| Schedule of carrying amounts and estimated fair values of the financial instruments |
The following tables show the carrying amounts and estimated fair values of the Company’s financial instruments (dollars in thousands): | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements at December 31, 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 | | $ | 11,564 | | $ | 11,564 | | $ | — | | $ | — | | $ | 11,564 | Certificates of deposit | | | 1,519 | | | — | | | 1,524 | | | — | | | 1,524 | Loans, net | | | 90,827 | | | — | | | — | | | 89,013 | | | 89,013 | Investments in joint venture | | | 875 | | | — | | | — | | | 875 | | | 875 | Other investments | | | 1,098 | | | — | | | — | | | 1,098 | | | 1,098 | Accrued interest receivable | | | 439 | | | — | | | — | | | 439 | | | 439 | Servicing assets | | | 161 | | | — | | | — | | | 161 | | | 161 | FINANCIAL LIABILITIES: | | | | | | | | | | | | | | | | Other secured borrowings | | $ | 6 | | $ | — | | $ | — | | $ | 6 | | $ | 6 | Debt certificates payable | | | 94,438 | | | — | | | — | | | 93,880 | | | 93,880 | Other financial liabilities | | | 108 | | | — | | | — | | | 108 | | | 108 |
| | | | | | | | | | | | | | | | | | | | | 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 December 31, 2025: | | | | | | | | | | | | | Collateral-dependent loans (net of allowance and discount) | | $ | — | | $ | — | | $ | 8,474 | | $ | 8,474 | Investments in joint venture | | | — | | | — | | | 875 | | | 875 | Other investments | | | — | | | — | | | 1,098 | | | 1,098 | Total | | $ | — | | $ | — | | $ | 10,447 | | $ | 10,447 | | | | | | | | | | | | | | Assets at December 31, 2024: | | | | | | | | | | | | | Collateral-dependent loans (net of allowance and discount) | | $ | — | | $ | — | | $ | 9,535 | | $ | 9,535 | Investments in joint venture | | | — | | | — | | | 873 | | | 873 | Other investments | | | — | | | — | | | 1,082 | | | 1,082 | Foreclosed assets (net of allowance) | | | — | | | — | | | 301 | | | 301 | Total | | $ | — | | $ | — | | $ | 11,791 | | $ | 11,791 |
|
| 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): | | | | | | | | | | December 31, 2025 | Assets | | Fair Value
(in thousands) | | Valuation
Techniques | | Unobservable
Input | | Range
(Weighted Average) | Impaired loans | | $ | 8,474 | | Discounted appraised value | | Selling cost / Estimated market decrease | | 10% (10%) | Investments in joint venture | | | 875 | | Internal evaluations | | Estimated future market value | | 0% (0%) | Other investments | | | 1,098 | | Internal evaluations | | Indications of non-performance by insurance companies | | 0% (0%) |
| | | | | | | | | | 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%) | 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%) |
|