The Company is restating its financial statements to reclassify certain specialty finance loans that were placed on nonaccrual, reserved for, or charged off in the interim periods ended March 31, 2023 and June 30, 2023, and to report such specialty finance loans as nonaccrual, reserved for, or charged off in earlier periods.

The effect of the adjustments has resulted in lower net income and earnings per share for the year ended December 31, 2022. Balance sheet amounts, including loans held for investment, allowance for loan losses, accrued interest receivable, deferred tax asset, other assets, and stockholders’ equity, are affected as of December 31, 2022.

The following tables provide a summary of the adjustments as of and for the year ended December 31, 2022 included in the Explanatory Note of this Form 10-K/A.


	For the year ended December 31, 2022
Dollars in thousands, except per share data	As Reported		Adjustments				As Restated
Net interest income	$	110,391	$	(5,824	)	(a)	$	104,567
Provision for loan losses		17,886		7,801		(b)		25,687
Income (loss) from continuing operations before income tax expense		35,821		(13,625	)			22,196
Income tax expense (benefit)		8,244		(3,045	)	(c)		5,199
Net income from continuing operations	$	27,577	$	(10,580	)		$	16,997
Basic and diluted earnings (loss) per common share from continuing operations	$	1.46	$	(0.56	)		$	0.90


	As of December 31, 2022
Dollars in thousands	As Reported			Adjustments				As Restated
Loans held for investment, net of deferred fees and costs	$	2,399,092		$	—			$	2,399,092
Allowance for loan losses		(22,939	)		(7,801	)	(b)		(30,740	)
Accrued interest receivable		12,393			(824	)	(d)		11,569
Deferred tax asset, net		9,182			3,045		(c)		12,227
Other assets		19,175			(5,000	)	(a)		14,175
Total assets	$	3,141,045		$	(10,580	)		$	3,130,465
Total stockholders' equity	$	259,373		$	(10,580	)		$	248,793

(a) - Attributable to $65.7 million of specialty finance loans reported as nonaccrual (as restated), previously reported as accruing as of December 31, 2022. See Note 4 for restated disclosures.
(b) - Attributable to incremental specific reserves for specialty finance loans. See Note 4 for restated disclosures.
(c) - Deferred income tax benefit of 22.35% on pre-tax adjustments. See Note 17 for restated disclosures.
(d) - Related to reversal of accrued loan fees associated with adjustment (a).