SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE

12 Months Ended

Dec. 31, 2023

SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]

SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE

Schedule IV—Mortgage Loans on Real Estate

December 31, 2023

(dollars in thousands, except footnotes)

															Principal
															Amount of
															Loans Subject
Geographic	Number								Final			Carrying			to Delinquent
Dispersion of	of	Size of Loans							Maturity			Amount of			Principal or
Collateral	Loans	From		To		Interest Rate			Date Range			Mortgages			“Interest”
SBA 7(a) Loans - States 2% or greater (1) (2):
Ohio	16	$	100	$	800	9.75%	to	11.25%	07/28/41	—	11/06/48	$	7,876		$	—
Texas	19	$	20	$	850	9.50%	to	11.25%	07/13/34	—	06/13/48	7,140			—
Michigan (3)	14	$	20	$	940	9.00%	to	11.25%	12/10/34	—	12/18/48	4,044			198
Florida	11	$	30	$	1,030	10.50%	to	11.25%	06/29/32	—	02/07/48	3,957			—
Indiana	7	$	80	$	930	10.00%	to	11.25%	05/14/36	—	08/26/46	2,770			—
Louisiana	6	$	60	$	960	9.50%	to	11.25%	11/22/31	—	12/07/48	2,408			—
West Virginia	7	$	50	$	850	10.00%	to	11.25%	09/25/31	—	09/07/47	2,400			—
Kentucky	7	$	60	$	430	10.25%	to	11.25%	03/11/33	—	05/08/48	1,893			—
Pennsylvania	4	$	290	$	660	10.25%	to	11.25%	03/05/40	—	11/29/43	1,810			—
North Carolina	7	$	50	$	760	10.25%	to	11.25%	09/08/32	—	04/25/47	1,771			—
Illinois	9	$	50	$	280	10.25%	to	11.25%	09/08/39	—	10/26/47	1,564			—
New York	4	$	190	$	700	10.50%	to	11.25%	02/11/47	—	09/26/48	1,472			—
Washington	2	$	300	$	1,140	10.00%	to	10.75%	03/09/46	—	10/12/48	1,435			—
Colorado	4	$	260	$	500	10.00%	to	10.75%	02/17/41	—	05/22/48	1,406			—
Montana	4	$	150	$	470	9.50%	to	11.00%	07/14/45	—	10/10/48	1,365			—
New Mexico	4	$	90	$	750	9.50%	to	11.25%	11/17/34	—	04/19/48	1,329			—
Georgia	5	$	100	$	320	10.50%	to	11.25%	12/28/34	—	08/11/47	1,133			—
Other	39	$	20	$	850	9.50%	to	11.25%	07/27/25	—	11/17/49	9,831			—
Government guaranteed portions (4)												74			—
SBA 7(a) loans, subject to secured borrowings (5)												3,007			—
Current expected credit losses												(1,680)			—
	169											$	57,005	(6)	$	198

(1)Includes $724,000 of loans with subordinate lien positions.

(2)Interest rates are variable at spreads over the prime rate unless otherwise noted.

(3)Includes a loan with a retained face value of $172,000 and a fixed interest rate of 9.00%.

(4)Represents the government guaranteed portions of the Company’s SBA 7(a) loans detailed above retained by us. As there is no risk of loss to us related to these portions of the guaranteed loans, the geographic information is not presented as it is not meaningful.

(5)Represents the guaranteed portion of SBA 7(a) loans which were sold with the proceeds received from the sale reflected as secured borrowings. For Federal income tax purposes, these proceeds are treated as sales and reduce the carrying value of loans receivable.

(6)For Federal income tax purposes, the aggregate cost basis of the Company’s loans was approximately $54.5 million (unaudited).

Schedule IV—Mortgage Loans on Real Estate (Continued)

December 31, 2023

(in thousands)

	Year Ended December 31,
	2023		2022
Balance, beginning of period	$	62,547	$	73,543
Additions during period:
New loans	45,188		40,619
Other - deferral of loan origination costs	742		1,086
Other - bad debt recovery	125		—
Other - accretion of loan discounts, net of amortization of deferred origination costs	1,643		1,836
Deductions during period:
Collections of principal	(16,843)		(20,250)
Cost of mortgages sold, net	(35,614)		(34,124)
Other - adoption of ASU 2016-13 (1)	(783)		—
Other - bad debt expense	—		(163)
Balance, end of period	$	57,005	$	62,547

(1)Effective January 1, 2023, the Company adopted ASU 2016-13 and recorded a cumulative adjustment of $783,000 representing a non cash transaction.