Company: SACH
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001682220-25-000044
Chunk: 50

Company: Sachem Capital Corp.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 50
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2025 and December 31, 2024, the Company had direct reserves on outstanding principal for loans held for investment of $11.9 million and $13.3 million, respectively.Loans held for saleThe Company offers mortgage notes receivable to be sold in real estate capital markets. The Company does not originate loans with the intent to designate them as loans held for sale. Nevertheless, as of June 30, 2025, the Company had designated seven loans as held for sale. These seven loans had a gross outstanding principal balance of $9.4 million and an aggregate valuation allowance of $0.5 million based on the lower of cost or market value. As of December 31, 2024, the Company had designated eleven loans as held for sale. These eleven loans had a gross outstanding principal balance of $15.9 million and an aggregate valuation allowance of $4.9 million based on the lower of cost or market value. As of both June 30, 2025 and December 31, 2024, such loans were on non-accrual status and pending foreclosure. The below table represents the Company's loans held for sale as of June 30, 2025:Balance as of December 31, 2024Transfers inChange in valuation allowanceTransfers out, netBalance as of June 30, 2025(in thousands)Loans held for sale, net$10,970 $— $1,047 $(3,187)$8,830 Total loans held for sale, net$10,970 $— $1,047 $(3,187)$8,830 

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Table of ContentsSACHEM CAPITAL CORP.NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTSFOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

Loan portfolioAs of June 30, 2025 and December 31, 2024, loans held for investment on non-accrual status had an outstanding principal balance of $119.6 million and $87.0 million, respectively. The non-accrual loans are inclusive of loans pending foreclosure and loans held for sale. The below table summarizes the Company’s loan portfolio by the past due status:Loans held for investment(in thousands)Current30-59 days past due60-89 days past dueGreater than 90 daysTotalAs of June 30, 2025$