v3.25.2
Loans and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Schedule of accounts, notes, loans and financing receivable
The below table represents the Company's loans held for sale as of June 30, 2025:
Balance as of December 31, 2024Transfers inChange in valuation allowanceTransfers out, netBalance as of
June 30, 2025
(in thousands)
Loans held for sale, net$10,970 $— $1,047 $(3,187)$8,830 
Total loans held for sale, net$10,970 $— $1,047 $(3,187)$8,830 
Schedule of the company's loan portfolio by the past due status The below table summarizes the Company’s loan portfolio by the past due status:
Loans held for investment
(in thousands)Current30-59 days past due60-89 days past dueGreater than 90 daysTotal
As of June 30, 2025$257,780 $6,065 $1,295 $119,599 $384,739 
As of March 31, 2025$220,538 $37,617 $2,114 $107,591 $367,860 
As of December 31, 2024$223,513 $49,460 $16,936 $87,082 $376,991 
Schedule of summarizes the activity in the loans held for investment allowance for credit losses by geographic location
Presented below is the Company’s loans held for investment portfolio by geographical location as of June 30, 2025 and December 31, 2024:
June 30, 2025December 31, 2024
(in thousands)Carrying Value% of PortfolioCarrying Value% of Portfolio
New England$173,756 45.2 %$179,421 47.6 %
Mid-Atlantic46,288 12.0 %42,304 11.2 %
South164,695 42.8 %151,165 40.1 %
West— — %4,101 1.1 %
Total$384,739 100.0 %$376,991 100.0 %
The following table summarizes the activity in the allowance for credit losses by geographic location with respect to loans held for investment for the three months ended June 30, 2025:
Allowance for credit losses as of March 31, 2025Provision for
(recovery of) credit losses
related to loans		Reclassification of loans held for sale to loans held for investmentCharge-offsAllowance for credit losses
as of June 30,
2025
(in thousands)
New England$12,878 $(5,704)$3,292 $— $10,466 
Mid-Atlantic1,864 2,658 — (466)4,056 
South1,460 (123)— (47)1,290 
West1,920 (87)— — 1,833 
Total$18,122 $(3,256)$3,292 $(513)$17,645 
The following table summarizes the activity in the allowance for credit losses by geographic location with respect to loans held for investment for the six months ended June 30, 2025:
Allowance for credit losses as of
December 31, 2024		Provision for
(recovery of) credit losses
related to loans		Reclassification of loans held for sale to loans held for investmentCharge-offsAllowance for credit losses
as of June 30,
2025
(in thousands)
New England$12,844 $(5,670)$3,292 $— $10,466 
Mid-Atlantic1,857 2,665 — (466)4,056 
South1,802 156 — (668)1,290 
West1,967 (134)— — 1,833 
Total$18,470 $(2,983)$3,292 $(1,134)$17,645 
Schedule of allocate the carrying value of the Company's loan portfolio based on credit quality indicators in assessing estimated credit losses and vintage of origination at the dates indicated
The following tables allocate the carrying value of the Company’s loan portfolio based on credit quality indicators in assessing estimated credit losses and vintage of origination at the dates indicated:
June 30, 2025
Year Originated (1)
FICO Score (2)(in thousands)
Carrying
Value		20252024202320222021Prior
Loans held for investment:
Under 500$300 $— $300 $— $— $— $— 
501-5502,860 — — — — 1,060 1,800 
551-6001,096 — 1,096 — — — — 
601-65026,474 2,336 7,066 1,163 1,795 7,447 6,667 
651-70058,286 1,783 3,609 6,861 12,799 31,891 1,343 
701-750152,735 18,443 6,696 38,858 15,625 72,138 975 
751-800134,228 24,943 23,847 39,735 24,841 20,862 — 
801-8508,760 2,534 — 1,541 4,685 — — 
Total$384,739 $50,039 $42,614 $88,158 $59,745 $133,398 $10,785 
December 31, 2024
Year Originated (1)
FICO Score (2)(in thousands)
Carrying
Value		20242023202220212020Prior
Loans held for investment:
Under 500$140 $140 $— $— $— $— $— 
501-5502,860 — — — 1,060 — 1,800 
551-6007,094 1,222 290 2,170 1,816 636 960 
601-65028,779 8,432 3,347 1,798 7,411 6,149 1,642 
651-70035,711 4,250 7,177 10,302 12,079 660 1,243 
701-750159,575 6,275 40,459 11,982 97,980 1,023 1,856 
751-800124,599 26,465 32,016 36,280 28,427 1,411 — 
801-85018,233 — 415 17,818 — — — 
Total$376,991 $46,784 $83,704 $80,350 $148,773 $9,879 $7,501 
_______________________________________________________________
(1)Represents the year of origination or amendment where the loan was subject to a full re-underwriting.
(2)The FICO Scores are calculated at the inception of the loan and are updated if the loan is modified or on an as needed basis.
Schedule of loan modifications during the period made to borrowers experiencing financial difficulty
The tables below present loan modifications during the periods indicated made to borrowers experiencing financial difficulty:
(in thousands)Three Months Ended June 30, 2025
Carrying Value% of Total
Carrying Value of
Loans held for investment, net		Financial Effect
Principal modification, with no term extension$14,042 3.5 %Unpaid interest/taxes/charges added to principal balance
Term extension$25,559 6.4 %
A weighted average of 7.7 months were added to the life of the loans
(in thousands)Three Months Ended June 30, 2024
Carrying Value% of Total
Carrying Value of
Loans held for investment, net		Financial Effect
Principal modification, with no term extension$3,408 0.7 %Unpaid interest/taxes/charges added to principal balance
Term extension$61,008 12.2 %
A weighted average of 12.0 months were added to the life of the loans
(in thousands)Six Months Ended June 30, 2025
Carrying Value% of Total
Carrying Value of
Loans held for investment, net		Financial Effect
Principal modification, with no term extension$14,042 3.5 %Unpaid interest/taxes/charges added to principal balance
Term extension$47,702 11.9 %
A weighted average of 7.4 months were added to the life of the loans
Six Months Ended June 30, 2024
Carrying Value% of Total
Carrying Value of
Loans held for investment, net		Financial Effect
Principal modification, with no term extension21,373 4.3 %Unpaid interest/taxes/charges added to principal balance
Term extension104,452 20.9 %
A weighted average of 10.5 months were added to the life of the loans
The table below presents the performance of loans that have been modified in the last 12 months to borrowers experiencing financial difficulty. Of the loans that were modified in the last 12 months to borrowers experiencing financial difficulty, none have defaulted during the period.
As of June 30, 2025
(in thousands)Current90-119 days past due120+ days past dueTotal
Principal modification, with no term extension$15,268 $— $— $15,268 
Term extension61,692 12,895 — 74,587 
Schedule of credit risk profile
The below table represents the financial statement line items that are impacted by the allowance for credit losses for the three months ended June 30, 2025:
Balance as of March 31, 2025Provision for (recovery of) credit
losses related to loans		Reclassification of loans held for sale to loans held for investmentCharge-offsBalance as of
June 30, 2025
(in thousands)
Loans held for investment$18,122 $(3,256)$3,292 $(513)$17,645 
Interest and fees receivable2,981 93 — — 3,074 
Due from borrower1,956 (55)— (225)1,676 
Unfunded commitments864 165 — — 1,029 
Real estate owned— 3,978 — (3,978)— 
Total allowance for credit losses$23,923 $925 $3,292 $(4,716)$23,424 
The below table represents the financial statement line items that are impacted by the allowance for credit losses for the six months ended June 30, 2025:
Balance as of December 31, 2024Provision for (recovery of) credit
losses related to loans		Reclassification of loans held for sale to loans held for investmentCharge-offsBalance as of
June 30, 2025
(in thousands)
Loans held for investment$18,470 $(2,983)$3,292 $(1,134)$17,645 
Interest and fees receivable3,133 (59)— — 3,074 
Due from borrower1,135 936 — (395)1,676 
Unfunded commitments924 105 — — 1,029 
Real estate owned— 3,978 — (3,978)— 
Total allowance for credit losses$23,662 $1,977 $3,292 $(5,507)$23,424 
Schedule of maturities of mortgage receivable
The following table presents charge-offs on loan principal by fiscal year of origination for the three months ended June 30, 2025:
20252024202320222021PriorTotal
(in thousands)
Current period charge-offs$— $— $— $— $513 $— $513 
Total$— $— $— $— $513 $— $513 
The following table presents charge-offs on loan principal by fiscal year of origination for the six months ended June 30, 2025:
20252024202320222021PriorTotal
(in thousands)
Current period charge-offs$— $134 $— $487 $513 $— $1,134 
Total$— $134 $— $487 $513 $— $1,134