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Debt Securities (Tables) | 12 Months Ended
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Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract] |
Available-for-sale Securities | The following table summarizes the Company's investment in debt securities.
|  |  |  | Gross Cumulative Unrealized |  |
(in thousands) |  | Amortized Cost |  | Gains |  | Losses |  | Fair Value
December 31, 2018 |  |  |  |  |  |  |  |
Available-for-sale debt securities: |  |  |  |  |  |  |  |
N-Star CDO bonds |  | $ | 67,513 |  |  | $ | 1,565 |  |  | $ | (4,951 | ) |  | $ | 64,127 |
CMBS of consolidated fund |  |  |  |  |  |  |  | 32,706 |
|  |  |  |  |  |  |  | $ | 96,833 |
December 31, 2017 |  |  |  |  |  |  |  |
Available-for-sale debt securities: |  |  |  |  |  |  |  |
CRE securities of consolidated N-Star CDOs (2): |  |  |  |  |  |  |  |
CMBS |  | $ | 144,476 |  |  | $ | 3,999 |  |  | $ | (530 | ) |  | $ | 147,945 |
Other securities (3) |  | 61,302 |  |  | 5,994 |  |  | (313 | ) |  | 66,983 |
N-Star CDO bonds |  | 88,374 |  |  | 2,778 |  |  | (219 | ) |  | 90,933 |
CMBS and other securities (1) |  | 13,829 |  |  | 3,739 |  |  | (186 | ) |  | 17,382 |
|  | 307,981 |  |  | 16,510 |  |  | (1,248 | ) |  | 323,243 |
CMBS of consolidated fund |  |  |  |  |  |  |  | 25,099 |
|  |  |  |  |  |  |  | $ | 348,342 |
__________
(1) | Other securities include a trust preferred security and certain investments in other third party CDO bonds.
(2) Carrying value of CDO bonds in consolidated N-Star CDOs was $215.5 million at December 31, 2017. (3) Represents primarily agency debentures, and to a lesser extent, unsecured REIT debt and trust preferred securities.
Realized gains recorded in other gain, net | Realized gains (losses) from sale of debt securities are recorded in other gain (loss), as follows.
|  | Year Ended December 31,
(In thousands) |  | 2018 |  | 2017
Available-for-sale debt securities: |  |  |  |
Proceeds from sale |  | $ | 78,197 |  |  | $ | 30,279 |
Gross realized gain |  | 11,304 |  |  | 951 |
Gross realized (loss) |  | (592 | ) |  | — |
AFS securities in a gross unrealized loss position | The following table presents AFS debt securities in a gross unrealized loss position:
| December 31, 2018 |  | December 31, 2017
| Less Than 12 Months |  | Less Than 12 Months
(In thousands) | Fair Value |  | Gross Unrealized Loss |  | Fair Value |  | Gross Unrealized Loss
CRE securities of consolidated N-Star CDOs: |  |  |  |  |  |  |
CMBS | $ | — |  |  | $ | — |  |  | $ | 2,229 |  |  | $ | (530 | )
Other securities | — |  |  | — |  |  | 8,218 |  |  | (313 | )
N-Star CDO bonds | 54,459 |  |  | (4,951 | ) |  | 13,392 |  |  | (219 | )
CMBS and other securities | — |  |  | — |  |  | 12,956 |  |  | (186 | )
| $ | 54,459 |  |  | $ | (4,951 | ) |  | $ | 36,795 |  |  | $ | (1,248 | )
Purchased credit-impaired debt securities | Certain debt securities acquired by the Company through the Merger, consisting of certain N-Star CDOs, other CDOs and CMBS securities, were considered to be credit-impaired at acquisition, with the following outstanding balance:
(In thousands) |  | December 31, 2018 |  | December 31, 2017
Outstanding principal |  | $ | 213,929 |  |  | $ | 411,174 |
Amortized cost |  | 2,757 |  |  | 26,761 |
Carrying value |  | 3,619 |  |  | 31,789 |
PCI debt securities are recorded at their initial investment and accreted to the estimated cash flows expected to be collected as measured at acquisition date. The excess of cash flows expected to be collected, measured at acquisition date, over the estimated fair value represents the accretable yield and is recognized in interest income over the remaining life of the security. The difference between contractually required payments at the acquisition date and the cash flows expected to be collected, which represents the nonaccretable difference, reflects the estimated future credit losses expected to be incurred over the life of the security and is not accreted to interest income nor recorded on the balance sheet. Subsequent decreases in undiscounted expected cash flows attributable to further credit deterioration as well as changes in expected timing of future cash flows can result in recognition of OTTI. Information about these PCI debt securities upon acquisition is presented below:
(In thousands) |  | January 2017
Contractually required payments including interest |  | $ | 574,088 |
Less: Nonaccretable difference |  | (449,261 | )
Cash flows expected to be collected |  | 124,827 |
Less: Accretable yield |  | (70,283 | )
Fair value of PCI debt securities acquired |  | $ | 54,544 |
The following table presents changes in accretable yield related to these PCI debt securities.
|  | Year Ended December 31,
(In thousands) |  | 2018 |  | 2017
Beginning accretable yield |  | $ | 44,610 |  |  | $ | — |
Assumed through the Merger |  | — |  |  | 70,283 |
Accretion recognized in earnings |  | (3,489 | ) |  | (12,461 | )
Reduction due to payoffs, disposals or deconsolidation |  | (17,081 | ) |  | (8,963 | )
Net reclassifications to nonaccretable difference (1) |  | (24,040 | ) |  | (4,249 | )
Ending accretable yield |  | $ | — |  |  | $ | 44,610 |
__________
(1) | Includes reclassifications to nonaccretable difference for PCI securities for which cash flows can no longer be reasonably estimated.

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- Definition Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=82897076&loc=d3e27340-111563 + Details
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