DISCONTINUED OPERATIONS (Tables)

9 Months Ended

Sep. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

Schedule of discontinued operations

The following information reconciles the net income from operations of discontinued operations, net of income taxes, that are presented separately in the consolidated statements of operations ($ in thousands):

	For the three months ended September 30, 2016			For the nine months ended September 30, 2016
Mortgage banking revenue:
Servicing fees, net	$	4,115		$	11,081
Gains from mortgage banking activities	10,862			24,034
Provision for loss sharing	(143		)	146
Change in fair value of mortgage servicing rights	(2,562		)	(6,457		)
Mortgage banking revenue	12,272			28,804
Expenses:
Management fees to affiliate	154			446
Professional fees	347			718
Compensation and benefits	7,864			18,108
Transaction costs	282			797
General and administrative expenses	1,011			3,049
General and administrative expenses reimbursed to affiliate	185			622
Total expenses	9,843			23,740
Income from operations before income taxes	2,429			5,064
Income tax expense	563			843
Net income from operations of discontinued operations, net of income taxes	$	1,866		$	4,221

Schedule of components of income tax expense

The income tax provision for the Company and the TRSs consisted of the following for the three and nine months ended September 30, 2017 and 2016 ($ in thousands):

	For the three months ended September 30,				For the nine months ended September 30,
	2017		2016		2017		2016
Current	$	4	$	4	$	14	$	11
Deferred	—		—		—		—
Excise tax	50		157		135		157
Total income tax expense, including excise tax	$	54	$	161	$	149	$	168

TRS Holdings' income tax provision consisted of the following for the three and nine months ended September 30, 2016 ($ in thousands):

	For the three months ended September 30, 2016			For the nine months ended September 30, 2016
Current	$	(804	)	$	(1,206	)
Deferred	1,367			2,049
Total income tax expense	$	563		$	843

Schedule of effective tax rate reconciliation

The following table is a reconciliation of TRS Holdings’ statutory U.S. federal income tax rate to TRS Holdings’ effective tax rate for the three and nine months ended September 30, 2016:

	For the three months ended September 30, 2016		For the nine months ended September 30, 2016
Federal statutory rate	35.0	%	35.0	%
State income taxes	4.4	%	4.4	%
Federal benefit of state tax deduction	(1.5	)%	(1.5	)%
Effective tax rate	37.9	%	37.9	%

Summary of related-party transactions

The following table summarizes the related party costs incurred by the Company related to continuing operations for the three and nine months ended September 30, 2017 and 2016 and amounts payable to the Company’s Manager as of September 30, 2017 and December 31, 2016 ($ in thousands):

	Incurred												Payable
	For the three months ended September 30,						For the nine months ended September 30,						As of
	2017			2016			2017			2016			September 30, 2017		December 31, 2016
Affiliate Payments
Management fees	$	1,554		$	1,369		$	4,639		$	4,059		$	1,554	$	1,549
Incentive fees	—			321			381			321			—		27
General and administrative expenses	986			860			2,883			2,417			986		1,024
Direct costs	89		(1)	227		(2)	177		(1)	730		(2)	27		99
Total	$	2,629		$	2,777		$	8,080		$	7,527		$	2,567	$	2,699

______________________________________________________________________________

(1) For the three and nine months ended September 30, 2017, direct costs incurred are included within general and administrative expenses in the Company’s consolidated statements of operations.

(2) For the three and nine months ended September 30, 2016, direct costs incurred are included within (i) general and administrative expenses of $107 thousand and $368 thousand, respectively, and (ii) interest expense of $120 thousand and $362 thousand, respectively, in the Company’s consolidated statements of operations.

The following table summarizes the related party costs incurred by the Company related to discontinued operations for the three and nine months ended September 30, 2016 ($ in thousands):

	For the three months ended September 30, 2016		For the nine months ended September 30, 2016
Affiliate Payments
Management fees (1)	$	154	$	446
General and administrative expenses (1)	185		622
Direct costs (1)	35		68
Total	$	374	$	1,136

______________________________________________________________________________

(1) Management fees incurred are included in management fees to affiliate, general and administrative expenses incurred are included in general and administrative expenses reimbursed to affiliate and direct costs incurred are included in general and administrative expenses for the three and nine months ended September 30, 2016 in the reconciliation of net income from operations of discontinued operations, net of income taxes.