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SEGMENT REPORTING | 3 Months Ended
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Mar. 31, 2019
Segment Reporting [Abstract] |
SEGMENT REPORTING | 19. SEGMENT REPORTING The Company has determined that it has three reportable segments based on how the chief operating decision maker reviews and manages the business. These reportable segments include loans, securities, and real estate. The loans segment includes mortgage loan receivables held for investment (balance sheet loans) and mortgage loan receivables held for sale (conduit loans). The securities segment is composed of all of the Company’s activities related to commercial real estate securities, which include investments in CMBS, U.S. Agency Securities, corporate bonds and equity securities. The real estate segment includes net leased properties, office buildings, a student housing portfolio, industrial buildings, a shopping center and condominium units. Corporate/other includes the Company’s investments in joint ventures, other asset management activities and operating expenses. The Company evaluates performance based on the following financial measures for each segment ($ in thousands):
| Loans |  | Securities |  | Real Estate(1) |  | Corporate/Other(2) |  | Company Total
Three months ended March 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income | $ | 73,152 |  |  | $ | 13,119 |  |  | $ | 8 |  |  | $ | 187 |  |  | $ | 86,466 |
Interest expense | (14,756 | ) |  | (2,488 | ) |  | (8,882 | ) |  | (25,122 | ) |  | (51,248 | )
Net interest income (expense) | 58,396 |  |  | 10,631 |  |  | (8,874 | ) |  | (24,935 | ) |  | 35,218 |
Provision for loan losses | (300 | ) |  | — |  |  | — |  |  | — |  |  | (300 | )
Net interest income (expense) after provision for loan losses | 58,096 |  |  | 10,631 |  |  | (8,874 | ) |  | (24,935 | ) |  | 34,918 |
Operating lease income | — |  |  | — |  |  | 28,921 |  |  | — |  |  | 28,921 |
Sale of loans, net | 7,079 |  |  | — |  |  | — |  |  | — |  |  | 7,079 |
Realized gain (loss) on securities | — |  |  | 2,865 |  |  | — |  |  | — |  |  | 2,865 |
Unrealized gain (loss) on equity securities | — |  |  | 2,078 |  |  | — |  |  | — |  |  | 2,078 |
Unrealized gain (loss) on Agency interest-only securities | — |  |  | 11 |  |  | — |  |  | — |  |  | 11 |
Realized gain on sale of real estate, net | — |  |  | — |  |  | 4 |  |  | — |  |  | 4 |
Impairment of real estate | — |  |  | — |  |  | (1,350 | ) |  | — |  |  | (1,350 | )
Fee and other income | 3,310 |  |  | 403 |  |  | 7 |  |  | 965 |  |  | 4,685 |
Net result from derivative transactions | (5,198 | ) |  | (5,836 | ) |  | — |  |  | — |  |  | (11,034 | )
Earnings (loss) from investment in unconsolidated joint ventures | — |  |  | — |  |  | 959 |  |  | — |  |  | 959 |
Gain (loss) on extinguishment of debt | — |  |  | — |  |  | (1,070 | ) |  | — |  |  | (1,070 | )
Total other income (loss) | 5,191 |  |  | (479 | ) |  | 27,471 |  |  | 965 |  |  | 33,148 |
Salaries and employee benefits | — |  |  | — |  |  | — |  |  | (23,574 | ) |  | (23,574 | )
Operating expenses | — |  |  | — |  |  | — |  |  | (5,403 | ) | (3) | (5,403 | )
Real estate operating expenses | — |  |  | — |  |  | (5,474 | ) |  | — |  |  | (5,474 | )
Real estate acquisition costs |  |  |  |  |  |  |  |  |  |  |  |  | — |
Fee expense | (1,194 | ) |  | (100 | ) |  | (418 | ) |  | — |  |  | (1,712 | )
Depreciation and amortization | — |  |  | — |  |  | (10,202 | ) |  | (25 | ) |  | (10,227 | )
Total costs and expenses | (1,194 | ) |  | (100 | ) |  | (16,094 | ) |  | (29,002 | ) |  | (46,390 | )
Income Tax (expense) benefit | — |  |  | — |  |  | — |  |  | 2,854 |  |  | 2,854 |
Segment profit (loss) | $ | 62,093 |  |  | $ | 10,052 |  |  | $ | 2,503 |  |  | $ | (50,118 | ) |  | $ | 24,530 |
Total assets as of March 31, 2019 | $ | 3,489,582 |  |  | $ | 1,619,128 |  |  | $ | 1,099,838 |  |  | $ | 316,871 |  |  | $ | 6,525,419 |
| Loans |  | Securities |  | Real Estate(1) |  | Corporate/Other(2) |  | Company Total
Three months ended March 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income | $ | 70,009 |  |  | $ | 8,014 |  |  | $ | 5 |  |  | $ | 178 |  |  | $ | 78,206 |
Interest expense | (13,566 | ) |  | (856 | ) |  | (7,854 | ) |  | (22,437 | ) |  | (44,713 | )
Net interest income (expense) | 56,443 |  |  | 7,158 |  |  | (7,849 | ) |  | (22,259 | ) |  | 33,493 |
Provision for loan losses | (3,000 | ) |  | — |  |  | — |  |  | — |  |  | (3,000 | )
Net interest income (expense) after provision for loan losses | 53,443 |  |  | 7,158 |  |  | (7,849 | ) |  | (22,259 | ) |  | 30,493 |
Operating lease income | — |  |  | — |  |  | 28,137 |  |  | — |  |  | 28,137 |
Sale of loans, net | 4,888 |  |  | — |  |  | — |  |  | — |  |  | 4,888 |
Realized gain (loss) on securities | — |  |  | (1,099 | ) |  | — |  |  | — |  |  | (1,099 | )
Unrealized gain (loss) on Agency interest-only securities | — |  |  | 204 |  |  | — |  |  | — |  |  | 204 |
Realized gain on sale of real estate, net | — |  |  | — |  |  | 31,010 |  |  | — |  |  | 31,010 |
Fee and other income | 3,063 |  |  | — |  |  | 1,782 |  |  | 1,407 |  |  | 6,252 |
Net result from derivative transactions | 6,889 |  |  | 8,070 |  |  | — |  |  | — |  |  | 14,959 |
Earnings (loss) from investment in unconsolidated joint ventures | — |  |  | — |  |  | 52 |  |  | — |  |  | 52 |
Gain (loss) on extinguishment of debt | (69 | ) |  | — |  |  | — |  |  | — |  |  | (69 | )
Total other income (loss) | 14,771 |  |  | 7,175 |  |  | 60,981 |  |  | 1,407 |  |  | 84,334 |
Salaries and employee benefits | — |  |  | — |  |  | — |  |  | (17,096 | ) |  | (17,096 | )
Operating expenses | 86 |  |  | — |  |  | — |  |  | (5,634 | ) | (3) | (5,548 | )
Real estate operating expenses | — |  |  | — |  |  | (8,817 | ) |  | — |  |  | (8,817 | )
Fee expense | (616 | ) |  | (110 | ) |  | (117 | ) |  | — |  |  | (843 | )
Depreciation and amortization | — |  |  | — |  |  | (10,804 | ) |  | (19 | ) |  | (10,823 | )
Total costs and expenses | (530 | ) |  | (110 | ) |  | (19,738 | ) |  | (22,749 | ) |  | (43,127 | )
Income Tax (expense) benefit | — |  |  | — |  |  | — |  |  | (3,902 | ) |  | (3,902 | )
Segment profit (loss) | $ | 67,684 |  |  | $ | 14,223 |  |  | $ | 33,394 |  |  | $ | (47,503 | ) |  | $ | 67,798 |
Total assets as of December 31, 2018 | $ | 3,482,929 |  |  | $ | 1,410,126 |  |  | $ | 1,038,376 |  |  | $ | 341,441 |  |  | $ | 6,272,872 |
(1) | Includes the Company’s investment in unconsolidated joint ventures that held real estate of $93.8 million and $40.4 million as of March 31, 2019 and December 31, 2018, respectively.
(2) | Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to consolidated Company totals. This caption also includes the Company’s investment in unconsolidated joint ventures and strategic investments that are not related to the other reportable segments above, including the Company’s investment in FHLB stock of $61.6 million and $57.9 million as of March 31, 2019 and December 31, 2018, respectively, the Company’s deferred tax asset (liability) of $(0.9) million and $2.3 million as of March 31, 2019 and December 31, 2018, respectively and the Company’s senior unsecured notes of $1.2 billion as of March 31, 2019 and December 31, 2018.
(3) | Includes $2.5 million and $2.9 million of professional fees as of March 31, 2019 and 2018, respectively.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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