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Broadmark Realty Capital (BRMK)

Document and Entity Information

Document and Entity Information - shares3 Months Ended
Mar. 31, 2021May 05, 2021
Document Information [Line Items]
Entity Registrant NameBROADMARK REALTY CAPITAL INC.
Entity Central Index Key0001784797
Document Type10-Q
Document Quarterly Reporttrue
Document Transition Reportfalse
Document Period End DateMar. 31,
2021
Entity File Number001-39134
Entity Incorporation, State or Country CodeMD
Entity Tax Identification Number84-2620891
Entity Address, Address Line One1420 Fifth Avenue, Suite 2000
Entity Address, City or TownSeattle
Entity Address, State or ProvinceWA
Entity Address, Postal Zip Code98101
City Area Code206
Local Phone Number971-0800
Current Fiscal Year End Date--12-31
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Filer CategoryLarge Accelerated Filer
Entity Small Businessfalse
Entity Emerging Growth Companyfalse
Entity Shell Companyfalse
Entity Common Stock, Shares Outstanding132,573,178
Document Fiscal Year Focus2021
Document Fiscal Period FocusQ1
Amendment Flagfalse
Common Stock [Member]
Document Information [Line Items]
Title of 12(b) SecurityCommon Stock
Trading SymbolBRMK
Security Exchange NameNYSE
Warrant
Document Information [Line Items]
Title of 12(b) SecurityWarrants
Trading SymbolBRMK WS
Security Exchange NameNYSEAMER

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Assets
Cash and cash equivalents $ 204,277 $ 223,375
Mortgage notes receivable, net804,471 798,486
Interest and fees receivable, net16,503 14,357
Investment in real property, net13,113 8,473
Right-of-use assets6,304
Goodwill136,965 136,965
Other assets10,263 5,663
Total assets1,191,896 1,187,319
Liabilities and Equity
Accounts payable and accrued liabilities6,568 4,946
Lease Liabilities8,347
Dividends payable9,280 7,952
Total liabilities24,195 12,898
Commitments and Contingencies (Note 10)
Preferred stock, $0.001 par value, 100,000,000 shares authorized, no shares issued and outstanding at March 31, 2021 and December 31, 2020
Common stock, $0.001 par value, 500,000,000 shares authorized, 132,566,410 and 132,532,383 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively132 132
Additional Paid in Capital1,214,724 1,213,987
Accumulated deficit(47,155)(39,698)
Total equity1,167,701 1,174,421
Total liabilities and equity $ 1,191,896 $ 1,187,319

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / sharesMar. 31, 2021Dec. 31, 2020
Condensed Consolidated Balance Sheets
Preferred stock par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock shares authorized (in shares)100,000,000 100,000,000
Preferred stock shares issued (in shares)0 0
Preferred stock shares outstanding (in shares)0 0
Common stock par value (in dollars per share) $ 0.001 $ 0.001
Common stock shares authorized (in shares)500,000,000 500,000,000
Common stock shares issued (in shares)132,566,410 132,532,383
Common stock shares outstanding (in shares)132,566,410 132,532,383

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Revenues
Revenues $ 29,468 $ 31,768
Other Income:
Change in fair value of optional subscription liabilities4,604
Impairment:
Provision for credit losses, net2,708 4,432
Operating expenses:
Compensation and employee benefits3,560 3,193
General and administrative2,819 2,278
Total Expenses9,087 9,903
Income before income taxes20,381 26,469
Income tax provision0 0
Net income $ 20,381 $ 26,469
Earnings per common share:
Basic $ 0.15 $ 0.20
Diluted $ 0.15 $ 0.20
Weighted-average shares of common stock outstanding, basic and diluted
Basic132,550,227 132,111,329
Diluted132,678,812 132,336,315
Interest Income
Revenues
Revenues $ 22,017 $ 24,553
Fee Income
Revenues
Revenues $ 7,451 $ 7,215

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in ThousandsCommon Stock [Member]Additional Paid-in Capital [Member]Retained Earnings (Accumulated Deficit) [Member]Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings (Accumulated Deficit) [Member]Cumulative Effect, Period of Adoption, Adjustment [Member]Total
Balance at Dec. 31, 2019 $ 132 $ 1,209,120 $ (1,975) $ (24,780) $ (1,975) $ 1,184,472
Balance, Shares at Dec. 31, 2019132,015,635
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income26,469 (800)26,469
Dividends(31,700)(31,700)
Issuance of shares for vested restricted stock units (in shares)95,694
Stock-based compensation expense for restricted stock units914 914
Balance at Mar. 31, 2020 $ 132 1,210,034 (31,986)1,178,180
Balance, Shares at Mar. 31, 2020132,111,329
Increase (Decrease) In Members Equity [RollForward]
Net Income26,469 $ (800)26,469
Balance at Dec. 31, 2020 $ 132 1,213,987 (39,698)1,174,421
Balance, Shares at Dec. 31, 2020132,532,383
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income20,381 20,381
Dividends(27,838)(27,838)
Issuance of shares for vested restricted stock units (in shares)34,027
Stock-based compensation expense for restricted stock units737 737
Balance at Mar. 31, 2021 $ 132 $ 1,214,724 (47,155)1,167,701
Balance, Shares at Mar. 31, 2021132,566,410
Increase (Decrease) In Members Equity [RollForward]
Net Income $ 20,381 $ 20,381

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Cash flows from operating activities
Net income $ 20,381 $ 26,469
Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of deferred origination and amendment fees(6,612)(5,422)
Depreciation and amortization163 (904)
Amortization of right of use assets94 110
Amortization of financing costs142
Stock-based compensation expense for restricted stock units737 914
Provision for credit losses, net2,708 4,432
Change in fair value of optional subscription liabilities(4,604)
Changes in operating assets and liabilities:
Interest and fees receivable, net(2,146)(2,351)
Other assets171 (163)
Accounts payable and accrued liabilities713 (167)
Lease liabilities(10)(110)
Net cash provided by operating activities16,341 18,204
Cash flows from investing activities:
Purchases of property and equipment(135)
Proceeds from sale of real property815 2,213
Improvements to investments in real property(250)(79)
Change in mortgage notes receivable, net(4,255)36,856
Net cash provided by (used in) investing activities(3,825)38,990
Cash flows from financing activities:
Dividends paid(26,510)(36,973)
Payment of costs to obtain credit facility(5,104)
Net cash provided by (used in) financing activities(31,614)(36,973)
Net increase (decrease) in cash and cash equivalents(19,098)20,221
Cash and cash equivalents, beginning of period223,375 238,214
Cash and cash equivalents, end of period204,277 258,435
Supplemental disclosure of non-cash investing and financing activities
Dividends payable9,280 10,569
Measurement period adjustment to goodwill and intangible assets $ 5,000
Mortgage notes receivable converted to real property owned5,205
Operating lease right-of-use assets6,360
Lease liabilities arising from obtaining right-of-use assets8,319
Property and equipment purchased through tenant improvement allowance $ 1,959

Organization and business

Organization and business3 Months Ended
Mar. 31, 2021
Organization and business
Organization and businessNote 1 - Organization and business Broadmark Realty Capital Inc. (“Broadmark Realty,” “the Company,” “we,” “us” and “our”) is an internally managed commercial real estate finance company that provides secured financing to real estate investors and developers. Broadmark Realty’s objective is to preserve and protect shareholder capital while producing attractive risk-adjusted returns primarily through dividends generated from current income from its loan portfolio. Broadmark Realty operates in select states that it believes to have favorable demographic trends and provide Broadmark Realty the ability to efficiently access the underlying collateral in the event of borrower default. The consolidated subsidiaries of Broadmark Realty include BRMK Lending, LLC, BRMK Management, Corp., and Broadmark Private REIT Management, LLC. BRMK Lending, LLC originates short-term loans secured by first deed of trust liens on residential and commercial real estate. BRMK Management, Corp. (the “Manager”) manages the underwriting, closing, servicing and disposition of mortgage notes, and performs all general and administrative duties for Broadmark Realty. Broadmark Private REIT Management, LLC (the “Private REIT Manager”) manages Broadmark Private REIT, LLC (the “Private REIT”), an unconsolidated affiliate of the Company that primarily participates in loans originated, underwritten and serviced by a subsidiary of Broadmark Realty. Broadmark Realty has elected to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes. Broadmark Realty generally will not be subject to U.S. federal corporate income tax on that portion of its net income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by prescribed dates and complies with various other requirements. The Company also operates its business in a manner that permits it to maintain an exclusion from registration under the Investment Company Act of 1940. As a REIT, Broadmark Realty may own up to 100% of the stock of one or more taxable REIT subsidiaries (“TRSs”), which may earn income that would not be qualifying income if earned directly by a REIT. The Manager is a TRS and this election applies to the wholly-owned subsidiaries of the Manager, including the Private REIT Manager.

Summary of significant accounti

Summary of significant accounting policies3 Months Ended
Mar. 31, 2021
Summary of significant accounting policies
Summary of significant accounting policiesNote 2 - Summary of significant accounting policies Basis of Presentation The accompanying condensed consolidated financial statements include Broadmark Realty Capital Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. These condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and accompanying notes included in Broadmark Realty Capital Inc.’s Annual Report on Form 10-K/A for the year ended December 31, 2020, which was filed with the SEC on March 2, 2021. The condensed consolidated balance sheet as of December 31, 2020, included herein, was derived from the audited financial statements of Broadmark Realty Capital Inc. as of that date. The unaudited condensed consolidated interim financial statements, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our financial position as of March 31, 2021, our results of operations and stockholders’ equity for the three month periods ended March 31, 2021 and 2020, and our cash flows for the three month periods ended March 31, 2021 and 2020. The results of the three month period ended March 31, 2021 is not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any interim period or for any other future year. Principles of Consolidation Broadmark Realty consolidates those entities in which it has control over significant operating, financial and investing decisions of the entity, as well as those entities deemed to be variable interest entities (“VIEs”), if any, in which Broadmark Realty is determined to be the primary beneficiary. Broadmark Realty is not the primary beneficiary of, and therefore does not consolidate, any VIEs. The Private REIT was determined to be a voting interest entity for which we, through our wholly-owned subsidiary acting as manager with no significant equity investment, do not hold a controlling interest in and do not consolidate. Furthermore, the Private REIT participation in loans originated by us meets the characteristics of a participating interest in accordance with GAAP and therefore, is treated as a sale of mortgage notes receivable and is derecognized from our consolidated financial statements. Reclassifications Certain amounts in our prior period condensed consolidated financial statements have been reclassified to conform to the presentation of our current period condensed consolidated financial statements. These reclassifications had no effect on our previously reported net income or stockholders’ equity. The reclassification for the separate presentation of accretion of deferred origination and amendment fees resulted in a reclassification of net cash provided by operating activities to net cash provided by investing activities, both as previously reported. The reclassifications also included the separate presentation of amortization of right of use assets and change in lease liabilities and the combined presentation of depreciation and amortization on the condensed consolidated statements of cash flows. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The most significant estimates relate to the expected credit losses on our loans and the fair value of financial instruments and investments in real property. Accordingly, actual results could differ from those estimates. The COVID-19 pandemic has introduced significant additional uncertainty with respect to estimates, judgments and assumptions, which may materially impact the estimates previously listed, among others. Certain Significant Risks and Uncertainties In the normal course of business, we encounter one primary type of economic risk in the form of credit risk. Credit risk is the risk of default on our investment in mortgage notes receivable resulting from a borrower’s inability or unwillingness to make contractually required payments. We believe that the carrying values of our loans reasonably consider this credit risk. In addition, we are subject to significant tax risks. If we were to fail to qualify as a REIT in any taxable year, we would be subject to U.S. federal corporate income tax, which could be material. We operate in a dynamic industry and, accordingly, can be affected by a variety of factors. For example, we believe that changes in any of the following areas could have a significant negative effect on us in terms of our future financial position, results of operations or cash flows: public health crises, like the COVID-19 pandemic; the economy in the areas we operate; competition in our market; the stability of the real estate market and the impact of interest rate changes; changes in government regulation affecting our business; natural disasters and catastrophic events; our ability to attract and retain qualified employees and key personnel; and protection of customers’ information and other privacy concerns, among other things. Reportable Segments We operate the business as one reportable segment, which originates, underwrites and services construction loans. BALANCE SHEET MEASUREMENT Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of 90 days or less at the date of purchase to be cash equivalents. We have a cash management sweep account repurchase agreement whereby our bank nightly sweeps cash in excess of $750,000, sells us specific U.S. Government Agency securities and then repurchases these securities the next day. We maintain our cash and cash equivalents with financial institutions, which are insured up to a maximum of $250,000 per account as of March 31, 2021 and December 31, 2020. The balances in these accounts may exceed the insured limits. There were no restrictions on cash as of March 31, 2021 or December 31, 2020. Mortgage Notes Receivable Mortgage notes receivable (referred to herein as “mortgage notes receivable”, “construction loans”, “loans”, or “notes”) are classified as held for investment as we have the intent and ability to hold until maturity or payoff and are carried in the condensed consolidated balance sheets at amortized cost, net of construction holdbacks, interest reserves, allowance for credit losses and deferred origination and amendment fees. Participations in mortgage notes receivables are accounted for as sales and derecognized from the balance sheet when control over the transferred assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) a group of financial assets or a participating interest in an entire financial asset has been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right, beyond a more than trivial benefit) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. If the sales do not meet these criteria, the sale of the participation is treated as a secured borrowing. As of March 31, 2021, all participations in mortgage notes receivable sold to the Private REIT have achieved sale accounting. Current Expected Credit Losses Allowance In the fourth quarter of 2020, we adopted the current expected credit loss (“CECL Standard”) for the full year ended December 31, 2020 as we ceased to qualify as an emerging growth company effective December 31, 2020. As a result, we were no longer permitted an extended transition period for complying with new or revised accounting standards affecting public companies. The initial CECL allowance adjustment of $2.0 million was recorded on January 1, 2020 as a cumulative-effect of change in accounting principle through a direct charge to accumulated deficit on our condensed consolidated statements of stockholders’ equity; however subsequent changes to the CECL allowance are recognized through net income on our condensed consolidated statements of income. Our condensed consolidated statement of income for the three months ended March 31, 2020 includes an additional provision for credit losses of $0.8 million associated with the adoption of the CECL Standard, as a result, our previously reported net income of $27.3 million for this period is lower by $0.8 million. The CECL Standard replaced the incurred loss model under existing guidance with an expected loss model for instruments measured at amortized cost. We now record an allowance for credit losses in accordance with the CECL Standard on our loan portfolio, including unfunded construction holdbacks, on a collective basis by assets with similar risk characteristics. In addition, for assets that are classified as collateral dependent based on foreclosure being probable, we continue to record loan specific allowances based on the fair value of the collateral for expected credit losses under the CECL Standard. Given the short-term nature of our loans, we evaluate the most recent external appraisal and depending on the age of the appraisal, may order a new appraisal or, where available, will evaluate against existing comparable sales or other pertinent information to estimate the fair value of the collateral for such loans. The CECL Standard requires an entity to consider historical loss experience, current conditions, and a reasonable and supportable forecast of the economic environment. The Company utilizes a probability of default/loss given default (“PD/LGD”) method approach for estimating current expected credit losses. In accordance with the PD/LGD method, an annual historical loss rate is applied to the amortized cost of an asset or pool of assets over the remaining expected life. The PD/LGD method requires consideration of the timing of expected future funding of existing commitments and repayments over each asset’s remaining life. An annual loss factor, adjusted for macroeconomic estimates, is applied over each subsequent period and aggregated to arrive at the CECL allowance. In determining the CECL allowance, we considered various factors including (i) historical loss experience in our portfolio, (ii) historical loss experience in the commercial real estate lending market, (iii) timing of expected pay offs including prepayments and extensions where reasonably expected, and (iv) our current and future view of the macroeconomic environment. We utilize a reasonable and supportable forecast period equal to the contractual term of the loan plus short-term extensions of one to three months that are reasonably expected for construction loans. Management estimates the allowance for credit losses using relevant information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The allowance for credit losses is maintained at a level sufficient to provide for expected credit losses over the life of the loan based on evaluating historical credit loss experience and making adjustments to historical loss information for differences in the specific risk characteristics in the current loan portfolio. Refer to “Note 3 – Mortgage Notes Receivable” for further information regarding the CECL allowance. We have made an accounting policy election to exclude accrued interest receivable, included in interest and fees receivable, net on our consolidated balance sheets, from the amortized cost basis of the related mortgage notes receivable in determining the CECL allowance as any uncollected accrued interest receivable is written off in a timely manner. No interest income is recognized on mortgage notes receivable that are in contractual default unless the interest is paid in cash or collectability of all amounts due is reasonably assured. In addition, in certain instances, where the interest reserve on a current loan has been fully depleted and the interest payment is not expected to be collected from the borrower, we may place a current loan on non-accrual status and recognize interest income on a cash-basis. Deferred Income Deferred income represents the amount of our origination and amendment fees that have been deferred and will be recognized in income over the contractual maturity of the underlying loan. Origination fees are included in the total commitment to the borrower and financed at the time of loan origination. Amendment fees are either included in the total commitment to the borrower and financed at the time of the loan amendment or are billed to the borrower when the loan is amended and not capitalized into the principal outstanding. Deferred origination and amendment fees capitalized into the principal outstanding are included within mortgage notes receivable, net on the consolidated balance sheets. Deferred amendment fees that are not included in the principal outstanding are presented within interest and fees receivable, net on the condensed consolidated balance sheets. Interest and Fees Receivable Interest on performing loans is accrued and recognized as interest income at the contractual rate of interest, or at the contractual rate of monthly minimum interest. Extension fees are charged when we agree to extend the maturity dates of loans. In addition, late fees are changed when borrower payments are contractually past due. We monitor each note’s outstanding interest and fee receivables and, based on historical performance, generally reserve against the balance after a receivable is greater than 60 days past due unless collectability of all amounts due is reasonably assured. We have made an accounting policy election to exclude accrued interest and fee receivables from the amortized cost basis of the related mortgage notes receivable in determining the CECL allowance as any uncollected accrued interest receivable is written off in a timely manner. Real property Real property owned by us consists of real estate acquired in settlement of loans. Real estate acquired through foreclosure or deed in lieu of foreclosure is recorded at fair market value at the time of acquisition, which generally approximates the carrying value of the loan secured by such property. Costs related to acquisition, development, construction and improvements are capitalized to the extent the investment in the real property does not exceed the fair value less estimated costs to sell. Expenditures for repairs and maintenance are charged to expense when incurred. As of March 31, 2021 and December 31, 2020, we owned four and three properties or projects, respectively. Leases Our office space in Seattle, Washington is subject to an operating lease. Our operating lease is included in right of use assets and lease liabilities on our consolidated balance sheets. The lease agreement includes both lease components (e.g., fixed rent) and non-lease components (e.g., common area maintenance). We account for the lease and non-lease components as a single component. Right of use assets represent our right to use an underlying asset during the lease term and lease liabilities represent our obligation to make lease payments. Right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of the total lease payments not yet paid, including lease incentives not yet received, with the right of use assets further adjusted for any prepaid or accrued lease payments, lease incentives received and/or initial direct costs incurred. Our lease arrangement also includes variable payments for costs such as common-area maintenance, utilities, taxes or other operating costs, which are based on a percentage of actual expenses incurred. These variable lease payments are excluded from the measurement of the right of use assets and lease liabilities. Our lease term is through January 2032, which includes an option to extend the lease term for an additional five years. When determining if a renewal option is reasonably certain of being exercised at lease commencement, we consider several factors, including but not limited to, contract-based, asset-based and entity-based factors. We reassess the term of the existing lease if there is a significant event or change in circumstances within our control that affects whether we are reasonably certain to exercise the option to extend the lease. Examples of such events or changes include construction of significant leasehold improvements or other modifications or customizations to the underlying asset, relevant business decisions or subleases. We have concluded that the renewal option is not reasonably certain of being exercised, therefore, the renewal is not included in the right of use asset and lease liability. As our lease did not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. We recognize lease expense for our operating lease on a straight-line basis over the lease term. Variable lease payments are generally recognized when incurred. These expenses are included in general and administrative expenses in the consolidated statements of income. Goodwill Goodwill represents the excess of the cost of an acquired business over the fair value of the assets acquired at the date of acquisition and is not amortized. We assess the impairment of goodwill on an annual basis, in our fourth quarter, or whenever events or changes in circumstances indicate that goodwill may be impaired. In our evaluation of goodwill, we typically first perform a qualitative assessment to determine whether the carrying value of each reporting unit is greater than its fair value. If it is more likely than not that the carrying value of a reporting unit is greater than its fair value, we perform a quantitative assessment and an impairment charge is recorded in our statements of operations for the excess of carrying value of the reporting unit over its fair value. We reevaluated the fair value of the reporting unit during our annual assessment in the fourth quarter of 2020 and the fair value of the reporting unit exceeded the carrying value and there was no goodwill impairment. During the first quarter of 2021, we continued to monitor the impact of COVID-19 and determined there were no new triggering events to warrant a quantitative assessment of our goodwill. In the first quarter of 2020, we recorded a measurement period adjustment to reduce the preliminary fair value of intangible assets in the form of customer relationships by $5.0 million and increased our preliminary value of goodwill by $5.0 million. As a result of this adjustment to preliminary values, $0.9 million of amortization of intangible assets recorded in 2019 was reversed in the first quarter of 2020. ​ Other Assets Other assets primarily consist of fixed assets, deferred financing costs, intangible assets, prepaid insurance and other operating receivables. Fixed Assets Fixed assets, which are included in other assets in the accompanying condensed consolidated balance sheets are stated at cost, less accumulated depreciation. Repairs and maintenance to these assets are charged to expense as incurred; major improvements enhancing the function and/or useful life are capitalized. When items are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gains or losses arising from such transactions are recognized. Depreciation is recorded on the straight-line basis over the estimated useful life of the assets. For computer equipment, office equipment, furniture and fixtures the useful lives range from three Deferred Financing Costs Deferred financing costs represent direct costs associated with the execution of the revolving credit facility. As the revolving credit facility has no principal outstanding and there is no recognized debt liability, the deferred financing costs are included in other assets on the condensed consolidated balance sheet. These costs are amortized on the straight-line basis over the initial term of our credit facility. Intangible Assets We record the intangible assets at fair value at the acquisition date and are amortizing the value of these finite-lived intangibles into expense over the expected useful life. All of our intangible assets relate to the value of customer relationships. As of March 31, 2021 and December 31, 2020, intangible assets net of accumulated amortization was $0.5 and $0.6 million, respectively. INCOME RECOGNITION Interest Income Interest income on mortgage notes receivable is accrued based on contractual rates applied to the principal balance outstanding, unless there is a minimum interest provision in the mortgage note. Many construction loans provide for minimum interest provisions, under which the contractual rate applies to, which are typically between 50% and 70% of the face amount of the note until the actual outstanding principal exceeds the minimum threshold. Mortgage notes receivable can be placed in contractual default status for any of the following reasons: (1) an interest payment is more than 30 days past due; (2) a note matures and the borrower fails to make payment of all amounts owed or extend the loan; or (3) the collateral becomes impaired in such a way that the ultimate collection of the note is doubtful. The accrual of interest income is suspended when a loan is in contractual default unless the interest is paid in cash or collectability of all amounts due is reasonably assured. In addition, in certain instances, where the interest reserve on a current loan has been fully depleted and the interest payment is not expected to be collected from the borrower, we may place a current loan on non-accrual status and recognize interest income on a cash-basis. Interest previously accrued may be reversed at that time, and such reversal is offset against interest income. The accrual of interest income resumes only when the suspended loan becomes contractually current or a credit analysis supports the ability to collect in accordance with the terms of the loan. Fee Income We charge loan origination fees in conjunction with origination. Amendment fees are charged when loan terms are modified, such as increases in interest reserves and construction holdbacks in line with our underwriting criteria or upon modification of a loan for the transition from horizontal development to vertical construction. We defer and amortize loan origination and amendment fees over the contractual terms of the loans. We charge inspection fees, which we use to hire independent inspectors to report on the status of construction projects. These fees are earned and recognized upon each construction draw request. EXPENSE RECOGNITION Operating Expenses Share‑Based Payments We measure compensation expense for all share-based awards at fair value on the date of grant and recognize compensation expense over the service period on a straight-line basis for awards expected to vest, which is generally three years for employees and one year for directors. Share-based awards are issued under the Broadmark Realty Capital Inc. 2019 Stock Incentive Plan. Awards made to our employees and directors, typically consist of restricted stock units (“RSUs”). For awards with only a service vesting condition, the fair value of the award is based on the grant date closing price of our common stock less the present value of expected dividends over the requisite service period as the awards are not entitled to dividends. For these awards, we recognize stock-based compensation expense on a straight-line basis over the requisite service period for the entire award, subject to periodic adjustments to ensure that the cumulative amount of expense recognized through the end of any reporting period is at least equal to the portion of the grant date fair value of the award that has vested through that date, and we account for forfeitures prospectively as they occur. For awards that contain both service vesting and market conditions, referred to as performance restricted stock units (“pRSUs”), we use a Monte Carlo simulation model to calculate the grant date fair value. For these market-condition awards, regardless of the outcome of the market condition, we recognize stock-based compensation expense on a straight-line basis over the longest of explicit and derived service periods, and we account for forfeitures prospectively as they occur. If there are any modifications or cancellations of the underlying unvested share-based awards, we may be required to accelerate or increase any remaining unrecognized or previously recorded stock-based compensation expense. Income Taxes We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, for U.S. federal income tax purposes (the “Code”). As a REIT, we generally are not subject to U.S. federal income taxes on net income we distribute to our shareholders. We intend to make timely distributions sufficient to satisfy the annual distribution requirements. If we fail to qualify as a REIT in any taxable year, we will be subject to U.S. federal income tax on our taxable income at regular corporate tax rates. Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and property and U.S. federal income and excise taxes on our undistributed income. Our TRSs are subject to U.S. federal income taxes. Earnings per Share We present both basic and diluted earnings per common share (“EPS”) amounts in our condensed consolidated financial statements. Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS reflects the maximum potential dilution that could occur from our outstanding warrants and restricted stock units. We utilize the treasury stock method to measure dilution to earnings per share in calculating the net number of shares that would be issued assuming any related proceeds are used to buy back outstanding shares. Recent Accounting Pronouncements There are no recent accounting pronouncements that we have yet to adopt with an expected impact on our financial position, results of operations or cash flows.

Mortgage notes receivable

Mortgage notes receivable3 Months Ended
Mar. 31, 2021
Mortgage notes receivable
Mortgage notes receivableNote 3 - Mortgage notes receivable The stated principal amount of mortgage notes receivable in our portfolio represents our interest in loans secured by first deeds of trust, security agreements or legal title to real estate located in the United States. Our lending standards require that all mortgage notes receivable be secured by a first deed of trust lien on real estate and that the maximum loan to value ratio (“LTV”) be no greater than 65%. The LTV is calculated on an “as-complete” appraised value of the underlying collateral as determined by an independent appraiser at the time of the loan origination. The lending standards also limit the initial outstanding principal balance of the loan to a maximum LTV of up to 65% of the “as-is” appraised value of the underlying collateral as determined by an independent appraiser at the time of the loan origination. Unless otherwise indicated, LTV is measured by the total commitment amount of the loan divided by the “as-complete” appraisal. LTVs do not reflect interim loan activity such as construction draws or interest payments capitalized to loans, or partial repayments of the loan. The maximum amount of a single loan may not exceed 10% of our total assets and the maximum amount to a single borrower may not exceed 15% of our total assets. We consider the maximum LTV as an indicator for the credit quality of a mortgage note receivable. Mortgage notes receivable are considered to be short-term financings, with initial terms typically ranging from five Mortgage notes receivable are presented net of construction holdbacks, interest reserves, allowance for credit losses and deferred origination and amendment fee income in the condensed consolidated balance sheets. The construction holdback represents amounts withheld from the funding of construction loans until we deem construction to be sufficiently completed. The interest reserve represents amounts withheld from the funding of certain mortgage notes receivable for the purpose of satisfying monthly interest payments over all or part of the term of the related note. Accrued interest is paid out of the interest reserve and recognized as interest income at the end of each month. The deferred origination and amendment fee income represents amounts that will be recognized over the contractual life of the underlying mortgage notes receivable. ​ The following table reconciles outstanding mortgage loan commitments to outstanding balance of mortgage notes receivable as of March 31, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (dollars in thousands) March 31, 2021 December 31, 2020 Total loan commitments ​ $ 1,280,964 ​ $ 1,245,963 Less: ​ ​ ​ ​ ​ Construction holdbacks (1) ​ ​ 379,069 ​ ​ 356,026 Interest reserves (1) ​ ​ 30,369 ​ ​ 29,817 Private REIT participation (2) ​ ​ 42,740 ​ ​ 37,729 Total principal outstanding for our mortgage notes receivable ​ ​ 828,786 ​ ​ 822,391 Less: ​ ​ ​ ​ ​ ​ Allowance for credit losses (3) ​ ​ 10,663 ​ ​ 10,590 Deferred origination and amendment fees ​ ​ 13,652 ​ ​ 13,315 Mortgage notes receivable, net ​ $ 804,471 ​ $ 798,486 (1) Includes construction holdbacks of $42.1 and $40.4 million and interest reserves of $3.6 and $4.3 million on participating interests sold to the Private REIT as of March 31, 2021 and December 31, 2020, respectively. (2) The Private REIT’s participations in loans originated by us meet the characteristics of participating interests and, therefore, are treated as sales of mortgage notes receivable and are derecognized from our condensed consolidated financial statements. (3) $0.9 million of the CECL Allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our condensed consolidated balance sheet. ​ Non-accrual status As of March 31, 2021 and December 31, 2020, the principal outstanding on loans in contractual default status placed on non-accrual status was $177.7 and $126.8 million, respectively, and all non-accrual loans had an allowance for credit losses. Current Expected Credit Losses In assessing the CECL allowance, we consider historical loss experience, current conditions, and a reasonable and supportable forecast of the macroeconomic environment. We derived an annual historical loss rate based on the Company’s historical loss experience in our portfolio and historical loss experience in the commercial real estate industry provided by a third party adjusted to reflect our expectations of the macroeconomic environment based on forecast data per the Federal Reserve. ​ The following tables summarize the activity in the CECL Allowance during the three months ended March 31, 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CECL Allowance (dollars in thousands) ​ Funded ​ Unfunded (2) ​ Total CECL allowance as of December 31, 2020 ​ $ 10,590 ​ $ — ​ $ 10,590 Provision for credit losses, net ​ 1,761 ​ 947 ​ 2,708 Charge-offs (1) ​ (1,688) ​ — ​ (1,688) CECL allowance as of March 31, 2021 ​ $ 10,663 ​ $ 947 ​ $ 11,610 ​ ​ ​ ​ ​ ​ (dollars in thousands) ​ CECL Allowance Loan loss reserve as of December 31, 2019 ​ $ 4,096 ​ Adoption of ASU 2016-13 (3) ​ 1,975 ​ Provision for credit losses, net ​ ​ 4,432 ​ Charge-offs (1) ​ (537) ​ CECL allowance as of March 31, 2020 ​ $ 9,966 ​ (1) Represents either loan repayments where the proceeds are less than the principal outstanding or transfers to real property owned upon foreclosure where the fair values of the underlying collateral are less than the principal outstanding. (2) CECL Allowance relates to unfunded commitments is presented as a liability under accounts payable and accrued liabilities in our condensed consolidated balance sheet. (3) Recorded as a direct charge to stockholders’ equity as a cumulative-effect of change in accounting principle. In determining our CECL allowance, we segment loans with similar characteristics. All of our loans are construction loans secured by residential or commercial real estate and, in assessing estimated credit losses, we evaluate various metrics, including, but not limited to, construction type, collateral type, LTV, market conditions of property location and borrower experience and financial strength. The following tables allocate the carrying value of our loan portfolio based on our internal credit quality indicators in assessing estimated credit losses and vintage of origination at the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At March 31, 2021 ​ Year Originated (1) (dollars in thousands) Carrying Value % of Portfolio 2021 2020 ​ 2019 2018 2017 Prior Construction Type ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vertical Construction $ 505,347 ​ 62.0 % $ 118,678 ​ $ 252,275 ​ $ 37,051 ​ $ 3,080 ​ $ 88,973 ​ $ 5,290 Horizontal Development 143,405 ​ 17.6 ​ 60,361 ​ 63,180 ​ 15,453 ​ 283 ​ — ​ 4,128 Investment 166,382 ​ 20.4 ​ 46,769 ​ 72,987 ​ 18,917 ​ 3,809 ​ 17,953 ​ 5,947 Total $ 815,134 ​ 100.0 % $ 225,808 $ 388,442 $ 71,421 $ 7,172 $ 106,926 $ 15,365 CECL allowance (2) (10,663) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying value, net $ 804,471 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents the year of origination or amendment where the loan incurred a full re-underwriting. (2) $0.9 million of the CECL Allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our condensed consolidated balance sheet. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At March 31, 2021 ​ Year Originated (1) (dollars in thousands) Carrying Value % of Portfolio 2021 2020 ​ 2019 2018 2017 Prior Collateral Type ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Apartments $ 149,936 ​ 18.4 % $ 44,920 ​ $ 54,135 ​ $ 19,952 ​ $ — ​ $ 25,897 ​ $ 5,032 Residential Lots 125,808 ​ 15.4 ​ 57,579 ​ 49,003 ​ 9,874 ​ — ​ — ​ 9,352 Condos 85,240 ​ 10.5 ​ 9,269 ​ 39,408 ​ 200 ​ 1,326 ​ 35,037 ​ — Single family housing ​ ​ 73,990 ​ 9.1 ​ ​ ​ 16,047 ​ ​ 45,079 ​ ​ 5,579 ​ ​ 1,078 ​ ​ 5,484 ​ ​ 723 Land ​ ​ 73,237 ​ 9.0 ​ ​ ​ 40,678 ​ ​ 12,321 ​ ​ — ​ ​ 3,052 ​ ​ 17,186 ​ ​ — Townhomes ​ ​ 80,611 ​ 9.9 ​ ​ ​ 12,348 ​ ​ 43,735 ​ ​ — ​ ​ 1,716 ​ ​ 22,554 ​ ​ 258 Mixed Use ​ ​ 40,429 ​ 5.0 ​ ​ ​ 9,884 ​ ​ 28,622 ​ ​ 1,923 ​ ​ — ​ ​ — ​ ​ — Hotel ​ ​ 53,253 ​ 6.5 ​ ​ ​ 1,192 ​ ​ 42,990 ​ ​ 9,071 ​ ​ — ​ ​ — ​ ​ — Senior Housing ​ ​ 38,149 ​ 4.7 ​ ​ ​ — ​ ​ 38,149 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Offices ​ ​ 31,525 ​ 3.9 ​ ​ ​ — ​ ​ 9,480 ​ ​ 22,045 ​ ​ — ​ ​ — ​ ​ — Commercial Lots ​ ​ 15,259 ​ 1.9 ​ ​ ​ — ​ ​ 15,259 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Retail ​ ​ 11,838 ​ 1.5 ​ ​ ​ 5,594 ​ ​ 4,346 ​ ​ 1,898 ​ ​ — ​ ​ — ​ ​ — Industrial ​ ​ 15,403 ​ 1.9 ​ ​ ​ 15,403 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Quadplex ​ ​ 5,915 ​ 0.7 ​ ​ ​ — ​ ​ 5,915 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Commercial ​ ​ 6,524 ​ 0.8 ​ ​ ​ 5,645 ​ ​ — ​ ​ 879 ​ ​ — ​ ​ — ​ ​ — Duplex ​ ​ 3,821 ​ 0.5 ​ ​ ​ 3,053 ​ ​ — ​ ​ — ​ ​ — ​ ​ 768 ​ ​ — Commercial other ​ ​ 4,196 ​ 0.3 ​ ​ ​ 4,196 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Total $ 815,134 ​ 100.0 % $ 225,808 $ 388,442 $ 71,421 $ 7,172 $ 106,926 $ 15,365 CECL allowance (2) (10,663) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying value, net $ 804,471 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents the year of origination or amendment where the loan incurred a full re-underwriting. (2) $0.9 million of the CECL Allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our condensed consolidated balance sheet. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At March 31, 2021 ​ Year Originated (1) (dollars in thousands) Carrying Value % of Portfolio 2021 2020 ​ 2019 2018 2017 Prior LTV (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 0 - 40% $ 45,090 ​ 5.5 % $ 21,356 ​ $ 20,369 ​ $ — ​ $ 3,052 ​ $ 313 ​ $ — 41 - 45% ​ ​ 29,256 ​ 3.6 ​ ​ ​ 27,489 ​ ​ 1,767 ​ ​ — ​ ​ — ​ ​ — ​ ​ — 46 - 50% 46,420 ​ 5.7 ​ 15,507 ​ 15,460 ​ 15,453 ​ — ​ — ​ — 51 - 55% 77,277 ​ 9.5 ​ 27,310 ​ 29,594 ​ 2,777 ​ — ​ 16,873 ​ 723 56 - 60% ​ ​ 54,992 ​ 6.7 ​ ​ ​ 15,073 ​ ​ 25,769 ​ ​ 200 ​ ​ — ​ ​ 13,950 ​ ​ — 61 - 65% ​ ​ 532,281 ​ 65.3 ​ ​ ​ 118,559 ​ ​ 270,307 ​ ​ 52,991 ​ ​ 4,120 ​ ​ 75,790 ​ ​ 10,514 66 - 70% ​ ​ 17,582 ​ 2.2 ​ ​ ​ 514 ​ ​ 17,068 ​ ​ — ​ ​ — ​ ​ — ​ ​ — 71 - 75% ​ ​ — ​ 0.0 ​ ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — 76 - 80% ​ ​ — ​ 0.0 ​ ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Above 80% ​ ​ 12,236 ​ 1.5 ​ ​ ​ — ​ ​ 8,108 ​ ​ — ​ ​ — ​ ​ — ​ ​ 4,128 Total $ 815,134 ​ 100.0 % $ 225,808 $ 388,442 $ 71,421 $ 7,172 $ 106,926 $ 15,365 CECL allowance (3) (10,663) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying value, net $ 804,471 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents the year of origination or amendment where the loan incurred a full re-underwriting. (2) Represents LTV as of origination or latest amendment. LTVs above 65% generally represent loans in contractual default status where we have agreed to extend funds to the borrower above 65% in order to facilitate successful completion of the construction and return of capital. (3) $0.9 million of the CECL Allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our condensed consolidated balance sheet. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2020 ​ Year Originated (1) (dollars in thousands) Carrying Value % of Portfolio 2020 2019 ​ 2018 2017 2016 Prior Construction Type ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vertical Construction $ 514,136 ​ 63.5 % $ 354,012 ​ $ 57,090 ​ $ 6,853 ​ $ 88,655 ​ $ 7,526 ​ $ — Horizontal Development 153,345 ​ 19.0 ​ 129,607 ​ 15,028 ​ 283 ​ — ​ 8,427 ​ — Investment 141,595 ​ 17.5 ​ 98,146 ​ 18,657 ​ 7,259 ​ 16,444 ​ — ​ 1,089 Total $ 809,076 ​ 100.0 % $ 581,765 $ 90,775 $ 14,395 $ 105,099 $ 15,953 $ 1,089 CECL allowance (10,590) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying value, net $ 798,486 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents the year of origination or amendment where the loan incurred a full re-underwriting. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2020 ​ Year Originated (1) (dollars in thousands) Carrying Value % of Portfolio 2020 2019 ​ 2018 2017 2016 Prior Collateral Type ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Apartments $ 129,588 ​ 16.0 % $ 79,931 ​ $ 18,953 ​ $ — ​ $ 24,232 ​ $ 6,472 ​ $ — Residential Lots 124,548 ​ 15.4 ​ 105,830 ​ 10,291 ​ — ​ — ​ 8,427 ​ — Condos 92,245 ​ 11.4 ​ 52,714 ​ 3,106 ​ 4,405 ​ 32,020 ​ — ​ — Single family housing ​ ​ 90,131 ​ 11.1 ​ ​ ​ 69,438 ​ ​ 8,839 ​ ​ 1,028 ​ ​ 10,103 ​ ​ — ​ ​ 723 Land ​ ​ 72,913 ​ 9.0 ​ ​ ​ 48,844 ​ ​ — ​ ​ 7,259 ​ ​ 16,444 ​ ​ — ​ ​ 366 Townhomes ​ ​ 72,773 ​ 9.0 ​ ​ ​ 47,391 ​ ​ 1,061 ​ ​ 1,703 ​ ​ 21,564 ​ ​ 1,054 ​ ​ — Mixed Use ​ ​ 66,092 ​ 8.2 ​ ​ ​ 60,232 ​ ​ 5,860 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Hotel ​ ​ 51,115 ​ 6.3 ​ ​ ​ 42,874 ​ ​ 8,241 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Senior Housing ​ ​ 34,283 ​ 4.2 ​ ​ ​ 34,283 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Offices ​ ​ 29,540 ​ 3.7 ​ ​ ​ 8,495 ​ ​ 21,045 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Commercial Lots ​ ​ 15,683 ​ 1.9 ​ ​ ​ 15,683 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Retail ​ ​ 11,397 ​ 1.4 ​ ​ ​ 9,500 ​ ​ 1,897 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Industrial ​ ​ 11,309 ​ 1.4 ​ ​ ​ 704 ​ ​ 10,605 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Quadplex ​ ​ 5,592 ​ 0.7 ​ ​ ​ 5,592 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Commercial ​ ​ 877 ​ 0.1 ​ ​ ​ — ​ ​ 877 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Duplex ​ ​ 736 ​ 0.1 ​ ​ ​ — ​ ​ — ​ ​ — ​ ​ 736 ​ ​ — ​ ​ — Commercial other ​ ​ 254 ​ 0.1 ​ ​ ​ 254 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Total $ 809,076 ​ 100.0 % $ 581,765 $ 90,775 $ 14,395 $ 105,099 $ 15,953 $ 1,089 CECL allowance (10,590) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying value, net $ 798,486 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents the year of origination or amendment where the loan incurred a full re-underwriting. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2020 ​ Year Originated (1) (dollars in thousands) Carrying Value % of Portfolio 2020 2019 ​ 2018 2017 2016 Prior LTV (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 0 - 40% $ 22,601 ​ 2.8 % $ 18,112 ​ $ — ​ $ 3,862 ​ $ 261 ​ $ — ​ $ 366 41 - 45% ​ ​ 68,263 ​ 8.4 ​ ​ ​ 44,683 ​ ​ 20,183 ​ ​ 3,397 ​ ​ — ​ ​ — ​ ​ — 46 - 50% 23,864 ​ 2.9 ​ 15,917 ​ 7,224 ​ — ​ — ​ — ​ 723 51 - 55% 76,539 ​ 9.5 ​ 57,583 ​ 2,774 ​ — ​ 16,182 ​ — ​ — 56 - 60% ​ ​ 135,170 ​ 16.7 ​ ​ ​ 117,309 ​ ​ 3,106 ​ ​ — ​ ​ 9,639 ​ ​ 5,116 ​ ​ — 61 - 65% ​ ​ 450,253 ​ 55.7 ​ ​ ​ 301,964 ​ ​ 57,488 ​ ​ 7,136 ​ ​ 76,139 ​ ​ 7,526 ​ ​ — 66 - 70% ​ ​ 9,416 ​ 1.2 ​ ​ ​ 9,416 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — 71 - 75% ​ ​ 1,983 ​ 0.2 ​ ​ ​ 1,983 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — 76 - 80% ​ ​ 14,544 ​ 1.8 ​ ​ ​ 14,544 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Above 80% ​ ​ 6,443 ​ 0.8 ​ ​ ​ 254 ​ ​ — ​ ​ — ​ ​ 2,878 ​ ​ 3,311 ​ ​ — Total $ 809,076 ​ 100.0 % $ 581,765 $ 90,775 $ 14,395 $ 105,099 $ 15,953 $ 1,089 CECL allowance (10,590) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying value, net $ 798,486 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents the year of origination or amendment where the loan incurred a full re-underwriting. (2) Represents LTV as of origination or latest amendment. LTVs above 65% generally represent loans in contractual default status where we have agreed to extend funds to the borrower above 65% in order to ensure successful completion of the construction and return of capital. ​ ​

Fair value measurements

Fair value measurements3 Months Ended
Mar. 31, 2021
Fair value measurements
Fair value measurementsNote 4 – Fair value measurements The following tables present estimated fair values of our financial instruments as of the period indicated, whether or not recognized or recorded in the consolidated balance sheets at the period indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2021 ​ Fair Value Measurements Using ​ ​ ​ Carrying ​ ​ Estimated ​ ​ ​ ​ ​ ​ ​ ​ ​ (dollars in thousands) ​ ​ Value ​ ​ Fair Value ​ ​ Level 1 ​ ​ Level 2 ​ ​ Level 3 Financial Assets ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 204,277 ​ $ 204,277 ​ $ 204,277 ​ $ — ​ $ — Mortgage notes receivable, net ​ 804,471 ​ 804,471 ​ — ​ — ​ 804,471 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ Fair Value Measurements Using ​ ​ ​ Carrying ​ ​ Estimated ​ ​ ​ ​ ​ ​ ​ ​ ​ (dollars in thousands) ​ ​ Value ​ ​ Fair Value ​ ​ Level 1 ​ ​ Level 2 ​ ​ Level 3 Financial Assets ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 223,375 ​ $ 223,375 ​ $ 223,375 ​ $ — ​ $ — Mortgage notes receivable, net ​ 798,486 ​ 798,486 ​ — ​ — ​ 798,486 ​ We follow the accounting guidance in ASC 820, Fair Value Measurements and Disclosures, which requires the categorization of fair value measurement into three broad levels of the fair value hierarchy as follows: Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The following table sets forth assets and liabilities measured and reported at fair value on a recurring and nonrecurring basis, as well as for which fair value is only disclosed, as of March 31, 2021 and December 31, 2020. All of these fair values are categorized as Level 3. The table also contains information about valuation methodologies and inputs used for assets that are measured at fair value and categorized within Level 3 as of March 31, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 3 ​ Valuation ​ Unobservable ​ Range of (dollars in thousands) ​ ​ March 31, 2021 ​ December 31, 2020 ​ technique ​ inputs ​ inputs ​ Real property (1) ​ 13,113 ​ ​ 8,473 Collateral valuations ​ Discount to appraised value based on comparable market prices ​ 0 - 10 % Collateral dependent loans, net of allowance for credit losses (2) ​ ​ 60,634 ​ ​ 30,920 ​ Collateral valuations ​ Discount to appraised value based on comparable market prices ​ 0 - 10 % Total $ 73,747 ​ $ 39,393 ​ ​ ​ ​ ​ (1) Real property is stated at lower of cost or fair value, a non-recurring measurement of fair value. (2) Loans meeting the definition of collateral dependent are measured at the fair value less the costs to sell the underlying property. The carrying value of the collateral dependent loans, net of the allowance for credit losses, approximates fair value. Fair value on a nonrecurring basis Investments in real properties are initially recorded at the acquisition cost less estimated costs to sell, which approximates fair value. Upon transfer from mortgage notes receivable to investment in real estate property, the fair value less costs to sell becomes the new cost for the property. Costs related to acquisition, development, construction and improvements are capitalized. At each reporting date, the fair value of real properties is based upon the most recent independent third-party appraisals of value discounted based upon our experience with actual liquidation values. These discounts to the appraisals generally range from 0% to 10%. As the result of using unobservable inputs in the valuation, we classify investments in real properties as Level 3 within the fair value hierarchy. For collateral dependent loans, the fair values are based on the value of the underlying collateral less the costs to sell. At each reporting date, these loans are evaluated based upon the most recent independent third-party appraisals of value discounted based upon our experience with actual liquidation values. These discounts to the appraisals generally range from 0% to 10%. As the result of using unobservable inputs in the valuation, we classify collateral dependent as Level 3 within the fair value hierarchy. Fair value disclosure only For certain of our financial instruments, including cash equivalents, which are classified under Level 1 within the fair value hierarchy, the carrying amounts approximate fair value due to their short-term maturities. Our loans in mortgage notes receivable are evaluated for expected credit losses and mortgage notes receivable are presented net of an allowance for credit losses. Due to the short-term maturity of the mortgage notes receivable, a premium or discount is not material and the carrying value approximates fair value. We believe that our mortgage notes receivable net of the CECL allowance approximates fair value of the portfolio. As a result of the use of unobservable inputs, including third-party appraisals for estimating as-complete appraised values, we classify mortgage notes receivable as Level 3 within the fair value hierarchy.

Stockholders' Equity and Member

Stockholders' Equity and Members' Equity3 Months Ended
Mar. 31, 2021
Stockholders' Equity and Members' Equity
Stockholders' Equity and Members' EquityNote 5 - Stockholders’ Equity and Members’ Equity Stockholders’ Equity The Company is authorized to issue 500,000,000 shares of common stock with a par value of $0.001 per share and 100,000,000 shares of preferred stock with a par value of $0.001 per share. Holders of our common stock are entitled to one vote for each share. As of March 31, 2021 and December 31, 2020, there were 132,566,410 and 132,532,383 shares of common stock issued outstanding As of March 31, 2021 and December 31, 2020 Earnings per Share The table below presents the computation of basic and diluted net income per share of common stock for the periods presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended (dollars in thousands, except share and per share data): ​ March 31, 2021 ​ March 31, 2020 Net income ​ $ 20,381 ​ $ 26,469 Basic weighted-average shares of common stock outstanding ​ ​ 132,550,227 ​ ​ 132,111,329 Dilutive effect of share-based compensation ​ 128,585 ​ 224,986 Diluted weighted-average shares of common stock outstanding (1) ​ ​ 132,678,812 ​ ​ 132,336,315 Basic earnings per share ​ $ 0.15 ​ $ 0.20 Diluted earnings per share ​ $ 0.15 ​ $ 0.20 (1) We exclude anti-dilutive shares from calculation of weighted-average shares for diluted earnings per share. For the three months ended March 31, 2021, there were 15.6 million shares related to the Public Warrants and Private Warrants and 371,318 shares of unvested restricted stock unit awards, which are not included in the above calculation of diluted earnings per share because in doing so they would be anti-dilutive. For the three months ended March 31, 2020, only the 15.6 million shares related to the Public Warrants and Private Warrants were anti-dilutive and not included in the above calculation of diluted earnings per share .

Income Taxes

Income Taxes3 Months Ended
Mar. 31, 2021
Income Taxes
Income TaxesNote 6 - Income Taxes The Manager has elected to be treated as a TRS and this election applies to the wholly-owned subsidiaries of the Manager, including the Private REIT Manager. Having TRSs permit us to participate in certain activities from which REITs are generally precluded, as long as these activities meet specific criteria, are conducted within the parameters of certain limitations established by the Code and are conducted in entities which elect to be treated as taxable subsidiaries under the Code. To the extent these criteria are met, we will continue to maintain the qualification as a REIT. We generally must distribute annually at least 90% of our net taxable income, subject to certain adjustments and excluding any net capital gain, in order for U.S. federal income tax not to apply to our earnings that we distribute. To the extent that we satisfy this distribution requirement but distribute less than 100% of our net taxable income, we will be subject to U.S. federal income tax on our undistributed taxable income. In addition, we will be subject to a 4% nondeductible excise tax if the actual amount that we pay out to our stockholders in a calendar year is less than a minimum amount specified under U.S. federal tax laws. Our qualification as a REIT also depends on our ability to meet various other requirements imposed by the Code, which relate to organizational structure, diversity of stock ownership, and certain restrictions with regard to the nature of assets and the sources of income. Even if we qualify as a REIT, we may be subject to certain U.S. federal income and excise taxes and state and local taxes on our income and assets. If we fail to maintain our qualification as a REIT for any taxable year, we may be subject to material penalties as well as federal, state, and local income tax on our taxable income at regular corporate rates and we would not be able to qualify as a REIT for the subsequent four full taxable years. As of March 31, 2021 and December 31, 2020, we were in compliance with all REIT requirements. Based on our evaluation, we concluded that there are no significant uncertain tax positions requiring recognition in our condensed consolidated financial statements of a contingent tax liability for uncertain tax positions. Additionally, there were no amounts accrued for penalties or interest as of or during the periods presented in the accompanying condensed consolidated financial statements. The state and local tax jurisdictions for which we are subject to tax-filing obligations recognize our status as a REIT, and therefore, we generally do not pay income tax in such jurisdictions. We may, however, be subject to certain minimum state and local tax filing fees as well as certain excise or business taxes. Our TRSs are subject to U.S. federal, state and local income taxes.

Equity Incentive Plan

Equity Incentive Plan3 Months Ended
Mar. 31, 2021
Equity Incentive Plan
Equity Incentive PlanNote 7 - Equity Incentive Plan Stock Incentive Plan The Broadmark Realty 2019 Stock Incentive Plan (the “Plan”) allows for the issuance of up to 5,000,000 stock options, stock appreciation rights, restricted stock awards, restricted stock units or other equity-based awards or any combination thereof to the directors, employees, consultants or any other party providing services to us. The Plan is administered by the compensation committee of our board of directors. As of March 31, 2021, 3,624,268 share awards were available to be issued under the Plan. The restricted stock units granted under the Plan generally vest from one three performance period. A variable level of shares of our common stock, ranging from of target level, will be earned based on the level of achievement of the Relative TSR goals. The earned pRSUs will be paid in the form of common stock promptly following the end of the performance period. The pRSUs are each measured at fair value based on Monte Carlo simulation models. All RSUs awarded will be settled upon vesting in shares of our common stock. If (1) the recipient becomes disabled and the recipient’s employment or service is terminated as a result, (2) the recipient dies during the vesting period, or (3) the recipient’s employment is terminated without cause (as defined in the Plan) in connection with, or in certain cases within a specified period following a change in control (as defined in the Plan), then the vesting of the RSUs will fully accelerate as of the date of termination of employment. Dividend equivalents are not accrued or paid on RSUs granted to employees, executive officers and directors and accordingly those RSUs are not considered participating securities. If an award granted under the Plan expires or terminates, the shares subject to any portion of the award that expires or terminates without having been exercised or paid will again become available for the issuance of additional awards. The following table summarizes the activity related to RSUs during the three months ended March 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Average ​ ​ ​ ​ Grant Date Fair ​ ​ Shares ​ Market Value Unvested RSUs outstanding as of December 31, 2020 434,143 ​ ​ ​ Granted 424,866 ​ $ 8.68 Vested (37,227) ​ $ 11.08 Unvested RSUs outstanding as of March 31, 2021 821,782 ​ ​ ​ ​ For the three months ended March 31, 2021 and 2020, we recognized compensation expense related to RSUs of $0.7 and $0.9 million, respectively, based on amortizing the fair value of the awards over the service (vesting) period. As of March 31, 2021, there was $7.1 million of net unrecognized compensation cost related to unvested stock-based compensation arrangements. This compensation is recognized on a straight-line basis over a weighted-average recognition period of 2.3 years.

Commitments and Contingencies

Commitments and Contingencies3 Months Ended
Mar. 31, 2021
Commitments and Contingencies.
Commitments and contingenciesNote 8 - Commitments and Contingencies The following table illustrates our contractual obligations and commercial commitments by due date as of March 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 1 ​ ​ ​ ​ More than (dollars in thousands) ​ Total ​ year ​ 1-3 years ​ 3-5 years ​ 5 years Construction holdbacks (1) ​ 379,069 ​ 237,632 ​ 141,437 ​ — ​ — Operating lease obligations ​ $ 11,527 ​ $ 812 ​ $ 1,916 ​ $ 2,033 ​ $ 6,766 Total ​ $ 390,596 ​ $ 238,444 ​ $ 143,353 ​ $ 2,033 ​ $ 6,766 (1) Includes construction holdbacks of $42.1 million on participating interests sold to the Private REIT as of March 31, 2021. The funding timing and amounts of construction holdbacks are uncertain as these commitments relate to loans for construction costs and depend on the progress and performance of the underlying projects. Construction Loans Our commitments and contingencies include usual obligations incurred by real estate lending companies in the normal course of business, including construction holdbacks as disclosed in Note 3. Lease Commitments On March 18, 2020, we entered into a non-cancelable operating lease agreement for our office space in Seattle with an original lease period expiring in 2032. The lease commencement date was in the first quarter of 2021. The total cash payments included in the measurement of our operating lease liabilities, net of lease incentives was $11.7 million. The right-of-use assets obtained in exchange for the new operating lease obligation and the tenant improvements were $6.4 and $2.0 million, respectively. The discount rate for the operation lease was 6.0%, resulting in an imputed interest amount of $3.3 million. Credit Facility On February 19, 2021, we entered into a credit agreement with a syndicate of lenders and JPMorgan Chase Bank, N.A., as administrative agent for the lenders, providing for a $135.0 million revolving credit facility. By providing backup liquidity for future draws on our construction loans, we expect the availability of the revolving credit facility will enable us to use a larger percentage of our cash balances for lending activities without planning to incur debt in the ordinary course of business. Our obligations under the revolving credit facility are secured by substantially all of our Company’s assets. The revolving credit facility contains covenants customary for financings of this type, including limitations on the incurrence of indebtedness, liens, asset dispositions, acquisitions, mergers and consolidations, certain dividends, distributions and other payments, advances and investments, payments to affiliates, optional prepayments and other modifications of certain other indebtedness, and amendments, terminations and waivers of certain material agreements, as well as a minimum tangible net worth and a total debt to equity ratio requirement. Among other things, the credit agreement provides that we may not pay cash dividends that would result in non-compliance with the financial covenants under the credit agreement or during an event of default under the credit agreement, except in the case of defaults other than payment defaults, for dividends in amounts necessary to maintain our REIT status. The revolving credit facility contains events of default customary for financings of this type, including failure to pay principal, interest and other amounts, materially incorrect representations or warranties, failure to observe covenants and other terms of the revolving credit facility, cross-defaults to other indebtedness, bankruptcy, insolvency, material judgments, certain ERISA violations, changes in control and failure to maintain REIT status, in some cases subject to customary grace periods. Legal Proceedings From time to time, we are named as a defendant in legal actions relating to transactions conducted in the ordinary course of business. Although there can be no assurance of the outcome of such legal actions, in the opinion of management, we do not have a potential liability related to any current legal proceeding or claim that would individually or in the aggregate materially affect our results of operations, financial condition or cash flows. Concentration Risk Our portfolio of active loans is primarily secured by first deed of trust liens on residential and commercial real estate located in 14 states and the District of Columbia. Our loan portfolio is also concentrated within ten counties, the largest being Utah county in Utah. As of March 31, 2021 and December 31, 2020, the top ten counties make up 44.5% and 43.2% of the total committed amount of loans in our total portfolio.

Related party transactions

Related party transactions3 Months Ended
Mar. 31, 2021
Related party transactions
Related party transactionsNote 9 - Related party transactions Private Placement with Farallon On November 14, 2019, Broadmark Realty consummated a business combination (the “Business Combination”) pursuant to an Agreement and Plan of Merger, dated August 9, 2019 (the “Merger Agreement”). In connection with the Business Combination and the execution of the Merger Agreement, we entered into certain subscription agreements with affiliates of Farallon Capital Management, L.L.C. (the “Farallon Entities”) for a private placement (the “PIPE Investment”) of our shares of common stock, pursuant to which, immediately prior to the consummation of the Business Combination, we issued and sold to the Farallon Entities an aggregate of 7,174,163 shares of common stock for an aggregate purchase price of approximately $75.0 million at a price per share equal to $10.45352229 (the “Reference Price”). In connection with the PIPE Investment, we issued to the Farallon Entities an aggregate of 7,174,163 Public Warrants. The Farallon Entities received a fee for each warrant equal to the cash payable per each warrant held by unaffiliated Public Warrant holders in connection with the warrant amendment proposal approved as part of the Business Combination, in an amount equal to $1.60 per warrant. As a result of the PIPE Investment, the Farallon Entities own more than 5% of our outstanding common stock. We also provided the Farallon Entities with certain registration rights in connection with the PIPE Investment, pursuant to which we registered in December 2019 the shares of our common stock, Public Warrants and shares issuable upon exercise of the Public Warrants under the Securities Act. As part of the PIPE Investment, the Farallon Entities had an option (the “Optional Subscription”) to purchase up to $25 million of additional shares of common stock, which were exercisable during the 365-day Broadmark Private REIT, LLC The Private REIT is a private real estate finance company that primarily participates in short-term, first deed of trust loans secured by real estate that are originated, underwritten and serviced by Broadmark Realty Capital Inc. The Private REIT is managed by our subsidiary in accordance with a market-based arrangement and was determined to be a voting interest entity. We do not directly or indirectly control the Private REIT and own only a nominal interest in the Private REIT’s common units and, therefore, we do not consolidate the Private REIT. Furthermore, the Private REIT’s participations in loans originated by us meet the characteristics of participating interests and therefore, are treated as sales of mortgage notes receivable and are derecognized from our condensed consolidated financial statements.

Subsequent events

Subsequent events3 Months Ended
Mar. 31, 2021
Subsequent events
Subsequent eventsNote 10 - Subsequent events Dividend Declaration On April 16, 2021, our board of directors declared a cash dividend of $0.07 per common share payable on May 14, 2021 to stockholders of record as of April 30, 2021.

Summary of significant accoun_2

Summary of significant accounting policies (Policies)3 Months Ended
Mar. 31, 2021
Summary of significant accounting policies
Basis of PresentationBasis of Presentation The accompanying condensed consolidated financial statements include Broadmark Realty Capital Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. These condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and accompanying notes included in Broadmark Realty Capital Inc.’s Annual Report on Form 10-K/A for the year ended December 31, 2020, which was filed with the SEC on March 2, 2021. The condensed consolidated balance sheet as of December 31, 2020, included herein, was derived from the audited financial statements of Broadmark Realty Capital Inc. as of that date. The unaudited condensed consolidated interim financial statements, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our financial position as of March 31, 2021, our results of operations and stockholders’ equity for the three month periods ended March 31, 2021 and 2020, and our cash flows for the three month periods ended March 31, 2021 and 2020. The results of the three month period ended March 31, 2021 is not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any interim period or for any other future year.
Principles of ConsolidationPrinciples of Consolidation Broadmark Realty consolidates those entities in which it has control over significant operating, financial and investing decisions of the entity, as well as those entities deemed to be variable interest entities (“VIEs”), if any, in which Broadmark Realty is determined to be the primary beneficiary. Broadmark Realty is not the primary beneficiary of, and therefore does not consolidate, any VIEs. The Private REIT was determined to be a voting interest entity for which we, through our wholly-owned subsidiary acting as manager with no significant equity investment, do not hold a controlling interest in and do not consolidate. Furthermore, the Private REIT participation in loans originated by us meets the characteristics of a participating interest in accordance with GAAP and therefore, is treated as a sale of mortgage notes receivable and is derecognized from our consolidated financial statements.
ReclassificationsReclassifications Certain amounts in our prior period condensed consolidated financial statements have been reclassified to conform to the presentation of our current period condensed consolidated financial statements. These reclassifications had no effect on our previously reported net income or stockholders’ equity. The reclassification for the separate presentation of accretion of deferred origination and amendment fees resulted in a reclassification of net cash provided by operating activities to net cash provided by investing activities, both as previously reported. The reclassifications also included the separate presentation of amortization of right of use assets and change in lease liabilities and the combined presentation of depreciation and amortization on the condensed consolidated statements of cash flows.
Use of EstimatesUse of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The most significant estimates relate to the expected credit losses on our loans and the fair value of financial instruments and investments in real property. Accordingly, actual results could differ from those estimates. The COVID-19 pandemic has introduced significant additional uncertainty with respect to estimates, judgments and assumptions, which may materially impact the estimates previously listed, among others.
Certain Significant Risks and UncertaintiesCertain Significant Risks and Uncertainties In the normal course of business, we encounter one primary type of economic risk in the form of credit risk. Credit risk is the risk of default on our investment in mortgage notes receivable resulting from a borrower’s inability or unwillingness to make contractually required payments. We believe that the carrying values of our loans reasonably consider this credit risk. In addition, we are subject to significant tax risks. If we were to fail to qualify as a REIT in any taxable year, we would be subject to U.S. federal corporate income tax, which could be material. We operate in a dynamic industry and, accordingly, can be affected by a variety of factors. For example, we believe that changes in any of the following areas could have a significant negative effect on us in terms of our future financial position, results of operations or cash flows: public health crises, like the COVID-19 pandemic; the economy in the areas we operate; competition in our market; the stability of the real estate market and the impact of interest rate changes; changes in government regulation affecting our business; natural disasters and catastrophic events; our ability to attract and retain qualified employees and key personnel; and protection of customers’ information and other privacy concerns, among other things.
Reportable SegmentsReportable Segments We operate the business as one reportable segment, which originates, underwrites and services construction loans.
Cash and Cash EquivalentsCash and Cash Equivalents We consider all highly liquid investments with an original maturity of 90 days or less at the date of purchase to be cash equivalents. We have a cash management sweep account repurchase agreement whereby our bank nightly sweeps cash in excess of $750,000, sells us specific U.S. Government Agency securities and then repurchases these securities the next day. We maintain our cash and cash equivalents with financial institutions, which are insured up to a maximum of $250,000 per account as of March 31, 2021 and December 31, 2020. The balances in these accounts may exceed the insured limits. There were no restrictions on cash as of March 31, 2021 or December 31, 2020.
Mortgage Notes ReceivableMortgage Notes Receivable Mortgage notes receivable (referred to herein as “mortgage notes receivable”, “construction loans”, “loans”, or “notes”) are classified as held for investment as we have the intent and ability to hold until maturity or payoff and are carried in the condensed consolidated balance sheets at amortized cost, net of construction holdbacks, interest reserves, allowance for credit losses and deferred origination and amendment fees. Participations in mortgage notes receivables are accounted for as sales and derecognized from the balance sheet when control over the transferred assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) a group of financial assets or a participating interest in an entire financial asset has been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right, beyond a more than trivial benefit) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. If the sales do not meet these criteria, the sale of the participation is treated as a secured borrowing. As of March 31, 2021, all participations in mortgage notes receivable sold to the Private REIT have achieved sale accounting.
Current Expected Credit Losses AllowanceCurrent Expected Credit Losses Allowance In the fourth quarter of 2020, we adopted the current expected credit loss (“CECL Standard”) for the full year ended December 31, 2020 as we ceased to qualify as an emerging growth company effective December 31, 2020. As a result, we were no longer permitted an extended transition period for complying with new or revised accounting standards affecting public companies. The initial CECL allowance adjustment of $2.0 million was recorded on January 1, 2020 as a cumulative-effect of change in accounting principle through a direct charge to accumulated deficit on our condensed consolidated statements of stockholders’ equity; however subsequent changes to the CECL allowance are recognized through net income on our condensed consolidated statements of income. Our condensed consolidated statement of income for the three months ended March 31, 2020 includes an additional provision for credit losses of $0.8 million associated with the adoption of the CECL Standard, as a result, our previously reported net income of $27.3 million for this period is lower by $0.8 million. The CECL Standard replaced the incurred loss model under existing guidance with an expected loss model for instruments measured at amortized cost. We now record an allowance for credit losses in accordance with the CECL Standard on our loan portfolio, including unfunded construction holdbacks, on a collective basis by assets with similar risk characteristics. In addition, for assets that are classified as collateral dependent based on foreclosure being probable, we continue to record loan specific allowances based on the fair value of the collateral for expected credit losses under the CECL Standard. Given the short-term nature of our loans, we evaluate the most recent external appraisal and depending on the age of the appraisal, may order a new appraisal or, where available, will evaluate against existing comparable sales or other pertinent information to estimate the fair value of the collateral for such loans. The CECL Standard requires an entity to consider historical loss experience, current conditions, and a reasonable and supportable forecast of the economic environment. The Company utilizes a probability of default/loss given default (“PD/LGD”) method approach for estimating current expected credit losses. In accordance with the PD/LGD method, an annual historical loss rate is applied to the amortized cost of an asset or pool of assets over the remaining expected life. The PD/LGD method requires consideration of the timing of expected future funding of existing commitments and repayments over each asset’s remaining life. An annual loss factor, adjusted for macroeconomic estimates, is applied over each subsequent period and aggregated to arrive at the CECL allowance. In determining the CECL allowance, we considered various factors including (i) historical loss experience in our portfolio, (ii) historical loss experience in the commercial real estate lending market, (iii) timing of expected pay offs including prepayments and extensions where reasonably expected, and (iv) our current and future view of the macroeconomic environment. We utilize a reasonable and supportable forecast period equal to the contractual term of the loan plus short-term extensions of one to three months that are reasonably expected for construction loans. Management estimates the allowance for credit losses using relevant information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The allowance for credit losses is maintained at a level sufficient to provide for expected credit losses over the life of the loan based on evaluating historical credit loss experience and making adjustments to historical loss information for differences in the specific risk characteristics in the current loan portfolio. Refer to “Note 3 – Mortgage Notes Receivable” for further information regarding the CECL allowance. We have made an accounting policy election to exclude accrued interest receivable, included in interest and fees receivable, net on our consolidated balance sheets, from the amortized cost basis of the related mortgage notes receivable in determining the CECL allowance as any uncollected accrued interest receivable is written off in a timely manner. No interest income is recognized on mortgage notes receivable that are in contractual default unless the interest is paid in cash or collectability of all amounts due is reasonably assured. In addition, in certain instances, where the interest reserve on a current loan has been fully depleted and the interest payment is not expected to be collected from the borrower, we may place a current loan on non-accrual status and recognize interest income on a cash-basis.
Deferred IncomeDeferred Income Deferred income represents the amount of our origination and amendment fees that have been deferred and will be recognized in income over the contractual maturity of the underlying loan. Origination fees are included in the total commitment to the borrower and financed at the time of loan origination. Amendment fees are either included in the total commitment to the borrower and financed at the time of the loan amendment or are billed to the borrower when the loan is amended and not capitalized into the principal outstanding. Deferred origination and amendment fees capitalized into the principal outstanding are included within mortgage notes receivable, net on the consolidated balance sheets. Deferred amendment fees that are not included in the principal outstanding are presented within interest and fees receivable, net on the condensed consolidated balance sheets.
Interest and Fees ReceivableInterest and Fees Receivable Interest on performing loans is accrued and recognized as interest income at the contractual rate of interest, or at the contractual rate of monthly minimum interest. Extension fees are charged when we agree to extend the maturity dates of loans. In addition, late fees are changed when borrower payments are contractually past due. We monitor each note’s outstanding interest and fee receivables and, based on historical performance, generally reserve against the balance after a receivable is greater than 60 days past due unless collectability of all amounts due is reasonably assured. We have made an accounting policy election to exclude accrued interest and fee receivables from the amortized cost basis of the related mortgage notes receivable in determining the CECL allowance as any uncollected accrued interest receivable is written off in a timely manner.
Real propertyReal property Real property owned by us consists of real estate acquired in settlement of loans. Real estate acquired through foreclosure or deed in lieu of foreclosure is recorded at fair market value at the time of acquisition, which generally approximates the carrying value of the loan secured by such property. Costs related to acquisition, development, construction and improvements are capitalized to the extent the investment in the real property does not exceed the fair value less estimated costs to sell. Expenditures for repairs and maintenance are charged to expense when incurred. As of March 31, 2021 and December 31, 2020, we owned four and three properties or projects, respectively.
LeasesLeases Our office space in Seattle, Washington is subject to an operating lease. Our operating lease is included in right of use assets and lease liabilities on our consolidated balance sheets. The lease agreement includes both lease components (e.g., fixed rent) and non-lease components (e.g., common area maintenance). We account for the lease and non-lease components as a single component. Right of use assets represent our right to use an underlying asset during the lease term and lease liabilities represent our obligation to make lease payments. Right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of the total lease payments not yet paid, including lease incentives not yet received, with the right of use assets further adjusted for any prepaid or accrued lease payments, lease incentives received and/or initial direct costs incurred. Our lease arrangement also includes variable payments for costs such as common-area maintenance, utilities, taxes or other operating costs, which are based on a percentage of actual expenses incurred. These variable lease payments are excluded from the measurement of the right of use assets and lease liabilities. Our lease term is through January 2032, which includes an option to extend the lease term for an additional five years. When determining if a renewal option is reasonably certain of being exercised at lease commencement, we consider several factors, including but not limited to, contract-based, asset-based and entity-based factors. We reassess the term of the existing lease if there is a significant event or change in circumstances within our control that affects whether we are reasonably certain to exercise the option to extend the lease. Examples of such events or changes include construction of significant leasehold improvements or other modifications or customizations to the underlying asset, relevant business decisions or subleases. We have concluded that the renewal option is not reasonably certain of being exercised, therefore, the renewal is not included in the right of use asset and lease liability. As our lease did not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. We recognize lease expense for our operating lease on a straight-line basis over the lease term. Variable lease payments are generally recognized when incurred. These expenses are included in general and administrative expenses in the consolidated statements of income.
GoodwillGoodwill Goodwill represents the excess of the cost of an acquired business over the fair value of the assets acquired at the date of acquisition and is not amortized. We assess the impairment of goodwill on an annual basis, in our fourth quarter, or whenever events or changes in circumstances indicate that goodwill may be impaired. In our evaluation of goodwill, we typically first perform a qualitative assessment to determine whether the carrying value of each reporting unit is greater than its fair value. If it is more likely than not that the carrying value of a reporting unit is greater than its fair value, we perform a quantitative assessment and an impairment charge is recorded in our statements of operations for the excess of carrying value of the reporting unit over its fair value. We reevaluated the fair value of the reporting unit during our annual assessment in the fourth quarter of 2020 and the fair value of the reporting unit exceeded the carrying value and there was no goodwill impairment. During the first quarter of 2021, we continued to monitor the impact of COVID-19 and determined there were no new triggering events to warrant a quantitative assessment of our goodwill. In the first quarter of 2020, we recorded a measurement period adjustment to reduce the preliminary fair value of intangible assets in the form of customer relationships by $5.0 million and increased our preliminary value of goodwill by $5.0 million. As a result of this adjustment to preliminary values, $0.9 million of amortization of intangible assets recorded in 2019 was reversed in the first quarter of 2020.
Other AssetsOther Assets Other assets primarily consist of fixed assets, deferred financing costs, intangible assets, prepaid insurance and other operating receivables.
Fixed AssetsFixed Assets Fixed assets, which are included in other assets in the accompanying condensed consolidated balance sheets are stated at cost, less accumulated depreciation. Repairs and maintenance to these assets are charged to expense as incurred; major improvements enhancing the function and/or useful life are capitalized. When items are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gains or losses arising from such transactions are recognized. Depreciation is recorded on the straight-line basis over the estimated useful life of the assets. For computer equipment, office equipment, furniture and fixtures the useful lives range from three
Deferred Financing CostsDeferred Financing Costs Deferred financing costs represent direct costs associated with the execution of the revolving credit facility. As the revolving credit facility has no principal outstanding and there is no recognized debt liability, the deferred financing costs are included in other assets on the condensed consolidated balance sheet. These costs are amortized on the straight-line basis over the initial term of our credit facility.
Intangible AssetsIntangible Assets We record the intangible assets at fair value at the acquisition date and are amortizing the value of these finite-lived intangibles into expense over the expected useful life. All of our intangible assets relate to the value of customer relationships. As of March 31, 2021 and December 31, 2020, intangible assets net of accumulated amortization was $0.5 and $0.6 million, respectively.
Interest IncomeInterest Income Interest income on mortgage notes receivable is accrued based on contractual rates applied to the principal balance outstanding, unless there is a minimum interest provision in the mortgage note. Many construction loans provide for minimum interest provisions, under which the contractual rate applies to, which are typically between 50% and 70% of the face amount of the note until the actual outstanding principal exceeds the minimum threshold. Mortgage notes receivable can be placed in contractual default status for any of the following reasons: (1) an interest payment is more than 30 days past due; (2) a note matures and the borrower fails to make payment of all amounts owed or extend the loan; or (3) the collateral becomes impaired in such a way that the ultimate collection of the note is doubtful. The accrual of interest income is suspended when a loan is in contractual default unless the interest is paid in cash or collectability of all amounts due is reasonably assured. In addition, in certain instances, where the interest reserve on a current loan has been fully depleted and the interest payment is not expected to be collected from the borrower, we may place a current loan on non-accrual status and recognize interest income on a cash-basis. Interest previously accrued may be reversed at that time, and such reversal is offset against interest income. The accrual of interest income resumes only when the suspended loan becomes contractually current or a credit analysis supports the ability to collect in accordance with the terms of the loan.
Fee IncomeFee Income We charge loan origination fees in conjunction with origination. Amendment fees are charged when loan terms are modified, such as increases in interest reserves and construction holdbacks in line with our underwriting criteria or upon modification of a loan for the transition from horizontal development to vertical construction. We defer and amortize loan origination and amendment fees over the contractual terms of the loans. We charge inspection fees, which we use to hire independent inspectors to report on the status of construction projects. These fees are earned and recognized upon each construction draw request.
Share-Based PaymentsShare‑Based Payments We measure compensation expense for all share-based awards at fair value on the date of grant and recognize compensation expense over the service period on a straight-line basis for awards expected to vest, which is generally three years for employees and one year for directors. Share-based awards are issued under the Broadmark Realty Capital Inc. 2019 Stock Incentive Plan. Awards made to our employees and directors, typically consist of restricted stock units (“RSUs”). For awards with only a service vesting condition, the fair value of the award is based on the grant date closing price of our common stock less the present value of expected dividends over the requisite service period as the awards are not entitled to dividends. For these awards, we recognize stock-based compensation expense on a straight-line basis over the requisite service period for the entire award, subject to periodic adjustments to ensure that the cumulative amount of expense recognized through the end of any reporting period is at least equal to the portion of the grant date fair value of the award that has vested through that date, and we account for forfeitures prospectively as they occur. For awards that contain both service vesting and market conditions, referred to as performance restricted stock units (“pRSUs”), we use a Monte Carlo simulation model to calculate the grant date fair value. For these market-condition awards, regardless of the outcome of the market condition, we recognize stock-based compensation expense on a straight-line basis over the longest of explicit and derived service periods, and we account for forfeitures prospectively as they occur. If there are any modifications or cancellations of the underlying unvested share-based awards, we may be required to accelerate or increase any remaining unrecognized or previously recorded stock-based compensation expense.
Income TaxesIncome Taxes We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, for U.S. federal income tax purposes (the “Code”). As a REIT, we generally are not subject to U.S. federal income taxes on net income we distribute to our shareholders. We intend to make timely distributions sufficient to satisfy the annual distribution requirements. If we fail to qualify as a REIT in any taxable year, we will be subject to U.S. federal income tax on our taxable income at regular corporate tax rates. Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and property and U.S. federal income and excise taxes on our undistributed income. Our TRSs are subject to U.S. federal income taxes.
Earnings per ShareEarnings per Share We present both basic and diluted earnings per common share (“EPS”) amounts in our condensed consolidated financial statements. Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS reflects the maximum potential dilution that could occur from our outstanding warrants and restricted stock units. We utilize the treasury stock method to measure dilution to earnings per share in calculating the net number of shares that would be issued assuming any related proceeds are used to buy back outstanding shares.
Recent Accounting PronouncementsRecent Accounting Pronouncements There are no recent accounting pronouncements that we have yet to adopt with an expected impact on our financial position, results of operations or cash flows.

Mortgage notes receivable (Tabl

Mortgage notes receivable (Tables)3 Months Ended
Mar. 31, 2021
Mortgage notes receivable
Schedule of mortgage notes receivable​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (dollars in thousands) March 31, 2021 December 31, 2020 Total loan commitments ​ $ 1,280,964 ​ $ 1,245,963 Less: ​ ​ ​ ​ ​ Construction holdbacks (1) ​ ​ 379,069 ​ ​ 356,026 Interest reserves (1) ​ ​ 30,369 ​ ​ 29,817 Private REIT participation (2) ​ ​ 42,740 ​ ​ 37,729 Total principal outstanding for our mortgage notes receivable ​ ​ 828,786 ​ ​ 822,391 Less: ​ ​ ​ ​ ​ ​ Allowance for credit losses (3) ​ ​ 10,663 ​ ​ 10,590 Deferred origination and amendment fees ​ ​ 13,652 ​ ​ 13,315 Mortgage notes receivable, net ​ $ 804,471 ​ $ 798,486 (1) Includes construction holdbacks of $42.1 and $40.4 million and interest reserves of $3.6 and $4.3 million on participating interests sold to the Private REIT as of March 31, 2021 and December 31, 2020, respectively. (2) The Private REIT’s participations in loans originated by us meet the characteristics of participating interests and, therefore, are treated as sales of mortgage notes receivable and are derecognized from our condensed consolidated financial statements. (3) $0.9 million of the CECL Allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our condensed consolidated balance sheet. ​
Schedule of activity in the CECL Allowance​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CECL Allowance (dollars in thousands) ​ Funded ​ Unfunded (2) ​ Total CECL allowance as of December 31, 2020 ​ $ 10,590 ​ $ — ​ $ 10,590 Provision for credit losses, net ​ 1,761 ​ 947 ​ 2,708 Charge-offs (1) ​ (1,688) ​ — ​ (1,688) CECL allowance as of March 31, 2021 ​ $ 10,663 ​ $ 947 ​ $ 11,610 ​ ​ ​ ​ ​ ​ (dollars in thousands) ​ CECL Allowance Loan loss reserve as of December 31, 2019 ​ $ 4,096 ​ Adoption of ASU 2016-13 (3) ​ 1,975 ​ Provision for credit losses, net ​ ​ 4,432 ​ Charge-offs (1) ​ (537) ​ CECL allowance as of March 31, 2020 ​ $ 9,966 ​ (1) Represents either loan repayments where the proceeds are less than the principal outstanding or transfers to real property owned upon foreclosure where the fair values of the underlying collateral are less than the principal outstanding. (2) CECL Allowance relates to unfunded commitments is presented as a liability under accounts payable and accrued liabilities in our condensed consolidated balance sheet. (3) Recorded as a direct charge to stockholders’ equity as a cumulative-effect of change in accounting principle.
Schedule of composition of loan portfolio​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At March 31, 2021 ​ Year Originated (1) (dollars in thousands) Carrying Value % of Portfolio 2021 2020 ​ 2019 2018 2017 Prior Construction Type ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vertical Construction $ 505,347 ​ 62.0 % $ 118,678 ​ $ 252,275 ​ $ 37,051 ​ $ 3,080 ​ $ 88,973 ​ $ 5,290 Horizontal Development 143,405 ​ 17.6 ​ 60,361 ​ 63,180 ​ 15,453 ​ 283 ​ — ​ 4,128 Investment 166,382 ​ 20.4 ​ 46,769 ​ 72,987 ​ 18,917 ​ 3,809 ​ 17,953 ​ 5,947 Total $ 815,134 ​ 100.0 % $ 225,808 $ 388,442 $ 71,421 $ 7,172 $ 106,926 $ 15,365 CECL allowance (2) (10,663) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying value, net $ 804,471 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents the year of origination or amendment where the loan incurred a full re-underwriting. (2) $0.9 million of the CECL Allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our condensed consolidated balance sheet. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At March 31, 2021 ​ Year Originated (1) (dollars in thousands) Carrying Value % of Portfolio 2021 2020 ​ 2019 2018 2017 Prior Collateral Type ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Apartments $ 149,936 ​ 18.4 % $ 44,920 ​ $ 54,135 ​ $ 19,952 ​ $ — ​ $ 25,897 ​ $ 5,032 Residential Lots 125,808 ​ 15.4 ​ 57,579 ​ 49,003 ​ 9,874 ​ — ​ — ​ 9,352 Condos 85,240 ​ 10.5 ​ 9,269 ​ 39,408 ​ 200 ​ 1,326 ​ 35,037 ​ — Single family housing ​ ​ 73,990 ​ 9.1 ​ ​ ​ 16,047 ​ ​ 45,079 ​ ​ 5,579 ​ ​ 1,078 ​ ​ 5,484 ​ ​ 723 Land ​ ​ 73,237 ​ 9.0 ​ ​ ​ 40,678 ​ ​ 12,321 ​ ​ — ​ ​ 3,052 ​ ​ 17,186 ​ ​ — Townhomes ​ ​ 80,611 ​ 9.9 ​ ​ ​ 12,348 ​ ​ 43,735 ​ ​ — ​ ​ 1,716 ​ ​ 22,554 ​ ​ 258 Mixed Use ​ ​ 40,429 ​ 5.0 ​ ​ ​ 9,884 ​ ​ 28,622 ​ ​ 1,923 ​ ​ — ​ ​ — ​ ​ — Hotel ​ ​ 53,253 ​ 6.5 ​ ​ ​ 1,192 ​ ​ 42,990 ​ ​ 9,071 ​ ​ — ​ ​ — ​ ​ — Senior Housing ​ ​ 38,149 ​ 4.7 ​ ​ ​ — ​ ​ 38,149 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Offices ​ ​ 31,525 ​ 3.9 ​ ​ ​ — ​ ​ 9,480 ​ ​ 22,045 ​ ​ — ​ ​ — ​ ​ — Commercial Lots ​ ​ 15,259 ​ 1.9 ​ ​ ​ — ​ ​ 15,259 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Retail ​ ​ 11,838 ​ 1.5 ​ ​ ​ 5,594 ​ ​ 4,346 ​ ​ 1,898 ​ ​ — ​ ​ — ​ ​ — Industrial ​ ​ 15,403 ​ 1.9 ​ ​ ​ 15,403 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Quadplex ​ ​ 5,915 ​ 0.7 ​ ​ ​ — ​ ​ 5,915 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Commercial ​ ​ 6,524 ​ 0.8 ​ ​ ​ 5,645 ​ ​ — ​ ​ 879 ​ ​ — ​ ​ — ​ ​ — Duplex ​ ​ 3,821 ​ 0.5 ​ ​ ​ 3,053 ​ ​ — ​ ​ — ​ ​ — ​ ​ 768 ​ ​ — Commercial other ​ ​ 4,196 ​ 0.3 ​ ​ ​ 4,196 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Total $ 815,134 ​ 100.0 % $ 225,808 $ 388,442 $ 71,421 $ 7,172 $ 106,926 $ 15,365 CECL allowance (2) (10,663) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying value, net $ 804,471 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents the year of origination or amendment where the loan incurred a full re-underwriting. (2) $0.9 million of the CECL Allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our condensed consolidated balance sheet. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At March 31, 2021 ​ Year Originated (1) (dollars in thousands) Carrying Value % of Portfolio 2021 2020 ​ 2019 2018 2017 Prior LTV (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 0 - 40% $ 45,090 ​ 5.5 % $ 21,356 ​ $ 20,369 ​ $ — ​ $ 3,052 ​ $ 313 ​ $ — 41 - 45% ​ ​ 29,256 ​ 3.6 ​ ​ ​ 27,489 ​ ​ 1,767 ​ ​ — ​ ​ — ​ ​ — ​ ​ — 46 - 50% 46,420 ​ 5.7 ​ 15,507 ​ 15,460 ​ 15,453 ​ — ​ — ​ — 51 - 55% 77,277 ​ 9.5 ​ 27,310 ​ 29,594 ​ 2,777 ​ — ​ 16,873 ​ 723 56 - 60% ​ ​ 54,992 ​ 6.7 ​ ​ ​ 15,073 ​ ​ 25,769 ​ ​ 200 ​ ​ — ​ ​ 13,950 ​ ​ — 61 - 65% ​ ​ 532,281 ​ 65.3 ​ ​ ​ 118,559 ​ ​ 270,307 ​ ​ 52,991 ​ ​ 4,120 ​ ​ 75,790 ​ ​ 10,514 66 - 70% ​ ​ 17,582 ​ 2.2 ​ ​ ​ 514 ​ ​ 17,068 ​ ​ — ​ ​ — ​ ​ — ​ ​ — 71 - 75% ​ ​ — ​ 0.0 ​ ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — 76 - 80% ​ ​ — ​ 0.0 ​ ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Above 80% ​ ​ 12,236 ​ 1.5 ​ ​ ​ — ​ ​ 8,108 ​ ​ — ​ ​ — ​ ​ — ​ ​ 4,128 Total $ 815,134 ​ 100.0 % $ 225,808 $ 388,442 $ 71,421 $ 7,172 $ 106,926 $ 15,365 CECL allowance (3) (10,663) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying value, net $ 804,471 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents the year of origination or amendment where the loan incurred a full re-underwriting. (2) Represents LTV as of origination or latest amendment. LTVs above 65% generally represent loans in contractual default status where we have agreed to extend funds to the borrower above 65% in order to facilitate successful completion of the construction and return of capital. (3) $0.9 million of the CECL Allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our condensed consolidated balance sheet. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2020 ​ Year Originated (1) (dollars in thousands) Carrying Value % of Portfolio 2020 2019 ​ 2018 2017 2016 Prior Construction Type ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vertical Construction $ 514,136 ​ 63.5 % $ 354,012 ​ $ 57,090 ​ $ 6,853 ​ $ 88,655 ​ $ 7,526 ​ $ — Horizontal Development 153,345 ​ 19.0 ​ 129,607 ​ 15,028 ​ 283 ​ — ​ 8,427 ​ — Investment 141,595 ​ 17.5 ​ 98,146 ​ 18,657 ​ 7,259 ​ 16,444 ​ — ​ 1,089 Total $ 809,076 ​ 100.0 % $ 581,765 $ 90,775 $ 14,395 $ 105,099 $ 15,953 $ 1,089 CECL allowance (10,590) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying value, net $ 798,486 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents the year of origination or amendment where the loan incurred a full re-underwriting. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2020 ​ Year Originated (1) (dollars in thousands) Carrying Value % of Portfolio 2020 2019 ​ 2018 2017 2016 Prior Collateral Type ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Apartments $ 129,588 ​ 16.0 % $ 79,931 ​ $ 18,953 ​ $ — ​ $ 24,232 ​ $ 6,472 ​ $ — Residential Lots 124,548 ​ 15.4 ​ 105,830 ​ 10,291 ​ — ​ — ​ 8,427 ​ — Condos 92,245 ​ 11.4 ​ 52,714 ​ 3,106 ​ 4,405 ​ 32,020 ​ — ​ — Single family housing ​ ​ 90,131 ​ 11.1 ​ ​ ​ 69,438 ​ ​ 8,839 ​ ​ 1,028 ​ ​ 10,103 ​ ​ — ​ ​ 723 Land ​ ​ 72,913 ​ 9.0 ​ ​ ​ 48,844 ​ ​ — ​ ​ 7,259 ​ ​ 16,444 ​ ​ — ​ ​ 366 Townhomes ​ ​ 72,773 ​ 9.0 ​ ​ ​ 47,391 ​ ​ 1,061 ​ ​ 1,703 ​ ​ 21,564 ​ ​ 1,054 ​ ​ — Mixed Use ​ ​ 66,092 ​ 8.2 ​ ​ ​ 60,232 ​ ​ 5,860 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Hotel ​ ​ 51,115 ​ 6.3 ​ ​ ​ 42,874 ​ ​ 8,241 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Senior Housing ​ ​ 34,283 ​ 4.2 ​ ​ ​ 34,283 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Offices ​ ​ 29,540 ​ 3.7 ​ ​ ​ 8,495 ​ ​ 21,045 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Commercial Lots ​ ​ 15,683 ​ 1.9 ​ ​ ​ 15,683 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Retail ​ ​ 11,397 ​ 1.4 ​ ​ ​ 9,500 ​ ​ 1,897 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Industrial ​ ​ 11,309 ​ 1.4 ​ ​ ​ 704 ​ ​ 10,605 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Quadplex ​ ​ 5,592 ​ 0.7 ​ ​ ​ 5,592 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Commercial ​ ​ 877 ​ 0.1 ​ ​ ​ — ​ ​ 877 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Duplex ​ ​ 736 ​ 0.1 ​ ​ ​ — ​ ​ — ​ ​ — ​ ​ 736 ​ ​ — ​ ​ — Commercial other ​ ​ 254 ​ 0.1 ​ ​ ​ 254 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Total $ 809,076 ​ 100.0 % $ 581,765 $ 90,775 $ 14,395 $ 105,099 $ 15,953 $ 1,089 CECL allowance (10,590) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying value, net $ 798,486 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents the year of origination or amendment where the loan incurred a full re-underwriting. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2020 ​ Year Originated (1) (dollars in thousands) Carrying Value % of Portfolio 2020 2019 ​ 2018 2017 2016 Prior LTV (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 0 - 40% $ 22,601 ​ 2.8 % $ 18,112 ​ $ — ​ $ 3,862 ​ $ 261 ​ $ — ​ $ 366 41 - 45% ​ ​ 68,263 ​ 8.4 ​ ​ ​ 44,683 ​ ​ 20,183 ​ ​ 3,397 ​ ​ — ​ ​ — ​ ​ — 46 - 50% 23,864 ​ 2.9 ​ 15,917 ​ 7,224 ​ — ​ — ​ — ​ 723 51 - 55% 76,539 ​ 9.5 ​ 57,583 ​ 2,774 ​ — ​ 16,182 ​ — ​ — 56 - 60% ​ ​ 135,170 ​ 16.7 ​ ​ ​ 117,309 ​ ​ 3,106 ​ ​ — ​ ​ 9,639 ​ ​ 5,116 ​ ​ — 61 - 65% ​ ​ 450,253 ​ 55.7 ​ ​ ​ 301,964 ​ ​ 57,488 ​ ​ 7,136 ​ ​ 76,139 ​ ​ 7,526 ​ ​ — 66 - 70% ​ ​ 9,416 ​ 1.2 ​ ​ ​ 9,416 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — 71 - 75% ​ ​ 1,983 ​ 0.2 ​ ​ ​ 1,983 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — 76 - 80% ​ ​ 14,544 ​ 1.8 ​ ​ ​ 14,544 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Above 80% ​ ​ 6,443 ​ 0.8 ​ ​ ​ 254 ​ ​ — ​ ​ — ​ ​ 2,878 ​ ​ 3,311 ​ ​ — Total $ 809,076 ​ 100.0 % $ 581,765 $ 90,775 $ 14,395 $ 105,099 $ 15,953 $ 1,089 CECL allowance (10,590) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying value, net $ 798,486 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents the year of origination or amendment where the loan incurred a full re-underwriting. (2) Represents LTV as of origination or latest amendment. LTVs above 65% generally represent loans in contractual default status where we have agreed to extend funds to the borrower above 65% in order to ensure successful completion of the construction and return of capital.

Fair value measurements (Tables

Fair value measurements (Tables)3 Months Ended
Mar. 31, 2021
Fair value measurements
Schedule of fair value of assets and liabilities​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2021 ​ Fair Value Measurements Using ​ ​ ​ Carrying ​ ​ Estimated ​ ​ ​ ​ ​ ​ ​ ​ ​ (dollars in thousands) ​ ​ Value ​ ​ Fair Value ​ ​ Level 1 ​ ​ Level 2 ​ ​ Level 3 Financial Assets ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 204,277 ​ $ 204,277 ​ $ 204,277 ​ $ — ​ $ — Mortgage notes receivable, net ​ 804,471 ​ 804,471 ​ — ​ — ​ 804,471 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ Fair Value Measurements Using ​ ​ ​ Carrying ​ ​ Estimated ​ ​ ​ ​ ​ ​ ​ ​ ​ (dollars in thousands) ​ ​ Value ​ ​ Fair Value ​ ​ Level 1 ​ ​ Level 2 ​ ​ Level 3 Financial Assets ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 223,375 ​ $ 223,375 ​ $ 223,375 ​ $ — ​ $ — Mortgage notes receivable, net ​ 798,486 ​ 798,486 ​ — ​ — ​ 798,486
Schedule of valuation methodologies and inputs used for assets that are measured at fair value​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 3 ​ Valuation ​ Unobservable ​ Range of (dollars in thousands) ​ ​ March 31, 2021 ​ December 31, 2020 ​ technique ​ inputs ​ inputs ​ Real property (1) ​ 13,113 ​ ​ 8,473 Collateral valuations ​ Discount to appraised value based on comparable market prices ​ 0 - 10 % Collateral dependent loans, net of allowance for credit losses (2) ​ ​ 60,634 ​ ​ 30,920 ​ Collateral valuations ​ Discount to appraised value based on comparable market prices ​ 0 - 10 % Total $ 73,747 ​ $ 39,393 ​ ​ ​ ​ ​ (1) Real property is stated at lower of cost or fair value, a non-recurring measurement of fair value. (2) Loans meeting the definition of collateral dependent are measured at the fair value less the costs to sell the underlying property. The carrying value of the collateral dependent loans, net of the allowance for credit losses, approximates fair value.

Stockholders' Equity and Memb_2

Stockholders' Equity and Members' Equity (Tables)3 Months Ended
Mar. 31, 2021
Stockholders' Equity and Members' Equity
Schedule of basic and diluted earnings per share​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended (dollars in thousands, except share and per share data): ​ March 31, 2021 ​ March 31, 2020 Net income ​ $ 20,381 ​ $ 26,469 Basic weighted-average shares of common stock outstanding ​ ​ 132,550,227 ​ ​ 132,111,329 Dilutive effect of share-based compensation ​ 128,585 ​ 224,986 Diluted weighted-average shares of common stock outstanding (1) ​ ​ 132,678,812 ​ ​ 132,336,315 Basic earnings per share ​ $ 0.15 ​ $ 0.20 Diluted earnings per share ​ $ 0.15 ​ $ 0.20 (1) We exclude anti-dilutive shares from calculation of weighted-average shares for diluted earnings per share. For the three months ended March 31, 2021, there were 15.6 million shares related to the Public Warrants and Private Warrants and 371,318 shares of unvested restricted stock unit awards, which are not included in the above calculation of diluted earnings per share because in doing so they would be anti-dilutive. For the three months ended March 31, 2020, only the 15.6 million shares related to the Public Warrants and Private Warrants were anti-dilutive and not included in the above calculation of diluted earnings per share .

Equity Incentive Plan (Tables)

Equity Incentive Plan (Tables)3 Months Ended
Mar. 31, 2021
Equity Incentive Plan
Summary of the activity related to restricted stock​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Average ​ ​ ​ ​ Grant Date Fair ​ ​ Shares ​ Market Value Unvested RSUs outstanding as of December 31, 2020 434,143 ​ ​ ​ Granted 424,866 ​ $ 8.68 Vested (37,227) ​ $ 11.08 Unvested RSUs outstanding as of March 31, 2021 821,782 ​ ​ ​

Commitments and Contingencies (

Commitments and Contingencies (Tables)3 Months Ended
Mar. 31, 2021
Commitments and Contingencies.
Schedule of contractual obligations and commercial commitments​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 1 ​ ​ ​ ​ More than (dollars in thousands) ​ Total ​ year ​ 1-3 years ​ 3-5 years ​ 5 years Construction holdbacks (1) ​ 379,069 ​ 237,632 ​ 141,437 ​ — ​ — Operating lease obligations ​ $ 11,527 ​ $ 812 ​ $ 1,916 ​ $ 2,033 ​ $ 6,766 Total ​ $ 390,596 ​ $ 238,444 ​ $ 143,353 ​ $ 2,033 ​ $ 6,766 (1) Includes construction holdbacks of $42.1 million on participating interests sold to the Private REIT as of March 31, 2021. The funding timing and amounts of construction holdbacks are uncertain as these commitments relate to loans for construction costs and depend on the progress and performance of the underlying projects.

Summary of significant accoun_3

Summary of significant accounting policies - (Details)3 Months Ended
Mar. 31, 2021USD ($)segmentpropertyDec. 31, 2020USD ($)propertyMar. 31, 2020USD ($)Jan. 01, 2020USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Reportable Segments | segment1
Threshold Sweep Account Balance $ 750,000
Cash and cash equivalents insured maximum per account250,000 $ 250,000
Restricted cash0 0
Accumulated deficit(47,155,000) $ (39,698,000)
Provision for credit losses2,708,000 $ 4,432,000
Net income (Loss) $ 20,381,000 26,469,000
Number of properties | property4 3
Lessee, Operating Lease, Option to Extendtrue
Additional lease term5 years
Impairment of goodwill $ 0
Adjustment to goodwill5,000,000
Amortization reversed900,000
Intangible assets, net $ 500,000 $ 600,000
Provision for income taxes $ 0 0
Previously Reported [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net income (Loss)27,300,000
Cumulative Effect, Period of Adoption, Adjustment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accumulated deficit $ 2,000,000
Provision for credit losses800,000
Net income (Loss)(800,000)
Employees
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vesting period3 years
Directors
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vesting period1 year
Customer relationships
Accounts, Notes, Loans and Financing Receivable [Line Items]
Adjustment to intangible assets $ 5,000,000
Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Estimated Useful Lives of fixed assets7 years
Contractual Rate70.00%
Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Estimated Useful Lives of fixed assets3 years
Contractual Rate50.00%

Mortgage notes receivable - Add

Mortgage notes receivable - Additional Information (Details) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Dec. 31, 2020
Loans and Leases Receivable Disclosure [Line Items]
Percentage of maximum loan to value ratio65.00%
Percentage of maximum of amount of a single loan10.00%
Percentage of maximum amount of loans to single borrower15.00%
Monthly interest rate payment term10 days
Principal outstanding on non accrual status $ 177.7 $ 126.8
Maximum
Loans and Leases Receivable Disclosure [Line Items]
Term of mortgage notes receivable18 months
Interest rate (as a percent)0.13%
Minimum
Loans and Leases Receivable Disclosure [Line Items]
Term of mortgage notes receivable5 months
Interest rate (as a percent)0.10%

Mortgage notes receivable - Inf

Mortgage notes receivable - Information pertaining to mortgage notes receivable (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020Mar. 31, 2020Dec. 31, 2019
Loans and Leases Receivable Disclosure [Line Items]
Total principal outstanding for our mortgage notes receivable $ 815,134 $ 809,076
Allowance for loan losses10,663 10,590 $ 9,966 $ 4,096
Mortgage notes receivable, net804,471 798,486
Mortgage notes receivables
Loans and Leases Receivable Disclosure [Line Items]
Total loan commitments1,280,964 1,245,963
Construction holdbacks379,069 356,026
Interest reserves30,369 29,817
Private REIT participation42,740 37,729
Total principal outstanding for our mortgage notes receivable828,786 822,391
Allowance for loan losses10,663 10,590
Deferred origination and amendment fees13,652 13,315
Mortgage notes receivable, net804,471 798,486
Broadmark Private REIT, LLC
Loans and Leases Receivable Disclosure [Line Items]
Construction holdbacks42,100 40,400
Interest reserves3,600 4,300
Unfunded Loan Commitment [Member]
Loans and Leases Receivable Disclosure [Line Items]
Allowance for loan losses947
Unfunded Loan Commitment [Member] | Accounts payable and accrued liabilities
Loans and Leases Receivable Disclosure [Line Items]
Allowance for loan losses900 900
Funded And Unfunded Loan Commitment [Member]
Loans and Leases Receivable Disclosure [Line Items]
Allowance for loan losses $ 11,610 $ 10,590

Mortgage notes receivable - All

Mortgage notes receivable - Allowance for loan loss (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for Credit Loss, Beginning Balance $ 10,590 $ 4,096
Provision for loan losses (benefits)1,761 4,432
Charge offs(1,688)(537)
Allowance for Credit Loss, Ending Balance10,663 9,966
Cumulative Effect, Period of Adoption, Adjustment [Member]
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for Credit Loss, Ending Balance $ 1,975
Unfunded Loan Commitment [Member]
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Provision for loan losses (benefits)947
Allowance for Credit Loss, Ending Balance947
Funded And Unfunded Loan Commitment [Member]
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for Credit Loss, Beginning Balance10,590
Provision for loan losses (benefits)2,708
Charge offs(1,688)
Allowance for Credit Loss, Ending Balance $ 11,610

Mortgage notes receivable - Com

Mortgage notes receivable - Composition of loan portfolio (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020Mar. 31, 2020Dec. 31, 2019
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 815,134 $ 809,076
CECL Allowance(10,663)(10,590) $ (9,966) $ (4,096)
Carrying value, net $ 804,471 $ 798,486
Percentage of portfolio100.00%100.00%
2021 $ 225,808 $ 581,765
2020388,442 90,775
201971,421 14,395
20187,172 105,099
2017106,926 15,953
Prior $ 15,365 $ 1,089
LTV general percent indicating default status65 65
0 - 40%
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 45,090 $ 22,601
Percentage of portfolio0.055%2.80%
2021 $ 21,356 $ 18,112
202020,369
20193,862
20183,052 261
2017313
Prior366
41 - 45%
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 29,256 $ 68,263
Percentage of portfolio0.036%8.40%
2021 $ 27,489 $ 44,683
20201,767 20,183
20193,397
46 - 50%
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 46,420 $ 23,864
Percentage of portfolio0.057%2.90%
2021 $ 15,507 $ 15,917
202015,460 7,224
201915,453
Prior723
51 - 55%
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 77,277 $ 76,539
Percentage of portfolio0.095%9.50%
2021 $ 27,310 $ 57,583
202029,594 2,774
20192,777
201816,182
201716,873
Prior723
56 - 60%
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 54,992 $ 135,170
Percentage of portfolio0.067%16.70%
2021 $ 15,073 $ 117,309
202025,769 3,106
2019200
20189,639
201713,950 5,116
61 - 65%
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 532,281 $ 450,253
Percentage of portfolio0.653%55.70%
2021 $ 118,559 $ 301,964
2020270,307 57,488
201952,991 7,136
20184,120 76,139
201775,790 7,526
Prior10,514
66 - 70%
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 17,582 $ 9,416
Percentage of portfolio0.022%1.20%
2021 $ 514 $ 9,416
2020 $ 17,068
71 - 75%
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 1,983
Percentage of portfolio0.00%0.20%
2021 $ 1,983
76 - 80%
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 14,544
Percentage of portfolio0.00%1.80%
2021 $ 14,544
Above 80%
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 12,236 $ 6,443
Percentage of portfolio0.015%0.80%
2021 $ 254
2020 $ 8,108
20182,878
20173,311
Prior4,128
Apartments
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 149,936 $ 129,588
Percentage of portfolio0.184%16.00%
2021 $ 44,920 $ 79,931
202054,135 18,953
201919,952
201824,232
201725,897 6,472
Prior5,032
Residential Lots
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 125,808 $ 124,548
Percentage of portfolio0.154%15.40%
2021 $ 57,579 $ 105,830
202049,003 10,291
20199,874
20178,427
Prior9,352
Condos
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 85,240 $ 92,245
Percentage of portfolio0.105%11.40%
2021 $ 9,269 $ 52,714
202039,408 3,106
2019200 4,405
20181,326 32,020
201735,037
Single family housing
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 73,990 $ 90,131
Percentage of portfolio0.091%11.10%
2021 $ 16,047 $ 69,438
202045,079 8,839
20195,579 1,028
20181,078 10,103
20175,484
Prior723 723
Land
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 73,237 $ 72,913
Percentage of portfolio0.09%9.00%
2021 $ 40,678 $ 48,844
202012,321
20197,259
20183,052 16,444
201717,186
Prior366
Townhomes
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 80,611 $ 72,773
Percentage of portfolio0.099%9.00%
2021 $ 12,348 $ 47,391
202043,735 1,061
20191,703
20181,716 21,564
201722,554 1,054
Prior258
Mixed Use
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 40,429 $ 66,092
Percentage of portfolio0.05%8.20%
2021 $ 9,884 $ 60,232
202028,622 5,860
20191,923
Hotel
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 53,253 $ 51,115
Percentage of portfolio0.065%6.30%
2021 $ 1,192 $ 42,874
202042,990 8,241
20199,071
Senior Housing
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 38,149 $ 34,283
Percentage of portfolio0.047%4.20%
2021 $ 34,283
2020 $ 38,149
Offices
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 31,525 $ 29,540
Percentage of portfolio0.039%3.70%
2021 $ 8,495
2020 $ 9,480 21,045
201922,045
Commercial Lots
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 15,259 $ 15,683
Percentage of portfolio0.019%1.90%
2021 $ 15,683
2020 $ 15,259
Retail
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 11,838 $ 11,397
Percentage of portfolio0.015%1.40%
2021 $ 5,594 $ 9,500
20204,346 1,897
20191,898
Industrial
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 15,403 $ 11,309
Percentage of portfolio0.019%1.40%
2021 $ 15,403 $ 704
202010,605
Quadplex
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 5,915 $ 5,592
Percentage of portfolio0.007%0.70%
2021 $ 5,592
2020 $ 5,915
Commercial
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 6,524 $ 877
Percentage of portfolio0.008%0.10%
2021 $ 5,645
2020 $ 877
2019879
Duplex
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 3,821 $ 736
Percentage of portfolio0.005%0.10%
2021 $ 3,053
2018 $ 736
2017768
Commercial other
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 4,196 $ 254
Percentage of portfolio0.003%0.10%
2021 $ 4,196 $ 254
Vertical Construction
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 505,347 $ 514,136
Percentage of portfolio0.62%63.50%
2021 $ 118,678 $ 354,012
2020252,275 57,090
201937,051 6,853
20183,080 88,655
201788,973 7,526
Prior5,290
Horizontal Development
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 143,405 $ 153,345
Percentage of portfolio0.176%19.00%
2021 $ 60,361 $ 129,607
202063,180 15,028
201915,453 283
2018283
20178,427
Prior4,128
Investment
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value $ 166,382 $ 141,595
Percentage of portfolio0.204%17.50%
2021 $ 46,769 $ 98,146
202072,987 18,657
201918,917 7,259
20183,809 16,444
201717,953
Prior5,947 1,089
Unfunded Loan Commitment [Member]
Loans and Leases Receivable Disclosure [Line Items]
CECL Allowance(947)
Unfunded Loan Commitment [Member] | Accounts payable and accrued liabilities
Loans and Leases Receivable Disclosure [Line Items]
CECL Allowance $ (900) $ (900)

Fair value measurements - Fair

Fair value measurements - Fair value of assets and liabilities (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Carrying Value
Financial Assets
Cash and cash equivalents $ 204,277 $ 223,375
Mortgage notes receivable, net804,471 798,486
Estimated Fair Value
Financial Assets
Cash and cash equivalents204,277 223,375
Mortgage notes receivable, net804,471 798,486
Level 1 | Estimated Fair Value
Financial Assets
Cash and cash equivalents204,277 223,375
Level 3 | Estimated Fair Value
Financial Assets
Mortgage notes receivable, net $ 804,471 $ 798,486

Fair value measurements - Valua

Fair value measurements - Valuation Methodologies and Inputs Used for Assets Measured at Fair Value (Details) $ in ThousandsMar. 31, 2021USD ($)Dec. 31, 2020USD ($)
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value $ 73,747 $ 39,393
Non recurring | Real Property | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs0
Non recurring | Real Property | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs10
Non recurring | Collateral Dependent Loans [Member] | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs0
Non recurring | Collateral Dependent Loans [Member] | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs10
Non recurring | Level 3 | Real Property
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value $ 13,113 8,473
Non recurring | Level 3 | Collateral Dependent Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value $ 60,634 $ 30,920

Stockholders' Equity and Memb_3

Stockholders' Equity and Members' Equity - Stock (Details)3 Months Ended12 Months Ended
Mar. 31, 2021Vote$ / sharessharesDec. 31, 2020Vote$ / sharesshares
Stockholders' Equity and Members' Equity
Common stock shares authorized (in shares)500,000,000 500,000,000
Common stock par value (in dollars per share) | $ / shares $ 0.001 $ 0.001
Preferred stock shares authorized (in shares)100,000,000 100,000,000
Preferred stock par value (in dollars per share) | $ / shares $ 0.001 $ 0.001
Common stock number of voting rights | Vote1 1
Common stock shares issued (in shares)132,566,410 132,532,383
Common stock shares outstanding (in shares)132,566,410 132,532,383
Preferred stock shares issued (in shares)0 0
Preferred stock shares outstanding (in shares)0 0

Stockholders' Equity and Memb_4

Stockholders' Equity and Members' Equity - Warrant (Details) - $ / sharesMar. 31, 2021Dec. 31, 2020
Class of Warrant or Right [Line Items]
Exercise price per share (in dollars per share) $ 11.50 $ 11.50
Warrants issued15,600,000 15,600,000
Public Warrants
Class of Warrant or Right [Line Items]
Warrants outstanding (in shares)41,700,000 41,700,000
Exercise price per share (in dollars per share) $ 2.875 $ 2.875
Number of share per warrant0.250.25
Private Placement Warrants
Class of Warrant or Right [Line Items]
Warrants outstanding (in shares)5,200,000 5,200,000
Exercise price per share (in dollars per share) $ 11.50 $ 11.50
Number of share per warrant1 1
Farallon Entities
Class of Warrant or Right [Line Items]
Warrants outstanding (in shares)7,174,163

Stockholders' Equity and Memb_5

Stockholders' Equity and Members' Equity - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income $ 20,381 $ 26,469
Basic weighted-average shares of common stock outstanding132,550,227 132,111,329
Dilutive effect of share-based compensation128,585 224,986
Diluted weighted-average shares of common stock outstanding132,678,812 132,336,315
Basic earnings per share $ 0.15 $ 0.20
Diluted earnings per share $ 0.15 $ 0.20
Public and Private Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities15,600,000
Optional Subscription Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities15,600,000
Restricted Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities371,318

Income Taxes - (Details)

Income Taxes - (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Income Taxes
Uncertain tax positions $ 0 $ 0
Amount accrued for penalties or interest $ 0 $ 0

Equity Incentive Plan - (Detail

Equity Incentive Plan - (Details) - 2019 Stock Incentive Plan - shares3 Months Ended
Mar. 31, 2021Nov. 14, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized5,000,000
Shares available for grant3,624,268
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period3 years
Restricted stock units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payout percentage0.00%
Vesting period1 year
Restricted stock units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payout percentage150.00%
Vesting period3 years

Equity Incentive Plan - RSU's A

Equity Incentive Plan - RSU's Activity - (Details) - Restricted stock units3 Months Ended
Mar. 31, 2021$ / sharesshares
Shares
Outstanding at the beginning434,143
Granted424,866
Vested(37,227)
Outstanding at the end821,782
Weighted Average Grant Date Fair Market Value
Granted | $ / shares $ 8.68
Vested | $ / shares $ 11.08

Equity Incentive Plan - Compens

Equity Incentive Plan - Compensation (Details) - Restricted stock units - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expense $ 0.7 $ 0.9
Unrecognized compensation cost related to unvested stock-based compensation arrangements $ 7.1
Weighted-average recognition period2 years 3 months 18 days

Commitments and Contingencies -

Commitments and Contingencies - Contractual Obligations (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Other Commitments [Line Items]
Less than 1 year $ 238,444
1-3 years143,353
3-5 years2,033
More than 5 years6,766
Total390,596
Construction holdbacks
Other Commitments [Line Items]
Less than 1 year237,632
1-3 years141,437
Total379,069
Operating lease obligations
Other Commitments [Line Items]
Less than 1 year812
1-3 years1,916
3-5 years2,033
More than 5 years6,766
Total11,527
Broadmark Private REIT, LLC
Other Commitments [Line Items]
Construction holdbacks $ 42,100 $ 40,400

Commitments and Contingencies_2

Commitments and Contingencies - Lease Commitments (Details) $ in Thousands3 Months Ended
Mar. 31, 2021USD ($)
Commitments and Contingencies.
Lease incentives $ 11,700
Right-of-use assets obtained in exchange6,360
Tenant improvements $ 1,959
Discount rate for the operation lease6.00%
Imputed interest amount $ 3,300

Commitments and Contingencies_3

Commitments and Contingencies - Credit Facility (Details) $ in MillionsFeb. 19, 2021USD ($)
Revolving Credit Facility [Member]
Concentration Risk [Line Items]
Amount of revolving credit facility $ 135

Commitments and contingencies_4

Commitments and contingencies (Details) - Mortgage notes receivables - Geographic concentration risk3 Months Ended12 Months Ended
Mar. 31, 2021countystateDec. 31, 2020
Concentration Risk [Line Items]
Number of states in mortgage loans were originated | state14
Number of counties in which loan portfolio concentrated | county10
Concentration risk percentage44.50%43.20%

Related party transactions (Det

Related party transactions (Details) - USD ($) $ / shares in Units, $ in Millions3 Months Ended
Mar. 31, 2021Dec. 31, 2020
Related Party Transaction [Line Items]
Warrants issued15,600,000 15,600,000
Farallon Entities
Related Party Transaction [Line Items]
Shares issued7,174,163
Aggregate purchase price $ 75
Warrants outstanding (in shares)7,174,163
Class of Warrant or Right, Amendment Fee Price of Warrants or Rights $ 1.60
Farallon Entities | Optional subscription
Related Party Transaction [Line Items]
Common stock exercisable term365 days
Reference Price $ 10.45352229
Farallon Entities | Accounts payable and accrued liabilities | Optional subscription
Related Party Transaction [Line Items]
Warrants outstanding $ 0
Farallon Entities | Farallon Entities
Related Party Transaction [Line Items]
Ownership percentage5.00%
Maximum | Farallon Entities | Optional subscription
Related Party Transaction [Line Items]
Additional shares of common stock25,000,000

Subsequent events (Details)

Subsequent events (Details)Apr. 16, 2021$ / shares
Subsequent Event
Subsequent Event [Line Items]
Common stock dividend declared $ 0.07