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Other Debt
 9 Months Ended
Sep. 30, 2025
Debt Disclosure [Abstract]  
Other Debt

Note 12 — Other Debt

Secured financings and warehouse facilities are utilized to finance the origination and purchase of commercial real estate mortgage loans. Warehouse facilities are designated to fund mortgage loans that are purchased and originated within specified underwriting guidelines. Most of these lines of credit fund less than 100% of the principal balance of the mortgage loans originated and purchased, requiring the use of working capital to fund the remaining portion.

(a)
Secured Financing, Net (“Corporate Debt”)

On March 15, 2022, the Company entered into a five-year $215.0 million syndicated corporate debt agreement, the (“the 2022 Term Loan”). The 2022 Term Loan bears interest at a fixed rate of 7.125% and matures on March 15, 2027. Interest on the 2022 Term Loan is paid every six months. As of September 30, 2025 and December 31, 2024, the balance of the 2022 Term Loan was $215.0 million.

On February 5, 2024, the Company entered into a five-year $75.0 million syndicated corporate debt agreement, the (“the 2024 Term Loan”). The 2024 Term Loan bears interest at 9.875% and matures on February 15, 2029. Interest on the 2024 Term Loan is paid every six months. As of September 30, 2025 and December 31, 2024, the balance of the 2024 Term Loan was $75.0 million.

The total balance of the 2022 Term Loan and the 2024 Term Loan (“Corporate Debt”) in the Consolidated Balance Sheets is net of debt issuance costs and discount of $3.8 million and $5.2 million as of September 30, 2025 and December 31, 2024, respectively. The Corporate Debt is secured by substantially all assets of the Company not otherwise pledged under a securitized debt or warehouse facility and contains certain reporting and financial covenants. Should the Company fail to adhere to those covenants, the lenders have the right to demand immediate repayment that may require the Company to sell the collateral at less than the carrying amounts. As of September 30, 2025, the Company was in compliance with all covenants.

(b)
Warehouse Repurchase and Revolving Loan Facilities, Net

On January 4, 2011, Century entered into a Master Participation and Facility Agreement with a bank (“the September 2022 Term Repurchase Agreement”). The Facility Agreement has a current extended maturity date of July 31, 2026, and is a short-term borrowing facility, collateralized by performing loans, with a maximum capacity of $60.0 million, and bears interest at one-month SOFR plus 1.60% with a 0.25% floor.

On May 17, 2013, the Company entered into a Repurchase Agreement (“the 2013 Repurchase Agreement”) with a warehouse lender. The 2013 Repurchase Agreement is a modified mark-to-market agreement and has a current maturity date of September 23, 2026, and is a short-term borrowing facility, collateralized by a pool of performing loans, with a maximum capacity of $400.0 million, and bears interest at SOFR plus 2.75%. All borrower payments on loans financed under the warehouse repurchase facility are first used to pay interest on the facility.

On January 29, 2021, the Company entered into a non-mark-to-market Repurchase Agreement (“the 2021 Repurchase Agreement”) with a warehouse lender. The 2021 Repurchase Agreement has a current extended maturity date of May 20, 2026, and is a short-term borrowing facility, collateralized by a pool of loans. On July 25, 2024, the Company entered into a mark-to-market Repurchase Agreement (“the 2024 Repurchase Agreement”) with the same warehouse lender. The 2024 Repurchase Agreement also has a maturity date of May 20, 2026, and is a short-term borrowing facility, collateralized by a pool of loans. The maximum capacity under both agreements is $200.0 million individually and in the aggregate. The 2024 Repurchase Agreement includes a $75.0 million sublimit for nonperforming loans. Borrowings under these two facilities bear interest at SOFR plus 3.00% during the availability period and 4.00% during the amortization period. All borrower payments on loans financed under the warehouse repurchase facilities are first used to pay interest on the facilities.

On April 16, 2021, the Company entered into a non-mark-to-market Term Repurchase Agreement (“the 2021 Term Repurchase Agreement”) with a warehouse lender. The 2021 Term Repurchase Agreement has a maturity date of April 14, 2028, with an extended borrowing period through April 14, 2027. During the borrowing period, the Company can take loan advances from time to time, subject to availability. Each loan advance bears interest at SOFR plus 2.95%. The maximum capacity under this facility is $100.0 million.

On December 27, 2023, the Company entered into a loan facility agreement (“the 2023 Repurchase Agreement”) with a bank. The 2023 Repurchase Agreement has a maturity date of December 27, 2026. During the borrowing period, the Company can take loan advances from time to time subject to availability. Each loan advance bears interest at SOFR plus 3.00%. The maximum loan amount under this facility is $125.0 million.

On November 7, 2024, the Company entered into a non-mark-to-market secured revolving loan facility agreement (“the 2024 Bank Credit Agreement”) with a bank. The 2024 Bank Credit Agreement has a current maturity date of May 7, 2027. Each loan advance bears interest at SOFR plus 3.50%, with a floor of 2.00%. The maximum loan amount under this facility is $50.0 million.

Certain loans are pledged as collateral under the warehouse repurchase facilities and the revolving loan facility, which contain covenants. Should the Company fail to adhere to those covenants or otherwise default under the facilities, the lenders have the right to terminate the facilities and demand immediate repayment that may require the Company to sell the collateral at less than the carrying amounts. As of September 30, 2025 and December 31, 2024, the Company was in compliance with all covenants.

The following table summarizes the maximum borrowing capacity, current gross balances outstanding, and effective interest rates of the Company’s warehouse facilities and loan agreements as of September 30, 2025 and December 31, 2024:

 

 

 

 

 

 

September 30, 2025

 

 

 

December 31, 2024

 

 

 

 

Contract Date

 

Maturity Date

 

Period End
Balance (1)

 

 

Maximum
Borrowing
Capacity

 

 

Effective Interest Rate

 

 

 

Period End
Balance (1)

 

 

Maximum
Borrowing
Capacity

 

 

Effective Interest Rate

 

 

 

 

 

 

 

 

($ in thousands)

The September 2022 term repurchase agreement

 

01/04/11

 

07/31/26

 

$

2,071

 

 

$

60,000

 

 

 

6.0

 

%

 

$

—

 

 

$

60,000

 

 

 

6.5

 

%

The 2013 repurchase agreement

 

05/17/13

 

09/23/26

 

 

126,935

 

 

 

400,000

 

 

 

7.8

 

 

 

 

106,675

 

 

 

300,000

 

 

 

9.0

 

 

The 2021/2024 repurchase agreements

 

1/29/2021
7/25/2024

 

05/20/26

 

 

106,457

 

 

 

200,000

 

 

 

8.0

 

 

 

 

126,815

 

 

 

200,000

 

 

 

9.0

 

 

The 2021 term repurchase agreement

 

04/16/21

 

04/14/28

 

 

28,448

 

 

 

100,000

 

 

 

7.7

 

 

 

 

52,408

 

 

 

100,000

 

 

 

8.5

 

 

The 2023 repurchase agreement

 

12/27/23

 

12/27/26

 

 

43,200

 

 

 

125,000

 

 

 

8.4

 

 

 

 

44,900

 

 

 

75,000

 

 

 

9.7

 

 

The 2024 bank credit agreement

 

11/07/24

 

05/07/27

 

 

27,585

 

 

 

50,000

 

 

 

8.8

 

 

 

 

19,248

 

 

 

50,000

 

 

 

9.2

 

 

Total

 

 

 

 

 

$

334,696

 

 

$

935,000

 

 

 

 

 

 

$

350,046

 

 

$

785,000

 

 

 

 

 
(1)
Warehouse repurchase facilities amounts on the Consolidated Balance Sheets are net of debt issuance costs, amounting to $2.3 million and $2.0 million as of September 30, 2025 and December 31, 2024, respectively.

The following table provides an overview of the activity and effective interest rates of the Company’s warehouse facilities and loan agreements for the three and nine months ended September 30, 2025 and 2024:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

($ in thousands)

 

Average outstanding balance

 

$

404,509

 

 

$

311,560

 

 

$

417,247

 

 

$

280,716

 

Highest outstanding balance at any month-end

 

 

570,059

 

 

 

435,700

 

 

 

571,834

 

 

 

435,700

 

Effective interest rate (1)

 

 

8.18

%

 

 

9.12

%

 

 

8.00

%

 

 

9.32

%

 

(1)
Effective interest rate represents annualized interest expense divided by average gross outstanding balance. The rate includes average rate of 7.69% and 8.71%, and debt issuance cost amortization of 0.49% and 0.41%, for the three months ended September 30, 2025 and 2024, respectively, and includes average rate of 7.54% and 8.76%, and debt issuance cost amortization of 0.46% and 0.56%, for the nine months ended September 30, 2025 and 2024, respectively.

The following table provides a summary of interest expense that includes interest, amortization of discount, and deal cost amortization of the Company’s warehouse facilities, securitizations and other financing for the three and nine months ended September 30, 2025 and 2024:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

(In thousands)

 

Warehouse and repurchase facilities

 

$

8,277

 

 

$

7,105

 

 

$

25,037

 

 

$

19,612

 

Securitized debt

 

 

80,622

 

 

 

56,766

 

 

 

220,788

 

 

 

159,122

 

Interest expense — portfolio related

 

 

88,899

 

 

 

63,871

 

 

 

245,825

 

 

 

178,734

 

Interest expense — corporate debt

 

 

6,144

 

 

 

6,143

 

 

 

18,429

 

 

 

17,677

 

Total interest expense

 

$

95,043

 

 

$

70,014

 

 

$

264,254

 

 

$

196,411