VARIABLE INTEREST ENTITIES (Tables)

6 Months Ended

Jun. 30, 2015

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 June 30, 2015 (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	—		621		621
RREGPS	—		716		716
Pearlmark	—		3,647		3,647
	$	158	$	4,984	$	5,142

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

Supplemental Cash Flow Information

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

	Six Months Ended
	June 30,
	2015			2014
Cash (paid) received:
Interest	$	(948	)	$	(828	)
Income tax payments	(1,088		)	(916		)
Refund of income taxes	52			48
Dividends declared per common share	$	0.12		$	0.10
Non-cash activities:
Repurchase of common stock from employees in exchange for the payment of income taxes	$	173		$	255
Purchase of equipment on capital leases	881			—
Issuance of treasury stock for the Company's investment savings 401(k) plan	271			306

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
June 30, 2015
CLO securities	$	979	$	(33	)	2	$	—	$	—	—
Equity securities	214		(1		)	1	—		—		—
Total	$	1,193	$	(34	)	3	$	—	$	—	—
December 31, 2014
CLO securities	$	2,643	$	(176	)	4	$	—	$	—	—
Equity securities	—		—			—	—		—		—
Total	$	2,643	$	(176	)	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	June 30, 2015		December 31, 2014
Real estate investment entities	1% – 12%	$	11,461	$	8,313
Financial fund management partnerships	0.01% − 50%	4,802		4,162
Trapeza entities	33% − 50%	621		614
Investments in unconsolidated entities		$	16,884	$	13,089

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):

	Receivables from Managed Entities		Leases and Loans			Rent Receivables		Total
Three Months Ended June 30, 2015:
Balance, beginning of period	$	17,359	$	—		$	1	$	17,360
Provision for (reversal) of credit losses	306		(31		)	1		276
(Charge-offs) recoveries	—		31			—		31
Balance, end of period	$	17,665	$	—		$	2	$	17,667
Ending balance, individually evaluated for impairment	$	17,665	$	—		$	2	$	17,667
Ending balance, collectively evaluated for impairment	—		—			—		—
Balance, end of period	$	17,665	$	—		$	2	$	17,667
Six Months Ended June 30, 2015:
Balance, beginning of period	$	16,990	$	—		$	—	$	16,990
Provision for (reversal) of credit losses	675		1			2		678
(Charge-offs) recoveries	—		(1		)	—		(1		)
Balance, end of period	$	17,665	$	—		$	2	$	17,667
Ending balance, individually evaluated for impairment	$	17,665	$	—		$	2	$	17,667
Ending balance, collectively evaluated for impairment	—		—			—		—
Balance, end of period	$	17,665	$	—		$	2	$	17,667

	Loans and receivables from Managed Entities			Leases and Loans			Rent Receivables			Total
Three Months Ended June 30, 2014:
Balance, beginning of period	$	37,441		$	—		$	10		$	37,451
Provision for credit losses	1,588			(5		)	(8		)	1,575
Charge-offs	(1		)	—			—			(1		)
Recoveries	—			5			—			5
Balance, end of period	$	39,028		$	—		$	2		$	39,030
Six Months Ended June 30, 2014:
Balance, beginning of period	$	36,229		$	—		$	14		$	36,243
Provision for credit losses	2,801			(6		)	(12		)	2,783
Charge-offs	(2		)	—			—			(2		)
Recoveries	—			6			—			6
Balance, end of period	$	39,028		$	—		$	2		$	39,030
Ending balance, individually evaluated for impairment	$	39,028		$	—		$	—		$	39,028
Ending balance, collectively evaluated for impairment	—			—			2			2
Balance, end of period	$	39,028		$	—		$	2		$	39,030

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 June 30, 2015 (in thousands):

	Current		30-89 Days Past Due		90-180 Days Past Due		Greater than 181 Days		Total Past Due		Total
Loans and receivables from managed    entities and related parties: (1)
Commercial finance     investment entities	$	2	$	341	$	1,121	$	18,347	$	19,809	$	19,811
Real estate investment entities	4,067		269		1,094		15,069		16,432		20,499
Financial fund management entities	1,092		47		30		—		77		1,169
Other	2,706		—		—		—		—		2,706
	7,867		657		2,245		33,416		36,318		44,185
Rent receivables - real estate	168		8		3		—		11		179
Total financing receivables	$	8,035	$	665	$	2,248	$	33,416	$	36,329	$	44,364

(1) Receivables are presented gross of an allowance for credit losses of $17.4 million related to one of the Company’s commercial finance investment entities and $307,000 related to one of its real estate investment partnerships.  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, 2014 (in thousands):

	Current		30-89 Days Past Due		90-180 Days Past Due		Greater than 181 Days		Total Past Due		Total
Loans and receivables from    managed entities and    related parties: (1)
Commercial finance     investment entities	$	9	$	342	$	1,124	$	18,398	$	19,864	$	19,873
Real estate investment entities	6,613		772		1,214		15,134		17,120		23,733
Financial fund management entities	583		74		—		6		80		663
Other	3,024		—		—		—		—		3,024
	10,229		1,188		2,338		33,538		37,064		47,293
Rent receivables - real estate	76		11		1		—		12		88
Total financing receivables	$	10,305	$	1,199	$	2,339	$	33,538	$	37,076	$	47,381

(1) Receivables are presented gross of an allowance for credit losses of $17.0 million related to one of 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 June 30, 2015:
Financing receivables with a specific valuation allowance:
Loans and receivables from managed entities – commercial finance	$	1,044	$	18,402	$	17,358	$	18,420
Loans and receivables from managed entities – real estate	540		$	849	307		606
Rent receivables – real estate	—		—		2		—
As of December 31, 2014:
Financing receivables with a specific valuation allowance:
Loans and receivables from managed entities – commercial finance	$	1,295	$	18,285	$	16,990	$	18,882

Debt and Credit Facilities

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

	As of June 30, 2015				December 31, 2014
	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	2,432		—		—
			—		—
Other debt:
Senior Notes			10,000		10,000
Mortgage debt - hotel property			9,984		10,088
Other debt			1,045		324
Total borrowings outstanding			$	21,029	$	20,412

(1) The amount of the facility as shown has been reduced $503,000 for an outstanding letter of credit.

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
June 30, 2015	$	497	$	715	$	9,658	$	10,870
December 31, 2014	$	310	$	741	$	8,489	$	9,540

Liabilities - Apidos contractual commitment	Level 1		Level 2		Level 3		Total
June 30, 2015	$	—	$	—	$	664	$	664
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 six months ended June 30, 2015 (in thousands):

	Investment Securities
Balance, beginning of year	$	8,489
Purchases	1,056
Income accreted	572
Payments and distributions received, net	(944		)
Sales	(175		)
Losses on sales of trading securities	(15		)
Unrealized holding gains on trading securities	43
Change in unrealized gains included in accumulated other comprehensive loss	632
Balance, end of period	$	9,658

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, 2014 (in thousands):

	Investment Securities
Balance, beginning of year	$	7,407
Purchases	15,063
Income accreted	995
Payments and distributions received, net	(3,752		)
Sales	(13,235		)
Gain on sale of investment securities, net	445
Unrealized losses on trading securities	(200		)
Gains on trading securities	1,834
Change in unrealized losses included in accumulated other comprehensive loss	(68		)
Balance, end of year	$	8,489

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, 2015				December 31, 2014
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Borrowings:
Real estate debt	$	9,984	$	10,820	$	10,088	$	11,197
Senior Notes	10,000		13,240		10,000		12,820
Other debt	1,045		1,045		324		324
	$	21,029	$	25,105	$	20,412	$	24,341

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):
	June 30, 2015			December 31, 2014
ASSETS (1)
Cash and cash equivalents	$	145,010		$	79,905
Restricted cash	45,755			122,138
Subtotal - Cash and cash equivalents	190,765			202,043
Investment securities, trading	32,680			20,786
Investment securities available-for-sale, pledged as collateral, at fair value	170,935			197,800
Investment securities available-for-sale, at fair value	82,493			77,920
Subtotal - Investments, at fair value	286,108			296,506
Loans, pledged as collateral and net of allowances of $46.3 million and $4.6 million	2,042,885			1,925,980
Loans receivable–related party	—			558
Loans held for sale	111,122			113,675
Subtotal - Loans, before eliminations	2,154,007			2,040,213
Eliminations	—			(558		)
Subtotal - Loans	2,154,007			2,039,655
Property held for sale	180			180
Investments in unconsolidated entities	56,150			59,827
Subtotal, Investments in real estate and unconsolidated entities	56,330			60,007
Line items included in "other assets":
Linked transactions, net at fair value	—			15,367
Derivatives, at fair value	4,289			5,304
Interest receivable	12,046			16,260
Deferred tax asset	12,828			12,634
Principal paydown receivable	11,525			40,920
Direct financing leases	1,590			2,109
Intangible assets	24,370			18,610
Prepaid expenses	3,913			4,196
Other assets	16,453			14,510
Subtotal - Other assets, before eliminations	87,014			129,910
Eliminations	—			(109		)
Subtotal - Other assets	87,014			129,801
Total assets (excluding eliminations)	$	2,774,224		$	2,728,679
Total assets (including eliminations)	$	2,774,224		$	2,728,012
LIABILITIES (2)
Borrowings	$	1,827,461		$	1,716,871
Eliminations	332			205
Subtotal Borrowings	1,827,793			1,717,076
Distribution payable	25,504			30,592
Accrued interest expense	5,467			2,123
Derivatives, at fair value	6,991			8,476
Accrued tax liability	6,383			9,219
Accounts payable and other liabilities	9,769			9,287
Subtotal - Other liabilities, before eliminations	54,114			59,697
Eliminations	(2,474		)	(2,446		)
Subtotal - Other liabilities	51,640			57,251
Total liabilities (before eliminations)	$	1,881,575		$	1,776,568
Total liabilities (after eliminations)	$	1,879,433		$	1,774,327

RSO Balance Sheets Detail (in thousands):
	June 30, 2015			December 31, 2014
(1) Assets of consolidated Variable Interest Entities ("VIE") included in total assets above:
Cash and cash equivalents	$	189		$	25
Restricted cash	43,954			121,247
Investments securities available-for-sale, pledged as collateral, at fair value	84,858			119,203
Loans held for sale	6,027			282
Loans, pledged as collateral and net of allowances of $42.7 million and $3.3 million	1,352,546			1,261,137
Interest receivable	5,468			8,941
Prepaid expenses	182			221
Principal paydown receivable	—			25,767
Other assets	9			(12		)
Total assets of consolidated RSO VIEs	$	1,493,233		$	1,536,811
(2) Liabilities of consolidated VIEs included in total liabilities above :
Borrowings	$	1,047,172		$	1,046,494
Accrued interest expense	852			1,000
Derivatives, at fair value	5,946			8,439
Unsettled loan purchases	(529		)	(529		)
Accounts payable and other liabilities	190			(386		)
Total liabilities of consolidated RSO VIEs	$	1,053,631		$	1,055,018

RSO Operations Statement Detail (in thousands):
	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
REVENUES
Interest income:
Loans	$	29,759		$	26,219		$	62,422		$	46,448
Securities	5,500			3,391			9,552			7,395
Leases	163			—			258			—
Interest income − other	1,119			982			1,951			3,834
Total interest income	36,541			30,592			74,183			57,677
Interest expense	15,803			10,610			30,705			20,238
Net interest income	20,738			19,982			43,478			37,439
Rental income	—			1,507			—			6,659
Dividend income	17			17			33			153
Fee income	3,446			2,322			5,051			4,822
Revenues from consolidated VIE-RSO	24,201			23,828			48,562			49,073
OPERATING EXPENSES
Management fees − related party	3,500			3,314			7,060			6,394
Equity compensation − related party	791			2,032			1,786			3,699
Rental operating expense	—			1,077			6			4,473
Lease operating	24			—			47			—
General and administrative - Corporate	4,067			4,750			8,850			7,589
General and administrative - PCM	6,722			4,138			13,801			7,565
Depreciation and amortization	621			760			1,186			1,596
Impairment losses	—			—			59			—
Provision (recovery) for loan losses	38,810			782			42,800			(3,178		)
Total operating expenses	54,535			16,853			75,595			28,138
Reclassification of income tax expense	—			—			—			—
Expenses of consolidated VIE-RSO	54,535			16,853			75,595			28,138
Adjusted operating income	(30,334		)	6,975			(27,033		)	20,935
OTHER INCOME (EXPENSE)
Equity in earnings of unconsolidated subsidiaries	662			1,762			1,368			3,776
Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives	9,745			1,648			24,168			3,736
Net realized and unrealized gains (loss) on investment securities, trading	279			(650		)	2,353			(2,210		)
Unrealized gain (loss) and net interest income on linked transactions, net	—			5,012			235			7,317
(Loss) on reissuance/ gain on extinguishment of debt	(171		)	(533		)	(1,071		)	(602		)
(Loss) gain on sale of real estate	22			3,042			—			3,042
Other income (expense)	—			—			—			(1,262		)
Other income, net, from consolidated VIE - RSO	10,537			10,281			27,053			13,797
Income from continuing operations	(19,797		)	17,256			20			34,732
Income tax (expense) benefit - RSO	(2,918		)	446			(4,765		)	430
NET INCOME (LOSS)	(22,715		)	17,702			(4,745		)	35,162
Net (loss) income allocated to preferred shares	(6,116		)	(3,358		)	(12,207		)	(5,758		)
Net (income) loss allocable to non-controlling interest, net of taxes	(2,180		)	333			(4,657		)	389
NET INCOME (LOSS) ALLOCABLE TO RSO COMMON SHAREHOLDERS	$	(31,011	)	$	14,677		$	(21,609	)	$	29,793

RSO Cash Flow Detail (in thousands)	For the Six Months Ended
	June 30,
	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(4,745	)	$	35,162
Items included in "Change in cash attributable to consolidated VIE-RSO":
Provision (recovery of) for loan losses	42,800			(3,178		)
Depreciation of investments in real estate and other	5,572			1,922
Amortization of stock-based compensation	1,786			3,699
Amortization of (accretion) of terminated derivative instruments	134			142
Accretion (amortization) of interest-only available-for-sales securities	1,868			(339		)
Deferred income tax (benefit) expense	(194		)	(689		)
Sale (purchase) of residential mortgage loans held for sale, net	15,229			(12,162		)
Capitalization of residential mortgage servicing rights	(7,848		)	—
Sale (purchase) of securities, trading, net	(9,541		)	429
Net realized and unrealized loss (gain) on investment securities, trading	(2,353		)	2,210
Net realized (gain) loss on sales of investment securities available-for-sale and loans	(24,168		)	(2,148		)
Loss (gain) on reissuance (extinguishment) of debt	1,071			602
Loss (gain) on sales of real estate	—			(3,042		)
Settlement of derivative instruments	12,405			442
Net impairment losses recognized in earnings	59			—
Linked transactions fair value adjustments	(235		)	(5,923		)
Equity in net (earnings) losses of unconsolidated subsidiaries	(1,368		)	(3,776		)
Changes in operating assets and liabilities, net of acquisitions	12,376			979
Net cash provided by (used in) operating activities	47,593			(20,832		)
Change in consolidated VIE-RSO cash for the period	(65,105		)	95,584
Subtotal - Change in cash attributable to consolidated VIE-RSO before eliminations	(17,512		)	74,752
Elimination of intercompany activity	(29		)	(28		)
Subtotal - Adjustments to reconcile net income (loss) and operating cash flows to net income (loss) of consolidated VIE-RSO	(17,541		)	74,724
Net cash provided by (used in ) operating activities of consolidated VIE-RSO (excluding eliminations)	42,848			14,330

	Six Months Ended
	June 30,
	2015		2014
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of loans	(436,440	)	(489,800	)
Purchase of securities available-for-sale	(11,320	)	(107,339	)
Subtotal - Purchase of loans and securities by consolidated VIE-RSO, before eliminations	(447,760	)	(597,139	)
Principal payments received on loans	209,744		196,973
Proceeds from sale of loans	93,146		44,024
Principal payments on securities available-for-sale	49,819		25,774
Proceeds from sale of securities available-for-sale	37,221		99,151
Principal payments received on loans - related parties	558		1,759
Investment in loans - related parties	—		(244	)
Subtotal - principal payments and proceeds from sales received by consolidated VIE-RSO, before eliminations	390,488		367,437
(Increase) decrease in restricted cash	57,089		10,543
Items included in "Other investing activity of consolidated VIE-RSO":
Return of capital from (investment in) unconsolidated entity	5,000		8,911
Acquisition of controlling interest in Moselle CLO S.A.	—		(30,433	)
Proceeds from sale of real estate held-for-sale	44		31,202
Improvements of investments in real estate	—		252
Purchase of furniture and fixtures	(10	)	(69	)
Acquisition of property and equipment	(228	)	(332	)
Subtotal - Other investing activity of consolidated VIE-RSO, before eliminations	4,806		9,531
Eliminations	(821	)	(391	)
Subtotal - Other investing activity of consolidated VIE-RSO	3,985		9,140
Net cash used in investing activities of consolidated VIE-RSO (excluding eliminations)	4,623		(209,628	)

	Six Months Ended
	June 30,
	2015			2014
CASH FLOWS FROM FINANCING ACTIVITIES:
Items included in "Net borrowings (repayments) of debt by consolidated VIE-RSO"
Proceeds from borrowings:
Repurchase agreements, net of repayments	—			142,019
Senior secured revolving credit facility	99,500			—
Securitizations	282,127			43,000
Convertible senior notes	99,000			16,502
Reissuance of debt	12,229			—
Payments on borrowings:
Securitization	(290,190		)	(152,556		)
Senior secured revolving credit facility	(62,000		)	—
Repurchase agreements, net of borrowings	(56,383		)	—
Subtotal - net borrowings of debt by consolidated VIE-RSO	84,283			48,965
Distributions paid on common stock	(48,006		)	(51,457		)
Elimination of dividends paid to RAI	936			572
Distributions paid on common stock of consolidated VIE-RSO, after eliminations	(47,070		)	(50,885		)
Net proceeds from issuances of common stock and dividend reinvestment and stock purchase plan, net of offering costs	129			14,554
Proceeds from issuance of preferred shares, net of offering costs	3,035			148,765
Repurchase of common stock	(5		)	—
Subtotal - net proceeds from issuance of stock by consolidated VIE-RSO	3,159			163,319
Payment of debt issuance costs	(7,986		)	(8		)
Distributions paid to non-controlling interests	(3,814		)	—
Proceeds received from non-controlling interests	2,676			—
Payment of equity to third party sub-note holders	(519		)	(799		)
Distributions paid on preferred stock	(12,159		)	(4,679		)
Subtotal - Other consolidated financing activity of consolidated VIE-RSO, before eliminations	(21,802		)	(5,486		)
Eliminations	100			—
Subtotal - Other consolidated financing activity of consolidated VIE-RSO	(21,702		)	(5,486		)
Net cash provided by financing activities of consolidated VIE-RSO, excluding eliminations	17,634			155,341
Net increase (decrease) in cash and cash equivalents	65,105			(39,957		)
Cash and cash equivalents, beginning of year of consolidated VIE-RSO	79,905			262,270
Cash and cash equivalents, end of period of consolidated VIE-RSO	$	145,010		$	222,313
Supplemental disclosures:
Interest expense paid in cash	$	21,402		$	17,438
Income taxes paid in cash	$	9,182		$	3,249

Schedule of Variable Interest Entities

The following table shows the classification, carrying value and maximum exposure to loss with respect to RSO’s unconsolidated VIEs as of June 30, 2015 (in thousands):

	Unconsolidated Variable Interest Entities
	LCC		Unsecured Junior Subordinated Debentures			Resource Capital Asset Management CDOs		Investment in ZAIS		Total		Maximum Exposure to Loss
Investment in unconsolidated entities	$	39,818	$	1,548		$	—	$	10,228	$	51,594	51,594
Intangible assets	—		—			8,542		—		8,542		8,542
Total assets	39,818		1,548			8,542		10,228		60,136
Borrowings	—		51,308			—		—		51,308		N/A
Total liabilities	—		51,308			—		—		51,308		N/A
Net asset (liability)	$	39,818	$	(49,760	)	8,542		$	10,228	$	8,828	N/A

The following table shows the classification and carrying value of assets and liabilities of RSO's consolidated VIEs as of June 30, 2015 (in thousands):

	Apidos I		Apidos III		Apidos Cinco		Whitney CLO I		RREF 2006-1		RREF 2007-1		RCC CRE Notes 2013		RCC 2014-CRE2		RCC 2015-CRE3		Moselle		RCM Global, LLC			Total
ASSETS (1)
Cash and cash equivalents	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	189		$	189
Restricted cash (1)	347		3,613		37,231		116		20		250		1,815		—		5		557		—			43,954
Investment securities available-for-sale, pledged as collateral, at fair value	—		—		10,268		—		5,854		56,448		—		—		—		—		12,288			84,858
Loans, pledged as collateral	—		—		180,758		—		94,504		190,911		192,480		351,301		342,592		—		—			1,352,546
Loans held for sale	153		1,358		4,516		—		—		—		—		—		—		—		—			6,027
Interest receivable	—		—		734		—		374		1,302		792		1,324		1,240		—		(298		)	5,468
Prepaid assets	—		10		24		—		15		95		28		10		—		—		—			182
Principal paydown receivable	—		—		—		—		—		—		—		—		—		—		—			—
Other assets	—		—		—		—		—		—		—		9		—		—		—			9
Total assets (2)	$	500	$	4,981	$	233,531	$	116	$	100,767	$	249,006	$	195,115	$	352,644	$	343,837	$	557	$	12,179		$	1,493,233
LIABILITIES
Borrowings	$	—	$	—	$	208,893	$	—	$	57,205	$	125,055	$	145,786	$	231,846	$	278,228	$	159	$	—		$	1,047,172
Accrued interest expense	—		—		253		—		33		97		132		125		212		—		—			852
Derivatives, at fair value	—		—		—		—		346		5,600		—		—		—		—		—			5,946
Unsettled loan purchases	—		—		—		—		—		—		—		—		—		—		(529		)	(529		)
Accounts payable and other liabilities	—		3		14		—		9		1		—		—		—		161		2			190
Total liabilities	$	—	$	3	$	209,160	$	—	$	57,593	$	130,753	$	145,918	$	231,971	$	278,440	$	320	$	(527	)	$	1,053,631

(1) Includes $2.1 million designated to fund future commitments on specific commercial real estate loans 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.

(3) In October 2013, RSO liquidated Apidos CLO VIII and all of the assets were sold. However, RSO still owns its share of beneficial interests that caused it to consolidate it.

Supplemental Cash Flow Information

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

	For the Six Months Ended
	June 30,
	2015		2014
Non-cash investing activities include the following:
Conversion of linked transactions assets to CMBS (1)	$	48,605	$	—
Non-cash financing activities include the following:
Distributions on common stock declared but not paid	$	21,426	$	26,179
Distributions on preferred stock declared but not paid	$	4,078	$	4,353
Issuance of restricted stock	$	1,158	$	646
Conversion of linked transaction liabilities to repurchase agreement borrowings (1)	$	33,377	$	—

Investment Trading Securities at Fair Value

The following table summarizes RSO's structured notes and RMBS that are classified as investment securities, trading and carried at fair value (in thousands). Structured notes are CLO debt securities collateralized by syndicated bank loans, and RMBS is a type of mortgage-backed debt obligation whose cash flows come from residential debt.

	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
As of June 30, 2015:
Structured notes	$	32,519	$	3,027	$	(2,866	)	$	32,680
RMBS	1,896		—		(1,896		)	—
Total	$	34,415	$	3,027	$	(4,762	)	$	32,680
As of December 31, 2014:
Structured notes	$	22,876	$	1,098	$	(3,188	)	$	20,786
RMBS	1,896		—		(1,896		)	—
Total	$	24,772	$	1,098	$	(5,084	)	$	20,786

Available-for-sale Securities

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 (1)		Unrealized Gains		Unrealized Losses			Fair Value
As of June 30, 2015:
CMBS	$	181,399	$	5,114	$	(1,191	)	$	185,322
RMBS	2,422		112		(60		)	2,474
ABS	55,039		8,755		(553		)	63,241
Corporate bonds	2,419		5		(33		)	2,391
Total	$	241,279	$	13,986	$	(1,837	)	$	253,428
As of December 31, 2014:
CMBS	$	168,669	$	4,938	$	(3,202	)	$	170,405
RMBS	29,814		937		—			30,751
ABS	55,617		16,876		(336		)	72,157
Corporate bonds	2,415		10		(18		)	2,407
Total	$	256,515	$	22,761	$	(3,556	)	$	275,720

(1) As of June 30, 2015 and December 31, 2014, $170.9 million and $197.8 million, respectively, of investment securities available-for-sale were pledged as collateral under related financings.

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

	For the Three Months Ended
	Positions Sold	Par Amount Sold		Realized Gain (Loss)
June 30, 2015
ABS	3	$	3.626	$	1.838
RMBS	6	$	28,305	$	984
June 30, 2014
CMBS	3	$	15,970	$	480

Estimated maturities of available for sale securities

The following table summarizes the estimated maturities of RSO’s CMBS, RMBS, ABS and corporate bonds according to their estimated weighted average life classifications (in thousands, except percentages):

Weighted Average Life	Fair Value			Amortized Cost		Weighted Average Coupon
As of June 30, 2015:
Less than one year	$	108,353	(1)	$	107,588	6.72	%
Greater than one year and less than five years	95,677			88,814		6.94	%
Greater than five years and less than ten years	17,522			16,245		13.43	%
Greater than ten years	31,876			28,632		9.05	%
Total	$	253,428		$	241,279	7.56	%
As of December 31, 2014:
Less than one year	$	78,095	(1)	$	79,649	4.13	%
Greater than one year and less than five years	115,302			100,909		4.64	%
Greater than five years and less than ten years	20,177			17,516		16.45	%
Greater than ten years	62,146			58,441		7.86	%
Total	$	275,720		$	256,515	6.08	%

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 June 30, 2015:
CMBS	$	31,158	$	(246	)	24	$	18,989	$	(945	)	10	$	50,147	$	(1,191	)	34
ABS	3,258		(524		)	11	691		(29		)	2	3,949		(553		)	13
Corporate Bonds	—		—			—	1,435		(33		)	1	1,435		(33		)	1
RMBS	1,132		(60		)	2	—		—			—	1,132		(60		)	2
Total temporarily impaired securities	$	35,548	$	(830	)	37	$	21,115	$	(1,007	)	13	$	56,663	$	(1,837	)	50
As of December 31, 2014:
CMBS	$	35,860	$	(555	)	22	$	25,583	$	(2,647	)	13	$	61,443	$	(3,202	)	35
ABS	1,000		(278		)	8	958		(58		)	3	1,958		(336		)	11
Corporate Bonds	1,447		(18		)	1	—		—			—	1,447		(18		)	1
Total temporarily impaired securities	$	38,307	$	(851	)	31	$	26,541	$	(2,705	)	16	$	64,848	$	(3,556	)	47

Schedule of Receivables with Imputed Interest

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

Loan Description	Principal			Unamortized (Discount) Premium (1)			Carrying Value (2)
As of June 30, 2015:
Commercial real estate loans:
Whole loans	$	1,510,814		$	(8,211	)	$	1,502,603
B notes	16,026			(29		)	15,997
Mezzanine loans	54,821			1			54,822
Total commercial real estate loans	1,581,661			(8,239		)	1,573,422
Bank loans	182,338			(581		)	181,757
Middle market loans	331,822			(827		)	330,995
Residential mortgage loans, held for investment	3,030			—			3,030
Subtotal loans before allowances	2,098,851			(9,647		)	2,089,204
Allowance for loan loss	(46,319		)	—			(46,319		)
Total loans held for investment, net of allowances	2,052,532			(9,647		)	2,042,885
Bank loans held-for-sale	6,028			—			6,028
Residential mortgage loans held-for-sale, at fair value (3)	105,094			—			105,094
Total loans held-for-sale	111,122			—			111,122
Total loans, net	$	2,163,654		$	(9,647	)	$	2,154,007
As of December 31, 2014:
Commercial real estate loans:
Whole loans	$	1,271,121		$	(7,529	)	$	1,263,592
B notes	16,120			(48		)	16,072
Mezzanine loans	67,446			(80		)	67,366
Total commercial real estate loans	1,354,687			(7,657		)	1,347,030
Bank loans	332,058			(1,410		)	330,648
Middle market loans	250,859			(746		)	250,113
Residential mortgage loans, held for investment	2,802			—			2,802
Subtotal loans before allowances	1,940,406			(9,813		)	1,930,593
Allowance for loan loss	(4,613		)	—			(4,613		)
Total loans, net of allowances	1,935,793			(9,813		)	1,925,980
Bank loans held-for-sale	282			—			282
Residential mortgage loans held-for-sale, at fair value (3)	111,454			—			111,454
Total loans held-for-sale	111,736			—			111,736
Total loans, net	$	2,047,529		$	(9,813	)	$	2,037,716

(1) Amounts include deferred amendment fees of $53,000 and $88,000 and deferred upfront fees of $27,000 and $82,000 being amortized over the life of the bank loans as of June 30, 2015 and December 31, 2014, respectively.  Amounts include loan origination fees of $8.2 million and $7.6 million as of June 30, 2015 and December 31, 2014, respectively.

(2) Substantially all loans are pledged as collateral under various borrowings at June 30, 2015 and December 31, 2014, respectively.

(3) Residential mortgage loans held for sale, at fair value consisted of $64.8 million and $40.3 million of agency-conforming and jumbo mortgage loans, respectively, as of June 30, 2015. Residential mortgage loans held for sale, at fair value consisted of $28.9 million and $82.6 million of agency-conforming and jumbo mortgage loans, respectively, as of December 31, 2014.

Schedule of Equity Method Investments

The following table shows RSO's investments in unconsolidated entities as of June 30, 2015 and December 31, 2014 and equity in earnings of unconsolidated subsidiaries for the three and six months ended June 30, 2015 and 2014 (in thousands):

						Equity in Earnings of Unconsolidated Subsidiary
		Balance as of		Balance as of		For the three months ended			For the six months ended			For the three months ended			For the three months ended
	Ownership %	June 30, 2015		December 31, 2014		June 30, 2015			June 30, 2015			June 30, 2014			June 30, 2014
Värde Investment Partners, L.P.	7.5%	$	654	$	654	$	—		$	—		$	(19	)	$	(20	)
RRE VIP Borrower, LLC (1)	3% to 5%	—		—		—			46			870			1,736
Investment in LCC Preferred Stock	28.4%	39,819		39,416		350			402			(278		)	(872		)
Investment in CVC Global Credit Opportunities Fund (2)	17.4%	14,129		18,209		312			920			1,124			1,958
Investment in Life Care Funding  (3)	60.7%	—		—		—			—			—			(75		)
Investment in School Lane House (1)		—		—		—			—			65			1,049
Subtotal		54,602		58,279		662			1,368			1,762			3,776
Investment in RCT I and II (4)	3.0%	1,548		1,548		(602		)	(1,195		)	(594		)	(1,184		)
Investment in Preferred Equity (1)(5)		—		—		—			—			167			244
Total		$	56,150	$	59,827	$	60		$	173		$	1,335		$	2,836

(1) Investment in School Lane House, Investment in RRE VIP Borrower and the Investment in Preferred Equity were sold or repaid as of December 31, 2014.

(2) In March 2015, RSO elected a partial redemption of $5.0 million from the fund.

(3) In January 2013, Long Term Care Conversion ("LTCC") invested $2.0 million into Life Care Funding, LLC ("LCF") for the purpose of originating and acquiring life settlement contracts. In February 2014, RSO invested an additional $1.4 million which resulted in the consolidation of LCF during the first quarter of 2014. Ownership percentage represents ownership after consolidation.

(4) For the three and six months ended June 30, 2015 and 2014, these amounts are recorded in interest expense on RSO's consolidated statements of operations.

(5) For the three and six months ended June 30, 2014, these amounts are recorded in interest income on loans on RSO's consolidated statements of operations.

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			Middle Market Loans			Residential Mortgage Loans			Loans Receivable-Related Party			Total
As of June 30, 2015:
Allowance for Loan Losses:
Allowance for losses at January 1, 2015	$	4,043		$	570		$	—		$	—		$	—		$	4,613
Provision (recovery) for loan losses	38,072			1,734			3,320			(110		)	(216		)	42,800
Loans charged-off	—			(1,307		)	(113		)	110			216			(1,094		)
Recoveries	—			—			—			—			—			—
Allowance for losses at June 30, 2015	$	42,115		$	997		$	3,207		$	—		$	—		$	46,319
Ending balance:
Individually evaluated for impairment	$	40,275		$	257		$	3,207		$	—		$	—		$	43,739
Collectively evaluated for impairment	$	1,840		$	740		$	—		$	—		$	—		$	2,580
Loans acquired with deteriorated credit quality	$	—		$	—		$	—		$	—		$	—		$	—
Loans:
Ending balance:
Individually evaluated for impairment	$	128,927		$	474		$	330,995		$	—		$	—		$	460,396
Collectively evaluated for impairment	$	1,444,495		$	181,283		$	—		$	3,030		$	—		$	1,628,808
Loans acquired with deteriorated credit quality	$	—		$	—		$	—		$	—		$	—		$	—
As of December 31, 2014:
Allowance for Loan Losses:
Allowance for losses at January 1, 2014	$	10,416		$	3,391		$	—		$	—		$	—		$	13,807
Provision for loan losses	(3,758		)	4,173			92			—			1,297			1,804
Loans charged-off	(2,615		)	(6,994		)	(92		)	—			(1,297		)	(10,998		)
Allowance for losses at December 31, 2014	$	4,043		$	570		$	—		$	—		$	—		$	4,613
Ending balance:
Individually evaluated for impairment	$	—		$	570		$	—		$	—		$	—		$	570
Collectively evaluated for impairment	$	4,043		$	—		$	—		$	—		$	—		$	4,043
Loans acquired with deteriorated credit quality	$	—		$	—		$	—		$	—		$	—		$	—
Loans:
Ending balance:
Individually evaluated for impairment	$	166,180		$	1,350		$	250,113		$	—		$	1,277		$	418,920
Collectively evaluated for impairment	$	1,180,850		$	329,580		$	—		$	2,802		$	—		$	1,513,232
Loans acquired with deteriorated credit quality	$	—		$	—		$	—		$	—		$	—		$	—

Financing Receivable Credit Quality Indicators

Credit risk profiles of middle market loans were as follows (in thousands):

	Rating 1		Rating 2		Rating 3		Rating 4		Rating 5		Held for Sale		Total
As of June 30, 2015:
Middle market loans	$	19,225	$	292,983	$	13,831	$	—	$	4,956	$	—	$	330,995
As of December 31, 2014:
Middle market loans	$	—	$	240,245	$	9,868	$	—	$	—	$	—	$	250,113

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

	Rating 1		Rating 2		Rating 3		Rating 4		Held for Sale		Total
As of June 30, 2015:
Whole loans	$	1,467,901	$	32,500	$	—	$	2,202	$	—	$	1,502,603
B notes	15,997		—		—		—		—		15,997
Mezzanine loans	16,750		—		—		38,072		—		54,822
	$	1,500,648	$	32,500	$	—	$	40,274	$	—	$	1,573,422
As of December 31, 2014:
Whole loans	$	1,231,092	$	32,500	$	—	$	—	$	—	$	1,263,592
B notes	16,072		—		—		—		—		16,072
Mezzanine loans	45,432		21,934		—		—		—		67,366
	$	1,292,596	$	54,434	$	—	$	—	$	—	$	1,347,030

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 June 30, 2015:
Bank loans	$	162,007	$	12,577	$	4,249	$	2,450	$	474	$	6,028	$	187,785
As of December 31, 2014:
Bank loans	$	291,214	$	32,660	$	5,424	$	—	$	1,350	$	282	$	330,930

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 (in thousands):

	30-59 Days		60-89 Days		Greater than 90 Days		Total Past Due		Current (3)		Total Loans Receivable		Total Loans > 90 Days and Accruing
As of June 30, 2015:
Whole loans	$	—	$	—	$	—	$	—	$	1,502,603	$	1,502,603	$	—
B notes	—		—		—		—		15,997		15,997		—
Mezzanine loans	—		—		—		—		54,822		54,822		—
Bank loans (1)	—		—		474		474		187,311		187,785		—
Middle market loans	—		4,956		—		4,956		326,039		330,995		—
Residential mortgage loans (2)	—		80		116		196		107,928		108,124		—
Total loans	$	—	$	5,036	$	590	$	5,626	$	2,194,700	$	2,200,326	$	—
As of December 31, 2014:
Whole loans	$	—	$	—	$	—	$	—	$	1,263,592	$	1,263,592	$	—
B notes	—		—		—		—		16,072		16,072		—
Mezzanine loans	—		—		—		—		67,366		67,366		—
Bank loans (1)	—		—		1,350		1,350		329,580		330,930		—
Middle market loans	—		—		—		—		250,113		250,113		—
Residential mortgage loans (2)	443		82		119		644		113,612		114,256		—
Loans receivable-related party	—		—		—		—		1,277		1,277		—
Total loans	$	443	$	82	$	1,469	$	1,994	$	2,041,612	$	2,043,606	$	—

(1) Contains $6.0 million and $282,000 of bank loans held for sale at June 30, 2015 and December 31, 2014, respectively.

(2) Contains $105.1 million and $111.5 million of residential mortgage loans held for sale at June 30, 2015 and December 31, 2014, respectively.

(3) Current loans include one impaired mezzanine loan and one impaired whole loan with amortized costs of $38.1 million and $2.2 million, respectively, that were both fully reserved as of June 30, 2015.

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 June 30, 2015:
Loans without a specific valuation allowance:
Whole loans	$	128,927	$	128,927	$	—		$	128,520	$	14,606
B notes	$	—	$	—	$	—		$	—	$	—
Mezzanine loans	$	—	$	—	$	—		$	—	$	—
Bank loans	$	—	$	—	$	—		$	—	$	—
Middle market loans	$	—	$	—	$	—		$	—	$	—
Residential mortgage loans	$	3,030	$	3,030	$	—		$	2,818	$	81
Loans receivable - related party	$	—	$	—	$	—		$	—	$	—
Loans with a specific valuation allowance:
Whole loans	$	2,202	$	2,202	$	(2,202	)	$	2,202	$	26
B notes	$	—	$	—	$	—		$	—	$	—
Mezzanine loans	$	38,072	$	38,072	$	(38,072	)	$	38,072	$	—
Bank loans	$	474	$	474	$	(257	)	$	237	$	—
Middle market loans	$	4,956	$	4,956	$	(3,207	)	$	4,956	$	—
Residential mortgage loans	$	—	$	—	$	—		$	—	$	—
Loans receivable - related party	$	—	$	—	$	—		$	—	$	—
Total:
Whole loans	$	131,129	$	131,129	$	(2,202	)	$	130,722	$	14,632
B notes	—		—		—			—		—
Mezzanine loans	38,072		38,072		(38,072		)	38,072		—
Bank loans	474		474		(257		)	237		—
Middle market loans	4,956		4,956		(3,207		)	4,956		—
Residential mortgage loans	3,030		3,030		—			2,818		81
Loans receivable - related party	—		—		—			—		—
	$	177,661	$	177,661	$	(43,738	)	$	176,805	$	14,713

	Recorded Balance		Unpaid Principal Balance		Specific Allowance			Average Investment in Impaired Loans		Interest Income Recognized
As of December 31, 2014:
Loans without a specific valuation allowance:
Whole loans	$	128,108	$	128,108	$	—		$	130,445	$	12,679
B notes	$	—	$	—	$	—		$	—	$	—
Mezzanine loans	$	38,072	$	38,072	$	—		$	38,072	$	2,859
Bank loans	$	—	$	—	$	—		$	—	$	—
Middle market loans	$	—	$	—	$	—		$	—	$	—
Residential mortgage loans	$	2,082	$	2,082	$	—		$	2,082	$	148
Loans receivable - related party	$	—	$	—	$	—		$	—	$	—
Loans with a specific valuation allowance:
Whole loans	$	—	$	—	$	—		$	—	$	—
B notes	$	—	$	—	$	—		$	—	$	—
Mezzanine loans	$	—	$	—	$	—		$	—	$	—
Bank loans	$	1,350	$	1,350	$	(570	)	$	—	$	—
Middle market loans	$	—	$	—	$	—		$	—	$	—
Residential mortgage loans	$	—	$	—	$	—		$	—	$	—
Loans receivable - related party	$	—	$	—	$	—		$	—	$	—
Total:
Whole loans	$	128,108	$	128,108	$	—		$	130,445	$	12,679
B notes	—		—		—			—		—
Mezzanine loans	38,072		38,072		—			38,072		2,859
Bank loans	1,350		1,350		(570		)	—		—
Middle market loans	—		—		—			—		—
Residential mortgage loans	2,082		2,082		—			2,082		148
Loans receivable - related party	—		—		—			—		—
	$	169,612	$	169,612	$	(570	)	$	170,599	$	15,686

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
Six Months Ended June 30, 2015:
Whole loans	2	$	67,459	$	67,459
B notes	—	—		—
Mezzanine loans	1	38,072		0
Bank loans	—	—		—
Middle market loans	—	—		—
Residential mortgage loans	—	—		—
Loans receivable - related party	—	—		—
Total loans	3	$	105,531	$	67,459

Schedule of Intangible Assets and Goodwill

The following table summarizes the activity of intangible assets for the period indicated (in thousands):

	Management Contracts			Wholesale/Correspondent Relationships			Mortgage Servicing Rights			Total
Balance, beginning of period	$	9,434		$	302		$	8,874		$	18,610
Additions	—			—			8,360			8,360
Sales	—			—			—			—
Amortization	(892		)	(127		)	(1,831		)	(2,850		)
Total before impairment adjustment	8,542			175			15,403			24,120
Temporary impairment adjustment	—			—			250			250
Balance, June 30, 2015	$	8,542		$	175		$	15,653		$	24,370

Schedule Loan Servicing Portfolio

The activity in the loan servicing portfolio associated with capitalized servicing rights consisted of (in thousands):

	June 30, 2015			December 31, 2014
Balance, beginning of period	$	894,767		$	433,153
Additions	633,511			519,915
Payoffs, sales and curtailments	(79,666		)	(58,301		)
Balance, end of period	$	1,448,612		$	894,767

Schedule of Servicing Fees

These cash flows include contractually specified servicing fees, late fees and other ancillary servicing revenue and were recorded within fee income as follows (in thousands):

	For the Three Months Ended					For the Six Months Ended
	June 30,					June 30,
	2015		2014			2015		2014
Servicing fees from capitalized portfolio	$	911	$	336		$	1,462	$	644
Late fees	$	18	$	16		$	41	$	39
Other ancillary servicing revenue	$	3	$	(1	)	$	7	$	3

Debt and Credit Facilities

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

	Principal Outstanding		Unamortized Issuance Costs and Discounts		Outstanding Borrowings		Weighted Average Borrowing Rate	Weighted Average Remaining Maturity	Value of Collateral
As of June 30, 2015:
RREF CDO 2006-1 Senior Notes	$	57,205	$	—	$	57,205	2.28%	31.1 years	$	100,062
RREF CDO 2007-1 Senior Notes	125,055		—		125,055		1.19%	31.3 years	247,292
RCC CRE Notes 2013 Senior Notes	148,115		2,329		145,786		2.28%	13.5 years	192,666
RCC 2014-CRE2 Senior Notes	235,344		3,498		231,846		1.48%	16.8 years	348,194
RCC 2015-CRE3 Senior Notes	282,127		3,899		278,228		2.08%	16.7 years	340,076
Apidos Cinco CDO Senior Notes	208,893		—		208,893		0.93%	4.9 years	229,238
Moselle CLO S.A. Securitized Borrowings, at fair value (1)	159		—		159		N/A	N/A	557
Unsecured Junior Subordinated Debentures (2)	51,548		240		51,308		4.20%	21.3 years	—
6.0% Convertible Senior Notes	115,000		5,762		109,238		6.00%	3.4 years	—
8% Convertible Senior Notes	100,000		5,170		94,830		8.00%	4.5 years	—
CRE - Term Repurchase Facilities (3)	174,928		1,204		173,724		2.24%	18 days	273,686
CMBS - Term Repurchase Facility (4)	29,929		—		29,929		1.38%	18 days	34,330
Residential Mortgage Financing Agreements	96,580		—		96,580		2.74%	62 days	128,465
CMBS - Short Term Repurchase Agreements (5)	77,171		—		77,171		1.71%	20 days	113,381
Senior Secured Revolving Credit Agreement	151,000		3,491		147,509		3.05%	2.2 years	327,681
Total	$	1,853,054	$	25,593	$	1,827,461	2.56%	10.6 years	$	2,335,628

	Principal Outstanding		Unamortized Issuance Costs and Discounts		Outstanding Borrowings		Weighted Average Borrowing Rate	Weighted Average Remaining Maturity	Value of Collateral
As of December 31, 2014:
RREF CDO 2006-1 Senior Notes	$	61,423	—		$	61,423	2.12%	31.6 years	$	139,242
RREF CDO 2007-1 Senior Notes	130,340		133		130,207		1.19%	31.8 years	271,423
RCC CRE Notes 2013 Senior Notes	226,840		2,683		224,157		2.11%	14.0 years	249,983
RCC 2014-CRE2 Senior Notes	235,344		3,687		231,657		1.45%	17.3 years	346,585
Apidos CDO III Senior Notes	74,646		—		74,646		1.18%	5.7 years	85,553
Apidos Cinco CDO Senior Notes	255,664		201		255,463		0.81%	5.4 years	272,512
Moselle CLO S.A. Senior Notes, at fair value (6)	63,321		—		63,321		1.49%	5.0 years	93,576
Moselle CLO S.A. Securitized Borrowings, at fair value (1)	5,619		—		5,619		1.49%	5.0 years	—
Unsecured Junior Subordinated Debentures (2)	51,548		343		51,205		4.19%	21.8 years	—
6.0% Convertible Senior Notes	115,000		6,626		108,374		6.00%	3.9 years	—
CRE - Term Repurchase Facilities (3)	207,640		1,958		205,682		2.43%	20 days	297,571
CMBS - Term Repurchase Facility (4)	24,967		—		24,967		1.35%	20 days	30,180
Residential Investments - Term Repurchase Facility (6)	22,248		36		22,212		1.16%	1 day	27,885
Residential Mortgage Financing Agreements (7)	102,576		—		102,576		2.78%	207 days	147,472
CMBS - Short Term Repurchase Agreements (5)	44,225		—		44,225		1.63%	17 days	62,446
Senior Secured Revolving Credit Agreement	113,500		2,363		111,137		2.66%	2.7 years	262,687
Total	$	1,734,901	$	18,030	$	1,716,871	2.09%	10.0 years	$	2,287,115

(1) The securitized borrowings were collateralized by the same assets as the Moselle CLO Senior Notes.

(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 expense of $187,000 and $198,000 related to CRE repurchase facilities as of June 30, 2015 and December 31, 2014, respectively.

(4) Amounts also include accrued interest expense of $13,000 and $12,000 related to CMBS repurchase facilities as of June 30, 2015 and December 31, 2014, respectively. Amounts do not reflect CMBS repurchase agreement borrowings that are components of linked transactions as of December 31, 2014.

(5) Amounts also includes accrued interest expense of $39,000 and $31,000 related to CMBS short term repurchase facilities as of June 30, 2015 and December 31, 2014.

(6) The fair value option was elected for the borrowings associated with Moselle CLO. As such, the outstanding borrowings and principal outstanding amounts are stated at fair value. The unpaid principal amounts of these borrowings were $63.3 million at December 31, 2014

(7) Amounts also includes interest expense of $20,000 related to residential investment repurchase facilities as of December 31, 2014.

Schedule of Securitizations

The following table sets forth certain information with respect to RSO's securitizations:

Securitization	Closing Date	Maturity Dates	Reinvestment Period End	Total Note Paydowns as of June 30, 2015
				(in millions)
RREF CDO 2006-1 Senior Notes	August 2006	August 2046	September 2011	$	194.2
RREF CDO 2007-1 Senior Notes	June 2007	September 2046	June 2012	$	215.9
RCC CRE Notes 2013 Senior Notes	December 2013	December 2028	N/A	$	112.7
RCC 2014-CRE2 Senior Notes	July 2014	April 2032	N/A	$	—
RCC 2015-CRE3 Senior Notes	February 2015	March 2032	N/A	$	—
Apidos CDO III Senior Notes	May 2006	September 2020	June 2012	$	262.5
Apidos Cinco CDO Senior Notes	May 2007	May 2020	May 2014	$	113.1
Moselle CLO S.A. Securitized Borrowings	October 2005	January 2020	January 2012	$	5.0

Schedule of Short-term Debt

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

	As of June 30, 2015							As of December 31, 2014
	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	$	29,929		$	34,330	35	1.38%	$	24,967	$	30,180	33	1.35%
CRE Term Repurchase Facilities
Wells Fargo Bank (1)	173,745			273,686		13	2.24%	179,762		258,223		15	2.38%
Deutsche Bank AG (2)	(21		)			—	—%	25,920		39,348		2	2.78%
Short-Term Repurchase Agreements - CMBS
Deutsche Bank Securities, LLC	24,114			37,707		4	1.64%	33,783		44,751		8	1.62%
Wells Fargo Securities, LLC	53,057			75,674		20	1.72%	10,442		17,695		1	1.66%
Residential Investment Term Repurchase Facility
Wells Fargo Bank (3)	—			—		—	—%	22,212		27,885		6	1.16%
Residential Mortgage Financing Agreements
New Century Bank	40,313			46,849		195	2.73%	41,387		51,961		158	2.82%
Wells Fargo Bank	56,267			81,616		170	2.75%	61,189		95,511		104	2.75%
Totals	$	377,404		$	549,862			$	399,662	$	565,554

(1) The Wells Fargo CRE term repurchase facility borrowing includes $1.2 million and $1.7 million of deferred debt issuance costs as of June 30, 2015 and December 31, 2014, respectively.

(2) The Deutsche Bank term repurchase facility includes $21,000 and $268,000 of deferred debt issuance costs as of June 30, 2015 and December 31, 2014, respectively.

(3) The Wells Fargo resident investments term repurchase facility includes $36,000 of deferred debt issuance costs as of

Schedule of Linked Transactions

The assets in the following table were accounted for as linked transactions as of December 31, 2014 (in thousands). These linked repurchase agreements are not included in borrowings on RSO consolidated balance sheets.

	As of December 31, 2014
	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	$	4,941	$	6,371	7	1.67%
Short-Term Repurchase Agreements - CMBS
JP Morgan Securities, LLC	—		—		—	—%
Wells Fargo Securities, LLC	4,108		6,233		2	1.37%
Deutsche Bank Securities, LLC	24,348		36,001		10	1.57%
Totals	$	33,397	$	48,605

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
As of June 30, 2015:
CMBS Term Repurchase Facility
Wells Fargo Bank, National Association	$	4,024	18	1.38%
CRE Term Repurchase Facilities
Wells Fargo Bank, National Association	$	99,791	18	2.24%
Short-Term Repurchase Agreements - CMBS
Wells Fargo Securities, LLC	$	13,236	11	1.64%
Deutsche Bank Securities, LLC	$	22,784	24	1.72%
Residential Mortgage Financing Agreements
Wells Fargo Bank	$	25,349	62	2.75%
New Century Bank	$	6,537	61	2.73%
As of December 31, 2014:
CMBS Term Repurchase Facility
Wells Fargo Bank, National Association	$	6,486	20	1.35%
Residential Investment Term Repurchase Facility
Wells Fargo Bank, National Association	$	5,017	1	1.16%
CRE Term Repurchase Facilities
Wells Fargo Bank, National Association	$	76,148	20	2.38%
Deutsche Bank Securities, LLC	$	13,017	19	2.78%
Short-Term Repurchase Agreements - CMBS
Wells Fargo Securities, LLC	$	2,127	9	1.66%
Deutsche Bank Securities, LLC	$	11,810	20	1.62%
Residential Mortgage Financing Agreements
New Century Bank	$	853	242	2.82%
Wells Fargo Bank	$	6,902	183	2.75%

(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.

Company's Asset Recorded at Fair Value on Recurring Basis

The following table presents information about RSO’s assets and liabilities 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 June 30, 2015:
Assets:
Investment securities, trading	$	—	$	—		$	32,680		$	32,680
Investment securities available-for-sale	—		4,865			248,563			253,428
Loans held for sale	—		64,751			40,343			105,094
Derivatives (net)	—		1,275			3,014			4,289
Total assets at fair value	$	—	$	70,891		$	324,600		$	395,491
Liabilities:
Derivatives (net)	$	—	$	(355	)	$	(6,636	)	$	(6,991	)
Total liabilities at fair value	$	—	$	(355	)	$	(6,636	)	$	(6,991	)
As of December 31, 2014:
Assets:
Investment securities, trading	$	—	$	—		$	20,786		$	20,786
Investment securities available-for-sale	—		33,158			242,562			275,720
CMBS - linked transactions	—		—			15,367			15,367
Derivatives (net)	3,429		7			1,868			5,304
Total assets at fair value	$	3,429	$	33,165		$	280,583		$	317,177
Liabilities:
Moselle CLO Notes	$	—	$	—		$	68,940		$	68,940
Derivatives (net)	$	—	$	—		$	8,476		$	8,476
Total liabilities at fair value	$	—	$	—		$	77,416		$	77,416

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			Structured Finance Securities			Warrant		Interest Rate Lock Commitments			Loans Held for Sale			Total
Beginning balance, January 1, 2015	$	185,772		$	72,157		$	20,786		$	898	$	970		$	83,380		$	363,963
Included in earnings	849			4,226			1,673			76		19,135			(1,186		)	24,773
Unlined transactions	33,239			—			—			—		—			—			33,239
Purchases/Originations	7,219			10,350			19,264			—		—			80,517			117,350
Sales	—			(5,594		)	(9,339		)	—		—			(122,269		)	(137,202		)
Paydowns	(41,706		)	(3,208		)	(488		)	—		—			(99		)	(45,501		)
Issuances	—			—			—			—		—			—			—
Settlements	—			(11,216		)	—			—		(18,065		)	—			(29,281		)
Included in OCI	(51		)	(7,345		)	784			—		—			—			(6,612		)
Transfers into Level 3	—			3,872			—			—		—			—			3,872
Ending balance, June 30, 2015	$	185,322		$	63,242		$	32,680		$	974	$	2,040		$	40,343		$	324,601

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents additional information about liabilities that are measured at fair value on a recurring basis for which RSO has utilized Level 3 inputs (in thousands):

	Interest rate swaps
Beginning balance, January 1, 2015	$	8,680
Unrealized gains - included in accumulated other comprehensive income	(2,237		)
Included in earnings	(134		)
Ending balance, June 30, 2015	$	6,309

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 June 30, 2015:
Assets:
Loans held for sale	$	—	$	6,028	$	—	$	6,028
Impaired loans	—		2,223		—		2,223
Total assets at fair value	$	—	$	8,251	$	—	$	8,251
As of December 31, 2014:
Assets:
Loans held for sale	$	—	$	36,956	$	—	$	36,956
Impaired loans	—		1,678		137,811		139,489
Total assets at fair value	$	—	$	38,634	$	137,811	$	176,445

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 June 30, 2015, the significant unobservable inputs used in the fair value measurements were as follows (in thousands):

	Fair Value at June 30, 2015		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Interest rate swap agreements	$	6,300	Discounted cash flow	Weighted average credit spreads	4.55	%

Fair Value of Financial Instruments

The fair values of RSO’s remaining financial instruments that are not reported at fair value on their 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 June 30, 2015:
Loans held-for-investment	$	2,042,885	$	2,030,262	$	—	$	508,407	$	1,521,855
CDO notes	$	1,047,172	$	929,970	$	—	$	—	$	929,970
Junior subordinated notes	$	51,308	$	17,802	$	—	$	—	$	17,802
Convertible notes	$	204,068	$	204,068	$	—	$	—	$	204,068
Repurchase agreements	$	377,404	$	377,404	$	—	$	—	$	377,404
Senior secured revolving credit agreement	$	147,509	$	147,509	$	—	$	—	$	147,509
As of December 31, 2014:
Loans held-for-investment	$	1,925,980	$	1,909,019	$	—	$	570,071	$	1,338,948
Loans receivable-related party	$	558	$	558	$	—	$	—	$	558
CDO notes	$	1,046,493	$	975,762	$	—	$	—	$	975,762
Junior subordinated notes	$	51,205	$	17,699	$	—	$	—	$	17,699
Convertible notes	$	108,374	$	108,374	$	—	$	—	$	108,374
Repurchase agreements	$	399,662	$	399,662	$	—	$	—	$	399,662
Senior secured revolving credit agreement	$	111,137	$	111,137	$	—	$	—	$	111,137