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VARIABLE INTEREST ENTITIES (Tables)

3 Months Ended

Mar. 31, 2013

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 March 31, 2013 (in thousands):



	Receivables from Managed Entities and Related Parties, Net ⁽¹⁾		Investments		Maximum Exposure to Loss in Non-consolidated VIEs
RRE Opportunity REIT	$	—	$	2,242	$	2,242
Trapeza entities	—		956		956
Ischus entities	184		—		184
	$	184	$	3,198	$	3,382

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
March 31, 2013:
CLO securities	$	949	$	(217	)	1	$	—	$	—	—

Allowance for loan losses and recorded investments

The following table summarizes the activity in the allowance for credit losses for all financing receivables (in thousands):



(Restated)	Receivables from Managed Entities		Leases and Loans			Rent Receivables			Total
Three Months Ended March 31, 2013:
Balance, beginning of year	$	32,560	$	—		$	68		$	32,628
Provision for (reversal of) credit losses	330		(3		)	11			338
Charge-offs	—		—			(25		)	(25		)
Recoveries	16		3			—			19
Balance, end of period	$	32,906	$	—		$	54		$	32,960

Ending balance, individually evaluated for impairment	$	32,906	$	—		$	—		$	32,906
Ending balance, collectively evaluated for impairment	—		—			54			54
Balance, end of period	$	32,906	$	—		$	54		$	32,960

Three Months Ended March 31, 2012:
Balance, beginning of year	$	12,575	$	—		$	29		$	12,604
Provision for (reversal of) credit losses	2,963		(6		)	5			2,962
Recoveries	—		6			—			6
Balance, end of period	$	15,538	$	—		$	34		$	15,572

Ending balance, individually evaluated for impairment	$	15,538	$	—		$	—		$	15,538
Ending balance, collectively evaluated for impairment	—		—			34			34
Balance, end of period	$	15,538	$	—		$	34		$	15,572

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 March 31, 2013 (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	$	—	$	—	$	39,887	$	39,887	$	93	$	39,980
Real estate investment entities	1,140		679		16,368		18,187		2,245		20,432
Financial fund management entities	18		—		15		33		2,269		2,302
Other	21		—		—		21		100		121
	1,179		679		56,270		58,128		4,707		62,835
Rent receivables - real estate	7		12		42		61		51		112
Total financing receivables	$	1,186	$	691	$	56,312	$	58,189	$	4,758	$	62,947


(1)	Receivables are presented gross of an allowance for credit losses of $32.4 million and $457,000 related to the Company’s commercial finance and financial fund management 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):



(Restated)	Net Balance		Unpaid Balance		Specific Allowance		Average Investment in Impaired Assets
As of March 31, 2013
Financing receivables with a specific valuation allowance:
Receivables from managed entities – commercial finance	$	5,744	$	38,193	$	32,449	$	38,129
Receivables from managed entities – financial fund management	848		1,305		457		1,305
Rent receivables – real estate	—		54		54		45

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 March 31, 2013				December 31, 2012
(Restated)	Maximum Amount of Facility		Borrowings Outstanding		Borrowings Outstanding
Credit facilities:
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			10,425		10,473
Other debt			321		567
Total borrowings			$	20,746	$	21,040


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

Fair value assets and liabilities measured on recurring basis

As of March 31, 2013, the fair values of the Company’s assets recorded at fair value on a recurring basis were as follows (in thousands):



(Restated)	Level 1		Level 2		Level 3		Total
Assets:
Investment securities	$	364	$	—	$	9,457	$	9,821

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):



(Restated)	Level 1		Level 2		Level 3		Total
Assets:
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 three months ended March 31, 2013 (in thousands):



(Restated)	Investment Securities
Balance, beginning of year	$	10,367
Purchases	3,404
Income accreted	227
Payments and distributions received	(2,719		)
Impairment recognized in earnings	(214		)
Sales	(2,460		)
Gain on sales of trading securities	517
Unrealized holding gain on trading securities	745
Change in unrealized losses included in accumulated other comprehensive loss	(410		)
Balance, end of period	$	9,457

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
Three Months Ended March 31, 2013:
Asset:
Receivables from managed entities – commercial finance, real estate and financial fund management	$	—	$	—	$	7,313	$	7,313
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):



	March 31, 2013				December 31, 2012
(Restated)	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Receivables from managed entities	$	29,929	$	29,929	30,618		30,618
	$	29,929	$	29,929	$	30,618	$	30,618
Borrowings:
Real estate debt	$	10,425	$	11,616	$	10,473	$	11,398
Senior Notes	10,000		12,066		10,000		11,728
Other debt	321		321		567		567
	$	20,746	$	24,003	$	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):



	March 31, 2013			December 31, 2012
	(Unaudited)
ASSETS ⁽¹⁾
Cash and cash equivalents	$	67,661		$	85,278
Restricted cash	112,131			94,112
Subtotal- Cash and cash equivalents	179,792			179,390

Investment securities, trading	32,892			24,843
Investment securities available-for-sale, pledged as collateral, at fair value	192,673			195,200
Investment securities available-for-sale, at fair value	49,609			36,390
Subtotal- Investments, at fair value	275,174			256,433

Loans held for sale	18,150			48,894
Loans, pledged as collateral and net of allowances of $17.0 million and $17.7 million	1,708,540			1,793,780
Loans receivable–related party	7,860			8,324
Subtotal - Loans before eliminations	1,734,550			1,850,998
Eliminations	(1,570		)	(1,570		)
Subtotal - Loans	1,732,980			1,849,428

Investment in real estate	75,142			75,386
Investments in unconsolidated entities	48,419			45,413
Subtotal - Investments in real estate and unconsolidated entities before eliminations	123,561			120,799
Eliminations	(108		)	(93		)
Subtotal - Investments in real estate and unconsolidated entities	123,453			120,706

Linked transactions, net at fair value	22,455			6,835
Interest receivable	8,913			7,763
Deferred tax asset	2,887			2,766
Principal paydown receivable	20			25,570
Intangible assets	12,660			13,192
Prepaid expenses	3,839			10,396
Other assets	4,712			4,109
Subtotal - Other assets before eliminations	$	55,486		$	70,631
Eliminations	(32		)	(31		)
Subtotal - Other assets	$	55,454		$	70,600

Total assets - before eliminations	$	2,368,563		$	2,478,251
Total assets - after eliminations	$	2,366,853		$	2,476,557
LIABILITIES ⁽²⁾
Borrowings	$	1,649,840		$	1,785,600

Distribution payable	22,731			21,655
Accrued interest expense	3,096			2,918
Derivatives, at fair value	14,036			14,687
Accrued tax liability	1,859			13,641
Deferred tax liability	8,376			8,376
Accounts payable and other liabilities	10,877			18,029
Subtotal - other liabilities before eliminations	60,975			79,306
Eliminations	(2,311		)	(8,067		)
Subtotal - Other liabilities	58,664			71,239
Total liabilities - before eliminations	$	1,710,815		$	1,864,906
Total liabilities - after eliminations	$	1,708,504		$	1,856,839

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



	March 31, 2013			December 31, 2012
	(Unaudited)
Total stockholders' equity per RSO balance sheet	$	657,748		$	613,345
Eliminations	(31,432		)	(31,022		)
Noncontrolling interests attributable to RSO	$	626,316		$	582,323

RSO Balance Sheet detail (in thousands):



	March 31, 2013		December 31, 2012
	(Unaudited)
(1) Assets of consolidated VIEs of RSO included in the total assets above:
Restricted cash	$	107,620	$	90,108
Investments securities available-for-sale, pledged as collateral, at fair value	137,553		135,566
Loans held for sale	18,150		14,894
Loans, pledged as collateral and net of allowances of $13.3 million and $15.2 million	1,533,796		1,678,719
Interest receivable	6,527		5,986
Prepaid expenses	303		328
Principal receivable	21		25,570
Other assets	—		333
Total assets of consolidated RSO VIEs	$	1,803,970	$	1,951,504

(2) Liabilities of consolidated VIEs of RSO included in the total liabilities above:
Borrowings	$	1,475,014	$	1,614,882
Accrued interest expense	2,528		2,666
Derivatives, at fair value	13,478		14,078
Accounts payable and other liabilities	1,423		698
Total liabilities of consolidated RSO VIEs	$	1,492,443	$	1,632,324

RSO Income Statement Detail

(in thousands)



	Three Months Ended
	March 31,
	2013			2012
	(Unaudited)			(Unaudited)
REVENUES
Interest income:
Loans	$	27,812		$	23,615
Securities	3,642			3,405
Interest income − other	1,866			2,829
Total interest income	33,320			29,849
Interest expense	11,165			8,383
Net interest income	22,155			21,466
Rental income	6,174			1,919
Dividend income	16			17
Equity in losses of unconsolidated subsidiaries	(425		)	1,071
Fee income	1,410			1,610
Net realized and unrealized gain on sales of investment securities available-for-sale and loans	391			380
Net realized and unrealized (loss) gain on investment securities, trading	1,116			2,144
Unrealized gain (loss) and net interest income on linked transactions, net	(259		)	119
Revenues from consolidated VIE - RSO	30,578			28,726
OPERATING EXPENSES
Management fees − related party	2,978			3,443
Equity compensation − related party	3,591			868
Professional services	1,446			1,100
Insurance	162			158
Rental operating expense	3,937			1,320
General and administrative	1,873			1,063
Depreciation and amortization	1,138			1,361
Income tax expense	1,762			2,615
Net impairment losses recognized in earnings	21			139
Provision for loan losses	1,042			2,178
Total operating expenses	17,950			14,245
Reclassification of income tax provision	(1,762		)	(2,615		)
Expenses from consolidated VIE -RSO	16,188			11,630
Adjusted operating income	14,390			17,096
OTHER REVENUE (EXPENSE)
Income from continuing operations	14,390			17,096
Income tax provision - RSO	1,762			2,615
NET INCOME	12,628			14,481
Net income allocated to preferred shares	(1,311		)	—
Net income allocated to noncontrolling interests	209			—
NET INCOME ALLOCABLE TO RSO COMMON SHARES	$	11,526		$	14,481

RSO Summarized Cash Flow Detail

(in thousands)



	Three Months Ended
	March 31,
	2013			2012
CASH FLOWS FROM OPERATING ACTIVITIES:	(Unaudited)			(Unaudited)
Net income	$	12,628		$	14,481
Line items included in "Change in cash attributable to consolidated VIE - RSO":
Provision for loan losses	1,042			2,178
Depreciation of investments in real estate and other	666			380
Amortization of intangible assets	532			982
Amortization of term facilities	221			140
Accretion of net discounts on loans held for investment	(4,079		)	(5,519		)
Accretion of net discounts on securities available-for-sale	(731		)	(861		)
Amortization of discount on notes of CDOs	876			308
Amortization of debt issuance costs on notes of CDOs	1,176			927
Amortization of stock-based compensation	3,591			868
Amortization of terminated derivative instruments	55			56
Distribution to subordinated debt holder	670			1,584
Accretion of interest-only available-for-sales securities	(247		)	—
Deferred income tax benefit	(115		)	—
Purchase of securities, trading	(10,044		)	(8,348		)
Principal payments on securities, trading	21			833
Proceeds from sales of securities, trading	3,089			5,025
Net realized and unrealized gains on investment securities, trading	(1,116		)	(2,144		)
Net realized gain on sales of investment securities available-for-sale and loans	(391		)	(380		)
Net impairment losses recognized in earnings	12			139
Linked transactions fair value adjustments	592			—
Equity in losses (earnings) of unconsolidated subsidiaries	425			(1,071		)
Changes in operating assets and liabilities	14,426			(14,761		)
Subtotal - net cash provided by operating activities	10,671			(19,664		)
Change in consolidated VIE - RSO cash for the period	17,617			5,554
Subtotal - Change in cash attributable to operations of consolidated VIE - RSO before eliminations	28,288			(14,110		)
Elimination of intercompany activity	(654		)	1
Subtotal - Change in cash attributable to operations of consolidated VIE - RSO	27,634			(14,109		)

Non-cash incentive compensation to RAI	(1		)	165
Elimination of intercompany activity	1			(165		)
Non-cash incentive compensation to RAI - after eliminations	—			—

Net cash provided by (used in) operating activities (excluding eliminations)	23,298			(5,018		)



	Three Months Ended
	March 31,
	2013			2012
CASH FLOWS FROM INVESTING ACTIVITIES:	(Unaudited)			(Unaudited)
Purchase of loans	(146,699		)	(150,845		)
Purchase of securities available-for-sale	(63,292		)	(16,660		)
Subtotal - purchase of loans and investment securities by consolidated VIE - RSO	(209,991		)	(167,505		)
Proceeds from sale of loans	58,148			40,120
Principal payments received on loans	209,107			116,848
Principal payments on securities available-for-sale	7,944			5,595
Principal payments received on loans – related parties	464			69
Subtotal - principal payments and proceeds from sale of loans and securities by consolidated VIE - RSO	275,663			162,632
Decrease in restricted cash	(19,241		)	9,196
Lines included in "Other - consolidated VIE - RSO":
Investment in unconsolidated entity	(4,431		)	934
Improvements in real estate held-for-sale	—			(138		)
Proceeds from sale of real estate held-for-sale	—			907
Distributions from investments in real estate	253			448
Improvements in investments in real estate	(321		)	(348		)
Purchase of furniture and fixtures	—			(722		)
Subtotal - other investing activities of consolidated VIE - RSO, before eliminations	(4,499		)	1,081
Eliminations	—			20
Subtotal - other investing activities of consolidated VIE	(4,499		)	1,101
Net cash provided by investing activities (excluding eliminations)	41,932			5,404

CASH FLOWS FROM FINANCING ACTIVITIES:
Items included in "Net borrowings (repayments) of debt by consolidated VIE - RSO":
Proceeds from borrowings:
Repurchase agreements	37,145			8,948
Payments on borrowings:
Collateralized debt obligations	(141,341		)	(18,485		)
Net repayments of debt by consolidated VIE - RSO	(104,196		)	(9,537		)
Distributions paid on common stock	(20,978		)	(19,979		)
Elimination of RAI dividends received	556			505
Distributions paid on RSO common stock, after eliminations	(20,422		)	(19,474		)
Items included in "Net proceeds from issuance of stock by consolidated VIE - RSO":
Net proceeds from dividend reinvestment and stock purchase plan (net of offering costs of $0 and $19)	17,995			24,158
Proceeds from issuance of 8.25% Series B redeemable preferred shares (net of offering costs of $707 and $0)	26,867			—
Subtotal - Net proceeds from issuance of stock by consolidated VIE - RSO	44,862			24,158
Items included in "Other - consolidated VIE - RSO":
Payment of debt issuance costs	(140		)	(582		)
Payment of equity to third party sub-note holders	(1,461		)	—
Distributions paid on preferred stock	(934		)	—
Subtotal - Other consolidated VIE - RSO financing activity	(2,535		)	(582		)
Net cash used in financing activities (excluding eliminations)	$	(82,847	)	$	(5,940	)
NET INCREASE IN CASH AND CASH EQUIVALENTS	(17,617		)	(5,554		)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	85,278			43,116
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	67,661		$	37,562
SUPPLEMENTAL DISCLOSURE:
Interest expense paid in cash	$	10,188		$	8,401

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 and carrying value of assets and liabilities of consolidated RSO VIEs as of March 31, 2013 (in thousands):



	Apidos I		Apidos III		Apidos Cinco		Apidos VIII		Whitney CLO I		RREF 2006		RREF 2007		Total
ASSETS
Restricted cash (1)	$	41,833	$	8,546	$	26,439	$	13,241	$	16,832	$	19	$	710	$	107,620
Investment securities available-for-sale, pledged as collateral, at fair value	7,904		6,321		11,618		955		33,906		10,950		65,899		137,553
Loans, pledged as collateral	140,141		187,390		306,837		320,144		113,700		188,853		276,731		1,533,796
Loans held for sale	1,378		2,228		—		13,800		744		—		—		18,150
Interest receivable	9		798		1,176		871		423		1,153		2,097		6,527
Prepaid assets	39		24		32		56		68		48		36		303
Principal receivable	12		—		9		—		—		—		—		21
Other assets	—		—		—		—		—		—		—		—
Total assets (2)	$	191,316	$	205,307	$	346,111	$	349,067	$	165,673	$	201,023	$	345,473	$	1,803,970

LIABILITIES
Borrowings	$	174,493	$	193,248	$	320,699	$	321,182	$	149,939	$	116,220	$	199,233	$	1,475,014
Accrued interest expense	346		82		321		1,372		234		52		121		2,528
Derivatives, at fair value	—		—		—		—		—		1,908		11,570		13,478
Accounts payable and other liabilities	140		16		32		384		837		13		1		1,423
Total liabilities	$	174,979	$	193,346	$	321,052	$	322,938	$	151,010	$	118,193	$	210,925	$	1,492,443

(1) Includes $35.7 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.

The following table shows the classification, carrying value and maximum exposure to loss with respect to RSO’s unconsolidated VIEs as of March 31, 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		Total			Maximum Exposure to Loss ⁽¹⁾
Investment in unconsolidated entities	$	32,736	$	1,548		$	—	$	1,686	$	550	$	36,520		$	36,520
Intangible assets	—		—			12,589		—		—		12,589			$	12,589
Total assets	32,736		1,548			12,589		1,686		550		49,109

Borrowings	—		50,861			—		—		—		50,861			N/A
Total liabilities	—		50,861			—		—		—		50,861			N/A
Net asset (liability)	$	32,736	$	(49,313	)	$	12,589	$	1,686	$	550	$	(1,752	)	N/A


(1)	RSO's maximum exposure to loss at March 31, 2013 does not exceed the carrying amount of its investment.

Schedule of Other Significant Noncash Transactions

Supplemental disclosure of cash flow information (in thousands):



	Three Months Ended
	March 31,
	2013		2012
Non-cash financing activities include the following:
Distributions on common stock declared but not paid	$	21,634	$	17,000
Distribution on preferred stock declared but not paid	$	1,311	$	—
Income taxes paid in cash	$	7,635	$	10,103
Issuance of restricted stock	$	35	$	472

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
March 31, 2013:
Structured notes	$	16,803	$	10,964	$	(1,005	)	$	26,762
RMBS	6,025		1,426		(1,321		)	6,130
Total	$	22,828	$	12,390	$	(2,326	)	$	32,892

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
March 31, 2013
CMBS	$	189,990	$	7,766	$	(16,201	)	$	181,555
ABS	23,682		1,851		(712		)	24,821
Corporate bonds	35,678		256		(51		)	35,883
Other asset-backed	—		23		—			23
Total	$	249,350	$	9,896	$	(16,964	)	$	242,282

December 31, 2012
CMBS	$	182,828	$	4,626	$	(16,639	)	$	170,815
ABS	26,479		1,700		(1,115		)	27,064
Corporate Bonds	33,767		111		(190		)	33,688
Other asset-backed	—		23		—			23
Total	$	243,074	$	6,460	$	(17,944	)	$	231,590


(1)	As of March 31, 2013 and December 31, 2012, $192.7 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
March 31, 2013
Less than one year	$	46,592	⁽¹⁾	$	50,319	4.30%
Greater than one year and less than five years	131,401			135,955		4.51%
Greater than five years and less than ten years	54,758			53,475		3.42%
Greater than ten years	9,531			9,601		3.70%
Total	$	242,282		$	249,350	4.19%

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
March 31, 2013
CMBS	$	42,706	$	(893	)	$	21,498	$	(15,308	)	$	64,204	$	(16,201	)
ABS	—		—			6,365		(712		)	6,365		(712		)
Corporate bonds	14,203		(51		)	—		—			14,203		(51		)
Total temporarily impaired securities	$	56,909	$	(944	)	$	27,863	$	(16,020	)	$	84,772	$	(16,964	)

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 March 31, 2013				As of December 31, 2012
	Book Value			Number of Properties	Book Value			Number of Properties
Multi-family property	$	42,538		2	$	42,179		2
Office property	10,149			1	10,149			1
Hotel property	25,668			1	25,608			1
Subtotal	78,355				77,936
Less: Accumulated depreciation	(3,213		)		(2,550		)
Investments in real estate	$	75,142			$	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 three months ended March 31, 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)
March 31, 2013
Bank loans (3)	$	1,114,684		$	(20,501	)	$	1,094,183
Commercial real estate loans:
Whole loans	552,449			(2,035		)	550,414
B notes	16,399			(106		)	16,293
Mezzanine loans	82,967			(191		)	82,776
Total commercial real estate loans	651,815			(2,332		)	649,483
Subtotal loans before allowances	1,766,499			(22,833		)	1,743,666
Allowance for loan loss	(16,976		)	—			(16,976		)
Total	$	1,749,523		$	(22,833	)	$	1,726,690

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 $375,000 and $450,000 and deferred upfront fees of $310,000 and $334,000 being amortized over the life of the bank loans as of March 31, 2013 and December 31, 2012, respectively. Amounts include loan origination fees of $2.0 million and $1.9 million and loan extension fees of $194,000 and $214,000 being amortized over the life of the commercial real estate loans as of March 31, 2013 and December 31, 2012, respectively.


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


(3)	Amounts include $18.2 million and $14.9 million of bank loans held for sale at March 31, 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):



	March 31, 2013		December 31, 2012
Less than one year	$	31,046	$	10,028
Greater than one year and less than five years	687,786		821,568
Five years or greater	375,351		361,718
	$	1,094,183	$	1,193,314

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)
March 31, 2013:
Whole loans, floating rate ^{(1) (5)}	35	$	550,414	LIBOR plus 2.50% to LIBOR plus 5.5%	June 2013 to February 2019
B notes, fixed rate	1	16,293		8.68%	April 2016
Mezzanine loans, floating rate	2	15,848		LIBOR plus 2.50% to LIBOR plus 7.45%	August 2013 to December 2013
Mezzanine loans, fixed rate ⁽⁷⁾	3	66,928		0.50% to 20.00%	September 2014 to September 2019
Total ⁽²⁾	41	$	649,483

December 31, 2012:
Whole loans, floating rate ^{(1) (4) (5) (6)}	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⁽⁷⁾	3	66,941		0.50% to 20.00%	September 2014 to September 2019
Total ⁽²⁾	43	$	667,051


(1)	Whole loans had $9.5 million and $8.9 million in unfunded loan commitments as of March 31, 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 $9.2 million and $8.0 million as of March 31, 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% as of December 31, 2012.


(5)	Floating rate whole loans include a $1.0 million portion of a whole loan that has a fixed rate of 10% as of March 31, 2013 and December 31, 2012, respectively.


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


(7)	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 18.5% 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
March 31, 2013
B notes	$	—	$	—	$	16,293	$	16,293
Mezzanine loans	5,331		20,710		56,735		82,776
Whole loans	3,312		—		547,102		550,414
Total (1)	$	8,643	$	20,710	$	620,130	$	649,483

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
March 31, 2013:
B notes	$	219	1.29%
Mezzanine loans	914		5.38%
Whole loans	8,022		47.26%
Bank loans	7,821		46.07%
Total	$	16,976

December 31, 2012:
B notes	$	206	1.17%
Mezzanine loans	860		4.85%
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
March 31, 2013:
Allowance for Loan Losses:
Allowance for losses at January 1, 2013	$	7,986		$	9,705		$	—	$	17,691
Provision (benefit) for loan loss	1,261			(219		)	—		1,042
Loans charged-off	(92		)	(1,665		)	—		(1,757		)
Allowance for losses at March 31, 2013	$	9,155		$	7,821		$	—	$	16,976
Ending balance:
Individually evaluated for impairment	$	3,311		$	2,607		$	—	$	5,918
Collectively evaluated for impairment	$	5,844		$	5,214		$	—	$	11,058
Loans acquired with deteriorated credit quality	$	—		$	—		$	—	$	—
Loans:
Ending balance:
Individually evaluated for impairment	$	180,262		$	3,896		$	7,860	$	192,018
Collectively evaluated for impairment	$	469,221		$	1,090,287		$	—	$	1,559,508
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 bank loans were as follows (in thousands):



	Rating 1		Rating 2		Rating 3		Rating 4		Rating 5		Held for Sale		Total
As of March 31, 2013
Bank loans	$	979,854	$	43,387	$	32,626	$	16,270	$	3,896	$	18,150	$	1,094,183

As of December 31, 2012
Bank loans	$	1,095,148	$	33,677	$	27,837	$	16,318	$	5,440	$	14,894	$	1,193,314

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 March 31, 2013
Whole loans	$	497,052	$	—	$	53,362	$	—	$	—	$	550,414
B notes	16,293		—		—		—		—		16,293
Mezzanine loans	44,704		—		38,072		—		—		82,776
	$	558,049	$	—	$	91,434	$	—	$	—	$	649,483

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

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
March 31, 2013:
Whole loans	$	—	$	—	$	—	$	—	$	550,414	$	550,414	$	—
B notes	—		—		—		—		16,293		16,293		—
Mezzanine loans	—		—		—		—		82,776		82,776		—
Bank loans	—		1,553		2,343		3,896		1,090,287		1,094,183		—
Loans receivable- related party	—		—		—		—		7,860		7,860		—
Total loans	$	—	$	1,553	$	2,343	$	3,896	$	1,747,630	$	1,751,526	$	—

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
March 31, 2013:
Loans without a specific valuation allowance:
Whole loans	$	116,628	$	116,628	$	—		$	115,037	$	4,515
B notes	—		—		—			—		—
Mezzanine loans	38,072		38,072		—			38,072		675
Bank loans	—		—		—			—		—
Loans receivable - related party	6,289		6,289		—			—		178
Loans with a specific valuation allowance:
Whole loans	24,313		24,313		(3,313		)	22,872		995
B notes	—		—		—			—		—
Mezzanine loans	—		—		—			—		—
Bank loans	3,896		3,896		(2,607		)	—		—
Loans receivable - related party	—		—		—			—		—

Total:
Whole loans	$	140,941	$	140,941	$	(3,313	)	$	137,909	$	5,510
B notes	—		—		—			—		—
Mezzanine loans	38,072		38,072		—			38,072		675
Bank loans	3,896		3,896		(2,607		)	—		—
Loans receivable - related party	6,289		6,289		—			—		178
	$	189,198	$	189,198	$	(5,920	)	$	175,981	$	6,363

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 March 31, 2013:
Whole loans	6	$	153,958	$	136,672
B notes	—	—		—
Mezzanine loans	1	38,072		38,072
Bank loans	—	—		—
Loans receivable - related party	1	7,797		7,797
Total loans	8	$	199,827	$	182,541

Three Months Ended March 31, 2012:
Whole loans	4	$	133,955	$	115,894
B notes	—	—		—
Mezzanine loans	—	—		—
Bank loans	—	—		—
Loans receivable	—	—		—
Loans receivable - related party	1	7,797		7,797
Total loans	5	$	141,752	$	123,691

Summary of intangible assets

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



	Beginning Balance		Accumulated Amortization			Net Assets
March 31, 2013:
Investment in RCAM	$	21,213	$	(8,624	)	$	12,589
Investments in real estate:
In-place leases	2,461		(2,394		)	67
Above (below) market leases	29		(25		)	4
	2,490		(2,419		)	71
Total intangible assets	$	23,703	$	(11,043	)	$	12,660

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 March 31, 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
March 31, 2013:
RREF CDO 2006-1 Senior Notes ⁽¹⁾	$	116,220	1.64%	33.4 years	$	200,401
RREF CDO 2007-1 Senior Notes ⁽²⁾	199,233		0.83%	33.5 years	344,963
Apidos CDO I Senior Notes ⁽³⁾	174,493		1.14%	4.3 years	189,304
Apidos CDO III Senior Notes ⁽⁴⁾	193,248		0.80%	7.2 years	204,281
Apidos Cinco CDO Senior Notes ⁽⁵⁾	320,699		0.80%	7.1 years	345,983
Apidos CLO VIII Senior Notes ⁽⁶⁾	301,606		2.13%	8.6 years	353,860
Apidos CLO VIII Securitized Borrowings ⁽¹¹⁾	19,576		15.27%	8.6 years	—
Whitney CLO I Senior Notes⁽¹⁰⁾	144,190		1.85%	3.9 years	164,267
Whitney CLO I Securitized Borrowings ⁽¹¹⁾	5,749		9.09%	3.9 years	—
Unsecured Junior Subordinated Debentures ⁽⁷⁾	50,861		4.24%	23.4 years	—
Repurchase Agreements ⁽⁸⁾	110,365		2.19%	18 days	148,545
Mortgage Payable ⁽⁹⁾	13,600		4.15%	5.3 years	18,100
Total	$	1,649,840	1.66%	11.9 years	$	1,969,704

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 ⁽¹¹⁾	20,047		15.27%	8.8 years	—
Whitney CLO I Senior Notes⁽¹⁰⁾	171,555		1.82%	4.2 years	191,704
Whitney CLO I Securitized Borrowings ⁽¹¹⁾	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 ⁽⁹⁾	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 $116.7 million and $146.4 million less unamortized issuance costs of $499,000 and $728,000 as of March 31, 2013 and December 31, 2012, respectively. This CDO transaction closed in August 2006.


(2)	Amount represents principal outstanding of $200.4 million and $227.4 million less unamortized issuance costs of $1.1 million and $1.4 million as of March 31, 2013 and December 31, 2012, respectively. This CDO transaction closed in June 2007.


(3)	Amount represents principal outstanding of $174.6 million and $203.2 million less unamortized issuance costs of $148,000 and $274,000 as of March 31, 2013 and December 31, 2012, respectively. This CDO transaction closed in August 2005.


(4)	Amount represents principal outstanding of $193.7 million and $222.0 million less unamortized issuance costs of $474,000 and $659,000 as of March 31, 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 $1.3 million and $1.5 million as of March 31, 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 $4.5 million and $4.7 million, and less unamortized discounts of $11.5 million and $11.9 million as of March 31, 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 $44.1 million and $47.5 million less unamortized deferred debt costs of $117,000 and $23,000 plus accrued interest costs of $24,000 and $37,000 related to CMBS repurchase facilities as of March 31, 2013 and December 31, 2012, respectively, and principal outstanding of $64.4 million and $59.1 million less unamortized deferred debt costs of $219,000 and $348,000 plus accrued interest costs of $87,000 and $79,000 related to CRE repurchase facilities as of March 31, 2013 and December 31, 2012. Amount does not reflect CMBS repurchase agreement borrowings that are components of Linked Transactions. At March 31, 2013 and December 31, 2012, RSO had repurchase agreements of $53.6 million and $20.4 million, 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 $13.6 million as of March 31, 2013 and December 31, 2012, respectively. This real estate transaction closed in August 2011.


(10)	Amount represents principal outstanding of $146.3 million less unamortized discounts of $2.1 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 $20.9 million was paid down.


(11)	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
March 31, 2013:
Assets:
Investment securities, trading	$	—	$	—	$	32,892	$	32,892
Investment securities available-for-sale	11,397		113,378		117,507		242,282
CMBS - linked transactions	—		10,808		11,647		22,455
Total assets at fair value	$	11,397	$	124,186	$	162,046	$	297,629

Liabilities:
Derivatives (net)	$	—	$	558	$	13,478	$	14,036
Total liabilities at fair value	$	—	$	558	$	13,478	$	14,036

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	1,564
Purchases	46,980
Sales	(3,249		)
Paydowns	(1,632		)
Unrealized gains (losses) – included in accumulated other comprehensive income	2,235
Transfers from level 2	—
Ending balance, March 31, 2013	$	162,046

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	(599		)
Ending balance, March 31, 2013	$	13,478

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
March 31, 2013:
Assets:
Loans held for sale	$	—	$	18,150	$	—	$	18,150
Total assets at fair value	$	—	$	18,150	$	—	$	18,150

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 March 31, 2013, the significant unobservable inputs used in the fair value measurements were as follows (in thousands):



	Fair Value at March 31, 2013			Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Interest rate swap agreements	$	(14,036	)	Discounted cash flow	Weighted average credit spreads	5.01%

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)
March 31, 2013:
Loans held-for-investment	$	1,708,540	$	1,728,878	$	—	$	1,086,102	$	642,776
Loans receivable-related party	$	7,860	$	7,860	$	—	$	—	$	7,860
CDO notes	$	1,475,014	$	1,295,372	$	—	$	1,295,372	$	—
Junior subordinated notes	$	50,861	$	17,355	$	—	$	—	$	17,355
Repurchase agreement	$	110,365	$	110,365	$	—	$	—	$	110,365

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
March 31, 2013:
Wells Fargo Bank, National Association (2)	$	10,345	18	1.48	%

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)	$13.3 million and $12.2 million of linked repurchase agreement borrowings are being included as derivative instruments as of March 31, 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
March 31, 2013:
Wells Fargo Bank, National Association	$	28,831	18	2.70	%

December 31, 2012:
Wells Fargo Bank, National Association	$	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
March 31, 2013
JP Morgan Securities, LLC ⁽²⁾	$	6,965	12	1.07	%

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)	$13.5 million and $4.7 million linked repurchase agreement borrowings are being included as derivative instruments as of March 31, 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
March 31, 2013
Wells Fargo Securities, LLC ⁽²⁾	$	8,837	1	1.25	%

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)	$16.8 million and $3.5 million of linked repurchase agreement borrowings are being included as derivative instruments as of March 31, 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
March 31, 2013:
Deutsche Bank Securities, Inc.	$	5,360	15	1.28	%

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.