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Fair Value Measurement | 9 Months Ended
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Sep. 30, 2025
Fair Value Disclosures [Abstract] |
Fair Value Measurement | Fair Value Measurement The following table presents assets and liabilities measured at fair value on a recurring basis:
|  | Fair Value Measurement
(in thousands) |  | September 30, 2025 |  | December 31, 2024
Level 1 |  |  |  |
Investment securities |  | $ | 1,429 |  |  | $ | 1,517 |
Level 3 |  |  |  |
Loans held for sale, net |  | 8,797 |  |  | 10,970 |
The following table illustrates assets and liabilities measured at fair value on a nonrecurring basis:
|  | Fair Value Measurement
(in thousands) |  | September 30, 2025 |  | December 31, 2024
Level 3 |  |  |  |
Individually evaluated loans, net of allowance for credit losses |  | $ | 77,619 |  |  | $ | 80,757 |
Real estate owned, net |  | 18,912 |  |  | 18,574 |
There were no nonrecurring fair value adjustments to the above assets for the nine months ended September 30, 2025. The following table presents the carrying amounts and fair values of financial instruments at September 30, 2025 and December 31, 2024:
|  | Carrying Amount |  | Fair Value Measurement
(in thousands) |  | September 30, 2025 |  | December 31, 2024 |  | September 30, 2025 |  | December 31, 2024
Level 1 |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 11,172 |  |  | $ | 18,066 |  |  | $ | 11,172 |  |  | $ | 18,066 |
Notes payable (listed) – fixed rate debt |  | 173,254 |  |  | 230,239 |  |  | 162,449 |  |  | 194,810 |
Investment securities |  | 1,429 |  |  | 1,517 |  |  | 1,429 |  |  | 1,517 |
Level 2 |  |  |  |  |  |  |  |
Lines of credit and repurchase agreements – variable rate debt |  | 40,565 |  |  | 73,708 |  |  | 40,565 |  |  | 73,708 |
Level 3 |  |  |  |  |  |  |  |
Loans held for investment, net |  | 361,740 |  |  | 356,571 |  |  | 361,740 |  |  | 356,571 |
Loans held for sale, net |  | 8,797 |  |  | 10,970 |  |  | 8,797 |  |  | 10,970 |
Interest and fees receivable and due from borrowers |  | 9,859 |  |  | 8,918 |  |  | 9,859 |  |  | 8,918 |
Investments in limited liability companies |  | 41,167 |  |  | 53,942 |  |  | 41,167 |  |  | 53,942 |
Advances from borrowers |  | 5,811 |  |  | 4,047 |  |  | 5,811 |  |  | 4,047 |
Senior secured notes payable |  | 90,000 |  |  | — |  |  | 91,038 |  |  | — |
Mortgage payable |  | 939 |  |  | 1,002 |  |  | 939 |  |  | 1,002 |
Loans held for investment, net/Loans held for sale, net/Real estate owned, net (Level 3): The Company utilizes third-party appraisals of collateral in determining the fair value of the underlying asset, with unobservable inputs of appraised value adjustments made by management for qualitative factors such as economic conditions and estimated liquidation expenses. The Company estimates liquidation as a selling cost percentage in connection with the asset, which typically ranges from 1-8%. Impact of Fair Value of Available-for-sale Securities on Other Comprehensive Income The following table presents the impact of the Company’s AFS securities - debt securities on its Other Comprehensive Income (“OCI”) for the three and nine months ended September 30, 2025 and 2024:
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (in thousands) |  | (in thousands)
OCI from AFS securities – debt securities: |  |  |  |  |  |  |
Unrealized gain on debt securities at beginning of period | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 316 |
Reversal of losses from unrealized to realized | — |  |  | — |  |  | — |  |  | (65) |
Unrealized holding losses on AFS securities | — |  |  | — |  |  | — |  |  | (251) |
Change in OCI from AFS debt securities | — |  |  | — |  |  | — |  |  | (316) |
Balance at end of period | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
As of September 30, 2025 and December 31, 2024, the Company did not hold any debt securities.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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