Loans Receivables, net

6 Months Ended

Jun. 30, 2026

Receivables [Abstract]

Loans Receivables, net

5.	Loans Receivables, net

Financing receivables are comprised of the following as of June 30, 2026 and December 31, 2025:

Schedule of Financing Receivables

		June 30, 2026				December 31, 2025

Loans receivable, gross		$	77,434			$	61,683
Less: Deferred loan fees			(1,788	)			(1,516	)
Plus: Deferred origination costs			244				169
Less: Allowance for credit losses			(2,059	)			(1,113	)
Loans receivable, net		$	73,831			$	59,223

Commercial Construction and Development Loans

As of June 30, 2026, the Company’s loan portfolio consisted of 182 construction loans with 51 borrowers and 15 development loans with 14 borrowers in 20 states.

Construction Loan Portfolio Summary

The following is a summary of our loan portfolio to builders for home construction loans as of June 30, 2026 and December 31, 2025:

Year

Number of

States

Number of

Borrowers

Number of

Loans

Commitment

Amount

Gross

Amount

Outstanding

Loan to Value

Ratio⁽¹⁾

2026

19

51

182

$

84,751

$

58,888

74

%⁽²⁾

2025

20

53

151

$

65,897

$

44,515

72

%⁽²⁾

⁽¹⁾	The loan to value ratio is calculated by taking the commitment amount and dividing by the appraised value.

⁽²⁾	Represents the weighted average loan to value ratio of the loans.

Real Estate Development Loan Portfolio Summary

The following is a summary of our loan portfolio to builders for land development as of June 30, 2026 and December 31, 2025:

Year

Number of

States

Number of

Borrowers

Number of

Loans

Commitment

Amount

Gross

Amount

Outstanding

Loan to Value

Ratio⁽¹⁾

2026

11

14

15

$

25,936

$

18,546

72

%⁽²⁾

2025

9

12

13

$

19,343

$

17,168

71

%⁽²⁾

⁽¹⁾

The loan to value ratio is calculated by taking the outstanding amount and dividing by the appraised value calculated as described above.

⁽²⁾

Represents the weighted average loan to value ratio of the loans.

The following is a roll forward of loan receivables, net of both construction and development loans:

		Six Months Ended June 30, 2026				Twelve Months Ended December 31, 2025

Beginning balance		$	59,223			$	49,254
Originations and modifications			35,536				59,571
Principal collections			(17,186	)			(48,205	)
Loan receivables, net transferred to foreclosed assets			(665	)			(909	)
Loan receivables, net transferred to real estate investments			(1,935	)			-
Change in allowance for credit losses			(946	)			(245	)
Change in loan fees, net			(196	)			(243	)
Ending balance		$	73,831			$	59,223

Credit Quality Information

The following table presents the Company’s gross loans receivable, commitment value and ACL for each respective credit rank loan pool category as of June 30, 2026:

		Loans Receivable Gross				Commitment Value				ACL
Construction Loans Collectively Evaluated:
A Credit Risk		$	26,129			$	44,906			$	168
B Credit Risk			26,027				30,375				248
C Credit Risk			1,263				2,108				16
Individually Evaluated			5,469				7,362				1,580

Development Loans Collectively Evaluated:
A Credit Risk		$	7,720			$	11,319			$	2
B Credit Risk			10,116				14,030				43
C Credit Risk			99				100				2
Individually Evaluated			611				487				-

Total		$	77,434			$	110,687			$	2,059

The following table presents the Company’s gross loans receivable, commitment value and ACL for each respective credit rank loan pool category as of December 31, 2025.

		Loans Receivable Gross				Commitment Value				ACL
Construction Loans Collectively Evaluated:
A Credit Risk		$	23,490			$	37,488			$	122
B Credit Risk			13,799				18,830				151
C Credit Risk			828				1,099				12
Individually Evaluated			6,399				8,480				745

Development Loans Collectively Evaluated:
A Credit Risk		$	3,457			$	4,390			$	2
B Credit Risk			13,072				14,366				79
C Credit Risk			99				100				2
Individually Evaluated			539				487				–

Total		$	61,683			$	85,240			$	1,113

Individually Evaluated Loans

Individually evaluated loans are loans for which it is probable that all the amounts due under the contractual terms of the loan will not be collected. The ACL on loans that are individually evaluated is based on a comparison of the receivable loan balance, observable market price for the loan or the fair value of the collateral underlying secured loans.

The following table presents the amortized cost basis of loans on non-accrual status and loans past due over 90 days non-accruing as of June 30, 2026:

		Non-accrual without ACL				Non-accrual with ACL				Accrual Loans Past Due Over 90 Days
Construction Loans:
Individually Evaluated		$	1,209			$	2,969			$	–
Development Loans:
Individually Evaluated		$	611			$	–			$	–

Total		$	1,820			$	2,969			$	–

The following table presents the amortized cost basis of loans on non-accrual status and loans past due over 90 days non-accruing as of December 31, 2025:

		Non-accrual without ACL				Non-accrual with ACL				Accrual Loans Past Due Over 90 Days
Construction Loans:
Individually Evaluated		$	1,887			$	3,160			$	–
Development Loans:
Individually Evaluated		$	539			$	–			$	–

Total		$	2,426			$	3,160			$	–

The following is an aging of our gross loan portfolio as of June 30, 2026:

		Gross Loan				Current				Past Due				Past Due				Past Due
		Value				0 - 89				90 - 179				180 - 269				>270
Construction Loans:
A Credit Risk		$	26,129			$	26,129			$	–			$	–			$	–
B Credit Risk			26,027				26,027				–				–				–
C Credit Risk			1,263				1,263				–				–				–
Individually Evaluated			5,469				2,818				–				2,419				232

Development Loans:
A Credit Risk			7,720				7,720				–				–				–
B Credit Risk			10,116				10,116				–				–				–
C Credit Risk			99				99				–				–				–
Individually Evaluated			611				–				–				–				611

Total		$	77,434			$	74,172			$	–			$	2,419			$	843

The following is an aging of our gross loan portfolio as of December 31, 2025:

		Gross Loan				Current				Past Due				Past Due				Past Due
		Value				0 - 89				90 - 179				180 - 269				>270
Construction Loans:
A Credit Risk		$	23,490			$	23,490			$	–			$	–			$	–
B Credit Risk			13,799				13,799				–				–				–
C Credit Risk			828				828				–				–				–
Performing Loans			828				828				–				–				–

Individually Evaluated			6,399				5,201				618				446				134

Development Loans:
A Credit Risk			3,457				3,457				–				–				–
B Credit Risk			13,072				13,072				–				–				–
C Credit Risk			99				99				–				–				–
Forbearance Loans			99				99				–				–				–

Individually Evaluated			539				–				539				–				–

Total		$	61,683			$	59,946			$	1,157			$	446			$	134

Below is an aging schedule of loans receivable as of June 30, 2026 on a recency basis:

		No. Loans				Unpaid Balances				%
Current loans (current accounts and accounts on which more than 50% of an original contract payment was made in the last 59 days)			190			$	74,172				95.8	%
60-89 days			–				–				–	%
90-179 days			–				–				–	%
180-269 days			4				2,419				3.1	%
>270 days			3				843				1.1	%

Subtotal			197			$	77,434				100.0	%

Interest only accounts (Accounts on which interest, deferment, extension and/or default charges were received in the last 60 days)			–			$	–				–	%

Partial Payment accounts (Accounts on which the total received in the last 60 days was less than 50% of the original contractual monthly payment. “Total received” to include interest on simple interest accounts, as well as late charges on deferment charges on pre-computed accounts.)			–			$	–				–	%

Total			197			$	77,434				100.0	%

Below is an aging schedule of loans receivable as of December 31, 2025, on a recency basis:

		No. Loans				Unpaid Balances				%
Contractual terms (All current Direct Loans and Sales Finance Contracts with installments past due less than 60 days from due date.)			155			$	58,507				94.9	%
60-89 days			1				1,439				2.3	%
90-179 days			5				1,157				1.8	%
180-269 days			2				446				0.7	%
>270 days			1				134				0.3	%

Subtotal			164			$	61,683				100.0	%

Interest only accounts (Accounts on which interest, deferment, extension and/or default charges were received in the last 60 days)			–			$	–				–	%

Partial payment accounts (Accounts on which the total received in the last 60 days was less than 50% of the original contractual monthly payment. “Total received” to include interest on simple interest accounts, as well as late charges on deferment charges on pre-computed accounts.)			–			$	–				–	%

Total			164			$	61,683				100.0	%

Below is an aging schedule of loans receivable as of June 30, 2026, on a contractual basis:

		No. Loans				Unpaid Balances				%
Contractual Terms (All current Direct Loans and Sales Finance Contracts with installments past due less than 60 days from the due date.)			190			$	74,172				95.8	%
60-89 days			–				–				–	%
90-179 days			–				–				–	%
180-269 days			4				2,419				3.1	%
>270 days			3				843				1.1	%

Subtotal			197			$	77,434				100.0	%

Interest only accounts (Accounts on which interest, deferment, extension and/or default charges were received in the last 60 days.)			–			$	–				–	%

Partial Payment accounts (Accounts on which the total received in the last 60 days was less than 50% of the original contractual monthly payment. “Total received” to include interest on simple interest accounts, as well as late charges on deferment charges on pre-computed accounts.)			–			$	–				–	%

Total			197			$	77,434				100.0	%

Below is an aging schedule of loans receivable as of December 31, 2025, on a contractual basis:

		No. Loans				Unpaid Balances				%
Contractual terms (All current Direct Loans and Sales Finance Contracts with installments past due less than 60 days from due date.)			155			$	58,507				94.9	%
60-89 days			1				1,439				2.3	%
90-179 days			5				1,157				1.8	%
180-269 days			2				446				0.7	%
>270 days			1				134				0.3	%

Subtotal			164			$	61,683				100.0	%

Interest only accounts (Accounts on which interest, deferment, extension and/or default charges were received in the last 60 days)			–			$	–				–	%

Partial payment accounts (Accounts on which the total received in the last 60 days was less than 50% of the original contractual monthly payment. “Total received” to include interest on simple interest accounts, as well as late charges on deferment charges on pre-computed accounts.)			–			$	–				–	%

Total			164			$	61,683				100.0	%

The Company modifies loans for borrowers for various reasons, including but not limited to changes in what the builder is building versus what was appraised, changes in loan-to-value (“LTV”) or market conditions, and a builder’s inability to pay interest. This last grouping (builder’s inability to pay interest) is done through forbearance agreements which will allow the builder to have a specified period not to pay interest while the home is either completed or marketed. Typically, those interest amounts are collected at final payoff of the loan.

Allowance for Credit Losses on Loans

The following table provides a roll forward of the allowance for credit losses and unfunded commitments as of June 30, 2026:

Schedule of Allowance for Credit Losses

		A Credit Risk				B Credit Risk				C Credit Risk				Individually Evaluated				A Credit Risk				B Credit Risk				C Credit Risk				Individually Evaluated				Total
		Construction																Development
		A Credit Risk				B Credit Risk				C Credit Risk				Individually Evaluated				A Credit Risk				B Credit Risk				C Credit Risk				Individually Evaluated				Total
Allowance for credit losses as of December 31, 2025		$	(122	)		$	(151	)		$	(12	)		$	(746	)		$	(2	)		$	(78	)		$	(2	)		$	–			$	(1,113	)
Charge-offs			–				–				–				8				–				–				–				–				8
Recoveries			–				–				–				(11	)			–				–				–				–				(11	)
(Provision) benefit for credit losses on unfunded commitments

(Provision) benefit for credit losses on funded balances			(46	)			(97	)			(4	)			(831	)			–				35				–				–				(943	)
Allowance for credit losses as of June 30, 2026		$	(168	)		$	(248	)		$	(16	)		$	(1,580	)		$	(2	)		$	(43	)		$	(2	)		$	–			$	(2,059	)

Reserve for unfunded commitments as of December 31, 2025		$	(73	)		$	(55	)		$	(4	)		$	–			$	-			$	(8	)		$	–			$	–			$	(140	)

(Provision) benefit for credit losses on unfunded commitments			(48	)			13				(6	)			–				(1	)			(9	)			–				–				(51	)
Reserve for unfunded commitments as of June 30, 2026		$	(121	)		$	(42	)		$	(10	)		$	–			$	(1	)		$	(17	)		$	–			$	–			$	(191	)

The following table provides a roll forward of the allowance for credit losses and unfunded commitments as of June 30, 2025:

		A Credit Risk				B Credit Risk				C Credit Risk				Individually Evaluated				A Credit Risk				B Credit Risk				C Credit Risk				Individually Evaluated				Total
		Construction																Development
		A Credit Risk				B Credit Risk				C Credit Risk				Individually Evaluated				A Credit Risk				B Credit Risk				C Credit Risk				Individually Evaluated				Total
Allowance for credit losses as of December 31, 2024		$	(150	)		$	(28	)		$	(13	)		$	(658	)		$	(1	)		$	–			$	(18	)		$	–			$	(868	)
Allowance for credit losses		$	(150	)		$	(28	)		$	(13	)		$	(658	)		$	(1	)		$	–			$	(18	)		$	–			$	(868	)

Charge-offs			–				–				–				152				–				–				–				–				152
Recoveries			–				–				–				(3	)			–				–				–				–				(3	)
(Provision) benefit for credit losses on funded balances			23				(32	)			4				(133	)			–				–				8				–				(130	)
Allowance for credit losses as of June 30, 2025		$	(127	)		$	(60	)		$	(9	)		$	(642	)		$	(1	)		$	–			$	(10	)		$	–			$	(849	)
Allowance for credit losses		$	(127	)		$	(60	)		$	(9	)		$	(642	)		$	(1	)		$	–			$	(10	)		$	–			$	(849	)

Reserve for unfunded commitments as of December 31, 2024		$	(65	)		$	(10	)		$	(12	)		$	–			$	(1	)		$	–			$	–			$	–			$	(88	)
Reserve for unfunded commitments, beginning balance		$	(65	)		$	(10	)		$	(12	)		$	–			$	(1	)		$	–			$	–			$	–			$	(88	)

(Provision) benefit for credit losses on unfunded commitments			10				(17	)			3				–				1				–				–				–				(3	)
Reserve for unfunded commitments as of June 30, 2025		$	(55	)		$	(27	)		$	(9	)		$	–			$	–			$	–			$	–			$	–			$	(91	)
Reserve for unfunded commitments, ending balance		$	(55	)		$	(27	)		$	(9	)		$	–			$	–			$	–			$	–			$	–			$	(91	)

Allowance for Credit Losses on Unfunded Loan Commitments

Unfunded commitments to extend credit, which have similar collateral, credit and market risk to our outstanding loans, were $33,254 and $23,557 as of June 30, 2026 and December 31, 2025, respectively. The ACL is calculated at an estimated loss rate on the total commitment value for loans in our portfolio. The ACL on unfunded commitments is calculated as the difference between the ACL on commitment value less the estimated loss rated and the total gross loan value for loans in our portfolio. As of June 30, 2026, and December 31, 2025, the ACL for unfunded commitments was $191 and $140, respectively, and we had no off-balance sheet transactions, nor do we currently have any such arrangements or obligations.

Loan Portfolio by Year of Origination

The table below presents the Company’s loan portfolio by year of origination, category, and credit quality indicator as of June 30, 2026. Loans acquired are shown in the tables by origination year.

		2026				2025				2024				2023				2022				Prior				Total
Construction loans Collectively Evaluated:
A Credit Risk		$	11,135			$	10,635			$	1,138			$	2,459			$	762			$	-			$	26,129
B Credit Risk			4,768				13,671				5,939				636				1,013				-				26,027
C Credit Risk			127				-				1,136				-								-				1,263
Individually Evaluated			-				2,811				2,012				526				120				-				5,469
Construction loans			16,030				27,117				10,225				3,621				1,895				-				58,888

Current Period Charge Offs			-				-				-				(8	)			-				-				(8	)

Development Loans Collectively Evaluated:
A Credit Risk			5,736				1,895				89				-				-				-				7,720
B Credit Risk			-				8,555				-								-				1,561				10,116
C Credit Risk			-				-				-				99				-								99
Individually Evaluated			-				-				-				-				-				611				611
Development loans			5,736				10,450				89				99				-				2,172				18,546

Current Period Charge Offs			-				-				-				-				-				-				-

Total		$	21,766			$	37,567			$	10,314			$	3,720			$	1,895			$	2,172			$	77,434

The table below presents the Company’s loan portfolio by year of origination, category, and credit quality indicator as of December 31, 2025. Loans acquired are shown in the tables by origination year.

		2025				2024				2023				2022				2021				Prior				Total
Construction loans Collectively Evaluated:
A Credit Risk		$	15,907			$	3,786			$	2,277			$	939			$	581			$	-			$	23,490
B Credit Risk			7,228				4,938				620				1,013				-				-				13,799
C Credit Risk			-				827				-				-				-				-				827
Individually Evaluated			2,323				2,429				1,050				597				-				-				6,399
Construction loans			25,458				11,980				3,947				2,549				581				-				44,515

Current Period Charge Offs			-				-				-				(125	)			(27	)			(670	)			(822	)

Development Loans Collectively Evaluated:
A Credit Risk			3,020				438				-				-				-				-				3,458
B Credit Risk			11,602				-				-				-				-				1,470				13,072
C Credit Risk			-				-				99				-				-				-				99
Individually Evaluated			-				-				-				-				-				539				539
Development loans			14,622				438				99				-				-				2,009				17,168

Current Period Charge Offs			-				-				-				-				-				-				-

Total		$	40,080			$	12,418			$	4,046			$	2,549			$	581			$	2,009			$	61,683

Concentration of Risks

Financial instruments that potentially subject the Company to concentration of credit risk consist principally of loans receivable. Our concentration risks for our top three customers listed by geographic real estate market are summarized in the table below:

Schedule of Concentration Risks

June 30, 2026

December 31, 2025

Percent of

Percent of

Borrower

Loan

Borrower

Loan

Location

Commitments

Location

Commitments

Highest concentration risk

Pittsburgh, PA

30

%

Pittsburgh, PA

36

%

Second highest concentration risk

Central and Southwest FL

7

%

Central and Southwest FL

7

%

Third highest concentration risk

St. George, UT

6

%

St. George, UT

6

%