5. Loans Receivable

BBX Capital’s loans receivable portfolio consisted of the following components (in thousands):



		March 31,	December 31,
		2016	2015
Commercial non-real estate	$	11,231	11,250
Commercial real estate		16,017	16,294
Small business		3,614	4,054
Consumer		2,264	2,368
Residential		155	69
Total loans, net of discount		33,281	34,035
Allowance for loan losses		-	-
Loans receivable -- net	$	33,281	34,035

As of March 31, 2016, foreclosure proceedings were in-process on $0.3 million of consumer loans.

The total discount on loans receivable was $3.2 million and $3.3 million as of March 31, 2016 and December 31, 2015, respectively.

The recorded investment (unpaid principal balance less charge-offs and discounts) of non-accrual loans receivable was (in thousands):



		March 31,	December 31,
Loan Class		2016	2015
Commercial non-real estate	$	1,231	1,250
Commercial real estate		9,543	9,639
Small business		3,614	4,054
Consumer		2,165	2,368
Residential		155	69
Total nonaccrual loans	$	16,708	17,380

An age analysis of the past due recorded investment in loans receivable as of March 31, 2016 and December 31, 2015 was as follows (in thousands):



							Total
		31-59 Days	60-89 Days	90 Days	Total		Loans
March 31, 2016		Past Due	Past Due	or More (1)	Past Due	Current	Receivable
Commercial non-real estate	$	-	-	329	329	10,902	11,231
Commercial real estate		-	-	3,986	3,986	12,031	16,017
Small business		-	27	-	27	3,587	3,614
Consumer		108	-	622	730	1,534	2,264
Residential		-	23	132	155	-	155
Total	$	108	50	5,069	5,227	28,054	33,281



							Total
		31-59 Days	60-89 Days	90 Days	Total		Loans
December 31, 2015		Past Due	Past Due	or More (1)	Past Due	Current	Receivable
Commercial non-real estate	$	-	-	329	329	10,921	11,250
Commercial real estate		-	-	3,986	3,986	12,308	16,294
Small business:		-	205	-	205	3,849	4,054
Consumer		316	138	562	1,016	1,352	2,368
Residential		-	24	42	66	3	69
Total	$	316	367	4,919	5,602	28,433	34,035

(1) BBX Capital had no loans that were 90 days or more past due and still accruing interest as of March 31, 2016 and December 31, 2015.

The activity in the allowance for loan losses for the three months ended March 31, 2016 and 2015 was as follows (in thousands):



		For the Three Months
		Ended March 31,
Allowance for Loan Losses:		2016	2015
Beginning balance	$	-	977
Charge-offs :		(30)	(675)
Recoveries :		1,778	3,900
Provision:		(1,748)	(3,821)
Ending balance	$	-	381
Ending balance individually evaluated for impairment	$	-	-
Ending balance collectively evaluated for impairment		-	381
Total	$	-	381
Loans receivable:
Ending balance individually evaluated for impairment	$	12,924	17,018
Ending balance collectively evaluated for impairment		20,357	9,945
Total	$	33,281	26,963
Proceeds from loan sales	$	-	89

Impaired Loans - Loans are considered impaired when, based on current information and events, BBX Capital believes it is probable that it will be unable to collect all amounts due according to the contractual terms of the loan agreement. For a loan that has been restructured, the contractual terms of the loan agreement refer to the contractual terms specified by the original loan agreement, not the contractual terms specified by the restructured agreement. Impairment is evaluated based on past due status for consumer and residential loans. Impairment is evaluated for commercial and small business loans based on past payment history, financial strength of the borrower or guarantors, and cash flow associated with the collateral or business. If a loan is impaired, a specific valuation allowance is established, if necessary, based on the present value of estimated future cash flows using the loan’s existing interest rate or based on the fair value of the loan. Collateral dependent impaired loans are charged down to the fair value of collateral less cost to sell. Interest payments on impaired loans are recognized on a cash basis as interest income. Impaired loans, or portions thereof, are charged off when deemed uncollectible.

Impaired loans as of March 31, 2016 and December 31, 2015 were as follows (in thousands):



		As of March 31, 2016			As of December 31, 2015
			Unpaid			Unpaid
		Recorded	Principal	Related	Recorded	Principal	Related
		Investment	Balance	Allowance	Investment	Balance	Allowance

Total with allowance recorded	$	-	-	-	-	-	-
Total with no allowance recorded		16,708	29,450	-	17,380	30,212	-
Total	$	16,708	29,450	-	17,380	30,212	-

Average recorded investment and interest income recognized on impaired loans for the three months ended March 31, 2016 and 2015 were as follows (in thousands):



		For the Three Months Ended March 31,
		2016		2015
		Average Recorded	Interest Income	Average Recorded	Interest Income
		Investment	Recognized	Investment	Recognized
Total with allowance recorded	$	-	-	273	1
Total with no allowance recorded		16,797	337	17,145	228
Total	$	16,797	337	17,418	229

Impaired loans without valuation allowances represent loans that were written-down to the fair value of the collateral less cost to sell, loans in which the collateral value less cost to sell was greater than the carrying value of the loan, loans in which the present value of the cash flows discounted at the loans’ effective interest rate were equal to or greater than the carrying value of the loans, or loans that were collectively measured for impairment.

BBX Capital had no commitments to lend additional funds on impaired loans as of March 31, 2016.