Broadmark Realty Capital (BRMK) 10-Q 9 Aug 21 2021 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2021	Aug. 02, 2021
Document Information [Line Items]
Entity Registrant Name	Broadmark Realty Capital Inc.
Entity Central Index Key	0001784797
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2021
Entity File Number	001-39134
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	84-2620891
Entity Address, Address Line One	1420 Fifth Avenue, Suite 2000
Entity Address, City or Town	Seattle
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98101
City Area Code	206
Local Phone Number	971-0800
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		132,641,935
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false
Common Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock
Trading Symbol	BMRK
Security Exchange Name	NYSE
Warrant
Document Information [Line Items]
Title of 12(b) Security	Warrants
Trading Symbol	BMRK WS
Security Exchange Name	NYSEAMER

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Assets
Cash and cash equivalents	$ 164,023	$ 223,375
Mortgage notes receivable, net	814,454	798,486
Interest and fees receivable, net	12,229	14,357
Investment in real property, net	41,725	8,473
Right-of-use assets	6,209	0
Goodwill	136,965	136,965
Other assets	9,391	5,663
Total assets	1,184,996	1,187,319
Liabilities and Equity
Accounts payable and accrued liabilities	8,542	4,946
Lease Liabilities	8,271	0
Dividends payable	9,284	7,952
Total liabilities	26,097	12,898
Commitments and Contingencies (Note 10)
Preferred stock, $0.001 par value, 100,000,000 shares authorized, no shares issued and outstanding at June 30, 2021 and December 31, 2020
Common stock, $0.001 par value, 500,000,000 shares authorized, 132,634,672 and 132,532,383 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively	132	132
Additional Paid in Capital	1,215,513	1,213,987
Accumulated deficit	(56,746)	(39,698)
Total equity	1,158,899	1,174,421
Total liabilities and equity	$ 1,184,996	$ 1,187,319

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 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)	132,634,672	132,532,383
Common stock shares outstanding (in shares)	132,634,672	132,532,383

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenues
Revenues	$ 29,183	$ 29,070	$ 58,651	$ 60,838
Other Income (Expense):
Change in fair value of warrant liabilities	(3,734)	(1,458)	(3,734)	3,146
Impairment:
Provision for credit losses, net	58	4,224	2,766	8,656
Operating expenses:
Compensation and employee benefits	3,669	3,044	7,229	6,237
General and administrative	3,470	4,500	6,289	6,778
Total Expenses	7,197	11,768	16,284	21,671
Income before income taxes	18,252	15,844	38,633	42,313
Income tax provision	0	0	0	0
Net income	$ 18,252	$ 15,844	$ 38,633	$ 42,313
Earnings per common share:
Basic	$ 0.14	$ 0.12	$ 0.29	$ 0.32
Diluted	$ 0.14	$ 0.12	$ 0.29	$ 0.32
Weighted-average shares of common stock outstanding, basic and diluted
Basic	132,585,116	132,165,005	132,567,768	132,120,290
Diluted	132,646,389	132,165,005	132,636,425	132,120,290
Interest Income
Revenues
Revenues	$ 21,618	$ 22,180	$ 43,635	$ 46,733
Fee Income
Revenues
Revenues	$ 7,565	$ 6,890	$ 15,016	$ 14,105

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings (Accumulated Deficit) [Member]	Retained Earnings (Accumulated Deficit) [Member]Cumulative Effect, Period of Adoption, Adjustment [Member]
Balance at Dec. 31, 2019	$ 1,184,472	$ (1,975)	$ 132	$ 1,209,120	$ (24,780)	$ (1,975)
Balance, Shares at Dec. 31, 2019			132,015,635
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	26,469				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 units	914			914
Balance at Mar. 31, 2020	1,178,180		$ 132	1,210,034	(31,986)
Balance, Shares at Mar. 31, 2020			132,111,329
Balance at Dec. 31, 2019	1,184,472	(1,975)	$ 132	1,209,120	(24,780)	$ (1,975)
Balance, Shares at Dec. 31, 2019			132,015,635
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	42,313	4,700
Balance at Jun. 30, 2020	1,171,198		$ 132	1,211,001	(39,935)
Balance, Shares at Jun. 30, 2020			132,231,184
Balance at Mar. 31, 2020	1,178,180		$ 132	1,210,034	(31,986)
Balance, Shares at Mar. 31, 2020			132,111,329
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	15,844	$ 3,900			15,844
Dividends	(23,793)				(23,793)
Issuance of shares for vested restricted stock units (in shares)			119,855
Stock-based compensation expense for restricted stock units	967			967
Balance at Jun. 30, 2020	1,171,198		$ 132	1,211,001	(39,935)
Balance, Shares at Jun. 30, 2020			132,231,184
Balance at Dec. 31, 2020	1,174,421		$ 132	1,213,987	(39,698)
Balance, Shares at Dec. 31, 2020			132,532,383
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	20,381				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 units	737			737
Balance at Mar. 31, 2021	1,167,701		$ 132	1,214,724	(47,155)
Balance, Shares at Mar. 31, 2021			132,566,410
Balance at Dec. 31, 2020	1,174,421		$ 132	1,213,987	(39,698)
Balance, Shares at Dec. 31, 2020			132,532,383
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	38,633
Balance at Jun. 30, 2021	1,158,899		$ 132	1,215,513	(56,746)
Balance, Shares at Jun. 30, 2021			132,634,672
Balance at Mar. 31, 2021	1,167,701		$ 132	1,214,724	(47,155)
Balance, Shares at Mar. 31, 2021			132,566,410
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	18,252				18,252
Dividends	(27,843)				(27,843)
Issuance of shares for vested restricted stock units (in shares)			77,766
Restricted stock units withheld for tax liability	(135)			(135)
Restricted stock units withheld for tax liability (in shares)			(9,504)
Stock-based compensation expense for restricted stock units	924			924
Balance at Jun. 30, 2021	$ 1,158,899		$ 132	$ 1,215,513	$ (56,746)
Balance, Shares at Jun. 30, 2021			132,634,672

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities
Net income	$ 38,633	$ 42,313
Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of deferred origination and amendment fees	(13,823)	(10,909)
Depreciation and amortization	431	(785)
Amortization of right of use assets	189	221
Amortization of financing costs	567
Stock-based compensation expense for restricted stock units	1,661	1,881
Provision for credit losses, net	2,766	8,656
Change in fair value of warrant liabilities	3,734	(3,146)
Changes in operating assets and liabilities:
Interest and fees receivable, net	2,128	(4,878)
Other assets	933	(1,606)
Accounts payable and accrued liabilities	(1,826)	(554)
Lease liabilities	(86)	(221)
Net cash provided by operating activities	35,307	30,972
Cash flows from investing activities:
Purchases of property and equipment	(249)
Proceeds from sale of real property	878	2,213
Improvements to investments in real property	(1,711)	(66)
Change in mortgage notes receivable, net	(33,968)	10,037
Net cash provided by (used in) investing activities	(35,050)	12,184
Cash flows from financing activities:
Dividends paid	(54,349)	(63,401)
Payment of costs to obtain credit facility	(5,125)
Payment of taxes on vested restricted stock units	(135)
Net cash provided by (used in) financing activities	(59,609)	(63,401)
Net increase (decrease) in cash and cash equivalents	(59,352)	(20,245)
Cash and cash equivalents, beginning of period	223,375	238,214
Cash and cash equivalents, end of period	164,023	217,969
Supplemental disclosure of non-cash investing and financing activities
Dividends payable	9,284	7,934
Measurement period adjustment to goodwill and intangible assets		$ 5,000
Mortgage notes receivable converted to real property owned	32,419
Operating lease right-of-use assets	6,360
Lease liabilities arising from obtaining right-of-use assets	8,319
Property and equipment purchased through tenant improvement allowance	$ 1,959

Organization and Business

Organization and Business	6 Months Ended
	Jun. 30, 2021
Organization and business
Organization and Business	Note 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 generally operates in 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 Policies	6 Months Ended
	Jun. 30, 2021
Summary of significant accounting policies
Summary of Significant Accounting Policies	Note 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 June 30, 2021, our results of operations and stockholders’ equity for the six month periods ended June 30, 2021 and 2020, and our cash flows for the six month periods ended June 30, 2021 and 2020. The results of the six month period ended June 30, 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, therefore, do not consolidate. Furthermore, the Private REIT participation in loans originated by us meets the characteristics of a participating interest and the criterion for sale accounting in accordance with GAAP and therefore, 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. Correction of Immaterial Error In the course of preparing our second quarter 2021 unaudited condensed consolidated financial statements, we revisited our previous accounting classification for warrants and identified an error related to the presentation of private placement warrants resulting in an understatement of liabilities and change in fair value from November 14, 2019 to March 31, 2021. The private placement warrants generally have the same terms as the public warrants except that so long as the private warrants are held by the original holder or its permitted transferees, (i) the original holder or its permitted transferees may exercise the warrant on a cashless basis and (ii) the Company does not have the right to redeem the private placement warrants. In the case of a change of control and less than 70 percent of the consideration received is stock listed on an exchange, the public and private placement warrants would be subject to an exercise price adjustment calculated on the basis of a capped American call option and uncapped American call option, respectively. If, however, the private placement warrants are transferred to a third party, the basis for the exercise price adjustment changes and is calculated on the basis of a capped American call option, which results in the valuation change being based, in part, on the holder of the private placement warrants. As a result, the private placement warrants do not meet the criterion to be indexed to valuation inputs based on the Company’s own stock and must be classified as a liability measured at fair value. Based on consideration of both the quantitative and qualitative factors within the provisions of SEC Staff Accounting Bulletin No. 99, Materiality, and Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, we determined that the error was not material to our previously issued annual and interim consolidated financial statements. Furthermore, we determined that correcting the error in the current period would not materially misstate our unaudited condensed consolidated financial statements and therefore, no restatement of our prior period unaudited condensed consolidated financial statements is required. 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 fair value of financial instruments, such as the expected credit losses on our loans, investments in real property, and private placement warrant liabilities. 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 June 30, 2021 and December 31, 2020 . The balances in these accounts may exceed the insured limits. There were no restrictions on cash as of June 30, 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. If the sales do not meet these criteria, the sale of the participation is treated as a secured borrowing. As of June 30, 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 and six months ended June 30, 2020 includes an additional provision for credit losses of $ 3.9 and $ 4.7 million associated with the adoption of the CECL Standard, as a result, our previously reported net income of $ 19.8 and $ 47.0 million for this period is lower by $ 3.9 and $ 4.7 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. The CECL Allowance related to the principal outstanding is presented within mortgage notes receivable, net and for unfunded commitments is within accounts payable and accrued liabilities on our condensed consolidated balance sheets. 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 charged 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 June 30, 2021 and December 31, 2020, we owned five and three properties or projects totaling $ 41.7 and $ 8.5 million, 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. Our annual assessment occurs in the fourth quarter. During the first and second 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 to seven years . For leasehold improvements, we depreciate over the shorter of expected useful life or lease term. 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 amortize 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 June 30, 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 unless there is a minimum interest provision in the mortgage note. Certain 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 Receivable	6 Months Ended
	Jun. 30, 2021
Mortgage notes receivable
Mortgage Notes Receivable	Note 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 to 18 months in duration based on the size of the project and expected timeline for completion of construction, which we often elect to extend for several months based on our evaluation of the project. All loans require monthly interest only payments and interest rates generally range from a fixed annual rate of 10 % to 13 %. Most loans are structured with an interest reserve holdback that covers the interest payments for most of the initial term of the loan. Once the interest reserve is depleted, borrowers are expected to pay their monthly interest payment within 10 days of month end. 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 June 30, 2021 and December 31, 2020: (dollars in thousands) June 30, 2021 December 31, 2020 Total loan commitments $ 1,328,556 $ 1,245,963 Less: Construction holdbacks (1) 412,751 356,026 Interest reserves (1) 35,600 29,817 Private REIT participation (2) 41,427 37,729 Total principal outstanding for our mortgage notes receivable 838,778 822,391 Less: Allowance for credit losses (3) 10,943 10,590 Deferred origination and amendment fees 13,381 13,315 Mortgage notes receivable, net $ 814,454 $ 798,486 (1) Includes construction holdbacks of $ 34.7 and $ 40.4 million and interest reserves of $ 2.6 and $ 4.3 million on participating interests sold to the Private REIT as of June 30, 2021 and December 31, 2020, respectively. (2) The Private REIT’s participations in loans originated by us meet the characteristics of participating interests and the criterion for sale accounting and therefore, are derecognized from our condensed consolidated financial statements. (3) As of June 30, 2021, $ 0.7 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 June 30, 2021 and December 31, 2020, the principal outstanding on loans in contractual default status placed on non-accrual status was $ 155.3 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 six months ended June 30, 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 Provision for credit losses (benefit), net 280 ( 222 ) 58 CECL allowance as of June 30, 2021 $ 10,943 $ 725 $ 11,668 (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 Charge-offs (1) ( 696 ) Provision for credit losses, net 4,224 CECL allowance as of June 30, 2020 $ 13,494 (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 June 30, 2021 Year Originated (1) (dollars in thousands) Carrying % of 2021 2020 2019 2018 2017 Prior Construction Type Vertical Construction $ 519,791 63.0 % $ 196,664 $ 194,366 $ 31,142 $ 1,731 $ 90,598 $ 5,290 Investment 159,089 19.2 68,500 44,474 18,456 4,027 18,193 5,439 Horizontal Development 146,517 17.8 102,106 39,548 — 181 — 4,682 Total $ 825,397 100.0 % $ 367,270 $ 278,388 $ 49,598 $ 5,939 $ 108,791 $ 15,411 CECL allowance (2) ( 10,943 ) Carrying value, net $ 814,454 (1) Represents the year of origination or amendment where the loan incurred a full re-underwriting. (2) $ 0.7 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 June 30, 2021 Year Originated (1) (dollars in thousands) Carrying % of 2021 2020 2019 2018 2017 Prior Collateral Type Apartments $ 178,457 21.6 % $ 55,399 $ 68,339 $ 23,020 $ — $ 26,667 $ 5,032 Residential Lots 88,976 10.8 51,790 27,065 — — — 10,121 Single family housing 77,416 9.5 53,171 19,071 — 181 4,993 — Townhomes 75,268 9.1 23,307 26,667 — 1,384 23,652 258 Unentitled Land 70,960 8.6 50,492 — — 3,200 17,268 — Condos 64,359 7.8 9,628 18,271 — 1,174 35,286 — Senior Housing 53,056 6.4 28,423 24,633 — — — — Hotel 47,188 5.7 6,325 40,863 — — — — Mixed Use 39,976 4.8 11,795 26,258 1,923 — — — Offices 33,550 4.1 4,560 6,292 22,698 — — — Entitled Land 29,070 3.5 27,719 1,351 — — — — Industrial 17,377 2.1 17,377 — — — — — Commercial Lots 15,453 1.9 — 15,453 — — — — Commercial 12,649 1.5 12,649 — — — — — Retail 6,668 0.8 3,508 1,203 1,957 — — — Quadplex 6,013 0.7 3,091 2,922 — — — — Duplex 4,634 0.6 3,709 — — — 925 — Commercial other 4,327 0.5 4,327 — — — — — Total $ 825,397 100.0 % $ 367,270 $ 278,388 $ 49,598 $ 5,939 $ 108,791 $ 15,411 CECL allowance (2) ( 10,943 ) Carrying value, net $ 814,454 (1) Represents the year of origination or amendment where the loan incurred a full re-underwriting. (2) $ 0.7 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 June 30, 2021 Year Originated (1) (dollars in thousands) Carrying % of 2021 2020 2019 2018 2017 Prior LTV (2) 0 - 40% $ 34,973 4.2 % $ 24,053 $ 7,375 $ — $ 3,200 $ 345 $ — 41 - 45% 40,800 5.0 35,046 5,754 — — — — 46 - 50% 56,451 6.8 30,013 26,438 — — — — 51 - 55% 84,695 10.3 32,781 33,035 1,957 — 16,922 — 56 - 60% 81,261 9.8 15,854 44,656 — — 15,312 5,439 61 - 65% 501,182 60.7 228,970 141,255 47,641 2,739 75,287 5,290 66 - 70% 11,300 1.4 553 10,747 — — — — 71 - 75% — 0.0 — — — — — — 76 - 80% — 0.0 — — — — — — Above 80% 14,735 1.8 — 9,128 — — 925 4,682 Total $ 825,397 100.0 % $ 367,270 $ 278,388 $ 49,598 $ 5,939 $ 108,791 $ 15,411 CECL allowance (3) ( 10,943 ) Carrying value, net $ 814,454 (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) $ 0.7 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 % of 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 % of 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 Townhomes 72,773 9.0 47,391 1,061 1,703 21,564 1,054 — Unentitled Land 71,796 8.9 47,727 — 7,259 16,444 — 366 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 — — — — — Entitled Land 1,116 0.1 1,116 — — — — — 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 % of 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 Measurements	6 Months Ended
	Jun. 30, 2021
Fair value measurements
Fair Value Measurements	Note 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: June 30, 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 $ 164,023 $ 164,023 $ 164,023 $ — $ — Mortgage notes receivable, net 814,454 814,454 — — 814,454 Financial Liabilities Accounts payable and accrued liabilities (1) 8,542 8,542 — 4,808 3,734 (1) As of June 30, 2021, includes the level 3 valuation of the private placement warrant liability derivative measured at fair value on a recurring basis. 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 June 30, 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 June 30, 2021 and December 31, 2020: Level 3 Valuation Unobservable Range of (dollars in thousands) June 30, 2021 December 31, 2020 technique inputs inputs Private Placement Warrants (1) $ 3,734 $ - Valuation model Equity volatility of underlying stock price 0 - 25 % Real property (2) 41,725 8,473 Collateral valuations Discount to appraised value based on comparable market prices 0 - 10 % Collateral dependent loans, net of allowance for credit losses (3) 37,242 30,920 Collateral valuations Discount to appraised value based on comparable market prices 0 - 10 % Total $ 82,701 $ 39,393 (1) Private placement warrant liability derivative measured at fair value on a recurring basis. (2) Real property is stated at lower of cost or fair value, a non-recurring measurement of fair value. (3) 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 Recurring Basis The Private Placement Warrant Liability is valued using a lattice model that primarily incorporates observable inputs such as our common stock price, exercise price, term of the warrant, dividend yield and the risk-free rate, however, it also incorporates an assumption for equity volatility based on the volatility of the common stock of comparable public companies. As we utilize unobservable inputs in the valuation, we classify the Private Placement Warrant Liability as Level 3 within the fair value hierarchy. Refer to Note 5 for description of inputs utilized at June 30, 2021. 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 we utilize 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 Earnin

Stockholders' Equity and Earnings per Share	6 Months Ended
	Jun. 30, 2021
Stockholders' Equity and Members' Equity
Stockholders' Equity and Earnings per Share	Note 5 - Stockholders’ Equity and Earnings per Share 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 June 30, 2021 and December 31, 2020, there were 132,634,672 and 132,532,383 shares of common stock issued and outstanding, respectively, and no shares of preferred stock issued and outstanding. As of June 30, 2021 and December 31, 2020 there were 41.7 million public warrants outstanding to acquire one -fourth of a share of common stock at a price of $ 2.875 (the “Public Warrants”), and 5.2 million warrants outstanding to acquire one share of our common stock at a price of $ 11.50 per share (the “Private Placement Warrants”). In the aggregate, we have outstanding warrants to purchase approximately 15.6 million shares of common stock at a price of $ 11.50 per whole share. Settlement of outstanding warrants will be in shares of our common stock unless we elect solely in our discretion to settle warrants we have called for redemption in cash, and subject to customary adjustment in the event of business combinations and certain tender offers. The liability for the Private Placement Warrants was $ 3.7 million as of June 30, 2021 and is included in accounts payable and accrued liabilities in the condensed consolidated balance sheet. Refer to "Correction of Immaterial Error" in Note 2 for additional details on the accounting classification of the Private Placement Warrants. The fair value of the Private Placement Warrant Liability was estimated using a lattice model in accordance with ASC 820, Fair Value, using the assumptions noted below in the following table. Expected volatility is based on the historical volatility of traded prices of Public Warrants. The risk-free interest rate is based on the US Treasury Constant Maturity curve, commensurate with the time to expiry of warrants. As of June 30, 2021 Expected volatility 23.0 % Expected dividend yield 7.4 % Expected life (in years) 3.38 Risk-free interest rate 0.5 % 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 Six Months Ended (dollars in thousands, except share and per share data): June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Net income $ 18,252 $ 15,844 $ 38,633 $ 42,313 Basic weighted-average shares of common stock outstanding 132,585,116 132,165,005 132,567,768 132,120,290 Dilutive effect of share-based compensation 61,273 — 68,656 — Diluted weighted-average shares of common stock outstanding 132,646,389 132,165,005 132,636,425 132,120,290 Basic earnings per share $ 0.14 $ 0.12 $ 0.29 $ 0.32 Diluted earnings per share $ 0.14 $ 0.12 $ 0.29 $ 0.32 For the periods presented, the following table reconciles the denominators used in the basic and diluted earnings per share calculations: Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Denominator for basic earnings per share calculation 132,585,116 132,165,005 132,567,768 $ 132,120,290 Effect of dilutive securities: Unvested restricted stock units 61,273 — 68,656 — Denominator for diluted earnings per share calculation 132,646,389 132,165,005 132,636,424 132,120,290 For the periods presented, the following stock equivalents were excluded from the calculations of diluted earnings per share because their effect would have been antidilutive: Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Weighted-average restricted stock units outstanding 596,978 792,480 539,645 642,185 Effect of dilutive securities: Unexercised public and private warrants 15,604,304 15,604,329 15,604,304 15,604,329 Total stock equivalents 16,201,282 16,396,809 16,143,949 16,246,514

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2021
Income Taxes
Income Taxes	Note 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 June 30, 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 Plan	6 Months Ended
	Jun. 30, 2021
Equity Incentive Plan
Equity Incentive Plan	Note 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 June 30, 2021, 3,597,199 share awards were available to be issued under the Plan. The restricted stock units granted under the Plan generally vest from one to three years depending on the terms of the specific award. In 2021, pRSUs were granted to our executive officers that will be earned at the end of the three fiscal year period ending December 31, 2023 based on the Company’s level of achievement of total stockholder return relative to the total stockholder return (“Relative TSR”) of a selected group of industry peer companies for the three-year performance period. A variable level of shares of our common stock, ranging from 0 % to 150 % 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 three-year 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 2021: Weighted Average Grant Date Fair Shares Market Value Unvested RSUs outstanding as of December 31, 2020 434,143 Granted 424,866 $ 10.39 Vested ( 37,227 ) $ 11.08 Unvested RSUs outstanding as of March 31, 2021 821,782 Granted 41,135 $ 10.93 Vested ( 77,766 ) $ 10.34 Forfeited ( 1,362 ) $ 10.58 Unvested RSUs outstanding as of June 30, 2021 783,789 For the three and six months ended June 30, 2021, we recognized compensation expense related to RSUs of $ 0.9 and $ 1.7 million, respectively, based on amortizing the fair value of the awards over the service (vesting) period. As of June 30, 2021, there was $ 6.6 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 2.1 years.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies.
Commitments and contingencies	Note 8 - Commitments and Contingencies The following table illustrates our contractual obligations and commercial commitments by due date as of June 30, 2021: Less than 1 More than (dollars in thousands) Total year 1-3 years 3-5 years 5 years Construction holdbacks (1) 412,751 292,787 119,964 — — Operating lease obligations $ 11,327 $ 926 $ 1,852 $ 2,048 $ 6,501 Total $ 424,078 $ 293,713 $ 121,816 $ 2,048 $ 6,501 (1) Includes construction holdbacks of $ 34.7 million on participating interests sold to the Private REIT as of June 30, 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 operating 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. 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 June 30, 2021 and December 31, 2020, the top ten counties make up 42.0 % and 43.2 % of the total committed amount of loans in our total portfolio.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2021
Related party transactions
Related Party Transactions	Note 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 period following the consummation of the Business Combination at $ 10.45352229 (the “Reference Price”). The Farallon Entities were entitled to cash settle, in whole or in part, the exercise of the Optional Subscription, and therefore, the Optional Subscription did not meet the requirements for equity classification and was assumed to be settled in cash and classified as a liability in our consolidated balance sheet. The Optional Subscription expired unexercised on November 14, 2020, and therefore the liability was $ 0 as of December 31, 2020. The change is fair value of the Optional Subscription Liability was included in the condensed consolidated statements of income and was estimated using a lattice model and the expected volatility was based on the historical volatility of comparable public companies. 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 the criterion for sale accounting and therefore, are derecognized from our condensed consolidated financial statements.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2021
Subsequent events
Subsequent Events	Note 10 - Subsequent Events Dividend Declaration On July 13, 2021, our board of directors declared a cash dividend of $ 0.07 per common share payable on August 13, 2021 to stockholders of record as of July 30, 2021. Private REIT On July 13, 2021, the Company announced that the Private REIT will be liquidated. The Private REIT Manager, acting as liquidator of the Private REIT, will sell the Private REIT’s assets, discharge its liabilities and wind up its affairs. The Private REIT’s outstanding participations in loans originated and sold by the Company to the Private REIT will be purchased by the Company for a cash payment by the Company equal to the fair value of the Private REIT’s loan participations as of August 1, 2021 (the "Liquidation Date"), which is projected to be approximately $ 42 million. The Private REIT will distribute 100 % of its assets in excess of cash required to discharge liabilities (including accrued liabilities for liquidation costs) to its investors based on their relative percentage interests as of the Liquidation Date. The liquidation of the Private REIT and distribution of its assets is scheduled to be completed by the end of the third quarter 2021. Upon completion of the purchase, the Company will hold 100 % of the participation interests in its outstanding loans.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2021
Summary of significant accounting policies
Basis of Presentation	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 June 30, 2021, our results of operations and stockholders’ equity for the six month periods ended June 30, 2021 and 2020, and our cash flows for the six month periods ended June 30, 2021 and 2020. The results of the six month period ended June 30, 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	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, therefore, do not consolidate. Furthermore, the Private REIT participation in loans originated by us meets the characteristics of a participating interest and the criterion for sale accounting in accordance with GAAP and therefore, is derecognized from our consolidated financial statements.
Reclassifications	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.
Correction of Immaterial Error	Correction of Immaterial Error In the course of preparing our second quarter 2021 unaudited condensed consolidated financial statements, we revisited our previous accounting classification for warrants and identified an error related to the presentation of private placement warrants resulting in an understatement of liabilities and change in fair value from November 14, 2019 to March 31, 2021. The private placement warrants generally have the same terms as the public warrants except that so long as the private warrants are held by the original holder or its permitted transferees, (i) the original holder or its permitted transferees may exercise the warrant on a cashless basis and (ii) the Company does not have the right to redeem the private placement warrants. In the case of a change of control and less than 70 percent of the consideration received is stock listed on an exchange, the public and private placement warrants would be subject to an exercise price adjustment calculated on the basis of a capped American call option and uncapped American call option, respectively. If, however, the private placement warrants are transferred to a third party, the basis for the exercise price adjustment changes and is calculated on the basis of a capped American call option, which results in the valuation change being based, in part, on the holder of the private placement warrants. As a result, the private placement warrants do not meet the criterion to be indexed to valuation inputs based on the Company’s own stock and must be classified as a liability measured at fair value. Based on consideration of both the quantitative and qualitative factors within the provisions of SEC Staff Accounting Bulletin No. 99, Materiality, and Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, we determined that the error was not material to our previously issued annual and interim consolidated financial statements. Furthermore, we determined that correcting the error in the current period would not materially misstate our unaudited condensed consolidated financial statements and therefore, no restatement of our prior period unaudited condensed consolidated financial statements is required.
Use of Estimates	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 fair value of financial instruments, such as the expected credit losses on our loans, investments in real property, and private placement warrant liabilities. 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	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	Reportable Segments We operate the business as one reportable segment, which originates, underwrites and services construction loans.
Cash and Cash Equivalents	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 June 30, 2021 and December 31, 2020 . The balances in these accounts may exceed the insured limits. There were no restrictions on cash as of June 30, 2021 or December 31, 2020 .
Mortgage Notes Receivable	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. If the sales do not meet these criteria, the sale of the participation is treated as a secured borrowing. As of June 30, 2021 , all participations in mortgage notes receivable sold to the Private REIT have achieved sale accounting.
Current Expected Credit Losses Allowance	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 and six months ended June 30, 2020 includes an additional provision for credit losses of $ 3.9 and $ 4.7 million associated with the adoption of the CECL Standard, as a result, our previously reported net income of $ 19.8 and $ 47.0 million for this period is lower by $ 3.9 and $ 4.7 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. The CECL Allowance related to the principal outstanding is presented within mortgage notes receivable, net and for unfunded commitments is within accounts payable and accrued liabilities on our condensed consolidated balance sheets. 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 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 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 charged 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 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 June 30, 2021 and December 31, 2020, we owned five and three properties or projects totaling $ 41.7 and $ 8.5 million, respectively.
Leases	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 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. Our annual assessment occurs in the fourth quarter. During the first and second 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 Other assets primarily consist of fixed assets, deferred financing costs, intangible assets, prepaid insurance and other operating receivables.
Fixed Assets	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 to seven years . For leasehold improvements, we depreciate over the shorter of expected useful life or lease term.
Deferred Financing Costs	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	Intangible Assets We record the intangible assets at fair value at the acquisition date and amortize 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 June 30, 2021 and December 31, 2020, intangible assets net of accumulated amortization was $ 0.5 and $ 0.6 million, respectively.
Interest Income	Interest Income Interest income on mortgage notes receivable is accrued based on contractual rates applied to the principal balance unless there is a minimum interest provision in the mortgage note. Certain 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	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.
Share-Based Payments	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	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	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	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 (Tabl

Mortgage Notes Receivable (Tables)	6 Months Ended
	Jun. 30, 2021
Mortgage notes receivable
Schedule of mortgage notes receivable	The following table reconciles outstanding mortgage loan commitments to outstanding balance of mortgage notes receivable as of June 30, 2021 and December 31, 2020: (dollars in thousands) June 30, 2021 December 31, 2020 Total loan commitments $ 1,328,556 $ 1,245,963 Less: Construction holdbacks (1) 412,751 356,026 Interest reserves (1) 35,600 29,817 Private REIT participation (2) 41,427 37,729 Total principal outstanding for our mortgage notes receivable 838,778 822,391 Less: Allowance for credit losses (3) 10,943 10,590 Deferred origination and amendment fees 13,381 13,315 Mortgage notes receivable, net $ 814,454 $ 798,486 (1) Includes construction holdbacks of $ 34.7 and $ 40.4 million and interest reserves of $ 2.6 and $ 4.3 million on participating interests sold to the Private REIT as of June 30, 2021 and December 31, 2020, respectively. (2) The Private REIT’s participations in loans originated by us meet the characteristics of participating interests and the criterion for sale accounting and therefore, are derecognized from our condensed consolidated financial statements. (3) As of June 30, 2021, $ 0.7 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	The following tables summarize the activity in the CECL Allowance during the six months ended June 30, 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 Provision for credit losses (benefit), net 280 ( 222 ) 58 CECL allowance as of June 30, 2021 $ 10,943 $ 725 $ 11,668 (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 Charge-offs (1) ( 696 ) Provision for credit losses, net 4,224 CECL allowance as of June 30, 2020 $ 13,494 (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	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 June 30, 2021 Year Originated (1) (dollars in thousands) Carrying % of 2021 2020 2019 2018 2017 Prior Construction Type Vertical Construction $ 519,791 63.0 % $ 196,664 $ 194,366 $ 31,142 $ 1,731 $ 90,598 $ 5,290 Investment 159,089 19.2 68,500 44,474 18,456 4,027 18,193 5,439 Horizontal Development 146,517 17.8 102,106 39,548 — 181 — 4,682 Total $ 825,397 100.0 % $ 367,270 $ 278,388 $ 49,598 $ 5,939 $ 108,791 $ 15,411 CECL allowance (2) ( 10,943 ) Carrying value, net $ 814,454 (1) Represents the year of origination or amendment where the loan incurred a full re-underwriting. (2) $ 0.7 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 June 30, 2021 Year Originated (1) (dollars in thousands) Carrying % of 2021 2020 2019 2018 2017 Prior Collateral Type Apartments $ 178,457 21.6 % $ 55,399 $ 68,339 $ 23,020 $ — $ 26,667 $ 5,032 Residential Lots 88,976 10.8 51,790 27,065 — — — 10,121 Single family housing 77,416 9.5 53,171 19,071 — 181 4,993 — Townhomes 75,268 9.1 23,307 26,667 — 1,384 23,652 258 Unentitled Land 70,960 8.6 50,492 — — 3,200 17,268 — Condos 64,359 7.8 9,628 18,271 — 1,174 35,286 — Senior Housing 53,056 6.4 28,423 24,633 — — — — Hotel 47,188 5.7 6,325 40,863 — — — — Mixed Use 39,976 4.8 11,795 26,258 1,923 — — — Offices 33,550 4.1 4,560 6,292 22,698 — — — Entitled Land 29,070 3.5 27,719 1,351 — — — — Industrial 17,377 2.1 17,377 — — — — — Commercial Lots 15,453 1.9 — 15,453 — — — — Commercial 12,649 1.5 12,649 — — — — — Retail 6,668 0.8 3,508 1,203 1,957 — — — Quadplex 6,013 0.7 3,091 2,922 — — — — Duplex 4,634 0.6 3,709 — — — 925 — Commercial other 4,327 0.5 4,327 — — — — — Total $ 825,397 100.0 % $ 367,270 $ 278,388 $ 49,598 $ 5,939 $ 108,791 $ 15,411 CECL allowance (2) ( 10,943 ) Carrying value, net $ 814,454 (1) Represents the year of origination or amendment where the loan incurred a full re-underwriting. (2) $ 0.7 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 June 30, 2021 Year Originated (1) (dollars in thousands) Carrying % of 2021 2020 2019 2018 2017 Prior LTV (2) 0 - 40% $ 34,973 4.2 % $ 24,053 $ 7,375 $ — $ 3,200 $ 345 $ — 41 - 45% 40,800 5.0 35,046 5,754 — — — — 46 - 50% 56,451 6.8 30,013 26,438 — — — — 51 - 55% 84,695 10.3 32,781 33,035 1,957 — 16,922 — 56 - 60% 81,261 9.8 15,854 44,656 — — 15,312 5,439 61 - 65% 501,182 60.7 228,970 141,255 47,641 2,739 75,287 5,290 66 - 70% 11,300 1.4 553 10,747 — — — — 71 - 75% — 0.0 — — — — — — 76 - 80% — 0.0 — — — — — — Above 80% 14,735 1.8 — 9,128 — — 925 4,682 Total $ 825,397 100.0 % $ 367,270 $ 278,388 $ 49,598 $ 5,939 $ 108,791 $ 15,411 CECL allowance (3) ( 10,943 ) Carrying value, net $ 814,454 (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) $ 0.7 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 % of 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 % of 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 Townhomes 72,773 9.0 47,391 1,061 1,703 21,564 1,054 — Unentitled Land 71,796 8.9 47,727 — 7,259 16,444 — 366 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 — — — — — Entitled Land 1,116 0.1 1,116 — — — — — 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 % of 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)	6 Months Ended
	Jun. 30, 2021
Fair value measurements
Schedule of fair value of assets and liabilities	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: June 30, 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 $ 164,023 $ 164,023 $ 164,023 $ — $ — Mortgage notes receivable, net 814,454 814,454 — — 814,454 Financial Liabilities Accounts payable and accrued liabilities (1) 8,542 8,542 — 4,808 3,734 (1) As of June 30, 2021, includes the level 3 valuation of the private placement warrant liability derivative measured at fair value on a recurring basis. 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	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 June 30, 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 June 30, 2021 and December 31, 2020: Level 3 Valuation Unobservable Range of (dollars in thousands) June 30, 2021 December 31, 2020 technique inputs inputs Private Placement Warrants (1) $ 3,734 $ - Valuation model Equity volatility of underlying stock price 0 - 25 % Real property (2) 41,725 8,473 Collateral valuations Discount to appraised value based on comparable market prices 0 - 10 % Collateral dependent loans, net of allowance for credit losses (3) 37,242 30,920 Collateral valuations Discount to appraised value based on comparable market prices 0 - 10 % Total $ 82,701 $ 39,393 (1) Private placement warrant liability derivative measured at fair value on a recurring basis. (2) Real property is stated at lower of cost or fair value, a non-recurring measurement of fair value. (3) 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 Earn_2

Stockholders' Equity and Earnings per Share (Tables)	6 Months Ended
	Jun. 30, 2021
Stockholders' Equity and Members' Equity
Schedule of assumptions used in estimating fair value of derivative liability	As of June 30, 2021 Expected volatility 23.0 % Expected dividend yield 7.4 % Expected life (in years) 3.38 Risk-free interest rate 0.5 %
Schedule of basic and diluted 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 Six Months Ended (dollars in thousands, except share and per share data): June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Net income $ 18,252 $ 15,844 $ 38,633 $ 42,313 Basic weighted-average shares of common stock outstanding 132,585,116 132,165,005 132,567,768 132,120,290 Dilutive effect of share-based compensation 61,273 — 68,656 — Diluted weighted-average shares of common stock outstanding 132,646,389 132,165,005 132,636,425 132,120,290 Basic earnings per share $ 0.14 $ 0.12 $ 0.29 $ 0.32 Diluted earnings per share $ 0.14 $ 0.12 $ 0.29 $ 0.32
Schedule of denominators used in basic and diluted earnings per share	For the periods presented, the following table reconciles the denominators used in the basic and diluted earnings per share calculations: Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Denominator for basic earnings per share calculation 132,585,116 132,165,005 132,567,768 $ 132,120,290 Effect of dilutive securities: Unvested restricted stock units 61,273 — 68,656 — Denominator for diluted earnings per share calculation 132,646,389 132,165,005 132,636,424 132,120,290
Schedule of stock equivalents excluded from diluted net income per share	For the periods presented, the following stock equivalents were excluded from the calculations of diluted earnings per share because their effect would have been antidilutive: Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Weighted-average restricted stock units outstanding 596,978 792,480 539,645 642,185 Effect of dilutive securities: Unexercised public and private warrants 15,604,304 15,604,329 15,604,304 15,604,329 Total stock equivalents 16,201,282 16,396,809 16,143,949 16,246,514

Equity Incentive Plan (Tables)

Equity Incentive Plan (Tables)	6 Months Ended
	Jun. 30, 2021
Equity Incentive Plan
Summary of the activity related to restricted stock	The following table summarizes the activity related to RSUs during 2021: Weighted Average Grant Date Fair Shares Market Value Unvested RSUs outstanding as of December 31, 2020 434,143 Granted 424,866 $ 10.39 Vested ( 37,227 ) $ 11.08 Unvested RSUs outstanding as of March 31, 2021 821,782 Granted 41,135 $ 10.93 Vested ( 77,766 ) $ 10.34 Forfeited ( 1,362 ) $ 10.58 Unvested RSUs outstanding as of June 30, 2021 783,789

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies.
Schedule of contractual obligations and commercial commitments	The following table illustrates our contractual obligations and commercial commitments by due date as of June 30, 2021: Less than 1 More than (dollars in thousands) Total year 1-3 years 3-5 years 5 years Construction holdbacks (1) 412,751 292,787 119,964 — — Operating lease obligations $ 11,327 $ 926 $ 1,852 $ 2,048 $ 6,501 Total $ 424,078 $ 293,713 $ 121,816 $ 2,048 $ 6,501 (1) Includes construction holdbacks of $ 34.7 million on participating interests sold to the Private REIT as of June 30, 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				6 Months Ended
	Jun. 30, 2021USD ($)Property	Mar. 31, 2021USD ($)	Jun. 30, 2020USD ($)	Mar. 31, 2020USD ($)	Jun. 30, 2021USD ($)PropertySegment	Jun. 30, 2020USD ($)	Dec. 31, 2020USD ($)Property	Jan. 01, 2020USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Additional Paid in Capital	$ 1,215,513,000				$ 1,215,513,000		$ 1,213,987,000
Placement warrants description					the Company does not have the right to redeem the private placement warrants. In the case of a change of control and less than 70 percent of the consideration received is stock listed on an exchange, the public and private placement warrants would be subject to an exercise price adjustment calculated on the basis of a capped American call option and uncapped American call option, respectively.
Number of Reportable Segments | Segment					1
Threshold Sweep Account Balance	750,000				$ 750,000
Cash and cash equivalents insured maximum per account	250,000				250,000		250,000
Restricted cash	0				0		0
Accumulated deficit	(56,746,000)				(56,746,000)		$ (39,698,000)
Provision for credit losses	58,000		$ 4,224,000		2,766,000	$ 8,656,000
Net income (Loss)	$ 18,252,000	$ 20,381,000	15,844,000	$ 26,469,000	$ 38,633,000	42,313,000
Number of properties | Property	5				5		3
Real Estate Project Value	$ 41,700,000				$ 41,700,000		$ 8,500,000
Lessee, Operating Lease, Option to Extend					true
Additional lease term					5 years
Adjustment to goodwill				5,000,000
Amortization reversed				900,000
Intangible assets, net	500,000				$ 500,000		$ 600,000
Provision for income taxes	$ 0		0		$ 0	0
Previously Reported [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net income (Loss)			19,800,000			47,000,000
Cumulative Effect, Period of Adoption, Adjustment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accumulated deficit								$ 2,000,000
Provision for credit losses			3,900,000			4,700,000
Net income (Loss)			$ 3,900,000			$ 4,700,000
Employees
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vesting period					3 years
Directors
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vesting period					1 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 assets					7 years
Contractual Rate					70.00%
Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Estimated Useful Lives of fixed assets					3 years
Contractual Rate					50.00%

Mortgage Notes Receivable - Add

Mortgage Notes Receivable - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Loans and Leases Receivable Disclosure [Line Items]
Percentage of maximum loan to value ratio	65.00%
Percentage of maximum of amount of a single loan	10.00%
Percentage of maximum amount of loans to single borrower	15.00%
Monthly interest rate payment term	10 days
Principal outstanding on non accrual status	$ 155.3	$ 126.8
Maximum
Loans and Leases Receivable Disclosure [Line Items]
Term of mortgage notes receivable	18 months
Interest rate (as a percent)	13.00%
Minimum
Loans and Leases Receivable Disclosure [Line Items]
Term of mortgage notes receivable	5 months
Interest rate (as a percent)	10.00%

Mortgage Notes Receivable - Inf

Mortgage Notes Receivable - Information pertaining to mortgage notes receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Loans and Leases Receivable Disclosure [Line Items]
Total principal outstanding for our mortgage notes receivable	$ 825,397		$ 809,076
Allowance for loan losses	10,943	$ 10,663	10,590	$ 13,494	$ 9,966	$ 4,096
Mortgage notes receivable, net	814,454		798,486
Mortgage notes receivables
Loans and Leases Receivable Disclosure [Line Items]
Total loan commitments	1,328,556		1,245,963
Construction holdbacks	412,751		356,026
Interest reserves	35,600		29,817
Private REIT participation	41,427		37,729
Total principal outstanding for our mortgage notes receivable	838,778		822,391
Allowance for loan losses	10,943		10,590
Deferred origination and amendment fees	13,381		13,315
Mortgage notes receivable, net	814,454		798,486
Broadmark Private REIT, LLC
Loans and Leases Receivable Disclosure [Line Items]
Construction holdbacks	34,700		40,400
Interest reserves	2,600		4,300
Unfunded Loan Commitment [Member]
Loans and Leases Receivable Disclosure [Line Items]
Allowance for loan losses	725	947
Unfunded Loan Commitment [Member] | Accounts payable and accrued liabilities
Loans and Leases Receivable Disclosure [Line Items]
Allowance for loan losses	700
Funded And Unfunded Loan Commitment [Member]
Loans and Leases Receivable Disclosure [Line Items]
Allowance for loan losses	$ 11,668	$ 11,610	$ 10,590

Mortgage Notes Receivable - All

Mortgage Notes Receivable - Allowance for loan loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for Credit Loss, Beginning Balance	$ 10,663	$ 10,590	$ 9,966	$ 4,096
Provision for loan losses (benefits)	280	1,761	4,224	4,432
Charge offs		(1,688)	(696)	(537)
Allowance for Credit Loss, Ending Balance	10,943	10,663	13,494	9,966
Cumulative Effect, Period of Adoption, Adjustment [Member]
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for Credit Loss, Beginning Balance			$ 1,975
Allowance for Credit Loss, Ending Balance				$ 1,975
Unfunded Loan Commitment [Member]
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for Credit Loss, Beginning Balance	947
Provision for loan losses (benefits)	(222)	947
Allowance for Credit Loss, Ending Balance	725	947
Funded And Unfunded Loan Commitment [Member]
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for Credit Loss, Beginning Balance	11,610	10,590
Provision for loan losses (benefits)	58	2,708
Charge offs		(1,688)
Allowance for Credit Loss, Ending Balance	$ 11,668	$ 11,610

Mortgage Notes Receivable - Com

Mortgage Notes Receivable - Composition of loan portfolio (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 825,397		$ 809,076
CECL Allowance	(10,943)	$ (10,663)	(10,590)	$ (13,494)	$ (9,966)	$ (4,096)
Carrying value, net	$ 814,454		$ 798,486
Percentage of portfolio	100.00%		100.00%
2021	$ 367,270		$ 581,765
2020	278,388		90,775
2019	49,598		14,395
2018	5,939		105,099
2017	108,791		15,953
Prior	$ 15,411		$ 1,089
LTV general percent indicating default status	65		65
0 - 40%
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 34,973		$ 22,601
Percentage of portfolio	4.20%		2.80%
2021	$ 24,053		$ 18,112
2020	7,375
2019			3,862
2018	3,200		261
2017	345
Prior			366
41 - 45%
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 40,800		$ 68,263
Percentage of portfolio	5.00%		8.40%
2021	$ 35,046		$ 44,683
2020	5,754		20,183
2019			3,397
46 - 50%
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 56,451		$ 23,864
Percentage of portfolio	6.80%		2.90%
2021	$ 30,013		$ 15,917
2020	26,438		7,224
Prior			723
51 - 55%
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 84,695		$ 76,539
Percentage of portfolio	10.30%		9.50%
2021	$ 32,781		$ 57,583
2020	33,035		2,774
2019	1,957
2018			16,182
2017	16,922
56 - 60%
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 81,261		$ 135,170
Percentage of portfolio	9.80%		16.70%
2021	$ 15,854		$ 117,309
2020	44,656		3,106
2018			9,639
2017	15,312		5,116
Prior	5,439
61 - 65%
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 501,182		$ 450,253
Percentage of portfolio	60.70%		55.70%
2021	$ 228,970		$ 301,964
2020	141,255		57,488
2019	47,641		7,136
2018	2,739		76,139
2017	75,287		7,526
Prior	5,290
66 - 70%
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 11,300		$ 9,416
Percentage of portfolio	1.40%		1.20%
2021	$ 553		$ 9,416
2020	$ 10,747
71 - 75%
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value			$ 1,983
Percentage of portfolio	0.00%		0.20%
2021			$ 1,983
76 - 80%
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value			$ 14,544
Percentage of portfolio	0.00%		1.80%
2021			$ 14,544
Above 80%
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 14,735		$ 6,443
Percentage of portfolio	1.80%		0.80%
2021			$ 254
2020	$ 9,128
2018			2,878
2017	925		3,311
Prior	4,682
Apartments
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 178,457		$ 129,588
Percentage of portfolio	21.60%		16.00%
2021	$ 55,399		$ 79,931
2020	68,339		18,953
2019	23,020
2018			24,232
2017	26,667		6,472
Prior	5,032
Residential Lots
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 88,976		$ 124,548
Percentage of portfolio	10.80%		15.40%
2021	$ 51,790		$ 105,830
2020	27,065		10,291
2017			8,427
Prior	10,121
Condos
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 64,359		$ 92,245
Percentage of portfolio	7.80%		11.40%
2021	$ 9,628		$ 52,714
2020	18,271		3,106
2019			4,405
2018	1,174		32,020
2017	35,286
Single family housing
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 77,416		$ 90,131
Percentage of portfolio	9.50%		11.10%
2021	$ 53,171		$ 69,438
2020	19,071		8,839
2019			1,028
2018	181		10,103
2017	4,993
Prior			723
Unentitled Land
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 70,960		$ 71,796
Percentage of portfolio	8.60%		8.90%
2021	$ 50,492		$ 47,727
2019			7,259
2018	3,200		16,444
2017	17,268
Prior			366
Townhomes
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 75,268		$ 72,773
Percentage of portfolio	9.10%		9.00%
2021	$ 23,307		$ 47,391
2020	26,667		1,061
2019			1,703
2018	1,384		21,564
2017	23,652		1,054
Prior	258
Mixed Use
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 39,976		$ 66,092
Percentage of portfolio	4.80%		8.20%
2021	$ 11,795		$ 60,232
2020	26,258		5,860
2019	1,923
Hotel
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 47,188		$ 51,115
Percentage of portfolio	5.70%		6.30%
2021	$ 6,325		$ 42,874
2020	40,863		8,241
Senior Housing
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 53,056		$ 34,283
Percentage of portfolio	6.40%		4.20%
2021	$ 28,423		$ 34,283
2020	24,633
Offices
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 33,550		$ 29,540
Percentage of portfolio	4.10%		3.70%
2021	$ 4,560		$ 8,495
2020	6,292		21,045
2019	22,698
Entitled Land
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 29,070		$ 1,116
Percentage of portfolio	3.50%		0.10%
2021	$ 27,719		$ 1,116
2020	1,351
Commercial Lots
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 15,453		$ 15,683
Percentage of portfolio	1.90%		1.90%
2021			$ 15,683
2020	$ 15,453
Retail
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 6,668		$ 11,397
Percentage of portfolio	0.80%		1.40%
2021	$ 3,508		$ 9,500
2020	1,203		1,897
2019	1,957
Industrial
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 17,377		$ 11,309
Percentage of portfolio	2.10%		1.40%
2021	$ 17,377		$ 704
2020			10,605
Quadplex
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 6,013		$ 5,592
Percentage of portfolio	0.70%		0.70%
2021	$ 3,091		$ 5,592
2020	2,922
Commercial
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 12,649		$ 877
Percentage of portfolio	1.50%		0.10%
2021	$ 12,649
2020			$ 877
Duplex
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 4,634		$ 736
Percentage of portfolio	0.60%		0.10%
2021	$ 3,709
2018			$ 736
2017	925
Commercial other
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 4,327		$ 254
Percentage of portfolio	0.50%		0.10%
2021	$ 4,327		$ 254
Vertical Construction
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 519,791		$ 514,136
Percentage of portfolio	63.00%		63.50%
2021	$ 196,664		$ 354,012
2020	194,366		57,090
2019	31,142		6,853
2018	1,731		88,655
2017	90,598		7,526
Prior	5,290
Horizontal Development
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 146,517		$ 153,345
Percentage of portfolio	17.80%		19.00%
2021	$ 102,106		$ 129,607
2020	39,548		15,028
2019	0		283
2018	181
2017	0		8,427
Prior	4,682
Investment
Loans and Leases Receivable Disclosure [Line Items]
Carrying Value	$ 159,089		$ 141,595
Percentage of portfolio	19.20%		17.50%
2021	$ 68,500		$ 98,146
2020	44,474		18,657
2019	18,456		7,259
2018	4,027		16,444
2017	18,193
Prior	5,439		$ 1,089
Unfunded Loan Commitment [Member]
Loans and Leases Receivable Disclosure [Line Items]
CECL Allowance	(725)	$ (947)
Unfunded Loan Commitment [Member] | Accounts payable and accrued liabilities
Loans and Leases Receivable Disclosure [Line Items]
CECL Allowance	$ (700)

Fair Value Measurements - Fair

Fair Value Measurements - Fair value of assets and liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Carrying Value
Financial Assets
Cash and cash equivalents	$ 164,023	$ 223,375
Mortgage notes receivable, net	814,454	798,486
Financial Liabilities
Accounts payable and accrued liabilities	8,542
Estimated Fair Value
Financial Assets
Cash and cash equivalents	164,023	223,375
Mortgage notes receivable, net	814,454	798,486
Financial Liabilities
Accounts payable and accrued liabilities	8,542
Level 1 | Estimated Fair Value
Financial Assets
Cash and cash equivalents	164,023	223,375
Level 2 | Estimated Fair Value
Financial Liabilities
Accounts payable and accrued liabilities	4,808
Level 3 | Estimated Fair Value
Financial Assets
Mortgage notes receivable, net	814,454	$ 798,486
Financial Liabilities
Accounts payable and accrued liabilities	$ 3,734

Fair Value Measurements - Valua

Fair Value Measurements - Valuation Methodologies and Inputs Used for Assets Measured at Fair Value (Details) $ in Thousands	Jun. 30, 2021USD ($)	Dec. 31, 2020USD ($)
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 82,701	$ 39,393
Non recurring | Private Placement Warrants [Member] | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs	0
Non recurring | Private Placement Warrants [Member] | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs	25
Non recurring | Real Property | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs	0
Non recurring | Real Property | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs	10
Non recurring | Collateral Dependent Loans [Member] | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs	0
Non recurring | Collateral Dependent Loans [Member] | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs	10
Non recurring | Level 3 | Real Property
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 41,725	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	$ 37,242	$ 30,920

Stockholders' Equity and Earn_3

Stockholders' Equity and Earnings per Share - Stock (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2021Vote$ / sharesshares	Dec. 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 | Vote	1	1
Common stock shares issued (in shares)	132,634,672	132,532,383
Common stock shares outstanding (in shares)	132,634,672	132,532,383
Preferred stock shares issued (in shares)	0	0
Preferred stock shares outstanding (in shares)	0	0

Stockholders' Equity and Earn_4

Stockholders' Equity and Earnings per Share - Warrant (Details) - USD ($) $ / shares in Units, $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Class of Warrant or Right [Line Items]
Exercise price per share (in dollars per share)	$ 11.50	$ 11.50
Warrants issued	15,600,000	15,600,000
Private placement warrant liabilities	$ 3.7
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 warrant	0.25	0.25
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 warrant	1	1
Farallon Entities
Class of Warrant or Right [Line Items]
Warrants outstanding (in shares)	7,174,163

Stockholders' Equity and Earn_5

Stockholders' Equity and Earnings per Share - Optional Subscription (Details)	Jun. 30, 2021
Expected volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	23
Expected dividend yield
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	7.4
Expected life (in years)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	3.38
Risk-free interest rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.5

Stockholders' Equity and Earn_6

Stockholders' Equity and Earnings per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income	$ 18,252	$ 15,844	$ 38,633	$ 42,313
Basic weighted-average shares of common stock outstanding	132,585,116	132,165,005	132,567,768	132,120,290
Dilutive effect of share-based compensation	61,273		68,656
Diluted weighted-average shares of common stock outstanding	132,646,389	132,165,005	132,636,425	132,120,290
Basic earnings per share	$ 0.14	$ 0.12	$ 0.29	$ 0.32
Diluted earnings per share	$ 0.14	$ 0.12	$ 0.29	$ 0.32

Stockholders' Equity and Earn_7

Stockholders' Equity and Earnings per Share - Schedule of Denominators Used in Basic and Diluted Earnings Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share [Abstract]
Denominator for basic earnings per share calculation	132,585,116	132,165,005	132,567,768	132,120,290
Effect of dilutive securities:
Unvested restricted stock units	61,273		68,656
Denominator for diluted earning per share calculation	132,646,389	132,165,005	132,636,424	132,120,290

Stockholders' Equity and Earn_8

Stockholders' Equity and Earnings per Share - Schedule of Stock Equivalents Excluded from Diluted Net Income Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share [Abstract]
Weighted-average restricted stock units outstanding	596,978	792,480	539,645	642,185
Effect of dilutive securities:
Unexercised public and private warrants	15,604,304	15,604,329	15,604,304	15,604,329
Total stock equivalents	16,201,282	16,396,809	16,143,949	16,246,514

Income Taxes - (Details)

Income Taxes - (Details) $ in Thousands	Jun. 30, 2021USD ($)
Income Taxes
Uncertain tax positions	$ 0
Amount accrued for penalties or interest	$ 0

Equity Incentive Plan - (Detail

Equity Incentive Plan - (Details) - 2019 Stock Incentive Plan - shares	6 Months Ended
	Jun. 30, 2021	Nov. 14, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized		5,000,000
Shares available for grant	3,597,199
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period	3 years
Restricted stock units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payout percentage	0.00%
Vesting period	1 year
Restricted stock units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payout percentage	150.00%
Vesting period	3 years

Equity Incentive Plan - RSU's A

Equity Incentive Plan - RSU's Activity - (Details) - Restricted stock units - $ / shares	3 Months Ended
	Jun. 30, 2021	Mar. 31, 2021
Shares
Outstanding at the beginning	821,782	434,143
Granted	41,135	424,866
Vested	(77,766)	(37,227)
Forfeited	1,362
Outstanding at the end	783,789	821,782
Weighted Average Grant Date Fair Market Value
Granted	$ 10.93	$ 10.39
Vested	10.34	$ 11.08
Forfeited	$ 10.58

Equity Incentive Plan - Compens

Equity Incentive Plan - Compensation (Details) - Restricted stock units $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2021USD ($)	Jun. 30, 2021USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expense	$ 0.9	$ 1.7
Unrecognized compensation cost related to unvested stock-based compensation arrangements	$ 6.6	$ 6.6
Weighted-average recognition period		2 years 1 month 6 days

Commitments and Contingencies -

Commitments and Contingencies - Contractual Obligations (Details) - USD ($) $ in Thousands		Jun. 30, 2021	Dec. 31, 2020
Other Commitments [Line Items]
Less than 1 year		$ 293,713
1-3 years		121,816
3-5 years		2,048
More than 5 years		6,501
Total		424,078
Construction holdbacks
Other Commitments [Line Items]
Less than 1 year	[1]	292,787
1-3 years	[1]	119,964
3-5 years	[1]	0
More than 5 years	[1]	0
Total	[1]	412,751
Operating lease obligations
Other Commitments [Line Items]
Less than 1 year		926
1-3 years		1,852
3-5 years		2,048
More than 5 years		6,501
Total		11,327
Broadmark Private REIT, LLC
Other Commitments [Line Items]
Construction holdbacks		$ 34,700	$ 40,400
[1]	Includes construction holdbacks of $ 34.7 million on participating interests sold to the Private REIT as of June 30, 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.

Commitments and Contingencies_2

Commitments and Contingencies (Details) - Mortgage notes receivables - Geographic concentration risk	6 Months Ended	12 Months Ended
	Jun. 30, 2021CountryState	Dec. 31, 2020
Concentration Risk [Line Items]
Number of states in mortgage loans were originated | State	14
Number of counties in which loan portfolio concentrated | Country	10
Concentration risk percentage	42.00%	43.20%

Commitments and Contingencies_3

Commitments and Contingencies - Lease Commitments (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2021USD ($)
Commitments and Contingencies.
Lease incentives	$ 11,700
Right-of-use assets obtained in exchange	6,360
Tenant improvements	$ 1,959
Discount rate for the operation lease	6.00%
Imputed interest amount	$ 3,300

Commitments and Contingencies_4

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

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Related Party Transaction [Line Items]
Warrants issued	15,600,000	15,600,000
Farallon Entities
Related Party Transaction [Line Items]
Shares issued	7,174,163
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 term	365 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 percentage	5.00%
Maximum | Farallon Entities | Optional subscription
Related Party Transaction [Line Items]
Additional shares of common stock	25,000,000

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event $ / shares in Units, $ in Millions	Jul. 13, 2021USD ($)$ / shares
Subsequent Event [Line Items]
Common stock dividend declared | $ / shares	$ 0.07
Reallocation of outstanding loan participants cash payment | $	$ 42
Distribution of assets in excess of liabilities to investors percentage	100.00%
Percentage of participation interest in outstanding loans	100.00%