Investment Securities, at Fair Value

3 Months Ended

Mar. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Investment Securities, at Fair Value

Investment Securities, at Fair Value

Investment securities are considered available-for-sale and, therefore, increases or decreases in the fair value of these investments are recorded in accumulated other comprehensive income (loss) as a component of equity in the consolidated balance sheets unless the securities are considered to be other-than-temporarily impaired at which time the losses are reclassified to expense.

The following tables detail the unrealized gains and losses on investment securities as of March 31, 2016 and December 31, 2015 (in thousands):

	March 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
CMBS	$	48,934	$	1,146	$	(1,918	)	$	48,162

	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
CMBS	$	52,115	$	2,169	$	(980	)	$	53,304

As of March 31, 2016 and December 31, 2015, the Company owned nine and ten CMBS, respectively, with an estimated aggregate fair value of $48.2 million and $53.3 million, respectively. During the three months ended March 31, 2016, one CMBS with a carrying value of less than $0.1 million at December 31, 2015, was paid in full prior to its maturity. The Company generally receives monthly payments of principal and interest on the CMBS. As of March 31, 2016, the Company earned interest on the CMBS at rates ranging between 5.88% and 8.95%. As of March 31, 2016, the fair value of five CMBS were below their amortized cost. In estimating other-than-temporary impairment losses, management considers a variety of factors, including: (i) whether the Company has the intent to sell the impaired security, (ii) whether the Company expects to hold the investment for a period of time sufficient to allow for anticipated recovery in fair value, and (iii) whether the company expects to recover the entire amortized cost basis of the security. The Company believes that none of the unrealized losses on investment securities are other-than-temporary as management expects the Company will fully recover the entire amortized cost basis of all securities. As of March 31, 2016, the Company had no other-than-temporary impairment losses.

The scheduled maturity of the Company’s CMBS as of March 31, 2016 is as follows (in thousands):

	March 31, 2016
	Amortized Cost		Fair Value
Due within one year	$	—	$	—
Due after one year through five years	21,656		22,316
Due after five years through 10 years	12,508		10,664
Due after 10 years	14,770		15,182
Total	$	48,934	$	48,162