Investments in Joint Venture

12 Months Ended

Dec. 31, 2019

Investments in Joint Venture [Abstract]

Investments in Joint Venture

Note 5. Investments in Joint Venture

In December 2015, the Company finalized an agreement with Intertex Property Management, Inc., a California corporation, to enter into a joint venture to form Tesoro Hills, LLC (the “Valencia Hills Project”). The Valencia Hills Project is a joint venture that will develop and market property formerly classified by the Company as a foreclosed asset. In January 2016, the Company transferred ownership in the foreclosed asset to the Valencia Hills Project as part of the agreement. In addition, the Company reclassified the carrying value of the property from foreclosed assets to an investment in a joint venture. The Company’s initial investment in the joint venture was $900 thousand. This amount was the carrying value in the foreclosed asset at December 31, 2015.

The value of the Company’s investment in the joint venture was $891 thousand and $887thousand, as of December 31, 2019 and 2018respectively. Management’s impairment analysis of the investment as of December 31, 2019 has determined that the investment is not impaired.