v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting
3. Segment Reporting

 

Effective January 1, 2026, the Company changed their reportable segments to a single reportable segment. Following the sale of 339 Justabout Land Company on August 6, 2025, which was a reportable segment of the Company, the Company no longer has any separately reportable segments.

 

The Company’s one reportable segment generates income principally from interest on loans, as well as from fees charged in connection with various lending services. The chief operating decision maker (“CODM”) is the Chief Executive Officer, who for the purposes of assessing performance, making operating decisions, and allocating Company resources, regularly reviews net income as reported in the consolidated statements of operations. The level of disaggregation and amounts of significant segment income and expenses, such as interest and fee income, interest expense, provision for credit losses, salaries and employee benefits expense and other items, that are regularly provided to the CODM are the same as those presented in the accompanying consolidated statements of operations. Likewise, the measure of segment assets is reported on the accompanying consolidated balance sheets as total assets.

 

Information about reportable segments and reconciliations of such information to the Interim Consolidated Financial Statements are described below.

 

 

Reconciliation of Consolidated Statements of Operations:

 

Shepherd’s Finance, LLC

Interim Consolidated Statements of Operations

For the Quarter Ended June 30, 2025

 

(in thousands of dollars)   339 Justabout Land Company, LLC     Shepherds Finance, LLC     Total  
                   
Net Interest and Fee Income                        
Interest and fee income on loans   $ -     $ 2,536     $ 2,536  
Interest expense:                        
Interest related to secure borrowings     -       327       327  
Interest related to unsecured borrowings     -       894       894  
Interest expense     -       1,221       1,221  
                         
Net interest and fee income     -       1,315       1,315  
                         
Less: Provision for credit losses     -       (13 )     (13 )
Net interest and fee income after provision for credit losses     -       1,328       1,328  
                         
Non-Interest Income                        
Revenue from the sale of land parcels     968       -       968  
Option fee income     120       -       120  
Other income     -       54       54  
Total non-interest income     1,088       54       1,142  
                         
Income before non-interest expense     1,088       1,382       2,470  
                         
Non-Interest Expense                        
Cost on the sale of land parcels     968       -       968  
Selling, general and administrative     -       957       957  
Depreciation and amortization     -       20       20  
Loss on foreclosed assets     -       4       4  
Total non-interest expense     968       981       1,949  
                         
Net income   $ 120     $ 401     $ 521  

 

 

Shepherd’s Finance, LLC

Interim Consolidated Statements of Operations

For the Six Months Ended June 30, 2025

 

(in thousands of dollars) 

339 Justabout

Land Company, LLC

  

Shepherds

Finance, LLC

   Total 
             
Net Interest and Fee Income               
Interest and fee income on loans  $-   $4,965   $4,965 
Interest expense:   -           
Interest related to secure borrowings   -    611    611 
Interest related to unsecured borrowings   -    1,790    1,790 
Interest expense   -    2,401    2,401 
                
Net interest and fee income   -    2,564    2,564 
                
Less: Provision for credit losses   -    120    120 
Net interest and fee income after provision for credit losses   -    2,444    2,444 
                
Non-Interest Income               
Revenue from the sale of land parcels   2,805    -    2,805 
Option fee income   274    -    274 
Other income   -    101    101 
Total non-interest income   3,079    101    3,180 
                
Income before non-interest expense   3,079    2,545    5,624 
                
Non-Interest Expense               
Cost on the sale of land parcels   2,805    -    2,805 
Selling, general and administrative   -    1,894    1,894 
Depreciation and amortization   -    40    40 
Loss on foreclosed assets   -    19    19 
Total non-interest expense   2,805    1,953    4,758 
                
Net income  $274   $592   $866 

 

 

Reconciliation of total assets:

 

(in thousands of dollars) 

339 Justabout

Land Company,

LLC

  

Shepherds Finance,

LLC

   Elimination   Total 
Total assets as of December 31, 2025  $-   $68,536   $–   $68,536