LOANS (Tables)

6 Months Ended

Jun. 30, 2024

Loans Held For Investment [Abstract]

Summary of loans held for Investments by Asset type, Property type, and Geographic location

The following is a summary of the Company’s CRE loans held for investment by asset type (dollars in thousands, except amounts in footnotes):

Description	Quantity	Principal		Unamortized (Discount) Premium, net (1)			Amortized Cost		Allowance for Credit Losses			Carrying Value		Contractual Interest Rates (2)	Maturity Dates (3)(4)
At June 30, 2024:
Whole loans (5)(6)(7)	63	$	1,712,987	$	(3,976	)	$	1,709,011	$	(30,290	)	$	1,678,721	1M BR plus 2.50% to 1M BR plus 8.61%	July 2024 to July 2027
Mezzanine loan (5)	1		4,700		—			4,700		(4,700	)		—	10.00%	June 2028
Total		$	1,717,687	$	(3,976	)	$	1,713,711	$	(34,990	)	$	1,678,721
At December 31, 2023:
Whole loans (5)(6)	69	$	1,858,265	$	(5,872	)	$	1,852,393	$	(24,057	)	$	1,828,336	1M BR plus 2.50% to 1M BR plus 8.61%	January 2024 to January 2027
Mezzanine loan (5)	1		4,700		—			4,700		(4,700	)		—	10.00%	June 2028
Total		$	1,862,965	$	(5,872	)	$	1,857,093	$	(28,757	)	$	1,828,336

(1)Amounts include unamortized loan origination fees of $3.1 million and $5.8 million and deferred amendment fees of $902,000 and $110,000 at June 30, 2024 and December 31, 2023, respectively.

(2)Benchmark rates ("BR") comprise one-month Term Secured Overnight Financing Rate ("SOFR"). Weighted-average one-month benchmark rates were 5.38% and 5.39% at June 30, 2024 and December 31, 2023, respectively. Additionally, weighted-average benchmark rate floors were 0.75% and 0.70% at June 30, 2024 and December 31, 2023, respectively.

(3)Maturity dates exclude contractual extension options, subject to the satisfaction of certain terms that may be available to the borrowers.

(4)Maturity dates exclude one and three whole loans, with amortized costs of $14.4 million and $41.2 million, in maturity default at June 30, 2024 and December 31, 2023, respectively.

(5)Substantially all loans are pledged as collateral under various borrowings at June 30, 2024 and December 31, 2023.

(6)CRE whole loans had $89.1 million and $109.4 million in unfunded loan commitments at June 30, 2024 and December 31, 2023, respectively. These unfunded loan commitments are advanced as the borrowers formally request additional funding and meet certain benchmarks, as permitted under the loan agreements, and any necessary approvals have been obtained.

(7)Includes a mezzanine loan of $2.1 million, at amortized cost, that has a fixed interest rate of 15.0% at June 30, 2024.

The following is a summary of the Company’s CRE loans held for investment by property type and geographic location (dollars in thousands, except amounts in footnotes):

	June 30, 2024					December 31, 2023
Property Type	Carrying Value		% of Loan Portfolio			Carrying Value		% of Loan Portfolio
Multifamily	$	1,333,273		79.4	%	$	1,453,681		79.6	%
Office (1)(2)		229,276		13.7	%		247,410		13.5	%
Hotel		67,541		4.0	%		70,857		3.9	%
Self-Storage		48,631		2.9	%		48,363		2.6	%
Retail (3)		—		0.0	%		8,025		0.4	%
Total	$	1,678,721		100	%	$	1,828,336		100	%

(1)Includes one and two whole loans in maturity default with carrying values of $14.4 million and $33.1 million at June 30, 2024 and December 31, 2023, respectively.

(2)Includes one mezzanine loan with a par value of $4.7 million that is fully reserved at both June 30, 2024 and December 31, 2023.

(3)Comprises one whole loan in maturity default at December 31, 2023.

	June 30, 2024					December 31, 2023
Geographic Location	Carrying Value		% of Loan Portfolio			Carrying Value		% of Loan Portfolio
Southwest (1)	$	464,051		27.6	%	$	484,902		26.6	%
Southeast		315,470		18.8	%		401,624		22.0	%
Mountain		275,437		16.4	%		275,120		15.0	%
Mid Atlantic		239,217		14.2	%		236,104		12.9	%
Pacific		165,358		9.9	%		169,789		9.3	%
Northeast (2)		133,279		7.9	%		161,172		8.8	%
East North Central (3)		46,220		2.8	%		60,401		3.3	%
West North Central		39,689		2.4	%		39,224		2.1	%
Total	$	1,678,721		100	%	$	1,828,336		100	%

(1)Includes one whole loan in maturity default with a carrying value of $14.4 million and $19.1 million at June 30, 2024 and December 31, 2023, respectively.

(2)Includes one whole loan in maturity default with a carrying value of $8.0 million at December 31, 2023 that paid off at par during the second quarter 2024. Also includes one mezzanine loan with a par value of $4.7 million that is fully reserved at both June 30, 2024 and December 31, 2023.

(3)Includes one whole loan in maturity default with a carrying value of $14.0 million at December 31, 2023. The Company took title to the underlying property via deed-in-lieu of foreclosure in the first quarter 2024.

Summary of Contractual Maturities of Commercial Real Estate Loans at Amortized Cost

The following is a summary of the contractual maturities of the Company’s CRE loans held for investment, at amortized cost (in thousands, except amounts in the footnotes):

Description	2024		2025		2026 and Thereafter		Total
At June 30, 2024:
Whole loans (1)	$	448,633	$	983,679	$	262,301	$	1,694,613
Mezzanine loan		—		—		4,700		4,700
Total CRE loans (2)	$	448,633	$	983,679	$	267,001	$	1,699,313
Description	2024		2025		2026 and Thereafter		Total
At December 31, 2023:
Whole loans (1)	$	916,985	$	814,772	$	79,484	$	1,811,241
Mezzanine loan		—		—		4,700		4,700
Total CRE loans (2)	$	916,985	$	814,772	$	84,184	$	1,815,941

(1)Maturity dates exclude one and three whole loans, with amortized costs of $14.4 million and $41.2 million, in maturity default at June 30, 2024 and December 31, 2023, respectively.

(2)At June 30, 2024, the amortized costs of the floating-rate CRE whole loans, summarized by contractual maturity assuming full exercise of the extension options, were $5.6 million, $101.5 million and $1.6 billion in 2024, 2025 and 2026 and thereafter, respectively. At December 31, 2023, the amortized costs of the floating-rate CRE whole loans, summarized by contractual maturity assuming full exercise of the extension options, were $80.4 million, $101.7 million and $1.6 billion in 2024, 2025 and 2026 and thereafter, respectively.