Company: CMCT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0000908311-25-000096
Chunk: 200

Company: Creative Media & Community Trust Corp
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 200
---
 - 17.50%SBA 7(a) loans receivable, subject to secured borrowings10.00% - 10.00%5.00% - 17.50%10.25% - 10.25%5.00% - 17.50%Derivative Instruments — The Company’s derivative instruments are comprised of two interest rate caps. All derivative instruments are carried at fair value and are valued using Level 2 inputs. The fair value of these instruments is 

31

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

determined using interest rate market pricing models. In addition, credit valuation adjustments are incorporated into the fair values to account for the Company’s potential nonperformance risk and the performance risk of the respective counterparties. Other Financial Instruments—The carrying amounts of the Company’s cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued expenses approximate their fair values due to their short-term maturities at September 30, 2025 and December 31, 2024. Due to the short-term maturities of these instruments, Level 1 inputs are utilized to estimate the fair value of these financial instruments. The estimated fair values of those financial instruments which are not recorded at fair value on a recurring basis on the Company’s consolidated balance sheets are as follows (dollar amounts in thousands): September 30, 2025December 31, 2024  CarryingAmountEstimatedFair ValueCarryingAmountEstimatedFair ValueLevelAssets: SBA 7(a) loans receivable, subject to credit risk$21,447 $21,940 $18,850 $18,994 3 SBA 7(a) loans receivable, subject to loan-backed notes$27,935 $30,857 $34,452 $37,657 3 SBA 7(a) loans receivable, subject to secured borrowings$1,343 $1,343 $1,383 $1,383 3 SBA 7(a) loans receivable, held for sale$792 $823 $1,525 $1,600 3 Liabilities: Mortgages payable (1)$268,403 $233,934 $269