Loans include loans held for investment that are accounted for at amortized cost net of allowance for credit losses and loans held for sale that are accounted for at the lower of cost or market net of a valuation allowance. The classification for a loan is based on management’s strategy for the loan.

As of September 30, 2025 and December 31, 2024, the Company had direct reserves on outstanding principal for loans held for investment of $5.5 million and $13.3 million, respectively.

The Company offers mortgage notes receivable to be sold in real estate capital markets. The Company does not originate loans with the intent to designate them as loans held for sale. Nevertheless, as of September 30, 2025, the Company had designated seven loans as held for sale. These seven loans had a gross outstanding principal balance of $9.4 million and an aggregate valuation allowance of $0.6 million based on the lower of cost or market value. As of December 31, 2024, the Company had designated 11 loans as held for sale. These loans had a gross outstanding principal balance of $15.9 million and an aggregate valuation allowance of $4.9 million based on the lower of cost or market value. As of both September 30, 2025 and December 31, 2024, such loans were on non-accrual status and pending foreclosure.


	Balance as of December 31, 2024		Transfers in		Change in valuation allowance		Transfers out, net		Balance as of September 30, 2025
	(in thousands)
Loans held for sale, net	$	10,970	$	—	$	1,014	$	(3,187)	$	8,797
Total loans held for sale, net	$	10,970	$	—	$	1,014	$	(3,187)	$	8,797

As of September 30, 2025 and December 31, 2024, loans held for investment on non-accrual status had an outstanding principal balance of $104.1 million and $87.1 million, respectively. The non-accrual loans are inclusive of loans pending foreclosure. The following table summarizes the Company’s loan portfolio by past due status:


	Loans held for investment
(in thousands)	Current		30-59 days past due		60-89 days past due		Greater than 90 days		Total
As of September 30, 2025	$	261,595	$	9,559	$	—	$	104,066	$	375,220
As of June 30, 2025	$	257,780	$	6,065	$	1,295	$	119,599	$	384,739
As of March 31, 2025	$	220,538	$	37,617	$	2,114	$	107,591	$	367,860
As of December 31, 2024	$	223,513	$	49,460	$	16,936	$	87,082	$	376,991

As of September 30, 2025, the Company’s mortgage loan portfolio includes loans with stated interest rates ranging from 7.0% to 15.0%. The default interest rate is generally 18.0%, but could be more or less depending on state usury laws and other considerations deemed relevant by the Company.

As of September 30, 2025 and December 31, 2024, the Company had one borrower representing 13.4% and 14.0% of the outstanding mortgage loan portfolio, or $50.4 million and $55.0 million, respectively. These loans are included in our nonperforming loan portfolio.


	September 30, 2025				December 31, 2024
(in thousands)	Carrying Value		% of Portfolio		Carrying Value		% of Portfolio
New England	$	158,731	42.3	%	$	179,421	47.6	%
Mid-Atlantic	40,096		10.7	%	42,304		11.2	%
South	176,393		47.0	%	151,165		40.1	%
West	—		—	%	4,101		1.1	%
Total	$	375,220	100.0	%	$	376,991	100.0	%

The following tables present the carrying value of the Company’s loans held for investment portfolio based on credit quality indicators in assessing estimated credit losses and vintage of origination at the dates indicated:


	September 30, 2025		Year Originated (1)
FICO Score (2)(in thousands)	Carrying Value		2025		2024		2023		2022		2021		Prior
Loans held for investment:
Under 500	$	142	$	—	$	142	$	—	$	—	$	—	$	—
501-550	1,072		—		—		—		—		944		128
551-600	286		286		—		—		—		—		—
601-650	19,005		2,743		6,840		1,052		1,795		—		6,575
651-700	85,601		17,851		4,755		6,777		9,961		44,866		1,391
701-750	117,296		19,278		7,089		27,134		756		62,088		951
751-800	134,194		35,268		22,943		42,869		13,355		19,759		—
801-850	17,624		3,285		—		1,700		12,639		—		—
Total	$	375,220	$	78,711	$	41,769	$	79,532	$	38,506	$	127,657	$	9,045


	December 31, 2024		Year Originated (1)
FICO Score (2)(in thousands)	Carrying Value		2024		2023		2022		2021		2020		Prior
Loans held for investment:
Under 500	$	140	$	140	$	—	$	—	$	—	$	—	$	—
501-550	2,860		—		—		—		1,060		—		1,800
551-600	7,094		1,222		290		2,170		1,816		636		960
601-650	28,779		8,432		3,347		1,798		7,411		6,149		1,642
651-700	35,711		4,250		7,177		10,302		12,079		660		1,243
701-750	159,575		6,275		40,459		11,982		97,980		1,023		1,856
751-800	124,599		26,465		32,016		36,280		28,427		1,411		—
801-850	18,233		—		415		17,818		—		—		—
Total	$	376,991	$	46,784	$	83,704	$	80,350	$	148,773	$	9,879	$	7,501


(in thousands)	Three Months Ended September 30, 2025
	Carrying Value		% of Total Carrying Value of Loans held for investment, net		Financial Effect
Principal modification, with no term extension	$	—	—	%	Unpaid interest/taxes/charges added to principal balance
Term extension	$	28,952	8.0	%	A weighted average of 9.9 months were added to the life of the loans


(in thousands)	Three Months Ended September 30, 2024
	Carrying Value		% of Total Carrying Value of Loans held for investment, net		Financial Effect
Principal modification, with no term extension	$	11,835	2.6	%	Unpaid interest/taxes/charges added to principal balance
Term extension	$	16,113	3.5	%	A weighted average of 5.0 months were added to the life of the loans


(in thousands)	Nine Months Ended September 30, 2025
	Carrying Value		% of Total Carrying Value of Loans held for investment, net		Financial Effect
Principal modification, with no term extension	$	15,130	4.2	%	Unpaid interest/taxes/charges added to principal balance
Term extension	$	75,269	20.8	%	A weighted average of 7.9 months were added to the life of the loans


(in thousands)	Nine Months Ended September 30, 2024
	Carrying Value		% of Total Carrying Value of Loans held for investment, net		Financial Effect
Principal modification, with no term extension	$	33,500	7.3	%	Unpaid interest/taxes/charges added to principal balance
Term extension	$	132,602	29.0	%	A weighted average of 8.4 months were added to the life of the loans

As of September 30, 2025, the Company had commitments to lend additional amounts totaling approximately $6.8 million to borrowers experiencing financial difficulty. During the nine months ended September 30, 2025, the

Company modified the interest rate on thirteen loans with an outstanding principal balance of $30.4 million. The change in the rate was due to taking the loan off default rate.

The following table presents the performance of loans that have been modified in the last 12 months to borrowers experiencing financial difficulty. Of the loans that were modified in the last 12 months to borrowers experiencing financial difficulty, one loan defaulted during the period.


	As of September 30, 2025
(in thousands)	Current		90-119 days past due		120+ days past due		Total
Principal modification, with no term extension	$	15,130	$	—	$	—	$	15,130
Term extension	$	70,767	$	4,502	$	—	$	75,269

As of September 30, 2025 and December 31, 2024, the Company had $2.4 million and $2.0 million, respectively, of deferred loan fee revenue relating to loans held for investment. There were no such deferred fees for loans held for sale as of September 30, 2025 and December 31, 2024.

The following table presents the financial statement line items that are impacted by the allowance for credit losses for the three months ended September 30, 2025:


	Balance as of June 30, 2025		Provision for (recovery of) credit losses related to loans		Reclassification of loans held for sale to loans held for investment		Charge-offs		Balance as of September 30, 2025

	(in thousands)
Loans held for investment	$	17,645	$	(3,923)	$	—	$	(2,639)	$	11,083
Interest and fees receivable	3,074		(159)		—		—		2,915
Due from borrower	1,676		674		—		(1,444)		906
Unfunded commitments	1,029		(146)		—		—		883
Real estate owned	—		4,366		—		(4,366)		—
Total allowance for credit losses	$	23,424	$	812	$	—	$	(8,449)	$	15,787


	Balance as of December 31, 2024		Provision for (recovery of) credit losses related to loans		Reclassification of loans held for sale to loans held for investment		Charge-offs		Balance as of September 30, 2025

	(in thousands)
Loans held for investment	$	18,470	$	(6,905)	$	3,292	$	(3,774)	$	11,083
Interest and fees receivable	3,133		(218)		—		—		2,915
Due from borrower	1,135		1,608		—		(1,837)		906
Unfunded commitments	924		(41)		—		—		883
Real estate owned	—		8,344		—		(8,344)		—
Total allowance for credit losses	$	23,662	$	2,788	$	3,292	$	(13,955)	$	15,787

The following table presents activity in the allowance for credit losses by geographic location with respect to loans held for investment for the three months ended September 30, 2025:


	Allowance for credit losses as of June 30, 2025		Provision for (recovery of) credit losses related to loans		Reclassification of loans held for sale to loans held for investment		Charge-offs		Allowance for credit losses as of September 30, 2025
	(in thousands)
New England	$	10,466	$	(4,162)	$	—	$	—	$	6,304
Mid-Atlantic	4,056		(255)		—		(2,639)		1,162
South	1,290		449		—		—		1,739
West	1,833		45		—		—		1,878
Total	$	17,645	$	(3,923)	$	—	$	(2,639)	$	11,083

The following table presents activity in the allowance for credit losses by geographic location with respect to loans held for investment for the nine months ended September 30, 2025:


	Allowance for credit losses as of December 31, 2024		Provision for (recovery of) credit losses related to loans		Reclassification of loans held for sale to loans held for investment		Charge-offs		Allowance for credit losses as of September 30, 2025
	(in thousands)
New England	$	12,844	$	(9,832)	$	3,292	$	—	$	6,304
Mid-Atlantic	1,857		2,411		—		(3,106)		1,162
South	1,802		605		—		(668)		1,739
West	1,967		(89)		—		—		1,878
Total	$	18,470	$	(6,905)	$	3,292	$	(3,774)	$	11,083

The following table presents charge-offs on loan principal related to loans held for investment by fiscal year of origination for the three months ended September 30, 2025:


	2025		2024		2023		2022		2021		Prior		Total
	(in thousands)
Current period charge-offs	$	—	$	—	$	—	$	158	$	2,481	$	—	$	2,639
Total	$	—	$	—	$	—	$	158	$	2,481	$	—	$	2,639

The following table presents charge-offs on loan principal related to loans held for investment by fiscal year of origination for the nine months ended September 30, 2025:


	2025		2024		2023		2022		2021		Prior		Total
	(in thousands)
Current period charge-offs	$	—	$	134	$	—	$	645	$	2,995	$	—	$	3,774
Total	$	—	$	134	$	—	$	645	$	2,995	$	—	$	3,774