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Loans (Tables)

6 Months Ended

Jun. 30, 2016

Secured loan transactions are summarized in the following table for the six months ended June 30, 2016 and 2015, respectively ($ in thousands).

	2016			2015
Principal, January 1	$	62,740		$	71,017
Loans funded or acquired		46,770			20,980
Principal payments received		(16,634	)		(15,942	)
Loans sold to affiliates		(2,000	)		(4,637	)
Foreclosures		(345	)		—
Other - loans charged off against allowance		—			(65	)
Principal, June 30	$	90,531		$	71,353

Secured Loans Characteristics

Secured loans had the characteristics presented in the following table as of June 30, 2016 and December 31, 2015 ($ in thousands).

	June 30,			December 31,
	2016			2015
Number of secured loans		56			53
Secured loans – principal	$	90,531		$	62,740
Secured loans – lowest interest rate (fixed)		5.0	%		5.0	%
Secured loans – highest interest rate (fixed)		11.0	%		11.0	%

Average secured loan – principal	$	1,617		$	1,184
Average principal as percent of total principal		1.8	%		1.9	%
Average principal as percent of partners’ capital		0.9	%		0.6	%
Average principal as percent of total assets		0.8	%		0.6	%

Largest secured loan – principal	$	14,000		$	14,000
Largest principal as percent of total principal		15.5	%		22.3	%
Largest principal as percent of partners’ capital		7.9	%		7.5	%
Largest principal as percent of total assets		7.1	%		6.7	%

Smallest secured loan – principal	$	94		$	95
Smallest principal as percent of total principal		0.1	%		0.2	%
Smallest principal as percent of partners’ capital		0.1	%		0.1	%
Smallest principal as percent of total assets		0.1	%		0.1	%

Number of counties where security is located (all California)	18				20
Largest percentage of principal in one county		25.5	%		23.7	%

Number of secured loans in foreclosure status		—			1
Secured loans in foreclosure – principal	$	—		$	345

Number of secured loans with an interest reserve		—			—
Interest reserves	$	—		$	—

Secured Loans by Lien Position in the Collateral

At funding, secured loans had the following lien positions and are presented in the following table as of June 30, 2016 and December 31, 2015 ($ in thousands).

	June 30, 2016								December 31, 2015
	Loans		Principal			Percent			Loans		Principal			Percent
First trust deeds		33	$	66,828			74	%		32	$	44,078			70	%
Second trust deeds		22		20,703			23			21		18,662			30
Third trust deeds		1		3,000			3			—		—			—
Total secured loans		56	$	90,531			100	%		53		62,740			100	%
Liens due other lenders at loan closing				33,765								30,920

Total debt			$	124,296							$	93,660

Appraised property value at loan closing			$	245,659							$	178,188

Percent of total debt to appraised values (LTV) at loan closing⁽¹⁾				51.8	%							54.5	%

(1)

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 owing on senior liens to other lenders.

Secured Loans by Property Type of the Collateral

Secured loans summarized by property type are presented in the following table as of June 30, 2016 and December 31, 2015 ($ in thousands).

	June 30, 2016						December 31,2015
	Loans	Principal		Percent			Loans	Principal		Percent
Single family⁽²⁾	37	$	39,843		44	%	33	$	27,673		45	%
Multi-family	2		893	1			1		584	1
Commercial	16		49,345	54			18		34,033	53
Land	1		450	1			1		450	1
Total secured loans	56	$	90,531		100	%	53	$	62,740		100	%

(2)

Single family property type as of June 30, 2016 consists of 15 loans with principal of approximately $12,358,000 that are owner occupied and 22 loans with principal of approximately $27,485,000 that are non-owner occupied. At December 31, 2015, single family property consisted of 15 loans with principal of approximately $14,157,000 that were owner occupied and 18 loans with principal of approximately $13,516,000 that were non-owner occupied.

Secured Loans Distributed within California

The distribution of secured loans outstanding by the California county in which the primary collateral is located is presented in the following table as of June 30, 2016 and December 31, 2015 ($ in thousands).

	June 30, 2016					December 31, 2015
	Unpaid Principal Balance		Percent			Unpaid Principal Balance		Percent
San Francisco Bay Area⁽³⁾
San Mateo	$	18,608		20.5	%	$	8,008		12.8	%
Contra Costa		14,325		15.8			14,327		22.8
San Francisco		11,727		12.9			7,656		12.2
Alameda		9,443		10.4			920		1.5
Solano		1,875		2.1			2,575		4.1
Santa Clara		1,192		1.3			4,924		7.9
Napa		969		1.1			976		1.6
Marin		774		0.9			674		1.1
		58,913		65.0			40,060		64.0
Other Northern California
El Dorado		2,044		2.3			2,045		3.2
Monterey		3,519		3.9			1,366		2.2
Santa Cruz		891		1.0			928		1.5
Sacramento		420		0.5			421		0.6
Calaveras		153		0.2			156		0.2
San Benito		94		0.1			95		0.1
		7,121		8.0			5,011		7.8
Total Northern California		66,034		73.0			45,071		71.8

Los Angeles & Coastal
Los Angeles		23,050		25.5			14,873		23.7
Orange		667		0.7			669		1.1
San Diego		675		0.7			375		0.6
Ventura		—		—			344		0.5
		24,392		26.9			16,261		25.9
Other Southern California
Kern		105		0.1			108		0.2
San Bernardino		—		—			1,300		2.1
		105		0.1			1,408		2.3
Total Southern California		24,497		27.0			17,669		28.2
Total Secured Loans Balance	$	90,531		100.0	%	$	62,740		100.0	%

(3)	Includes the Silicon Valley

Secured Loans Scheduled Maturities

Secured loans are scheduled to mature as presented in the following table ($ in thousands).

Scheduled maturities, as of June 30, 2016	Loans		Principal		Percent
2016⁽⁴⁾		4	$	1,467		2	%
2017		20		28,955		32
2018		7		19,133		21
2019		14		31,735		35
2020		6		3,200		4
2021		3		1,150		1
Thereafter		1		891		1
Total future maturities		55		86,531		96
Matured as of June 30, 2016		1		4,000		4
Total secured loan balance		56	$	90,531		100	%

(4)	Loans maturing in 2016 from July 1 to December 31.

Schedule of Financing Receivables, Non Accrual Status

Secured loans in non-accrual status are summarized in the following table as of June 30, 2016 and December 31, 2015 ($ in thousands).

	June 30,		December 31,
	2016		2015
Number of loans		1		2
Principal	$	231	$	577
Advances		2		32
Accrued interest		0		14
Loan balance	$	233	$	623
Foregone interest	$	—	$	—

By Days Past Due [Member]

Past Due Financing Receivables

Secured loans summarized by payment delinquency are presented in the following table as of June 30, 2016 and December 31, 2015 ($ in thousands).

	June 30, 2016				December 31, 2015
	Loans		Amount		Loans		Amount
Past Due
30-89 days		—	$	—		—	$	—
90-179 days		2		793		1		345
180 or more days		1		4,000		—		—
Total past due		3	$	4,793		1		345
Current		53		85,738		52		62,395
Total secured loan balance		56	$	90,531		53	$	62,740

Past Due [Member]

Past Due Financing Receivables

Secured loans past maturity are summarized in the following table as of June 30, 2016 and December 31, 2015 ($ in thousands).

	June 30,			December 31,
	2016			2015
Number of loans⁽⁵⁾		1			1
Principal	$	4,000		$	4,000
Advances		—			—
Accrued interest		198			85
Total secured loan balance	$	4,198		$	4,085
Percent of principal		4	%		6	%

(5)

At June 30, 2016 and December 31, 2015, the loan past maturity was not designated non-accrual, as the loan has an LTV substantially below 50%. The borrower has listed the property for sale and – due to the substantial protective equity in the property - it is reasonably assured that the partnership will be paid in full accordance with the note.

Impaired Loans [Member]

Impaired Financing Receivables

Impaired loans had the balances shown and the associated allowance for loan losses presented in the following table as of June 30, 2016 and December 31, 2015 ($ in thousands).

	June 30,		December 31,
	2016		2015
Principal	$	4,384	$	732
Recorded investment⁽⁶⁾	$	4,590	$	784
Impaired loans without allowance	$	4,590	$	784
Impaired loans with allowance	$	—	$	—
Allowance for loan losses, impaired loans	$	—	$	—

Number of Loans		3		3

(6)	Recorded investment is the sum of principal, advances, and interest accrued for financial reporting purposes.

Average Balances And Interest Income [Member]

Impaired Financing Receivables

Impaired loans had the average balances and interest income recognized and received in cash as presented in the following table as of, and for, the six months ended June 30, 2016 and the year ended December 31, 2015 ($ in thousands).

	June 30,		December 31,
	2016		2015
Average recorded investment	$	2,687	$	10,992
Interest income recognized	$	212	$	43
Interest income received in cash	$	13	$	29