Company: CMCT
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000908311-25-000038
Chunk: 148

Company: Creative Media & Community Trust Corp
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 8
Chunk 148
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31, 2025, the Company recorded an increase of $39,000 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 months ended March 31, 2024, the Company recorded a decrease of $36,000 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 STATEMENTSMarch 31, 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 March 31, 2025 by year of origination, loan type and risk rating (dollar amounts in thousands):Amortized Cost of Loans Receivable by Year of OriginationAs of March 31, 2025Number of Loans20252024202320222021Prior TotalLoans by internal risk rating:196$965 $5,686 $5,150 $3,355 $3,884 $11,504 $30,544 258— 2,753 4,255 4,910 2,254 5,996 $20,168 31— — — — 435 — $435 42— — 904 — — 478 $1,382 5—— — — — — — — Total157$965 $8,439 $10,309 $8,265 $6