Loans Receivable and Allowance for Expected Credit Losses (Tables)
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6 Months Ended |
Jun. 30, 2025 |
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| Loans Receivable and Allowance for Expected Credit Losses |
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| Schedule of summary of company's loans receivable |
The table below is a summary of the Company’s loans receivable (dollars in thousands): | | | | | | | | | June 30, | | December 31, | | | 2025 | | 2024 | Non-profit commercial loans: | | | | | | | Real estate secured | | $ | 81,882 | | $ | 83,912 | Unsecured | | | 35 | | | 48 | Total non-profit commercial loans: | | | 81,917 | | | 83,960 | For-profit commercial loans: | | | | | | | Real estate secured | | | 10,616 | | | 10,678 | Total loans | | | 92,535 | | | 94,638 | Deferred loan fees, net | | | (96) | | | (100) | Loan discount | | | (226) | | | (211) | Allowance for expected credit losses | | | (1,150) | | | (1,156) | Loans, net | | $ | 91,063 | | $ | 93,171 |
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| Schedule of changes in the allowance for expected credit losses |
The following table shows the changes in the allowance for expected credit losses for the six months ended June 30, 2025 and the year ended December 31, 2024 (dollars in thousands): | | | | | | | | | | | | Six months ended | | | June 30, 2025 | Segment: | | Non-profit Commercial | | For-profit Commercial | | Total | Balance, beginning of period | | $ | 1,119 | | $ | 37 | | $ | 1,156 | Provision (credit) for expected credit loss | | | 1 | | | (8) | | | (7) | Charge-offs | | | — | | | — | | | — | Recoveries | | | — | | | — | | | — | Balance, end of period | | $ | 1,121 | | $ | 29 | | $ | 1,150 |
| | | | | | | | | | | | Year ended | | | December 31, 2024 | Segment: | | Non-profit Commercial | | For-profit Commercial | | Total | Balance, beginning of period | | $ | 1,471 | | $ | 30 | | $ | 1,501 | Adjustment related to implementation of CECL model | | | — | | | — | | | — | Provision (credit) for expected credit loss | | | (133) | | | 7 | | | (126) | Charge-offs | | | (219) | | | — | | | (219) | Recoveries | | | — | | | — | | | — | Balance, end of period | | $ | 1,119 | | $ | 37 | | $ | 1,156 |
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| Schedule of loans and allowance for expected credit losses by impairment methodology |
The table below presents loans by portfolio segment and the related allowance for expected credit losses. In addition, the table segregates loans and the allowance for expected credit losses by impairment methodology (dollars in thousands): | | | | | | | | | Loans and Allowance for
Expected Credit Losses (by segment) | | | As of | | | June 30, 2025 | | December 31, 2024 | Non-profit Commercial Loans: | | | | | | | Individually evaluated for impairment | | $ | 14,807 | | $ | 14,855 | Collectively evaluated for impairment | | | 67,110 | | | 69,105 | Total Non-profit Commercial Loans | | | 81,917 | | | 83,960 | For-profit Commercial Loans: | | | | | | | Individually evaluated for impairment | | | — | | | — | Collectively evaluated for impairment | | | 10,616 | | | 10,678 | Total For-profit Commercial Loans | | | 10,616 | | | 10,678 | Balance | | $ | 92,535 | | $ | 94,638 | | | | | | | | Allowance for expected credit losses: | | | | | | | Non-profit Commercial Loans: | | | | | | | Individually evaluated for impairment | | $ | 419 | | $ | 463 | Collectively evaluated for impairment | | | 702 | | | 656 | Total Non-profit Commercial Loan Allowance | | | 1,121 | | | 1,119 | For-profit Commercial Loans: | | | | | | | Individually evaluated for impairment | | | — | | | — | Collectively evaluated for impairment | | | 29 | | | 37 | Total For-profit Commercial Loan Allowance | | | 29 | | | 37 | Balance | | $ | 1,150 | | $ | 1,156 |
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| Schedule of loan portfolio credit quality indicators by class |
The following tables summarize the credit quality indicators by loan class (dollars in thousands): | | | | | | | | | | | | | | | | | | | | | | Credit Quality Indicators (by class) | As of June 30, 2025 | | | Pass | | Watch | | Special Mention | | Substandard | | Doubtful | | Loss | | Total | Non-profit Commercial Loans | | | | | | | | | | | | | | | | | | | | | | Wholly Owned First Amortizing | | $ | 41,974 | | $ | 21,810 | | $ | 5,408 | | $ | 8,250 | | $ | — | | $ | — | | $ | 77,442 | Wholly Owned Other Amortizing | | | 1,484 | | | — | | | — | | | 1,357 | | | — | | | — | | | 2,841 | Wholly Owned Unsecured Amortizing | | | 16 | | | 26 | | | — | | | — | | | — | | | — | | | 42 | Wholly Owned Unsecured LOC | | | 9 | | | — | | | — | | | — | | | — | | | — | | | 9 | Wholly Owned Construction | | | 377 | | | — | | | — | | | — | | | — | | | — | | | 377 | Participation First | | | 1,206 | | | — | | | — | | | — | | | — | | | — | | | 1,206 | Total Non-profit Commercial Loans | | | 45,066 | | | 21,836 | | | 5,408 | | | 9,607 | | | — | | | — | | | 81,917 | For-profit Commercial Loans | | | | | | | | | | | | | | | | | | | | | — | Wholly Owned First Amortizing | | | 6,702 | | | 812 | | | — | | | — | | | — | | | — | | | 7,514 | Participation First | | | 1,487 | | | 130 | | | — | | | — | | | — | | | — | | | 1,617 | Participation Construction | | | 1,485 | | | — | | | — | | | — | | | — | | | — | | | 1,485 | Total For-profit Commercial Loans | | | 9,674 | | | 942 | | | — | | | — | | | — | | | — | | | 10,616 | Total Loans | | $ | 54,740 | | $ | 22,778 | | $ | 5,408 | | $ | 9,607 | | $ | — | | $ | — | | $ | 92,535 |
| | | | | | | | | | | | | | | | | | | | | | Credit Quality Indicators (by class) | As of December 31, 2024 | | | Pass | | Watch | | Special Mention | | Substandard | | Doubtful | | Loss | | Total | Non-profit Commercial Loans | | | | | | | | | | | | | | | | | | | | | | Wholly Owned First Amortizing | | $ | 41,686 | | $ | 24,565 | | $ | 5,408 | | $ | 8,042 | | $ | — | | $ | — | | $ | 79,701 | Wholly Owned Other Amortizing | | | 1,357 | | | — | | | — | | | 1,405 | | | — | | | — | | | 2,762 | Wholly Owned Unsecured Amortizing | | | 19 | | | 27 | | | — | | | — | | | — | | | — | | | 46 | Wholly Owned Unsecured LOC | | | 22 | | | — | | | — | | | — | | | — | | | — | | | 22 | Wholly Owned Construction | | | 188 | | | — | | | — | | | — | | | — | | | — | | | 188 | Participation First | | | 1,241 | | | — | | | — | | | — | | | — | | | — | | | 1,241 | Total Non-profit Commercial Loans | | | 44,513 | | | 24,592 | | | 5,408 | | | 9,447 | | | — | | | — | | | 83,960 | For-profit Commercial Loans | | | | | | | | | | | | | | | | | | | | | | Wholly Owned First Amortizing | | | 6,741 | | | 816 | | | — | | | — | | | — | | | — | | | 7,557 | Participation First | | | 1,497 | | | 130 | | | — | | | — | | | — | | | — | | | 1,627 | Participation Construction | | | 1,494 | | | — | | | — | | | — | | | — | | | — | | | 1,494 | Total For-profit Commercial Loans | | | 9,732 | | | 946 | | | — | | | — | | | — | | | — | | | 10,678 | Total Loans | | $ | 54,245 | | $ | 25,538 | | $ | 5,408 | | $ | 9,447 | | $ | — | | $ | — | | $ | 94,638 |
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| Schedule of age analysis of past due loans by class |
The following table sets forth certain information with respect to the Company’s loan portfolio delinquencies by loan class and amount (dollars in thousands): | | | | | | | | | | | | | | | | | | | | | | Age Analysis of Past Due Loans (by class) | As of June 30, 2025 | | | 30-59 Days Past Due | | 60-89 Days Past Due | | Greater Than 90 Days | | Total Past
Due | | Current | | Total Loans | | Recorded
Investment 90
Days or More
and Still
Accruing | Non-profit Commercial Loans | | | | | | | | | | | | | | | | | | | | | | Wholly Owned First Amortizing | | $ | 2,156 | | $ | 6,063 | | $ | — | | $ | 8,219 | | $ | 69,223 | | $ | 77,442 | | $ | — | Wholly Owned Other Amortizing | | | — | | | — | | | — | | | — | | | 2,841 | | | 2,841 | | | — | Wholly Owned Unsecured Amortizing | | | — | | | — | | | — | | | — | | | 42 | | | 42 | | | — | Wholly Owned Unsecured LOC | | | — | | | — | | | — | | | — | | | 9 | | | 9 | | | — | Participation First | | | — | | | — | | | — | | | — | | | 1,206 | | | 1,206 | | | — | Total Non-profit Commercial Loans | | | 2,156 | | | 6,063 | | | — | | | 8,219 | | | 73,698 | | | 81,917 | | | — | For-profit Commercial Loans | | | | | | | | | | | | | | | | | | | | | | Wholly Owned First Amortizing | | | — | | | — | | | — | | | — | | | 7,514 | | | 7,514 | | | — | Participation First | | | — | | | — | | | — | | | — | | | 1,617 | | | 1,617 | | | — | Participation Construction | | | — | | | — | | | — | | | — | | | 1,485 | | | 1,485 | | | — | Total For-profit Commercial Loans | | | — | | | — | | | — | | | — | | | 10,616 | | | 10,616 | | | — | Total Loans | | $ | 2,156 | | $ | 6,063 | | $ | — | | $ | 8,219 | | $ | 84,314 | | $ | 92,535 | | $ | — |
| | | | | | | | | | | | | | | | | | | | | | Age Analysis of Past Due Loans (by class) | As of December 31, 2024 | | | 30-59
Days Past Due | | 60-89 Days Past Due | | Greater Than 90 Days | | Total Past
Due | | Current | | Total Loans | | Recorded
Investment 90
Days or More
and Still
Accruing | Non-profit Commercial Loans | | | | | | | | | | | | | | | | | | | | | | Wholly Owned First Amortizing | | $ | 6,745 | | $ | 1,215 | | $ | 910 | | $ | 8,870 | | $ | 70,831 | | $ | 79,701 | | $ | — | Wholly Owned Other Amortizing | | | — | | | — | | | — | | | — | | | 2,762 | | | 2,762 | | | — | Wholly Owned Unsecured Amortizing | | | — | | | — | | | — | | | — | | | 46 | | | 46 | | | — | Wholly Owned Unsecured LOC | | | — | | | — | | | — | | | — | | | 22 | | | 22 | | | — | Wholly Owned Construction | | | — | | | — | | | — | | | — | | | 188 | | | 188 | | | — | Participation First | | | — | | | — | | | — | | | — | | | 1,241 | | | 1,241 | | | — | Total Non-profit Commercial Loans | | | 6,745 | | | 1,215 | | | 910 | | | 8,870 | | | 75,090 | | | 83,960 | | | — | For-profit Commercial Loans | | | | | | | | | | | | | | | | | | | | | | Participation First | | | — | | | — | | | — | | | — | | | 1,627 | | | 1,627 | | | — | Participation Construction | | | — | | | — | | | — | | | — | | | 1,494 | | | 1,494 | | | — | Total For-profit Commercial Loans | | | — | | | — | | | — | | | — | | | 10,678 | | | 10,678 | | | — | Total Loans | | $ | 6,745 | | $ | 1,215 | | $ | 910 | | $ | 8,870 | | $ | 85,768 | | $ | 94,638 | | $ | — |
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| Schedule of impaired loans by class |
The tables below represent the breakdown by class of the non-profit loan portfolio segment only (dollars in thousands): | | | | | | | | | As of | | As of | | | June 30, | | December 31, | Impaired Non-profit commercial Loans (by class) | | 2025 | | 2024 | Wholly Owned First Amortizing | | | | | | | Recorded investment with specific allowance | | $ | 7,363 | | $ | 7,364 | Recorded with no specific allowance | | | 11,551 | | | 12,777 | Total recorded investment | | $ | 18,914 | | $ | 20,141 | Unpaid principal balance | | $ | 19,386 | | $ | 20,675 | Wholly Owned Other Amortizing | | | | | | | Recorded investment with specific allowance | | $ | 1,357 | | $ | 1,405 | Recorded with no specific allowance | | | — | | | — | Total recorded investment | | $ | 1,357 | | $ | 1,405 | Unpaid principal balance | | $ | 1,685 | | $ | 1,685 | Total Impaired Loans | | | | | | | Recorded investment with specific allowance | | $ | 8,720 | | $ | 8,769 | Recorded with no specific allowance | | | 11,551 | | | 12,777 | Total recorded investment | | $ | 20,271 | | $ | 21,546 | Unpaid principal balance | | $ | 21,071 | | $ | 22,360 |
| | | | | | | | | | | | | | | For the three months ended | | For the six months ended | | | June 30, | | June 30, | | June 30, | | June 30, | Impaired Non-profit Commercial Loans (by class) | | 2025 | | 2024 | | 2025 | | 2024 | Wholly Owned First Amortizing | | | | | | | | | | | | | Average recorded investment | | $ | 18,492 | | $ | 22,127 | | $ | 22,028 | | $ | 22,028 | Interest income recognized | | | 1,029 | | | 363 | | | 1,029 | | | 737 | Wholly Owned Other Amortizing | | | | | | | | | | | | | Average recorded investment | | | 1,073 | | | 1,478 | | | 1,029 | | | 773 | Interest income recognized | | | — | | | — | | | — | | | — | Total Impaired Loans | | | | | | | | | | | | | Average recorded investment | | $ | 19,565 | | $ | 23,605 | | $ | 22,801 | | $ | 22,801 | Interest income recognized | | | 1,029 | | | 363 | | | 1,029 | | | 737 |
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| Schedule of loans on non-accrual status by class |
A summary of nonaccrual loans by loan class is as follows (dollars in thousands): | | | | | | | Loans on Nonaccrual Status (by class) | | | as of | | | June 30, 2025 | | December 31, 2024 | Non-profit Commercial Loans: | | | | | | | Wholly Owned First Amortizing | | $ | 9,242 | | $ | 9,882 | Wholly Owned Other Amortizing | | | 1,357 | | | 1,502 | Total | | $ | 10,599 | | $ | 11,384 |
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| Schedule of loan modifications by class |
A summary of loans the Company modified during the three- and six-month periods ended June 30, 2025 and 2024 is as follows (dollars in thousands): | | | | | | | | | | | | | Loan Modifications (by class) | | | For the three months ended | | For the six months ended | | | June 30, 2025 | | June 30, 2024 | | June 30, 2025 | | June 30, 2024 | Non-profit Commercial Loans: | | | | | | | | | | | | | Wholly Owned First Amortizing | | | | | | | | | | | | | Number of Loans | | | — | | | 1 | | | 2 | | | 1 | Pre-Modification Outstanding Recorded Investment | | $ | — | | $ | 245 | | $ | 1,784 | | $ | 245 | Post-Modification Outstanding Recorded Investment | | | — | | | 245 | | | 1,784 | | | 245 | Recorded Investment At Period End | | | — | | | 245 | | | 1,780 | | | 245 | Total | | | | | | | | | | | | | Number of Loans | | | — | | | 1 | | | 2 | | | 1 | Pre-Modification Outstanding Recorded Investment | | $ | — | | $ | 245 | | $ | 1,784 | | $ | 245 | Post-Modification Outstanding Recorded Investment | | | — | | | 245 | | | 1,784 | | | 245 | Recorded Investment At Period End | | | — | | | 245 | | | 1,780 | | | 245 |
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