Company: SACH
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001682220-25-000044
Chunk: 19

Company: Sachem Capital Corp.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 19
---
 June 30, 2025 and 2024:Three Months EndedSix Months EndedJune 30,June 30,2025202420252024(in thousands)(in thousands)OCI from AFS securities – debt securities:Unrealized gain on debt securities at beginning of period$— $191 $— $316 Reversal of losses from unrealized to realized— (65)— (65)Unrealized holding losses on AFS securities— (126)— (251)Change in OCI from AFS debt securities— (191)— (316)Balance at end of period$— $— $— $— As of June 30, 2025 and December 31, 2024, the Company held no debt securities.

4.    Loans and Allowance for Credit Losses

Loans include loans held for investment that are accounted for at amortized cost net of allowance for credit losses and loans held for sale that are accounted for at the lower of cost or market net of a valuation allowance. The classification for a loan is based on management’s strategy for the loan.Loans held for investmentAs of June 30, 2025 and December 31, 2024, the Company had 135 and 157 loans held for investment, respectively.As of June 30, 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