VARIABLE INTEREST ENTITIES (Tables)

9 Months Ended

Sep. 30, 2014

Variable Interest Entity [Line Items]

Schedule of Variable Interest Entities

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 nonconsolidated VIEs and the Company's maximum exposure to loss associated with these VIEs in which it holds variable interests at September 30, 2014 (in thousands):

	Receivables from Managed Entities and Related Parties, Net (1)		Investments		Maximum Exposure to Loss in Non-consolidated VIEs
Ischus entities	$	158	$	—	$	158
Trapeza entities	—		661		661
RREGPS	—		716		716
	$	158	$	1,377	$	1,535

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

Supplemental Cash Flow Information

Supplemental disclosure of cash flow information is as follows (in thousands, per share data):

	Nine Months Ended
	September 30,
	2014			2013
Cash (paid) received:
Interest	$	(1,249	)	$	(1,270	)
Income tax payments	(952		)	(933		)
Refund of income taxes	167			100
Dividends declared per common share	$	0.16		$	0.10
Non-cash activities:
Repurchase common stock from employees in exchange for the payment of income taxes	$	263		$	68
Repurchase common stock in exchange for the exercise of warrants	1,754			—
Issuance of treasury stock for the Company's investment savings 401(k) plan	368			273
Leasehold improvements paid by the landlord	—			1,496

Unrealized Losses Along with the Related Fair Value, Aggregated by the Length of Time the Investments were in a Continuous Unrealized Loss Position

Unrealized losses on available-for-sale securities, along with their related fair value, 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 Losses			Number of Securities	Fair Value		Unrealized Losses			Number of Securities
September 30, 2014
CLO securities	$	700	$	(3	)	1	$	439	$	(24	)	1
Equity securities	—		—			—	—		—			—
Total	$	700	$	(3	)	1	$	439	$	(24	)	1
December 31, 2013
CLO securities	$	2,312	$	(196	)	3	$	—	$	—		—
Equity securities	92		(8		)	1	—		—			—
Total	$	2,404	$	(204	)	4	$	—	$	—		—

Schedule of Equity Method Investments

 The following table details the Company’s investments in these vehicles, including the range of ownership interests owned (in thousands, except percentages):

	Range of Combined Ownership Interests	September 30,		December 31,
		2014		2013
Real estate investment entities	1% – 12%	$	8,513	$	8,271
Financial fund management partnerships	0.4% − 50%	4,098		5,294
Trapeza entities	33% − 50%	661		777
Investments in unconsolidated entities		$	13,272	$	14,342

Summary of Activity in the Allowance for Credit Losses for the Company's Financing Receivables

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

	Loans and receivables from Managed Entities			Leases and Loans			Rent Receivables			Total
Three Months Ended September 30, 2014:
Balance, beginning of period	$	39,028		$	—		$	2		$	39,030
Provision for credit losses	520			30			9			559
Charge-offs	(7,092		)	(30		)	(6		)	(7,128		)
Recoveries	64			2			—			66
Balance, end of period	$	32,520		$	2		$	5		$	32,527
Nine Months Ended September 30, 2014:
Balance, beginning of period	$	36,229		$	—		$	14		$	36,243
Provision for (reversal of) credit losses	3,321			25			(4		)	3,342
Charge-offs	(7,094		)	(30		)	(5		)	(7,129		)
Recoveries	64			7			—			71
Balance, end of period	$	32,520		$	2		$	5		$	32,527
Ending balance, individually evaluated for impairment	$	32,520		$	2		$	—		$	32,522
Ending balance, collectively evaluated for impairment	—			—			5			5
Balance, end of period	$	32,520		$	2		$	5		$	32,527

	Loans and receivables from Managed Entities			Leases and Loans			Rent Receivables			Total
Three Months Ended September 30, 2013:
Balance, beginning of period	$	34,587		$	—		$	29		$	34,616
Provision for (reversal of) credit losses	1,810			(18		)	16			1,808
Charge-offs	(669		)	—			(13		)	(682		)
Recoveries	—			18			—			18
Balance, end of period	$	35,728		$	—		$	32		$	35,760
Nine Months Ended September 30, 2013:
Balance, beginning of period	$	32,560		$	—		$	68		$	32,628
Provision for (reversal of) credit losses	3,817			(25		)	1			3,793
Charge-offs	(669		)	—			(37		)	(706		)
Recoveries	20			25			—			45
Balance, end of period	$	35,728		$	—		$	32		$	35,760
Ending balance, individually evaluated for impairment	$	35,728		$	—		$	—		$	35,728
Ending balance, collectively evaluated for impairment	—			—			32			32
Balance, end of period	$	35,728		$	—		$	32		$	35,760

Aging of the Company's Past Due Financing Receivables, Gross of Allowances for Credit Losses

The following table is the aging of the Company’s financing receivables (presented gross of allowance for credit losses) as of September 30, 2014 (in thousands):

	30-89 Days Past Due		90-180 Days Past Due		Greater than 181 Days		Total Past Due		Current		Total
Loans and receivables from managed    entities and related parties: (1)
Commercial finance     investment entities	$	—	$	—	$	34,907	$	34,907	$	16	$	34,923
Real estate investment entities	707		1,199		18,730		20,636		6,710		27,346
Financial fund management entities	—		1		40		41		456		497
Other	—		—		—		—		2,391		2,391
	707		1,200		53,677		55,584		9,573		65,157
Rent receivables - real estate	7		—		1		8		73		81
Total financing receivables	$	714	$	1,200	$	53,678	$	55,592	$	9,646	$	65,238

(1) Receivables are presented gross of an allowance for credit losses of $32.5 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 financing receivables (presented gross of allowance for credit losses) as of December 31, 2013 (in thousands):

	30-89 Days Past Due		90-180 Days Past Due		Greater than 181 Days		Total Past Due		Current		Total
Loans and receivables from    managed entities and    related parties: (1)
Commercial finance     investment entities	$	—	$	—	$	44,355	$	44,355	$	48	$	44,403
Real estate investment entities	793		1,229		16,323		18,345		3,142		21,487
Financial fund management entities	35		3		29		67		1,071		1,138
Other	33		21		—		54		70		124
	861		1,253		60,707		62,821		4,331		67,152
Rent receivables - real estate	14		4		10		28		63		91
Total financing receivables	$	875	$	1,257	$	60,717	$	62,849	$	4,394	$	67,243

(1) Receivables are presented gross of an allowance for credit losses of $36.2 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.

Information about Company's Impaired Financing Receivables

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, 2014
Financing receivables with a specific valuation allowance:
Loans and receivables from managed entities – commercial finance	$	985	$	33,495	$	32,511	$	38,443
Rent receivables – real estate	—		5		5		—
As of December 31, 2013
Financing receivables with a specific valuation allowance:
Loans and receivables from managed entities – commercial finance	$	2,690	$	38,919	$	36,229	$	38,649
Rent receivables – real estate	—		14		14		32

Schedule of Business Acquisitions, by Acquisition

The following table sets forth the allocation of the purchase price (in thousands):

Assets acquired:
Cash and cash equivalents	$	1,233
Loans held for sale	15,021
Loans held for investment	2,071
Wholesale and correspondent relationships	600
Other assets	5,828
Total assets	24,753
Less: Liabilities assumed:
Borrowings	14,584
Other liabilities	2,165
Total liabilities	16,749
Gain on bargain purchase	391
Total cash purchase price	$	7,613

Debt and Credit Facilities

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

	As of September 30, 2014				December 31, 2013
	Maximum Amount of Facility		Borrowings Outstanding		Borrowings Outstanding
Credit facilities:
TD Bank – secured revolving credit facility (1)	$	10,997	$	—	$	—
Republic Bank – secured revolving credit facility	3,000		—		—
			—		—
Other debt:
Senior Notes			10,000		10,000
Mortgage debt - hotel property			10,140		10,287
Other debt			311		332
Total borrowings outstanding			$	20,451	$	20,619

(1) The amount of the facility as shown has been reduced for outstanding letters of credit of $503,000 at September 30, 2014.

Schedule of Securitizations

Securitization	Closing Date	Maturity Dates	Reinvestment Period End	Total Note Paydowns as of September 30, 2014
				(in millions)
RREF CDO 2006-1 Senior Notes	August 2006	August 2046	September 2011	$	117.1
RREF CDO 2007-1 Senior Notes	June 2007	September 2046	June 2012	$	129.8
RCC CRE Notes 2013	December 2013	December 2028	N/A	$	34.0
RCC CRE 2014	July 2014	April 2032	N/A	$	—
Apidos CDO I Senior Notes	August 2005	July 2017	July 2011	$	271.7
Apidos CDO III Senior Notes	May 2006	September 2020	June 2012	$	178.9
Apidos Cinco CDO Senior Notes	May 2007	May 2020	May 2014	$	36.3
Moselle CLO S.A. Senior Notes	October 2005	January 2020	January 2012	$	68.6
Moselle CLO S.A. Securitized Borrowings	October 2005	January 2020	January 2012	$	—

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

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

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

RSO [Member]

Variable Interest Entity [Line Items]

Condensed Financial Statements

The following reflects the assets and liabilities and operations of RSO which were consolidated by the Company:

RSO Balance Sheets Detail (in thousands):
	September 30, 2014			December 31, 2013
ASSETS (1)
Cash and cash equivalents	$	163,269		$	262,270
Restricted cash	83,604			63,309
Subtotal - Cash and cash equivalents	246,873			325,579
Investment securities, trading	9,187			11,558
Investment securities available-for-sale, pledged as collateral, at fair value	204,843			162,608
Investment securities available-for-sale, at fair value	76,175			52,598
Subtotal - Investments, at fair value	290,205			226,764
Loans, pledged as collateral and net of allowances of $4.5 million and $13.8 million (of which $83.0 million and $0 at fair value)	1,744,899			1,369,526
Loans receivable–related party net of allowance of $936,000 and $0	4,172			6,966
Loans held for sale	91,382			21,916
Subtotal - Loans, before eliminations	1,840,453			1,398,408
Eliminations	(558		)	(950		)
Subtotal - Loans	1,839,895			1,397,458
Property held-for-sale	29,581			25,346
Investment in real estate	—			29,778
Investments in unconsolidated entities	60,540			69,069
Subtotal, Investments in real estate and unconsolidated entities	90,121			124,193
Line items included in "other assets":
Linked transactions, net at fair value	14,272			30,066
Derivatives, at fair value	21,618			—
Interest receivable	14,831			8,965
Deferred tax asset	4,853			5,212
Principal paydown receivable	34,297			6,821
Intangible assets	10,254			11,822
Prepaid expenses	4,529			2,871
Other assets	20,075			10,726
Subtotal - Other assets, before eliminations	124,729			76,483
Eliminations	(2,810		)	(16		)
Subtotal - Other assets	121,919			76,467
Total assets (excluding eliminations)	$	2,592,381		$	2,151,427
Total assets (including eliminations)	$	2,589,013		$	2,150,461
LIABILITIES (2)
Borrowings (of which $94.9 million and $0 at fair value)	$	1,590,958		$	1,319,810
Eliminations	283			205
Subtotal Borrowings	1,591,241			1,320,015
Distribution payable	30,340			27,023
Accrued interest expense	3,875			1,693
Derivatives, at fair value	8,830			10,586
Accrued tax liability	3,131			1,629
Deferred tax liability	—			4,112
Accounts payable and other liabilities	11,331			12,650
Subtotal - Other liabilities, before eliminations	57,507			57,693
Eliminations	(2,665		)	(2,446		)
Subtotal - Other liabilities	54,842			55,247
Total liabilities (before eliminations)	$	1,648,465		$	1,377,503
Total liabilities (after eliminations)	$	1,646,083		$	1,375,262

RSO Balance Sheets Detail (in thousands):
	September 30, 2014			December 31, 2013
(1) Assets of consolidated RSO's VIEs included in total assets above:
Restricted cash	$	80,633		$	61,372
Investments securities available-for-sale, pledged as collateral, at fair value	110,376			105,846
Loans held for sale	36,674			2,376
Loans, pledged as collateral and net of allowances of $4.0 million and $8.8 million ($83.0 million and $0 at fair value)	1,405,788			1,219,569
Interest receivable	8,066			5,627
Prepaid expenses	217			247
Principal receivable	34,100			6,821
Other assets	(12		)	—
Total assets of consolidated RSO VIEs	$	1,675,842		$	1,401,858
(2) Liabilities of consolidated RSO's VIEs included in total liabilities above:
Borrowings ($140.2 million and $0 at fair value)	$	1,214,923		$	1,070,339
Accrued interest expense	1,280			918
Derivatives, at fair value	7,958			10,191
Accounts payable and other liabilities	(418		)	1,604
Total liabilities of consolidated RSO VIEs	$	1,223,743		$	1,083,052

RSO Income Statement Detail (in thousands):
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
REVENUES
Interest income:
Loans	$	27,026		$	24,374		$	73,474		$	78,370
Securities	5,168			3,411			12,563			10,949
Interest income − other	1,647			679			5,481			3,180
Total interest income	33,841			28,464			91,518			92,499
Interest expense	11,589			11,762			31,836			34,061
Net interest income	22,252			16,702			59,682			58,438
Rental income	1,118			4,649			7,777			15,875
Dividend income	16			223			169			256
Equity in net earnings (losses) of unconsolidated subsidiaries	887			(535		)	4,663			(888		)
Fee income	2,344			1,245			7,166			4,182
Net realized and unrealized gains on sales of investment securities available-for-sale and loans	7,546			570			15,487			3,355
Net realized and unrealized gains (losses) on investment securities, trading	376			(229		)	(1,834		)	(864		)
Unrealized gain (losses) and net interest income on linked transactions, net	177			1,161			7,494			(4,343		)
Revenues from consolidated VIE-RSO	34,716			23,786			100,604			76,011
OPERATING EXPENSES
Management fees − related party	3,606			5,113			10,000			11,006
Equity compensation − related party	798			2,120			4,497			7,866
Rental operating expense	695			3,523			5,168			11,084
General and administrative	11,586			2,898			30,936			8,761
Depreciation and amortization	562			904			2,158			3,041
Income tax (benefit) expense	(237		)	722			(667		)	4,221
Net impairment losses recognized in earnings	—			255			—			811
Provision (recovery) for loan losses	1,439			741			(1,739		)	541
Total operating expenses	18,449			16,276			50,353			47,331
Reclassification of income tax expense	237			(722		)	667			(4,221		)
Expenses of consolidated VIE-RSO	18,686			15,554			51,020			43,110
Adjusted operating income	16,030			8,232			49,584			32,901
OTHER REVENUE (EXPENSE)
(Loss) gain on sale of real estate	(69		)	16,607			2,973			16,607
Other expense	—			—			(1,262		)	—
Loss on the reissuance of debt	(1,867		)	—			(2,469		)	—
Other expense, net, from consolidated VIE-RSO	(1,936		)	16,607			(758		)	16,607
Income from continuing operations	14,094			24,839			48,826			49,508
Income tax provision-RSO	(237		)	722			(667		)	4,221
NET INCOME	14,331			24,117			49,493			45,287
Net income allocated to preferred shares	(5,545		)	(1,996		)	(11,303		)	(5,107		)
Net income allocated to noncontrolling interests	(1,458		)	—			(1,069		)	—
NET INCOME ALLOCABLE TO RSO COMMON SHAREHOLDERS	$	7,328		$	22,121		$	37,121		$	40,180

RSO Cash Flow Detail (in thousands)	Nine Months Ended
	September 30,
	2014			2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	49,493		$	45,287
Items included in "Change in cash attributable to consolidated VIE-RSO":
(Recovery) provision for loan losses	(1,739		)	541
Depreciation of investments in real estate and other	2,252			1,638
Amortization of intangible assets	1,541			1,463
Amortization of term facilities	—			876
Accretion of net discounts on loans held for investment	(2,045		)	(8,306		)
Accretion of net discounts on securities available-for-sale	(2,847		)	(1,925		)
Amortization of discounts on convertible notes	896			—
Amortization of discount on notes securitization	70			3,937
Amortization of debt issuance costs on notes of securitizations	2,596			2,868
Amortization of stock-based compensation	4,497			7,866
Amortization of terminated derivative instruments	212			322
Distribution accrued to preferred stockholders	—			(5,107		)
Accretion of interest-only available-for-sale securities	(573		)	(714		)
Non-cash incentive compensation to the Manager	—			484
Deferred income tax (benefit) provision	(689		)	502
Change in mortgage loans held for sale, net	(42,178		)	—
Purchase of securities, trading	(4,000		)	(11,044		)
Principal payments on securities, trading	50			4,211
Proceeds from sales of securities, trading	379			18,713
Net realized and unrealized gain on investment securities, trading	1,834			864
Net realized gains on sales of investment securities available-for-sale and loans	(15,488		)	(3,355		)
Loss on the reissuance of debt	2,469			—
Gain on sale of real estate	(2,973		)	(16,607		)
Net impairment losses recognized in earnings	—			802
Linked transactions fair value adjustments	(5,713		)	5,224
Equity in net (earnings) losses of unconsolidated subsidiaries	(4,663		)	888
Changes in operating assets and liabilities, net of acquisitions	6,757			17,404
Net cash (used in) provided by operating activities	(59,355		)	21,545
Change in consolidated VIE-RSO cash for the period	99,001			(59,185		)
Subtotal - Change in cash attributable to consolidated VIE-RSO before eliminations	39,646			(37,640		)
Elimination of intercompany activity	2,714			(291		)
Subtotal - Adjustments to reconcile net income and operating cash flows to net income (loss) of consolidated VIE-RSO	42,360			(37,931		)
Non-cash incentive compensation to Manager	—			484
Elimination of intercompany activity	—			(484		)
Non-cash incentive compensation to Manager, after eliminations	—			—
Net cash (used in) provided by operating activities of consolidated VIE-RSO (excluding eliminations)	(9,862		)	66,832

	Nine Months Ended
	September 30,
	2014		2013
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of loans	(667,774	)	(555,051	)
Purchase of securities available-for-sale	(145,138	)	(120,599	)
Subtotal - Purchase of loans and securities by consolidated VIE-RSO, before eliminations	(812,912	)	(675,650	)
Eliminations	—		—
Subtotal - Purchase of loans and securities by consolidated VIE-RSO	(812,912	)	(675,650	)
Principal payments received on loans	315,778		487,606
Proceeds from sale of loans	76,314		314,112
Principal payments on securities available-for-sale	40,748		33,010
Proceeds from sale of securities available-for-sale	117,367		7,025
Principal payments received on loans - related parties	2,706		499
Subtotal - principal payments and proceeds from sales received by consolidated VIE-RSO, before eliminations	552,913		842,252
Decrease in restricted cash	18,328		30,079
Items included in "Other investing activity of consolidated VIE-RSO":
Investment in unconsolidated entity	8,911		(25,508	)
Acquisition of Moselle CLO S.A.	(30,433	)	—
Improvement of real estate held-for-sale	—		(404	)
Proceeds from sale of real estate held-for-sale	31,639		37,001
Distributions from investments in real estate	—		522
Improvements in investments in real estate held-for-sale	(225	)	(365	)
Investment in loans - related parties	(849	)	—
Purchase of furniture and fixtures	(69	)	(128	)
Acquisition of property and equipment	(362	)	—
Settlement of derivative instruments for investments	(19,245	)	—
Subtotal - Other investing activity of consolidated VIE-RSO, before eliminations	(10,633	)	11,118
Eliminations	(391	)	—
Subtotal - Other investing activity of consolidated VIE-RSO	(11,024	)	11,118
Net cash (used in) provided by investing activities of consolidated VIE-RSO (excluding eliminations)	(252,304	)	207,799

	Nine Months Ended
	September 30,
	2014			2013
CASH FLOWS FROM FINANCING ACTIVITIES:
Items included in "Net borrowings (repayments) of debt by consolidated VIE-RSO"
Proceeds from borrowings:
Repurchase agreements	49,234			143,203
Warehouse agreement borrowings	43,000			—
CDO borrowings	235,344			—
Senior Secured Revolving Credit Facility	35,500			—
Reissuance of debt	39,635			—
Payments on borrowings:
Collateralized debt obligations	(301,040		)	(450,437		)
Mortgage payable payments	—			(13,600		)
Warehouse agreement payments	(33,719		)	—
Subtotal - net borrowings (repayments) of debt by consolidated VIE-RSO	67,954			(320,834		)
Distributions paid on common stock	(77,636		)	(68,010		)
Elimination of dividends paid to RAI	1,716			—
Distributions paid on common stock of consolidated VIE-RSO, after eliminations	(75,920		)	(68,010		)
Net proceeds from issuances of common stock (net of offering costs of $0 and $4,228)	—			114,018
Net proceeds from dividend reinvestment and stock purchase plan (net of offering costs of $0 and $0)	25,416			19,092
Proceeds from issuance of 8.5% Series A redeemable preferred shares (net of offering costs of $203 and $3)	8,397			112
Proceeds from issuance of 8.25% Series B redeemable preferred shares (net of offering costs of $363 and $1,091)	27,940			51,057
Proceeds from issuance of 8.625% Series C redeemable preferred shares (net of offering costs of $4,005 and $0)	115,815			—
Subtotal - net proceeds from issuance of stock by consolidated VIE-RSO	177,568			184,279
Minority interest equity	12,676			2,200
Payment of debt issuance costs	(7,284		)	(1,740		)
Settlement of derivative instruments	(23		)	—
Payment of equity to third party sub-note holders	(2,183		)	(6,952		)
Distributions paid on preferred stock	(7,907		)	(4,389		)
Subtotal - Other consolidated financing activity of consolidated VIE-RSO, before eliminations	(4,721		)	(10,881		)
Eliminations	175			—
Subtotal - Other consolidated financing activity of consolidated VIE-RSO	(4,546		)	(10,881		)
Net cash provided by (used in) financing activities of consolidated VIE-RSO, excluding eliminations	163,165			(215,446		)
Net (decrease) increase in cash and cash equivalents	(99,001		)	59,185
Cash and cash equivalents, beginning of year of consolidated VIE-RSO	262,270			85,278
Cash and cash equivalents, end of period of consolidated VIE-RSO	$	163,269		$	144,463
Supplemental disclosures:
Interest expense paid in cash	$	26,782		$	28,391
Income taxes paid in cash	$	3,293		$	8,997

Schedule of Variable Interest Entities

The following table shows the classification and carrying value of assets and liabilities of RSO's consolidated VIEs as of September 30, 2014 (in thousands):

	Apidos I			Apidos III		Apidos Cinco		Apidos VIII		Whitney CLO I		RREF 2006-1		RREF 2007-1		RCC CRE Notes 2013		RCC CRE 2014			Moselle			Total
ASSETS
Restricted cash (1)	$	15,366		$	3,529	$	24,663	$	5	$	80	$	20	$	250	$	3,337	$	—		$	33,383		$	80,633
Investment securities available-for-sale, pledged as collateral, at fair value	3,452			3,947		11,313		—		—		11,359		67,784		—		—			12,521			110,376
Loans, pledged as collateral	9,896			87,750		274,442		—		—		128,369		204,978		267,963		349,381			83,009			1,405,788
Loans held for sale	35,740			364		570		—		—		—		—		—		—			—			36,674
Interest receivable	(268		)	443		959		—		—		2,471		2,015		1,114		1,332			—			8,066
Prepaid assets	6			7		28		—		—		100		76		—		—			—			217
Principal paydown receivable	—			—		—		—		—		25,803		8,297		—		—			—			34,100
Other assets	—			—		—		—		—		—		—		—		(12		)	—			(12		)
Total assets (2)	$	64,192		$	96,040	$	311,975	$	5	$	80	$	168,122	$	283,400	$	272,414	$	350,701		$	128,913		$	1,675,842
LIABILITIES
Borrowings	$	47,848		$	83,621	$	284,160	$	—	$	—	$	105,841	$	137,004	$	223,897	$	231,365		$	101,187		$	1,214,923
Accrued interest expense	218			46		289		—		—		44		99		172		123			289			1,280
Derivatives, at fair value	—			—		—		—		—		1,044		6,914		—		—			—			7,958
Accounts payable and other liabilities	22			48		25		195		—		11		1		—		10			(730		)	(418		)
Total liabilities	$	48,088		$	83,715	$	284,474	$	195	$	—	$	106,940	$	144,018	$	224,069	$	231,498		$	100,746		$	1,223,743

(1) Includes $3.6 million available for reinvestment in certain of the securitizations.

(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 September 30, 2014 (in thousands):

	Unconsolidated Variable Interest Entities
	LEAF		Unsecured Junior Subordinated Debentures			Resource Capital Asset Management CDOs		Total		Maximum Exposure to Loss
Investment in unconsolidated entities	$	40,157	$	1,548		$	—	$	41,705	41,705
Intangible assets	—		—			9,878		9,878		9,878
Total assets	40,157		1,548			9,878		51,583
Borrowings	—		51,154			—		51,154		N/A
Total liabilities	—		51,154			—		51,154		N/A
Net asset (liability)	$	40,157	$	(49,606	)	9,878		$	429	N/A

Supplemental Cash Flow Information

Supplemental disclosure of cash flow information is summarized for the periods indicated (in thousands):

	Nine Months Ended
	September 30,
	2014		2013
Non-cash financing activities include the following:
Distributions on common stock declared but not paid	$	26,629	$	25,447
Distributions on preferred stock declared but not paid	$	5,555	$	2,023
Issuance of restricted stock	$	890	$	242

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, 2014
Structured notes, trading	$	10,821	$	317	$	(2,017	)	$	9,121
RMBS, trading	1,897		—		(1,831		)	66
Total	$	12,718	$	317	$	(3,848	)	$	9,187
December 31, 2013
Structured notes, trading	$	8,057	$	4,050	$	(1,000	)	$	11,107
RMBS, trading	1,919		—		(1,468		)	451
Total	$	9,976	$	4,050	$	(2,468	)	$	11,558

Available-for-sale Securities

The aggregate discount (premium) recognized as of the periods indicated (in thousands) are:

	September 30, 2014		December 31, 2013
CMBS	$	3,609	$	6,583
RMBS	$	1,876	$	—
ABS	$	2,431	$	2,394
Corporate bonds	$	42	$	(68	)

The following table summarizes RSO's sales of investment securities available-for-sale, (in thousands, except number of securities):

	Positions Sold	Par Amount Sold		Realized Gain (Loss)
As of September 30, 2014
CMBS	3	$	15,970	$	480
ABS	3	$	6.947	$	3.484
As of December 31, 2013
CMBS	4	$	14,500	$	466
Corporate bonds	35	$	34,253	$	(474	)

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		Unrealized Gains		Unrealized Losses			Fair Value
September 30, 2014
CMBS	$	176,970	$	5,856	$	(7,510	)	$	175,316
RMBS	30,697		848		—			31,545
ABS	60,980		12,211		(1,435		)	71,756
Corporate bonds	2,413		12		(24		)	2,401
Total	$	271,060	$	18,927	$	(8,969	)	$	281,018
December 31, 2013
CMBS	$	185,178	$	7,570	$	(12,030	)	$	180,718
ABS	30,775		1,644		(394		)	32,025
Corporate bonds	2,517		16		(70		)	2,463
Total	$	218,470	$	9,230	$	(12,494	)	$	215,206

Estimated maturities of available for sale securities

The following table summarizes the estimated maturities of RSO’s investment securities according to their estimated weighted average life classifications (in thousands, except percentages):

Weighted Average Life	Fair Value		Amortized Cost		Weighted Average Coupon
September 30, 2014
Less than one year	$	50,160	$	56,395	3.84	%
Greater than one year and less than five years	142,079		133,098		5.03	%
Greater than five years and less than ten years	44,913		38,301		5.32	%
Greater than ten years	43,866		43,266		5.40	%
Total	$	281,018	$	271,060	4.97	%
December 31, 2013
Less than one year	$	39,256	$	40,931	5.25	%
Greater than one year and less than five years	139,700		141,760		4.69	%
Greater than five years and less than ten years	26,526		25,707		1.10	%
Greater than ten years	9,724		10,072		7.90	%
Total	$	215,206	$	218,470	4.49	%

Unrealized Losses Along with the Related Fair Value, Aggregated by the Length of Time the Investments were in a Continuous Unrealized Loss Position

The following table shows the fair value, gross unrealized losses and number of securities 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, except number of securities):

	Less than 12 Months						More than 12 Months						Total
	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses			Number of Securities
As of September 30, 2014
CMBS	$	35,833	$	(580	)	18	$	27,065	$	(6,930	)	14	$	62,898	$	(7,510	)	32
ABS	13,792		(1,248		)	13	4,410		(187		)	7	18,202		(1,435		)	20
Corporate Bonds	1,439		(24		)	1	—		—			—	1,439		(24		)	1
Total temporarily impaired securities	$	51,064	$	(1,852	)	32	$	31,475	$	(7,117	)	21	$	82,539	$	(8,969	)	53
As of December 31, 2013
CMBS	$	52,012	$	(7,496	)	34	$	14,159	$	(4,534	)	10	$	66,171	$	(12,030	)	44
ABS	143		(1		)	1	6,692		(393		)	9	6,835		(394		)	10
Corporate Bonds	865		(70		)	1	—		—			—	865		(70		)	1
Total temporarily impaired securities	$	53,020	$	(7,567	)	36	$	20,851	$	(4,927	)	19	$	73,871	$	(12,494	)	55

Investments in real estate

The table below summarizes RSO's investments in real estate (in thousands, except number of properties):

	As of December 31, 2013
	Book Value			Number of Properties
Multifamily property	$	22,107		1
Office property	10,273			1
Subtotal	32,380
Less:  Accumulated depreciation	(2,602		)
Investments in real estate	$	29,778

Schedule of Receivables with Imputed Interest

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

Loan Description	Principal			Unamortized Discount (1)			Carrying Value (2)
As of September 30, 2014
Commercial real estate loans:
Whole loans	$	1,028,393		$	(5,422	)	$	1,022,971
B notes	16,164			(57		)	16,107
Mezzanine loans	67,400			(95		)	67,305
Total commercial real estate loans	1,111,957			(5,574		)	1,106,383
Bank loans	642,419			(2,221		)	640,198
Residential mortgage loans, held for investment	2,825			—			2,825
Subtotal loans before allowances	1,757,201			(7,795		)	1,749,406
Allowance for loan loss	(4,507		)	—			(4,507		)
Total loans held for investment	1,752,694			(7,795		)	1,744,899
Bank loans held-for-sale	36,674			—			36,674
Residential mortgage loans held-for-sale	54,708			—			54,708
Total loans held-for-sale	91,382			—			91,382
Total loans	$	1,844,076		$	(7,795	)	$	1,836,281
As of December 31, 2013
Commercial real estate loans:
Whole loans	$	749,083		$	(3,294	)	$	745,789
B notes	16,288			(83		)	16,205
Mezzanine loans	64,417			(100		)	64,317
Total commercial real estate loans	829,788			(3,477		)	826,311
Bank loans	559,206			(4,033		)	555,173
Residential mortgage loans, held for investment	1,849			—			1,849
Subtotal loans before allowances	1,390,843			(7,510		)	1,383,333
Allowance for loan loss	(13,807		)	—			(13,807		)
Total loans held for investment	1,377,036			(7,510		)	1,369,526
Bank loans held-for-sale	6,850			—			6,850
Residential mortgage loans held-for-sale	15,066			—			15,066
Total loans held-for-sale	21,916			—			21,916
Total loans	$	1,398,952		$	(7,510	)	$	1,391,442

(1) Amounts include deferred amendment fees of $133,000 and $216,000 and deferred upfront fees of $97,000 and $141,000 being amortized over the life of the bank loans as of September 30, 2014 and December 31, 2013, respectively.  Amounts include loan origination fees of $5.6 million and $3.3 million and loan extension fees of $0 and $73,000 being amortized over the life of the commercial real estate loans as of September 30, 2014 and December 31, 2013, respectively.

(2) Substantially all loans are pledged as collateral under various borrowings at September 30, 2014 and December 31, 2013, respectively.

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

The following is a summary of the weighted average remaining lives of RSO’s bank loans held for investment, at amortized cost and loans held-for-sale, at the lower of cost or market (in thousands):

	September 30, 2014		December 31, 2013
Less than one year	$	46,779	$	36,985
Greater than one year and less than five years	479,790		379,874
Five years or greater	150,303		145,164
	$	676,872	$	562,023

Summary of the commercial real estate loans

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

Description	Quantity	Amortized Cost		Contracted Interest Rates	Maturity Dates(3)
As of September 30, 2014
Whole loans, floating rate (1) (4) (5)	60	$	1,022,971	LIBOR plus 1.75% to LIBOR plus 15.00%	January 2015 to February 2019
B notes, fixed rate	1	16,107		8.68%	April 2016
Mezzanine loans, floating rate	1	12,544		LIBOR plus 15.32%	April 2016
Mezzanine loans, fixed rate (6)	3	54,761		0.50% to 18.71%	September 2016 to September 2021
Total (2)	65	$	1,106,383
As of December 31, 2013
Whole loans, floating rate (1) (4)	51	$	745,789	LIBOR plus 2.68% to LIBOR plus 12.14%	March 2014 to February 2019
B notes, fixed rate	1	16,205		8.68%	April 2016
Mezzanine loans, floating rate	1	12,455		LIBOR plus 15.32%	April 2016
Mezzanine loans, fixed rate (6)	3	51,862		0.50% to 18.72%	September 2014 to September 2019
Total (2)	56	$	826,311

(1) Whole loans had $68.3 million and $13.7 million in unfunded loan commitments as of September 30, 2014 and December 31, 2013, respectively.  These unfunded commitments are advanced as the borrowers formally request additional funding as permitted under the loan agreement and any necessary approvals have been obtained.

(2) The total does not include an allowance for loan loss of $4.0 million and $10.4 million as of September 30, 2014 and December 31, 2013, respectively.

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

(4) As of September 30, 2014, floating rate whole loans includes $4.0 million and $12.0 million mezzanine components of two whole loans, which have fixed rates of 15.0% and 12.0%, respectively.

(5) Floating rate whole loans include a $799,000 junior mezzanine tranche of a whole loan that has a fixed rate of 10.0% as of September 30, 2014.

(6) Fixed rate mezzanine loans include a mezzanine loan that was modified into two tranches, which both currently pay interest at 0.48%. 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 maturity of RSO’s commercial real estate loans, at amortized cost (in thousands):

Description	2014		2015		2016 and Thereafter		Total
As of September 30, 2014
B notes	$	—	$	—	$	16,107	$	16,107
Mezzanine loans	—		—		67,305		67,305
Whole loans	—		—		1,022,971		1,022,971
Total (1)	$	—	$	—	$	1,106,383	$	1,106,383
As of December 31, 2013
B notes	$	—	$	—	$	16,205	$	16,205
Mezzanine loans	5,711		—		58,606		64,317
Whole loans	—		17,949		727,840		745,789
Total (1)	$	5,711	$	17,949	$	802,651	$	826,311

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

Loans held for investment

The following table provides information as to the lien position status of RSO's consolidated bank loans, (in thousands):

	Amortized Cost
	Apidos I		Apidos III		Apidos Cinco		Whitney CLO I		Northport LLC (1)		Moselle		Total
As of September 30, 2014
Loans held for investment:
First lien loans	$	9,895	$	87,107	$	270,598	—		$	101,021	$	80,721	$	549,342
Second lien loans	—		—		3,604		—		83,614		2,201		89,419
Third lien loans	—		—		—		—		—		—		—
Defaulted first lien loans	—		—		—		—		—		—		—
Defaulted second lien loans	—		972		379		—		—		86		1,437
Total	9,895		88,079		274,581		—		184,635		83,008		640,198
First lien loans held-for-sale, at fair value	35,738		365		571		—		—		—		36,674
Total	$	45,633	$	88,444	$	275,152	—		$	184,635	$	83,008	$	676,872
As of December 31, 2013
Loans held for investment:
First lien loans	$	79,483	$	126,890	$	296,368	$	72	$	31,974	—		$	534,787
Second lien loans	—		—		1,139		—		7,805		—		8,944
Third lien loans	3,020		2,475		2,463		—		—		—		7,958
Defaulted first lien loans	1,206		1,124		486		—		—		—		2,816
Defaulted second lien loans	334		334		—		—		—		—		668
Total	84,043		130,823		300,456		72		39,779		—		555,173
First lien loans held-for-sale, at fair value	537		651		1,189		—		4,473		—		6,850
Total	$	84,580	$	131,474	$	301,645	$	72	$	44,252	—		$	562,023

(1) In September 2014, Resource TRS LLC and RCC Commercial transferred all loans to Northport LLC. At December 31, 2013, Resource TRS LLC and RCC Commercial held a total of $34.0 million and $10.3 million of loans, respectively, at amortized cost.

Allocation of Allowance for Loan Loss

The following is a summary of the allocation of the allowance for loan loss (in thousands, except percentages) by asset class:

Description	Allowance for Loan Loss		Percentage of Total Allowance
As of September 30, 2014
B notes	$	69	1.53%
Mezzanine loans	289		6.41%
Whole loans	3,685		81.76%
Bank loans	464		10.30%
Total	$	4,507
As of December 31, 2013
B notes	$	174	1.26%
Mezzanine loans	559		4.05%
Whole loans	9,683		70.13%
Bank loans	3,391		24.56%
Total	$	13,807

Schedule of Equity Method Investments

The following table shows RSO's investments in unconsolidated entities as of September 30, 2014 and December 31, 2013 and equity in net earnings (losses) of unconsolidated subsidiaries for the three and nine months ended September 30, 2014 and 2013 (in thousands):

						Equity in Net Earnings (Losses) of Unconsolidated Subsidiary
		Balance as of		Balance as of		For the three months ended		For the three months ended			For the three months ended			For the nine months ended
	Ownership %	September 30, 2014		December 31, 2013		September 30, 2014		September 30, 2013			September 30, 2014			September 30, 2013
Värde Investment Partners, L.P.	7.5%	$	654	$	674	$	—	$	6		$	(19	)	$	49
RRE VIP Borrower, LLC	3% to 5%	—		—		770		(521		)	2,506			(735		)
Investment in LCC Preferred Stock	28.3%	40,157		41,016		13		(346		)	(859		)	(378		)
Investment in CVC Global Credit Opportunities Fund (1)	29.57%	18,181		16,177		47		433			2,004			526
Investment in Life Care Funding (1)	50.2%	—		1,530		—		(107		)	(75		)	(350		)
Investment in School Lane House (4)		—		975		57		—			1,106			—
Subtotal		58,992		60,372		887		(535		)	4,663			(888		)
Investment in RCT I and II (2)	3%	1,548		1,548		601		1,785			1,785			1,800
Investment in Preferred Equity (3)		—		7,149		—		332			410			821
Total		$	60,540	$	69,069	$	1,488	$	1,582		$	6,858		$	1,733

(1) RSO began consolidating this investment during the first quarter of 2014. Ownership % represents ownership after consolidation.

(2) For the three and nine months ended September 30, 2014 and 2013, these amounts are recorded in interest expense on RSO's consolidated statements of income.

(3) For the three and nine months ended September 30, 2014 and 2013, these amounts are recorded in interest income on loans on RSO's consolidated statements of income.

(4) Investment in School Lane House and preferred equity were sold as of September 30, 2014.

Summary of Activity in the Allowance for Credit Losses for the Company's Financing Receivables

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			Residential Mortgage Loans		Loans Receivable-Related Party		Total
As of September 30, 2014
Allowance for Loan Losses:
Allowance for losses at January 1, 2014	$	10,416		$	3,391		$	—	$	—	$	13,807
(Recovery) provision for loan losses	(3,708		)	1,033			—		936		(1,739		)
Loans charged-off	(2,665		)	(3,960		)	—		—		(6,625		)
Allowance for losses at September 30, 2014	$	4,043		$	464		$	—	$	936	$	5,443
Ending balance:
Individually evaluated for impairment	$	—		$	464		$	—	$	936	$	1,400
Collectively evaluated for impairment	$	4,043		$	—		$	—	$	—	$	4,043
Loans acquired with deteriorated credit quality	$	—		$	—		$	—	$	—	$	—
Loans:
Ending balance:
Individually evaluated for impairment	$	165,960		$	2,340		$	—	$	5,108	$	173,408
Collectively evaluated for impairment (1)	$	940,423		$	637,772		$	2,825	$	—	$	1,581,020
Loans acquired with deteriorated credit quality	$	—		$	86		$	—	$	—	$	86
As of December 31, 2013
Allowance for Loan Losses:
Allowance for losses at January 1, 2013	$	7,986		$	9,705		$	—	$	—	$	17,691
Provision for loan losses	2,686			334			—		—		3,020
Loans charged-off	(256		)	(6,648		)	—		—		(6,904		)
Allowance for losses at December 31, 2013	$	10,416		$	3,391		$	—	$	—	$	13,807
Ending balance:
Individually evaluated for impairment	$	4,572		$	2,621		$	—	$	—	$	7,193
Collectively evaluated for impairment	$	5,844		$	770		$	—	$	—	$	6,614
Loans acquired with deteriorated credit quality	$	—		$	—		$	—	$	—	$	—
Loans:
Ending balance: (2)
Individually evaluated for impairment	$	194,403		$	3,554		$	—	$	6,966	$	204,923
Collectively evaluated for impairment	$	631,908		$	558,469		$	16,915	$	—	$	1,207,292
Loans acquired with deteriorated credit quality	$	—		$	—		$	—	$	—	$	—

Financing Receivable Credit Quality Indicators

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, 2014
Bank loans	$	632,588	$	—	$	6,173	$	—	$	1,437	$	36,674	$	676,872
As of December 31, 2013
Bank loans	$	488,004	$	42,476	$	18,806	$	2,333	$	3,554	$	6,850	$	562,023

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

	Rating 1		Rating 2		Rating 3		Rating 4		Total
As of September 30, 2014
Whole loans	$	990,471	$	32,500	$	—	$	—	$	1,022,971
B notes	16,107		—		—		—		16,107
Mezzanine loans	45,447		21,858		—		—		67,305
	$	1,052,025	$	54,358	$	—	$	—	$	1,106,383
As of December 31, 2013
Whole loans	$	680,718	$	32,500	$	32,571	$	—	$	745,789
B notes	16,205		—		—		—		16,205
Mezzanine loans	51,862		12,455		—		—		64,317
	$	748,785	$	44,955	$	32,571	$	—	$	826,311

Aging of the Company's Past Due Financing Receivables, Gross of Allowances for Credit Losses

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
As of September 30, 2014
Whole loans	$	—	$	—	$	—	$	—	$	1,022,971	$	1,022,971	$	—
B notes	—		—		—		—		16,107		16,107		—
Mezzanine loans	—		—		—		—		67,305		67,305		—
Bank loans (1) (2)	774		—		1,652		2,426		674,446		676,872		—
Residential mortgage loans (3)	—		251		117		368		57,165		57,533		—
Loans receivable-related party	—		—		—		—		5,108		5,108		—
Total loans	$	774	$	251	$	1,769	$	2,794	$	1,843,102	$	1,845,896	$	—
As of December 31, 2013
Whole loans	$	—	$	—	$	—	$	—	$	745,789	$	745,789	$	—
B notes	—		—		—		—		16,205		16,205		—
Mezzanine loans	—		—		—		—		64,317		64,317		—
Bank loans (2)	—		—		3,554		3,554		558,469		562,023		—
Residential mortgage loans (3)	234		91		268		593		16,322		16,915		—
Loans receivable-related party	—		—		—		—		6,966		6,966		—
Total loans	$	234	$	91	$	3,822	$	4,147	$	1,408,068	$	1,412,215	$	—

Information about Company's Impaired Financing Receivables

The following tables show impaired loans as of the dates indicated (in thousands):

	Recorded Balance		Unpaid Principal Balance		Specific Allowance			Average Investment in Impaired Loans		Interest Income Recognized
As of September 30, 2014
Loans without a specific valuation allowance:
Whole loans	$	127,888	$	127,888	$	—		$	126,591	$	11,882
B notes	$	—	$	—	$	—		$	—	$	—
Mezzanine loans	$	38,072	$	38,072	$	—		$	38,072	$	2,543
Bank loans	$	86	$	86	$	—		$	86	$	—
Residential mortgage loans	$	2,825	$	2,825	$	—		$	2,825	$	107
Loans receivable - related party	$	—	$	—	$	—		$	—	$	—
Loans with a specific valuation allowance:
Whole loans	$	—	$	—	$	—		$	—	$	—
B notes	$	—	$	—	$	—		$	—	$	—
Mezzanine loans	$	—	$	—	$	—		$	—	$	—
Bank loans	$	2,340	$	2,340	$	(464	)	$	287	$	—
Residential mortgage loans	$	—	$	—	$	—		$	—	$	—
Loans receivable - related party	$	3,929	$	3,929	$	(936	)	$	4,831	$	221
Total:
Whole loans	$	127,888	$	127,888	$	—		$	126,591	$	11,882
B notes	—		—		—			—		—
Mezzanine loans	38,072		38,072		—			38,072		2,543
Bank loans	2,426		2,426		(464		)	373		—
Residential mortgage loans	2,825		2,825		—			2,825		107
Loans receivable - related party	3,929		3,929		(936		)	4,831		221
	$	175,140	$	175,140	$	(1,400	)	$	172,692	$	14,753

	Recorded Balance		Unpaid Principal Balance		Specific Allowance			Average Investment in Impaired Loans		Interest Income Recognized
As of December 31, 2013
Loans without a specific valuation allowance:
Whole loans	$	130,759	$	130,759	$	—		$	123,495	$	8,439
B notes	$	—	$	—	$	—		$	—	$	—
Mezzanine loans	$	38,072	$	38,072	$	—		$	38,072	$	1,615
Bank loans	$	—	$	—	$	—		$	—	$	—
Residential mortgage loans	$	315	$	268	$	—		$	—	$	—
Loans receivable - related party	$	5,733	$	5,733	$	—		$	—	$	—
Loans with a specific valuation allowance:
Whole loans	$	25,572	$	25,572	$	(4,572	)	$	24,748	$	1,622
B notes	$	—	$	—	$	—		$	—	$	—
Mezzanine loans	$	—	$	—	$	—		$	—	$	—
Bank loans	$	3,554	$	3,554	$	(2,621	)	$	—	$	—
Residential mortgage loans	$	—	$	—	$	—		$	—	$	—
Loans receivable - related party	$	—	$	—	$	—		$	—	$	—
Total:
Whole loans	$	156,331	$	156,331	$	(4,572	)	$	148,243	$	10,061
B notes	—		—		—			—		—
Mezzanine loans	38,072		38,072		—			38,072		1,615
Bank loans	3,554		3,554		(2,621		)	—		—
Residential mortgage loans	315		268		—			—		—
Loans receivable - related party	5,733		5,733		—			—		—
	$	204,005	$	203,958	$	(7,193	)	$	186,315	$	11,676

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, 2014
Whole loans	2	$	16,039	$	16,039
B notes	—	—		—
Mezzanine loans	1	38,072		38,072
Bank loans	—	—		—
Loans receivable - related party	—	—		—
Total loans	3	$	54,111	$	54,111
Three Months Ended September 30, 2013
Whole loans	2	$	48,374	$	52,716
B notes	—	—		—
Mezzanine loans	—	—		—
Bank loans	—	—		—
Lease receivables	—	—		—
Loans receivable - related party	—	—		—
Total loans	2	$	48,374	$	52,716
Nine Months Ended September 30, 2014
Whole loans	2	$	16,039	$	16,039
B notes	—	—		—
Mezzanine loans	1	38,072		38,072
Bank loans	—	—		—
Loans receivable - related party	—	—		—
Total loans	3	$	54,111	$	54,111
Nine Months Ended September 30, 2013
Whole loans	4	$	104,702	$	109,044
B notes	—	—		—
Mezzanine loans	—	—		—
Bank loans	—	—		—
Lease receivables	—	—		—
Loans receivable - related party	1	6,592		6,592
Total loans	5	$	111,294	$	115,636

Schedule of Intangible Assets and Goodwill

The following table summarizes intangible assets (in thousands).

	Asset Balance		Accumulated Amortization			Net Asset
As of September 30, 2014
Investment in RCAM	$	21,213	$	(11,325	)	$	9,888
Investment in PCM:
Wholesale or correspondent relationships	600		(234		)	366
Total intangible assets	$	21,813	$	(11,559	)	$	10,254
As of December 31, 2013
Investment in RCAM	$	21,213	$	(9,980	)	$	11,233
Investments in real estate:
In-place leases	2,461		(2,430		)	31
Above market leases	29		(29		)	—
Investment in PCM:
Wholesale or correspondent relationships	600		(42		)	558
Total intangible assets	$	24,303	$	(12,481	)	$	11,822

Debt and Credit Facilities

Certain information with respect to RSO’s borrowings is summarized in the following table (in thousands, except percentages):

	Outstanding Borrowings		Unamortized Issuance Costs and Discounts		Principal Outstanding		Weighted Average Borrowing Rate		Weighted Average Remaining Maturity	Value of Collateral
As of September 30, 2014
RREF CDO 2006-1 Senior Notes	$	105,841	$	1	$	105,842	1.93	%	31.9 years	$	139,267
RREF CDO 2007-1 Senior Notes	137,004		242		137,246		1.06	%	32.0 years	273,839
RCC CRE Notes 2013	223,897		2,943		226,840		2.10	%	14.2 years	269,371
RCC CRE 2014	231,365		3,979		235,344		1.44	%	17.6 years	347,511
Apidos CDO I Senior Notes	47,848		—		47,848		2.54	%	2.8 years	63,956
Apidos CDO III Senior Notes	83,621		—		83,621		1.11	%	6.0 years	94,516
Apidos Cinco CDO Senior Notes	284,160		358		284,518		0.74	%	5.6 years	303,385
Moselle CLO S.A. Senior Notes, at fair value (6)	94,904		—		94,904		1.19	%	5.3 years	127,312
Moselle CLO S.A. Securitized Borrowings, at fair value (1)	5,212		—		5,212		1.19	%	N/A	—
Unsecured Junior Subordinated Debentures (2)	51,154		394		51,548		0.04	%	22.1 years	—
6.0% Convertible Senior Notes	107,979		7,021		115,000		6.00	%	4.2 years	—
CRE - Term Repurchase Facilities (3)	55,280		654		55,934		2.32	%	20 days	83,133
CMBS - Term Repurchase Facility (4)	21,559		—		21,559		1.43	%	23 days	26,540
RMBS - Term Repurchase Facility (5)	22,705		55		22,760		1.15	%	1 day	28,533
Residential Mortgage Financing Agreements	48,885		—		48,885		3.56	%	278 days	68,417
CMBS - Short Term Repurchase Agreements	36,633		—		36,633		1.53	%	23 days	47,224
Senior Secured Revolving Credit Agreement (7)	32,911		2,589		35,500		4.13	%	3 years	184,167
Total	$	1,590,958	$	18,236	$	1,609,194	1.98%		12.2 years	$	2,057,171

	Outstanding Borrowings		Unamortized Issuance Costs and Discounts		Principal Outstanding		Weighted Average Borrowing Rate		Weighted Average Remaining Maturity	Value of Collateral
As of December 31, 2013
RREF CDO 2006-1 Senior Notes	$	94,004	$	205	$	94,209	1.87	%	32.6 years	$	169,115
RREF CDO 2007-1 Senior Notes	177,837		719		178,556		0.84	%	32.8 years	318,933
RCC CRE Notes 2013	256,571		4,269		260,840		2.03	%	15.0 years	305,586
Apidos CDO I Senior Notes	87,131		—		87,131		1.68	%	3.6 years	103,736
Apidos CDO III Senior Notes	133,209		117		133,326		0.88	%	6.7 years	145,930
Apidos Cinco CDO Senior Notes	321,147		853		322,000		0.74	%	6.4 years	342,796
Whitney CLO I Securitized Borrowings (1)	440		—		440		—	%	N/A	885
Unsecured Junior Subordinated Debentures (2)	51,005		543		51,548		4.19	%	22.8 years	—
6.0% Convertible Senior Notes	106,535		8,465		115,000		6.00	%	4.9 years	—
CRE - Term Repurchase Facilities (3)	29,703		1,033		30,736		2.67	%	21 days	48,186
CMBS - Term Repurchase Facility (4)	47,601		12		47,613		1.38	%	21 days	56,949
Residential Mortgage Financing Agreements	14,627		—		14,627		4.24	%	56 days	16,487
Total	$	1,319,810	$	16,216	$	1,336,026	1.87	%	13.1 years	$	1,508,603

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

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

(3) Amounts also include accrued interest costs of $43,000 and $26,000 related to CRE repurchase facilities as of September 30, 2014 and December 31, 2013, respectively.

(4) Amounts also include accrued interest costs of $23,000 and $22,000 related to CMBS repurchase facilities as of September 30, 2014 and December 31, 2013, respectively. Amounts do not reflect CMBS repurchase agreement borrowings that are components of linked transactions.

(5) Amount also includes accrued interest costs of $21,000 related to RMBS repurchase facilities as of September 30, 2014.

(6) The fair value option has been elected for the borrowings associated with Moselle CLO. As such, the outstanding borrowings and principal outstanding amounts are states at fair value. The unpaid principal amounts of these borrowings were $95.0 million at September 30, 2014.

(7) Weighted average borrowing rate included $25.0 million borrowed at the JP Morgan Chase Bank prime rate to fund the closing on investments. These borrowings were subsequently converted to the lower contracted LIBOR rate and began accruing interest at 2.66% as of October 1, 2014.

Schedule of Short-term Debt

The following table sets forth certain information with respect to RSO's borrowings is summarized in the following table (dollars in thousands):

	September 30, 2014						December 31, 2013
	Outstanding Borrowings		Value of Collateral		Number of Positions as Collateral	Weighted Average Interest Rate	Outstanding Borrowings			Value of Collateral		Number of Positions as Collateral	Weighted Average Interest Rate
CMBS Term Repurchase Facility
Wells Fargo Bank (1)	$	21,559	$	26,540	30	1.43%	$	47,601		$	56,949	44	1.38%
CRE Term Repurchase Facilities
Wells Fargo Bank (2)	47,704		71,822		4	2.21%	30,003			48,186		8	2.67%
Deutsche Bank AG (3)	7,576		11,311		1	3.03%	(300		)	—		—	—%
Short-Term Repurchase Agreements - CMBS
Deutsche Bank Securities, LLC	25,575		29,529		8	1.47%	—			—		—	—%
Wells Fargo Securities, LLC	11,058		17,695		1	1.66%	—			—		—	—%
RMBS Term Repurchase Facility
Wells Fargo Bank (4)	22,705		28,533		6	1.15%	—			—		—	—%
Residential Mortgage Financing Agreements
New Century Bank	16,526		17,831		94	3.45%	11,916			13,089		74	4.17%
ViewPoint Bank, NA	4,395		6,079		22	2.78%	2,711			3,398		17	4.58%
Wells Fargo Bank	27,963		44,508		66	3.75%	—			—		—	—%
Totals	$	185,061	$	253,848			$	91,931		$	121,622

(1) The Wells Fargo CMBS term facility borrowing includes zero and $12,000 of deferred debt issuance costs as of September 30, 2014 and December 31, 2013, respectively.

(2) The Wells Fargo CRE term repurchase facility borrowing includes $260,000 and $732,000 of deferred debt issuance costs as of September 30, 2014 and December 31, 2013, respectively.

(3) The Deutsche Bank term repurchase facility includes $395,000 and $300,000 of deferred debt issuance costs as of September 30, 2014 and December 31, 2013, respectively.

(4) The Wells Fargo RMBS term repurchase facility includes $55,000 of deferred debt issuance costs as of September 30, 2014.

Schedule of Linked Transactions

The assets in the following table are accounted for as linked transactions. These linked repurchase agreements are not included in borrowings on RSO's consolidated balance sheets.

	September 30, 2014						December 31, 2013
	Borrowings Under Linked Transactions (1)		Value of Collateral Under Linked Transactions		Number of Positions as Collateral Under Linked Transactions	Weighted Average Interest Rate of Linked Transactions	Borrowings Under Linked Transactions (1)		Value of Collateral Under Linked Transactions		Number of Positions as Collateral Under Linked Transactions	Weighted Average Interest Rate of Linked Transactions
CMBS Term    Repurchase    Facility
Wells Fargo Bank	$	5,153	$	6,736	7	1.66%	$	6,506	$	8,345	7	1.65%
CRE Term    Repurchase    Facility
Wells Fargo Bank	—		—		—	—%	—		—		—	—%
Short-Term    Repurchase    Agreements -    CMBS
JP Morgan Securities, LLC	—		—		—	—%	17,020		24,814		4	0.99%
Wells Fargo Securities, LLC	4,146		6,262		2	1.37%	21,969		30,803		9	1.19%
Deutsche Bank Securities, LLC	20,437		30,869		9	1.46%	18,599		29,861		9	1.43%
Totals	$	29,736	$	43,867			$	64,094	$	93,823

Schedule of Amount at Risk under Credit Facility

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

	Amount at Risk (1)		Weighted Average Maturity in Days	Weighted Average Interest Rate
September 30, 2014
CMBS Term Repurchase Facility
Wells Fargo Bank, National Association (2)	$	7,353	20	1.43%
RMBS Term Repurchase Facility
Wells Fargo Bank, National Association	$	5,233	1	1.15%
CRE Term Repurchase Facilities
Wells Fargo Bank, National Association	$	23,677	20	2.21%
Deutsche Bank Securities, LLC	$	3,266	20	3.03%
Short-Term Repurchase Agreements - CMBS
JP Morgan Securities, LLC (3)	$	—	0	—%
Wells Fargo Securities, LLC	$	23,677	8	1.66%
Deutsche Bank Securities, LLC	$	3,326	29	1.47%
Residential Mortgage Financing Agreements
New Century Bank	$	17,016	334	3.45%
View Point Bank, NA	$	4,485	91	2.78%
Wells Fargo Bank	$	32,494	275	3.75%
December 31, 2013
CMBS Term Repurchase Facility
Wells Fargo Bank, National Association (2)	$	10,796	21	1.38%
CRE Term Repurchase Facilities
Wells Fargo Bank, National Association	$	20,718	21	2.67%
Short-Term Repurchase Agreements - CMBS
JP Morgan Securities, LLC (3)	$	7,882	11	0.99%
Wells Fargo Securities, LLC	$	8,925	2	1.19%
Deutsche Bank Securities, LLC	$	11,418	22	1.43%

(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) $5.2 million and $6.5 million of linked repurchase agreement borrowings are being included as derivative instruments as of September 30, 2014 and December 31, 2013, respectively.

(3) There are no linked repurchase agreement borrowings being included as derivative instruments as of September 30, 2014. As of December 31, 2013 $17.0 million of linked repurchase agreement borrowings were being included as derivative instruments.

Company's Asset Recorded at Fair Value 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
As of September 30, 2014
Assets:
Investment securities, trading	$	—	$	—	$	9,187	$	9,187
Investment securities available-for-sale	870		1,530		278,618		281,018
CMBS - linked transactions	—		—		14,272		14,272
Derivatives (net)	—		21,618		—		21,618
Total assets at fair value	$	870	$	23,148	$	302,077	$	326,095
Liabilities:
Derivatives (net)	$	—	$	872	$	7,958	$	8,830
Total liabilities at fair value	$	—	$	872	$	7,958	$	8,830
As of December 31, 2013
Assets:
Investment securities, trading	$	—	$	—	$	11,558	$	11,558
Investment securities available-for-sale	2,370		92		207,375		209,837
CMBS - linked transactions	—		—		30,066		30,066
Total assets at fair value	$	2,370	$	92	$	248,999	$	251,461
Liabilities:
Derivatives (net)	$	—	$	395	$	10,191	$	10,586
Total liabilities at fair value	$	—	$	395	$	10,191	$	10,586

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 are measured at fair value on a recurring basis for which RSO has utilized Level 3 inputs (in thousands):

	CMBS Including Linked Transactions			ABS			RMBS			Structured Finance			Total
Beginning balance, January 1, 2014	$	210,785		$	26,656		$	451		$	11,107		$	248,999
Total gains or losses (realized or unrealized):
Included in earnings	142			5,118			31			(2,454		)	2,837
Purchases	105,572			61,402			31,058			3,999			202,031
Sales	(99,151		)	(20,100		)	—			(2,050		)	(121,301		)
Paydowns	(36,768		)	(10,412		)	(825		)	—			(48,005		)
Included in OCI	9,009			9,091			897			(1,481		)	17,516
Transfers out of Level 2	—			—			—			—			—
Transfers into Level 3	—			—			—			—			—
Ending balance, September 30, 2014	$	189,589		$	71,755		$	31,612		$	9,121		$	302,077

Fair Value, Liabilities Measured on Recurring Basis, 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, 2014	$	10,191
Unrealized losses – included in accumulated other comprehensive income	(2,233		)
Ending balance, September 30, 2014	$	7,958

Changes in Carrying Value of Assets and Liabilities Measured at Fair Value on Non-recurring 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
As of September 30, 2014
Assets:
Loans held for sale	$	—	$	36,674	$	54,708	$	91,382
Impaired loans	—		893		—		893
Total assets at fair value	$	—	$	37,567	$	54,708	$	92,275
As of December 31, 2013
Assets:
Loans held for sale	$	—	$	6,850	$	15,066	$	21,916
Impaired loans	—		225		—		225
Total assets at fair value	$	—	$	7,075	$	15,066	$	22,141

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of September 30, 2014, the significant unobservable inputs used in the fair value measurements were as follows (in thousands):

	Fair Value at September 30, 2014		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Interest rate swap agreements	$	7,958	Discounted cash flow	Weighted average credit spreads	5.12	%

Fair Value of Financial Instruments

The fair values of RSO’s remaining financial instruments that are not reported at fair value on its consolidated balance sheets are reported in the following table (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)
As of September 30, 2014
Loans held-for-investment (1)	$	1,744,899	$	1,730,763	$	—	$	632,815	$	1,097,948
Loans receivable-related party	$	4,172	$	4,172	$	—	$	—	$	4,172
CDO notes (2)	$	1,213,852	$	1,131,145	$	—	$	1,131,145	$	—
Junior subordinated notes	$	51,154	$	17,648	$	—	$	—	$	17,648
Repurchase agreements	$	185,062	$	185,062	$	—	$	—	$	185,062
Senior secured revolving credit agreement	$	32,911	$	32,911	$	—	$	—	$	32,911
As of December 31, 2013
Loans held-for-investment	$	1,369,526	$	1,358,434	$	—	$	545,352	$	813,082
Loans receivable-related party	$	6,966	$	6,966	$	—	$	—	$	6,966
CDO notes	$	1,070,339	$	653,617	$	—	$	653,617	$	—
Junior subordinated notes	$	51,005	$	17,499	$	—	$	—	$	17,499
Repurchase agreements	$	77,304	$	77,304	$	—	$	—	$	77,304

(1) Contains loans for which the fair value method was elected with an unpaid principal balance of $89.2 million and a fair value of $83.0 million at September 30, 2014.

(2) Contains notes for which the fair value method was elected with an unpaid principal balance of $95.0 million and a fair value of $92.5 million at September 30, 2014.