Loans (Tables)

6 Months Ended

Jun. 30, 2025

Secured loan transactions for the three and six months ended June 30, 2025 are summarized in the following table ($ in thousands).


	2025									2025
	Three Months Ended June 30, 2025									Six Months Ended June 30, 2025
	Total			First Trust Deeds			Second Trust Deeds			Total			First Trust Deeds			Second Trust Deeds
Principal, beginning of period	$	48,652		$	43,060		$	5,592		$	53,475		$	46,945		$	6,530
Loans funded		11,021			10,050			971			15,002			14,031			971
Principal collected(1)		(14,488	)		(13,331	)		(1,157	)		(23,292	)		(21,197	)		(2,095	)
Loans transferred from held for sale		—			—			—			1,065			1,065			—
Loans sold to non-affiliate		—			—			—			(1,065	)		(1,065	)		—
Principal, end of period	$	45,185		$	39,779		$	5,406		$	45,185		$	39,779		$	5,406

(1)

Includes principal collected and held in trust at June 30, 2025 of $0, offset by principal collected and held in trust at December 31, 2024 of approximately $1 thousand which was disbursed to the company in January 2025.

Secured Loans Characteristics

Secured loans had the characteristics presented in the following table ($ in thousands).


	June 30,			December 31,
	2025			2024
Number of secured loans		29			36
First trust deeds		23			27
Second trust deeds		6			9

Secured loans – principal	$	45,185		$	53,475
First trust deeds	$	39,779		$	46,945
Second trust deeds	$	5,406		$	6,530

Secured loans – lowest interest rate (fixed)		7.8	%		7.8	%
Secured loans – highest interest rate (fixed)		12.5	%		12.5	%

Average secured loan – principal	$	1,558		$	1,485
Average principal as percent of total principal		3.4	%		2.8	%
Average principal as percent of members’ and manager’s capital, net		2.5	%		2.3	%
Average principal as percent of total assets		2.6	%		2.2	%

Largest secured loan – principal	$	7,400		$	8,106
Largest principal as percent of total principal		16.4	%		15.2	%
Largest principal as percent of members’ and manager’s capital, net		11.7	%		12.4	%
Largest principal as percent of total assets		12.2	%		12.1	%

Smallest secured loan – principal	$	200		$	185
Smallest principal as percent of total principal		0.4	%		0.3	%
Smallest principal as percent of members’ and manager’s capital, net		0.3	%		0.3	%
Smallest principal as percent of total assets		0.3	%		0.3	%

Number of California counties where security is located		12			13
Largest percentage of principal in one California county		23.4	%		19.7	%

Number of secured loans with prepaid interest		—			1
Prepaid interest	$	—		$	11

Secured Loans by Lien Position in the Collateral

At funding, secured loans had the lien positions presented in the following table ($ in thousands).


	June 30, 2025								December 31, 2024
	Loans		Principal			Percent			Loans		Principal			Percent
First trust deeds		23	$	39,779			88	%		27	$	46,945			88	%
Second trust deeds		6		5,406			12			9		6,530			12
Total principal, secured loans		29		45,185			100	%		36		53,475			100	%
Liens due other lenders at loan closing				15,812								19,442
Total debt			$	60,997							$	72,917
Appraised property value at loan closing			$	117,347							$	132,521
OLTV (weighted average)				55.6	%							58.9	%

Vintages Secured Loans, Principals Originated

Secured loans, principal by OLTV and lien position at June 30, 2025 are presented in the following table ($ in thousands).


	Secured loans, principal
LTV(2)	First trust deeds		Percent			Count		Second trust deeds		Percent			Count		Total principal		Percent
<40%	$	2,355		5.2	%		6	$	550		1.2	%		1	$	2,905		6.4	%
40-49%		6,450		14.3			2		1,900		4.2			1		8,350		18.5
50-59%		16,866		37.3			6		971		2.2			1		17,837		39.5
60-69%		6,721		14.9			5		—		0.0			0		6,721		14.9
Subtotal <70%		32,392		71.7			19		3,421		7.6			3		35,813		79.3

70-79%		7,387		16.3			4		1,985		4.4			3		9,372		20.7
Subtotal <80%		39,779		88.0			23		5,406		12.0			6		45,185		100.0

≥80%(3)		—		0.0			—		—		0.0			—		—		0.0

Total	$	39,779		88.0	%		23	$	5,406		12.0	%		6	$	45,185		100.0	%

(2)

LTV classifications in the table above are based on principal, advances and interest unpaid at June 30, 2025.

Secured Loans by Property Type of the Collateral

Secured loans summarized by property type are presented in the following table ($ in thousands).


	June 30, 2025							December 31, 2024
	Loans		Principal		Percent			Loans		Principal		Percent
Single family(3)		9	$	8,722		19	%		15	$	15,081		28	%
Commercial
Office		2		5,540		12			3		5,725		11
Retail		3		3,606		8			3		2,512		5
Industrial		5		11,661		26			5		10,463		20
Commercial – Other		5		12,710		29			5		14,972		27
Commercial Total		15		33,517		75			16		33,672		63
Multi-family		5		2,946		6			5		4,722		9
Total principal, secured loans		29	$	45,185		100	%		36	$	53,475		100	%

Single family includes 1-4 unit residential buildings, condominium units, townhouses and condominium complexes. At June 30, 2025, single family consists of six loans with an aggregate principal of approximately $7.5 million that are owner occupied and three loans with an aggregate principal of approximately $1.3 million that are non-owner occupied. At December 31, 2024, single family consisted of eight loans with an aggregate principal of approximately $7.3 million that are owner occupied and seven loans with an aggregate principal of approximately $7.7 million that are non-owner occupied.

Secured Loans Distributed Principal within California

The distribution of secured loans within California by counties – and for one loan secured by a property in Illinois – is presented in the following table ($ in thousands).


	June 30, 2025					December 31, 2024
	Principal		Percent			Principal		Percent
San Francisco Bay Area(4)
San Francisco	$	2,398		5.3	%	$	8,377		15.7	%
San Mateo		5,455		12.1			8,305		15.5
Santa Clara		6,542		14.5			10,074		18.8
Alameda		6,372		14.1			2,021		3.8
Contra Costa		319		0.7			1,220		2.3
Napa		634		1.4			636		1.2
Solano		—		0.0			185		0.3
Marin		400		0.9			400		0.8
		22,120		49.0			31,218		58.4
Other Northern California
Butte		—		0.0			1,203		2.2
Santa Cruz		1,410		3.1			—		0.0
		1,410		3.1			1,203		2.2
Northern California total		23,530		52.1			32,421		60.6

Southern California Coastal
Los Angeles		10,570		23.4			10,533		19.7
Orange		800		1.8			1,675		3.1
San Diego		8,144		18.0			6,946		13.0
		19,514		43.2			19,154		35.8
Other Southern California
Riverside		1,900		4.2			1,900		3.6
		1,900		4.2			1,900		3.6
Southern California total		21,414		47.4			21,054		39.4
California total		44,944		99.5			53,475		100.0
Illinois		241		0.5			—		0.0
Total principal, secured loans	$	45,185		100.0	%	$	53,475		100.0	%

(4)

Includes Silicon Valley

Secured Loans Principal Scheduled Maturities

Secured loans scheduled to mature in periods as of and after June 30, 2025, are presented in the following table ($ in thousands).


	First Trust Deeds				Second Trust Deeds				Total
	Loans		Principal		Loans		Principal		Loans		Principal		Percent
2025		3	$	2,760		2	$	1,175		5	$	3,935		9	%
2026		7		14,509		1		971		8		15,480		33
2027		4		8,236		—		—		4		8,236		18
2028		1		241		—		—		1		241		1
2029		2		5,244		—		—		2		5,244		12
Thereafter		4		3,215		—		—		4		3,215		7
Total scheduled maturities		21		34,205		3		2,146		24		36,351		80
Matured(5)		2		5,574		3		3,260		5		8,834		20
Total principal, secured loans		23	$	39,779		6	$	5,406		29	$	45,185		100	%

See Delinquency/Secured loans with payments in arrears below for additional information on matured loans.

Past Due Financing Receivables

Secured loans principal summarized by payment-delinquency status are presented in the following table ($ in thousands).


	June 30, 2025				December 31, 2024
	Loans		Principal		Loans		Principal
Current		21	$	33,563		30	$	42,309
Past Due
30-89 days		2		2,742		3		4,476
90-179 days		1		600		—		—
180 or more days		5		8,280		3		6,690
Total past due		8		11,622		6		11,166
Total principal, secured loans		29	$	45,185		36	$	53,475

Secured Loans by LTV and Line Positions

Secured loans with payments in arrears (eight loans), principal by OLTV and lien position at June 30, 2025 are presented in the following table ($ in thousands).


	Secured loans with payments in arrears, principal
LTV(7)	First trust deeds		Percent(8)			Second trust deeds		Percent(8)			Total principal		Percent(8)
<40%	$	—		0.0	%	$	—		0.0	%	$	—		0.0	%
40-49%		—		0.0			1,900		4.2			1,900		4.2
50-59%		842		1.9			—		0.0			842		1.9
60-69%		990		2.2			—		0.0			990		2.2
Subtotal <70%		1,832		4.1			1,900		4.2			3,732		8.3

70-79%		6,530		14.5			1,360	3				7,890		17.5
Subtotal <80%		8,362		18.6			3,260		7.2			11,622		25.8

≥80%		—		0.0			—		0.0			—		0.0

Total	$	8,362		18.6	%	$	3,260		7.2	%	$	11,622		25.8	%

(7)

LTV classifications in the table above are based on principal, advances and interest unpaid at June 30, 2025.

(8)

Percent of total principal, secured loans ($45.2 million) at June 30, 2025.

Payments in Arrears Past Due Financing Receivables

Payments in arrears for secured loans at June 30, 2025 are presented in the following tables ($ in thousands).


	Loans				Principal				Interest(9)
At June 30, 2025	Past maturity		Monthly payments		Past maturity		Monthly payments		Past maturity		Monthly payments		Total payments in arrears
Past due
30-89 days (1-3 payments)		1		1	$	1,900	$	—	$	—	$	7	$	1,907
90-179 days (4-6 payments)		1		—		600		—		—		—		600
180 or more days (more than 6 payments)		3		2		6,334		5		534		102		6,975
Total past due		5		3	$	8,834	$	5	$	534	$	109	$	9,482

(9)

June 2025 interest is due July 1, 2025 and is not included in the payments in arrears at June 30, 2025.

One loan included above was delinquent on monthly payments, with a principal of approximately $842 thousand having been paid off in full.

Matured Loans by LTV and Line Positions

Matured loans, principal by OLTV and lien position at June 30, 2025 are presented in the following table ($ in thousands).


	Secured loans past maturity, principal
LTV(10)	First trust deeds		Percent(11)			Second trust deeds		Percent(11)			Total principal		Percent(11)
<40%	$	—		0.0	%	$	—		0.0	%	$	—		0.0	%
40-49%		—		0.0			1,900		4.2			1,900		4.2
50-59%		—		0.0			—		0.0			—		0.0
60-69%		—		0.0			—		0.0			—		0.0
Subtotal <70%		—		0.0			1,900		4.2			1,900		4.2

70-79%		5,574		12.3			1,360		3.0			6,934		15.3
Subtotal <80%		5,574		12.3			3,260		7.2			8,834		19.5

≥80%		—		0.0			—		0.0			—		0.0

Total	$	5,574		12.3	%	$	3,260		7.2	%	$	8,834		19.5	%

(10)

LTV classifications in the table above are based on principal, advances and interest unpaid at June 30, 2025.

(11)

Percent of total principal of secured loans (totaling $45.2 million) at June 30, 2025.

Secured Loans in Non-Accrual Status

Secured loans in non-accrual status are summarized in the following table ($ in thousands).


	June 30, 2025		December 31, 2024
Number of loans		3		3
Principal	$	6,885	$	6,887
Advances		43		23
Accrued interest(12)		309		316
Total recorded investment	$	7,237	$	7,226
Foregone interest	$	348	$	116

(12)

Accrued interest in the table above is the amount of interest accrued prior to the loan being placed on non-accrual status, net of
any payments received while in non-accrual status. Interest income of $41 thousand was recognized for loans in non-accrual status in the six months ended June 30, 2025.

Activity in Allowance for Loan Losses

Activity in the allowance for credit losses for the six months ended June 30 are presented in the following table ($ in thousands).


	2025						2024
	Principal and Advances		Interest		Total		Principal and Advances		Interest		Total
Balance, January 1	$	150	$	60	$	210	$	60	$	60	$	120
Provision for loan losses		110		—		110		—		—		—
Charge-offs		—		—		—		—		—		—
Balance, June 30	$	260	$	60	$	320	$	60	$	60	$	120

Secured Loans Scheduled Maturities Loan Principal and LTV

Secured loans count, principal and weighted average OLTV at June 30, 2025 and the projected year-end count, principal and weighted average OLTV based on contractual maturities (by lien position) are presented in the following table ($ in thousands).


								First Trust Deeds							Second Trust Deeds
	Loans		Principal		OLTV			Loans		Principal		OLTV			Loans		Principal		OLTV
June 30, 2025		29	$	45,185		55.6	%		23	$	39,779		55.9	%		6	$	5,406		53.9	%

December 31,
2025		19		32,416		53.7			18		31,445		53.8			1		971		52.5
2026		11		16,936		50.3			11		16,936		50.3			—		—		0.0
2027		7		8,700		50.7			7		8,700		50.7			—		—		0.0
2028		6		8,459		52.0			6		8,459		52.0			—		—		0.0
2029		4		3,215		44.3			4		3,215		44.3			—		—		0.0
2030		2		595		23.5			2		595		23.5			—		—		0.0
2033		1		200		33.9			1		200		33.9			—		—		0.0
2035		—		—		0.0			—		—		0.0			—		—		0.0