v3.26.1
Loans Receivables, net (Tables)
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Schedule of Financing Receivables

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

 

   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 
Schedule of Commercial Loans - 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.
Schedule of Commercial 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.
Schedule of Construction and Development Loan Portfolio

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 
Schedule of Gross Loan Receivable, Commitment Value and ACL Credit Rank Loan Pool Category

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 
Schedule of Amortized Cost Basis of Loans on Nonaccrual Status and 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   $– 
Schedule of Aging of Gross Loan Portfolio

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    –    –    – 
                          
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    –    –    – 
                          
Individually Evaluated   539    –    539    –    – 
                          
Total  $61,683   $59,946   $1,157   $446   $134 
Summary of Aging Schedule of Loans Receivables on a Recency Basis

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%
Schedule of Aging Schedule of Loans Receivables on a Contractual Basis

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%
Schedule of Allowance for Credit Losses

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

 

   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 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)
                                              
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)
                                              
Reserve for unfunded commitments as of December 31, 2024  $(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)
Schedule of Loan Portfolio by Year of Origination, Category, and Credit Quality Indicator

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 
Schedule of Concentration 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:

 

   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%