4. BBX Capital’s Loans Held-For-Sale

BBX Capital’s loans held-for-sale are as follows (in thousands):



		June 30,	December 31,
		2016	2015
Residential	$	-	21,354

Loans held-for-sale are reported at the lower of cost or fair value measured on an aggregate basis. As of December 31, 2015 the lower of cost or fair value adjustment on loans held-for-sale was $1.6 million. BBX Capital transfers loans from held-for-sale to loans receivable when, based on the current economic environment and related market conditions, it has the intent to hold those loans for the foreseeable future. Based on current market conditions and an evaluation of the residential loan portfolio, BBX Capital’s management decided to hold the residential loans for the foreseeable future. As of June 30, 2016, BBX Capital transferred residential loans with aggregate unpaid principal balances, net of charge-offs, of $17.3 million from held-for-sale to loans receivable. The lower of cost or fair value of the residential loans on the transfer date was $16.1 million. Any difference between the lower of cost or fair value of the loan and the unpaid principal balance net of charge-offs was recognized as a discount. Such loans are included in loans receivable, net of a $1.2 million discount, on the Company’s condensed consolidated statement of financial condition as of June 30, 2016.