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LOANS RECEIVABLE (Tables)
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
Schedule of Loans Receivable, Net
Loans receivable consist of the following (in thousands):
 March 31, 2024December 31, 2023
SBA 7(a) loans receivable, subject to credit risk$12,102 $10,393 
SBA 7(a) loans receivable, subject to loan-backed notes41,736 43,983 
SBA 7(a) loans receivable, subject to secured borrowings2,508 3,105 
SBA 7(a) loans receivable, held for sale402 74 
Loans receivable56,748 57,555 
Deferred capitalized costs, net1,125 1,130 
Current expected credit losses(1,644)(1,680)
Loans receivable, net$56,229 $57,005 
Schedule of Allowance for Credit Losses
The following table presents the activity in the Company’s CECL for the three months ended March 31, 2024 and March 31, 2023 (dollar amounts in thousands):
Loans Receivable
Current expected credit losses as of December 31, 2023
$1,680 
Net adjustment to reserve for expected credit losses
(36)
Current expected credit losses as of March 31, 2024$1,644 
Allowance for credit losses as of December 31, 2022
$1,106 
Transition adjustment on January 1, 2023783 
Net adjustment to reserve for expected credit losses51 
Current expected credit losses as of March 31, 2023$1,940 
Schedule of Net Book Value of Loans Receivable Portfolio by Year of Origination, Loan Type and Risk Rating The following table presents the net book value of the Company’s loans receivable portfolio as of March 31, 2024 by year of origination, loan type and risk rating (dollar amounts in thousands):
Amortized Cost of Loans Receivable by Year of Origination
As of March 31, 2024
Number of Loans20242023202220212020Prior Total
Loans by internal risk rating:
1106$1,170 $9,195 $3,814 $7,133 $3,223 $11,701 $36,236 
259476 809 4,298 3,431 2,106 6,240 $17,360 
32— — 242 — — — $242 
4—— — — — — — — 
5—— — — — — — — 
Total167$1,646 $10,004 $8,354 $10,564 $5,329 $17,941 $53,838 
Plus: SBA 7(a) loans receivable, subject to secured borrowings (1)
2,508 
Plus: Deferred capitalized costs, net1,125 
Less: Current expected credit losses
(1,644)
Less: Held for sale guaranteed portion402 
Total loans receivable, net$56,229 
Weighted average risk rating1.4
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(1)The Company does not assign a risk rating to its SBA 7(a) loans receivable that are subject to secured borrowings or the government guaranteed portion of loans held for sale. The Company has determined there is no credit risk associated with these loans since the SBA has guaranteed payment of the principal.