Mortgage notes receivable (Tables)

3 Months Ended

Mar. 31, 2020



(dollars in thousands)	March 31, 2020		December 31, 2019
Total loan commitments	$	1,099,458	$	1,101,275
Less:
Construction holdbacks (1)		272,274		253,708
Interest reserves (1)		21,703		18,601
Total principal outstanding for mortgage notes, receivable		805,481		828,966
Less:
Allowance for loan losses		7,182		4,096
Deferred fees		6,847		3,281
Private REIT participation (2)		8,700		-
Mortgage notes receivable, net	$	782,752	$	821,589

(1)

Includes construction holdbacks of $4.5 million and interest reserves of $0.7 million on participating interests sold to the Private REIT

(2)

Private REIT was determined to be a voting interest entity for which the Company, through its wholly owned subsidiary acting as manager with no equity interest, does not hold a controlling interest in and does not consolidate the Private REIT. Furthermore, the Private REIT participation in loans originated by the Company meets the characteristics of a participating interest per ASC 860 and therefore, is treated as a sale of mortgage notes receivable and is derecognized from the Company’s unaudited condensed consolidated financial statements.

Schedule of allowance for loan losses relates to loans in default


	Three Months Ended		Three Months Ended
(dollars in thousands)	March 31, 2020		March 31, 2019

Beginning	$	4,096	$	1,704
Provision for loan losses		3,654		(224)
Charge offs		(568)		—
Recoveries		—		—
Ending	$	7,182	$	1,480