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Loans Receivable | 12 Months Ended
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Dec. 31, 2018
Receivables [Abstract] |
Loans Receivable | Loans Receivable As discussed in Note 4, upon closing of the Combination on January 31, 2018, the Company contributed its interests in the CLNY Investment Entities to Colony Credit and deconsolidated these entities, including $1.29 billion of loans receivable. The following table provides a summary of the Company’s loans held for investment, including purchased credit-impaired ("PCI") loans:
|  | December 31, 2018 |  | December 31, 2017
($ in thousands) |  | Unpaid Principal Balance |  | Carrying Value |  | Weighted Average Coupon |  | Weighted Average Maturity in Years |  | Unpaid Principal Balance |  | Carrying Value |  | Weighted Average Coupon |  | Weighted Average Maturity in Years
Loans at amortized cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-PCI Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed rate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage loans |  | $ | 643,973 |  |  | $ | 667,590 |  |  | 10.7 | % |  | 2.2 |  | $ | 1,081,030 |  |  | $ | 1,082,513 |  |  | 9.1 | % |  | 2.8
Securitized loans (1) |  | — |  |  | — |  |  | — | % |  | N/A |  | 35,566 |  |  | 36,603 |  |  | 5.9 | % |  | 16.8
Mezzanine loans |  | 357,590 |  |  | 354,326 |  |  | 12.5 | % |  | 1.5 |  | 459,433 |  |  | 456,463 |  |  | 12.2 | % |  | 2.3
Corporate loans |  | 108,944 |  |  | 107,796 |  |  | 12.3 | % |  | 5.8 |  | 46,840 |  |  | 46,592 |  |  | 9.9 | % |  | 10.0
|  | 1,110,507 |  |  | 1,129,712 |  |  |  |  |  |  | 1,622,869 |  |  | 1,622,171 |  |  |  |  |
Variable rate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage loans |  | 178,650 |  |  | 179,711 |  |  | 4.3 | % |  | 0.1 |  | 414,428 |  |  | 423,199 |  |  | 6.0 | % |  | 1.7
Securitized loans (1) |  | — |  |  | — |  |  | — | % |  | N/A |  | 461,489 |  |  | 462,203 |  |  | 6.4 | % |  | 3.5
Mezzanine loans |  | 27,772 |  |  | 27,417 |  |  | 13.4 | % |  | 2.5 |  | 34,391 |  |  | 34,279 |  |  | 9.8 | % |  | 1.3
|  | 206,422 |  |  | 207,128 |  |  |  |  |  |  | 910,308 |  |  | 919,681 |  |  |  |  |
|  | 1,316,929 |  |  | 1,336,840 |  |  |  |  |  |  | 2,533,177 |  |  | 2,541,852 |  |  |  |  |
PCI Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage loans |  | 1,324,287 |  |  | 351,646 |  |  |  |  |  |  | 1,865,423 |  |  | 682,125 |  |  |  |  |
Securitized loans |  | — |  |  |  |  |  |  |  |  |  | 23,298 |  |  | 3,400 |  |  |  |  |
Mezzanine loans |  | 7,425 |  |  | 3,671 |  |  |  |  |  |  | 7,425 |  |  | 3,671 |  |  |  |  |
|  | 1,331,712 |  |  | 355,317 |  |  |  |  |  |  | 1,896,146 |  |  | 689,196 |  |  |  |  |
Allowance for loan losses |  |  |  |  | (32,940 | ) |  |  |  |  |  |  |  |  | (52,709 | ) |  |  |  |
|  | 2,648,641 |  |  | 1,659,217 |  |  |  |  |  |  | 4,429,323 |  |  | 3,178,339 |  |  |  |  |
Loans at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securitized loans (2) |  | — |  |  | — |  |  |  |  |  |  | 72,511 |  |  | 45,423 |  |  |  |  |
Total loans receivable |  | $ | 2,648,641 |  |  | $ | 1,659,217 |  |  |  |  |  |  | $ | 4,501,834 |  |  | $ | 3,223,762 |  |  |  |  |
__________
(1) | Represents loans held in securitization trusts consolidated by the Company (Note 15). The Company contributed its interests in three securitization trusts to Colony Credit in January 2018 and sold its interests in a remaining securitization trust to a third party in June 2018, resulting in the deconsolidation of these securitization trusts along with their underlying mortgage loans and bonds payable.
(2) | Represents loans held by a securitization trust that was consolidated by a N-Star CDO. The N-Star CDO was in turn consolidated by the Company at December 31, 2017. The Company had elected the fair value option and adopted the measurement alternative to value the loans receivable at the same fair value as the bonds payable issued by the consolidated securitization trust (Note 14). In May 2018, the Company sold its interests in the N-Star CDO and deconsolidated the N-Star CDO (Note 8) along with the securitization trust consolidated by the N-Star CDO.
Nonaccrual and Past Due Loans Non-PCI loans, excluding loans carried at fair value, that are 90 days or more past due as to principal or interest, or where reasonable doubt exists as to timely collection, are generally considered nonperforming and placed on nonaccrual status. The following table provides an aging summary of non-PCI loans held for investment at carrying values before allowance for loan losses, excluding loans carried at fair value:
(In thousands) | Current or Less Than 30 Days Past Due |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90 Days or More Past Due and Nonaccrual |  | Total Non-PCI Loans
December 31, 2018 | $ | 1,052,303 |  |  | $ | — |  |  | $ | 44,392 |  |  | $ | 240,145 |  |  | $ | 1,336,840 |
December 31, 2017 | 2,268,599 |  |  | 145,986 |  |  | 9,410 |  |  | 117,857 |  |  | 2,541,852 |
Troubled Debt Restructuring During the year ended December 31, 2016, there was one loan with a carrying value of $37.6 million before allowance for loan loss that was modified as a TDR, in which the Company provided the borrower, who was experiencing financial difficulties, with concessions in interest rate and payment terms. During the years ended December 31, 2018, 2017 and 2016, there were no loans modified as TDRs. At December 31, 2018 and 2017, carrying value of existing TDR loans before allowance for loan losses was $37.8 million and $66.4 million, respectively. At December 31, 2018, the one outstanding TDR loan was in maturity default, for which the Company recorded an allowance for loan loss. The Company has no additional lending commitment on this TDR loan. Non-PCI Impaired Loans Non-PCI loans, excluding loans carried at fair value, are identified as impaired when it is no longer probable that interest or principal will be collected according to the contractual terms of the original loan agreement. Non-PCI impaired loans include predominantly loans under nonaccrual, performing and nonperforming TDRs, as well as loans in maturity default. The following table summarizes non-PCI impaired loans:
|  | Unpaid Principal Balance |  | Gross Carrying Value |  | Allowance for Loan Losses
(In thousands) |  |  | With Allowance for Loan Losses |  | Without Allowance for Loan Losses |  | Total |
December 31, 2018 |  | $ | 280,337 |  |  | $ | 75,179 |  |  | $ | 206,628 |  |  | $ | 281,807 |  |  | $ | 18,304 |
December 31, 2017 |  | 383,594 |  |  | 138,136 |  |  | 248,759 |  |  | 386,895 |  |  | 7,424 |
The average carrying value and interest income recognized on non-PCI impaired loans were as follows.
|  | Year Ended December 31,
(In thousands) |  | 2018 |  | 2017 |  | 2016
Average carrying value before allowance for loan losses |  | $ | 282,325 |  |  | $ | 202,397 |  |  | $ | 90,447 |
Total interest income recognized during the period impaired |  | 7,127 |  |  | 10,192 |  |  | 3,929 |
Cash basis interest income recognized |  | 1,190 |  |  | — |  |  | — |
Purchased Credit-Impaired Loans PCI loans are acquired loans with evidence of credit quality deterioration for which it is probable at acquisition that the Company will collect less than the contractually required payments. PCI loans are recorded at the initial investment in the loans 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 as of acquisition date, over the estimated fair value represents the accretable yield and is recognized in interest income over the remaining life of the loan. The difference between contractually required payments as of the acquisition date and the cash flows expected to be collected, which represents the nonaccretable difference, is not recognized as an adjustment of yield, loss accrual or valuation allowance. There were no PCI loans acquired in the year ended December 31, 2018: In January 2017, the Company acquired additional PCI loans through the Merger as well as part of a loan portfolio secured by commercial properties in Ireland. Information about these PCI loans at the time of their acquisition is presented below:
(In thousands) |  | January 2017
Contractually required payments including interest |  | $ | 1,154,596 |
Less: Nonaccretable difference |  | (878,257 | )
Cash flows expected to be collected |  | 276,339 |
Less: Accretable yield |  | (23,594 | )
Fair value of loans acquired |  | $ | 252,745 |
Changes in accretable yield of PCI loans were as follows:
|  | Year Ended December 31,
(In thousands) |  | 2018 |  | 2017 |  | 2016
Beginning accretable yield |  | $ | 42,435 |  |  | $ | 52,572 |  |  | $ | 66,639 |
Additions |  | — |  |  | 23,594 |  |  | 22,493 |
Dispositions |  | (5,484 | ) |  | — |  |  | — |
Changes in accretable yield |  | 1,882 |  |  | 25,720 |  |  | 31,171 |
Accretion recognized in earnings |  | (27,911 | ) |  | (61,809 | ) |  | (65,911 | )
Deconsolidation |  | (991 | ) |  | — |  |  | — |
Effect of changes in foreign exchange rates |  | (311 | ) |  | 2,358 |  |  | (1,820 | )
Ending accretable yield |  | $ | 9,620 |  |  | $ | 42,435 |  |  | $ | 52,572 |
The Company applied either the cash basis or cost recovery method for recognition of interest income on PCI loans with carrying value before allowance for loan losses of $175.6 million at December 31, 2018 and $196.5 million at December 31, 2017, as the Company did not have reasonable expectations of the timing and amount of future cash receipts on these loans. Allowance for Loan Losses The allowance for loan losses and related carrying values of loans held for investment, excluding loans carried at fair value, were as follows:
|  | December 31, 2018 |  | December 31, 2017
(In thousands) |  | Allowance for Loan Losses |  | Carrying Value |  | Allowance for Loan Losses |  | Carrying Value
Non-PCI loans |  | $ | 18,304 |  |  | $ | 75,179 |  |  | $ | 7,424 |  |  | $ | 138,136 |
PCI loans |  | 14,636 |  |  | 54,440 |  |  | 45,285 |  |  | 169,789 |
|  | $ | 32,940 |  |  | $ | 129,619 |  |  | $ | 52,709 |  |  | $ | 307,925 |
Changes in allowance for loan losses is presented below:
|  | Year Ended December 31,
(In thousands) |  | 2018 |  | 2017 |  | 2016
Allowance for loan losses at January 1 |  | $ | 52,709 |  |  | $ | 67,980 |  |  | $ | 37,571 |
Contribution to Colony Credit (Note 4) |  | (518 | ) |  | — |  |  | — |
Deconsolidation |  | (5,983 | ) |  | — |  |  | — |
Provision for loan losses, net |  | 43,034 |  |  | 19,741 |  |  | 34,864 |
Charge-off |  | (56,302 | ) |  | (35,012 | ) |  | (4,455 | )
Allowance for loan losses at December 31 |  | $ | 32,940 |  |  | $ | 52,709 |  |  | $ | 67,980 |
Provision for loan losses by loan type is as follows:
|  | Year Ended December 31,
(In thousands) |  | 2018 |  | 2017 |  | 2016
Non-PCI loans |  | $ | 22,557 |  |  | $ | 7,534 |  |  | $ | 5,815 |
PCI loans (1) |  | 20,477 |  |  | 12,207 |  |  | 29,190 |
Total provision for loan losses, net |  | $ | 43,034 |  |  | $ | 19,741 |  |  | $ | 35,005 |
__________
(1) | Net of recoveries in provision for loan losses on PCI loans of $4.1 million and $6.3 million for the year ended December 31, 2018 and 2017, respectively. There were no recoveries in provision for loan losses on PCI loans for the year ended December 31, 2016.
Lending Commitments The Company has lending commitments to borrowers pursuant to certain loan agreements in which the borrower may submit a request for funding contingent on achieving certain criteria, which must be approved by the Company as lender, such as leasing, performance of capital expenditures and construction in progress with an approved budget. At December 31, 2018, total unfunded lending commitments was $180.9 million, of which the Company's share was $77.8 million, net of amounts attributable to noncontrolling interests.

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=84173941&loc=d3e5074-111524 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(4)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-03(a)(5)) -URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=84173941&loc=d3e5162-111524 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=84173941&loc=d3e5066-111524 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(3)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03(7)) -URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.6-04(6)) -URI http://asc.fasb.org/extlink&oid=6488278&loc=d3e603758-122996 + Details
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