The Sean. reasons this. overall estate market credit three We challenged. commercial remains see real Thanks sentiment for for primary
impacting First, mortgage resulted the equity rates collateral adjust hikes higher capital as higher valuations negatively the costs. have investors in to and cap Fed rate coupons,
the recently banking over the credit time Second, have has concerns and high expected recent some credit further and values spreads have occurred. standards; profile reductions and lastly, to are of drive fundamental impacted real stresses tightening in and office broadly the notable defaults estate underwriting availability industry escalated over
viability questions long-term properties. highly office with The quality market the future significant faces uncertain a lower of about
to and and retail hospitality concerns We do non-office across not minimal fundamental operating the building housing, is where level. investments. in multifamily outperforming see in as office and many are industrial our recovered the sectors cases Our rents too commercial CRE predominantly exposure now income pre-COVID sectors. Notably, have many
market while immune environment. not that this to negative is well-positioned mortgage to deteriorating economic We withstand unique our this and sentiment portfolio, believe commercial
our Now portfolio. turning to commercial
with a the At million, During credit whole were sector fair the continued we of only $XX value held mortgage loans million commercial discount across widen the spreads par to quarter, our a holdings commercial but five value. slight impacted. to quarter end, first modestly $XX combined commercial
and with sold refinanced. of All loans next are as these expectations properties to payoff either we quarters the line at par, have several over or expect loans performed in these
to the these timing there the can will or loan property whether However payoffs pertaining to payoffs, and each as ultimate factors no depends occur. realization specific and on be of assurance when
for During the maturity quarter extension. repayment a from a loan, modest in one partial exchange we received
XX LTV skilled origination. loan million a backed loan. of We facility an is at point on also and XX% basis a fee $XX.X had This extension received by nursing this
million. valued single-borrower Within securities, our credit at the single-asset Non-Agency commercial mortgage-backed is $XX portfolio
par in backed one a million SASB quarter we which in the on was first $XX which was a this lower the and exposure loan prepayment This beginning by of year. $XX the During hotel. portfolio reduces our received million at
which are positive of to cater hotel that And in consists The number and of to backed properties a A continue eight momentum remaining by leisure operating retail Class properties. portfolio these loans, travelers. primarily see we
their These generally so or believe permanently values strong assets we not that equity impaired. sponsors, materially properties been with have high-quality are collateral
combined However, portfolio negative real sentiment estate, balance. current commercial marked given this of the is principal at for the XX% currently
the one an these original loan-to-value $X that all of $XX of than representing fact the them current. Despite less and portfolio million loans but approximate remains had million XX%
CMBS the $XX.X million. mark down $XX exposure is quarter fourth at million Our conduit from modestly of valued
to and paydown portfolio value target proceeds opportunistically to We the that reinvest to assets debt to focused on use optimizing remain into continue returns. recourse recovery and levels our attractive our those new risk-adjusted in commercial offer intend
Lehman, the I'll Bob? Bob over CFO. to now our call turn
