Company: CMCT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0000908311-25-000096
Chunk: 175

Company: Creative Media & Community Trust Corp
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 175
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 Loans Receivable, Held for Sale— Represents the government guaranteed portion of loans held for sale at the end of the period or that had been sold but in respect of which proceeds had not been received as of the end of the period. 

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Table of ContentsCREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSSeptember 30, 2025 (Unaudited) – (Continued)

Current Expected Credit Losses CECL reflects the Company’s current estimate of potential credit losses related to loans receivable included in the Company’s consolidated balance sheets as of September 30, 2025 pursuant to ASU 2016-13 as implemented effective January 1, 2023. Refer to Note 2 for further discussion of CECL.The following table presents the activity in the Company’s CECL for the nine months ended September 30, 2025 and September 30, 2024 (dollar amounts in thousands):Loans ReceivableCurrent expected credit losses as of December 31, 2024$2,032 Net adjustment to reserve for expected credit losses39 Current expected credit losses as of March 31, 20252,071 Net adjustment to reserve for expected credit losses380 Current expected credit losses as of June 30, 20252,451 Net adjustment to reserve for expected credit losses166 Current expected credit losses as of September 30, 2025$2,617 Current expected credit losses as of December 31, 2023$1,680 Net adjustment to reserve for expected credit losses(36)Current expected credit losses as of March 31, 20241,644 Net adjustment to reserve for expected credit losses(37)Current expected credit losses as of June 30, 20241,607 Net adjustment to reserve for expected credit losses259 Current expected credit losses as of September 30, 2024$1,866 The net adjustments to the reserve for expected credit losses are recognized through net income on the Company’s consolidated statements of operations. During the three and nine months ended September 30, 2025, the Company recorded an increase of $166,000 and $585,000, respectively, in its CECL related to its loans receivable, which was recorded in general and administrative expenses in the consolidated statement of operations. During the three and nine months ended September 30, 2024, the Company recorded an