CURRENT EXPECTED CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 2021

Credit Loss [Abstract]

Financing Receivable, Allowance for Credit Loss

Activity related to the CECL Reserve for outstanding balances on the Company’s loans held for investment as of and for the three and nine months ended September 30, 2021 was as follows ($ in thousands):

Balance at June 30, 2021 (1)	$	16,892
Provision for current expected credit losses	5,799
Write-offs	—
Recoveries	—
Balance at September 30, 2021 (1)	$	22,691
Balance at December 31, 2020 (1)	$	23,604
Provision for current expected credit losses	(913)
Write-offs	—
Recoveries	—
Balance at September 30, 2021 (1)	$	22,691

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(1)     The CECL Reserve related to outstanding balances on loans held for investment is recorded within current expected credit loss reserve in the Company's consolidated balance sheets.

Current Expected Credit Loss Reserve for Unfunded Loan Commitments    

    Activity related to the CECL Reserve for unfunded commitments on the Company’s loans held for investment as of and for the three and nine months ended September 30, 2021 was as follows ($ in thousands):

Balance at June 30, 2021 (1)	$	1,221
Provision for current expected credit losses	568
Write-offs	—
Recoveries	—
Balance at September 30, 2021 (1)	$	1,789
Balance at December 31, 2020 (1)	$	1,632
Provision for current expected credit losses	157
Write-offs	—
Recoveries	—
Balance at September 30, 2021 (1)	$	1,789

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(1)     The CECL Reserve related to unfunded commitments on loans held for investment is recorded within other liabilities in the Company's consolidated balance sheets.

Schedule of Company Loan Risk Definitions

Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from less risk to greater risk, which ratings are defined as follows:

Ratings	Definition
1	Very Low Risk
2	Low Risk
3	Medium Risk
4	High Risk/Potential for Loss: Asset performance is trailing underwritten expectations. Loan at risk of impairment without material improvement to performance
5	Impaired/Loss Likely: A loan that has a significantly increased probability of default and principal loss

Financing Receivable Credit Quality Indicators

As of September 30, 2021, the carrying value, excluding the CECL Reserve, of the Company’s loans held for investment within each risk rating by year of origination is as follows ($ in thousands):

	2021		2020		2019		2018		2017		Prior		Total
Risk rating:
1	$	28,436	$	—	$	—	$	9,374	$	—	$	—	$	37,810
2	312,909		—		104,805		—		39,528		—		457,242
3	348,175		521,897		429,477		191,642		171,586		16,307		1,679,084
4	35,025		—		2,649		118,525		—		33,164		189,363
5	—		—		—		—		—		—		—
Total	$	724,545	$	521,897	$	536,931	$	319,541	$	211,114	$	49,471	$	2,363,499