FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2015

Company's Asset Recorded at Fair Value on Recurring Basis

The fair value of the Company’s assets and liabilities recorded at fair value on a recurring basis were as follows (in thousands):



	Level 1		Level 2		Level 3		Total
Assets - Investment securities
March 31, 2015	$	284	$	788	$	8,713	$	9,785
December 31, 2014	$	310	$	741	$	8,489	$	9,540



Liabilities - Apidos contractual commitment	Level 1		Level 2		Level 3		Total
March 31, 2015	$	—	$	—	$	694	$	694
December 31, 2014	$	—	$	—	$	745	$	745

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 three months ended March 31, 2015 (in thousands):



	Investment Securities
Balance, beginning of year	$	8,489
Purchases	611
Income accreted	288
Payments and distributions received, net	(455		)
Sales	(175		)
Losses on sales of trading securities	(15		)
Unrealized holding gains on trading securities	20
Change in unrealized gains included in accumulated other comprehensive loss	(50		)
Balance, end of period	$	8,713



	Investment Securities
Balance, beginning of year	$	7,407
Purchases	15,063
Income accreted	995
Payments and distributions received, net	(3,752		)
Sales	(13,251		)
Gain on sale of investment securities, net	445
Unrealized losses on trading securities	(200		)
Realized gains on trading securities	1,850
Change in unrealized losses included in accumulated other comprehensive loss	(68		)
Balance, end of year	$	8,489

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 March 31, 2015		Valuation Technique	Unobservable Inputs	Assumptions (weighted average)
CLO securities	$	8,447	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%
				Reinvestment spread	0% - 450%
				Discount rates	13%

Trading securities	$	266	Net asset value	Value of underlying assets	variable
			Discounted cash flow	Constant default rate	2% - 9%
				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

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):



	March 31, 2015				December 31, 2014
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Borrowings:
Real estate debt	$	10,035	$	11,131	$	10,088	$	11,197
Senior Notes	10,000		13,177		10,000		12,820
Other debt	1,139		1,139		324		324
	$	21,174	$	25,447	$	20,412	$	24,341

- 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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