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Fair Value Measurement
 9 Months Ended
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, 2025December 31, 2024
Level 1
Investment securities$1,429 $1,517 
Level 3
Loans held for sale, net8,797 10,970 
The following table illustrates assets and liabilities measured at fair value on a nonrecurring basis:
Fair Value Measurement
(in thousands)September 30, 2025December 31, 2024
Level 3
Individually evaluated loans, net of allowance for credit losses$77,619 $80,757 
Real estate owned, net18,912 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 AmountFair Value Measurement
(in thousands)September 30, 2025December 31, 2024September 30, 2025December 31, 2024
Level 1
Cash and cash equivalents$11,172 $18,066 $11,172 $18,066 
Notes payable (listed) – fixed rate debt173,254 230,239 162,449 194,810 
Investment securities1,429 1,517 1,429 1,517 
Level 2
Lines of credit and repurchase agreements – variable rate debt40,565 73,708 40,565 73,708 
Level 3
Loans held for investment, net361,740 356,571 361,740 356,571 
Loans held for sale, net8,797 10,970 8,797 10,970 
Interest and fees receivable and due from borrowers9,859 8,918 9,859 8,918 
Investments in limited liability companies41,167 53,942 41,167 53,942 
Advances from borrowers5,811 4,047 5,811 4,047 
Senior secured notes payable90,000 — 91,038 — 
Mortgage payable939 1,002 939 1,002 
Loans held for investment, net/Loans held for sale, net/Real estate owned, net (Level 3): The Company utilizes third-party appraisals of collateral in determining the fair value of the underlying asset, with unobservable inputs of appraised value adjustments made by management for qualitative factors such as economic conditions and estimated liquidation expenses. The Company estimates liquidation as a selling cost percentage in connection with the asset, which typically ranges from 1-8%.
Impact of Fair Value of Available-for-sale Securities on Other Comprehensive Income
The following table presents the impact of the Company’s AFS securities - debt securities on its Other Comprehensive Income (“OCI”) for the three and nine months ended September 30, 2025 and 2024:
Three Months EndedNine Months Ended
September 30,September 30,
2025202420252024
(in thousands)(in thousands)
OCI from AFS securities – debt securities:
Unrealized gain on debt securities at beginning of period$— $— $— $316 
Reversal of losses from unrealized to realized— — — (65)
Unrealized holding losses on AFS securities— — — (251)
Change in OCI from AFS debt securities— — — (316)
Balance at end of period$— $— $— $— 
As of September 30, 2025 and December 31, 2024, the Company did not hold any debt securities.