XML 27 R19.htm IDEA: XBRL DOCUMENT v3.22.1
Loans (Tables)
 3 Months Ended
Mar. 31, 2022
Secured Loan Principal Transactions

Secured loan transactions for the three months ended March 31, 2022, are summarized in the following table ($ in thousands).

 

 

 

 

 

 

 

 

2022

 

 

Principal, beginning of period

 

$

55,099

 

 

Loans funded

 

 

10,489

 

 

Principal collected(1)

 

 

(1,891

)

 

Loans transferred to held for sale(2)

 

 

(6,492

)

 

Principal, March 31, 2022

 

$

57,205

 

 
(1)
Includes principal collected and held in trust at March 31, 2022 of approximately $300 offset by principal collected and held in trust at December 31, 2021 of approximately $464,000 which was disbursed to the partnership in January 2022.
(2)
As of March 31, 2022, three loans are classified as held for sale. All loans held for sale are performing and in first lien position. No loss has been recorded upon reclassification to held for sale as the fair value is in excess of the cost. The loans held for sale at March 31, 2022 were sold in May 2022.

During the three months ended March 31, 2022, the partnership renewed three maturing (or matured) loans with aggregated principal of approximately $11,799,000, which are not included in the activity shown in the table above. The loans have an average extension period of approximately nine months. The loans were current and deemed well collateralized (i.e., the LTV for the collateral was within lending guidelines) at the time they were extended.

The partnership funds loans with the intent to hold the loans until maturity, although from time to time the partnership may sell certain loans when the manager determines it to be in the best interest of the partnership. During the three months ended March 31, 2022, no loans were sold.

Secured Loans Characteristics

Loan characteristics

Secured loans had the characteristics presented in the following table ($ in thousands).

 

 

 

March 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Number of secured loans

 

 

28

 

 

 

31

 

Secured loans – principal

 

$

57,205

 

 

$

55,099

 

Secured loans – lowest interest rate (fixed)

 

 

6.5

%

 

 

7.3

%

Secured loans – highest interest rate (fixed)

 

 

10.8

%

 

 

10.8

%

 

 

 

 

 

 

 

Average secured loan – principal

 

$

2,043

 

 

$

1,777

 

Average principal as percent of total principal

 

 

3.6

%

 

 

3.2

%

Average principal as percent of partners’ capital, net of formation loan

 

 

3.3

%

 

 

2.7

%

Average principal as percent of total assets

 

 

2.7

%

 

 

2.6

%

 

 

 

 

 

 

 

Largest secured loan – principal

 

$

7,994

 

 

$

7,994

 

Largest principal as percent of total principal

 

 

14.0

%

 

 

14.5

%

Largest principal as percent of partners’ capital, net of formation loan

 

 

12.8

%

 

 

12.2

%

Largest principal as percent of total assets

 

 

10.6

%

 

 

11.7

%

 

 

 

 

 

 

 

Smallest secured loan – principal

 

$

54

 

 

$

56

 

Smallest principal as percent of total principal

 

 

0.1

%

 

 

0.1

%

Smallest principal as percent of partners’ capital, net of formation loan

 

 

0.1

%

 

 

0.1

%

Smallest principal as percent of total assets

 

 

0.1

%

 

 

0.1

%

 

 

 

 

 

 

 

Number of California counties where security is located

 

 

12

 

 

 

12

 

Largest percentage of principal in one California county

 

 

30.9

%

 

 

32.1

%
Secured Loans by Lien Position in the Collateral

At funding, secured loans had the lien positions presented in the following table ($ in thousands).

 

 

 

March 31, 2022

 

 

December 31, 2021

 

 

 

Loans

 

 

Principal

 

 

Percent

 

 

Loans

 

 

Principal

 

 

Percent

 

First trust deeds

 

 

23

 

 

$

48,285

 

 

 

84

%

 

 

25

 

 

$

45,992

 

 

 

83

%

Second trust deeds

 

 

5

 

 

 

8,920

 

 

 

16

 

 

 

6

 

 

 

9,107

 

 

 

17

 

Total principal, secured loans

 

 

28

 

 

 

57,205

 

 

 

100

%

 

 

31

 

 

 

55,099

 

 

 

100

%

Liens due other lenders at loan closing

 

 

 

 

 

14,807

 

 

 

 

 

 

 

 

 

14,988

 

 

 

 

Total debt

 

 

 

 

$

72,012

 

 

 

 

 

 

 

 

$

70,087

 

 

 

 

Appraised property value at loan closing

 

 

 

 

$

122,433

 

 

 

 

 

 

 

 

$

117,570

 

 

 

 

Percent of total debt to appraised values (LTV)
   at loan closing(3)

 

 

 

 

 

61.3

%

 

 

 

 

 

 

 

 

62.3

%

 

 

 
(3)
Based on appraised values and liens due other lenders at loan closing. The weighted-average loan-to-value (LTV) computation above does not take into account subsequent increases or decreases in property values following the loan closing, nor does it include decreases or increases on senior liens to other lenders.
Secured Loans By Property Type

Secured loans summarized by property type are presented in the following table ($ in thousands).

 

 

 

March 31, 2022

 

 

December 31, 2021

 

 

 

Loans

 

 

Principal

 

 

Percent

 

 

Loans

 

 

Principal

 

 

Percent

 

Single family(4)

 

 

13

 

 

$

13,734

 

 

 

24

%

 

 

16

 

 

$

14,597

 

 

 

26

%

Multi-family

 

 

2

 

 

 

7,550

 

 

 

13

 

 

 

2

 

 

 

7,550

 

 

 

14

 

Commercial

 

 

13

 

 

 

35,921

 

 

 

63

 

 

 

13

 

 

 

32,952

 

 

 

60

 

Total principal, secured loans

 

 

28

 

 

$

57,205

 

 

 

100

%

 

 

31

 

 

$

55,099

 

 

 

100

%
Single family property type at March 31, 2022, consists of 5 loans with aggregate principal of approximately $3,071,000 that are owner occupied and 8 loans with aggregate principal of approximately $10,663,000 that are non-owner occupied. At December 31, 2021, single family property consisted of 4 loans with aggregate principal of approximately $2,306,000 that were owner occupied and 12 loans with aggregate principal of approximately $12,291,000 that were non-owner occupied. Single family includes 1-4 unit residential buildings, condominium units, townhouses and condominium complexes.
Secured Loans Distributed within California

The distribution of secured loans within California by counties is presented in the following table ($ in thousands).

 

 

 

March 31, 2022

 

 

December 31, 2021

 

 

 

Principal

 

 

Percent

 

 

Principal

 

 

Percent

 

San Francisco Bay Area(5)

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

$

17,681

 

 

 

30.9

%

 

$

17,694

 

 

 

32.1

%

San Mateo

 

 

6,929

 

 

 

12.1

 

 

 

7,696

 

 

 

14.0

 

Alameda

 

 

5,654

 

 

 

9.9

 

 

 

6,239

 

 

 

11.3

 

Santa Clara

 

 

5,603

 

 

 

9.8

 

 

 

4,600

 

 

 

8.4

 

Solano

 

 

3,550

 

 

 

6.2

 

 

 

—

 

 

 

0.0

 

Marin

 

 

1,473

 

 

 

2.6

 

 

 

1,653

 

 

 

3.0

 

Sonoma

 

 

—

 

 

 

0.0

 

 

 

576

 

 

 

1.0

 

 

 

 

40,890

 

 

 

71.5

 

 

 

38,458

 

 

 

69.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Northern California

 

 

 

 

 

 

 

 

 

 

 

 

Mariposa

 

 

54

 

 

 

0.1

 

 

 

56

 

 

 

0.1

 

Sacramento

 

 

770

 

 

 

1.3

 

 

 

—

 

 

 

0.0

 

 

 

 

824

 

 

 

1.4

 

 

 

56

 

 

 

0.1

 

Northern California Total

 

 

41,714

 

 

 

72.9

 

 

 

38,514

 

 

 

69.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles & Coastal

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

10,782

 

 

 

18.9

 

 

 

10,783

 

 

 

19.6

 

Orange

 

 

2,190

 

 

 

3.8

 

 

 

2,192

 

 

 

4.0

 

Santa Barbara

 

 

2,059

 

 

 

3.6

 

 

 

2,062

 

 

 

3.7

 

San Diego

 

 

—

 

 

 

0.0

 

 

 

1,088

 

 

 

2.0

 

 

 

 

15,031

 

 

 

26.3

 

 

 

16,125

 

 

 

29.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Southern California

 

 

 

 

 

 

 

 

 

 

 

 

Riverside

 

 

460

 

 

 

0.8

 

 

 

460

 

 

 

0.8

 

 

 

 

460

 

 

 

0.8

 

 

 

460

 

 

 

0.8

 

Southern California Total

 

 

15,491

 

 

 

27.1

 

 

 

16,585

 

 

 

30.1

 

Total principal, secured loans

 

$

57,205

 

 

 

100.0

%

 

$

55,099

 

 

 

100.0

%
(5)
Includes the Silicon Valley
Secured Loans Scheduled Maturities

Secured loans scheduled to mature in periods as of and after March 31, 2022 are presented in the following table ($ in thousands).

 

 

 

Loans

 

 

Principal

 

 

Percent

 

2022(6)

 

 

16

 

 

$

37,370

 

 

 

65

%

2023

 

 

5

 

 

 

4,977

 

 

 

9

 

2024

 

 

1

 

 

 

587

 

 

 

1

 

2025

 

 

1

 

 

 

999

 

 

 

2

 

2026

 

 

—

 

 

 

—

 

 

 

—

 

Thereafter

 

 

2

 

 

 

4,281

 

 

 

7

 

Total scheduled maturities

 

 

25

 

 

 

48,214

 

 

 

84

 

Matured at March 31, 2022(7)

 

 

3

 

 

 

8,991

 

 

 

16

 

Total principal, secured loans

 

 

28

 

 

$

57,205

 

 

 

100

%
(6)
Loans scheduled to mature in 2022 after March 31.
(7)
Two loans matured as of March 31, 2022 were designated as impaired and one was in non-accrual status.
Past Due Financing Receivables Payments in arrears for non-performing secured loans (i.e., monthly interest and principal payments past due 30 or more days) at March 31, 2022 and December 31, 2021, are presented in the following tables ($ in thousands).

 

 

 

Loans

 

 

Principal

 

 

Interest(8)

 

 

 

 

At March 31, 2022

 

Past
maturity

 

 

Monthly
payments

 

 

Past
maturity

 

 

Monthly
payments

 

 

Past
maturity

 

 

Monthly
payments

 

 

Total
payments
in arrears

 

Past due

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-89 days (1-3 payments)

 

 

1

 

 

 

1

 

 

$

5,217

 

 

$

—

 

 

$

—

 

 

$

6

 

 

$

5,223

 

90-179 days (4-6 payments)

 

 

1

 

 

 

1

 

 

 

3,720

 

 

 

4

 

 

 

133

 

 

 

48

 

 

 

3,905

 

180 or more days (more than 6
   payments)

 

 

1

 

 

—

 

 

 

54

 

 

—

 

 

 

6

 

 

—

 

 

 

60

 

Total past due

 

 

3

 

 

 

2

 

 

$

8,991

 

 

$

4

 

 

$

139

 

 

$

54

 

 

$

9,188

 
(8)
Interest includes foregone interest of approximately $1,800 on non-accrual loans past maturity. Interest for March 2022 is due on April 1, 2022 and is not included in the payments in arrears at March 31, 2022.

 

 

 

Loans

 

 

Principal

 

 

Interest(9)

 

 

 

 

At December 31, 2021

 

Past
maturity

 

 

Monthly
payments

 

 

Past
maturity

 

 

Monthly
payments

 

 

Past
maturity

 

 

Monthly
payments

 

 

Total
payments
in arrears

 

Past due

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-89 days (1-3 payments)

 

 

—

 

 

 

2

 

 

$

—

 

 

$

3

 

 

$

—

 

 

$

65

 

 

$

68

 

90-179 days (4-6 payments)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

180 or more days (more than
   6 payments)

 

 

4

 

 

 

—

 

 

 

1,044

 

 

 

—

 

 

 

6

 

 

 

—

 

 

 

1,050

 

Total past due

 

 

4

 

 

 

2

 

 

$

1,044

 

 

$

3

 

 

$

6

 

 

$

65

 

 

$

1,118

 
(9)
Interest includes foregone interest of approximately $700 on non-accrual loans past maturity. Interest for December 2021 is due January 1, 2022 and is not included in the payments in arrears at December 31, 2021.
Secured Loans in Non-Accrual Status

Delinquency/Loans in non-accrual status

Secured loans in non-accrual status are summarized in the following table ($ in thousands).

 

 

 

March 31, 2022

 

 

December 31, 2021

 

Number of loans

 

 

1

 

 

 

4

 

Principal

 

$

54

 

 

$

1,044

 

Advances

 

 

16

 

 

 

116

 

Accrued interest(10)

 

 

4

 

 

 

13

 

Total recorded investment

 

$

74

 

 

$

1,173

 

Foregone interest

 

$

2

 

 

$

1

 
(10)
Accrued interest in the table above is the amount of interest accrued prior to the loan being placed on non-accrual status, net of any payments received while in non-accrual status.
Activity in the Allowance for Loan Losses

Activity in the allowance for loan losses for the three months ended March 31, 2022 and 2021 is presented in the following table ($ in thousands).

 

 

 

2022

 

 

2021

 

Balance, January 1

 

$

55

 

 

$

50

 

Provision for loan loss

 

 

—

 

 

 

1

 

Recovery for loan losses

 

 

—

 

 

 

(1

)

Balance, March 31

 

$

55

 

 

$

50

 
By Days Past Due [Member]  
Past Due Financing Receivables

Secured loans summarized by payment-delinquency status are presented in the following table ($ in thousands).

 

 

 

March 31, 2022

 

 

December 31, 2021

 

 

 

Loans

 

 

Principal

 

 

Loans

 

 

Principal

 

Current

 

 

23

 

 

$

45,245

 

 

 

25

 

 

$

48,274

 

Past Due

 

 

 

 

 

 

 

 

 

 

 

 

30-89 days

 

 

2

 

 

 

6,126

 

 

 

2

 

 

 

5,782

 

90-179 days

 

 

2

 

 

 

5,780

 

 

 

1

 

 

 

56

 

180 or more days

 

 

1

 

 

 

54

 

 

 

3

 

 

 

987

 

Total past due

 

 

5

 

 

 

11,960

 

 

 

6

 

 

 

6,825

 

Total principal, secured loans

 

 

28

 

 

$

57,205

 

 

 

31

 

 

$

55,099

 
Impaired Loans [Member]  
Impaired Financing Receivables

Loans designated impaired and any associated allowance for loan losses is presented in the following table ($ in thousands).

 

 

 

March 31, 2022

 

 

December 31, 2021

 

Number of loans

 

 

4

 

 

 

4

 

Principal

 

$

6,235

 

 

$

1,044

 

Recorded investment(11)

 

 

6,497

 

 

 

1,173

 

Impaired loans without allowance

 

 

6,497

 

 

 

1,173

 

Impaired loans with allowance

 

 

—

 

 

 

—

 

Allowance for loan losses, impaired loans

 

 

—

 

 

 

—

 

Weighted average LTV at origination

 

 

53.1

%

 

 

45.4

%
(11)
Recorded investment is the sum of principal, advances, and accrued interest for financial reporting purposes.
Average Balances And Interest Income [Member]  
Impaired Financing Receivables

Loans designated impaired had an average recorded investment balance, interest income recognized, and interest income received in cash for the three months ended March 31, 2022 and the year ended December 31, 2021 as presented in the following table ($ in thousands).

 

 

 

March 31, 2022

 

 

December 31, 2021

 

Average recorded investment

 

$

3,835

 

 

$

8,352

 

Interest income recognized

 

 

156

 

 

 

107

 

Interest income received in cash

 

 

59

 

 

 

98