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SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
SEGMENT REPORTING
18. SEGMENT REPORTING
 
The Company has determined that it has three reportable segments based on how the chief operating decision maker reviews and manages the business. These reportable segments include loans, securities, and real estate. The loans segment includes mortgage loan receivables held for investment (balance sheet loans) and mortgage loan receivables held for sale (conduit loans). The securities segment is composed of all of the Company’s activities related to commercial real estate securities, which include investments in CMBS and U.S. Agency Securities. The real estate segment includes net leased properties, office buildings, a warehouse and condominium units. Corporate/other includes the Company’s investments in joint ventures, other asset management activities and operating expenses.

The Company evaluates performance based on the following financial measures for each segment ($ in thousands):
 
Loans
 
Securities
 
Real
Estate(1)
 
Corporate/Other(2)
 
Company
Total
 
 
 
 
 
 
 
 
 
 
Three months ended June 30, 2016
 

 
 

 
 

 
 

 
 

Interest income
$
35,549

 
$
20,202

 
$
2

 
$
13

 
$
55,766

Interest expense
(5,128
)
 
(2,167
)
 
(6,204
)
 
(14,903
)
 
(28,402
)
Net interest income (expense)
30,421

 
18,035

 
(6,202
)
 
(14,890
)
 
27,364

Provision for loan losses
(150
)
 
—

 
—

 
—

 
(150
)
Net interest income (expense) after provision for loan losses
30,271

 
18,035

 
(6,202
)
 
(14,890
)
 
27,214

 
 
 
 
 
 
 
 
 
 
Operating lease income
—

 
—

 
19,085

 
—

 
19,085

Tenant recoveries
—

 
—

 
1,324

 
—

 
1,324

Sale of loans, net
2,795

 
—

 
—

 
—

 
2,795

Realized gain on securities
—

 
2,971

 
—

 
—

 
2,971

Unrealized gain (loss) on Agency interest-only securities
—

 
(584
)
 
—

 
—

 
(584
)
Realized gain (loss) on sale of real estate, net
(800
)
 
—

 
5,673

 
—

 
4,873

Fee income
2,438

 
—

 
2,920

 
823

 
6,181

Net result from derivative transactions
(9,670
)
 
(14,972
)
 
—

 
—

 
(24,642
)
Earnings (loss) from investment in unconsolidated joint ventures
—

 
—

 
(168
)
 
—

 
(168
)
Total other income (expense)
(5,237
)
 
(12,585
)
 
28,834

 
823

 
11,835

 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
(1,500
)
 
—

 
—

 
(11,932
)
 
(13,432
)
Operating expenses
—

 
—

 
421

 
(5,134
)
 
(4,713
)
Real estate operating expenses
—

 
—

 
(8,925
)
 
—

 
(8,925
)
Real estate acquisition costs
—

 
—

 
(208
)
 
—

 
(208
)
Fee expense
12

 
(17
)
 
(124
)
 
(744
)
 
(873
)
Depreciation and amortization
—

 
—

 
(9,213
)
 
(41
)
 
(9,254
)
Total costs and expenses
(1,488
)
 
(17
)
 
(18,049
)
 
(17,851
)
 
(37,405
)
 
 
 
 
 
 
 
 
 
 
Tax (expense) benefit
—

 
—

 
—

 
2,301

 
2,301

Segment profit (loss)
$
23,546

 
$
5,433

 
$
4,583

 
$
(29,617
)
 
$
3,945

 
 
 
 
 
 
 
 
 
 
Total assets as of June 30, 2016
$
2,127,336

 
$
2,700,210

 
$
842,533

 
$
317,294

 
$
5,987,373

 
Loans
 
Securities
 
Real
Estate(1)
 
Corporate/Other(2)
 
Company
Total
 
 
 
 
 
 
 
 
 
 
Three months ended June 30, 2015
 

 
 

 
 

 
 

 
 

Interest income
$
39,680

 
$
19,528

 
$
—

 
$
31

 
$
59,239

Interest expense
(5,337
)
 
(1,748
)
 
(6,086
)
 
(14,316
)
 
(27,487
)
Net interest income (expense)
34,343

 
17,780

 
(6,086
)
 
(14,285
)
 
31,752

Provision for loan losses
(150
)
 
—

 
—

 
—

 
(150
)
Net interest income (expense) after provision for loan losses
34,193

 
17,780

 
(6,086
)
 
(14,285
)
 
31,602

 
 
 
 
 
 
 
 
 
 
Operating lease income
—

 
—

 
20,390

 
—

 
20,390

Tenant recoveries
—

 
—

 
2,510

 
—

 
2,510

Sale of loans, net
14,524

 
—

 
—

 
—

 
14,524

Realized gain on securities
—

 
11,017

 
—

 
—

 
11,017

Unrealized gain (loss) on Agency interest-only securities
—

 
(51
)
 
—

 
—

 
(51
)
Realized gain on sale of real estate, net
641

 
—

 
6,637

 
—

 
7,278

Fee income
1,601

 
—

 
17

 
2,215

 
3,833

Net result from derivative transactions
8,774

 
18,013

 
—

 
—

 
26,787

Earnings from investment in unconsolidated joint ventures
—

 
—

 
150

 
14

 
164

Total other income
25,540

 
28,979

 
29,704

 
2,229

 
86,452

 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
(4,111
)
 
—

 
—

 
(11,836
)
 
(15,947
)
Operating expenses
100

 
—

 
—

 
(6,834
)
 
(6,734
)
Real estate operating expenses
—

 
—

 
(9,628
)
 
—

 
(9,628
)
Real estate acquisition costs
—

 
—

 
(454
)
 
—

 
(454
)
Fee expense
(907
)
 
(20
)
 
(69
)
 
(467
)
 
(1,463
)
Depreciation and amortization
—

 
—

 
(9,908
)
 
(46
)
 
(9,954
)
Total costs and expenses
(4,918
)
 
(20
)
 
(20,059
)
 
(19,183
)
 
(44,180
)
 
 
 
 
 
 
 
 
 
 
Tax expense
—

 
—

 
—

 
(5,177
)
 
(5,177
)
Segment profit (loss)
$
54,815

 
$
46,739

 
$
3,559

 
$
(36,416
)
 
$
68,697

 
 
 
 
 
 
 
 
 
 
Total assets as of December 31, 2015
$
2,310,409

 
$
2,407,217

 
$
868,528

 
$
309,058

 
$
5,895,212

 
Loans
 
Securities
 
Real
Estate(1)
 
Corporate/Other(2)
 
Company
Total
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2016
 

 
 

 
 

 
 

 
 

Interest income
$
76,877

 
$
38,458

 
$
2

 
$
29

 
$
115,366

Interest expense
(11,279
)
 
(4,137
)
 
(12,399
)
 
(30,123
)
 
(57,938
)
Net interest income (expense)
65,598

 
34,321

 
(12,397
)
 
(30,094
)
 
57,428

Provision for loan losses
(300
)
 
—

 
—

 
—

 
(300
)
Net interest income (expense) after provision for loan losses
65,298

 
34,321

 
(12,397
)
 
(30,094
)
 
57,128

 
 
 
 
 
 
 
 
 
 
Operating lease income
—

 
—

 
38,379

 
—

 
38,379

Tenant recoveries
—

 
—

 
2,659

 
—

 
2,659

Sale of loans, net
10,625

 
—

 
—

 
—

 
10,625

Realized gain on securities
—

 
2,398

 
—

 
—

 
2,398

Unrealized gain (loss) on Agency interest-only securities
—

 
76

 
—

 
—

 
76

Realized gain (loss) on sale of real estate, net
(159
)
 
—

 
11,127

 
—

 
10,968

Fee and other income
4,243

 
—

 
3,262

 
1,651

 
9,156

Net result from derivative transactions
(25,795
)
 
(49,709
)
 
—

 
—

 
(75,504
)
Earnings from investment in unconsolidated joint ventures
—

 
—

 
(266
)
 
892

 
626

Gain (loss) on extinguishment of debt
—

 
—

 
—

 
5,382

 
5,382

Total other income (expense)
(11,086
)
 
(47,235
)
 
55,161

 
7,925

 
4,765

 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
(3,000
)
 
—

 
—

 
(23,047
)
 
(26,047
)
Operating expenses
—

 
—

 
(1
)
 
(11,007
)
 
(11,008
)
Real estate operating expenses
—

 
—

 
(14,644
)
 
—

 
(14,644
)
Real estate acquisition costs
—

 
—

 
(208
)
 
—

 
(208
)
Fee expense
(424
)
 
(17
)
 
(237
)
 
(925
)
 
(1,603
)
Depreciation and amortization
—

 
—

 
(19,010
)
 
(47
)
 
(19,057
)
Total costs and expenses
(3,424
)
 
(17
)
 
(34,100
)
 
(35,026
)
 
(72,567
)
 
 
 
 
 
 
 
 
 
 
Tax (expense) benefit
—

 
—

 
—

 
3,174

 
3,174

Segment profit (loss)
$
50,788

 
$
(12,931
)
 
$
8,664

 
$
(54,021
)
 
$
(7,500
)
 
 
 
 
 
 
 
 
 
 
Total assets as of June 30, 2016
$
2,127,336

 
$
2,700,210

 
$
842,533

 
$
317,294

 
$
5,987,373

 
Loans
 
Securities
 
Real
Estate(1)
 
Corporate/Other(2)
 
Company
Total
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2015
 

 
 

 
 

 
 

 
 

Interest income
$
75,737

 
$
39,848

 
$
—

 
$
37

 
$
115,622

Interest expense
(10,759
)
 
(3,760
)
 
(11,305
)
 
(28,487
)
 
(54,311
)
Net interest income (expense)
64,978

 
36,088

 
(11,305
)
 
(28,450
)
 
61,311

Provision for loan losses
(300
)
 
—

 
—

 
—

 
(300
)
Net interest income (expense) after provision for loan losses
64,678

 
36,088

 
(11,305
)
 
(28,450
)
 
61,011

 
 
 
 
 
 
 
 
 
 
Operating lease income
—

 
—

 
39,537

 
—

 
39,537

Tenant recoveries
—

 
—

 
5,036

 
—

 
5,036

Sale of loans, net
44,551

 
—

 
—

 
—

 
44,551

Realized gain on securities
—

 
23,167

 
—

 
—

 
23,167

Unrealized gain (loss) on Agency interest-only securities
—

 
(1,369
)
 
—

 
—

 
(1,369
)
Realized gain on sale of real estate, net
1,252

 
—

 
13,688

 
—

 
14,940

Fee income
3,085

 
—

 
27

 
4,262

 
7,374

Net result from derivative transactions
(5,176
)
 
(7,176
)
 
—

 
—

 
(12,352
)
Earnings from investment in unconsolidated joint ventures
—

 
—

 
489

 
116

 
605

Total other income
43,712

 
14,622

 
58,777

 
4,378

 
121,489

 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
(6,911
)
 
—

 
—

 
(22,794
)
 
(29,705
)
Operating expenses
169

 
—

 
—

 
(15,706
)
 
(15,537
)
Real estate operating expenses
—

 
—

 
(19,001
)
 
—

 
(19,001
)
Real estate acquisition costs
—

 
—

 
(1,054
)
 
—

 
(1,054
)
Fee expense
(1,798
)
 
(21
)
 
(107
)
 
(659
)
 
(2,585
)
Depreciation and amortization
—

 
—

 
(19,626
)
 
(51
)
 
(19,677
)
Total costs and expenses
(8,540
)
 
(21
)
 
(39,788
)
 
(39,210
)
 
(87,559
)
 
 
 
 
 
 
 
 
 
 
Tax expense
—

 
—

 
—

 
(8,282
)
 
(8,282
)
Segment profit (loss)
$
99,850

 
$
50,689

 
$
7,684

 
$
(71,564
)
 
$
86,659

 
 
 
 
 
 
 
 
 
 
Total assets as of December 31, 2015
$
2,310,409

 
$
2,407,217

 
$
868,528

 
$
309,058

 
$
5,895,212

 
(1)
Includes the Company’s investment in unconsolidated joint ventures that held real estate of $33.8 million and $33.7 million as of June 30, 2016 and December 31, 2015, respectively
(2)
Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to combined consolidated Company totals. This caption also includes the Company’s investment in unconsolidated joint ventures and strategic investments that are not related to the other reportable segments above, including the Company’s investment in unconsolidated joint ventures of $48,771 as of December 31, 2015, the Company’s investment in FHLB stock of $77.9 million and $77.9 million as of June 30, 2016 and December 31, 2015, respectively, the Company’s deferred tax asset of $10.9 million and $5.0 million as of June 30, 2016 and December 31, 2015, respectively and the Company’s senior unsecured notes of $558.7 million and $612.6 million as of June 30, 2016 and December 31, 2015, respectively.