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LOANS RECEIVABLE (Tables) | 9 Months Ended
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Sep. 30, 2024
Receivables [Abstract] |
Schedule of Loans Receivable, Net | Loans receivable consist of the following (in thousands):
|  | September 30, 2024 |  | December 31, 2023
SBA 7(a) loans receivable, subject to credit risk |  | $ | 13,660 |  |  | $ | 10,393 |
SBA 7(a) loans receivable, subject to loan-backed notes |  | 39,466 |  |  | 43,983 |
SBA 7(a) loans receivable, subject to secured borrowings |  | 1,832 |  |  | 3,105 |
SBA 7(a) loans receivable, held for sale |  | 1,539 |  |  | 74 |
Loans receivable |  | 56,497 |  |  | 57,555 |
Deferred capitalized costs, net |  | 1,111 |  |  | 1,130 |
Current expected credit losses |  | (1,866) |  |  | (1,680) |
Loans receivable, net |  | $ | 55,742 |  |  | $ | 57,005 |
Schedule of Allowance for Credit Losses | The following table presents the activity in the Company’s CECL for the nine months ended September 30, 2024 and September 30, 2023 (dollar amounts in thousands):
|  | Loans Receivable
Current expected credit losses as of December 31, 2023 |  | $ | 1,680 |
Net adjustment to reserve for expected credit losses |  | (36) |
Current expected credit losses as of March 31, 2024 |  | $ | 1,644 |
Net adjustment to reserve for expected credit losses |  | (37) |
Current expected credit losses as of June 30, 2024 |  | $ | 1,607 |
Net adjustment to reserve for expected credit losses |  | 259 |
Current expected credit losses as of September 30, 2024 |  | $ | 1,866 |
Allowance for credit losses as of December 31, 2022 |  | $ | 1,106 |
Transition adjustment on January 1, 2023 |  | 783 |
Net adjustment to reserve for expected credit losses |  | 51 |
Current expected credit losses as of March 31, 2023 |  | $ | 1,940 |
Write-offs |  | (85) |
Reserve for expected credit losses |  | (142) |
Current expected credit losses as of June 30, 2023 |  | $ | 1,713 |
Reserve for expected credit losses |  | (9) |
Current expected credit losses as of September 30, 2023 |  | $ | 1,704 |
Schedule of Net Book Value of Loans Receivable Portfolio by Year of Origination, Loan Type and Risk Rating | The following table presents the net book value of the Company’s loans receivable portfolio as of September 30, 2024 by year of origination, loan type and risk rating (dollar amounts in thousands):
|  |  | Amortized Cost of Loans Receivable by Year of Origination As of September 30, 2024
| Number of Loans |  | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total
Loans by internal risk rating: |  |  |  |  |  |  |  |  |
1 | 106 |  | $ | 4,050 |  | $ | 5,357 |  | $ | 4,807 |  | $ | 6,946 |  | $ | 2,187 |  | $ | 10,089 |  | $ | 33,436 |
2 | 55 |  | 475 |  | 4,100 |  | 3,475 |  | 2,491 |  | 1,494 |  | 6,323 |  | $ | 18,358 |
3 | 1 |  | — |  | — |  | — |  | 430 |  | — |  | — |  | $ | 430 |
4 | 1 |  | — |  | 902 |  | — |  | — |  | — |  | — |  | $ | 902 |
5 | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total | 163 |  | $ | 4,525 |  | $ | 10,359 |  | $ | 8,282 |  | $ | 9,867 |  | $ | 3,681 |  | $ | 16,412 |  | $ | 53,126 |
Plus: SBA 7(a) loans receivable, subject to secured borrowings (1) |  |  |  |  |  |  |  |  | 1,832 |
Plus: Deferred capitalized costs, net |  |  |  |  |  |  |  |  | 1,111 |
Less: Current expected credit losses |  |  |  |  |  |  |  |  | (1,866) |
Less: Held for sale guaranteed portion |  |  |  |  |  |  |  |  | 1,539 |
Total loans receivable, net |  |  |  |  |  |  |  |  | $ | 55,742 |
Weighted average risk rating |  |  |  |  |  |  |  |  | 1.4
____________________ (1)The Company does not assign a risk rating to its SBA 7(a) loans receivable that are subject to secured borrowings or the government guaranteed portion of loans held for sale. The Company has determined there is no credit risk associated with these loans since the SBA has guaranteed payment of the principal.

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- Definition Tabular disclosure of allowance for credit loss on financing receivable. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 11B -Publisher FASB -URI https://asc.fasb.org/1943274/2147481962/310-10-50-11B Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479319/326-20-50-13 + Details
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- Definition Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 29 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481962/310-10-50-29 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479319/326-20-50-5 + Details
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- Definition Tabular disclosure of the various types of trade accounts and notes receivable and for each the gross carrying value, allowance, and net carrying value as of the balance sheet date. Presentation is categorized by current, noncurrent and unclassified receivables. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(4)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(3)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1 + Details
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