LOANS RECEIVABLE (Tables)
|
12 Months Ended |
Dec. 31, 2023 |
|---|
| Receivables [Abstract] |
|
| Schedule of Loans Receivable |
Loans receivable consist of the following: | | | | | | | | | | | | | | | | | December 31, | | | 2023 | | 2022 | | | (in thousands) | | SBA 7(a) loans receivable, subject to credit risk | | $ | 10,393 | | | $ | 56,116 | | | SBA 7(a) loans receivable, subject to loan-backed notes | | 43,983 | | | — | | | | | | | | SBA 7(a) loans receivable, subject to secured borrowings | | 3,105 | | | 6,127 | | | SBA 7(a) loans receivable, held for sale | | 74 | | | 117 | | | Loans receivable | | 57,555 | | | 62,360 | | | Deferred capitalized costs, net | | 1,130 | | | 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, 2023 | | 783 | | Net adjustment to reserve for expected credit losses | | 51 | | | Current expected credit losses as of March 31, 2023 | | 1,940 | | | Write-offs | | (85) | | Net adjustment to reserve for expected credit losses | | (142) | | | Current expected credit losses as of June 30, 2023 | | 1,713 | | | | | Net adjustment to reserve for expected credit losses | | (9) | | | Current expected credit losses as of September 30, 2023 | | 1,704 | | 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 Loans | | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | | Loans by internal risk rating: | | | | | | | | | | | 1 | 120 | | $ | 3,479 | | $ | 6,073 | | $ | 10,117 | | $ | 3,445 | | $ | 3,697 | | $ | 9,475 | | $ | 36,286 | | | 2 | 48 | | 6,532 | | 2,294 | | 1,138 | | 2,159 | | 1,492 | | 4,377 | | 17,992 | | | 3 | 1 | | — | | — | | — | | — | | — | | 172 | | 172 | | | 4 | — | | — | | — | | — | | — | | — | | — | | — | | | 5 | — | | — | | — | | — | | — | | — | | — | | — | | | Total | 169 | | $ | 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, net | | | | | | | | | 1,130 | | Less: Current expected credit losses | | | | | | | | | (1,680) | | | Total loans receivable, net | | | | | | | | | $ | 57,005 | | | | | | | | | | | | | Weighted average risk rating | | | | | | | | | 1.3 |
____________________(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.
|