XML 23 R15.htm IDEA: XBRL DOCUMENT
v3.23.3

Loans Receivable and Other Lending Investments, net | 9 Months Ended
--- | ---
Sep. 30, 2023
Receivables [Abstract] |
Loans Receivable and Other Lending Investments, net | Note 6—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 | ​
​ |  | September 30, 2023 |  | December 31, 2022 | ​
Construction loans | ​ | ​ | ​ | ​ | ​ | ​ | ​
Senior mortgages | ​ | $ | — | ​ | $ | 36,249 | ​
Subtotal - gross carrying value of construction loans | ​ |  | — | ​ |  | 36,249 | ​
Loans | ​ |  |  | ​ |  |  | ​
Senior mortgages | ​ |  | 2,550 | ​ |  | — | ​
Subordinate mortgages | ​ |  | 14,026 | ​ |  | 13,331 | ​
Subtotal - gross carrying value of loans | ​ |  | 16,576 | ​ |  | 13,331 | ​
Other lending investments | ​ |  |  | ​ |  |  | ​
Available-for-sale debt securities | ​ |  | 4,081 | ​ |  | — | ​
Subtotal - other lending investments | ​ |  | 4,081 | ​ |  | — | ​
Total gross carrying value of loans receivable and other lending investments | ​ |  | 20,657 | ​ |  | 49,580 | ​
Allowance for loan losses | ​ |  | (484) | ​ |  | (925) | ​
Total loans receivable and other lending investments, net | ​ | $ | 20,173 | ​ | $ | 48,655 | ​
​ Allowance for Loan Losses—Changes in the Company’s allowance for loan losses were as follows for the three months ended September 30, 2023 and 2022 ($ in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | General Allowance | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | ​ | ​ |  | Held to |  | ​ | ​ |  | ​ | ​
​ | ​ | Construction | ​ | ​ | ​ | ​ | Maturity Debt | ​ | Specific | ​ | ​ | ​
Three Months Ended September 30, 2023 | ​ | Loans | ​ | Loans | ​ | Securities | ​ | Allowance | ​ | Total
Allowance for loan losses at beginning of period | ​ | $ | — | ​ | $ | 389 | ​ | $ | — | ​ | $ | — | ​ | $ | 389
Provision for loan losses(1) | ​ |  | — | ​ |  | 95 | ​ |  | — | ​ |  | — | ​ |  | 95
Allowance for loan losses at end of period | ​ | $ | — | ​ | $ | 484 | ​ | $ | — | ​ | $ | — | ​ | $ | 484
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Three Months Ended September 30, 2022 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Allowance for loan losses at beginning of period | ​ | $ | 861 | ​ | $ | 450 | ​ | $ | 1,014 | ​ | $ | 708 | ​ | $ | 3,033
Provision for (recovery of) loan losses(1) | ​ |  | (13) | ​ |  | (72) | ​ |  | (67) | ​ |  | 9 | ​ |  | (143)
Allowance for loan losses at end of period | ​ | $ | 848 | ​ | $ | 378 | ​ | $ | 947 | ​ | $ | 717 | ​ | $ | 2,890
(1) | During the three months ended September 30, 2023 and 2022, the Company recorded a provision for (recovery of) loan losses of $0.1 million and ($0.2) million, respectively, in its combined and consolidated statements of operations. The provision in 2023 was due primarily to the origination of a new loan during the three months ended September 30, 2023. The recovery in 2022 was due primarily to the repayment of loans during the three months ended September 30, 2022.
Changes in the Company’s allowance for loan losses were as follows for the nine months ended September 30, 2023 and 2022 ($ in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | General Allowance | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | ​ | ​ |  | Held to |  | ​ | ​ |  | ​ | ​
​ | ​ | Construction | ​ | ​ | ​ | ​ | Maturity Debt | ​ | Specific | ​ | ​ | ​
Nine Months Ended September 30, 2023 | ​ | Loans | ​ | Loans | ​ | Securities | ​ | Allowance | ​ | Total
Allowance for loan losses at beginning of period | ​ | $ | 92 | ​ | $ | 437 | ​ | $ | — | ​ | $ | 396 | ​ | $ | 925
(Recovery of) provision for loan losses(1) | ​ |  | (92) | ​ |  | 47 | ​ |  | — | ​ |  | (396) | ​ |  | (441)
Allowance for loan losses at end of period | ​ | $ | — | ​ | $ | 484 | ​ | $ | — | ​ | $ | — | ​ | $ | 484
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Nine Months Ended September 30, 2022 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Allowance for loan losses at beginning of period | ​ | $ | 1,213 | ​ | $ | 676 | ​ | $ | 2,304 | ​ | $ | 576 | ​ | $ | 4,769
Provision for (recovery of) loan losses(1) | ​ |  | (365) | ​ |  | (298) | ​ |  | 23,643 | ​ |  | 141 | ​ |  | 23,121
Charge-offs(1) | ​ |  | — | ​ |  | — | ​ |  | (25,000) | ​ |  | — | ​ |  | (25,000)
Allowance for loan losses at end of period | ​ | $ | 848 | ​ | $ | 378 | ​ | $ | 947 | ​ | $ | 717 | ​ | $ | 2,890
(1) | During the nine months ended September 30, 2023 and 2022, the Company recorded a provision for loan losses of $1.7 million and $22.6 million, respectively, in its combined and consolidated statements of operations. The provision in 2023 was due primarily to a $2.2 million provision on the sale of a loan held for sale, which was partially offset by a recovery of loan losses due to the repayment of loans during the nine months ended September 30, 2023. The provision in 2022 was due primarily to a $25.0 million charge-off on the Company’s held-to-maturity debt security, which was recorded at the repayment proceeds received in 2022.
The Company’s investment in loans and other lending investments and the associated allowance for loan losses were as follows as of September 30, 2023 and December 31, 2022 ($ in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Individually |  | Collectively |  | ​ | ​
​ | ​ | Evaluated for | ​ | Evaluated for | ​ | ​ | ​
​ | ​ | Impairment(1) | ​ | Impairment | ​ | Total
As of September 30, 2023 |  | ​ |  |  | ​ |  |  | ​ |
Loans | ​ | $ | — | ​ | $ | 16,576 | ​ | $ | 16,576
Available-for-sale debt securities(2) | ​ | ​ | — | ​ | ​ | 4,081 | ​ | ​ | 4,081
Less: Allowance for loan losses | ​ |  | — | ​ |  | (484) | ​ |  | (484)
Total | ​ | $ | — | ​ | $ | 20,173 | ​ | $ | 20,173
As of December 31, 2022 | ​ |  |  | ​ |  |  | ​ |  |
Construction loans | ​ | $ | 29,493 | ​ | $ | 6,756 | ​ | $ | 36,249
Loans | ​ |  | — | ​ |  | 13,331 | ​ |  | 13,331
Less: Allowance for loan losses | ​ |  | (396) | ​ |  | (529) | ​ |  | (925)
Total | ​ | $ | 29,097 | ​ | $ | 19,558 | ​ | $ | 48,655
(1) | The carrying value of this loan includes amortized fees of $0.1 million as of December 31, 2022. The Company’s loans individually evaluated for impairment represent loans on non-accrual status and the unamortized amounts associated with these loans are not currently being amortized into income.
(2) | Available-for-sale debt securities were evaluated for impairment under ASC 326-30 — Financial Instruments-Credit Losses.
​ Credit Characteristics—As part of the Company’s process for monitoring the credit quality of its loans, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its performing loans. Risk ratings, which range from 1 (lower risk) to 5 (higher risk), are based on judgments which are inherently uncertain, and there can be no assurance that actual performance will be similar to current expectation. The Company designates loans as non-performing at such time as: (1) interest payments become 90 days delinquent; (2) the loan has a maturity default; or (3) management determines it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan. All non-performing loans are placed on non-accrual status and income is only recognized in certain cases upon actual cash receipt. The Company’s amortized cost basis in performing senior mortgage and subordinate mortgages, presented by year of origination and by credit quality, as indicated by risk rating, as of September 30, 2023 were as follows ($ in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Year of Origination |  |  | ​
​ |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior to 2019 |  | Total
Senior mortgages | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Risk rating | ​ | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  | ​ | ​ |
1.0 | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | —
1.5 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
2.0 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
2.5 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
3.0 | ​ |  | 2,550 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | 2,550
3.5 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
4.0 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
4.5 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
5.0 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
Subtotal | ​ | $ | 2,550 | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 2,550
Subordinate mortgages | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Risk rating | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
1.0 | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | —
1.5 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
2.0 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
2.5 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
3.0 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | 14,026 | ​ |  | 14,026
3.5 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
4.0 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
4.5 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
5.0 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
Subtotal | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 14,026 | ​ | $ | 14,026
Total | ​ | $ | 2,550 | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 14,026 | ​ | $ | 16,576
​ The Company’s amortized cost basis in performing senior mortgages and subordinate mortgages, presented by year of origination and by credit quality, as indicated by risk rating, as of December 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 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
2.5 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
3.0 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
3.5 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | 6,756 | ​ |  | — | ​ |  | 6,756
4.0 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
4.5 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
5.0 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
Subtotal | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 6,756 | ​ | $ | — | ​ | $ | 6,756
Subordinate mortgages | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Risk rating | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
1.0 | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | —
1.5 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
2.0 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
2.5 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
3.0 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | 13,331 | ​ |  | 13,331
3.5 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
4.0 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
4.5 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
5.0 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
Subtotal | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 13,331 | ​ | $ | 13,331
Total | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 6,756 | ​ | $ | 13,331 | ​ | $ | 20,087
​ ​ 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 September 30, 2023 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Senior mortgages | ​ | $ | 2,550 | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 2,550
Subordinate mortgages | ​ | ​ | 14,026 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 14,026
Total | ​ | $ | 16,576 | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 16,576
As of December 31, 2022 | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Senior mortgages | ​ | $ | 6,756 | ​ | $ | 29,493 | ​ | $ | — | ​ | $ | 29,493 | ​ | $ | 36,249
Subordinate mortgages | ​ |  | 13,331 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | 13,331
Total | ​ | $ | 20,087 | ​ | $ | 29,493 | ​ | $ | — | ​ | $ | 29,493 | ​ | $ | 49,580
​ Impaired Loans—In the fourth quarter 2022, the Company classified a loan with a carrying value of $29.1 million as non-performing upon maturity default. The loan was repaid in full in March 2023. The Company’s balances for its impaired loan were as follows ($ in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | As of September 30, 2023 |  | As of December 31, 2022
​ |  | ​ | ​ |  | Unpaid |  | ​ | ​ |  | ​ | ​ |  | Unpaid |  | ​ | ​
​ | ​ | Amortized | ​ | Principal | ​ | Related | ​ | Amortized | ​ | Principal | ​ | Related
​ | ​ | Cost | ​ | Balance | ​ | Allowance | ​ | Cost | ​ | Balance | ​ | Allowance
With an allowance recorded: | ​ | ​ |  |  | ​ |  |  | ​ |  | ​ | ​ |  |  | ​ |  |  | ​ |
Senior mortgages(1) | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 29,493 | ​ | $ | 29,358 | ​ | $ | (396)
Total | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 29,493 | ​ | $ | 29,358 | ​ | $ | (396)
(1) | The Company had one non-accrual loan as of December 31, 2022 that was considered impaired and included in the table above. The Company did no t record any interest income on impaired loans for the three and nine months ended September 30, 2023 and 2022.
Loans receivable held for sale—In December 2022, the Company began marketing a non-performing loan for sale and classified the loan in “Loans receivable held for sale” on the Company’s combined and consolidated balance sheet as of December 31, 2022. Prior to its transfer to loans receivable held for sale, the Company recorded a provision for loan losses of $23.8 million on the loan based on the Company’s intent to sell the loan based on a bid received from a third-party. The loan was sold in March 2023 for $37.7 million and the Company recognized a loss of $2.2 million on the sale. Other lending investments—Other lending investments includes the following securities ($ in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | ​ | ​ |  | Net |  | ​ | ​ |  | Net
​ | ​ | ​ | ​ | ​ | Amortized | ​ | Unrealized | ​ | Estimated | ​ | Carrying
​ | ​ | Face Value | ​ | Cost Basis | ​ | Gain (Loss) | ​ | Fair Value | ​ | Value
As of September 30, 2023 |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Available-for-sale securities |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Municipal debt securities(1) | ​ | $ | 4,220 | ​ | $ | 4,220 | ​ | $ | (139) | ​ | $ | 4,081 | ​ | $ | 4,081
Total | ​ | $ | 4,220 | ​ | $ | 4,220 | ​ | $ | (139) | ​ | $ | 4,081 | ​ | $ | 4,081
​ ​ ​
(1) | In September 2023, the Company acquired two securities for $4.2 million. The securities both accrue interest at 7.0% and mature in July 2053.

X
- 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://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//310-10/tableOfContent + Details
Name: | us-gaap_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration