Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 09, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | Shepherd's Finance, LLC | |
Entity Central Index Key | 0001544190 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 0 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 1,912 | $ 1,401 |
Accrued interest receivable | 697 | 568 |
Loans receivable, net | 49,991 | 46,490 |
Foreclosed assets | 6,069 | 5,973 |
Premises and equipment | 1,030 | 1,051 |
Other assets | 80 | 327 |
Total assets | 59,779 | 55,810 |
Liabilities and Members' Capital | ||
Customer interest escrow | 1,289 | 939 |
Accounts payable and accrued expenses | 581 | 724 |
Accrued interest payable | 2,098 | 2,140 |
Notes payable secured, net of deferred financing costs | 26,085 | 23,258 |
Notes payable unsecured, net of deferred financing costs | 23,231 | 22,635 |
Due to preferred equity member | 34 | 32 |
Total liabilities | 53,318 | 49,728 |
Commitments and Contingencies (Note 9) | ||
Redeemable Preferred Equity | ||
Series C preferred equity | 2,457 | 2,385 |
Members' Capital | ||
Series B preferred equity | 1,380 | 1,320 |
Class A common equity | 2,624 | 2,377 |
Members' capital | 4,004 | 3,697 |
Total liabilities, redeemable preferred equity and members' capital | $ 59,779 | $ 55,810 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest Income | ||
Interest and fee income on loans | $ 2,432 | $ 1,707 |
Interest expense: | ||
Interest related to secured borrowings | 681 | 411 |
Interest related to unsecured borrowings | 625 | 450 |
Interest expense | 1,306 | 861 |
Net interest income | 1,126 | 846 |
Less: Loan loss provision | 47 | 40 |
Net interest income after loan loss provision | 1,079 | 806 |
Non-Interest Income | ||
Gain from foreclosure of assets | ||
Total non-interest income | ||
Income | 1,079 | 806 |
Non-Interest Expense | ||
Selling, general and administrative | 624 | 497 |
Depreciation and amortization | 23 | 17 |
Impairment loss on foreclosed assets | 80 | 5 |
Total non-interest expense | 727 | 519 |
Net Income | 352 | 287 |
Earned distribution to preferred equity holders | 105 | 63 |
Net income attributable to common equity holders | $ 247 | $ 224 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statements of Changes in Members' Capital (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Members' capital, beginning balance | $ 3,697 | $ 3,686 |
Net income | 352 | 287 |
Contributions from members (preferred) | 60 | |
Earned distributions to preferred equity holders | (105) | (63) |
Distributions to common equity holders | (22) | |
Members' capital, ending balance | $ 4,004 | $ 3,888 |
Interim Condensed Consolidate_4
Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operations | ||
Net income | $ 352 | $ 287 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||
Amortization of deferred financing costs | 65 | 48 |
Provision for loan losses | 47 | 40 |
Net loan origination fees deferred | 54 | 85 |
Change in deferred origination expense | 5 | (23) |
Impairment of foreclosed assets | 80 | 5 |
Depreciation and amortization | 23 | 17 |
Net change in operating assets and liabilities: | ||
Other assets | 247 | (39) |
Accrued interest receivable | (129) | (246) |
Customer interest escrow | 350 | (149) |
Accounts payable and accrued expenses | (185) | (207) |
Net cash provided by (used in) operating activities | 906 | (182) |
Cash flows from investing activities | ||
Loan originations and principal collections, net | (3,606) | (9,751) |
Investment in foreclosed assets | (176) | (48) |
Property plant and equipment additions | (25) | |
Net cash used in investing activities | (3,782) | (9,824) |
Cash flows from financing activities | ||
Contributions from preferred equity holders | 60 | |
Distributions to preferred equity holders | (32) | (30) |
Distributions to common equity holders | (22) | |
Proceeds from secured note payable | 5,262 | 7,581 |
Repayments of secured note payable | (2,459) | (1,665) |
Proceeds from unsecured notes payable | 3,925 | 4,479 |
Redemptions/repayments of unsecured notes payable | (3,087) | (3,400) |
Deferred financing costs paid | (282) | (35) |
Net cash provided by financing activities | 3,387 | 6,908 |
Net increase (decrease) in cash and cash equivalents | 511 | (3,098) |
Cash and cash equivalents | ||
Beginning of period | 1,401 | 3,478 |
End of period | 1,912 | 380 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 1,348 | 813 |
Non-cash investing and financing activities | ||
Earned but not paid distribution of preferred B equity holders | 34 | 33 |
Earned but not paid preferred C equity holders | $ 72 | $ 33 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | 1. Description of Business and Basis of Presentation Description of Business Shepherd’s Finance, LLC and subsidiary (the “Company”) was originally formed as a Pennsylvania limited liability company on May 10, 2007. The Company is the sole member of a consolidating subsidiary, 84 REPA, LLC. The Company operates pursuant to its Second Amended and Restated Operating Agreement, as amended, by and among Daniel M. Wallach and the other members of the Company effective as of March 16, 2017. As of March 31, 2019, the Company extends commercial loans to residential homebuilders (in 21 states) to: ● construct single family homes, ● develop undeveloped land into residential building lots, and ● purchase and improve for sale older homes. Basis of Presentation The accompanying (a) interim condensed consolidated balance sheet as of December 31, 2018, which has been derived from audited consolidated financial statements, and (b) unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. While certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), management believes that the disclosures herein are adequate to make the unaudited interim condensed consolidated information presented not misleading. In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of the consolidated financial position, results of operations, and cash flows for the periods presented. Such adjustments are of a normal, recurring nature. The consolidated results of operations for any interim period are not necessarily indicative of results expected for the fiscal year ending December 31, 2019. These unaudited interim condensed consolidated financial statements should be read in conjunction with the 2018 consolidated financial statements and notes thereto (the “2018 Financial Statements”) included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (the “2018 Form 10-K”). The accounting policies followed by the Company are set forth in Note 2 – Summary of Significant Accounting Policies Accounting Standards Adopted in the Period Accounting Standards Update (“ASU”) 2016-01, “ Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (An Amendment of FASB ASC 825). ASU 2016-01 became effective for the Company on January 1, 2018. The adoption of ASU 2016-01 did not have a material impact on the Company’s consolidated financial statements. ASU 2014-09, “ Revenue from Contracts with Customers (Topic 606). Revenue from Contracts with Customers, Revenue Recognition Revenue Recognition – Construction-Type and Production-Type Contracts. On January 1, 2018, the Company implemented ASU 2014-09, codified at ASC Topic 606. The Company adopted ASC Topic 606 using the modified retrospective transition method. As of December 31, 2017, the Company had no uncompleted customer contracts and, as a result, no cumulative transition adjustment was made during the first quarter of 2018. Results for reporting periods beginning January 1, 2018 are presented under ASC Topic 606, while prior period amounts continue to be reported under legacy U.S. GAAP. The majority of the Company’s revenue is generated through interest earned on financial instruments, including loans, which falls outside the scope of ASC Topic 606. All of the Company’s revenue that is subject to ASC Topic 606 would be included in non-interest income; however, not all non-interest income is subject to ASC Topic 606. The Company had no contract liabilities or unsatisfied performance obligations with customers as of March 31, 2019. Reclassifications Certain prior year amounts have been reclassified for consistency with current period presentation. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 2. Fair Value The Company had no financial instruments measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018. The following tables present the balances of non-financial instruments measured at fair value on a non-recurring basis as of March 31, 2019 and December 31, 2018. Quoted Prices in Active Markets for Significant Other Significant March 31, 2019 Identical Observable Unobservable Carrying Estimated Assets Inputs Inputs Amount Fair Value Level 1 Level 2 Level 3 Foreclosed assets $ 6,069 $ 6,069 $ – $ – $ 6,069 Impaired assets 2,617 2,617 – – 2,617 Total $ 8,686 $ 8,686 $ – $ – $ 8,686 Quoted Prices in Active Significant Markets for Other Significant December 31, 2018 Identical Observable Unobservable Carrying Estimated Assets Inputs Inputs Amount Fair Value Level 1 Level 2 Level 3 Foreclosed assets $ 5,973 $ 5,973 $ – $ – $ 5,973 Impaired assets 2,503 2,503 – – 2,503 Total $ 8,476 $ 8,476 $ – $ – $ 8,476 The table below is a summary of fair value estimates for financial instruments and the level of the fair value hierarchy within which the fair value measurements are categorized at the periods indicated: Quoted Prices in Active Significant Markets for Other Significant March 31, 2019 Identical Observable Unobservable Carrying Estimated Assets Inputs Inputs Amount Fair Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 1,912 $ 1,912 $ 1,912 $ – $ – Loans receivable, net 49,991 49,991 – – 49,991 Accrued interest on loans 697 697 – – 697 Financial Liabilities Customer interest escrow 1,289 1,289 – – 1,289 Notes payable secured, net 26,085 26,085 – – 26,085 Notes payable unsecured, net 23,231 23,231 – – 23,231 Accrued interest payable 2,098 2,098 – – 2,098 Quoted Prices in Active Significant Markets for Other Significant December 31, 2018 Identical Observable Unobservable Carrying Estimated Assets Inputs Inputs Amount Fair Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 1,401 $ 1,401 $ 1,401 $ – $ – Loans receivable, net 46,490 46,490 – – 46,490 Accrued interest on loans 568 568 – – 568 Financial Liabilities Customer interest escrow 939 939 – – 939 Notes payable secured, net 23,258 23,258 – – 23,258 Notes payable unsecured, net 22,635 22,635 – – 22,635 Accrued interest payable 2,140 2,140 – – 2,140 |
Financing Receivables
Financing Receivables | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Financing Receivables | 3. Financing Receivables Financing receivables are comprised of the following as of March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 Loans receivable, gross $ 52,931 $ 49,127 Less: Deferred loan fees (1,303 ) (1,249 ) Less: Deposits (1,707 ) (1,510 ) Plus: Deferred origination costs 303 308 Less: Allowance for loan losses (233 ) (186 ) Loans receivable, net $ 49,991 $ 46,490 Commercial Construction and Development Loans Commercial Loans – Construction Loan Portfolio Summary As of March 31, 2019, the Company’s portfolio consisted of 289 commercial construction and seven development loans with 75 borrowers in 21 states. The following is a summary of the loan portfolio to builders for home construction loans as of March 31, 2019 and December 31, 2018: Year Number of States Number of Borrowers Number of Loans Value of Collateral (1) Commitment Amount Gross Amount Outstanding Loan to Value Ratio (2) Loan Fee 2019 21 75 289 $ 111,976 $ 75,343 $ 46,662 67 % (3) 5 % 2018 18 75 259 102,808 68,364 43,107 67 % (3) 5 % (1) The value is determined by the appraised value. (2) The loan to value ratio is calculated by taking the commitment amount and dividing by the appraised value. (3) Represents the weighted average loan to value ratio of the loans. Commercial Loans – Real Estate Development Loan Portfolio Summary The following is a summary of our loan portfolio to builders for land development as of March 31, 2019 and December 31, 2018: Year Number of States Number of Borrowers Number of Loans Gross Value of (1) Commitment Amount (2) Gross Amount Outstanding Loan to Value Ratio (3) Loan Fee 2019 3 3 7 $ 11,564 $ 8,010 $ 6,269 54 % $ 1,000 2018 3 4 9 10,134 7,456 6,020 59 % 1,000 (1) The value is determined by the appraised value adjusted for remaining costs to be paid. A portion of this collateral is $1,380 and $1,320 as of March 31, 2019 and December 31, 2018, respectively, of preferred equity in our Company. In the event of a foreclosure on the property securing these loans, the portion of our collateral that is preferred equity might be difficult to sell, which may impact our ability to recover the loan balance. In addition, a portion of the collateral value is estimated based on the selling prices anticipated for the homes. (2) The commitment amount does not include letters of credit and cash bonds. (3) The loan to value ratio is calculated by taking the outstanding amount and dividing by the appraised value calculated as described above. Credit Quality Information The following tables present credit-related information at the “class” level in accordance with FASB ASC 310-10-50, “ Disclosures about the Credit Quality of Finance Receivables and the Allowance for Credit Losses Gross finance receivables – By risk rating: March 31, 2019 December 31, 2018 Pass $ 47,941 $ 43,402 Special mention 2,373 3,222 Classified – accruing – – Classified – nonaccrual 2,617 2,503 Total $ 52,931 $ 49,127 Gross finance receivables – Method of impairment calculation: March 31, 2019 December 31, 2018 Performing loans evaluated individually $ 20,882 $ 19,037 Performing loans evaluated collectively 29,432 27,587 Non-performing loans without a specific reserve 2,311 2,204 Non-performing loans with a specific reserve 306 299 Total evaluated collectively for loan losses $ 52,931 $ 49,127 As March 31, 2019 and December 31, 2018, there were no loans acquired with deteriorated credit quality. Impaired Loans The following is a summary of our impaired nonaccrual commercial construction loans as of March 31, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 Unpaid principal balance (contractual obligation from customer) $ 2,617 $ 2,503 Charge-offs and payments applied - - Gross value before related allowance 2,617 2,503 Related allowance (29 ) (20 ) Value after allowance $ 2,588 $ 2,483 Concentrations Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of loans receivable. Our concentration risks for our top three customers listed by geographic real estate market are summarized in the table below: March 31, 2019 December 31, 2018 Percent of Percent of Borrower Loan Borrower Loan City Commitments City Commitments Highest concentration risk Pittsburgh, PA 23 % Pittsburgh, PA 23 % Second highest concentration risk Orlando, FL 13 % Orlando, FL 13 % Third highest concentration risk Cape Coral, FL 4 % Cape Coral, FL 4 % |
Foreclosed Assets
Foreclosed Assets | 3 Months Ended |
Mar. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Foreclosed Assets | 4. Foreclosed Assets The following table is a roll forward of foreclosed assets: Three Months Ended March 31, 2019 Year Ended December 31, 2018 Three Months Ended March 31, 2018 Beginning balance $ 5,973 $ 1,036 $ 1,036 Additions from loans - 4,738 - Additions for construction/development 176 1,608 48 Sale proceeds - (809 ) - Gain on sale - - - Loss on sale - (103 ) - Gain on foreclosure - 19 - Loss on foreclosure - (47 ) - Impairment loss on foreclosed assets (80 ) (468 ) (5 ) Ending balance $ 6,069 $ 5,973 $ 1,079 |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | 5. Borrowings The following table displays our borrowings and a ranking of priority: Priority Rank March 31, 2019 December 31, 2018 Borrowing Source Purchase and sale agreements and other secured borrowings 1 $ 25,382 $ 22,521 Secured lines of credit from affiliates 2 758 816 Unsecured line of credit (senior) 3 500 500 Other unsecured debt (senior subordinated) 4 1,008 1,008 Unsecured notes through our public offering, gross 5 18,831 17,348 Other unsecured debt (subordinated) 5 2,756 3,401 Other unsecured debt (junior subordinated) 6 590 590 Total $ 49,825 $ 46,184 The following table shows the maturity of outstanding debt as of March 31, 2019: Year Maturing Total Amount Maturing Public Offering Other Unsecured Secured Borrowings 2019 $ 32,914 $ 5,521 $ 1,887 $ 25,506 2020 5,073 4,006 1,052 15 2021 7,202 7,187 - 15 2022 3,841 2,079 1,746 16 2023 and thereafter 795 38 169 588 Total $ 49,825 $ 18,831 $ 4,854 $ 26,140 Secured Borrowings Lines of Credit As of March 31, 2019, the Company had borrowed $758 on its lines of credit from affiliates, which have a total limit of $2,500. Deferred Financing Cost The following is a roll forward of secured deferred financing costs: Three Months Year Three Months Ended Ended Ended March 31, 2019 December 31, 2018 March 31, 2018 Deferred financing costs, beginning balance $ 104 $ – $ – Additions – 104 5 Deferred financing costs, ending balance $ 104 $ 104 $ 5 Less accumulated amortization (50 ) (25 ) – Deferred financing costs, net $ 54 $ 79 $ 5 Summary Borrowings secured by loan assets are summarized below: March 31, 2019 December 31, 2018 Due from Due from Book Value of Loans which Shepherd’s Finance to Loan Book Value of Loans which Shepherd’s Finance to Loan Served as Collateral Purchaser or Lender Served as Collateral Purchaser or Lender Loan Purchaser Builder Finance, Inc. $ 9,578 $ 6,254 $ 8,742 $ 5,294 S.K. Funding, LLC 12,693 6,907 11,788 6,408 Lender Stephen K. Shuman 1,855 1,325 2,051 1,325 Paul Swanson 9,476 7,000 8,079 5,986 Total $ 33,602 $ 21,486 $ 30,660 $ 19,013 Unsecured Borrowings Unsecured Notes through the Public Offering (“Notes Program”) On March 22, 2019, the Company terminated its second public offering and commenced its third public offering of fixed rate subordinated notes (the “Notes”). The effective interest rate on borrowings through our Notes Program at March 31, 2019 and December 31, 2018 was 10.09% and 10.07%, respectively, not including the amortization of deferred financing costs. There are limited rights of early redemption. We generally offer four durations at any given time, ranging from 12 to 48 months from the date of issuance. The following table shows the roll forward of our Notes Program: Three Months Ended March 31, 2019 Year Ended December 31, 2018 Three Months Ended March 31, 2018 Gross Notes outstanding, beginning of period $ 17,348 $ 14,121 $ 14,121 Notes issued 3,532 9,645 1,309 Note repayments / redemptions (2,049 ) (6,418 ) (1,645 ) Gross Notes outstanding, end of period $ 18,831 $ 17,348 $ 13,785 Less deferred financing costs, net 454 212 267 Notes outstanding, net $ 18,377 $ 17,136 $ 13,518 The following is a roll forward of deferred financing costs: Three Months Year Three Months Ended Ended Ended March 31, 2019 December 31, 2018 March 31, 2018 Deferred financing costs, beginning balance $ 1,212 $ 1,102 $ 1,102 Additions 282 117 29 Disposals – (7 ) – Deferred financing costs, ending balance 1,494 1,212 1,131 Less accumulated amortization (1,040 ) (1,000 ) (864 ) Deferred financing costs, net $ 454 $ 212 $ 267 The following is a roll forward of the accumulated amortization of deferred financing costs: Three Months Year Three Months Ended Ended Ended March 31, 2019 December 31, 2018 March 31, 2018 Accumulated amortization, beginning balance $ 1,000 $ 816 $ 816 Additions 40 184 48 Accumulated amortization, ending balance $ 1,040 $ 1,000 $ 864 Other Unsecured Debts Our other unsecured debts are detailed below: Maturity Interest Principal Amount Outstanding as of Loan Date Rate (1) March 31, 2019 December 31, 2018 Unsecured Note with Seven Kings Holdings, Inc. Demand (2) 9.5 % $ 500 $ 500 Unsecured Line of Credit from Builder Finance, Inc. January 2020 10.0 % 500 500 Unsecured Line of Credit from Paul Swanson March 2019 10.0 % - 1,014 Subordinated Promissory Note September 2019 9.5 % 1,125 1,125 Subordinated Promissory Note December 2019 10.5 % 113 113 Subordinated Promissory Note April 2020 10.0 % 100 100 Subordinated Promissory Notes October 2019 10.0 % 150 150 Subordinated Promissory Note August 2022 11.0 % 200 - Subordinated Promissory Note September 2020 (6) 11.0 % 168 - Senior Subordinated Promissory Note March 2022 (3) 10.0 % 400 400 Senior Subordinated Promissory Note March 2022 (4) 1.0 % 728 728 Junior Subordinated Promissory Note March 2022 (4) 22.5 % 417 417 Senior Subordinated Promissory Note October 2020 (5) 1.0 % 279 279 Junior Subordinated Promissory Note October 2020 (5) 20.0 % 173 173 $ 4,853 $ 5,499 (1) (2) (3) (4) (5) (6) |
Redeemable Preferred Equity
Redeemable Preferred Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Redeemable Preferred Equity | 6. Redeemable Preferred Equity The following is a roll forward of our Series C cumulative preferred equity (“Series C Preferred Units”): Three Months Ended March 31, 2019 Year Ended December 31, 2018 Three Months Ended March 31, 2018 Beginning balance $ 2,385 $ 1,097 $ 1,097 Additions from new investment - 2,300 - Redemptions - 1,177 - Additions from reinvestment 72 165 33 Ending balance $ 2,457 $ 2,385 $ 1,130 The following table shows the earliest redemption options for investors in our Series C Preferred Units as of March 31, 2019: Year of Available Redemption Total Amount Redeemable 2024 $ 2,457 Total $ 2,457 |
Members' Capital
Members' Capital | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Members' Capital | 7. Members’ Capital There are currently two classes of equity units outstanding that the Company classifies as Members’ Capital: Class A common units (“Class A Common Units”) and Series B cumulative preferred units (“Series B Preferred Units”). As of March 31, 2019, the Class A Common Units are held by eight members, all of whom have no personal liability. All Class A common members have voting rights in proportion to their capital account. There were 2,629 Class A Common Units outstanding at both March 31, 2019 and December 31, 2018. The Series B Preferred Units were issued to the Hoskins Group through a reduction in a loan issued by the Hoskins Group to the Company. In December 2015, the Hoskins Group agreed to purchase 0.1 Series B Preferred Units for $10 at each closing of a lot to a third party in the Hamlet’s and Tuscany subdivision. As of March 31, 2019, the Hoskins Group owns a total of 13.8 Series B Preferred Units, which were issued for a total of $1,380. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 8. Related Party Transactions As of March 31, 2019, the Company had $1,108, $250, and $384 available to borrow against the line of credit from Daniel M. Wallach (our Chief Executive Officer and chairman of the board of managers) and his wife, the line of credit from the 2007 Daniel M. Wallach Legacy Trust, and the line of credit from William Myrick (our Executive Vice President of Sales), respectively. A more detailed description is included in Note 6 of our 2018 Financial Statements. These borrowings are in notes payable secured, net of deferred financing costs on the interim condensed consolidated balance sheet. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Unfunded commitments to extend credit, which have similar collateral, credit risk, and market risk to our outstanding loans, were $30,422 and $25,258 at March 31, 2019 and December 31, 2018, respectively. |
Selected Quarterly Condensed Co
Selected Quarterly Condensed Consolidated Financial Data (Unaudited) | 3 Months Ended |
Mar. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Condensed Consolidated Financial Data (Unaudited) | 10. Selected Quarterly Condensed Consolidated Financial Data (Unaudited) Summarized unaudited quarterly condensed consolidated financial data for the quarters of 2019 and 2018 are as follows: Quarter 1 Quarter 4 Quarter 3 Quarter 2 Quarter 1 2019 2018 2018 2018 2018 Net interest income after loan loss provision $ 1,079 $ 914 $ 783 $ 876 $ 806 Non-interest income – (1 ) 20 – – SG&A expense 624 403 559 571 497 Depreciation and amortization 23 21 23 21 17 Loss on sale of foreclosed assets – 100 3 – – Impairment loss on foreclosed assets 80 379 51 80 5 Net income $ 352 $ 10 $ 167 $ 204 $ 287 |
Non-Interest Expense Detail
Non-Interest Expense Detail | 3 Months Ended |
Mar. 31, 2019 | |
Non-interest Expense Detail | |
Non-Interest Expense Detail | 11. Non-Interest expense detail The following table displays our selling, general and administrative (“SG&A”) expenses: For the Three Months Ended March 31, 2019 2018 Selling, general and administrative expenses Legal and accounting $ 127 $ 143 Salaries and related expenses 362 236 Board related expenses 16 22 Advertising 19 17 Rent and utilities 9 10 Loan and foreclosed asset expenses 20 8 Travel 32 23 Other 39 38 Total SG&A $ 624 $ 497 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. Subsequent Events Management of the Company has evaluated subsequent events through May 9, 2019, the date these interim condensed consolidated financial statements were issued. In April 2019, the Company sold one loan to our Executive Vice President of Sales at its gross loans receivable balance of $214, and as such, no gain or loss was recognized on the sale. The purchase price was funded through a reduction in the principal balance of the line of credit extended by the Executive Vice President of Sales to the Company. In April 2019, we entered into a line of credit agreement Jeffrey Eppinger which provides us with a revolving line of credit with the following terms: ● Principal not to exceed $1,000; ● Secured with assignments of certain notes and mortgages; and ● Cost of funds to us of 10%. In April 2019, the Company signed an unsecured promissory note for $500 at a rate of 10% with Paul Swanson. The outstanding principal balance together with all accrued and unpaid interest is due in July 2019. |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying (a) interim condensed consolidated balance sheet as of December 31, 2018, which has been derived from audited consolidated financial statements, and (b) unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. While certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), management believes that the disclosures herein are adequate to make the unaudited interim condensed consolidated information presented not misleading. In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of the consolidated financial position, results of operations, and cash flows for the periods presented. Such adjustments are of a normal, recurring nature. The consolidated results of operations for any interim period are not necessarily indicative of results expected for the fiscal year ending December 31, 2019. These unaudited interim condensed consolidated financial statements should be read in conjunction with the 2018 consolidated financial statements and notes thereto (the “2018 Financial Statements”) included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (the “2018 Form 10-K”). The accounting policies followed by the Company are set forth in Note 2 – Summary of Significant Accounting Policies |
Accounting Standards Adopted in the Period | Accounting Standards Adopted in the Period Accounting Standards Update (“ASU”) 2016-01, “ Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (An Amendment of FASB ASC 825). ASU 2016-01 became effective for the Company on January 1, 2018. The adoption of ASU 2016-01 did not have a material impact on the Company’s consolidated financial statements. ASU 2014-09, “ Revenue from Contracts with Customers (Topic 606). Revenue from Contracts with Customers, Revenue Recognition Revenue Recognition – Construction-Type and Production-Type Contracts. On January 1, 2018, the Company implemented ASU 2014-09, codified at ASC Topic 606. The Company adopted ASC Topic 606 using the modified retrospective transition method. As of December 31, 2017, the Company had no uncompleted customer contracts and, as a result, no cumulative transition adjustment was made during the first quarter of 2018. Results for reporting periods beginning January 1, 2018 are presented under ASC Topic 606, while prior period amounts continue to be reported under legacy U.S. GAAP. The majority of the Company’s revenue is generated through interest earned on financial instruments, including loans, which falls outside the scope of ASC Topic 606. All of the Company’s revenue that is subject to ASC Topic 606 would be included in non-interest income; however, not all non-interest income is subject to ASC Topic 606. The Company had no contract liabilities or unsatisfied performance obligations with customers as of March 31, 2019. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified for consistency with current period presentation. |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Non-financial Instruments Measured at Fair Value on Non-recurring Basis | The following tables present the balances of non-financial instruments measured at fair value on a non-recurring basis as of March 31, 2019 and December 31, 2018. Quoted Prices in Active Markets for Significant Other Significant March 31, 2019 Identical Observable Unobservable Carrying Estimated Assets Inputs Inputs Amount Fair Value Level 1 Level 2 Level 3 Foreclosed assets $ 6,069 $ 6,069 $ – $ – $ 6,069 Impaired assets 2,617 2,617 – – 2,617 Total $ 8,686 $ 8,686 $ – $ – $ 8,686 Quoted Prices in Active Significant Markets for Other Significant December 31, 2018 Identical Observable Unobservable Carrying Estimated Assets Inputs Inputs Amount Fair Value Level 1 Level 2 Level 3 Foreclosed assets $ 5,973 $ 5,973 $ – $ – $ 5,973 Impaired assets 2,503 2,503 – – 2,503 Total $ 8,476 $ 8,476 $ – $ – $ 8,476 |
Schedule of Fair Value Measurements, Recurring and Nonrecurring | The table below is a summary of fair value estimates for financial instruments and the level of the fair value hierarchy within which the fair value measurements are categorized at the periods indicated: Quoted Prices in Active Significant Markets for Other Significant March 31, 2019 Identical Observable Unobservable Carrying Estimated Assets Inputs Inputs Amount Fair Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 1,912 $ 1,912 $ 1,912 $ – $ – Loans receivable, net 49,991 49,991 – – 49,991 Accrued interest on loans 697 697 – – 697 Financial Liabilities Customer interest escrow 1,289 1,289 – – 1,289 Notes payable secured, net 26,085 26,085 – – 26,085 Notes payable unsecured, net 23,231 23,231 – – 23,231 Accrued interest payable 2,098 2,098 – – 2,098 Quoted Prices in Active Significant Markets for Other Significant December 31, 2018 Identical Observable Unobservable Carrying Estimated Assets Inputs Inputs Amount Fair Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 1,401 $ 1,401 $ 1,401 $ – $ – Loans receivable, net 46,490 46,490 – – 46,490 Accrued interest on loans 568 568 – – 568 Financial Liabilities Customer interest escrow 939 939 – – 939 Notes payable secured, net 23,258 23,258 – – 23,258 Notes payable unsecured, net 22,635 22,635 – – 22,635 Accrued interest payable 2,140 2,140 – – 2,140 |
Financing Receivables (Tables)
Financing Receivables (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Financing Receivables | Financing receivables are comprised of the following as of March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 Loans receivable, gross $ 52,931 $ 49,127 Less: Deferred loan fees (1,303 ) (1,249 ) Less: Deposits (1,707 ) (1,510 ) Plus: Deferred origination costs 303 308 Less: Allowance for loan losses (233 ) (186 ) Loans receivable, net $ 49,991 $ 46,490 |
Commercial Loans - Construction Loan Portfolio Summary | The following is a summary of the loan portfolio to builders for home construction loans as of March 31, 2019 and December 31, 2018: Year Number of States Number of Borrowers Number of Loans Value of Collateral (1) Commitment Amount Gross Amount Outstanding Loan to Value Ratio (2) Loan Fee 2019 21 75 289 $ 111,976 $ 75,343 $ 46,662 67 % (3) 5 % 2018 18 75 259 102,808 68,364 43,107 67 % (3) 5 % (1) The value is determined by the appraised value. (2) The loan to value ratio is calculated by taking the commitment amount and dividing by the appraised value. (3) Represents the weighted average loan to value ratio of the loans. |
Commercial Loans - Real Estate Development Loan Portfolio Summary | The following is a summary of our loan portfolio to builders for land development as of March 31, 2019 and December 31, 2018: Year Number of States Number of Borrowers Number of Loans Gross Value of (1) Commitment Amount (2) Gross Amount Outstanding Loan to Value Ratio (3) Loan Fee 2019 3 3 7 $ 11,564 $ 8,010 $ 6,269 54 % $ 1,000 2018 3 4 9 10,134 7,456 6,020 59 % 1,000 (1) The value is determined by the appraised value adjusted for remaining costs to be paid. A portion of this collateral is $1,380 and $1,320 as of March 31, 2019 and December 31, 2018, respectively, of preferred equity in our Company. In the event of a foreclosure on the property securing these loans, the portion of our collateral that is preferred equity might be difficult to sell, which may impact our ability to recover the loan balance. In addition, a portion of the collateral value is estimated based on the selling prices anticipated for the homes. (2) The commitment amount does not include letters of credit and cash bonds. (3) The loan to value ratio is calculated by taking the outstanding amount and dividing by the appraised value calculated as described above. |
Summary of Finance Receivables by Classification | Gross finance receivables – By risk rating: March 31, 2019 December 31, 2018 Pass $ 47,941 $ 43,402 Special mention 2,373 3,222 Classified – accruing – – Classified – nonaccrual 2,617 2,503 Total $ 52,931 $ 49,127 |
Schedule of Impairment Calculation Method | Gross finance receivables – Method of impairment calculation: March 31, 2019 December 31, 2018 Performing loans evaluated individually $ 20,882 $ 19,037 Performing loans evaluated collectively 29,432 27,587 Non-performing loans without a specific reserve 2,311 2,204 Non-performing loans with a specific reserve 306 299 Total evaluated collectively for loan losses $ 52,931 $ 49,127 |
Schedule of Impaired Loans | The following is a summary of our impaired nonaccrual commercial construction loans as of March 31, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 Unpaid principal balance (contractual obligation from customer) $ 2,617 $ 2,503 Charge-offs and payments applied - - Gross value before related allowance 2,617 2,503 Related allowance (29 ) (20 ) Value after allowance $ 2,588 $ 2,483 |
Schedule of Concentration Risk for Individual Borrowers | Our concentration risks for our top three customers listed by geographic real estate market are summarized in the table below: March 31, 2019 December 31, 2018 Percent of Percent of Borrower Loan Borrower Loan City Commitments City Commitments Highest concentration risk Pittsburgh, PA 23 % Pittsburgh, PA 23 % Second highest concentration risk Orlando, FL 13 % Orlando, FL 13 % Third highest concentration risk Cape Coral, FL 4 % Cape Coral, FL 4 % |
Foreclosed Assets (Tables)
Foreclosed Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Roll Forward of Foreclosed Assets | The following table is a roll forward of foreclosed assets: Three Months Ended March 31, 2019 Year Ended December 31, 2018 Three Months Ended March 31, 2018 Beginning balance $ 5,973 $ 1,036 $ 1,036 Additions from loans - 4,738 - Additions for construction/development 176 1,608 48 Sale proceeds - (809 ) - Gain on sale - - - Loss on sale - (103 ) - Gain on foreclosure - 19 - Loss on foreclosure - (47 ) - Impairment loss on foreclosed assets (80 ) (468 ) (5 ) Ending balance $ 6,069 $ 5,973 $ 1,079 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Schedule of Borrowings | The following table displays our borrowings and a ranking of priority: Priority Rank March 31, 2019 December 31, 2018 Borrowing Source Purchase and sale agreements and other secured borrowings 1 $ 25,382 $ 22,521 Secured lines of credit from affiliates 2 758 816 Unsecured line of credit (senior) 3 500 500 Other unsecured debt (senior subordinated) 4 1,008 1,008 Unsecured notes through our public offering, gross 5 18,831 17,348 Other unsecured debt (subordinated) 5 2,756 3,401 Other unsecured debt (junior subordinated) 6 590 590 Total $ 49,825 $ 46,184 |
Schedule of Maturities of Long-term Debt | The following table shows the maturity of outstanding debt as of March 31, 2019: Year Maturing Total Amount Maturing Public Offering Other Unsecured Secured Borrowings 2019 $ 32,914 $ 5,521 $ 1,887 $ 25,506 2020 5,073 4,006 1,052 15 2021 7,202 7,187 - 15 2022 3,841 2,079 1,746 16 2023 and thereafter 795 38 169 588 Total $ 49,825 $ 18,831 $ 4,854 $ 26,140 |
Schedule of Roll Forward of Deferred Financing Costs | The following is a roll forward of deferred financing costs: Three Months Year Three Months Ended Ended Ended March 31, 2019 December 31, 2018 March 31, 2018 Deferred financing costs, beginning balance $ 1,212 $ 1,102 $ 1,102 Additions 282 117 29 Disposals – (7 ) – Deferred financing costs, ending balance 1,494 1,212 1,131 Less accumulated amortization (1,040 ) (1,000 ) (864 ) Deferred financing costs, net $ 454 $ 212 $ 267 |
Schedule of Secured Borrowings | Borrowings secured by loan assets are summarized below: March 31, 2019 December 31, 2018 Due from Due from Book Value of Loans which Shepherd’s Finance to Loan Book Value of Loans which Shepherd’s Finance to Loan Served as Collateral Purchaser or Lender Served as Collateral Purchaser or Lender Loan Purchaser Builder Finance, Inc. $ 9,578 $ 6,254 $ 8,742 $ 5,294 S.K. Funding, LLC 12,693 6,907 11,788 6,408 Lender Stephen K. Shuman 1,855 1,325 2,051 1,325 Paul Swanson 9,476 7,000 8,079 5,986 Total $ 33,602 $ 21,486 $ 30,660 $ 19,013 |
Schedule of Roll Forward of Notes Outstanding | The following table shows the roll forward of our Notes Program: Three Months Ended March 31, 2019 Year Ended December 31, 2018 Three Months Ended March 31, 2018 Gross Notes outstanding, beginning of period $ 17,348 $ 14,121 $ 14,121 Notes issued 3,532 9,645 1,309 Note repayments / redemptions (2,049 ) (6,418 ) (1,645 ) Gross Notes outstanding, end of period $ 18,831 $ 17,348 $ 13,785 Less deferred financing costs, net 454 212 267 Notes outstanding, net $ 18,377 $ 17,136 $ 13,518 |
Schedule of Roll Forward of Accumulated Amortization of Deferred Financing Costs | The following is a roll forward of the accumulated amortization of deferred financing costs: Three Months Year Three Months Ended Ended Ended March 31, 2019 December 31, 2018 March 31, 2018 Accumulated amortization, beginning balance $ 1,000 $ 816 $ 816 Additions 40 184 48 Accumulated amortization, ending balance $ 1,040 $ 1,000 $ 864 |
Schedule of Other Unsecured Loans | Our other unsecured debts are detailed below: Maturity Interest Principal Amount Outstanding as of Loan Date Rate (1) March 31, 2019 December 31, 2018 Unsecured Note with Seven Kings Holdings, Inc. Demand (2) 9.5 % $ 500 $ 500 Unsecured Line of Credit from Builder Finance, Inc. January 2020 10.0 % 500 500 Unsecured Line of Credit from Paul Swanson March 2019 10.0 % - 1,014 Subordinated Promissory Note September 2019 9.5 % 1,125 1,125 Subordinated Promissory Note December 2019 10.5 % 113 113 Subordinated Promissory Note April 2020 10.0 % 100 100 Subordinated Promissory Notes October 2019 10.0 % 150 150 Subordinated Promissory Note August 2022 11.0 % 200 - Subordinated Promissory Note September 2020 (6) 11.0 % 168 - Senior Subordinated Promissory Note March 2022 (3) 10.0 % 400 400 Senior Subordinated Promissory Note March 2022 (4) 1.0 % 728 728 Junior Subordinated Promissory Note March 2022 (4) 22.5 % 417 417 Senior Subordinated Promissory Note October 2020 (5) 1.0 % 279 279 Junior Subordinated Promissory Note October 2020 (5) 20.0 % 173 173 $ 4,853 $ 5,499 (1) (2) (3) (4) (5) (6) |
Secured Borrowings [Member] | |
Schedule of Roll Forward of Deferred Financing Costs | The following is a roll forward of secured deferred financing costs: Three Months Year Three Months Ended Ended Ended March 31, 2019 December 31, 2018 March 31, 2018 Deferred financing costs, beginning balance $ 104 $ – $ – Additions – 104 5 Deferred financing costs, ending balance $ 104 $ 104 $ 5 Less accumulated amortization (50 ) (25 ) – Deferred financing costs, net $ 54 $ 79 $ 5 |
Redeemable Preferred Equity (Ta
Redeemable Preferred Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Roll Forward of Series C Cumulative Preferred Units | The following is a roll forward of our Series C cumulative preferred equity (“Series C Preferred Units”): Three Months Ended March 31, 2019 Year Ended December 31, 2018 Three Months Ended March 31, 2018 Beginning balance $ 2,385 $ 1,097 $ 1,097 Additions from new investment - 2,300 - Redemptions - 1,177 - Additions from reinvestment 72 165 33 Ending balance $ 2,457 $ 2,385 $ 1,130 |
Schedule of Redemption Option for Investors | The following table shows the earliest redemption options for investors in our Series C Preferred Units as of March 31, 2019: Year of Available Redemption Total Amount Redeemable 2024 $ 2,457 Total $ 2,457 |
Selected Quarterly Condensed _2
Selected Quarterly Condensed Consolidated Financial Data (Unaudited) (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized Unaudited Quarterly Condensed Consolidated Financial Data | Summarized unaudited quarterly condensed consolidated financial data for the quarters of 2019 and 2018 are as follows: Quarter 1 Quarter 4 Quarter 3 Quarter 2 Quarter 1 2019 2018 2018 2018 2018 Net interest income after loan loss provision $ 1,079 $ 914 $ 783 $ 876 $ 806 Non-interest income – (1 ) 20 – – SG&A expense 624 403 559 571 497 Depreciation and amortization 23 21 23 21 17 Loss on sale of foreclosed assets – 100 3 – – Impairment loss on foreclosed assets 80 379 51 80 5 Net income $ 352 $ 10 $ 167 $ 204 $ 287 |
Non-Interest Expense Detail (Ta
Non-Interest Expense Detail (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Non-interest Expense Detail | |
Schedule of Selling General and Administrative Expenses | The following table displays our selling, general and administrative (“SG&A”) expenses: For the Three Months Ended March 31, 2019 2018 Selling, general and administrative expenses Legal and accounting $ 127 $ 143 Salaries and related expenses 362 236 Board related expenses 16 22 Advertising 19 17 Rent and utilities 9 10 Loan and foreclosed asset expenses 20 8 Travel 32 23 Other 39 38 Total SG&A $ 624 $ 497 |
Fair Value - Schedule of Non-fi
Fair Value - Schedule of Non-financial Instruments Measured at Fair Value on Non-recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Foreclosed assets | $ 6,069 | $ 5,973 | $ 1,079 | $ 1,036 |
Estimate Fair Value [Member] | ||||
Foreclosed assets | 6,069 | 5,973 | ||
Impaired assets | 2,617 | 2,503 | ||
Total | 8,686 | 8,476 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Foreclosed assets | ||||
Impaired assets | ||||
Total | ||||
Fair Value, Inputs, Level 2 [Member] | ||||
Foreclosed assets | ||||
Impaired assets | ||||
Total | ||||
Fair Value, Inputs, Level 3 [Member] | ||||
Foreclosed assets | 6,069 | 5,973 | ||
Impaired assets | 2,617 | 2,503 | ||
Total | 8,686 | 8,476 | ||
Carrying Amount [Member] | ||||
Foreclosed assets | 6,069 | 5,973 | ||
Impaired assets | 2,617 | 2,503 | ||
Total | $ 8,686 | $ 8,476 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value Measurements, Recurring and Nonrecurring (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Financial Assets, Cash and cash equivalents | $ 1,912 | $ 1,401 | $ 380 | $ 3,478 |
Financial Assets, Loans receivable, net | 49,991 | 46,490 | ||
Financial Assets, Accrued interest on loans | 697 | 568 | ||
Financial Liabilities, Customer interest escrow | 1,289 | 939 | ||
Financial Liabilities, Notes payable secured, net | 21,486 | 19,013 | ||
Financial Liabilities, Notes payable unsecured, net | 23,231 | 22,635 | ||
Estimate Fair Value [Member] | ||||
Financial Assets, Cash and cash equivalents | 1,912 | 1,401 | ||
Financial Assets, Loans receivable, net | 49,991 | 46,490 | ||
Financial Assets, Accrued interest on loans | 697 | 568 | ||
Financial Liabilities, Customer interest escrow | 1,289 | 939 | ||
Financial Liabilities, Notes payable secured, net | 26,085 | 23,258 | ||
Financial Liabilities, Notes payable unsecured, net | 23,231 | 22,635 | ||
Financial Liabilities, Accrued interest payable | 2,098 | 2,140 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Financial Assets, Cash and cash equivalents | 1,912 | 1,401 | ||
Financial Assets, Loans receivable, net | ||||
Financial Assets, Accrued interest on loans | ||||
Financial Liabilities, Customer interest escrow | ||||
Financial Liabilities, Notes payable secured, net | ||||
Financial Liabilities, Notes payable unsecured, net | ||||
Financial Liabilities, Accrued interest payable | ||||
Fair Value, Inputs, Level 2 [Member] | ||||
Financial Assets, Cash and cash equivalents | ||||
Financial Assets, Loans receivable, net | ||||
Financial Assets, Accrued interest on loans | ||||
Financial Liabilities, Customer interest escrow | ||||
Financial Liabilities, Notes payable secured, net | ||||
Financial Liabilities, Notes payable unsecured, net | ||||
Financial Liabilities, Accrued interest payable | ||||
Fair Value, Inputs, Level 3 [Member] | ||||
Financial Assets, Cash and cash equivalents | ||||
Financial Assets, Loans receivable, net | 49,991 | 46,490 | ||
Financial Assets, Accrued interest on loans | 697 | 568 | ||
Financial Liabilities, Customer interest escrow | 1,289 | 939 | ||
Financial Liabilities, Notes payable secured, net | 26,085 | 23,258 | ||
Financial Liabilities, Notes payable unsecured, net | 23,231 | 22,635 | ||
Financial Liabilities, Accrued interest payable | 2,098 | 2,140 | ||
Carrying Amount [Member] | ||||
Financial Assets, Cash and cash equivalents | 1,912 | 1,401 | ||
Financial Assets, Loans receivable, net | 49,991 | 46,490 | ||
Financial Assets, Accrued interest on loans | 697 | 568 | ||
Financial Liabilities, Customer interest escrow | 1,289 | 939 | ||
Financial Liabilities, Notes payable secured, net | 26,085 | 23,258 | ||
Financial Liabilities, Notes payable unsecured, net | 23,231 | 22,635 | ||
Financial Liabilities, Accrued interest payable | $ 2,098 | $ 2,140 |
Financing Receivables (Details
Financing Receivables (Details Narrative) | 3 Months Ended | |
Mar. 31, 2019USD ($)Integer | Dec. 31, 2018USD ($) | |
Description on construction loan | The Company's portfolio consisted of 289 commercial construction and seven development loans with 75 borrowers in 21 states. | |
Number of borrowers | Integer | 75 | |
Loans Acquired with Deteriorated Credit Quality [Member] | ||
Finance receivable | $ |
Financing Receivables - Schedul
Financing Receivables - Schedule of Financing Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Loans receivable, gross | $ 52,931 | $ 49,127 |
Less: Deferred loan fees | (1,303) | (1,249) |
Less: Deposits | (1,707) | (1,510) |
Plus: Deferred origination costs | 303 | 308 |
Less: Allowance for loan losses | (233) | (186) |
Loans receivable, net | $ 49,991 | $ 46,490 |
Financing Receivables - Commerc
Financing Receivables - Commercial Loans - Construction Loan Portfolio Summary (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($)Integer | Dec. 31, 2018USD ($)LoanInteger | ||
Summary Of Loan Portfolio To Builders For Home Construction [Line Items] | |||
Gross Amount Outstanding | $ 52,931 | $ 49,127 | |
Home Construction Loans [Member] | |||
Summary Of Loan Portfolio To Builders For Home Construction [Line Items] | |||
Number of States | Integer | 21 | 18 | |
Number of Borrowers | Integer | 75 | 75 | |
Number of Loans | 289 | 259 | |
Value of Collateral | [1] | $ 111,976 | $ 102,808 |
Commitment Amount | 75,343 | 68,364 | |
Gross Amount Outstanding | $ 46,662 | $ 43,107 | |
Loan to Value Ratio | [2],[3] | 67.00% | 67.00% |
Loan Fee | 5.00% | 5.00% | |
[1] | The value is determined by the appraised value. | ||
[2] | Represents the weighted average loan to value ratio of the loans. | ||
[3] | The loan to value ratio is calculated by taking the commitment amount and dividing by the appraised value. |
Financing Receivables - Comme_2
Financing Receivables - Commercial Loans - Real Estate Development Loan Portfolio Summary (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019USD ($)Integer | Dec. 31, 2018USD ($)LoanInteger | ||||
Real Estate Development Loan Portfolio [Line Items] | |||||
Gross Amount Outstanding | $ 52,931 | $ 49,127 | |||
Real Estate Development [Member] | |||||
Real Estate Development Loan Portfolio [Line Items] | |||||
Number of States | Integer | 3 | 3 | |||
Number of Borrowers | Integer | 3 | 4 | |||
Number of Loans | 7 | 9 | |||
Gross Value of Collateral | [1] | $ 11,564 | $ 10,134 | ||
Commitment Amount | [2] | 8,010 | 7,456 | ||
Gross Amount Outstanding | $ 6,269 | $ 6,020 | |||
Loan to Value Ratio | 54.00% | [3] | 59.00% | [4] | |
Loan Fee | $ 1,000 | $ 1,000 | |||
[1] | The value is determined by the appraised value adjusted for remaining costs to be paid. A portion of this collateral is $1,380 and $1,320 as of March 31, 2019 and December 31, 2018, respectively, of preferred equity in our Company. In the event of a foreclosure on the property securing these loans, the portion of our collateral that is preferred equity might be difficult to sell, which may impact our ability to recover the loan balance. In addition, a portion of the collateral value is estimated based on the selling prices anticipated for the homes. | ||||
[2] | The commitment amount does not include letters of credit and cash bonds. | ||||
[3] | The loan to value ratio is calculated by taking the commitment amount and dividing by the appraised value. | ||||
[4] | The loan to value ratio is calculated by taking the outstanding amount and dividing by the appraised value calculated as described above. |
Financing Receivables - Comme_3
Financing Receivables - Commercial Loans - Real Estate Development Loan Portfolio Summary (Details) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Collateral of preferred equity | $ 1,380 | $ 1,320 |
Financing Receivables - Summary
Financing Receivables - Summary of Finance Receivables by Classification (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Loans receivable, gross | $ 52,931 | $ 49,127 |
Financing Receivable [Member] | ||
Loans receivable, gross | 52,931 | 49,127 |
Pass [Member] | Financing Receivable [Member] | ||
Loans receivable, gross | 47,941 | 43,402 |
Special Mention [Member] | Financing Receivable [Member] | ||
Loans receivable, gross | 2,373 | 3,222 |
Classified - Accruing [Member] | Financing Receivable [Member] | ||
Loans receivable, gross | ||
Classified - Nonaccrual [Member] | Financing Receivable [Member] | ||
Loans receivable, gross | $ 2,617 | $ 2,503 |
Financing Receivables - Sched_2
Financing Receivables - Schedule of Impairment Calculation Method (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | $ 52,931 | $ 49,127 |
Financing Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 52,931 | 49,127 |
Performing Loans Evaluated Individually [Member] | Financing Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 20,882 | 19,037 |
Performing Loans Evaluated Collectively [Member] | Financing Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 29,432 | 27,587 |
Non-Performing Loans Without a Specific Reserve [Member] | Financing Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 2,311 | 2,204 |
Non-Performing Loans With a Specific Reserve [Member] | Financing Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | $ 306 | $ 299 |
Financing Receivables - Sched_3
Financing Receivables - Schedule of Impaired Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Unpaid principal balance (contractual obligation from customer) | $ 2,617 | $ 2,503 |
Charge-offs and payments applied | ||
Gross value before related allowance | 2,617 | 2,503 |
Related allowance | (29) | (20) |
Value after allowance | $ 2,588 | $ 2,483 |
Financing Receivables - Sched_4
Financing Receivables - Schedule of Concentration Risk for Individual Borrowers (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Highest Concentration Risk [Member] | ||
Borrower City | Pittsburgh, PA | Pittsburgh, PA |
Percent of Loan Commitments | 23.00% | 23.00% |
Second Highest Concentration Risk [Member] | ||
Borrower City | Orlando, FL | Orlando, FL |
Percent of Loan Commitments | 13.00% | 13.00% |
Third Highest Concentration Risk [Member] | ||
Borrower City | Cape Coral, FL | Cape Coral, FL |
Percent of Loan Commitments | 4.00% | 4.00% |
Foreclosed Assets - Schedule of
Foreclosed Assets - Schedule of Roll Forward of Foreclosed Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||
Beginning balance | $ 5,973 | $ 1,079 | $ 1,036 | $ 1,036 | ||
Additions from loans | 4,738 | |||||
Additions for construction/development | 176 | 48 | 1,608 | |||
Sale proceeds | (809) | |||||
Gain on sale | ||||||
Loss on sale | (103) | |||||
Gain on foreclosure | 19 | |||||
Loss on foreclosure | (47) | |||||
Impairment loss on foreclosed assets | (80) | $ (379) | $ (51) | $ (80) | (5) | (468) |
Ending balance | $ 6,069 | $ 5,973 | $ 1,079 | $ 5,973 |
Borrowings (Details Narrative)
Borrowings (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Notes Program [Member] | ||
Debt instrument effective interest rate | 10.09% | 10.07% |
Affiliates [Member] | Line of Credit [Member] | ||
Borrowings under line of credit | $ 758 | |
Line of credit maximum borrowing capacity | $ 2,500 | |
Minimum [Member] | Notes Program [Member] | ||
Debt instrument, redemption period | 12 months | |
Maximum [Member] | Notes Program [Member] | ||
Debt instrument, redemption period | 48 months |
Borrowings - Schedule of Borrow
Borrowings - Schedule of Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Purchase and sale agreements and other secured borrowings | $ 25,382 | $ 22,521 |
Secured lines of credit from affiliates | 758 | 816 |
Unsecured line of credit (senior) | 500 | 500 |
Other unsecured debt (senior subordinated) | 1,008 | 1,008 |
Unsecured notes through our public offering, gross | 18,831 | 17,348 |
Other unsecured debt (subordinated) | 2,756 | 3,401 |
Other unsecured debt (junior subordinated) | 590 | 590 |
Total | $ 49,825 | $ 46,184 |
Borrowings - Schedule of Maturi
Borrowings - Schedule of Maturities of Long-term Debt (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Total Amount Maturing [Member] | |
2019 | $ 32,914 |
2020 | 5,073 |
2021 | 7,202 |
2022 | 3,841 |
2023 and thereafter | 795 |
Total | 49,825 |
Public Offering [Member] | |
2019 | 5,521 |
2020 | 4,006 |
2021 | 7,187 |
2022 | 2,079 |
2023 and thereafter | 38 |
Total | 18,831 |
Other Unsecured [Member] | |
2019 | 1,887 |
2020 | 1,052 |
2021 | |
2022 | 1,746 |
2023 and thereafter | 169 |
Total | 4,854 |
Secured Borrowings [Member] | |
2019 | 25,506 |
2020 | 15 |
2021 | 15 |
2022 | 16 |
2023 and thereafter | 588 |
Total | $ 26,140 |
Borrowings - Schedule of Secure
Borrowings - Schedule of Secured Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Book Value of Loans which Served as Collateral | $ 33,602 | $ 30,660 |
Due From Shepherd's Finance to Loan Purchaser or Lender | 21,486 | 19,013 |
Builder Finance, Inc. [Member] | ||
Book Value of Loans which Served as Collateral | 9,578 | 8,742 |
Due From Shepherd's Finance to Loan Purchaser or Lender | 6,254 | 5,294 |
S.K. Funding [Member] | ||
Book Value of Loans which Served as Collateral | 12,693 | 11,788 |
Due From Shepherd's Finance to Loan Purchaser or Lender | 6,907 | 6,408 |
Stephen K. Shuman [Member] | ||
Book Value of Loans which Served as Collateral | 1,855 | 2,051 |
Due From Shepherd's Finance to Loan Purchaser or Lender | 1,325 | 1,325 |
Paul Swanson [Member] | ||
Book Value of Loans which Served as Collateral | 9,476 | 8,079 |
Due From Shepherd's Finance to Loan Purchaser or Lender | $ 7,000 | $ 5,986 |
Borrowings - Schedule of Roll F
Borrowings - Schedule of Roll Forward of Notes Outstanding (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |||
Gross Notes outstanding, beginning of period | $ 17,348 | $ 14,121 | $ 14,121 |
Notes issued | 3,532 | 1,309 | 9,645 |
Note repayments / redemptions | (2,049) | (1,645) | (6,418) |
Gross Notes outstanding, end of period | 18,831 | 13,785 | 17,348 |
Less deferred financing costs, net | 454 | 267 | 212 |
Notes outstanding, net | $ 18,377 | $ 13,518 | $ 17,136 |
Borrowings - Schedule of Roll_2
Borrowings - Schedule of Roll Forward of Deferred Financing Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred financing costs, beginning balance | $ 1,212 | $ 1,102 | $ 1,102 | |
Additions | 282 | 29 | 117 | |
Disposals | (7) | |||
Deferred financing costs, ending balance | 1,494 | 1,131 | 1,212 | |
Less accumulated amortization | (1,040) | (864) | (1,000) | $ (816) |
Deferred financing costs, net | 454 | 267 | 212 | |
Secured Borrowings [Member] | ||||
Deferred financing costs, beginning balance | 104 | |||
Additions | 5 | 104 | ||
Deferred financing costs, ending balance | 104 | 5 | 104 | |
Less accumulated amortization | (50) | (25) | ||
Deferred financing costs, net | $ 54 | $ 5 | $ 79 |
Borrowings - Schedule of Roll_3
Borrowings - Schedule of Roll Forward of Accumulated Amortization of Deferred Financing Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |||
Accumulated amortization, beginning balance | $ 1,000 | $ 816 | $ 816 |
Additions | 40 | 48 | 184 |
Accumulated amortization, ending balance | $ 1,040 | $ 864 | $ 1,000 |
Borrowings - Schedule of Other
Borrowings - Schedule of Other Unsecured Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | ||
Unsecured Note with Seven Kings Holdings, Inc. [Member] | |||
Maturity Date | [1] | Demand | |
Interest Rate | [2] | 9.50% | |
Other Unsecured Loans | $ 500 | $ 500 | |
Unsecured Line of Credit from Builder Finance, Inc. [Member] | |||
Maturity Date | January 2020 | ||
Interest Rate | [2] | 10.00% | |
Other Unsecured Loans | $ 500 | 500 | |
Unsecured Line of Credit from Paul Swanson [Member] | |||
Maturity Date | March 2019 | ||
Interest Rate | [2] | 10.00% | |
Other Unsecured Loans | 1,014 | ||
Subordinated Promissory Note [Member] | |||
Maturity Date | September 2019 | ||
Interest Rate | [2] | 9.50% | |
Other Unsecured Loans | $ 1,125 | 1,125 | |
Subordinated Promissory Note One [Member] | |||
Maturity Date | December 2019 | ||
Interest Rate | [2] | 10.50% | |
Other Unsecured Loans | $ 113 | 113 | |
Subordinated Promissory Note Two [Member] | |||
Maturity Date | April 2020 | ||
Interest Rate | [2] | 10.00% | |
Other Unsecured Loans | $ 100 | 100 | |
Subordinated Promissory Notes Three [Member] | |||
Maturity Date | October 2019 | ||
Interest Rate | [2] | 10.00% | |
Other Unsecured Loans | $ 150 | 150 | |
Subordinated Promissory Note Four [Member] | |||
Maturity Date | August 2022 | ||
Interest Rate | [2] | 11.00% | |
Other Unsecured Loans | $ 200 | ||
Subordinated Promissory Note Five [Member] | |||
Maturity Date | [3] | September 2020 | |
Interest Rate | [2] | 11.00% | |
Other Unsecured Loans | $ 168 | ||
Senior Subordinated Promissory Note [Member] | |||
Maturity Date | [4] | March 2022 | |
Interest Rate | [2] | 10.00% | |
Other Unsecured Loans | $ 400 | 400 | |
Senior Subordinated Promissory Note One [Member] | |||
Maturity Date | [5] | March 2022 | |
Interest Rate | [2] | 1.00% | |
Other Unsecured Loans | $ 728 | 728 | |
Junior Subordinated Promissory Note [Member] | |||
Maturity Date | [5] | March 2022 | |
Interest Rate | [2] | 22.50% | |
Other Unsecured Loans | $ 417 | 417 | |
Senior Subordinated Promissory Note Two [Member] | |||
Maturity Date | [6] | October 2020 | |
Interest Rate | [2] | 1.00% | |
Other Unsecured Loans | $ 279 | 279 | |
Junior Subordinated Promissory Note One [Member] | |||
Maturity Date | [6] | October 2020 | |
Interest Rate | [2] | 20.00% | |
Other Unsecured Loans | $ 173 | 173 | |
Other Unsecured Debt [Member] | |||
Other Unsecured Loans | $ 4,853 | $ 5,499 | |
[1] | Due six months after lender gives notice. | ||
[2] | Interest rate per annum, based upon actual days outstanding and a 365/366 day year. | ||
[3] | Due one month after lender gives notice, which notice may not be given prior to August 1, 2020. | ||
[4] | Lender may require us to repay $20 of principal and all unpaid interest with 10 days' notice. | ||
[5] | These notes were issued to the same holder and, when calculated together, yield a blended return of 11% per annum. | ||
[6] | These notes were issued to the same holder and, when calculated together, yield a blended return of 10% per annum. |
Borrowings - Schedule of Othe_2
Borrowings - Schedule of Other Unsecured Loans (Details) (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Note 1 [Member] | |
Debt yield return percentage | 11.00% |
Note 2 [Member] | |
Debt yield return percentage | 10.00% |
Senior Subordinated Promissory Note [Member] | |
Debt, principal amount | $ 20 |
Redeemable Preferred Equity - S
Redeemable Preferred Equity - Schedule of Roll Forward of Series C Cumulative Preferred Units (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Equity [Abstract] | |||
Series C Cumulative Preferred Equity, beginning balance | $ 2,385 | $ 1,097 | $ 1,097 |
Additions from new investment | 2,300 | ||
Redemptions | 1,177 | ||
Additions from reinvestment | 72 | 33 | 165 |
Series C Cumulative Preferred Equity, ending balance | $ 2,457 | $ 1,130 | $ 2,385 |
Redeemable Preferred Equity -_2
Redeemable Preferred Equity - Schedule of Redemption Option for Investors (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | ||||
Year of Available Redemption | 2024 | |||
Total Amount Redeemable | $ 2,457 | $ 2,385 | $ 1,130 | $ 1,097 |
Members' Capital (Details Narra
Members' Capital (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | ||
Dec. 31, 2015 | Mar. 31, 2019 | Dec. 31, 2018 | |
Series B preferred equity | $ 1,380 | $ 1,320 | |
Class A Common Units [Member] | |||
Common stock, units outstanding | 2,629 | 2,629 | |
Series B Preferred Units [Member] | |||
Number of units agreed to purchase | The Hoskins Group agreed to purchase 0.1 Series B Preferred Units for $10 at each closing of a lot to a third party in the Hamlet's and Tuscany subdivision. | ||
Number of preferred units value to purchase during the period | $ 10 | ||
Series B Preferred units, shares | 13.8 | ||
Series B preferred equity | $ 1,380 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) $ in Thousands | Mar. 31, 2019USD ($) |
Wallach LOC [Member] | |
Amount available to borrow | $ 1,108 |
Wallach Trust LOC [Member] | |
Amount available to borrow | 250 |
Myrick LOC [Member] | |
Amount available to borrow | $ 384 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Letter of credit, amount outstanding | $ 30,422 | $ 25,258 |
Selected Quarterly Condensed _3
Selected Quarterly Condensed Consolidated Financial Data (Unaudited) - Summarized Unaudited Quarterly Condensed Consolidated Financial Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||
Net interest income after loan loss provision | $ 1,079 | $ 914 | $ 783 | $ 876 | $ 806 | |
Non-interest income | (1) | 20 | ||||
SG&A expense | 624 | 403 | 559 | 571 | 497 | |
Depreciation and amortization | 23 | 21 | 23 | 21 | 17 | |
Loss on sale of foreclosed assets | 100 | 3 | ||||
Impairment loss on foreclosed assets | 80 | 379 | 51 | 80 | 5 | $ 468 |
Net income | $ 352 | $ 10 | $ 167 | $ 204 | $ 287 |
Non-Interest Expense Detail - S
Non-Interest Expense Detail - Schedule of Selling General and Administrative Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Non-interest Expense Detail | |||||
Legal and accounting | $ 127 | $ 143 | |||
Salaries and related expenses | 362 | 236 | |||
Board related expenses | 16 | 22 | |||
Advertising | 19 | 17 | |||
Rent and utilities | 9 | 10 | |||
Loan and foreclosed asset expenses | 20 | 8 | |||
Travel | 32 | 23 | |||
Other | 39 | 38 | |||
Total SG&A | $ 624 | $ 403 | $ 559 | $ 571 | $ 497 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | ||
Apr. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Loan receivable balance | $ 52,931 | $ 49,127 | |
Unsecured promissory note | $ 23,231 | $ 22,635 | |
Subsequent Event [Member] | Executive Vice President of Sales [Member] | |||
Loan receivable balance | $ 214 | ||
Subsequent Event [Member] | Jeffrey Eppinger [Member] | Line of Credit Agreement [Member] | |||
Line of credit, principle value not exceeds | $ 1,000 | ||
Cost of funds rate | 10.00% | ||
Subsequent Event [Member] | Paul Swanson [Member] | |||
Unsecured promissory note | $ 500 | ||
Unsecured promissory note rate | 10.00% | ||
Debt due date | July 2019 |