Fair Values (Tables)

6 Months Ended

Jun. 30, 2013

The following table summarizes our assets that are recorded at fair value as of June 30, 2013 ($ in thousands):


			Fair Value Measurements Using
	Total Fair Value at June 30, 2013		Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Measured on a recurring basis:

Loans held-for-sale, net	$	3,800	$	—	$	—	$	3,800
Loans receivable, at fair value	$	117,549	$	—	$	—	$	117,549
Securities, at fair value ⁽¹⁾	$	15,461	$	—	$	1,925	$	13,536

Measured on a non-recurring basis:

Impaired loans receivable ⁽²⁾	$	—	$	—	$	—	$	—

(1)	Other assets, at fair value include securities and other assets carried at fair value.

(2)	All impaired loans receivable have a 100% loan loss reserve and are held by consolidated securitization vehicles as of June 30, 2013.

The following table summarizes our assets that are recorded at fair value as of December 31, 2012 ($ in thousands):


			Fair Value Measurements Using
	Total Fair Value at December 31, 2012		Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Measured on a recurring basis:

Investment in CT Legacy Asset	$	132,000	$	—	$	—	$	132,000

Measured on a non-recurring basis:

Impaired loans receivable ⁽¹⁾	$	2,000	$	—	$	—	$	2,000

(1)	Impaired loans receivable have a 92% loan loss reserve and are held by consolidated securitization vehicles as of December 31, 2013.

Reconciliation of Beginning and Ending Balances of Assets Measured at Fair Value on a Recurring Basis Using Level 3 Inputs

The following table reconciles the beginning and ending balances of assets measured at fair value on a recurring basis using Level 3 inputs ($ in thousands):


	Loans Held-for-Sale, net		Loans Receivable, at fair value			Other assets, at fair value ⁽¹⁾			Investment in CT Legacy Assets
December 31, 2012	$	—	$	—		$	—		$	132,000
Consolidation of CT Legacy Partners		—		150,332			15,761			(132,000	)
Transfer from loans receivable, net		2,000		—			—			—
Principal paydowns		—		(36,930	)		(349	)		—
Deferred interest		—		195			—			—

Adjustments to fair value included in earnings:
Valuation allowance on loans held-for-sale		1,800		—			—			—
Unrealized gain on investments at fair value		—		3,951			49			—

June 30, 2013	$	3,800	$	117,549		$	15,461		$	—

(1)	Other assets include securities and other assets carried at fair value.

Schedule of Range of Key Assumptions for Each Type of Loans Receivable

The following table lists the range of key assumptions for each type of loans receivable as of June 30, 2013 ($ in millions):


	Assumption Ranges for Significant				Book Value
	Unobservable Inputs (Level 3) ⁽¹⁾				Sensitivity to a
		Recovery			100bps Discount
Collateral Type	Discount Rate	Percentage ⁽²⁾	Book Value		Rate Increase
Hotel	8% -12%	84%- 100%	$	51.7		(0.3%	)
Mixed Use / Other	10%	100%		24.1		(0.1%	)
Office	7%- 20%	69%- 100%		41.7		0.05	%

			$	117.5

(1)	Excludes loans for which there is no expectation of future cash flows.

(2)	Represents the proportion of the principal expected to be collected relative to the loan balance as of June 30, 2013.

Schedule of Details of Carrying Amount, Face Amount, and Approximate Fair Value of Financial Instruments

The following table details the carrying amount, face amount, and approximate fair value of the financial instruments described in Note 2. All fair value estimates, except for cash and cash equivalents, are measured using significant unobservable inputs, or Level 3 inputs, as further described above. ($ in thousands):


	June 30, 2013						December 31, 2012
	Carrying Amount		Face Amount		Fair Value		Carrying Amount		Face Amount		Fair Value
Financial assets:
Cash and cash equivalents	$	59,746	$	59,746	$	59,746	$	15,423	$	15,423	$	15,423
Restricted cash		21,972		21,972		21,972		14,246		14,246		14,246
Loans receivable, net		830,101		851,716		827,152		141,500		164,180		133,682

Financial liabilities:
Secured notes		8,848		8,848		7,827		8,497		8,497		7,374
Repurchase obligations		165,239		165,239		165,239		—		—		—
Securitized debt obligations		74,472		74,472		51,454		139,184		139,184		89,880

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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