Company: SACH
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001682220-25-000070
Chunk: 79

Company: Sachem Capital Corp.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 79
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 Consolidated Balance Sheets with expanded disclosures in the notes to our condensed consolidated financial statements. The change in the balances during the reporting period are recorded in our Condensed Consolidated Statements of Operations under the provision for credit losses.

Loans held for sale

Loans are classified as held for sale if there is an intent to sell in the near-term. These loans are recorded at the lower of amortized cost or fair value. If the fair value of a loan is determined to be less than its amortized cost, a non-recurring fair value adjustment will be recorded through a valuation allowance. When a loan is transferred to the held for sale category, any previously recorded allowance for credit losses is reversed in the provision for credit losses related to loans and the loan is recorded at its amortized cost basis. If the amortized cost basis exceeds the loan’s fair value at the date of transfer, a valuation allowance equal to the difference between amortized cost basis and fair value is recorded.

Real Estate Owned (“REO”)

REO acquired through foreclosure is initially measured at fair value and is thereafter subject to an ongoing impairment analysis. After an REO acquisition, events or circumstances may occur that result in a material and sustained decrease in the cash flows generated from the property or other market indicators, including listing data, may signal a decline in the liquidation value. REO is evaluated for recoverability when impairment indicators are identified. Any impairment losses or recoveries are included in the Condensed Consolidated Statements of Operations.

Our Loan Portfolio

The following table presents certain information regarding our real estate lending activities for the three and nine months ended September 30, 2025:

Three Months Ended September 30, 2025Nine Months Ended September 30, 2025(in thousands, except number of loans)Loans disbursed$44,657 $125,609 Loans repaid$40,651 $112,045 Principal of loans transferred to real estate owned$10,887 $17,185 Number of loans transferred to real estate owned610As of September 30, 2025As of December 31, 2024(in thousands, except number of loans and weighted averages)Number of loans held for investment outstanding119157Gross principal amount of loans held for investment$375,220 $376,991 Weighted average contractual interest rate(1)13.21 %12.53 %Weighted average term to maturity (in months) (2)64

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