v3.25.2
Fair Value Measurement
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurement Fair Value Measurement
The following table illustrates assets and liabilities measured at fair value on a recurring basis:
Fair Value Measurement
(in thousands)June 30, 2025December 31, 2024
Level 1
Investment securities$1,039 $1,517 
Level 3
Loans held for sale, net8,830 10,970 
The following table illustrates assets and liabilities measured at fair value on a nonrecurring basis:
Fair Value Measurement
(in thousands)June 30, 2025December 31, 2024
Level 3
Individually evaluated loans, net of allowance for credit losses$83,564 $80,757 
Real estate owned, net18,626 18,574 
There were no nonrecurring fair value adjustments to the above assets for the six months ended June 30, 2025.
Carrying amounts and fair values of financial instruments at June 30, 2025 and December 31, 2024:
Carrying AmountFair Value Measurement
(in thousands)June 30, 2025December 31, 2024June 30, 2025December 31, 2024
Level 1
Cash and cash equivalents$22,474 $18,066 $22,474 $18,066 
Notes payable (listed) – fixed rate debt230,239 230,239 195,598 194,810 
Investment securities1,039 1,517 1,039 1,517 
Level 2
Lines of credit and repurchase agreements – variable rate debt40,680 73,708 40,680 73,708 
Level 3
Loans held for investment, net364,463 356,571 364,463 356,571 
Loans held for sale, net8,830 10,970 8,830 10,970 
Interest and fees receivable and due from borrowers10,782 8,918 10,782 8,918 
Investments in limited liability companies48,710 53,942 48,710 53,942 
Advances from borrowers4,146 4,047 4,146 4,047 
Mortgage payable960 1,002 960 1,002 
Loans held for investment, net/Loans held for sale, net/Real estate owned, net (Level 3): The Company utilizes third-party appraisals of collateral in determining the fair value of the underlying asset, with unobservable inputs of appraised value adjustments made by management for qualitative factors such as economic conditions and estimated liquidation expenses. The Company estimates liquidation as a selling cost percentage in connection with the asset, which typically ranges from 1-8%.
Impact of Fair Value of Available-for-sale Securities on Other Comprehensive Income
The following table presents the impact of the Company’s AFS securities - debt securities on its Other Comprehensive Income (“OCI”) for the three and six months ended June 30, 2025 and 2024:
Three Months EndedSix Months Ended
June 30,June 30,
2025202420252024
(in thousands)(in thousands)
OCI from AFS securities – debt securities:
Unrealized gain on debt securities at beginning of period$— $191 $— $316 
Reversal of losses from unrealized to realized— (65)— (65)
Unrealized holding losses on AFS securities— (126)— (251)
Change in OCI from AFS debt securities— (191)— (316)
Balance at end of period$— $— $— $— 
As of June 30, 2025 and December 31, 2024, the Company held no debt securities.