Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2025

Fair Value Measurements

Schedule of carrying amounts and estimated fair values of the financial instruments

Additional information regarding the methods and assumptions used to estimate the fair value of the financial statements can be found in our Annual Report. The following tables show the carrying amounts and estimated fair values of the Company’s financial instruments (dollars in thousands):


					Fair Value Measurements at June 30, 2025 using
		Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Fair Value
FINANCIAL ASSETS:
Cash and restricted cash		$	11,677		$	11,677		$	—		$	—		$	11,677
Loans, net			91,063			—			—			88,673			88,673
Investment in joint venture			873			—			—			873			873
Other investments			1,096			—			—			1,096			1,096
Accrued interest receivable			424			—			—			424			424
Servicing assets			179			—			—			179			179
FINANCIAL LIABILITIES:
Other secured borrowings			6			—			—			6			6
Debt certificates payable			94,620			—			—			94,116			94,116
Other financial liabilities			123			—			—			123			123


					Fair Value Measurements at December 31, 2024 using
		Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Fair Value
FINANCIAL ASSETS:
Cash and restricted cash		$	10,771		$	10,771		$	—		$	—		$	10,771
Certificates of deposit			1,304			—			1,308			—			1,308
Loans, net			93,171			—			—			90,684			90,684
Investments in joint venture			873			—			—			873			873
Other investments			1,082			—			—			1,082			1,082
Accrued interest receivable			447			—			—			447			447
Servicing assets			177			—			—			177			177
FINANCIAL LIABILITIES:
Other secured borrowings			6		$	—		$	—		$	6		$	6
Debt certificates payable			95,073			—			—			94,031			94,031
Other financial liabilities			479			—			—			479			479

Schedule of fair value of assets measured on a nonrecurring basis

The following table presents the fair value of assets measured on a nonrecurring basis (dollars in thousands):


		Fair Value Measurements Using:
		Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total
Assets at June 30, 2025:
Collateral-dependent impaired loans (net of allowance and discount)		$	—		$	—		$	7,236		$	7,236
Discounted cash flow loans (net of allowance and discount)			—			—			7,105			7,105
Investment in joint venture			—			—			873			873
Other investments			—			—			1,096			1,096
Foreclosed assets (net of allowance)			—			—			301			301
Total		$	—		$	—		$	16,611		$	16,611

Assets at December 31, 2024:
Collateral-dependent impaired loans (net of allowance and discount)		$	—		$	—		$	9,535		$	9,535
Discounted cash flow loans (net of allowance and discount)			—			—			7,133			7,133
Investments in joint venture			—			—			873			873
Other investments			—			—			1,082			1,082
Foreclosed assets (net of allowance)			—			—			301			301
Total		$	—		$	—		$	18,924		$	18,924

Summary of valuation methodologies used to measure the fair value adjustments for Level 3 assets recorded at fair value on a nonrecurring basis

The table below summarizes the valuation methodologies used to measure the fair value adjustments for Level 3 assets recorded at fair value on a nonrecurring basis (dollars in thousands):


June 30, 2025
Assets		Fair Value (in thousands)			Valuation Techniques		Unobservable Input		Range (Weighted Average)
Collateral dependent loans		$	7,236		Discounted appraised value		Selling cost / Estimated market decrease		10% (10%)
Other impaired loans			7,105		Discounted future cash flows		Discount rate		4% (4%)
Investment in joint venture			873		Internal evaluations		Estimated future market value		0% (0%)
Other investments			1,096		Internal evaluations		Indications of non-performance by insurance companies		0% (0%)
Foreclosed Assets			301		Internal evaluations		Selling cost		6% (6%)


December 31, 2024
Assets		Fair Value (in thousands)			Valuation Techniques		Unobservable Input		Range (Weighted Average)
Impaired loans		$	9,535		Discounted appraised value		Selling cost / Estimated market decrease		10% (10%)
Other impaired loans			7,133		Discounted future cash flows		Discount rate		4% (4%)
Investments in joint venture			873		Internal evaluations		Estimated future market value		0% (0%)
Other investments			1,082		Internal evaluations		Indications of non-performance by insurance companies		0% (0%)
Foreclosed assets			301		Internal evaluations		Selling cost		6% (6%)