Loans and Investments (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of composition of company's structured business loan and investment portfolio

The composition of our Structured Business loan and investment portfolio is as follows ($ in thousands):


									Wtd. Avg.		Wtd. Avg.
								Wtd. Avg.	First		Last
								Remaining	Dollar		Dollar
	December 31,		Percent of		Loan	Wtd. Avg.		Months to	LTV		LTV
	2019		Total		Count	Pay Rate (1)		Maturity	Ratio (2)		Ratio (3)
Bridge loans (4)	$	3,836,832	90	%	217	5.77	%	18.0	0	%	75	%
Mezzanine loans		191,575	4	%	24	9.70	%	36.7	22	%	73	%
Preferred equity investments		181,058	4	%	10	7.62	%	68.8	69	%	89	%
Other (5)		70,146	2	%	21	2.88	%	84.8	0	%	70	%
		4,279,611	100	%	272	5.98	%	22.1	4	%	76	%
Allowance for loan losses		(71,069)
Unearned revenue		(18,582)
Loans and investments, net	$	4,189,960


									Wtd. Avg.		Wtd. Avg.
								Wtd. Avg.	First		Last
								Remaining	Dollar		Dollar
	December 31,		Percent of		Loan	Wtd. Avg.		Months to	LTV		LTV
	2018		Total		Count	Pay Rate (1)		Maturity	Ratio (2)		Ratio (3)
Bridge loans	$	2,992,814	91	%	167	6.84	%	18.5	0	%	74	%
Mezzanine loans		108,867	3	%	13	10.57	%	22.1	28	%	72	%
Preferred equity investments		181,661	6	%	10	7.97	%	78.0	66	%	89	%
		3,283,342	100	%	190	7.02	%	22.0	5	%	75	%
Allowance for loan losses		(71,069)
Unearned revenue		(12,128)
Loans and investments, net	$	3,200,145

(1)“Weighted Average Pay Rate” is a weighted average, based on the UPB of each loan in our portfolio, of the interest rate 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 maturity are not included in the weighted average pay rate as shown in the table.

(2)The “First Dollar Loan-to-Value ("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.

(4)Included within bridge loans are 11 single-family rental loans with an aggregate UPB of $66.7 million, of which $30.0 million was funded.

(5)Included within other are 12 single-family rental permanent loans with an aggregate UPB of $41.6 million and 9 purchased loans with an aggregate UPB of $28.6 million .

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

A summary of the loan portfolio’s weighted average internal risk ratings and LTV ratios by asset class is as follows ($ in thousands):


	December 31, 2019
					Wtd. Avg.	Wtd. Avg.		Wtd. Avg.
			Percentage		Internal	First Dollar		Last Dollar
Asset Class	UPB		of Portfolio		Risk Rating	LTV Ratio		LTV Ratio
Multifamily	$	3,429,278	80	%	pass/watch	4	%	76	%
Land		221,489	5	%	special mention	0	%	87	%
Healthcare		203,694	5	%	pass/watch	0	%	76	%
Hotel		142,300	3	%	pass/watch	10	%	60	%
Office		134,007	3	%	special mention	3	%	67	%
Single-Family Rental		71,592	2	%	pass	0	%	71	%
Retail		49,258	1	%	special mention	6	%	62	%
Self Storage		26,293	1	%	pass/watch	24	%	53	%
Other		1,700	<1	%	doubtful	63	%	63	%
Total	$	4,279,611	100	%	pass/watch	4	%	76	%


	December 31, 2018
Multifamily	$	2,427,920	74	%	pass/watch	5	%	75	%
Land		151,628	5	%	substandard	0	%	90	%
Healthcare		122,775	4	%	pass/watch	0	%	77	%
Hotel		100,075	3	%	pass/watch	13	%	66	%
Office		132,047	4	%	special mention	3	%	68	%
Retail		45,367	1	%	pass/watch	6	%	65	%
Self Storage		301,830	9	%	pass/watch	0	%	72	%
Other		1,700	<1	%	doubtful	63	%	63	%
Total	$	3,283,342	100	%	pass/watch	5	%	75	%

Summary of the changes in the allowance for loan losses

A summary of the changes in the allowance for loan losses is as follows (in thousands):


	Year Ended December 31,
	2019		2018		2017
Allowance at beginning of period	$	71,069	$	62,783	$	83,712
Provision for loan losses		—		13,986		2,000
Charge-offs		—		(3,173)		(20,473)
Recoveries of reserves		—		(2,527)		(2,456)
Allowance at end of period	$	71,069	$	71,069	$	62,783

Summary of the company's impaired loans by asset class

A summary of our impaired loans by asset class is as follows (in thousands):


							Year Ended December 31,
	December 31, 2019						2019
							Average		Interest
			Carrying		Allowance for		Recorded		Income
Asset Class	UPB		Value (1)		Loan Losses		Investment (2)		Recognized
Land	$	134,215	$	126,800	$	67,869	$	134,215	$	107
Office		2,226		2,226		1,500		2,246		132
Commercial		1,700		1,700		1,700		1,700		—
Total	$	138,141	$	130,726	$	71,069	$	138,161	$	239


							Year Ended December 31,
	December 31, 2018						2018
Land	$	134,215	$	127,869	$	67,869	$	132,651	$	103
Hotel		—		—		—		17,375		—
Office		2,266		2,266		1,500		2,277		127
Commercial		1,700		1,700		1,700		1,700		—
Total	$	138,181	$	131,835	$	71,069	$	154,003	$	230

(1)

Represents the UPB of five impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at both December 31, 2019 and 2018.

(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

A summary of our non-performing loans by asset class is as follows (in thousands):


	December 31, 2019						December 31, 2018
			Less Than		Greater Than				Less Than		Greater Than
	Carrying		90 Days		90 Days		Carrying		90 Days		90 Days
Asset Class	Value		Past Due		Past Due		Value		Past Due		Past Due
Commercial	$	1,700	$	—	$	1,700	$	1,700	$	—	$	1,700
Retail		990		—		990		—		—		—
Office		833		—		833		832		—		832
Total	$	3,523	$	—	$	3,523	$	2,532	$	—	$	2,532