Loans Receivable and Other Lending Investments, net

The following is a summary of the Company's loans receivable and other lending investments by class ($ in thousands):



	As of
Type of Investment	March 31, 2017			December 31, 2016
Senior mortgages	$	834,795		$	940,738
Corporate/Partnership loans	519,198			490,389
Subordinate mortgages	25,242			24,941
Total gross carrying value of loans	1,379,235			1,456,068
Reserves for loan losses	(79,389		)	(85,545		)
Total loans receivable, net	1,299,846			1,370,523
Other lending investments—securities	81,381			79,916
Total loans receivable and other lending investments, net	$	1,381,227		$	1,450,439

Reserve for Loan Losses—Changes in the Company's reserve for loan losses were as follows ($ in thousands):



	For the Three Months Ended March 31,
	2017			2016
Reserve for loan losses at beginning of period	$	85,545		$	108,165
(Recovery of) provision for loan losses	(4,928		)	1,506
Charge-offs	(1,228		)	—
Reserve for loan losses at end of period	$	79,389		$	109,671

The Company's recorded investment in loans (comprised of a loan's carrying value plus accrued interest) and the associated reserve for loan losses were as follows ($ in thousands):



	Individually Evaluated for Impairment⁽¹⁾			Collectively Evaluated for Impairment⁽²⁾			Total
As of March 31, 2017
Loans	$	250,801		$	1,135,134		$	1,385,935
Less: Reserve for loan losses	(60,989		)	(18,400		)	(79,389		)
Total⁽³⁾	$	189,812		$	1,116,734		$	1,306,546
As of December 31, 2016
Loans	$	253,941		$	1,209,062		$	1,463,003
Less: Reserve for loan losses	(62,245		)	(23,300		)	(85,545		)
Total⁽³⁾	$	191,696		$	1,185,762		$	1,377,458

_______________________________________________________________________________

(1)

The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs totaling net discounts of $0.7 million and $0.4 million as of March 31, 2017 and December 31, 2016, respectively. The Company's loans individually evaluated for impairment primarily represent loans on non-accrual status and therefore, the unamortized amounts associated with these loans are not currently being amortized into income.


(2)	The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs totaling net premiums of $2.9 million and $1.9 million as of March 31, 2017 and December 31, 2016, respectively.

(3)

The Company's recorded investment in loans as of March 31, 2017 and December 31, 2016 includes accrued interest of $6.7 million and $6.9 million, respectively, which are included in "Accrued interest and operating lease income receivable, net" on the Company's consolidated balance sheets. As of March 31, 2017 and December 31, 2016, excludes $81.4 million and $79.9 million, respectively, of securities that are evaluated for impairment under ASC 320.

Credit Characteristics—As part of the Company's process for monitoring the credit quality of its loans, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its performing loans. Risk ratings, which range from 1 (lower risk) to 5 (higher risk), are based on judgments which are inherently uncertain and there can be no assurance that actual performance will be similar to current expectation. The Company designates loans as non-performing at such time as: (1) the loan becomes 90 days delinquent; (2) the loan has a maturity default; or (3) management determines it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan. All non-performing loans are placed on non-accrual status and income is only recognized in certain cases upon actual cash receipt.

The Company's recorded investment in performing loans, presented by class and by credit quality, as indicated by risk rating, was as follows ($ in thousands):



	As of March 31, 2017			As of December 31, 2016
	Performing Loans		Weighted Average Risk Ratings	Performing Loans		Weighted Average Risk Ratings
Senior mortgages	$	756,720	2.31	$	859,250	3.12
Corporate/Partnership loans	364,159		3.06	335,677		3.09
Subordinate mortgages	14,255		2.46	14,135		3.00
Total	$	1,135,134	2.55	$	1,209,062	3.11

The Company's recorded investment in loans, aged by payment status and presented by class, were as follows ($ in thousands):



	Current		Less Than and Equal to 90 Days		Greater Than 90 Days⁽¹⁾		Total Past Due		Total
As of March 31, 2017
Senior mortgages	$	762,720	$	—	$	76,454	$	76,454	$	839,174
Corporate/Partnership loans	364,159		—		157,303		157,303		521,462
Subordinate mortgages	25,299		—		—		—		25,299
Total	$	1,152,178	$	—	$	233,757	$	233,757	$	1,385,935
As of December 31, 2016
Senior mortgages	$	868,505	$	—	$	76,677	$	76,677	$	945,182
Corporate/Partnership loans	335,677		—		157,146		157,146		492,823
Subordinate mortgages	24,998		—		—		—		24,998
Total	$	1,229,180	$	—	$	233,823	$	233,823	$	1,463,003

_______________________________________________________________________________

(1)

As of March 31, 2017, the Company had four loans which were greater than 90 days delinquent and were in various stages of resolution, including legal proceedings, environmental concerns and foreclosure-related proceedings, and ranged from 1.0 to 8.0 years outstanding. As of December 31, 2016, the Company had four loans which were greater than 90 days delinquent and were in various stages of resolution, including legal proceedings, environmental concerns and foreclosure-related proceedings, and ranged from 1.0 to 8.0 years outstanding.

Impaired Loans—The Company's recorded investment in impaired loans, presented by class, were as follows ($ in thousands)⁽¹⁾:



	As of March 31, 2017							As of December 31, 2016
	Recorded Investment		Unpaid Principal Balance		Related Allowance			Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Subordinate mortgages	$	11,044	$	11,027	$	—		$	10,862	$	10,846	$	—
Subtotal	11,044		11,027		—			10,862		10,846		—
With an allowance recorded:
Senior mortgages	82,454		82,571		(48,518		)	85,933		85,780		(49,774		)
Corporate/Partnership loans	157,303		146,783		(12,471		)	157,146		146,783		(12,471		)
Subtotal	239,757		229,354		(60,989		)	243,079		232,563		(62,245		)
Total:
Senior mortgages	82,454		82,571		(48,518		)	85,933		85,780		(49,774		)
Corporate/Partnership loans	157,303		146,783		(12,471		)	157,146		146,783		(12,471		)
Subordinate mortgages	11,044		11,027		—			10,862		10,846		—
Total	$	250,801	$	240,381	$	(60,989	)	$	253,941	$	243,409	$	(62,245	)

____________________________________________________________


(1)	All of the Company's non-accrual loans are considered impaired and included in the table above.

The Company's average recorded investment in impaired loans and interest income recognized, presented by class, were as follows ($ in thousands):



	For the Three Months Ended March 31,
	2017				2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Senior mortgages	$	—	$	—	$	4,542	$	—
Subordinate mortgages	10,953		—		—		—
Subtotal	10,953		—		4,542		—
With an allowance recorded:
Senior mortgages	84,194		—		126,843		—
Corporate/Partnership loans	157,224		—		5,571		—
Subtotal	241,418		—		132,414		—
Total:
Senior mortgages	84,194		—		131,385		—
Corporate/Partnership loans	157,224		—		5,571		—
Subordinate mortgages	10,953		—		—		—
Total	$	252,371	$	—	$	136,956	$	—

Securities—Other lending investments—securities includes the following ($ in thousands):



	Face Value		Amortized Cost Basis		Net Unrealized Gain (Loss)		Estimated Fair Value		Net Carrying Value
As of March 31, 2017
Available-for-Sale Securities
Municipal debt securities	$	21,230	$	21,230	$	409	$	21,639	$	21,639
Held-to-Maturity Securities
Debt securities	59,867		59,742		2,321		62,063		59,742
Total	$	81,097	$	80,972	$	2,730	$	83,702	$	81,381
As of December 31, 2016
Available-for-Sale Securities
Municipal debt securities	$	21,240	$	21,240	$	426	$	21,666	$	21,666
Held-to-Maturity Securities
Debt securities	58,454		58,250		2,753		61,003		58,250
Total	$	79,694	$	79,490	$	3,179	$	82,669	$	79,916