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SEGMENT REPORTING (Tables)
 9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Schedule of Company's performance evaluation by segment
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, 2019
 

 
 

 
 

 
 

 
 

Interest income
$
66,422

 
$
15,515

 
$
7

 
$
307

 
$
82,251

Interest expense
(12,063
)
 
(5,632
)
 
(9,646
)
 
(24,056
)
 
(51,397
)
Net interest income (expense)
54,359

 
9,883

 
(9,639
)
 
(23,749
)
 
30,854

Provision for loan losses
—

 
—

 
—

 
—

 
—

Net interest income (expense) after provision for loan losses
54,359

 
9,883

 
(9,639
)
 
(23,749
)
 
30,854

 
 
 
 
 
 
 
 
 
 
Operating lease income
—

 
—

 
24,405

 
—

 
24,405

Sale of loans, net
11,247

 
—

 
—

 
—

 
11,247

Realized gain (loss) on securities
—

 
3,396

 
—

 
—

 
3,396

Unrealized gain (loss) on equity securities
—

 
254

 
—

 
—

 
254

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

 
16

 
—

 
—

 
16

Realized gain on sale of real estate, net
—

 
—

 
2,082

 
—

 
2,082

Fee and other income
3,839

 
428

 
—

 
899

 
5,166

Net result from derivative transactions
(6,557
)
 
(2,908
)
 
—

 
—

 
(9,465
)
Earnings (loss) from investment in unconsolidated joint ventures
—

 
—

 
1,094

 
—

 
1,094

Total other income (loss)
8,529

 
1,186

 
27,581

 
899

 
38,195

 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
—

 
—

 
—

 
(14,319
)
 
(14,319
)
Operating expenses
—

 
—

 
—

 
(5,314
)
(3)
(5,314
)
Real estate operating expenses
—

 
—

 
(6,270
)
 
—

 
(6,270
)
Fee expense
(1,264
)
 
(92
)
 
(700
)
 
—

 
(2,056
)
Depreciation and amortization
—

 
—

 
(9,005
)
 
(25
)
 
(9,030
)
Total costs and expenses
(1,264
)
 
(92
)
 
(15,975
)
 
(19,658
)
 
(36,989
)
 
 
 
 
 
 
 
 
 
 
Income tax (expense) benefit
—

 
—

 
—

 
(1,112
)
 
(1,112
)
Segment profit (loss)
$
61,624

 
$
10,977

 
$
1,967

 
$
(43,620
)
 
$
30,948

 
 
 
 
 
 
 
 
 
 
Total assets as of September 30, 2019
$
3,387,157

 
$
1,911,456

 
$
1,032,752

 
$
288,509

 
$
6,619,874

 
Loans
 
Securities
 
Real
Estate(1)
 
Corporate/Other(2)
 
Company
Total
 
 
 
 
 
 
 
 
 
 
Three months ended September 30, 2018
 

 
 

 
 

 
 

 
 

Interest income
$
81,779

 
$
8,541

 
$
6

 
$
60

 
$
90,386

Interest expense
(17,232
)
 
(1,482
)
 
(9,213
)
 
(23,549
)
 
(51,476
)
Net interest income (expense)
64,547

 
7,059

 
(9,207
)
 
(23,489
)
 
38,910

Provision for loan losses
(10,300
)
 
—

 
—

 
—

 
(10,300
)
Net interest income (expense) after provision for loan losses
54,247

 
7,059

 
(9,207
)
 
(23,489
)
 
28,610

 
 
 
 
 
 
 
 
 
 
Operating lease income
—

 
—

 
24,997

 
—

 
24,997

Sale of loans, net
1,861

 
—

 
—

 
—

 
1,861

Realized gain (loss) on securities
—

 
(2,554
)
 
—

 
—

 
(2,554
)
Unrealized gain (loss) on Agency interest-only securities
—

 
142

 
—

 
—

 
142

Realized gain on sale of real estate, net
—

 
—

 
63,704

 
—

 
63,704

Fee and other income
3,895

 
—

 
—

 
956

 
4,851

Net result from derivative transactions
3,741

 
3,374

 
—

 
—

 
7,115

Earnings (loss) from investment in unconsolidated joint ventures
—

 
—

 
401

 
—

 
401

Gain (loss) on extinguishment/defeasance of debt
—

 
—

 
(4,323
)
 
—

 
(4,323
)
Total other income (loss)
9,497

 
962

 
84,779

 
956

 
96,194

 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
—

 
—

 
—

 
(15,792
)
 
(15,792
)
Operating expenses
61

 
—

 
—

 
(5,525
)
(3)
(5,464
)
Real estate operating expenses
—

 
—

 
(7,152
)
 
—

 
(7,152
)
Fee expense
(928
)
 
(91
)
 
(292
)
 
—

 
(1,311
)
Depreciation and amortization
—

 
—

 
(10,398
)
 
(19
)
 
(10,417
)
Total costs and expenses
(867
)
 
(91
)
 
(17,842
)
 
(21,336
)
 
(40,136
)
 
 
 
 
 
 
 
 
 
 
Income tax (expense) benefit
—

 
—

 
—

 
(1,204
)
 
(1,204
)
Segment profit (loss)
$
62,877

 
$
7,930

 
$
57,730

 
$
(45,073
)
 
$
83,464

 
 
 
 
 
 
 
 
 
 
Total assets as of December 31, 2018
$
3,482,929

 
$
1,410,126

 
$
1,038,376

 
$
341,441

 
$
6,272,872

 
Loans
 
Securities
 
Real
Estate(1)
 
Corporate/Other(2)
 
Company
Total
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2019
 

 
 

 
 

 
 

 
 

Interest income
$
209,369

 
$
43,844

 
$
21

 
$
806

 
$
254,040

Interest expense
(41,043
)
 
(12,250
)
 
(27,620
)
 
(74,102
)
 
(155,015
)
Net interest income (expense)
168,326

 
31,594

 
(27,599
)
 
(73,296
)
 
99,025

Provision for loan losses
(600
)
 
—

 
—

 
—

 
(600
)
Net interest income (expense) after provision for loan losses
167,726

 
31,594

 
(27,599
)
 
(73,296
)
 
98,425

 
 
 
 
 
 
 
 
 
 
Operating lease income
—

 
—

 
81,106

 
—

 
81,106

Sale of loans, net
38,589

 
—

 
—

 
—

 
38,589

Realized gain (loss) on securities
—

 
10,726

 
—

 
—

 
10,726

Unrealized gain (loss) on equity securities
—

 
1,341

 
—

 
—

 
1,341

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

 
38

 
—

 
—

 
38

Realized gain on sale of real estate, net
—

 
—

 
963

 
—

 
963

Impairment of real estate
—

 
—

 
(1,350
)
 
—

 
(1,350
)
Fee and other income
13,095

 
1,165

 
7

 
2,780

 
17,047

Net result from derivative transactions
(20,273
)
 
(15,683
)
 
—

 
—

 
(35,956
)
Earnings (loss) from investment in unconsolidated joint ventures
—

 
—

 
3,617

 
—

 
3,617

Gain (loss) on extinguishment of debt
—

 
—

 
(1,070
)
 
—

 
(1,070
)
Total other income (loss)
31,411

 
(2,413
)
 
83,273

 
2,780

 
115,051

 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
—

 
—

 
—

 
(52,800
)
 
(52,800
)
Operating expenses
—

 
—

 
—

 
(16,727
)
(3)
(16,727
)
Real estate operating expenses
—

 
—

 
(17,776
)
 
 
 
(17,776
)
Fee expense
(3,516
)
 
(280
)
 
(1,155
)
 
—

 
(4,951
)
Depreciation and amortization
—

 
—

 
(29,118
)
 
(74
)
 
(29,192
)
Total costs and expenses
(3,516
)
 
(280
)
 
(48,049
)
 
(69,601
)
 
(121,446
)
 
 
 
 
 
 
 
 
 
 
Income tax (expense) benefit
—

 
—

 
—

 
(478
)
 
(478
)
Segment profit (loss)
$
195,621

 
$
28,901

 
$
7,625

 
$
(140,595
)
 
$
91,552

 
 
 
 
 
 
 
 
 
 
Total assets as of September 30, 2019
$
3,387,157

 
$
1,911,456

 
$
1,032,752

 
$
288,509

 
$
6,619,874

 
Loans
 
Securities
 
Real
Estate(1)
 
Corporate/Other(2)
 
Company
Total
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2018
 

 
 

 
 

 
 

 
 

Interest income
$
228,273

 
$
25,217

 
$
16

 
$
316

 
$
253,822

Interest expense
(46,286
)
 
(3,423
)
 
(25,799
)
 
(69,098
)
 
(144,606
)
Net interest income (expense)
181,987

 
21,794

 
(25,783
)
 
(68,782
)
 
109,216

Provision for loan losses
(13,600
)
 
—

 
—

 
—

 
(13,600
)
Net interest income (expense) after provision for loan losses
168,387

 
21,794

 
(25,783
)
 
(68,782
)
 
95,616

 
 
 
 
 
 
 
 
 
 
Operating lease income
—

 
—

 
79,306

 
—

 
79,306

Sale of loans, net
12,893

 
—

 
—

 
—

 
12,893

Realized gain (loss) on securities
—

 
(4,896
)
 
—

 
—

 
(4,896
)
Unrealized gain (loss) on Agency interest-only securities
—

 
456

 
—

 
—

 
456

Realized gain on sale of real estate, net
—

 
—

 
96,341

 
—

 
96,341

Fee and other income
10,823

 
72

 
3,416

 
3,268

 
17,579

Net result from derivative transactions
14,516

 
14,640

 
—

 
—

 
29,156

Earnings (loss) from investment in unconsolidated joint ventures
—

 
—

 
466

 
—

 
466

Gain (loss) on extinguishment of debt
(69
)
 
—

 
(4,323
)
 
—

 
(4,392
)
Total other income (loss)
38,163

 
10,272

 
175,206

 
3,268

 
226,909

 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
—

 
—

 
—

 
(46,754
)
 
(46,754
)
Operating expenses
61

 
—

 
—

 
(16,669
)
(3)
(16,608
)
Real estate operating expenses
—

 
—

 
(23,806
)
 


 
(23,806
)
Fee expense
(2,160
)
 
(297
)
 
(496
)
 
—

 
(2,953
)
Depreciation and amortization
—

 
—

 
(31,840
)
 
(56
)
 
(31,896
)
Total costs and expenses
(2,099
)
 
(297
)
 
(56,142
)
 
(63,479
)
 
(122,017
)
 
 
 
 
 
 
 
 
 
 
Income tax (expense) benefit
—

 
—

 
—

 
(5,679
)
 
(5,679
)
Segment profit (loss)
$
204,451

 
$
31,769

 
$
93,281

 
$
(134,672
)
 
$
194,829

 
 
 
 
 
 
 
 
 
 
Total assets as of December 31, 2018
$
3,482,929

 
$
1,410,126

 
$
1,038,376

 
$
341,441

 
$
6,272,872

 
(1)
Includes the Company’s investment in unconsolidated joint ventures that held real estate of $51.4 million and $40.4 million as of September 30, 2019 and December 31, 2018, respectively.
(2)
Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to consolidated Company totals. This segment 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 FHLB stock of $61.6 million and $57.9 million as of September 30, 2019 and December 31, 2018, respectively, the Company’s deferred tax asset (liability) of $(4.7) million and $2.3 million as of September 30, 2019 and December 31, 2018, respectively and the Company’s senior unsecured notes of $1.2 billion as of September 30, 2019 and December 31, 2018.
(3)
Includes $3.0 million and $9.1 million of professional fees for the three and nine months ended September 30, 2019, respectively. Includes $2.9 million and $8.7 million of professional fees for the three and nine months ended September 30, 2018, respectively.