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Notes Receivable and Current Expected Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2020
Receivables [Abstract]  
Summary of Mezzanine Loans
The Company had the following notes receivable outstanding as of June 30, 2020 and December 31, 2019 ($ in thousands):
 
 
Outstanding loan amount
 
 
 
 
 
Interest compounding
Development Project
 
June 30,
2020
 
December 31,
2019
 
Maximum loan commitment
 
Interest rate
The Residences at Annapolis Junction
 
$
42,767

 
$
40,049

 
$
48,105

 
10.0
%
(a) 
Monthly
Delray Plaza
 
15,484

 
12,995

 
17,000

 
15.0
%
(a)(b) 
Annually
Nexton Square
 
16,309

 
15,097

 
17,000

 
10.0
%
 
Monthly
Interlock Commercial
 
79,082

 
59,224

 
103,000

 
15.0
%
 
None
Solis Apartments at Interlock
 
27,263

 
25,588

 
41,100

 
13.0
%
 
Annually
Total mezzanine
 
180,905

 
152,953

 
$
226,205

 
 
 
 
Other notes receivable
 
14

 
1,147

 
 
 
 
 
 
Notes receivable guarantee premium
 
4,411

 
5,271

 
 
 
 
 
 
Allowance for credit losses
 
(3,085
)

—

 
 
 
 
 
 
Total notes receivable
 
$
182,245

 
$
159,371

 
 
 
 
 
 

________________________________________
(a) Loan was placed on nonaccrual status effective April 1, 2020.
(b) $2.0 million of this loan is subject to an interest rate of 6%.
Summary of Interest Income The Company recognized interest income for the three and six months ended June 30, 2020 and 2019 as follows (in thousands):
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
Development Project
 
2020
 
2019
 
2020
 
2019
 
1405 Point
 
$
—

 
$
173

 
$
—

 
$
783

 
North Decatur Square
 
—

 
693

 
—

 
1,331

 
The Residences at Annapolis Junction
 
—

(a) 
2,173

(b) 
2,468

(a)(c) 
4,196

(b) 
Delray Plaza
 
—

(a) 
414

 
489

(a) 
724

 
Nexton Square
 
405

 
524

 
797

 
1,033

 
Interlock Commercial
 
3,157

(c) 
1,086

 
6,175

(c) 
1,830

 
Solis Apartments at Interlock
 
838

 
508

 
1,675

 
972

 
Total mezzanine
 
4,400

 
5,571

 
11,604

 
10,869

 
Other interest income
 
12

 
22

 
34

 
43

 
Total interest income
 
$
4,412

 
$
5,593

 
$
11,638

 
$
10,912

 
________________________________________
(a) Loan was placed on nonaccrual status effective April 1, 2020.
(b) Includes amortization of the $5.0 million loan modification fee paid by the borrower in November 2018.
(c) Includes partial recognition of interest income related to an exit fee that is due upon repayment of the loan.
Financing Receivable Credit Quality Indicators
The following table presents amortized cost basis of the portfolio by year of origination and risk rating as of June 30, 2020 (in thousands):

 
 
Year of Origination
Risk Ratings
 
2020
 
2019
 
2018
 
2017
 
2016
 
Total
Pass
 
$
—

 
$
—

 
$
124,939

 
$
—

 
$
—

 
$
124,939

Special Mention
 
—

 
—

 
—

 
—

 
—

 
—

Substandard
 
—

 
—

 
—

 
14,776

 
42,516

 
57,292

Total amortized cost basis
 
$
—

 
$
—

 
$
124,939

 
$
14,776

 
$
42,516

 
$
182,231
Allowance for Credit Losses on Financing Receivables Changes in the allowance for the six months ended June 30, 2020 were as follows (in thousands):
 
 
Six Months Ended 
June 30, 2020
Beginning balance (December 31, 2019)
 
$
—

Cumulative effect of accounting change
 
2,825

Unrealized credit loss provision
 
260

Ending balance
 
$
3,085