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Mortgage Notes Receivable
 6 Months Ended
Jun. 30, 2022
Receivables [Abstract]  
Mortgage Notes Receivable

Note 3 - Mortgage Notes Receivable

The stated principal amount of mortgage notes receivable in our portfolio represents our interest in loans secured by first deeds of trust, security agreements or legal title to real estate located in the United States. Our lending standards typically require that all mortgage notes receivable be secured by a first deed of trust lien on real estate and that the maximum loan to value ratio (“LTV”) be no greater than 65%. The LTV is calculated on an “as-complete” appraised value of the underlying collateral as determined by an independent appraiser at the time of the loan origination. The lending standards also typically limit the initial outstanding principal balance of the loan to a maximum LTV of up to 65% of the “as-is” appraised value of the underlying collateral, as determined by an independent appraiser at the time of the loan origination. Unless otherwise indicated, LTV is measured by the total commitment amount of the loan at origination divided by the “as-complete” appraisal. LTVs do not reflect interim loan activity such as construction draws or interest payments capitalized to loans, or partial repayments of the loan. The maximum amount of a single loan may not exceed 10% of our total assets and the maximum amount to a single borrower may not exceed 15% of our total assets. We consider the maximum LTV as an indicator for the credit quality of a mortgage note receivable.

Mortgage notes receivable are considered to be short-term financings. As of June 30, 2022, the weighted average term of our active loans was 18 months at origination, which we often elect to extend for several months, based on our evaluation of the expected timeline for completion of construction. All loans require monthly interest only payments, with our weighted average interest rate on our portfolio being 10.2% as of June 30, 2022. Most loans are structured with an interest reserve holdback that covers the interest payments for the initial term of the loan. Once the interest reserve is depleted, borrowers are expected to pay their monthly interest payment within 10 days of month-end.

Mortgage notes receivable are presented net of construction holdbacks, interest reserves, allowance for credit losses and deferred origination and amendment fee income in the condensed consolidated balance sheets. The construction holdback represents amounts withheld from the funding of construction loans until we deem construction to be sufficiently completed. The interest reserve represents amounts withheld from the funding of certain mortgage notes receivable for the purpose of satisfying monthly interest payments over all or part of the term of the related note. Accrued interest is paid out of the interest reserve and recognized as interest income at the end of each month. The deferred origination and amendment fee income represents amounts that will be recognized over the contractual life of the underlying mortgage notes receivable.

The following table reconciles outstanding mortgage loan commitments to the outstanding balance of mortgage notes receivable as of June 30, 2022 and December 31, 2021:

 

(dollars in thousands)

 

June 30, 2022

 

 

December 31, 2021

 

Total loan commitments

 

$

1,600,686

 

 

$

1,489,055

 

Less:

 

 

 

 

 

 

Construction holdbacks

 

 

578,492

 

 

 

524,462

 

Interest reserves

 

 

43,648

 

 

 

39,880

 

Total principal outstanding for our mortgage notes receivable

 

 

978,546

 

 

 

924,713

 

Less:

 

 

 

 

 

 

Allowance for credit losses(1)

 

 

9,526

 

 

 

10,394

 

Deferred origination and amendment fees

 

 

11,794

 

 

 

12,969

 

Mortgage notes receivable, net

 

$

957,226

 

 

$

901,350

 

 

 

(1)
As of June 30, 2022, $1.4 million of the 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 condensed consolidated balance sheet.

In certain instances, where the interest reserve on a current loan has been fully depleted and the interest payment is not expected to be collected from the borrower, we may place a current loan on non-accrual status and recognize interest income on a cash-basis where principal collection is not in doubt. As of June 30, 2022 and December 31, 2021, the principal outstanding on loans in contractual default status placed on non-accrual status was $91.7 and $101.9 million, respectively. In accordance with our CECL methodology, all loans including those on non-accrual status have an allowance for credit losses.

As of June 30, 2022 and December 31, 2021, the total commitment on loans in contractual default was $248.4 and $191.4 million, respectively.

Current Expected Credit Losses

In assessing the CECL allowance, we consider historical loss experience, current conditions, and a reasonable and supportable forecast of the macroeconomic environment. We derived an annual historical loss rate based on the Company’s historical loss experience in its portfolio and the historical loss experience in the commercial real estate industry provided by a third party adjusted to incorporate the risks of construction lending and to reflect our expectations of the macroeconomic environment based on forecast data per the Federal Reserve.

The following tables summarize the activity in the CECL allowance during the six months ended June 30, 2022 and 2021:

 

 

 

CECL Allowance

 

(dollars in thousands)

 

Funded

 

 

Unfunded (2)

 

 

Total

 

CECL allowance as of December 31, 2021

 

$

10,394

 

 

$

904

 

 

$

11,298

 

Provision for credit losses, net

 

 

1,554

 

 

 

193

 

 

 

1,747

 

Charge-offs(1)

 

 

(3,301

)

 

 

—

 

 

 

(3,301

)

CECL allowance as of March 31, 2022

 

$

8,647

 

 

$

1,097

 

 

$

9,744

 

Provision for credit losses, net

 

 

2,381

 

 

 

313

 

 

 

2,694

 

Charge-offs(1)

 

 

(1,502

)

 

 

—

 

 

 

(1,502

)

CECL allowance as of June 30, 2022

 

$

9,526

 

 

$

1,410

 

 

$

10,936

 

 

 

 

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

 

 

1,761

 

 

 

947

 

 

 

2,708

 

Charge-offs(1)

 

 

(1,688

)

 

 

—

 

 

 

(1,688

)

CECL allowance as of March 31, 2021

 

$

10,663

 

 

$

947

 

 

$

11,610

 

Provision for credit losses, net

 

 

280

 

 

 

(222

)

 

 

58

 

CECL allowance as of June 30, 2021

 

$

10,943

 

 

$

725

 

 

$

11,668

 

 

 

(1)
Charge-offs result from either loan repayments where the proceeds are less than the principal outstanding or transfers to investment in real property at the time that we take ownership of the property 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 condensed consolidated balance sheet.

In determining our CECL allowance, we segment loans with similar characteristics. All of our loans are secured by residential or commercial real estate and, in assessing estimated credit losses, we evaluate various metrics, including, but not limited to, construction type, collateral type, LTV, market conditions of property location and borrower experience and financial strength.

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:

 

 

 

June 30, 2022

 

 

Year Originated (1)

 

(dollars in thousands)

 

Carrying Value

 

 

% of Portfolio

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

Prior

 

Construction Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vertical Construction

 

$

490,054

 

 

 

50.7

%

 

$

189,305

 

 

$

184,441

 

 

$

76,976

 

 

$

1,582

 

 

$

1,296

 

 

$

36,454

 

Horizontal Development

 

 

242,332

 

 

 

25.2

 

 

 

92,490

 

 

 

131,680

 

 

 

18,162

 

 

 

—

 

 

 

—

 

 

 

—

 

Acquisition

 

 

108,277

 

 

 

11.2

 

 

 

12,247

 

 

 

96,030

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Investment

 

 

51,984

 

 

 

5.4

 

 

 

37,336

 

 

 

14,648

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Rehabilitation

 

 

33,036

 

 

 

3.4

 

 

 

12,480

 

 

 

10,846

 

 

 

9,710

 

 

 

—

 

 

 

—

 

 

 

—

 

Land Entitlement

 

 

25,691

 

 

 

2.7

 

 

 

1,757

 

 

 

23,934

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Bridge

 

 

15,378

 

 

 

1.6

 

 

 

—

 

 

 

13,438

 

 

 

—

 

 

 

1,940

 

 

 

—

 

 

 

—

 

Total

 

$

966,752

 

 

 

100.0

%

 

$

345,615

 

 

$

475,017

 

 

$

104,848

 

 

$

3,522

 

 

$

1,296

 

 

$

36,454

 

CECL allowance(2)

 

 

(9,526

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carrying value, net

 

$

957,226

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)
Represents the year of either origination or amendment where the loan incurred a full re-underwriting in connection with the amendment.
(2)
Includes $1.0 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $1.4 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 condensed consolidated balance sheet.

 

 

 

June 30, 2022

 

 

Year Originated (1)

 

(dollars in thousands)

 

Carrying Value

 

 

% of Portfolio

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

Prior

 

Collateral Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apartments

 

$

140,899

 

 

 

14.6

%

 

$

76,665

 

 

$

37,709

 

 

$

24,943

 

 

$

1,582

 

 

$

—

 

 

$

—

 

Residential Lots

 

 

134,405

 

 

 

13.9

 

 

 

40,296

 

 

 

75,947

 

 

 

18,162

 

 

 

—

 

 

 

—

 

 

 

—

 

Single Family Housing

 

 

116,164

 

 

 

12.1

 

 

 

72,439

 

 

 

41,382

 

 

 

2,343

 

 

 

—

 

 

 

—

 

 

 

—

 

Townhomes

 

 

99,851

 

 

 

10.3

 

 

 

52,180

 

 

 

46,067

 

 

 

1,242

 

 

 

—

 

 

 

—

 

 

 

362

 

Mixed Use

 

 

73,109

 

 

 

7.6

 

 

 

4,434

 

 

 

57,025

 

 

 

9,710

 

 

 

1,940

 

 

 

—

 

 

 

—

 

Commercial

 

 

71,457

 

 

 

7.4

 

 

 

7,489

 

 

 

63,968

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Condos

 

 

70,526

 

 

 

7.3

 

 

 

2,759

 

 

 

7,130

 

 

 

23,249

 

 

 

—

 

 

 

1,296

 

 

 

36,092

 

Storage

 

 

56,730

 

 

 

5.9

 

 

 

—

 

 

 

56,730

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Entitled Land

 

 

46,070

 

 

 

4.8

 

 

 

18,765

 

 

 

27,305

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Unentitled Land

 

 

43,329

 

 

 

4.5

 

 

 

32,912

 

 

 

10,417

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Hotel

 

 

29,839

 

 

 

3.1

 

 

 

13,926

 

 

 

—

 

 

 

15,913

 

 

 

—

 

 

 

—

 

 

 

—

 

Offices

 

 

18,581

 

 

 

1.9

 

 

 

—

 

 

 

10,783

 

 

 

7,798

 

 

 

—

 

 

 

—

 

 

 

—

 

Senior Housing

 

 

14,306

 

 

 

1.5

 

 

 

—

 

 

 

14,306

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Quadplex

 

 

12,680

 

 

 

1.3

 

 

 

6,211

 

 

 

6,469

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial Other

 

 

11,092

 

 

 

1.1

 

 

 

—

 

 

 

11,092

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial Lots

 

 

9,340

 

 

 

1.0

 

 

 

2,376

 

 

 

6,964

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Duplex

 

 

8,894

 

 

 

0.9

 

 

 

8,894

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Retail

 

 

8,422

 

 

 

0.9

 

 

 

5,211

 

 

 

1,723

 

 

 

1,488

 

 

 

—

 

 

 

—

 

 

 

—

 

Triplex

 

 

1,058

 

 

 

0.1

 

 

 

1,058

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

966,752

 

 

 

100.0

%

 

$

345,615

 

 

$

475,017

 

 

$

104,848

 

 

$

3,522

 

 

$

1,296

 

 

$

36,454

 

CECL allowance(2)

 

 

(9,526

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carrying value, net

 

$

957,226

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)
Represents the year of either origination or amendment where the loan incurred a full re-underwriting in connection with the amendment.
(2)
Includes $1.0 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $1.4 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 condensed consolidated balance sheet.

 

 

 

June 30, 2022

 

 

Year Originated (1)

 

(dollars in thousands)

 

Carrying Value

 

 

% of Portfolio

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

Prior

 

LTV (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0 - 40%

 

$

34,963

 

 

 

3.6

%

 

$

5,077

 

 

$

29,886

 

 

$

—

 

 

$

—

 

 

$

0

 

 

$

—

 

41 - 45%

 

 

45,971

 

 

 

4.8

 

 

 

14,769

 

 

 

29,329

 

 

 

1,873

 

 

 

—

 

 

 

—

 

 

 

—

 

46 - 50%

 

 

47,033

 

 

 

4.9

 

 

 

17,475

 

 

 

13,424

 

 

 

16,134

 

 

 

—

 

 

 

—

 

 

 

—

 

51 - 55%

 

 

130,342

 

 

 

13.5

 

 

 

54,426

 

 

 

66,778

 

 

 

8,776

 

 

 

—

 

 

 

—

 

 

 

362

 

56 - 60%

 

 

99,739

 

 

 

10.3

 

 

 

67,971

 

 

 

31,319

 

 

 

449

 

 

 

—

 

 

 

—

 

 

 

—

 

61 - 65%

 

 

543,820

 

 

 

56.3

 

 

 

142,917

 

 

 

302,052

 

 

 

57,941

 

 

 

3,522

 

 

 

1,296

 

 

 

36,092

 

66 - 70%

 

 

41,067

 

 

 

4.2

 

 

 

39,736

 

 

 

1,331

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

71 - 75%

 

 

1,092

 

 

 

0.1

 

 

 

1,092

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

76- 80%

 

 

2,152

 

 

 

0.2

 

 

 

2,152

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Above 80%

 

 

20,573

 

 

 

2.1

 

 

 

—

 

 

 

898

 

 

 

19,675

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

966,752

 

 

 

100.0

%

 

$

345,615

 

 

$

475,017

 

 

$

104,848

 

 

$

3,522

 

 

$

1,296

 

 

$

36,454

 

CECL allowance(3)

 

 

(9,526

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carrying value, net

 

$

957,226

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)
Represents the year of either origination or 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 $1.0 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $1.4 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 condensed consolidated balance sheet.

 

 

December 31, 2021

 

 

Year Originated (1)

 

(dollars in thousands)

 

Carrying Value

 

 

% of Portfolio

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

Prior

 

Construction Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vertical Construction

 

$

478,475

 

 

 

52.5

%

 

$

234,861

 

 

$

191,896

 

 

$

1,177

 

 

$

2,491

 

 

$

47,789

 

 

$

261

 

Horizontal Development

 

 

196,543

 

 

 

21.5

 

 

 

169,041

 

 

 

27,502

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Acquisition

 

 

96,937

 

 

 

10.6

 

 

 

96,937

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Investment

 

 

65,703

 

 

 

7.2

 

 

 

42,509

 

 

 

2,101

 

 

 

—

 

 

 

3,608

 

 

 

17,485

 

 

 

—

 

Rehabilitation

 

 

27,023

 

 

 

3.0

 

 

 

11,320

 

 

 

15,703

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Land Entitlement

 

 

24,529

 

 

 

2.7

 

 

 

24,529

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Bridge

 

 

22,534

 

 

 

2.5

 

 

 

18,072

 

 

 

2,537

 

 

 

1,925

 

 

 

—

 

 

 

—

 

 

 

—

 

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 either origination or 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 excess amortized cost over the fair value of the underlying collateral.

 

 

 

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

 

 

 

9.5

 

 

 

53,530

 

 

 

30,474

 

 

 

1,925

 

 

 

—

 

 

 

—

 

 

 

—

 

Single Family Housing

 

 

87,902

 

 

 

9.6

 

 

 

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 either origination or 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 excess amortized cost over the fair value of the underlying collateral.

 

 

 

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 - 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 either origination or 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 $0.7 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral.

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

 

 

 

June 30, 2022

 

(dollars in thousands)

 

Carrying Value

 

 

CECL Allowance(1)

 

 

Carrying Value, net

 

Collateral Type

 

 

 

 

 

 

 

 

 

Residential Lots

 

$

17,192

 

 

$

(221

)

 

$

16,971

 

Condos

 

 

1,296

 

 

 

(961

)

 

 

335

 

Townhomes

 

 

269

 

 

 

(1

)

 

 

268

 

Total

 

$

18,757

 

 

$

(1,183

)

 

$

17,574

 

 

 

(1)
Includes $1.0 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral.

 

 

 

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 loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral.