DISCONTINUED OPERATIONS (Tables)

12 Months Ended

Dec. 31, 2015


	(in thousands)
Proceeds received	$	84,928
Less: Carrying value of commercial mortgage loans (1)		(77,121)
Gain on sale before transaction costs		7,807
Transaction costs (2)		(2,656)
Gain on disposition of assets held for sale	$	5,151

(1)

Includes unamortized acquisition discounts of $15,951,000 as of the date of sale.

(2)

Transaction costs include $1,638,000 paid to CIM SBA Staffing, LLC, an affiliate of CIM Group, for reimbursement of costs in connection with the sale of substantially all of our commercial mortgage loans to an unrelated third party.

Reconciliation of the carrying amounts of assets and liabilities that are classified as held for sale


	December 31,
	2015		2014
	(in thousands)
Assets held for sale
Loans receivable, net	$	103,440	$	189,052
Cash and cash equivalents		15,936		9,937
Restricted cash		819		916
Accounts receivable and interest receivable, net		691		738
Other intangible assets		2,957		2,957
Other assets		5,149		5,199
Total assets held for sale	$	128,992	$	208,799
Liabilities associated with assets held for sale
Debt	$	47,121	$	41,901
Accounts payable and accrued expenses		2,302		2,709
Other liabilities		3,317		5,181
Total liabilities associated with assets held for sale	$	52,740	$	49,791

Schedule of loans receivable


		December 31,
		2015		2014
	(in thousands)
Commercial mortgage loans	$	3,511	$	108,864
SBA 7(a) loans, subject to secured borrowings		36,574		41,328
SBA 7(a) loans		43,096		38,707
Commercial real estate loan, subject to secured borrowing		20,408		—
Loans receivable		103,589		188,899
Deferred capitalized costs, net		406		292
Loan loss reserves		(555)		(139)
Net loans receivable	$	103,440	$	189,052

Schedule of debt


	December 31,
	2015		2014
	(in thousands)
Secured Borrowings—Government Guaranteed Loans:
Secured borrowing principal on SBA 7(a) loans sold for a premium and excess spread—variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 3.90% and 3.92% at December 31, 2015 and 2014, respectively	$	29,481	$	33,654
Secured borrowing principal on loans sold for excess spread—variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 1.58%		4,947		5,085
		34,428		38,739
Unamortized premiums on loans sold for a premium and excess spread		2,693		3,162
Total Secured Borrowings—Government Guaranteed Loans		37,121		41,901

Secured Borrowing—Commercial Real Estate Loan:
Secured borrowing based on 49% of the principal on a commercial real estate loan with a variable rate, reset monthly, based on 30-day LIBOR and a current coupon rate of 9.77% at December 31, 2015. The secured borrowing matures on March 1, 2017.		10,000		—
Total Secured Borrowings	$	47,121	$	41,901

Schedule of future principal payments on our debt


	Secured
Years Ending	Borrowings
December 31,	Principal(1)
	(in thousands)
2016	$	1,172
2017		11,213
2018		1,253
2019		1,297
2020		1,343
Thereafter		28,150
	$	44,428

(1)

Principal payments are generally dependent upon cash flows received from the underlying loans. Our estimate of their repayment is based on scheduled principal payments on the underlying loans. Our estimate will differ from actual amounts to the extent we experience prepayments and/or loan liquidations or charge‑offs. No payment is due unless payments are received from the borrowers on the underlying loans.

Reconciliation of the revenue and expenses classified as discontinued operations




			From the Acquisition
	Year Ended		Date through
	December 31, 2015		December 31, 2014
	(in thousands)

Revenue - Interest and other income	$	23,065	$	18,910

Expenses:
Interest expense		977		1,177
Fees to related party (1)		4,627		—
General and administrative (1)		1,527		4,472
Provision for income taxes		806		623
Total Expenses		7,937		6,272
Income from operations of assets held for sale		15,128		12,638
Gain on disposition of assets held for sale		5,151		—
Net income from discontinued operations	$	20,279	$	12,638

Salaries and related benefits of $3,530,000 were included in general and administrative expense for the period from the Acquisition Date through December 31, 2014 while, as a result of the transfer of substantially all our lending segment employees to an affiliate (see Note 14), such expenses were included in fees to related party for the year ended December 31, 2015.