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LOANS RECEIVABLE (Tables)
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Schedule of Loans Receivable
Loans receivable consist of the following:
December 31,
20232022
(in thousands)
SBA 7(a) loans receivable, subject to credit risk$10,393 $56,116 
SBA 7(a) loans receivable, subject to loan-backed notes43,983 — 
SBA 7(a) loans receivable, subject to secured borrowings3,105 6,127 
SBA 7(a) loans receivable, held for sale74 117 
Loans receivable57,555 62,360 
Deferred capitalized costs, net1,130 1,293 
Current expected credit losses (1)(1,680)(1,106)
Loans receivable, net$57,005 $62,547 
____________________
(1)On January 1, 2023, the Company adopted ASU 2016-13. As such, the amounts as of December 31, 2023 reflect the Company’s current estimate of potential credit losses related to the Company’s loans receivable.
Schedule of Allowance for Credit Losses
The following table presents the activity in the Company’s current expected credit losses for the year ended December 31, 2023 (dollar amounts in thousands):
Loans Receivable
Allowance for credit losses as of December 31, 2022$1,106 
Transition adjustment on January 1, 2023783 
Net adjustment to reserve for expected credit losses
51 
Current expected credit losses as of March 31, 20231,940 
Write-offs(85)
Net adjustment to reserve for expected credit losses
(142)
Current expected credit losses as of June 30, 20231,713 
Net adjustment to reserve for expected credit losses
(9)
Current expected credit losses as of September 30, 20231,704 
Net adjustment to reserve for expected credit losses
(24)
Current expected credit losses as of December 31, 2023
$1,680 
Schedule of Credit Quality Indicators Net Book Value of Loans Receivable Portfolio The following table presents the net book value of the Company’s loans receivable portfolio as of December 31, 2023 by year of origination, loan type, and risk rating (dollar amounts in thousands):
Amortized Cost of Loans Receivable by Year of Origination
As of December 31, 2023
Number of Loans20232022202120202019Prior Total
Loans by internal risk rating:
1120$3,479 $6,073 $10,117 $3,445 $3,697 $9,475 $36,286 
2486,532 2,294 1,138 2,159 1,492 4,377 17,992 
31— — — — — 172 172 
4—— — — — — — — 
5—— — — — — — — 
Total169$10,011 $8,367 $11,255 $5,604 $5,189 $14,024 $54,450 
Plus: SBA 7(a) loans receivable, subject to secured borrowings (1)
3,105 
Plus: Deferred capitalized costs, net1,130 
Less: Current expected credit losses
(1,680)
Total loans receivable, net$57,005 
Weighted average risk rating1.3
____________________
(1)The Company does not assign a risk rating to its SBA 7(a) loans receivable, subject to secured borrowings, as this balance represents the government guaranteed portions of its loans and has determined there is no credit risk associated with these loans since the SBA has guaranteed payment of the principal.