Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2024

Accounts, Notes, Loans and Financing Receivable [Line Items]

Schedule of classification, unpaid principal balance, and carrying value of loans held including loans of consolidated VIEs

	June 30, 2024				December 31, 2023
(in thousands)	Carrying Value		UPB		Carrying Value		UPB
Loans
Bridge	$	1,267,122	$	1,270,125	$	1,444,770	$	1,448,281
Fixed rate		186,857		184,707		247,476		241,674
Construction		841,695		842,854		1,207,783		1,212,526
Freddie Mac		—		—		9,500		9,719
SBA - 7(a)		1,020,826		1,028,043		995,974		1,003,323
Other		162,155		164,043		196,087		198,499
Total Loans, before allowance for loan losses	$	3,478,655	$	3,489,772	$	4,101,590	$	4,114,022
Allowance for loan losses	$	(33,776)	$	—	$	(81,430)	$	—
Total Loans, net	$	3,444,879	$	3,489,772	$	4,020,160	$	4,114,022
Loans in consolidated VIEs
Bridge		4,804,452		4,816,128		5,370,251		5,389,535
Fixed rate		773,230		772,576		790,068		790,967
SBA - 7(a)		201,343		214,415		213,892		227,636
Other		233,440		234,224		257,289		258,029
Total Loans, in consolidated VIEs, before allowance for loan losses	$	6,012,465	$	6,037,343	$	6,631,500	$	6,666,167
Allowance for loan losses on loans in consolidated VIEs	$	(11,056)	$	—	$	(20,175)	$	—
Total Loans, net, in consolidated VIEs	$	6,001,409	$	6,037,343	$	6,611,325	$	6,666,167
Loans, held for sale
Bridge		251,836		251,375		—		—
Fixed rate		38,051		39,826		—		—
Construction		356,753		359,208		—		—
Freddie Mac		12,046		12,266		20,955		20,729
SBA - 7(a)		71,281		65,842		59,421		55,769
Other		20,263		20,021		1,223		1,297
Total Loans, held for sale, before valuation allowance	$	750,230	$	748,538	$	81,599	$	77,795
Valuation allowance	$	(217,719)	$	—	$	—	$	—
Total Loans, held for sale	$	532,511	$	748,538	$	81,599	$	77,795
Loans, held for sale in consolidated VIEs
Bridge	$	19,173	$	19,173	$	—	$	—
Valuation allowance on loans, held for sale in consolidated VIEs	$	(9,448)	$	—	$	—	$	—
Total Loans, held for sale in consolidated VIEs	$	9,725	$	19,173	$	—	$	—
Total	$	9,988,524	$	10,294,826	$	10,713,084	$	10,857,984

Schedule of summary of the classification, UPB, and carrying value of loans by year of origination

			Carrying Value by Year of Origination
(in thousands)	UPB		2024		2023		2022		2021		2020		Pre 2020		Total
June 30, 2024
Bridge	$	6,086,253	$	231,149	$	255,672	$	2,669,676	$	2,643,443	$	176,563	$	93,405	$	6,069,908
Fixed rate		957,283		—		—		110,625		181,427		90,094		576,876		959,022
Construction		842,854		—		107,206		156,856		103,290		12,866		459,407		839,625
SBA - 7(a)		1,242,458		94,112		148,941		344,158		283,853		109,300		238,443		1,218,807
Other		398,267		6,330		2,801		4,614		7,375		8,600		365,824		395,544
Total Loans, before general allowance for loan losses	$	9,527,115	$	331,591	$	514,620	$	3,285,929	$	3,219,388	$	397,423	$	1,733,955	$	9,482,906
General allowance for loan losses															$	(36,618)
Total Loans, net															$	9,446,288
Gross write-offs			$	—	$	1,273	$	1,492	$	2,890	$	533	$	5,511	$	11,699
	UPB		2023		2022		2021		2020		2019		Pre 2019		Total
December 31, 2023
Bridge	$	6,837,816	$	323,648	$	2,956,697	$	2,949,521	$	288,647	$	166,266	$	111,303	$	6,796,082
Fixed rate		1,032,641		4,007		110,800		207,510		90,794		318,077		300,642		1,031,830
Construction		1,212,526		108,218		253,100		182,920		73,370		434,151		128,876		1,180,635
Freddie Mac		9,719		—		—		3,810		5,690		—		—		9,500
SBA - 7(a)		1,230,959		151,878		353,871		318,208		115,019		76,080		189,622		1,204,678
Other		456,528		2,599		4,877		18,549		8,708		43,724		374,776		453,233
Total Loans, before general allowance for loan losses	$	10,780,189	$	590,350	$	3,679,345	$	3,680,518	$	582,228	$	1,038,298	$	1,105,219	$	10,675,958
General allowance for loan losses															$	(44,473)
Total Loans, net															$	10,631,485
Gross write-offs			$	100	$	950	$	3,236	$	258	$	360	$	25,731	$	30,635

Schedule of delinquency information on loans by year of origination

			Carrying Value by Year of Origination
(in thousands)	UPB		2024		2023		2022		2021		2020		Pre 2020		Total
June 30, 2024
Current	$	9,103,724	$	330,985	$	497,155	$	3,168,095	$	3,029,683	$	380,511	$	1,664,385	$	9,070,814
30 - 59 days past due		45,971		505		124		16,759		13,408		—		15,112		45,908
60+ days past due		377,420		101		17,341		101,075		176,297		16,912		54,458		366,184
Total Loans, before general allowance for loan losses	$	9,527,115	$	331,591	$	514,620	$	3,285,929	$	3,219,388	$	397,423	$	1,733,955	$	9,482,906
General allowance for loan losses															$	(36,618)
Total Loans, net															$	9,446,288
	UPB		2023		2022		2021		2020		2019		Pre 2019		Total
December 31, 2023
Current	$	9,632,399	$	574,507	$	3,351,046	$	3,409,643	$	495,433	$	881,868	$	875,348	$	9,587,845
30 - 59 days past due		172,355		582		59,988		80,684		510		22,586		7,148		171,498
60+ days past due		975,435		15,261		268,311		190,191		86,285		133,844		222,723		916,615
Total Loans, before general allowance for loan losses	$	10,780,189	$	590,350	$	3,679,345	$	3,680,518	$	582,228	$	1,038,298	$	1,105,219	$	10,675,958
General allowance for loan losses															$	(44,473)
Total Loans, net															$	10,631,485

Schedule of delinquency information on loans, net

(in thousands)	Current		30-59 days past due		60+ days past due		Total		Non-Accrual Loans		90+ days past due and Accruing
June 30, 2024
Bridge	$	5,752,441	$	25,074	$	292,393	$	6,069,908	$	103,996	$	119,009
Fixed rate		933,012		3,500		22,510		959,022		22,511		—
Construction		803,198		15,182		21,245		839,625		19,578		1,667
SBA - 7(a)		1,192,886		262		25,659		1,218,807		43,484		—
Other		389,277		1,890		4,377		395,544		2,822		—
Total Loans, before general allowance for loan losses	$	9,070,814	$	45,908	$	366,184	$	9,482,906	$	192,391	$	120,676
General allowance for loan losses							$	(36,618)
Total Loans, net							$	9,446,288
Percentage of loans outstanding		95.6%		0.5%		3.9%		100%		2.0%		1.3%
December 31, 2023
Bridge	$	6,186,367	$	87,163	$	522,552	$	6,796,082	$	339,073	$	—
Fixed rate		986,755		21,798		23,277		1,031,830		13,928		—
Construction		782,123		49,694		348,818		1,180,635		241,751		82,781
Freddie Mac		9,500		—		—		9,500		2,695		—
SBA - 7(a)		1,179,231		8,619		16,828		1,204,678		30,549		40
Other		443,869		4,224		5,140		453,233		6,005		—
Total Loans, before general allowance for loan losses	$	9,587,845	$	171,498	$	916,615	$	10,675,958	$	634,001	$	82,821
General allowance for loan losses							$	(44,473)
Total Loans, net							$	10,631,485
Percentage of loans outstanding		89.8%		1.6%		8.6%		100%		5.9%		0.8%

Schedule of information on credit quality of loans

	LTV(1)
(in thousands)	0.0 – 20.0%		20.1 – 40.0%		40.1 – 60.0%		60.1 – 80.0%		80.1 – 100.0%		Greater than 100.0%		Total
June 30, 2024
Bridge	$	2,243	$	85,672	$	721,964	$	4,974,660	$	179,286	$	106,083	$	6,069,908
Fixed rate		3,227		30,987		437,170		466,402		19,940		1,296		959,022
Construction		21,019		4,521		147,031		569,839		91,895		5,320		839,625
SBA - 7(a)		13,798		69,428		218,269		353,621		228,658		335,033		1,218,807
Other		108,028		135,847		67,757		67,845		14,729		1,338		395,544
Total Loans, before general allowance for loan losses	$	148,315	$	326,455	$	1,592,191	$	6,432,367	$	534,508	$	449,070	$	9,482,906
General allowance for loan losses													$	(36,618)
Total Loans, net													$	9,446,288
Percentage of loans outstanding		1.6%		3.4%		16.8%		67.8%		5.6%		4.8%
December 31, 2023
Bridge	$	2,308	$	97,309	$	756,353	$	5,781,651	$	82,517	$	75,944	$	6,796,082
Fixed rate		5,222		36,021		449,804		517,628		19,965		3,190		1,031,830
Construction		25,173		94,856		532,730		355,631		119,191		53,054		1,180,635
Freddie Mac		—		—		2,995		6,505		—		—		9,500
SBA - 7(a)		10,627		56,061		172,743		404,102		226,327		334,818		1,204,678
Other		127,310		159,386		81,291		68,451		14,124		2,671		453,233
Total Loans, before general allowance for loan losses	$	170,640	$	443,633	$	1,995,916	$	7,133,968	$	462,124	$	469,677	$	10,675,958
General allowance for loan losses													$	(44,473)
Total Loans, net													$	10,631,485
Percentage of loans outstanding		1.6%		4.2%		18.7%		66.8%		4.3%		4.4%
(1) LTV is calculated by dividing the current carrying amount by the most recent collateral value received. The most recent value for performing loans is often the third-party as-is valuation utilized during the original underwriting process.

Schedule of activity of the allowance for loan losses for loans

(in thousands)	Bridge		Fixed Rate		Construction		SBA - 7(a)		Other		Total
June 30, 2024
General	$	12,732	$	5,415	$	5,840	$	10,204	$	2,427	$	36,618
Specific		1,666		1,065		181		3,362		51		6,325
PCD		—		—		1,889		—		—		1,889
Ending balance	$	14,398	$	6,480	$	7,910	$	13,566	$	2,478	$	44,832
December 31, 2023
General	$	17,302	$	7,884	$	3,722	$	12,679	$	2,886	$	44,473
Specific		18,939		5,714		5,726		5,188		143		35,710
PCD		—		—		21,422		—		—		21,422
Ending balance	$	36,241	$	13,598	$	30,870	$	17,867	$	3,029	$	101,605

(in thousands)	Bridge		Fixed Rate		Construction		SBA - 7(a)		Other		Total
Three Months Ended June 30, 2024
Beginning balance	$	13,181	$	7,264	$	23,755	$	20,579	$	2,644	$	67,423
Provision for (recoveries of) loan losses		1,217		(784)		(12,579)		(4,409)		(166)		(16,721)
Charge-offs and sales		—		—		(3,266)		(2,680)		—		(5,946)
Recoveries		—		—		—		76		—		76
Ending balance	$	14,398	$	6,480	$	7,910	$	13,566	$	2,478	$	44,832
Three Months Ended June 30, 2023
Beginning balance	$	40,319	$	9,085	$	373	$	15,110	$	2,893	$	67,780
Provision for loan losses		3,538		4,523		7,935		2,012		466		18,474
PCD(1)		—		—		27,617		—		—		27,617
Charge-offs and sales		—		(1,404)		—		(402)		—		(1,806)
Recoveries		—		—		—		89		—		89
Ending balance	$	43,857	$	12,204	$	35,925	$	16,809	$	3,359	$	112,154
Six Months Ended June 30, 2024
Beginning balance	$	36,241	$	13,598	$	30,870	$	17,867	$	3,029	$	101,605
Recoveries of loan losses		(21,843)		(4,489)		(18,215)		(246)		(485)		(45,278)
Charge-offs and sales		—		(2,629)		(4,745)		(4,259)		(66)		(11,699)
Recoveries		—		—		—		204		—		204
Ending balance	$	14,398	$	6,480	$	7,910	$	13,566	$	2,478	$	44,832
Six Months Ended June 30, 2023
Beginning balance	$	49,905	$	6,531	$	17,334	$	14,299	$	2,450	$	90,519
Provision for (recoveries of) loan losses		(5,437)		7,177		7,872		3,407		909		13,928
PCD (1)		—		—		27,617		—		—		27,617
Charge-offs and sales		(611)		(1,504)		(16,898)		(1,015)		—		(20,028)
Recoveries		—		—		—		118		—		118
Ending balance	$	43,857	$	12,204	$	35,925	$	16,809	$	3,359	$	112,154
(1) Refer to Note 5 for further details on assets acquired and liabilities assumed in connection with the Broadmark Merger.

Schedule of reconciliation between purchase price with par value of purchased loans

(in thousands)	Preliminary Purchase Price Allocation		Measurement Period Adjustments		Updated Purchase Price Allocation
UPB	$	244,932	$	38,750	$	283,682
Allowance for credit losses		(27,617)		(5,245)		(32,862)
Non-credit discount		(6,035)		(3,342)		(9,377)
Purchase price of loans classified as PCD	$	211,280	$	30,163	$	241,443

Non-accrual loans

Accounts, Notes, Loans and Financing Receivable [Line Items]

Schedule of non-accrual loans

(in thousands)	June 30, 2024		December 31, 2023
Non-accrual loans
With an allowance	$	178,046	$	607,292
Without an allowance		14,345		26,709
Total recorded carrying value of non-accrual loans	$	192,391	$	634,001
Allowance for loan losses related to non-accrual loans	$	(9,499)	$	(50,796)
UPB of non-accrual loans	$	203,666	$	688,282
	June 30, 2024		June 30, 2023
Interest income on non-accrual loans for the three months ended	$	52	$	6,841
Interest income on non-accrual loans for the six months ended	$	1,338	$	14,690

Geographical concentration

Accounts, Notes, Loans and Financing Receivable [Line Items]

Schedule of concentration risk of loans secured by real estate

Geographic Concentration (% of UPB)	June 30, 2024		December 31, 2023
Texas	18.8	%	18.6	%
California	11.8		11.4
Arizona	7.5		6.1
Florida	7.3		6.4
Georgia	6.8		7.1
Oregon	6.7		5.9
New York	4.6		4.8
North Carolina	4.3		4.1
Ohio	3.4		3.2
Washington	2.8		3.4
Other	26.0		29.0
Total	100.0	%	100.0	%

Collateral concentration

Accounts, Notes, Loans and Financing Receivable [Line Items]

Schedule of concentration risk of loans secured by real estate

The table below presents the collateral type concentration of loans, net.

Collateral Concentration (% of UPB)	June 30, 2024		December 31, 2023
Multi-family	62.3	%	60.9	%
SBA	13.0		11.4
Mixed Use	8.5		8.4
Industrial	5.3		4.3
Retail	4.1		4.3
Office	3.5		4.4
Lodging	1.6		1.6
Other	1.7		4.7
Total	100.0	%	100.0	%

The table below presents the collateral type concentration of SBA loans within loans, net.

Collateral Concentration (% of UPB)	June 30, 2024		December 31, 2023
Lodging	22.0	%	23.4	%
Gasoline Service Stations	12.7		12.8
Eating Places	6.6		6.2
Child Day Care Services	5.6		5.6
Offices of Physicians	3.7		4.1
General Freight Trucking, Local	3.2		3.5
Grocery Stores	2.3		2.3
Coin-Operated Laundries and Drycleaners	1.7		1.9
Beer, Wine, and Liquor Stores	1.3		1.3
Funeral Service & Crematories	1.1		1.4
Other	39.8		37.5
Total	100.0	%	100.0	%