XML 34 R22.htm IDEA: XBRL DOCUMENT v3.22.2
Loans Portfolio (Tables)
 6 Months Ended
Jun. 30, 2022
Receivables [Abstract]  
Schedule of Loans and Financing Receivable

Our loans receivable portfolio as of June 30, 2022 was comprised of the following loans ($ in thousands, except for number of loans):

 

 

 

Number of
Loans

 

Loan Commitment(4)

 

 

Unpaid Principal Balance

 

 

Carrying
Value

 

 

Weighted Average Spread(2)

 

 

Weighted Average Interest Rate(3)

 

Loans receivable held-for-investment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior loans(1)

 

65

 

$

8,484,128

 

 

$

6,821,539

 

 

$

6,771,087

 

 

 

+ 3.91%

 

 

 

5.75

%

Subordinate loans

 

3

 

 

139,119

 

 

 

136,384

 

 

 

136,933

 

 

 

+ 10.61%

 

 

 

12.49

%

 

 

68

 

 

8,623,247

 

 

 

6,957,923

 

 

 

6,908,020

 

 

 

+ 4.05%

 

 

 

5.88

%

Fixed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior loans(1)

 

4

 

$

60,335

 

 

$

55,721

 

 

$

55,585

 

 

N/A

 

 

 

8.32

%

Subordinate loans

 

2

 

 

125,927

 

 

 

125,927

 

 

 

125,651

 

 

N/A

 

 

 

8.49

%

 

 

6

 

 

186,262

 

 

 

181,648

 

 

 

181,236

 

 

 

 

 

 

8.44

%

Total/Weighted Average

 

74

 

$

8,809,509

 

 

$

7,139,571

 

 

$

7,089,256

 

 

N/A

 

 

 

5.94

%

Current expected credit loss reserve

 

 

 

 

 

 

 

 

 

 

(59,400

)

 

 

 

 

 

 

Loans receivable held-for-investment, net

 

 

 

 

 

 

 

 

$

7,029,856

 

 

 

 

 

 

 

 

 

(1)
Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans.
(2)
The weighted average spread is expressed as a spread over the relevant floating benchmark rates. One-month LIBOR as of June 30, 2022 was 1.79%. One-month Secured Overnight Financing Rate ("SOFR") as of June 30, 2022 was 1.69%. Weighted average is based on outstanding principal as of June 30, 2022.
(3)
Reflects the weighted average interest rate based on the applicable floating benchmark rate (if applicable), including LIBOR/SOFR floors (if applicable). Weighted average is based on outstanding principal as of June 30, 2022 and includes loans on non-accrual status.
(4)
Loan commitment represents principal outstanding plus remaining unfunded loan commitments.

Our loans receivable portfolio as of December 31, 2021 was comprised of the following loans ($ in thousands, except for number of loans):

 

 

Number of
Loans

 

Loan Commitment(5)

 

 

Unpaid Principal Balance

 

 

Carrying
Value

 

 

Weighted Average Spread(2)

 

 

Weighted Average Interest Rate(4)

 

Loans receivable held-for-investment:

 

 

 

 

 

 

 

 

 

 

Variable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior loans(1,3)

 

51

 

$

7,163,032

 

 

$

6,119,619

 

 

$

6,085,351

 

 

 

+ 4.06%

 

 

 

5.16

%

Subordinate loans

 

3

 

 

137,079

 

 

 

133,119

 

 

 

133,552

 

 

 

+ 10.38%

 

 

 

11.37

%

 

 

54

 

 

7,300,111

 

 

 

6,252,738

 

 

 

6,218,903

 

 

 

+ 4.19%

 

 

 

5.29

%

Fixed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior loans(1)

 

3

 

$

62,573

 

 

$

62,573

 

 

$

62,782

 

 

N/A

 

 

 

10.09

%

Subordinate loans

 

2

 

 

125,927

 

 

 

125,927

 

 

 

125,620

 

 

N/A

 

 

 

8.49

%

 

 

5

 

 

188,500

 

 

 

188,500

 

 

 

188,402

 

 

 

 

 

 

9.02

%

Total/Weighted Average

 

59

 

$

7,488,611

 

 

$

6,441,238

 

 

$

6,407,305

 

 

N/A

 

 

 

5.40

%

Current expected credit loss reserve

 

 

 

 

 

 

 

 

 

 

(67,010

)

 

 

 

 

 

 

Loans receivable held-for-investment, net

 

 

$

6,340,295

 

 

 

 

 

 

 

 

(1)
Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans.
(2)
The weighted average spread is expressed as a spread over the relevant floating benchmark rates. One-month LIBOR as of December 31, 2021 was 0.10%. Weighted average is based on outstanding principal as of December 31, 2021.
(3)
Includes a fixed rate loan with an outstanding principal balance of $33.5 million and a loan commitment of $39.7 million as of December 31, 2021, which shares the same collateral as floating rate loans with an outstanding principal balance of $103.1 million and a loan commitment of $104.4 million at December 31, 2021 .
(4)
Reflects the weighted average interest rate based on the applicable floating benchmark rate (if applicable), including LIBOR floors (if applicable). Weighted average is based on outstanding principal as of December 31, 2021 and includes loans on non-accrual status.
(5)
Loan commitment represents principal outstanding plus unfunded loan commitments.
Schedule of Range of LIBOR Floors

The following table presents the range of LIBOR/SOFR floors held in our loan portfolio as of June 30, 2022 based on outstanding principal ($ in thousands):

 

One-month LIBOR/SOFR Floor Range

 

Unpaid
Principal
Balance

 

 

% of
Total

 

 

Cumulative
%

 

2.00% - 2.50%

 

$

801,963

 

 

 

11

%

 

 

11

%

1.50% - 1.99%

 

 

1,548,660

 

 

 

22

%

 

 

33

%

1.00% - 1.49%

 

 

737,854

 

 

 

10

%

 

 

43

%

0.50% - 0.99%

 

 

220,883

 

 

 

3

%

 

 

46

%

< 0.50%

 

 

2,930,047

 

 

 

41

%

 

 

87

%

No floor

 

 

718,516

 

 

 

10

%

 

 

97

%

Total Floating Rate Loans

 

 

6,957,923

 

 

 

 

 

 

 

Total Fixed Rate Loans

 

 

181,648

 

 

 

3

%

 

 

100

%

Total Loans

 

$

7,139,571

 

 

 

 

 

 

 

 
Summary of Carrying Value and Significant Characteristics of Loans Receivable on Non-accrual Status

The following table presents the carrying value and significant characteristics of our loans receivable on non-accrual status as of June 30, 2022 ($ in thousands):

Origination Date

 

Initial Maturity Date

 

Date Through Which Interest Collected

 

Risk Rating

 

 

Carrying Value

 

 

Unpaid Principal Balance

 

 

Specific CECL Reserve

 

 

Net Carrying Value

 

 

Interest Recognition Method(1)

3/29/2018

 

1/26/2021

 

7/9/2020

 

 

4

 

 

$

78,109

 

 

$

77,619

 

 

 

-

 

 

 

78,109

 

 

Cash Basis

8/2/2019

 

10/30/2021

 

11/1/2021

 

 

4

 

 

 

67,000

 

 

 

67,000

 

 

 

-

 

 

$

67,000

 

 

Cash Basis

7/1/2019

 

12/30/2020

 

7/1/2020

 

 

5

 

 

 

3,500

 

 

 

3,500

 

 

 

-

 

 

 

3,500

 

 

Cost Recovery

Total delinquent(2)

 

 

 

 

 

 

148,609

 

 

 

148,119

 

 

 

-

 

 

 

148,609

 

 

 

Total non-accrual(3)

 

 

 

 

 

$

148,609

 

 

$

148,119

 

 

$

-

 

 

$

148,609

 

 

 

Carrying value of associated financings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(33,500

)

 

 

Net carrying value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

115,109

 

 

 
(1)
No interest income was recognized on these loans for the six months ended June 30, 2022.
(2)
Excludes one additional loan with a carrying value of $105.3 million that is in maturity default and over 90 days delinquent on June 30, 2022, and one loan with a carrying value of $31.5 million that is in maturity default but current on interest payments as of June 30, 2022.
(3)
Loans classified as non-accrual represented 2.1% of the total loan portfolio at June 30, 2022, based on unpaid principal balance.

 

 

The following table presents the carrying value and significant characteristics of our loans receivable on non-accrual status as of December 31, 2021 ($ in thousands):

 

Origination Date

 

Initial Maturity Date

 

Date Through Which Interest Collected

 

Risk Rating

 

 

Carrying Value

 

 

Unpaid Principal Balance

 

 

Specific CECL Reserve

 

 

Net Carrying Value

 

 

Interest Recognition Method

5/5/2017

 

1/1/2023

 

12/1/2021

 

 

5

 

 

$

11,533

 

 

$

11,533

 

 

$

(333

)

 

$

11,200

 

 

Cost Recovery

7/10/2018

 

12/10/2023

 

12/1/2021

 

 

4

 

 

 

77,530

 

 

 

81,380

 

 

 

-

 

 

 

77,530

 

 

Cash Basis

Total current

 

 

 

 

 

 

 

89,063

 

 

 

92,913

 

 

 

(333

)

 

 

88,730

 

 

 

8/2/2019

 

10/30/2021

 

11/1/2021

 

 

4

 

 

 

67,000

 

 

 

67,000

 

 

 

-

 

 

 

67,000

 

 

Cash Basis

9/21/2018

 

10/1/2020

 

2/1/2020

 

 

4

 

 

 

116,211

 

 

 

116,020

 

 

 

-

 

 

 

116,211

 

 

Cash Basis

3/29/2018

 

1/26/2021

 

7/9/2020

 

 

4

 

 

 

76,069

 

 

 

75,579

 

 

 

-

 

 

 

76,069

 

 

Cash Basis

7/1/2019

 

12/30/2020

 

7/1/2020

 

 

5

 

 

 

15,000

 

 

 

15,000

 

 

 

(6,000

)

 

 

9,000

 

 

Cost Recovery

Total delinquent

 

 

 

 

 

 

274,280

 

 

 

273,599

 

 

 

(6,000

)

 

 

268,280

 

 

 

Total non-accrual(1)

 

 

 

 

 

$

363,343

 

 

$

366,512

 

 

$

(6,333

)

 

$

357,010

 

 

 

Carrying value of associated financings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(122,450

)

 

 

Net carrying value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

234,560

 

 

 

 

(1)
Loans classified as non-accrual and delinquent on debt service represented 4.1% of the total loan portfolio at December 31, 2021, based on unpaid principal balance.
Schedule of Loan Receivable Portfolio

Activity relating to the loans receivable portfolio for the six months ended June 30, 2022 ($ in thousands):

 

 

 

Unpaid Principal Balance

 

 

Deferred Fees

 

 

Specific CECL Allowance

 

 

Carrying Value (1)

 

Balance at December 31, 2021

 

$

6,441,238

 

 

$

(33,933

)

 

$

(6,333

)

 

$

6,400,972

 

Initial funding of new loan originations and acquisitions

 

 

1,308,536

 

 

 

—

 

 

 

—

 

 

 

1,308,536

 

Advances on existing loans

 

 

264,411

 

 

 

—

 

 

 

—

 

 

 

264,411

 

Non-cash advances in lieu of interest

 

 

30,800

 

 

 

482

 

 

 

—

 

 

 

31,282

 

Origination fees, extension fees and exit fees

 

 

—

 

 

 

(27,168

)

 

 

—

 

 

 

(27,168

)

Repayments of loans receivable

 

 

(759,661

)

 

 

—

 

 

 

—

 

 

 

(759,661

)

Repayments of non-cash advances in lieu of interest

 

 

(18,233

)

 

 

—

 

 

 

—

 

 

 

(18,233

)

Accretion of fees

 

 

—

 

 

 

10,495

 

 

 

—

 

 

 

10,495

 

Sale proceeds

 

 

(146,912

)

 

 

—

 

 

 

—

 

 

 

(146,912

)

Gain (loss) on sale

 

 

30,892

 

 

 

(191

)

 

 

—

 

 

 

30,701

 

Specific CECL Allowance

 

 

—

 

 

 

—

 

 

 

(5,272

)

 

 

(5,272

)

Principal charge-offs

 

 

(11,500

)

 

 

—

 

 

 

11,500

 

 

 

—

 

Balance at June 30, 2022

 

$

7,139,571

 

 

$

(50,315

)

 

$

(105

)

 

$

7,089,151

 

General CECL Allowance

 

 

 

 

 

 

 

 

 

 

$

(59,295

)

Carrying Value

 

 

 

 

 

 

 

 

 

 

$

7,029,856

 
(1)
Balance at December 31, 2021 does not include general CECL allowance.

Our loan participations sold as of June 30, 2022 are summarized as follows ($ in thousands):

 

 

Contractual
Maturity
Date

 

Maximum
Extension
Date

 

Borrowing Outstanding

 

 

Carrying
Value

 

 

Carrying
Value of
Collateral(1)

 

Variable:

 

 

 

 

 

 

 

 

 

 

 

 

(2)

8/1/2022

 

8/1/2023

 

 

148,322

 

 

 

148,295

 

 

 

291,353

 

 

10/18/2023

 

10/18/2024

 

 

105,930

 

 

 

105,473

 

 

 

193,033

 

Fixed:

 

 

 

 

 

 

 

 

 

 

 

 

 

12/31/2024

 

12/31/2025

 

 

20,000

 

 

 

19,719

 

 

 

143,941

 

Total

 

$

274,252

 

 

$

273,487

 

 

$

628,327

 

 

(1)
Includes all cash reserve balances held by the servicer.
(2)
Subsequent to June 30, 2022, this participation was extended to its maximum extension date.

 

Our loan participations sold as of December 31, 2021 are summarized as follows ($ in thousands):

 

 

Contractual
Maturity
Date

 

Maximum
Extension
Date

 

Borrowing Outstanding

 

 

Carrying
Value

 

 

Carrying
Value of
Collateral

 

Variable:

 

 

 

 

 

 

 

 

 

 

 

 

 

8/1/2022

 

8/1/2023

 

 

148,322

 

 

 

148,133

 

 

 

290,783

 

Fixed:

 

 

 

 

 

 

 

 

 

 

 

 

 

12/31/2024

 

12/31/2025

 

 

20,000

 

 

 

19,611

 

 

 

130,061

 

Total

 

$

168,322

 

 

$

167,744

 

 

$

420,844

 
Schedule of Interests In Loans Receivable Held For Investment

Our interests in loans receivable portfolio as of December 31, 2021 was comprised of the following loan ($ in thousands):

 

 

 

Number of
Loans

 

Loan Commitment(3)

 

 

Unpaid Principal Balance

 

 

Carrying Value

 

 

Stated Rate (2)

 

Interest Rate (4)

Senior loans(1)

 

1

 

$

200,727

 

 

$

161,566

 

 

$

161,864

 

 

L + 4.25%

 

5.50%

Current expected credit loss reserve

 

 

 

 

 

 

 

(14

)

 

 

 

 

Interests in loans receivable held-for-investment, net

 

 

 

$

161,850

 

 

 

 

 

 

(1)
Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans.
(2)
One-month LIBOR as of December 31, 2021 was 0.10% .
(3)
Loan commitment represents principal outstanding plus unfunded loan commitments.
(4)
Reflects the interest rate based on the applicable floating benchmark rate (if applicable), including LIBOR/SOFR floors (if applicable).
Schedule of Interests In Loans Receivable Portfolio

Activity relating to the interests in loans receivable portfolio for the six months ended June 30, 2022 ($ in thousands):

 

 

 

Unpaid Principal Balance

 

 

Deferred Fees

 

 

Carrying Value (1)

 

Balance at December 31, 2021

 

$

161,566

 

 

$

298

 

 

$

161,864

 

Advances on existing interests in loans receivable

 

 

14,653

 

 

 

—

 

 

 

14,653

 

Non-cash advances in lieu of interest

 

 

2,427

 

 

 

—

 

 

 

2,427

 

Origination fees, extension fees and exit fees

 

 

—

 

 

 

(502

)

 

 

(502

)

Repayments of interests in loans receivable

 

 

(165,468

)

 

 

—

 

 

 

(165,468

)

Repayment of non-cash advances in lieu of interest

 

 

(13,178

)

 

 

—

 

 

 

(13,178

)

Accretion of origination fees, net

 

 

—

 

 

 

204

 

 

 

204

 

Balance at June 30, 2022

 

$

—

 

 

$

—

 

 

$

—

 

 

(1)
Balance at December 31, 2021 does not include general CECL allowance.
Schedule of Overall Statistics for Loans Receivable and Interests in Loans Receivable Portfolio

The following table details overall statistics for our loans receivable and interests in loans receivable portfolio ($ in thousands):

 

 

 

Loans Receivable

 

 

Interests in Loans Receivable

 

 

 

June 30, 2022

 

 

December 31, 2021

 

 

June 30, 2022

 

December 31, 2021

 

Weighted average yield to maturity

 

 

6.1

%

 

 

5.6

%

 

N/A

 

 

6.7

%

Weighted average term to initial maturity

 

1.9 years

 

 

1.8 years

 

 

N/A

 

0.1 year

 

Weighted average term to fully extended maturity

 

3.6 years

 

 

3.3 years

 

 

N/A

 

1.6 years

 

 
Schedule of Loans Receivable and Interests in Portfolio By Loan Type

The following table presents our loans receivable and interests in loans receivable portfolio by loan type, as well as property type and geographic location of the properties collateralizing these loans as of June 30, 2022 and December 31, 2021 ($ in thousands):

 

 

 

June 30, 2022

 

 

December 31, 2021

 

Loan Type

 

Carrying Value

 

 

Percentage

 

 

Carrying Value

 

 

Percentage

 

Senior loans(1)

 

$

6,826,672

 

 

 

96

%

 

$

6,309,997

 

 

 

96

%

Subordinate loans

 

 

262,584

 

 

 

4

%

 

 

259,172

 

 

 

4

%

 

 

$

7,089,256

 

 

 

100

%

 

$

6,569,169

 

 

 

100

%

Current expected credit loss reserve

 

$

(59,400

)

 

 

 

 

$

(67,024

)

 

 

 

 

 

$

7,029,856

 

 

 

 

 

$

6,502,145

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Type

 

Carrying Value

 

 

Percentage

 

 

Carrying Value

 

 

Percentage

 

Office

 

$

1,033,542

 

 

 

15

%

 

$

1,113,805

 

 

 

17

%

Mixed-use

 

 

625,146

 

 

 

9

%

 

 

734,613

 

 

 

11

%

Hospitality

 

 

1,252,130

 

 

 

17

%

 

 

1,176,842

 

 

 

18

%

Land

 

 

519,130

 

 

 

7

%

 

 

631,713

 

 

 

10

%

Multifamily

 

 

2,878,810

 

 

 

41

%

 

 

1,986,628

 

 

 

30

%

For Sale Condo

 

 

515,624

 

 

 

7

%

 

 

710,660

 

 

 

11

%

Other

 

 

264,874

 

 

 

4

%

 

 

214,908

 

 

 

3

%

 

 

$

7,089,256

 

 

 

100

%

 

$

6,569,169

 

 

 

100

%

Current expected credit loss reserve

 

$

(59,400

)

 

 

 

 

$

(67,024

)

 

 

 

 

 

$

7,029,856

 

 

 

 

 

$

6,502,145

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Geographic Location

 

Carrying Value

 

 

Percentage

 

 

Carrying Value

 

 

Percentage

 

United States

 

 

 

 

 

 

 

 

 

 

 

 

Northeast

 

$

2,010,624

 

 

 

29

%

 

$

2,734,550

 

 

 

41

%

Mid Atlantic

 

 

1,060,559

 

 

 

15

%

 

 

1,235,527

 

 

 

19

%

Midwest

 

 

448,772

 

 

 

6

%

 

 

309,298

 

 

 

5

%

Southeast

 

 

1,027,054

 

 

 

14

%

 

 

836,904

 

 

 

13

%

Southwest

 

 

687,724

 

 

 

10

%

 

 

269,461

 

 

 

4

%

West

 

 

1,845,318

 

 

 

26

%

 

 

1,156,896

 

 

 

18

%

Other

 

 

9,205

 

 

 

0

%

 

 

26,533

 

 

 

0

%

 

 

$

7,089,256

 

 

 

100

%

 

$

6,569,169

 

 

 

100

%

Current expected credit loss reserve

 

$

(59,400

)

 

 

 

 

$

(67,024

)

 

 

 

 

 

$

7,029,856

 

 

 

 

 

$

6,502,145

 

 

 

 

 

 

(1)
Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans and pari passu participations in senior mortgage loans.
Summarizes of Interest and Accretion Income from Loans Receivable

The following table summarizes our interest and accretion income from loans receivable held-for-investment, from interests in loans receivable held-for-investment, and from interest on cash balances, for the three and six months ended June 30, 2022 and 2021 ($ in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30, 2022

 

 

June 30, 2021

 

 

June 30, 2022

 

 

June 30, 2021

 

Coupon interest

 

$

92,461

 

 

$

98,123

 

 

$

178,645

 

 

$

197,858

 

Interest on cash and cash equivalents

 

 

341

 

 

 

8

 

 

 

343

 

 

 

27

 

Accretion of fees

 

 

6,191

 

 

 

6,516

 

 

 

10,699

 

 

 

12,565

 

Total interest and related income

 

$

98,993

 

 

$

104,647

 

 

$

189,687

 

 

$

210,450

 
Market Internal Risk Rating Benefit Activity

The following table allocates the principal balance and carrying value of the loans receivable and interests in loans receivable based on our internal risk ratings ($ in thousands):

 

June 30, 2022

Risk Rating

 

Number of Loans

 

Unpaid Principal Balance

 

 

Carrying Value

 

 

% of Total of Unpaid Principal Balance

1

 

1

 

$

257,963

 

 

$

256,758

 

 

4%

2

 

1

 

 

927

 

 

 

927

 

 

0%

3

 

60

 

 

5,669,626

 

 

 

5,623,289

 

 

79%

4

 

10

 

 

1,201,850

 

 

 

1,199,077

 

 

17%

5

 

2

 

 

9,205

 

 

 

9,205

 

 

0%

 

 

74

 

$

7,139,571

 

 

$

7,089,256

 

 

 

Current expected credit loss reserve

 

 

 

 

 

(59,400

)

 

 

 

 

 

 

 

 

 

$

7,029,856

 

 

 

 

December 31, 2021

Risk Rating

 

Number of Loans

 

Unpaid Principal Balance

 

 

Carrying Value

 

 

% of Total of Unpaid Principal Balance

1

 

1

 

$

35,721

 

 

$

35,699

 

 

1%

2

 

6

 

 

705,886

 

 

 

703,714

 

 

10%

3

 

42

 

 

4,678,785

 

 

 

4,649,076

 

 

71%

4

 

9

 

 

1,155,879

 

 

 

1,154,147

 

 

18%

5

 

2

 

 

26,533

 

 

 

26,533

 

 

0%

 

 

60

 

$

6,602,804

 

 

$

6,569,169

 

 

 

Current expected credit loss reserve

 

 

 

 

(67,024

)

 

 

 

 

 

 

 

 

 

$

6,502,145

 

 

 

 
Schedule of Activity In Allowance For Loan Losses

The following table illustrates the quarterly changes in the current expected credit loss reserve for the six months ended June 30, 2022 and 2021 ($ in thousands):

 

 

 

 

 

 

General CECL Allowance

 

 

 

 

 

 

Specific CECL Allowance (1)

 

 

Loans Receivable Held-for-Investment

 

 

Interests in Loans Receivable Held-for-Investment

 

 

Accrued Interest Receivable

 

 

Unfunded Loan Commitments (2)

 

 

Total

 

Total current expected credit loss reserve, December 31, 2020

 

$

6,000

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

6,000

 

Initial CECL allowance, January 1, 2021

 

 

-

 

 

 

64,274

 

 

 

406

 

 

 

357

 

 

 

13,214

 

 

 

78,251

 

Increase (reversal) in current credit loss reserve

 

 

-

 

 

 

1,547

 

 

 

(141

)

 

 

(14

)

 

 

(1,577

)

 

 

(185

)

Total current expected credit loss reserve, March 31, 2021

 

$

6,000

 

 

$

65,821

 

 

$

265

 

 

$

343

 

 

$

11,637

 

 

$

84,066

 

Increase (reversal) in current credit loss reserve

 

 

500

 

 

 

(3,954

)

 

 

270

 

 

 

(32

)

 

 

(4,704

)

 

 

(7,922

)

Total current expected credit loss reserve, June 30, 2021

 

$

6,500

 

 

$

61,867

 

 

$

535

 

 

$

311

 

 

$

6,933

 

 

$

76,144

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current expected credit loss reserve, December 31, 2021

 

$

6,333

 

 

$

60,677

 

 

$

14

 

 

$

218

 

 

$

6,286

 

 

$

73,528

 

Increase (reversal) in current credit loss reserve

 

 

(133

)

 

 

(1,269

)

 

 

28

 

 

 

(218

)

 

 

3,694

 

 

 

2,102

 

Total current expected credit loss reserve, March 31, 2022

 

$

6,200

 

 

$

59,408

 

 

$

42

 

 

 

—

 

 

$

9,980

 

 

$

75,630

 

Principal charge-offs

 

 

(11,500

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(11,500

)

Increase (reversal) in current credit loss reserve

 

 

5,405

 

 

 

(113

)

 

 

(42

)

 

 

—

 

 

 

3,280

 

 

 

8,530

 

Total current expected credit loss reserve, June 30, 2022

 

$

105

 

 

$

59,295

 

 

$

—

 

 

$

—

 

 

$

13,260

 

 

$

72,660

 

Percent of Unpaid Principal Balance at June 30, 2022

 

 

 

 

 

 

1.0

%

 

(1)
As of December 31, 2020, amounts represent specific loan loss provisions recorded on assets before the adoption of ASU 2016-13. After the adoption of ASU 2016-13 on January 1, 2021, amounts represent Specific CECL allowance.
(2)
The CECL allowance for unfunded commitments is included in other liabilities on the consolidated balance sheets.
Schedule of Carrying Value of Loan Portfolio Based on Internal Risk Ratings

Our primary credit quality indicator is our internal risk ratings, which are further discussed above. The following table presents the amortized cost basis of our loans receivable as of June 30, 2022 by year of origination and risk rating ($ in thousands):

 

 

 

 

Amortized Cost Basis by Origination Year

 

Risk Rating

 

Number of Loans

 

Amortized Cost Basis

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

1

 

1

 

$

256,758

 

 

$

-

 

 

$

256,758

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

2

 

1

 

 

927

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

927

 

 

 

-

 

3

 

60

 

 

5,623,289

 

 

 

1,338,025

 

 

 

1,946,507

 

 

 

80,614

 

 

 

1,653,947

 

 

 

506,739

 

 

 

97,457

 

4

 

10

 

 

1,199,077

 

 

 

-

 

 

 

-

 

 

 

198,847

 

 

 

221,081

 

 

 

779,149

 

 

 

-

 

5

 

2

 

 

20,705

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

15,000

 

 

 

-

 

 

 

5,705

 

Current period charge-offs

 

 

 

 

(11,500

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(11,500

)

 

 

-

 

 

 

-

 

 

 

74

 

$

7,089,256

 

 

$

1,338,025

 

 

$

2,203,265

 

 

$

279,461

 

 

$

1,878,528

 

 

$

1,286,815

 

 

$

103,162