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LOANS (Tables)
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Investment holdings, schedule of investments
Investments consisted of the following at:
December 31, 2025December 31, 2024
CostFair ValueCostFair Value
Residuals in securitizations, at fair value (NOTE 3)
$32,481 $76,701 $— $— 
Joint ventures and other investments, at fair value36,692 47,719 44,039 57,678 
Debt securities available-for-sale, at fair value
16,836 16,829 23,934 23,916 
Federal Home Loan Bank and Federal Reserve Bank stock
4,234 4,234 3,585 3,585 
Total investments$90,243 $145,483 $71,558 $85,179 
The following table shows the Company’s loan portfolio by collateral type for loans HFI, at fair value:
Loans HFI, at Fair Value
December 31, 2025December 31, 2024
CostFair ValueCostFair Value
CRE$131,015 $138,110 $162,894 $175,353 
Residential Real Estate52,229 50,539 69,667 67,474 
Machinery and Equipment¹46,552 43,266 60,460 56,454 
Accounts Receivable and Inventory43,944 38,670 59,449 54,267 
Unsecured4,295 4,259 5,643 5,644 
Other²8,619 6,354 13,033 10,554 
Total$286,654 $281,198 $371,146 $369,746 
1    Machinery and Equipment includes one loan at NewtekOne at $4.7 million Cost and $4.7 million Fair value as of December 31, 2025, and $4.7 million Cost and $4.6 million Fair Value as of December 31, 2024.
2    Other includes one loan at NewtekOne at $1.0 million Cost and $0.2 million Fair Value as of December 31, 2025, and one loan at $2.0 million Cost and $1.1 million Fair Value as of December 31, 2024.
Schedule of loans and leases The following table shows the Company’s loan portfolio by loan type for loans HFI, at amortized cost:
Loans HFI, at Amortized Cost
December 31, 2025December 31, 2024
SBA$539,746 $380,981 
CRE274,194 191,831 
C&I80,380 47,558 
Total Loans894,320 620,370 
Deferred fees and costs, net2,369 1,281 
Loans held for investment, at amortized cost, net of deferred fees and costs$896,689 $621,651 
The following tables summarize the aging of accrual and non-accrual loans HFI, at fair value by class:
As of December 31, 2025
Past Due and Accruing
Non- accrual
Total Past Due and Non-accrual
CurrentTotal Accounted for Under the FV Option
30-59 Days
60-89 Days
90+ Days
SBA, at fair value$10,843 $5,903 $2,732 $72,543 $92,021 $189,177 $281,198 
As of December 31, 2024
Past Due and Accruing
Non- accrual
Total Past Due and Non-accrual
CurrentTotal Accounted for Under the FV Option
30-59 Days
60-89 Days
90+ Days
SBA, at fair value$23,158 $18,400 $9,268 $67,304 $118,130 $251,616 $369,746 
The following tables summarize the aging of accrual and non-accrual loans HFI, at amortized cost by class:
As of December 31, 2025
Past Due and Accruing
Non- accrual
Total Past Due and Non-accrual
CurrentTotal Carried at Amortized Cost
30-59 Days
60-89 Days
90+ Days
At amortized cost
SBA
$9,740 $5,628 $— $74,008 $89,376 $450,370 $539,746 
CRE— — — 2,976 2,976 271,218 274,194 
C&I5,089 98 — 1,830 7,017 73,363 80,380 
Total, at amortized cost
$14,829 $5,726 $— $78,814 $99,369 $794,951 $894,320 
Deferred fees and costs2,369 
Total, at amortized cost net of deferred fees and costs$896,689 
Allowance for credit losses(45,226)
Total, at amortized cost, net
$851,463 
As of December 31, 2024
Past Due and Accruing
Non- accrual
Total Past Due and Non-accrual
CurrentTotal Carried at Amortized Cost
30-59 Days
60-89 Days
90+ Days
At amortized cost
SBA$11,264 $9,046 $— $21,706 $42,016 $338,965 $380,981 
CRE— — — 2,635 2,635 189,196 191,831 
C&I275 — — — 275 47,283 47,558 
Total, at amortized cost$11,539 $9,046 $— $24,341 $44,926 $575,444 $620,370 
Deferred fees and costs1,281 
Total, at amortized cost net of deferred fees and costs$621,651 
Allowance for credit losses(30,233)
Total, at amortized cost, net$591,418 
Credit quality indicators
The following tables present asset quality indicators by portfolio class and origination year at December 31, 2025 and December 31, 2024:
December 31, 2025Term Loans HFI by Origination Year
20252024202320222021PriorTotal
SBA, at fair value
Risk Grades 1-4$— $— $17,823 $78,437 $27,409 $82,954 $206,623 
Risk Grades 5-6— — 3,861 19,677 7,498 43,431 74,467 
Risk Grade 7— — 33 50 — — 83 
Risk Grade 8— — — 25 — — 25 
Total$— $— $21,717 $98,189 $34,907 $126,385 $281,198 
SBA, at amortized cost, net of deferred fees and costs
Risk Grades 1-4$189,147 $168,558 $74,500 $— $— $— $432,205 
Risk Grades 5-63,454 39,769 35,032 — — — 78,255 
Risk Grade 7332 11,069 10,205 — — — 21,606 
Risk Grade 846 2,371 5,263 — — — 7,680 
Total$192,979 $221,767 $125,000 $— $— $— $539,746 
CRE, at amortized cost, net of deferred fees and costs
Risk Grades 1-4$100,724 $52,167 $25,429 $30,508 $15,753 $42,090 $266,671 
Risk Grades 5-61,800 885 — 1,742 — 3,096 7,523 
Risk Grade 7— — — — — — — 
Total$102,524 $53,052 $25,429 $32,250 $15,753 $45,186 $274,194 
C&I, at amortized cost, net of deferred fees and costs
Risk Grades 1-4$58,284 $12,367 $3,315 $— $— $— $73,966 
Risk Grades 5-6711 5,383 36 — — — 6,130 
Risk Grade 7— 284 — — — — 284 
Total$58,995 $18,034 $3,351 $— $— $— $80,380 
Total$354,498 $292,853 $175,497 $130,439 $50,660 $171,571 $1,175,518 
December 31, 2024Term Loans HFI by Origination Year
20242023202220212020PriorTotal
SBA, at fair value
Risk Grades 1-4$— $24,061 $112,058 $40,641 $20,379 $102,569 $299,708 
Risk Grades 5-6— 3,469 18,592 5,365 3,188 39,225 69,839 
Risk Grade 7— — — — — — — 
Risk Grade 8— — 144 17 22 16 199 
Total$— $27,530 $130,794 $46,023 $23,589 $141,810 $369,746 
SBA, at amortized cost, net of deferred fees and costs
Risk Grades 1-4$224,958 $110,735 $— $— $— $— $335,693 
Risk Grades 5-67,475 32,753 — — — — 40,228 
Risk Grade 7588 4,132 — — — — 4,720 
Risk Grade 885 255 — — — — 340 
Total$233,106 $147,875 $— $— $— $— $380,981 
CRE, at amortized cost, net of deferred fees and costs
Risk Grades 1-4$51,889 $25,697 $33,235 $15,763 $395 $60,614 $187,593 
Risk Grades 5-6— — — — 883 3,355 4,238 
Risk Grade 7— — — — — — — 
Total$51,889 $25,697 $33,235 $15,763 $1,278 $63,969 $191,831 
C&I, at amortized cost, net of deferred fees and costs
Risk Grades 1-4$44,251 $1,532 $— $— $— $1,500 $47,283 
Risk Grades 5-6— 275 — — — — 275 
Risk Grade 7— — — — — — — 
Total$44,251 $1,807 $— $— $— $1,500 $47,558 
Total$329,246 $202,909 $164,029 $61,786 $24,867 $207,279 $990,116 
Allowance for credit losses
The following table details activity in the ACL for the years ended December 31, 2025 and 2024:

December 31, 2025December 31, 2024
CRE
C&I
SBA
Total
CRE
C&I
SBA
Total
Beginning balance$1,430 $315 $28,488 $30,233 $1,408 $314 $10,852 $12,574 
Charge offs(299)(1,775)(21,735)(23,809)(236)— (7,836)(8,072)
Recoveries— — 199 199 — — — — 
Provision for credit losses1
742 4,742 33,119 38,603 258 1 25,472 25,731 
Ending balance$1,873 $3,282 $40,071 $45,226 $1,430 $315 $28,488 $30,233 

1     Excludes $126 thousand and $0.5 million of Provision for credit losses relating to unfunded commitments for the year ended December 31, 2025 and December 31, 2024, respectively, which is recorded within Accounts payable, accrued expenses and other liabilities in accordance with ASC 326.
The following table presents the individually evaluated and collectively evaluated ACL by segment:

December 31, 2025December 31, 2024
ACL
CREC&ISBATotalCREC&ISBATotal
Individually Evaluated
$— $1,328 $12,311 $13,639 $— $— $7,019 $7,019 
Collectively Evaluated
1,873 1,954 27,760 31,587 1,430 315 21,469 23,214 
Total
$1,873 $3,282 $40,071 $45,226 $1,430 $315 $28,488 $30,233 

The following table presents the recorded investment in loans individually evaluated and collectively evaluated by segment:

December 31, 2025December 31, 2024
Recorded Investment
CREC&ISBATotalCREC&ISBATotal
Individually Evaluated
$18,487 $1,827 $74,008 $94,322 $2,635 $— $21,706 $24,341 
Collectively Evaluated
255,707 78,553 465,738 799,998 189,196 47,558 359,275 596,029 
Total
$274,194 $80,380 $539,746 $894,320 $191,831 $47,558 $380,981 $620,370 
The unpaid contractual principal balance and recorded investment for the loans individually assessed is shown in the table below by type:

December 31, 2025December 31, 2024
Real Estate CollateralNon-Real Estate CollateralTotal
ACL
Real Estate Collateral
Non-Real Estate Collateral
Total
ACL
SBA$44,066 $29,942 $74,008 $12,311 $19,586 $2,120 $21,706 $7,019 
CRE18,487 — 18,487 — 2,635 — 2,635 — 
C&I419 1,408 1,827 1,328 — — — — 
Total$62,972 $31,350 $94,322 $13,639 $22,221 $2,120 $24,341 $7,019 
Past due loans
The amortized cost basis of loans on nonaccrual status and the associated ACL are as follows:

December 31, 2025December 31, 2024
Nonaccrual without AllowanceNonaccrual with AllowanceACL
Nonaccrual without Allowance
Nonaccrual with AllowanceACL
SBA$34,058 $39,950 $12,311 $7,264 $14,442 $7,019 
CRE2,979 — — 2,635 — — 
C&I419 1,408 1,328 — — — 
Total
$37,456 $41,358 $13,639 $9,899 $14,442 $7,019 
The following tables summarize the aging of accrual and non-accrual loans HFS, at fair value by class:
As of December 31, 2025
Past Due and Accruing
Non- accrual
Total Past Due and Non-accrual
CurrentTotal Accounted for Under the FV Option
30-59 Days
60-89 Days
90+ Days1
SBA, at fair value$21,441 $5,018 $8,713 $12,580 $47,752 $508,937 $556,689 
ALP, at fair value9,049 — — 11,634 20,683 394,465 415,148 
Total$30,490 $5,018 $8,713 $24,214 $68,435 $903,402 $971,837 
1    Loans are well collateralized and in the process of collection.

As of December 31, 2024
Past Due and Accruing
Non- accrual
Total Past Due and Non-accrual
CurrentTotal Accounted for Under the FV Option
30-59 Days
60-89 Days
90+ Days
SBA, at fair value$29,119 $13,367 $— $250 $42,736 $117,052 $159,788 
ALP, at fair value— 2,492 — — 2,492 210,006 212,498 
Total$29,119 $15,859 $— $250 $45,228 $327,058 $372,286 
The following tables summarize the aging of accrual and non-accrual loans HFS, at LCM by class:
As of December 31, 2025
Past Due and AccruingNon- accrualTotal Past Due and Non-accrualCurrentTotal Carried at Amortized Cost
30-59 Days60-89 Days90+ Days
SBA$— $— $— $2,435 2,435 $24,097 $26,532 
As of December 31, 2024
Past Due and AccruingNon- accrualTotal Past Due and Non-accrualCurrentTotal Carried at Amortized Cost
30-59 Days60-89 Days90+ Days
SBA$2,164 $1,099 $— $— $3,263 $55,540 $58,803 
Modified financing receivable The following table summarizes the amortized cost basis of loans that were modified:
Year Ended December 31, 2025
Other-Than-Insignificant Payment DelayTerm ExtensionInterest Rate ReductionPrincipal Forgiveness% of Total Class of Financing Receivable
SBA$458 $— $— $— $— 
CRE— — — — — 
C&I— — — — — 
Total Modifications$458 $— $— $— $— 

The following table provides the amortized cost basis of loans that had a payment default during the period and were modified in the 12 months before default, consisting of 2 loans for the year ended December 31, 2025:

Year Ended December 31, 2025
Other-Than-Insignificant Payment Delay
Term Extension
Interest Rate Reduction
Principal Forgiveness
% of Total Class of Financing Receivable
SBA$299 $— $— $— $— 
CRE— — — — — 
C&I— — — — — 
Total Defaults$299 $— $— $— $— 
Held for sale
December 31, 2025December 31, 2024
SBA 504 First Lien$201,013 $128,255 
SBA 504 Second Lien31,207 26,678 
SBA 7(a)303,716 4,855 
SBA 7(a) Partials1
20,753 — 
ALP415,148 212,498 
Loans held for sale, at fair value$971,837 $372,286 
1    Reclassified from Loans held for sale, at LCM
Loans held for sale, at LCM
December 31, 2025December 31, 2024
SBA 504 First Lien$19,075 $36,783 
SBA 504 Second Lien7,457 8,203 
SBA 7(a) Partials1
— 13,817 
Loans held for sale, at LCM
$26,532 $58,803 
1    Reclassified to Loans held for sale, at fair value