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VARIABLE INTEREST ENTITIES (Tables)

3 Months Ended

Mar. 31, 2015

Variable Interest Entity [Line Items]

The following table presents the carrying amounts of the assets in the Company's consolidated balance sheets that relate to the Company's variable interests in identified nonconsolidated VIEs and the Company's maximum exposure to loss associated with these VIEs in which it holds variable interests at March 31, 2015 (in thousands):



	Receivables from Managed Entities and Related Parties, Net (1)		Investments		Maximum Exposure to Loss in Non-consolidated VIEs
Ischus entities	$	158	$	—	$	158
Trapeza entities	—		714		714
RREGPS	—		716		716
	$	158	$	1,430	$	1,588


(1)	Exclusive of expense reimbursements due to the Company.

Supplemental Cash Flow Information

Supplemental disclosure of cash flow information for the Company is as follows (in thousands, per share data):



	Three Months Ended
	March 31,
	2015			2014
Cash (paid) received:
Interest	$	(399	)	$	(409	)
Income tax payments	(65		)	(176		)
Refund of income taxes	44			47

Dividends declared per common share	$	0.06		$	0.05

Non-cash activities:
Repurchase of common stock from employees in exchange for the payment of income taxes	$	165		$	207
Issuance of treasury stock for the Company's investment savings 401(k) plan	150			178

Unrealized Losses Along with the Related Fair Value, Aggregated by the Length of Time the Investments were in a Continuous Unrealized Loss Position

Unrealized losses on available-for-sale securities, along with their related fair value, and aggregated by the length of time the investments were in a continuous unrealized loss position, are as follows (in thousands, except number of securities):



	Less than 12 Months						More than 12 Months
	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses		Number of Securities
March 31, 2015
CLO securities	$	3,154	$	(224	)	5	$	—	$	—	—
Equity securities			—			—	—		—		—
Total	$	3,154	$	(224	)	5	$	—	$	—	—
December 31, 2014
CLO securities	$	2,643	$	(176	)	4	$	—	$	—	—
Equity securities	—		—			—	—		—		—
Total	$	2,643	$	(176	)	4	$	—	$	—	—

Schedule of Equity Method Investments

The following table details the Company’s investments in these vehicles, including the range of ownership interests owned (in thousands, except percentages):



	Range of Combined Ownership Interests	March 31,		December 31,
	Range of Combined Ownership Interests	2015		2014
Real estate investment entities	1% – 12%	$	7,939	$	8,313
Financial fund management partnerships	0.01% − 50%	4,452		4,162
Trapeza entities	33% − 50%	714		614
Investments in unconsolidated entities		$	13,105	$	13,089

Summary of Activity in the Allowance for Credit Losses for the Company's Financing Receivables

The following table summarizes the activity in the allowance for credit losses for all financing receivables (in thousands):



	Receivables from Managed Entities			Leases and Loans			Rent Receivables			Total
Three Months Ended March 31, 2015:
Balance, beginning of period	$	16,990		$	—		$	—		$	16,990
Provision for credit losses	369			32			1			402
Charge-offs	—			(32		)	—			(32		)
Recoveries	—			—			—			—
Balance, end of period	$	17,359		$	—		$	1		$	17,360

Ending balance, individually evaluated for impairment	$	17,359		—			$	1		$	17,360
Ending balance, collectively evaluated for impairment	0			—			—			—
Balance, end of year	$	17,359		$	—		$	1		$	17,360

Three Months Ended March 31, 2014:
Balance, beginning of period	$	36,229		$	—		$	14		$	36,243
Provision for (reversal of) credit losses	1,213			(1		)	(4		)	1,208
Charge-offs	(1		)	—			—			(1		)
Recoveries	—			1			—			1
Balance, end of period	$	37,441		$	—		$	10		$	37,451

Ending balance, individually evaluated for impairment	$	37,441		$	—		$	—		$	37,441
Ending balance, collectively evaluated for impairment	—			—			10			10
Balance, end of period	$	37,441		$	—		$	10		$	37,451

Aging of the Company's Past Due Financing Receivables, Gross of Allowances for Credit Losses

The following table is the aging of the Company’s financing receivables (presented gross of allowance for credit losses) as of March 31, 2015 (in thousands):



	Current		30-89 Days Past Due		90-180 Days Past Due		Greater than 181 Days		Total Past Due		Total
Loans and receivables from managed entities and related parties: ⁽¹⁾
Commercial finance investment entities	$	6	$	344	$	1,131	$	18,503	$	19,978	$	19,984
Real estate investment entities	3,845		1,380		384		14,831		16,595		20,440
Financial fund management entities	981		57		31		24		112		1,093
Other	2,629		—		—		—		—		2,629
	7,461		1,781		1,546		33,358		36,685		44,146
Rent receivables - real estate	98		20		—		—		20		118
Total financing receivables	$	7,559	$	1,801	$	1,546	$	33,358	$	36,705	$	44,264


(1)	Receivables are presented gross of an allowance for credit losses of $17.2 million related to the Company’s commercial finance investment entities and $113,000 related to one of its real estate investment partnerships. The remaining receivables from managed entities and related parties have no related allowance for credit losses.

The following table is the aging of the Company’s financing receivables (presented gross of allowance for credit losses) as of December 31, 2014 (in thousands):



	Current		30-89 Days Past Due		90-180 Days Past Due		Greater than 181 Days		Total Past Due		Total
Loans and receivables from managed entities and related parties: ⁽¹⁾
Commercial finance investment entities	$	9	$	342	$	1,124	$	18,398	$	19,864	$	19,873
Real estate investment entities	6,613		772		1,214		15,134		17,120		23,733
Financial fund management entities	583		74		—		6		80		663
Other	3,024		—		—		—		—		3,024
	10,229		1,188		2,338		33,538		37,064		47,293
Rent receivables - real estate	76		11		1		—		12		88
Total financing receivables	$	10,305	$	1,199	$	2,339	$	33,538	$	37,076	$	47,381


(1)	Receivables are presented gross of an allowance for credit losses of $17.0 million related to one of the Company’s commercial finance investment entities. The remaining receivables from managed entities and related parties have no related allowance for credit losses.

Information about Company's Impaired Financing Receivables

The following table discloses information about the Company’s impaired financing receivables (in thousands):



	Net Balance		Unpaid Balance		Specific Allowance		Average Investment in Impaired Assets
As of March 31, 2015
Financing receivables with a specific valuation allowance:
Loans and receivables from managed entities – commercial finance	$	1,327	$	18,573	$	17,246	$	19,561
Loans and receivables from managed entities – real estate	831		$	944	113		596
Rent receivables – real estate	—		—		1		—

As of December 31, 2014
Financing receivables with a specific valuation allowance:
Loans and receivables from managed entities – commercial finance	$	1,295	$	18,285	$	16,990	$	18,882

Debt and Credit Facilities

The credit facilities and other debt of the Company and related borrowings outstanding are as follows (in thousands):



	As of March 31, 2015				December 31, 2014
	Maximum Amount of Facility		Borrowings Outstanding		Borrowings Outstanding
Credit facilities:
TD Bank – secured revolving credit facility ⁽¹⁾	$	10,997	$	—	$	—
Republic Bank – secured revolving credit facility	2,784		—		—
			—		—
Other debt:
Senior Notes			10,000		10,000
Mortgage debt - hotel property			10,035		10,088
Other debt			1,139		324
Total borrowings outstanding			$	21,174	$	20,412


(1)	The amount of the facility as shown has been reduced $503,000 for an outstanding letter of credit at March 31, 2015.

Company's Asset Recorded at Fair Value on Recurring Basis

The fair value of the Company’s assets and liabilities recorded at fair value on a recurring basis were as follows (in thousands):



	Level 1		Level 2		Level 3		Total
Assets - Investment securities
March 31, 2015	$	284	$	788	$	8,713	$	9,785
December 31, 2014	$	310	$	741	$	8,489	$	9,540



Liabilities - Apidos contractual commitment	Level 1		Level 2		Level 3		Total
March 31, 2015	$	—	$	—	$	694	$	694
December 31, 2014	$	—	$	—	$	745	$	745

Additional Information about Assets Measured at Fair Value on Recurring Basis for which the Company Has Utilized Level 3 Inputs to Determine Fair Value

The following table presents additional information about assets which were measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value during three months ended March 31, 2015 (in thousands):



	Investment Securities
Balance, beginning of year	$	8,489
Purchases	611
Income accreted	288
Payments and distributions received, net	(455		)
Sales	(175		)
Losses on sales of trading securities	(15		)
Unrealized holding gains on trading securities	20
Change in unrealized gains included in accumulated other comprehensive loss	(50		)
Balance, end of period	$	8,713



	Investment Securities
Balance, beginning of year	$	7,407
Purchases	15,063
Income accreted	995
Payments and distributions received, net	(3,752		)
Sales	(13,251		)
Gain on sale of investment securities, net	445
Unrealized losses on trading securities	(200		)
Realized gains on trading securities	1,850
Change in unrealized losses included in accumulated other comprehensive loss	(68		)
Balance, end of year	$	8,489

Changes in Carrying Value of Assets and Liabilities Measured at Fair Value on Non-recurring Basis

Fair Value of Financial Instruments

The fair value of financial instruments required to be disclosed at fair value, excluding instruments valued on a recurring basis, is as follows (in thousands):



	March 31, 2015				December 31, 2014
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Borrowings:
Real estate debt	$	10,035	$	11,131	$	10,088	$	11,197
Senior Notes	10,000		13,177		10,000		12,820
Other debt	1,139		1,139		324		324
	$	21,174	$	25,447	$	20,412	$	24,341

RSO [Member]

Variable Interest Entity [Line Items]

Condensed Financial Statements

The following reflects the assets and liabilities and operations of RSO which were consolidated by the Company:



RSO Balance Sheets Detail (in thousands):
	March 31, 2015			December 31, 2014
ASSETS ⁽¹⁾
Cash and cash equivalents	$	217,361		$	79,905
Restricted cash	26,768			122,138
Subtotal - Cash and cash equivalents	244,129			202,043
Investment securities, trading	29,770			20,786
Investment securities available-for-sale, pledged as collateral, at fair value	161,971			197,800
Investment securities available-for-sale, at fair value	122,099			77,920
Subtotal - Investments, at fair value	313,840			296,506
Loans, pledged as collateral and net of allowances of $7.4 million and $4.6 million	1,960,250			1,925,980
Loans receivable–related party	1,229			1,277
Loans held for sale	248,254			111,736
Subtotal - Loans, before eliminations	2,209,733			2,038,993
Eliminations	(558		)	(558		)
Subtotal - Loans	2,209,175			2,038,435
Property held for sale	180			180
Investments in unconsolidated entities	55,488			59,827
Subtotal, Investments in real estate and unconsolidated entities	55,668			60,007
Line items included in "other assets":
Linked transactions, net at fair value	—			15,367
Derivatives, at fair value	14,036			5,304
Interest receivable	18,111			16,260
Deferred tax asset	12,579			12,634
Principal paydown receivable	26,906			40,920
Direct financing leases	1,951			2,109
Intangible assets	9,229			9,736
Prepaid expenses	4,263			4,196
Other assets	22,761			24,604
Subtotal - Other assets, before eliminations	109,836			131,130
Eliminations	(2		)	(109		)
Subtotal - Other assets	109,834			131,021
Total assets (excluding eliminations)	$	2,933,206		$	2,728,679
Total assets (including eliminations)	$	2,932,646		$	2,728,012
LIABILITIES⁽²⁾
Borrowings	$	1,924,598		$	1,716,871
Eliminations	334			205
Subtotal Borrowings	1,924,932			1,717,076
Distribution payable	25,521			30,592
Accrued interest expense	5,437			2,123
Derivatives, at fair value	8,860			8,476
Accrued tax liability	6,982			9,219
Accounts payable and other liabilities	13,091			9,287
Subtotal - Other liabilities, before eliminations	59,891			59,697
Eliminations	(2,684		)	(2,446		)
Subtotal - Other liabilities	57,207			57,251
Total liabilities (before eliminations)	$	1,984,489		$	1,776,568
Total liabilities (after eliminations)	$	1,982,139		$	1,774,327



RSO Balance Sheets Detail (in thousands):
	March 31, 2015			December 31, 2014
(1) Assets of consolidated Variable Interest Entities ("VIE") included in total assets above:
Cash and cash equivalents	$	133		$	25
Restricted cash	25,262			121,247
Investments securities available-for-sale, pledged as collateral, at fair value	94,658			119,203
Loans held for sale	73,892			282
Loans, pledged as collateral and net of allowances of $4.2 million and $3.3 million	1,445,136			1,261,137
Interest receivable	9,895			8,941
Prepaid expenses	193			221
Principal paydown receivable	26,700			25,767
Other assets	(742		)	(12		)
Total assets of consolidated RSO VIEs	$	1,675,127		$	1,536,811

(2) Liabilities of consolidated VIEs included in total liabilities above :
Borrowings	$	1,170,687		$	1,046,494
Accrued interest expense	1,329			1,000
Derivatives, at fair value	7,305			8,439
Unsettled loan purchases	—			(529		)
Accounts payable and other liabilities	56			(386		)
Total liabilities of consolidated RSO VIEs	$	1,179,377		$	1,055,018



RSO Income Statement Detail (in thousands):
	For the Three Months Ended
	March 31,
	2015			2014
REVENUES
Interest income:
Loans	$	32,663		$	20,229
Securities	4,052			4,004
Leases	95			—
Interest income − other	832			2,852
Total interest income	37,642			27,085
Interest expense	14,902			9,628
Net interest income	22,740			17,457
Rental income	—			5,152
Dividend income	16			136
Fee income	1,605			2,500
Revenues from consolidated VIE-RSO	24,361			25,245
OPERATING EXPENSES
Management fees − related party	3,560			3,080
Equity compensation − related party	995			1,667
Rental operating expense	6			3,396
Lease operating	23			—
General and administrative - Corporate	4,783			2,840
General and administrative - PCM	7,079			3,426
Depreciation and amortization	565			836
Impairment losses	59			—
Provision (recovery) for loan losses	3,990			(3,960		)
Total operating expenses	21,060			11,285
Expenses of consolidated VIE-RSO	21,060			11,285
Adjusted operating income	3,301			13,960
OTHER INCOME (EXPENSE)
Equity in earnings of unconsolidated subsidiaries	706			2,014
Net realized gain (loss) on sales of investment securities available-for-sale and loans and derivatives	14,423			2,088
Net realized and unrealized gains (loss) on investment securities, trading	2,074			(1,560		)
Unrealized gain (loss) and net interest income on linked transactions, net	235			2,305
(Loss) on reissuance/ gain on extinguishment of debt	(900		)	(69		)
(Loss) gain on sale of real estate	(22		)	—
Other income (expense)	—			(1,262		)
Other income, net, from consolidated VIE - RSO	16,516			3,516
Income from continuing operations	19,817			17,476
Income tax (expense) benefit - RSO	(1,847		)	(16		)
NET INCOME (LOSS)	17,970			17,460
Net (loss) income allocated to preferred shares	(6,091		)	(2,400		)
Net (income) loss allocable to non-controlling interest, net of taxes	(2,477		)	56
NET INCOME (LOSS) ALLOCABLE TO RSO COMMON SHAREHOLDERS	$	9,402		$	15,116



RSO Cash Flow Detail (in thousands)	Three Months Ended
	March 31,
	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	17,970		$	17,460
Items included in "Change in cash attributable to consolidated VIE-RSO":
Provision (recovery of) for loan losses	3,990			(3,960		)
Depreciation of investments in real estate and other	139			392
Amortization of intangible assets	507			444
Amortization of term facilities	115			534
Accretion (amortization) of net discounts (premiums) on loans held for investment	(338		)	(574		)
Accretion (amortization) of net discounts (premiums) on securities available-for-sale	837			(769		)
Amortization (accretion) of discount (premium) on notes of securitization	463			434
Amortization of debt issuance costs on notes of securitizations	1,066			796
Amortization of stock-based compensation	995			1,667
Amortization of (accretion) of terminated derivative instruments	67			70
Accretion (amortization) of interest-only available-for-sales securities	873			(137		)
Deferred income tax (benefit) expense	(48		)	(89		)
Purchase of mortgage loans held for sale, net	(58,136		)	(877		)
Purchase of securities, trading	(16,268		)	—
Principal payments on securities, trading	—			42
Proceeds from sales of securities, trading	8,095			—
Net realized and unrealized loss (gain) on investment securities, trading	(2,074		)	1,560
Net realized (gains) loss on sales of investment securities available-for-sale and loans	(14,423		)	(3,680		)
Loss (gain) on reissuance (extinguishment) of debt	900			69
Loss (gain) on sale of real estate	22			—
Settlement of derivative instruments	82			—
Net impairment losses recognized in earnings	59			—
Linked transactions fair value adjustments	(235		)	(1,763		)
Equity in net (earnings) losses of unconsolidated subsidiaries	(706		)	(2,014		)
Changes in operating assets and liabilities, net of acquisitions	65,786			9,563
Net cash (used in) provided by operating activities	(8,232		)	1,708
Change in consolidated VIE-RSO cash for the period	(137,456		)	95,584
Subtotal - Change in cash attributable to consolidated VIE-RSO before eliminations	(145,688		)	97,292
Elimination of intercompany activity	(27		)	(28		)
Subtotal - Adjustments to reconcile net income and operating cash flows to net income of consolidated VIE-RSO	(145,715		)	97,264
Net cash provided by operating activities of consolidated VIE-RSO (excluding eliminations)	9,738			19,168



	Three Months Ended
	March 31,
	2015		2014
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of loans	(207,983	)	(169,380	)
Purchase of securities available-for-sale	(4,000	)	(48,321	)
Subtotal - Purchase of loans and securities by consolidated VIE-RSO, before eliminations	(211,983	)	(217,701	)
Principal payments received on loans	91,294		90,948
Proceeds from sale of loans	16,922		15,974
Principal payments on securities available-for-sale	37,860		17,325
Proceeds from sale of securities available-for-sale	7,113		12,314
Principal payments received on loans - related parties	—		753
Subtotal - principal payments and proceeds from sales received by consolidated VIE-RSO, before eliminations	153,189		137,314

(Increase) decrease in restricted cash	33,230		(12,849	)

Items included in "Other investing activity of consolidated VIE-RSO":
Return of capital from (investment in) unconsolidated entity	4,391		5,650
Acquisition of controlling interest in Moselle CLO S.A.	—		(30,433	)
Investment in loans - related parties	(903	)	(285	)
Purchase of furniture and fixtures	—		(38	)
Acquisition of property and equipment	(171	)	(269	)
Subtotal - Other investing activity of consolidated VIE-RSO, before eliminations	3,317		(25,375	)
Eliminations	—		(391	)
Subtotal - Other investing activity of consolidated VIE-RSO	3,317		(25,766	)
Net cash used in investing activities of consolidated VIE-RSO (excluding eliminations)	(22,247	)	(118,611	)



	Three Months Ended
	March 31,
	2015			2014
CASH FLOWS FROM FINANCING ACTIVITIES:
Items included in "Net borrowings (repayments) of debt by consolidated VIE-RSO"
Proceeds from borrowings:
Repurchase agreements, net of repayments	—			75,877
Senior secured revolving credit facility, net of repayments	21,500			—
CRE Securitization	282,127			—
Reissuance of debt	8,100			—
Convertible senior notes	99,000			—
Payments on borrowings:
Collateralized debt obligations	(161,713		)	(59,668		)
Repurchase agreements, net of borrowings	(64,812		)	—
Subtotal - net borrowings of debt by consolidated VIE-RSO	184,202			16,209
Distributions paid on common stock	(26,563		)	(25,536		)
Elimination of dividends paid to RAI	478			572
Distributions paid on common stock of consolidated VIE-RSO, after eliminations	(26,085		)	(24,964		)
Net proceeds from issuances of common stock (net of offering costs of $0 and $0)	—			245
Net proceeds from dividend reinvestment and stock purchase plan (net of offering costs of $0 and $0)	106			—
Repurchase of common stock	(5		)	—
Proceeds from issuance of 8.5% Series A redeemable preferred shares (net of offering costs of $0 and $0)	—			4,440
Proceeds from issuance of 8.25% Series B redeemable preferred shares (net of offering costs of $111 and $565)	3,002			10,975
Subtotal - net proceeds from issuance of stock by consolidated VIE-RSO	3,103			15,660
Payment of debt issuance costs	(6,639		)	(8		)
Settlement of derivative instruments	3,091			—
Distributions paid to non-controlling interests	(2,987		)	—
Proceeds received from non-controlling interests	1,802			—
Payment of equity to third party sub-note holders	—			(307		)
Distributions paid on preferred stock	(6,044		)	(2,159		)
Subtotal - Other consolidated financing activity of consolidated VIE-RSO, before eliminations	(10,777		)	(2,474		)
Eliminations	100			—
Subtotal - Other consolidated financing activity of consolidated VIE-RSO	(10,677		)	(2,474		)
Net cash provided by financing activities of consolidated VIE-RSO, excluding eliminations	149,965			3,859
Net increase (decrease) in cash and cash equivalents	137,456			(95,584		)
Cash and cash equivalents, beginning of year of consolidated VIE-RSO	79,905			262,270
Cash and cash equivalents, end of period of consolidated VIE-RSO	$	217,361		$	166,686

Supplemental disclosures:
Interest expense paid in cash	$	9,378		$	8,576
Income taxes paid in cash	$	1,739		$	1,774

Schedule of Variable Interest Entities

The following table shows the classification and carrying value of assets and liabilities of RSO's consolidated VIEs as of March 31, 2015 (in thousands):



	Apidos I		Apidos III			Apidos Cinco		Whitney CLO I		RREF 2006-1		RREF 2007-1		RCC CRE Notes 2013		RCC 2014-CRE2		RCC 2015-CRE3		Moselle		RCM Global, LLC			Total
ASSETS
Cash and cash equivalents	$	—	$	—		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	133		$	133
Restricted cash ⁽¹⁾	76		4,519			17,227		116		18		250		2,514		—		5		537		—			25,262
Investment securities available-for-sale, pledged as collateral, at fair value	—		2,856			10,891		—		5,777		57,930		—		—		—		—		17,204			94,658
Loans, pledged as collateral	153		(79		)	223,524		—		125,373		199,987		204,181		350,362		341,635		—		—			1,445,136
Loans held for sale	—		71,611			2,281		—		—		—		—		—		—		—		—			73,892
Interest receivable	—		433			744		—		2,485		2,081		1,081		1,377		1,285		—		409			9,895
Prepaid assets	—		15			40		—		47		48		43		—		—		—		—			193
Principal paydown receivable	—		—			—		—		—		5,775		20,925		—		—		—		—			26,700
Other assets	—		—			—		—		—		—		—		9		—		—		(751		)	(742		)
Total assets ⁽²⁾	$	229	$	79,355		$	254,707	$	116	$	133,700	$	266,071	$	228,744	$	351,748	$	342,925	$	537	$	16,995		$	1,675,127

LIABILITIES
Borrowings	$	—	$	67,028		$	229,644	$	—	$	52,958	$	131,717	$	179,547	$	231,662	$	278,011	$	120	$	—		$	1,170,687
Accrued interest expense	—		45			234		—		42		148		289		195		376		—		—			1,329
Derivatives, at fair value	—		—			—		—		608		6,697		—		—		—		—		—			7,305
Accounts payable and other liabilities	—		33			13		—		4		1		—		—		3		—		2			56
Total liabilities	$	—	$	67,106		$	229,891	$	—	$	53,612	$	138,563	$	179,836	$	231,857	$	278,390	$	120	$	2		$	1,179,377


(1)	Includes $2.8 million available for reinvestment in certain of the securitizations.


(2)	Assets of each of the consolidated VIEs may only be used to settle the obligations of each respective VIE.

The following table shows the classification, carrying value and maximum exposure to loss with respect to RSO’s unconsolidated VIEs as of March 31, 2015 (in thousands):



	Unconsolidated Variable Interest Entities
	LEAF		Unsecured Junior Subordinated Debentures			Resource Capital Asset Management CDOs		Total			Maximum Exposure to Loss
Investment in unconsolidated entities	$	39,469	$	1,548		$	—	$	41,017		41,017
Intangible assets	—		—			8,990		8,990			8,990
Total assets	39,469		1,548			8,990		50,007

Borrowings	—		51,256			—		51,256			N/A
Total liabilities	—		51,256			—		51,256			N/A
Net asset (liability)	$	39,469	$	(49,708	)	8,990		$	(1,249	)	N/A

Supplemental Cash Flow Information

Supplemental disclosure of cash flow information is summarized for the periods indicated (in thousands):



	Three Months Ended
	March 31,
	2015		2014
Non-cash investing activities include the following:
Conversion of linked transactions assets to CMBS ⁽¹⁾	$	48,605	$	—

Non-cash financing activities include the following:
Distributions on common stock declared but not paid	$	21,423	$	25,663
Distributions on preferred stock declared but not paid	$	6,116	$	2,520
Issuance of restricted stock	$	1,163	$	640
Conversion of linked transaction liabilities to repurchase agreement borrowings ⁽¹⁾	$	33,377	$	—

Investment Trading Securities at Fair Value

The following table summarizes RSO's structured notes and RMBS that are classified as investment securities, trading and carried at fair value (in thousands). Structured notes are CLO debt securities collateralized by syndicated bank loans, and RMBS is a type of mortgage-backed debt obligation whose cash flows come from residential debt.



	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
As of March 31, 2015:
Structured notes	$	30,308	$	2,063	$	(2,601	)	$	29,770
RMBS	1,896		—		(1,896		)	—
Total	$	32,204	$	2,063	$	(4,497	)	$	29,770

As of December 31, 2014:
Structured notes	$	22,876	$	1,098	$	(3,188	)	$	20,786
RMBS	1,896		—		(1,896		)	—
Total	$	24,772	$	1,098	$	(5,084	)	$	20,786

Available-for-sale Securities

The following table summarizes RSO's investment securities, including those pledged as collateral and classified as available-for-sale, which are carried at fair value (in thousands):



	Amortized Cost ⁽¹⁾		Unrealized Gains		Unrealized Losses			Fair Value
As of March 31, 2015:
CMBS	$	188,052	$	6,450	$	(734	)	$	193,768
RMBS	28,964		1,192		—			30,156
ABS	45,889		12,233		(387		)	57,735
Corporate bonds	2,417		14		(20		)	2,411
Total	$	265,322	$	19,889	$	(1,141	)	$	284,070

As of December 31, 2014:
CMBS	$	168,669	$	4,938	$	(3,202	)	$	170,405
RMBS	29,814		937		—			30,751
ABS	55,617		16,876		(336		)	72,157
Corporate bonds	2,415		10		(18		)	2,407
Total	$	256,515	$	22,761	$	(3,556	)	$	275,720


(1)	As of March 31, 2015 and December 31, 2014, $162.0 million and $197.8 million, respectively, of investment securities available-for-sale were pledged as collateral under related financings.

The following table summarizes RSO's sales of investment securities available-for-sale, (in thousands, except number of securities):



	For the Three Months Ended
	Positions Sold	Par Amount Sold		Realized Gain (Loss)
March 31, 2015
ABS	4	$	9.411	$	2.669

March 31, 2014
CMBS	3	$	12,500	$	(298	)

Estimated maturities of available for sale securities

The following table summarizes the estimated maturities of RSO’s CMBS, RMBS, ABS and corporate bonds according to their estimated weighted average life classifications (in thousands, except percentages):



Weighted Average Life	Fair Value			Amortized Cost		Weighted Average Coupon
As of March 31, 2015:
Less than one year	$	84,119	⁽¹⁾	$	82,983	4.97	%
Greater than one year and less than five years	125,176			113,882		8.34	%
Greater than five years and less than ten years	16,808			14,358		10.86	%
Greater than ten years	57,967			54,099		6.50	%
Total	$	284,070		$	265,322	7.12	%

As of December 31, 2014:
Less than one year	$	78,095	⁽¹⁾	$	79,649	4.13	%
Greater than one year and less than five years	115,302			100,909		4.64	%
Greater than five years and less than ten years	20,177			17,516		16.45	%
Greater than ten years	62,146			58,441		7.86	%
Total	$	275,720		$	256,515	6.08	%

Unrealized Losses Along with the Related Fair Value, Aggregated by the Length of Time the Investments were in a Continuous Unrealized Loss Position

The following table shows the fair value, gross unrealized losses and number of securities aggregated by investment category and length of time, of those individual investment securities available-for-sale that have been in a continuous unrealized loss position during the periods specified (in thousands, except number of securities):



	Less than 12 Months						More than 12 Months						Total
	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses			Number of Securities
As of March 31, 2015:
CMBS	$	25,380	$	(220	)	19	$	16,396	$	(514	)	12	$	41,776	$	(734	)	31
ABS	197		(1		)	1	1,388		(386		)	9	1,585		(387		)	10
Corporate Bonds	1,447		(20		)	1	—		—			—	1,447		(20		)	1
Total temporarily impaired securities	$	27,024	$	(241	)	21	$	17,784	$	(900	)	21	$	44,808	$	(1,141	)	42

As of December 31, 2014:
CMBS	$	35,860	$	(555	)	22	$	25,583	$	(2,647	)	13	$	61,443	$	(3,202	)	35
ABS	1,000		(278		)	8	958		(58		)	3	1,958		(336		)	11
Corporate Bonds	1,447		(18		)	1	—		—			—	1,447		(18		)	1
Total temporarily impaired securities	$	38,307	$	(851	)	31	$	26,541	$	(2,705	)	16	$	64,848	$	(3,556	)	47

Schedule of Receivables with Imputed Interest

The following is a summary of RSO’s loans (in thousands):



Loan Description	Principal			Unamortized (Discount) Premium ⁽¹⁾			Carrying Value ⁽²⁾
As of March 31, 2015:
Commercial real estate loans:
Whole loans	$	1,370,303		$	(7,921	)	$	1,362,382
B notes	16,070			(39		)	16,031
Mezzanine loans	67,535			(64		)	67,471
Total commercial real estate loans	1,453,908			(8,024		)	1,445,884
Bank loans	225,216			(899		)	224,317
Middle market loans	295,478			(685		)	294,793
Residential mortgage loans, held for investment	2,641			—			2,641
Subtotal loans before allowances	1,977,243			(9,608		)	1,967,635
Allowance for loan loss	(7,385		)	—			(7,385		)
Total loans held for investment, net of allowances	1,969,858			(9,608		)	1,960,250
Bank loans held-for-sale	73,892			—			73,892
Residential mortgage loans held-for-sale, at fair value⁽³⁾	174,559			(197		)	174,362
Total loans held-for-sale	248,451			(197		)	248,254
Total loans, net	$	2,218,309		$	(9,805	)	$	2,208,504

As of December 31, 2014:
Commercial real estate loans:
Whole loans	$	1,271,121		$	(7,529	)	$	1,263,592
B notes	16,120			(48		)	16,072
Mezzanine loans	67,446			(80		)	67,366
Total commercial real estate loans	1,354,687			(7,657		)	1,347,030
Bank loans	332,058			(1,410		)	330,648
Middle market loans	250,859			(746		)	250,113
Residential mortgage loans, held for investment	2,802			—			2,802
Subtotal loans before allowances	1,940,406			(9,813		)	1,930,593
Allowance for loan loss	(4,613		)	—			(4,613		)
Total loans, net of allowances	1,935,793			(9,813		)	1,925,980
Bank loans held-for-sale	282			—			282
Residential mortgage loans held-for-sale, at fair value ⁽³⁾	111,454			—			111,454
Total loans held-for-sale	111,736			—			111,736
Total loans, net	$	2,047,529		$	(9,813	)	$	2,037,716


(1)	Amounts include deferred amendment fees of $110,000 and $88,000 and deferred upfront fees of $68,000 and $82,000 being amortized over the life of the bank loans as of March 31, 2015 and December 31, 2014, respectively. Amounts include loan origination fees of $8.0 million and $7.6 million as of March 31, 2015 and December 31, 2014, respectively.


(2)	Substantially all loans are pledged as collateral under various borrowings at March 31, 2015 and December 31, 2014, respectively.

(3)

Residential mortgage loans held for sale, at fair value consisted of $58.3 million and $116.1 million of agency-conforming and jumbo mortgage loans, respectively, as of March 31, 2015. Residential mortgage loans held for sale, at fair value consisted of $28.9 million and $82.6 million of agency-conforming and jumbo mortgage loans, respectively, as of December 31, 2014. Unamortized discount includes an unrealized mark to market loss of $197,000 as of March 31, 2015.

Schedule of Equity Method Investments

The following table shows RSO's investments in unconsolidated entities as of March 31, 2015 and December 31, 2014 and equity in net earnings (losses) of unconsolidated subsidiaries for the three months ended March 31, 2015 and 2014 (in thousands):



						Equity in Net Earnings (Losses) of Unconsolidated Subsidiary
		Balance as of		Balance as of		For the three months ended		For the three months ended
	Ownership %	March 31, 2015		December 31, 2014		March 31, 2015		March 31, 2014
Värde Investment Partners, L.P.	7.5%	$	654	$	654	$	—	$	(1	)
RRE VIP Borrower, LLC ⁽¹⁾	3% to 5%	—		—		46		866
Investment in LEAF Preferred Stock	28.4%	39,469		39,416		52		(594		)
Investment in CVC Global Credit Opportunities Fund	20.6%	13,817		18,209		608		834
Investment in Life Care Funding⁽²⁾	50.2%	—		—		—		(75		)
Investment in School Lane House ⁽¹⁾		—		—		—		984
Subtotal		53,940		58,279		706		2,014
Investment in RCT I and II ⁽³⁾	3%	1,548		1,548		593		589
Investment in Preferred Equity⁽¹⁾⁽⁴⁾		—		—		—		1,228
Total		$	55,488	$	59,827	$	1,299	$	3,831


(1)	Investment in School Lane House, Investment in RRE VIP Borrower and the Investment in Preferred Equity were sold or repaid as of December 31, 2014.


(2)	In January 2013, Long Term Care Conversion ("LTCC") invested $2.0 million into Life Care Funding, LLC ("LCF") for the purpose of originating and acquiring life settlement contracts. In February 2014, RSO invested an additional $1.4 million which resulted in the consolidation of LCF during the first quarter of 2014. Ownership percentage represents ownership after consolidation.


(3)	For the three months ended March 31, 2015 and 2014, these amounts are recorded in interest expense on RSO's consolidated statements of income.

(4) For the three months ended March 31, 2014, these amounts are recorded in interest income on loans on RSO's consolidated statements of income.

Summary of Activity in the Allowance for Credit Losses for the Company's Financing Receivables

The following tables show the allowance for loan losses and recorded investments in loans for the years indicated (in thousands):



	Commercial Real Estate Loans			Bank Loans			Middle Market Loans			Residential Mortgage Loans			Loans Receivable-Related Party			Total
As of March 31, 2015:
Allowance for Loan Losses:
Allowance for losses at January 1, 2015	$	4,043		$	570		$	—		$	—		$	—		$	4,613
Provision (recovery) for loan losses	—			1,415			2,566			197			(188		)	3,990
Loans charged-off	—			(1,265		)	(54		)	(197		)	188			(1,328		)
Recoveries	—			—			—			110			—			110
Allowance for losses at March 31, 2015	$	4,043		$	720		$	2,512		$	110		$	—		$	7,385
Ending balance:
Individually evaluated for impairment	$	2,202		$	86		$	2,512		$	—		$	—		$	4,800
Collectively evaluated for impairment	$	1,841		$	634		$	—		$	110		$	—		$	2,585
Loans acquired with deteriorated credit quality	$	—		$	—		$	—		$	—		$	—		$	—
Loans:
Ending balance: ⁽¹⁾
Individually evaluated for impairment	$	166,180		$	215		$	294,793		$	—		$	1,229		$	462,417
Collectively evaluated for impairment	$	1,279,704		$	297,994		$	—		$	2,641		$	—		$	1,580,339
Loans acquired with deteriorated credit quality	$	—		$	—		$	—		$	—		$	—		$	—

As of December 31, 2014:
Allowance for Loan Losses:
Allowance for losses at January 1, 2014	$	10,416		$	3,391		$	—		$	—		$	—		$	13,807
Provision for loan losses	(3,758		)	4,173			92			—			1,297			1,804
Loans charged-off	(2,615		)	(6,994		)	(92		)	—			(1,297		)	(10,998		)
Allowance for losses at December 31, 2014	$	4,043		$	570		$	—		$	—		$	—		$	4,613
Ending balance:
Individually evaluated for impairment	$	—		$	570		$	—		$	—		$	—		$	570
Collectively evaluated for impairment	$	4,043		$	—		$	—		$	—		$	—		$	4,043
Loans acquired with deteriorated credit quality	$	—		$	—		$	—		$	—		$	—		$	—
Loans:
Ending balance: ⁽¹⁾
Individually evaluated for impairment	$	166,180		$	1,350		$	250,113		$	—		$	1,277		$	418,920
Collectively evaluated for impairment	$	1,180,850		$	329,580		$	—		$	2,802		$	—		$	1,513,232
Loans acquired with deteriorated credit quality	$	—		$	—		$	—		$	—		$	—		$	—

Financing Receivable Credit Quality Indicators

Credit risk profiles of middle market loans were as follows (in thousands):



	Rating 1		Rating 2		Rating 3		Rating 4		Rating 5		Held for Sale		Total
As of March 31, 2015:
Middle market loans	$	—	$	284,937	$	4,900	$	—	$	4,956	$	—	$	294,793

As of December 31, 2014:
Middle market loans	$	—	$	240,245	$	9,868	$	—	$	—	$	—	$	250,113

Credit risk profiles of commercial real estate loans were as follows (in thousands):



	Rating 1		Rating 2		Rating 3		Rating 4		Held for Sale		Total
As of March 31, 2015:
Whole loans	$	1,329,882	$	32,500	$	—	$	—	$	—	$	1,362,382
B notes	16,031		—		—		—		—		16,031
Mezzanine loans	45,417		22,054		—		—		—		67,471
	$	1,391,330	$	54,554	$	—	$	—	$	—	$	1,445,884

As of December 31, 2014:
Whole loans	$	1,231,092	$	32,500	$	—	$	—	$	—	$	1,263,592
B notes	16,072		—		—		—		—		16,072
Mezzanine loans	45,432		21,934		—		—		—		67,366
	$	1,292,596	$	54,434	$	—	$	—	$	—	$	1,347,030

Credit risk profiles of bank loans were as follows (in thousands):



	Rating 1		Rating 2		Rating 3		Rating 4		Rating 5		Held for Sale		Total
As of March 31, 2015:
Bank loans	$	200,966	$	16,081	$	5,257	$	1,798	$	215	$	73,892	$	298,209

As of December 31, 2014:
Bank loans	$	291,214	$	32,660	$	5,424	$	—	$	1,350	$	282	$	330,930

Aging of the Company's Past Due Financing Receivables, Gross of Allowances for Credit Losses

The following table shows the loan portfolio aging analysis as of the dates indicated at cost basis (in thousands):



	30-59 Days		60-89 Days		Greater than 90 Days		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days and Accruing
As of March 31, 2015:
Whole loans	$	—	$	—	$	—	$	—	$	1,362,382	$	1,362,382	$	—
B notes	—		—		—		—		16,031		16,031		—
Mezzanine loans	—		—		—		—		67,471		67,471		—
Bank loans ⁽¹⁾	—		—		215		215		297,994		298,209		—
Middle market loans	—		—		—		—		294,793		294,793		—
Residential mortgage loans ⁽²⁾	420		—		88		508		176,692		177,200		—
Loans receivable-related party	—		—		—		—		1,229		1,229		—
Total loans	$	420	$	—	$	303	$	723	$	2,216,592	$	2,217,315	$	—

As of December 31, 2014:
Whole loans	$	—	$	—	$	—	$	—	$	1,263,592	$	1,263,592	$	—
B notes	—		—		—		—		16,072		16,072		—
Mezzanine loans	—		—		—		—		67,366		67,366		—
Bank loans ⁽¹⁾	—		—		1,350		1,350		329,580		330,930		—
Middle market loans	—		—		—		—		250,113		250,113		—
Residential mortgage loans ⁽²⁾	443		82		119		644		113,612		114,256		—
Loans receivable-related party	—		—		—		—		1,277		1,277		—
Total loans	$	443	$	82	$	1,469	$	1,994	$	2,041,612	$	2,043,606	$	—

Information about Company's Impaired Financing Receivables

The following tables show impaired loans as of the dates indicated (in thousands):



	Recorded Balance		Unpaid Principal Balance		Specific Allowance			Average Investment in Impaired Loans		Interest Income Recognized
As of March 31, 2015:
Loans without a specific valuation allowance:
Whole loans	$	128,108	$	128,108	$	—		$	130,445	$	13,617
B notes	$	—	$	—	$	—		$	—	$	—
Mezzanine loans	$	38,072	$	38,072	$	—		$	38,072	$	3,186
Bank loans	$	—	$	—	$	—		$	—	$	—
Middle market loans	$	—	$	—	$	—		$	—	$	—
Residential mortgage loans	$	2,641	$	2,641	$	—		$	2,641	$	21
Loans receivable - related party	$	—	$	—	$	—		$	—	$	—
Loans with a specific valuation allowance:
Whole loans	$	—	$	—	$	—		$	—	$	—
B notes	$	—	$	—	$	—		$	—	$	—
Mezzanine loans	$	—	$	—	$	—		$	—	$	—
Bank loans	$	215	$	215	$	(86	)	$	—	$	—
Middle market loans	$	4,956	$	4,956	$	(2,512	)	$	—	$	—
Residential mortgage loans	$	—	$	—	$	—		$	—	$	—
Loans receivable - related party	$	—	$	—	$	—		$	—	$	—

Total:
Whole loans	$	128,108	$	128,108	$	—		$	130,445	$	13,617
B notes	—		—		—			—		—
Mezzanine loans	38,072		38,072		—			38,072		3,186
Bank loans	215		215		(86		)	—		—
Middle market loans	4,956		4,956		(2,512		)	—		—
Residential mortgage loans	2,641		2,641		—			2,641		21
Loans receivable - related party	—		—		—			—		—
	$	173,992	$	173,992	$	(2,598	)	$	171,158	$	16,824



	Recorded Balance		Unpaid Principal Balance		Specific Allowance			Average Investment in Impaired Loans		Interest Income Recognized
As of December 31, 2014:
Loans without a specific valuation allowance:
Whole loans	$	128,108	$	128,108	$	—		$	130,445	$	12,679
B notes	$	—	$	—	$	—		$	—	$	—
Mezzanine loans	$	38,072	$	38,072	$	—		$	38,072	$	2,859
Bank loans	$	—	$	—	$	—		$	—	$	—
Middle market loans	$	—	$	—	$	—		$	—	$	—
Residential mortgage loans	$	2,082	$	2,082	$	—		$	2,082	$	148
Loans receivable - related party	$	—	$	—	$	—		$	—	$	—
Loans with a specific valuation allowance:
Whole loans	$	—	$	—	$	—		$	—	$	—
B notes	$	—	$	—	$	—		$	—	$	—
Mezzanine loans	$	—	$	—	$	—		$	—	$	—
Bank loans	$	1,350	$	1,350	$	(570	)	$	—	$	—
Middle market loans	$	—	$	—	$	—		$	—	$	—
Residential mortgage loans	$	—	$	—	$	—		$	—	$	—
Loans receivable - related party	$	—	$	—	$	—		$	—	$	—

Total:
Whole loans	$	128,108	$	128,108	$	—		$	130,445	$	12,679
B notes	—		—		—			—		—
Mezzanine loans	38,072		38,072		—			38,072		2,859
Bank loans	1,350		1,350		(570		)	—		—
Middle market loans	—		—		—			—		—
Residential mortgage loans	2,082		2,082		—			2,082		148
Loans receivable - related party	—		—		—			—		—
	$	169,612	$	169,612	$	(570	)	$	170,599	$	15,686

Troubled Debt Restructurings on Financing Receivables

The following tables show troubled-debt restructurings in RSO's loan portfolio (in thousands):



	Number of Loans	Pre-Modification Outstanding Recorded Balance		Post-Modification Outstanding Recorded Balance
Three Months Ended March 31, 2015:
Whole loans	2	$	67,459	$	67,459
B notes	—	—		—
Mezzanine loans	—	—		—
Bank loans	—	—		—
Middle market loans	—	—		—
Residential mortgage loans	—	—		—
Loans receivable - related party	—	—		—
Total loans	2	$	67,459	$	67,459

Schedule of Intangible Assets and Goodwill

The following table summarizes intangible assets (in thousands).



	Asset Balance		Accumulated Amortization			Net Asset
As of March 31, 2015:
Investment in RCAM	$	21,213	$	(12,223	)	$	8,990
Investments in PCM:
Wholesale or correspondent relationships	600		(361		)	239
Total intangible assets	$	21,813	$	(12,584	)	$	9,229

As of December 31, 2014:
Investment in RCAM	$	21,213	$	(11,779	)	$	9,434
Investments in PCM:
Wholesale or correspondent relationships	600		(298		)	302
Total intangible assets	$	21,813	$	(12,077	)	$	9,736

Schedule Loan Servicing Portfolio

The activity in the loan servicing portfolio associated with capitalized servicing rights consisted of (in thousands):



	March 31, 2015		December 31, 2014
Balance, beginning of period	$	894,767	$	433,153
Additions	212,390		519,915
Payoffs, sales and curtailments	53,151		(58,301		)
Balance, end of period	$	1,160,308	$	894,767

The activity in capitalized MSRs is recorded in other assets and consists of the followings (in thousands):



	March 31, 2015			December 31, 2014
Balance, beginning of period	$	9,374		$	4,885
Amortization	(825		)	(1,957		)
Additions	2,936			6,446
Sales	—			—
Balance, end of period	11,485			9,374
Temporary fair value adjustment	(1,050		)	—
Balance, end of period	$	10,435		$	9,374

Schedule of Servicing Fees

These cash flows include contractually specified servicing fees, late fees and other ancillary servicing revenue and were recorded within fee income as follows (in thousands):



	For the Three Months Ended
	March 31,
	2015		2014
Servicing fees from capitalized portfolio	$	551	$	308
Late fees	$	23	$	22
Other ancillary servicing revenue	$	3	$	4

Debt and Credit Facilities

Certain information with respect to RSO’s borrowings is summarized in the following table (in thousands, except percentages):



	Principal Outstanding		Unamortized Issuance Costs and Discounts		Outstanding Borrowings		Weighted Average Borrowing Rate	Weighted Average Remaining Maturity	Value of Collateral
As of March 31, 2015:
RREF CDO 2006-1 Senior Notes	$	52,957	$	—	$	52,957	2.31%	31.4 years	$	130,727
RREF CDO 2007-1 Senior Notes	131,780		63		131,717		1.14%	31.5 years	258,175
RCC CRE Notes 2013 Senior Notes	182,040		2,493		179,547		2.28%	13.7 years	205,386
RCC 2014-CRE2 Senior Notes	235,344		3,682		231,662		1.47%	17.1 years	349,063
RCC 2015-CRE3 Senior Notes	282,127		4,116		278,011		2.07%	17.0 years	339,654
Apidos CDO III Senior Notes	67,028		—		67,028		1.28%	5.5 years	78,957
Apidos Cinco CDO Senior Notes	229,716		72		229,644		0.87%	5.1 years	252,826
Moselle CLO S.A. Securitized Borrowings, at fair value ⁽¹⁾	120		—		120		N/A	N/A	537
Unsecured Junior Subordinated Debentures ⁽²⁾	51,548		292		51,256		4.21%	21.6 years	—
6.0% Convertible Senior Notes	115,000		6,182		108,818		6.00%	3.7 years	—
8% Convertible Senior Notes	100,000		7,052		92,948		8.00%	4.8 years	—
CRE - Term Repurchase Facilities ⁽³⁾	93,734		1,583		92,151		2.21%	18 days	135,951
CMBS - Term Repurchase Facility ⁽⁴⁾	29,391		—		29,391		1.37%	18 days	35,977
Residential Investments - Term Repurchase Facility	104,547		125		104,422		2.43%	25 days	121,472
Residential Mortgage Financing Agreements	74,648		—		74,648		2.78%	130 days	95,479
CMBS - Short Term Repurchase Agreements ⁽⁵⁾	67,785		—		67,785		1.63%	18 days	94,857
Senior Secured Revolving Credit Agreement	135,000		2,507		132,493		2.68%	2.5 years	292,453
Total	$	1,952,765	$	28,167	$	1,924,598	2.46%	10.8 years	$	2,391,514



	Principal Outstanding		Unamortized Issuance Costs and Discounts		Outstanding Borrowings		Weighted Average Borrowing Rate	Weighted Average Remaining Maturity	Value of Collateral
As of December 31, 2014:
RREF CDO 2006-1 Senior Notes	$	61,423	—		$	61,423	2.12%	31.6 years	$	139,242
RREF CDO 2007-1 Senior Notes	130,340		133		130,207		1.19%	31.8 years	271,423
RCC CRE Notes 2013 Senior Notes	226,840		2,683		224,157		2.11%	14.0 years	249,983
RCC 2014-CRE2 Senior Notes	235,344		3,687		231,657		1.45%	17.3 years	346,585
Apidos CDO III Senior Notes	74,646		—		74,646		1.18%	5.7 years	85,553
Apidos Cinco CDO Senior Notes	255,664		201		255,463		0.81%	5.4 years	272,512
Moselle CLO S.A. Senior Notes, at fair value ⁽⁶⁾	63,321		—		63,321		1.49%	5.0 years	93,576
Moselle CLO S.A. Securitized Borrowings, at fair value⁽¹⁾	5,619		—		5,619		1.49%	5.0 years	—
Unsecured Junior Subordinated Debentures ⁽²⁾	51,548		343		51,205		4.19%	21.8 years	—
6.0% Convertible Senior Notes	115,000		6,626		108,374		6.00%	3.9 years	—
CRE - Term Repurchase Facilities ⁽³⁾	207,640		1,958		205,682		2.43%	20 days	297,571
CMBS - Term Repurchase Facility ⁽⁴⁾	24,967		—		24,967		1.35%	20 days	30,180
Residential Investments - Term Repurchase Facility ⁽⁶⁾	22,248		36		22,212		1.16%	1 day	27,885
Residential Mortgage Financing Agreements ⁽⁷⁾	102,576		—		102,576		2.78%	207 days	147,472
CMBS - Short Term Repurchase Agreements ⁽⁵⁾	44,225		—		44,225		1.63%	17 days	62,446
Senior Secured Revolving Credit Agreement	113,500		2,363		111,137		2.66%	2.7 years	262,687
Total	$	1,734,901	$	18,030	$	1,716,871	2.09%	10.0 years	$	2,287,115


(1)	The securitized borrowings were collateralized by the same assets as the Moselle CLO Senior Notes.


(2)	Amount represents junior subordinated debentures issued to RCT I and RCT II in May 2006 and September 2006, respectively.


(3)	Amounts also include accrued interest expense of $75,000 and $198,000 related to CRE repurchase facilities as of March 31, 2015 and December 31, 2014, respectively.


(4)	Amounts also include accrued interest expense of $13,000 and $12,000 related to CMBS repurchase facilities as of March 31, 2015 and December 31, 2014, respectively. Amounts do not reflect CMBS repurchase agreement borrowings that are components of linked transactions as of December 31, 2014.


(5)	Amounts also includes accrued interest expense of $39,000 and $31,000 related to CMBS short term repurchase facilities as of March 31, 2015 and December 31, 2014.


(6)	The fair value option was elected for the borrowings associated with Moselle CLO. As such, the outstanding borrowings and principal outstanding amounts are stated at fair value. The unpaid principal amounts of these borrowings were $63.3 million at December 31, 2014


(7)	Amounts also includes interest expense of $20,000 related to residential investment repurchase facilities as of December 31, 2014.

Schedule of Securitizations

The following table sets forth certain information with respect to RSO's securitizations:



Securitization	Closing Date	Maturity Dates	Reinvestment Period End	Total Note Paydowns as of March 31, 2015
				(in millions)
RREF CDO 2006-1 Senior Notes	August 2006	August 2046	September 2011	$	194.2
RREF CDO 2007-1 Senior Notes	June 2007	September 2046	June 2012	$	209.2
RCC CRE Notes 2013 Senior Notes	December 2013	December 2028	N/A	$	78.8
RCC 2014-CRE2 Senior Notes	July 2014	April 2032	N/A	$	—
RCC 2015-CRE3 Senior Notes	February 2015	March 2032	N/A	$	—
Apidos CDO III Senior Notes	May 2006	September 2020	June 2012	$	195.5
Apidos Cinco CDO Senior Notes	May 2007	May 2020	May 2014	$	92.3
Moselle CLO S.A. Securitized Borrowings	October 2005	January 2020	January 2012	$	5.0

Schedule of Short-term Debt

The following table sets forth certain information with respect to RSO's borrowings (dollars in thousands):



	March 31, 2015							December 31, 2014
	Outstanding Borrowings			Value of Collateral		Number of Positions as Collateral	Weighted Average Interest Rate	Outstanding Borrowings		Value of Collateral		Number of Positions as Collateral	Weighted Average Interest Rate
CMBS Term Repurchase Facility
Wells Fargo Bank	$	29,391		$	35,977	34	1.37%	$	24,967	$	30,180	33	1.35%

CRE Term Repurchase Facilities
Wells Fargo Bank ⁽¹⁾	92,296			135,951		5	2.21%	179,762		258,223		15	2.38%
Deutsche Bank AG ⁽²⁾	(145		)	—		—	—%	25,920		39,348		2	2.78%

Short-Term Repurchase Agreements - CMBS
Deutsche Bank Securities, LLC	53,249			70,928		8	1.62%	33,783		44,751		8	1.62%
Wells Fargo Securities, LLC	14,536			23,929		1	1.59%	10,442		17,695		1	1.66%

Residential Investment Term Repurchase Facility
Wells Fargo Bank ⁽³⁾	104,422			121,472		146	2.43%	22,212		27,885		6	1.16%

Residential Mortgage Financing Agreements
New Century Bank	46,419			53,689		231	2.80%	41,387		51,961		158	2.82%
Wells Fargo Bank	28,229			41,790		78	2.75%	61,189		95,511		104	2.75%
Totals	$	368,397		$	483,736			$	399,662	$	565,554


(1)	The Wells Fargo CRE term repurchase facility borrowing includes $1.4 million and $1.7 million of deferred debt issuance costs as of March 31, 2015 and December 31, 2014, respectively.


(2)	The Deutsche Bank term repurchase facility includes $145,000 and $268,000 of deferred debt issuance costs as of March 31, 2015 and December 31, 2014, respectively.


(3)	The Wells Fargo resident investments term repurchase facility includes $125,000 and $36,000 of deferred debt issuance costs as of March 31, 2015

Schedule of Linked Transactions

The assets in the following table were accounted for as linked transactions as of December 31, 2014 (in thousands). These linked repurchase agreements are not included in borrowings on RSO consolidated balance sheets.



	As of December 31, 2014
	Borrowings Under Linked Transactions ⁽¹⁾		Value of Collateral Under Linked Transactions		Number of Positions as Collateral Under Linked Transactions	Weighted Average Interest Rate of Linked Transactions
CMBS Term Repurchase Facility
Wells Fargo Bank	$	4,941	$	6,371	7	1.67%

Short-Term Repurchase Agreements - CMBS
JP Morgan Securities, LLC	—		—		—	—%
Wells Fargo Securities, LLC	4,108		6,233		2	1.37%
Deutsche Bank Securities, LLC	24,348		36,001		10	1.57%

Totals	$	33,397	$	48,605

Schedule of Amount at Risk under Credit Facility



	As of December 31, 2014
	Borrowings Under Linked Transactions ⁽¹⁾		Value of Collateral Under Linked Transactions		Number of Positions as Collateral Under Linked Transactions	Weighted Average Interest Rate of Linked Transactions
CMBS Term Repurchase Facility
Wells Fargo Bank	$	4,941	$	6,371	7	1.67%

Short-Term Repurchase Agreements - CMBS
JP Morgan Securities, LLC	—		—		—	—%
Wells Fargo Securities, LLC	4,108		6,233		2	1.37%
Deutsche Bank Securities, LLC	24,348		36,001		10	1.57%

Totals	$	33,397	$	48,605

The following table shows information about the amount at risk under the repurchase facilities (dollars in thousands):



	Amount at Risk⁽¹⁾		Weighted Average Maturity in Days	Weighted Average Interest Rate
As of March 31, 2014:
CMBS Term Repurchase Facility
Wells Fargo Bank, National Association	$	6,176	18	1.37%

RMBS Term Repurchase Facility
Wells Fargo Bank, National Association	$	16,804	25	2.43%

CRE Term Repurchase Facilities
Wells Fargo Bank, National Association	$	42,763	18	2.21%

Short-Term Repurchase Agreements - CMBS
Wells Fargo Securities, LLC	$	8,964	6	1.59%
Deutsche Bank Securities, LLC	$	17,452	21	1.62%

Residential Mortgage Financing Agreements
Wells Fargo Bank	$	13,561	93	2.75%
New Century Bank	$	7,270	152	2.80%

As of December 31, 2014:
CMBS Term Repurchase Facility
Wells Fargo Bank, National Association	$	6,486	20	1.35%

Residential Investment Term Repurchase Facility
Wells Fargo Bank, National Association	$	5,017	1	1.16%

CRE Term Repurchase Facilities
Wells Fargo Bank, National Association	$	76,148	20	2.38%
Deutsche Bank Securities, LLC	$	13,017	19	2.78%

Short-Term Repurchase Agreements - CMBS
Wells Fargo Securities, LLC	$	2,127	9	1.66%
Deutsche Bank Securities, LLC	$	11,810	20	1.62%

Residential Mortgage Financing Agreements
New Century Bank	$	853	242	2.82%
Wells Fargo Bank	$	6,902	183	2.75%


(1)	Equal to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense.

Company's Asset Recorded at Fair Value on Recurring Basis

The following table presents information about RSO’s assets and liabilities measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by RSO to determine such fair value as follows (in thousands):



	Level 1		Level 2		Level 3		Total
As of March 31, 2015
Assets:
Investment securities, trading	$	—	$	—	$	29,770	$	29,770
Investment securities available-for-sale	—		32,567		251,503		284,070
Derivatives (net)	7,015		384		6,636		14,035
Total assets at fair value	$	7,015	$	32,951	$	287,909	$	327,875

Liabilities:
Derivatives (net)	$	—	$	1,319	$	7,541	$	8,860
Total liabilities at fair value	$	—	$	1,319	$	7,541	$	8,860

As of December 31, 2014
Assets:
Investment securities, trading	$	—	$	—	$	20,786	$	20,786
Investment securities available-for-sale	—		33,158		242,562		275,720
CMBS - linked transactions	—		—		15,367		15,367
Derivatives (net)	3,429		7		1,868		5,304
Total assets at fair value	$	3,429	$	33,165	$	280,583	$	317,177

Liabilities:
Moselle CLO Notes	$	—	$	—	$	68,940	$	68,940
Derivatives (net)	$	—	$	—	$	8,476	$	8,476
Total liabilities at fair value	$	—	$	—	$	77,416	$	77,416

Additional Information about Assets Measured at Fair Value on Recurring Basis for which the Company Has Utilized Level 3 Inputs to Determine Fair Value

The following table presents additional information about assets which are measured at fair value on a recurring basis for which RSO has utilized Level 3 inputs (in thousands):



	CMBS Including Linked Transactions			ABS			Structured Finance Securities			Warrant			Interest Rate Lock Commitments			Total
Beginning balance, January 1, 2015	$	185,772		$	72,157		$	20,786		$	898		$	970		$	280,583
Included in earnings	—			1,255			1,331			(39		)	11,823			14,370
Unlined transactions	33,239			—			—			—			—			33,239
Purchases	4,000			—			13,337			—			—			17,337
Sales	—			—			(5,230		)	—			—			(5,230		)
Paydowns	(30,983		)	(720		)	(454		)	—			—			(32,157		)
Issuances	—			—			—			—			—			—
Settlements	—			(11,216		)	—			—			(10,032		)	(21,248		)
Included in OCI	1,740			(4,597		)	—			—			—			(2,857		)
Transfers into Level 3	—			856			—			—			—			856
Ending balance, March 31, 2015	$	193,768		$	57,735		$	29,770		$	859		$	2,761		$	284,893

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents additional information about liabilities that are measured at fair value on a recurring basis for which RSO has utilized Level 3 inputs (in thousands):



	Interest rate swaps
Beginning balance, January 1, 2015	$	8,680
Unrealized gains - included in accumulated other comprehensive income	(1,142		)
Included in earnings	—
Ending balance, March 31, 2015	$	7,538

Changes in Carrying Value of Assets and Liabilities Measured at Fair Value on Non-recurring Basis

The following table summarizes the financial assets and liabilities measured at fair value on a nonrecurring basis and indicates the fair value hierarchy of the valuation techniques utilized by RSO to determine such fair value as follows (in thousands):



	Level 1		Level 2		Level 3		Total
As of March 31, 2015:
Assets:
Loans held for sale	$	—	$	73,892	$	—	$	73,892
Impaired loans	—		2,445		—		2,445
Total assets at fair value	$	—	$	76,337	$	—	$	76,337

As of December 31, 2014:
Assets:
Loans held for sale	$	—	$	36,956	$	—	$	36,956
Impaired loans	—		1,678		137,811		139,489
Total assets at fair value	$	—	$	38,634	$	137,811	$	176,445

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of March 31, 2015, the significant unobservable inputs used in the fair value measurements were as follows (in thousands):



	Fair Value at March 31, 2015		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Interest rate swap agreements	$	7,538	Discounted cash flow	Weighted average credit spreads	4.78	%

Fair Value of Financial Instruments

The fair values of RSO’s remaining financial instruments that are not reported at fair value on their consolidated balance sheets are reported in the following table (in thousands):



			Fair Value Measurements
	Carrying Amount		Fair Value		Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
As of March 31, 2015:
Loans held-for-investment	$	1,960,250	$	1,951,974	$	—	$	515,227	$	1,436,747
Loans receivable-related party	$	1,229	$	1,229	$	—	$	—	$	1,229
CDO notes	$	1,770,686	$	1,098,171	$	—	$	—	$	1,098,171
Junior subordinated notes	$	51,256	$	17,750	$	—	$	—	$	17,750
Repurchase agreements	$	368,397	$	368,397	$	—	$	—	$	368,397
Senior secured revolving credit agreement	$	132,493	$	132,493	$	—	$	—	$	132,493

As of December 31, 2014:
Loans held-for-investment	$	1,925,980	$	1,909,019	$	—	$	570,071	$	1,338,948
Loans receivable-related party	$	1,277	$	1,277	$	—	$	—	$	1,277
CDO notes	$	1,046,493	$	975,762	$	—	$	—	$	975,762
Junior subordinated notes	$	51,205	$	17,699	$	—	$	—	$	17,699
Repurchase agreements	$	399,662	$	399,662	$	—	$	—	$	399,662
Senior secured revolving credit agreement	$	111,137	$	111,137	$	—	$	—	$	111,137