XML 44 R32.htm IDEA: XBRL DOCUMENT v3.24.3
LOANS RECEIVABLE (Tables)
 9 Months Ended
Sep. 30, 2024
Receivables [Abstract]  
Schedule of Loans Receivable, Net
Loans receivable consist of the following (in thousands):
 September 30, 2024December 31, 2023
SBA 7(a) loans receivable, subject to credit risk$13,660 $10,393 
SBA 7(a) loans receivable, subject to loan-backed notes39,466 43,983 
SBA 7(a) loans receivable, subject to secured borrowings1,832 3,105 
SBA 7(a) loans receivable, held for sale1,539 74 
Loans receivable56,497 57,555 
Deferred capitalized costs, net1,111 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, 2023783 
Net adjustment to reserve for expected credit losses51 
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 Loans20242023202220212020Prior Total
Loans by internal risk rating:
1106$4,050 $5,357 $4,807 $6,946 $2,187 $10,089 $33,436 
255475 4,100 3,475 2,491 1,494 6,323 $18,358 
31— — — 430 — — $430 
41— 902 — — — — $902 
5—— — — — — — — 
Total163$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, net1,111 
Less: Current expected credit losses
(1,866)
Less: Held for sale guaranteed portion1,539 
Total loans receivable, net$55,742 
Weighted average risk rating1.4
____________________
(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.