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Debt Securities (Tables)
 12 Months Ended
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.