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	June 30, 2017			December 31, 2016
Senior mortgages	$	597,335		$	940,738
Corporate/Partnership loans	543,589			490,389
Subordinate mortgages	22,841			24,941
Total gross carrying value of loans	1,163,765			1,456,068
Reserves for loan losses	(78,789		)	(85,545		)
Total loans receivable, net	1,084,976			1,370,523
Other lending investments—securities	85,589			79,916
Total loans receivable and other lending investments, net	$	1,170,565		$	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 June 30,					For the Six Months Ended June 30,
	2017			2016		2017			2016
Reserve for loan losses at beginning of period	$	79,389		$	109,671	$	85,545		$	108,165
(Recovery of) provision for loan losses	(600		)	700		(5,528		)	2,206
Charge-offs	—			—		(1,228		)	—
Reserve for loan losses at end of period	$	78,789		$	110,371	$	78,789		$	110,371

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 June 30, 2017
Loans	$	249,659		$	919,793		$	1,169,452
Less: Reserve for loan losses	(60,989		)	(17,800		)	(78,789		)
Total⁽³⁾	$	188,670		$	901,993		$	1,090,663
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 June 30, 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 $4.5 million and $1.9 million as of June 30, 2017 and December 31, 2016, respectively.

(3)

The Company's recorded investment in loans as of June 30, 2017 and December 31, 2016 includes accrued interest of $5.7 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 June 30, 2017 and December 31, 2016, the total excludes $85.6 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 June 30, 2017			As of December 31, 2016
	Performing Loans		Weighted Average Risk Ratings	Performing Loans		Weighted Average Risk Ratings
Senior mortgages	$	518,362	2.53	$	859,250	3.12
Corporate/Partnership loans	389,550		3.03	335,677		3.09
Subordinate mortgages	11,881		2.55	14,135		3.00
Total	$	919,793	2.74	$	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 June 30, 2017
Senior mortgages	$	524,362	$	—	$	76,282	$	76,282	$	600,644
Corporate/Partnership loans	389,550		—		156,375		156,375		545,925
Subordinate mortgages	22,883		—		—		—		22,883
Total	$	936,795	$	—	$	232,657	$	232,657	$	1,169,452
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 June 30, 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 June 30, 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	$	11,002	$	10,985	$	—		$	10,862	$	10,846	$	—
Subtotal	11,002		10,985		—			10,862		10,846		—
With an allowance recorded:
Senior mortgages	82,282		82,390		(48,518		)	85,933		85,780		(49,774		)
Corporate/Partnership loans	156,375		145,849		(12,471		)	157,146		146,783		(12,471		)
Subtotal	238,657		228,239		(60,989		)	243,079		232,563		(62,245		)
Total:
Senior mortgages	82,282		82,390		(48,518		)	85,933		85,780		(49,774		)
Corporate/Partnership loans	156,375		145,849		(12,471		)	157,146		146,783		(12,471		)
Subordinate mortgages	11,002		10,985		—			10,862		10,846		—
Total	$	249,659	$	239,224	$	(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 June 30,								For the Six Months Ended June 30,
	2017				2016				2017				2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Senior mortgages	$	—	$	—	$	9,150	$	111	$	—	$	—	$	6,100	$	111
Subordinate mortgages	11,023		—		5,785		—		10,970		—		3,857		—
Subtotal	11,023		—		14,935		111		10,970		—		9,957		111
With an allowance recorded:
Senior mortgages	82,368		—		126,978		—		83,556		—		126,903		—
Corporate/Partnership loans	156,839		—		5,224		—		156,941		—		5,396		—
Subtotal	239,207		—		132,202		—		240,497		—		132,299		—
Total:
Senior mortgages	82,368		—		136,128		111		83,556		—		133,003		111
Corporate/Partnership loans	156,839		—		5,224		—		156,941		—		5,396		—
Subordinate mortgages	11,023		—		5,785		—		10,970		—		3,857		—
Total	$	250,230	$	—	$	147,137	$	111	$	251,467	$	—	$	142,256	$	111

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 June 30, 2017
Available-for-Sale Securities
Municipal debt securities	$	21,230	$	21,230	$	992	$	22,222	$	22,222
Held-to-Maturity Securities
Debt securities	63,418		63,367		1,544		64,911		63,367
Total	$	84,648	$	84,597	$	2,536	$	87,133	$	85,589
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