Loans (Tables)
|
6 Months Ended |
Jun. 30, 2026 |
|---|
| Secured Loan Principal Transactions |
Secured loan transactions for the three and six months ended June 30, 2026 are summarized in the following table ($ in thousands).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2026 |
|
|
2025 |
|
|
|
Total |
|
|
First Trust Deeds |
|
|
Second Trust Deeds |
|
|
Total |
|
|
First Trust Deeds |
|
|
Second Trust Deeds |
|
Principal, beginning of year |
|
$ |
58,163 |
|
|
$ |
49,788 |
|
|
$ |
8,375 |
|
|
$ |
53,475 |
|
|
$ |
46,945 |
|
|
$ |
6,530 |
|
Loans funded |
|
|
10,966 |
|
|
|
10,216 |
|
|
|
750 |
|
|
|
15,002 |
|
|
|
14,031 |
|
|
|
971 |
|
Principal collected(1) |
|
|
(11,482 |
) |
|
|
(10,857 |
) |
|
|
(625 |
) |
|
|
(23,292 |
) |
|
|
(21,197 |
) |
|
|
(2,095 |
) |
Loan foreclosed |
|
|
(955 |
) |
|
|
(955 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Loans transferred from held for sale |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,065 |
|
|
|
1,065 |
|
|
|
— |
|
Loans sold to non-affiliate |
|
|
(3,375 |
) |
|
|
(2,625 |
) |
|
|
(750 |
) |
|
|
(1,065 |
) |
|
|
(1,065 |
) |
|
|
— |
|
Principal, end of period |
|
$ |
53,317 |
|
|
$ |
45,567 |
|
|
$ |
7,750 |
|
|
$ |
45,185 |
|
|
$ |
39,779 |
|
|
$ |
5,406 |
|
(1)Includes principal collected and held in trust at June 30, 2026 of $2 thousand.
|
| Secured Loans Characteristics |
Secured loans had the characteristics presented in the following table ($ in thousands).
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
December 31, |
|
|
|
2026 |
|
|
2025 |
|
Number of secured loans |
|
|
31 |
|
|
|
36 |
|
First trust deeds |
|
|
26 |
|
|
|
30 |
|
Second trust deeds |
|
|
5 |
|
|
|
6 |
|
|
|
|
|
|
|
|
Secured loans – principal |
|
$ |
53,317 |
|
|
$ |
58,163 |
|
First trust deeds |
|
$ |
45,567 |
|
|
$ |
49,788 |
|
Second trust deeds |
|
$ |
7,750 |
|
|
$ |
8,375 |
|
|
|
|
|
|
|
|
Secured loans – lowest interest rate (fixed) |
|
|
7.8 |
% |
|
|
7.8 |
% |
Secured loans – highest interest rate (fixed) |
|
|
12.8 |
% |
|
|
12.8 |
% |
|
|
|
|
|
|
|
Average secured loan – principal |
|
$ |
1,720 |
|
|
$ |
1,616 |
|
Average principal as percent of total principal |
|
|
3.2 |
% |
|
|
2.8 |
% |
Average principal as percent of members’ and manager’s capital, net |
|
|
2.8 |
% |
|
|
2.6 |
% |
Average principal as percent of total assets |
|
|
2.9 |
% |
|
|
2.7 |
% |
|
|
|
|
|
|
|
Largest secured loan – principal |
|
$ |
7,400 |
|
|
$ |
7,400 |
|
Largest principal as percent of total principal |
|
|
13.9 |
% |
|
|
12.7 |
% |
Largest principal as percent of members’ and manager’s capital, net |
|
|
12.2 |
% |
|
|
12.0 |
% |
Largest principal as percent of total assets |
|
|
12.3 |
% |
|
|
12.5 |
% |
|
|
|
|
|
|
|
Smallest secured loan – principal |
|
$ |
186 |
|
|
$ |
194 |
|
Smallest principal as percent of total principal |
|
|
0.3 |
% |
|
|
0.3 |
% |
Smallest principal as percent of members’ and manager’s capital, net |
|
|
0.3 |
% |
|
|
0.3 |
% |
Smallest principal as percent of total assets |
|
|
0.3 |
% |
|
|
0.3 |
% |
|
|
|
|
|
|
|
California counties where security is located |
|
|
11 |
|
|
|
12 |
|
Largest percentage of principal in one California county |
|
|
25.2 |
% |
|
|
26.6 |
% |
|
|
|
|
|
|
|
Secured loans with filed notice of default |
|
|
1 |
|
|
|
1 |
|
Secured loans in foreclosure – principal |
|
$ |
990 |
|
|
$ |
955 |
|
|
|
|
|
|
|
|
Secured loans with prepaid interest |
|
|
— |
|
|
|
— |
|
|
| Secured Loans by Lien Position in the Collateral |
).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
|
|
Loans |
|
|
Principal |
|
|
Percent |
|
|
Loans |
|
|
Principal |
|
|
Percent |
|
First trust deeds |
|
|
26 |
|
|
$ |
45,567 |
|
|
|
85 |
% |
|
|
30 |
|
|
$ |
49,788 |
|
|
|
86 |
% |
Second trust deeds |
|
|
5 |
|
|
|
7,750 |
|
|
|
15 |
|
|
|
6 |
|
|
|
8,375 |
|
|
|
14 |
|
Total principal, secured loans |
|
|
31 |
|
|
|
53,317 |
|
|
|
100 |
% |
|
|
36 |
|
|
|
58,163 |
|
|
|
100 |
% |
Liens due other lenders at loan closing |
|
|
|
|
|
15,887 |
|
|
|
|
|
|
|
|
|
21,055 |
|
|
|
|
Total debt |
|
|
|
|
$ |
69,204 |
|
|
|
|
|
|
|
|
$ |
79,218 |
|
|
|
|
Appraised property value at loan closing |
|
|
|
|
$ |
133,033 |
|
|
|
|
|
|
|
|
$ |
147,542 |
|
|
|
|
OLTV (weighted average) |
|
|
|
|
|
54.7 |
% |
|
|
|
|
|
|
|
|
55.7 |
% |
|
|
|
|
| Vintages Secured Loans, Principals Originated |
Secured loans, principal by OLTV and lien position at June 30, 2026 are presented in the following table ($ in thousands).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured loans, principal |
|
OLTV(2) |
|
First trust
deeds |
|
|
Percent |
|
|
Count |
|
|
Second trust
deeds |
|
|
Percent |
|
|
Count |
|
|
Total
principal |
|
|
Percent |
|
<40% |
|
$ |
6,774 |
|
|
|
12.7 |
% |
|
|
6 |
|
|
$ |
1,100 |
|
|
|
2.1 |
% |
|
|
1 |
|
|
$ |
7,874 |
|
|
|
14.8 |
% |
40-49% |
|
|
— |
|
|
|
0.0 |
|
|
|
— |
|
|
|
— |
|
|
|
0.0 |
|
|
|
— |
|
|
|
— |
|
|
|
0.0 |
|
50-59% |
|
|
17,486 |
|
|
|
32.8 |
|
|
|
8 |
|
|
|
4,800 |
|
|
|
9.0 |
|
|
|
2 |
|
|
|
22,286 |
|
|
|
41.8 |
|
60-69% |
|
|
17,409 |
|
|
|
32.7 |
|
|
|
8 |
|
|
|
1,250 |
|
|
|
2.3 |
|
|
|
1 |
|
|
|
18,659 |
|
|
|
35.0 |
|
Subtotal <70% |
|
|
41,669 |
|
|
|
78.2 |
|
|
|
22 |
|
|
|
7,150 |
|
|
|
13.4 |
|
|
|
4 |
|
|
|
48,819 |
|
|
|
91.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
70-79% |
|
|
3,898 |
|
|
|
7.3 |
|
|
|
4 |
|
|
|
600 |
|
|
|
1.1 |
|
|
|
1 |
|
|
|
4,498 |
|
|
|
8.4 |
|
Subtotal <80% |
|
|
45,567 |
|
|
|
85.5 |
|
|
|
26 |
|
|
|
7,750 |
|
|
|
14.5 |
|
|
|
5 |
|
|
|
53,317 |
|
|
|
100.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
≥80% |
|
|
— |
|
|
|
0.0 |
|
|
|
— |
|
|
|
— |
|
|
|
0.0 |
|
|
|
— |
|
|
|
— |
|
|
|
0.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
45,567 |
|
|
|
85.5 |
% |
|
|
26 |
|
|
$ |
7,750 |
|
|
|
14.5 |
% |
|
|
5 |
|
|
$ |
53,317 |
|
|
|
100.0 |
% |
(2)OLTV classifications in the table above are based on principal, advances and interest unpaid at June 30, 2026.
|
| Secured Loans by Property Type of the Collateral |
Secured loans summarized by property type are presented in the following table ($ in thousands).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
|
|
Loans |
|
|
Principal |
|
|
Percent |
|
|
Loans |
|
|
Principal |
|
|
Percent |
|
Single family(3) |
|
|
8 |
|
|
$ |
6,814 |
|
|
|
13 |
% |
|
|
8 |
|
|
$ |
9,369 |
|
|
|
16 |
% |
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office |
|
|
2 |
|
|
|
5,983 |
|
|
|
11 |
|
|
|
4 |
|
|
|
6,908 |
|
|
|
12 |
|
Retail |
|
|
5 |
|
|
|
7,457 |
|
|
|
14 |
|
|
|
6 |
|
|
|
6,921 |
|
|
|
12 |
|
Industrial |
|
|
4 |
|
|
|
11,022 |
|
|
|
21 |
|
|
|
4 |
|
|
|
11,024 |
|
|
|
18 |
|
Commercial – Other |
|
|
6 |
|
|
|
14,025 |
|
|
|
26 |
|
|
|
6 |
|
|
|
14,899 |
|
|
|
26 |
|
Commercial Total |
|
|
17 |
|
|
|
38,487 |
|
|
|
72 |
|
|
|
20 |
|
|
|
39,752 |
|
|
|
68 |
|
Multi-family |
|
|
6 |
|
|
|
8,016 |
|
|
|
15 |
|
|
|
8 |
|
|
|
9,042 |
|
|
|
16 |
|
Total principal, secured loans |
|
|
31 |
|
|
$ |
53,317 |
|
|
|
100 |
% |
|
|
36 |
|
|
$ |
58,163 |
|
|
|
100 |
% |
Single family includes 1-4 unit residential buildings, condominium units, townhouses and condominium complexes. At June 30, 2026, single family consists of six loans with an aggregate principal of approximately $5.1 million that are owner occupied and two loans with an aggregate principal of approximately $1.8 million that are non-owner occupied. At December 31, 2025, single family consisted of four loans with an aggregate principal of approximately $6.0 million that are owner occupied and four loans with an aggregate principal of approximately $3.4 million that are non-owner occupied.
|
| Secured Loans Distributed Principal within California |
The distribution of secured loans within California by counties is presented in the following table ($ in thousands).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
|
|
Principal |
|
|
Percent |
|
|
Principal |
|
|
Percent |
|
San Francisco Bay Area(4) |
|
|
|
|
|
|
|
|
|
|
|
|
San Francisco |
|
$ |
7,863 |
|
|
|
14.7 |
% |
|
$ |
7,863 |
|
|
|
13.5 |
% |
San Mateo |
|
|
4,500 |
|
|
|
8.4 |
|
|
|
5,455 |
|
|
|
9.4 |
|
Santa Clara |
|
|
4,733 |
|
|
|
8.9 |
|
|
|
4,733 |
|
|
|
8.1 |
|
Alameda |
|
|
3,561 |
|
|
|
6.7 |
|
|
|
6,821 |
|
|
|
11.7 |
|
Contra Costa |
|
|
— |
|
|
|
0.0 |
|
|
|
319 |
|
|
|
0.6 |
|
Napa |
|
|
632 |
|
|
|
1.2 |
|
|
|
632 |
|
|
|
1.1 |
|
Marin |
|
|
— |
|
|
|
0.0 |
|
|
|
400 |
|
|
|
0.7 |
|
|
|
|
21,289 |
|
|
|
39.9 |
|
|
|
26,223 |
|
|
|
45.1 |
|
Other Northern California |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Placer |
|
|
1,007 |
|
|
|
1.9 |
|
|
|
— |
|
|
|
0.0 |
|
Santa Cruz |
|
|
— |
|
|
|
0.0 |
|
|
|
1,410 |
|
|
|
2.4 |
|
Yolo |
|
|
2,500 |
|
|
|
4.7 |
|
|
|
— |
|
|
|
0.0 |
|
|
|
|
3,507 |
|
|
|
6.6 |
|
|
|
1,410 |
|
|
|
2.4 |
|
Northern California total |
|
|
24,796 |
|
|
|
46.5 |
|
|
|
27,633 |
|
|
|
47.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Southern California Coastal |
|
|
|
|
|
|
|
|
|
|
|
|
Los Angeles |
|
|
13,441 |
|
|
|
25.2 |
|
|
|
15,448 |
|
|
|
26.6 |
|
San Diego |
|
|
8,139 |
|
|
|
15.2 |
|
|
|
8,141 |
|
|
|
14.0 |
|
|
|
|
21,580 |
|
|
|
40.4 |
|
|
|
23,589 |
|
|
|
40.6 |
|
Other Southern California |
|
|
|
|
|
|
|
|
|
|
|
|
Riverside |
|
|
2,025 |
|
|
|
3.8 |
|
|
|
2,025 |
|
|
|
3.5 |
|
San Luis Obispo |
|
|
4,675 |
|
|
|
8.8 |
|
|
|
4,675 |
|
|
|
8.0 |
|
|
|
|
6,700 |
|
|
|
12.6 |
|
|
|
6,700 |
|
|
|
11.5 |
|
Southern California total |
|
|
28,280 |
|
|
|
53.0 |
|
|
|
30,289 |
|
|
|
52.1 |
|
California total |
|
|
53,076 |
|
|
|
99.5 |
|
|
|
57,922 |
|
|
|
99.6 |
|
Illinois(5) |
|
|
241 |
|
|
|
0.5 |
|
|
|
241 |
|
|
|
0.4 |
|
Total principal, secured loans |
|
$ |
53,317 |
|
|
|
100.0 |
% |
|
$ |
58,163 |
|
|
|
100.0 |
% |
(4)Includes Silicon Valley (5)The loan with collateral in Illinois is the balance remaining from a loan with principal at funding of $2.9 million that was secured by a multi-family property in San Francisco County.
|
| Secured Loans Principal Scheduled Maturities |
Secured loans scheduled to mature in periods as of and after June 30, 2026, are presented in the following table ($ in thousands).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Trust Deeds |
|
|
Second Trust Deeds |
|
|
Total |
|
|
|
Loans |
|
|
Principal |
|
|
Loans |
|
|
Principal |
|
|
Loans |
|
|
Principal |
|
|
Percent |
|
2027 |
|
|
12 |
|
|
|
19,902 |
|
|
|
2 |
|
|
$ |
3,125 |
|
|
|
14 |
|
|
$ |
23,027 |
|
|
|
43 |
% |
2028 |
|
|
2 |
|
|
|
1,356 |
|
|
|
1 |
|
|
|
2,775 |
|
|
|
3 |
|
|
|
4,131 |
|
|
|
8 |
|
2029 |
|
|
2 |
|
|
|
5,239 |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
5,239 |
|
|
|
10 |
|
2030 |
|
|
2 |
|
|
|
2,709 |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
2,709 |
|
|
|
5 |
|
2033 |
|
|
1 |
|
|
|
392 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
392 |
|
|
|
1 |
|
Thereafter |
|
|
1 |
|
|
|
186 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
186 |
|
|
|
0 |
|
Total scheduled maturities |
|
|
20 |
|
|
|
29,784 |
|
|
|
3 |
|
|
|
5,900 |
|
|
|
23 |
|
|
|
35,684 |
|
|
|
67 |
|
Matured(6)(7) |
|
|
6 |
|
|
|
15,783 |
|
|
|
2 |
|
|
|
1,850 |
|
|
|
8 |
|
|
|
17,633 |
|
|
|
33 |
|
Total principal, secured loans |
|
|
26 |
|
|
$ |
45,567 |
|
|
|
5 |
|
|
$ |
7,750 |
|
|
|
31 |
|
|
$ |
53,317 |
|
|
|
100 |
% |
(6)See Delinquency/Secured loans with payments in arrears below for additional information on matured loans. (7)A matured loan with principal of $4.7 million (past due 180 or more days at June 30, 2026) defaulted on a payment agreement entered into in 2026.
|
| Past Due Financing Receivables |
Secured loans principal summarized by payment-delinquency status are presented in the following table ($ in thousands).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
|
|
Loans |
|
|
Principal |
|
|
Loans |
|
|
Principal |
|
Current |
|
|
22 |
|
|
$ |
33,784 |
|
|
|
25 |
|
|
$ |
36,688 |
|
Past Due |
|
|
|
|
|
|
|
|
|
|
|
|
30-89 days |
|
|
1 |
|
|
|
1,900 |
|
|
|
3 |
|
|
|
11,450 |
|
90-179 days |
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
2,114 |
|
180 or more days(8)(9) |
|
|
8 |
|
|
|
17,633 |
|
|
|
5 |
|
|
|
7,911 |
|
Total past due |
|
|
9 |
|
|
|
19,533 |
|
|
|
11 |
|
|
|
21,475 |
|
Total principal, secured loans |
|
|
31 |
|
|
$ |
53,317 |
|
|
|
36 |
|
|
$ |
58,163 |
|
(8)See Delinquency/Secured loans with payments in arrears below for additional information on matured loans. (9)A matured loan with principal of $4.7 million (past due 180 or more days at June 30, 2026) defaulted on a payment agreement entered into in 2026.
|
| Secured Loans by LTV and Line Positions |
Secured loans with payments in arrears (nine loans), principal by OLTV and lien position at June 30, 2026 are presented in the following table ($ in thousands).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured loans with payments in arrears, principal |
|
OLTV(10) |
|
First trust
deeds |
|
Percent(11) |
|
|
Second trust
deeds |
|
Percent(11) |
|
|
Total
principal |
|
Percent(11) |
|
50-59% |
|
$ |
1,900 |
|
|
3.6 |
% |
|
$ |
— |
|
|
0.0 |
|
|
$ |
1,900 |
|
|
3.6 |
% |
60-69% |
|
|
14,160 |
|
|
26.6 |
|
|
|
1,250 |
|
|
2.3 |
|
|
|
15,410 |
|
|
28.9 |
|
70-79% |
|
|
1,623 |
|
|
3.0 |
|
|
|
600 |
|
1.1 |
|
|
|
2,223 |
|
|
4.1 |
|
Subtotal <80% |
|
|
17,683 |
|
|
33.2 |
|
|
|
1,850 |
|
|
3.4 |
|
|
|
19,533 |
|
|
36.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
≥80% |
|
|
— |
|
|
0.0 |
|
|
|
— |
|
|
0.0 |
|
|
|
— |
|
|
0.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
17,683 |
|
|
33.2 |
% |
|
$ |
1,850 |
|
|
3.4 |
% |
|
$ |
19,533 |
|
|
36.6 |
% |
(10)OLTV classifications in the table above are based on principal, advances and interest unpaid at June 30, 2026. (11)Percent of total principal, secured loans ($53.3 million) at June 30, 2026.
|
| Payments in Arrears Past Due Financing Receivables |
Payments in arrears for secured loans at June 30, 2026 are presented in the following tables ($ in thousands).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
Principal |
|
|
Interest(12) |
|
|
|
|
At June 30, 2026 |
|
Past
maturity |
|
|
Monthly
payments |
|
|
Past
maturity |
|
|
Monthly
payments |
|
|
Past
maturity |
|
|
Monthly
payments |
|
|
Total
payments
in arrears |
|
Past due |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-89 days (1-3 payments) |
|
|
— |
|
|
|
1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
16 |
|
|
$ |
16 |
|
90-179 days (4-6 payments) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
180 or more days (more than 6 payments)(13) |
|
|
8 |
|
|
|
— |
|
|
|
17,633 |
|
|
|
— |
|
|
|
794 |
|
|
|
— |
|
|
|
18,427 |
|
Total past due |
|
|
8 |
|
|
|
1 |
|
|
$ |
17,633 |
|
|
$ |
— |
|
|
$ |
794 |
|
|
$ |
16 |
|
|
$ |
18,443 |
|
(12)June 2026 interest is due July 1, 2026 and is not included in the payments in arrears at June 30, 2026. (13)A matured loan with principal of $4.7 million (past due 180 or more days at March 31, 2026) defaulted on a payment agreement entered into in 2026.
|
| Matured Loans by LTV and Line Positions |
Matured loans, principal by OLTV and lien position at June 30, 2026 are presented in the following table ($ in thousands).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured loans past maturity, principal |
|
OLTV(14) |
|
First trust
deeds |
|
Percent(15) |
|
|
Second trust
deeds |
|
Percent(15) |
|
|
Total
principal |
|
Percent(15) |
|
60-69% |
|
$ |
14,160 |
|
|
26.6 |
% |
|
$ |
1,250 |
|
|
2.3 |
% |
|
$ |
15,410 |
|
|
28.9 |
% |
70-79% |
|
|
1,623 |
|
|
3.0 |
|
|
|
600 |
|
|
1.1 |
|
|
|
2,223 |
|
|
4.1 |
|
Subtotal <80% |
|
|
15,783 |
|
|
29.6 |
|
|
|
1,850 |
|
|
3.4 |
|
|
|
17,633 |
|
|
33.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
≥80% |
|
|
— |
|
|
0.0 |
|
|
|
— |
|
|
0.0 |
|
|
|
— |
|
|
0.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
15,783 |
|
|
29.6 |
% |
|
$ |
1,850 |
|
|
3.4 |
% |
|
$ |
17,633 |
|
|
33.0 |
% |
(14)OLTV classifications in the table above are based on principal, advances and interest unpaid at June 30, 2026. (15)Percent of total principal of secured loans (totaling $53.3 million) at June 30, 2026.
|
| Secured Loans in Non-Accrual Status |
Secured loans in non-accrual status are summarized in the following table ($ in thousands).
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
Number of loans(16) |
|
|
4 |
|
|
|
4 |
|
Principal |
|
$ |
6,955 |
|
|
$ |
7,311 |
|
Advances |
|
|
155 |
|
|
|
63 |
|
Accrued interest(17) |
|
|
118 |
|
|
|
112 |
|
Total recorded investment |
|
$ |
7,228 |
|
|
$ |
7,486 |
|
Foregone interest |
|
$ |
282 |
|
|
$ |
170 |
|
(16)A matured loan with principal of $4.7 million (past due 180 or more days at June 30, 2026) defaulted on a payment agreement entered into in 2026. (17)Accrued interest in the table above is the amount of interest accrued prior to the loan being placed on non-accrual status, net of
any payments received while in non-accrual status. Interest income of $79 thousand was recognized for loans in non-accrual status in the six months ended June 30, 2026. Interest income of $41 thousand was recognized for loans in non-accrual status in the six months ended June 30, 2025.
|
| Activity in Allowance for Loan Losses |
Activity in the allowance for credit losses for the six months ended June 30 are presented in the following table ($ in thousands).
|
|
|
|
|
|
|
|
|
|
|
2026 |
|
|
2025 |
|
Balance, January 1 |
|
$ |
545 |
|
|
$ |
210 |
|
Provision for credit losses |
|
|
330 |
|
|
|
110 |
|
Charge-offs(18) |
|
|
(295 |
) |
|
|
— |
|
Balance, June 30 |
|
$ |
580 |
|
|
$ |
320 |
|
(18)The charge-off in the six months ended June 30, 2026 resulted from the company acquiring REO via a foreclosure sale.
|
| Secured Loans Scheduled Maturities Loan Principal and LTV |
Secured loans count, principal and weighted average OLTV at June 30, 2026 and the projected year-end count, principal and weighted average OLTV based on contractual maturities (by lien position) are presented in the following table ($ in thousands).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Trust Deeds |
|
|
Second Trust Deeds |
|
|
|
Loans |
|
|
Principal |
|
|
OLTV |
|
|
Loans |
|
|
Principal |
|
|
OLTV |
|
|
Loans |
|
|
Principal |
|
|
OLTV |
|
June 30, 2026 |
|
|
31 |
|
|
$ |
53,317 |
|
|
|
54.7 |
% |
|
|
26 |
|
|
$ |
45,567 |
|
|
|
54.5 |
% |
|
|
5 |
|
|
$ |
7,750 |
|
|
|
55.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2026 |
|
|
23 |
|
|
|
35,684 |
|
|
|
50.9 |
|
|
|
20 |
|
|
|
29,784 |
|
|
|
50.9 |
|
|
|
3 |
|
|
|
5,900 |
|
|
|
51.1 |
|
2027 |
|
|
9 |
|
|
|
12,657 |
|
|
|
54.8 |
|
|
|
8 |
|
|
|
9,882 |
|
|
|
53.4 |
|
|
|
1 |
|
|
|
2,775 |
|
|
|
59.7 |
|
2028 |
|
|
6 |
|
|
|
8,526 |
|
|
|
52.8 |
|
|
|
6 |
|
|
|
8,526 |
|
|
|
52.8 |
|
|
|
— |
|
|
|
— |
|
|
|
0.0 |
|
2029 |
|
|
4 |
|
|
|
3,288 |
|
|
|
46.7 |
|
|
|
4 |
|
|
|
3,288 |
|
|
|
46.7 |
|
|
|
— |
|
|
|
— |
|
|
|
0.0 |
|
2030 |
|
|
2 |
|
|
|
579 |
|
|
|
22.4 |
|
|
|
2 |
|
|
|
579 |
|
|
|
22.4 |
|
|
|
— |
|
|
|
— |
|
|
|
0.0 |
|
2033 |
|
|
1 |
|
|
|
186 |
|
|
|
31.6 |
|
|
|
1 |
|
|
|
186 |
|
|
|
31.6 |
|
|
|
— |
|
|
|
— |
|
|
|
0.0 |
|
2035 |
|
|
— |
|
|
|
— |
|
|
|
0.0 |
|
|
|
— |
|
|
|
— |
|
|
|
0.0 |
|
|
|
— |
|
|
|
— |
|
|
|
0.0 |
|
|