Company: SACH
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001682220-25-000044
Chunk: 49

Company: Sachem Capital Corp.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 49
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710 53,942 Advances from borrowers4,146 4,047 4,146 4,047 Mortgage payable960 1,002 960 1,002 Loans held for investment, net/Loans held for sale, net/Real estate owned, net (Level 3): The Company utilizes third-party appraisals of collateral in determining the fair value of the underlying asset, with unobservable inputs of appraised value adjustments made by management for qualitative factors such as economic conditions and estimated liquidation expenses. The Company estimates liquidation as a selling cost percentage in connection with the asset, which typically ranges from 1-8%. 

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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

Impact of Fair Value of Available-for-sale Securities on Other Comprehensive IncomeThe following table presents the impact of the Company’s AFS securities - debt securities on its Other Comprehensive Income (“OCI”) for the three and six months ended 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,