Investment Securities, at Fair Value

9 Months Ended

Sep. 30, 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 September 30, 2016 and December 31, 2015 (in thousands):

	September 30, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
CMBS	$	48,509	$	1,556	$	(1,967	)	$	48,098

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

As of September 30, 2016 and December 31, 2015, the Company owned eight and ten CMBS, respectively, with an estimated aggregate fair value of $48.1 million and $53.3 million, respectively. During the nine months ended September 30, 2016, two CMBS with a combined carrying value of less than $0.1 million at December 31, 2015, were paid in full. The Company generally receives monthly payments of principal and interest on the CMBS. As of September 30, 2016, the Company earned interest on the CMBS at rates ranging between 5.88% and 8.95%. As of September 30, 2016, the fair value of six 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 September 30, 2016, the Company had no other-than-temporary impairment losses.

The scheduled maturity of the Company’s CMBS as of September 30, 2016 are as follows (in thousands):

	September 30, 2016
	Amortized Cost		Fair Value
Due within one year	$	—	$	—
Due after one year through five years	21,489		22,066
Due after five years through 10 years	12,725		10,805
Due after 10 years	14,295		15,227
Total	$	48,509	$	48,098