Loans (Tables)

3 Months Ended

Mar. 31, 2018

Secured loan transactions are summarized in the following table for the three months ended March 31, 2018.

	2018
Principal, January 1	$	54,768,689
Loans funded		9,946,500
Loans acquired from affiliates		5,889,819
Principal payments received		(12,739,617	)
Principal, March 31	$	57,865,391

Secured Loans Characteristics

Secured loans had the characteristics presented in the following table.

	March 31,			December 31,
	2018			2017
Number of secured loans		93			93
Secured loans – principal	$	57,865,391		$	54,768,689
Secured loans – lowest interest rate (fixed)		6.9	%		6.9	%
Secured loans – highest interest rate (fixed)		10.5	%		10.5	%

Average secured loan – principal	$	622,209		$	588,911
Average principal as percent of total principal		1.1	%		1.1	%
Average principal as percent of members’ capital		0.9	%		0.9	%
Average principal as percent of total assets		0.9	%		0.9	%

Largest secured loan – principal	$	3,200,000		$	3,239,124
Largest principal as percent of total principal		5.5	%		5.9	%
Largest principal as percent of members’ capital		4.7	%		5.0	%
Largest principal as percent of total assets		4.7	%		5.1	%

Smallest secured loan – principal	$	94,425		$	52,562
Smallest principal as percent of total principal		0.2	%		0.1	%
Smallest principal as percent of members’ capital		0.1	%		0.1	%
Smallest principal as percent of total assets		0.1	%		0.1	%

Number of California counties where security is located		17			16
Largest percentage of principal in one California county		18.8	%		22.6	%

Number of secured loans with filed notice of default		1			1
Secured loans in foreclosure – principal	$	139,162		$	139,643

Number of secured loans with an interest reserve		—			—
Interest reserves	$	—		$	—

Secured Loans by Lien Position in the Collateral

Secured loans had the lien positions presented in the following table.

	March 31, 2018								December 31, 2017
	Loans		Principal			Percent			Loans		Principal			Percent
First trust deeds		56	$	35,087,060			61	%		60	$	37,032,195			68	%
Second trust deeds		37		22,778,331			39			33		17,736,494			32
Total secured loans		93		57,865,391			100	%		93		54,768,689			100	%
Liens due other lenders at loan closing				37,901,684								31,545,806
Total debt			$	95,767,075							$	86,314,495

Appraised property value at loan closing			$	197,444,000							$	181,018,000

Percent of total debt to appraised values (LTV) at loan closing⁽¹⁾				53.7	%							53.5	%

(1)

Based on appraised values and liens due other lenders at loan closing. The weighted-average loan-to-value (LTV) computation above does not take into account subsequent increases or decreases in property values following the loan closing nor does it include decreases or increases of the amount owing on senior liens to other lenders.

Secured Loans by Property Type of the Collateral

Secured loans summarized by property type are presented in the following table.

	March 31, 2018							December 31, 2017
	Loans		Principal		Percent			Loans		Principal		Percent
Single family⁽²⁾		65	$	37,929,509		66	%		67	$	37,615,216		69	%
Multi-family		8		5,337,203		9			5		2,164,861		4
Commercial		20		14,598,679		25			21		14,988,612		27
Total secured loan balance		93	$	57,865,391		100	%		93		54,768,689		100	%

(2)

Single family property type as of March 31, 2018 consists of 11 loans with principal of $6,506,239 that are owner occupied and 54 loans with principal of $31,423,270 that are non-owner occupied. At December 31, 2017, single family property consisted of 10 loans with principal of $6,309,036 that are owner occupied and 57 loans with principal of $31,306,180 that are non-owner occupied.

Secured Loans Distributed within California

The distribution of secured loans outstanding by California counties is presented in the following table as of March 31, 2018, and December 31, 2017.

	March 31, 2018					December 31, 2017
	Principal		Percent			Principal		Percent
San Francisco Bay Area⁽³⁾
Alameda	$	8,993,618		15.5	%	$	9,869,036		18.0	%
San Mateo		8,554,723		14.8			7,800,549		14.2
San Francisco		7,755,285		13.4			8,338,720		15.1
Santa Clara		7,111,703		12.3			5,461,084		10.0
Sonoma		1,285,000		2.2			—		—
Contra Costa		1,064,345		1.8			1,511,195		2.8
Solano		—		—			109,443		0.2
		34,764,674		60.0			33,090,027		60.3

Other Northern California
Sacramento		850,000		1.5			850,000		1.6
Placer		641,571		1.1			642,913		1.2
Yolo		169,915		0.3			174,758		0.3
San Joaquin		156,696		0.3			157,039		0.3
		1,818,182		3.2			1,824,710		3.4

Northern California Total		36,582,856		63.2			34,914,737		63.7

Los Angeles & Coastal
Los Angeles		10,871,240		18.8			12,357,456		22.6
Orange		4,594,372		7.9			1,487,747		2.7
San Diego		2,004,547		3.5			2,192,746		4.0
Santa Barbara		994,774		1.7			996,768		1.8
Ventura		349,291		0.6			350,000		0.6
		18,814,224		32.5			17,384,717		31.7

Other Southern California
San Bernardino		2,110,000		3.7			2,110,000		3.9
Riverside		358,311		0.6			359,235		0.7
		2,468,311		4.3			2,469,235		4.6

Southern California Total		21,282,535		36.8			19,853,952		36.3
Total Secured Loans	$	57,865,391		100.0	%	$	54,768,689		100.0	%

(3)	Includes Silicon Valley

Secured Loans Scheduled Maturities

Secured loans are scheduled to mature as presented in the following table as of March 31, 2018.

	Loans		Principal		Percent
2018⁽⁴⁾		13	$	15,156,189		26	%
2019		37		25,167,665		43
2020		18		8,254,558		14
2021		9		4,244,110		7
2022		11		3,469,122		6
Thereafter		4		1,434,585		3
Total future maturities		92		57,726,229		99
Matured as of March 31, 2018		1		139,162		1
Total secured loan balance		93	$	57,865,391		100	%

(4)	Loans maturing in 2018 from April 1 to December 31.

Past Due Financing Receivables

Secured loans summarized by payment delinquency are presented in the following table as of March 31, 2018 and December 31, 2017.

	March 31, 2018				December 31, 2017
	Loans		Amount		Loans		Amount
Past Due
30-89 days		4	$	1,324,345		3	$	1,259,100
90-179 days		—		—		—		—
180 or more days		1		139,162		1		139,643
Total past due		5		1,463,507		4		1,398,743
Current		88		56,401,884		89		53,369,946
Total secured loan balance		93	$	57,865,391		93	$	54,768,689

Secured Loans in Non-Accrual Status

	March 31, 2018		December 31, 2017
Number of loans	$	1	$	1
Principal investment		139,162		139,643
Advances		4,369		969
Accrued Interest		8,874		11,025
Total recorded investment	$	152,405	$	151,637
Foregone interest	$	7,535	$	4,306

Impaired Loans [Member]

Impaired Financing Receivables

Impaired loans/allowance for loan losses

	March 31, 2018		December 31, 2017
Principal	$	139,162	$	139,643
Recorded investment⁽⁵⁾		152,405		151,637
Impaired loans without allowance		152,405		151,637
Impaired loans with allowance		—		—
Allowance for loan losses, impaired loans		—		—

Number of loans		1		1

(5)Recorded investment is the sum of the principal, advances, and interest accrued for financial reporting purposes.

Average Balances and Interest Income [Member]

Impaired Financing Receivables

Impaired loans had average balances and interest income recognized and received in cash as presented in the following tables as of and for the three months ended March 31, 2018 and the year ended December 31, 2017.

	March 31, 2018		December 31, 2017
Average recorded investment	$	152,021	$	536,934
Interest income recognized		—		8,602
Interest income received in cash		3,224		4,342