Investment in Joint Venture

9 Months Ended

Sep. 30, 2020

Investment in Joint Venture [Abstract]

Investment in Joint Venture

Note 5: Investment 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 joint venture incurred losses of $6 thousand for the nine months ended September 30, 2020. The joint venture did not incur any gains or losses during the nine months ended September 30, 2019. As of September 30, 2020 andDecember 31, 2019, the value of the Company’s investment in the property was $889 thousand and $891 thousand, respectively. Management’s impairment analysis of the investment as of September 30, 2020 has determined that the investment is not impaired.