Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 02, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | EXANTAS CAPITAL CORP. | |
Entity Central Index Key | 0001332551 | |
Trading Symbol | XAN | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 31,867,824 | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity File Number | 1-32733 | |
Entity Tax Identification Number | 202287134 | |
Entity Address, Address Line One | 717 Fifth Avenue | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | New York | |
Entity Address, Postal Zip Code | 10022 | |
City Area Code | 212 | |
Local Phone Number | 621-3210 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS: | ||
Cash and cash equivalents | $ 47,154 | $ 82,816 |
Restricted cash | 14,062 | 12,658 |
Accrued interest receivable | 9,155 | 8,198 |
CRE loans, net of allowances of $2,597 and $1,401 | 1,948,492 | 1,551,967 |
Investment securities available-for-sale | 445,664 | 418,998 |
Principal paydowns receivable | 33,150 | 32,083 |
Investments in unconsolidated entities | 1,548 | 1,548 |
Derivatives, at fair value | 985 | |
Other assets | 4,064 | 4,015 |
Assets held for sale (amounts include $16,082 and $17,000 of legacy CRE loans held for sale in continuing operations, see Note 20) | 16,448 | 17,645 |
Total assets | 2,519,737 | 2,130,913 |
LIABILITIES | ||
Accounts payable and other liabilities | 5,278 | 7,550 |
Management fee payable | 864 | 938 |
Accrued interest payable | 5,209 | 4,224 |
Borrowings | 1,935,265 | 1,554,223 |
Distributions payable | 8,896 | 7,265 |
Derivatives, at fair value | 4,470 | 1,043 |
Accrued tax liability | 33 | 31 |
Liabilities held for sale (see Note 20) | 1,770 | 1,820 |
Total liabilities | 1,961,785 | 1,577,094 |
STOCKHOLDERS' EQUITY | ||
Common stock, par value $0.001: 125,000,000 shares authorized; 31,869,894 and 31,657,499 shares issued and outstanding (including 426,771 and 422,671 of unvested restricted shares) | 32 | 32 |
Additional paid-in capital | 1,083,772 | 1,082,677 |
Accumulated other comprehensive income (loss) | 1,677 | (3,057) |
Distributions in excess of earnings | (527,534) | (525,838) |
Total stockholders' equity | 557,952 | 553,819 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 2,519,737 | 2,130,913 |
8.625% Series C Preferred Stock | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value $0.001 | $ 5 | $ 5 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Financing receivable, allowance for credit losses | $ 2,597 | $ 1,401 |
Legacy CRE whole loans held for sale | $ 445,664 | $ 418,998 |
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) | 31,869,894 | 31,657,499 |
Common stock, shares outstanding (in shares) | 31,869,894 | 31,657,499 |
Common stock, shares issued, non-vested restricted shares (in shares) | 426,771 | 422,671 |
Assets of consolidated variable interest entities (VIEs) included in total assets above: | ||
Restricted cash | $ 6,132 | $ 6,189 |
Accrued interest receivable | 5,528 | 3,548 |
CRE loans, pledged as collateral and net of allowances of $1,718 and $763 | 1,266,549 | 700,223 |
CRE loans, pledged as collateral, allowances | 1,718 | 763 |
Principal paydowns receivable | 33,150 | 31,914 |
Other assets | 106 | 157 |
Total assets of consolidated VIEs | 1,311,465 | 742,031 |
Accounts payable and other liabilities | 147 | 75 |
Accrued interest payable | 1,268 | 709 |
Borrowings | 963,383 | 501,045 |
Total liabilities of consolidated VIEs | 964,798 | 501,829 |
Discontinued Operations, Held-for-sale | Legacy CRE Whole Loans | ||
Legacy CRE whole loans held for sale | $ 16,082 | $ 17,000 |
8.625% Series C Preferred Stock | ||
Assets of consolidated variable interest entities (VIEs) included in total assets above: | ||
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 | $ 25 |
Preferred stock, coupon authorized | 8.625% | 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 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest income: | ||||
CRE loans | $ 30,388 | $ 25,435 | $ 57,731 | $ 47,818 |
Securities | 6,591 | 4,205 | 12,966 | 7,661 |
Other | 159 | 20 | 373 | 138 |
Total interest income | 37,138 | 29,660 | 71,070 | 55,617 |
Interest expense | 21,581 | 16,159 | 40,976 | 30,543 |
Net interest income | 15,557 | 13,501 | 30,094 | 25,074 |
Other revenue | $ 26 | $ 152 | $ 52 | $ 57 |
Type of Revenue [Extensible List] | us-gaap:ProductAndServiceOtherMember | us-gaap:ProductAndServiceOtherMember | us-gaap:ProductAndServiceOtherMember | us-gaap:ProductAndServiceOtherMember |
Total revenues | $ 15,583 | $ 13,653 | $ 30,146 | $ 25,131 |
OPERATING EXPENSES | ||||
Management fees | 2,251 | 2,812 | 4,334 | 5,625 |
Equity compensation | 412 | 659 | 1,095 | 1,626 |
General and administrative | 2,495 | 2,547 | 5,072 | 5,607 |
Depreciation and amortization | 7 | 19 | 31 | 32 |
Provision for (recovery of) loan losses, net | 170 | 1,195 | (799) | |
Total operating expenses | 5,335 | 6,037 | 11,727 | 12,091 |
Net interest and other revenues less operating expenses | 10,248 | 7,616 | 18,419 | 13,040 |
OTHER INCOME (EXPENSE) | ||||
Equity in earnings (losses) of unconsolidated entities | 69 | (223) | ||
Net realized and unrealized gain on investment securities available-for-sale and loans and derivatives | 4 | 932 | 4 | 290 |
Net realized and unrealized gain on investment securities, trading | 58 | 53 | ||
Fair value adjustments on financial assets held for sale | (1,300) | 9 | (1,402) | (4,656) |
Other income | 51 | 506 | 152 | 517 |
Total other (expense) income | (1,245) | 1,574 | (1,246) | (4,019) |
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES | 9,003 | 9,190 | 17,173 | 9,021 |
Income tax (expense) benefit | (1) | 31 | ||
NET INCOME FROM CONTINUING OPERATIONS | 9,003 | 9,189 | 17,173 | 9,052 |
NET LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX | (112) | (450) | (149) | (203) |
NET INCOME | 8,891 | 8,739 | 17,024 | 8,849 |
Net income allocated to preferred shares | (2,587) | (2,587) | (5,175) | (7,797) |
Consideration paid in excess of carrying value of preferred shares | (7,482) | |||
NET INCOME (LOSS) ALLOCABLE TO COMMON SHARES | $ 6,304 | $ 6,152 | $ 11,849 | $ (6,430) |
NET INCOME (LOSS) PER COMMON SHARE - BASIC: | ||||
CONTINUING OPERATIONS (in dollars per share) | $ 0.20 | $ 0.21 | $ 0.38 | $ (0.20) |
DISCONTINUED OPERATIONS (in dollars per share) | 0 | (0.01) | 0 | (0.01) |
TOTAL NET INCOME (LOSS) PER COMMON SHARE - BASIC (in dollars per share) | 0.20 | 0.20 | 0.38 | (0.21) |
NET INCOME (LOSS) PER COMMON SHARE - DILUTED: | ||||
CONTINUING OPERATIONS (in dollars per share) | 0.20 | 0.21 | 0.38 | (0.20) |
DISCONTINUED OPERATIONS (in dollars per share) | 0 | (0.01) | 0 | (0.01) |
NET INCOME (LOSS) PER COMMON SHARE – DILUTED (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.38 | $ (0.21) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC (in shares) | 31,438,247 | 31,215,598 | 31,409,063 | 31,163,859 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED (in shares) | 31,656,180 | 31,402,010 | 31,594,046 | 31,163,859 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 8,891 | $ 8,739 | $ 17,024 | $ 8,849 |
Other comprehensive income (loss): | ||||
Reclassification adjustments for realized (gains) losses on investment securities available-for-sale included in net income | (4) | (4) | 217 | |
Unrealized gains on investment securities available-for-sale, net | 3,331 | 1,607 | 9,196 | 98 |
Reclassification adjustments associated with unrealized gains from interest rate hedges included in net income | (45) | (68) | ||
Unrealized (losses) gains on derivatives, net | (2,697) | 455 | (4,390) | 1,604 |
Total other comprehensive income | 585 | 2,062 | 4,734 | 1,919 |
Comprehensive income before allocation to preferred shares | 9,476 | 10,801 | 21,758 | 10,768 |
Net income allocated to preferred shares | (2,587) | (2,587) | (5,175) | (7,797) |
Consideration paid in excess of carrying value of preferred shares | (7,482) | |||
Comprehensive income (loss) allocable to common shares | $ 6,889 | $ 8,214 | $ 16,583 | $ (4,511) |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Stock | Preferred Stock8.25% Series B Preferred Stock | Preferred Stock8.625% Series C Preferred Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Distributions in Excess of Earnings |
Beginning balance at Dec. 31, 2017 | $ 671,476 | $ 31 | $ 5 | $ 5 | $ 1,187,911 | $ 1,297 | $ (517,773) | |
Beginning balance (in shares) at Dec. 31, 2017 | 31,429,892 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | 1 | $ 1 | ||||||
Stock-based compensation | 236,387 | |||||||
Amortization of stock-based compensation | 1,626 | 1,626 | ||||||
Retirement of common stock | (70) | (70) | ||||||
Retirement of common shares (in shares) | (7,134) | |||||||
Forfeiture of unvested stock (in shares) | (1,725) | |||||||
Net income | 8,849 | $ 8,849 | ||||||
Distributions on preferred stock | (7,797) | (7,797) | ||||||
Preferred stock redemption | (115,368) | $ (5) | (107,881) | (7,482) | ||||
Securities available-for-sale, fair value adjustment, net | 315 | 315 | ||||||
Designated derivatives, fair value adjustment | 1,604 | 1,604 | ||||||
Distributions on common stock | (4,749) | 6,430 | (11,179) | |||||
Ending balance at Jun. 30, 2018 | 555,887 | $ 32 | 5 | 1,081,586 | 3,216 | (528,952) | ||
Ending balance (in shares) at Jun. 30, 2018 | 31,657,420 | |||||||
Beginning balance at Dec. 31, 2018 | $ 553,819 | $ 32 | 5 | 1,082,677 | (3,057) | (525,838) | ||
Beginning balance (in shares) at Dec. 31, 2018 | 31,657,499 | 31,657,499 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | 220,848 | |||||||
Amortization of stock-based compensation | $ 1,095 | 1,095 | ||||||
Forfeiture of unvested stock (in shares) | (8,453) | |||||||
Net income | 17,024 | 17,024 | ||||||
Distributions on preferred stock | (5,175) | (5,175) | ||||||
Securities available-for-sale, fair value adjustment, net | 9,192 | 9,192 | ||||||
Designated derivatives, fair value adjustment | (4,458) | (4,458) | ||||||
Distributions on common stock | (13,545) | $ (11,849) | (1,696) | |||||
Ending balance at Jun. 30, 2019 | $ 557,952 | $ 32 | $ 5 | $ 1,083,772 | $ 1,677 | $ (527,534) | ||
Ending balance (in shares) at Jun. 30, 2019 | 31,869,894 | 31,869,894 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 17,024 | $ 8,849 |
Net loss from discontinued operations, net of tax | 149 | 203 |
NET INCOME FROM CONTINUING OPERATIONS | 17,173 | 9,052 |
Adjustments to reconcile net income from continuing operations to net cash provided by continuing operating activities: | ||
Provision for (recovery of) loan losses, net | 1,195 | (799) |
Depreciation, amortization and accretion | 1,293 | 980 |
Amortization of stock-based compensation | 1,095 | 1,626 |
Principal payments on syndicated corporate loans held for sale | 60 | |
Principal payments on investment securities, trading | 241 | |
Net realized and unrealized gain on investment securities, trading | (53) | |
Net realized and unrealized gain on investment securities available-for-sale and loans and derivatives | (4) | (290) |
Fair value adjustments on financial assets held for sale | 1,402 | 4,656 |
Equity in losses of unconsolidated entities | 223 | |
Changes in operating assets and liabilities | (4,462) | 6,035 |
Net cash provided by continuing operating activities | 17,692 | 21,731 |
Net cash (used in) provided by discontinued operating activities | (35) | 621 |
Net cash provided by operating activities | 17,657 | 22,352 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Origination and purchase of loans | (616,447) | (331,473) |
Principal payments received on loans | 220,024 | 277,275 |
Proceeds from sale of loans | 12,000 | |
Purchase of investment securities available-for-sale | (38,723) | (113,855) |
Principal payments on investment securities available-for-sale | 24,003 | 8,715 |
Proceeds from sale of investment securities available-for-sale | 638 | 48 |
Return of capital from investments in unconsolidated entities | 10,172 | |
Settlement of derivative instruments | (46) | |
Net cash used in continuing investing activities | (410,505) | (137,164) |
Net cash provided by discontinued investing activities | 135 | 27,557 |
Net cash used in investing activities | (410,370) | (109,607) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Retirement of common stock | (69) | |
Repurchase of preferred stock | (165,340) | |
Proceeds from borrowings: | ||
Repurchase agreements | 517,142 | 375,395 |
Securitizations | 575,811 | 397,452 |
Payments on borrowings: | ||
Repurchase agreements | (601,483) | (435,917) |
Securitizations | (109,423) | (177,762) |
Payment of debt issuance costs | (6,504) | (7,371) |
Distributions paid on preferred stock | (5,175) | (10,082) |
Distributions paid on common stock | (11,913) | (3,154) |
Net cash provided by (used in) continuing financing activities | 358,455 | (26,848) |
Net cash provided by discontinued financing activities | ||
Net cash provided by (used in) financing activities | 358,455 | (26,848) |
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (34,258) | (114,103) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | 95,474 | 204,364 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 61,216 | 90,261 |
SUPPLEMENTAL DISCLOSURE: | ||
Interest expense paid in cash | $ 36,338 | $ 25,867 |
ORGANIZATION
ORGANIZATION | 6 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
ORGANIZATION | NOTE 1 - ORGANIZATION Exantas Capital Corp., a Maryland corporation, and its subsidiaries (collectively, the "Company") is a real estate investment trust ("REIT") that is primarily focused on originating, holding and managing commercial real estate mortgage loans and other commercial real estate-related debt investments. The Company is externally managed by Exantas Capital Manager Inc. (the "Manager"), which is an indirect wholly-owned subsidiary of C-III Capital Partners LLC ("C-III"), a leading commercial real estate ("CRE") investment management and services company engaged in a broad range of activities. C-III is the beneficial owner of approximately 2.4% of the Company's outstanding common shares at June 30, 2019. The Company has qualified, and expects to qualify in the current fiscal year, as a REIT. In November 2016, the Company's board of directors (the "Board") approved the strategic plan (the "Plan") to focus its strategy on CRE debt investments. The Plan contemplated disposing of certain loans underwritten prior to 2010 ("legacy CRE loans"), exiting underperforming non-core asset classes and businesses and maintaining a dividend policy based on sustainable earnings. The Company's residential mortgage and middle market lending segments' assets and liabilities were classified as held for sale and its operations were reported as discontinued operations and have been excluded from continuing operations. The Company has substantially completed the execution of the Plan. See Note 20 for further discussion. The Company conducts its operations through the use of subsidiaries that it consolidates into its financial statements. The Company's core assets are consolidated through its investment in RCC Real Estate, Inc. ("RCC RE"), a wholly-owned subsidiary that holds CRE loans, CRE-related securities and investments in CRE securitizations, which are consolidated as VIEs, as discussed in Note 3. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2019 | |
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") and the accounting policies set forth in Note 2 included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018. The consolidated financial statements include the accounts of the Company, majority-owned or controlled subsidiaries and VIEs for which the Company is considered the primary beneficiary. All inter-company transactions and balances have been eliminated in consolidation. Basis of Presentation All adjustments necessary to present fairly the Company's financial position, results of operations and cash flows have been made. 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. At June 30, 2019 and December 31, 2018, approximately $44.4 million and $80.4 million, respectively, of the reported cash balances exceeded the Federal Deposit Insurance Corporation and Securities Investor Protection Corporation deposit insurance limits of $250,000 per respective depository or brokerage institution. However, all of the Company's cash deposits are held at multiple, established financial institutions, in multiple accounts associated with its parent and respective consolidated subsidiaries, to minimize credit risk exposure. Restricted cash includes required account balance minimums primarily for the Company's CRE collateralized debt obligation ("CDO") securitizations and derivative instruments as well as cash held in the syndicated corporate loan CDOs. The following table provides a reconciliation of cash, cash equivalents and restricted cash on the consolidated balance sheets to the total amount shown on the consolidated statements of cash flows (in thousands): June 30, 2019 2018 Cash and cash equivalents $ 47,154 $ 80,191 Restricted cash 14,062 10,070 Total cash, cash equivalents and restricted cash shown on the Company's consolidated statements of cash flows $ 61,216 $ 90,261 Discontinued Operations The results of operations of a component or a group of components of the Company that either has been disposed of or is classified as held for sale is reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company's operations and financial results. Income Taxes The Company recorded a full valuation allowance against its net deferred tax assets of $54.6 million and $58.4 million (tax effected expense of $16.0 million and $15.3 million) at June 30, 2019 and December 31, 2018, respectively, as the Company believes it is more likely than not that the deferred tax assets will not be realized. This assessment was based on the Company's cumulative historical losses and uncertainties as to the amount of taxable income that would be generated in future years by the Company's taxable REIT subsidiaries. Share-Based Compensation Issuances of restricted stock and options are initially measured at fair value on the grant date and expensed monthly on a straight-line basis over the service period to equity compensation expense on the consolidated statements of operations, with a corresponding entry to additional paid-in capital on the consolidated balance sheets. Effective January 1, 2019, in accordance with updated guidance under GAAP, the fair value of all unvested issuances of restricted stock and options is not remeasured after the initial grant date. Previously, the Company adjusted unvested issuances of restricted stock and options to the Manager and to non-employees quarterly to reflect changes in fair value. Recent Accounting Standards Accounting Standards Adopted in In June 2018, the Financial Accounting Standards Board (the "FASB") issued guidance to simplify the accounting for share-based payment transactions for acquiring goods and services from nonemployees by including these payments in the scope of the guidance for share-based payments to employees. In accordance with the guidance, the Company's unvested issuances to the Manager and to non-employees granted prior to the January 1, 2019 adoption date were remeasured at fair value as of the adoption date with no subsequent remeasurement. Unvested issuances will continue to be amortized on a straight-line basis over the service period. In February 2018, the FASB issued guidance to allow a reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Adoption did not have a material impact on the Company's consolidated financial statements. In August 2017, the FASB issued guidance to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities. Additionally, the guidance simplifies the application of the hedge accounting guidance via certain targeted improvements. In October 2018, the FASB updated the guidance to add a benchmark interest rate permitted for hedge accounting purposes. Adoption did not have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued guidance requiring lessees to recognize a lease liability and a right-of-use asset for all leases. Lessor accounting remains largely unchanged. The guidance also requires new qualitative and quantitative disclosures to help financial statement users better understand the timing, amount and uncertainty of cash flows arising from leases. Adoption did not have a material impact on the Company's consolidated financial statements. Accounting Standards to be Adopted in Future Periods In August 2018, the FASB issued guidance to modify the fair value measurement disclosure requirements, including: disclosures on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, the policy for timing of transfers between levels and the narrative description of measurement uncertainty. The guidance is effective for annual reporting periods beginning after December 15, 2019, and interim periods within that reporting period. The Company is in the process of evaluating the impact of this new guidance. In January 2017, the FASB issued guidance to add the Securities and Exchange Commission ("SEC") Staff Announcement "Disclosure of the Impact that Recently Issued Accounting Standards will have on the Financial Statements of a Registrant when such Standards are Adopted in a Future Period (in accordance with Staff Accounting Bulletin Topic 11.M)." The announcement applies to the May 2014 guidance on revenue recognition from contracts with customers, the February 2016 guidance on leases and the June 2016 guidance on how credit losses for financial assets at amortized cost and certain other instruments that are measured at fair value through net income are determined. The announcement provides the SEC staff view that a registrant should evaluate certain recent accounting standards that have not yet been adopted to determine appropriate financial statement disclosures about the potential material effects of those recent accounting standards. If a registrant does not know or cannot reasonably estimate the impact that adoption of the recent accounting standards referenced in this announcement is expected to have on the financial statements, then the registrant should make a statement to that effect and consider the additional qualitative financial statement disclosures to assist the reader in assessing the significance of the impact that the recent accounting standards will have on the financial statements of the registrant when adopted. The Company completed its assessment under the new guidance on revenue recognition from contracts with customers in 2018 and on leases, see "Accounting Standards Adopted in 2019." While the Company is currently evaluating the impact of the guidance on the measurement of credit losses on financial instruments, the Company expects this standard will impact the consolidated financial statements, as described below. In June 2016, the FASB issued guidance that will change how credit losses for most financial assets and certain other instruments that are measured at fair value through net income are determined. The new guidance will replace the current incurred loss approach with an expected loss model for instruments measured at amortized cost. For available-for-sale debt securities, the guidance requires recording allowances rather than reducing the carrying amount, as it is currently under the other-than-temporary impairment model. It also simplifies the accounting model for credit-impaired debt securities and loans. This guidance is effective for annual reporting periods beginning after December 15, 2019, and interim periods within that reporting period, with any adjustments reflected as of the beginning of the fiscal year of adoption. While the Company is currently evaluating the impact of this new guidance, the Company expects this standard will impact the consolidated financial statements, in particular the level of the provision for loan losses. Reclassifications Certain reclassifications have been made to the 2018 consolidated financial statements to conform to the 2019 presentation. These reclassifications had no effect on the reported consolidated statements of operations. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2019 | |
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), securitizations, guarantees and other financial contracts in order to determine if they are variable interests in VIEs. The Company regularly monitors these legal interests and contracts and, to the extent it has determined that it has a variable interest, analyzes the related entity for potential consolidation. Consolidated VIEs (the Company is the primary beneficiary) Based on management's analysis, the Company was the primary beneficiary of six and five VIEs at June 30, 2019 and December 31, 2018, respectively (collectively, the "Consolidated VIEs"). The Consolidated VIEs are CRE securitizations, CDOs and collateralized loan obligations that were formed on behalf of the Company to invest in real estate-related securities, commercial mortgage-backed securities ("CMBS"), syndicated corporate loans, corporate bonds and asset-backed securities ("ABS") and were financed by the issuance of debt securities. The Manager, with the help of C-III Asset Management LLC ("C3AM"), a subsidiary of C-III, manages the CRE-related entities. By financing these assets with long-term borrowings through the issuance of debt securities, 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. The Company has exposure to losses on its securitizations to the extent of its investments in the subordinated debt and preferred equity of each securitization. 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, the debt and equity interests the Company holds in these securitizations have been eliminated, and the Company's consolidated balance sheets reflect the assets held, debt issued by the securitizations to third parties and any accrued payables 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. For a discussion of the debt issued through the securitizations see Note 9. Creditors of the Company's Consolidated VIEs have no recourse to the general credit of the Company, nor to each other. During the six months ended June 30, 2019 and 2018, the Company did not provide any financial support to any 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 values of assets and liabilities of the Company's Consolidated VIEs at June 30, 2019 (in thousands): CRE Securitizations Other Total ASSETS Restricted cash $ 5,700 $ 432 $ 6,132 Accrued interest receivable 5,528 — 5,528 CRE loans, pledged as collateral 1,266,549 — 1,266,549 Principal paydowns receivable 33,150 — 33,150 Other assets 106 — 106 Total assets (1) $ 1,311,033 $ 432 $ 1,311,465 LIABILITIES Accounts payable and other liabilities $ 147 $ — $ 147 Accrued interest payable 1,268 — 1,268 Borrowings 963,383 — 963,383 Total liabilities $ 964,798 $ — $ 964,798 (1) Assets of each of the Consolidated VIEs may only be used to settle the obligations of each respective VIE. 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 at June 30, 2019. 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. 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"), respectively, with a value of $1.5 million in the aggregate, or 3.0% of each trust, at June 30, 2019. RCT I and RCT II were formed for the purposes of providing debt financing to the Company. 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 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 of $774,000 each as investments in unconsolidated entities using the cost method, recording 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 each of RCT I and 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 is deemed to be the primary beneficiary of the trusts. Wells Fargo Commercial Mortgage Trust 2017-C40 In October 2017, the Company purchased 95% of the Class E, F, G, H and J certificates of Wells Fargo Commercial Mortgage Trust 2017-C40 ("C40"), a B-piece investment in a Wells Fargo Commercial Mortgage Securities, Inc., private-label, $705.4 million securitization. C3AM, a related party that is not under common control, is the special servicer of C40. The Company determined that although its investment in C40 represented a variable interest, its investment did not provide the Company with a controlling financial interest. The Company accounts for its various investments in C40 as investment securities available-for-sale on its consolidated financial statements. Prospect Hackensack JV LLC In March 2018, the Company invested $19.2 million in the preferred equity of Prospect Hackensack JV LLC ("Prospect Hackensack"), a joint venture between the Company and an unrelated third party ("Managing Member"). Prospect Hackensack was formed for the purpose of acquiring and operating a multifamily CRE property. The Managing Member manages the daily operations of the property. The Company determined that although its investment in Prospect Hackensack represented a variable interest, its investment did not provide the Company with a controlling financial interest. The Company accounts for its investment in Prospect Hackensack's preferred equity as a CRE loan on its consolidated financial statements. WC Newhall MM, LLC In June 2019, the Company invested $5.5 million in the preferred equity of WC Newhall MM, LLC ("Santa Clarita"), a joint venture between the Company and two unrelated third parties ("Sponsor Members"). Santa Clarita was formed for the purpose of refinancing a self-storage CRE property. The Sponsor Members manage the daily operations of the property. The Company determined that although its investment in Santa Clarita represented a variable interest, its investment did not provide the Company with a controlling financial interest. The Company accounts for its investment in Santa Clarita's preferred equity as a CRE loan on 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 at June 30, 2019 (in thousands): Unsecured Junior Subordinated Debentures C40 Prospect Hackensack Santa Clarita Total Maximum Exposure to Loss ASSETS Accrued interest receivable $ 110 $ 167 $ — $ — $ 277 $ — CRE loans — — 19,994 5,416 25,410 $ 25,410 Investment securities available-for-sale (1) — 21,952 — — 21,952 $ 21,709 Investments in unconsolidated entities 1,548 — — — 1,548 $ 1,548 Total assets 1,658 22,119 19,994 5,416 49,187 LIABILITIES Accrued interest payable 716 — — — 716 N/A Borrowings 51,548 — — — 51,548 N/A Total liabilities 52,264 — — — 52,264 N/A Net (liability) asset $ (50,606 ) $ 22,119 $ 19,994 $ 5,416 $ (3,077 ) N/A (1) The Company's investment in C40 is carried at fair value and its maximum exposure to loss is the amortized cost of the investment. At June 30, 2019, 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 | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | NOTE 4 - SUPPLEMENTAL CASH FLOW INFORMATION The following table summarizes the Company's supplemental disclosure of cash flow information (in thousands): For the Six Months Ended June 30, 2019 2018 Non-cash continuing financing activities include the following: Distributions on common stock accrued but not paid $ 7,172 $ 3,166 Distributions on preferred stock accrued but not paid $ 1,725 $ 1,725 |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2019 | |
Loans Held For Investment [Abstract] | |
LOANS | NOTE 5 - LOANS The following is a summary of the Company's loans (dollars in thousands, except amounts in footnotes): Description Quantity Principal Unamortized (Discount) Premium, net (1) Amortized Cost Allowance for Loan Losses Carrying Value (2) Contractual Interest Rates (3) Maturity Dates (4)(5) At June 30, 2019: CRE loans held for investment: Whole loans (6) 117 $ 1,928,828 $ (7,849 ) $ 1,920,979 $ (2,597 ) $ 1,918,382 1M LIBOR plus 2.70% to 1M LIBOR plus 6.25% July 2019 to July 2022 Mezzanine loan 1 4,700 — 4,700 — 4,700 10.00% June 2028 Preferred equity investments (see Note 3) (6)(7)(8) 2 25,565 (155 ) 25,410 — 25,410 11.00% to 11.50% June 2022 to April 2025 Total CRE loans held for investment $ 1,959,093 $ (8,004 ) $ 1,951,089 $ (2,597 ) $ 1,948,492 At December 31, 2018: CRE loans held for investment: Whole loans (6) 79 $ 1,538,759 $ (9,646 ) $ 1,529,113 $ (1,401 ) $ 1,527,712 1M LIBOR plus 2.70% to 1M LIBOR plus 6.25% January 2019 to January 2022 Mezzanine loan 1 4,700 — 4,700 — 4,700 10.00% June 2028 Preferred equity investment (see Note 3) (6)(7)(8) 1 19,718 (163 ) 19,555 — 19,555 11.50% April 2025 Total CRE loans held for investment $ 1,563,177 $ (9,809 ) $ 1,553,368 $ (1,401 ) $ 1,551,967 (1) Amounts include unamortized loan origination fees of $10.0 million and $9.6 million and deferred amendment fees of $245,000 and $171,000 at June 30, 2019 and December 31, 2018, respectively. Additionally, the amounts include unamortized loan acquisition costs of $2.3 million at June 30, 2019. There were no unamortized loan acquisition costs at December 31, 2018. (2) Substantially all loans are pledged as collateral under various borrowings at June 30, 2019 and December 31, 2018. (3) LIBOR refers to the London Interbank Offered Rate. (4) Maturity dates exclude contractual extension options, subject to the satisfaction of certain terms that may be available to the borrowers. ( 5 ) Maturity dates exclude one whole loan, with an amortized cost of $11.5 million, in maturity default and performing with respect to debt service due in accordance with a forbearance agreement at June 30, 2019 and December 31, 2018. ( 6 ) Whole loans had $119.7 million and $108.1 million in unfunded loan commitments at June 30, 2019 and December 31, 2018, respectively. Preferred equity investments had $3.2 million in unfunded commitments at June 30, 2019. There were no preferred equity investment unfunded commitments at December 31, 2018. These unfunded loan commitments are advanced as the borrowers formally request additional funding and meet certain benchmarks, as permitted under the loan agreement, and any necessary approvals have been obtained. ( 7 ) The interest rate on the Company's preferred equity investments each pay currently at 8.00%. The remaining interest is deferred until maturity. ( 8 ) Beginning in April 2023, the Company has the right to unilaterally force the sale of Prospect Hackensack's underlying property. The following is a summary of the contractual maturities, assuming full exercise of the extension options available to the borrowers, of the Company's CRE loans held for investment, at amortized cost (in thousands, except amount in the footnote): Description 2019 2020 2021 and Thereafter Total At June 30, 2019: Whole loans (1) $ 10,399 $ 167,483 $ 1,731,581 $ 1,909,463 Mezzanine loan — — 4,700 4,700 Preferred equity investments — — 25,410 25,410 Total CRE loans (1) $ 10,399 $ 167,483 $ 1,761,691 $ 1,939,573 Description 2019 2020 2021 and Thereafter Total At December 31, 2018: Whole loans (1) $ 10,379 $ 182,422 $ 1,324,797 $ 1,517,598 Mezzanine loan — — 4,700 4,700 Preferred equity investment — — 19,555 19,555 Total CRE loans (1) $ 10,379 $ 182,422 $ 1,349,052 $ 1,541,853 (1) Excludes one whole loan, with an amortized cost of $11.5 million, in maturity default and performing with respect to debt service due in accordance with a forbearance agreement at June 30, 2019 and December 31, 2018. At June 30, 2019, approximately 23.8%, 21.6% and 13.5% of the Company's CRE loan portfolio was concentrated in the Southwest, Mountain and Pacific regions, respectively, based on carrying value, as defined by the National Council of Real Estate Investment Fiduciaries. At December 31, 2018, approximately 32.3%, 20.9%, and 17.1% of the Company's CRE loan portfolio was concentrated in the Southwest, Mountain and Pacific regions, respectively, based on carrying value. Principal Paydowns Receivable Principal paydowns receivable represents loan principal payments that have been received by the Company's servicers and trustees but have not been remitted to the Company. At June 30, 2019, the Company had $33.2 million of loan principal paydowns receivable, all of which was received in cash by the Company in July 2019. At December 31, 2018, the Company had $32.1 million of loan principal paydowns receivable, all of which was received in cash by the Company in January 2019. |
FINANCING RECEIVABLES
FINANCING RECEIVABLES | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
FINANCING RECEIVABLES | NOTE 6 - FINANCING RECEIVABLES The following tables show the activity in the allowance for loan losses for the six months ended June 30, 2019 and year ended December 31, 2018 and the allowance for loan losses and recorded investments in loans at June 30, 2019 and December 31, 2018 (in thousands, except amount in the footnote): Six Months Ended June 30, 2019 Year Ended December 31, 2018 Commercial Real Estate Loans Commercial Real Estate Loans Allowance for loan losses: Allowance for loan losses at beginning of period $ 1,401 $ 5,328 Provision for (recovery of) loan losses, net (1) 1,196 (1,595 ) Loans charged-off — (2,332 ) Allowance for loan losses at end of period $ 2,597 $ 1,401 (1) Excludes the recovery of loan losses on one bank loan with no amortized cost or carrying value at June 30, 2019 and December 31, 2018 that received a payment of approximately $1,000 during the six months ended June 30, 2019. June 30, 2019 December 31, 2018 Commercial Real Estate Loans Commercial Real Estate Loans Allowance for loan losses ending balance: Individually evaluated for impairment $ — $ — Collectively evaluated for impairment $ 2,597 $ 1,401 Loans: Amortized cost ending balance: Individually evaluated for impairment (1) $ 30,110 $ 24,255 Collectively evaluated for impairment $ 1,920,979 $ 1,529,113 (1) The Company's mezzanine loan and preferred equity investments are evaluated individually for impairment. Credit quality indicators Commercial Real Estate Loans CRE loans are collateralized by a diversified mix of real estate properties and are assessed for credit quality based on the collective evaluation of several factors, including but not limited to: collateral performance relative to underwritten plan, time since origination, current implied and/or reunderwritten loan-to-collateral value ratios, loan structure and exit plan. Depending on the loan's performance against these various factors, loans are rated on a scale from 1 to 5, with loans rated 1 representing loans with the highest credit quality and loans rated 5 representing loans with the lowest credit quality. The factors evaluated provide general criteria to monitor credit migration in the Company's loan portfolio; as such, a loan's rating may improve or worsen, depending on new information received. The criteria set forth below should be used as general guidelines and, therefore, not every loan will have all of the characteristics described in each category below. Loans that are performing according to their underwritten plans generally will not require an allowance for loan loss. Risk Rating Risk Characteristics 1 • Property performance has surpassed underwritten expectations. • Occupancy is stabilized, the property has had a history of consistently high occupancy, and the property has a diverse and high quality tenant mix. 2 • Property performance is consistent with underwritten expectations and covenants and performance criteria are being met or exceeded. • Occupancy is stabilized, near stabilized or is on track with underwriting. 3 • Property performance lags behind underwritten expectations. • Occupancy is not stabilized and the property has some tenancy rollover. 4 • Property performance significantly lags behind underwritten expectations. Performance criteria and loan covenants have required occasional waivers. • Occupancy is not stabilized and the property has a large amount of tenancy rollover. 5 • Property performance is significantly worse than underwritten expectations. The loan is not in compliance with loan covenants and performance criteria and may be in default. Expected sale proceeds would not be sufficient to pay off the loan at maturity. • The property has a material vacancy rate and significant rollover of remaining tenants. • An updated appraisal is required upon designation and updated on an as-needed basis. All CRE loans are evaluated for any credit deterioration by debt asset management and certain finance personnel on at least a quarterly basis. Whole loans are first individually evaluated for impairment; and to the extent not deemed impaired, a general reserve is established. The allowance for loan loss is computed as (i) 1.5% of the aggregate face values of loans rated as a 3, plus (ii) 5.0% of the aggregate face values of loans rated as a 4, plus (iii) specific allowances measured and determined on loans individually evaluated, which are loans rated as a 5. While the overall risk rating is generally not the sole factor used in determining whether a loan is impaired, a loan with a higher overall risk rating would tend to have more adverse indicators of impairment, and therefore would be more likely to experience a credit loss. The Company's mezzanine loan and preferred equity investments are evaluated individually for impairment. Credit risk profiles of CRE loans at amortized cost and legacy CRE loans held for sale at the lower of cost or fair value were as follows (in thousands, except amounts in footnotes): Rating 1 Rating 2 Rating 3 (1) Rating 4 Rating 5 Held for Sale (2) Total At June 30, 2019: Whole loans $ — $ 1,758,536 $ 158,095 $ 4,348 $ — $ — $ 1,920,979 Mezzanine loan (3) — 4,700 — — — — 4,700 Preferred equity investments (3) — 25,410 — — — — 25,410 Legacy CRE loans held for sale — — — — — 16,082 16,082 Total $ — $ 1,788,646 $ 158,095 $ 4,348 $ — $ 16,082 $ 1,967,171 At December 31, 2018: Whole loans $ — $ 1,447,206 $ 77,067 $ 4,840 $ — $ — $ 1,529,113 Mezzanine loan (3) — 4,700 — — — — 4,700 Preferred equity investment (3) — 19,555 — — — — 19,555 Legacy CRE loans held for sale — — — — — 17,000 17,000 Total $ — $ 1,471,461 $ 77,067 $ 4,840 $ — $ 17,000 $ 1,570,368 (1) Includes one whole loan, with an amortized cost of $11.5 million, which was in maturity default at June 30, 2019 and December 31, 2018. The loan is performing with respect to debt service due in accordance with a forbearance agreement at June 30, 2019 and December 31, 2018. ( 2 ) Includes one legacy CRE loan that was in default with a total carrying value of $16.1 million and $17.0 million at June 30, 2019 and December 31, 2018, respectively. ( 3 ) The Company's mezzanine loan and preferred equity investments are evaluated individually for impairment. Loan Portfolios Aging Analysis The following table presents the CRE loan portfolio aging analysis as of the dates indicated for CRE loans at amortized cost and legacy CRE loans held for sale at the lower of cost or fair value (in thousands, except amounts in footnotes): 30-59 Days 60-89 Days Greater than 90 Days (1)(2) Total Past Due Current Total Loans Receivable Total Loans > 90 Days and Accruing (1) At June 30, 2019: Whole loans $ — $ — $ 11,516 $ 11,516 $ 1,909,463 $ 1,920,979 $ 11,516 Mezzanine loan — — — — 4,700 4,700 — Preferred equity investments — — — — 25,410 25,410 — Legacy CRE loans held for sale — — 16,082 16,082 — 16,082 — Total $ — $ — $ 27,598 $ 27,598 $ 1,939,573 $ 1,967,171 $ 11,516 At December 31, 2018: Whole loans $ — $ — $ 11,516 $ 11,516 $ 1,517,597 $ 1,529,113 $ 11,516 Mezzanine loan — — — — 4,700 4,700 — Preferred equity investment — — — — 19,555 19,555 — Legacy CRE loans held for sale — — 17,000 17,000 — 17,000 — Total $ — $ — $ 28,516 $ 28,516 $ 1,541,852 $ 1,570,368 $ 11,516 ( 1 ) Includes one whole loan, with an amortized cost of $11.5 million, which was in maturity default at June 30, 2019 and December 31, 2018. The loan is performing with respect to debt service due in accordance with a forbearance agreement at June 30, 2019 and December 31, 2018. During the three and six months ended June 30, 2019, the Company recognized interest income of $165,000 and $330,000, respectively, on this whole loan. During the three and six months ended June 30, 2018, the Company recognized $152,000 and $302,000, respectively, on this whole loan. ( 2 ) Includes one legacy CRE loan that was in default with a total carrying value of $16.1 million and $17.0 million at June 30, 2019 and December 31, 2018, respectively. Impaired Loans The Company did not have any impaired loans at June 30, 2019 and December 31, 2018. Troubled-Debt Restructurings ("TDRs") There were no TDRs for the six months ended June 30, 2019 and 2018. |
INVESTMENT SECURITIES AVAILABLE
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | 6 Months Ended |
Jun. 30, 2019 | |
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 available-for-sale, carried at fair value, including those pledged as collateral (in thousands, except amounts in the footnote): Amortized Cost Unrealized Gains Unrealized Losses Fair Value (1) At June 30, 2019: CMBS, fixed rate $ 118,753 $ 5,833 $ (738 ) $ 123,848 CMBS, floating rate 321,341 1,324 (849 ) 321,816 Total $ 440,094 $ 7,157 $ (1,587 ) $ 445,664 At December 31, 2018: CMBS, fixed rate $ 121,487 $ 559 $ (2,307 ) $ 119,739 CMBS, floating rate 301,132 253 (2,126 ) 299,259 Total $ 422,619 $ 812 $ (4,433 ) $ 418,998 (1) At June 30, 2019 and December 31, 2018, investment securities available-for-sale with fair values of $420.2 million and $388.4 million, respectively, were pledged as collateral under related financings. The following table summarizes the estimated payoff dates of the Company's investment securities available-for-sale according to their estimated weighted average life classifications (dollars in thousands, except amounts in footnotes): June 30, 2019 December 31, 2018 Amortized Cost (1) Fair Value (1) Weighted Average Coupon Amortized Cost (1) Fair Value (1) Weighted Average Coupon Less than one year (2) $ 91,948 $ 91,924 5.55% $ 126,446 $ 126,014 5.76% Greater than one year and less than five years 133,745 134,728 5.53% 98,220 97,083 5.21% Greater than five years and less than ten years 214,401 219,012 4.08% 197,953 195,901 4.06% Total $ 440,094 $ 445,664 4.76% $ 422,619 $ 418,998 4.76% (1) Includes CMBS positions subject to other-than-temporary-impairment that have no stated coupon rates that are excluded from the calculation of the weighted average coupon rate. The positions with greater than one year and less than five years of projected life had amortized costs of $106,000 and $105,000 and no fair values at June 30, 2019 and December 31, 2018, respectively. There were no positions subject to other-than-temporary impairment with projected lives less than one year and greater than five years and less than ten years at June 30, 2019 and December 31, 2018. ( 2 ) The Company expects that the payoff dates of these CMBS will either be extended or that the securities will be paid off in full. At June 30, 2019, the contractual maturities, which may be different than the estimated weighted average lives reflected in the table above, of the CMBS investment securities available-for-sale range from December 2024 to August 2061. The following table summarizes the fair value, gross unrealized losses and number of securities aggregated by investment category and the length of time that individual investment securities available-for-sale have been in a continuous unrealized loss position during the periods specified (dollars in thousands): Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities At June 30, 2019: CMBS $ 118,681 $ (1,505 ) 21 $ 1,624 $ (82 ) 6 $ 120,305 $ (1,587 ) 27 At December 31, 2018: CMBS $ 329,441 $ (4,001 ) 49 $ 6,757 $ (432 ) 7 $ 336,198 $ (4,433 ) 56 The unrealized losses in the above table are considered to be temporary impairments due to market factors and are not reflective of credit deterioration. The Company recognized no other-than-temporary impairments on its investment securities available-for-sale for the three and six months ended June 30, 2019 and 2018. The following table summarizes the Company's sales and redemptions of investment securities available-for-sale for the three and six months ended June 30, 2019 and 2018 (dollars in thousands): For the Three Months Ended For the Six Months Ended Positions Sold/Redeemed Par Amount Sold/Redeemed Amortized Cost Realized Gain Proceeds Positions Sold/Redeemed Par Amount Sold/Redeemed Amortized Cost Realized Gain (Loss) Proceeds June 30, 2019: CMBS 1 $ 634 $ 634 $ 4 $ 638 1 $ 634 $ 634 $ 4 $ 638 June 30, 2018: ABS — $ — $ — $ — $ — 2 $ 411 $ 265 $ (217 ) $ 48 |
INVESTMENTS IN UNCONSOLIDATED E
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | NOTE 8 - INVESTMENTS IN UNCONSOLIDATED ENTITIES The following table summarizes the Company's investments in unconsolidated entities at June 30, 2019 and December 31, 2018 and equity in earnings (losses) of unconsolidated entities for the three and six months ended June 30, 2019 and 2018 (dollars in thousands, except amount in the footnotes): Equity in Earnings (Losses) of Unconsolidated Entities Ownership % at For the Three Months Ended For the Six Months Ended June 30, 2019 June 30, 2019 December 31, 2018 June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Pelium Capital (1) — % $ — $ — $ — $ 75 $ — $ (230 ) RCM Global — % — — — (6 ) — 7 Subtotal — — — 69 — (223 ) Investment in RCT I and II (2) 3.0 % 1,548 1,548 26 24 52 46 Total $ 1,548 $ 1,548 $ 26 $ 93 $ 52 $ (177 ) (1) During the six months ended June 30, 2018, the Company received distributions of $10.2 million on its investment in Pelium Capital Partners, L.P. ("Pelium Capital"). ( 2 ) During the three and six months ended June 30, 2019 and 2018, dividends from the investments in RCT I and RCT II's common shares are recorded in other revenue. See Note 9 for the disclosures on the associated unsecured junior subordinated debentures. In 2018, Pelium Capital and RCM Global LLC were fully liquidated. |
BORROWINGS
BORROWINGS | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
BORROWINGS | NOTE 9 - 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 and trust preferred securities issuances. Certain information with respect to the Company's borrowings is summarized in the following table (dollars in thousands, except amounts in footnotes): Principal Outstanding Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Borrowing Rate Weighted Average Remaining Maturity Value of Collateral At June 30, 2019: XAN 2018-RSO6 Senior Notes $ 397,280 $ 3,629 $ 393,651 3.49 % 16.0 years $ 514,052 XAN 2019-RSO7 Senior Notes 575,811 6,079 569,732 3.69 % 16.8 years 687,168 Unsecured junior subordinated debentures 51,548 — 51,548 6.54 % 17.2 years — 4.50% Convertible Senior Notes 143,750 11,866 131,884 4.50 % 3.1 years — 8.00% Convertible Senior Notes 21,182 124 21,058 8.00 % 199 days — CRE - term repurchase facilities (1) 401,147 4,055 397,092 4.45 % 1.3 years 544,674 Trust certificates - term repurchase facility (2) 42,102 199 41,903 6.34 % 1.2 years 113,453 CMBS - short term repurchase agreements (3) 328,397 — 328,397 3.57 % 20 days 437,731 Total $ 1,961,217 $ 25,952 $ 1,935,265 4.02 % 9.2 years $ 2,297,078 Principal Outstanding Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Borrowing Rate Weighted Average Remaining Maturity Value of Collateral At December 31, 2018: RCC 2017-CRE5 Senior Notes $ 109,250 $ 1,121 $ 108,129 3.76 % 15.6 years $ 228,031 XAN 2018-RSO6 Senior Notes 397,452 4,536 392,916 3.55 % 16.5 years 514,225 Unsecured junior subordinated debentures 51,548 — 51,548 6.61 % 17.7 years — 4.50% Convertible Senior Notes 143,750 13,504 130,246 4.50 % 3.6 years — 8.00% Convertible Senior Notes 21,182 238 20,944 8.00 % 1.0 year — CRE - term repurchase facilities (1) 512,716 5,269 507,447 4.47 % 2.0 years 696,215 Trust certificates - term repurchase facilities (2) 47,451 279 47,172 6.41 % 1.7 years 118,780 CMBS - short term repurchase agreements (3) 295,821 — 295,821 3.63 % 19 days 395,868 Total $ 1,579,170 $ 24,947 $ 1,554,223 4.21 % 6.9 years $ 1,953,119 (1) Principal outstanding includes accrued interest payable of $605,000 and $911,000 at June 30, 2019 and December 31, 2018, respectively. (2) Principal outstanding includes accrued interest payable of $96,000 and $118,000 at June 30, 2019 and December 31, 2018, respectively. (3) Principal outstanding includes accrued interest payable of $398,000 and $773,000 at June 30, 2019 and December 31, 2018, respectively. Securitizations The following table sets forth certain information with respect to the Company's consolidated securitizations at June 30, 2019 (in thousands): Closing Date Maturity Date End of Designated Principal Reinvestment Period (1) Total Note Paydowns Received from Closing Date through June 30, 2019 RCC 2017-CRE5 (2) July 2017 July 2034 July 2020 $ 251,449 XAN 2018-RSO6 June 2018 June 2035 December 2020 $ 172 XAN 2019-RSO7 April 2019 April 2036 April 2022 $ — (1) The designated principal reinvestment period is the period in which principal repayments can be utilized to purchase loans held outside of the respective securitization that represent the funded commitments of existing collateral in the respective securitization that were not funded as of the date the respective securitization was closed. (2) The remaining outstanding balance of third-party owned notes of Resource Capital Corp. 2017-CRE5, Ltd. ("RCC 2017-CRE5") were paid off in May 2019. The investments held by the Company's securitizations collateralize the securitizations' borrowings and, as a result, are not available to the Company, its creditors, or stockholders. All senior notes of the securitizations held by the Company at June 30, 2019 and December 31, 2018 were eliminated in consolidation. RCC 2017-CRE5 In July 2017, the Company closed RCC 2017-CRE5, a $376.7 million CRE securitization transaction that provided financing for transitional CRE loans. In May 2019, the Company paid off all of the outstanding, third-party owned senior notes from the payoff proceeds of certain of the securitization's assets. In July 2019, the Company exercised the optional redemption feature of the securitization. XAN 2019-RSO7 In April 2019, the Company closed Exantas Capital Corp. 2019-RSO7, Ltd. ("XAN 2019-RSO7"), a $687.2 million CRE debt securitization transaction that provided financing for CRE loans. XAN 2019-RSO7 issued a total of $585.8 million of non-recourse, floating-rate notes at par, of which RCC RE purchased $10.0 million, or approximately 20%, of the Class D notes. Additionally, RCC RE purchased 100% of the Class E and Class F notes and a subsidiary of RCC RE purchased 100% of the outstanding preference shares. The notes purchased by RCC RE are subordinated in right of payment to all other senior notes issued by XAN 2019-RSO7, but are senior in right of payment to the preference shares. The preference shares are subordinated in right of payment to all other securities issued by XAN 2019-RSO7. At closing, the senior notes issued to investors consisted of the following classes: (i) $390.0 million of Class A notes bearing interest at one-month LIBOR plus 1.00%, increasing to 1.25% in April 2024; (ii) $70.4 million of Class A-S notes bearing interest at one-month LIBOR plus 1.50%, increasing to 1.75% in April 2024; (iii) $33.5 million of Class B notes bearing interest at one-month LIBOR plus 1.70%, increasing to 2.20% in May 2024; (iv) $42.9 million of Class C notes bearing interest at one-month LIBOR plus 2.05%, increasing to 2.55% in June 2024; and (v) $49.0 million of Class D notes bearing interest at one-month LIBOR plus 2.70%, increasing to 3.20% in July 2024. All of the notes issued mature in April 2036, although the Company has the right to call the notes anytime after May 2021. Principal repayments received, after closing and ending in April 2022, may be used to purchase funding participations with respect to existing collateral held outside of the securitization. Repurchase and Credit Facilities Borrowings under the Company's repurchase agreements are guaranteed by the Company or one of its subsidiaries. The following table sets forth certain information with respect to the Company's repurchase agreements (dollars in thousands, except amounts in footnotes): June 30, 2019 December 31, 2018 Outstanding Borrowings (1) Value of Collateral Number of Positions as Collateral Weighted Average Interest Rate Outstanding Borrowings (1) Value of Collateral Number of Positions as Collateral Weighted Average Interest Rate CRE - Term Repurchase Facilities Wells Fargo Bank, N.A. (2) $ 247,517 $ 335,812 32 4.37 % $ 154,478 $ 226,530 13 4.33 % Morgan Stanley Bank, N.A. (3) 37,137 62,665 3 5.03 % 37,113 62,457 3 5.09 % Barclays Bank PLC (4) 65,628 84,209 8 4.59 % 240,416 308,389 11 4.51 % JPMorgan Chase Bank, N.A. (5) 46,810 61,988 3 4.22 % 75,440 98,839 5 4.30 % Trust Certificates - Term Repurchase Facilities RSO Repo SPE Trust 2017 (6) 41,903 113,453 2 6.34 % 47,172 118,780 2 6.41 % CMBS - Short-Term Repurchase Agreements RBC Capital Markets, LLC 216,167 276,512 30 3.55 % 246,476 313,644 33 3.64 % JP Morgan Securities LLC 89,560 118,345 18 3.57 % 42,040 73,066 13 3.57 % Deutsche Bank Securities Inc. 22,670 42,874 5 3.75 % 7,305 9,158 5 3.98 % Total $ 767,392 $ 1,095,858 $ 850,440 $ 1,210,863 (1) Outstanding borrowings include accrued interest payable. (2) Includes $1.1 million and $1.6 million of deferred debt issuance costs at June 30, 2019 and December 31, 2018, respectively. (3) Includes $137,000 and $167,000 of deferred debt issuance costs at June 30, 2019 and December 31, 2018, respectively. (4) Includes $1.1 million and $1.5 million of deferred debt issuance costs at June 30, 2019 and December 31, 2018, respectively. ( 5 ) Includes $1.6 million and $2.0 million of deferred debt issuance costs at June 30, 2019 and December 31, 2018, respectively. (6) Includes $146,000 and $204,000 of deferred debt issuance costs at June 30, 2019 and December 31, 2018, respectively. The following table shows information about the amount at risk under the repurchase facilities at June 30, 2019 (dollars in thousands): Amount at Risk (1) Weighted Average Remaining Maturity Weighted Average Interest Rate At June 30, 2019: CRE - Term Repurchase Facilities Wells Fargo Bank, N.A. $ 88,544 1.1 years 4.37 % Morgan Stanley Bank, N.A. $ 25,690 72 days 5.03 % Barclays Bank PLC $ 17,739 1.8 years 4.59 % JPMorgan Chase Bank, N.A. $ 13,631 2.3 years 4.22 % Trust Certificates - Term Repurchase Facility RSO Repo SPE Trust 2017 $ 71,440 1.2 years 6.34 % CMBS - Short-Term Repurchase Agreements RBC Capital Markets, LLC $ 60,817 20 days 3.55 % JP Morgan Securities LLC $ 29,118 12 days 3.57 % Deutsche Bank Securities Inc. $ 20,295 49 days 3.75 % (1) Equal to the total of the estimated fair value of securities or loans sold and accrued interest receivable, minus the total of the repurchase agreement liabilities and accrued interest payable. The Company was in compliance with all covenants in each of the respective agreements at June 30, 2019. CRE - Term Repurchase Facilities In July 2018, the Company's wholly-owned subsidiary entered into an amended and restated master agreement (the "2018 Facility") with Wells Fargo Bank, N.A. ("Wells Fargo") to finance the origination and acquisition of CRE loans. In May 2019, the Company executed an amendment of the 2018 Facility, amending certain terms to add an available loan servicer and to update references in connection with an amended fee letter. Trust Certifications - Term Repurchase Facility In September 2017, the Company's wholly-owned subsidiary entered into a repurchase and securities agreement (the "2017 Term Repurchase Trust Facility") with RSO Repo SPE Trust 2017. In July 2019, the Company paid off the outstanding balance of the 2017 Term Repurchase Trust Facility in connection with the redemption of RCC 2017-CRE5. Contractual maturity dates of the Company's borrowings' principal outstanding by category and year are presented in the table below (in thousands): Total 2019 2020 2021 2022 2023 and Thereafter At June 30, 2019: CRE securitizations $ 973,091 $ — $ — $ — $ — $ 973,091 Unsecured junior subordinated debentures 51,548 — — — — 51,548 4.50% Convertible Senior Notes 143,750 — — — 143,750 — 8.00% Convertible Senior Notes 21,182 — 21,182 — — — Repurchase and credit facilities 771,646 365,671 290,750 115,225 — — Total $ 1,961,217 $ 365,671 $ 311,932 $ 115,225 $ 143,750 $ 1,024,639 |
SHARE ISSUANCE AND REPURCHASE
SHARE ISSUANCE AND REPURCHASE | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders Equity Note [Abstract] | |
SHARE ISSUANCE AND REPURCHASE | NOTE 10 - SHARE ISSUANCE AND REPURCHASE In March 2018, the Company redeemed all remaining shares of its 8.25% Series B Cumulative Redeemable Preferred Stock ("Series B Preferred Stock") at a redemption price of $25.00 per share, or $115.3 million, plus accrued but unpaid distributions, resulting in a preferred stock redemption charge of $7.5 million on the consolidated statement of operations for the six months ended June 30, 2018. On or after July 30, 2024, the Company may, at its option, redeem its 8.625% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock ("Series C Preferred Stock"), in whole or in 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. Effective July 30, 2024 and thereafter, the Company will pay cumulative distributions on the Series C Preferred Stock at a floating rate equal to three-month LIBOR plus 5.927% per annum based on the $25.00 liquidation preference, provided that such floating rate shall not be less than the initial rate of 8.625% at any date of determination. At June 30, 2019, the Company had 4.8 million shares of Series C Preferred Stock outstanding, with a weighted average issuance price, excluding offering costs, of $25.00. Under a share repurchase plan authorized by the Board in August 2015, the Company was authorized to repurchase up to $50.0 million of its outstanding equity and debt securities. In March 2016, the Board approved a new securities repurchase program for up to $50.0 million of its outstanding securities, which replaced the August 2015 repurchase plan. During the three and six months ended June 30, 2019 and 2018, the Company did not repurchase any shares of its common or preferred stock through this program. At June 30, 2019, $44.9 million remains available under this repurchase plan. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
SHARE-BASED COMPENSATION | In June 2019, the Company's shareholders approved the Exantas Capital Corp. Second Amended and Restated Omnibus Equity Compensation Plan (the "June 2019 Plan"), which amended the May 2014 plan. The June 2019 Plan (i) increased the number of shares authorized for issuance from 3,275,000 shares to 4,775,000 shares; (ii) extended the expiration date from May 2024 to June 2029; and (iii) made other clarifying and updating amendments. The following table summarizes the Company's restricted common stock transactions: Non-Employee Directors Non- Employees (1) Former Employees Total Unvested shares at January 1, 2019 30,234 386,628 5,809 422,671 Issued 24,650 196,198 — 220,848 Vested (27,032 ) (175,454 ) (5,809 ) (208,295 ) Forfeited — (8,453 ) — (8,453 ) Unvested shares at June 30, 2019 27,852 398,919 — 426,771 (1) Non-employees are employees of C-III or Resource America, Inc. ("Resource America"). The fair value at grant date of the shares of restricted common stock granted to non-employees during the six months ended June 30, 2019 and 2018 was $2.0 million. The fair values at grant date of shares of restricted common stock issued to the Company's eight non-employee directors during the six months ended June 30, 2019 and 2018 were $265,000 and $255,000, respectively. At June 30, 2019, the total unrecognized restricted common stock expense for non-employees was $2.1 million, with a weighted average amortization period remaining of 2.2 years. At December 31, 2018, the total unrecognized restricted common stock expense for non-employees was $1.1 million, with a weighted average amortization period remaining of 1.8 years. The following table summarizes restricted common stock grants during the six months ended June 30, 2019: Grant Date Shares Vesting per Year Vesting Date(s) January 22, 2019 196,198 33% January 22, 2020, January 22, 2021 and January 22, 2022 February 1, 2019 3,308 100% February 1, 2020 March 8, 2019 14,108 100% March 8, 2020 June 3, 2019 3,164 100% June 3, 2020 June 6, 2019 3,170 100% June 6, 2020 June 19, 2019 900 100% June 19, 2020 The following table summarizes the status of the Company's vested stock options at June 30, 2019: Vested Options Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Vested at January 1, 2019 10,000 $ 25.60 Vested — — Exercised — — Forfeited — — Expired — — Vested at June 30, 2019 10,000 $ 25.60 1.88 $ — There were no options granted during the six months ended June 30, 2019 or 2018. The outstanding stock options have contractual terms of ten years and will expire in 2021. The components of equity compensation expense for the periods presented are as follows (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Restricted shares granted to non-employees (1) $ 338 $ 587 $ 949 $ 1,481 Restricted shares granted to non-employee directors 74 72 146 145 Total $ 412 $ 659 $ 1,095 $ 1,626 (1) Non-employees are employees of C-III or Resource America. Under the Company's Third Amended and Restated Management Agreement ("Management Agreement"), 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, recorded in management fees on the consolidated statements of operations. During the three and six months ended June 30, 2019, the Company incurred incentive compensation payable to the Manager of $165,000, of which $124,000 was payable in cash and $41,000, representing 3,615 shares, was payable in common stock. The Manager received no incentive compensation for the three and six months ended June 30, 2018. All equity awards, apart from incentive compensation under the Management Agreement, are discretionary in nature and subject to approval by the compensation committee of the Board. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 12 - EARNINGS PER SHARE The following table presents a reconciliation of basic and diluted earnings (losses) per common share for the periods presented as follows (dollars in thousands, except per share amounts): For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Net income from continuing operations $ 9,003 $ 9,189 $ 17,173 $ 9,052 Net income allocated to preferred shares (2,587 ) (2,587 ) (5,175 ) (7,797 ) Consideration paid in excess of carrying value of preferred shares — — — (7,482 ) Net income (loss) from continuing operations allocable to common shares 6,416 6,602 11,998 (6,227 ) Net loss from discontinued operations, net of tax (112 ) (450 ) (149 ) (203 ) Net income (loss) allocable to common shares $ 6,304 $ 6,152 $ 11,849 $ (6,430 ) Weighted average number of common shares outstanding: Weighted average number of common shares outstanding - basic 31,438,247 31,215,598 31,409,063 31,163,859 Effect of dilutive securities - unvested restricted stock 217,933 186,412 184,983 — Weighted average number of common shares outstanding - diluted 31,656,180 31,402,010 31,594,046 31,163,859 Net income (loss) per common share - basic: Continuing operations $ 0.20 $ 0.21 $ 0.38 $ (0.20 ) Discontinued operations — (0.01 ) — (0.01 ) Net income (loss) per common share - basic $ 0.20 $ 0.20 $ 0.38 $ (0.21 ) Net income (loss) per common share - diluted: Continuing operations $ 0.20 $ 0.21 $ 0.38 $ (0.20 ) Discontinued operations — (0.01 ) — (0.01 ) Net income (loss) per common share - diluted $ 0.20 $ 0.20 $ 0.38 $ (0.21 ) Potentially dilutive shares excluded from calculation due to anti-dilutive effect (1) 12,618,770 14,885,296 12,618,770 14,885,296 (1) Potentially dilutive shares issuable in connection with the potential conversion of the Company's 4.50% convertible senior notes due 2022 ("4.50% Convertible Senior Notes") and 8.00% convertible senior notes due 2020 ("8.00% Convertible Senior Notes") (see Note 9) during the three and six months ended June 30, 2019 and 2018 and its 6.00% convertible senior notes due 2018 during the three and six months ended June 30, 2018 were not included in the calculation of diluted net income (loss) per share because the effect would be anti-dilutive. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 13 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents the changes in each component of accumulated other comprehensive income (loss) for the six months ended June 30, 2019 (in thousands): Net Unrealized Gain (Loss) on Derivatives Net Unrealized (Loss) Gain on Investment Securities Available-for-Sale Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2019 $ 563 $ (3,620 ) $ (3,057 ) Other comprehensive (loss) income before reclassifications (4,390 ) 9,196 4,806 Amounts reclassified from accumulated other comprehensive income (1) (68 ) (4 ) (72 ) Balance at June 30, 2019 $ (3,895 ) $ 5,572 $ 1,677 (1) Amounts reclassified from accumulated other comprehensive income are reclassified to interest expense and net realized and unrealized gain on investment securities available-for-sale and loans and derivatives on the Company's consolidated statements of operations. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 14 - RELATED PARTY TRANSACTIONS Relationship with C-III and Certain of its Subsidiaries. The Manager is a wholly-owned subsidiary of Resource America, which is a wholly-owned subsidiary of C-III, a leading CRE investment management and services company engaged in a broad range of activities, including primary and special loan servicing, loan origination, fund management, CDO management, principal investment, zoning due diligence, investment sales and multifamily property management. C-III is indirectly controlled and partially owned by Island Capital Group LLC ("Island Capital"), of which Andrew L. Farkas, the Company's Chairman, is the managing member. Mr. Farkas is also chairman and chief executive officer of C-III. In addition, Robert C. Lieber, the Company's Chief Executive Officer, and Matthew J. Stern, the Company's President, are executive managing directors of both C-III and Island Capital. Jeffrey P. Cohen, who is a member of the Company's Board, is president of both C-III and Island Capital. Those officers and the Company's other executive officers are also officers of the Company's Manager, Resource America, C-III and/or affiliates of those companies. At June 30, 2019, C-III indirectly beneficially owned 766,718, or 2.4%, of the Company's outstanding common shares. The Company has a Management Agreement with the Manager, amended and restated on December 14, 2017, pursuant to which the Manager provides the day-to-day management of the Company's operations and receives substantial fees. For the three and six months ended June 30, 2019, the Manager earned base management fees of approximately $2.1 million and $4.2 million, respectively. For the three and six months ended June 30, 2018, the Manager earned base management fees of approximately $2.8 million and $5.6 million, respectively. For the three and six months ended June 30, 2019, the Manager earned incentive compensation of approximately $165,000, of which $124,000 was payable in cash and approximately $41,000 was payable in common stock at June 30, 2019. No incentive compensation was earned for the three and six months ended June 30, 2018. At June 30, 2019 and December 31, 2018, $699,000 and $938,000, respectively, of base management fees were payable by the Company to the Manager. At June 30, 2019, $165,000 of incentive compensation was payable by the Company to the Manager. There was no incentive compensation payable at December 31, 2018. The Manager and its affiliates provide the Company with a Chief Financial Officer and a sufficient number of additional accounting, finance, tax and investor relations professionals. The Company reimburses the Manager's and its affiliates' expenses for (a) the wages, salaries and benefits of the Chief Financial Officer, (b) a portion of the wages, salaries and benefits of accounting, finance, tax and investor relations professionals, in proportion to such personnel's percentage of time allocated to the Company's operations, and (c) personnel principally devoted to the Company's ancillary operating subsidiaries. The Company reimburses out-of-pocket expenses and certain other costs incurred by the Manager and its affiliates that relate directly to the Company's operations. For the three and six months ended June 30, 2019, the Company reimbursed the Manager $1.1 million and $2.1 million, respectively, for all such compensation and costs. For the three and six months ended June 30, 2018, the Company reimbursed the Manager $1.9 million and $2.8 million, respectively, for all such compensation and costs. At June 30, 2019 and December 31, 2018, the Company had payables to Resource America and its subsidiaries pursuant to the Management Agreement totaling approximately $401,000 and $333,000, respectively. The Company's base management fee payable and expense reimbursements payable are recorded in management fee payable and accounts payable and other liabilities on the consolidated balance sheets, respectively. At June 30, 2019, the Company retained equity in six securitization entities that were structured for the Company by the Manager, although three of the securitization entities had been substantially liquidated as of June 30, 2019. 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 entities and their assets. Relationship with Resource Real Estate, LLC. Resource Real Estate, LLC ("Resource Real Estate"), an indirect wholly-owned subsidiary of Resource America and C-III, originates, finances and manages the Company's CRE loan portfolio. The Company reimburses Resource Real Estate for loan origination costs associated with all loans originated. At December 31, 2018, the Company had net receivables from Resource Real Estate for loan deposits of $26,000. There were no loan deposits receivable from Resource Real Estate at June 30, 2019. Resource Real Estate served as special servicer for the following liquidated real estate securitization transactions, which provided financing for CRE loans: (i) Resource Capital Corp. 2014-CRE2, Ltd., a $353.9 million securitization that closed in July 2014 and liquidated in August 2017; (ii) Resource Capital Corp. 2015-CRE3, Ltd., a $346.2 million securitization that closed in February 2015 and liquidated in August 2018; (iii) Resource Capital Corp. 2015-CRE4, Ltd., a $312.9 million securitization that closed in August 2015 and liquidated in July 2018; and (iv) RCC 2017-CRE5, a $376.7 million securitization that closed in July 2017 and liquidated in July 2019. Resource Real Estate did not earn any special servicing fees during the three and six months ended June 30, 2019 and 2018. Relationship with C-III Commercial Mortgage and C3AM. In May 2019, RCC RE entered into a Mortgage Loan Sale and Purchase Agreement (the "May 2019 Loan Acquisition Agreement") with C-III Commercial Mortgage LLC ("C-III Commercial Mortgage"), a wholly-owned subsidiary of C-III, that provided for the acquisition by RCC RE of certain CRE loans on a servicing-released basis at par, plus accrued and unpaid interest on each loan for an aggregate purchase price of $197.6 million. In accordance with the terms of the May 2019 Loan Acquisition Agreement, C-III Commercial Mortgage retains its title to all exit fees in excess of 0.50% of the outstanding principal balance. During the three and six months ended June 30, 2019, C-III Commercial Mortgage did not earn any exit fees. The Company had no outstanding payables to C-III Commercial Mortgage LLC at June 30, 2019. Additionally, C3AM served as the primary servicer for the CRE loans collateralizing RCC 2017-CRE5 and serves as the primary servicer for the CRE loans acquired in the May 2019 Loan Acquisition Agreement and the CRE loans collateralizing Exantas Capital Corp. 2018-RSO6, Ltd. ("XAN 2018-RSO6"), a $514.2 million securitization that closed in June 2018, and XAN 2019-RSO7, a $687.2 million securitization that closed in April 2019. C3AM receives servicing fees, payable monthly on an asset-by-asset basis. C3AM serves as special servicer for C40, XAN 2018-RSO6 and XAN 2019-RSO7, under which it receives a base special servicing fee. During the three and six months ended June 30, 2019, C3AM earned approximately $170,000 and $261,000, respectively, in servicing fees and the Company received $48,000 of exit fees from C3AM on a CRE loan acquired in the May 2019 Loan Acquisition Agreement. During the three and six months ended June 30, 2018, C3AM earned approximately $67,000 and $102,000, respectively, in servicing fees. C3AM did not earn any special servicing fees during the three and six months ended June 30, 2019 and 2018. The Company had payables to C3AM of approximately $47,000 and $26,000 at June 30, 2019 and December 31, 2018, respectively. |
DISTRIBUTIONS
DISTRIBUTIONS | 6 Months Ended |
Jun. 30, 2019 | |
Distributions [Abstract] | |
DISTRIBUTIONS | NOTE 15 - DISTRIBUTIONS For the quarters ended June 30, 2019 and 2018, the Company declared and subsequently paid dividends of $0.225 and $0.10 per common share, respectively. In order to qualify as a REIT, the Company must currently distribute at least 90% of its taxable income. In addition, the Company must distribute 100% of its taxable income in order to not 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 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 funds to make sufficient distribution payments. The Company's 2019 dividends are, and will be, determined by the Board, which will also consider the composition of any dividends declared, including the option of paying a portion in cash and the balance in additional shares of common stock. The following tables present dividends declared (on a per share basis) for the six months ended June 30, 2019 and year ended December 31, 2018, with respect to the Company's common stock and Series C Preferred Stock, and for the period from January 1, 2018 through March 26, 2018, with respect to the Company's Series B Preferred Stock: Common Stock Date Paid Total Dividend Paid Dividend Per Share (in thousands) 2019 June 30 July 26 $ 7,172 $ 0.225 March 31 April 26 $ 6,373 $ 0.20 2018 December 31 January 25, 2019 $ 5,540 $ 0.175 September 30 October 26 $ 4,749 $ 0.15 June 30 July 27 $ 3,165 $ 0.10 March 31 April 27 $ 1,584 $ 0.05 Series B Preferred Stock Series C Preferred Stock Date Paid Total Dividend Paid Dividend Per Share Date Paid Total Dividend Paid Dividend Per Share (in thousands) (in thousands) 2019 June 30 N/A N/A N/A July 30 $ 2,587 $ 0.539063 March 31 N/A N/A N/A April 30 $ 2,588 $ 0.539063 2018 December 31 N/A N/A N/A January 30, 2019 $ 2,588 $ 0.539063 September 30 N/A N/A N/A October 30 $ 2,588 $ 0.539063 June 30 N/A N/A N/A July 30 $ 2,588 $ 0.539063 March 31 N/A N/A N/A April 30 $ 2,588 $ 0.539063 March 26 March 26 $ 1,480 $ 0.320830 N/A N/A N/A |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 16 - FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents the Company's financial instruments carried at fair value on a recurring basis based upon the fair value hierarchy (in thousands): Level 1 Level 2 Level 3 Total At June 30, 2019: Assets: Investment securities available-for-sale $ — $ — $ 445,664 $ 445,664 Total assets at fair value $ — $ — $ 445,664 $ 445,664 Liabilities: Derivatives $ — $ (4,470 ) $ — $ (4,470 ) Total liabilities at fair value $ — $ (4,470 ) $ — $ (4,470 ) At December 31, 2018: Assets: Investment securities available-for-sale $ — $ — $ 418,998 $ 418,998 Derivatives — 985 — 985 Total assets at fair value $ — $ 985 $ 418,998 $ 419,983 Liabilities: Derivatives $ — $ 1,043 $ — $ 1,043 Total liabilities at fair value $ — $ 1,043 $ — $ 1,043 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 for investment securities available-for-sale and derivatives from third-party pricing sources. The following table presents additional information about the Company's assets that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs (in thousands): CMBS Balance, January 1, 2019 $ 418,998 Included in earnings 1,415 Purchases 40,594 Sale (638 ) Paydowns (1) (23,897 ) Included in other comprehensive income 9,192 Balance, June 30, 2019 $ 445,664 (1) Includes non-cash adjustments in connection with the recalculation of the accretable yield on certain interest-only CMBS. Legacy CRE loans held for sale are measured at the lower of cost or market on a nonrecurring basis. To determine fair value of the legacy CRE loans held for sale, the Company primarily uses appraisals obtained from third-parties as a practical expedient. The Company may also use the present value of estimated cash flows, market price, if available, or other determinants of the fair value of the collateral less estimated disposition costs. The Company recorded losses of $1.3 million during the three months ended June 30, 2019 and $1.4 million, which included $102,000 of protective advances to cover borrower operating losses, during the six months ended June 30, 2019 on one legacy CRE loan held for sale. The losses comprised a $1.3 million fair value charge in connection with the updated fair value based on the average of three June 2019 brokers' opinion of value that were taken into account equally along with the latest appraisal received in February 2019. During the six months ended June 30, 2018, the Company recorded losses of $4.7 million on the same legacy CRE loan held for sale, which included protective advances to cover borrower operating losses of $172,000. No losses were incurred during the three months ended June 30, 2018. The losses adjusted the loan to its fair value, less the remaining estimated costs to repair the underlying collateral, equal to $16.1 million and $17.0 million at June 30, 2019 and December 31, 2018, respectively. The terminal capitalization rates used in the updated appraisal and brokers' opinion of values ranged from 8.50% to 10.00% at June 30, 2019. 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, accrued interest receivable, principal paydowns receivable, accrued interest payable and distributions payable approximate their carrying values on the consolidated balance sheets. 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 are reported in Note 17. The fair values of the Company's loans held for investment are 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. Fair values of loans with variable interest rates are expected to approximate fair value. Fair values of loans with fixed rates are calculated using the net present values of future cash flows, discounted at market rates. The Company's CRE loans had interest rates from 5.13% to 8.68% and 5.08% to 8.63% at June 30, 2019 and December 31, 2018, respectively. The fair value of the Company's mezzanine loan is measured by discounting the expected cash flows using the future expected coupon rate. The Company's mezzanine loan is discounted at a rate of 10.00%. The fair value of the Company's preferred equity investments are measured by discounting the expected cash flows using the future expected coupon rates. The Company's preferred equity investments are discounted at rates of 12.08% and 11.54%. Senior notes in CRE securitizations are valued using dealer quotes, typically sourced from the dealer who underwrote the applicable CRE securitization. The fair values of the junior subordinated notes RCT I and RCT II are estimated by using a discounted cash flow model with discount rates of 8.99% and 8.99%, respectively. The fair value of the convertible notes is 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 8.00% Convertible Senior Notes are discounted at a rate of 4.92% and the 4.50% Convertible Senior Notes are discounted at a rate of 7.43%. Repurchase agreements are variable rate debt instruments indexed to LIBOR that reset periodically and, as a result, their carrying value approximates their fair value, excluding deferred debt issuance costs. The fair values of the Company's remaining financial instruments that are not reported at fair value on the consolidated balance sheets are reported in the following table (in thousands): Fair Value Measurements Carrying Value 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) At June 30, 2019: Assets: CRE whole loans held for investment $ 1,918,382 $ 1,928,828 $ — $ — $ 1,928,828 CRE mezzanine loan $ 4,700 $ 4,700 $ — $ — $ 4,700 CRE preferred equity investments $ 25,410 $ 25,565 $ — $ — $ 25,565 Legacy CRE loans held for sale $ 16,082 $ 16,082 $ — $ — $ 16,082 Liabilities: Senior notes in CRE securitizations $ 963,383 $ 976,360 $ — $ — $ 976,360 Junior subordinated notes $ 51,548 $ 28,050 $ — $ — $ 28,050 Convertible notes $ 152,942 $ 164,932 $ — $ — $ 164,932 Repurchase agreements $ 767,392 $ 771,593 $ — $ — $ 771,593 At December 31, 2018: Assets: CRE whole loans held for investment $ 1,527,712 $ 1,538,759 $ — $ — $ 1,538,759 CRE mezzanine loan $ 4,700 $ 4,700 $ — $ — $ 4,700 CRE preferred equity investment $ 19,555 $ 19,718 $ — $ — $ 19,718 Legacy CRE loans held for sale $ 17,000 $ 17,000 $ — $ — $ 17,000 Liabilities: Senior notes in CRE securitizations $ 501,045 $ 498,897 $ — $ — $ 498,897 Junior subordinated notes $ 51,548 $ 27,800 $ — $ — $ 27,800 Convertible notes $ 151,190 $ 164,932 $ — $ — $ 164,932 Repurchase agreements $ 850,440 $ 855,783 $ — $ — $ 855,783 |
MARKET RISK AND DERIVATIVE INST
MARKET RISK AND DERIVATIVE INSTRUMENTS | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
MARKET RISK AND DERIVATIVE INSTRUMENTS | NOTE 17 - MARKET RISK AND DERIVATIVE INSTRUMENTS The Company is 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 risk managed by the Company through the use of derivative instruments is interest rate risk. The Company may hold various derivatives in the ordinary course of business, including interest rate swaps. Interest rate swaps are contracts between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices. 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 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 seeks to mitigate the potential impact on net income (loss) of adverse fluctuations in interest rates incurred on its borrowings by entering into hedging agreements. The Company classifies its interest rate risk 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 accumulated other comprehensive income (loss), and records changes in fair value of derivatives designated and ineffective as cash flow hedges in earnings. At June 30, 2019 and December 31, 2018, the Company had 18 and 16, respectively, interest rate swap contracts outstanding whereby the Company paid a weighted average fixed rate of 2.50% and 2.54%, respectively, and received a variable rate equal to one-month LIBOR. The aggregate notional amount of these contracts was $87.6 million and $81.1 million at June 30, 2019 and December 31, 2018, respectively. The counterparty for the Company's designated interest rate hedge contracts at June 30, 2019 and December 31, 2018 was Wells Fargo. There were no interest rate swaps in an asset position at June 30, 2019. At December 31, 2018, the estimated fair value of the Company's interest rate swaps in an asset position was $985,000. At June 30, 2019 and December 31, 2018, the estimated fair value of the Company's interest rate swaps in a liability position was $4.5 million and $1.0 million, respectively. The Company had aggregate unrealized losses of $3.9 million and aggregate unrealized gains of $563,000 on its interest rate swaps at June 30, 2019 and December 31, 2018, respectively, which are recorded in accumulated other comprehensive income (loss) on the consolidated balance sheets. At June 30, 2019 and December 31, 2018, the Company had an unrealized gain of $576,000 and $621,000, respectively, attributable to two terminated interest rate swaps, in accumulated other comprehensive income (loss) on the consolidated balance sheets, to be accreted into earnings over the remaining life of the debt. The Company recorded accretion income, reported in interest expense on the consolidated statements of operations, of $23,000 and $45,000 during the three and six months ended June 30, 2019, respectively, to accrete the accumulated other comprehensive income on the terminated swap agreements. The Company did not record any interest expense for the three and six months ended June 30, 2018 to amortize accumulated other comprehensive income (loss) from terminated swap agreements. The Company had a master netting agreement with Wells Fargo at June 30, 2019. Regulations promulgated under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 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. The Company had no centrally cleared interest rate swaps with fair values in an asset position at June 30, 2019. At December 31, 2018, the Company had centrally cleared interest rate swaps with fair values in an asset position of $985,000. At June 30, 2019 and December 31, 2018, the Company had centrally cleared interest rate swaps with a fair value in a liability position of $4.5 million and $1.0 million, respectively. The following tables present the fair value of the Company's derivative financial instruments at June 30, 2019 and December 31, 2018 on the Company's consolidated balance sheets and the related effect of the derivative instruments on the consolidated statements of operations for the six months ended June 30, 2019 and 2018: Fair Value of Derivative Instruments Liability Derivatives At June 30, 2019 Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging (1) $ 87,551 Derivatives, at fair value $ 4,470 Interest rate swap contracts, hedging $ 87,551 Accumulated other comprehensive income (loss) $ (3,895 ) Asset Derivatives At December 31, 2018 Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging (1) $ 31,725 Derivatives, at fair value $ 985 Liability Derivatives Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging (1) $ 49,326 Derivatives, at fair value $ 1,043 Interest rate swap contracts, hedging $ 81,051 Accumulated other comprehensive income (loss) $ 563 (1) Interest rate swap contracts are accounted for as cash flow hedges. The Effect of Derivative Instruments on the Consolidated Statements of Operations (in thousands) Derivatives Six Months Ended June 30, 2019 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) Interest rate swap contracts, hedging Interest expense $ 20 Derivatives Six Months Ended June 30, 2018 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) Interest rate swap contracts, hedging Interest expense $ (80 ) |
OFFSETTING OF FINANCIAL ASSETS
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | 6 Months Ended |
Jun. 30, 2019 | |
Offsetting [Abstract] | |
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | NOTE 18 - OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES The following table presents a summary of the Company's offsetting of derivative assets (in thousands): (iv) Gross Amounts Not Offset on the Consolidated Balance Sheets (i) Gross Amounts of Recognized Assets (ii) Gross Amounts Offset on the Consolidated Balance Sheets (iii) = (i) - (ii) Net Amounts of Assets Included on the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged (v) = (iii) - (iv) Net Amount At December 31, 2018: Derivatives, at fair value $ 985 $ — $ 985 $ — $ — $ 985 There were no derivatives with a fair value in an asset position at June 30, 2019. The following table presents a summary of the Company's offsetting of financial liabilities and derivative liabilities (in thousands, except amounts in footnotes): (iv) Gross Amounts Not Offset on the Consolidated Balance Sheets (i) Gross Amounts of Recognized Liabilities (ii) Gross Amounts Offset on the Consolidated Balance Sheets (iii) = (i) - (ii) Net Amounts of Liabilities Included on the Consolidated Balance Sheets Financial Instruments (1) Cash Collateral Pledged (v) = (iii) - (iv) Net Amount At June 30, 2019: Derivatives, at fair value (2) $ 4,470 $ — $ 4,470 $ — $ 4,470 $ — Repurchase agreements and term facilities (3) 767,392 — 767,392 767,392 — — Total $ 771,862 $ — $ 771,862 $ 767,392 $ 4,470 $ — At December 31, 2018: Derivatives, at fair value (2) $ 1,043 $ — $ 1,043 $ — $ 1,043 $ — Repurchase agreements and term facilities (3) 850,440 — 850,440 850,440 — — Total $ 851,483 $ — $ 851,483 $ 850,440 $ 1,043 $ — (1) Amounts represent financial instruments pledged that are available to be offset against liability balances associated with term facilities, repurchase agreements and derivatives. (2) The Company posted excess cash collateral of $3.4 million and $1.3 million related to interest rate swap contracts outstanding at June 30, 2019 and December 31, 2018, respectively. ( 3 ) The combined fair value of securities and loans pledged against the Company's various repurchase agreements and term facilities was $1.1 billion and $1.2 billion at June 30, 2019 and December 31, 2018, respectively. All balances associated with repurchase agreements and derivatives are presented on a gross basis on the Company's consolidated balance sheets. Certain of the Company's repurchase agreements 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. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 19 - COMMITMENTS AND CONTINGENCIES The Company may become involved in litigation on various matters due to the nature of the Company's business activities. 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. In addition, the Company may enter into settlements on certain matters in order to avoid the additional costs of engaging in litigation. Except as discussed below, the Company is unaware of any contingencies arising from such litigation that would require accrual or disclosure in the consolidated financial statements at June 30, 2019. Open Litigation Matters Six separate shareholder derivative suits (the "New York State Actions") purporting to assert claims on behalf of the Company were filed in the Supreme Court of New York on the following dates: December 2015 (the "Reaves Action"), February 2017 (the "Caito Action"), March 2017 (the "Simpson Action"), March 2017 (the "Heckel Action"), May 2017 (the "Schwartz Action") and August 2017 (the "Greff Action"). Plaintiffs in the Schwartz Action and Greff Action made demands on the Company's Board before filing suit, but plaintiffs in the Reaves Action, Caito Action, Simpson Action and Heckel Action did not. All of the shareholder derivative suits are substantially similar and allege that certain of the Company's current and former officers and directors breached their fiduciary duties, wasted corporate assets and/or were unjustly enriched. Certain complaints assert additional claims against the Manager and Resource America for unjust enrichment based on allegations that the Manager received excessive management fees from the Company. In June 2017, the court stayed the Reaves Action, Caito Action, Simpson Action and Heckel Action in favor of the federal shareholder derivative litigation described below under "- Settled and Dismissed Litigation Matters." In June 2019 and July 2019, the Schwartz Action and Greff Action, respectively, were dismissed. The Company believes that the plaintiffs in each of the four remaining New York State Actions lack standing to assert claims derivatively on its behalf, and it intends to seek the dismissal of all of such remaining New York State Actions. In August 2017, Robert Canoles filed a shareholder derivative suit in Maryland Circuit Court against certain of the Company's current and former officers and directors, as well as the Manager and Resource America (the "Canoles Action"). The complaint in the Canoles Action, as amended in October 2017, asserts a variety of claims, including claims for breach of fiduciary duty, unjust enrichment and corporate waste, which are based on allegations substantially similar to those at issue in the Federal Demand Futile Actions (defined below). The Canoles Action was stayed by the Maryland Circuit Court in favor of the federal shareholder litigation described below under "- Settled and Dismissed Litigation Matters." The Company believes that Canoles lacks standing to assert claims derivatively on its behalf. The Company intends to seek the dismissal of the Canoles Action. In April 2018, the Company funded $2.0 million into escrow in connection with the proposed settlement of outstanding litigation, which was settled in August 2018. The Company did not have any general litigation reserve at June 30, 2019 and December 31, 2018. Primary Capital Mortgage, LLC ("PCM") is subject to litigation related to claims for repurchases or indemnifications on loans that PCM has sold to third parties. At June 30, 2019 and December 31, 2018, no such litigation demand was outstanding. Reserves for such litigation demands are included in the reserve for mortgage repurchases and indemnifications that totaled $1.7 million at June 30, 2019 and December 31, 2018. The reserves for mortgage repurchases and indemnifications are included in liabilities held for sale on the consolidated balance sheets. Settled and Dismissed Litigation Matters The Company previously disclosed two consolidated shareholder derivative actions pending in the United States District Court for the Southern District of New York (the "Court") purporting to assert claims on behalf of the Company similar to the claims in the New York State Actions (collectively, the "Federal Actions"): (a) by shareholders who declined to make a demand on the Board prior to filing suit (the "Federal Demand Futile Actions") comprising a suit filed in January 2017 (the "Greenberg Action") and another suit filed in January 2017 (the "DeCaro Action") and (b) by shareholders who served demands on the Board to bring litigation and allege that their demands were wrongfully refused ("Federal Demand Refused Actions") comprising a suit by filed in February 2017 (the "McKinney Action"), a suit filed in March 2017 (the "Sherek/Speigel Action") and a suit filed in April 2017 (the "Sebenoler Action"). In January 2019, the parties to the Federal Actions executed a stipulation and agreement of settlement (the "Federal Actions Settlement Agreement"), which received final approval from the Court on May 17, 2019. Under the Federal Actions Settlement Agreement, the Company agreed to implement certain corporate governance changes and paid $550,000 in plaintiffs' attorneys' fees, funded by the Company's insurers. In exchange for the settlement consideration, the defendants were released from liability for certain claims, including all claims asserted in the Federal Actions. Among other terms and conditions, the Federal Actions Settlement Agreement provides that the defendants deny any and all allegations of wrongdoing and maintain that they have acted lawfully and in accordance with their fiduciary duties at all times. The Company previously disclosed another shareholder derivative action filed in the United States District Court for the District of Maryland against certain of the Company's former officers and directors and the Manager (the "Hafkey Action"). The complaint asserted a breach of fiduciary duty claim that was substantially similar to the claims at issue in the Federal Actions. In May 2019, Mr. Hafkey voluntarily dismissed his suit in light of the settlement and dismissal of the Federal Actions. The Company previously disclosed a securities litigation suit against certain of the Company's current and former officers and directors titled Levin v. Resource Capital Corp. PCM was the subject of a lawsuit brought by a purchaser of residential mortgage loans alleging breaches of representations and warranties made on loans sold to the purchaser. The asserted repurchase claims related to loans sold to the purchaser that were subsequently sold by the purchaser to either the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation and loans sold to the purchaser that were subsequently securitized and sold as residential mortgage-backed securities ("RMBS") by the purchaser to RMBS investors. This matter was settled and dismissed in January 2018. Other Contingencies As part of the May 2017 sale of its equity interest in Pearlmark Mezzanine Realty Partners IV, L.P., the Company entered into an indemnification agreement pursuant to which the Company agreed to indemnify the purchaser against realized losses of up to $4.3 million on one mezzanine loan until its final maturity date in 2020. At June 30, 2019 and December 31, 2018, the Company had a contingent liability, reported in accounts payable and other liabilities on its consolidated balance sheets, of $703,000 outstanding as a reserve for probable indemnification losses. The Company did not record any additional reserve for probable losses during the three and six months ended June 30, 2019 and 2018. PCM is subject to additional claims for repurchases or indemnifications on loans that PCM has sold to investors. At both June 30, 2019 and December 31, 2018, outstanding demands for indemnification, repurchase or make whole payments totaled $3.3 million. The Company's estimated exposure for such outstanding claims, as well as unasserted claims, is included in its reserve for mortgage repurchases and indemnifications. Unfunded Commitments 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. Whole loans had $119.7 million and $108.1 million in unfunded loan commitments at June 30, 2019 and December 31, 2018, respectively. Preferred equity investments had $3.2 million in unfunded investment commitments at June 30, 2019. There were no preferred equity investment unfunded commitments at December 31, 2018. |
DISCONTINUED OPERATIONS AND ASS
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE | NOTE 20 - DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE In November 2016, the Company's Board approved the Plan to focus its strategy on CRE debt investments. The Plan contemplated disposing of certain legacy CRE loans and exiting underperforming non-core asset classes and businesses, including the residential mortgage and middle market lending segments as well as the Company's life settlement contract portfolio. The Company's residential mortgage and middle market lending segments' operations were classified as discontinued operations and excluded from continuing operations for all periods presented. Certain of the Company's legacy CRE loans were classified as held for sale. As of June 30, 2019, the Company has substantially completed the execution of the Plan. The following table summarizes the operating results of the residential mortgage and middle market lending segments' discontinued operations as reported separately as net loss from discontinued operations, net of tax for the three and six months ended June 30, 2019 and 2018 (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 REVENUES Interest income: Loans $ — $ 10 $ — $ 580 Other — 9 — 13 Total interest income — 19 — 593 Interest expense — — — — Net interest income — 19 — 593 Other revenue — (53 ) — 32 Total revenues — (34 ) — 625 OPERATING EXPENSES General and administrative 112 443 284 1,103 Total operating expenses 112 443 284 1,103 (112 ) (477 ) (284 ) (478 ) OTHER INCOME (EXPENSE) Net realized and unrealized gain on investment securities available-for-sale and loans and derivatives — 27 135 275 Total other income — 27 135 275 LOSS FROM DISCONTINUED OPERATIONS BEFORE TAXES (112 ) (450 ) (149 ) (203 ) Income tax expense — — — — TOTAL LOSS FROM DISCONTINUED OPERATIONS $ (112 ) $ (450 ) $ (149 ) $ (203 ) The assets and liabilities of business segments classified as discontinued operations and other assets and liabilities classified as held for sale are reported separately in the accompanying consolidated financial statements and are summarized as follows at June 30, 2019 and December 31, 2018 (in thousands): June 30, 2019 December 31, 2018 ASSETS Loans held for sale $ 16,082 $ 17,000 Other assets 366 645 Total $ 16,448 $ 17,645 LIABILITIES Accounts payable and other liabilities $ 1,770 $ 1,820 Total $ 1,770 $ 1,820 The following table summarizes the non-performing legacy CRE loans transferred to held for sale in the fourth quarter of 2016. The loans held for sale are carried at the lower of cost or fair value (in thousands, except number of loans and amount in the footnote): Loan Description Number of Loans Amortized Cost Carrying Value At June 30, 2019: Legacy CRE loan 1 $ 22,150 $ 16,082 Mezzanine loan (1) 1 — — Total 2 $ 22,150 $ 16,082 At December 31, 2018: Legacy CRE loan 1 $ 21,666 $ 17,000 Mezzanine loan (1) 1 — — Total 2 $ 21,666 $ 17,000 ( 1 ) The mezzanine loan has a par value of $38.1 million and was acquired at a fair value of zero as a result of the liquidations of Resource Real Estate Funding CDO 2006-1, Ltd. in April 2016 and Resource Real Estate Funding CDO 2007-1, Ltd. in November 2016. The mezzanine loan is comprised of two tranches, maturing in November 2018 and September 2021. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 21 - SUBSEQUENT EVENTS The Company has evaluated subsequent events through the filing of this report and determined that there have not been any events, excluding the liquidation of RCC 2017-CRE5 securitization (see Note 9), that have occurred that would require adjustments to or disclosures in the consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
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") and the accounting policies set forth in Note 2 included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018. The consolidated financial statements include the accounts of the Company, majority-owned or controlled subsidiaries and VIEs for which the Company is considered the primary beneficiary. All inter-company transactions and balances have been eliminated in consolidation. |
Basis of Presentation | Basis of Presentation All adjustments necessary to present fairly the Company's financial position, results of operations and cash flows have been made. |
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. At June 30, 2019 and December 31, 2018, approximately $44.4 million and $80.4 million, respectively, of the reported cash balances exceeded the Federal Deposit Insurance Corporation and Securities Investor Protection Corporation deposit insurance limits of $250,000 per respective depository or brokerage institution. However, all of the Company's cash deposits are held at multiple, established financial institutions, in multiple accounts associated with its parent and respective consolidated subsidiaries, to minimize credit risk exposure. Restricted cash includes required account balance minimums primarily for the Company's CRE collateralized debt obligation ("CDO") securitizations and derivative instruments as well as cash held in the syndicated corporate loan CDOs. The following table provides a reconciliation of cash, cash equivalents and restricted cash on the consolidated balance sheets to the total amount shown on the consolidated statements of cash flows (in thousands): June 30, 2019 2018 Cash and cash equivalents $ 47,154 $ 80,191 Restricted cash 14,062 10,070 Total cash, cash equivalents and restricted cash shown on the Company's consolidated statements of cash flows $ 61,216 $ 90,261 |
Discontinued Operations | Discontinued Operations The results of operations of a component or a group of components of the Company that either has been disposed of or is classified as held for sale is reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company's operations and financial results. |
Income Taxes | Income Taxes The Company recorded a full valuation allowance against its net deferred tax assets of $54.6 million and $58.4 million (tax effected expense of $16.0 million and $15.3 million) at June 30, 2019 and December 31, 2018, respectively, as the Company believes it is more likely than not that the deferred tax assets will not be realized. This assessment was based on the Company's cumulative historical losses and uncertainties as to the amount of taxable income that would be generated in future years by the Company's taxable REIT subsidiaries. |
Share-based Compensation | Share-Based Compensation Issuances of restricted stock and options are initially measured at fair value on the grant date and expensed monthly on a straight-line basis over the service period to equity compensation expense on the consolidated statements of operations, with a corresponding entry to additional paid-in capital on the consolidated balance sheets. Effective January 1, 2019, in accordance with updated guidance under GAAP, the fair value of all unvested issuances of restricted stock and options is not remeasured after the initial grant date. Previously, the Company adjusted unvested issuances of restricted stock and options to the Manager and to non-employees quarterly to reflect changes in fair value. |
Recent Accounting Standards | Recent Accounting Standards Accounting Standards Adopted in In June 2018, the Financial Accounting Standards Board (the "FASB") issued guidance to simplify the accounting for share-based payment transactions for acquiring goods and services from nonemployees by including these payments in the scope of the guidance for share-based payments to employees. In accordance with the guidance, the Company's unvested issuances to the Manager and to non-employees granted prior to the January 1, 2019 adoption date were remeasured at fair value as of the adoption date with no subsequent remeasurement. Unvested issuances will continue to be amortized on a straight-line basis over the service period. In February 2018, the FASB issued guidance to allow a reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Adoption did not have a material impact on the Company's consolidated financial statements. In August 2017, the FASB issued guidance to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities. Additionally, the guidance simplifies the application of the hedge accounting guidance via certain targeted improvements. In October 2018, the FASB updated the guidance to add a benchmark interest rate permitted for hedge accounting purposes. Adoption did not have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued guidance requiring lessees to recognize a lease liability and a right-of-use asset for all leases. Lessor accounting remains largely unchanged. The guidance also requires new qualitative and quantitative disclosures to help financial statement users better understand the timing, amount and uncertainty of cash flows arising from leases. Adoption did not have a material impact on the Company's consolidated financial statements. Accounting Standards to be Adopted in Future Periods In August 2018, the FASB issued guidance to modify the fair value measurement disclosure requirements, including: disclosures on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, the policy for timing of transfers between levels and the narrative description of measurement uncertainty. The guidance is effective for annual reporting periods beginning after December 15, 2019, and interim periods within that reporting period. The Company is in the process of evaluating the impact of this new guidance. In January 2017, the FASB issued guidance to add the Securities and Exchange Commission ("SEC") Staff Announcement "Disclosure of the Impact that Recently Issued Accounting Standards will have on the Financial Statements of a Registrant when such Standards are Adopted in a Future Period (in accordance with Staff Accounting Bulletin Topic 11.M)." The announcement applies to the May 2014 guidance on revenue recognition from contracts with customers, the February 2016 guidance on leases and the June 2016 guidance on how credit losses for financial assets at amortized cost and certain other instruments that are measured at fair value through net income are determined. The announcement provides the SEC staff view that a registrant should evaluate certain recent accounting standards that have not yet been adopted to determine appropriate financial statement disclosures about the potential material effects of those recent accounting standards. If a registrant does not know or cannot reasonably estimate the impact that adoption of the recent accounting standards referenced in this announcement is expected to have on the financial statements, then the registrant should make a statement to that effect and consider the additional qualitative financial statement disclosures to assist the reader in assessing the significance of the impact that the recent accounting standards will have on the financial statements of the registrant when adopted. The Company completed its assessment under the new guidance on revenue recognition from contracts with customers in 2018 and on leases, see "Accounting Standards Adopted in 2019." While the Company is currently evaluating the impact of the guidance on the measurement of credit losses on financial instruments, the Company expects this standard will impact the consolidated financial statements, as described below. In June 2016, the FASB issued guidance that will change how credit losses for most financial assets and certain other instruments that are measured at fair value through net income are determined. The new guidance will replace the current incurred loss approach with an expected loss model for instruments measured at amortized cost. For available-for-sale debt securities, the guidance requires recording allowances rather than reducing the carrying amount, as it is currently under the other-than-temporary impairment model. It also simplifies the accounting model for credit-impaired debt securities and loans. This guidance is effective for annual reporting periods beginning after December 15, 2019, and interim periods within that reporting period, with any adjustments reflected as of the beginning of the fiscal year of adoption. While the Company is currently evaluating the impact of this new guidance, the Company expects this standard will impact the consolidated financial statements, in particular the level of the provision for loan losses. |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2018 consolidated financial statements to conform to the 2019 presentation. These reclassifications had no effect on the reported consolidated statements of operations. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Reconciliation of cash, cash equivalents and restricted cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash on the consolidated balance sheets to the total amount shown on the consolidated statements of cash flows (in thousands): June 30, 2019 2018 Cash and cash equivalents $ 47,154 $ 80,191 Restricted cash 14,062 10,070 Total cash, cash equivalents and restricted cash shown on the Company's consolidated statements of cash flows $ 61,216 $ 90,261 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
VIE, Primary Beneficiary | |
Schedule of variable interest entities | The following table shows the classification and carrying values of assets and liabilities of the Company's Consolidated VIEs at June 30, 2019 (in thousands): CRE Securitizations Other Total ASSETS Restricted cash $ 5,700 $ 432 $ 6,132 Accrued interest receivable 5,528 — 5,528 CRE loans, pledged as collateral 1,266,549 — 1,266,549 Principal paydowns receivable 33,150 — 33,150 Other assets 106 — 106 Total assets (1) $ 1,311,033 $ 432 $ 1,311,465 LIABILITIES Accounts payable and other liabilities $ 147 $ — $ 147 Accrued interest payable 1,268 — 1,268 Borrowings 963,383 — 963,383 Total liabilities $ 964,798 $ — $ 964,798 (1) Assets of each of the Consolidated VIEs may only be used to settle the obligations of each respective VIE. |
VIE, Not Primary Beneficiary | |
Schedule of variable interest entities | The following table shows the classification, carrying value and maximum exposure to loss with respect to the Company's unconsolidated VIEs at June 30, 2019 (in thousands): Unsecured Junior Subordinated Debentures C40 Prospect Hackensack Santa Clarita Total Maximum Exposure to Loss ASSETS Accrued interest receivable $ 110 $ 167 $ — $ — $ 277 $ — CRE loans — — 19,994 5,416 25,410 $ 25,410 Investment securities available-for-sale (1) — 21,952 — — 21,952 $ 21,709 Investments in unconsolidated entities 1,548 — — — 1,548 $ 1,548 Total assets 1,658 22,119 19,994 5,416 49,187 LIABILITIES Accrued interest payable 716 — — — 716 N/A Borrowings 51,548 — — — 51,548 N/A Total liabilities 52,264 — — — 52,264 N/A Net (liability) asset $ (50,606 ) $ 22,119 $ 19,994 $ 5,416 $ (3,077 ) N/A (1) The Company's investment in C40 is carried at fair value and its maximum exposure to loss is the amortized cost of the investment. |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of other significant noncash transactions | The following table summarizes the Company's supplemental disclosure of cash flow information (in thousands): For the Six Months Ended June 30, 2019 2018 Non-cash continuing financing activities include the following: Distributions on common stock accrued but not paid $ 7,172 $ 3,166 Distributions on preferred stock accrued but not paid $ 1,725 $ 1,725 |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Loans Held For Investment [Abstract] | |
Summary of loans held for Investments | The following is a summary of the Company's loans (dollars in thousands, except amounts in footnotes): Description Quantity Principal Unamortized (Discount) Premium, net (1) Amortized Cost Allowance for Loan Losses Carrying Value (2) Contractual Interest Rates (3) Maturity Dates (4)(5) At June 30, 2019: CRE loans held for investment: Whole loans (6) 117 $ 1,928,828 $ (7,849 ) $ 1,920,979 $ (2,597 ) $ 1,918,382 1M LIBOR plus 2.70% to 1M LIBOR plus 6.25% July 2019 to July 2022 Mezzanine loan 1 4,700 — 4,700 — 4,700 10.00% June 2028 Preferred equity investments (see Note 3) (6)(7)(8) 2 25,565 (155 ) 25,410 — 25,410 11.00% to 11.50% June 2022 to April 2025 Total CRE loans held for investment $ 1,959,093 $ (8,004 ) $ 1,951,089 $ (2,597 ) $ 1,948,492 At December 31, 2018: CRE loans held for investment: Whole loans (6) 79 $ 1,538,759 $ (9,646 ) $ 1,529,113 $ (1,401 ) $ 1,527,712 1M LIBOR plus 2.70% to 1M LIBOR plus 6.25% January 2019 to January 2022 Mezzanine loan 1 4,700 — 4,700 — 4,700 10.00% June 2028 Preferred equity investment (see Note 3) (6)(7)(8) 1 19,718 (163 ) 19,555 — 19,555 11.50% April 2025 Total CRE loans held for investment $ 1,563,177 $ (9,809 ) $ 1,553,368 $ (1,401 ) $ 1,551,967 (1) Amounts include unamortized loan origination fees of $10.0 million and $9.6 million and deferred amendment fees of $245,000 and $171,000 at June 30, 2019 and December 31, 2018, respectively. Additionally, the amounts include unamortized loan acquisition costs of $2.3 million at June 30, 2019. There were no unamortized loan acquisition costs at December 31, 2018. (2) Substantially all loans are pledged as collateral under various borrowings at June 30, 2019 and December 31, 2018. (3) LIBOR refers to the London Interbank Offered Rate. (4) Maturity dates exclude contractual extension options, subject to the satisfaction of certain terms that may be available to the borrowers. ( 5 ) Maturity dates exclude one whole loan, with an amortized cost of $11.5 million, in maturity default and performing with respect to debt service due in accordance with a forbearance agreement at June 30, 2019 and December 31, 2018. ( 6 ) Whole loans had $119.7 million and $108.1 million in unfunded loan commitments at June 30, 2019 and December 31, 2018, respectively. Preferred equity investments had $3.2 million in unfunded commitments at June 30, 2019. There were no preferred equity investment unfunded commitments at December 31, 2018. These unfunded loan commitments are advanced as the borrowers formally request additional funding and meet certain benchmarks, as permitted under the loan agreement, and any necessary approvals have been obtained. ( 7 ) The interest rate on the Company's preferred equity investments each pay currently at 8.00%. The remaining interest is deferred until maturity. ( 8 ) Beginning in April 2023, the Company has the right to unilaterally force the sale of Prospect Hackensack's underlying property. |
Summary of Contractual Maturities of Commercial Real Estate Loans at Amortized Cost | The following is a summary of the contractual maturities, assuming full exercise of the extension options available to the borrowers, of the Company's CRE loans held for investment, at amortized cost (in thousands, except amount in the footnote): Description 2019 2020 2021 and Thereafter Total At June 30, 2019: Whole loans (1) $ 10,399 $ 167,483 $ 1,731,581 $ 1,909,463 Mezzanine loan — — 4,700 4,700 Preferred equity investments — — 25,410 25,410 Total CRE loans (1) $ 10,399 $ 167,483 $ 1,761,691 $ 1,939,573 Description 2019 2020 2021 and Thereafter Total At December 31, 2018: Whole loans (1) $ 10,379 $ 182,422 $ 1,324,797 $ 1,517,598 Mezzanine loan — — 4,700 4,700 Preferred equity investment — — 19,555 19,555 Total CRE loans (1) $ 10,379 $ 182,422 $ 1,349,052 $ 1,541,853 (1) Excludes one whole loan, with an amortized cost of $11.5 million, in maturity default and performing with respect to debt service due in accordance with a forbearance agreement at June 30, 2019 and December 31, 2018. |
FINANCING RECEIVABLES (Tables)
FINANCING RECEIVABLES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Allowance for loan losses and recorded investments in loans | The following tables show the activity in the allowance for loan losses for the six months ended June 30, 2019 and year ended December 31, 2018 and the allowance for loan losses and recorded investments in loans at June 30, 2019 and December 31, 2018 (in thousands, except amount in the footnote): Six Months Ended June 30, 2019 Year Ended December 31, 2018 Commercial Real Estate Loans Commercial Real Estate Loans Allowance for loan losses: Allowance for loan losses at beginning of period $ 1,401 $ 5,328 Provision for (recovery of) loan losses, net (1) 1,196 (1,595 ) Loans charged-off — (2,332 ) Allowance for loan losses at end of period $ 2,597 $ 1,401 (1) Excludes the recovery of loan losses on one bank loan with no amortized cost or carrying value at June 30, 2019 and December 31, 2018 that received a payment of approximately $1,000 during the six months ended June 30, 2019. June 30, 2019 December 31, 2018 Commercial Real Estate Loans Commercial Real Estate Loans Allowance for loan losses ending balance: Individually evaluated for impairment $ — $ — Collectively evaluated for impairment $ 2,597 $ 1,401 Loans: Amortized cost ending balance: Individually evaluated for impairment (1) $ 30,110 $ 24,255 Collectively evaluated for impairment $ 1,920,979 $ 1,529,113 (1) The Company's mezzanine loan and preferred equity investments are evaluated individually for impairment. |
Credit quality indicators for bank loans and commercial real estate loans | The criteria set forth below should be used as general guidelines and, therefore, not every loan will have all of the characteristics described in each category below. Loans that are performing according to their underwritten plans generally will not require an allowance for loan loss. Risk Rating Risk Characteristics 1 • Property performance has surpassed underwritten expectations. • Occupancy is stabilized, the property has had a history of consistently high occupancy, and the property has a diverse and high quality tenant mix. 2 • Property performance is consistent with underwritten expectations and covenants and performance criteria are being met or exceeded. • Occupancy is stabilized, near stabilized or is on track with underwriting. 3 • Property performance lags behind underwritten expectations. • Occupancy is not stabilized and the property has some tenancy rollover. 4 • Property performance significantly lags behind underwritten expectations. Performance criteria and loan covenants have required occasional waivers. • Occupancy is not stabilized and the property has a large amount of tenancy rollover. 5 • Property performance is significantly worse than underwritten expectations. The loan is not in compliance with loan covenants and performance criteria and may be in default. Expected sale proceeds would not be sufficient to pay off the loan at maturity. • The property has a material vacancy rate and significant rollover of remaining tenants. • An updated appraisal is required upon designation and updated on an as-needed basis. All CRE loans are evaluated for any credit deterioration by debt asset management and certain finance personnel on at least a quarterly basis. Whole loans are first individually evaluated for impairment; and to the extent not deemed impaired, a general reserve is established. The allowance for loan loss is computed as (i) 1.5% of the aggregate face values of loans rated as a 3, plus (ii) 5.0% of the aggregate face values of loans rated as a 4, plus (iii) specific allowances measured and determined on loans individually evaluated, which are loans rated as a 5. While the overall risk rating is generally not the sole factor used in determining whether a loan is impaired, a loan with a higher overall risk rating would tend to have more adverse indicators of impairment, and therefore would be more likely to experience a credit loss. The Company's mezzanine loan and preferred equity investments are evaluated individually for impairment. Credit risk profiles of CRE loans at amortized cost and legacy CRE loans held for sale at the lower of cost or fair value were as follows (in thousands, except amounts in footnotes): Rating 1 Rating 2 Rating 3 (1) Rating 4 Rating 5 Held for Sale (2) Total At June 30, 2019: Whole loans $ — $ 1,758,536 $ 158,095 $ 4,348 $ — $ — $ 1,920,979 Mezzanine loan (3) — 4,700 — — — — 4,700 Preferred equity investments (3) — 25,410 — — — — 25,410 Legacy CRE loans held for sale — — — — — 16,082 16,082 Total $ — $ 1,788,646 $ 158,095 $ 4,348 $ — $ 16,082 $ 1,967,171 At December 31, 2018: Whole loans $ — $ 1,447,206 $ 77,067 $ 4,840 $ — $ — $ 1,529,113 Mezzanine loan (3) — 4,700 — — — — 4,700 Preferred equity investment (3) — 19,555 — — — — 19,555 Legacy CRE loans held for sale — — — — — 17,000 17,000 Total $ — $ 1,471,461 $ 77,067 $ 4,840 $ — $ 17,000 $ 1,570,368 (1) Includes one whole loan, with an amortized cost of $11.5 million, which was in maturity default at June 30, 2019 and December 31, 2018. The loan is performing with respect to debt service due in accordance with a forbearance agreement at June 30, 2019 and December 31, 2018. ( 2 ) Includes one legacy CRE loan that was in default with a total carrying value of $16.1 million and $17.0 million at June 30, 2019 and December 31, 2018, respectively. ( 3 ) The Company's mezzanine loan and preferred equity investments are evaluated individually for impairment. |
Loan portfolios aging analysis | The following table presents the CRE loan portfolio aging analysis as of the dates indicated for CRE loans at amortized cost and legacy CRE loans held for sale at the lower of cost or fair value (in thousands, except amounts in footnotes): 30-59 Days 60-89 Days Greater than 90 Days (1)(2) Total Past Due Current Total Loans Receivable Total Loans > 90 Days and Accruing (1) At June 30, 2019: Whole loans $ — $ — $ 11,516 $ 11,516 $ 1,909,463 $ 1,920,979 $ 11,516 Mezzanine loan — — — — 4,700 4,700 — Preferred equity investments — — — — 25,410 25,410 — Legacy CRE loans held for sale — — 16,082 16,082 — 16,082 — Total $ — $ — $ 27,598 $ 27,598 $ 1,939,573 $ 1,967,171 $ 11,516 At December 31, 2018: Whole loans $ — $ — $ 11,516 $ 11,516 $ 1,517,597 $ 1,529,113 $ 11,516 Mezzanine loan — — — — 4,700 4,700 — Preferred equity investment — — — — 19,555 19,555 — Legacy CRE loans held for sale — — 17,000 17,000 — 17,000 — Total $ — $ — $ 28,516 $ 28,516 $ 1,541,852 $ 1,570,368 $ 11,516 ( 1 ) Includes one whole loan, with an amortized cost of $11.5 million, which was in maturity default at June 30, 2019 and December 31, 2018. The loan is performing with respect to debt service due in accordance with a forbearance agreement at June 30, 2019 and December 31, 2018. During the three and six months ended June 30, 2019, the Company recognized interest income of $165,000 and $330,000, respectively, on this whole loan. During the three and six months ended June 30, 2018, the Company recognized $152,000 and $302,000, respectively, on this whole loan. ( 2 ) Includes one legacy CRE loan that was in default with a total carrying value of $16.1 million and $17.0 million at June 30, 2019 and December 31, 2018, respectively. |
INVESTMENT SECURITIES AVAILAB_2
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Available For Sale Securities [Abstract] | |
Available-for-sale securities | The following table summarizes the Company's investment securities available-for-sale, carried at fair value, including those pledged as collateral (in thousands, except amounts in the footnote): Amortized Cost Unrealized Gains Unrealized Losses Fair Value (1) At June 30, 2019: CMBS, fixed rate $ 118,753 $ 5,833 $ (738 ) $ 123,848 CMBS, floating rate 321,341 1,324 (849 ) 321,816 Total $ 440,094 $ 7,157 $ (1,587 ) $ 445,664 At December 31, 2018: CMBS, fixed rate $ 121,487 $ 559 $ (2,307 ) $ 119,739 CMBS, floating rate 301,132 253 (2,126 ) 299,259 Total $ 422,619 $ 812 $ (4,433 ) $ 418,998 (1) At June 30, 2019 and December 31, 2018, investment securities available-for-sale with fair values of $420.2 million and $388.4 million, respectively, were pledged as collateral under related financings. |
Estimated maturities of available-for-sale securities | The following table summarizes the estimated payoff dates of the Company's investment securities available-for-sale according to their estimated weighted average life classifications (dollars in thousands, except amounts in footnotes): June 30, 2019 December 31, 2018 Amortized Cost (1) Fair Value (1) Weighted Average Coupon Amortized Cost (1) Fair Value (1) Weighted Average Coupon Less than one year (2) $ 91,948 $ 91,924 5.55% $ 126,446 $ 126,014 5.76% Greater than one year and less than five years 133,745 134,728 5.53% 98,220 97,083 5.21% Greater than five years and less than ten years 214,401 219,012 4.08% 197,953 195,901 4.06% Total $ 440,094 $ 445,664 4.76% $ 422,619 $ 418,998 4.76% (1) Includes CMBS positions subject to other-than-temporary-impairment that have no stated coupon rates that are excluded from the calculation of the weighted average coupon rate. The positions with greater than one year and less than five years of projected life had amortized costs of $106,000 and $105,000 and no fair values at June 30, 2019 and December 31, 2018, respectively. There were no positions subject to other-than-temporary impairment with projected lives less than one year and greater than five years and less than ten years at June 30, 2019 and December 31, 2018. ( 2 ) The Company expects that the payoff dates of these CMBS will either be extended or that the securities will be paid off in full. |
Gross unrealized loss and fair value of securities | The following table summarizes the fair value, gross unrealized losses and number of securities aggregated by investment category and the length of time that individual investment securities available-for-sale have been in a continuous unrealized loss position during the periods specified (dollars in thousands): Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities At June 30, 2019: CMBS $ 118,681 $ (1,505 ) 21 $ 1,624 $ (82 ) 6 $ 120,305 $ (1,587 ) 27 At December 31, 2018: CMBS $ 329,441 $ (4,001 ) 49 $ 6,757 $ (432 ) 7 $ 336,198 $ (4,433 ) 56 |
Summary of investment securities available-for-sale | The following table summarizes the Company's sales and redemptions of investment securities available-for-sale for the three and six months ended June 30, 2019 and 2018 (dollars in thousands): For the Three Months Ended For the Six Months Ended Positions Sold/Redeemed Par Amount Sold/Redeemed Amortized Cost Realized Gain Proceeds Positions Sold/Redeemed Par Amount Sold/Redeemed Amortized Cost Realized Gain (Loss) Proceeds June 30, 2019: CMBS 1 $ 634 $ 634 $ 4 $ 638 1 $ 634 $ 634 $ 4 $ 638 June 30, 2018: ABS — $ — $ — $ — $ — 2 $ 411 $ 265 $ (217 ) $ 48 |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Schedule of unconsolidated entities | The following table summarizes the Company's investments in unconsolidated entities at June 30, 2019 and December 31, 2018 and equity in earnings (losses) of unconsolidated entities for the three and six months ended June 30, 2019 and 2018 (dollars in thousands, except amount in the footnotes): Equity in Earnings (Losses) of Unconsolidated Entities Ownership % at For the Three Months Ended For the Six Months Ended June 30, 2019 June 30, 2019 December 31, 2018 June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Pelium Capital (1) — % $ — $ — $ — $ 75 $ — $ (230 ) RCM Global — % — — — (6 ) — 7 Subtotal — — — 69 — (223 ) Investment in RCT I and II (2) 3.0 % 1,548 1,548 26 24 52 46 Total $ 1,548 $ 1,548 $ 26 $ 93 $ 52 $ (177 ) (1) During the six months ended June 30, 2018, the Company received distributions of $10.2 million on its investment in Pelium Capital Partners, L.P. ("Pelium Capital"). ( 2 ) During the three and six months ended June 30, 2019 and 2018, dividends from the investments in RCT I and RCT II's common shares are recorded in other revenue. See Note 9 for the disclosures on the associated unsecured junior subordinated debentures. In 2018, Pelium Capital and RCM Global LLC were fully liquidated. |
BORROWINGS (Tables)
BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Information with respect to borrowings | Certain information with respect to the Company's borrowings is summarized in the following table (dollars in thousands, except amounts in footnotes): Principal Outstanding Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Borrowing Rate Weighted Average Remaining Maturity Value of Collateral At June 30, 2019: XAN 2018-RSO6 Senior Notes $ 397,280 $ 3,629 $ 393,651 3.49 % 16.0 years $ 514,052 XAN 2019-RSO7 Senior Notes 575,811 6,079 569,732 3.69 % 16.8 years 687,168 Unsecured junior subordinated debentures 51,548 — 51,548 6.54 % 17.2 years — 4.50% Convertible Senior Notes 143,750 11,866 131,884 4.50 % 3.1 years — 8.00% Convertible Senior Notes 21,182 124 21,058 8.00 % 199 days — CRE - term repurchase facilities (1) 401,147 4,055 397,092 4.45 % 1.3 years 544,674 Trust certificates - term repurchase facility (2) 42,102 199 41,903 6.34 % 1.2 years 113,453 CMBS - short term repurchase agreements (3) 328,397 — 328,397 3.57 % 20 days 437,731 Total $ 1,961,217 $ 25,952 $ 1,935,265 4.02 % 9.2 years $ 2,297,078 Principal Outstanding Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Borrowing Rate Weighted Average Remaining Maturity Value of Collateral At December 31, 2018: RCC 2017-CRE5 Senior Notes $ 109,250 $ 1,121 $ 108,129 3.76 % 15.6 years $ 228,031 XAN 2018-RSO6 Senior Notes 397,452 4,536 392,916 3.55 % 16.5 years 514,225 Unsecured junior subordinated debentures 51,548 — 51,548 6.61 % 17.7 years — 4.50% Convertible Senior Notes 143,750 13,504 130,246 4.50 % 3.6 years — 8.00% Convertible Senior Notes 21,182 238 20,944 8.00 % 1.0 year — CRE - term repurchase facilities (1) 512,716 5,269 507,447 4.47 % 2.0 years 696,215 Trust certificates - term repurchase facilities (2) 47,451 279 47,172 6.41 % 1.7 years 118,780 CMBS - short term repurchase agreements (3) 295,821 — 295,821 3.63 % 19 days 395,868 Total $ 1,579,170 $ 24,947 $ 1,554,223 4.21 % 6.9 years $ 1,953,119 (1) Principal outstanding includes accrued interest payable of $605,000 and $911,000 at June 30, 2019 and December 31, 2018, respectively. (2) Principal outstanding includes accrued interest payable of $96,000 and $118,000 at June 30, 2019 and December 31, 2018, respectively. (3) Principal outstanding includes accrued interest payable of $398,000 and $773,000 at June 30, 2019 and December 31, 2018, respectively. |
Schedule of securitizations | The following table sets forth certain information with respect to the Company's consolidated securitizations at June 30, 2019 (in thousands): Closing Date Maturity Date End of Designated Principal Reinvestment Period (1) Total Note Paydowns Received from Closing Date through June 30, 2019 RCC 2017-CRE5 (2) July 2017 July 2034 July 2020 $ 251,449 XAN 2018-RSO6 June 2018 June 2035 December 2020 $ 172 XAN 2019-RSO7 April 2019 April 2036 April 2022 $ — (1) The designated principal reinvestment period is the period in which principal repayments can be utilized to purchase loans held outside of the respective securitization that represent the funded commitments of existing collateral in the respective securitization that were not funded as of the date the respective securitization was closed. (2) The remaining outstanding balance of third-party owned notes of Resource Capital Corp. 2017-CRE5, Ltd. ("RCC 2017-CRE5") were paid off in May 2019. |
Repurchase and mortgage finance facilities | The following table sets forth certain information with respect to the Company's repurchase agreements (dollars in thousands, except amounts in footnotes): June 30, 2019 December 31, 2018 Outstanding Borrowings (1) Value of Collateral Number of Positions as Collateral Weighted Average Interest Rate Outstanding Borrowings (1) Value of Collateral Number of Positions as Collateral Weighted Average Interest Rate CRE - Term Repurchase Facilities Wells Fargo Bank, N.A. (2) $ 247,517 $ 335,812 32 4.37 % $ 154,478 $ 226,530 13 4.33 % Morgan Stanley Bank, N.A. (3) 37,137 62,665 3 5.03 % 37,113 62,457 3 5.09 % Barclays Bank PLC (4) 65,628 84,209 8 4.59 % 240,416 308,389 11 4.51 % JPMorgan Chase Bank, N.A. (5) 46,810 61,988 3 4.22 % 75,440 98,839 5 4.30 % Trust Certificates - Term Repurchase Facilities RSO Repo SPE Trust 2017 (6) 41,903 113,453 2 6.34 % 47,172 118,780 2 6.41 % CMBS - Short-Term Repurchase Agreements RBC Capital Markets, LLC 216,167 276,512 30 3.55 % 246,476 313,644 33 3.64 % JP Morgan Securities LLC 89,560 118,345 18 3.57 % 42,040 73,066 13 3.57 % Deutsche Bank Securities Inc. 22,670 42,874 5 3.75 % 7,305 9,158 5 3.98 % Total $ 767,392 $ 1,095,858 $ 850,440 $ 1,210,863 (1) Outstanding borrowings include accrued interest payable. (2) Includes $1.1 million and $1.6 million of deferred debt issuance costs at June 30, 2019 and December 31, 2018, respectively. (3) Includes $137,000 and $167,000 of deferred debt issuance costs at June 30, 2019 and December 31, 2018, respectively. (4) Includes $1.1 million and $1.5 million of deferred debt issuance costs at June 30, 2019 and December 31, 2018, respectively. ( 5 ) Includes $1.6 million and $2.0 million of deferred debt issuance costs at June 30, 2019 and December 31, 2018, respectively. (6) Includes $146,000 and $204,000 of deferred debt issuance costs at June 30, 2019 and December 31, 2018, respectively. |
Schedule of amount at risk under credit facility | The following table shows information about the amount at risk under the repurchase facilities at June 30, 2019 (dollars in thousands): Amount at Risk (1) Weighted Average Remaining Maturity Weighted Average Interest Rate At June 30, 2019: CRE - Term Repurchase Facilities Wells Fargo Bank, N.A. $ 88,544 1.1 years 4.37 % Morgan Stanley Bank, N.A. $ 25,690 72 days 5.03 % Barclays Bank PLC $ 17,739 1.8 years 4.59 % JPMorgan Chase Bank, N.A. $ 13,631 2.3 years 4.22 % Trust Certificates - Term Repurchase Facility RSO Repo SPE Trust 2017 $ 71,440 1.2 years 6.34 % CMBS - Short-Term Repurchase Agreements RBC Capital Markets, LLC $ 60,817 20 days 3.55 % JP Morgan Securities LLC $ 29,118 12 days 3.57 % Deutsche Bank Securities Inc. $ 20,295 49 days 3.75 % (1) Equal to the total of the estimated fair value of securities or loans sold and accrued interest receivable, minus the total of the repurchase agreement liabilities and accrued interest payable. |
Schedule of contractual obligations and commitments | Contractual maturity dates of the Company's borrowings' principal outstanding by category and year are presented in the table below (in thousands): Total 2019 2020 2021 2022 2023 and Thereafter At June 30, 2019: CRE securitizations $ 973,091 $ — $ — $ — $ — $ 973,091 Unsecured junior subordinated debentures 51,548 — — — — 51,548 4.50% Convertible Senior Notes 143,750 — — — 143,750 — 8.00% Convertible Senior Notes 21,182 — 21,182 — — — Repurchase and credit facilities 771,646 365,671 290,750 115,225 — — Total $ 1,961,217 $ 365,671 $ 311,932 $ 115,225 $ 143,750 $ 1,024,639 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of restricted common stock transactions | The following table summarizes the Company's restricted common stock transactions: Non-Employee Directors Non- Employees (1) Former Employees Total Unvested shares at January 1, 2019 30,234 386,628 5,809 422,671 Issued 24,650 196,198 — 220,848 Vested (27,032 ) (175,454 ) (5,809 ) (208,295 ) Forfeited — (8,453 ) — (8,453 ) Unvested shares at June 30, 2019 27,852 398,919 — 426,771 (1) Non-employees are employees of C-III or Resource America, Inc. ("Resource America"). |
Schedule of restricted stock granted | The following table summarizes restricted common stock grants during the six months ended June 30, 2019: Grant Date Shares Vesting per Year Vesting Date(s) January 22, 2019 196,198 33% January 22, 2020, January 22, 2021 and January 22, 2022 February 1, 2019 3,308 100% February 1, 2020 March 8, 2019 14,108 100% March 8, 2020 June 3, 2019 3,164 100% June 3, 2020 June 6, 2019 3,170 100% June 6, 2020 June 19, 2019 900 100% June 19, 2020 |
Summary of stock option transactions | The following table summarizes the status of the Company's vested stock options at June 30, 2019: Vested Options Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Vested at January 1, 2019 10,000 $ 25.60 Vested — — Exercised — — Forfeited — — Expired — — Vested at June 30, 2019 10,000 $ 25.60 1.88 $ — |
Summary of share based compensation expense | The components of equity compensation expense for the periods presented are as follows (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Restricted shares granted to non-employees (1) $ 338 $ 587 $ 949 $ 1,481 Restricted shares granted to non-employee directors 74 72 146 145 Total $ 412 $ 659 $ 1,095 $ 1,626 (1) Non-employees are employees of C-III or Resource America. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of basic and diluted (losses) earnings per common share | The following table presents a reconciliation of basic and diluted earnings (losses) per common share for the periods presented as follows (dollars in thousands, except per share amounts): For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Net income from continuing operations $ 9,003 $ 9,189 $ 17,173 $ 9,052 Net income allocated to preferred shares (2,587 ) (2,587 ) (5,175 ) (7,797 ) Consideration paid in excess of carrying value of preferred shares — — — (7,482 ) Net income (loss) from continuing operations allocable to common shares 6,416 6,602 11,998 (6,227 ) Net loss from discontinued operations, net of tax (112 ) (450 ) (149 ) (203 ) Net income (loss) allocable to common shares $ 6,304 $ 6,152 $ 11,849 $ (6,430 ) Weighted average number of common shares outstanding: Weighted average number of common shares outstanding - basic 31,438,247 31,215,598 31,409,063 31,163,859 Effect of dilutive securities - unvested restricted stock 217,933 186,412 184,983 — Weighted average number of common shares outstanding - diluted 31,656,180 31,402,010 31,594,046 31,163,859 Net income (loss) per common share - basic: Continuing operations $ 0.20 $ 0.21 $ 0.38 $ (0.20 ) Discontinued operations — (0.01 ) — (0.01 ) Net income (loss) per common share - basic $ 0.20 $ 0.20 $ 0.38 $ (0.21 ) Net income (loss) per common share - diluted: Continuing operations $ 0.20 $ 0.21 $ 0.38 $ (0.20 ) Discontinued operations — (0.01 ) — (0.01 ) Net income (loss) per common share - diluted $ 0.20 $ 0.20 $ 0.38 $ (0.21 ) Potentially dilutive shares excluded from calculation due to anti-dilutive effect (1) 12,618,770 14,885,296 12,618,770 14,885,296 (1) Potentially dilutive shares issuable in connection with the potential conversion of the Company's 4.50% convertible senior notes due 2022 ("4.50% Convertible Senior Notes") and 8.00% convertible senior notes due 2020 ("8.00% Convertible Senior Notes") (see Note 9) during the three and six months ended June 30, 2019 and 2018 and its 6.00% convertible senior notes due 2018 during the three and six months ended June 30, 2018 were not included in the calculation of diluted net income (loss) per share because the effect would be anti-dilutive. |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | The following table presents the changes in each component of accumulated other comprehensive income (loss) for the six months ended June 30, 2019 (in thousands): Net Unrealized Gain (Loss) on Derivatives Net Unrealized (Loss) Gain on Investment Securities Available-for-Sale Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2019 $ 563 $ (3,620 ) $ (3,057 ) Other comprehensive (loss) income before reclassifications (4,390 ) 9,196 4,806 Amounts reclassified from accumulated other comprehensive income (1) (68 ) (4 ) (72 ) Balance at June 30, 2019 $ (3,895 ) $ 5,572 $ 1,677 (1) Amounts reclassified from accumulated other comprehensive income are reclassified to interest expense and net realized and unrealized gain on investment securities available-for-sale and loans and derivatives on the Company's consolidated statements of operations. |
DISTRIBUTIONS (Tables)
DISTRIBUTIONS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Distributions [Abstract] | |
Dividends Declared | The following tables present dividends declared (on a per share basis) for the six months ended June 30, 2019 and year ended December 31, 2018, with respect to the Company's common stock and Series C Preferred Stock, and for the period from January 1, 2018 through March 26, 2018, with respect to the Company's Series B Preferred Stock: Common Stock Date Paid Total Dividend Paid Dividend Per Share (in thousands) 2019 June 30 July 26 $ 7,172 $ 0.225 March 31 April 26 $ 6,373 $ 0.20 2018 December 31 January 25, 2019 $ 5,540 $ 0.175 September 30 October 26 $ 4,749 $ 0.15 June 30 July 27 $ 3,165 $ 0.10 March 31 April 27 $ 1,584 $ 0.05 Series B Preferred Stock Series C Preferred Stock Date Paid Total Dividend Paid Dividend Per Share Date Paid Total Dividend Paid Dividend Per Share (in thousands) (in thousands) 2019 June 30 N/A N/A N/A July 30 $ 2,587 $ 0.539063 March 31 N/A N/A N/A April 30 $ 2,588 $ 0.539063 2018 December 31 N/A N/A N/A January 30, 2019 $ 2,588 $ 0.539063 September 30 N/A N/A N/A October 30 $ 2,588 $ 0.539063 June 30 N/A N/A N/A July 30 $ 2,588 $ 0.539063 March 31 N/A N/A N/A April 30 $ 2,588 $ 0.539063 March 26 March 26 $ 1,480 $ 0.320830 N/A N/A N/A |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments measured on recurring basis | The following table presents the Company's financial instruments carried at fair value on a recurring basis based upon the fair value hierarchy (in thousands): Level 1 Level 2 Level 3 Total At June 30, 2019: Assets: Investment securities available-for-sale $ — $ — $ 445,664 $ 445,664 Total assets at fair value $ — $ — $ 445,664 $ 445,664 Liabilities: Derivatives $ — $ (4,470 ) $ — $ (4,470 ) Total liabilities at fair value $ — $ (4,470 ) $ — $ (4,470 ) At December 31, 2018: Assets: Investment securities available-for-sale $ — $ — $ 418,998 $ 418,998 Derivatives — 985 — 985 Total assets at fair value $ — $ 985 $ 418,998 $ 419,983 Liabilities: Derivatives $ — $ 1,043 $ — $ 1,043 Total liabilities at fair value $ — $ 1,043 $ — $ 1,043 |
Fair value assets unobservable input reconciliation | The following table presents additional information about the Company's assets that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs (in thousands): CMBS Balance, January 1, 2019 $ 418,998 Included in earnings 1,415 Purchases 40,594 Sale (638 ) Paydowns (1) (23,897 ) Included in other comprehensive income 9,192 Balance, June 30, 2019 $ 445,664 (1) Includes non-cash adjustments in connection with the recalculation of the accretable yield on certain interest-only CMBS. |
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 in the following table (in thousands): Fair Value Measurements Carrying Value 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) At June 30, 2019: Assets: CRE whole loans held for investment $ 1,918,382 $ 1,928,828 $ — $ — $ 1,928,828 CRE mezzanine loan $ 4,700 $ 4,700 $ — $ — $ 4,700 CRE preferred equity investments $ 25,410 $ 25,565 $ — $ — $ 25,565 Legacy CRE loans held for sale $ 16,082 $ 16,082 $ — $ — $ 16,082 Liabilities: Senior notes in CRE securitizations $ 963,383 $ 976,360 $ — $ — $ 976,360 Junior subordinated notes $ 51,548 $ 28,050 $ — $ — $ 28,050 Convertible notes $ 152,942 $ 164,932 $ — $ — $ 164,932 Repurchase agreements $ 767,392 $ 771,593 $ — $ — $ 771,593 At December 31, 2018: Assets: CRE whole loans held for investment $ 1,527,712 $ 1,538,759 $ — $ — $ 1,538,759 CRE mezzanine loan $ 4,700 $ 4,700 $ — $ — $ 4,700 CRE preferred equity investment $ 19,555 $ 19,718 $ — $ — $ 19,718 Legacy CRE loans held for sale $ 17,000 $ 17,000 $ — $ — $ 17,000 Liabilities: Senior notes in CRE securitizations $ 501,045 $ 498,897 $ — $ — $ 498,897 Junior subordinated notes $ 51,548 $ 27,800 $ — $ — $ 27,800 Convertible notes $ 151,190 $ 164,932 $ — $ — $ 164,932 Repurchase agreements $ 850,440 $ 855,783 $ — $ — $ 855,783 |
MARKET RISK AND DERIVATIVE IN_2
MARKET RISK AND DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Fair value of derivative instruments | The following tables present the fair value of the Company's derivative financial instruments at June 30, 2019 and December 31, 2018 on the Company's consolidated balance sheets and the related effect of the derivative instruments on the consolidated statements of operations for the six months ended June 30, 2019 and 2018: Fair Value of Derivative Instruments Liability Derivatives At June 30, 2019 Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging (1) $ 87,551 Derivatives, at fair value $ 4,470 Interest rate swap contracts, hedging $ 87,551 Accumulated other comprehensive income (loss) $ (3,895 ) Asset Derivatives At December 31, 2018 Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging (1) $ 31,725 Derivatives, at fair value $ 985 Liability Derivatives Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging (1) $ 49,326 Derivatives, at fair value $ 1,043 Interest rate swap contracts, hedging $ 81,051 Accumulated other comprehensive income (loss) $ 563 (1) Interest rate swap contracts are accounted for as cash flow hedges. |
The effect of derivative instruments on the statement of income | The Effect of Derivative Instruments on the Consolidated Statements of Operations (in thousands) Derivatives Six Months Ended June 30, 2019 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) Interest rate swap contracts, hedging Interest expense $ 20 Derivatives Six Months Ended June 30, 2018 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) Interest rate swap contracts, hedging Interest expense $ (80 ) |
OFFSETTING OF FINANCIAL ASSET_2
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Offsetting [Abstract] | |
Offsetting financial assets and derivative assets | The following table presents a summary of the Company's offsetting of derivative assets (in thousands): (iv) Gross Amounts Not Offset on the Consolidated Balance Sheets (i) Gross Amounts of Recognized Assets (ii) Gross Amounts Offset on the Consolidated Balance Sheets (iii) = (i) - (ii) Net Amounts of Assets Included on the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged (v) = (iii) - (iv) Net Amount At December 31, 2018: Derivatives, at fair value $ 985 $ — $ 985 $ — $ — $ 985 |
Offsetting financial liabilities and derivative liabilities | The following table presents a summary of the Company's offsetting of financial liabilities and derivative liabilities (in thousands, except amounts in footnotes): (iv) Gross Amounts Not Offset on the Consolidated Balance Sheets (i) Gross Amounts of Recognized Liabilities (ii) Gross Amounts Offset on the Consolidated Balance Sheets (iii) = (i) - (ii) Net Amounts of Liabilities Included on the Consolidated Balance Sheets Financial Instruments (1) Cash Collateral Pledged (v) = (iii) - (iv) Net Amount At June 30, 2019: Derivatives, at fair value (2) $ 4,470 $ — $ 4,470 $ — $ 4,470 $ — Repurchase agreements and term facilities (3) 767,392 — 767,392 767,392 — — Total $ 771,862 $ — $ 771,862 $ 767,392 $ 4,470 $ — At December 31, 2018: Derivatives, at fair value (2) $ 1,043 $ — $ 1,043 $ — $ 1,043 $ — Repurchase agreements and term facilities (3) 850,440 — 850,440 850,440 — — Total $ 851,483 $ — $ 851,483 $ 850,440 $ 1,043 $ — (1) Amounts represent financial instruments pledged that are available to be offset against liability balances associated with term facilities, repurchase agreements and derivatives. (2) The Company posted excess cash collateral of $3.4 million and $1.3 million related to interest rate swap contracts outstanding at June 30, 2019 and December 31, 2018, respectively. ( 3 ) The combined fair value of securities and loans pledged against the Company's various repurchase agreements and term facilities was $1.1 billion and $1.2 billion at June 30, 2019 and December 31, 2018, respectively. |
DISCONTINUED OPERATIONS AND A_2
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Disposal groups, including discontinued operations | The following table summarizes the operating results of the residential mortgage and middle market lending segments' discontinued operations as reported separately as net loss from discontinued operations, net of tax for the three and six months ended June 30, 2019 and 2018 (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 REVENUES Interest income: Loans $ — $ 10 $ — $ 580 Other — 9 — 13 Total interest income — 19 — 593 Interest expense — — — — Net interest income — 19 — 593 Other revenue — (53 ) — 32 Total revenues — (34 ) — 625 OPERATING EXPENSES General and administrative 112 443 284 1,103 Total operating expenses 112 443 284 1,103 (112 ) (477 ) (284 ) (478 ) OTHER INCOME (EXPENSE) Net realized and unrealized gain on investment securities available-for-sale and loans and derivatives — 27 135 275 Total other income — 27 135 275 LOSS FROM DISCONTINUED OPERATIONS BEFORE TAXES (112 ) (450 ) (149 ) (203 ) Income tax expense — — — — TOTAL LOSS FROM DISCONTINUED OPERATIONS $ (112 ) $ (450 ) $ (149 ) $ (203 ) The assets and liabilities of business segments classified as discontinued operations and other assets and liabilities classified as held for sale are reported separately in the accompanying consolidated financial statements and are summarized as follows at June 30, 2019 and December 31, 2018 (in thousands): June 30, 2019 December 31, 2018 ASSETS Loans held for sale $ 16,082 $ 17,000 Other assets 366 645 Total $ 16,448 $ 17,645 LIABILITIES Accounts payable and other liabilities $ 1,770 $ 1,820 Total $ 1,770 $ 1,820 |
Summary of Loans Held for sale Table Text Block | The following table summarizes the non-performing legacy CRE loans transferred to held for sale in the fourth quarter of 2016. The loans held for sale are carried at the lower of cost or fair value (in thousands, except number of loans and amount in the footnote): Loan Description Number of Loans Amortized Cost Carrying Value At June 30, 2019: Legacy CRE loan 1 $ 22,150 $ 16,082 Mezzanine loan (1) 1 — — Total 2 $ 22,150 $ 16,082 At December 31, 2018: Legacy CRE loan 1 $ 21,666 $ 17,000 Mezzanine loan (1) 1 — — Total 2 $ 21,666 $ 17,000 ( 1 ) The mezzanine loan has a par value of $38.1 million and was acquired at a fair value of zero as a result of the liquidations of Resource Real Estate Funding CDO 2006-1, Ltd. in April 2016 and Resource Real Estate Funding CDO 2007-1, Ltd. in November 2016. The mezzanine loan is comprised of two tranches, maturing in November 2018 and September 2021. |
ORGANIZATION (Details)
ORGANIZATION (Details) | Jun. 30, 2019 |
Exantas Capital Corp | C-III Capital Partners LLC | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 2.40% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Cash balance in excess of federal deposit Insurance limit, amount | $ 44.4 | $ 80.4 |
Operating loss carryforwards, valuation allowance | 54.6 | 58.4 |
Operating loss carryforwards, valuation allowance, tax expense impact | $ 16 | $ 15.3 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 47,154 | $ 82,816 | $ 80,191 | |
Restricted cash | 14,062 | 12,658 | 10,070 | |
Total cash, cash equivalents and restricted cash shown on the Company's consolidated statements of cash flows | $ 61,216 | $ 95,474 | $ 90,261 | $ 204,364 |
VARIABLE INTEREST ENTITIES (Con
VARIABLE INTEREST ENTITIES (Consolidated VIEs) (the Company is the primary beneficiary) (Details) - VIE, Primary Beneficiary | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($)entity | Dec. 31, 2018USD ($)entity | |
Variable Interest Entity [Line Items] | ||
Number of consolidated VIEs | entity | 6 | 5 |
Financial support, amount | $ | $ 0 | $ 0 |
VARIABLE INTEREST ENTITIES (Sch
VARIABLE INTEREST ENTITIES (Schedule of Carrying Value of Assets and Liabilities of Consolidated VIEs) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS: | ||
Restricted cash | $ 6,132 | $ 6,189 |
CRE loans, pledged as collateral | 1,266,549 | 700,223 |
Other assets | 106 | 157 |
Total assets of consolidated VIEs | 1,311,465 | 742,031 |
LIABILITIES | ||
Accounts payable and other liabilities | 147 | 75 |
Accrued interest payable | 1,268 | 709 |
Borrowings | 963,383 | 501,045 |
Total liabilities of consolidated VIEs | 964,798 | $ 501,829 |
VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 6,132 | |
Accrued interest receivable | 5,528 | |
CRE loans, pledged as collateral | 1,266,549 | |
Principal paydowns receivable | 33,150 | |
Other assets | 106 | |
Total assets of consolidated VIEs | 1,311,465 | |
LIABILITIES | ||
Accounts payable and other liabilities | 147 | |
Accrued interest payable | 1,268 | |
Borrowings | 963,383 | |
Total liabilities of consolidated VIEs | 964,798 | |
CRE Securitizations | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 5,700 | |
Accrued interest receivable | 5,528 | |
CRE loans, pledged as collateral | 1,266,549 | |
Principal paydowns receivable | 33,150 | |
Other assets | 106 | |
Total assets of consolidated VIEs | 1,311,033 | |
LIABILITIES | ||
Accounts payable and other liabilities | 147 | |
Accrued interest payable | 1,268 | |
Borrowings | 963,383 | |
Total liabilities of consolidated VIEs | 964,798 | |
Other | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 432 | |
Accrued interest receivable | 0 | |
CRE loans, pledged as collateral | 0 | |
Principal paydowns receivable | 0 | |
Other assets | 0 | |
Total assets of consolidated VIEs | 432 | |
LIABILITIES | ||
Accounts payable and other liabilities | 0 | |
Accrued interest payable | 0 | |
Borrowings | 0 | |
Total liabilities of consolidated VIEs | $ 0 |
VARIABLE INTEREST ENTITIES (Unc
VARIABLE INTEREST ENTITIES (Unconsolidated VIEs) (the Company is not the primary beneficiary, but has a variable interest) (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2018 | Oct. 31, 2017 | Jun. 30, 2019 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | |||||
Investments in unconsolidated entities | $ 1,548,000 | $ 1,548,000 | $ 1,548,000 | ||
Borrowings | 1,935,265,000 | 1,935,265,000 | $ 1,554,223,000 | ||
VIE, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Carrying amount of private-label securitization | (3,077,000) | $ (3,077,000) | |||
VIE, Not Primary Beneficiary | Investment in RCT I and II | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage in VIE | 100.00% | ||||
Investments in unconsolidated entities | 1,500,000 | $ 1,500,000 | |||
VIE, Not Primary Beneficiary | Interest in RCT I | |||||
Variable Interest Entity [Line Items] | |||||
Investments in unconsolidated entities | $ 774,000 | $ 774,000 | |||
Percentage of value of trusts owned | 3.00% | 3.00% | |||
Borrowings | $ 25,800,000 | $ 25,800,000 | |||
VIE, Not Primary Beneficiary | Interest in RCT II | |||||
Variable Interest Entity [Line Items] | |||||
Investments in unconsolidated entities | $ 774,000 | $ 774,000 | |||
Percentage of value of trusts owned | 3.00% | 3.00% | |||
Borrowings | $ 25,800,000 | $ 25,800,000 | |||
VIE, Not Primary Beneficiary | C40 | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage in VIE | 95.00% | ||||
Carrying amount of private-label securitization | 22,119,000 | $ 705,400,000 | 22,119,000 | ||
VIE, Not Primary Beneficiary | Prospect Hackensack | |||||
Variable Interest Entity [Line Items] | |||||
Carrying amount of private-label securitization | 19,994,000 | 19,994,000 | |||
Payments to acquire interest in joint venture | $ 19,200,000 | ||||
VIE, Not Primary Beneficiary | Santa Clarita | |||||
Variable Interest Entity [Line Items] | |||||
Carrying amount of private-label securitization | 5,416,000 | $ 5,416,000 | |||
Payments to acquire interest in joint venture | $ 5,500,000 |
VARIABLE INTEREST ENTITIES (S_2
VARIABLE INTEREST ENTITIES (Schedule of Classification, Carrying Value, and Maximum Exposure to Loss of Unconsolidated VIEs) (Details) - VIE, Not Primary Beneficiary - USD ($) $ in Thousands | Jun. 30, 2019 | Oct. 31, 2017 |
ASSETS: | ||
Accrued interest receivable | $ 277 | |
CRE loans | 25,410 | |
Investment securities available-for-sale | 21,952 | |
Investments in unconsolidated entities | 1,548 | |
Total assets | 49,187 | |
LIABILITIES | ||
Accrued interest payable | 716 | |
Borrowings | 51,548 | |
Total liabilities | 52,264 | |
Net (liability) asset | (3,077) | |
Interest Receivable | ||
ASSETS: | ||
Maximum Exposure to Loss | 0 | |
Loans Pledged as Collateral | ||
ASSETS: | ||
Maximum Exposure to Loss | 25,410 | |
Available-for-sale Securities | ||
ASSETS: | ||
Maximum Exposure to Loss | 21,709 | |
Investments in Unconsolidated Entities | ||
ASSETS: | ||
Maximum Exposure to Loss | 1,548 | |
Unsecured Junior Subordinated Debentures | ||
ASSETS: | ||
Accrued interest receivable | 110 | |
CRE loans | 0 | |
Investment securities available-for-sale | 0 | |
Investments in unconsolidated entities | 1,548 | |
Total assets | 1,658 | |
LIABILITIES | ||
Accrued interest payable | 716 | |
Borrowings | 51,548 | |
Total liabilities | 52,264 | |
Net (liability) asset | (50,606) | |
C40 | ||
ASSETS: | ||
Accrued interest receivable | 167 | |
CRE loans | 0 | |
Investment securities available-for-sale | 21,952 | |
Investments in unconsolidated entities | 0 | |
Total assets | 22,119 | |
LIABILITIES | ||
Accrued interest payable | 0 | |
Borrowings | 0 | |
Total liabilities | 0 | |
Net (liability) asset | 22,119 | $ 705,400 |
Prospect Hackensack | ||
ASSETS: | ||
Accrued interest receivable | 0 | |
CRE loans | 19,994 | |
Investment securities available-for-sale | 0 | |
Investments in unconsolidated entities | 0 | |
Total assets | 19,994 | |
LIABILITIES | ||
Accrued interest payable | 0 | |
Borrowings | 0 | |
Total liabilities | 0 | |
Net (liability) asset | 19,994 | |
Santa Clarita | ||
ASSETS: | ||
Accrued interest receivable | 0 | |
CRE loans | 5,416 | |
Investment securities available-for-sale | 0 | |
Investments in unconsolidated entities | 0 | |
Total assets | 5,416 | |
LIABILITIES | ||
Accrued interest payable | 0 | |
Borrowings | 0 | |
Total liabilities | 0 | |
Net (liability) asset | $ 5,416 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - Continuing Operations - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Common Stock | ||
Non-cash continuing financing activities include the following: | ||
Distributions accrued but not paid | $ 7,172 | $ 3,166 |
Preferred Stock | ||
Non-cash continuing financing activities include the following: | ||
Distributions accrued but not paid | $ 1,725 | $ 1,725 |
LOANS (Summary of Loans) (Detai
LOANS (Summary of Loans) (Details) - Commercial Real Estate Loans | Jun. 30, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan |
Receivables With Imputed Interest [Line Items] | ||
Principal, Loans held for investment | $ 1,959,093,000 | $ 1,563,177,000 |
Unamortized (Discount) Premium, net | (8,004,000) | (9,809,000) |
Amortized Cost, Loans held for investment | 1,951,089,000 | 1,553,368,000 |
Allowance for Loan Losses | (2,597,000) | (1,401,000) |
Carrying Value, Loans held for investment | 1,948,492,000 | 1,551,967,000 |
Loan origination fees | 10,000,000 | 9,600,000 |
Deferred amendment fees | 245,000,000 | 171,000,000 |
Unamortized loan acquisition costs | 2,300,000 | 0 |
Amortized Cost, Loans held for investment | 1,951,089,000 | 1,553,368,000 |
CRE whole loans | ||
Receivables With Imputed Interest [Line Items] | ||
Principal, Loans held for investment | 1,928,828,000 | 1,538,759,000 |
Unamortized (Discount) Premium, net | (7,849,000) | (9,646,000) |
Amortized Cost, Loans held for investment | 1,920,979,000 | 1,529,113,000 |
Allowance for Loan Losses | (2,597,000) | (1,401,000) |
Carrying Value, Loans held for investment | $ 1,918,382,000 | $ 1,527,712,000 |
Quantity | Loan | 117 | 79 |
Amortized Cost, Loans held for investment | $ 1,920,979,000 | $ 1,529,113,000 |
Loans held for investment, unfunded loan commitments | $ 119,700,000 | $ 108,100,000 |
CRE whole loans | London Interbank Offered Rate (LIBOR) | Minimum | ||
Receivables With Imputed Interest [Line Items] | ||
Contractual Interest Rates | 2.70% | 2.70% |
CRE whole loans | London Interbank Offered Rate (LIBOR) | Maximum | ||
Receivables With Imputed Interest [Line Items] | ||
Contractual Interest Rates | 6.25% | 6.25% |
Mezzanine loan | ||
Receivables With Imputed Interest [Line Items] | ||
Principal, Loans held for investment | $ 4,700,000 | $ 4,700,000 |
Amortized Cost, Loans held for investment | 4,700,000 | 4,700,000 |
Carrying Value, Loans held for investment | $ 4,700,000 | $ 4,700,000 |
Quantity | Loan | 1 | 1 |
Contractual Interest Rates | 10.00% | 10.00% |
Amortized Cost, Loans held for investment | $ 4,700,000 | $ 4,700,000 |
Preferred equity investments | ||
Receivables With Imputed Interest [Line Items] | ||
Principal, Loans held for investment | 25,565,000 | 19,718,000 |
Unamortized (Discount) Premium, net | (155,000) | (163,000) |
Amortized Cost, Loans held for investment | 25,410,000 | 19,555,000 |
Carrying Value, Loans held for investment | $ 25,410,000 | $ 19,555,000 |
Quantity | Loan | 2 | 1 |
Contractual Interest Rates | 11.50% | |
Amortized Cost, Loans held for investment | $ 25,410,000 | $ 19,555,000 |
Loans held for investment, unfunded loan commitments | $ 3,200,000 | 0 |
Loans receivable, contracted interest rate | 8.00% | |
Preferred equity investments | Minimum | ||
Receivables With Imputed Interest [Line Items] | ||
Contractual Interest Rates | 11.00% | |
Preferred equity investments | Maximum | ||
Receivables With Imputed Interest [Line Items] | ||
Contractual Interest Rates | 11.50% | |
Whole Loans Classified as Held-for-sale | ||
Receivables With Imputed Interest [Line Items] | ||
Amortized Cost, Loans held for investment | $ 11,500,000 | $ 11,500,000 |
Quantity | Loan | 1 | 1 |
Amortized Cost, Loans held for investment | $ 11,500,000 | $ 11,500,000 |
LOANS (Commercial Real Estate L
LOANS (Commercial Real Estate Loans, at Amortized Cost) (Details) $ in Thousands | Jun. 30, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan |
Commercial Real Estate Loans | ||
Receivables With Imputed Interest [Line Items] | ||
Amortized Cost, Loans held for investment | $ 1,951,089 | $ 1,553,368 |
Commercial Real Estate Loans | Whole Loans in Default | ||
Receivables With Imputed Interest [Line Items] | ||
Amortized Cost, Loans held for investment | $ 11,500 | $ 11,500 |
Quantity | Loan | 1 | 1 |
Commercial Real Estate Debt Investments | ||
Receivables With Imputed Interest [Line Items] | ||
2019 | $ 10,399 | $ 10,379 |
2020 | 167,483 | 182,422 |
2021 and Thereafter | 1,761,691 | 1,349,052 |
Amortized Cost, Loans held for investment | 1,939,573 | 1,541,853 |
Commercial Real Estate Debt Investments | CRE whole loans | ||
Receivables With Imputed Interest [Line Items] | ||
2019 | 10,399 | 10,379 |
2020 | 167,483 | 182,422 |
2021 and Thereafter | 1,731,581 | 1,324,797 |
Amortized Cost, Loans held for investment | 1,909,463 | 1,517,598 |
Commercial Real Estate Debt Investments | Mezzanine loan | ||
Receivables With Imputed Interest [Line Items] | ||
2021 and Thereafter | 4,700 | 4,700 |
Amortized Cost, Loans held for investment | 4,700 | 4,700 |
Commercial Real Estate Debt Investments | Preferred equity investments | ||
Receivables With Imputed Interest [Line Items] | ||
2021 and Thereafter | 25,410 | 19,555 |
Amortized Cost, Loans held for investment | $ 25,410 | $ 19,555 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Loans receivable–related party | $ 33.2 | $ 32.1 |
Commercial Real Estate Loans | Southwest Region | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 23.80% | 32.30% |
Commercial Real Estate Loans | Mountain Region | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 21.60% | 20.90% |
Commercial Real Estate Loans | Pacific Region | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 13.50% | 17.10% |
FINANCING RECEIVABLES (Allowanc
FINANCING RECEIVABLES (Allowance for Loan Losses and Recorded Investments in Loans) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Allowance for loan losses: | |||
Provision for (recovery of) loan losses, net | $ 1,195 | $ (799) | |
Commercial Real Estate Loans | |||
Allowance for loan losses: | |||
Allowance for loan losses at beginning of period | 1,401 | $ 5,328 | $ 5,328 |
Provision for (recovery of) loan losses, net | 1,196 | (1,595) | |
Loans charged-off | (2,332) | ||
Allowance for loan losses at end of period | 2,597 | 1,401 | |
Allowance for loan losses ending balance: | |||
Collectively evaluated for impairment | 2,597 | 1,401 | |
Loans: Amortized cost ending balance: | |||
Individually evaluated for impairment | 30,110 | 24,255 | |
Collectively evaluated for impairment | $ 1,920,979 | $ 1,529,113 |
FINANCING RECEIVABLES (Allowa_2
FINANCING RECEIVABLES (Allowance for Loan Losses and Recorded Investments in Loans) (Parenthetical) (Details) - Commercial Real Estate Loans - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Accounts Notes And Loans Receivable [Line Items] | ||
Amortization cost of recovery of loan | $ 0 | $ 0 |
Carrying value of recovery of loan | 0 | $ 0 |
Payments received from loan | $ 1,000 |
FINANCING RECEIVABLES (Credit R
FINANCING RECEIVABLES (Credit Risk Profiles and Allowance For Loan Losses) (Details) - Commercial Real Estate Loans - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | $ 1,967,171 | $ 1,570,368 |
Whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 1,920,979 | 1,529,113 |
Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 4,700 | 4,700 |
Preferred equity investments | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 25,410 | 19,555 |
Legacy CRE Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables, held for sale | $ 16,082 | 17,000 |
Rating 3 | ||
Schedule Of Financing Receivables [Line Items] | ||
Allowance for credit losses, percentage of aggregate par amount of loans | 1.50% | |
Loans and receivables | $ 158,095 | 77,067 |
Rating 3 | Whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 158,095 | 77,067 |
Rating 3 | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 3 | Preferred equity investments | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 3 | Legacy CRE Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables, held for sale | $ 0 | 0 |
Rating 4 | ||
Schedule Of Financing Receivables [Line Items] | ||
Allowance for credit losses, percentage of aggregate carrying amount of loans | 5.00% | |
Loans and receivables | $ 4,348 | 4,840 |
Rating 4 | Whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 4,348 | 4,840 |
Rating 4 | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 4 | Preferred equity investments | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 4 | Legacy CRE Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables, held for sale | 0 | 0 |
Rating 1 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 1 | Whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 1 | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 1 | Preferred equity investments | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 1 | Legacy CRE Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables, held for sale | 0 | 0 |
Rating 2 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 1,788,646 | 1,471,461 |
Rating 2 | Whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 1,758,536 | 1,447,206 |
Rating 2 | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 4,700 | 4,700 |
Rating 2 | Preferred equity investments | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 25,410 | 19,555 |
Rating 2 | Legacy CRE Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables, held for sale | 0 | 0 |
Rating 5 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 5 | Whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 5 | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 5 | Preferred equity investments | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 5 | Legacy CRE Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables, held for sale | 0 | 0 |
Held for Sale | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 16,082 | 17,000 |
Held for Sale | Whole loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Held for Sale | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Held for Sale | Preferred equity investments | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Held for Sale | Legacy CRE Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables, held for sale | $ 16,082 | $ 17,000 |
FINANCING RECEIVABLES (Details)
FINANCING RECEIVABLES (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan | |
Accounts Notes And Loans Receivable [Line Items] | ||
Impaired loans | $ 0 | $ 0 |
Troubled-debt restructurings | $ 0 | $ 0 |
Commercial Real Estate Loans | Whole Loans In Technical Default | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Number of defaulted loans | Loan | 1 | 1 |
Recorded investment | $ 11,500,000 | $ 11,500,000 |
Commercial Real Estate Loans | Legacy CRE Whole Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Number of defaulted loans | Loan | 1 | 1 |
Recorded investment | $ 16,100,000 | $ 17,000,000 |
FINANCING RECEIVABLES (Loan Por
FINANCING RECEIVABLES (Loan Portfolio Aging Analysis) (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)Loan | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Loan | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)Loan | |
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | $ 27,598,000 | $ 27,598,000 | $ 28,516,000 | ||
Current | 1,939,573,000 | 1,939,573,000 | 1,541,852,000 | ||
Total Loans Receivable | 1,967,171,000 | 1,967,171,000 | 1,570,368,000 | ||
Total Loans Greater Than 90 days and Accruing | 11,516,000 | 11,516,000 | 11,516,000 | ||
Interest income | 37,138,000 | $ 29,660,000 | 71,070,000 | $ 55,617,000 | |
30-59 Days | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 0 | 0 | 0 | ||
60-89 Days | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 0 | 0 | 0 | ||
Greater than 90 Days | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 27,598,000 | 27,598,000 | 28,516,000 | ||
Commercial Real Estate Loans | Whole loans | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 11,516,000 | 11,516,000 | 11,516,000 | ||
Current | 1,909,463,000 | 1,909,463,000 | 1,517,597,000 | ||
Total Loans Receivable | 1,920,979,000 | 1,920,979,000 | 1,529,113,000 | ||
Total Loans Greater Than 90 days and Accruing | 11,516,000 | 11,516,000 | 11,516,000 | ||
Commercial Real Estate Loans | Mezzanine loan | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 0 | 0 | 0 | ||
Current | 4,700,000 | 4,700,000 | 4,700,000 | ||
Total Loans Receivable | 4,700,000 | 4,700,000 | 4,700,000 | ||
Total Loans Greater Than 90 days and Accruing | 0 | 0 | 0 | ||
Commercial Real Estate Loans | Preferred equity investments | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 0 | 0 | 0 | ||
Current | 25,410,000 | 25,410,000 | 19,555,000 | ||
Total Loans Receivable | 25,410,000 | 25,410,000 | 19,555,000 | ||
Total Loans Greater Than 90 days and Accruing | 0 | 0 | 0 | ||
Commercial Real Estate Loans | Legacy CRE loans held for sale | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 16,082,000 | 16,082,000 | 17,000,000 | ||
Current | 0 | 0 | 0 | ||
Total Loans Receivable | 16,082,000 | 16,082,000 | 17,000,000 | ||
Total Loans Greater Than 90 days and Accruing | $ 0 | $ 0 | $ 0 | ||
Number of defaulted loans | Loan | 1 | 1 | 1 | ||
Recorded investment | $ 16,100,000 | $ 16,100,000 | $ 17,000,000 | ||
Commercial Real Estate Loans | Whole Loans In Technical Default | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Number of defaulted loans | Loan | 1 | 1 | 1 | ||
Recorded investment | $ 11,500,000 | $ 11,500,000 | $ 11,500,000 | ||
Interest income | 165,000 | $ 152,000 | 330,000 | $ 302,000 | |
Commercial Real Estate Loans | 30-59 Days | Whole loans | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 0 | 0 | 0 | ||
Commercial Real Estate Loans | 30-59 Days | Mezzanine loan | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 0 | 0 | 0 | ||
Commercial Real Estate Loans | 30-59 Days | Preferred equity investments | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 0 | 0 | 0 | ||
Commercial Real Estate Loans | 30-59 Days | Legacy CRE loans held for sale | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 0 | 0 | 0 | ||
Commercial Real Estate Loans | 60-89 Days | Whole loans | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 0 | 0 | 0 | ||
Commercial Real Estate Loans | 60-89 Days | Mezzanine loan | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 0 | 0 | 0 | ||
Commercial Real Estate Loans | 60-89 Days | Preferred equity investments | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 0 | 0 | 0 | ||
Commercial Real Estate Loans | 60-89 Days | Legacy CRE loans held for sale | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 0 | 0 | 0 | ||
Commercial Real Estate Loans | Greater than 90 Days | Whole loans | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 11,516,000 | 11,516,000 | 11,516,000 | ||
Commercial Real Estate Loans | Greater than 90 Days | Mezzanine loan | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 0 | 0 | 0 | ||
Commercial Real Estate Loans | Greater than 90 Days | Preferred equity investments | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 0 | 0 | 0 | ||
Commercial Real Estate Loans | Greater than 90 Days | Legacy CRE loans held for sale | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | $ 16,082,000 | $ 16,082,000 | $ 17,000,000 |
INVESTMENT SECURITIES AVAILAB_3
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Schedule of Available-for-Sale Securities, Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 440,094 | $ 422,619 |
Unrealized Gains | 7,157 | 812 |
Unrealized Losses | (1,587) | (4,433) |
Fair Value | 445,664 | 418,998 |
CMBS, Fixed Rate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 118,753 | 121,487 |
Unrealized Gains | 5,833 | 559 |
Unrealized Losses | (738) | (2,307) |
Fair Value | 123,848 | 119,739 |
CMBS, Floating Rate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 321,341 | 301,132 |
Unrealized Gains | 1,324 | 253 |
Unrealized Losses | (849) | (2,126) |
Fair Value | $ 321,816 | $ 299,259 |
INVESTMENT SECURITIES AVAILAB_4
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Schedule of Available-for-Sale Securities, Fair Value) (Parenthetical) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Available For Sale Securities [Abstract] | ||
Assets pledged as collateral | $ 420.2 | $ 388.4 |
INVESTMENT SECURITIES AVAILAB_5
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Estimated Maturities of Available-For-Sale Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Less than one year | $ 91,948 | $ 126,446 |
Greater than one year and less than five years | 133,745 | 98,220 |
Greater than five years and less than ten years | 214,401 | 197,953 |
Total | 440,094 | 422,619 |
Fair Value | ||
Less than one year | 91,924 | 126,014 |
Greater than one year and less than five years | 134,728 | 97,083 |
Greater than five years and less than ten years | 219,012 | 195,901 |
Total | $ 445,664 | $ 418,998 |
Weighted Average Coupon | ||
Less than one year | 5.55% | 5.76% |
Greater than one year and less than five years | 5.53% | 5.21% |
Greater than five years and less than ten years | 4.08% | 4.06% |
Total | 4.76% | 4.76% |
INVESTMENT SECURITIES AVAILAB_6
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Estimated Maturities of Available-For-Sale Securities) (Parenthetical) (Details) | Jun. 30, 2019USD ($)position | Dec. 31, 2018USD ($)position |
Amortized Cost | ||
Greater than one year and less than five years | $ 133,745,000 | $ 98,220,000 |
Fair Value | ||
Greater than one year and less than five years | 134,728,000 | 97,083,000 |
CMBS | ||
Amortized Cost | ||
Greater than one year and less than five years | 106,000 | 105,000 |
Fair Value | ||
Greater than one year and less than five years | $ 0 | $ 0 |
Number of positions other than temporary impairment less than one year | position | 0 | 0 |
Number of positions other than temporary impairment greater than five years | position | 0 | 0 |
Number of positions other than temporary impairment less than ten years | position | 0 | 0 |
INVESTMENT SECURITIES AVAILAB_7
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Debt Securities, Available-for-sale [Abstract] | ||||
Other than temporary impairment losses, investments | $ 0 | $ 0 | $ 0 | $ 0 |
CMBS | Minimum | ||||
Debt Securities, Available-for-sale [Abstract] | ||||
Contractual maturities of investment securities available-for-sale | 2024-12 | |||
CMBS | Maximum | ||||
Debt Securities, Available-for-sale [Abstract] | ||||
Contractual maturities of investment securities available-for-sale | 2061-08 |
INVESTMENT SECURITIES AVAILAB_8
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Gross Unrealized Loss and Fair Value of Securities) (Details) - CMBS $ in Thousands | Jun. 30, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, less than 12 months | $ 118,681 | $ 329,441 |
Unrealized Losses, less than 12 months | $ (1,505) | $ (4,001) |
Number of Securities, less than 12 months | security | 21 | 49 |
Fair Value, more than 12 months | $ 1,624 | $ 6,757 |
Unrealized losses, more than 12 Months | $ (82) | $ (432) |
Number of Securities, more than 12 Months | security | 6 | 7 |
Fair Value, total | $ 120,305 | $ 336,198 |
Unrealized losses, total | $ (1,587) | $ (4,433) |
Number of Securities, total | security | 27 | 56 |
INVESTMENT SECURITIES AVAILAB_9
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Sales and Redemptions of Available-for-Sale Debt Securities) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)position | Jun. 30, 2018USD ($)position | Jun. 30, 2019USD ($)position | Jun. 30, 2018USD ($)position | |
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from sale of investment securities available-for-sale | $ 638 | $ 48 | ||
CMBS | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Positions Sold/Redeemed | position | 1 | 1 | ||
Par Amount Sold/Redeemed | $ 634 | $ 634 | ||
Amortized Cost | 634 | 634 | ||
Realized Gain (Loss) | 4 | 4 | ||
Proceeds from sale of investment securities available-for-sale | $ 638 | $ 638 | ||
ABS | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Positions Sold/Redeemed | position | 0 | 2 | ||
Par Amount Sold/Redeemed | $ 0 | $ 411 | ||
Amortized Cost | 0 | 265 | ||
Realized Gain (Loss) | 0 | (217) | ||
Proceeds from sale of investment securities available-for-sale | $ 0 | $ 48 |
INVESTMENTS IN UNCONSOLIDATED_3
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Schedule of Unconsolidated Entities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | ||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in unconsolidated entities | $ 1,548 | $ 1,548 | $ 1,548 | |||
Equity in Earnings (Losses) of Unconsolidated Entities | 26 | $ 93 | $ 52 | $ (177) | ||
Pelium Capital | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity in Earnings (Losses) of Unconsolidated Entities | [1] | 75 | (230) | |||
RCM Global LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity in Earnings (Losses) of Unconsolidated Entities | (6) | 7 | ||||
Investments in Unconsolidated Entities | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity in Earnings (Losses) of Unconsolidated Entities | 69 | (223) | ||||
Investment in RCT I and II | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage in VIE | [2] | 3.00% | ||||
Investments in unconsolidated entities | [2] | 1,548 | $ 1,548 | $ 1,548 | ||
Equity in Earnings (Losses) of Unconsolidated Entities | [2] | $ 26 | $ 24 | $ 52 | $ 46 | |
[1] | During the six months ended June 30, 2018, the Company received distributions of $10.2 million on its investment in Pelium Capital Partners, L.P. ("Pelium Capital"). | |||||
[2] | During the three and six months ended June 30, 2019 and 2018, dividends from the investments in RCT I and RCT II's common shares are recorded in other revenue. See Note 9 for the disclosures on the associated unsecured junior subordinated debentures. |
INVESTMENTS IN UNCONSOLIDATED_4
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Schedule of Unconsolidated Entities) (Parenthetical) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Schedule of Equity Method Investments [Line Items] | |
Return on investment from investments in unconsolidated entities | $ (10,172) |
Pelium Capital | |
Schedule of Equity Method Investments [Line Items] | |
Return on investment from investments in unconsolidated entities | $ 10,200 |
BORROWINGS (Schedule of Debt) (
BORROWINGS (Schedule of Debt) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | |
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 1,961,217 | $ 1,579,170 | |
Unamortized Issuance Costs and Discounts | 25,952 | 24,947 | |
Outstanding Borrowings | $ 1,935,265 | $ 1,554,223 | |
Weighted Average Borrowing Rate | 4.02% | 4.21% | |
Weighted Average Remaining Maturity | 9 years 2 months 12 days | 6 years 10 months 24 days | |
Value of Collateral | $ 2,297,078 | $ 1,953,119 | |
Accrued interest costs | 5,209 | 4,224 | |
RCC 2017-CRE5 Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 109,250 | ||
Unamortized Issuance Costs and Discounts | 1,121 | ||
Outstanding Borrowings | $ 108,129 | ||
Weighted Average Borrowing Rate | 3.76% | ||
Weighted Average Remaining Maturity | 15 years 7 months 6 days | ||
Value of Collateral | $ 228,031 | ||
XAN 2018-RSO6 Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 397,280 | 397,452 | |
Unamortized Issuance Costs and Discounts | 3,629 | 4,536 | |
Outstanding Borrowings | $ 393,651 | $ 392,916 | |
Weighted Average Borrowing Rate | 3.49% | 3.55% | |
Weighted Average Remaining Maturity | 16 years | 16 years 6 months | |
Value of Collateral | $ 514,052 | $ 514,225 | |
XAN 2019-RSO7 Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 575,811 | ||
Unamortized Issuance Costs and Discounts | 6,079 | ||
Outstanding Borrowings | $ 569,732 | ||
Weighted Average Borrowing Rate | 3.69% | ||
Weighted Average Remaining Maturity | 16 years 9 months 18 days | ||
Value of Collateral | $ 687,168 | ||
Unsecured Junior Subordinated Debentures | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 51,548 | 51,548 | |
Unamortized Issuance Costs and Discounts | 0 | 0 | |
Outstanding Borrowings | $ 51,548 | $ 51,548 | |
Weighted Average Borrowing Rate | 6.54% | 6.61% | |
Weighted Average Remaining Maturity | 17 years 2 months 12 days | 17 years 8 months 12 days | |
Value of Collateral | $ 0 | $ 0 | |
4.50% Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 143,750 | 143,750 | |
Unamortized Issuance Costs and Discounts | 11,866 | 13,504 | |
Outstanding Borrowings | $ 131,884 | $ 130,246 | |
Weighted Average Borrowing Rate | 4.50% | 4.50% | |
Weighted Average Remaining Maturity | 3 years 1 month 6 days | 3 years 7 months 6 days | |
Value of Collateral | $ 0 | $ 0 | |
Interest rate, stated percentage | 4.50% | 4.50% | 4.50% |
8.00% Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 21,182 | $ 21,182 | |
Unamortized Issuance Costs and Discounts | 124 | 238 | |
Outstanding Borrowings | $ 21,058 | $ 20,944 | |
Weighted Average Borrowing Rate | 8.00% | 8.00% | |
Weighted Average Remaining Maturity | 199 days | 1 year | |
Value of Collateral | $ 0 | $ 0 | |
Interest rate, stated percentage | 8.00% | 8.00% | 8.00% |
CRE - Term Repurchase Facilities | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 401,147 | $ 512,716 | |
Unamortized Issuance Costs and Discounts | 4,055 | 5,269 | |
Outstanding Borrowings | $ 397,092 | $ 507,447 | |
Weighted Average Borrowing Rate | 4.45% | 4.47% | |
Weighted Average Remaining Maturity | 1 year 3 months 18 days | 2 years | |
Value of Collateral | $ 544,674 | $ 696,215 | |
Accrued interest costs | 605 | 911 | |
Trust Certificates - Term Repurchase Facility | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 42,102 | 47,451 | |
Unamortized Issuance Costs and Discounts | 199 | 279 | |
Outstanding Borrowings | $ 41,903 | $ 47,172 | |
Weighted Average Borrowing Rate | 6.34% | 6.41% | |
Weighted Average Remaining Maturity | 1 year 2 months 12 days | 1 year 8 months 12 days | |
Value of Collateral | $ 113,453 | $ 118,780 | |
Accrued interest costs | 96 | 118 | |
CMBS - Short Term Repurchase Agreements | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 328,397 | 295,821 | |
Unamortized Issuance Costs and Discounts | 0 | 0 | |
Outstanding Borrowings | $ 328,397 | $ 295,821 | |
Weighted Average Borrowing Rate | 3.57% | 3.63% | |
Weighted Average Remaining Maturity | 20 days | 19 days | |
Value of Collateral | $ 437,731 | $ 395,868 | |
Accrued interest costs | $ 398 | $ 773 |
BORROWINGS (Securitization) (De
BORROWINGS (Securitization) (Details) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
RCC 2017-CRE5 Senior Notes | |
Debt Instrument [Line Items] | |
Closing Date | 2017-07 |
Maturity Date | 2034-07 |
End of Designated Principal Reinvestment Period | 2020-07 |
Total Note Paydowns Received from Closing Date through June 30, 2019 | $ 251,449 |
XAN 2018-RSO6 Senior Notes | |
Debt Instrument [Line Items] | |
Closing Date | 2018-06 |
Maturity Date | 2035-06 |
End of Designated Principal Reinvestment Period | 2020-12 |
Total Note Paydowns Received from Closing Date through June 30, 2019 | $ 172 |
XAN 2019-RSO7 Senior Notes | |
Debt Instrument [Line Items] | |
Closing Date | 2019-04 |
Maturity Date | 2036-04 |
End of Designated Principal Reinvestment Period | 2022-04 |
Total Note Paydowns Received from Closing Date through June 30, 2019 | $ 0 |
BORROWINGS (RCC 2017-CRE5) (Det
BORROWINGS (RCC 2017-CRE5) (Details) $ in Millions | Jul. 30, 2017USD ($) |
RCC 2017-CRE5 Senior Notes | |
Debt Instrument [Line Items] | |
Closing transaction amount | $ 376.7 |
BORROWINGS (XAN 2019-RSO7) (Det
BORROWINGS (XAN 2019-RSO7) (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Apr. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 767,392 | $ 850,440 | |
XAN 2019-RSO7 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Closing transaction amount | $ 687,200 | ||
Face amount of debt issued | 585,800 | ||
Maturity Date | 2036-04 | ||
XAN 2019-RSO7 | Senior Notes | Debt Instrument, Class A | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 390,000 | ||
XAN 2019-RSO7 | Senior Notes | Debt Instrument, Class A | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
XAN 2019-RSO7 | Senior Notes | Debt Instrument, Class A | London Interbank Offered Rate (LIBOR) | April 2024 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
XAN 2019-RSO7 | Senior Notes | Debt Instrument, Class A-S | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 70,400 | ||
XAN 2019-RSO7 | Senior Notes | Debt Instrument, Class A-S | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
XAN 2019-RSO7 | Senior Notes | Debt Instrument, Class A-S | London Interbank Offered Rate (LIBOR) | April 2024 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
XAN 2019-RSO7 | Senior Notes | Debt Instrument, Class B | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 33,500 | ||
XAN 2019-RSO7 | Senior Notes | Debt Instrument, Class B | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.70% | ||
XAN 2019-RSO7 | Senior Notes | Debt Instrument, Class B | London Interbank Offered Rate (LIBOR) | May 2024 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.20% | ||
XAN 2019-RSO7 | Senior Notes | Debt Instrument, Class C | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 42,900 | ||
XAN 2019-RSO7 | Senior Notes | Debt Instrument, Class C | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.05% | ||
XAN 2019-RSO7 | Senior Notes | Debt Instrument, Class C | London Interbank Offered Rate (LIBOR) | June 2024 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.55% | ||
XAN 2019-RSO7 | Senior Notes | Debt Instrument, Class D | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 49,000 | ||
XAN 2019-RSO7 | Senior Notes | Debt Instrument, Class D | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.70% | ||
XAN 2019-RSO7 | Senior Notes | Debt Instrument, Class D | London Interbank Offered Rate (LIBOR) | July 2024 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.20% | ||
XAN 2019-RSO7 | Senior Notes | Subsidiary of RCC Real Estate | |||
Debt Instrument [Line Items] | |||
Ownership interest amount in the principal balance of outstanding debt | $ 10,000 | ||
XAN 2019-RSO7 | Senior Notes | Class D Notes | Subsidiary of RCC Real Estate | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 20.00% | ||
XAN 2019-RSO7 | Senior Notes | Class E Notes | Subsidiary of RCC Real Estate | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | ||
XAN 2019-RSO7 | Senior Notes | Class F Notes | Subsidiary of RCC Real Estate | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | ||
XAN 2019-RSO7 | Senior Notes | Preferred Stock | Subsidiary of RCC Real Estate | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding preferred shares | 100.00% |
BORROWINGS (Repurchase and Cred
BORROWINGS (Repurchase and Credit Facilities) (Details) | Jun. 30, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan |
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 767,392,000 | $ 850,440,000 |
Value of Collateral | $ 1,095,858,000 | $ 1,210,863,000 |
Weighted Average Interest Rate | 4.02% | 4.21% |
Unamortized issuance costs and discounts | $ 25,952,000 | $ 24,947,000 |
RBC Capital Markets, LLC | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 216,167,000 | 246,476,000 |
Value of Collateral | $ 276,512,000 | $ 313,644,000 |
Number of Positions as Collateral | Loan | 30 | 33 |
Weighted Average Interest Rate | 3.55% | 3.64% |
JP Morgan Securities LLC | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 89,560,000 | $ 42,040,000 |
Value of Collateral | $ 118,345,000 | $ 73,066,000 |
Number of Positions as Collateral | Loan | 18 | 13 |
Weighted Average Interest Rate | 3.57% | 3.57% |
Deutsche Bank Securities Inc. | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 22,670,000 | $ 7,305,000 |
Value of Collateral | $ 42,874,000 | $ 9,158,000 |
Number of Positions as Collateral | Loan | 5 | 5 |
Weighted Average Interest Rate | 3.75% | 3.98% |
CRE - Term Repurchase Facilities | Wells Fargo Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 247,517,000 | $ 154,478,000 |
Value of Collateral | $ 335,812,000 | $ 226,530,000 |
Number of Positions as Collateral | Loan | 32 | 13 |
Weighted Average Interest Rate | 4.37% | 4.33% |
Unamortized issuance costs and discounts | $ 1,100,000 | $ 1,600,000 |
CRE - Term Repurchase Facilities | Morgan Stanley Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 37,137,000 | 37,113,000 |
Value of Collateral | $ 62,665,000 | $ 62,457,000 |
Number of Positions as Collateral | Loan | 3 | 3 |
Weighted Average Interest Rate | 5.03% | 5.09% |
Unamortized issuance costs and discounts | $ 137,000 | $ 167,000 |
CRE - Term Repurchase Facilities | Barclays Bank PLC | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 65,628,000 | 240,416,000 |
Value of Collateral | $ 84,209,000 | $ 308,389,000 |
Number of Positions as Collateral | Loan | 8 | 11 |
Weighted Average Interest Rate | 4.59% | 4.51% |
Unamortized issuance costs and discounts | $ 1,100,000 | $ 1,500,000 |
CRE - Term Repurchase Facilities | JP Morgan Chase Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 46,810,000 | 75,440,000 |
Value of Collateral | $ 61,988,000 | $ 98,839,000 |
Number of Positions as Collateral | Loan | 3 | 5 |
Weighted Average Interest Rate | 4.22% | 4.30% |
Unamortized issuance costs and discounts | $ 1,600,000 | $ 2,000,000 |
Trust Certificates - Term Repurchase Facility | RSO Repo SPE Trust 2017 | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 41,903,000 | 47,172,000 |
Value of Collateral | $ 113,453,000 | $ 118,780,000 |
Number of Positions as Collateral | Loan | 2 | 2 |
Weighted Average Interest Rate | 6.34% | 6.41% |
Unamortized issuance costs and discounts | $ 146,000 | $ 204,000 |
BORROWINGS (Amount at Risk Unde
BORROWINGS (Amount at Risk Under Repurchase Facilities) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 9 years 2 months 12 days | 6 years 10 months 24 days |
Weighted Average Interest Rate | 4.02% | 4.21% |
RBC Capital Markets, LLC | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 3.55% | 3.64% |
JP Morgan Securities LLC | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 3.57% | 3.57% |
Deutsche Bank Securities Inc. | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 3.75% | 3.98% |
CRE - Term Repurchase Facilities | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 1 year 3 months 18 days | 2 years |
Weighted Average Interest Rate | 4.45% | 4.47% |
Trust Certificates - Term Repurchase Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 1 year 2 months 12 days | 1 year 8 months 12 days |
Weighted Average Interest Rate | 6.34% | 6.41% |
Linked and Non-linked Transactions | CMBS - Short-Term Repurchase Agreements | RBC Capital Markets, LLC | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 60,817 | |
Weighted Average Remaining Maturity | 20 days | |
Weighted Average Interest Rate | 3.55% | |
Linked and Non-linked Transactions | CMBS - Short-Term Repurchase Agreements | JP Morgan Securities LLC | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 29,118 | |
Weighted Average Remaining Maturity | 12 days | |
Weighted Average Interest Rate | 3.57% | |
Linked and Non-linked Transactions | CMBS - Short-Term Repurchase Agreements | Deutsche Bank Securities Inc. | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 20,295 | |
Weighted Average Remaining Maturity | 49 days | |
Weighted Average Interest Rate | 3.75% | |
Linked and Non-linked Transactions | CRE - Term Repurchase Facilities | Wells Fargo Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 88,544 | |
Weighted Average Remaining Maturity | 1 year 1 month 6 days | |
Weighted Average Interest Rate | 4.37% | |
Linked and Non-linked Transactions | CRE - Term Repurchase Facilities | Morgan Stanley Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 25,690 | |
Weighted Average Remaining Maturity | 72 days | |
Weighted Average Interest Rate | 5.03% | |
Linked and Non-linked Transactions | CRE - Term Repurchase Facilities | Barclays Bank PLC | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 17,739 | |
Weighted Average Remaining Maturity | 1 year 9 months 18 days | |
Weighted Average Interest Rate | 4.59% | |
Linked and Non-linked Transactions | CRE - Term Repurchase Facilities | JPMorgan Chase Bank, N. A. | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 13,631 | |
Weighted Average Remaining Maturity | 2 years 3 months 18 days | |
Weighted Average Interest Rate | 4.22% | |
Linked and Non-linked Transactions | Trust Certificates - Term Repurchase Facility | RSO Repo SPE Trust 2017 | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 71,440 | |
Weighted Average Remaining Maturity | 1 year 2 months 12 days | |
Weighted Average Interest Rate | 6.34% |
BORROWINGS (Contractual Commitm
BORROWINGS (Contractual Commitments) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Debt Instrument [Line Items] | |
Total | $ 1,961,217 |
2019 | 365,671 |
2020 | 311,932 |
2021 | 115,225 |
2022 | 143,750 |
2023 and Thereafter | 1,024,639 |
CRE securitizations | |
Debt Instrument [Line Items] | |
Total | 973,091 |
2019 | 0 |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 and Thereafter | 973,091 |
Unsecured Junior Subordinated Debentures | |
Debt Instrument [Line Items] | |
Total | 51,548 |
2019 | 0 |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 and Thereafter | 51,548 |
Convertible Debt | 4.50% Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Total | 143,750 |
2019 | 0 |
2020 | 0 |
2021 | 0 |
2022 | 143,750 |
2023 and Thereafter | 0 |
Convertible Debt | 8.00% Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Total | 21,182 |
2019 | 0 |
2020 | 21,182 |
2021 | 0 |
2022 | 0 |
2023 and Thereafter | 0 |
Repurchase and credit facilities | |
Debt Instrument [Line Items] | |
Total | 771,646 |
2019 | 365,671 |
2020 | 290,750 |
2021 | 115,225 |
2022 | 0 |
2023 and Thereafter | $ 0 |
SHARE ISSUANCE AND REPURCHASE (
SHARE ISSUANCE AND REPURCHASE (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Mar. 31, 2016 | Aug. 31, 2015 | |
Class Of Stock [Line Items] | ||||||
Preferred stock redemption charge | $ 7,482,000 | |||||
Shares repurchased during period, value | $ 0 | $ 0 | ||||
Equity and Debt Securities Repurchase Program | ||||||
Class Of Stock [Line Items] | ||||||
Stock repurchase program, authorized amount (up to) | $ 50,000,000 | $ 50,000,000 | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 44,900,000 | |||||
8.25% Series B Preferred Stock | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock, coupon authorized | 8.25% | |||||
Redemption price per share (in dollars per share) | $ 25 | |||||
Stock redeemed during period, value | $ 115,300,000 | |||||
8.625% Series C Preferred Stock | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock, coupon authorized | 8.625% | 8.625% | 8.625% | |||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | $ 25 | |||
Preferred stock, shares outstanding (in shares) | 4,800,000 | 4,800,000 | ||||
Sale of stock, weighted average price per share (in dollars per share) | $ 25 | |||||
8.625% Series C Preferred Stock | London Interbank Offered Rate (LIBOR) | ||||||
Class Of Stock [Line Items] | ||||||
Dividend payment rate, variable, basis spread on variable rate | 5.927% |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019USD ($)shares | May 31, 2014shares | Jun. 30, 2019USD ($)shares | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Directorshares | Jun. 30, 2018USD ($)Directorshares | Dec. 31, 2018USD ($) | |
Manager pursuant to the Management Agreement | Exantas Capital Corp | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Cash awards, percentage (up to) | 75.00% | ||||||
Common stock awards, percentage (at least) | 25.00% | ||||||
Incentive management fee pursuant to the management agreement | $ 165,000,000 | $ 0 | $ 165,000,000 | $ 0 | |||
Incentive management fee payable in cash pursuant to the management agreement | 124,000,000 | 124,000,000 | |||||
Manager pursuant to the Management Agreement | Exantas Capital Corp | Common Stock | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Incentive management fee payable in equity pursuant to the management agreement | $ 41,000,000 | $ 41,000,000 | |||||
Shares issued pursuant to the management agreement (in shares) | shares | 3,615 | 3,615 | |||||
Stock Options | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Grants in period (in shares) | shares | 0 | 0 | |||||
Contractual term | 10 years | ||||||
Stock options expiration year | 2021 | ||||||
Non-Employees | Restricted Stock | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Estimated fair value of shares granted | $ 2,000,000 | $ 2,000,000 | |||||
Number of non employee directors granted shares | Director | 8 | 8 | |||||
Payment award, grant date fair value | $ 265,000 | $ 255,000 | |||||
Compensation cost not yet recognized | $ 2,100 | $ 2,100 | $ 2,100 | $ 1,100 | |||
Weighted average remaining contractual term | 2 years 2 months 12 days | 1 year 9 months 18 days | |||||
June 2019 Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of share options authorized for issue (in shares) | shares | 4,775,000 | 3,275,000 | 4,775,000 | 4,775,000 | |||
Share based compensation expiration period | 2029-06 | 2024-05 |
SHARE-BASED COMPENSATION (Commo
SHARE-BASED COMPENSATION (Common Stock Activity) (Details) - Restricted Stock | 6 Months Ended |
Jun. 30, 2019shares | |
January 22, 2019 | |
Restricted common stock transactions | |
Stock-based compensation (in shares) | 196,198 |
Vesting per Year | 33.00% |
February 1, 2019 | |
Restricted common stock transactions | |
Stock-based compensation (in shares) | 3,308 |
Vesting per Year | 100.00% |
March 8, 2019 | |
Restricted common stock transactions | |
Stock-based compensation (in shares) | 14,108 |
Vesting per Year | 100.00% |
June 1, 2019 | |
Restricted common stock transactions | |
Stock-based compensation (in shares) | 3,164 |
Vesting per Year | 100.00% |
June 8, 2019 | |
Restricted common stock transactions | |
Stock-based compensation (in shares) | 3,170 |
Vesting per Year | 100.00% |
June 19, 2019 | |
Restricted common stock transactions | |
Stock-based compensation (in shares) | 900 |
Vesting per Year | 100.00% |
Non-Employee Directors | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 30,234 |
Issued (shares) | 24,650 |
Vested (shares) | (27,032) |
Unvested shares, end of period (in shares) | 27,852 |
Non-Employees | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 386,628 |
Issued (shares) | 196,198 |
Vested (shares) | (175,454) |
Forfeited (shares) | (8,453) |
Unvested shares, end of period (in shares) | 398,919 |
Former Employees | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 5,809 |
Vested (shares) | (5,809) |
Manager and Non Employees | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 422,671 |
Issued (shares) | 220,848 |
Vested (shares) | (208,295) |
Forfeited (shares) | (8,453) |
Unvested shares, end of period (in shares) | 426,771 |
SHARE-BASED COMPENSATION (Statu
SHARE-BASED COMPENSATION (Status of Vested Stock Options) (Details) - Vested $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($)$ / sharesshares | |
Number of Options | |
Outstanding beginning of period (in shares) | shares | 10,000 |
Vested (in shares) | shares | 0 |
Exercised (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Expired (in shares) | shares | 0 |
Outstanding end of period (in shares) | shares | 10,000 |
Weighted Average Exercise Price | |
Outstanding beginning of period (in dollars per share) | $ / shares | $ 25.60 |
Vested (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited (USD per share) | $ / shares | 0 |
Expired (in shares) | $ / shares | 0 |
Outstanding end of period (in dollars per share) | $ / shares | $ 25.60 |
Weighted Average Remaining Contractual Term | 1 year 10 months 17 days |
Aggregate Intrinsic Value | $ | $ 0 |
SHARE-BASED COMPENSATION (Compo
SHARE-BASED COMPENSATION (Components of Equity Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total equity compensation expense | $ 412 | $ 659 | $ 1,095 | $ 1,626 |
Non-Employees | Restricted Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total equity compensation expense | 338 | 587 | 949 | 1,481 |
Non-Employee Directors | Restricted Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total equity compensation expense | $ 74 | $ 72 | $ 146 | $ 145 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||||
Net income from continuing operations | $ 9,003 | $ 9,189 | $ 17,173 | $ 9,052 | |
Net income allocated to preferred shares | (2,587) | (2,587) | (5,175) | (7,797) | |
Consideration paid in excess of carrying value of preferred shares | 0 | 0 | 0 | (7,482) | |
Net income (loss) from continuing operations allocable to common shares | 6,416 | 6,602 | 11,998 | (6,227) | |
Net loss from discontinued operations, net of tax | (112) | (450) | (149) | (203) | |
NET INCOME (LOSS) ALLOCABLE TO COMMON SHARES | $ 6,304 | $ 6,152 | $ 11,849 | $ (6,430) | |
Weighted average number of common shares outstanding: | |||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC (in shares) | 31,438,247 | 31,215,598 | 31,409,063 | 31,163,859 | |
Effect of dilutive securities - unvested restricted stock (in shares) | 217,933 | 186,412 | 184,983 | 0 | |
Weighted average number of common shares outstanding - diluted (in shares) | 31,656,180 | 31,402,010 | 31,594,046 | 31,163,859 | |
Net income (loss) per common share - basic: | |||||
Continuing operations | $ 0.20 | $ 0.21 | $ 0.38 | $ (0.20) | |
Discontinued operations | 0 | (0.01) | 0 | (0.01) | |
TOTAL NET INCOME (LOSS) PER COMMON SHARE - BASIC (in dollars per share) | 0.20 | 0.20 | 0.38 | (0.21) | |
Net income (loss) per common share - diluted: | |||||
Continuing operations (in dollars per share) | 0.20 | 0.21 | 0.38 | (0.20) | |
Discontinued operations (in dollars per share) | 0 | (0.01) | 0 | (0.01) | |
NET INCOME (LOSS) PER COMMON SHARE – DILUTED (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.38 | $ (0.21) | |
6%, 8% and 4.5% Convertible Senior Notes | |||||
Net income (loss) per common share - diluted: | |||||
Antidilutive securities excluded (in shares) | 12,618,770 | 14,885,296 | 12,618,770 | 14,885,296 | |
4.50% Convertible Senior Notes | |||||
Net income (loss) per common share - diluted: | |||||
Interest rate, stated percentage | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% |
Debt instrument, maturity year | 2022 | 2022 | 2022 | 2022 | |
8.00% Convertible Senior Notes | |||||
Net income (loss) per common share - diluted: | |||||
Interest rate, stated percentage | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% |
Debt instrument, maturity year | 2020 | 2020 | 2020 | 2020 | |
6.00% Convertible Senior Notes | |||||
Net income (loss) per common share - diluted: | |||||
Interest rate, stated percentage | 6.00% | 6.00% | |||
Debt instrument, maturity year | 2018 | 2018 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | $ 553,819 |
Ending balance | 557,952 |
Net Unrealized Gain (loss) on Derivatives | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | 563 |
Other comprehensive (loss) income before reclassifications | (4,390) |
Amounts reclassified from accumulated other comprehensive income | (68) |
Ending balance | (3,895) |
Net Unrealized (Loss) Gain on Investment Securities Available-for-Sale | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | (3,620) |
Other comprehensive (loss) income before reclassifications | 9,196 |
Amounts reclassified from accumulated other comprehensive income | (4) |
Ending balance | 5,572 |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | (3,057) |
Other comprehensive (loss) income before reclassifications | 4,806 |
Amounts reclassified from accumulated other comprehensive income | (72) |
Ending balance | $ 1,677 |
RELATED PARTY TRANSACTIONS (Rel
RELATED PARTY TRANSACTIONS (Relationship with C-III and Certain of its Subsidiaries) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||||
Base management fees paid by the Company | $ 2,251,000 | $ 2,812,000 | $ 4,334,000 | $ 5,625,000 | |
General and administrative | $ 2,495,000 | 2,547,000 | $ 5,072,000 | 5,607,000 | |
C3AM | Exantas Capital Corp | |||||
Related Party Transaction [Line Items] | |||||
Number of common shares of the Company owned by a related party (in shares) | 766,718 | 766,718 | |||
Ownership percentage in VIE | 2.40% | ||||
Manager pursuant to the Management Agreement | Exantas Capital Corp | |||||
Related Party Transaction [Line Items] | |||||
Base management fees paid by the Company | $ 2,100,000 | 2,800,000 | $ 4,200,000 | 5,600,000 | |
Incentive compensation payable in cash | 124,000 | ||||
Incentive compensation payable in common stock | 41,000,000 | ||||
Incentive compensation | 165,000,000 | 0 | 165,000,000 | 0 | |
Incentive compensation payable and Servicing fees payable | 165,000,000 | 165,000,000 | $ 0 | ||
Total indebtedness | 699,000 | 699,000 | 938,000 | ||
General and administrative | 1,100,000 | $ 1,900,000 | 2,100,000 | $ 2,800,000 | |
Resource America | Exantas Capital Corp | |||||
Related Party Transaction [Line Items] | |||||
Total indebtedness | $ 401,000 | $ 401,000 | $ 333,000 |
RELATED PARTY TRANSACTIONS (R_2
RELATED PARTY TRANSACTIONS (Relationship with Resource Real Estate, LLC) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Jul. 31, 2017 | Aug. 31, 2015 | Feb. 28, 2015 | Jul. 30, 2014 | |
Related Party Transaction [Line Items] | |||||||||||
Other revenue | $ 26,000 | $ 152,000 | $ 52,000 | $ 57,000 | |||||||
Resource Capital Corp. 2014-CRE2, Ltd. | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Closing transaction amount | $ 353,900,000 | ||||||||||
Resource Capital Corp. 2015-CRE3, Ltd. | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Closing transaction amount | $ 346,200,000 | ||||||||||
Resource Capital Corp. 2015-CRE4, Ltd. | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Closing transaction amount | $ 312,900,000 | ||||||||||
RCC 2017-CRE5 | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Closing transaction amount | $ 376,700,000 | ||||||||||
Resource Real Estate | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Other revenue | $ 0 | $ 0 | 0 | $ 0 | |||||||
Resource Real Estate | Commercial Real Estate Debt Investments | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Related party transaction, due from related party | $ 0 | $ 0 | $ 26,000 |
RELATED PARTY TRANSACTIONS (R_3
RELATED PARTY TRANSACTIONS (Relationship with C3AM) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
May 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Apr. 30, 2019 | Dec. 31, 2018 | Jul. 31, 2017 | |
Related Party Transaction [Line Items] | ||||||||
Exit fee earn | $ 48,000 | |||||||
RCC 2017-CRE5 | ||||||||
Related Party Transaction [Line Items] | ||||||||
Closing transaction amount | $ 376,700,000 | |||||||
C-III Commercial Mortgage LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Aggregate purchase price of loan acquired | $ 197,600,000 | |||||||
Deferred origination fee and exit fee excess percentage on outstanding principal | 0.50% | |||||||
Exit fee earn | $ 0 | $ 0 | ||||||
Outstanding payables | 0 | 0 | ||||||
C3AM | XAN 2018-RSO6 Senior Notes | Asset Management Agreement | ||||||||
Related Party Transaction [Line Items] | ||||||||
Closing transaction amount | $ 514,200,000 | $ 514,200,000 | ||||||
C3AM | XAN 2019-RSO7 Senior Notes | Asset Management Agreement | ||||||||
Related Party Transaction [Line Items] | ||||||||
Closing transaction amount | $ 687,200 | |||||||
C3AM | RCC 2017-CRE5 | Asset Management Agreement | ||||||||
Related Party Transaction [Line Items] | ||||||||
Servicing fees earned | 170,000 | 67,000 | 261,000 | 102,000 | ||||
Special servicing fees earned | 0 | $ 0 | 0 | $ 0 | ||||
Incentive compensation payable and Servicing fees payable | $ 47,000 | $ 47,000 | $ 26,000 |
DISTRIBUTIONS (Details)
DISTRIBUTIONS (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2018 | |
Distributions [Abstract] | |||
Dividend per share (in dollars per share) | $ 0.225 | $ 0.10 | |
REIT required taxable income distribution, percentage (at least) | 90.00% | ||
REIT taxable income distribution required for exempt federal income taxes, percentage | 100.00% |
DISTRIBUTIONS (Dividends Declar
DISTRIBUTIONS (Dividends Declared) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 26, 2018 | |
Class Of Stock [Line Items] | |||||||
Dividend Per Share | $ 0.225 | $ 0.10 | |||||
Common Stock | |||||||
Class Of Stock [Line Items] | |||||||
Date Paid | Jul. 26, 2019 | Apr. 26, 2019 | Jan. 25, 2019 | Oct. 26, 2018 | Jul. 27, 2018 | Apr. 27, 2018 | |
Total Dividend Paid | $ 7,172 | $ 6,373 | $ 5,540 | $ 4,749 | $ 3,165 | $ 1,584 | |
Dividend Per Share | $ 0.225 | $ 0.20 | $ 0.175 | $ 0.15 | $ 0.10 | $ 0.05 | |
Series B Preferred Stock | |||||||
Class Of Stock [Line Items] | |||||||
Date Paid | Mar. 26, 2018 | ||||||
Total Dividend Paid | $ 1,480 | ||||||
Dividend Per Share | $ 0.320830 | ||||||
Series C Preferred Stock | |||||||
Class Of Stock [Line Items] | |||||||
Date Paid | Jul. 30, 2019 | Apr. 30, 2019 | Jan. 30, 2019 | Oct. 30, 2018 | Jul. 30, 2018 | Apr. 30, 2018 | |
Total Dividend Paid | $ 2,587 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | |
Dividend Per Share | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 | $ 0.539063 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Investment securities available-for-sale | $ 445,664 | $ 418,998 |
Derivative assets at fair value | 985 | |
Liabilities: | ||
Derivative assets at fair value | 4,470 | 1,043 |
Recurring Basis | ||
Assets: | ||
Investment securities available-for-sale | 445,664 | 418,998 |
Derivative assets at fair value | 985 | |
Total assets at fair value | 445,664 | 419,983 |
Liabilities: | ||
Derivative assets at fair value | (4,470) | 1,043 |
Total liabilities at fair value | (4,470) | 1,043 |
Recurring Basis | Level 1 | ||
Assets: | ||
Investment securities available-for-sale | 0 | 0 |
Derivative assets at fair value | 0 | |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Derivative assets at fair value | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Recurring Basis | Level 2 | ||
Assets: | ||
Investment securities available-for-sale | 0 | 0 |
Derivative assets at fair value | 985 | |
Total assets at fair value | 0 | 985 |
Liabilities: | ||
Derivative assets at fair value | (4,470) | 1,043 |
Total liabilities at fair value | (4,470) | 1,043 |
Recurring Basis | Level 3 | ||
Assets: | ||
Investment securities available-for-sale | 445,664 | 418,998 |
Derivative assets at fair value | 0 | |
Total assets at fair value | 445,664 | 418,998 |
Liabilities: | ||
Derivative assets at fair value | 0 | 0 |
Total liabilities at fair value | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets Measured on Recurring Basis) (Details) - Level 3 - Recurring Basis - CMBS $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | |
Balance, January 1, 2019 | $ 418,998 |
Included in earnings | 1,415 |
Purchases | 40,594 |
Sale | (638) |
Paydowns | (23,897) |
Included in other comprehensive income | 9,192 |
Balance, June 30, 2019 | $ 445,664 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2019 | Dec. 31, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Net realized and unrealized loss on investment securities available-for-sale and loans and derivatives | $ (4,000) | $ (932,000) | $ (4,000) | $ (290,000) | ||
Mezzanine loan | Expected Future Cash Flows | Measurement Input, Discount Rate | VIE, Not Primary Beneficiary | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 0.1000 | 0.1000 | ||||
Preferred equity investments | Expected Future Cash Flows | Measurement Input, Discount Rate | VIE, Not Primary Beneficiary | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 0.1154 | 0.1154 | 0.1208 | |||
Unsecured Junior Subordinated Debentures | Expected Future Cash Flows | Measurement Input, Discount Rate | VIE, Not Primary Beneficiary | Interest in RCT I | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 0.0899 | 0.0899 | ||||
Unsecured Junior Subordinated Debentures | Expected Future Cash Flows | Measurement Input, Discount Rate | VIE, Not Primary Beneficiary | Interest in RCT II | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 0.0899 | 0.0899 | ||||
8.00% Convertible Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Interest rate, stated percentage | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | |
8.00% Convertible Senior Notes | Measurement Input, Discount Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 0.0492 | 0.0492 | ||||
4.50% Convertible Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Interest rate, stated percentage | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | |
4.50% Convertible Senior Notes | Measurement Input, Discount Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 0.0743 | 0.0743 | ||||
Minimum | Level 3 | Loans Pledged as Collateral | Expected Future Cash Flows | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans receivable, interest rate, stated percentage | 5.13% | 5.13% | 5.08% | |||
Maximum | Level 3 | Loans Pledged as Collateral | Expected Future Cash Flows | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans receivable, interest rate, stated percentage | 8.68% | 8.68% | 8.63% | |||
Commercial Real Estate Loans | Legacy CRE loans held for sale | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Net realized and unrealized loss on investment securities available-for-sale and loans and derivatives | $ 1,300,000 | $ 0 | $ 1,400,000 | $ 4,700,000 | ||
Loss on fair value charge | 1,300,000 | |||||
Provision for loan and lease losses, net | 102,000 | $ 172,000 | ||||
Financing receivable, average value | $ 16,100,000 | $ 16,100,000 | $ 17,000,000 | |||
Commercial Real Estate Loans | Legacy CRE loans held for sale | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Terminal capitalization rate | 8.50% | 8.50% | ||||
Commercial Real Estate Loans | Legacy CRE loans held for sale | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Terminal capitalization rate | 10.00% | 10.00% |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans and investment | $ 1,948,492 | $ 1,551,967 |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Legacy CRE loans held for sale | 0 | 0 |
Senior notes in CRE securitizations | 0 | 0 |
Junior subordinated notes | 0 | 0 |
Convertible notes | 0 | 0 |
Repurchase agreements | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | Whole loans held for investment | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans and investment | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans and investment | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | Preferred equity investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans and investment | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Legacy CRE loans held for sale | 0 | 0 |
Senior notes in CRE securitizations | 0 | 0 |
Junior subordinated notes | 0 | 0 |
Convertible notes | 0 | 0 |
Repurchase agreements | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Whole loans held for investment | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans and investment | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans and investment | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Preferred equity investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans and investment | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Legacy CRE loans held for sale | 16,082 | 17,000 |
Senior notes in CRE securitizations | 976,360 | 498,897 |
Junior subordinated notes | 28,050 | 27,800 |
Convertible notes | 164,932 | 164,932 |
Repurchase agreements | 771,593 | 855,783 |
Significant Unobservable Inputs (Level 3) | Whole loans held for investment | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans and investment | 1,928,828 | 1,538,759 |
Significant Unobservable Inputs (Level 3) | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans and investment | 4,700 | 4,700 |
Significant Unobservable Inputs (Level 3) | Preferred equity investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans and investment | 25,565 | 19,718 |
Carrying Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Legacy CRE loans held for sale | 16,082 | 17,000 |
Senior notes in CRE securitizations | 963,383 | 501,045 |
Junior subordinated notes | 51,548 | 51,548 |
Convertible notes | 152,942 | 151,190 |
Repurchase agreements | 767,392 | 850,440 |
Carrying Value | Whole loans held for investment | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans and investment | 1,918,382 | 1,527,712 |
Carrying Value | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans and investment | 4,700 | 4,700 |
Carrying Value | Preferred equity investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans and investment | 25,410 | 19,555 |
Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Legacy CRE loans held for sale | 16,082 | 17,000 |
Senior notes in CRE securitizations | 976,360 | 498,897 |
Junior subordinated notes | 28,050 | 27,800 |
Convertible notes | 164,932 | 164,932 |
Repurchase agreements | 771,593 | 855,783 |
Fair Value | Whole loans held for investment | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans and investment | 1,928,828 | 1,538,759 |
Fair Value | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans and investment | 4,700 | 4,700 |
Fair Value | Preferred equity investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans and investment | $ 25,565 | $ 19,718 |
MARKET RISK AND DERIVATIVE IN_3
MARKET RISK AND DERIVATIVE INSTRUMENTS (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($)derivative | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)derivative | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)derivative | |
Derivatives, Fair Value [Line Items] | |||||
Fair Value | $ 0 | $ 0 | $ 985,000 | ||
Gross Amounts of Recognized Liabilities | 4,470,000 | 4,470,000 | $ 1,043,000 | ||
Unrealized gains on derivatives, net | $ (2,697,000) | $ 455,000 | $ (4,390,000) | $ 1,604,000 | |
Interest rate swaps | |||||
Derivatives, Fair Value [Line Items] | |||||
Number of instruments held | derivative | 18 | 18 | 16 | ||
Average fixed interest rate | 2.50% | 2.50% | 2.54% | ||
Notional amount | $ 87,600,000 | $ 87,600,000 | $ 81,100,000 | ||
Fair Value | 0 | 0 | 985,000 | ||
Gross Amounts of Recognized Liabilities | 4,500,000 | 4,500,000 | 1,000,000 | ||
Gain (loss) on derivatives | (3,900,000) | 563,000 | |||
Interest rate swaps | Derivatives, at fair value | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair Value | 0 | 0 | 985,000 | ||
Gross Amounts of Recognized Liabilities | 4,470,000 | 4,470,000 | 1,043,000 | ||
Terminated interest rate swap | |||||
Derivatives, Fair Value [Line Items] | |||||
Unrealized gains on derivatives, net | 576,000 | $ 621,000 | |||
Number of hedges terminated | derivative | 2 | ||||
Interest expense to fully amortize | $ 23,000 | $ 45,000 |
MARKET RISK AND DERIVATIVE IN_4
MARKET RISK AND DERIVATIVE INSTRUMENTS (Fair Value and Classification of Derivatives) (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Liability Derivatives | |||
Fair Value | $ 4,470,000 | $ 1,043,000 | |
Asset Derivatives | |||
Fair Value | 0 | 985,000 | |
Interest rate swaps | |||
Liability Derivatives | |||
Fair Value | 4,500,000 | 1,000,000 | |
Asset Derivatives | |||
Fair Value | 0 | 985,000 | |
Interest rate swaps | Interest expense | |||
Asset Derivatives | |||
Realized and Unrealized Gain (Loss) | 20,000 | $ (80,000) | |
Interest rate swaps | Derivatives, at fair value | |||
Liability Derivatives | |||
Notional Amount | 87,551,000 | 49,326,000 | |
Fair Value | 4,470,000 | 1,043,000 | |
Asset Derivatives | |||
Notional Amount | 31,725,000 | ||
Fair Value | 0 | 985,000 | |
Interest rate swaps | Accumulated Other Comprehensive Income (Loss) | |||
Liability Derivatives | |||
Notional Amount | 87,551,000 | 81,051,000 | |
Fair Value | $ (3,895,000) | $ 563,000 |
OFFSETTING OF FINANCIAL ASSET_3
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Offsetting Derivative Assets | ||
Gross Amounts of Recognized Assets | $ 0 | $ 985,000 |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | |
Net Amounts of Assets Included on the Consolidated Balance Sheets | 985,000 | |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Financial Instruments | 0 | |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | |
Net Amount | 985,000 | |
Offsetting Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 4,470,000 | 1,043,000 |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included on the Consolidated Balance Sheets | 4,470,000 | 1,043,000 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Financial Instruments | 0 | 0 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Cash Collateral Pledged | 4,470,000 | 1,043,000 |
Net Amount | 0 | 0 |
Repurchase agreements and term facilities | ||
Gross Amounts of Recognized Liabilities | 767,392,000 | 850,440,000 |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included on the Consolidated Balance Sheets | 767,392,000 | 850,440,000 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Financial Instruments | 767,392,000 | 850,440,000 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | 0 |
Net Amount | 0 | 0 |
Total-Liabilities | ||
Gross Amounts of Recognized Liabilities | 771,862,000 | 851,483,000 |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included on the Consolidated Balance Sheets | 771,862,000 | 851,483,000 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Financial Instruments | 767,392,000 | 850,440,000 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Cash Collateral Pledged | 4,470,000 | 1,043,000 |
Net Amount | 0 | 0 |
Fair value of securities pledged against repurchase agreements | 1,100,000,000 | 1,200,000,000 |
Interest rate swaps | ||
Offsetting Derivative Assets | ||
Gross Amounts of Recognized Assets | 0 | 985,000 |
Offsetting Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 4,500,000 | 1,000,000 |
Excess cash collateral deposits related to interest rate swap contracts | $ 3,400 | $ 1,300 |
OFFSETTING OF FINANCIAL ASSET_4
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Additional Information) (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Offsetting [Abstract] | ||
Fair value of derivative asset | $ 0 | $ 985,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | Feb. 05, 2018USD ($)holdershares | Apr. 30, 2018USD ($) | May 31, 2017USD ($)Loan | Jul. 31, 2019claim | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)claim | Jun. 30, 2018USD ($) | Aug. 31, 2017claim | Dec. 31, 2018USD ($) |
Commercial Real Estate Loans | Whole loans | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loans held for investment, unfunded loan commitments | $ 119,700,000 | $ 119,700,000 | $ 108,100,000 | |||||||
Commercial Real Estate Loans | Preferred equity investments | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loans held for investment, unfunded loan commitments | 3,200,000 | 3,200,000 | 0 | |||||||
Indemnification Agreement | Pearlmark Mezz | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Outstanding litigation demands | 703,000 | 703,000 | 703,000 | |||||||
Number of instruments held | Loan | 1 | |||||||||
Reserve for probable losses | 0 | $ 0 | 0 | $ 0 | ||||||
Indemnification Agreement | Pearlmark Mezz | Maximum | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, estimate of possible loss | $ 4,300,000 | |||||||||
PCM | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Outstanding demands to indemnify purchaser of residential mortgage loans | 3,300,000 | 3,300,000 | 3,300,000 | |||||||
Open Litigation Matters | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Payments of legal costs in excess of insurance coverage | $ 2,000,000 | |||||||||
Estimated litigation liability | 0 | 0 | 0 | |||||||
Open Litigation Matters | Indemnification Agreement | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Estimated litigation liability | 1,700,000 | 1,700,000 | 1,700,000 | |||||||
Open Litigation Matters | Reaves, Caito, Simpson, and Heckel Complaints | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, new claims filed, number | claim | 6 | |||||||||
Open Litigation Matters | Reaves, Caito, Simpson, and Heckel Complaints | Subsequent Event | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, claims dismissed, number | claim | 4 | |||||||||
Open Litigation Matters | PCM | Indemnification Agreement | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Outstanding litigation demands | 0 | $ 0 | $ 0 | |||||||
Open Litigation Matters | Levin v. Resource Capital Corp. | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of shareholders who opted out of settlement | holder | 1 | |||||||||
Number of shares held by individual shareholder who opted out of settlement (in shares) | shares | 500 | |||||||||
Settled Litigation Matters, Including Pending Settlement | Federal Actions | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, new claims filed, number | claim | 2 | |||||||||
Estimate of possible loss to be funded by insurance company | $ 550,000 | $ 550,000 | ||||||||
Settled Litigation Matters, Including Pending Settlement | Levin v. Resource Capital Corp. | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Litigation settlement, amount awarded to other party | $ 9,500,000 |
DISCONTINUED OPERATIONS AND A_3
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE (Operating Results of the Residential Mortgage and Middle Market Lending Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest income: | ||||
Loans | $ 30,388 | $ 25,435 | $ 57,731 | $ 47,818 |
Other | 159 | 20 | 373 | 138 |
Total interest income | 37,138 | 29,660 | 71,070 | 55,617 |
Interest expense | 21,581 | 16,159 | 40,976 | 30,543 |
Net interest income | 15,557 | 13,501 | 30,094 | 25,074 |
Other revenue | 26 | 152 | 52 | 57 |
Total revenues | 15,583 | 13,653 | 30,146 | 25,131 |
OPERATING EXPENSES | ||||
General and administrative | 2,495 | 2,547 | 5,072 | 5,607 |
Net interest and other revenues less operating expenses | 10,248 | 7,616 | 18,419 | 13,040 |
OTHER INCOME (EXPENSE) | ||||
Net realized and unrealized gain on investment securities available-for-sale and loans and derivatives | 4 | 932 | 4 | 290 |
Total other (expense) income | (1,245) | 1,574 | (1,246) | (4,019) |
Discontinued Operations | ||||
Interest income: | ||||
Loans | 10 | 580 | ||
Other | 9 | 13 | ||
Total interest income | 19 | 593 | ||
Net interest income | 19 | 593 | ||
Other revenue | (53) | 32 | ||
Total revenues | (34) | 625 | ||
OPERATING EXPENSES | ||||
General and administrative | 112 | 443 | 284 | 1,103 |
Total operating expenses | 112 | 443 | 284 | 1,103 |
Net interest and other revenues less operating expenses | (112) | (477) | (284) | (478) |
OTHER INCOME (EXPENSE) | ||||
Net realized and unrealized gain on investment securities available-for-sale and loans and derivatives | 27 | 135 | 275 | |
Total other (expense) income | 27 | 135 | 275 | |
LOSS FROM DISCONTINUED OPERATIONS BEFORE TAXES | (112) | (450) | (149) | (203) |
TOTAL LOSS FROM DISCONTINUED OPERATIONS | $ (112) | $ (450) | $ (149) | $ (203) |
DISCONTINUED OPERATIONS AND A_4
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE (Assets and Liabilities of Business Segments Classified as Discontinued Operations) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Other assets | $ 4,064 | $ 4,015 |
Total | 16,448 | 17,645 |
LIABILITIES | ||
Accounts payable and other liabilities | 5,278 | 7,550 |
Total | 1,770 | 1,820 |
Discontinued Operations, Held-for-sale | ||
ASSETS | ||
Loans held for sale | 16,082 | 17,000 |
Other assets | 366 | 645 |
Total | 16,448 | 17,645 |
LIABILITIES | ||
Accounts payable and other liabilities | 1,770 | 1,820 |
Total | $ 1,770 | $ 1,820 |
DISCONTINUED OPERATIONS AND A_5
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE (Loans Held for Sale in the Residential Mortgage and Middle Market Lending Segments) (Details) - Discontinued Operations, Held-for-sale | Jun. 30, 2019USD ($)Loantranche | Dec. 31, 2018USD ($)Loan |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Quantity | Loan | 2 | 2 |
Amortized Cost | $ 22,150,000 | $ 21,666,000 |
Carrying Value | $ 16,082,000 | $ 17,000,000 |
Legacy CRE Whole Loans | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Quantity | Loan | 1 | 1 |
Amortized Cost | $ 22,150,000 | $ 21,666,000 |
Carrying Value | $ 16,082,000 | $ 17,000,000 |
Mezzanine loan | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Quantity | Loan | 1 | 1 |
Mezzanine loan | RREF CDO 2006-1 Senior Notes | VIE, Not Primary Beneficiary | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Debt Instrument, Par Value | $ 38,100,000 | |
Carrying value | $ 0 | |
Number of tranches | tranche | 2 |