Document_and_Entity_Informatio
Document and Entity Information (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Nov. 14, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'American Church Mortgage Company | ' |
Entity Central Index Key | '0000934543 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Public Float | ' | $1,677,798 |
Entity Common Stock, Shares Outstanding | ' | 1,677,798 |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2014 | ' |
Balance_Sheets
Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Cash and equivalents | $3,591,461 | $3,143,377 |
Accounts receivable | 267,695 | 197,687 |
Interest receivable | 137,348 | 129,972 |
Current maturities of mortgage loans receivable, net of allowance of $31,394 and $25,269 and deferred origination fees of $41,542 and $24,007 at September 30, 2014 and December 31, 2013, respectively | 681,316 | 660,490 |
Current maturities of bond portfolio, at fair value | 897,250 | 796,000 |
Prepaid expenses | 9,076 | 6,638 |
Total current assets | 5,584,146 | 4,934,164 |
Mortgage Loans Receivable, net of current maturities, allowance of$1,101,616 and $924,424 and deferred origination fess of $334,770 and $324,861 at September 30, 2014 and December 31, 2013, respectively | 23,190,559 | 24,716,310 |
Bond Portfolio, at fair value, net of current maturities | 9,086,749 | 8,283,442 |
Real Estate Held for Sale | 517,422 | 562,722 |
Deferred Offering Costs, net of accumulated amortization of $805,131 and $728,012 at September 30, 2014 and December 31, 2013, respectively | 776,029 | 709,919 |
Total Assets | 39,154,905 | 39,206,557 |
Current maturities of secured investor certificates | 2,236,000 | 1,876,000 |
Accounts payable | 25,303 | 21,565 |
Dividends payable | 167,780 | 167,780 |
Total current liabilities | 2,429,083 | 2,065,345 |
Deposit on real estate held for sale | 61,600 | 61,600 |
Secured Investor Certificates, Series B, net of current maturities | 15,562,000 | 15,887,000 |
Secured Investor Certificates, Series C, net of current maturities | 6,821,000 | 7,932,000 |
Secured Investor Certificates, Series D, net of current maturities | 1,361,000 | ' |
Total liabilities | 26,234,683 | 25,945,945 |
Common stock, par value $.01 per share, Authorized, 30,000,000 shares, Issued and outstanding, 1,677,798 shares at March 31, 2014 and December 31, 2013, respectively | 16,778 | 16,778 |
Additional paid-in capital | 19,113,458 | 19,113,458 |
Accumulated deficit | -6,210,014 | -5,869,624 |
Total stockholders' equity | 12,920,222 | 13,260,612 |
Total Liabilities and Stockholders' Equity | $39,154,905 | $39,206,557 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Current Assets | ' | ' |
Current allowance for current maturities of mortgage loans recievable | $31,394 | $25,269 |
Current deferred origination fees for current mortgage loans recievable | 41,542 | 24,007 |
Allowance for mortgage loans recievable | 1,101,616 | 924,424 |
Deferred origination fees for mortgage loans recievable | 334,770 | 324,861 |
Accumulated amortization deferred offering costs | $805,131 | $728,012 |
Stockholders' Equity | ' | ' |
Common Stock, par value | $0.01 | $0.01 |
Common Stock, Authorized | 30,000,000 | 30,000,000 |
Common Stock, Issued | 1,677,798 | 1,677,798 |
Common Stock, Outstanding | 1,677,798 | 1,677,798 |
Statements_of_Operations
Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Statement [Abstract] | ' | ' | ' | ' |
Interest and Other Income | $680,645 | $744,229 | $2,116,967 | $2,276,024 |
Interest Expense | 438,620 | 466,965 | 1,326,705 | 1,386,022 |
Net Interest Income | 242,025 | 277,264 | 790,262 | 890,002 |
Provision for losses on mortgage loans receivable | 110,872 | 41,453 | 183,317 | 60,634 |
Net Interest Income after Provision for Mortgage Losses | 131,153 | 235,811 | 606,945 | 829,368 |
Operating Expenses | ' | ' | ' | ' |
Other operating expenses | 145,615 | 148,045 | 458,536 | 470,588 |
Real estate impairment | ' | ' | 45,000 | 149,775 |
Total Operating Expenses | 145,615 | 148,045 | 503,536 | 620,363 |
Operating Income (Loss) | -14,462 | 87,766 | 103,409 | 209,005 |
Other Income | 380 | 75 | 9,206 | 268 |
Net (loss) Income | ($14,082) | $87,841 | $112,615 | $209,273 |
Basic and Diluted Income (Loss) Per Share | ($0.01) | $0.05 | $0.07 | $0.12 |
Dividends Declared Per Share | $0.10 | $0.10 | $0.08 | $0.30 |
Weighted Average Common Shares Outstanding - Basic and Diluted | 1,677,798 | 1,677,798 | 1,677,798 | 1,677,798 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Cash Flows from Operating Activities | ' | ' |
Net income (loss) | $112,615 | $209,273 |
Impairment on real estate held for sale | 45,000 | 149,775 |
Provision for losses on mortgage loans receivable | 183,317 | 60,634 |
Amortization of loan origination discounts | 27,444 | -20,555 |
Amortization of deferred offering costs | 77,120 | 89,339 |
Accounts receivable | -70,008 | -154,766 |
Interest receivable | -7,376 | 831 |
Prepaid expenses | -2,438 | -4,946 |
Accounts payable | 3,738 | 6,364 |
Net cash provided by operating activities | 369,412 | 335,949 |
Cash Flows from Investing Activities | ' | ' |
Investment in mortgage loans | -1,234,841 | -911,942 |
Collections of mortgage loans | 2,529,305 | 2,764,417 |
Investment in bonds | -1,983,250 | -1,036,000 |
Proceeds from bonds | 1,078,693 | 164,974 |
Net cash (used for) provided by investing activities | 389,907 | 981,449 |
Cash Flows from Financing Activities | ' | ' |
Proceeds from the sale of secured investor certificates | 1,361,000 | ' |
Payments on secured investor certificate maturities | -1,076,000 | -321,000 |
Payments for deferred costs | -143,230 | -7,665 |
Dividends paid | -453,005 | -553,674 |
Net cash (used for) financing activities | -311,235 | -882,339 |
Net Increase (Decrease) in Cash and Equivalents | 448,084 | 435,059 |
Cash and Equivalents - Beginning | 3,143,377 | 1,183,787 |
Cash and Equivalents - Ending | $3,591,461 | $1,618,846 |
Statements_of_Cash_Flows_Paren
Statements of Cash Flows (Parenthetical) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Statement of Cash Flows [Abstract] | ' | ' |
Dividends payable | $167,780 | $167,780 |
Loan origination fees | 70,145 | 13,293 |
Interest paid | $1,326,705 | $1,386,022 |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 9 Months Ended | ||
Sep. 30, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Summary Of Significant Accounting Policies | ' | ||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Basis of Presentation | |||
The accompanying unaudited financial statements have been prepared in accordance with the instructions for interim statements and, therefore, do not include all information and disclosures necessary for fair presentation of results of operations, financial position, and changes in cash flow in conformity with generally accepted accounting principles. However, in the opinion of management, such statements reflect all adjustments (which include only normal recurring adjustments) necessary for fair presentation of financial position, results of operations, and cash flows for the period presented. | |||
The unaudited financial statements of the Company should be read in conjunction with the December 31, 2013 audited financial statements included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission for the year ended December 31, 2013. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. | |||
Nature of Business | |||
American Church Mortgage Company, a Minnesota corporation, was incorporated on May 27, 1994. The Company was organized as a real estate investment trust to engage primarily in the business of making mortgage loans to churches and other nonprofit religious organizations throughout the United States, on terms established for individual organizations. | |||
Accounting Estimates | |||
Management uses estimates and assumptions in preparing these financial statements in accordance with accounting principles generally accepted in the United States of America. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. The most sensitive estimates relate to the realizability of the mortgage loans receivable, and the valuation of the bond portfolio and real estate held for sale. It is at least reasonably possible that these estimates could change in the near term and that the effect of the change, if any, may be material to the financial statements. | |||
Concentration of Credit Risk | |||
The Company's loans have been granted to churches and other non-profit religious organizations. The ability of the Company’s debtors to honor their contracts is dependent on member contributions and the involvement in the church or organization of its senior pastor. | |||
Cash and Equivalents | |||
The Company considers all highly liquid debt instruments purchased with maturities of three months or less to be cash equivalents. | |||
The Company maintains accounts primarily at two financial institutions. At times throughout the year, the Company’s cash and equivalents balances may exceed amounts insured by the Federal Deposit Insurance Corporation. Cash in money market funds is not federally insured. The Company had $61,580 and $160,808 in money market fund accounts at September 30, 2014 and December 31, 2013, respectively. The Company has not experienced any losses in such accounts. | |||
Bond Portfolio | |||
The Company accounts for the bond portfolio under Accounting Standards Codification (ASC) Section 320. The Company classifies the bond portfolio as “available-for-sale” and measures the portfolio at fair value. While the bonds are generally held until contractual maturity, the Company classifies them as available-for-sale as the bonds may be used to repay secured investor certificates or provide additional liquidity or working capital in the short term. The Company has classified $897,250 and $796,000 in bonds as current assets as of September 30, 2014 and December 31, 2013, respectively, based on management’s estimates for liquidity requirements and contractual maturities of certain bonds maturing in 2014 and 2013, respectively. | |||
Allowance for Mortgage Loans Receivable | |||
The Company records mortgage loans receivable at estimated net realizable value, which is the unpaid principal balances of the mortgage loans receivable, less the allowance for mortgage loans. The Company’s loan loss policy provides an allowance for estimated uncollectible loans based on an evaluation of the current status of the loan portfolio. This policy provides for principal amounts outstanding on a particular loan if cumulative interruptions occur in the normal payment schedule of a loan; therefore, the Company recognizes a provision for losses and an allowance for the outstanding principal amount of a loan in the Company’s portfolio if the amount is in doubt of collection. Additionally, no additional interest income is recognized on impaired loans that are declared to be in default and are in the foreclosure process. At September 30, 2014, the Company provided $1,133,010 for seventeen mortgage loans, of which eleven are three or more mortgage payments in arrears, two loans are declared to be in default and one loan is in the foreclosure process. At December 31, 2013, the Company provided $949,693 for fourteen mortgage loans, of which six were three or more mortgage payments in arrears, two loans declared to be in default and one loan is in the foreclosure process. | |||
A summary of transactions in the allowance for credit losses for the nine months ended September 30, 2014 is as follows: | |||
Balance at December 31, 2013 | $ 949,693 | ||
Provision for additional losses | 183,317 | ||
Charge-offs | - | ||
Balance at September 30, 2014 | $1,133,010 | ||
The total impaired loans, which are loans that are in the foreclosure process or are declared to be in default, were approximately $1,524,000 and $1,543,000 at September 30, 2014 and December 31, 2013, respectively, which the Company believes are adequately secured by the underlying collateral and the allowance for mortgage loans. | |||
The Company will declare a loan to be in default and will place the loan on non-accrual status when the following thresholds have been met: (i) the borrower has missed three consecutive mortgage payments; (ii) the borrower has not communicated to the Company any legitimate reason for delinquency in its payments to the Company and has not arranged for the re-continuance of payments; (iii) lines of communication to the borrower have broken down such that any reasonable prospect of rehabilitating the loan and return of regular payments is gone. | |||
The Company’s policies on payments received and interest accrued on non-accrual loans are as follows: (i) The Company will accept payments on loans that are currently on non-accrual status when a borrower has communicated to us that they intend to meet their mortgage obligations. A payment made on a non-accrual loan is considered a good faith deposit as to the intent to resume their mortgage payment obligation. This good faith deposit is credited back to interest first then principal as stated in the mortgage loan documentation. (ii) A letter outlining the re-payment terms or the restructure terms (if any) of the loan is provided to the borrower. This letter will be signed by the Senior Pastor and all board members of the borrower. This letter resumes the obligation to make payments on non-accrual loans. (iii) The borrower must meet all its payment obligations for the next 120 days without interruption in order to be removed from non-accrual status. | |||
When a loan is declared in default according to the Company’s policy or deemed to be doubtful of collection, the loan committee of the Advisor to the Company will direct the staff to charge-off the uncollectable receivables. | |||
Loans totaling approximately $5,470,000 and $3,237,000 exceeded 90 days past due but continued to accrue interest at September 30, 2014 and December 31, 2013, respectively. The Company believes that continued interest accruals are appropriate because the loans are well secured, not deemed to be in default and the Company is actively pursuing collection of past due payments. | |||
Real Estate Held for Sale | |||
As of September 30, 2014, the Company had five properties acquired through foreclosure, and one via deed in lieu of foreclosure, with outstanding loan balances totaling approximately $1,406,000. The Company has listed the properties for sale through local realtors except for the property for which we received a deed in lieu of foreclosure. The Church is still occupying the property and paying rent while trying to either sell the building or obtain refinancing. Each property is valued based on its current listing price less any anticipated selling costs, including, for example, realtor commissions. The Company records real estate held for sale at the estimated fair value, which is net of the expected expenses related to the sale of the real estate. The fair value of our real estate held for sale, which represents the carrying value, is approximately $517,000 as of September 30, 2014 after an impairment of approximately $889,000. There was no increase in impairment on real estate held for sale during the quarter ended September 30, 2014. | |||
Carrying Value of Long-Lived Assets | |||
The Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that the carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed of significantly before the end of the estimated useful life. | |||
Recoverability is assessed based on the carrying amount of the asset compared to the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An allowance for losses is recognized when the carrying amount is deemed not recoverable and exceeds fair value as determined through various valuation techniques including, but not limited to, discounted cash flow models, quoted market values, and third party independent appraisals. | |||
Revenue Recognition | |||
Interest income on mortgage loans receivable and the bond portfolio is recognized as earned. Other income included with interest represents cash received for loan origination fees, which are recognized over the life of the loan as an adjustment to the yield on the loan. | |||
Deferred Financing Costs | |||
The Company defers the costs related to obtaining financing. These costs are amortized over the life of the financing using the straight line method, which approximates the effective interest method. | |||
Income Per Common Share | |||
No adjustments were made to income for the purpose of calculating earnings per share, as there were no potential dilutive shares outstanding. | |||
Off-Balance Sheet Liabilities | |||
The Company had an off-balance sheet risk concerning unfunded commitments. As of September 30, 2014, the Company had approximately $1,840,000 in unused commitments. These unused commitments represent funding for a construction loan which is being drawn upon as funds for payments are requested. | |||
Recently Issued Accounting Pronouncements | |||
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." Under the amended guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance is effective prospectively, for annual and interim periods, beginning after December 15, 2016. Management is currently evaluating this guidance and does not expect this guidance to have a material impact on the Company’s Consolidated Financial Statements, but significant disclosures to the Notes thereto will be required. | |||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
2. FAIR VALUE MEASUREMENTS | |||||||||||||||||
The Company measures certain financial instruments at fair value in our balance sheets. The fair value of these instruments is based on valuations that include inputs that can be classified within one of the three levels of a hierarchy. Level 1 inputs include quoted market prices in an active market for identical assets or liabilities. Level 2 inputs are market data, other than Level 1, that are observable either directly or indirectly. Level 2 inputs include quoted market prices for similar assets or liabilities, quoted market prices in an inactive market, and other observable information that can be corroborated by market data. Level 3 inputs are unobservable and corroborated by little or no market data. | |||||||||||||||||
Except for the bond portfolio, which is required by authoritative accounting guidance to be recorded at fair value in our Balance Sheets, the Company elected not to record any other financial assets or liabilities at fair value on a recurring basis. We recorded impairment for losses on our Agape bonds (see Note 3), which totaled $200,000 at both September 30, 2014 and December 31, 2013. | |||||||||||||||||
The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring basis: | |||||||||||||||||
Fair Value | |||||||||||||||||
Measurement | |||||||||||||||||
30-Sep-14 | Fair Value | Level 3 | |||||||||||||||
Bond portfolio | $ | 9,983,999 | $ | 9,983,999 | |||||||||||||
Fair Value | |||||||||||||||||
Measurement | |||||||||||||||||
31-Dec-13 | Fair Value | Level 3 | |||||||||||||||
Bond portfolio | $ | 9,079,442 | $ | 9,079,442 | |||||||||||||
We determine the fair value of the bond portfolio shown in the table above by comparing it with similar instruments in inactive markets. The analysis reflects the contractual terms of the bonds, which are callable at par by the issuer at any time, and the anticipated cash flows of the bonds, and uses observable and unobservable market-based inputs. Unobservable inputs include our internal credit rating and selection of similar bonds for valuation. | |||||||||||||||||
The change in Level 3 assets measured at fair value on a recurring basis is summarized as follows: | |||||||||||||||||
Bond Portfolio | |||||||||||||||||
Balance at December 31, 2013 | $9,079,442 | ||||||||||||||||
Purchases | 1,983,250 | ||||||||||||||||
Proceeds | (1,078,693) | ||||||||||||||||
Balance at September 30, 2014 | $9,983,999 | ||||||||||||||||
Real estate held for sale and impaired loans are recorded at fair value on a nonrecurring basis. The fair value of real estate held for sale was based upon the listed sales price less expected selling costs, which is a Level 2 input. The impairment for losses on real estate held for sale were $45,000 and $149,775 for the nine months ended September 30, 2014 and 2013, respectively. The fair value of impaired loans is based upon the Company’s loan loss policy, which is a Level 3 input. The Company provided an additional impairment of $183,317 and $60,634 for loan losses at September 30, 2014 and 2013, respectively. | |||||||||||||||||
The following table summarizes the Company’s financial instruments that were measured at fair value on a nonrecurring basis: | |||||||||||||||||
30-Sep-14 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value at September 30, | ||||||||||||||
2014 | |||||||||||||||||
Impaired Loans | $ | — | $ | — | $ | 1,001,885 | $ | 1,001,885 | |||||||||
Real estate held for resale | — | 517,422 | — | 517,422 | |||||||||||||
$ | — | $ | 517,422 | $ | 1,001,885 | $ | 1,519,307 | ||||||||||
31-Dec-13 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value at December 31, | ||||||||||||||
2013 | |||||||||||||||||
Impaired Loans | $ | — | $ | — | $ | 1,049,673 | $ | 1,049,673 | |||||||||
Real estate held for resale | — | 562,722 | — | 562,722 | |||||||||||||
$ | — | $ | 562,722 | $ | 1,049,673 | $ | 1,612,395 | ||||||||||
The change in Level 2 and Level 3 assets measured at fair value on a nonrecurring basis is summarized as follows: | |||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||
Measurement | Measurement | ||||||||||||||||
Level 3 | Level 2 | ||||||||||||||||
Impaired Loans | Real Estate Held for Sale | ||||||||||||||||
Balance at December 31, 2013 | $ | 1,049,673 | $ | 562,722 | |||||||||||||
Dispositions/Proceeds | (19,230 | ) | (300 | ) | |||||||||||||
Provision for other than temporary losses | (28,558 | ) | (45,000 | ) | |||||||||||||
Balance at September 30, 2014 | $ | 1,001,885 | $ | 517,422 |
Mortgage_Loans_Receivable_And_
Mortgage Loans Receivable And Bond Portfolio | 9 Months Ended | ||
Sep. 30, 2014 | |||
Notes to Financial Statements | ' | ||
Mortgage Loans Receivable And Bond Portfolio | ' | ||
3. MORTGAGE LOANS RECEIVABLE AND BOND PORTFOLIO | |||
At September 30, 2014, the Company had mortgage loans receivable totaling $25,381,197. The loans bear interest ranging from 1.00% to 10.25% with a weighted average of approximately 8.41% at September 30, 2014. The Company had mortgage loans receivable totaling $26,675,361 that bore interest ranging from 1.00% to 10.25% with a weighted average of approximately 8.44% at December 31, 2013. | |||
The Company has a portfolio of secured church bonds at September 30, 2014 and December 31, 2013, which are carried at fair value. The bonds pay either semi-annual or quarterly interest ranging from 2.25% to 9.75%. The aggregate value of secured church bonds equaled approximately $10,184,000 at September 30, 2014 with a weighted average interest rate of 7.24% and approximately $9,279,000 at December 31, 2013 with a weighted average interest rate of 7.54%. These bonds are due at various maturity dates through July 2039. | |||
The contractual maturity schedule for mortgage loans receivable and the bond portfolio as of September 30, 2014, is as follows: | |||
Mortgage Loans | Bond Portfolio | ||
October 1, 2014 through September 30, 2015 | $ 754,252 | $ 897,250 | |
October 1, 2015 through December 31, 2015 | 1,096,094 | - | |
2016 | 1,362,023 | 133,500 | |
2017 | 1,727,964 | 151,000 | |
2018 | 2,100,262 | 266,000 | |
Thereafter | 18,340,602 | 8,736,249 | |
25,381,197 | 10,183,999 | ||
Less loan loss and bond loss allowances | -1,133,010 | (200,000) | |
Less deferred origination income | (376,312) | ______-__ | |
Totals | $23,871,875 | $9,983,999 | |
During the year ended December 31, 2013 the Company owned $2,035,000 First Mortgage Bonds issued by St. Agnes Missionary Baptist Church located in Houston, Texas. The total principal amount of First Mortgage Bonds issued by St. Agnes was $13,375,000. St. Agnes defaulted on its payment obligations to bondholders in June 2007. The church subsequently commenced a Chapter 11 bankruptcy reorganization proceeding regarding the three properties that secure the First Mortgage Bonds in November 2007, which was dismissed in September 2008, and the church was subsequently foreclosed upon. In March 2009, a lease was signed with St. Agnes to permit it to remain in the property while submitting lease payments to bondholders as partial interest payments. Lease payments began in the second quarter of 2009, however St. Agnes failed to make all required lease payments and was evicted from the property in the first quarter of 2010. The Company, along with all other bondholders, had a superior lien over all other creditors. No accrual for interest receivable from the First Mortgage Bonds was recorded by the Company. In September 2011, one of the parcels was sold for $1,300,000. In June 2013 the second of three properties was sold for $335,000 and in November 2013 the main Sanctuary Dome and Fellowship Center was sold for $3,500,000. The liquidation of the collateral serving as security for the bonds was completed and all final funds were distributed (after costs) to the bondholders. This final payment was a return of $71.90 of principal on each original $1,000 bond investment. The Company received a final payment of approximately $160,000. This payment represents a realized loss of $1,875,000 on $2,035,000 original principal amount. The Company had a $1,800,000 aggregate allowance for losses previously recorded against the bonds. A final loss, included in other operating expenses, of $75,000 was recorded as of December 31, 2013. The $160,000 received by the Company represents the final payment on St. Agnes. | |||
The Company currently owns $637,000 First Mortgage Bonds and $497,000 Second Mortgage Bonds issued by Agape Assembly Baptist Church located in Orlando, Florida. The total principal amount of First Mortgage Bonds issued by Agape is $7,200,000, and the total principal amount of Second Mortgage Bonds issued is $715,000. Agape defaulted on its payment obligations to bondholders in September 2010. The church subsequently commenced a Chapter 11 bankruptcy reorganization proceeding regarding the property that secures the First Mortgage Bonds in December 2010. Agape is currently performing under a loan modification agreement. In October 2013, a minimum of 80% of the bondholders of Agape agreed to a modification in the terms of their bonds which has resulted in the resumption of both principal and interest payments to both the first and second mortgage bond holders. Both the First Mortgage Bonds and Second Mortgage Bonds have been modified to a fully amortized fixed rate, quarterly interest payment of 6.25% with a new maturity date of September 2037 for all the issued and outstanding bonds. The Company, along with all other bondholders, has a superior lien over all other creditors. The Company has an aggregate allowance for losses of $200,000 for the First and Second Mortgage Bonds both at September 30, 2014 and December 31, 2013, which effectively reduces the bonds to the fair value amount management believes will be recovered. | |||
Secured_Investor_Certificates
Secured Investor Certificates | 9 Months Ended | ||
Sep. 30, 2014 | |||
Notes to Financial Statements | ' | ||
Secured Investor Certificates | ' | ||
4. SECURED INVESTOR CERTIFICATES | |||
Secured investor certificates are collateralized by certain mortgage loans receivable or secured church bonds of approximately the same value as the certificates. The weighted average interest rate on the certificates was 6.60% and 6.63% at September 30, 2014 and December 31, 2013, respectively. Holders of the secured investor certificates may renew certificates at the current rates and terms upon maturity at the Company’s discretion. Renewals upon maturity are considered neither proceeds from nor issuance of secured investor certificates. Renewals totaled approximately $740,000 and $511,000 for the nine months ended September 30, 2014 and 2013, respectively. The secured investor certificates have certain financial and non-financial covenants identified in the respective series’ trust indentures. | |||
The estimated maturity schedule for the secured investor certificates at September 30, 2014 is as follows: | |||
October 1, 2014 through September 30, 2015 | $ 2,236,000 | ||
October 1, 2015 through December 31, 2015 | 625,000 | ||
2016 | 3,129,000 | ||
2017 | 2,803,000 | ||
2018 | 3,887,000 | ||
Thereafter | 13,300,000 | ||
Totals | $25,980,000 | ||
Transactions_With_Affiliates
Transactions With Affiliates | 9 Months Ended |
Sep. 30, 2014 | |
Notes to Financial Statements | ' |
Transactions With Affiliates | ' |
5. TRANSACTIONS WITH AFFILIATES | |
The Company has an Advisory Agreement with Church Loan Advisors, Inc. (the “Advisor”). The Advisor is responsible for the day-to-day operations of the Company and provides office space and administrative services. The Advisor and the Company are related through common ownership and common management. A majority of the independent board members approve the advisory agreement on an annual basis. The Company paid the Advisor management fees and origination fees of approximately $144,000 and $93,000 for the three months ended September 30, 2014 and 2013, respectively. The Company paid the Advisor $321,000 and $285,000 for the nine months ended September 30, 2014 and 2013, respectively |
Fair_Value_Financial_Instrumen
Fair Value Financial Instruments | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Notes to Financial Statements | ' | ||||
Fair Value Financial Instruments | ' | ||||
6. FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
The Company is required to disclose the fair value information about financial instruments, where it is practicable to estimate that value. Because assumptions used in these valuation techniques are inherently subjective in nature, the estimated fair values cannot always be substantiated by comparison to independent market quotes and, in many cases, the estimated fair values could not necessarily be realized in an immediate sale or settlement of the instrument. | |||||
The fair value estimates presented herein are based on relevant information available to management as of September 30, 2014 and December 31, 2013, respectively. Management is not aware of any factors that would significantly affect these estimated fair value amounts. As these reporting requirements exclude certain financial instruments and all non-financial instruments, the aggregate fair value amounts presented herein do not represent management’s estimate of the underlying value of the Company. | |||||
The estimated fair values of the Company’s financial instruments, none of which are held for trading purposes, are as follows: | |||||
30-Sep-14 | 31-Dec-13 | ||||
Carrying | Fair | Carrying | Fair | ||
Amount | Value | Amount | Value | ||
Cash and equivalents | $ 3,591,461 | $ 3,591,461 | $ 3,143,377 | $ 3,143,377 | |
Accounts receivable | 267,695 | 267,695 | 197,687 | 197,687 | |
Interest receivable | 137,348 | 137,348 | 129,972 | 129,972 | |
Mortgage loans receivable | 25,381,197 | 29,424,143 | 26,675,361 | 28,950,766 | |
Bond portfolio | 10,183,999 | 10,183,999 | 9,279,442 | 9,279,442 | |
Secured investor certificates | 25,980,000 | 33,578,404 | 25,695,000 | 36,312,309 | |
The following methods and assumptions were used by the Company to estimate the fair value of each class of financial instrument for which it is practicable to estimate that value: | |||||
Cash and equivalents | |||||
Due to their short-term nature, the carrying amount of cash and cash equivalents approximates fair value. | |||||
Accounts receivable | |||||
The carrying amount of accounts receivable approximates fair value. | |||||
Interest receivable | |||||
The carrying amount of interest receivable approximates fair value. | |||||
Mortgage loans receivable | |||||
The fair value of the mortgage loans receivable is currently greater than the carrying value as the portfolio is currently yielding a higher rate than similar mortgages with similar terms for borrowers with similar credit quality. | |||||
Bond portfolio | |||||
We determine the fair value of the bond portfolio shown in the table above by comparing with similar instruments in inactive markets. The analysis reflects the contractual terms of the bonds, which are callable at par by the issuer at any time, and the anticipated cash flows of the bonds and uses observable and unobservable market-based inputs. Unobservable inputs include our internal credit rating and selection of similar bonds for valuation. | |||||
Secured investor certificates | |||||
The fair value of the secured investor certificates is currently greater than the carrying value due to higher interest rates than current market rates. | |||||
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policies) | 9 Months Ended | ||
Sep. 30, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Basis Of Presentation | ' | ||
Basis of Presentation | |||
The accompanying unaudited financial statements have been prepared in accordance with the instructions for interim statements and, therefore, do not include all information and disclosures necessary for fair presentation of results of operations, financial position, and changes in cash flow in conformity with generally accepted accounting principles. However, in the opinion of management, such statements reflect all adjustments (which include only normal recurring adjustments) necessary for fair presentation of financial position, results of operations, and cash flows for the period presented. | |||
The unaudited financial statements of the Company should be read in conjunction with the December 31, 2013 audited financial statements included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission for the year ended December 31, 2013. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. | |||
Nature of Business | ' | ||
Nature of Business | |||
American Church Mortgage Company, a Minnesota corporation, was incorporated on May 27, 1994. The Company was organized as a real estate investment trust to engage primarily in the business of making mortgage loans to churches and other nonprofit religious organizations throughout the United States, on terms established for individual organizations. | |||
Accounting Estimates | ' | ||
Accounting Estimates | |||
Management uses estimates and assumptions in preparing these financial statements in accordance with accounting principles generally accepted in the United States of America. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. The most sensitive estimates relate to the realizability of the mortgage loans receivable, and the valuation of the bond portfolio and real estate held for sale. It is at least reasonably possible that these estimates could change in the near term and that the effect of the change, if any, may be material to the financial statements. | |||
Concentration of Credit Risk | ' | ||
Concentration of Credit Risk | |||
The Company's loans have been granted to churches and other non-profit religious organizations. The ability of the Company’s debtors to honor their contracts is dependent on member contributions and the involvement in the church or organization of its senior pastor. | |||
Cash and Equivalents | ' | ||
Cash and Equivalents | |||
The Company considers all highly liquid debt instruments purchased with maturities of three months or less to be cash equivalents. | |||
The Company maintains accounts primarily at two financial institutions. At times throughout the year, the Company’s cash and equivalents balances may exceed amounts insured by the Federal Deposit Insurance Corporation. Cash in money market funds is not federally insured. The Company had $61,580 and $160,808 in money market fund accounts at September 30, 2014 and December 31, 2013, respectively. The Company has not experienced any losses in such accounts. | |||
Bond Portfolio | ' | ||
Bond Portfolio | |||
The Company accounts for the bond portfolio under Accounting Standards Codification (ASC) Section 320. The Company classifies the bond portfolio as “available-for-sale” and measures the portfolio at fair value. While the bonds are generally held until contractual maturity, the Company classifies them as available-for-sale as the bonds may be used to repay secured investor certificates or provide additional liquidity or working capital in the short term. The Company has classified $897,250 and $796,000 in bonds as current assets as of September 30, 2014 and December 31, 2013, respectively, based on management’s estimates for liquidity requirements and contractual maturities of certain bonds maturing in 2014 and 2013, respectively. | |||
Allowance for Mortgage Loans Receivable | ' | ||
Allowance for Mortgage Loans Receivable | |||
The Company records mortgage loans receivable at estimated net realizable value, which is the unpaid principal balances of the mortgage loans receivable, less the allowance for mortgage loans. The Company’s loan loss policy provides an allowance for estimated uncollectible loans based on an evaluation of the current status of the loan portfolio. This policy provides for principal amounts outstanding on a particular loan if cumulative interruptions occur in the normal payment schedule of a loan; therefore, the Company recognizes a provision for losses and an allowance for the outstanding principal amount of a loan in the Company’s portfolio if the amount is in doubt of collection. Additionally, no additional interest income is recognized on impaired loans that are declared to be in default and are in the foreclosure process. At September 30, 2014, the Company provided $1,133,010 for seventeen mortgage loans, of which eleven are three or more mortgage payments in arrears, two loans are declared to be in default and one loan is in the foreclosure process. At December 31, 2013, the Company provided $949,693 for fourteen mortgage loans, of which six were three or more mortgage payments in arrears, two loans declared to be in default and one loan is in the foreclosure process. | |||
A summary of transactions in the allowance for credit losses for the nine months ended September 30, 2014 is as follows: | |||
Balance at December 31, 2013 | $ 949,693 | ||
Provision for additional losses | 183,317 | ||
Charge-offs | - | ||
Balance at September 30, 2014 | $1,133,010 | ||
The total impaired loans, which are loans that are in the foreclosure process or are declared to be in default, were approximately $1,524,000 and $1,543,000 at September 30, 2014 and December 31, 2013, respectively, which the Company believes are adequately secured by the underlying collateral and the allowance for mortgage loans. | |||
The Company will declare a loan to be in default and will place the loan on non-accrual status when the following thresholds have been met: (i) the borrower has missed three consecutive mortgage payments; (ii) the borrower has not communicated to the Company any legitimate reason for delinquency in its payments to the Company and has not arranged for the re-continuance of payments; (iii) lines of communication to the borrower have broken down such that any reasonable prospect of rehabilitating the loan and return of regular payments is gone. | |||
The Company’s policies on payments received and interest accrued on non-accrual loans are as follows: (i) The Company will accept payments on loans that are currently on non-accrual status when a borrower has communicated to us that they intend to meet their mortgage obligations. A payment made on a non-accrual loan is considered a good faith deposit as to the intent to resume their mortgage payment obligation. This good faith deposit is credited back to interest first then principal as stated in the mortgage loan documentation. (ii) A letter outlining the re-payment terms or the restructure terms (if any) of the loan is provided to the borrower. This letter will be signed by the Senior Pastor and all board members of the borrower. This letter resumes the obligation to make payments on non-accrual loans. (iii) The borrower must meet all its payment obligations for the next 120 days without interruption in order to be removed from non-accrual status. | |||
When a loan is declared in default according to the Company’s policy or deemed to be doubtful of collection, the loan committee of the Advisor to the Company will direct the staff to charge-off the uncollectable receivables. | |||
Loans totaling approximately $5,470,000 and $3,237,000 exceeded 90 days past due but continued to accrue interest at September 30, 2014 and December 31, 2013, respectively. The Company believes that continued interest accruals are appropriate because the loans are well secured, not deemed to be in default and the Company is actively pursuing collection of past due payments. | |||
Real Estate Held for Sale | ' | ||
Real Estate Held for Sale | |||
As of September 30, 2014, the Company had five properties acquired through foreclosure, and one via deed in lieu of foreclosure, with outstanding loan balances totaling approximately $1,406,000. The Company has listed the properties for sale through local realtors except for the property for which we received a deed in lieu of foreclosure. The Church is still occupying the property and paying rent while trying to either sell the building or obtain refinancing. Each property is valued based on its current listing price less any anticipated selling costs, including, for example, realtor commissions. The Company records real estate held for sale at the estimated fair value, which is net of the expected expenses related to the sale of the real estate. The fair value of our real estate held for sale, which represents the carrying value, is approximately $517,000 as of September 30, 2014 after an impairment of approximately $889,000. There was no increase in impairment on real estate held for sale during the quarter ended September 30, 2014. | |||
Carrying Value of Long-Lived Assets | ' | ||
Carrying Value of Long-Lived Assets | |||
The Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that the carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed of significantly before the end of the estimated useful life. | |||
Recoverability is assessed based on the carrying amount of the asset compared to the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An allowance for losses is recognized when the carrying amount is deemed not recoverable and exceeds fair value as determined through various valuation techniques including, but not limited to, discounted cash flow models, quoted market values, and third party independent appraisals. | |||
Revenue Recognition | ' | ||
Revenue Recognition | |||
Interest income on mortgage loans receivable and the bond portfolio is recognized as earned. Other income included with interest represents cash received for loan origination fees, which are recognized over the life of the loan as an adjustment to the yield on the loan. | |||
Deferred Financing Costs | ' | ||
Deferred Financing Costs | |||
The Company defers the costs related to obtaining financing. These costs are amortized over the life of the financing using the straight line method, which approximates the effective interest method. | |||
Income Per Common Share | ' | ||
Income Per Common Share | |||
No adjustments were made to income for the purpose of calculating earnings per share, as there were no potential dilutive shares outstanding. | |||
Off Balance Sheet Liabilities | ' | ||
Off-Balance Sheet Liabilities | |||
The Company had an off-balance sheet risk concerning unfunded commitments. As of September 30, 2014, the Company had approximately $1,840,000 in unused commitments. These unused commitments represent funding for a construction loan which is being drawn upon as funds for payments are requested. | |||
Recently Issued Accounting Pronouncements | ' | ||
Recently Issued Accounting Pronouncements | |||
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." Under the amended guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance is effective prospectively, for annual and interim periods, beginning after December 15, 2016. Management is currently evaluating this guidance and does not expect this guidance to have a material impact on the Company’s Consolidated Financial Statements, but significant disclosures to the Notes thereto will be required. | |||
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Tables) | 9 Months Ended | ||
Sep. 30, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Allowacne For Credit Losses | ' | ||
Balance at December 31, 2013 | $ 949,693 | ||
Provision for additional losses | 183,317 | ||
Charge-offs | - | ||
Balance at September 30, 2014 | $1,133,010 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurement Bond Portfolio | ' | ||||||||||||||||
Fair Value | |||||||||||||||||
Measurement | |||||||||||||||||
30-Sep-14 | Fair Value | Level 3 | |||||||||||||||
Bond portfolio | $ | 9,983,999 | $ | 9,983,999 | |||||||||||||
Fair Value | |||||||||||||||||
Measurement | |||||||||||||||||
31-Dec-13 | Fair Value | Level 3 | |||||||||||||||
Bond portfolio | $ | 9,079,442 | $ | 9,079,442 | |||||||||||||
Change In Fair Value Bond Portfolio | ' | ||||||||||||||||
Bond Portfolio | |||||||||||||||||
Balance at December 31, 2013 | $9,079,442 | ||||||||||||||||
Purchases | 1,983,250 | ||||||||||||||||
Proceeds | (1,078,693) | ||||||||||||||||
Balance at September 30, 2014 | $9,983,999 | ||||||||||||||||
Impaired Loans and Real Estate Held For Sale | ' | ||||||||||||||||
30-Sep-14 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value at September 30, | ||||||||||||||
2014 | |||||||||||||||||
Impaired Loans | $ | — | $ | — | $ | 1,001,885 | $ | 1,001,885 | |||||||||
Real estate held for resale | — | 517,422 | — | 517,422 | |||||||||||||
$ | — | $ | 517,422 | $ | 1,001,885 | $ | 1,519,307 | ||||||||||
31-Dec-13 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value at December 31, | ||||||||||||||
2013 | |||||||||||||||||
Impaired Loans | $ | — | $ | — | $ | 1,049,673 | $ | 1,049,673 | |||||||||
Real estate held for resale | — | 562,722 | — | 562,722 | |||||||||||||
$ | — | $ | 562,722 | $ | 1,049,673 | $ | 1,612,395 | ||||||||||
Fair Value Measurement Period Increase Decrease | ' | ||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||
Measurement | Measurement | ||||||||||||||||
Level 3 | Level 2 | ||||||||||||||||
Impaired Loans | Real Estate Held for Sale | ||||||||||||||||
Balance at December 31, 2013 | $ | 1,049,673 | $ | 562,722 | |||||||||||||
Dispositions/Proceeds | (19,230 | ) | (300 | ) | |||||||||||||
Provision for other than temporary losses | (28,558 | ) | (45,000 | ) | |||||||||||||
Balance at September 30, 2014 | $ | 1,001,885 | $ | 517,422 |
Mortgage_Loans_Receivable_And_1
Mortgage Loans Receivable And Bond Portfolio (Tables) | 9 Months Ended | ||
Sep. 30, 2014 | |||
Notes to Financial Statements | ' | ||
Mortage Loans Receivable And Bond Portfolio | ' | ||
Mortgage Loans | Bond Portfolio | ||
October 1, 2014 through September 30, 2015 | $ 754,252 | $ 897,250 | |
October 1, 2015 through December 31, 2015 | 1,096,094 | - | |
2016 | 1,362,023 | 133,500 | |
2017 | 1,727,964 | 151,000 | |
2018 | 2,100,262 | 266,000 | |
Thereafter | 18,340,602 | 8,736,249 | |
25,381,197 | 10,183,999 | ||
Less loan loss and bond loss allowances | -1,133,010 | (200,000) | |
Less deferred origination income | (376,312) | ______-__ | |
Totals | $23,871,875 | $9,983,999 |
Secured_Investor_Certificates_
Secured Investor Certificates (Tables) | 9 Months Ended | ||
Sep. 30, 2014 | |||
Notes to Financial Statements | ' | ||
Maturity Schedule Secured Investor Certificates | ' | ||
October 1, 2014 through September 30, 2015 | $ 2,236,000 | ||
October 1, 2015 through December 31, 2015 | 625,000 | ||
2016 | 3,129,000 | ||
2017 | 2,803,000 | ||
2018 | 3,887,000 | ||
Thereafter | 13,300,000 | ||
Totals | $25,980,000 |
Fair_Value_Financial_Instrumen1
Fair Value Financial Instruments (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Notes to Financial Statements | ' | ||||
Carrying And Fair Value Financial Instruments | ' | ||||
30-Sep-14 | 31-Dec-13 | ||||
Carrying | Fair | Carrying | Fair | ||
Amount | Value | Amount | Value | ||
Cash and equivalents | $ 3,591,461 | $ 3,591,461 | $ 3,143,377 | $ 3,143,377 | |
Accounts receivable | 267,695 | 267,695 | 197,687 | 197,687 | |
Interest receivable | 137,348 | 137,348 | 129,972 | 129,972 | |
Mortgage loans receivable | 25,381,197 | 29,424,143 | 26,675,361 | 28,950,766 | |
Bond portfolio | 10,183,999 | 10,183,999 | 9,279,442 | 9,279,442 | |
Secured investor certificates | 25,980,000 | 33,578,404 | 25,695,000 | 36,312,309 |
Summary_Of_Significant_Account3
Summary Of Significant Accounting Policies (Details Narrative) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Accounting Policies [Abstract] | ' | ' |
Money Market Funds | $61,580 | $160,808 |
Bond Portfolio | 897,250 | 796,000 |
Allowance for Mortgage Loans Receivable | 1,133,010 | 949,693 |
Impaired Loans | 1,524,000 | 1,543,000 |
Loans Exceeding 90 Days Past Due | 5,470,000 | 3,237,000 |
Foreclosed Properties | 1,406,000 | ' |
Real Estate Held for Sale Carrying Value | 517,422 | 562,722 |
Loan Impairment | 889,000 | ' |
Off-Balance Sheet Liabilities | $1,840,000 | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Fair Value Disclosures [Abstract] | ' | ' | ' | ' | ' |
Provision for Losses Bond Portfolio | ' | ' | $200,000 | ' | $200,000 |
Impairment Charges Real Estate Held for Sale | ' | ' | 45,000 | 149,775 | ' |
Provision for losses on mortgage loans receivable | $110,872 | $41,453 | $183,317 | $60,634 | ' |
Mortgage_Loans_Receivable_And_2
Mortgage Loans Receivable And Bond Portfolio - Mortage Loans Receivable And Bond Portfolio (Details) (USD $) | Sep. 30, 2014 |
Mortgage Loans | ' |
October 1, 2014 through September 30, 2015 | $754,252 |
October 1, 2015 through December 31, 2015 | 1,096,094 |
2016 | 1,362,023 |
2017 | 1,727,964 |
2018 | 2,100,262 |
Thereafter | 18,340,602 |
Subtotal | 25,381,197 |
Less loan loss and bond loss allowances | -1,133,010 |
Less deferred origination income | -376,312 |
Totals | 23,871,875 |
Bond Portfolio | ' |
October 1, 2014 through September 30, 2015 | 897,250 |
October 1, 2015 through December 31, 2015 | ' |
2016 | 133,500 |
2017 | 151,000 |
2018 | 266,000 |
Thereafter | 8,736,249 |
Subtotal | 10,183,999 |
Less loan loss and bond loss allowances | -200,000 |
Less deferred origination income | ' |
Totals | $9,983,999 |
Mortgage_Loans_Receivable_And_3
Mortgage Loans Receivable And Bond Portfolio (Details Narrative) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Notes to Financial Statements | ' | ' |
Mortgage Loans Receivable Gross | $27,221,356 | $26,675,361 |
Church Bonds Owned Gross | 10,184,000 | 9,279,000 |
Bond Reserve Fund | 200,000 | 200,000 |
St. Agnes Bonds Owned Gross | ' | 2,035,000 |
St. Agnes Bonds Gross | ' | 13,375,000 |
Bond Reserve Fund | ' | 1,800,000 |
Sale Proceeds Parcel 1 St. Agnes | ' | 1,300,000 |
Sale Proceeds Parcel 2 St. Agnes | ' | 335,000 |
Sale Proceeds Parcel 3 St. Agnes | ' | 3,500,000 |
Final Payment Amount St. Agnes per Bond | ' | 72 |
Oringinal Principal Amount St. Agnes Bond | ' | 1,000 |
Final Payment Amount St. Agnes | ' | 160,000 |
Final Operating Loss St. Agnes | ' | 75,000 |
Agape First Mortgage Bonds | 637,000 | ' |
Agape Second Mortgage Bonds | 497,000 | ' |
Agape First Mortgage Bonds Gross | 7,200,000 | ' |
Agape Second Mortgage Bonds Gross | 715,000 | ' |
Agape Bond Reserve | $200,000 | ' |
Secured_Investor_Certificates_1
Secured Investor Certificates - Maturity Schedule Secured Investor Certificates (Details) (Secured Investor Certificates, USD $) | Sep. 30, 2014 |
Secured Investor Certificates | ' |
October 1, 2014 through June 30, 2014 | $2,236,000 |
July 1, 2015 through December 31, 2015 | 625,000 |
2016 | 3,129,000 |
2017 | 2,803,000 |
2018 | 3,887,000 |
Thereafter | 13,300,000 |
Totals | $25,980,000 |
Secured_Investor_Certificates_2
Secured Investor Certificates (Details Narrative) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Notes to Financial Statements | ' | ' |
Weighted Average Interest Rate | 6.6 | 6.63 |
Secured Investos Certificates Renewal | $740,000 | $511,000 |
Transactions_With_Affiliates_D
Transactions With Affiliates (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Notes to Financial Statements | ' | ' | ' | ' |
Management Fee | $144,000 | $285,000 | $321,000 | $93,000 |
Fair_Value_Financial_Instrumen2
Fair Value Financial Instruments - Carrying And Fair Value Financial Instruments (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Interest receivable | $137,348 | $129,972 |
Carrying Value Disclosure | ' | ' |
Cash and equivalents | 3,591,461 | 3,143,377 |
Accounts receivable | 267,695 | 197,687 |
Interest receivable | 137,348 | 129,672 |
Mortgage loans receivable | 25,381,197 | 26,675,361 |
Bond portfolio | 10,183,999 | 9,279,442 |
Secured investor certificates | 25,980,000 | 25,695,000 |
Fair Value Disclosure | ' | ' |
Cash and equivalents | 3,591,461 | 3,143,377 |
Accounts receivable | 267,695 | 197,687 |
Interest receivable | 137,438 | 129,672 |
Mortgage loans receivable | 29,424,143 | 28,950,766 |
Bond portfolio | 10,183,999 | 9,279,442 |
Secured investor certificates | $33,578,404 | $36,312,309 |