Annual report pursuant to Section 13 and 15(d)

LOANS

v3.8.0.1
LOANS
12 Months Ended
Dec. 31, 2017
Receivables [Abstract]  
REAL ESTATE RELATED AND OTHER LOANS, RESIDENTIAL MORTGAGE LOANS
LOANS
The following is a summary of corporate and residential mortgage loans. The loans contain various terms, including fixed and floating rates, self-amortizing and interest only. They are generally subject to prepayment.
 
 
December 31, 2017
 
December 31, 2016
Loan Type
 
Outstanding
Face Amount
 
Carrying
Value (A)
 
Loan
Count
 
Wtd.
Avg
Yield
 
Wtd
Avg
Coupon
 
Wtd
Avg
Life
(Years) (B)
 
Floating Rate
Loans as a %
of Face
Amount
 
Delinquent
Face Amount
(C)
 
Carrying
Value
 
Loan Count
 
Wtd. Avg.
Yield
Corporate Loans (D)
 
$
13,697

 
$
147

 
1

 
20.00
%
 
10.00
%
 
1.5
 
0.0
%
 
$
13,697

 
$
55,612

 
4
 
22.49
%
Total Loans Held-for-Sale, Net (E)
 
$
13,697

 
$
147

 
1

 
20.00
%
 
10.00
%
 
1.5
 
0.0
%
 
$
13,697

 
$
55,612

 
4
 
22.49
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential Mortgage Loans Held-for-Sale, Net (F)
 
$

 
$

 

 
%
 
%
 
0.0
 
%
 
$

 
$
231

 
3
 
3.40
%

(A)
The aggregate United States federal income tax basis for such assets at December 31, 2017 was approximately $12.9 million (unaudited).
(B)
The weighted average maturity is based on the timing of expected cash flows on the assets.
(C)
Includes loans that are 60 days or more past due (including loans that are in foreclosure and borrowers in bankruptcy) or considered real estate owned (“REO”). As of December 31, 2017 and 2016, $13.7 million and $77.2 million face amount of corporate loans, respectively, was on non-accrual status.
(D)
Corporate loans are not directly secured by real estate assets.
(E)
Loans held-for-sale, net is recorded in other current assets on the Consolidated Balance Sheets.
(F)
Residential mortgage loans held-for-sale, net is recorded in other current assets on the Consolidated Balance Sheets.
The Company's investments in loans were classified as held-for-sale as of December 31, 2017 and December 31, 2016. Loans held-for-sale are carried on the Consolidated Balance Sheets at the lower of cost or fair value.
 
In April 2016, the Company sold a mezzanine loan with a face amount of $19.4 million at par. The Company subsequently repaid $11.7 million of notes payable that were collateralized by the loan.

In September 2016, the Company received a pay down on the resorts-related loan in the amount of $109.9 million. In August 2017, the Company received the final pay down on the resorts-related loan in the amount of $69.5 million including accrued interest. The Company recognized discount accretion of $5.5 million as part of the payoff, recorded in interest and investment income on the Consolidated Statements of Operations.


Activities relating to the carrying value of loans, held-for-sale and residential mortgage loans, held-for-sale are as follows:
 
Loans, Held-for-Sale (A)
 
Residential
Mortgage Loans, Held- for-Sale (A)
Balance at December 31, 2014
$
230,200

 
$
3,854

Purchases / additional fundings

 

Interest accrued to principal balance
27,717

 

Principal pay downs
(46,696
)
 
(134
)
Sales
(55,574
)
 
(2,925
)
Valuation allowance on loans
(9,284
)
 
(257
)
Accretion of loan discount and other amortization
3,203

 

Other
(368
)
 
(6
)
Balance at December 31, 2015
$
149,198

 
$
532

Purchases / additional fundings

 

Interest accrued to principal balance
29,025

 

Principal pay downs
(109,892
)
 
(40
)
Sales
(19,433
)
 

Valuation allowance on loans
(3,826
)
 
(213
)
Accretion of loan discount and other amortization
10,540

 

Loss on settlement of loans

 
(48
)
Balance at December 31, 2016
$
55,612

 
$
231

Purchases / additional fundings

 

Interest accrued to principal balance
8,458

 

Settlements
(69,455
)
 
(183
)
Valuation allowance on loans

 
(60
)
Accretion of loan discount and other amortization
5,532

 

Other income

 
12

Balance at December 31, 2017
$
147

 
$


(A)
Recorded in other current assets on the Consolidated Balance Sheets.
The following is a rollforward of the related loss allowance:
 
 
Loans, Held-for-Sale
 
Residential Mortgage Loans, Held-for-Sale
Balance at December 31, 2014
 
$
(75,926
)
 
$
(154
)
Charge-offs (A)
 
14,345

 
160

Valuation allowance on loans
 
(9,284
)
 
(257
)
Balance at December 31, 2015
 
$
(70,865
)
 
$
(251
)
Charge-offs (A)
 

 

Valuation allowance on loans
 
(3,826
)
 
(213
)
Balance at December 31, 2016
 
$
(74,691
)
 
$
(464
)
Charge-offs (A)
 
63,453

 
524

Valuation allowance on loans
 

 
(60
)
Balance at December 31, 2017
 
$
(11,238
)
 
$


(A)
The charge-offs for loans, held-for-sale represent five, zero and four loans which were written off, sold, restructured, or paid off at a discounted price during 2017, 2016 and 2015, respectively.