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DEBT OBLIGATIONS | 9 Months Ended
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Sep. 30, 2015
Debt Disclosure [Abstract] |
DEBT OBLIGATIONS | 7. DEBT OBLIGATIONS The details of the Company’s debt obligations at September 30, 2015 and December 31, 2014 are as follows ($ in thousands): September 30, 2015
Debt Obligations |  | Committed Financing |  | Debt Obligations Outstanding |  | Committed but Unfunded |  | Interest Rate at September 30, 2015 |  | Current Term Maturity |  | Remaining Extension Options |  | Eligible Collateral (1) |  | Carrying Amount of Collateral |  | Fair Value of Collateral
Committed Loan Repurchase Facility |  | $ | 600,000 |  |  | $ | 218,516 |  |  | $ | 381,484 |  |  | 1.96% - 2.71% |  | 10/30/2016 |  | (3) |  | (6) |  | $ | 323,137 |  |  | $ | 325,108 |
Committed Loan Repurchase Facility |  | 400,000 |  |  | 128,955 |  |  | 271,045 |  |  | 2.45% - 4.21% |  | 4/10/2016 |  | (4) |  | (7) |  | 253,930 |  |  | 255,235 |
Committed Loan Repurchase Facility |  | 450,000 |  |  | 276,540 |  |  | 173,460 |  |  | 2.45% - 4.21% |  | 5/24/2016 |  | (3) |  | (6) |  | 498,487 |  |  | 502,738 |
Total Committed Loan Repurchase Facilities |  | 1,450,000 |  |  | 624,011 |  |  | 825,989 |  |  |  |  |  |  |  |  |  |  | 1,075,554 |  |  | 1,083,081 |
Committed Securities Repurchase Facility |  | 300,000 |  |  | 161,529 |  |  | 138,471 |  |  | 0.88% - 1.30% |  | 10/31/2016 |  | N/A |  | (8) |  | 193,271 |  |  | 193,271 |
Uncommitted Securities Repurchase Facility |  | N/A (2) |  | 405,786 |  |  | N/A (2) |  | 0.50% - 1.82% |  | 10/2015 |  | N/A |  | (8) |  | 479,670 |  |  | 479,670 |
Total Repurchase Facilities |  | 1,750,000 |  |  | 1,191,326 |  |  | 964,460 |  |  |  |  |  |  |  |  |  |  | 1,748,495 |  |  | 1,756,022 |
Borrowings Under Credit Agreement |  | 50,000 |  |  | 20,400 |  |  | 29,600 |  |  | 2.94% - 2.96% |  | 1/24/2016 |  | N/A |  | (9) |  | 21,765 |  |  | 22,920 |
Revolving Credit Facility |  | 75,000 |  |  | 50,000 |  |  | 25,000 |  |  | 3.69% - 5.75% |  | 2/11/2017 |  | (3) |  | N/A (11) |  | N/A (11) |  | N/A (11)
Mortgage Loan Financing |  | 555,786 |  |  | 555,786 |  |  | — |  |  | 4.25% - 6.75% |  | 2018 - 2025 |  | N/A |  | (12) |  | 723,407 |  |  | 796,740 |
FHLB Financing |  | 2,248,712 |  |  | 1,786,000 |  |  | 462,712 |  |  | 0.27% - 2.74% |  | 2015 - 2024 |  | N/A |  | (9) |  | 2,250,547 |  |  | 2,258,794 |
Total Debt Obligations |  | $ | 4,679,498 |  |  | $ | 3,603,512 |  |  | $ | 1,481,772 |  |  |  |  |  |  |  |  |  |  | $ | 4,744,214 |  |  | $ | 4,834,476 |
(1) | Collateral includes first mortgage and mezzanine real estate loans and investment grade commercial real estate securities. It does not include the real estate collateralizing such loans and securities.
(2) | Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances
(3) | Two additional twelve month periods at Company's option
(4) | Three additional 364 day periods at Company's option
(5) | One additional twelve month period
(6) | First mortgage commercial real estate loans
(7) | First mortgage and mezzanine commercial real estate loans
(8) | Investment grade commercial real estate securities
(9) | First mortgage and mezzanine commercial real estate loans and investment grade commercial real estate securities
(10) | First mortgage commercial real estate loan
(11) | The obligations under the Revolving Credit Facility are guaranteed by the Company and certain of its subsidiaries and secured by equity pledges in certain Company subsidiaries.
(12) | Using undepreciated value of commercial real estate to approximate fair value
December 31, 2014
Debt Obligations |  | Committed Financing |  | Debt Obligations Outstanding |  | Committed but Unfunded |  | Interest Rate at December 31, 2014 |  | Current Term Maturity |  | Remaining Extension Options |  | Eligible Collateral (1) |  | Carrying Amount of Collateral |  | Fair Value of Collateral
Committed Loan Repurchase Facility |  | $ | 450,000 |  |  | $ | 147,796 |  |  | $ | 302,204 |  |  | 2.42% - 2.66% |  | 10/30/2016 |  | (3) |  | (6) |  | $ | 278,530 |  |  | $ | 279,921 |
Committed Loan Repurchase Facility |  | 250,000 |  |  | 138,711 |  |  | 111,289 |  |  | 2.41% - 3.04% |  | 4/10/2016 |  | (4) |  | (7) |  | 144,858 |  |  | 145,749 |
Committed Loan Repurchase Facility |  | 450,000 |  |  | 222,516 |  |  | 227,484 |  |  | 2.42% - 3.16% |  | 5/26/2015 |  | (3) |  | (6) |  | 378,573 |  |  | 380,344 |
Total Committed Loan Repurchase Facilities |  | 1,150,000 |  |  | 509,023 |  |  | 640,977 |  |  |  |  |  |  |  |  |  |  | 801,961 |  |  | 806,014 |
Committed Securities Repurchase Facility |  | 300,000 |  |  | 174,853 |  |  | 125,147 |  |  | 0.87% - 1.27% |  | 4/30/2015 |  | N/A |  | (8) |  | 214,617 |  |  | 214,617 |
Uncommitted Securities Repurchase Facility |  | N/A (2) |  | 747,789 |  |  | N/A (2) |  | 0.50% - 1.66% |  | Various |  | N/A |  | (8) |  | 861,456 |  |  | 861,456 |
Total Repurchase Facilities |  | 1,450,000 |  |  | 1,431,665 |  |  | 766,124 |  |  |  |  |  |  |  |  |  |  | 1,878,034 |  |  | 1,882,087 |
Borrowings Under Credit Agreement |  | 50,000 |  |  | 11,000 |  |  | 39,000 |  |  | 2.91% |  | 1/24/2016 |  | N/A |  | (9) |  | — |  |  | — |
Borrowings Under Credit and Security Agreement |  | 46,750 |  |  | 46,750 |  |  | — |  |  | 2.01% |  | 10/6/2015 |  | (5) |  | (10) |  | 54,775 |  |  | 55,000 |
Revolving Credit Facility |  | 75,000 |  |  | 25,000 |  |  | 50,000 |  |  | 3.66% - 5.75% |  | 2/11/2017 |  | (3) |  | N/A (11) |  | N/A (11) |  | N/A (11)
Mortgage Loan Financing |  | 447,410 |  |  | 447,410 |  |  | — |  |  | 4.25% - 6.75% |  | 2018 - 2024 |  | N/A |  | (12) |  | 591,613 |  |  | 637,271 |
FHLB Financing |  | 1,900,000 |  |  | 1,611,000 |  |  | 289,000 |  |  | 0.30% - 2.74% |  | 2015 - 2024 |  | N/A |  | (9) |  | 2,068,988 |  |  | 2,073,955 |
Total Debt Obligations |  | $ | 3,969,160 |  |  | $ | 3,572,825 |  |  | $ | 1,144,124 |  |  |  |  |  |  |  |  |  |  | $ | 4,593,410 |  |  | $ | 4,648,313 |
(1) | Collateral includes first mortgage and mezzanine real estate loans and investment grade commercial real estate securities. It does not include the real estate collateralizing such loans and securities.
(2) | Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances
(3) | Two additional twelve month periods at Company's option
(4) | One additional 364 day period at Company's option
(5) | One additional twelve month period
(6) | First mortgage commercial real estate loans
(7) | First mortgage and mezzanine commercial real estate loans
(8) | Investment grade commercial real estate securities
(9) | First mortgage and mezzanine commercial real estate loans and investment grade commercial real estate securities
(10) | First mortgage commercial real estate loan
(11) | The obligations under the Revolving Credit Facility are guaranteed by the Company and certain of its subsidiaries and secured by equity pledges in certain Company subsidiaries.
(12) | Using undepreciated value of commercial real estate to approximate fair value
Committed Loan and Securities Repurchase Facilities The Company has entered into multiple committed master repurchase agreements in order to finance its lending activities. The Company has entered into three committed master repurchase agreements, as outlined in the September 30, 2015 table above, totaling $1.5 billion of credit capacity. Assets pledged as collateral under these facilities are limited to whole mortgage loans or participation interests in mortgage loans collateralized by first liens on commercial properties. The Company also has a term master repurchase agreement with a major U.S. bank to finance CMBS totaling $300.0 million. The Company’s repurchase facilities include covenants covering net worth requirements, minimum liquidity levels, and maximum leverage ratios. The Company believes it was in compliance with all covenants as of September 30, 2015 and December 31, 2014. The Company has the option to extend some of the current facilities subject to a number of conditions, including satisfaction of certain notice requirements, no event of default exists, and no margin deficit exists, all as defined in the repurchase facility agreements. The lenders have sole discretion with respect to the inclusion of collateral in these facilities, to determine the market value of the collateral on a daily basis, to be exercised on a good faith basis, and have the right to require additional collateral, a full and/or partial repayment of the facilities (margin call), or a reduction in unused availability under the facilities, sufficient to rebalance the facilities if the estimated market value of the included collateral declines. On April 29, 2014, the Company amended the terms of its master repurchase agreement with a major U.S. bank to finance loans the Company originates to temporarily increase financing capacity on its facility from $300.0 million to $450.0 million to enable the financing of one of its assets. The increase in capacity terminated in accordance with its terms. On October 30, 2014, the Company amended the terms of this master repurchase agreement to increase the financing capacity from $300.0 million to $450.0 million, to temporarily increase financing capacity on its facility from $450.0 million to $650.0 million to enable the financing of one of its assets and to remove the concentration limit on balance sheet financing. The temporary increase in capacity has since terminated in accordance with its terms. On December 31, 2014, the Series of LCFH were also added as additional guarantors. On June 17, 2014, the Company amended the terms of its master repurchase agreement with a major U.S. bank to finance loans the Company originates to increase the maximum advance rate available on all classes of assets. On June 30, 2014, the Company amended its master repurchase agreement with a major U.S. insurance company to finance loans the Company originates to extend the maturity date of the facility to December 31, 2014. The Company terminated this master repurchase agreement effective November 30, 2014. On December 31, 2014, the Company amended the terms of its master repurchase agreement with a major U.S. bank to finance loans the Company originates to, among other items, permit the financing of mezzanine debt and amend the leverage covenant to be consistent with those in most of our other credit facilities. The Series of LCFH were also added as additional guarantors. On February 19, 2015, the Company executed an amendment and extension of one of its credit facilities with a major banking institution, providing for, among other things, extending the maximum term of the facility to May 24, 2018, limiting the recourse exposure to the Company and modifying the pricing terms of the facility. On April 10, 2015, the Company executed an amendment and extension of one of its credit facilities with a major banking institution, providing for, among other things, the extension of the maximum term of the facility to April 10, 2019 and increasing the maximum funding capacity of the facility to $400.0 million. On August 14, 2015, the Company executed an amendment of one of its credit facilities with a major banking institution, providing for, among other things, an increase in the maximum funding capacity to $600.0 million. Borrowings under Credit Agreement On January 24, 2013, the Company entered into a $50.0 million credit agreement with one of its multiple committed financing counterparties in order to finance its securities and lending activities (the “Credit Agreement”). The Credit Agreement terminates on January 24, 2016 with no further extension options. Interest on the Credit Agreement is London Interbank Offered Rate (“LIBOR”) plus 275 basis points per annum payable monthly in arrears. LCFH is subject to customary affirmative covenants and negative covenants, including limitations on the assumption or incurrence of additional liens or debt, restrictions on certain payments or transfers of assets, and restrictions on the amendment of contracts or documents related to the assets under pledge. Under the Credit Agreement, LCFH is subject to customary financial covenants relating to maximum leverage, minimum tangible net worth, and minimum liquidity consistent with our other credit facilities. The Company’s ability to borrow under the Credit Agreement is dependent on, among other things, LCFH’s compliance with the financial covenants. The Company believes it was in compliance with all covenants as of September 30, 2015 and December 31, 2014. Borrowings under Credit and Security Agreement On October 31, 2014, the Company entered into a credit and security agreement (the “Credit and Security Agreement”) with a major banking institution to finance one of its assets in the amount of $46.8 million and an interest rate of LIBOR plus 185 basis points. On September 21, 2015, the debt was repaid, and the Credit and Security Agreement was terminated. Revolving Credit Facility On February 11, 2014, the Company entered into a revolving credit facility (the “Revolving Credit Facility”). The Revolving Credit Facility provides for an aggregate maximum borrowing amount of $75.0 million, including a $25.0 million sublimit for the issuance of letters of credit. The Revolving Credit Facility is available on a revolving basis to finance the Company’s working capital needs and for general corporate purposes. The Revolving Credit Facility has a three-year maturity, which maturity may be extended by two twelve-month periods subject to the satisfaction of customary conditions, including the absence of default. Interest on the Revolving Credit Facility is one-month LIBOR plus 3.50% per annum payable monthly in arrears. The obligations under the Revolving Credit Facility are guaranteed by the Company and certain of its subsidiaries. The Revolving Credit Facility is secured by a pledge of the shares of (or other ownership or equity interests in) certain subsidiaries to the extent the pledge is not restricted under existing regulations, law or contractual obligations. LCFH is subject to customary affirmative covenants and negative covenants, including limitations on the incurrence of additional debt, liens, restricted payments, sales of assets and affiliate transactions. In addition, under the Revolving Credit Facility, LCFH is required to comply with financial covenants relating to minimum net worth, maximum leverage, minimum liquidity, and minimum fixed charge coverage, consistent with our other credit facilities. The Company’s ability to borrow under the Revolving Credit Facility is dependent on, among other things, LCFH’s compliance with the financial covenants. The Revolving Credit Facility contains customary events of default, including non-payment of principal or interest, fees or other amounts, failure to perform or observe covenants, cross-default to other indebtedness, the rendering of judgments against the Company or certain of our subsidiaries to pay certain amounts of money and certain events of bankruptcy or insolvency. Debt Issuance Costs As discussed in Note 2, Significant Accounting Policies, the Company considers its committed loan master repurchase facilities, borrowings under the Credit Agreement and Revolving Credit Facility to be revolving debt arrangements. As such, the Company continues to defer and present costs associated with these facilities as an asset, subsequently amortizing them ratably over the term of each revolving debt arrangement. As of September 30, 2015 and December 31, 2014, the amount of unamortized costs relating to such facilities are $3.7 million and $4.0 million, respectively and are included in other assets in the combined consolidated balance sheets. Uncommitted Securities Repurchase Facilities The Company has also entered into multiple master repurchase agreements with several counterparties collateralized by real estate securities. The borrowings under these agreements have typical advance rates between 65% and 95% of the fair value of collateral. Mortgage Loan Financing During the nine months ended September 30, 2015, the Company executed 36 term debt agreements to finance properties in its real estate portfolio. During the nine months ended September 30, 2014, the Company executed five term debt agreement to finance such real estate. These nonrecourse debt agreements provide for fixed rate financing at rates, ranging from 4.25% to 6.75%, maturing in 2018, 2020, 2021, 2022, 2023, 2024 and 2025. These loans have carrying amounts of $555.8 million and $447.4 million, net of unamortized premiums of $7.0 million and $5.3 million at September 30, 2015 and December 31, 2014, respectively, representing proceeds received upon financing greater than the contractual amounts due under these agreements. The premiums are being amortized over the remaining life of the respective debt instruments using the effective interest method. The Company recorded $0.2 million and $0.7 million of premium amortization, which decreased interest expense, for the three and nine months ended September 30, 2015, respectively. The Company recorded $0.2 million and $0.5 million of premium amortization, which decreased interest expense, for the three and nine months ended September 30, 2014, respectively. The loans are collateralized by real estate and related lease intangibles, net, of $723.4 million and $591.6 million as of September 30, 2015 and December 31, 2014, respectively. Borrowings from the Federal Home Loan Bank (“FHLB”) On July 11, 2012, Tuebor, a wholly-owned consolidated subsidiary, became a member of the FHLB and subsequently drew its first secured funding advances from the FHLB. On June 26, 2015, Tuebor’s advance limit was increased to the lesser of $2.9 billion, 40% of Ladder Capital Corp’s total assets or 150% of Ladder Capital Corp’s total equity. As of September 30, 2015, Tuebor had $1.8 billion of borrowings outstanding (with an additional $462.7 million of committed term financing available from the FHLB), with terms of overnight to nine years (with a weighted average of 1.6 years), interest rates of 0.27% to 2.74% (with a weighted average of 0.83%), and advance rates of 50.0% to 95.2% of the collateral. As of September 30, 2015, collateral for the borrowings was comprised of $1.7 billion of CMBS and U.S. Agency Securities and $523.3 million of first mortgage commercial real estate loans. As of December 31, 2014, Tuebor had $1.6 billion of borrowings outstanding (with an additional $289.0 million of committed term financing available from the FHLB), with terms of overnight to 10 years (with a weighted average of 2.0 years), interest rates of 0.30% to 2.74% (with a weighted average of 0.79%), and advance rates of 50.0% to 95.2% of the collateral. As of December 31, 2014, collateral for the borrowings was comprised of $1.6 billion of CMBS and U.S. Agency Securities and $451.8 million of first mortgage commercial real estate loans. Tuebor is subject to state regulations which require that dividends (including dividends to the Company as its parent) may only be made with regulatory approval. However, there can be no assurance that we would obtain such approval if sought. Largely as a result of this restriction, approximately $414.2 million of the member’s capital were restricted from transfer to Tuebor’s parent without prior approval of state insurance regulators at September 30, 2015. Combined Maturity of Debt Obligations The following schedule reflects the Company’s contractual payments under all borrowings by maturity ($ in thousands):
Period ending December 31, |  | Borrowings by Maturity (1)(2)
2015 (last 3 months) |  | $ | 685,221 |
2016 |  | 1,746,509 |
2017 |  | 610,534 |
2018 |  | 78,502 |
2019 |  | 28,731 |
Thereafter |  | 1,066,535 |
Total |  | $ | 4,216,032 |
(1) Contractual payments under current maturities, some of which are subject to extensions. (2) Includes $612.0 million of the Company’s senior unsecured notes. Refer to Note 8. The Company’s debt facilities are subject to covenants which require the Company to maintain a minimum level of total equity. Largely as a result of this restriction, approximately $900.3 million of the total equity is restricted from payment as a dividend by the Company at September 30, 2015. 8. SENIOR UNSECURED NOTES In April 2015, FASB issued ASU 2015-03, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Beginning April 1, 2015, the Company elected to early adopt ASU 2015-03 and appropriately retrospectively applied the guidance to its senior unsecured notes, to all periods presented. Unamortized debt issuance costs of $7.6 million are included in senior unsecured notes as of September 30, 2015 and unamortized debt issuance costs of $9.4 million are included in senior unsecured notes as of December 31, 2014 (previously included in other assets on the combined consolidated balance sheets). On September 19, 2012, LCFH issued $325.0 million in aggregate principal amount of 7.375% Senior Notes due October 1, 2017 (the “2017 Notes”). The 2017 Notes require interest payments semi-annually in cash in arrears on April 1 and October 1 of each year, beginning on September 19, 2012. The 2017 Notes are unsecured and are subject to incurrence-based covenants, including limitations on the incurrence of additional debt, restricted payments, liens, sales of assets, affiliate transactions and other covenants typical for financings of this type. On August 1, 2014, LCFH issued $300.0 million in aggregate principal amount of 5.875% senior notes due 2021 (the “2021 Notes”). The 2021 Notes require interest payments semi-annually in cash in arrears on February 1 and August 1 of each year, beginning on February 1, 2015. The 2021 Notes will mature on August 1, 2021. The 2021 Notes are unsecured and are subject to incurrence-based covenants, including limitations on the incurrence of additional debt, restricted payments, liens, sales of assets, affiliate transactions and other covenants typical for financings of this type. On December 17, 2014, the Company retired $5.4 million of principal of the 2017 Notes for a repurchase price of $5.6 million recognizing a $0.2 million loss on extinguishment of debt. The remaining $319.6 million in aggregate principal amount of the 2017 Senior Notes is due October 2, 2017. LCFH issued the 2021 Notes and the 2017 Notes (collectively, the “Notes”) with Ladder Capital Finance Corporation (“LCFC”), as co-issuers on a joint and several basis. LCFC is a 100% owned finance subsidiary of LCFH with no assets, operations, revenues or cash flows other than those related to the issuance, administration and repayment of the Notes. Ladder Capital Corp and certain subsidiaries of LCFH currently guarantee the obligations under the Notes and the indenture.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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