A rollforward of our allowance for credit losses, summarized by financial instrument type and internal credit risk rating, for the years ended December 31, 2021 and 2020 is as follows:

(1)

Amount reflects the movement of reserves associated with a $112.5 million mortgage for 9 facilities with Guardian due to a reduction of our internal risk rating on the loan from a 4 to a 5 in the third quarter of 2021, which was primarily due to the increased likelihood of a restructuring that would result in the modification of the mortgage loan terms, and from a 5 to a 6 during the fourth quarter of 2021, which was primarily due to Guardian’s non-payment of rent and interest during the fourth quarter of 2021 due to on-going liquidity issues (as discussed further in Note 5 – Contractual Receivables and Other Receivables and Lease Inducements) and further negotiations with Guardian in the fourth quarter. As discussed in Note 7 – Mortgage Notes Receivable, we elected to evaluate the risk of loss on the loan on an individual basis, which resulted in recording an additional $38.2 million reserve on the mortgage loan.

(2)	Amount reflects the movement of $27.2 million of reserves from Other Investments with a rating of 4 to Other Investments with a rating of 6 as a result of a reduction of our internal credit rating from a 4 to a 6 on the Agemo Term Loan and one other loan during the third quarter of 2021.

(3)

The provision includes an additional $7.9 million allowance recorded on the Agemo WC Loan during the third quarter of 2021. We also reduced the internal rating on the Agemo WC Loan from a 4 to a 5 during the third quarter of 2021. See Note 8 – Other Investments for additional information on the conditions that drove the Agemo WC Loan impairment and rating reduction.

(4)

Amount reflects the movement of $27.2 million of reserves from Other Investments with a rating of 4 to Other Investments with a rating of 6 as a result of a reduction of our internal credit rating from a 4 to a 6 on the Agemo Term Loan and one other loan during the third quarter of 2021. The amount also reflects $8.8 million of additional allowance recorded in the third quarter of 2021 to fully impair the remaining carrying value of the Agemo Term Loan and $20.0 million of additional allowance recorded in the fourth quarter of 2021 to fully impair the remaining carrying value of the Gulf Coast DIP Facility. See Note 8 – Other Investments for additional information on the conditions that drove the Agemo Term Loan impairment and ratings reduction and the Gulf Coast DIP Facility Impairment.


Rating	Financial Statement Line Item	Allowance for Credit Loss at December 31, 2019		Allowance for Credit Loss on January 1, 2020		Provision (recovery) for Credit Loss for the year ended December 31, 2020		Write-offs charged against allowance for the year ended December 30, 2020		Allowance for Credit Loss as of December 31, 2020
		(in thousands)
2	Mortgage notes receivable	$	—	$	—	$	88	$	—	$	88
3	Mortgage notes receivable		—		901		53		—		954
4	Mortgage notes receivable		—		19,293		7,572		—		26,865
5	Mortgage notes receivable		—		829		(396)		—		433
6	Mortgage notes receivable		4,905		363		(363)		—		4,905
	Sub-total		4,905		21,386		6,954		—		33,245

3	Investment in direct financing leases		217		611		83		(217)		694
	Sub-total		217		611		83		(217)		694

2	Other investments		—		195		(101)		—		94
3	Other investments		—		1,434		3,679		—		5,113
4	Other investments		—		3,158		21,239		—		24,397
5	Other investments		—		1,901		(48)		—		1,853
	Sub-total		—		6,688		24,769		—		31,457

2	Off-balance sheet note commitments		—		—		116		—		116
3	Off-balance sheet note commitments		—		—		2,305		—		2,305
4	Off-balance sheet mortgage commitments		—		100		(76)		—		24
	Sub-total		—		100		2,345		—		2,445

	Total	$	5,122	$	28,785	$	34,151	$	(217)	$	67,841

Included below is a summary of the amortized cost basis of our financial instruments, subject to the allowance for credit losses, by year of origination and our internal risk rating:


Rating	Financial Statement Line Item	2021		2020		2019		2018		2017		2016		2015 & older		Revolving Loans		Balance as of December 31, 2021
		(in thousands)
1	Mortgage notes receivable	$	—	$	—	$	—	$	—	$	—	$	—	$	65,475	$	—	$	65,475
2	Mortgage notes receivable		—		21,325		—		—		—		—		—		—		21,325
3	Mortgage notes receivable		72,420		—		—		—		—		—		—		—		72,420
4	Mortgage notes receivable		16,776		89,349		5,034		44,308		46,377		39,713		390,681		—		632,238
5	Mortgage notes receivable		—		—		—		—		—		—		7,090		—		7,090
6	Mortgage notes receivable		—		—		—		—		—		—		110,139		—		110,139
	Sub-total		89,196		110,674		5,034		44,308		46,377		39,713		573,385		—		908,687

3	Investment in direct financing leases		—		—		—		—		—		—		11,403		—		11,403
	Sub-total		—		—		—		—		—		—		11,403		—		11,403

2	Other investments		—		—		—		—		—		—		—		21,500		21,500
3	Other investments		—		—		18,574		27,017		—		—		2,829		238,370		286,790
4	Other investments		2,690		—		10,859		90,752		—		41,232		—		—		145,533
5	Other investments		—		—		—		29,723		—		—		—		—		29,723
6	Other investments		20,026		—		—		4,463		—		31,243		—		—		55,732
	Sub-total		22,716		—		29,433		151,955		—		72,475		2,829		259,870		539,278

Total		$	111,912	$	110,674	$	34,467	$	196,263	$	46,377	$	112,188	$	587,617	$	259,870	$	1,459,368