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Percentage of face amount and carrying amount of loans, less than 3% | 3.00% | ||
Face Amount of Loans | $ 45,368,000 | ||
Net Carrying Amount of Loans | 7,923,000 | ||
Principal Amount of Loans subject to delinquent principal or interest | 38,072,000 | ||
Allowance for Loan Loss | 38,100,000 | ||
Mezzanine Loans, Not Separately Disclosed [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Face Amount of Loans | 45,368,000 | ||
Net Carrying Amount of Loans | 7,923,000 | ||
Principal Amount of Loans subject to delinquent principal or interest | $ 38,072,000 | ||
B Notes [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Percentage of face amount and carrying amount of loans, less than 3% | 3.00% | ||
Face Amount of Loans | $ 15,934,000 | ||
Net Carrying Amount of Loans | 15,920,000 | ||
Principal Amount of Loans subject to delinquent principal or interest | 0 | ||
Allowance for Loan Loss | 16,000 | ||
Commercial Real Estate Loans [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Face Amount of Loans | 1,702,046,000 | ||
Net Carrying Amount of Loans | 1,650,898,000 | ||
Principal Amount of Loans subject to delinquent principal or interest | 38,072,000 | ||
Allowance for Loan Loss | 41,800,000 | ||
Residential Mortgage Loans, Not Separately Disclosed [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Face Amount of Loans | 96,217,000 | ||
Net Carrying Amount of Loans | 96,206,000 | ||
Principal Amount of Loans subject to delinquent principal or interest | $ 147,000 | ||
Residential Mortgage Loans [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Percentage of face amount and carrying amount of loans, less than 3% | 3.00% | ||
Face Amount of Loans | $ 96,217,000 | ||
Net Carrying Amount of Loans | 96,206,000 | ||
Principal Amount of Loans subject to delinquent principal or interest | 147,000 | ||
Allowance for Loan Loss | $ 11,000 | ||
Multi-Family Property [Member] | Houston, Texas- Borrower A [Member] | Whole Loans [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Variable rate basis, floor | 0.25% | ||
Basis spread on variable rate | 4.50% | ||
Mortgage Loans on Real Estate, Prior Liens | $ 0 | ||
Face Amount of Loans | 73,075,000 | ||
Net Carrying Amount of Loans | 72,696,000 | ||
Principal Amount of Loans subject to delinquent principal or interest | $ 0 | ||
Multi-Family Property [Member] | Houston, Texas- Borrower C [Member] | Whole Loans [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Variable rate basis, floor | 0.25% | ||
Basis spread on variable rate | 5.35% | ||
Mortgage Loans on Real Estate, Prior Liens | $ 0 | ||
Face Amount of Loans | 56,500,000 | ||
Net Carrying Amount of Loans | 56,040,000 | ||
Principal Amount of Loans subject to delinquent principal or interest | $ 0 | ||
Retail Site [Member] | Various- Borrower B [Member] | Whole Loans [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Variable rate basis, floor | 0.25% | ||
Basis spread on variable rate | 5.24% | ||
Mortgage Loans on Real Estate, Prior Liens | $ 0 | ||
Face Amount of Loans | 66,615,000 | ||
Net Carrying Amount of Loans | 65,837,000 | ||
Principal Amount of Loans subject to delinquent principal or interest | $ 0 |
Uncategorized Items - rso-20151
Label | Element | Value |
Mezzanine Loans, Fixed Rate [Member] | ||
Quantity of loans | rso_QuantityOfLoans | 1 |
Commercial Real Estate Loans [Member] | Mezzanine Loans, Fixed Rate [Member] | ||
Loans held for investment, amortized cost | rso_LoansHeldForInvestmentAmortizedCost | $ 54,808,000 |
Loans held for investment, amortized cost | rso_LoansHeldForInvestmentAmortizedCost | $ 45,372,000 |
Number Of Loan Tranches | rso_NumberOfLoanTranches | 2 |
Quantity of loans | rso_QuantityOfLoans | 3 |
Quantity of loans | rso_QuantityOfLoans | 2 |
Loans and Leases Receivable, Other Information | us-gaap_LoansAndLeasesReceivableOtherInformation | September 2,019 |
Loans Receivable, Interest Rate, Stated Percentage | rso_LoansReceivableInterestRateStatedPercentage | 9.01% |
Commercial Real Estate Loans [Member] | Mezzanine Loans, Fixed Rate, Tranche One [Member] | ||
Loans Receivable, Interest Rate, Stated Percentage | rso_LoansReceivableInterestRateStatedPercentage | 0.50% |
Commercial Real Estate Loans [Member] | Mezzanine Loans, Fixed Rate, Tranche Two [Member] | ||
Loans Receivable, Basis Spread on Variable Rate | us-gaap_LoansReceivableBasisSpreadOnVariableRate | 18.50% |
Commercial Real Estate Loans [Member] | Mezzanine Loans, Floating Rate [Member] | ||
Loans held for investment, amortized cost | rso_LoansHeldForInvestmentAmortizedCost | $ 12,558,000 |
Quantity of loans | rso_QuantityOfLoans | 1 |
The amortized cost of loans held for investments, fixed rate whole loans included in floating rate whole loans. | rso_AmortizedCostOfLoansHeldForInvestmentsFixedRateWholeLoansIncludedInFloatingRateWholeLoans | $ 4,200,000 |
Commercial Real Estate Loans [Member] | Maximum [Member] | Mezzanine Loans, Fixed Rate [Member] | ||
Loans and Leases Receivable, Other Information | us-gaap_LoansAndLeasesReceivableOtherInformation | September 2,021 |
Commercial Real Estate Loans [Member] | Maximum [Member] | Mezzanine Loans, Fixed Rate, Tranche Two [Member] | ||
Loans Receivable, Interest Rate, Stated Percentage | rso_LoansReceivableInterestRateStatedPercentage | 18.71% |
Commercial Real Estate Loans [Member] | Maximum [Member] | Mezzanine Loans, Floating Rate [Member] | ||
Loans Receivable, Description of Variable Rate Basis | us-gaap_LoansReceivableDescriptionOfVariableRateBasis | LIBOR |
Loans Receivable, Description of Variable Rate Basis | us-gaap_LoansReceivableDescriptionOfVariableRateBasis | LIBOR |
Commercial Real Estate Loans [Member] | Minimum [Member] | Mezzanine Loans, Fixed Rate [Member] | ||
Loans and Leases Receivable, Other Information | us-gaap_LoansAndLeasesReceivableOtherInformation | January 2,016 |
Loans Receivable, Interest Rate, Stated Percentage | rso_LoansReceivableInterestRateStatedPercentage | 9.01% |
Commercial Real Estate Loans [Member] | Minimum [Member] | Mezzanine Loans, Fixed Rate, Tranche Two [Member] | ||
Loans Receivable, Interest Rate, Stated Percentage | rso_LoansReceivableInterestRateStatedPercentage | 0.50% |
Commercial Real Estate Loans [Member] | Minimum [Member] | Mezzanine Loans, Floating Rate [Member] | ||
Loans and Leases Receivable, Other Information | us-gaap_LoansAndLeasesReceivableOtherInformation | April 2,016 |
Loans Receivable, Description of Variable Rate Basis | us-gaap_LoansReceivableDescriptionOfVariableRateBasis | LIBOR |
Loans Receivable, Description of Variable Rate Basis | us-gaap_LoansReceivableDescriptionOfVariableRateBasis | LIBOR |
Loans Receivable, Basis Spread on Variable Rate | us-gaap_LoansReceivableBasisSpreadOnVariableRate | 15.32% |