VARIABLE INTEREST ENTITIES (Tables)

9 Months Ended

Sep. 30, 2013

Debt Instrument [Line Items]

Schedule of Unconsolidated VIE

The following table presents the carrying amounts of the assets in the Company's consolidated balance sheets that relate to the Company's variable interests in identified non-consolidated VIEs and the Company's maximum exposure to loss associated with these VIEs in which it holds variable interests at September 30, 2013 (in thousands):

	Receivables from Managed Entities and Related Parties, Net (1)		Investments		Maximum Exposure to Loss in Non-consolidated VIEs
RRE Opportunity REIT	$	208	$	2,549	$	2,757
Trapeza entities	—		898		898
Ischus entities	180		—		180
	$	388	$	3,447	$	3,835

(1) Exclusive of expense reimbursements due to the Company.

Condensed Financial Statements

CONSOLIDATING FINANCIAL INFORMATION

The following table presents the consolidating balance sheet as of September 30, 2013 (unaudited) (in thousands):

	RAI			RSO		Eliminations			Consolidated
ASSETS
Cash	$	19,439		$	—	$	—		$	19,439
Restricted cash	558			—		—			558
Receivables	3,444			—		(96		)	3,348
Receivables from managed entities and related parties, net	34,457			—		(4,169		)	30,288
Investments in real estate, net	17,128			—		—			17,128
Investment securities, at fair value	27,156			—		(17,398		)	9,758
Investments in unconsolidated loan manager	37,345			—		—			37,345
Investments in unconsolidated entities	13,899			—		—			13,899
Assets of consolidated VIE - RSO:				—
Cash and cash equivalents (including restricted cash)	—			203,658		—			203,658
Investments, at fair value	—			232,783		—			232,783
Loans	—			1,646,157		(1,570		)	1,644,587
Investments in real estate and unconsolidated entities	—			128,099		—			128,099
Other assets	—			62,367		(26		)	62,341
Total assets of consolidated VIE - RSO	—			2,273,064		(1,596		)	2,271,468
Property and equipment, net	4,955			—		—			4,955
Deferred tax assets, net	37,353			—		(7,602		)	29,751
Other assets	5,574			—		—			5,574
Total assets	$	201,308		$	2,273,064	$	(30,861	)	$	2,443,511
LIABILITIES AND EQUITY
Liabilities:
Accrued expenses and other liabilities	$	27,613		$	—	$	—		$	27,613
Payables to managed entities and related parties	3,063			—		(26		)	3,037
Borrowings	21,950			—		(1,570		)	20,380
Liabilities of consolidated VIE - RSO:
Borrowings	—			1,422,430		—			1,422,430
Other liabilities	—			67,220		(4,265		)	62,955
Total liabilities of consolidated VIE - RSO	—			1,489,650		(4,265		)	1,485,385
Total liabilities	52,626			1,489,650		(5,861		)	1,536,415
Commitments and contingencies
Equity:
Preferred stock	—			—		—			—
Common stock	299			—		—			299
Additional paid-in capital	288,238			—		—			288,238
Accumulated deficit	(23,009		)	—		(3,411		)	(26,420		)
Treasury stock, at cost	(104,869		)	—		—			(104,869		)
Accumulated other comprehensive (loss) income	(12,195		)	—		9,885			(2,310		)
Total stockholders’ equity	148,464			—		6,474			154,938
Noncontrolling interests	218			—		—			218
Noncontrolling interests attributable to RSO	—			783,414		(31,474		)	751,940
Total equity	148,682			783,414		(25,000		)	907,096
	$	201,308		$	2,273,064	$	(30,861	)	$	2,443,511

The following table presents the consolidating statement of operations for the three months ended September 30, 2013 (in thousands) (unaudited):

	RAI			RSO			Eliminations			Consolidated
REVENUES:
Real estate	$	15,950		$	—		$	—		$	15,950
Financial fund management	8,502			—			—			8,502
Commercial finance	(30		)	—			—			(30		)
Revenues from consolidated VIE - RSO	—			23,786			—			23,786
Elimination of consolidated revenues attributed to operating segments	—			—			(5,183		)	(5,183		)
	24,422			23,786			(5,183		)	43,025
COSTS AND EXPENSES:
Real estate	11,178			—			—			11,178
Financial fund management	3,547			—			—			3,547
Commercial finance	75			—			—			75
General and administrative	2,505			—			—			2,505
Provision for credit losses	1,808			—			—			1,808
Depreciation and amortization	413			—			—			413
Expenses from consolidated VIE - RSO	—			16,276			(722		)	15,554
Elimination of consolidated expenses attributed to operating segments	—			—			(4,861		)	(4,861		)
	19,526			16,276			(5,583		)	30,219
OPERATING INCOME	4,896			7,510			400			12,806
OTHER INCOME (EXPENSE):
Interest expense	(530		)	—			—			(530		)
Other income, net	684			—			(556		)	128
Other income from consolidated VIE - RSO	—			16,607			—			16,607
Elimination of consolidated VIE other income attributable to operating segments	—			—			162			162
	154			16,607			(394		)	16,367
Income from continuing operations before taxes	5,050			24,117			6			29,173
Income tax provision - RSO	—			—			722			722
Income tax provision - RAI	1,261			—			—			1,261
Net income (loss)	3,789			24,117			(716		)	27,190
Net income attributable to noncontrolling interests - RAI	(40		)	—			—			(40		)
Net income attributable to noncontrolling interests of consolidated VIE- RSO	—			(1,996		)	(21,712		)	(23,708		)
Net income (loss) attributable to common shareholders	$	3,749		$	22,121		$	(22,428	)	$	3,442

The following table presents the consolidating statement of operations for the nine months ended September 30, 2013 (in thousands) (unaudited):

	RAI			RSO			Eliminations			Consolidated
REVENUES:
Real estate	$	39,443		$	—		$	—		$	39,443
Financial fund management	15,234			—			—			15,234
Commercial finance	(243		)	—			—			(243		)
Revenues from consolidated VIE - RSO	—			76,011			—			76,011
Elimination of consolidated revenues attributed to operating segments	—			—			(10,608		)	(10,608		)
	54,434			76,011			(10,608		)	119,837
COSTS AND EXPENSES:
Real estate	29,514			—			—			29,514
Financial fund management	7,769			—			—			7,769
Commercial finance	(99		)	—			—			(99		)
General and administrative	6,807			—			—			6,807
Provision for credit losses	3,793			—			—			3,793
Depreciation and amortization	1,318			—			—			1,318
Expenses from consolidated VIE - RSO	—			47,331			(4,221		)	43,110
Elimination of consolidated expenses attributed to operating segments	—			—			(10,178		)	(10,178		)
	49,102			47,331			(14,399		)	82,034
OPERATING INCOME	5,332			28,680			3,791			37,803
OTHER INCOME (EXPENSE):
Other-than-temporary impairment on investments	(214		)							(214		)
Interest expense	(1,525		)	—			—			(1,525		)
Other income, net	2,069			—			(1,669		)	400
Other income from consolidated VIE - RSO	—			16,607			—			16,607
Elimination of consolidated VIE other income attributable to operating segments	—			—			224			224
	330			16,607			(1,445		)	15,492
Income from continuing operations before taxes	5,662			45,287			2,346			53,295
Income tax provision - RSO	—			—			4,221			4,221
Income tax benefit - RAI	(396		)	—			—			(396		)
Income from continuing operations	6,058			45,287			(1,875		)	49,470
Loss from discontinued operations, net of tax	(2		)	—			—			(2		)
Net income	6,056			45,287			(1,875		)	49,468
Net income attributable to noncontrolling interests - RAI	(23		)	—			—			(23		)
Net income attributable to noncontrolling interests of consolidated VIE - RSO	—			(5,107		)	(39,287		)	(44,394		)
Net income (loss) attributable to common shareholders	$	6,033		$	40,180		$	(41,162	)	$	5,051

The following table presents the consolidating statement of cash flows for the nine months ended September 30, 2013 (in thousands) (unaudited):

	RAI			RSO			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	6,056		$	45,287		$	(1,875	)	$	49,468
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	1,462			—			—			1,462
Other-than-temporary impairment charges	214			—			—			214
Provision for credit losses	3,793			—			—			3,793
Unrealized gain on trading securities	(1,073		)	—			299			(774		)
Equity in earnings of unconsolidated entities	(2,528		)	—			—			(2,528		)
Distributions from unconsolidated entities	3,099			—			—			3,099
Gain on sale of assets	(1,632		)	—			—			(1,632		)
Gain on sale of loans and investment securities, net	(4,551		)	—			—			(4,551		)
Deferred income tax benefit	(254		)	—			—			(254		)
Equity-based compensation received	(654		)	—			654			—
Equity-based compensation issued	942			484			(484		)	942
Trading securities purchases and sales, net	6,445			—			—			6,445
Loss from discontinued operations	2			—			—			2
Changes in operating assets and liabilities	1,465			—			—			1,465
Change in cash attributable to consolidated VIE - RSO	—			(38,124		)	(291		)	(38,415		)
Net cash provided by (used in) operating activities	12,786			7,647			(1,697		)	18,736
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(1,035		)	—			—			(1,035		)
Payments received on real estate loans and real estate	2,049			—			—			2,049
Investments in unconsolidated real estate entities	(2,058		)	—			—			(2,058		)
Principal payments received on leases and loans	8			—			—			8
Purchase of loans and securities by consolidated VIE - RSO	—			(675,650		)	—			(675,650		)
Principal payments and proceeds from sales received by consolidated VIE - RSO	—			842,252			—			842,252
Purchase of loans and investments	(2,024		)	—			—			(2,024		)
Proceeds from sale of loans and investment securities	—			—			—			—
Increase in restricted cash - consolidated VIE RSO	—			30,079			—			30,079
Other - consolidated VIE - RSO	—			13,318			28			13,346
Net cash provided by (used in) in investing activities	(3,060		)	209,999			28			206,967
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in borrowings	2,000			—			—			2,000
Principal payments on borrowings	(2,354		)	—			—			(2,354		)
Proceeds from issuance of common stock	1,253			—			—			1,253
Net borrowings (repayments) of debt by consolidated VIE - RSO	—			(320,834		)	—			(320,834		)
Dividends paid	(1,194		)	—			—			(1,194		)
Dividends paid on common stock by consolidated VIE - RSO	—			(68,010		)	1,669			(66,341		)
Net proceeds from issuance of common stock by consolidated VIE - RSO	—			184,279			—			184,279
Repurchase of common stock	(1,601		)	—			—			(1,601		)
Other	81			—			—			81
Other - consolidated VIE - RSO	—			(13,081		)	—			(13,081		)
Net cash (used in) provided by financing activities	(1,815		)	(217,646		)	1,669			(217,792		)
CASH FLOWS FROM DISCONTINUED OPERATIONS:
Operating activities	(371		)	—			—			(371		)
Net cash used in discontinued operations	(371		)	—			—			(371		)
Increase in cash	7,540			—			—			7,540
Cash, beginning of year	11,899			—			—			11,899
Cash, end of period	$	19,439		$	—		$	—		$	19,439

Gross unrealized loss and fair value of securities

Unrealized losses, along with the related fair values and aggregated by the length of time the investments were in a continuous unrealized loss position, are as follows (in thousands, except number of securities):

	Less than 12 Months						More than 12 Months
	Fair Value		Unrealized Loss			Number of Securities	Fair Value		Unrealized Loss		Number of Securities
September 30, 2013:
CLO securities	$	2,289	$	(313	)	3	$	—	$	—	—
Equity securities	94		(6		)	1	—		—		—
Total	$	2,383	$	(319	)	4	$	—	$	—	—

Allowance for loan losses and recorded investments

1) Receivables are presented gross of an allowance for credit losses of $29.6 million, $2.5 million and $457,000 related to the Company’s commercial finance

Loan portfolios aging analysis

The following table is the aging of the Company’s past due financing receivables (presented gross of allowance for credit losses) as of September 30, 2013 (in thousands):

	30-89 Days Past Due		Greater than 90 Days		Greater than 181 Days		Total Past Due		Current		Total
Receivables from managed entities     and related parties: (1)
Commercial finance investment entities	$	—	$	—	$	43,139	$	43,139	$	61	$	43,200
Real estate investment entities	447		842		17,201		18,490		3,360		21,850
Financial fund management entities	17		7		9		33		793		826
Other	30		59		—		89		51		140
	494		908		60,349		61,751		4,265		66,016
Rent receivables - real estate	5		14		18		37		63		100
Total financing receivables	$	499	$	922	$	60,367	$	61,788	$	4,328	$	66,116

(1) Receivables are presented gross of an allowance for credit losses of $35.7 million related to the Company’s commercial finance investment entities.  The remaining receivables from managed entities and related parties have no related allowance for credit losses.

The following table is the aging of the Company’s past due financing receivables (presented gross of allowance for credit losses) as of December 31, 2012 (in thousands):

(Restated)	30-89 Days Past Due		Greater than 90 Days		Greater than 181 Days		Total Past Due		Current		Total
Receivables from managed entities    and related parties: (1)
Commercial finance investment entities	$	—	$	—	$	40,112	$	40,112	$	118	$	40,230
Real estate investment entities	779		744		17,062		18,585		1,992		20,577
Financial fund management entities	6		—		47		53		2,140		2,193
Other	41		—		—		41		137		178
	826		744		57,221		58,791		4,387		63,178
Rent receivables - real estate	4		10		58		72		40		112
Total financing receivables	$	830	$	754	$	57,279	$	58,863	$	4,427	$	63,290

(1) Receivables are presented gross of an allowance for credit losses of $29.6 million, $2.5 million and $457,000 related to the Company’s commercial finance, real estate and financial fund management investment entities, respectively.  The remaining receivables from managed entities and related parties had no related allowance for credit losses.

Impaired loans

The following table discloses information about the Company’s impaired financing receivables (in thousands):

	Net Balance		Unpaid Balance		Specific Allowance		Average Investment in Impaired Assets
As of September 30, 2013
Financing receivables with a specific valuation allowance:
Receivables from managed entities – commercial finance	$	3,170	$	38,898	$	35,728	$	38,853
Rent receivables – real estate	—		32		32		46
As of December 31, 2012
Financing receivables with a specific valuation allowance:
Receivables from managed entities – commercial finance	$	8,633	$	38,219	$	29,586	$	38,110
Receivables from managed entities – real estate	2,291		4,808		2,517		4,630
Receivable from managed entities - financial fund management	848		1,305		457		1,305
Rent receivables – real estate	—		68		68		40

Schedule of Debt

The credit facilities and other debt of the Company and related borrowings outstanding are as follows (in thousands): 

	As of September 30, 2013				December 31, 2012
	Maximum Amount of Facility		Borrowings Outstanding		Borrowings Outstanding
Credit facilities:					(Restated)
TD Bank – secured revolving credit facility (1)	$	6,997	$	—	$	—
Republic Bank – secured revolving credit facility	3,500		—		—
			—		—
Other Debt:
Senior Notes			10,000		10,000
Mortgage debt			10,335		10,473
Other debt			45		567
Total borrowings			$	20,380	$	21,040

(1) The amount of the facility as shown has been reduced for the outstanding letter of credit of $503,000 at September 30, 2013 and December 31, 2012.

Fair value assets and liabilities measured on recurring basis

As of September 30, 2013, the fair values of the Company’s assets recorded at fair value on a recurring basis were as follows (in thousands): 

	Level 1		Level 2		Level 3		Total
Assets:
Investment securities	$	429	$	—	$	9,329	$	9,758

As of December 31, 2012, the fair values of the Company’s assets recorded at fair value on a recurring basis were as follows (in thousands): 

	Level 1		Level 2		Level 3		Total
Assets:	(Restated)						(Restated)
Investment securities	$	209	$	—	$	10,367	$	10,576

Fair value assets unobservable input reconciliation

The following table presents additional information about assets which were measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value during the nine months endedSeptember 30, 2013 (in thousands):

	Investment Securities
Balance, beginning of year	$	10,367
Purchases	9,832
Income accreted	662
Payments and distributions received	(10,383		)
Impairment recognized in earnings	(214		)
Sales	(5,655		)
Gain on sales of trading securities	4,551
Unrealized holding gain on trading securities	773
Change in unrealized losses included in accumulated other comprehensive loss	(604		)
Balance, end of period	$	9,329

The following table presents additional information about assets which were measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value during calendar 2012 (in thousands):

	Investment Securities
	(Restated)
Balance, beginning of year	$	2,981
Purchases	11,578
Income accreted	853
Payments and distributions received	(3,201		)
Sales	(4,159		)
Impairment recognized in earnings	(74		)
Gains on sales of trading securities	1,216
Unrealized holding gain on trading securities	1,272
Change in unrealized losses included in accumulated other comprehensive loss	(99		)
Balance, end of period	$	10,367

Fair value assets and liabilities measured on nonrecurring basis

The Company recognized the following changes in carrying value of the assets and liabilities measured at fair value on a non-recurring basis, as follows (in thousands):

	Level 1		Level 2		Level 3		Total
Nine Months Ended September 30, 2013:
Asset:
Receivables from managed entities – commercial finance, real estate and financial fund management	$	—	$	—	$	4,883	$	4,883
Liability:
Apidos contractual commitment	$	—	$	—	$	994	$	994
Year Ended December 31, 2012:
Assets:
Receivables from managed entities – commercial finance and real estate	$	—	$	—	$	14,506	$	14,506
Investment in real estate	—		727		—		727
Investment in real estate - office building	—		—		906		906
Investment in CVC Credit Partners	—		—		28,600		28,600
Investment in Apidos-CVC preferred interest	—		—		6,792		6,792
Total	$	—	$	727	$	50,804	$	51,531
Liability:
Apidos contractual commitment	$	—	$	—	$	589	$	589

Fair value financial instruments not reported at fair value

The fair value of financial instruments required to be disclosed at fair value, excluding instruments valued on a recurring basis, is as follows (in thousands):

	September 30, 2013				December 31, 2012
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:					(Restated)		(Restated)
Receivables from managed entities	$	30,288	$	30,288	30,618		30,618
	$	30,288	$	30,288	$	30,618	$	30,618
Borrowings:
Real estate debt	$	10,335	$	10,869	$	10,473	$	11,398
Senior Notes	10,000		12,223		10,000		11,728
Other debt	45		45		567		567
	$	20,380	$	23,137	$	21,040	$	23,693

Resource Capital Corp [Member]

Debt Instrument [Line Items]

Condensed Financial Statements

The following reflects the detail of the assets and liabilities and operations of RSO, which the Company consolidated and included in its consolidated balance sheets and statements of operations.

RSO Balance Sheet detail (in thousands):

	September 30, 2013			December 31, 2012
	(Unaudited)			(Unaudited)
ASSETS (1)
Cash and cash equivalents	$	144,463		$	85,278
Restricted cash	59,195			94,112
Subtotal - Cash and cash equivalents	203,658			179,390
Investment securities, trading	12,099			24,843
Investment securities available-for-sale, pledged as collateral, at fair value	173,994			195,200
Investment securities available-for-sale, at fair value	46,690			36,390
Subtotal - Investments, at fair value	232,783			256,433
Loans held for sale	332,351			48,894
Loans, pledged as collateral and net of allowances of $12.9 million and $17.7 million	1,305,739			1,793,780
Loans receivable–related party	8,067			8,324
Subtotal - Loans before eliminations	1,646,157			1,850,998
Eliminations	(1,570		)	(1,570		)
Subtotal - Loans	1,644,587			1,849,428
Investment in real estate	55,144			75,386
Investments in unconsolidated entities	72,955			45,413
Subtotal - Investments in real estate and unconsolidated entities before eliminations	128,099			120,799
Eliminations	—			(93		)
Subtotal - Investments in real estate and unconsolidated entities	128,099			120,706
Linked transactions, net at fair value	29,978			6,835
Interest receivable	8,078			7,763
Deferred tax asset	3,268			2,766
Principal paydown receivable	7			25,570
Intangible assets	11,728			13,192
Prepaid expenses	4,961			10,396
Other assets	4,347			4,109
Subtotal - Other assets before eliminations	62,367			$	70,631
Eliminations	(26		)	(31		)
Subtotal - Other assets	62,341			$	70,600
Total assets - before eliminations	$	2,273,064		$	2,478,251
Total assets - after eliminations	$	2,271,468		$	2,476,557
LIABILITIES (2)
Borrowings	$	1,422,430		$	1,785,600
Distribution payable	26,796			21,655
Accrued interest expense	2,708			2,918
Derivatives, at fair value	12,208			14,687
Accrued tax liability	4,989			13,641
Deferred tax liability	7,690			8,376
Accounts payable and other liabilities	12,829			18,029
Subtotal - other liabilities before eliminations	67,220			79,306
Eliminations	(4,265		)	(8,067		)
Subtotal - Other liabilities	62,955			71,239
Total liabilities - before eliminations	$	1,489,650		$	1,864,906
Total liabilities - after eliminations	$	1,485,385		$	1,856,839

The following table presents the details of noncontrolling interests attributable to RSO (in thousands):

	September 30, 2013			December 31, 2012
	(Unaudited)			(Unaudited)
Total stockholders' equity per RSO balance sheet	$	783,414		$	613,345
Eliminations	(31,474		)	(31,022		)
Noncontrolling interests attributable to RSO	$	751,940		$	582,323

RSO Balance Sheet detail (in thousands):

	September 30, 2013		December 31, 2012
	(Unaudited)		(Unaudited)
(1) Assets of consolidated VIEs of RSO included in the total assets above:
Restricted cash	$	53,752	$	90,108
Investments securities available-for-sale, pledged as collateral, at fair value	110,993		135,566
Loans held for sale	332,351		14,894
Loans, pledged as collateral and net of allowances of $7.3 million and $15.2 million	981,513		1,678,719
Interest receivable	5,506		5,986
Prepaid expenses	254		328
Principal receivable	7		25,570
Other assets	35		333
Total assets of consolidated RSO VIEs	$	1,484,411	$	1,951,504
(2) Liabilities of consolidated VIEs of RSO included in the total liabilities above:
Borrowings	$	1,166,209	$	1,614,882
Accrued interest expense	2,184		2,666
Derivatives, at fair value	11,766		14,078
Accounts payable and other liabilities	646		698
Total liabilities of consolidated RSO VIEs	$	1,180,805	$	1,632,324

RSO Income Statement Detail

(in thousands)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
REVENUES
Interest income:
Loans	$	24,374		$	24,130		$	78,370		$	70,757
Securities	3,411			3,564			10,949			10,520
Interest income − other	649			2,218			3,150			8,204
Total interest income	28,434			29,912			92,469			89,481
Interest expense	11,762			8,208			34,061			25,460
Net interest income	16,672			21,704			58,408			64,021
Rental income	4,649			2,689			15,875			6,642
Dividend income	223			17			256			51
Equity in losses of unconsolidated subsidiaries	(505		)	(779		)	(858		)	(1,469		)
Fee income	1,245			1,777			4,182			5,528
Net realized and unrealized gain on sales of investment securities available-for-sale and loans	570			346			3,355			2,148
Net realized and unrealized (loss) gain on investment securities, trading	(229		)	9,782			(864		)	13,350
Unrealized gain (loss) and net interest income on linked transactions, net	1,161			133			(4,343		)	386
Revenues from consolidated VIE - RSO	23,786			35,669			76,011			90,657
OPERATING EXPENSES
Management fees − related party	5,113			5,521			11,006			13,512
Equity compensation − related party	2,120			1,404			7,866			3,412
Professional services	1,396			845			3,745			2,562
Insurance	214			161			588			478
Rental operating expense	3,523			1,827			11,084			4,456
General and administrative	1,288			844			4,428			3,377
Depreciation and amortization	904			1,249			3,041			3,974
Income tax expense	722			3,979			4,221			6,978
Net impairment losses recognized in earnings	255			9			811			180
Provision for loan losses	741			1,370			541			7,801
Total operating expenses	16,276			17,209			47,331			46,730
Reclassification of income tax provision	(722		)	(3,979		)	(4,221		)	(6,978		)
Expenses from consolidated VIE - RSO	15,554			13,230			43,110			39,752
Adjusted operating income	8,232			22,439			32,901			50,905
OTHER REVENUE (EXPENSE)
Gain on the extinguishment of debt	—			—			—			5,464
Gain on sale of real estate	16,607			—			16,607			—
Other income from consolidated VIE - RSO	16,607			—			16,607			5,464
Income from continuing operations	24,839			22,439			49,508			56,369
Income tax provision - RSO	722			3,979			4,221			6,978
NET INCOME	24,117			18,460			45,287			49,391
Net income allocated to preferred shares	(1,996		)	(308		)	(5,107		)	(333		)
NET INCOME ALLOCABLE TO RSO COMMON SHARES	$	22,121		$	18,152		$	40,180		$	49,058

RSO Summarized Cash Flow Detail

(in thousands)

	Nine Months Ended
	September 30,
	2013			2012
CASH FLOWS FROM OPERATING ACTIVITIES:	(Unaudited)			(Unaudited)
Net income (1)	$	45,287		$	49,391
Line items included in "Change in cash attributable to consolidated VIE - RSO":
Provision for loan losses	541			7,801
Depreciation of investments in real estate and other	1,638			1,264
Amortization of intangible assets	1,463			2,709
Amortization of term facilities	876			710
Accretion of net discounts on loans held for investment	(8,306		)	(10,738		)
Accretion of net discounts on securities available-for-sale	(1,925		)	(2,444		)
Amortization of discount on notes of CDOs	3,937			1,037
Amortization of debt issuance costs on notes of CDOs	2,868			3,330
Amortization of stock-based compensation	7,866			3,412
Amortization of terminated derivative instruments	322			169
Distribution accrued to preferred stockholders	(5,107		)	—
Accretion of interest-only available-for-sales securities	(714		)	(463		)
Deferred income tax provision (benefit)	502			(1,315		)
Purchase of securities, trading	(11,044		)	(8,348		)
Principal payments on securities, trading	4,211			981
Proceeds from sales of securities, trading	18,713			33,579
Net realized and unrealized loss (gain) on investment securities, trading	864			(13,350		)
Net realized gain on sales of investment securities available-for-sale and loans	(3,355		)	(2,148		)
Gain on early extinguishment of debt	—			(5,464		)
Gain on sale of real estate	(16,607		)	—
Net impairment losses recognized in earnings	802			180
Linked transactions fair value adjustments	5,224			—
Equity in losses of unconsolidated subsidiaries	858			1,469
Changes in operating assets and liabilities	17,434			(9,504		)
Subtotal - net cash provided by operating activities (1)	21,061			2,867
Change in consolidated VIE - RSO cash for the period	(59,185		)	(69,616		)
Subtotal -Change in cash attributable to operations of consolidated VIE - RSO before eliminations	(38,124		)	(66,749		)
Elimination of intercompany activity	(291		)	661
Subtotal - Change in cash attributable to operations of consolidated VIE - RSO	(38,415		)	(66,088		)
Non-cash incentive compensation to RAI (1)	484			814
Elimination of intercompany activity	(484		)	(814		)
Non-cash incentive compensation to RAI - after eliminations	—			—
Net cash provided by operating activities (excluding eliminations)	66,832			53,072

	Nine Months Ended
	September 30,
	2013			2012
CASH FLOWS FROM INVESTING ACTIVITIES:	(Unaudited)			(Unaudited)
Purchase of loans	(555,051		)	(479,172		)
Purchase of securities available-for-sale	(120,599		)	(70,654		)
Subtotal - purchase of loans and investment securities by consolidated VIE - RSO	(675,650		)	(549,826		)
Proceeds from sale of loans	314,112			139,708
Principal payments received on loans	487,606			356,866
Principal payments on securities available-for-sale	33,010			36,365
Proceeds from sale of securities available-for-sale	7,025			6,719
Principal payments received on loans – related parties	499			459
Subtotal - principal payments and proceeds from sale of loans and securities by consolidated VIE - RSO	842,252			540,117
Decrease in restricted cash	30,079			85,413
Lines included in "Other - consolidated VIE - RSO":
Investment in unconsolidated entity	(25,508		)	(725		)
Equity contribution to VIE	—			(710		)
Minority interest equity	2,200			1,979
Improvement of  real estate held-for-sale	(404		)	(138		)
Proceeds from sale of real estate held-for-sale	37,001			2,886
Distributions from investments in real estate	522			1,152
Improvements in investments in real estate	(365		)	(852		)
Purchase of furniture and fixtures	(128		)	—
Subtotal - other investing activities of consolidated VIE, before eliminations	13,318			3,592
Eliminations	28			43
Subtotal - other investing activities of consolidated VIE	13,346			3,635
Net cash provided by investing activities (excluding eliminations)	209,999			79,296
CASH FLOWS FROM FINANCING ACTIVITIES:
Items included in "Net borrowings (repayments) of debt by consolidated VIE - RSO":
Proceeds from borrowings:
Repurchase agreements	143,203			33,820
Payments on borrowings:
Collateralized debt obligations	(450,437		)	(156,989		)
Mortgage payable	(13,600		)	—
Retirement of debt	—			(4,850		)
Net repayments of debt by consolidated VIE - RSO:	(320,834		)	(128,019		)
Distributions paid on common stock	(68,010		)	(54,231		)
Elimination of RAI dividend received	1,669			1,543
Distribution paid on RSO common stock, after eliminations	(66,341		)	(52,688		)
Items included in "Net proceeds from issuance of stock by consolidated VIE - RSO":
Net proceeds from issuances of common stock (net of offering costs of $4,265 and $2,165)	114,018			55,502
Net proceeds from dividend reinvestment and stock purchase plan (net of offering costs of $0 and $19)	19,092			50,424
Proceeds from issuance of 8.5% Series A redeemable preferred shares (net of offering costs of $3 and $781)	112			16,411
Proceeds from issuance of 8.25% Series B redeemable preferred shares (net of offering costs of $1,091 and $0)	51,057			—
Subtotal - Net proceeds from issuance of stock by consolidated VIE - RSO	184,279			122,337
Items included in "Other - consolidated VIE - RSO" in financing section:
Payment of debt issuance costs	(1,740		)	(586		)
Payment of equity to third party sub-note holders	(6,952		)	(2,160		)
Distributions paid on preferred stock	(4,389		)	(93		)
Subtotal - Other consolidated VIE -RSO financing activity	(13,081		)	(2,839		)
Net cash used in financing activities (excluding eliminations)	$	(217,646	)	$	(62,752	)

NET INCREASE IN CASH AND CASH EQUIVALENTS	59,185		69,616
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	85,278		43,116
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	144,463	$	112,732
SUPPLEMENTAL DISCLOSURE:
Interest expense paid in cash	$	28,391	$	24,209

Real property useful lives

RSO depreciates real property using the straight-line method over the estimated useful lives of the assets as follows:

Category	Term
Building	25 – 40 years
Site improvements	Lesser of the remaining life of building or useful lives

Schedule of Variable Interest Entities

The following table shows the classification, carrying value and maximum exposure to loss with respect to RSO’s unconsolidated VIEs as of September 30, 2013 (in thousands):

	Unconsolidated Variable Interest Entities
	LEAF Commercial Capital, Inc.		Unsecured Junior Subordinated Debentures			Resource Capital Asset Management CLOs		RRE VIP Borrower, LLC			Värde Investment Partners, LP		Life Care Funding		CVC Global Opps Fund		Harvest CLO VII		Total		Maximum Exposure to Loss (1)
Investment in unconsolidated entities	$	40,820	$	1,548		$	—	$	(330	)	$	575	$	1,651	$	15,526	$	4,999	$	64,789	$	64,789
Intangible assets	—		—			11,687		—			—		—		—		—		11,687		$	11,687
Total assets	40,820		1,548			11,687		(330		)	575		1,651		15,526		4,999		76,476
Borrowings	—		50,956			—		—			—		—		—		—		50,956		N/A
Total liabilities	—		50,956			—		—			—		—		—		—		50,956		N/A
Net asset  (liability)	$	40,820	$	(49,408	)	$	11,687	$	(330	)	$	575	$	1,651	$	15,526	$	4,999	$	25,520	N/A

(1) RSO's maximum exposure to loss at September 30, 2013 does not exceed the carrying amount of its investment.

The following table shows the classification and carrying value of assets and liabilities of consolidated RSO VIEs as of September 30, 2013 (in thousands):

	Apidos I			Apidos III		Apidos Cinco		Apidos VIII		Whitney CLO I			RREF 2006		RREF 2007		Total
ASSETS
Restricted cash (1)	$	10,253		$	2,943	$	18,368	$	16,152	$	5,586		$	20	$	430	$	53,752
Investment securities available-for-sale, pledged as collateral, at fair value	8,097			6,217		16,622		1,975					11,658		66,424		110,993
Loans, pledged as collateral	100,268			148,660		308,128		7,874		635			158,659		257,289		981,513
Loans held for sale	—			183		3,688		325,675		2,805			—		—		332,351
Interest receivable	(148		)	597		1,094		752		(18		)	1,388		1,841		5,506
Prepaid assets	14			14		26		7		23			99		71		254
Principal receivable	—			—		7		—		—			—		—		7
Other assets	—			—		35		—		—			—		—		35
Total assets (2)	$	118,484		$	158,614	$	347,968	$	352,435	$	9,031		$	171,824	$	326,055	$	1,484,411
LIABILITIES
Borrowings	101,827			145,875		320,997		321,360		2,424			95,151		178,575		$	1,166,209
Accrued interest expense	263			63		325		1,386		—			41		106		2,184
Derivatives, at fair value	—			—		—		—		—			1,379		10,387		11,766
Accounts payable and other liabilities	154			18		23		384		43			22		2		646
Total liabilities	$	102,244		$	145,956	$	321,345	$	323,130	$	2,467		$	96,593	$	189,070	$	1,180,805

(1)    Includes $16.7 million available for reinvestment in certain of the CDOs.

(2)    Assets of each of the consolidated VIEs may only be used to settle the obligations of each respective VIE.

Schedule of Other Significant Noncash Transactions

Supplemental disclosure of cash flow information (in thousands):

	Nine Months Ended
	September 30,
	2013		2012
Non-cash investing activities include the following:
Acquisition of real estate investments	$	—	$	(21,661	)
Conversion of loans to investment in real estate	$	—	$	21,661
Non-cash financing activities include the following:
Distributions on common stock declared but not paid	$	25,447	$	19,897
Distribution on preferred stock declared but not paid	$	2,023	$	308
Income taxes paid in cash	$	8,997	$	19,771
Issuance of restricted stock	$	242	$	480
Subscription receivable	$	257	$	24,213

Investment trading securities at fair value

The following table summarizes RSO's structured notes and residential mortgage-backed securities (“RMBS”) which are classified as investment securities, trading and carried at fair value (in thousands):

	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
September 30, 2013:
Structured notes	$	8,554	$	4,026	$	(1,000	)	$	11,580
RMBS	1,934		—		(1,415		)	519
Total	$	10,488	$	4,026	$	(2,415	)	$	12,099
December 31, 2012:
Structured notes	$	9,413	$	10,894	$	(1,028	)	$	19,279
RMBS	6,047		858		(1,341		)	5,564
Total	$	15,460	$	11,752	$	(2,369	)	$	24,843

Available-for-sale securities, fair value

The following table summarizes RSO's investment securities, including those pledged as collateral and classified as available-for-sale, which are carried at fair value (in thousands):

	Amortized Cost (1)		Unrealized Gains		Unrealized Losses			Fair Value
September 30, 2013:
CMBS	$	194,268	$	7,297	$	(13,792	)	$	187,773
ABS	26,317		1,776		(495		)	27,598
Corporate bonds	5,375		29		(91		)	5,313
Other asset-backed	—		—		—			—
Total	$	225,960	$	9,102	$	(14,378	)	$	220,684
December 31, 2012:
CMBS	$	182,828	$	4,626	$	(16,639	)	$	170,815
ABS	25,885		1,700		(1,115		)	26,470
Corporate Bonds	34,361		111		(190		)	34,282
Other asset-backed	—		23		—			23
Total	$	243,074	$	6,460	$	(17,944	)	$	231,590

(1) As of September 30, 2013 and December 31, 2012, $174.0 million and $195.2 million, respectively, of securities were pledged as collateral security under related financings.

Estimated maturities of available-for-sale securities

The following table summarizes the estimated maturities of RSO’s CMBS, ABS, and corporate bonds according to their estimated weighted average life classifications (in thousands, except percentages):

Weighted Average Life	Fair Value			Amortized Cost		Weighted Average Coupon
September 30, 2013:
Less than one year	$	42,561	(1)	$	45,731	4.97%
Greater than one year and less than five years	136,672			138,629		4.67%
Greater than five years and less than ten years	37,088			36,905		2.71%
Greater than ten years	4,363			4,695		4.03%
Total	$	220,684		$	225,960	4.39%
December 31, 2012:
Less than one year	$	42,618	(1)	$	46,522	4.09%
Greater than one year and less than five years	122,509			131,076		4.55%
Greater than five years and less than ten years	61,780			60,801		3.31%
Greater than ten years	4,683			4,675		4.03%
Total	$	231,590		$	243,074	4.12%

(1)    RSO expects that the maturity date of these CMBS will either be extended or the CMBS will be paid in full.

Gross unrealized loss and fair value of securities

The following table shows the fair value and gross unrealized losses, aggregated by investment category and length of time, of those individual investment securities available-for-sale that have been in a continuous unrealized loss position during the periods specified (in thousands):

	Less than 12 Months					More than 12 Months					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
September 30, 2013:
CMBS	$	62,839	$	(8,333	)	$	12,124	$	(5,459	)	$	74,963	$	(13,792	)
ABS	201		(2		)	6,589		(493		)	6,790		(495		)
Corporate bonds	2,976		(91		)	—		—			2,976		(91		)
Total temporarily impaired securities	$	66,016	$	(8,426	)	$	18,713	$	(5,952	)	$	84,729	$	(14,378	)
December 31, 2012:
CMBS	$	25,803	$	(442	)	$	38,734	$	(16,197	)	$	64,537	$	(16,639	)
ABS	—		—			5,961		(1,115		)	5,961		(1,115		)
Corporate bonds	19,445		(190		)	—		—			19,445		(190		)
Total temporarily impaired securities	$	45,248	$	(632	)	$	44,695	$	(17,312	)	$	89,943	$	(17,944	)

Investments in real estate

The table below summarizes RSO’s investments in real estate (in thousands):

	As of September 30, 2013				As of December 31, 2012
	Book Value			Number of Properties	Book Value			Number of Properties
Multi-family property	$	22,102		1	$	42,179		2
Office property	10,244			1	10,149			1
Hotel property	25,718			1	25,608			1
Subtotal	58,064				77,936
Less:  Accumulated depreciation	(2,920		)		(2,550		)
Investments in real estate	$	55,144			$	75,386

Aggregate estimated fair value of assets and liabilities acquired

The following table is a summary of the aggregate estimated fair value of the assets and liabilities acquired on the respective date of acquisition during the year ended December 31, 2012 (in thousands). There were no such acquisitions during the nine months ended September 30, 2013.

Description	December 31, 2012
Assets acquired:
Investments in real estate	$	25,500
Other assets	(89		)
Total assets acquired	25,411
Liabilities assumed:
Accounts payable and other liabilities	3,750
Total liabilities assumed	3,750
Estimated fair value of net assets acquired	$	21,661

Summary of loans held for Investments

The following is a summary of RSO’s loans (in thousands):

Loan Description	Principal			Unamortized (Discount) Premium (1)			Carrying Value (2)
September 30, 2013:
Bank loans (3)	$	914,676		$	(5,648	)	$	909,028
Commercial real estate loans:
Whole loans	671,118			(3,003		)	668,115
B notes	16,328			(90		)	16,238
Mezzanine loans	57,667			(93		)	57,574
Total commercial real estate loans	745,113			(3,186		)	741,927
Subtotal loans before allowances	1,659,789			(8,834		)	1,650,955
Allowance for loan loss	(12,865		)	—			(12,865		)
Total	$	1,646,924		$	(8,834	)	$	1,638,090
December 31, 2012:
Bank loans (3)	$	1,218,563		$	(25,249	)	$	1,193,314
Commercial real estate loans:
Whole loans (4)	569,829			(1,891		)	567,938
B notes	16,441			(114		)	16,327
Mezzanine loans	82,992			(206		)	82,786
Total commercial real estate loans	669,262			(2,211		)	667,051
Subtotal loans before allowances	1,887,825			(27,460		)	1,860,365
Allowance for loan loss	(17,691		)	—			(17,691		)
Total	$	1,870,134		$	(27,460	)	$	1,842,674

(1) Amounts include deferred amendment fees of $288,000 and $450,000 and deferred upfront fees of $260,000 and $334,000 being amortized over the life of the bank loans as of September 30, 2013 and December 31, 2012, respectively.  Amounts include loan origination fees of $2.9 million and $1.9 million and loan extension fees of $189,000 and $214,000 being amortized over the life of the commercial real estate loans as of September 30, 2013 and December 31, 2012, respectively.

(2) Substantially all loans are pledged as collateral under various borrowings at September 30, 2013 and December 31, 2012, respectively.

(3) Amounts include $332.4 million and $14.9 million of bank loans held for sale at September 30, 2013 and December 31, 2012, respectively.

(4) Amount includes $34.0 million from two whole loans which are classified as loans held for sale at December 31, 2012.

Summary of the weighted average life of bank loans at amortized cost

The following is a summary of the weighted average life of RSO’s bank loans, at amortized cost (in thousands):

	September 30, 2013 (1)		December 31, 2012
Less than one year	$	29,008	$	10,028
Greater than one year and less than five years	574,042		821,568
Five years or greater	305,978		361,718
	$	909,028	$	1,193,314

(1) Bank loans include $4.6 million with maturity dates less than one year, $157.4 million with maturity dates greater than one year and less than five years and $170.3 million with maturity dates five years or greater that are held for sale as of September 30, 2013.

Summary of the commercial real estate loans

The following is a summary of RSO’s commercial real estate loans held for investment (dollars in thousands):

Description	Quantity	Amortized Cost		Contracted Interest Rates	Maturity Dates (3)
September 30, 2013:
Whole loans, floating rate (1)	47	$	668,115	LIBOR plus 2.50% to LIBOR plus 8.0%	December 2013 to August 2019
B notes, fixed rate	1	16,238		8.68%	April 2016
Mezzanine loans, fixed rate (6)	4	57,574		0.50% to 20.00%	December 2014 to September 2019
Total (2)	52	$	741,927
December 31, 2012:
Whole loans, floating rate (1) (4) (5)	37	$	567,938	LIBOR plus 2.50% to LIBOR plus 5.50%	June 2013 to February 2019
B notes, fixed rate	1	16,327		8.68%	April 2016
Mezzanine loans, floating rate	2	15,845		LIBOR plus 2.50% to LIBOR plus 7.45%	August 2013 to December 2013
Mezzanine loans, fixed rate (6)	3	66,941		0.50% to 20.00%	September 2014 to September 2019
Total (2)	43	$	667,051

(1) Whole loans had $6.6 million and $8.9 million in unfunded loan commitments as of September 30, 2013 and December 31, 2012, respectively.  These commitments are funded as the borrowers request additional funding and have satisfied the requirements to obtain this additional funding.

(2) The total does not include an allowance for loan loss of $9.9 million and $8.0 million as of September 30, 2013 and December 31, 2012, respectively.

(3) Maturity dates do not include possible extension options that may be available to the borrowers.

(4) Floating rate whole loans include a $2.0 million portion of a whole loan that has a fixed rate of 15.0% as of December 31, 2012.

(5) Amount includes $34.0 million from two whole loans that were classified as loans held for sale at December 31, 2012.

(6) Fixed rate mezzanine loans include a mezzanine loan that was modified into two tranches which both currently pay interest at 0.50%. In addition, the subordinate tranche accrues interest at LIBOR plus 18.50% which is deferred until maturity.

Summary of the weighted average life of the commercial real estate loans at amortized cost

The following is a summary of the weighted average life of RSO’s commercial real estate loans, at amortized cost (in thousands):

Description	2013		2014		2015 and Thereafter		Total
September 30, 2013:
B notes	$	—	$	—	$	16,238	$	16,238
Mezzanine loans	—		11,398		46,176		57,574
Whole loans	4,067		—		664,048		668,115
Total (1)	$	4,067	$	11,398	$	726,462	$	741,927
December 31, 2012:
B notes	$	—	$	—	$	16,327	$	16,327
Mezzanine loans	5,328		20,694		56,764		82,786
Whole loans	71,799		—		496,139		567,938
Total (1)	$	77,127	$	20,694	$	569,230	$	667,051

(1) Weighted average life of commercial real estate loans assumes full exercise of extension options available to borrowers.

Allocation of allowance for loan loss

The following is a summary of the allocation of the allowance for loan loss with respect to RSO’s commercial real estate and bank loans (in thousands, except percentages) by asset class:

Description	Allowance for Loan Loss		Percentage of Total Allowance
September 30, 2013:
B notes	$	166	1.29%
Mezzanine loans	531		4.12%
Whole loans	9,214		71.63%
Bank loans	2,954		22.96%
Total	$	12,865
December 31, 2012:
B notes	$	206	1.16%
Mezzanine loans	860		4.86%
Whole loans	6,920		39.12%
Bank loans	9,705		54.86%
Total	$	17,691

Allowance for loan losses and recorded investments

The following tables show the allowance for loan losses and recorded investments in loans for the years indicated (in thousands):

	Commercial Real Estate Loans			Bank Loans			Loans Receivable-Related Party		Total
September 30, 2013:
Allowance for Loan Losses:
Allowance for losses at January 1, 2013	$	7,986		$	9,705		$	—	$	17,691
Provision (benefit) for loan loss	2,017			(1,476		)	—		541
Loans charged-off	(92		)	(5,275		)	—		(5,367		)
Allowance for losses at September 30, 2013	$	9,911		$	2,954		$	—	$	12,865
Ending balance:
Individually evaluated for impairment	$	4,067		$	1,882		$	—	$	5,949
Collectively evaluated for impairment	$	5,844		$	1,072		$	—	$	6,916
Loans acquired with deteriorated credit quality	$	—		$	—		$	—	$	—
Loans:
Ending balance:
Individually evaluated for impairment	$	191,100		$	3,553		$	8,067	$	202,720
Collectively evaluated for impairment	$	550,827		$	905,475		$	—	$	1,456,302
Loans acquired with deteriorated credit quality	$	—		$	—		$	—	$	—
December 31, 2012:
Allowance for Loan Losses:
Allowance for losses at January 1, 2012	$	24,221		$	3,297		$	—	$	27,518
Provision for loan loss	5,225			11,593			—		16,818
Loans charged-off	(21,460		)	(5,185		)	—		(26,645		)
Allowance for losses at December 31, 2012	$	7,986		$	9,705		$	—	$	17,691
Ending balance:
Individually evaluated for impairment	$	2,142		$	3,236		$	—	$	5,378
Collectively evaluated for impairment	$	5,844		$	6,469		$	—	$	12,313
Loans acquired with deteriorated credit quality	$	—		$	—		$	—	$	—
Loans:
Ending balance:
Individually evaluated for impairment	$	177,055		$	4,689		$	8,324	$	190,068
Collectively evaluated for impairment	$	489,996		$	1,187,874		$	—	$	1,677,870
Loans acquired with deteriorated credit quality	$	—		$	751		$	—	$	751

Credit quality indicators for Bank loans and Commercial real estate loans

Credit risk profiles of commercial real estate loans were as follows (in thousands):

	Rating 1		Rating 2		Rating 3		Rating 4		Held for Sale		Total
As of September 30, 2013
Whole loans	$	591,105	$	44,943	$	32,067	$	—	$	—	$	668,115
B notes	16,238		—		—		—		—		16,238
Mezzanine loans	57,574		—		—		—		—		57,574
	$	664,917	$	44,943	$	32,067	$	—	$	—	$	741,927
As of December 31, 2012
Whole loans	$	427,456	$	—	$	106,482	$	—	$	34,000	$	567,938
B notes	16,327		—		—		—		—		16,327
Mezzanine loans	38,296		—		44,490		—		—		82,786
	$	482,079	$	—	$	150,972	$	—	$	34,000	$	667,051

Credit risk profiles of bank loans were as follows (in thousands):

	Rating 1		Rating 2		Rating 3		Rating 4		Rating 5		Held for Sale		Total
As of September 30, 2013
Bank loans	$	514,277	$	39,123	$	16,206	$	3,518	$	3,553	$	332,351	$	909,028
As of December 31, 2012
Bank loans	$	1,095,148	$	33,677	$	27,837	$	16,318	$	5,440	$	14,894	$	1,193,314

Loan portfolios aging analysis

The following table shows the loan portfolio aging analysis as of the dates indicated at cost basis (in thousands):

	30-59 Days		60-89 Days		Greater than 90 Days		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days and Accruing
September 30, 2013:
Whole loans	$	—	$	—	$	—	$	—	$	668,115	$	668,115	$	—
B notes	—		—		—		—		16,238		16,238		—
Mezzanine loans	—		—		—		—		57,574		57,574		—
Bank loans	—		—		3,553		3,553		905,475		909,028		—
Loans receivable- related party	—		—		—		—		8,067		8,067		—
Total loans	$	—	$	—	$	3,553	$	3,553	$	1,655,469	$	1,659,022	$	—
December 31, 2012:
Whole loans	$	—	$	—	$	—	$	—	$	567,938	$	567,938	$	—
B notes	—		—		—		—		16,327		16,327		—
Mezzanine loans	—		—		—		—		82,786		82,786		—
Bank loans	1,549		—		3,891		5,440		1,187,874		1,193,314		—
Loans receivable- related party	—		—		—		—		8,324		8,324		—
Total loans	$	1,549	$	—	$	3,891	$	5,440	$	1,863,249	$	1,868,689	$	—

Impaired loans

The following tables show impaired loans in the categories indicated (in thousands):

	Recorded Balance		Unpaid Principal Balance		Specific Allowance			Average Investment in Impaired Loans		Interest Income Recognized
September 30, 2013:
Loans without a specific valuation allowance:
Whole loans	$	127,961	$	127,961	$	—		$	121,371	$	6,951
B notes	—		—		—			—		—
Mezzanine loans	38,072		38,072		—			38,072		1,300
Bank loans	—		—		—			—		—
Loans receivable - related party	5,924		5,924		—			—		—
Loans with a specific valuation allowance:
Whole loans	25,067		25,067		(4,067		)	24,562		1,824
B notes	—		—		—			—		—
Mezzanine loans	—		—		—			—		—
Bank loans	3,553		3,553		(1,882		)	—		—
Loans receivable - related party	—		—		—			—		—
Total:
Whole loans	$	153,028	$	153,028	$	(4,067	)	$	145,933	$	8,775
B notes	—		—		—			—		—
Mezzanine loans	38,072		38,072		—			38,072		1,300
Bank loans	3,553		3,553		(1,882		)	—		—
Loans receivable - related party	5,924		5,924		—			—		—
	$	200,577	$	200,577	$	(5,949	)	$	184,005	$	10,075
December 31, 2012:
Loans without a specific valuation allowance:
Whole loans	$	115,841	$	115,841	$	—		$	114,682	$	3,436
B notes	—		—		—			—		—
Mezzanine loans	38,072		38,072		—			38,072		367
Bank loans	—		—		—			—		—
Loans receivable - related party	6,754		6,754		—			—		851
Loans with a specific valuation allowance:
Whole loans	23,142		23,142		(2,142		)	22,576		801
B notes	—		—		—			—		—
Mezzanine loans	—		—		—			—		—
Bank loans	5,440		5,440		(3,236		)	—		—
Loans receivable - related party	—		—		—			—		—
Total:
Whole loans	$	138,983	$	138,983	$	(2,142	)	$	137,258	$	4,237
B notes	—		—		—			—		—
Mezzanine loans	38,072		38,072		—			38,072		367
Bank loans	5,440		5,440		(3,236		)	—		—
Loans receivable - related party	6,754		6,754		—			—		851
	$	189,249	$	189,249	$	(5,378	)	$	175,330	$	5,455

Troubled debt restructurings on financing receivables

The following tables show troubled-debt restructurings in RSO's loan portfolio (in thousands):

	Number of Loans	Pre-Modification Outstanding Recorded Balance		Post-Modification Outstanding Recorded Balance
Three Months Ended September 30, 2013:
Whole loans	2	$	48,374	$	52,716
B notes	—	—		—
Mezzanine loans	—	—		—
Bank loans	—	—		—
Loans receivable - related party	—	—		—
Total loans	2	$	48,374	$	52,716
Three Months Ended September 30, 2012:
Whole loans	2	$	42,550	$	42,550
B notes	—	—		—
Mezzanine loans	1	38,072		38,072
Bank loans	—	—		—
Loans receivable	—	—		—
Loans receivable - related party	—	—		—
Total loans	3	$	80,622	$	80,622

Nine Months Ended September 30, 2013:
Whole loans	4	$	104,702	$	109,044
B notes	—	—		—
Mezzanine loans	—	—		—
Bank loans	—	—		—
Loans receivable - related party	1	6,592		6,592
Total loans	5	$	111,294	$	115,636
Nine Months Ended September 30, 2012:
Whole loans	5	$	168,708	$	151,422
B notes	—	—		—
Mezzanine loans	1	38,072		38,072
Bank loans	—	—		—
Loans receivable	—	—		—
Loans receivable - related party	1	7,797		7,797
Total loans	7	$	214,577	$	197,291

Summary of intangible assets

The following table summarizes intangible assets at September 30, 2013 and December 31, 2012 (in thousands).

	Beginning Balance		Accumulated Amortization			Net Assets
September 30, 2013:
Investment in RCAM	$	21,213	$	(9,526	)	$	11,687
Investments in real estate:
In-place leases	2,461		(2,421		)	40
Above (below) market leases	29		(28		)	1
	2,490		(2,449		)	41
Total intangible assets	$	23,703	$	(11,975	)	$	11,728
December 31, 2012:
Investment in RCAM	$	21,213	$	(8,108	)	$	13,105
Investments in real estate:
In-place leases	2,461		(2,379		)	82
Above (below) market leases	29		(24		)	5
	2,490		(2,403		)	87
Total intangible assets	$	23,703	$	(10,511	)	$	13,192

Schedule of Debt

Certain information with respect to RSO’s borrowings at September 30, 2013 and December 31, 2012 is summarized in the following table (in thousands, except percentages):

	Outstanding Borrowings		Weighted Average Borrowing Rate	Weighted Average Remaining Maturity	Value of Collateral
September 30, 2013:
RREF CDO 2006-1 Senior Notes (1)	$	95,151	1.86%	32.9 years	$	170,255
RREF CDO 2007-1 Senior Notes (2)	178,575		0.85%	33.0 years	325,551
Apidos CDO I Senior Notes (3)	101,827		1.53%	3.8 years	117,827
Apidos CDO III Senior Notes (4)	145,875		0.86%	6.7 years	157,009
Apidos Cinco CDO Senior Notes (5)	320,997		0.77%	6.6 years	339,154
Apidos CLO VIII Senior Notes (6)	302,916		2.09%	17 days	351,434
Apidos CLO VIII Securitized Borrowings (10)	18,444		14.13%	17 days	—
Whitney CLO I Senior Notes(9)	—		—%	N/A	8,573
Whitney CLO I Securitized Borrowings (9)	2,424		5.78%	N/A	—
Unsecured Junior Subordinated Debentures (7)	50,956		4.22%	22.9 years	—
Repurchase Agreements (8)	205,265		2.29%	18 days	284,290
Total	$	1,422,430	1.73%	9.6 years	$	1,754,093
December 31, 2012:
RREF CDO 2006-1 Senior Notes (1)	$	145,664	1.42%	33.6 years	$	295,759
RREF CDO 2007-1 Senior Notes (2)	225,983		0.81%	33.8 years	292,980
Apidos CDO I Senior Notes (3)	202,969		1.07%	4.6 years	217,745
Apidos CDO III Senior Notes (4)	221,304		0.80%	7.5 years	232,655
Apidos Cinco CDO Senior Notes (5)	320,550		0.82%	7.4 years	344,105
Apidos CLO VIII Senior Notes (6)	300,951		2.16%	8.8 years	351,014
Apidos CLO VIII Securitized Borrowings (10)	20,047		15.27%	8.8 years	—
Whitney CLO I Senior Notes(9)	171,555		1.82%	4.2 years	191,704
Whitney CLO I Securitized Borrowings (9)	5,860		9.50%	4.2 years	—
Unsecured Junior Subordinated Debentures (7)	50,814		4.26%	23.7 years	—
Repurchase Agreements (8)	106,303		2.28%	18 days	145,234
Mortgage Payable	13,600		4.17%	5.6 years	18,100
Total	$	1,785,600	1.62%	12.5 years	$	2,089,296

(1) Amount represents principal outstanding of $95.4 million and $146.4 million less unamortized issuance costs of $268,000 and $728,000 as of September 30, 2013 and December 31, 2012, respectively.  This CDO transaction closed in August 2006.

(2) Amount represents principal outstanding of $179.4 million and $227.4 million less unamortized issuance costs of $786,000 and $1.4 million as of September 30, 2013 and December 31, 2012, respectively.  This CDO transaction closed in June 2007.

(3) Amount represents principal outstanding of $101.8 million and $203.2 million less unamortized issuance costs of $0 and $274,000 as of September 30, 2013 and December 31, 2012, respectively.  This CDO transaction closed in August 2005.

(4) Amount represents principal outstanding of $146.1 million and $222 million less unamortized issuance costs of $205,000 and $659,000 as of September 30, 2013 and December 31, 2012, respectively.  This CDO transaction closed in May 2006.

(5) Amount represents principal outstanding of $322.0 million and $322.0 million less unamortized issuance costs of $1.0 million and $1.5 million as of September 30, 2013 and December 31, 2012, respectively.  This CDO transaction closed in May 2007.

(6) Amount represents principal outstanding of $317.6 million and $317.6 million, less unamortized issuance costs of $4.1 million and $4.7 million, and less unamortized discounts of $10.6 million and $11.9 million as of September 30, 2013 and December 31, 2012, respectively.  This CDO transaction closed in October 2011. Apidos CLO VIII was called and the notes were paid in full in October 2013.

(7) Amount represents junior subordinated debentures issued to RCT I and RCT II in May 2006 and September 2006, respectively.

(8) Amount represents principal outstanding of $52.7 million and $47.5 million less unamortized deferred debt costs of $47,000 and $23,000 plus accrued interest costs of $25,000 and $27,000 related to CMBS repurchase facilities as of September 30, 2013 and December 31, 2012, respectively, and principal outstanding of $153.8 million and $59.1 million less unamortized deferred debt costs of $1.3 million and $348,000 plus accrued interest costs of $161,000 and $79,000 related to CRE repurchase facilities as of September 30, 2013 and December 31, 2012. Amount does not reflect CMBS repurchase agreement borrowings that are components of Linked Transactions. At September 30, 2013 and December 31, 2012, RSO had repurchase agreements of $63.7 million and $20.4 million and accrued interest costs of $41,000 and $10,000, respectively, that were linked to CMBS purchases and accounted for as Linked Transactions, and, as such, the linked repurchase agreements are not included in the above table.

(9) Amount represents principal outstanding of $174.1 million less unamortized discounts of $2.5 million as of December 31, 2012. In September 2013, the Company called and liquidated Whitney CLO I. As a result, substantially all of the remaining assets were sold and the balance on the outstanding notes totaling $103.7 million was paid down.

(10) The securitized borrowings are collateralized by the same assets as the Apidos CLO VIII Senior Notes and the Whitney CLO I Senior Notes, respectively.

Fair value assets and liabilities measured on recurring basis

The following table presents information about RSO’s assets (including derivatives that are presented net) measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by RSO to determine such fair value as follows (in thousands):

	Level 1		Level 2		Level 3		Total
September 30, 2013:
Assets:
Investment securities, trading	$	—	$	—	$	12,099	$	12,099
Investment securities available-for-sale	4,972		85,826		129,886		220,684
CMBS - linked transactions	—		9,410		20,568		29,978
Total assets at fair value	$	4,972	$	95,236	$	162,553	$	262,761
Liabilities:
Derivatives (net)	$	—	$	442	$	11,766	$	12,208
Total liabilities at fair value	$	—	$	442	$	11,766	$	12,208
December 31, 2012:
Assets:
Investment securities, trading	$	—	$	—	$	24,843	$	24,843
Investment securities available-for-sale	9,757		132,561		89,272		231,590
CMBS - linked transactions	—		4,802		2,033		6,835
Total assets at fair value	$	9,757	$	137,363	$	116,148	$	263,268
Liabilities:
Derivatives (net)	$	—	$	610	$	14,077	$	14,687
Total liabilities at fair value	$	—	$	610	$	14,077	$	14,687

Fair value assets unobservable input reconciliation

The following table presents additional information about assets which are measured at fair value on a recurring basis for which RSO has utilized Level 3 inputs (in thousands):

	Level 3
Beginning balance, January 1, 2013	$	116,148
Total gains or losses (realized/unrealized):
Included in earnings	8,530
Purchases	89,514
Sales	(30,196		)
Paydowns	(20,186		)
Unrealized gains (losses) – included in Accumulated other comprehensive income	(1,257		)
Transfers from level 2	—
Ending balance, September 30, 2013	$	162,553

Fair value liabilities unobservable input reconciliation

The following table presents additional information about liabilities which are measured at fair value on a recurring basis for which RSO has utilized Level 3 inputs (in thousands):

	Level 3
Beginning balance, January 1, 2013	$	14,077
Unrealized gains – included in Accumulated other comprehensive income	(2,311		)
Ending balance, September 30, 2013	$	11,766

Fair value assets and liabilities measured on nonrecurring basis

The following table summarizes the financial assets and liabilities measured at fair value on a nonrecurring basis and indicates the fair value hierarchy of the valuation techniques utilized by RSO to determine such fair value as follows (in thousands):

	Level 1		Level 2		Level 3		Total
September 30, 2013:
Assets:
Loans held for sale	$	—	$	332,351	$	—	$	332,351
Impaired loans	—		1,046		—		1,046
Total assets at fair value	$	—	$	333,397	$	—	$	333,397
December 31, 2012:
Assets:
Loans held for sale	$	—	$	14,894	$	34,000	$	48,894
Impaired loans	—		4,366		21,000		25,366
Total assets at fair value	$	—	$	19,260	$	55,000	$	74,260

Significant unobservable inputs used in fair value measurements

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of September 30, 2013, the significant unobservable inputs used in the fair value measurements were as follows (in thousands):

	Fair Value at September 30, 2013		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Interest rate swap agreements	$	12,208	Discounted cash flow	Weighted average credit spreads	5.00%

Fair value financial instruments not reported at fair value

The fair values of RSO’s remaining financial instruments that are not reported at fair value on the RSO consolidated balance sheets are reported below (in thousands):

			Fair Value Measurements
	Carrying Amount		Fair Value		Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2013:
Loans held-for-investment	$	1,305,739	$	1,299,103	$	—	$	568,545	$	730,558
Loans receivable-related party	$	8,067	$	8,067	$	—	$	—	$	8,067
CDO notes	$	1,166,209	$	1,020,919	$	—	$	1,020,919	$	—
Junior subordinated notes	$	50,956	$	17,450	$	—	$	—	$	17,450
Repurchase agreement	$	205,265	$	205,265	$	—	$	—	$	205,265
December 31, 2012:
Loans held-for-investment	$	1,793,780	$	1,848,617	$	—	$	1,186,642	$	661,975
Loans receivable-related party	$	8,324	$	8,324	$	—	$	—	$	8,324
CDO notes	$	1,614,883	$	1,405,124	$	—	$	1,405,124	$	—
Junior subordinated notes	$	50,814	$	17,308	$	—	$	—	$	17,308
Repurchase agreement	$	106,303	$	106,303	$	—	$	—	$	106,303

Resource Capital Corp [Member] | CMBS - Term Repurchase Facilities [Member]

Debt Instrument [Line Items]

Schedule of Amount at Risk under Credit Facility

The following table shows information about the amount at risk under this facility (dollars in thousands):

	Amount at Risk (1)		Weighted Average Maturity in Days	Weighted Average Interest Rate
September 30, 2013:
Wells Fargo Bank, National Association.(2)	$	11,195	18	1.30	%
December 31, 2012:
Wells Fargo Bank, National Association.(2)	$	10,722	18	1.53	%

(1) Equal to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense.

(2) $9.3 million and $12.2 million of linked repurchase agreement borrowings are being included as derivative instruments as of September 30, 2013 and December 31, 2012, respectively.

Resource Capital Corp [Member] | CRE - Term Repurchase Facility [Member]

Debt Instrument [Line Items]

Schedule of Amount at Risk under Credit Facility

The following table shows information about the amount at risk under the facility (dollars in thousands);

	Amount at Risk (1)		Weighted Average Maturity in Days	Weighted Average Interest Rate
September 30, 2013:
Wells Fargo	$	66,619	18	2.61	%
December 31, 2012
Wells Fargo	$	26,332	18	2.88	%

(1) Equal to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense.

Resource Capital Corp [Member] | Repurchase Agreements [Member] | JP Morgan Securities, LLC [Member]

Debt Instrument [Line Items]

Schedule of Amount at Risk under Credit Facility

The following table shows information about the amount at risk under this facility (dollars in thousands);

	Amount at Risk (1)		Weighted Average Maturity in Days	Weighted Average Interest Rate
September 30, 2013:
JP Morgan Securities, LLC (2)	$	9,696	30	0.98	%
December 31, 2012:
JP Morgan Securities, LLC (2)	$	2,544	11	1.01	%

(1) Equal to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense.

(2) $17.8 million and$4.7 million linked repurchase agreement borrowings are being included as derivative instruments as of September 30, 2013 and December 31, 2012.

Resource Capital Corp [Member] | Repurchase Agreements [Member] | Wells Fargo Securities, LLC [Member]

Debt Instrument [Line Items]

Schedule of Amount at Risk under Credit Facility

The following table shows information about the amount at risk under this facility (dollars in thousands);

	Amount at Risk (1)		Weighted Average Maturity in Days	Weighted Average Interest Rate
September 30, 2013:
Wells Fargo Securities, LLC (2)	$	10,854	30	1.19	%
December 31, 2012:
Wells Fargo Securities, LLC (2)	$	1,956	28	1.46	%

(1) Equal to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense.

(2) $21.5 million and $3.5 million of linked repurchase agreement borrowings are being included as derivative instruments as of September 30, 2013 and December 31, 2012.

Resource Capital Corp [Member] | Repurchase Agreements [Member] | Deutsche Bank Securities, Inc [Member]

Debt Instrument [Line Items]

Schedule of Amount at Risk under Credit Facility

The following table shows information about the amount at risk under this facility (dollars in thousands);

	Amount at Risk (1)		Weighted Average Maturity in Days	Weighted Average Interest Rate
September 30, 2013:
Deutsche Bank Securities, Inc.	$	9,276	19	1.45	%
December 31, 2012
Deutsche Bank Securities, Inc.	$	2,069	7	1.46	%

(1) Equal to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense.