FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2016

Company's Asset Recorded at Fair Value on Recurring Basis

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



	Level 1		Level 2		Level 3		Total
Assets - Investment securities
Investment securities	$	9,912	$	—	$	9,236	$	19,148
Pelium securities	—		—		25,610		25,610
March 31, 2016	$	9,912	$	—	$	34,846	$	44,758

Investment securities	$	11,062	$	—	$	9,898	$	20,960
Pelium securities	—		—		24,712		24,712
December 31, 2015	$	11,062	$	—	$	34,610	$	45,672



Liability - Apidos contractual commitment	Level 1		Level 2		Level 3		Total
March 31, 2016	$	—	$	—	$	414	$	414
December 31, 2015	—		—		615		615

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, 2016 (in thousands):



	Investment Securities			Pelium Securities			Total
Balance, beginning of year	$	9,898		$	24,712		$	34,610
Purchases	732			4,464			5,196
Income accreted	297			—			297
Payments and distributions received, net	(467		)	(1,398		)	(1,865		)
Sales	(666		)	(2,912		)	(3,578		)
Impairment	(98		)	—			(98		)
Realized gains on CDOs	498			—			498
Gains on trading securities	—			460			460
Unrealized holding gains on trading securities	22			284			306
Change in unrealized gains included in accumulated other comprehensive loss	(980		)	—			(980		)
Balance, end of period	$	9,236		$	25,610		$	34,846



	Investment Securities			Pelium Securities			Total
Balance, beginning of year	$	8,489		$	17,366		$	25,855
Purchases	2,524			27,630			30,154
Income accreted	1,238			—			1,238
Payments and distributions received, net	(1,913		)	(2,874		)	(4,787		)
Sales	(174		)	(16,012		)	(16,186		)
Impairment	(331		)	—			(331		)
Gains (losses) on sales of trading securities	(14		)	1,415			1,401
Unrealized holding gains on trading securities	269			(2,813		)	(2,544		)
Change in unrealized gains included in accumulated other comprehensive loss	(190		)	—			(190		)
Balance, end of period	$	9,898		$	24,712		$	34,610

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, 2016		Valuation Technique	Unobservable Inputs	Assumptions (weighted average)
CLO securities	$	7,794	Discounted cash flow	Constant default rate	1% - 2%
				Loss severity rate	25%
				Constant prepayment rate	25%
				Reinvestment price on collateral	99%
				Reinvestment spread	0% - 4.50%
				Discount rates	15%

Trading securities	$	1,442	Net asset value	Value of underlying assets	variable
			Discounted cash flow	Constant default rate	5%
				Constant prepayment rate	30%
				Loss severity rate	30%

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, 2016				December 31, 2015
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Borrowings:
Real estate debt	$	9,822	$	10,689	$	9,877	$	10,618
Senior Notes	10,000		12,553		10,000		12,202
Other debt	775		775		870		870
	$	20,597	$	24,017	$	20,747	$	23,690