5. Notes Receivable

The table below sets forth information regarding Bluegreen’s notes receivable and related allowance for loan losses (dollars in thousands):





	December 31,
	2019		2018
Notes receivable:
VOI notes receivable - non-securitized	$	203,872		124,642
VOI notes receivable - securitized		385,326		447,850
Notes receivable secured by homesites (1)		659		898
Gross notes receivable		589,857		573,390
Allowance for loan losses - non-securitized		(47,894)		(28,258)
Allowance for loan losses - securitized		(92,736)		(105,875)
Allowance for loan losses - homesites (1)		(65)		(90)
Notes receivable, net	$	449,162		439,167
Allowance as a % of gross notes receivable		24%		23%

(1)

Notes receivable secured by homesites were originated through a business, substantially all of the assets of which were sold by Bluegreen in 2012.

The weighted-average interest rate on Bluegreen’s notes receivable was 14.9% and 15.1% at December 31, 2019 and 2018, respectively. Bluegreen’s VOI notes receivable bear interest at fixed rates and are generally secured by property located in Florida, Missouri, Nevada, South Carolina, Tennessee, and Wisconsin.

The table below sets forth future principal payments due on Bluegreen’s notes receivable during each of the five years subsequent to December 31, 2019 and thereafter (in thousands):



	December 31, 2019
2020	$	62,808
2021		62,320
2022		67,086
2023		70,589
2024		72,559
Thereafter		254,495
Gross notes receivable	$	589,857

Credit Quality of Notes Receivable and the Allowance for Loan Losses

Bluegreen monitors the credit quality of its receivables on an ongoing basis. Bluegreen holds large amounts of homogeneous VOI notes receivable and assesses uncollectibility based on pools of receivables as Bluegreen does not believe that there are significant concentrations of credit risk with any individual counterparty or groups of counterparties. In estimating loan losses, Bluegreen does not use a single primary indicator of credit quality but instead evaluates its VOI notes receivable based upon a static pool analysis that incorporates the aging of the respective receivables, default trends, and prepayment rates by origination year, as well as the FICO scores of the borrowers.

The activity in Bluegreen’s allowance for loan losses (including notes receivable secured by homesites) was as follows (in thousands):



	For the Years Ended December 31,
	2019		2018		2017
Balance, beginning of period	$	134,223		123,791		120,270
Provision for loan losses		55,677		51,236		46,412
Write-offs of uncollectible receivables		(49,205)		(40,804)		(42,891)
Balance, end of period	$	140,695		134,223		123,791

The table below sets forth information regarding the percentage of gross VOI notes receivable outstanding by FICO score at origination:



	December 31,
FICO Score	2019		2018
700+	59.00	%	57.00	%
600-699	37.00		39.00
<600	3.00		3.00
No score (1)	1.00		1.00
Total	100.00	%	100.00	%

(1)

VOI notes receivables without a FICO score are primarily related to foreign borrowers.

The table below sets forth information regarding the delinquency status of Bluegreen’s VOI notes receivable (in thousands):



	December 31,
	2019		2018
Current	$	557,849		541,783
31-60 days		6,794		5,783
61-90 days		5,288		4,516
> 91 days (1)		19,267		20,410
Total	$	589,198		572,492

(1)

Includes $10.6 million and $14.3 million of VOI notes receivable as of December 31, 2019 and 2018, respectively, that, as of such date, had defaulted but the related VOI note receivable balance had not yet been charged off in accordance with the provisions of certain of Bluegreen's receivable-backed notes payable transactions. These VOI notes receivable have been reflected in the allowance for loan losses.