Loans Receivable, net (Tables)

12 Months Ended

Dec. 31, 2012

Loans Receivable, net [Abstract]

Loans receivables, net

Loans receivable, net, consisted of the following:

	December 31,
	2012		2011
	(In thousands)
Commercial mortgage loans	$	128,401	$	134,835
SBIC commercial mortgage loans		47,621		32,416
SBA 7(a) loans, subject to secured borrowings		37,909		30,151
SBA 7(a) loans		28,196		23,238
Commercial mortgage loans, subject to structured notes payable (1)		-		15,474
Total loans receivable		242,127		236,114
Add/(deduct):
Deferred capitalized costs, net		277		125
Loan loss reserves		(3,413)		(1,812)
Loans receivable, net	$	238,991	$	234,427

(1) We repaid the remaining 2003 Joint Venture structured notes on February 15, 2012.

Aging of loans Receivable

December 31, 2012
Category	Totals			Commercial Mortgage Loans			SBA 7(a) Loans
	(Dollars in thousands)
Current (1)	$	198,282	97.1%	$	170,429	96.8%	$	27,853	98.8%
Between 30 and 59 days delinquent (2)		2,824	1.4%		2,482	1.4%		342	1.2%
Between 60 and 89 days delinquent		1	-		-	-		1	-
Over 89 days delinquent (3)		3,111	1.5%		3,111	1.8%		-	-
	$	204,218	100.0%	$	176,022	100.0%	$	28,196	100.0%

(1) Includes $7.6 million of commercial mortgage loans classified as troubled debt restructurings which are current at December 31, 2012 based on revised note terms.

(2) Includes $2.3 million of loans classified as troubled debt restructurings. We are currently in the process of foreclosing on the collateral underlying an SBA 7(a) Program loan – a limited service hospitality property - with a principal balance of $211,000 (excluding the government guaranteed portion as it was sold as a hybrid).

(3) Loans are classified as troubled debt restructurings. We are currently in the process of foreclosing on the collateral underlying these loans – two limited service hospitality properties.

December 31, 2011
Category	Totals			Commercial Mortgage Loans			SBA 7(a) Loans
	(Dollars in thousands)
Current (1)	$	202,217	98.2%	$	179,497	98.2%	$	22,720	97.7%
Between 30 and 59 days delinquent		1,224	0.6%		1,090	0.6%		134	0.6%
Between 60 and 89 days delinquent		696	0.3%		696	0.4%		-	-
Over 89 days delinquent (2)		1,826	0.9%		1,442	0.8%		384	1.7%
	$	205,963	100.0%	$	182,725	100.0%	$	23,238	100.0%

(1) Includes $6.3 million of loans classified as troubled debt restructurings which were current based on revised note terms. Of these loans, $5.6 million were paying interest only.

(2) Includes a $1.4 million loan on which the borrowers filed for Chapter 11 Bankruptcy. We were classified as a secured creditor in the bankruptcy proceedings.

Classified loans receivable

Management has classified our Loans Receivable Subject To Credit Risk as follows (balances represent our investment in the loans prior to loan loss reserves and deferred commitment fees):

	December 31, 2012
	Totals		%		Commercial Mortgage Loans		%		SBA 7(a) Loans		%
	(Dollars in thousands)
Satisfactory	$	187,749		92.0%	$	159,994		90.9%	$	27,755		98.5%
OAEM		81		-		-		-		81		0.3%
Substandard		13,043		6.4%		12,917		7.3%		126		0.4%
Doubtful		3,345		1.6%		3,111		1.8%		234		0.8%
	$	204,218		100.0%	$	176,022		100.0%	$	28,196		100.0%

	December 31, 2011
	Totals		%		Commercial Mortgage Loans		%		SBA 7(a) Loans		%
	(Dollars in thousands)
Satisfactory	$	189,836		92.2%	$	167,397		91.6%	$	22,439		96.6%
OAEM		3,354		1.6%		3,317		1.8%		37		0.1%
Substandard		10,790		5.2%		10,569		5.8%		221		1.0%
Doubtful		1,983		1.0%		1,442		0.8%		541		2.3%
	$	205,963		100.0%	$	182,725		100.0%	$	23,238		100.0%

Loan loss reserves

The activity in our loan loss reserves was as follows:

	Year Ended December 31, 2012
	Total		Commercial Mortgage Loans		SBA 7(a) Loans
	(In thousands)
Balance, beginning of year	$	1,812	$	1,329	$	483
Provision for loan losses		2,505		2,219		286
Reduction of loan losses		(104)		(70)		(34)
Recoveries		(467)		(467)		-
Principal balances written-off, net		(333)		(161)		(172)
Balance, end of year	$	3,413	$	2,850	$	563

	Year Ended December 31, 2011
	Total		Commercial Mortgage Loans		SBA 7(a) Loans
	(In thousands)
Balance, beginning of year	$	1,609	$	1,303	$	306
Provision for loan losses		826		429		397
Reduction of loan losses		(366)		(342)		(24)
Principal balances written-off		(257)		(61)		(196)
Balance, end of year	$	1,812	$	1,329	$	483

	Year Ended December 31, 2010
	Total		Commercial Mortgage Loans		SBA 7(a) Loans
	(In thousands)
Balance, beginning of year	$	1,257	$	1,055	$	202
Provision for loan losses		1,019		607		412
Reduction of loan losses		(378)		(309)		(69)
Consolidation of the 2000 Joint Venture and the 1998 Partnership reserves		184		184		-
Principal balances written-off		(473)		(234)		(239)
Balance, end of year	$	1,609	$	1,303	$	306

Loans considered to be impaired loans

Information on those loans considered to be impaired was as follows:

	At December 31, 2012
	Total		Commercial Mortgage Loans		SBA 7(a) Loans
	(In thousands)
Impaired loans requiring reserves (1)	$	10,927	$	10,049	$	878
Impaired loans expected to be fully recoverable (1)		2,244		2,123		121
Total impaired loans (2)	$	13,171	$	12,172	$	999
Loan loss reserves	$	1,535	$	1,382	$	153
	At December 31, 2011
	Total		Commercial Mortgage Loans		SBA 7(a) Loans
	(In thousands)
Impaired loans requiring reserves (1)	$	7,411	$	7,027	$	384
Impaired loans expected to be fully recoverable (1)		846		689		157
Total impaired loans (3)	$	8,257	$	7,716	$	541
Loan loss reserves	$	563	$	372	$	191
	At December 31, 2010
	Total		Commercial Mortgage Loans		SBA 7(a) Loans
	(In thousands)
Impaired loans requiring reserves (1)	$	687	$	419	$	268
Impaired loans expected to be fully recoverable (1)		228		228		-
Total impaired loans (4)	$	915	$	647	$	268
Loan loss reserves	$	219	$	25	$	194

(1) Balances represent our recorded investment. For 2012 and 2011, includes loans classified as troubled debt restructurings.

(2) The unpaid principal balance of our impaired commercial mortgage loans was $12,704,000 at December 31, 2012. The unpaid principal balance of our impaired SBA 7(a) loans (excluding the government guaranteed portion) was $362,000 at December 31, 2012.

(3) The unpaid principal balance of our impaired commercial mortgage loans was $7,940,000 at December 31, 2011. The unpaid principal balance of our impaired SBA 7(a) loans (excluding the government guaranteed portion) was $593,000 at December 31, 2011.

(4) The unpaid principal balance of our impaired commercial mortgage loans was $678,000 at December 31, 2010. The unpaid principal balance of our impaired SBA 7(a) loans (excluding the government guaranteed portion) was $288,000 at December 31, 2010.

	Year Ended December 31, 2012
	Total		Commercial Mortgage Loans		SBA 7(a) Loans
	(In thousands)
Average impaired loans	$	9,895	$	9,116	$	779
Interest income on impaired loans	$	372	$	359	$	13
	Year Ended December 31, 2011
	Total		Commercial Mortgage Loans		SBA 7(a) Loans
	(In thousands)
Average impaired loans	$	8,176	$	7,610	$	566
Interest income on impaired loans	$	290	$	271	$	19
	Year Ended December 31, 2010
	Total		Commercial Mortgage Loans		SBA 7(a) Loans
	(In thousands)
Average impaired loans	$	4,317	$	3,558	$	759
Interest income on impaired loans	$	114	$	89	$	25

Troubled Debt Restructurings

Information on our troubled debt restructurings was as follows at December 31, 2012 and 2011:

	December 31, 2012
	Commercial Mortgage Loans				SBA 7(a) Loan
	Recorded Investment		Unpaid Principal Balance		Recorded Investment		Unpaid Principal Balance
	(In thousands)
Troubled debt restructurings requiring reserves (1)	$	10,049	$	10,531	$	854	$	846
Troubled debt restructurings without reserves		2,123		2,172		-		-
Total troubled debt restructurings	$	12,172	$	12,703	$	854	$	846
Number of loans		8				1
Loan loss reserves	$	1,382			$	130

(1) The SBA 7(a) loan recorded investment and unpaid principal balance includes the government guaranteed portion of $634,000 on which we have no credit loss exposure. This loan is no longer complying with its modified terms, including lack of required payments. We are currently in the process of foreclosing on the collateral underlying this loan.

	December 31, 2011
	Commercial Mortgage Loans
	Recorded Investment		Unpaid Principal Balance
	(In thousands)
Troubled debt restructurings requiring reserves	$	5,591	$	5,730
Troubled debt restructurings without reserves		689		749
Total troubled debt restructurings	$	6,280	$	6,479
Number of loans		4
Loan loss reserves	$	236