Company: SACH
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001682220-25-000070
Chunk: 17

Company: Sachem Capital Corp.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 provisions of the 2025 Needham Credit Facility.On June 11, 2025, Sachem Capital Corporation Holdings, LLC ("Holdings"), an indirect, wholly-owned subsidiary of the Company, consummated a private placement of $100.0 million aggregate principal amount of Senior Secured Notes due June 11, 2030 (the "Secured Notes") to various institutional investors under a Note Purchase and Guaranty Agreement (the "Agreement"). See Note 11 - Secured Notes Payable. Holdings was formed for the sole purpose of acting as the issuer of the Secured Notes.Holdings is a VIE under the guidance of FASB ASC 810-10, Consolidation, as it was established with insufficient equity at risk and does not have independent operations apart from the Company. The Company has determined that it is the primary beneficiary of Holdings because it has both (i) the power to direct the activities that most significantly impact Holdings’ economic performance and (ii) the obligation to absorb losses or the right to receive benefits that could be significant to Holdings, primarily through its role as the guarantor of the Secured Notes and through its ability to direct all operational and financing decisions. Accordingly, Holdings has been consolidated in the Company’s condensed consolidated financial statements.As of September 30, 2025, Holdings had total assets of $206.8 million and total liabilities of $92.6 million, consisting primarily of collateralized mortgage loans and indebtedness evidenced by the Secured Notes. The assets of Holdings can only be used to settle obligations of Holdings and are not available to the Company or its creditors.

3.    Fair Value Measurement

The following table presents assets and liabilities measured at fair value on a recurring basis:Fair Value Measurement(in thousands)September 30, 2025December 31, 2024Level 1Investment securities$1,429 $1,517 Level 3Loans held for sale, net8,797 10,970 The following table illustrates assets and liabilities measured at fair value on a nonrecurring basis:Fair Value Measurement(in thousands)September 30, 2025December 31, 2024Level 3Individually evaluated loans, net of allowance for credit losses$77,619 $80,757 Real estate owned, net18,912 18,574 There were no nonrecurring fair value adjustments to the above assets for the nine months ended September 30, 2025.

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