Company: CMCT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0000908311-25-000096
Chunk: 176

Company: Creative Media & Community Trust Corp
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 176
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 increase of $259,000 and $186,000, respectively, in its CECL related to its loan receivable, which is recorded in general and administrative expenses in the consolidated statement of operations.  Risk RatingsAs further described in Note 2 - Basis of Presentation and Summary of Significant Accounting Policies, the Company evaluates its loans receivable portfolio on a quarterly basis. Each quarter, the Company assesses the risk factors of each loan and assigns a risk rating based on several factors. Factors considered in the assessment include, but are not limited to, loan and credit structure, current LTV ratio, debt yield, collateral performance and the quality and condition of the sponsor, borrower and guarantor(s). Loans are rated “1” (less risk) through “5” (greater risk), which ratings are defined in Note 2 - Basis of Presentation and Summary of Significant Accounting Policies.

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

The Company’s primary credit quality indicator is its risk ratings, which are further discussed above. The following table presents the net book value of the Company’s loans receivable portfolio as of September 30, 2025 by year of origination, loan type and risk rating (dollar amounts in thousands):Amortized Cost of Loans Receivable by Year of OriginationAs of September 30, 2025Number of Loans20252024202320222021Prior TotalLoans by internal risk rating:182$2,628 $3,590 $4,597 $2,799 $2,546 $9,907 $26,067 262589 4,848 4,792 3,129 3,087 5,377 $21,822 32— — — — — 774 $774 43— — 866 718 — 769 $2,353 5—— — — — — — $— Total149$3,217 $8,438 $10,255 $6,646 $5,633 $16,827 $51,016 Plus: SBA 7(a) loans receivable, subject to secured borrowings (1)1,343 Plus: Deferred capitalized costs, net