XML 132 R45.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
SEGMENT REPORTING (Tables)
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Schedule of Company's performance evaluation by segment
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
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2019
 

 
 

 
 

 
 

 
 

Interest income
$
270,239

 
$
58,880

 
$
32

 
$
1,084

 
$
330,235

Interest expense
(50,293
)
 
(19,248
)
 
(37,226
)
 
(97,586
)
 
(204,353
)
Net interest income (expense)
219,946

 
39,632

 
(37,194
)
 
(96,502
)
 
125,882

Provision for loan losses
(2,600
)
 
—

 
—

 
—

 
(2,600
)
Net interest income (expense) after provision for loan losses
217,346

 
39,632

 
(37,194
)
 
(96,502
)
 
123,282

 
 
 
 
 
 
 
 
 
 
Operating lease income
—

 
—

 
106,366

 
—

 
106,366

Sale of loans, net
54,758

 
—

 
—

 
—

 
54,758

Realized gain (loss) on securities
—

 
14,911

 
—

 
—

 
14,911

Unrealized gain (loss) on equity securities
—

 
1,737

 
—

 
—

 
1,737

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

 
84

 
—

 
—

 
84

Realized gain on sale of real estate, net
—

 
—

 
1,392

 
—

 
1,392

Impairment of real estate
—

 
—

 
(1,350
)
 
—

 
(1,350
)
Fee and other income
19,188

 
1,592

 
8

 
3,615

 
24,403

Net result from derivative transactions
(16,160
)
 
(13,851
)
 
—

 
—

 
(30,011
)
Earnings (loss) from investment in unconsolidated joint ventures
—

 
—

 
3,432

 
—

 
3,432

Gain (loss) on extinguishment of debt
—

 
—

 
(1,070
)
 
—

 
(1,070
)
Total other income (loss)
57,786

 
4,473

 
108,778

 
3,615

 
174,652

 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
—

 
—

 
—

 
(67,768
)
 
(67,768
)
Operating expenses
—

 
—

 
—

 
(22,595
)
(3)
(22,595
)
Real estate operating expenses
—

 
—

 
(23,323
)
 
 
 
(23,323
)
Fee expense
(4,602
)
 
(350
)
 
(1,138
)
 
—

 
(6,090
)
Depreciation and amortization
—

 
—

 
(38,412
)
 
(99
)
 
(38,511
)
Total costs and expenses
(4,602
)
 
(350
)
 
(62,873
)
 
(90,462
)
 
(158,287
)
 
 
 
 
 
 
 
 
 
 
Income tax (expense) benefit
—

 
—

 
—

 
(2,646
)
 
(2,646
)
Segment profit (loss)
$
270,530

 
$
43,755

 
$
8,711

 
$
(185,995
)
 
$
137,001

 
 
 
 
 
 
 
 
 
 
Total assets as of December 31, 2019
$
3,358,861

 
$
1,721,305

 
$
1,096,514

 
$
492,472

 
$
6,669,152

 
Loans
 
Securities
 
Real
Estate(1)
 
Corporate/Other(2)
 
Company
Total
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2018
 

 
 

 
 

 
 

 
 

Interest income
$
310,149

 
$
34,217

 
$
24

 
$
426

 
$
344,816

Interest expense
(62,474
)
 
(4,617
)
 
(34,739
)
 
(92,461
)
 
(194,291
)
Net interest income (expense)
247,675

 
29,600

 
(34,715
)
 
(92,035
)
 
150,525

Provision for loan losses
(13,900
)
 
—

 
—

 
—

 
(13,900
)
Net interest income (expense) after provision for loan losses
233,775

 
29,600

 
(34,715
)
 
(92,035
)
 
136,625

 
 
 
 
 
 
 
 
 
 
Operating lease income
—

 
—

 
106,177

 
—

 
106,177

Sale of loans, net
16,511

 
—

 
—

 
—

 
16,511

Realized gain (loss) on securities
—

 
(5,808
)
 
—

 
—

 
(5,808
)
Unrealized gain (loss) on equity securities
—

 
(1,605
)
 
—

 
—

 
(1,605
)
Unrealized gain (loss) on Agency interest-only securities
—

 
555

 
—

 
—

 
555

Realized gain on sale of real estate, net
—

 
—

 
95,881

 
—

 
95,881

Fee and other income
16,490

 
—

 
3,416

 
6,379

 
26,285

Net result from derivative transactions
10,467

 
5,459

 
—

 
—

 
15,926

Earnings (loss) from investment in unconsolidated joint ventures
—

 
—

 
790

 
—

 
790

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

 
(4,323
)
 
—

 
(4,392
)
Total other income (loss)
43,399

 
(1,399
)
 
201,941

 
6,379

 
250,320

 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
—

 
—

 
—

 
(60,117
)
 
(60,117
)
Operating expenses
—

 
—

 
—

 
(21,696
)
(3)
(21,696
)
Real estate operating expenses
—

 
—

 
(29,799
)
 


 
(29,799
)
Fee expense
(4,040
)
 
(398
)
 
(617
)
 
—

 
(5,055
)
Depreciation and amortization
—

 
—

 
(41,884
)
 
(75
)
 
(41,959
)
Total costs and expenses
(4,040
)
 
(398
)
 
(72,300
)
 
(81,888
)
 
(158,626
)
 
 
 
 
 
 
 
 
 
 
Income tax (expense) benefit
—

 
—

 
—

 
(6,643
)
 
(6,643
)
Segment profit (loss)
$
273,134

 
$
27,803

 
$
94,926

 
$
(174,187
)
 
$
221,676

 
 
 
 
 
 
 
 
 
 
Total assets as of December 31, 2018
$
3,482,929

 
$
1,410,126

 
$
1,038,376

 
$
341,441

 
$
6,272,872

 
Loans
 
Securities
 
Real
Estate(1)
 
Corporate/Other(2)
 
Company
Total
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2017
 

 
 

 
 

 
 

 
 

Interest income
$
219,892

 
$
43,542

 
$
15

 
$
218

 
$
263,667

Interest expense
(39,530
)
 
(5,800
)
 
(28,679
)
 
(72,109
)
 
(146,118
)
Net interest income (expense)
180,362

 
37,742

 
(28,664
)
 
(71,891
)
 
117,549

Provision for loan losses
—

 
—

 
—

 
—

 
—

Net interest income (expense) after provision for loan losses
180,362

 
37,742

 
(28,664
)
 
(71,891
)
 
117,549

 
 
 
 
 
 
 
 
 
 
Operating lease income
—

 
—

 
96,671

 
—

 
96,671

Sale of loans, net
54,046

 
—

 
—

 
—

 
54,046

Realized gain (loss) on securities
—

 
17,209

 
—

 
—

 
17,209

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

 
1,405

 
—

 
—

 
1,405

Realized gain on sale of real estate, net
—

 
—

 
11,423

 
—

 
11,423

Fee and other income
6,859

 
—

 
7,865

 
3,617

 
18,341

Net result from derivative transactions
(8,425
)
 
(4,216
)
 
—

 
—

 
(12,641
)
Earnings (loss) from investment in unconsolidated joint ventures
—

 
—

 
89

 
—

 
89

Gain (loss) on extinguishment of debt
(19
)
 
—

 
—

 
(54
)
 
(73
)
Total other income (loss)
52,461

 
14,398

 
116,048

 
3,563

 
186,470

 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
—

 
—

 
—

 
(70,463
)
 
(70,463
)
Operating expenses
302

 
—

 
—

 
(21,723
)
(3)
(21,421
)
Real estate operating expenses
—

 
—

 
(33,216
)
 
—

 
(33,216
)
Fee expense
(3,649
)
 
(280
)
 
(1,067
)
 
—

 
(4,996
)
Depreciation and amortization
—

 
—

 
(40,239
)
 
(93
)
 
(40,332
)
Total costs and expenses
(3,347
)
 
(280
)
 
(74,522
)
 
(92,279
)
 
(170,428
)
 
 
 
 
 
 
 
 
 
 
Income tax (expense) benefit
—

 
—

 
—

 
(7,712
)
 
(7,712
)
Segment profit (loss)
$
229,476

 
$
51,860

 
$
12,862

 
$
(168,319
)
 
$
125,879

 
 
 
 
 
 
 
 
 
 
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 $48.4 million and $40.4 million as of December 31, 2019 and 2018, respectively.
(2)
Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to consolidated Company totals. This segment 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 $61.6 million and $57.9 million as of December 31, 2019 and 2018, respectively, the Company’s deferred tax asset (liability) of $(2.1) million and $2.3 million as of December 31, 2019 and 2018, respectively and the Company’s senior unsecured notes of $1.2 billion as of December 31, 2019 and 2018.
(3)
Includes $12.4 million, $11.5 million and $11.2 million of professional fees for the years ended December 31, 2019, 2018 and 2017, respectively.