Schedule IV—Mortgage Loans on Real Estate

December 31, 2016

(dollars in thousands, except footnotes)



																Principal
																Amount of
																Loans Subject
Geographic	Number								Final			Carrying				to Delinquent
Dispersion of	of	Size of Loans							Maturity			Amount of				Principal or
Collateral	Loans	From		To		Interest Rate			Date Range			Mortgages (1)				"Interest"

SBA 7(a) Loans - States 2% or greater (2) (3):
Michigan	23	$	10	$	870	5.25%	to	6.25%	10/10/33	—	10/04/41	$	6,354			$	—
Ohio	21	$	—	$	950	5.25%	to	6.25%	10/16/20	—	11/25/41	5,801				—
Indiana	16	$	40	$	1,040	5.00%	to	6.25%	03/17/35	—	11/26/41	4,707				—
Texas (4)	28	$	—	$	650	4.38%	to	6.25%	02/01/17	—	08/25/41	4,090				506
Virginia	8	$	160	$	660	5.75%	to	6.25%	06/20/37	—	11/29/41	2,751				—
Kentucky	7	$	110	$	410	5.50%	to	6.25%	04/09/35	—	08/17/41	1,644				—
Florida	8	$	10	$	360	5.50%	to	6.25%	06/19/19	—	06/14/41	1,545				—
Alabama	6	$	40	$	460	5.25%	to	6.25%	07/27/25	—	05/30/40	1,402				—
Illinois	4	$	60	$	790	5.75%	to	6.25%	09/17/35	—	05/15/42	1,358				—
Missouri	5	$	50	$	440	5.50%	to	6.25%	03/29/22	—	05/26/41	1,309				—
Wisconsin (5)	7	$	10	$	250	5.25%	to	6.25%	04/23/20	—	07/17/38	1,135				249
Arizona	5	$	30	$	440	6.00%	to	6.25%	01/12/33	—	05/21/40	993				—
South Carolina	6	$	—	$	380	5.50%	to	6.25%	08/18/18	—	07/30/41	955				—
North Carolina	3	$	90	$	660	6.00%	to	6.25%	09/08/32	—	06/25/40	909				—
Georgia	5	$	100	$	230	5.75%	to	6.25%	05/23/20	—	06/07/41	834				—
Colorado	5	$	—	$	380	5.00%	to	6.25%	03/04/18	—	02/17/41	833				—
Other	21	$	—	$	480	5.17%	to	6.25%	02/10/20	—	11/17/41	3,983				—
Government guaranteed portions (6)												4,868				—
SBA 7(a) loans, subject to secured borrowings (7)												27,899				—
General reserves												(223		)		—
	178											73,147			(1)	755

Conventional Loans - States 2% or greater (8):
Arizona	1	—		—		6.85%			05/21/25			1,237				—
Ohio (9)	1	—		—		10.85%			11/25/19			926				—
North Carolina (10)	1	—		—		7.50%			02/06/19			430				—
	3											2,593				—

	181											$	75,740		(11)	$	755


(1)	Excludes general reserves of $223,000.


(2)	Includes $151,000 of loans not secured by real estate. Also includes $241,000 of loans with subordinate lien positions.


(3)	Interest rates are variable at spreads over the prime rate unless otherwise noted.


(4)	Includes two loans with retained face values of $11,000 and $33,000 respectively both with a fixed interest rate of 6.00%. Also includes a loan with a retained face value of $598,000, a valuation reserve of $16,000 and a fixed interest rate of 6.25%.


(5)	Includes a loan with a retained face value of $431,000, a valuation reserve of $32,000 and a fixed interest rate of 6.25%.


(6)	Represents the government guaranteed portions of our SBA 7(a) loans detailed above retained by us. As there is no risk of loss to us related to these portions of the guaranteed loans, the geographic information is not presented as it is not meaningful.


(7)	Represents the guaranteed portion of SBA 7(a) loans which were sold with the proceeds received from the sale reflected as secured borrowings. For Federal income tax purposes, these proceeds are treated as sales and reduce the carrying value of loans receivable.


(8)	Conventional loans have both variable and fixed rates of interest.


(9)	Loan is secured by a second lien on the property which is subordinated to our first lien on the property.


(10)	Loan has a face value of $443,000 and a fixed interest rate of 7.50%.


(11)	For Federal income tax purposes, the aggregate cost basis of our loans was $46,817,000 (unaudited).

Schedule IV—Mortgage Loans on Real Estate (Continued)

December 31, 2016

(in thousands)



Balance at March 11, 2014 (1)	$	207,140
Additions during period:
New mortgage loans	50,971
Other - deferral for collection of commitment fees, net of costs	634
Other - accretion of loan fees and discounts	5,442

Deductions during period:
Collections of principal	(49,373		)
Foreclosures	(1,098		)
Cost of mortgages sold, net	(24,522		)
Other - bad debt expense, net of recoveries	(142		)
Balance at December 31, 2014	189,052

Additions during period:
New mortgage loans	59,467
Other - deferral for collection of commitment fees, net of costs	385
Other - accretion of loan fees and discounts	6,841

Deductions during period:
Collections of principal	(44,261		)
Foreclosures	(708		)
Cost of mortgages sold, net	(29,799		)
Other - sale of mortgage loans	(77,121		)
Other - bad debt expense, net of recoveries	(416		)
Balance at December 31, 2015	103,440

Additions during period:
New mortgage loans (2)	105,201
Other - recoveries of bad debts, net of bad debt expense	199
Other - accretion of loan fees and discounts	1,592

Deductions during period:
Collections of principal	(37,336		)
Foreclosures	(92		)
Cost of mortgages sold, net	(41,040		)
Other - collection of commitment fees, net of costs	(739		)
Other - reclassification from secured borrowings	(2,663		)
Other - sale of commercial real estate loans (Note 8)	(52,822		)
Balance at December 31, 2016	$	75,740


(1)	In connection with the reverse merger completed on March 11, 2014 we acquired loans receivable which were recorded at fair value.


(2)	Includes $966,000 of non cash additions to commercial real estate loans for interest.