v3.26.1
Borrowings
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Borrowings

 

7. Borrowings

 

The following table displays our borrowings:

 

   June 30, 2026   December 31, 2025 
Borrowing Source          
Purchase and sale agreements and other secured borrowings  $28,015   $18,431 
Secured line of credit from affiliates   6    26 
Less: deferred financing fees   (11)   (12)
Notes payable secured, net   28,010    18,445 
           
Unsecured line of credit (senior)   750    - 
Other unsecured debt (senior subordinated)   1,812    1,812 
Unsecured Notes through our public offering, gross (subordinated)   22,085    22,164 
Other unsecured debt (subordinated)   15,028    10,901 
Other unsecured debt (junior subordinated)   1,126    1,126 
Less: deferred financing fees   (278)   (229)
Notes payable unsecured, net   40,523    35,774 
           
Total Borrowings  $68,533   $54,219 

 

The following table shows the maturity of outstanding debt as of June 30, 2026:

 

Year Maturing  Total Amount Maturing   Public Offering   Other Unsecured   Secured Borrowings 
2026  $32,145   $1,541   $5,583   25,021 
2027   11,690    7,044    2,371    2,275 
2028   14,859    11,080    3,779    - 
2029   5,938    1,732    4,206    - 
2030 and thereafter   4,190    688    2,777    725 
Total  $68,822   $22,085   $18,716   $28,021 

 

 

Secured Borrowings

 

Lines of Credit

 

Lines of Credit with Mr. Wallach and His Affiliates

 

As of June 30, 2026 and December 31, 2025, the Company had $6 and $26 borrowed against its lines of credit from affiliates, respectively, with a total limit of $2,500 as of June 30, 2026 and December 31, 2025.

 

United Lines of Credit

 

In January 2025, we established a revolving line of credit with United Bank for $2,275, maturing in January 2027. The interest rate on this line of credit is 5.5%. As of June 30, 2026 and December 31, 2025, the amount due on this line of credit was $2,275.

 

In January 2025, we established a revolving line of credit with United Bank for $725, with an expiration date of January 2040. The interest rate on this line of credit is 7.5%. As of June 30, 2026 and December 31, 2025, the amount due on this line of credit was $725. The Company’s office in Jacksonville, FL, is used as collateral for this line of credit.

 

Liberty Savings Bank Line of Credit

 

In December 2025, we established a revolving line of credit with Liberty Savings Bank for $5,000, which may be terminated upon 90 days’ written notice. The interest rate on this line of credit varies and is indexed to the current Prime rate plus 0.5%. As of June 30, 2026 and December 31, 2025, the Company had borrowed $5,000 and $0 against the revolving line of credit, respectively.

 

Loan Purchase and Sale Agreements

 

As of June 30, 2026 and December 31, 2025, there is no limit on the maximum principal amount under the Builder Finance loan purchase and sale agreement, and the outstanding principal under such agreement was $2,024 and $1,459, respectively, with an interest rate of 8.99% for both periods. The agreement has a term of 12 months and renews automatically for an additional 12 months unless either party provides written notice of intent not to renew at least six months prior to the end of the term.

 

As of June 30, 2026 and December 31, 2025, the maximum principal amount under the S.K. Funding loan purchase and sale agreement was $6,500 for both period end dates. Borrowings up to $1,400 over the principal amount may be unsecured. There were $0 of unsecured borrowings as of both June 30, 2026 and December 31, 2025, with an interest rate of 10% for both periods. The agreement has a term of 12 months and renews automatically for an additional 12 months unless either party provides written notice of intent not to renew at least six months prior to the end of the term. Additionally, the Company executed an amendment to the agreement with S.K. Funding that allowed the Company to sell participating interests in loans. The balance of the portion sold on these loans is removed from the balance sheet of the Company and interest on the portion sold is not reflected in its statement of operations. As of June 30, 2026 and December 31, 2025, the loan receivable principal balance sold under the secured portion of this agreement was $1,400.

 

Secured Deferred Financing Costs

 

The Company had secured deferred financing costs of $11 and $12 as of June 30, 2026 and December 31, 2025.

 

Secured Borrowings Secured by Loan Assets

 

As of June 30, 2026 and December 31, 2025 the Company pledged $48,534 and $41,527 of loans as collateral on $25,016 and $16,156 of secured notes payable, respectively.

 

Unsecured Borrowings

 

Unsecured Notes through the Public Offering (“Notes Program”)

 

The effective interest rate on borrowings through our Notes Program as of June 30, 2026 and December 31, 2025, was 8.95% and 8.90%, respectively.

 

 

We generally offer four durations at any given time, ranging from 12 to 48 months from the date of issuance. All Notes sold in our fifth public offering, which was declared effective on April 30, 2026, include a mandatory early redemption option, provided that the proceeds are reinvested. In our other historical offerings, there were limited rights of early redemption. Our 36-month Note sold in our third public note offering had a mandatory early redemption option, subject to certain conditions.

 

The following table is a roll forward of our Notes Program:

 

  

Six Months

Ended

June 30, 2026

  

Year Ended

December 31, 2025

  

Six Months

Ended

June 30, 2025

 
             
Gross Notes outstanding, beginning of period  $22,164   $19,968   $19,968 
Notes issued   1,479    7,612    1,632 
Note repayments / redemptions   (1,558)   (5,416)   (1,921)
                
Gross Notes outstanding, end of period  $22,085   $22,164   $19,679 
                
Less deferred financing costs, net   (278)   (229)   (89)
                
Notes outstanding, net  $21,807   $21,935   $19,590 

 

The following is a roll forward of deferred financing costs related to the Notes Program:

 

  

Six Months

Ended

June 30, 2026

  

Year Ended

December 31, 2025

  

Six Months

Ended

June 30, 2025

 
             
Deferred financing costs, beginning balance  $1,302   $1,060   $1,060 
Additions   90    242    52 
Disposals   (693)   -    - 
Deferred financing costs, ending balance   699    1,302    1,112 
Less accumulated amortization   (421)   (1,073)   (1,023)
Deferred financing costs, net  $278   $229   $89 

 

The following is a roll forward of the accumulated amortization of deferred financing costs:

 

  

Six Months

Ended

June 30, 2026

  

Year Ended

December 31, 2025

  

Six Months

Ended

June 30, 2025

 
             
Accumulated amortization, beginning balance  $1,073   $910   $910 
Additions   41    163    113 
Disposals   (693)   -    - 
Accumulated amortization, ending balance  $421   $1,073   $1,023 

 

 

Other Unsecured Debts

 

The following table is a detail of other unsecured debts are detailed below:

 

Loan 

Maturity

Date

 

Interest

Rate(1)

   June 30, 2026  

December 31,

2025

 
Unsecured Line of Credit  July 2026   10.0%  $-  

$

592 
Unsecured Line of Credit  April 2027   10.0%   500    500 
Unsecured Line of Credit  July 2026   9.75%   500    – 
Unsecured Line of Credit – Senior Subordinated  January 2027   10.0%   750    – 
Subordinated Promissory Note  July 2026   11.0%   1,000    – 
Subordinated Promissory Note  February 2027   9.0%   600    600 
Subordinated Promissory Note  March 2028   9.75%   500    500 
Subordinated Promissory Note  December 2027   10.0%   20    20 
Subordinated Promissory Note  January 2029   9.0%   15    15 
Subordinated Promissory Note  February 2027   8.5%   200    200 
Subordinated Promissory Note  March 2027   10.0%   26    26 
Subordinated Promissory Note  November 2026   9.5%   200    200 
Subordinated Promissory Note  March 2027   9.5%   1,000    1,000 
Subordinated Promissory Note  September 2027   10.0%   108    108 
Subordinated Promissory Note  July 2028   8.5%   100    100 
Subordinated Promissory Note  August 2026   8.0%   291    291 
Senior Subordinated Promissory Note  July 2026(2)   1.0%   740    740 
Junior Subordinated Promissory Note  July 2026(2)   20.0%   460    460 
Senior Subordinated Promissory Note  October 2028(2)   1.0%   1,072    1,072 
Junior Subordinated Promissory Note  October 2028(2)   20.0%   666    666 
Subordinated Promissory Note  March 2029   10.0%   1,200    1,200 
Subordinated Promissory Note  May 2027   10.0%   97    97 
Subordinated Promissory Note  November 2027   10.0%   120    120 
Subordinated Promissory Note  April 2028   10.0%   149    149 
Subordinated Promissory Note  April 2029   11.0%   2,000    2,000 
Subordinated Promissory Note  October 2027   8.5%   200    200 
Subordinated Promissory Note  October 2028   10.0%   1,043    1,043 
Subordinated Promissory Note  December 2028   10.0%   149    149 
Subordinated Promissory Note  October 2026   10.0%   1,142    1,142 
Subordinated Promissory Note  April 2029   9.0%   301    301 
Subordinated Promissory Note  December 2029   8.0%   248    248 
Subordinated Promissory Note  October 2028   8.5%   100    100 
Subordinated Promissory Note  March 2029   6.5%   442    – 
Subordinated Promissory Note  January 2030   8.0%   15    – 
Subordinated Promissory Note  February 2031   11.0%   400    – 
Subordinated Promissory Note  February 2031   11.0%   300    – 
Subordinated Promissory Note  February 2031   11.0%   365    – 
Subordinated Promissory Note  February 2031   11.0%   400    – 
Subordinated Promissory Note  February 2031   11.0%   300    – 
Subordinated Promissory Note  March 2031   11.0%   500    – 
Subordinated Promissory Note  March 2031   11.0%   497    – 
Total Other Unsecured Debt           $18,716   $13,839 

 

(1) Interest rate per annum, based upon actual days outstanding and a 365/366-day year.
   
(2) These notes were issued to the same holder and, when calculated together, yield a blended rate of 10% per annum.