v3.26.1
LOANS RECEIVABLE (Tables)
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Schedule of Allowance for Credit Losses
The following table presents the activity in the Company’s CECL for the six months ended June 30, 2025 (dollar amounts in thousands):
Loans Receivable
Allowance for credit losses as of December 31, 2024$2,032 
Net adjustment to reserve for expected credit losses39 
Allowance for credit losses as of March 31, 20252,071 
Net adjustment to reserve for expected credit losses380 
Allowance for credit losses as of June 30, 2025$2,451 
Schedule of Carrying Amounts of Assets and Liabilities Held for Sale The following is the detail of the carrying amounts of assets and liabilities classified as held for sale on the consolidated balance sheets as of December 31, 2025:
December 31, 2025
Assets:
Restricted cash$4,423 
Loans receivable, net (1)54,213 
Accounts receivable, net633 
Other intangible assets (2)2,957 
Other assets3,633 
Total assets held for sale$65,859 
Liabilities:
Debt, net (3)$17,330 
Accounts payable and accrued expenses2,508 
Other liabilities2,128 
Total liabilities associated with assets held for sale$21,966 
(1)Loans receivable, net as of December 31, 2025 consisted of total Small Business Administration (the “SBA”) 7(a) loans receivable of $53.2 million and net deferred capitalized costs of $1.0 million. Upon the reclassification of First Western to held for sale, the CECL balance related to the loans receivable was reversed. The loans receivable were subsequently written down to their estimated fair value (based on the contractual sales price) less costs to sell, resulting in a loss on assets held for sale of $298,000 for the year ended December 31, 2025. Following the loss on assets held for sale, as of December 31, 2025, the aggregate net assets and liabilities of First Western were recorded at fair value, less costs to sell. During the six months ended June 30, 2026, the Company finalized the sale and based on additional operating and investing activity at First Western and certain transaction-related adjustments, recognized a net gain of $1.7 million.
(2)Other intangible assets as of December 31, 2025 represented First Western’s trade name and SBA license, with an aggregate carrying value of $3.0 million.
(3)Debt, net as of December 31, 2025 consisted of the following: Secured borrowings – government guaranteed loans of $1.3 million, along with net unamortized premiums of $19,000, and SBA 7(a) loan-backed notes of $16.4 million, net of deferred debt origination costs of $402,000.