Schedule IV—Mortgage Loans on Real Estate

December 31, 2019

(dollars in thousands, except footnotes)



																Principal
																Amount of
																Loans Subject
Geographic	Number								Final			Carrying				to Delinquent
Dispersion of	of	Size of Loans							Maturity			Amount of				Principal or
Collateral	Loans	From		To		Interest Rate			Date Range			Mortgages (1)				"Interest"

SBA 7(a) Loans - States 2% or greater (2) (3):
Indiana	17	$	110	$	1,000	6.50%	to	7.75%	05/14/36	—	09/27/44	$	8,620			$	—
Texas	25	$	—	$	1,020	5.88%	to	7.75%	01/01/21	—	10/24/44	8,086				—
Ohio	24	$	—	$	800	6.75%	to	7.75%	10/16/20	—	07/17/44	7,000				—
Michigan	17	$	10	$	1,000	6.25%	to	7.75%	10/10/33	—	11/22/44	5,138				—
Florida	10	$	80	$	1,110	6.75%	to	7.75%	06/29/32	—	01/26/44	4,007				—
Pennsylvania (4)	5	$	170	$	760	6.75%	to	7.75%	03/05/40	—	11/29/43	2,388				284
Illinois	7	$	50	$	550	6.75%	to	7.75%	09/17/35	—	08/20/44	1,779				—
Louisiana	4	$	110	$	610	6.75%	to	7.75%	11/17/41	—	05/21/44	1,551				—
South Carolina	4	$	280	$	400	6.75%	to	7.75%	11/06/40	—	07/30/44	1,358				—
Wisconsin (5)	7	$	—	$	530	6.75%	to	8.25%	04/23/20	—	02/27/43	1,355				80
North Carolina	4	$	70	$	630	6.75%	to	7.75%	09/08/32	—	11/25/44	1,319				—
Colorado	4	$	60	$	540	6.50%	to	7.75%	01/21/36	—	07/26/43	1,309				—
Virginia	4	$	240	$	470	7.00%	to	7.75%	07/20/37	—	12/27/44	1,283				—
Mississippi	4	$	150	$	520	7.00%	to	7.75%	08/31/29	—	08/31/43	1,206				—
Alabama	5	$	30	$	490	6.75%	to	7.75%	07/25/25	—	08/31/44	1,130				—
Kentucky	5	$	100	$	430	7.00%	to	7.75%	04/09/35	—	07/25/44	1,099				—
Other	29	$	10	$	550	6.25%	to	7.75%	05/23/20	—	02/27/45	6,148				—
Government guaranteed portions (6)												1,601				—
SBA 7(a) loans, subject to secured borrowings (7)												12,152				—
General reserves												(450		)		—
	175											68,079			(8)	364


(1)	Excludes general reserves of $450,000.


(2)	Includes $242,000 of loans with subordinate lien positions.


(3)	Interest rates are variable at spreads over the prime rate unless otherwise noted.


(4)	Includes a loan with a retained face value of $284,000, a valuation reserve of $116,000 and a fixed interest rate of 7.75%.


(5)	Includes a loan with a retained face value of $80,000, a valuation reserve of $32,000 and a fixed interest rate of 8.25%.


(6)	Represents the government guaranteed portions of our SBA 7(a) loans detailed above retained by us. As there is no risk of loss to us related to these portions of the guaranteed loans, the geographic information is not presented as it is not meaningful.


(7)	Represents the guaranteed portion of SBA 7(a) loans which were sold with the proceeds received from the sale reflected as secured borrowings. For Federal income tax purposes, these proceeds are treated as sales and reduce the carrying value of loans receivable.


(8)	For Federal income tax purposes, the aggregate cost basis of our loans was approximately $54,925,000 (unaudited).

Schedule IV—Mortgage Loans on Real Estate (Continued)

December 31, 2019

(in thousands)



	Year Ended December 31,
	2019			2018			2017
Balance, beginning of period	$	83,248		$	81,056		$	75,740

Additions during period:
New loans	39,592			74,234			76,316
Other - deferral for collection of commitment fees, net of costs	802			1,587			1,706
Other - accretion of loan fees and discounts	1,303			1,026			676

Deductions during period:
Collections of principal	(13,886		)	(16,468		)	(17,557		)
Foreclosures	(241		)	—			(127		)
Cost of mortgages sold, net	(42,663		)	(57,947		)	(54,973		)
Other - reclassification from secured borrowings	—			—			(534		)
Other - bad debt expense	(76		)	(240		)	(191		)
Balance, end of period	$	68,079		$	83,248		$	81,056