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Commercial Loans (Tables) - Commercial Loans
 12 Months Ended
Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Summary of Classifications and Carrying Value of Loans
The following table summarizes the classifications and carrying value of commercial loans at December 31, 2015 and December 31, 2014.
Table 7.1 – Classifications and Carrying Value of Commercial Loans
(In Thousands)
 
December 31, 2015
 
December 31, 2014
Held-for-sale, at fair value
 
$
39,141

 
$
166,234

Held-for-investment
 
 
 
 
At fair value
 
67,657

 
71,262

At amortized cost
 
295,849

 
329,431

Total Commercial Loans
 
$
402,647

 
$
566,927
Carrying Value for Loans Held-for-Investment
The following table provides additional information for our commercial loans held-for-investment at amortized cost at December 31, 2015 and December 31, 2014.
Table 7.2 – Carrying Value for Commercial Loans Held-for-Investment
(In Thousands)
 
December 31, 2015
 
December 31, 2014
Principal balance
     
$
307,047

 
$
341,750

Unamortized discount, net
 
(4,096
)
 
(4,862
)
Recorded investment
 
302,951

 
336,888

Allowance for loan losses
 
(7,102
)
 
(7,457
)
Carrying Value
 
$
295,849

 
$
329,431
Commercial Loans Held-for-Investment by Risk Category
The following table presents the principal balance of commercial loans held-for-investment by risk category.
Table 7.3 – Principal Balance of Commercial Loans Held-for-Investment by Risk Category
(In Thousands)
 
December 31, 2015
 
December 31, 2014
Pass
 
$
272,768

 
$
316,122

Watch list
 
34,279

 
25,628

Total Commercial Loans Held-for-Investment
 
$
307,047

 
$
341,750
Summary of Activity in Allowance for Loans Losses
The following table summarizes the activity in the allowance for commercial loan losses for the years ended December 31, 2015, 2014, and 2013.
Table 7.4 – Activity in the Allowance for Commercial Loan Losses
 
 
Years Ended December 31,
(In Thousands)
 
2015
 
2014
 
2013
Balance at beginning of period
 
$
7,457

 
$
7,373

 
4,084

Charge-offs, net
 
—

 
—

 
—

(Reversal of) provision for loan losses
 
(355
)
 
84

 
3,289

Balance at End of Period
 
$
7,102

 
$
7,457

 
$
7,373
Loans Evaluated for Impairment
The following table summarizes the balances for loans collectively evaluated for impairment at December 31, 2015 and December 31, 2014.
Table 7.5 – Loans Collectively Evaluated for Impairment Review
(In Thousands)
 
December 31, 2015
 
December 31, 2014
Principal balance
 
$
307,047

 
$
341,750

Recorded investment
 
302,951

 
336,888

Related allowance
 
7,102

 
7,457
Geographic Concentration of Loans Recorded on Consolidated Balance Sheet
The following table displays the geographic concentration of commercial loans recorded on our consolidated balance sheets at December 31, 2015 and 2014.
Table 7.6 – Geographic Concentration of Commercial Loans
 
 
December 31, 2015
 
December 31, 2014
Geographic Concentration (by Principal)
 
Held-for-Sale
 
Held-for-
Investment
 
Held-for-Sale
 
Held-for-
Investment
Nevada
 
45
%
 
—
%
 
—
%
 
—
%
Virginia
 
26
%
 
—
%
 
—
%
 
—
%
Florida
 
18
%
 
10
%
 
—
%
 
17
%
Illinois
 
11
%
 
—
%
 
—
%
 
—
%
California
 
—
%
 
22
%
 
6
%
 
19
%
New York
 
—
%
 
19
%
 
—
%
 
18
%
Michigan
 
—
%
 
10
%
 
18
%
 
8
%
Washington, District of Columbia
 
—
%
 
—
%
 
25
%
 
—
%
Colorado
 
—
%
 
—
%
 
17
%
 
—
%
Connecticut
 
—
%
 
—
%
 
10
%
 
—
%
Texas
 
—
%
 
5
%
 
9
%
 
—
%
Maryland
 
—
%
 
—
%
 
7
%
 
—
%
North Carolina
 
—
%
 
—
%
 
—
%
 
6
%
Other states (none greater than 5%)
 
—
%
 
34
%
 
8
%
 
32
%
Total
 
100
%
 
100
%
 
100
%
 
100
%
Loan Product Type and Accompanying Loan Characteristics of Loans
The following table displays the loan product type and accompanying loan characteristics of commercial loans recorded on our consolidated balance sheets at December 31, 2015 and 2014.
Table 7.7 – Characteristics and Product Types of Commercial Loans
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In Thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan Balance
 
 
Number of
Loans
 
Interest
 Rate
 
Maturity
Date
 
Total
Principal
 
30-89
Days
DQ
 
90+
Days
DQ
Held-for-Investment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed-rate loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
—

to
$
5,000

 
 
40

 
9.50
%
to
12.50
%
 
2016-08
-
2024-12
 
$
109,973

 
$
—

 
$
—

 
$
5,001

to
$
10,000

 
 
11

 
4.43
%
to
11.00
%
 
2015-04
-
2025-01
 
87,510

 
—

 
—

 
$
10,001

to
$
15,000

 
 
3

 
9.50
%
to
9.50
%
 
2018-01
-
2021-06
 
42,374

 
—

 
—

 
$
15,001

to
$
20,000

 
 
1

 
10.50
%
to
11.00
%
 
2016-06
-
2022-06
 
20,000

 
—

 
—

 
$
25,001

to
$
30,000

 
 
1

 
 
 
10.00
%
 
 
 
2016-10
 
25,405

 
—

 
—

 
 
 
 
 
 
56

 
 
 
 
 
 
 
 
 
285,262

 
—

 
—

ARM loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
—

to
$
5,000

 
 
1

 
11.20
%
to
11.20
%
 
2016-11
-
2016-11
 
1,330

 
—

 
—

 
$
5,001

to
$
10,000

 
 
1

 
12.00
%
to
12.00
%
 
2015-02
-
2016-10
 
5,455

 
—

 
—

 
$
10,001

to
$
15,000

 
 
1

 
9.16
%
to
9.16
%
 
2014-11
-
2016-08
 
15,000

 
—

 
—

 
 
 
 
 
 
3

 
 
 
 
 
 
 
 
 
21,785

 
—

 
—

Total Held-for-Investment
 
59

 
 
 
 
 
 
 
 
 
$
307,047

 
$
—

 
$
—

Held-for-Investment, at Fair Value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed-rate loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
—

to
$
5,000

 
 
3

 
10.00
%
to
10.00
%
 
2023-12
-
2024-04
 
$
4,505

 
$
—

 
$
—

 
$
10,001

to
$
15,000

 
 
1

 
 
 
4.95
%
 
 
 
2014-01
 
11,169

 
—

 
—

 
$
20,001

to
$
25,000

 
 
1

 
 
 
4.83
%
 
 
 
2023-12
 
21,788

 
—

 
—

 
$
25,001

to
$
30,000

 
 
1

 
 
 
4.79
%
 
 
 
2024-04
 
29,500

 
—

 
—

Total Held-for-Investment, at Fair Value
 
6

 
 
 
 
 
 
 
 
 
$
66,962

 
$
—

 
$
—

Held-for-Sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed-rate loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
—

to
$
5,000

 
 
1

 
4.81
%
to
4.81
%
 
2025-10
-
2025-10
 
$
4,150

 
$
—

 
$
—

 
$
5,001

to
$
10,000

 
 
2

 
5.05
%
 
5.05
%
 
2026-01
-
2026-01
 
16,900

 
—

 
—

 
$
15,001

to
$
20,000

 
 
1

 
4.90
%
 
4.90
%
 
2025-12
-
2025-12
 
17,700

 
—

 
—

Total Held-for-Sale
 
4

 
 
 
 
 
 
 
 
 
$
38,750

 
$
—

 
$
—

December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In Thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan Balance
 
 
Number of
Loans
 
Interest
 Rate
 
Maturity
Date
 
Total
Principal
 
30-89
Days
DQ
 
90+
Days
DQ
Held-for-Investment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed-rate loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
—

to
$5,000
 
 
37

 
9.50
%
to
12.50
%
 
2016-08
-
2024-12
 
$
102,994

 
$
—

 
$
—

 
$
5,001

to
$10,000
 
 
14

 
4.43
%
to
11.00
%
 
2015-04
-
2025-01
 
109,551

 
—

 
—

 
$
10,001

to
$15,000
 
 
2

 
9.50
%
to
9.50
%
 
2018-01
-
2021-06
 
24,874

 
—

 
—

 
$
15,001

to
$20,000
 
 
2

 
10.50
%
to
11.00
%
 
2016-06
-
2022-06
 
37,700

 
—

 
—

 
$
25,001

to
$30,000
 
 
1

 
 
 
10.00
%
 
 
 
2016-10
 
25,629

 
—

 
—

 
 
 
 
 
 
56

 
 
 
 
 
 
 
 
 
300,748

 
—

 
—

ARM loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
5,001

to
$10,000
 
 
2

 
10.80
%
to
12.00
%
 
2015-02
-
2016-10
 
15,478

 
—

 
—

 
$
10,001

to
$15,000
 
 
2

 
9.16
%
to
11.20
%
 
2014-11
-
2016-08
 
25,524

 
—

 
—

 
 
 
 
 
 
4

 
 
 
 
 
 
 
 
 
41,002

 
—

 
—

Total Held-for-Investment
 
60

 
 
 
 
 
 
 
 
 
$
341,750

 
$
—

 
$
—

Held-for-Investment, at Fair Value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed-rate loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
—

to
$5,000
 
 
3

 
10.00
%
to
10.00
%
 
2023-12
-
2024-04
 
$
4,555

 
$
—

 
$
—

 
$
10,001

to
$15,000
 
 
1

 
 
 
4.95
%
 
 
 
2024-01
 
11,399

 
—

 
—

 
$
20,001

to
$25,000
 
 
1

 
 
 
4.83
%
 
 
 
2023-12
 
22,102

 
—

 
—

 
$
25,001

to
$30,000
 
 
1

 
 
 
4.79
%
 
 
 
2024-04
 
29,500

 
—

 
—

Total Held-for-Investment, at Fair Value
 
6

 
 
 
 
 
 
 
 
 
$
67,556

 
$
—

 
$
—

Held-for-Sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed-rate loans:
 
13

 
4.19
%
to
4.79
%
 
2024-12
-
2045-01
 
$
162,790

 
$
—

 
$
—