CURRENT EXPECTED CREDIT LOSSES (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Financing Receivable, Allowance for Credit Loss

Activity related to the CECL Reserve for outstanding balances on the Company’s loans held for investment as of and for the three and six months ended June 30, 2026 was as follows ($ in thousands):











Balance at March 31, 2026 (1)	$	136,830
Provision for (reversal of) current expected credit losses, net	980
Balance at June 30, 2026 (1)	$	137,810

Balance at December 31, 2025 (1)	$	125,756
Provision for (reversal of) current expected credit losses, net	12,054
Balance at June 30, 2026 (1)	$	137,810

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(1)The CECL Reserve related to outstanding balances on loans held for investment is recorded within current expected credit loss reserve in the Company’s consolidated balance sheets.

Current Expected Credit Loss Reserve for Unfunded Loan Commitments

Activity related to the CECL Reserve for unfunded commitments on the Company’s loans held for investment as of and for the three and six months ended June 30, 2026 was as follows ($ in thousands):











Balance at March 31, 2026 (1)	$	1,444
Provision for (reversal of) current expected credit losses, net	(115)
Balance at June 30, 2026 (1)	$	1,329

Balance at December 31, 2025 (1)	$	1,380
Provision for (reversal of) current expected credit losses, net	(51)
Balance at June 30, 2026 (1)	$	1,329

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(1)The CECL Reserve related to unfunded commitments on loans held for investment is recorded within other liabilities in the Company’s consolidated balance sheets.

Schedule of Company Loan Risk Definitions

Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from less risk to greater risk, which ratings are defined as follows:


Ratings						Definition
1						Very Low Risk
2						Low Risk
3						Medium Risk
4						High Risk/Potential for Loss: Asset performance is trailing underwritten expectations. Loan at risk of impairment without material improvement to performance
5						Impaired/Loss Likely: A loan that has a significantly increased probability of default and principal loss

Schedule of Financing Receivable Credit Quality Indicators

As of June 30, 2026, the Carrying Value of the Company’s loans held for investment within each risk rating by year of origination is as follows ($ in thousands):


	2026		2025		2024		2023		2022		Prior		Total
Risk rating:
1	$	—	$	—	$	—	$	—	$	—	$	7,920	$	7,920
2	29,449		—		—		102,739		139,500		92,805		364,493
3	271,062		458,671		—		11,437		109,231		230,140		1,080,541
4	—		—		—		—		140,195		8,538		148,733
5	—		—		—		—		—		147,148		147,148
Total	$	300,511	$	458,671	$	—	$	114,176	$	388,926	$	486,551	$	1,748,835