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Loans Held for Investment
 6 Months Ended
Jun. 30, 2020
Receivables [Abstract]  
Loans Held for Investment Loans Held for Investment
We originate first mortgage whole loans secured by middle market and transitional CRE, which are generally to be held as long term investments. We funded our existing loan portfolio using cash on hand and advancements under our master repurchase facility with Citibank, N.A., or Citibank, or our Master Repurchase Facility, and other debt financing. See Note 5 for further information regarding our Master Repurchase Facility.

The table below details overall statistics for our loan portfolio as of June 30, 2020 and December 31, 2019:    
 
 
Balance at June 30, 2020
 
Balance at December 31, 2019
Number of loans
 
14

 
12

Total loan commitments
 
$
296,050

 
$
260,167

Unfunded loan commitments (1)
 
$
17,566

 
$
17,268

Principal balance
 
$
278,484

 
$
242,899

Unamortized net deferred origination fees
 
$
(259
)
 
$
(821
)
Carrying value
 
$
278,225

 
$
242,078

Weighted average coupon rate
 
5.70
%
 
5.76
%
Weighted average all in yield (2)
 
6.39
%
 
6.41
%
Weighted average maximum maturity (years) (3)
 
3.1

 
3.6

Weighted average LTV (4)
 
68
%
 
70
%
(1)
Unfunded loan commitments are primarily used to finance property and building improvements and leasing capital and are generally funded over the term of the loan.
(2)
All in yield represents the yield on a loan, excluding any repurchase debt funding applicable to the loan and including amortization of deferred fees over the initial term of the loan.
(3)
Maximum maturity assumes all borrower loan extension options have been exercised, which options are subject to the borrower meeting certain conditions.
(4)
LTV represents the initial loan amount divided by the underwritten in-place value at closing.
The table below details our loan activities during the three months ended June 30, 2020:
 
 
Principal Balance
 
Deferred Fees
 
Carrying Value
Balance at March 31, 2020
 
$
272,234

 
$
(747
)
 
$
271,487

Additional funding
 
6,250

 
—

 
6,250

Net amortization of deferred fees
 
—

 
488

 
488

Balance at June 30, 2020
 
$
278,484

 
$
(259
)
 
$
278,225


The table below details our loan activities during the six months ended June 30, 2020:
 
 
Principal Balance
 
Deferred Fees
 
Carrying Value
Balance at December 31, 2019
 
$
242,899

 
$
(821
)
 
$
242,078

Additional funding
 
9,459

 
—

 
9,459

Originations
 
26,126

 
(388
)
 
25,738

Net amortization of deferred fees
 
—

 
950

 
950

Balance at June 30, 2020
 
$
278,484

 
$
(259
)
 
$
278,225




    
The tables below detail the property type and geographic location of the properties securing the loans in our portfolio as of June 30, 2020 and December 31, 2019:
 
 
June 30, 2020
 
December 31, 2019
Property Type
 
Number of Loans
 
Carrying Value
 
Percentage of Value
 
Number of Loans
 
Carrying Value
 
Percentage of Value
Office
 
5

 
$
90,427

 
32
%
 
4

 
$
71,446

 
30
%
Hotel
 
1

 
23,848

 
9
%
 
1

 
23,101

 
10
%
Retail
 
3

 
45,676

 
16
%
 
3

 
43,782

 
18
%
Multifamily
 
3

 
69,391

 
25
%
 
3

 
68,911

 
28
%
Industrial
 
2

 
48,883

 
18
%
 
1

 
34,838

 
14
%

 
14

 
$
278,225

 
100
%
 
12

 
$
242,078

 
100
%
 
 
June 30, 2020
 
December 31, 2019
Geographic Location
 
Number of Loans
 
Carrying Value
 
Percentage of Value
 
Number of Loans
 
Carrying Value
 
Percentage of Value
East
 
5

 
$
104,461

 
37
%
 
4

 
$
90,047

 
37
%
South
 
5

 
105,385

 
38
%
 
5

 
103,295

 
43
%
West
 
1

 
10,503

 
4
%
 
1

 
9,014

 
4
%
Midwest
 
3

 
57,876

 
21
%
 
2

 
39,722

 
16
%

 
14

 
$
278,225

 
100
%
 
12

 
$
242,078

 
100
%

Loan Risk Ratings
As further described in Note 2, we evaluate each of our loans for impairment at least quarterly by assessing a variety of risk factors in relation to each loan and assigning a risk rating to each loan based on those factors. The following table allocates the carrying value of our loan portfolio at June 30, 2020 and December 31, 2019 based on our internal risk rating policy:
 
 
June 30, 2020
 
December 31, 2019
Risk Rating
 
Number of Loans
 
Carrying Value
 
Number of Loans
 
Carrying Value
1
 
—
 
$
—

 
—
 
$
—

2
 
1
 
24,547

 
1
 
24,462

3
 
7
 
137,789

 
11
 
217,616

4
 
6
 
115,889

 
—
 
—

5
 
—
 
—

 
—
 
—

 
 
14
 
$
278,225

 
12
 
$
242,078


The weighted average risk rating of our loans by carrying value was 3.5 and 2.9 as of June 30, 2020 and December 31, 2019, respectively. The COVID-19 pandemic has negatively impacted some of our borrowers’ business operations or tenants, particularly in the cases of our retail and hospitality collateral, which are the types of properties that have been significantly negatively impacted by the pandemic. We expect that those negative impacts may continue and may apply to other borrowers and/or their tenants. Therefore, certain of our borrowers’ business plans will likely take longer to execute than initially expected and certain of our borrowers may be unable to pay their debt service obligations owed and due to us as currently scheduled or at all. As a result, at June 30, 2020, we had six loans representing 42% of the carrying value of our loan portfolio with a loan risk rating of “4” or “higher risk." These six loans were downgraded from a risk rating of "3" or "acceptable risk" during the three months ended March 31, 2020, and we did not downgrade any loans during the three months ended June 30, 2020. We did not have any impaired loans or nonaccrual loans as of June 30, 2020 or December 31, 2019.

As of August 3, 2020, all of our borrowers had paid all of their debt service obligations owed and due to us and none of the loans included in our investment portfolio were in default.