XML 43 R35.htm IDEA: XBRL DOCUMENT

Loans Receivable and Other Lending Investments, net (Tables)

3 Months Ended

Mar. 31, 2022

Schedule of the company's loans and other lending investments by class

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


	As of
	March 31, 2022		December 31, 2021
Construction loans
Senior mortgages	$	186,094	$	184,643
Corporate/Partnership loans		—		618
Subtotal - gross carrying value of construction loans⁽¹⁾		186,094		185,261
Loans
Senior mortgages		14,724		14,965
Subordinate mortgages		12,670		12,457
Subtotal - gross carrying value of loans		27,394		27,422
Other lending investments
Held-to-maturity debt securities		98,419		96,838
Available-for-sale debt securities		24,864		28,092
Subtotal - other lending investments		123,283		124,930
Total gross carrying value of loans receivable and other lending investments		336,771		337,613
Allowance for loan losses		(4,932)		(4,769)
Total loans receivable and other lending investments, net	$	331,839	$	332,844

(1)	As of March 31, 2022, 100% of gross carrying value of construction loans had completed construction.

Schedule of changes in the company's allowance for loan losses


	General Allowance
					Held to
	Construction				Maturity Debt		Specific
Three Months Ended March 31, 2022	Loans		Loans		Securities		Allowance		Total
Allowance for loan losses at beginning of period	$	1,213	$	676	$	2,304	$	576	$	4,769
Provision for (recovery of) loan losses⁽¹⁾		39		(2)		111		15		163
Allowance for loan losses at end of period	$	1,252	$	674	$	2,415	$	591	$	4,932

Three Months Ended March 31, 2021
Allowance for loan losses at beginning of period	$	6,541	$	1,643	$	3,093	$	743	$	12,020
(Recovery of) provision for loan losses⁽¹⁾		(3,648)		172		(408)		(76)		(3,960)
Allowance for loan losses at end of period	$	2,893	$	1,815	$	2,685	$	667	$	8,060

(1)

During the three months ended March 31, 2022 and 2021, the Company recorded a provision for (recovery of) loan losses of $0.1 million and ($3.6) million, respectively, in its consolidated statements of operations. The provision in 2022 was due primarily to accretion on the Company’s held-to-maturity debt security. The recovery in 2021 was due primarily to the repayment of loans during the three months ended March 31, 2021 and an improving macroeconomic forecast on commercial real estate markets since December 31, 2020. Of this amount, $0.3 million related to a provision for loan losses for unfunded loan commitments and is recorded as a reduction to "Accounts payable, accrued expenses and other liabilities.”

Schedule of recorded investment in loans and associated allowance for loan losses

The Company’s investment in loans and other lending investments and the associated allowance for loan losses were as follows as of March 31, 2022 and December 31, 2021 ($ in thousands):


	Individually		Collectively
	Evaluated for		Evaluated for
	Impairment⁽¹⁾		Impairment		Total
As of March 31, 2022
Construction loans⁽²⁾	$	59,642	$	126,452	$	186,094
Loans⁽²⁾		—		27,394		27,394
Held-to-maturity debt securities		—		98,419		98,419
Available-for-sale debt securities⁽³⁾		—		24,864		24,864
Less: Allowance for loan losses		(591)		(4,341)		(4,932)
Total	$	59,051	$	272,788	$	331,839
As of December 31, 2021
Construction loans⁽²⁾	$	59,640	$	125,621	$	185,261
Loans⁽²⁾		—		27,422		27,422
Held-to-maturity debt securities		—		96,838		96,838
Available-for-sale debt securities⁽³⁾		—		28,092		28,092
Less: Allowance for loan losses		(576)		(4,193)		(4,769)
Total	$	59,064	$	273,780	$	332,844

(1)

The carrying value of this loan includes an unamortized discount of $0.8 million and $0.8 million as of March 31, 2022 and December 31, 2021, respectively. The Company’s loans individually evaluated for impairment represent loans on non-accrual status and the unamortized amounts associated with these loans are not currently being amortized into income.

(2)	The carrying value of these loans includes unamortized discounts, premiums, deferred fees and costs totaling net discounts of $0.2 million and $0.2 million as of March 31, 2022 and December 31, 2021, respectively.

(3)	Available-for-sale debt securities are evaluated for impairment under ASC 326-30 – Financial Instruments-Credit Losses.

Schedule of investment in performing loans, presented by class and by credit quality, as indicated by risk rating

The Company’s amortized cost basis in performing senior mortgages, corporate/partnership loans and subordinate mortgages, presented by year of origination and by credit quality, as indicated by risk rating, as of March 31, 2022 were as follows ($ in thousands):


	Year of Origination
	2022		2021		2020		2019		2018		Prior to 2018		Total
Senior mortgages
Risk rating
1.0	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1.5		—		—		—		—		—		—		—
2.0		—		—		—		—		11,899		—		11,899
2.5		—		—		—		—		52,336		—		52,336
3.0		—		—		—		—		62,912		2,826		65,738
3.5		—		—		—		—		11,203		—		11,203
4.0		—		—		—		—		—		—		—
4.5		—		—		—		—		—		—		—
5.0		—		—		—		—		—		—		—
Subtotal⁽¹⁾	$	—	$	—	$	—	$	—	$	138,350	$	2,826	$	141,176
Subordinate mortgages
Risk rating
1.0	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1.5		—		—		—		—		—		—		—
2.0		—		—		—		—		—		—		—
2.5		—		—		—		—		—		—		—
3.0		—		—		—		—		—		12,670		12,670
3.5		—		—		—		—		—		—		—
4.0		—		—		—		—		—		—		—
4.5		—		—		—		—		—		—		—
5.0		—		—		—		—		—		—		—
Subtotal	$	—	$	—	$	—	$	—	$	—	$	12,670	$	12,670
Total	$	—	$	—	$	—	$	—	$	138,350	$	15,496	$	153,846

(1)	As of March 31, 2022, excludes $59.6 million for one loan on non-accrual status.

Schedule of recorded investment in loans, aged by payment status and presented by class

The Company’s amortized cost basis in loans, aged by payment status and presented by class, was as follows ($ in thousands):


			Less Than		Greater
			or Equal		Than		Total
	Current		to 90 Days		90 Days		Past Due		Total
As of March 31, 2022
Senior mortgages	$	141,176	$	—	$	59,642		59,642	$	200,818
Subordinate mortgages		12,670		—		—		—		12,670
Total	$	153,846	$	—	$	59,642	$	59,642	$	213,488
As of December 31, 2021
Senior mortgages	$	139,968	$	—	$	59,640		59,640	$	199,608
Corporate/Partnership loans		618		—		—		—		618
Subordinate mortgages		12,457		—		—		—		12,457
Total	$	153,043	$	—	$	59,640	$	59,640	$	212,683

Schedule of recorded investment in impaired loans


	As of March 31, 2022						As of December 31, 2021
			Unpaid						Unpaid
	Amortized		Principal		Related		Amortized		Principal		Related
	Cost		Balance		Allowance		Cost		Balance		Allowance
With an allowance recorded:
Senior mortgages⁽¹⁾	$	59,642	$	58,892	$	(591)	$	59,640	$	58,888	$	(576)
Total	$	59,642	$	58,892	$	(591)	$	59,640	$	58,888	$	(576)

(1)	The Company has one non-accrual loan as of March 31, 2022 and December 31, 2021 that is considered impaired and included in the table above. The Company did not record any interest income on impaired loans for the three months ended March 31, 2022 and 2021.

Schedule of other lending investments - securities


					Net				Net
			Amortized		Unrealized		Estimated		Carrying
	Face Value		Cost Basis		Gain		Fair Value		Value
As of March 31, 2022
Available-for-Sale Securities
Municipal debt securities	$	23,640	$	23,640	$	1,224	$	24,864	$	24,864
Held-to-Maturity Securities
Debt securities		100,000		98,419		—		98,419		98,419
Total	$	123,640	$	122,059	$	1,224	$	123,283	$	123,283
As of December 31, 2021
Available-for-Sale Securities
Municipal debt securities	$	23,855	$	23,855	$	4,237	$	28,092	$	28,092
Held-to-Maturity Securities
Debt securities		100,000		96,838		—		96,838		96,838
Total	$	123,855	$	120,693	$	4,237	$	124,930	$	124,930

Schedule of contractual maturities of securities

As of March 31, 2022, the contractual maturities of the Company’s securities were as follows ($ in thousands):


	Held-to-Maturity Debt Securities				Available-for-Sale Debt Securities
	Amortized		Estimated		Amortized		Estimated
	Cost Basis		Fair Value		Cost Basis		Fair Value
Maturities
Within one year	$	—	$	—	$	—	$	—
After one year through 5 years		98,419		98,419		—		—
After 5 years through 10 years		—		—		—		—
After 10 years		—		—		23,640		24,864
Total	$	98,419	$	98,419	$	23,640	$	24,864