XML 39 R23.htm IDEA: XBRL DOCUMENT v3.22.0.1
Mortgage Notes Receivable (Tables)
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Schedule of mortgage notes receivable

The following table reconciles outstanding mortgage loan commitments to outstanding balance of mortgage notes receivable as of December 31, 2021 and 2020:

 

(dollars in thousands)

 

December 31, 2021

 

 

December 31, 2020

 

Total loan commitments

 

$

1,489,055

 

 

$

1,245,963

 

Less:

 

 

 

 

 

 

Construction holdbacks(1)

 

 

524,462

 

 

 

356,026

 

Interest reserves(1)

 

 

39,880

 

 

 

29,817

 

Private REIT participation(2)

 

 

—

 

 

 

37,729

 

Total principal outstanding for our mortgage notes receivable

 

 

924,713

 

 

 

822,391

 

Less:

 

 

 

 

 

 

Allowance for credit losses(3)

 

 

10,394

 

 

 

10,590

 

Deferred origination and amendment fees

 

 

12,969

 

 

 

13,315

 

Mortgage notes receivable, net

 

$

901,350

 

 

$

798,486

 

 

 

(1)
Includes construction holdbacks of $40.4 million and interest reserves of $4.3 million on participating interests sold to the Private REIT as of December 31, 2020. As of December 31, 2021, there were no outstanding participations as a result of the liquidation of the Private REIT and purchase of all outstanding participations by the Company. Refer to Note 13 for details.
(2)
The Private REIT’s participations in loans originated by us met the characteristics of participating interests and the criterion for sale accounting and therefore, were derecognized from our consolidated financial statements. As of December 31, 2021, there were no outstanding participations as a result of the liquidation of the Private REIT and purchase of all outstanding participations by the Company. Refer to Note 13 for details.
(3)
As of December 31, 2021, $0.9 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet.
Schedule of activity in the CECL Allowance

The following tables summarize the activity in the CECL allowance during the years ended December 31, 2021 and 2020:

 

 

 

CECL Allowance

 

(dollars in thousands)

 

Funded

 

 

Unfunded (2)

 

 

Total

 

CECL allowance as of December 31, 2020

 

$

10,590

 

 

$

—

 

 

$

10,590

 

Provision for credit losses, net

 

 

5,275

 

 

 

904

 

 

 

6,179

 

Charge-offs(1)

 

 

(5,471

)

 

 

—

 

 

 

(5,471

)

CECL allowance as of December 31, 2021

 

$

10,394

 

 

$

904

 

 

$

11,298

 

 

(dollars in thousands)

 

CECL Allowance

 

Loan loss reserve as of December 31, 2019

 

$

4,096

 

Adoption of ASU 2016-13(3)

 

 

1,975

 

Provision for credit losses, net

 

 

6,722

 

Charge-offs(1)

 

 

(2,203

)

CECL allowance as of December 31, 2020

 

$

10,590

 

 

 

(1)
Resulting from either loan repayments where the proceeds are less than the principal outstanding or transfers to investment in real property owned upon foreclosure where the fair values of the underlying collateral are less than the principal outstanding.
(2)
CECL allowance related to unfunded commitments is presented as a liability under accounts payable and accrued liabilities in our consolidated balance sheet.
(3)
Recorded as a direct charge to stockholders’ equity, effective January 1, 2020, as a cumulative-effect of change in accounting principle.
Schedule of composition of loan portfolio

The following tables allocate the carrying value of our loan portfolio based on our internal credit quality indicators in assessing estimated credit losses and vintage of origination at the dates indicated:

 

 

 

At December 31, 2021

 

 

Year Originated (1)

 

(dollars in thousands)

 

Carrying Value

 

 

% of Portfolio

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

Prior

 

Construction Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vertical Construction

 

$

471,863

 

 

 

51.8

%

 

$

236,961

 

 

$

184,143

 

 

$

1,177

 

 

$

1,382

 

 

$

47,939

 

 

$

261

 

Investment

 

 

256,936

 

 

 

28.1

 

 

 

204,865

 

 

 

28,094

 

 

 

1,925

 

 

 

4,717

 

 

 

17,335

 

 

 

—

 

Horizontal Development

 

 

182,945

 

 

 

20.1

 

 

 

155,443

 

 

 

27,502

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

911,744

 

 

 

100.0

%

 

$

597,269

 

 

$

239,739

 

 

$

3,102

 

 

$

6,099

 

 

$

65,274

 

 

$

261

 

CECL allowance(2)

 

 

(10,394

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carrying value, net

 

$

901,350

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)
Represents the year of amendment where the loan incurred a full re-underwriting in connection with the amendment.
(2)
Includes $0.7 million in loan specific allowances for loans deemed collateral dependent based on the fair value of the underlying collateral. In addition, $0.9 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet.

 

 

 

At December 31, 2021

 

 

Year Originated (1)

 

(dollars in thousands)

 

Carrying Value

 

 

% of Portfolio

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

Prior

 

Collateral Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Lots

 

$

111,644

 

 

 

12.2

%

 

 

85,219

 

 

 

26,425

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Apartments

 

 

107,765

 

 

 

11.8

 

 

$

38,232

 

 

$

68,356

 

 

$

1,177

 

 

$

—

 

 

$

—

 

 

$

—

 

Townhomes

 

 

93,300

 

 

 

10.2

 

 

 

51,240

 

 

 

28,979

 

 

 

—

 

 

 

1,017

 

 

 

11,803

 

 

 

261

 

Mixed Use

 

 

85,929

 

 

 

9.4

 

 

 

53,530

 

 

 

30,474

 

 

 

1,925

 

 

 

—

 

 

 

—

 

 

 

—

 

Single Family Housing

 

 

87,902

 

 

 

9.5

 

 

 

84,703

 

 

 

3,049

 

 

 

—

 

 

 

—

 

 

 

150

 

 

 

—

 

Condos

 

 

64,492

 

 

 

7.1

 

 

 

8,805

 

 

 

18,227

 

 

 

—

 

 

 

1,474

 

 

 

35,986

 

 

 

—

 

Commercial

 

 

61,592

 

 

 

6.8

 

 

 

61,592

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Senior Housing

 

 

61,236

 

 

 

6.7

 

 

 

35,899

 

 

 

25,337

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Storage

 

 

56,481

 

 

 

6.2

 

 

 

56,481

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Unentitled Land

 

 

46,019

 

 

 

5.0

 

 

 

42,411

 

 

 

—

 

 

 

—

 

 

 

3,608

 

 

 

—

 

 

 

—

 

Entitled Land

 

 

45,098

 

 

 

4.9

 

 

 

27,763

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

17,335

 

 

 

—

 

Hotel

 

 

31,665

 

 

 

3.5

 

 

 

4,886

 

 

 

26,779

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Offices

 

 

15,348

 

 

 

1.7

 

 

 

8,280

 

 

 

7,068

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial Lots

 

 

10,227

 

 

 

1.1

 

 

 

6,670

 

 

 

3,557

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Quadplex

 

 

9,769

 

 

 

1.1

 

 

 

9,769

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial Other

 

 

9,080

 

 

 

1.0

 

 

 

9,080

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Retail

 

 

7,873

 

 

 

0.9

 

 

 

6,385

 

 

 

1,488

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Duplex

 

 

6,324

 

 

 

0.7

 

 

 

6,324

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

911,744

 

 

 

100.0

%

 

$

597,269

 

 

$

239,739

 

 

$

3,102

 

 

$

6,099

 

 

$

65,274

 

 

$

261

 

CECL allowance(2)

 

 

(10,394

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carrying value, net

 

$

901,350

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)
Represents the year of amendment where the loan incurred a full re-underwriting in connection with the amendment.
(2)
Includes $0.7 million in loan specific allowances for loans deemed collateral dependent based on the fair value of the underlying collateral. In addition, $0.9 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet.

 

 

 

At December 31, 2021

 

 

Year Originated (1)

 

(dollars in thousands)

 

Carrying Value

 

 

% of Portfolio

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

Prior

 

LTV (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0 - 40%

 

$

53,907

 

 

 

5.9

%

 

$

32,634

 

 

$

—

 

 

$

—

 

 

$

3,608

 

 

$

17,665

 

 

$

—

 

41 - 45%

 

 

48,431

 

 

 

5.3

 

 

 

44,380

 

 

 

4,051

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

46 - 50%

 

 

63,690

 

 

 

7.0

 

 

 

41,356

 

 

 

21,317

 

 

 

—

 

 

 

1,017

 

 

 

—

 

 

 

—

 

51 - 55%

 

 

92,238

 

 

 

10.1

 

 

 

74,978

 

 

 

17,260

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

56 - 60%

 

 

79,039

 

 

 

8.7

 

 

 

27,115

 

 

 

40,190

 

 

 

—

 

 

 

—

 

 

 

11,473

 

 

 

261

 

61 - 65%

 

 

559,997

 

 

 

61.4

 

 

 

372,645

 

 

 

146,640

 

 

 

3,102

 

 

 

1,474

 

 

 

36,136

 

 

 

—

 

66 - 70%

 

 

645

 

 

 

0.1

 

 

 

645

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

71 - 75%

 

 

—

 

 

 

0.0

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

76 - 80%

 

 

—

 

 

 

0.0

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Above 80%

 

 

13,797

 

 

 

1.5

 

 

 

3,516

 

 

 

10,281

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

911,744

 

 

 

100.0

%

 

$

597,269

 

 

$

239,739

 

 

$

3,102

 

 

$

6,099

 

 

$

65,274

 

 

$

261

 

CECL allowance(3)

 

 

(10,394

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carrying value, net

 

$

901,350

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)
Represents the year of amendment where the loan incurred a full re-underwriting in connection with the amendment.
(2)
Represents LTV as of origination or latest amendment. LTVs above 65% generally represent loans in contractual default status where we have agreed to extend funds to the borrower above 65% in order to facilitate successful completion of the construction and return of capital.
(3)
Includes $0.7 million in loan specific allowances for loans deemed collateral dependent based on the fair value of the underlying collateral. In addition, $0.9 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet.

 

 

 

At December 31, 2020

 

 

Year Originated (1)

 

(dollars in thousands)

 

Carrying Value

 

 

% of Portfolio

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

2016

 

 

Prior

 

Construction Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vertical Construction

 

$

514,136

 

 

 

63.5

%

 

$

354,012

 

 

$

57,090

 

 

$

6,853

 

 

$

88,655

 

 

$

7,526

 

 

$

—

 

Horizontal Development

 

 

153,345

 

 

 

19.0

 

 

 

129,607

 

 

 

15,028

 

 

 

283

 

 

 

—

 

 

 

8,427

 

 

 

—

 

Investment

 

 

141,595

 

 

 

17.5

 

 

 

98,146

 

 

 

18,657

 

 

 

7,259

 

 

 

16,444

 

 

 

—

 

 

 

1,089

 

Total

 

$

809,076

 

 

 

100.0

%

 

$

581,765

 

 

$

90,775

 

 

$

14,395

 

 

$

105,099

 

 

$

15,953

 

 

$

1,089

 

CECL allowance(2)

 

 

(10,590

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carrying value, net

 

$

798,486

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)
Represents the year of amendment where the loan incurred a full re-underwriting in connection with the amendment.
(2)
Includes $1.5 million in loan specific allowances for loans deemed collateral dependent based on the fair value of the underlying collateral.

 

 

 

At December 31, 2020

 

 

Year Originated (1)

 

(dollars in thousands)

 

Carrying Value

 

 

% of Portfolio

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

2016

 

 

Prior

 

Collateral Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apartments

 

$

129,588

 

 

 

16.0

%

 

$

79,931

 

 

$

18,953

 

 

$

—

 

 

$

24,232

 

 

$

6,472

 

 

$

—

 

Residential Lots

 

 

124,548

 

 

 

15.4

 

 

 

105,830

 

 

 

10,291

 

 

 

—

 

 

 

—

 

 

 

8,427

 

 

 

—

 

Condos

 

 

92,245

 

 

 

11.4

 

 

 

52,714

 

 

 

3,106

 

 

 

4,405

 

 

 

32,020

 

 

 

—

 

 

 

—

 

Single Family Housing

 

 

90,131

 

 

 

11.1

 

 

 

69,438

 

 

 

8,839

 

 

 

1,028

 

 

 

10,103

 

 

 

—

 

 

 

723

 

Townhomes

 

 

72,773

 

 

 

9.0

 

 

 

47,391

 

 

 

1,061

 

 

 

1,703

 

 

 

21,564

 

 

 

1,054

 

 

 

—

 

Unentitled Land

 

 

71,796

 

 

 

8.9

 

 

 

47,727

 

 

 

—

 

 

 

7,259

 

 

 

16,444

 

 

 

—

 

 

 

366

 

Mixed Use

 

 

66,092

 

 

 

8.2

 

 

 

60,232

 

 

 

5,860

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Hotel

 

 

51,115

 

 

 

6.3

 

 

 

42,874

 

 

 

8,241

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Senior Housing

 

 

34,283

 

 

 

4.2

 

 

 

34,283

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Offices

 

 

29,540

 

 

 

3.7

 

 

 

8,495

 

 

 

21,045

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial Lots

 

 

15,683

 

 

 

1.9

 

 

 

15,683

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Retail

 

 

11,397

 

 

 

1.4

 

 

 

9,500

 

 

 

1,897

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Industrial

 

 

11,309

 

 

 

1.4

 

 

 

704

 

 

 

10,605

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Quadplex

 

 

5,592

 

 

 

0.7

 

 

 

5,592

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Entitled Land

 

 

1,116

 

 

 

0.1

 

 

 

1,116

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial

 

 

877

 

 

 

0.1

 

 

 

—

 

 

 

877

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Duplex

 

 

736

 

 

 

0.1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

736

 

 

 

—

 

 

 

—

 

Commercial Other

 

 

254

 

 

 

0.1

 

 

 

254

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

809,076

 

 

 

100.0

%

 

$

581,765

 

 

$

90,775

 

 

$

14,395

 

 

$

105,099

 

 

$

15,953

 

 

$

1,089

 

CECL allowance(2)

 

 

(10,590

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carrying value, net

 

$

798,486

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)
Represents the year of amendment where the loan incurred a full re-underwriting in connection with the amendment.
(2)
Includes $1.5 million in loan specific allowances for loans deemed collateral dependent based on the fair value of the underlying collateral.

 

 

 

At December 31, 2020

 

 

Year Originated (1)

 

(dollars in thousands)

 

Carrying Value

 

 

% of Portfolio

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

2016

 

 

Prior

 

LTV (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0 - 40%

 

$

22,601

 

 

 

2.8

%

 

$

18,112

 

 

$

—

 

 

$

3,862

 

 

$

261

 

 

$

—

 

 

$

366

 

41 - 45%

 

 

68,263

 

 

 

8.4

 

 

 

44,683

 

 

 

20,183

 

 

 

3,397

 

 

 

—

 

 

 

—

 

 

 

—

 

46 - 50%

 

 

23,864

 

 

 

2.9

 

 

 

15,917

 

 

 

7,224

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

723

 

51 - 55%

 

 

76,539

 

 

 

9.5

 

 

 

57,583

 

 

 

2,774

 

 

 

—

 

 

 

16,182

 

 

 

—

 

 

 

—

 

56 - 60%

 

 

135,170

 

 

 

16.7

 

 

 

117,309

 

 

 

3,106

 

 

 

—

 

 

 

9,639

 

 

 

5,116

 

 

 

—

 

61 - 65%

 

 

450,253

 

 

 

55.7

 

 

 

301,964

 

 

 

57,488

 

 

 

7,136

 

 

 

76,139

 

 

 

7,526

 

 

 

—

 

66 - 70%

 

 

9,416

 

 

 

1.2

 

 

 

9,416

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

71 - 75%

 

 

1,983

 

 

 

0.2

 

 

 

1,983

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

76 - 80%

 

 

14,544

 

 

 

1.8

 

 

 

14,544

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Above 80%

 

 

6,443

 

 

 

0.8

 

 

 

254

 

 

 

—

 

 

 

—

 

 

 

2,878

 

 

 

3,311

 

 

 

—

 

Total

 

$

809,076

 

 

 

100.0

%

 

$

581,765

 

 

$

90,775

 

 

$

14,395

 

 

$

105,099

 

 

$

15,953

 

 

$

1,089

 

CECL allowance(3)

 

 

(10,590

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carrying value, net

 

$

798,486

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)
Represents the year of amendment where the loan incurred a full re-underwriting in connection with the amendment.
(2)
Represents LTV as of origination or latest amendment. LTVs above 65% generally represent loans in contractual default status where we have agreed to extend funds to the borrower above 65% in order to ensure successful completion of the construction and return of capital.
(3)
Includes $1.5 million in loan specific allowances for loans deemed collateral dependent based on the fair value of the underlying collateral. 
Schedule of carrying value of collateral dependent loans

The following tables allocate the carrying value of collateral dependent loans in our loan portfolio to the collateral type at the dates indicated:

 

 

 

At December 31, 2021

 

(dollars in thousands)

 

Carrying Value

 

 

CECL Allowance(1)

 

 

Carrying Value, net

 

Collateral Type

 

 

 

 

 

 

 

 

 

Senior Housing

 

$

25,337

 

 

$

(1,103

)

 

$

24,234

 

Entitled Land

 

 

17,335

 

 

 

(42

)

 

 

17,293

 

Single Family Housing

 

 

1,730

 

 

 

(15

)

 

 

1,715

 

Condos

 

 

1,109

 

 

 

(673

)

 

 

436

 

Townhomes

 

 

261

 

 

 

(1

)

 

 

260

 

Total

 

$

45,772

 

 

$

(1,834

)

 

$

43,938

 

 

 

(1)
Includes $0.7 million in specific allowances based on the excess amortized cost over the fair value of the underlying collateral and $1.1 million where the fair value was greater than the amortized cost and the allowance is based on the standard CECL methodology.

 

 

 

At December 31, 2020

 

(dollars in thousands)

 

Carrying Value

 

 

CECL Allowance(1)

 

 

Carrying Value, net

 

Collateral Type

 

 

 

 

 

 

 

 

 

Hotel

 

$

16,215

 

 

$

(202

)

 

$

16,013

 

Single Family Housing

 

 

9,953

 

 

 

(1,542

)

 

 

8,411

 

Offices

 

 

5,541

 

 

 

(305

)

 

 

5,236

 

Residential Lots

 

 

713

 

 

 

-

 

 

 

713

 

Total

 

$

32,422

 

 

$

(2,049

)

 

$

30,373

 

 

 

(1)
Includes $1.5 million in specific allowances based on the excess amortized cost over the fair value of the underlying collateral and $0.5 million where the fair value was greater than the amortized cost and the allowance is based on the standard CECL methodology.
Summary of activity in the allowance for loan losses

The following table summarizes the activity in the allowance for loan losses for the year ended December 31, 2019:

 

(dollars in thousands)

 

Successor Period from
November 15, 2019 through December 31, 2019 (1)

 

 

Predecessor Period from
January 1, 2019 through November 14, 2019

 

Beginning

 

$

4,096

 

 

$

1,704

 

Provision for loan losses

 

 

—

 

 

 

3,342

 

Charge offs

 

 

—

 

 

 

(452

)

Recoveries

 

 

—

 

 

 

—

 

Ending

 

$

4,096

 

 

$

4,594

 

 

 

(1)
The beginning balance on November 15, 2019 (Successor) represents the allowance of the acquirer, BRELF II.