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SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
SEGMENT REPORTING
19. SEGMENT REPORTING
 
The Company has determined that it has three reportable segments based on how the chief operating decision maker reviews and manages the business. These reportable segments include loans, securities, and real estate. The loans segment includes mortgage loan receivables held for investment (balance sheet loans) and mortgage loan receivables held for sale (conduit loans). The securities segment is composed of all of the Company’s activities related to commercial real estate securities, which include investments in CMBS and U.S. Agency Securities. The real estate segment includes net leased properties, office buildings, a mobile home community, a warehouse, a shopping center and condominium units. Corporate/other includes the Company’s investments in joint ventures, other asset management activities and operating expenses.

The Company evaluates performance based on the following financial measures for each segment ($ in thousands):
 
Loans
 
Securities
 
Real
Estate(1)
 
Corporate/Other(2)
 
Company
Total
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2018
 

 
 

 
 

 
 

 
 

Interest income
$
70,009

 
$
8,014

 
$
5

 
$
178

 
$
78,206

Interest expense
(13,566
)
 
(856
)
 
(7,854
)
 
(22,437
)
 
(44,713
)
Net interest income (expense)
56,443

 
7,158

 
(7,849
)
 
(22,259
)
 
33,493

Provision for loan losses
(3,000
)
 
—

 
—

 
—

 
(3,000
)
Net interest income (expense) after provision for loan losses
53,443

 
7,158

 
(7,849
)
 
(22,259
)
 
30,493

 
 
 
 
 
 
 
 
 
 
Operating lease income
—

 
—

 
24,560

 
—

 
24,560

Tenant recoveries
—

 
—

 
3,577

 
—

 
3,577

Sale of loans, net
4,888

 
—

 
—

 
—

 
4,888

Realized gain on securities
—

 
(1,099
)
 
—

 
—

 
(1,099
)
Unrealized gain (loss) on Agency interest-only securities
—

 
204

 
—

 
—

 
204

Realized gain (loss) on sale of real estate, net
—

 
—

 
31,010

 
—

 
31,010

Fee and other income
3,063

 
—

 
1,782

 
1,407

 
6,252

Net result from derivative transactions
6,889

 
8,070

 
—

 
—

 
14,959

Earnings from investment in unconsolidated joint ventures
—

 
—

 
52

 
—

 
52

Gain (loss) on extinguishment of debt
(69
)
 
—

 
—

 
—

 
(69
)
Total other income (expense)
14,771

 
7,175

 
60,981

 
1,407

 
84,334

 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
—

 
—

 
—

 
(17,096
)
 
(17,096
)
Operating expenses
86

 
—

 
—

 
(5,634
)
 
(5,548
)
Real estate operating expenses
—

 
—

 
(8,817
)
 


 
(8,817
)
Fee expense
(616
)
 
(110
)
 
(117
)
 
—

 
(843
)
Depreciation and amortization
—

 
—

 
(10,804
)
 
(19
)
 
(10,823
)
Total costs and expenses
(530
)
 
(110
)
 
(19,738
)
 
(22,749
)
 
(43,127
)
 
 
 
 
 
 
 
 
 
 
Tax (expense) benefit
—

 
—

 
—

 
(3,902
)
 
(3,902
)
Segment profit (loss)
$
67,684

 
$
14,223

 
$
33,394

 
$
(47,503
)
 
$
67,798

 
 
 
 
 
 
 
 
 
 
Total assets as of March 31, 2018
$
3,794,821

 
$
1,100,105

 
$
1,015,423

 
$
320,945

 
$
6,231,294

 
Loans
 
Securities
 
Real
Estate(1)
 
Corporate/Other(2)
 
Company
Total
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2017
 

 
 

 
 

 
 

 
 

Interest income
$
44,297

 
$
13,208

 
$
3

 
$
4

 
$
57,512

Interest expense
(6,253
)
 
(1,853
)
 
(6,550
)
 
(16,759
)
 
(31,415
)
Net interest income (expense)
38,044

 
11,355

 
(6,547
)
 
(16,755
)
 
26,097

Provision for loan losses
—

 
—

 
—

 
—

 
—

Net interest income (expense) after provision for loan losses
38,044

 
11,355

 
(6,547
)
 
(16,755
)
 
26,097

 
 
 
 
 
 
 
 
 
 
Operating lease income
—

 
—

 
19,630

 
—

 
19,630

Tenant recoveries
—

 
—

 
1,579

 
—

 
1,579

Sale of loans, net
(999
)
 
—

 
—

 
—

 
(999
)
Realized gain on securities
—

 
5,361

 
—

 
—

 
5,361

Unrealized gain (loss) on Agency interest-only securities
—

 
159

 
—

 
—

 
159

Realized gain on sale of real estate, net
—

 
—

 
2,331

 
—

 
2,331

Fee and other income
1,621

 
—

 
1,973

 
872

 
4,466

Net result from derivative transactions
(1,681
)
 
(300
)
 
—

 
—

 
(1,981
)
Earnings from investment in unconsolidated joint ventures
—

 
—

 
(74
)
 
—

 
(74
)
Loss on extinguishment of debt
—

 
—

 
—

 
(54
)
 
(54
)
Total other income
(1,059
)
 
5,220

 
25,439

 
818

 
30,418

 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
(1,000
)
 
—

 
—

 
(15,042
)
 
(16,042
)
Operating expenses
43

 
—

 
—

 
(5,522
)
 
(5,479
)
Real estate operating expenses
—

 
—

 
(7,454
)
 
—

 
(7,454
)
Fee expense
(535
)
 
(94
)
 
(64
)
 
—

 
(693
)
Depreciation and amortization
—

 
—

 
(8,569
)
 
(23
)
 
(8,592
)
Total costs and expenses
(1,492
)
 
(94
)
 
(16,087
)
 
(20,587
)
 
(38,260
)
 
 
 
 
 
 
 
 
 
 
Income tax (expense) benefit
—

 
—

 
—

 
1,375

 
1,375

Segment profit (loss)
$
35,493

 
$
16,481

 
$
2,805

 
$
(35,149
)
 
$
19,630

 
 
 
 
 
 
 
 
 
 
Total assets as of December 31, 2017
$
3,508,642

 
$
1,106,517

 
$
1,067,482

 
$
342,974

 
$
6,025,615

 
(1)
Includes the Company’s investment in unconsolidated joint ventures that held real estate of $34.6 million and $35.4 million as of March 31, 2018 and December 31, 2017, respectively.
(2)
Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to consolidated Company totals. This caption also includes the Company’s investment in unconsolidated joint ventures and strategic investments that are not related to the other reportable segments above, including the Company’s investment in FHLB stock of $77.9 million as of March 31, 2018 and December 31, 2017, the Company’s deferred tax asset (liability) of $(5.9) million and $(5.7) million as of March 31, 2018 and December 31, 2017, respectively and the Company’s senior unsecured notes of $1.2 billion and $1.2 billion as of March 31, 2018 and December 31, 2017, respectively.