CURRENT EXPECTED CREDIT LOSSES (Tables)

6 Months Ended

Jun. 30, 2022

Credit Loss [Abstract]

Financing receivable, allowance for credit loss

Activity related to the CECL Reserve for outstanding balances on the Company’s loans held for investment as of and for the three and six months ended June 30, 2022 was as follows ($ in thousands):

Balance at March 31, 2022	$	20,452
Provision for current expected credit losses	7,161
Write-offs	—
Recoveries	—
Balance at June 30, 2022 (1)	$	27,613
Balance at December 31, 2021 (1)	$	23,939
Provision for current expected credit losses	3,674
Write-offs	—
Recoveries	—
Balance at June 30, 2022 (1)	$	27,613

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(1)     The CECL Reserve related to outstanding balances on loans held for investment is recorded within current expected credit loss reserve in the Company's consolidated balance sheets.

Current Expected Credit Loss Reserve for Unfunded Loan Commitments    

    Activity related to the CECL Reserve for unfunded commitments on the Company’s loans held for investment as of and for the three and six months ended June 30, 2022 was as follows ($ in thousands):

Balance at March 31, 2022 (1)	$	4,201
Provision for current expected credit losses	607
Write-offs	—
Recoveries	—
Balance at June 30, 2022 (1)	$	4,808
Balance at December 31, 2021 (1)	$	1,308
Provision for current expected credit losses	3,500
Write-offs	—
Recoveries	—
Balance at June 30, 2022 (1)	$	4,808

__________________________

(1)     The CECL Reserve related to unfunded commitments on loans held for investment is recorded within other liabilities in the Company's consolidated balance sheets.

Schedule of company loan risk definitions

Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from less risk to greater risk, which ratings are defined as follows:

Ratings	Definition
1	Very Low Risk
2	Low Risk
3	Medium Risk
4	High Risk/Potential for Loss: Asset performance is trailing underwritten expectations. Loan at risk of impairment without material improvement to performance
5	Impaired/Loss Likely: A loan that has a significantly increased probability of default and principal loss

Financing receivable credit quality indicators

As of June 30, 2022, the carrying value, excluding the CECL Reserve, of the Company’s loans held for investment within each risk rating by year of origination is as follows ($ in thousands):

	2022		2021		2020		2019		2018		Prior		Total
Risk rating:
1	$	18,937	$	28,515	$	—	$	33,966	$	—	$	—	$	81,418
2	123,646		377,227		—		83,976		—		34,916		619,765
3	260,682		575,742		322,152		263,545		170,004		147,599		1,739,724
4	63,428		—		—		—		101,558		—		164,986
5	—		—		—		—		—		—		—
Total	$	466,693	$	981,484	$	322,152	$	381,487	$	271,562	$	182,515	$	2,605,893