XML 29 R19.htm IDEA: XBRL DOCUMENT v3.23.1
Loans (Tables)
 12 Months Ended
Dec. 31, 2022
Secured Loan Principal Transactions

Secured loan transactions are summarized in the following table ($ in thousands).

 

 

 

2022

 

 

2021

 

Principal, beginning of period

 

$

55,099

 

 

$

74,080

 

Loans funded

 

 

48,419

 

 

 

25,248

 

Principal collected(1)

 

 

(30,412

)

 

 

(39,404

)

Loan transferred from related mortgage fund

 

 

—

 

 

 

1,371

 

Loans transferred to related mortgage fund

 

 

(3,284

)

 

 

(5,711

)

Loans sold to non-affiliate

 

 

(9,734

)

 

 

(485

)

Principal, end of period

 

$

60,088

 

 

$

55,099

 

 

 

(1)
Principal collected in 2022 includes principal collected and held in trust of $0 at December 31, 2022 offset by principal collected and held in trust of approximately $465 thousand at December 31, 2021 which was disbursed to the partnership in January 2022. Principal collected in 2021 includes principal collected and held in trust of $465 thousand at December 31, 2021 offset by principal collected and held in trust of approximately $1 thousand at December 31, 2020 which was disbursed to the partnership in January 2021.
Secured Loans Characteristics

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

 

 

 

December 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Number of secured loans

 

 

21

 

 

 

31

 

Secured loans – principal

 

$

60,088

 

 

$

55,099

 

Secured loans – lowest interest rate (fixed)

 

 

7.3

%

 

 

7.3

%

Secured loans – highest interest rate (fixed)

 

 

10.8

%

 

 

10.8

%

 

 

 

 

 

 

 

Average secured loan – principal

 

$

2,861

 

 

$

1,777

 

Average principal as percent of total principal

 

 

4.8

%

 

 

3.2

%

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

 

 

5.3

%

 

 

2.7

%

Average principal as percent of total assets

 

 

4.3

%

 

 

2.6

%

 

 

 

 

 

 

 

Largest secured loan – principal

 

$

9,000

 

 

$

7,994

 

Largest principal as percent of total principal

 

 

15.0

%

 

 

14.5

%

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

 

 

16.6

%

 

 

12.2

%

Largest principal as percent of total assets

 

 

13.4

%

 

 

11.7

%

 

 

 

 

 

 

 

Smallest secured loan – principal

 

$

437

 

 

$

56

 

Smallest principal as percent of total principal

 

 

0.7

%

 

 

0.1

%

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

 

 

0.8

%

 

 

0.1

%

Smallest principal as percent of total assets

 

 

0.7

%

 

 

0.1

%

 

 

 

 

 

 

 

Number of California counties where security is located

 

 

10

 

 

 

12

 

Largest percentage of principal in one California county

 

 

30.7

%

 

 

32.1

%
Secured Loans Distributed within California

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

 

 

 

December 31, 2022

 

 

December 31, 2021

 

 

 

Principal

 

 

Percent

 

 

Principal

 

 

Percent

 

San Francisco Bay Area(2)

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

$

18,425

 

 

 

30.7

%

 

$

17,694

 

 

 

32.1

%

San Mateo

 

 

2,519

 

 

 

4.2

 

 

 

7,696

 

 

 

14.0

 

Santa Clara

 

 

12,266

 

 

 

20.4

 

 

 

4,600

 

 

 

8.4

 

Sonoma

 

 

—

 

 

 

0.0

 

 

 

576

 

 

 

1.0

 

Solano

 

 

3,550

 

 

 

5.9

 

 

 

—

 

 

 

0.0

 

Marin

 

 

1,099

 

 

 

1.8

 

 

 

1,653

 

 

 

3.0

 

Alameda

 

 

1,687

 

 

 

2.8

 

 

 

6,239

 

 

 

11.3

 

 

 

 

39,546

 

 

 

65.8

 

 

 

38,458

 

 

 

69.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Northern California

 

 

 

 

 

 

 

 

 

 

 

 

Stanislaus

 

 

1,301

 

 

 

2.2

 

 

 

—

 

 

 

0.0

 

Mariposa

 

 

—

 

 

 

0.0

 

 

 

56

 

 

 

0.1

 

 

 

 

1,301

 

 

 

2.2

 

 

 

56

 

 

 

0.1

 

Northern California Total

 

 

40,847

 

 

 

68.0

 

 

 

38,514

 

 

 

69.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles & Coastal

 

 

 

 

 

 

 

 

 

 

 

 

Santa Barbara

 

 

2,044

 

 

 

3.4

 

 

 

2,062

 

 

 

3.7

 

Los Angeles

 

 

5,597

 

 

 

9.3

 

 

 

10,783

 

 

 

19.6

 

Orange

 

 

11,600

 

 

 

19.3

 

 

 

2,192

 

 

 

4.0

 

San Diego

 

 

—

 

 

 

0.0

 

 

 

1,088

 

 

 

2.0

 

 

 

 

19,241

 

 

 

32.0

 

 

 

16,125

 

 

 

29.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Southern California

 

 

 

 

 

 

 

 

 

 

 

 

Riverside

 

 

—

 

 

 

0.0

 

 

 

460

 

 

 

0.8

 

 

 

 

—

 

 

 

0.0

 

 

 

460

 

 

 

0.8

 

Southern California Total

 

 

19,241

 

 

 

32.0

 

 

 

16,585

 

 

 

30.1

 

Total principal, secured loans

 

$

60,088

 

 

 

100.0

%

 

$

55,099

 

 

 

100.0

%

 

(2)
Includes Silicon Valley
Secured Loans By Property Type

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

 

 

 

December 31, 2022

 

 

December 31, 2021

 

 

 

Loans

 

 

Principal

 

 

Percent

 

 

Loans

 

 

Principal

 

 

Percent

 

Single family(3)

 

 

4

 

 

$

5,874

 

 

 

10

%

 

 

16

 

 

$

14,597

 

 

 

26

%

Multi-family

 

 

3

 

 

 

8,326

 

 

 

14

 

 

 

2

 

 

 

7,550

 

 

 

14

 

Commercial

 

 

12

 

 

 

44,587

 

 

 

74

 

 

 

13

 

 

 

32,952

 

 

 

60

 

Land

 

 

2

 

 

 

1,301

 

 

 

2

 

 

 

—

 

 

 

—

 

 

 

0

 

Total principal, secured loans

 

 

21

 

 

$

60,088

 

 

 

100

%

 

 

31

 

 

$

55,099

 

 

 

100

%

 

(3)
Single family property type as of December 31, 2022 consists of 4 loans with aggregate principal of approximately $5.9 million that are non-owner occupied. At December 31, 2021, single family property type consisted of 4 loans with aggregate principal of approximately $2.3 million that were owner occupied and 12 loans with aggregate principal of approximately $12.3 million that were non-owner occupied. Single family includes 1-4 unit residential buildings, condominium units, townhouses and condominium complexes.
Secured Loans by Lien Position in the Collateral

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

 

 

 

December 31, 2022

 

 

December 31, 2021

 

 

 

Loans

 

 

Principal

 

 

Percent

 

 

Loans

 

 

Principal

 

 

Percent

 

First trust deeds

 

 

18

 

 

$

55,803

 

 

 

93

%

 

 

25

 

 

$

45,992

 

 

 

83

%

Second trust deeds

 

 

3

 

 

 

4,285

 

 

 

7

 

 

 

6

 

 

 

9,107

 

 

 

17

 

Total principal, secured loans

 

 

21

 

 

 

60,088

 

 

 

100

%

 

 

31

 

 

 

55,099

 

 

 

100

%

Liens due other lenders at loan closing

 

 

 

 

 

8,956

 

 

 

 

 

 

 

 

 

14,988

 

 

 

 

Total debt

 

 

 

 

$

69,044

 

 

 

 

 

 

 

 

$

70,087

 

 

 

 

Appraised property value at loan closing

 

 

 

 

$

138,924

 

 

 

 

 

 

 

 

$

117,570

 

 

 

 

Percent of total debt to appraised values (LTV)
   at loan closing(4)

 

 

 

 

 

55.4

%

 

 

 

 

 

 

 

 

62.3

%

 

 

 

 

(4)
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 of the amount of senior liens to other lenders.
Secured Loans Scheduled Maturities

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

 

 

 

 

 

 

 

 

 

 

 

 

First Trust Deeds

 

 

Second Trust Deeds

 

 

 

Loans

 

 

Principal

 

 

Percent

 

 

Loans

 

 

Principal

 

 

Loans

 

 

Principal

 

2023

 

 

13

 

 

$

31,575

 

 

 

52

%

 

 

11

 

 

$

28,540

 

 

 

2

 

 

$

3,035

 

2024

 

 

2

 

 

 

1,247

 

 

 

2

 

 

 

2

 

 

 

1,247

 

 

 

—

 

 

 

—

 

2025

 

 

1

 

 

 

9,000

 

 

 

15

 

 

 

1

 

 

 

9,000

 

 

 

—

 

 

 

—

 

2026

 

 

1

 

 

 

1,250

 

 

 

2

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1,250

 

2027

 

 

2

 

 

 

12,386

 

 

 

21

 

 

 

2

 

 

 

12,386

 

 

 

—

 

 

 

—

 

Total scheduled maturities

 

 

19

 

 

 

55,458

 

 

 

92

 

 

 

16

 

 

 

51,173

 

 

 

3

 

 

 

4,285

 

Matured at December 31, 2022(5)

 

 

2

 

 

 

4,630

 

 

 

8

 

 

 

2

 

 

 

4,630

 

 

 

—

 

 

 

—

 

Total principal, secured loans

 

 

21

 

 

$

60,088

 

 

 

100

%

 

 

18

 

 

$

55,803

 

 

 

3

 

 

 

4,285

 

 

(5)
See Delinquency/Secured loans with payments in arrears below for more information on matured loans.
Past Due Financing Receivables

Payments in arrears for secured loans (i.e., monthly interest and principal payments past due 30 or more days) at December 31, 2022, are presented in the following tables ($ in thousands).

 

 

 

Loans

 

 

Principal

 

 

Interest(6)

 

 

 

 

At December 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)

 

 

—

 

 

 

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

90-179 days (4-6 payments)

 

 

1

 

 

 

1

 

 

 

910

 

 

 

1

 

 

 

24

 

 

 

25

 

 

 

960

 

180 or more days (more than 6
   payments)

 

 

1

 

 

 

—

 

 

 

3,720

 

 

 

—

 

 

 

433

 

 

 

—

 

 

 

4,153

 

Total past due

 

 

2

 

 

 

1

 

 

$

4,630

 

 

$

1

 

 

$

457

 

 

$

25

 

 

$

5,113

 

 

(6)
Interest includes foregone interest of approximately $200 thousand on non-accrual loans past maturity. Interest for December 2022 is due January 1, 2023 and is not included in the payments in arrears at December 31, 2022.
Secured Loans in Non-Accrual Status

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

 

 

 

December 31, 2022

 

 

December 31, 2021

 

Number of loans

 

 

1

 

 

 

4

 

Principal

 

$

3,720

 

 

$

1,044

 

Advances

 

 

60

 

 

 

116

 

Accrued interest(7)

 

 

233

 

 

 

13

 

Total recorded investment

 

$

4,013

 

 

$

1,173

 

Foregone interest

 

$

233

 

 

$

1

 

 

(7)
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. Interest income of $167 thousand and $107 thousand was recognized for loans in non-accrual status in 2022 and 2021, respectively. The amortized cost basis of loans in non-accrual status with no specific allowance at December 31, 2022 and December 31, 2021 is equivalent to the entire balance of loans in non-accrual status since there is no specific allowance recorded for any loan.
Activity in the Allowance for Loan Losses

Activity in the allowance for loan losses for 2022 and 2021 are presented in the following table ($ in thousands).

 

 

 

2022

 

 

2021

 

Balance, January 1

 

$

55

 

 

$

50

 

Provision for loan loss

 

 

—

 

 

 

5

 

Recovery for loan losses

 

 

—

 

 

 

—

 

Balance, December 31

 

$

55

 

 

$

55

 
By Days Past Due [Member]  
Past Due Financing Receivables

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

 

 

 

December 31, 2022

 

 

December 31, 2021

 

 

 

Loans

 

 

Principal

 

 

Loans

 

 

Principal

 

Current

 

 

18

 

 

$

54,359

 

 

 

25

 

 

$

48,274

 

Past Due

 

 

 

 

 

 

 

 

 

 

 

 

30-89 days

 

 

—

 

 

 

—

 

 

 

2

 

 

 

5,782

 

90-179 days

 

 

2

 

 

 

2,009

 

 

 

1

 

 

 

56

 

180 or more days

 

 

1

 

 

 

3,720

 

 

 

3

 

 

 

987

 

Total past due

 

 

3

 

 

 

5,729

 

 

 

6

 

 

 

6,825

 

Total principal, secured loans

 

 

21

 

 

$

60,088

 

 

 

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).

 

 

 

December 31, 2022

 

 

December 31, 2021

 

Number of loans

 

 

3

 

 

 

4

 

Principal

 

$

5,729

 

 

$

1,043

 

Recorded investment(8)

 

 

6,078

 

 

 

1,173

 

Impaired loans without allowance

 

 

6,078

 

 

 

1,173

 

Impaired loans with allowance

 

 

—

 

 

 

—

 

Allowance for loan losses, impaired loans

 

 

—

 

 

 

—

 

Weighted average LTV at origination

 

 

42.3

%

 

 

45.4

%

 

(8)
Recorded investment is the sum of principal, advances, and interest accrued for financial reporting purposes.
Average Balances And Interest Income [Member]  
Impaired Financing Receivables

Loans designated impaired had an average recorded investment and interest income recognized and received in cash as presented in the following table ($ in thousands).

 

 

 

December 31, 2022

 

 

December 31, 2021

 

Average recorded investment

 

$

3,625

 

 

$

8,352

 

Interest income recognized

 

 

296

 

 

 

107

 

Interest income received in cash

 

 

79

 

 

 

98