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FAIR VALUE (Tables)
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9 Months Ended |
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Sep. 30, 2014
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| Fair Value Disclosures [Abstract] |
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| Company's Asset Recorded at Fair Value on Recurring Basis |
As of September 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 | $ | 261 |
| | $ | 686 |
| | $ | 8,898 |
| | $ | 9,845 |
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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 |
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| 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 nine months ended September 30, 2014 (in thousands): | | | | | | Investment Securities | Balance, beginning of year | $ | 7,407 |
| Purchases | 14,491 |
| Income accreted | 721 |
| Payments and distributions received, net | (2,870 | ) | Sales | (13,096 | ) | Gains on sale of investment securities | 370 |
| Gains on sales of trading securities | 1,853 |
| Unrealized holding losses on trading securities | (226 | ) | Change in unrealized gains included in accumulated other comprehensive loss | 248 |
| Balance, end of period | $ | 8,898 |
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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 year ended December 31, 2013 (in thousands): | | | | | | 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 |
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| 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 September 30, 2014 | | Valuation Technique | | Unobservable Inputs | | Assumptions (weighted average) | CLO securities | $ | 7,882 |
| | 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 | | 12% | | | | | | Reinvestment spread | | 200% | | | | | | | | | Trading securities | $ | 1,016 |
| | Net asset value | | Discount rates | | 0% - 20% | | | | Discounted cash flow | | Constant default rate | | 2% - 10% | | | | | | Constant prepayment rate | | 20% - 30% | | | | | | Loss severity rate | | 30% |
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| 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 September 30, 2014 | | | | | | | | Assets: | | | | | | | | Loans and receivables from managed entities – commercial finance and real estate | $ | — |
| | $ | — |
| | $ | 2,403 |
| | $ | 2,403 |
| Other assets - commercial finance portfolio | — |
| | — |
| | 351 |
| | 351 |
| | $ | — |
| | $ | — |
| | $ | 2,754 |
| | $ | 2,754 |
| Liability: | |
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| Apidos contractual commitment | $ | — |
| | $ | — |
| | $ | 760 |
| | $ | 760 |
| | | | | | | | | As of December 31, 2013 | |
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| Assets: | |
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| Loans and receivables from managed entities – commercial finance and real estate | $ | — |
| | $ | — |
| | $ | 4,528 |
| | $ | 4,528 |
| Liability: | |
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| Apidos contractual commitment | $ | — |
| | $ | — |
| | $ | 995 |
| | $ | 995 |
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| 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): | | | | | | | | | | | | | | | | | | September 30, 2014 | | December 31, 2013 | | Carrying Amount | | Estimated Fair Value | | Carrying Amount | | Estimated Fair Value | Assets: | | | | | | | | Loans and receivables from managed entities | $ | 32,637 |
| | $ | 32,637 |
| | $ | 30,923 |
| | $ | 30,923 |
| | | | | | | | | Borrowings: | |
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| Real estate debt | $ | 10,140 |
| | $ | 11,204 |
| | $ | 10,287 |
| | $ | 10,702 |
| Senior Notes | 10,000 |
| | 13,073 |
| | 10,000 |
| | 12,619 |
| Other debt | 311 |
| | 311 |
| | 332 |
| | 332 |
| | $ | 20,451 |
| | $ | 24,588 |
| | $ | 20,619 |
| | $ | 23,653 |
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