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SEGMENT REPORTING
 9 Months Ended
Sep. 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 September 30, 2016
 

 
 

 
 

 
 

 
 

Interest income
$
40,639

 
$
19,630

 
$
4

 
$
11

 
$
60,284

Interest expense
(6,281
)
 
(2,902
)
 
(6,276
)
 
(15,226
)
 
(30,685
)
Net interest income (expense)
34,358

 
16,728

 
(6,272
)
 
(15,215
)
 
29,599

Provision for loan losses
—

 
—

 
—

 
—

 
—

Net interest income (expense) after provision for loan losses
34,358

 
16,728

 
(6,272
)
 
(15,215
)
 
29,599

 
 
 
 
 
 
 
 
 
 
Operating lease income
—

 
—

 
19,466

 
—

 
19,466

Tenant recoveries
—

 
—

 
1,185

 
—

 
1,185

Sale of loans, net
19,640

 
—

 
—

 
—

 
19,640

Realized gain on securities
—

 
7,126

 
—

 
—

 
7,126

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

 
(47
)
 
—

 
—

 
(47
)
Realized gain (loss) on sale of real estate, net
—

 
—

 
4,649

 
—

 
4,649

Fee income
2,230

 
—

 
1,867

 
4,004

 
8,101

Net result from derivative transactions
4,656

 
4,700

 
—

 
—

 
9,356

Earnings (loss) from investment in unconsolidated joint ventures
—

 
—

 
(141
)
 
—

 
(141
)
Total other income (expense)
26,526

 
11,779

 
27,026

 
4,004

 
69,335

 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
(3,300
)
 
—

 
—

 
(13,996
)
 
(17,296
)
Operating expenses
—

 
—

 
—

 
(4,391
)
 
(4,391
)
Real estate operating expenses
—

 
—

 
(7,969
)
 
—

 
(7,969
)
Real estate acquisition costs
—

 
—

 
(423
)
 
—

 
(423
)
Fee expense
(1,077
)
 
(15
)
 
(151
)
 
440

 
(803
)
Depreciation and amortization
—

 
—

 
(9,705
)
 
(28
)
 
(9,733
)
Total costs and expenses
(4,377
)
 
(15
)
 
(18,248
)
 
(17,975
)
 
(40,615
)
 
 
 
 
 
 
 
 
 
 
Tax (expense) benefit
—

 
—

 
—

 
(8,721
)
 
(8,721
)
Segment profit (loss)
$
56,507

 
$
28,492

 
$
2,506

 
$
(37,907
)
 
$
49,598

 
 
 
 
 
 
 
 
 
 
Total assets as of September 30, 2016
$
2,427,221

 
$
2,650,959

 
$
859,453

 
$
278,183

 
$
6,215,816

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

 
 

 
 

 
 

 
 

Interest income
$
45,195

 
$
17,811

 
$
—

 
$
7

 
$
63,013

Interest expense
(6,749
)
 
(1,753
)
 
(6,365
)
 
(14,668
)
 
(29,535
)
Net interest income (expense)
38,446

 
16,058

 
(6,365
)
 
(14,661
)
 
33,478

Provision for loan losses
(150
)
 
—

 
—

 
—

 
(150
)
Net interest income (expense) after provision for loan losses
38,296

 
16,058

 
(6,365
)
 
(14,661
)
 
33,328

 
 
 
 
 
 
 
 
 
 
Operating lease income
—

 
—

 
20,671

 
—

 
20,671

Tenant recoveries
—

 
—

 
2,847

 
—

 
2,847

Sale of loans, net
15,165

 
—

 
—

 
—

 
15,165

Realized gain on securities
—

 
513

 
—

 
—

 
513

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

 
731

 
—

 
—

 
731

Realized gain on sale of real estate, net
519

 
—

 
5,887

 
—

 
6,406

Fee income
905

 
230

 
6

 
2,342

 
3,483

Net result from derivative transactions
(13,159
)
 
(29,083
)
 
—

 
—

 
(42,242
)
Earnings from investment in unconsolidated joint ventures
—

 
—

 
(25
)
 
—

 
(25
)
Total other income
3,430

 
(27,609
)
 
29,386

 
2,342

 
7,549

 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
(4,525
)
 
—

 
—

 
(13,103
)
 
(17,628
)
Operating expenses
132

 
—

 
(17
)
 
(5,066
)
 
(4,951
)
Real estate operating expenses
—

 
—

 
(8,975
)
 
—

 
(8,975
)
Real estate acquisition costs
—

 
—

 
(470
)
 
—

 
(470
)
Fee expense
156

 
(10
)
 
(123
)
 
(698
)
 
(675
)
Depreciation and amortization
—

 
—

 
(9,533
)
 
(28
)
 
(9,561
)
Total costs and expenses
(4,237
)
 
(10
)
 
(19,118
)
 
(18,895
)
 
(42,260
)
 
 
 
 
 
 
 
 
 
 
Tax expense
—

 
—

 
—

 
4,181

 
4,181

Segment profit (loss)
$
37,489

 
$
(11,561
)
 
$
3,903

 
$
(27,033
)
 
$
2,798

 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2016
 

 
 

 
 

 
 

 
 

Interest income
$
117,516

 
$
58,088

 
$
5

 
$
41

 
$
175,650

Interest expense
(17,560
)
 
(7,039
)
 
(18,675
)
 
(45,348
)
 
(88,622
)
Net interest income (expense)
99,956

 
51,049

 
(18,670
)
 
(45,307
)
 
87,028

Provision for loan losses
(300
)
 
—

 
—

 
—

 
(300
)
Net interest income (expense) after provision for loan losses
99,656

 
51,049

 
(18,670
)
 
(45,307
)
 
86,728

 
 
 
 
 
 
 
 
 
 
Operating lease income
—

 
—

 
57,845

 
—

 
57,845

Tenant recoveries
—

 
—

 
3,844

 
—

 
3,844

Sale of loans, net
30,265

 
—

 
—

 
—

 
30,265

Realized gain on securities
—

 
9,524

 
—

 
—

 
9,524

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

 
29

 
—

 
—

 
29

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

 
—

 
15,616

 
—

 
15,616

Fee and other income
6,473

 
—

 
5,129

 
5,656

 
17,258

Net result from derivative transactions
(21,139
)
 
(45,009
)
 
—

 
—

 
(66,148
)
Earnings from investment in unconsolidated joint ventures
—

 
—

 
(407
)
 
892

 
485

Gain (loss) on extinguishment of debt
—

 
—

 
—

 
5,382

 
5,382

Total other income (expense)
15,599

 
(35,456
)
 
82,027

 
11,930

 
74,100

 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
(6,300
)
 
—

 
—

 
(37,043
)
 
(43,343
)
Operating expenses
—

 
—

 
(1
)
 
(15,398
)
 
(15,399
)
Real estate operating expenses
—

 
—

 
(22,613
)
 
—

 
(22,613
)
Real estate acquisition costs
—

 
—

 
(631
)
 
—

 
(631
)
Fee expense
(1,501
)
 
(33
)
 
(389
)
 
(484
)
 
(2,407
)
Depreciation and amortization
—

 
—

 
(28,704
)
 
(85
)
 
(28,789
)
Total costs and expenses
(7,801
)
 
(33
)
 
(52,338
)
 
(53,010
)
 
(113,182
)
 
 
 
 
 
 
 
 
 
 
Tax (expense) benefit
—

 
—

 
—

 
(5,547
)
 
(5,547
)
Segment profit (loss)
$
107,454

 
$
15,560

 
$
11,019

 
$
(91,934
)
 
$
42,099

 
 
 
 
 
 
 
 
 
 
Total assets as of September 30, 2016
$
2,427,221

 
$
2,650,959

 
$
859,453

 
$
278,183

 
$
6,215,816

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

 
 

 
 

 
 

 
 

Interest income
$
120,932

 
$
57,659

 
$
—

 
$
44

 
$
178,635

Interest expense
(17,509
)
 
(5,512
)
 
(17,670
)
 
(43,155
)
 
(83,846
)
Net interest income (expense)
103,423

 
52,147

 
(17,670
)
 
(43,111
)
 
94,789

Provision for loan losses
(450
)
 
—

 
—

 
—

 
(450
)
Net interest income (expense) after provision for loan losses
102,973

 
52,147

 
(17,670
)
 
(43,111
)
 
94,339

 
 
 
 
 
 
 
 
 
 
Operating lease income
—

 
—

 
60,207

 
—

 
60,207

Tenant recoveries
—

 
—

 
7,883

 
—

 
7,883

Sale of loans, net
59,717

 
—

 
—

 
—

 
59,717

Realized gain on securities
—

 
23,680

 
—

 
—

 
23,680

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

 
(639
)
 
—

 
—

 
(639
)
Realized gain on sale of real estate, net
1,771

 
—

 
19,576

 
—

 
21,347

Fee income
3,990

 
230

 
33

 
6,604

 
10,857

Net result from derivative transactions
(18,335
)
 
(36,259
)
 
—

 
—

 
(54,594
)
Earnings from investment in unconsolidated joint ventures
—

 
—

 
464

 
116

 
580

Total other income
47,143

 
(12,988
)
 
88,163

 
6,720

 
129,038

 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
(11,436
)
 
—

 
—

 
(35,897
)
 
(47,333
)
Operating expenses
301

 
—

 
(16
)
 
(20,772
)
 
(20,487
)
Real estate operating expenses
—

 
—

 
(27,976
)
 
—

 
(27,976
)
Real estate acquisition costs
—

 
—

 
(1,524
)
 
—

 
(1,524
)
Fee expense
(1,642
)
 
(31
)
 
(230
)
 
(1,357
)
 
(3,260
)
Depreciation and amortization
—

 
—

 
(29,158
)
 
(80
)
 
(29,238
)
Total costs and expenses
(12,777
)
 
(31
)
 
(58,904
)
 
(58,106
)
 
(129,818
)
 
 
 
 
 
 
 
 
 
 
Tax expense
—

 
—

 
—

 
(4,101
)
 
(4,101
)
Segment profit (loss)
$
137,339

 
$
39,128

 
$
11,589

 
$
(98,598
)
 
$
89,458

 
 
 
 
 
 
 
 
 
 
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 $33.9 million and $33.7 million as of September 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 September 30, 2016 and December 31, 2015, respectively, the Company’s deferred tax asset of $9.8 million and $5.0 million as of September 30, 2016 and December 31, 2015, respectively and the Company’s senior unsecured notes of $559.3 million and $612.6 million as of September 30, 2016 and December 31, 2015, respectively.