| Schedule of company's assets at fair value |
The following table illustrates assets and liabilities measured at fair value on a recurring basis: | | | | | | | | | | | | | | | | | Fair Value Measurement | | (in thousands) | | June 30, 2025 | | December 31, 2024 | | Level 1 | | | | | | Investment securities | | $ | 1,039 | | | $ | 1,517 | | | Level 3 | | | | | | Loans held for sale, net | | 8,830 | | | 10,970 | |
The following table illustrates assets and liabilities measured at fair value on a nonrecurring basis: | | | | | | | | | | | | | | | | | Fair Value Measurement | | (in thousands) | | June 30, 2025 | | December 31, 2024 | | Level 3 | | | | | | Individually evaluated loans, net of allowance for credit losses | | $ | 83,564 | | | $ | 80,757 | | | Real estate owned, net | | 18,626 | | | 18,574 | |
|
| Schedule of company's assets illustrates financial instruments measured at fair value on a nonrecurring basis |
Carrying amounts and fair values of financial instruments at June 30, 2025 and December 31, 2024: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Carrying Amount | | Fair Value Measurement | | (in thousands) | | June 30, 2025 | | December 31, 2024 | | June 30, 2025 | | December 31, 2024 | | | | | | | | | | | Level 1 | | | | | | | | | | Cash and cash equivalents | | $ | 22,474 | | | $ | 18,066 | | | $ | 22,474 | | | $ | 18,066 | | | Notes payable (listed) – fixed rate debt | | 230,239 | | | 230,239 | | | 195,598 | | | 194,810 | | | Investment securities | | 1,039 | | | 1,517 | | | 1,039 | | | 1,517 | | | Level 2 | | | | | | | | | | Lines of credit and repurchase agreements – variable rate debt | | 40,680 | | | 73,708 | | | 40,680 | | | 73,708 | | | Level 3 | | | | | | | | | | Loans held for investment, net | | 364,463 | | | 356,571 | | | 364,463 | | | 356,571 | | | Loans held for sale, net | | 8,830 | | | 10,970 | | | 8,830 | | | 10,970 | | | Interest and fees receivable and due from borrowers | | 10,782 | | | 8,918 | | | 10,782 | | | 8,918 | | | Investments in limited liability companies | | 48,710 | | | 53,942 | | | 48,710 | | | 53,942 | | | Advances from borrowers | | 4,146 | | | 4,047 | | | 4,146 | | | 4,047 | | | Mortgage payable | | 960 | | | 1,002 | | | 960 | | | 1,002 | |
|
| Schedule of company's available-for-sale (AFS) securities and other comprehensive income (OCI) |
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 Ended | | Six Months Ended | | June 30, | | June 30, | | 2025 | | 2024 | | 2025 | | 2024 | | | | | | | | | | (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 | $ | — | | | $ | — | | | $ | — | | | $ | — | |
|