Loans and Investments (Tables)

6 Months Ended

Jun. 30, 2015

Schedule of composition of loan and investment portfolio

	June 30, 2015			Percent of Total		Loan Count	Wtd. Avg. Pay Rate (1)		Wtd. Avg. Remaining Months to Maturity	Wtd. Avg. First Dollar LTV Ratio (2)		Wtd. Avg. Last Dollar LTV Ratio (3)

Bridge loans	$	1,346,226,583		84	%	111	5.51	%	17.7	0	%	75	%
Mezzanine loans	61,952,792			4	%	14	9.44	%	44.8	47	%	82	%
Junior participation loans	94,256,582			6	%	3	4.05	%	8.1	92	%	90	%
Preferred equity investments	93,270,827			6	%	18	6.86	%	39.3	49	%	80	%

	1,595,706,784			100	%	146	5.65	%	19.4	10	%	76	%


Unearned revenue	(9,577,179		)
Allowance for loan losses	(117,563,544		)

Loans and investments, net	$	1,468,566,061

	December 31, 2014			Percent of Total		Loan Count	Wtd. Avg. Pay Rate (1)		Wtd. Avg. Remaining Months to Maturity	Wtd. Avg. First Dollar LTV Ratio (2)		Wtd. Avg. Last Dollar LTV Ratio (3)

Bridge loans	$	1,273,439,238		80	%	101	5.19	%	19.8	0	%	74	%
Mezzanine loans	76,392,650			5	%	17	9.78	%	37.1	47	%	81	%
Junior participation loans	104,091,952			7	%	4	4.62	%	12.3	86	%	88	%
Preferred equity investments	133,505,658			8	%	17	6.11	%	45.5	62	%	84	%

	1,587,429,498			100	%	139	5.45	%	22.3	13	%	76	%


Unearned revenue	(12,466,528		)
Allowance for loan losses	(115,487,320		)

Loans and investments, net	$	1,459,475,650

(1)

“Weighted Average Pay Rate” is a weighted average, based on the unpaid principal balances of each loan in our portfolio, of the interest rate that is required to be paid monthly as stated in the individual loan agreements. Certain loans and investments that require an additional rate of interest “Accrual Rate” to be paid at the maturity are not included in the weighted average pay rate as shown in the table.

(2)

The “First Dollar LTV Ratio” is calculated by comparing the total of our senior most dollar and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will absorb a total loss of our position.

(3)

The “Last Dollar LTV Ratio” is calculated by comparing the total of the carrying value of our loan and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will initially absorb a loss.

Summary of the loan portfolio's weighted average internal risk ratings and LTV ratios by asset class

	June 30, 2015
Asset Class	Unpaid Principal Balance		Percentage of Portfolio		Wtd. Avg. Internal Risk Rating	Wtd. Avg. First Dollar LTV Ratio		Wtd. Avg. Last Dollar LTV Ratio

Multi-family	$	1,093,772,546	68.5	%	2.9	7	%	74	%
Office	207,730,937		13.0	%	3.3	27	%	82	%
Land	188,844,968		11.8	%	3.6	4	%	85	%
Hotel	66,250,000		4.2	%	3.5	32	%	83	%
Other	39,108,333		2.5	%	2.6	9	%	66	%

Total	$	1,595,706,784	100.0	%	3.1	10	%	76	%

	December 31, 2014
Asset Class	Unpaid Principal Balance		Percentage of Portfolio		Wtd. Avg. Internal Risk Rating	Wtd. Avg. First Dollar LTV Ratio		Wtd. Avg. Last Dollar LTV Ratio

Multi-family	$	1,157,462,400	72.9	%	2.9	10	%	73	%
Office	230,491,164		14.5	%	3.3	29	%	79	%
Land	128,367,601		8.1	%	3.9	6	%	88	%
Hotel	66,250,000		4.2	%	3.5	32	%	83	%
Other	4,858,333		0.3	%	2.9	69	%	75	%

Total	$	1,587,429,498	100.0	%	3.1	13	%	76	%

Summary of the changes in the allowance for loan losses

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014

Allowance at beginning of the period	$	116,470,000		$	116,743,412		$	115,487,320		$	122,277,411
Provision for loan losses	1,110,629			3,950,000			2,110,629			4,950,000
Charge-offs	—			(832,737		)	—			(6,501,079		)
Recoveries of reserves	(17,085		)	(4,800,687		)	(34,405		)	(5,666,344		)

Allowance at end of the period	$	117,563,544		$	115,059,988		$	117,563,544		$	115,059,988

Summary of charge-offs and recoveries

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014

Charge-offs:
Multi-family	$	—		$	(832,737	)	$	—		$	(6,501,079	)

Total	$	—		$	(832,737	)	$	—		$	(6,501,079	)


Recoveries:
Multi-family	$	(17,085	)	$	(4,800,687	)	$	(34,405	)	$	(5,666,344	)

Total	$	(17,085	)	$	(4,800,687	)	$	(34,405	)	$	(5,666,344	)


Net Recoveries (Charge-offs)	$	17,085		$	3,967,950		$	34,405		$	(834,735	)


Ratio of net recoveries (charge-offs) during the period to average loans and investments outstanding during the period	0.0		%	0.2		%	0.0		%	(0.1		)%

Summary of the company's impaired loans by asset class

	June 30, 2015						Three Months Ended June 30, 2015				Six Months Ended June 30, 2015
Asset Class	Unpaid Principal Balance		Carrying Value (1)		Allowance for Loan Losses		Average Recorded Investment (2)		Interest Income Recognized		Average Recorded Investment (2)		Interest Income Recognized
Multi-family	$	39,205,489	$	39,285,454	$	36,935,489	$	39,214,032	$	73,892	$	39,222,692	$	143,981
Office	36,086,582		31,013,198		24,472,444		36,086,582		282,192		36,086,582		557,045
Land	124,056,631		119,598,388		52,455,611		123,196,757		—		122,933,516		—
Hotel	34,750,000		34,488,888		3,700,000		34,750,000		260,898		34,750,000		518,028

Total	$	234,098,702	$	224,385,928	$	117,563,544	$	233,247,371	$	616,982	$	232,992,790	$	1,219,054

	December 31, 2014						Three Months Ended June 30, 2014				Six Months Ended June 30, 2014
Asset Class	Unpaid Principal Balance		Carrying Value (1)		Allowance for Loan Losses		Average Recorded Investment (2)		Interest Income Recognized		Average Recorded Investment (2)		Interest Income Recognized
Multi-family	$	39,239,894	$	39,232,710	$	36,469,894	$	54,400,857	$	218,529	$	57,667,857	$	432,270
Office	36,086,582		30,498,273		23,972,444		40,586,582		511,501		40,586,582		786,296
Land	121,810,400		117,621,457		51,344,982		117,409,169		—		117,230,555		—
Hotel	34,750,000		34,249,959		3,700,000		17,500,000		171,374		17,500,000		171,374

Total	$	231,886,876	$	221,602,399	$	115,487,320	$	229,896,608	$	901,404	$	232,984,994	$	1,389,940

(1)

Represents the UPB of impaired loans less unearned revenue and other holdbacks and adjustments by asset class and was comprised of 10 loans at both June 30, 2015 and December 31, 2014.

(2)

Represents an average of the beginning and ending UPB of each asset class.

Summary of the company's non-performing loans by asset class

	June 30, 2015						December 31, 2014
Asset Class	Carrying Value		Less Than 90 Days Past Due		Greater Than 90 Days Past Due		Carrying Value		Less Than 90 Days Past Due		Greater Than 90 Days Past Due

Multi-family	$	32,765,799	$	—	$	32,765,799	$	32,765,799	$	765,799	$	32,000,000
Office	8,277,720		—		8,277,720		8,277,757		—		8,277,757

Total	$	41,043,519	$	—	$	41,043,519	$	41,043,556	$	765,799	$	40,277,757

Summary of loan modifications and extensions by asset class that the entity considered to be troubled debt restructurings by asset class

	Three Months Ended June 30, 2015									Six Months Ended June 30, 2015
Asset Class	Number of Loans	Original Unpaid Principal Balance		Original Rate of Interest		Modified Unpaid Principal Balance		Modified Weighted Average Rate of Interest		Number of Loans	Original Unpaid Principal Balance		Original Weighted Average Rate of Interest		Modified Unpaid Principal Balance		Modified Weighted Average Rate of Interest

Multifamily	4	$	29,416,456	4.95	%	$	29,416,456	4.95	%	5	$	35,609,122	5.12	%	$	35,609,122	5.12	%