Multi-family Loans, at Fair Value

9 Months Ended

Sep. 30, 2022

4. Multi-family Loans, at Fair Value

The Company's multi-family loans consisting of its preferred equity in, and mezzanine loans to, entities that have multi-family real estate assets are presented at fair value on the Company's condensed consolidated balance sheets as a result of a fair value election. Accordingly, changes in fair value are presented in unrealized gains (losses), net on the Company's condensed consolidated statements of operations. Multi-family loans consist of the following as of September 30, 2022 and December 31, 2021, respectively (dollar amounts in thousands):


	September 30, 2022		December 31, 2021
Investment amount	$	96,887	$	118,307
Deferred loan fees, net	(492)		(672)
Unrealized (losses) gains, net	(566)		2,386
Total, at Fair Value	$	95,829	$	120,021

For the three and nine months ended September 30, 2022, the Company recognized $2.5 million and $3.0 million in net unrealized losses on multi-family loans, respectively. For the three and nine months ended September 30, 2021, the Company recognized $0.4 million and $0.7 million in net unrealized gains on multi-family loans, respectively.

For the three and nine months ended September 30, 2022, the Company recognized $7.1 thousand and $1.0 million in premiums resulting from early redemption of multi-family loans, respectively. For the three and nine months ended September 30, 2021, the Company recognized $0.1 million and $2.1 million in premiums resulting from early redemption of multi-family loans, respectively. Premiums resulting from early redemption of multi-family loans are included in other income on the accompanying condensed consolidated statements of operations.

The table below presents the fair value and aggregate unpaid principal balance of the Company's multi-family loans in non-accrual status as of September 30, 2022 and December 31, 2021, respectively (dollar amounts in thousands):


	September 30, 2022				December 31, 2021
Days Late	Fair Value		Unpaid Principal Balance		Fair Value		Unpaid Principal Balance



90 +	$	4,299	$	3,363	$	3,972	$	3,363

The geographic concentrations of credit risk exceeding 5% of the total multi-family loan investment amounts as of September 30, 2022 and December 31, 2021, respectively, are as follows:


	September 30, 2022		December 31, 2021
Texas	27.3	%	28.3	%
Florida	15.2	%	12.2	%
Tennessee	14.0	%	11.0	%
Ohio	8.8	%	7.2	%
Louisiana	6.8	%	5.8	%
Alabama	6.4	%	5.0	%
North Carolina	5.5	%	7.0	%
Indiana	5.2	%	4.3	%