XML 28 R19.htm IDEA: XBRL DOCUMENT v3.22.1
Loans (Tables)
 12 Months Ended
Dec. 31, 2021
Secured Loan Principal Transactions

Secured loan transactions are summarized in the following table ($ in thousands).

 

 

 

2021

 

 

2020

 

Principal, beginning of period

 

$

74,080

 

 

$

86,203

 

Loans funded

 

 

25,248

 

 

 

7,718

 

Principal collected(1)

 

 

(39,404

)

 

 

(10,798

)

Loan transferred from related mortgage fund

 

 

1,371

 

 

 

—

 

Loans transferred to related mortgage fund

 

 

(5,711

)

 

 

(3,374

)

Loans sold to non-affiliate

 

 

(485

)

 

 

(2,730

)

Foreclosures(2)

 

 

—

 

 

 

(2,939

)

Principal, December 31, 2021

 

$

55,099

 

 

$

74,080

 

 

(1)
Includes principal collected and held in trust at December 31, 2021 of approximately $464,000.
(2)
In 2020 the partnership foreclosed on one loan, with a recorded investment of approximately $3,163,000. The net investment in the loan was adjusted to the estimated fair value of the related collateral, net of any costs to sell in arriving at net realizable value and net of any senior loans, which resulted in the recognition of foregone interest of approximately $140,000.

During 2021 and 2020, the partnership renewed 8 and 18 loans with aggregate principal of approximately $36,572,000 and $53,340,000, respectively, which are not included in the activity shown in the above table. The loans were current and deemed well collateralized (i.e., the LTV for the collateral was within lending guidelines) at the time they were extended.

The partnership funds loans with the intent to hold the loans until maturity, although from time to time the partnership may sell certain loans when the manager determines it to be in the best interest of the partnership.

In 2021, a loan with principal of approximately $485,000, was sold to an unaffiliated third party, for an amount that approximated the loan balance at the time of sale. In 2020, two loans with a principal of approximately $2,730,000 and accrued interest of approximately $13,500 were sold to an unaffiliated third party. After commissions to third parties the partnership recognized a gain of approximately $26,000.
Secured Loans Characteristics

Secured loans had the characteristics presented in the following table ($ in thousands).

 

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

Number of secured loans

 

 

31

 

 

 

33

 

Secured loans – principal

 

$

55,099

 

 

$

74,080

 

Secured loans – lowest interest rate (fixed)

 

 

7.3

%

 

 

5.0

%

Secured loans – highest interest rate (fixed)

 

 

10.8

%

 

 

10.8

%

 

 

 

 

 

 

 

Average secured loan – principal

 

$

1,777

 

 

$

2,245

 

Average principal as percent of total principal

 

 

3.2

%

 

 

3.0

%

Average principal as percent of partners’ capital, net of formation loan

 

 

2.7

%

 

 

2.9

%

Average principal as percent of total assets

 

 

2.6

%

 

 

2.7

%

 

 

 

 

 

 

 

Largest secured loan – principal

 

$

7,994

 

 

$

10,200

 

Largest principal as percent of total principal

 

 

14.5

%

 

 

13.8

%

Largest principal as percent of partners’ capital, net of formation loan

 

 

12.2

%

 

 

13.0

%

Largest principal as percent of total assets

 

 

11.7

%

 

 

12.1

%

 

 

 

 

 

 

 

Smallest secured loan – principal

 

$

56

 

 

$

46

 

Smallest principal as percent of total principal

 

 

0.1

%

 

 

0.1

%

Smallest principal as percent of partners’ capital, net of formation loan

 

 

0.1

%

 

 

0.1

%

Smallest principal as percent of total assets

 

 

0.1

%

 

 

0.1

%

 

 

 

 

 

 

 

Number of California counties where security is located

 

 

12

 

 

 

14

 

Largest percentage of principal in one California county

 

 

32.1

%

 

 

40.0

%
Secured Loans by Lien Position in the Collateral ecured loans had the lien positions in the following table ($ in thousands).

 

 

 

December 31, 2021

 

 

December 31, 2020

 

 

 

Loans

 

 

Principal

 

 

Percent

 

 

Loans

 

 

Principal

 

 

Percent

 

First trust deeds

 

 

25

 

 

$

45,992

 

 

 

83

%

 

 

24

 

 

$

64,286

 

 

 

87

%

Second trust deeds

 

 

6

 

 

 

9,107

 

 

 

17

 

 

 

9

 

 

 

9,794

 

 

 

13

 

Total principal, secured loans

 

 

31

 

 

 

55,099

 

 

 

100

%

 

 

33

 

 

 

74,080

 

 

 

100

%

Liens due other lenders at loan closing

 

 

 

 

 

14,988

 

 

 

 

 

 

 

 

 

15,759

 

 

 

 

Total debt

 

 

 

 

$

70,087

 

 

 

 

 

 

 

 

$

89,839

 

 

 

 

Appraised property value at loan closing

 

 

 

 

$

117,570

 

 

 

 

 

 

 

 

$

180,041

 

 

 

 

Percent of total debt to appraised values (LTV)
   at loan closing(3)

 

 

 

 

 

62.3

%

 

 

 

 

 

 

 

 

53.8

%

 

 

 
(3)
Based on appraised values and liens due other lenders at loan closing. The weighted-average loan-to-value (LTV) computation above does not take into account subsequent increases or decreases in property values following the loan closing, nor does it include decreases or increases of the amount of senior liens to other lenders.
Secured Loans By Property Type Of The Collateral [Table Text Block]

Secured loans summarized by property type are presented in the following table ($ in thousands).

 

 

 

December 31, 2021

 

 

December 31, 2020

 

 

 

Loans

 

 

Principal

 

 

Percent

 

 

Loans

 

 

Principal

 

 

Percent

 

Single family(4)

 

 

16

 

 

$

14,597

 

 

 

26

%

 

 

19

 

 

$

16,598

 

 

 

22

%

Multi-family

 

 

2

 

 

 

7,550

 

 

 

14

 

 

 

1

 

 

 

6,300

 

 

 

9

 

Commercial

 

 

13

 

 

 

32,952

 

 

 

60

 

 

 

12

 

 

 

49,682

 

 

 

67

 

Land

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1,500

 

 

 

2

 

Total principal, secured loans

 

 

31

 

 

$

55,099

 

 

 

100

%

 

 

33

 

 

$

74,080

 

 

 

100

%
(4)
Single family property type as of December 31, 2021 consists of 4 loans with aggregate principal of approximately $2,306,000 that are owner occupied and 12 loans with aggregate principal of approximately $12,291,000 that are non-owner occupied. At December 31, 2020, single family property consisted of 8 loans with aggregate principal of approximately $3,344,000 that were owner occupied and 11 loans with aggregate principal of approximately $13,254,000 that were non-owner occupied.
Secured Loans Distributed within California

The distribution of secured loans by counties is presented in the following table ($ in thousands).

 

 

 

December 31, 2021

 

 

December 31, 2020

 

 

 

Principal

 

 

Percent

 

 

Principal

 

 

Percent

 

San Francisco Bay Area(5)

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

$

17,694

 

 

 

32.1

%

 

$

29,659

 

 

 

40.0

%

San Mateo

 

 

7,696

 

 

 

14.0

 

 

 

16,756

 

 

 

22.6

 

Alameda

 

 

6,239

 

 

 

11.3

 

 

 

823

 

 

 

1.1

 

Santa Clara

 

 

4,600

 

 

 

8.4

 

 

 

4,600

 

 

 

6.2

 

Marin

 

 

1,653

 

 

 

3.0

 

 

 

917

 

 

 

1.2

 

Sonoma

 

 

576

 

 

 

1.0

 

 

 

—

 

 

 

0.0

 

Contra Costa

 

 

—

 

 

 

0.0

 

 

 

302

 

 

 

0.4

 

 

 

 

38,458

 

 

 

69.8

 

 

 

53,057

 

 

 

71.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Northern California

 

 

 

 

 

 

 

 

 

 

 

 

Mariposa

 

 

56

 

 

 

0.1

 

 

 

46

 

 

 

0.1

 

Placer

 

 

—

 

 

 

0.0

 

 

 

1,500

 

 

 

2.0

 

Santa Cruz

 

 

—

 

 

 

0.0

 

 

 

485

 

 

 

0.7

 

Amador

 

 

—

 

 

 

0.0

 

 

 

701

 

 

 

0.9

 

 

 

 

56

 

 

 

0.1

 

 

 

2,732

 

 

 

3.7

 

Northern California Total

 

 

38,514

 

 

 

69.9

 

 

 

55,789

 

 

 

75.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles & Coastal

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

10,783

 

 

 

19.6

 

 

 

10,199

 

 

 

13.8

 

Orange

 

 

2,192

 

 

 

4.0

 

 

 

642

 

 

 

0.9

 

Santa Barbara

 

 

2,062

 

 

 

3.7

 

 

 

2,070

 

 

 

2.8

 

San Diego

 

 

1,088

 

 

 

2.0

 

 

 

—

 

 

 

0.0

 

 

 

 

16,125

 

 

 

29.3

 

 

 

12,911

 

 

 

17.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Southern California

 

 

 

 

 

 

 

 

 

 

 

 

San Bernardino

 

 

—

 

 

 

0.0

 

 

 

5,380

 

 

 

7.3

 

Riverside

 

 

460

 

 

 

0.8

 

 

 

—

 

 

 

0.0

 

 

 

 

460

 

 

 

0.8

 

 

 

5,380

 

 

 

7.3

 

Southern California Total

 

 

16,585

 

 

 

30.1

 

 

 

18,291

 

 

 

24.8

 

Total principal, secured loans

 

$

55,099

 

 

 

100.0

%

 

$

74,080

 

 

 

100.0

%
(5)
Includes Silicon Valley
Secured Loans Scheduled Maturities

Secured loans scheduled to mature as of December 31, 2021 are presented in the following table ($ in thousands).

 

 

 

Loans

 

 

Principal

 

 

Percent

 

2022

 

 

17

 

 

$

45,108

 

 

 

82

%

2023

 

 

6

 

 

 

6,049

 

 

 

11

 

2024

 

 

1

 

 

 

588

 

 

 

1

 

2025

 

 

1

 

 

 

1,000

 

 

 

2

 

2026

 

 

—

 

 

 

—

 

 

 

—

 

Thereafter

 

 

2

 

 

 

1,310

 

 

 

2

 

Total scheduled maturities

 

 

27

 

 

 

54,055

 

 

 

98

 

Matured at December 31, 2021

 

 

4

 

 

 

1,044

 

 

 

2

 

Total principal, secured loans

 

 

31

 

 

$

55,099

 

 

 

100

%

In February 2022, two loans, with aggregate principal of approximately $585,000, included as matured at December 31, 2021 in the table above were paid in full, and one loan, with principal of approximately $402,000, included as matured at December 31, 2021 in the table above was brought current and extended with an updated maturity date of June 1, 2022.

Past Due Financing Receivables Payments in arrears for non-performing secured loans (i.e., monthly interest and principal payments past due 30 or more days) at December 31, 2021 and December 31, 2020, are presented in the following tables ($ in thousands).

 

 

 

Loans

 

 

Principal

 

 

Interest(6)

 

 

 

 

At December 31, 2021

 

Past
maturity

 

 

Monthly
payments

 

 

Past
maturity

 

 

Monthly
payments

 

 

Past
maturity

 

 

Monthly
payments

 

 

Total
payments
in arrears

 

Past due

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-89 days (1-3 payments)

 

 

—

 

 

 

2

 

 

$

—

 

 

$

3

 

 

$

—

 

 

$

65

 

 

$

68

 

90-179 days (4-6 payments)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

180 or more days (more than 6
   payments)(7)

 

 

4

 

 

 

—

 

 

 

1,044

 

 

 

—

 

 

 

6

 

 

 

—

 

 

 

1,050

 

Total past due

 

 

4

 

 

 

2

 

 

$

1,044

 

 

$

3

 

 

$

6

 

 

$

65

 

 

$

1,118

 
(6)
Interest includes foregone interest of approximately $700 on non-accrual loans past maturity. Interest for December 2021 is due January 1, 2022 and is not included in the payments in arrears at December 31, 2021.
(7)
In February 2022, two loans, with aggregate principal of approximately $585,000, included in past maturity payments (principal and interest) 180 or more days paid in full and one loan, with principal of approximately $402,000, included in past maturity payments (principal and interest) 180 or more days was brought current and extended.

 

 

 

Loans

 

 

Principal

 

 

Interest(8)

 

 

 

 

At December 31, 2020

 

Past
maturity

 

 

Monthly
payments

 

 

Past
maturity

 

 

Monthly
payments

 

 

Past
maturity

 

 

Monthly
payments

 

 

Total
payments
in arrears

 

Past due

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-89 days (1-3 payments)

 

 

—

 

 

 

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

90-179 days (4-6 payments)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

180 or more days (more than
   6 payments)(9)

 

 

3

 

 

 

—

 

 

 

15,139

 

 

 

—

 

 

 

849

 

 

 

—

 

 

 

15,988

 

Total past due

 

 

3

 

 

 

—

 

 

$

15,139

 

 

$

—

 

 

$

849

 

 

$

—

 

 

$

15,988

 
(8)
Interest includes foregone interest of approximately $512,000 on non-accrual loans past maturity. Interest for December 2020 was due on January 1, 2021 and is not included in the payments in arrears at December 31, 2020.
(9)
Two loans, with an aggregate principal of approximately $10,735,000, included in past maturity payments (principal and interest) 180 or more days, had forbearance agreements in place at December 31, 2020.
Secured Loans in Non-Accrual Status

Delinquency/Loans in non-accrual status

Secured loans in non-accrual status are summarized in the following table ($ in thousands).

 

 

 

December 31, 2021

 

 

December 31, 2020

 

Number of loans

 

 

4

 

 

 

3

 

Principal(10)

 

$

1,044

 

 

$

15,139

 

Advances

 

 

116

 

 

 

24

 

Accrued interest(11)

 

 

13

 

 

 

368

 

Total recorded investment

 

$

1,173

 

 

$

15,531

 

Foregone interest

 

$

1

 

 

$

582

 
(10)
In February 2022, three loans, with aggregate principal of approximately $987,000, included in the table above for 2021 paid in full or were brought current.
(11)
Accrued interest in the table above is the amount of interest accrued prior to the loan being placed on non-accrual status, net of any payments received while in non-accrual status.
Activity in the Allowance for Loan Losses

Activity in the allowance for loan losses for 2021 and 2020 are presented in the following table ($ in thousands).

 

 

 

2021

 

 

2020

 

Balance, January 1

 

$

50

 

 

$

50

 

Provision for loan loss

 

 

5

 

 

 

134

 

Recovery for loan losses

 

 

—

 

 

 

(134

)

Balance, December 31

 

$

55

 

 

$

50

 
By Days Past Due [Member]  
Past Due Financing Receivables

Secured loans summarized by payment-delinquency status are presented in the following table ($ in thousands).

 

 

 

December 31, 2021

 

 

December 31, 2020

 

 

 

Loans

 

 

Principal

 

 

Loans

 

 

Principal

 

Current

 

 

25

 

 

$

48,274

 

 

 

30

 

 

$

58,941

 

Past Due

 

 

 

 

 

 

 

 

 

 

 

 

30-89 days

 

 

2

 

 

 

5,782

 

 

 

—

 

 

 

—

 

90-179 days

 

 

1

 

 

 

56

 

 

 

—

 

 

 

—

 

180 or more days

 

 

3

 

 

 

987

 

 

 

3

 

 

 

15,139

 

Total past due

 

 

6

 

 

 

6,825

 

 

 

3

 

 

 

15,139

 

Total principal, secured loans

 

 

31

 

 

$

55,099

 

 

 

33

 

 

$

74,080

 

In February 2022, two loans, with aggregate principal of approximately $585,000, included as 180 or more days delinquent in the table above were paid in full and one loan, with principal of approximately $402,000, included as 180 or more days delinquent in the table above was brought current and extended.

Impaired Loans [Member]  
Impaired Financing Receivables

Loans designated impaired and the associated allowance for loan losses is presented in the following table ($ in thousands).

 

 

 

December 31, 2021

 

 

December 31, 2020

 

Number of loans

 

 

4

 

 

 

3

 

Principal(12)

 

$

1,044

 

 

$

15,139

 

Recorded investment(13)

 

 

1,173

 

 

 

15,531

 

Impaired loans without allowance

 

 

1,173

 

 

 

15,531

 

Impaired loans with allowance

 

 

—

 

 

 

—

 

Allowance for loan losses, impaired loans

 

 

—

 

 

 

—

 

Weighted average LTV at origination

 

 

45.4

%

 

 

54.0

%
(12)
In February 2022, three loans, with aggregate principal of approximately $987,000, included in the table above for 2021 paid in full or were brought current.
(13)
Recorded investment is the sum of principal, advances, and interest accrued for financial reporting purposes.
Average Balances And Interest Income [Member]  
Impaired Financing Receivables

Loans designated impaired had an average recorded investment and interest income recognized and received in cash as presented in the following table ($ in thousands).

 

 

 

December 31, 2021

 

 

December 31, 2020

 

Average recorded investment

 

$

8,352

 

 

$

14,231

 

Interest income recognized

 

 

107

 

 

 

1,271

 

Interest income received in cash

 

 

98

 

 

 

502