FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2014

Company's Asset Recorded at Fair Value on Recurring Basis

As of June 30, 2014, 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	$	1,043	$	—	$	11,547	$	12,590

As of December 31, 2013, 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	$	432	$	—	$	7,407	$	7,839

Additional Information about Assets Measured at Fair Value on Recurring Basis for which the Company Has Utilized Level 3 Inputs to Determine Fair Value

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 six months ended June 30, 2014 (in thousands):



	Investment Securities
Balance, beginning of year	$	7,407
Purchases	11,362
Income accreted	461
Payments and distributions received, net	(854		)
Sales	(8,037		)
Gains on sale of investment securities	370
Gains on sales of trading securities	828
Unrealized holding gains on trading securities	101
Change in unrealized losses included in accumulated other comprehensive loss	(91		)
Balance, end of period	$	11,547



	Investment Securities
Balance, beginning of year	$	10,367
Purchases	11,630
Income accreted	899
Payments and distributions received, net	(14,058		)
Sales	(6,286		)
Impairment recognized in earnings	(214		)
Gains on sales of trading securities	6,294
Unrealized holding losses on trading securities	(1,055		)
Change in unrealized losses included in accumulated other comprehensive loss	(170		)
Balance, end of year	$	7,407

Quantitative Inputs and Assumptions in Determining the Fair Value of Items Categorized in Level 3

The following table presents the Company's quantitative inputs and assumptions used in determining the fair value of items categorized in Level 3 (in thousands, except percentages):



	Fair value at June 30, 2014		Valuation Technique	Unobservable Inputs	Assumptions (weighted average)
CLO securities	$	7,026	Discounted cash flow	Constant default rate	0% - 2%
				Loss severity rate	25%
				Constant prepayment rate - year one	30%
				Constant prepayment rate - year two	25%
				Constant prepayment rate - thereafter	25%
				Reinvestment price on collateral	99.5% - 100%
				Discount rates	13.5%
				Reinvestment spread	200-450 basis points

Trading securities	$	4,521	Net asset value	Discount rates	0% - 10%
			Discounted cash flow	Constant default rate	2%
				Constant prepayment rate	20%
				Loss severity rate	30%

Changes in Carrying Value of Assets and Liabilities Measured at Fair Value on Non-recurring Basis

The Company's carrying value of the assets and liabilities measured at fair value on a non-recurring basis were as follows (in thousands):



	Level 1		Level 2		Level 3		Total
As of June 30, 2014
Assets:
Loans and receivables from managed entities – commercial finance and real estate	$	—	$	—	$	2,250	$	2,250
Liability:
Apidos contractual commitment	$	—	$	—	$	815	$	815

As of December 31, 2013
Assets:
Loans and receivables from managed entities – commercial finance and real estate	$	—	$	—	$	4,528	$	4,528
Liability:
Apidos contractual commitment	$	—	$	—	$	995	$	995

Fair Value of Financial Instruments

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):



	June 30, 2014				December 31, 2013
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Loans and receivables from managed entities	$	32,586	$	32,586	$	30,923	$	30,923

Borrowings:
Real estate debt	$	10,188	$	11,090	$	10,287	$	10,702
Senior Notes	10,000		13,322		10,000		12,619
Other debt	370		370		332		332
	$	20,558	$	24,782	$	20,619	$	23,653

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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