NOTE 3: INVESTMENTS IN LOANS

Investments in Commercial Mortgages, Mezzanine Loans, Other Loans and Preferred Equity Interests

The following table summarizes our investments in commercial mortgages, mezzanine loans, other loans and preferred equity interests as of March 31, 2014:


	Unpaid Principal Balance			Unamortized (Discounts) Premiums			Carrying Amount			Number of Loans		Weighted- Average Coupon (1)			Range of Maturity Dates
Commercial Real Estate (CRE) Loans
Commercial mortgages	$	927,998		$	(18,137	)	$	909,861			73		6.3	%	May 2014 to Apr. 2024
Mezzanine loans		257,845			(3,021	)		254,824			77		9.5	%	Jun. 2014 to Jan. 2029
Preferred equity interests		42,609			(914	)		41,695			10		7.7	%	May 2015 to Aug. 2025

Total CRE Loans		1,228,452			(22,072	)		1,206,380			160		7.0	%
Other loans		30,625			66			30,691			2		4.3	%	Jun. 2014 to Oct. 2016

Total Loans	$	1,259,077		$	(22,006	)	$	1,237,071			162		6.9	%

Deferred fees		(1,916	)		0			(1,916	)

Total investments in loans	$	1,257,161		$	(22,006	)	$	1,235,155

(1)	Weighted-average coupon is calculated on the unpaid principal amount of the underlying instruments, which does not necessarily correspond to the carrying amount.

The following table summarizes our investments in commercial mortgages, mezzanine loans, other loans and preferred equity interests as of December 31, 2013:


	Unpaid Principal Balance			Unamortized (Discounts) Premiums			Carrying Amount			Number of Loans		Weighted- Average Coupon (1)			Range of Maturity Dates
Commercial Real Estate (CRE) Loans
Commercial mortgages	$	792,526		$	(19,257	)	$	773,269			59		6.4	%	Mar. 2014 to Jan. 2029
Mezzanine loans		269,034			(3,273	)		265,761			81		9.6	%	Mar. 2014 to Jan. 2029
Preferred equity interests		54,389			(939	)		53,450			11		8.6	%	May 2015 to Aug. 2025

Total CRE Loans		1,115,949			(23,469	)		1,092,480			151		7.3	%
Other loans		30,625			72			30,697			2		4.3	%	Mar. 2014 to Oct. 2016

Total Loans		1,146,574			(23,397	)		1,123,177			153		7.2	%

Deferred fees		(800	)		0			(800	)

Total investments in loans	$	1,145,774		$	(23,397	)	$	1,122,377

(1)	Weighted-average coupon is calculated on the unpaid principal amount of the underlying instruments which does not necessarily correspond to the carrying amount.

During the three-month period ended March 31, 2014 and 2013, we did not convert any underperforming commercial real estate loans to real estate owned property.

The following table summarizes the delinquency statistics of our commercial real estate loans as of March 31, 2014 and December 31, 2013:


Delinquency Status	As of March 31, 2014		As of December 31, 2013
30 to 59 days	$	23,972	$	0
60 to 89 days		0		6,441
90 days or more		19,103		2,163
In foreclosure or bankruptcy proceedings		8,916		16,002

Total	$	51,991	$	24,606

As of March 31, 2014 and December 31, 2013, approximately $28,019 and $37,073, respectively, of our commercial real estate loans were on non-accrual status and had a weighted-average interest rate of 4.7% and 6.3%, respectively. As of March 31, 2014 and December 31, 2013, 1 Other loan with a carrying amount of approximately $10,487 was on non-accrual status and had a weighted-average interest rate of 7.2%.

Allowance For Losses And Impaired Loans

The following table provides a roll-forward of our allowance for losses for the three-month periods ended March 31, 2014 and 2013:


	For the Three-Month Period Ended March 31, 2014			For the Three-Month Period Ended March 31, 2013
Beginning balance	$	22,955		$	30,400
Provision		1,000			500
Charge-offs		(9,676	)		(4,694	)

Ending balance	$	14,279		$	26,206

As of March 31, 2014 and December 31, 2013, we identified 8 and 10, respectively, commercial mortgages, mezzanine loans and other loans with unpaid principal balances and recorded investment of $21,089 and $30,143, respectively, as impaired.

The average unpaid principal balance and recorded investment of total impaired loans was $25,616 and $47,036 during the three-month periods ended March 31, 2014 and 2013. As of March 31, 2014, there are no impaired loans in which there is no allowance. We recorded interest income from impaired loans of $1 and $19 for the three-month periods ended March 31, 2014 and 2013.

We have evaluated modifications to our commercial real estate loans to determine if the modification constitutes a troubled debt restructuring (TDR) under FASB ASC Topic 310, “Receivables”. During the three-month periods ended March 31, 2014 and 2013, we have determined that there were no modifications to any commercial real estate loans that constituted a TDR. As of March 31, 2014, there were no TDRs that subsequently defaulted for modifications within the previous 12 months.