FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2014

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

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 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



	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 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%

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:
Apidos contractual commitment	$	—	$	—	$	760	$	760

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):



	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:
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

- 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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