# EDGAR Filing Document

**Accession Number:** 0000944130
**File Stem:** 0000944130-26-000009
**Filing Date:** 2026-3
**Character Count:** 344887
**Document Hash:** 15d0e4bf9e6ec5d539a61dc67ec22737
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000944130-26-000009.hdr.sgml**: 20260331

**ACCESSION NUMBER**: 0000944130-26-000009

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 119

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260331

**DATE AS OF CHANGE**: 20260331

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** MINISTRY PARTNERS INVESTMENT COMPANY, LLC
- **CENTRAL INDEX KEY:** 0000944130
- **STANDARD INDUSTRIAL CLASSIFICATION:** FINANCE SERVICES [6199]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 263959348
- **STATE OF INCORPORATION:** CA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 333-04028-LA
- **FILM NUMBER:** 26820870

**BUSINESS ADDRESS:**
- **STREET 1:** 1 POINTE DR., SUITE 205
- **CITY:** BREA
- **STATE:** CA
- **ZIP:** 92821
- **BUSINESS PHONE:** (714) 671-5720

**MAIL ADDRESS:**
- **STREET 1:** 1 POINTE DR., SUITE 205
- **CITY:** BREA
- **STATE:** CA
- **ZIP:** 92821

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MINISTRY PARTNERS INVESTMENT CORP
- **DATE OF NAME CHANGE:** 19960506

?xml version='1.0' encoding='ASCII'? MINISTRY PARTNERS INVESTMENT COMPANY, LLC_December 31, 2025

## **Table of Contents**

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-K**

**(Mark One)**

**☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the fiscal year ended December 31, 2025

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the transition period from _____to_____

Commission file number: 333-4028-LA

**MINISTRY PARTNERS INVESTMENT COMPANY, LLC**

(Exact name of small business issuer in its charter)

---

| | |
|:---|:---|
| **CALIFORNIA** | **26-3959348** |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

---

---

| | |
|:---|:---|
| **1 Pointe Drive, Brea, CA 92821** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**92821** |
| (Address of principal executive offices) | (Zip Code) |
| **Issuer's telephone number:** | **(800) 753-6742** |
| **Securities registered under 12(b) of the Exchange Act:** |  |
| **Securities registered under 12(g) of the Exchange Act:** |  |

---

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ **No ☑**.

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ **No ☑**.

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. **Yes ☑** No ☐.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit). **Yes ☑** No ☐.

Indicate by check mark whether registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Large accelerated<br>filer ☐ | Accelerated<br>filer ☐ | **Non-acceleratedfiler** **☑** | Emerging Growth<br>Company ☐ | **Smaller reporting companyfiler ☑** |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revise accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. Yes ☐ **No ☑**.

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ **No ☑**.

As of May 4, 2017 (the last date any sale or exchange was made of our Class A Common Units), the aggregate market value of the registrant's Class A Common Units held by non-affiliates was estimated to have no value. As of June 29, 2018 (the last date any sale or exchange was made of our Series A Preferred Units), the market value of the Series A Preferred Units was estimated at $67.50 per unit or $7,904,250. The registrant has sold no Class A Common Units within the past sixty days and there is no public market value for the registrant's Class A Common Units. The number of Class A Common Units outstanding, as of December 31, 2025, was 146,522.

**DOCUMENTS INCORPORATED BY REFERENCE: None**

------

### MINISTRY PARTNERS INVESTMENT COMPANY, LLC

### FORM 10-K

### **TABLE OF CONTENTS**

---

| | | | |
|:---|:---|:---|:---|
|  |  |  | **Page No.** |
| [Part I](#OURCOMPANY_887874) |  |  |  |
|  | [Item 1.](#OURCOMPANY_887874) | [Business](#OURCOMPANY_887874) | 3 |
|  | [Item 1A.](#ITEM1ARISKFACTORS_926843) | [Risk Factors](#ITEM1ARISKFACTORS_926843) | 20 |
|  | [Item 1B.](#ITEM1BUNRESOLVEDSTAFFCOMMENTS_374401) | [Unresolved Staff Comments](#ITEM1BUNRESOLVEDSTAFFCOMMENTS_374401) | 36 |
|  | [Item 1C](#ITEM1BCYBERSECURITY). | [Cybersecurity](#ITEM1BCYBERSECURITY) | 36 |
|  | [Item 2.](#ITEM2PROPERTIES_772513) | [Properties](#ITEM2PROPERTIES_772513) | 37 |
|  | [Item 3.](#ITEM3LEGALPROCEEDINGS_848531) | [Legal Proceedings](#ITEM3LEGALPROCEEDINGS_848531) | 37 |
|  | [Item 4.](#ITEM4MINESAFETYDISCLOSURES_375727) | [Mine Safety Disclosures](#ITEM4MINESAFETYDISCLOSURES_375727) | 38 |
| [Part II](#PARTII_667869) |  |  |  |
|  | [Item 5.](#ITEM5MARKETFOROURCOMMONEQUITYRELATEDMEMB) | [Market for our Common Equity, Related Member Matters and Issuer Purchases of Equity Securities](#ITEM5MARKETFOROURCOMMONEQUITYRELATEDMEMB) | 39 |
|  | [Item 6.](#ITEM6SELECTEDFINANCIALDATA_80639) | [[Reserved](#ITEM6SELECTEDFINANCIALDATA_80639)] | 40 |
|  | [Item 7.](#ITEM7MANAGEMENTSDISCUSSIONANDANALYSISOFF) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#ITEM7MANAGEMENTSDISCUSSIONANDANALYSISOFF) | 41 |
|  | [Item 7A.](#ITEM7AQUANTITATIVEMARKETRISK) | [Quantitative and Qualitative Disclosures About Market Risk](#ITEM7AQUANTITATIVEMARKETRISK) | 62 |
|  | [Item 8.](#ITEM8FINANCIALSTATEMENTSANDSUPPLEMENTARY) | [Financial Statements and Supplementary Data](#ITEM8FINANCIALSTATEMENTSANDSUPPLEMENTARY) | 63 – F-59 |
|  | [Item 9.](#ITEM9CHANGESINANDDISAGREEMENTSWITHACCOUN) | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#ITEM9CHANGESINANDDISAGREEMENTSWITHACCOUN) | 64 |
|  | [Item 9A.](#ITEM9ACONTROLSANDPROCEDURES_351162) | [Controls and Procedures](#ITEM9ACONTROLSANDPROCEDURES_351162) | 64 |
|  | [Item 9B.](#ITEM9BOTHERINFORMATION_491707) | [Other Information](#ITEM9BOTHERINFORMATION_491707) | 65 |
|  | [Item 9C.](#ITEM9CFOREIGNJURIS) | [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#ITEM9CFOREIGNJURIS) | 65 |
| [Part III](#PARTIII_507555) |  |  |  |
|  | [Item 10.](#ITEM10MANAGERSANDEXECUTIVEOFFICERSOFTHER) | [Managers and Executive Officers and Corporate Governance](#ITEM10MANAGERSANDEXECUTIVEOFFICERSOFTHER) | 66 |
|  | [Item 11.](#ITEM11EXECUTIVEANDBOARDOFMANAGERCOMPENSA) | [Executive Compensation](#ITEM11EXECUTIVEANDBOARDOFMANAGERCOMPENSA) | 73 |
|  | [Item 12.](#ITEM12SECURITYOWNERSHIPOFCERTAINBENEFICI) | [Security Ownership of Certain Beneficial Owners and Management and Related Member Matters](#ITEM12SECURITYOWNERSHIPOFCERTAINBENEFICI) | 74 |
|  | [Item 13.](#ITEM13CERTAINRELATIONSHIPSANDRELATEDTRAN) | [Certain Relationships and Related Transactions, and Director Independence](#ITEM13CERTAINRELATIONSHIPSANDRELATEDTRAN) | 75 |
|  | [Item 14.](#ITEM14PRINCIPALACCOUNTANTFEESANDSERVICES) | [Principal Accounting Fees and Services](#ITEM14PRINCIPALACCOUNTANTFEESANDSERVICES) | 76 |
| [Part IV](#ITEM15EXHIBITS_30385) |  |  |  |
|  | [Item 15.](#ITEM15EXHIBITS_30385) | [Exhibits and Financial Statements Schedules](#ITEM15EXHIBITS_30385) | 77 |
|  | [Item 16](#ITEM16FORM10KSUMMARY_858910)  | [Form 10-K Summary](#ITEM16FORM10KSUMMARY_858910) | 77 |
| [SIGNATURES](#SIGNATURES_128510) | [SIGNATURES](#SIGNATURES_128510) |  | 78 |

---

## **Table of Contents**
**Explanatory Note for Purposes of the "Safe Harbor Provisions" of Section 21E of the Securities Exchange Act of 1934, as amended**

Certain statements in this 2025 10-K Report ("**Report**"), other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are included with respect to, among other things, our current business plan, core strategy and portfolio management. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which may cause actual results or outcomes to differ materially from those contained in the forward-looking statements. Important factors that we believe might cause such differences are discussed in the section entitled, "Risk Factors" in Part I, Item 1A of this Form 10-K or otherwise accompany the forward-looking statements contained in this Form 10-K. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. In assessing all forward-looking statements, readers are urged to read carefully all cautionary statements contained in this Form 10-K.

![Graphic](mpic-20251231x10k001.jpg)

**OUR COMPANY**

#### Contact Information

---

| | |
|:---|:---|
| Location of principal office | 1 Pointe Drive, Suite 205, Brea, California 92821 |
| Telephone number | (800) 753-6772 |
| Website address | **www.ministrypartners.org**<br>The Company's annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports are available free of charge on the Company's website at **www.ministrypartners.org** as soon as reasonably practicable after such material is electronically filed with, or furnished to, the U.S. Securities and Exchange Commission.<br>|

---

Throughout this document, we refer to Ministry Partners Investment Company, LLC and its subsidiaries as "the Company," "we," "us," or "our."

### Our Identity and History

#### Purpose and Mission
We are a financial services company whose mission is to strengthen Christian stewardship by providing financial products and services to organizations, businesses, and individuals.

## **Table of Contents**
We serve churches, ministries, individuals, businesses, and other financial institutions. We provide our clients with high quality advice based upon sound biblical and business principles through our investment advisory, insurance agency, broker-dealer, church financing, or servicing operations.

#### Organization
We are a credit union service organization (CUSO) owned by 11 credit unions and organized as a California limited liability company. We commenced operations in 1991.

#### Our Subsidiaries:
● Ministry Partners Securities, LLC. ("MP Securities");

● Ministry Partners for Christ, Inc. ("MPC");

● Ministry Partners Funding, LLC. ("MPF"); and

● MP Realty Services, Inc. ("MP Realty")

MP Securities is a Delaware limited liability company we formed on April 26, 2010. We began conducting business operations through MP Securities in 2012. MP Securities provides investment advisory, insurance, and financial planning solutions for individuals, businesses, and faith-based organizations. MP Securities also serves as the selling agent for the Company's public and private placement debt certificates.

MPC is a not-for-profit corporation formed and organized under Delaware law. We founded MPC in order to make charitable grants to Christian organizations, and provide consulting, and financial expertise to aid evangelical Christian ministries. The Internal Revenue Service has granted MPC tax-exempt status under Section 501(c)(3) of the Internal Revenue Code.

MPF serves as the custodian of assets pledged to investors in our secured investment debt certificates. As of December 31, 2025 and 2024, we have no secured investment debt certificates outstanding.

We organized MP Realty to provide loan brokerage and other real estate services to churches and ministries. MP Realty has conducted limited operations since its launch.

#### Our Competition

#### Investment advisory, broker-dealer, insurance, and financial planning services
There are many mainstream financial services organizations that serve the faith-based market segment throughout the United States. Most of the competitors in this institutional

## **Table of Contents**
market segment include banks, credit unions, denominational investment funds, as well as larger investment and insurance organizations. However, the overall size of the market segment provides ample opportunities for quality firms with specialized knowledge of the governance surrounding churches and ministries to effectively provide and expand the services we offer. We also serve the retail marketplace throughout the United States. While the retail market segment has large national competitors as well as local investment advisors that offer alternative options, MP Securities' comprehensive approach to offering investment and insurance advice with a missional purpose of strengthening Christian stewardship of financial resources enables us to provide services and products to an expanding market of potential clients.

#### The religious loan market segment
This segment has grown since our launch in 1991, and the demand for ministry loans originated and serviced by niche lenders to churches and ministries has continued to exceed available lending and financing sources for this sector. The availability of lenders serving this market has been unpredictable as larger financial institutions expand, contract, or vacate this niche market during periods of fluctuating demand and changing market conditions. We have specialized in helping these organizations since we began operations in 1991 and believe that the lack of predictable financing sources for evangelical Christian churches and organizations enables us to serve ministries that otherwise may not be able to obtain cost-effective mortgage loans.

Although the demand for church financing is both broad and fragmented, no one lender has a dominant competitive position in the market. We compete with church bond financing companies, banks, credit unions, denominational loan funds, and other financial institutions to service this market. Many of these entities have greater marketing resources, extensive networks of offices, larger staffs, and lower cost of operations due to their size. However, we believe we have developed an efficient, effective, and economical operation that (i) specializes in identifying and creating a diversified portfolio of church mortgage loans that we or other credit unions originate and (ii) preserves our capital base and generates consistent income for payments on our debt obligations and generates investment returns for our equity investors.

We rely upon the extensive experience of our officers, management team, and Board of Managers in working with ministry related financing transactions, loan origination, and investment in churches, schools, ministries, and non-profit organizations.

## **Table of Contents**

### Our Principal Business and Markets

### Overview
We serve churches, ministries, individuals, businesses, and financial institutions through two primary business segments. One is our investment advisory practice, broker-dealer firm, and insurance agency and the other consists of our ministry and business lending group. Within these segments, we offer a wide range of products and services for investors, borrowers, ministries, businesses, and individuals. The wide range of products and services has enabled the Company to generate revenue from multiple product lines, which we believe creates a more resilient business model. Our business plan seeks to grow our revenue streams as well as invest in new revenue sources from our two primary business segments.

We generate our revenue primarily from the following sources:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• interest income earned on our loan and cash investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fee and/or commission income earned from the sale of securities, insurance, and investment products by our wholly owned broker-dealer firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fees received for performing investment advisory services for our clients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fee income earned from originating and servicing our loan investments; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• gains realized on the sale of loans and loan participation interests to financial institutions.

The chart below summarizes the breakdown of these revenue sources for the year ended December 31, 2025:

## **Table of Contents**
![Graphic](mpic-20251231x10k002.jpg)

### Investment Advisory, Broker-Dealer, Insurance, and Financial Planning Solutions Segment
We provide investment advisory, broker-dealer, insurance, and financial planning solutions for individuals and businesses, as well as churches and ministries. We provide these investment products and services through our wholly owned broker-dealer, MP Securities, which serves as an investment advisory and broker-dealer firm with access to mainstream investment platforms that offer high quality products and services. MP Securities serves its clients through a comprehensive approach based upon identifying the client's needs and objectives. This financial planning process considers all options available to our clients as we act in their best interest to meet our fiduciary duty of care.

For individuals, organizations, and businesses, our mission is to strengthen their stewardship of personal wealth through biblically based financial and legacy planning, ethically responsible investment and insurance advice. For these clients the Company provides planning for retirement, college funding, insurance, inheritance, and tax management.

For our church and ministry clients, through MP Securities, we strengthen their stewardship of resources through prudent treasury management services, ethically responsible investments, sound employee benefits, and risk planning.

MP Securities offers its insurance products and services through our California insurance agency to help protect clients from unexpected life events. MP Securities also offers life, disability, long-term care, fixed, variable, and indexed annuities to its retail and

## **Table of Contents**
institutional clients. With respect to the annuity products available through MP Securities, many of our clients use annuity products that mitigate risk through income guarantees. In all cases, MP Securities and its advisors have an obligation to act in the best interest of its clients.

The table below shows the breakout of MP Securities' assets under management of $234.3 million as of December 31, 2025 (dollars in thousands):

![Graphic](mpic-20251231x10k003.jpg)

MP Securities keeps a clearing firm relationship with Royal Bank of Canada Dain Rauscher ("RBC Dain"), which provides additional investment platform options for our clientele. As a non-carrying broker-dealer, MP Securities opens brokerage accounts for its customers through its clearing firm agreement with RBC Dain.

MP Securities is a registered broker-dealer firm under Section 15 of the Securities Exchange Act of 1934 and a member of the Financial Industry Regulatory Authority ("FINRA") and the Securities Investor Protection Corporation ("SIPC"). In addition, MP Securities holds a resident license from the California Department of Insurance to act as an Insurance Producer under the name Ministry Partners Insurance Agency, LLC.

MP Securities also serves financial institutions by providing securities brokerage services to credit unions, CUSOs, and the customers and institutions it serves. It also acts as a selling agent for the Company's debt certificates offered through both public and private note offerings.

The SEC, FINRA, California's Department of Financial Protection and Innovation ("DFPI"), and the California Department of Insurance all directly regulate MP Securities due to its broad offering of products and professional services. In addition, state insurance or securities divisions have granted MP Securities a license to do business in every state in which we offer services. As of December 31, 2025, MP Securities was licensed to serve as an insurance broker in 16 states and offers investments in 26 states.

### Ministry and Business Loan Financing Segment

#### Overview
We help evangelical Christian churches and organizations by providing financing for the acquisition, development, and/or renovation of churches or church-related properties and provide investors the opportunity to participate in funding those projects. We typically secure these loans by real property owned by evangelical churches or church-related organizations such as Christian schools and ministries. As of December 31, 2025, real estate secured 99.9% of the loans in our portfolio. We also invest in for-profit commercial and business loans to entities owned and controlled by Christians. Currently, we conduct all our business operations in California. However, we own loan interests in 29 different states, including the District of Columbia.

We acquire loans either through originating loans internally or buying loans or loan participation interests from other financial institutions. When we originate a loan, we rely on our own underwriting capabilities and standards. For loans that we buy, we apply our internally developed underwriting criteria and loan acquisition policies and review the underwriting procedures carried out by the financial institution that is selling the loan or participation interest.

### Funding Our Operations
We utilize three primary on-balance sheet sources to finance our church and ministry loan investments: (i) investor debt certificates; (ii) borrowings from financial institutions; and (iii) capital investments of our equity members. A significant portion of our loan investments is funded through the sale of debt certificates to new and repeat investors, primarily targeting individuals, businesses, churches, and ministries within the Christian community. Additionally, we have financed our loan investments through borrowings from financial institutions and, periodically, by selling participation interests in our loans to other financial institutions. Furthermore, the Company's owners have made substantial capital investments to support the balance sheet alongside ongoing earnings.

In recent years, we have reduced our reliance on borrowings from financial institutions, instead focusing on increasing funding through the sale of investor securities and member equity.

## **Table of Contents**
The chart below illustrates the evolution of our financing strategy for investments and business operations (dollars in thousands):

![Graphic](mpic-20251231x10k004.jpg)

#### Sale of Loan Participations as a Funding Source
The table below shows the activity in our participation sold portfolio (dollars in thousands).

---

| | | |
|:---|:---|:---|
|  | **As of and for the years ended** | **As of and for the years ended** |
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| Participation loan interests sold by the Company during the year | $1100 | $8370 |
| Total participation interests sold and serviced by the Company | 29388 | 32475 |
| Servicing income | 117 | 126 |
| **Servicing Assets** |  |  |
| Balance, beginning of period | $177 | $98 |
| Additions: |  |  |
| &nbsp;&nbsp;Servicing obligations from sale of loan participations | 33 | 123 |
| Subtractions: |  |  |
| &nbsp;&nbsp;Amortization | (49) | (44) |
| Balance, end of period | $161 | $177 |

---

## **Table of Contents**

#### Human Capital Resources
The Company relies on the experience of its lending, financial services, underwriting, loan servicing skills, and experience of our management team. A substantial number of our employees have extensive experience in the financial services industry. We have staff located in our Brea, Glendora, and Fresno, California offices. As the Company expands the range of services, products, and investment services it offers, the Company will look to find and recruit qualified personnel that will enable the Company to further diversify the services and products it offers and increase its revenues and profitability.

### Effect of Government Regulations on the Business

### General
Because we are a credit union service organization we are subject to the regulations issued by the National Credit Union Administration ("**NCUA**") that apply to CUSOs. As a CUSO, we primarily serve the interests of our credit union equity investors and members of such credit unions.

We are also subject to various laws and regulations that govern:

● credit granting activities;

● establishment of maximum interest rates;

● data privacy standards;

● disclosures to borrowers and investors in our equity securities;

● secured transactions;

● foreclosure, judicial sale, and creditor remedies that are available to a secured lender; and

● the licensure requirements of mortgage lenders, finance lenders, securities brokers, and financial advisers.

As a CUSO, we are limited in the scope of activities we may provide. In addition, our federal credit union equity investors are permitted to invest in or lend to a CUSO only if the CUSO primarily serves credit unions, its membership or the membership of credit unions contracting with the CUSO. While the NCUA lacks direct supervisory authority over our operations, our federal credit union equity owners are subject to regulations which govern the rules and conditions of an investment or loan they make or sell to a CUSO. In addition, state-chartered credit unions must follow their respective state's guidelines which

## **Table of Contents**
govern investments by a state-chartered credit union. California's DFPI regulates several of our equity owners. These credit union owners must follow DFPI regulations that govern the investment in a loan they make to a CUSO.

### Tax Status
Effective with our conversion from a corporate form of organization to a limited liability company organized under the laws of the State of California on December 31, 2008, we have chosen to be treated as a partnership rather than a corporation for U.S. tax law purposes. As a result, profits and losses will flow directly to our equity investors under the provisions of our governing documents. If we fail to qualify as a partnership in any taxable year, we will be subject to federal income tax on our net taxable income at regular corporate tax rates. As a limited liability company organized under California law, we are also subject to an annual franchise fee plus a gross receipts tax on our gross revenues from our California based activities if our gross revenues are in excess of $250 thousand per year.

### Regulation of Mortgage Lenders
We conduct loan originating activities for churches, ministries, faith-based organizations and business owners. Many states regulate the investment in or origination of mortgage loans. Under the California Finance Lender's Law, no lender may engage in the business of providing services as a "finance lender" or "broker" without obtaining a license from the DFPI, unless otherwise exempt under the law. We conduct our commercial lending activities under a California finance lender license.

As a finance lender, we are licensed with the DFPI and file reports from time to time with the DFPI. Accordingly, the DFPI has enforcement authority over our operations as a finance lender, which includes, among other things, the ability to assess civil monetary penalties, issue cease and desist orders and initiate injunctive actions. We also are subject to licensing requirements in other jurisdictions in connection with our mortgage lending activities. Various laws and judicial and administrative decisions may impose requirements and restrictions that govern secured transactions, require specific disclosure to our borrowers and customers, establish collection, foreclosure, and repossession standards and regulate the use and reporting of certain borrower and customer financial information.

As we offer and originate loans outside of the State of California, we need to comply with laws and regulations of those states. The statutes which govern mortgage lending and origination activities vary from state to state. Because these laws are constantly changing, due in part, to the challenge facing the real estate industry and financial institutions from residential lending activities, it is difficult to comprehensively identify, accurately interpret and effectively train our staff with respect to all of these laws and regulations. We intend to

## **Table of Contents**
comply with all applicable laws and regulations wherever we do business and will undertake a best-efforts program to do so, including the engagement of professional consultants, legal counsel, and other experts as deemed necessary by our management.

### Environmental Issues Associated with Real Estate Lending
The Comprehensive Environmental Response, Compensation and Liability Act ("**CERCLA**"), a federal statute, generally imposes strict liability on all prior and current "owners and operators" of sites containing hazardous waste. However, Congress acted to protect secured creditors by providing that the term "owner and operator" excludes a person whose ownership is limited to protecting its security interest in the site. Since the enactment of the CERCLA, this "secured creditor exemption" has been the subject of judicial interpretations which have left open the possibility that lenders could be liable for clean-up costs on contaminated property that they hold as collateral for a loan. To the extent that legal uncertainty exists in this area, all creditors that have made loans secured by properties with potential hazardous waste contamination (such as petroleum contamination) could be subject to liability for clean-up costs, which costs often substantially exceed the value of the collateral property. In addition, state and local environmental laws, ordinances and regulations can also impact the properties underlying our mortgage loan investments. An owner or control party of a site may also be subject to common law claims by third parties based on damages and costs resulting from environmental contamination emanating from a site.

## **Table of Contents**

### Regulation of Financial Services
The financial services industry in the U.S. is subject to extensive regulation under federal and state laws. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 ("Dodd-Frank Act") was enacted on July 21, 2010. The Dodd-Frank Act resulted in sweeping changes in the regulation of financial institutions and created a new Consumer Financial Protection Bureau and Financial Stability Oversight Council with authority to identify institutions and practices that might pose a systemic risk. The Dodd-Frank Act has increased regulation of the financial industry with the intent of better protecting customers of the financial services industry. We believe that the Dodd-Frank Act and regulations adopted thereunder have not had a material impact on our business and operations. U.S. broker dealers are subject to rules and regulations imposed by the SEC, FINRA, other self-regulatory organizations, and state securities administrators covering all aspects of the securities business. Our wholly owned broker-dealer firm, MP Securities, commenced operations in 2012. As a registered broker-dealer under Section 15 of the Securities Exchange Act of 1934 (the "**Exchange Act**"), MP Securities is subject to regulation by the SEC and regulation by state securities administrators in the states in which it conducts its activities.

We have registered MP Securities in the following states, as well as the District of Columbia:

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;Arizona | &nbsp;&nbsp;Idaho | &nbsp;&nbsp;Massachusetts | &nbsp;&nbsp;Ohio | &nbsp;&nbsp;South Carolina |
| &nbsp;&nbsp;California | &nbsp;&nbsp;Illinois | &nbsp;&nbsp;Minnesota | &nbsp;&nbsp;Oklahoma | &nbsp;&nbsp;Tennessee |
| &nbsp;&nbsp;Colorado | &nbsp;&nbsp;Indiana | &nbsp;&nbsp;Missouri | &nbsp;&nbsp;Oregon | &nbsp;&nbsp;Texas |
| &nbsp;&nbsp;Florida | &nbsp;&nbsp;Kansas | &nbsp;&nbsp;Nevada | &nbsp;&nbsp;Pennsylvania | &nbsp;&nbsp;Virginia |
| &nbsp;&nbsp;Georgia | &nbsp;&nbsp;Kentucky | &nbsp;&nbsp;New York | &nbsp;&nbsp;Rhode Island | &nbsp;&nbsp;Washington |

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MP Securities is subject to rules and regulations regarding:

● net capital;

● sales practices;

● public and private securities offerings;

● capital adequacy;

● record keeping and reporting;

● conflicts of interest involving related parties;

● conduct of officers;

● directors and employees;

● qualification and licensing of supervisory and sales personnel;

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● marketing practices; and

● supervisory and oversight of personnel to ensure compliance with securities laws.

MP Securities is also subject to the financial responsibility, net capital, customer protection, record keeping, and notification rule amendments adopted by the SEC on July 30, 2013. Because MP Securities does not carry or hold customer funds or securities and relies upon a clearing firm to conduct these transactions, Rule 17a-5 requires that it file an exemption report as well as reports prepared by an independent public accountant confirming that it meets the exemption provisions. As amended, the net capital rule requires that MP Securities consider in its computation of regulatory net capital any liabilities the Company assumes as its parent entity.

MP Securities is also subject to routine inspections and examinations by the SEC staff under Rule 17(b) of the Exchange Act and the SEC is authorized to review, if requested, the work papers of the broker dealer's independent public accounting firm that conducts the audit. As required by amendments to Rule 17a-5 of the Exchange Act, MP Securities files an annual report with the SEC and FINRA that includes its audited financial statements, supporting schedules and its exemption report as a non-carrying broker-dealer. MP Securities is a member of the SIPC and files a copy of its annual report with SIPC. FINRA, state securities and financial service regulators periodically examine the operations, sales practices and financial condition of MP Securities.

Much of the regulation of broker-dealers in the U.S. has been delegated to self-regulatory organizations, principally FINRA and the securities exchanges. FINRA adopts and amends rules (which are subject to approval by the SEC) for regulating the industry and conducts periodic examinations of member firms. The SEC, FINRA, and state securities administrators may conduct administrative proceedings that can result in censure, cease and desist orders, fine, suspension, or expulsion of a broker-dealer, its officers, or employees. We could incur substantial expenses and reputational damage in connection with a regulatory action initiated by the SEC, FINRA, or state regulator. Certain infractions and violations could also affect our ability to sell our investor notes and finance our business.

As of the date of this Annual Report on Form 10-K, we are responding to and furnishing information to FINRA in connection with a regular FINRA exam that is focusing on our compliance with Regulation BI, due diligence and supervisory obligations when conducting sales activities for our investor notes. We are cooperating with FINRA's examination staff when undertaking this review and have implemented improvements in our practices and procedures for our investor notes program.

Due to our close affiliation with MP Securities, we are subject to related party transaction disclosure issues under federal and state securities laws and rules adopted by FINRA. In particular, related party transactions can raise regulatory concerns:

● in determining whether MP Securities meets its net capital requirements;

● in whether the allocation of costs is fairly treated in any expense sharing arrangements or management services agreements entered into with the Company;

● with regard to compensation paid to sales representatives in selling proprietary securities products offered by the Company; and

● complying with the suitability, know your customer, and fair practices and dealings obligations under federal and state law, and rules imposed by FINRA on broker dealer firms.

MP Securities is also subject to FINRA's review and policies governing disclosure practices when offering proprietary securities products, training its staff to identify and manage conflicts of interest and reporting on significant conflict issues, including the firm's adopted measures to identify and manage conflicts, to the MP Securities Board of Managers and its Chief Executive Officer.

As a broker-dealer firm, MP Securities is subject to regulation regarding:

● sales methods;

● use of advertising materials;

● arrangements with clearing firms or exchanges;

● record keeping;

● regulatory reporting; and

● conduct of managers, officers, employees, and supervision.

To the extent MP Securities solicits orders from customers; it will be subject to additional rules and regulations governing sales practices and suitability rules imposed on member firms.

MP Securities acts as a selling agent for the Company's public and private debt certificates. Due to this role, MP Securities must comply with FINRA's filing requirements for these offerings. We believe that MP Securities has fully complied with its filing obligations as required under applicable FINRA, SEC, and state securities laws.

MP Securities must also maintain minimum net capital pursuant to rules imposed by FINRA. In general, net capital is the net worth of the entity (assets minus liabilities) less any other imposed deductions or other charges. A member firm that fails to maintain the required net capital must cease conducting business. If it does not do so, it may be subject to suspension or revocation of registration by the SEC and suspension or expulsion by FINRA. Under its Membership Agreement entered into with FINRA, MP Securities is required to maintain minimum net capital of the greater of $5,000 or one fifteenth of its aggregate indebtedness. As required by the 2013 amendments adopted by the SEC, MP Securities is required to include any liabilities assumed by the Company unless the Company is able to demonstrate that it has adequate capital to pay such expenses.

### Regulation Best Interest / Fiduciary Standards
On June 5, 2019, the SEC adopted a package of rules and interpretations designed to improve disclosures made to retail investors, assist investors better understand the services offered by investment advisors and broker dealer firms and make informed decisions. Regulation BI established a "best interest" standard of conduct when recommendations are made to a retail customer involving an investment strategy or purchase of a security. Under the Regulation BI rule, the broker-dealer firm and investment adviser must provide the customer with a brief relationship summary known as Form CRS. Regulation BI requires that MP Securities, when making recommendations, act in the best interest of retail customers and place the investor's interests above the financial or other interests of the broker-dealer or sales representative. Regulation BI also establishes a standard of conduct and imposes obligations related to disclosure, duty of care, conflicts of interest and compliance. The SEC, FINRA and state regulators are placing a priority on Regulation BI compliance for broker dealer and financial services firms in their regulatory announcements, policy initiatives and enforcement actions involving broker dealer firms.

On April 20, 2023, the SEC issued a SEC Staff Bulletin entitled "Standards of Conduct for Broker-Dealers and Investment Advisor Care Obligations." In this Staff Bulletin, the SEC focused on the care obligations under Regulation BI for broker dealers and duty of care obligation on investment advisers under the Investment Advisers Act of 1940 which the SEC staff refers to as the "IA Fiduciary Standard." Both Regulation BI and IA Fiduciary Standard focus on three key components:

(i)does the firm or adviser have an understating of the risks, rewards and costs associated with a product, investment strategy account type or transactions being considered;

(ii)does the firm or adviser have a reasonable understanding of the retail investor's investment profile, financial situation, income, needs, assets and debts, marital status, age,

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liquidity needs, investment experience, risk tolerance, investment horizon and financial goals; and

(iii)once the firm or advisor understands and analyzes the first two components, and considers reasonable available alternatives, does the firm or advisor have a reasonable basis to conclude that the recommendation made or advice given is in the retail investor's best interest.

Our subsidiary, MP Securities, reviews and maintains compliance procedures to comply with Regulation BI and the IA Fiduciary Standard and engages compliance professionals to assist in complying with these rules adopted by the SEC, FINRA and particular states that have adopted rules to govern transactions occurring within their respective states. We are monitoring developments in industry compliance practices as well as regulatory initiatives, examinations and enforcement actions undertaken by the SEC, FINRA and state regulators under the Regulation BI standard of conduct. We continue to make improvements in MP Securities' operating and supervisory procedures as needed to address the best interest standard of conduct. The ultimate impact on industry practices and MP Securities of these rules and regulations, however, cannot be known at this time.

### Regulation of Investment Advisers
On July 11, 2013, the State of California granted its approval for MP Securities to provide investment advisory services. As a California registered investment advisory firm, MP Securities is required to develop and maintain compliance procedures, record keeping procedures, comply with custody rules, marketing and disclosure obligations. MP Securities is also subject to the Investment Advisers Act of 1940, as amended, and related regulations. The SEC is authorized to institute proceedings and impose fines and sanctions for violation of the Investment Advisers Act. In addition to ensuring MP Securities' compliance with federal and state laws governing its activities as a California registered investment advisory firm, the California DFPI requires that representatives hired by MP Securities meet certain qualification requirements, including complying with certain testing requirements and examinations.

Our failure to comply with the requirements of the Investment Advisers Act, related SEC rules or regulations and provisions of the California Corporations Code and Code of Regulations could have a material effect on us. We believe we are in full compliance in all material aspects with SEC requirements and California laws and regulations. As MP Securities hires new registered investment advisers, it will be required to monitor its compliance with SEC and DFPI regulations.

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#### Privacy Standards
The Gramm-Leach-Bliley Financial Services Modernization Act of 1999 ("**GLBA"**) modernized the financial services industry by establishing a comprehensive framework to permit affiliations among commercial banks, insurance companies, securities firms and other financial service providers. We are subject to regulations implementing the privacy protection provisions of the GLBA. These regulations require us to disclose our privacy policy, including identifying with whom we share "non-public personal information" to our investors and borrowers at the time of establishing the customer relationship and annually thereafter. The State of California's Financial Information Privacy Act also regulates consumer's rights under California law to restrict the sharing of financial data. The California Consumer Privacy Act of 2018, as amended, also has added protections that are designed to enable consumers to protect third party access to their personal information. In recent years, there has been a heightened legislative and regulatory focus on data security, including requiring customer notification in case of a data breach. The SEC also requires that public reporting entities report cybersecurity incidents on a Current Report on Form 8-K as an additional reporting obligation within four days of management's determination that the incident is material. Congress has held several hearings in the subject and legislation has been introduced which would impose more rigorous requirements for data security and response to data breaches. As MP Securities expands its investment advisory business operations, it will also need to monitor regulatory initiatives promulgated under the Dodd-Frank Act that affect investment advisers.

### Certain Legal Aspects of Our Mortgage Loan Investments

### Description of Legal Aspects
The mortgage loans are in the form of promissory notes secured by deeds of trust or mortgages on real property or other assets. In general, these notes require the borrower to pay principal and interest on specified dates. The deed of trust or mortgage securing the mortgage loan generally provides that in the event the borrower fails to timely pay principal or interest on the note or fails to satisfy any other obligations under the note, such as the failure to maintain the property in good repair, we may declare the entire balance of principal and interest under the note then due and payable.

### Debtor Protection Statutes
In the event the principal and interest is not paid within a specified period, we must first attempt to collect on the mortgage loan by foreclosing on the real property or other asset securing the loan. In general, California law will not allow us to disregard the security and to proceed directly against the maker on the mortgage loan note. We must foreclose on the property under the deed of trust. Our ability to recover the value of the mortgage loan

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under such circumstances is affected by certain legal procedures and rights. Mortgage loans secured by real property are subject to the laws of the state in which the property is located and as applicable, federal law, including federal bankruptcy laws.

California, as most states, imposes statutory prohibitions which limit the remedies of a secured lender. A secured lender is limited in its right to receive a deficiency judgment against the borrower following foreclosure on the secured real property. These statutory prohibitions offer substantial protections to borrowers and effectively require a mortgage lender to look only to the value of the property securing the mortgage loan through a private sale foreclosure.

In addition to the California state laws restricting actions against borrowers, numerous other statutory provisions, including the federal bankruptcy laws, afford additional relief to debtors which may interface with or affect the ability of a secured lender to realize the value of its mortgage loan in the event of a default.

Under the Internal Revenue Code of 1986, as amended, certain liens in favor of the Internal Revenue Service for tax payments are provided priority over existing mortgage loans. Also, mortgage lenders are subject to other statutory and administrative requirements under various laws and regulations regarding the origination and servicing of mortgage loans, including laws and regulations governing federal and state consumer protection, truth-in-lending laws, the Federal Real Estate Settlement Procedures Act, the Equal Credit Opportunity Act, the Fair Credit Billing Act, the Fair Credit Reporting Act, and related statutes and regulations.

As a result of these debtor protection laws, we could sustain a loss because of any of the foregoing federal or state laws and regulations restricting and/or regulating the origination and servicing of mortgage loans. Also, these laws and regulations are subject to continual change and evolution, and it is always possible that inadvertent violations or liabilities may be incurred by reason of one or more of these provisions.

**ITEM 1A.** **RISK FACTORS**

Any of the following identified risks, along with other unidentified risks, or risks we believe are immaterial or unlikely, could harm the Company. The risks and uncertainties described below are not the only risks that may have a material, adverse effect on us. Other risks and uncertainties which are not identified below also could adversely affect our business, financial condition, and results of operations. The risks discussed below include forward-looking statements, and our actual results may differ substantially from those discussed in these forward-looking statements. Investors should carefully consider the risks described below in conjunction with the other information in this Form 10-K.

### Risks Related to the Company

#### We may be unable to obtain sufficient capital to meet the financing requirements of our business.
Our ability to finance our operations and repay maturing obligations to our investors and credit facility lenders depends on our ability to raise funds from the sale of our debt certificates. Some of the factors that affect our ability to sell our debt certificates include:

● quality of the mortgage loan and business loan investments we make;

● the profitability of our operations; and

● attracting investors that are motivated by our emphasis on Christian stewardship, financing religious ministries and are willing to accept certain risk factors that accompany an investment in our debt securities.

#### Our growth is dependent on leverage, which may create other risks.
We use responsible leverage, which means borrowing to invest in mortgage assets. This mechanism creates net interest income for the Company. Our Board of Managers has overall responsibility for our financing strategy. Our success is dependent, in part, upon our ability to manage our leverage effectively. Leverage creates an opportunity for increased net income, but at the same time creates risks. For example, leveraging magnifies changes in our net worth. We will incur leverage only when we expect that it will enhance our investment returns. To generate a quick sell on an asset, the asset often sells at a discount. There can be no assurance that we will be able to meet our debt service obligations; and, if we must quickly sell assets to meet our debt service obligations, we risk incurring a loss on some or all those assets. Our management continues to focus on reducing the Company's reliance on leverage by increasing revenue from non-balance sheet sources that do not require leverage, such as our broker-dealer commissions, advisory fees, and loan servicing income.

#### We may be unable to successfully implement our strategy to grow our mortgage loan and non-interest generating segments of our business.
In recent years, we gradually decreased the total amount of mortgage loans on our balance sheet as part of an effort to reduce risk in the portfolio, dispose of or restructure non-performing loans and eliminate our outstanding term-debt through discounted principal payments when a favorable opportunity has arisen. We also implemented a strategy of transitioning to a more diversified financial services company that is focused on Christian stewardship and have transitioned to a technology platform that enhances our borrowers and investors' experience with our operations. To effectively implement this strategy, we will need to increase our investment in technology, streamline our loan origination and

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underwriting process, and become more efficient in carrying out the operations of the Company. We also intend to continue our strategy of offering our financial products and services to our equity owners, strategic partners, and clients. Continuing to grow our business and investment loan portfolio will depend, in part, on our ability to address the needs of our clients, borrowers, investors, and strategic partners by effectively using technology to provide products and services that will enable us to create additional efficiencies in our business and expand the scope of and volume of financial transactions we are able to complete.

#### The loss of our management team or the ability to attract and keep key employees could harm our business.
We are dependent on the industry knowledge, professional skillsets, institutional contacts, and overall financial services experience of our senior management team. We rely on our management team to develop relationships with current and potential clients and strategic business partners. We also rely on our management team to develop new products and services for our clientele, as well as the continued expansion of complimentary lines of business to diversify the Company's value proposition further. We can give no assurances that we will be able to recruit and keep qualified senior managers that will enable us to achieve our core strategic aims and continue to grow our business profitably.

#### Our broker-dealer and investment advisory business depends on fees generated from the distribution of financial products and advisory fees.
One of our strategic goals is to increase non-interest revenues from fees generated from the distribution of financial products, such as managed accounts, mutual funds, and annuity products. Changes in the structure or amount of fees paid by sponsors of these products could directly affect our non-interest revenue. In addition, if these products experience losses or increased investor redemptions, the revenue we earn from these products may decline.

#### The ability to attract and keep qualified financial advisors and associates is critical to MP Securities' continued success.
As we continue to expand our non-interest revenue sources, we will need to expand our team of qualified investment and financial advisors that complement the services we provide to our clients. If we are unable to recruit and keep qualified professionals, and manage succession plans for our senior advisors, we could jeopardize our strategic goal of increasing non-interest income, thereby adversely affecting our net earnings and financial condition.

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**From time to time, we have engaged in transactions with related parties and our policies and procedures on these transactions may be insufficient to address any conflicts of interest that may arise.**

Under our code of business conduct, we have set up procedures for the review, approval, and ratification of transactions that may give rise to a conflict of interest between us and a related party. A related party is any employee, officer, board member, equity owner, trustee, their immediate family members, other businesses under their control, and other related persons. In the ordinary course of our business operations, we have ongoing relationships and engage in transactions with several related entities. This includes transactions with our equity owners. Conflicts of interest are inherent in any transactions involving credit facilities, funds on deposit with, mortgage loans bought, sold, participated, or serviced in our dealings with our equity owners. While the Company believes that it has taken reasonable measures to mitigate any risks, these procedures may not be sufficient to address conflicts of interest that may arise.

### Risks Related to the Financial Services Industry and Financial Markets

#### The deterioration of market conditions could negatively affect our business.
Several factors that we cannot control affect the market in which we operate. These factors can have a potentially significant negative impact on our business. Some of these factors are:

● interest rates and credit spreads;

● the availability of credit, including the price, terms, and conditions under which it can be obtained;

● loan balances relative to the value of the underlying real estate assets;

● default rates on special purpose mortgage loans for churches and ministries, and the amount of the related losses;

● the actual and perceived state of the real estate markets for church properties and special use facilities;

● deterioration of local, global, and national economic conditions including epidemics or pandemics that may affect the local or global economy; or

● unemployment rates.

#### External Risks and Uncertainties could harm our operations.
The long-term impact of external factors such as the COVID-19 pandemic, Russia's invasion of Ukraine, conflict in Iran and the Middle East, increased inflation, and global

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supply chain disruptions on our loan investments is still uncertain. Recent military conflict involving Iran, including recent hostilities between Iran and a coalition led by the United States and Israel, has created significant geopolitical uncertainty in the Middle East and globally. The situation remains fluid and could escalate further or broaden geographically, potentially resulting in additional military action, cyberattacks against U.S. or allied businesses, sanctions, trade restrictions, supply chain disruptions, or significant fluctuations in commodity prices and foreign exchange rates. Because the scope, duration, and outcome of the conflict remain uncertain, the ultimate impact on our business, financial condition, and results of operations cannot be predicted and could be material.

These factors have already caused significant disruptions in the U.S. economy, leading to operational changes in churches, Christian schools, ministries, and businesses. Other challenges including geopolitical conflicts and economic uncertainties pose further stress on the economy and consumers. As our business heavily relies on timely loan payments from ministry borrowers, any disruption in giving trends due to these factors could materially affect our liquidity, loan loss reserves, and financial condition.

#### Declining real estate values could harm our operations.
We believe the risks associated with our business are more severe during periods in which an economic slowdown or recession is accompanied by declining real estate values. Declining real estate values often reduce the level of new mortgage loan originations, since borrowers often use increases in the value of their existing properties to support the purchase of, investment in, or renovation of their worship facilities. Borrowers may also have difficulty paying principal and interest on our loans if the real estate economy weakens. Further, declining real estate values significantly increase the likelihood that we will incur losses on our foreclosed assets and on our loans in case of default because the value of our collateral may be insufficient to cover our investment in such assets.

Any sustained period of increased payment delinquencies, foreclosures, or losses could adversely affect both our net interest income from loans as well as our ability to originate, sell, and securitize loans. These events would significantly harm our revenues, results of operations, financial condition, liquidity, and business prospects.

#### The Company is subject to interest rate risk.
Interest rate fluctuations and shifts in the yield curve may cause losses. Our primary interest rate exposures relate to our mortgage loan investments and floating rate debt obligations. Typically, our loan investments have a fixed interest rate with a five-year interest rate adjustment or maturity date. However, some of the borrowing arrangements with our investors use variable interest rates that are indexed to short-term borrowing rates or fixed rates on short-term maturities.

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Changes in interest rates, including changes in expected interest rates or "yield curves," affect our business in multiple ways. Changes in the general level of interest rates can affect our net interest income. Net interest income is the difference between the interest income we earn on our interest-earning assets and the interest expense we incur on our interest-bearing liabilities. Changes in the level of interest rates also can affect, among other things, our ability to originate and acquire mortgages, and the market value of our mortgage investments. In the case of a significant rising interest rate environment, default by our mortgage loan obligors could increase our losses and negatively affect our liquidity and operating results.

Our ability to expand the size of our loan portfolio is dependent on our ability to obtain debt financing at rates that result in a positive net interest income spread. At times we have used borrowing facilities obtained from institutional lenders, but in recent years have relied upon offerings of debt certificates in SEC registered offerings and private placement offerings to fund our mortgage loans investments. Our ability to fund future investments will be severely restricted if spreads on debt financing widen or if availability of credit facilities ceases to exist. In addition, an increase in our borrowing costs could decrease the spread we receive on our mortgage loan investments, which could adversely affect our ability to pay interest and redeem the outstanding debt certificates as they mature. To mitigate our interest rate risks, we have previously and may in the future use interest rate hedging transactions such as interest rate caps and interest rate swaps. We cannot guarantee the results of using these types of instruments to mitigate interest rate risks, and as a result, the volatility of interest rates could result in reduced earnings or losses for us.

In addition, increases in interest rates during the term of a loan may adversely affect a borrower's ability to repay a loan at maturity or to prepay a loan. Our mortgage loans typically have large balloon payments due at maturity. When the loan matures and the balloon payment is due, the borrower must either pay the loan balance or refinance the loan with us or another lender. If interest rates are higher when the loan matures, the borrower's payment on new financing may be higher. The borrower may not be able to afford the higher debt service, hindering its ability to refinance our loan. In addition, the borrower may not be able to refinance the loan because the value of the property has decreased. If a borrower is unable to repay our loan at maturity, we could suffer a loss and we would not be able to reinvest proceeds in assets with higher interest rates. As a result, it could adversely affect our business and profitability.

#### Regulatory compliance failures could adversely affect our reputation, operating business, and core strategic goals.
We rely on publicly offered debt certificates to fund a substantial part of our operations. As a result, we are subject to U.S. securities laws, rules, and regulations promulgated by the SEC and applicable state securities statutes. Our subsidiary, MP Securities, is subject to

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oversight from the SEC, FINRA, the Department of Insurance, California's DFPI, and securities regulators in the states where MP Securities conducts business. To the extent MP Securities engages in securities and insurance-related activities in a particular state, state securities and insurance administrators will have authority over the activities of our broker-dealer affiliated entity. MP Securities is also subject to the Regulation Best Interest standard adopted by the U.S. Securities and Exchange Commission on June 5, 2019, which imposes additional regulatory burdens on broker-dealer firms when making a recommendation to purchase a security to a retail customer.

The regulatory environment for financial advisors and broker-dealer firms, including changes governing the standard of care applicable to investment advice and when sales of our investor notes are recommended for purchase to retail investors, increases the complexity and cost of operating our business. As a registered broker-dealer and FINRA member, MP Securities must maintain registrations under the securities laws in those states in which it conducts business. The North American Securities Administration Association ("**NASAA**") has proposed a model conduct rule for broker-dealers for review by state regulators and possible adoption as a statutory mandate. It remains unclear how and whether regulators, including the SEC, FINRA, DOL, state securities, and financial service regulators may adopt, enforce, and respond to these new standards of conduct. The failure to follow obligations imposed by any regulatory authority binding on our subsidiaries or us or to keep any of the required licenses or permits could result in investigations, sanctions, and reputation damage.

**Risks Related to Our Use of Technology**

#### Our systems may experience a breach in security, which could subject us to increased operating costs as well as litigation and other liabilities.
We rely heavily on communications and information systems to conduct our business, process, send, and store electronic financial information. Any failure, interruption, or breach in the security of these systems could result in failures or disruptions in our critical business systems. The secure transmission of confidential information over the Internet, a technology outage of our or of a third party vendor and other electronic transmission and communication systems we use in our business is essential to keeping customer confidence in our services. Security breaches, computer viruses, acts of vandalism, and developments in computer capabilities could result in a breach or breakdown of the technology we use to protect customer and investor information and transaction data.

While we have policies and procedures designed to prevent or limit the effect of the possible failure, interruption, or security breach of our information systems, there can be no assurance that any such failure, interruption or security breach will not occur or, if they do occur, that they will be adequately addressed. Any breakdown or failures of our systems

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or one we rely upon maintained by a third party vendor could adversely affect our operations. The occurrence of any failure, interruption, or security breach of our information systems could damage our reputation, result in a loss for a borrower, investor, or customer's business, or expose us to civil litigation and possible financial liability.

Our critical business systems may fail due to events out of our control, such as:

● unforeseen catastrophic events;

● cyber-attacks;

● human error;

● changes in operational practices of our system vendors; or

● unforeseen problems met while implementing major new computer systems or upgrades to existing systems.

These events could potentially result in data loss and adversely affect our ability to conduct our business. As of the date of this Report, to our knowledge, we have not experienced any material impacts relating to cyber-attacks or information system security breaches.

#### We rely extensively on electronic storage of data, electronic communications, data processing and third party vendors to effectively operate our business.
We use third party vendors and contractors to prepare loan documentation, provide loan and closing services, title reports and commitments for our mortgage loan investments, electronically submit and store information regarding the Company's loan investments as well as records relating to investments made in our debt securities. Our electronic records include confidential investor information as well as borrower and proprietary information of the ministries, clients and individuals we serve. Loss of data, hardware failure, virus or malware infection, data theft or the inability to access information when needed are risks that could adversely affect our operations.

#### We face cyber security risks and threats that could have a material adverse effect on our operations.
Cyber threats have become a major risk facing financial institutions that rely upon a network infrastructure and computer systems. Despite our reasonable efforts, we may not be able to anticipate all security breaches and we cannot provide any assurance that such perpetrators will not gain access or engage in improper conduct that could adversely affect our operations or information regarding your investment or loan information. Given rapid changes in the platforms, technology and vendor products we rely upon, the Company may be required to make significant investments in financial and human capital to maintain and

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upgrade the capabilities of our systems in order to effectively serve our clients, support regulatory compliance and meet our reporting obligations, retain qualified information technology employees and protect personal protected information of the clients we serve. If we fail to maintain, improve and implement our efforts to efficiently use these third-party vendor systems, our operations, reputation, financial condition and results of operations could be materially and adversely affected.

#### Our communications, data processing and communications systems could be impacted by downtime and service interruption.
We have implemented policies designed to plan for resiliency in the technology systems and networks that we rely upon to conduct our operations. The failure of our financial, accounting, data processing or other operating systems and facilities we rely upon to operate and report data properly could be adversely impacted by connectivity disruptions or otherwise become disabled as a result of events that are wholly or partially beyond our control. Because we rely upon third party service providers and vendors, certain technology and business functions and services, we face the risk of their operational failure. We use only providers and third party vendors we believe to be recognized in the industry as providing quality related services and we have required that these vendors implement reasonable security practices to safeguard any confidential, proprietary or personal information. No assurances can be given, however, that outside hackers or persons or perpetrators will not gain access to such provider systems or personal confidential information or will not engage in improper conduct with respect to such information such as committing identity theft or other illegal or improper activity.

#### Our business requires that we maintain appropriate oversight and organizational control of our technology systems.
We face operational risk if we fail to maintain organizational control, proper oversight of our employees and external third party vendors to record and process transactions and maintain proper reporting controls. We maintain internal controls intended to safeguard and maintain the integrity and accuracy of our operational infrastructure and information. We remain subject, however, to disruptions of our operating technology systems arising from events that our beyond our control.

### Risks Related to Our Mortgage Loan Investments

#### We may need, from time to time, to sell or pledge as security our mortgage loan investments.
The market for church mortgage loans is specialized and therefore not as liquid as for a residential or commercial loan portfolio. As a result, in the event we need additional liquidity we may have difficulty in disposing of our mortgage loan portfolio quickly or at

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all. The amount we would realize is dependent on several factors, including the quality and yield of similar mortgage loans and the prevailing financial market and economic conditions. It is possible that we could realize substantially less than the face amount of our mortgage loans, should we be required to sell the loans or pledge them as collateral for debt. Thus, the amount we could realize for the liquidation of our mortgage loan investments is uncertain and unpredictable.

#### We are subject to risks related to prepayment of mortgage loans held in our portfolio, which may negatively affect our business.
Our borrowers may prepay the principal amount of their mortgage loans at any time. There is intense competition from financial institutions that are looking to make commercial loans at competitive rates to qualified borrowers. If a significant number of borrowers refinance their loans with other lenders, our profitability could be adversely affected.

#### We are subject to the risks associated with loan participations, such as less than full control rights.
We have sold participation interests in loans we have originated and service. We may need the consent of the parties to which we have sold the participation interest to exercise our rights under such loans, including rights with respect to amendment of loan documentation, enforcement proceedings in case of default, and the institution of, and control over, foreclosure proceedings. Similarly, a majority of the participants may be able to take actions to which we object but must comply with if our participation interest represents a minority interest. The lack of full control on participation interests sold may adversely affect our business.

#### Church revenues fluctuate and may substantially decrease during times of economic hardship and global pandemics.
To pay their loans, churches depend on revenues from church member contributions. Donations typically fluctuate over time for multiple reasons, including, but not limited to:

● changes in church leadership and church membership;

● local unemployment rates, credit conditions and real estate markets; and

● other local economic conditions, including epidemics or pandemics that may affect the local economy.

**When a mortgage loan is made to a church, the senior pastor usually plays a critical role in determining whether the loan will be repaid.**

The senior pastor of a church ministry usually performs a critical role in the leadership, management, effectiveness of the church's governance and conflict of interest practices, and continued viability of the church. A leadership crisis faced by a church that loses its

## **Table of Contents**
senior pastor due to death, disability, resignation, or retirement can negatively affect the church's ability to meet its debt service obligations on a mortgage loan we make.

#### The quality of our mortgage loans depends on consistent application of sound underwriting standards.
The quality of the mortgage loans in which we invest depends on the adequacy and implementation of sound underwriting standards as described in our Board adopted loan policy. To achieve our desired loan risk levels, we must properly observe and implement our underwriting standards, which may change depending on the state of the economy.

**We may suffer losses on loans due to not having all the material information relating to a potential borrower at the time that we make a credit decision with respect to that potential borrower or at the time we advance funds to the borrower.**

There is typically no publicly available information about the churches and ministries to whom we lend. Therefore, we must rely on our borrowers and the due diligence efforts of our staff to obtain the information that we consider when making our credit decisions. Our staff partially depends and relies upon the pastoral staff to supply full and correct disclosure of material information concerning their operations and financial condition. We may not have access to all the material information about a particular borrower's operations, financial condition, and prospects. In addition, a borrower's accounting records may become poorly kept or organized. The financial condition and prospects of a church may also change rapidly in the current economic environment. In such instances, we may not make a fully informed credit decision, which may lead to a failure or inability to recover our loan in its entirety.

#### Because we primarily invest in specialized purpose mortgage loans, our loan portfolio is riskier than if it were diversified.
We are among a limited number of non-bank financial institutions specialized in supplying loans to evangelical churches and church organizations. Most of our loans are secured by church and ministry real properties and the secondary market for these loans is regional and limited. Our mortgage loan agreements require that the borrower insure the property. This requirement secures the loan against liability and casualty loss. However, certain types of losses, those of a catastrophic nature such as earthquakes, floods, wild fires, or storms; health emergencies such as the COVID-19 pandemic; and losses due to civil disobedience, are either uninsurable or are not economically insurable. If an uninsured loss destroys a property, we could suffer loss of all or a substantial part of our mortgage loan investment.

## **Table of Contents**

#### Our loan portfolio is concentrated geographically and focused on loans to churches and religious organizations.
Our loans are concentrated geographically, as shown in the table below. Economic conditions in each of these states could differ in a significant manner from the loan investments we have made in other states and the real estate values which serve as collateral in those states will depend, to a substantial degree, on the real estate markets in those markets.

(in thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | Unpaid Balance of Loans | Percent of Total Loans | Number of Loans | Percent of Total Loans |
| California | $7148 | 7.7% | 20 | 15.6% |
| Maryland | 18784 | 20.4% | 7 | 5.5% |
| Illinois | 12155 | 13.2% | 19 | 14.8% |
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | Unpaid Balance of Loans | Percent of Total Loans | Number of Loans | Percent of Total Loans |
| California | $7557 | 8.0% | 23 | 17.2% |
| Maryland | 19146 | 20.2% | 7 | 5.2% |
| Illinois | 13567 | 14.3% | 19 | 14.2% |

---

**We may be unable to recognize or act upon an operational or financial problem with a church in a timely fashion to prevent a loss of our loan to that church.**

Our borrowers may experience operational or financial problems that, if not timely addressed by us, could result in a substantial impairment or loss of the value of our loan to the borrower. We may fail to identify problems because our borrowers did not report them in a timely manner or, even if the borrower did report the problem, we may fail to address it quickly enough, or at all. We try to minimize our credit risk through prudent loan approval and monitoring practices in all categories of our lending. However, we cannot assure you that such monitoring and approval procedures will reduce these lending risks. We also cannot assure you that our credit administration personnel, policies, and procedures will properly adapt to changes in economic or any other conditions affecting our borrowers and the quality of our loan portfolio. As a result, we could suffer loan losses that could have a material adverse effect on our revenues, net income, and results of operations.

#### We make assumptions about the collectability of our loan portfolio.
We make various assumptions and judgments about the collectability of our loan portfolio, including the creditworthiness of our borrowers and the value of the real estate and other

## **Table of Contents**
assets serving as collateral for the repayment of our loans. If we decide that it is probable that we will not be able to collect all amounts due to us under the terms of a particular loan agreement, we may have to recognize an impairment charge or a loss on the loan unless the value of the collateral securing the loan exceeds the carrying value of the loan.

If our assumptions regarding, among other things, the present value of expected future cash flows or the value of the collateral securing our loans are incorrect or general economic and financial conditions cause one or more borrowers to become unable to make payments under their loans, we may have to recognize impairment charges. These impairment charges could result in a material reduction in earnings in the period in which the loans are determined to be impaired. The impairment may have a material negative impact on our financial condition, liquidity, and ability to make debt service payments.

#### Our reserves for loan losses may prove inadequate, which could have a material, adverse effect on us.
Although we regularly evaluate our financial reserves to protect against future losses based on the probability and severity of the losses, there is no guarantee that our assessment of this risk will be adequate to cover any future potential losses. As of December 31, 2025, our allowance for loan losses totaled $1.1 million, or 1.22%, of our total loans.

Unanticipated adverse events may result in reserves that will be inadequate over time to protect against potential future losses. Examples of these adverse events are:

● significant negative changes in the economy;

● events affecting specific assets;

● events affecting specific borrowers;

● mismanaged construction;

● loss of a senior pastor;

● rising interest rates;

● failure to sell properties or assets;

● epidemics or pandemics that may affect the local or global economy; or

● events affecting the geographical regions in which our borrowers or their properties are located.

Maintaining the adequacy of our allowance for loan losses may require that we make significant and unanticipated increases in our provisions for loan losses, which would materially affect our results of operations and capital levels. See the section captioned "Part II, Item 7. Management's Discussion and Analysis of Financial Condition and

## **Table of Contents**
Results of Operations" in this Report for further discussion related to our process for determining the appropriate level for the allowance for loan losses.

**Some of our mortgage loan investments currently are, and in the future may be, nonaccrual loans or may be restructured, which subject us to increased risks compared to performing loans.**

Some of the loans in our mortgage loan portfolio currently are, or in the future may become a non-performing loan. Such loans may become non-performing if the church falls upon financial distress, the community or congregation the church serves suffers financial hardship, or there is an adverse change in leadership of the church. These circumstances could result in the borrower being unable to meet its debt service obligations to us. Non-performing loans may require our management team to devote a substantial amount of their resources to workout negotiations and restructuring efforts. These restructuring efforts may involve modifications to the interest rate, extension, or deferral of payments to be made under the loan or other concessions. For restructured loans, a risk still exists that the borrower may not be able or willing to continue the restructured payments or refinance the restructured mortgage at maturity. Our troubled assets could increase significantly if borrowers become delinquent and we are unsuccessful in managing our non-performing assets. This in turn could have a material, unfavorable effect on our results of operations and financial condition. For more information on our non-performing assets, see the caption titled "[Nonaccrual, Past Due, Non-performing Modified Loans, and Foreclosed Assets](#MDA_Nonaccrual)" in the Management's Discussion and Analysis of Financial Condition and Results of Operations section of this Report.

**In the event a borrower defaults on one of our mortgage loan investments, we may need to recover our investment through the sale of the property securing the loan.** 

In that event, the value of the real property security may prove insufficient to recover the amount of our investment. Even though we may obtain an appraisal of the property at the time we originate the loan, the property's value could decline after the appraisal is performed because of various events, including:

● uninsured casualty loss (such as an earthquake or flood);

● a decline in the local real estate market;

● undiscovered defects on the property;

● waste or neglect of the property;

● a downturn in demographic and residential trends;

● epidemics or pandemics that may affect the local or global economy;

● environmental hazards;

● a decline in growth in the area in which the property is located; and

● churches and church-related properties are typically not as marketable as more common commercial, retail, or residential properties.

The occurrence of any of these events could severely impair the market value of the security for our mortgage loan investments. In case of a default under a mortgage loan held directly by us, we will bear the risk of loss of principal to the extent of any deficiency between the value of the collateral and the principal and the accrued interest of the mortgage loan. Foreclosure of a church mortgage can be an expensive and lengthy process, which could have a significant effect on our expected return on the foreclosed mortgage loan. Such delays can cause the value of the mortgaged property to deteriorate further. The properties also incur operating expenses pending their sale, including property insurance, management fees, security, repairs, and maintenance. Any added expenses incurred could adversely affect our ability to recover the full value of our collateral. In addition, if we foreclose on a mortgage loan and take legal title to the real property, we could become responsible for real estate taxes levied and assessed against the foreclosed property as well as other costs such as property maintenance and insurance costs. These costs would be our responsibility and could reduce our recovery on our investment.

**The risks of cost overruns and non-completion of the construction or renovation of the mortgage properties securing construction loans we invest in may have a material and adverse effect on our investment.** 

The renovations, refurbishment, or expansion by a borrower of a mortgage property involves risks of cost overruns and non-completion. Costs of construction or improvements to bring a mortgage property up to the required standards for that property might exceed original estimates, possibly making a project uneconomical. Such delays and cost overruns are often the result of events outside both our and the borrower's control such as material shortages, labor shortages, labor strikes, pandemics, and unexpected delays caused by weather and other acts of nature. In addition, environmental risks and construction defects may cause cost overruns, and completion delays. If the borrower does not complete such construction or renovation in a timely manner, or if it costs more than expected, the borrower may experience a prolonged impairment of the borrower's revenues impacting their ability to make their payments on our loan.

#### We face potential environmental liabilities related to properties we acquire.
As part of our business operations, we may acquire real estate through foreclosure on mortgage loan investments. If we take ownership of a property, we may be exposed to environmental liabilities concerning this property. This exposure could lead to liability claims from government entities or third parties for property damage, personal injury, and the costs associated with investigating and cleaning up environmental contamination.

## **Table of Contents**
Furthermore, we might be obligated to address hazardous substances, toxic materials, or chemical releases at a property, with the possibility of incurring substantial costs for investigation or remediation activities. If we were to encounter significant environmental liabilities, it could materially and adversely impact our business, financial condition, liquidity, and results of operations.

### Risks Relating to Our Debt Certificates

#### Unexpected large withdrawals by investors that hold our debt certificates can reduce our overall liquidity.
We continue to expand our methods of raising funds, including selling participations in our mortgage loan investments, expanding the sales of our debt certificates, and maintaining lines of credit at financial institutions. If this strategy becomes less effective, we will need to find alternative sources of borrowing to finance our operations. Alternative solutions may be selling assets, deleveraging our balance sheet, and reducing operational expenses.

#### We depend on repeat purchases by a significant number of investors in our debt certificates to finance our business.
A significant percentage of the investors who buy our debt certificates roll their matured debt certificate into a new one. Historically, we have been able to sustain a high rate of renewal investments. If the rate of repeat investments declines, our ability to maintain or grow our asset base could be impaired.

The table below shows the renewal rates of our maturing debt certificates over the prior three years:

---

| | |
|:---|:---|
| 2025 | 76% |
| 2024 | 75% |
| 2023 | 82% |

---

#### Some of our investors may be unable to purchase our public offered debt certificates due to FINRA's investor suitability rule.
When handling sales of our investor debt certificates, we must comply with FINRA's "know your customer" and "suitability" rule. Some investors may not qualify under our suitability criteria. These suitability eligibility standards help ensure that investors make appropriate investments given the:

● age;

● investment experience;

● net worth;

## **Table of Contents**
● need for liquidity; and

● the mix of the investor's portfolio.

If MP Securities is unable to offer a potential investor a Class A Certificate that will enable such investor to meet the applicable suitability standards, we will need to find other qualified investors to implement our strategic objectives.

**ITEM 1B.** **UNRESOLVED STAFF COMMENTS**

Not applicable.

**ITEM 1C. CYBERSECURITY**

### Risk Management
We maintain a comprehensive cybersecurity program designed to protect both customer data and our proprietary information. Our cybersecurity framework is governed by our Board of Managers and driven by a dedicated Information Security Officer, ensuring that all processes comply with regulatory requirements and industry best practices. This framework is documented in our Cybersecurity Policy and Information Security Program Policy, which outlines the risk management, preventive, detective, and corrective controls we have implemented across the organization.

Our approach begins with regular, in-depth risk assessments that identify both inherent and residual cybersecurity risks. Utilizing standards such as the National Institute of Standards and Technology Cybersecurity Framework, Federal Financial Institutions Examinations Council guidance, and the foundational safeguards outlined in CIS Controls v8, we continuously monitor, evaluate, and update our security controls. These assessments allow us to effectively manage vulnerabilities across our Company assets and software, ensuring that only authorized and securely configured systems are connected to our network.

In addition to proactive risk identification, our cybersecurity process includes a robust incident response capability. We maintain detailed procedures for detecting, containing, and remediating cyber threats, which are regularly tested through internal audits and third-party assessments. This ensures that should an incident occur; our team can swiftly activate the Incident Response Plan to minimize potential impacts and restore secure operations.

We extend our cybersecurity diligence to third-party service providers and require periodic employee training. All external partners are required to adhere to our cybersecurity standards, and our employees receive ongoing training to stay current with emerging threats and best practices. This comprehensive, layered approach not only safeguards

## **Table of Contents**
critical data but also reinforces our commitment to continuous improvement and compliance with statutory and regulatory requirements.

### Governance
Our Board of Managers retains supervisory oversight responsibility for enterprise risk management and cybersecurity risks. The primary responsibility for maintaining an information security has been assigned to an Information Security Officer ("**ISO**"). The ISO works with the Audit Committee to address information security risks found by each business segment. Our ISO conducts an annual risk assessment report and submits the report to the Audit Committee for its review. The Audit Committee meets with Company management, the ISO and external auditors to review the Company's risk management processes and enterprise-wide risks found by the Company. The scope of this review is intended to address cybersecurity governance risks and related controls and identify any deficiencies that could adversely affect the Company's ability to record, process and report financial data. As of the date of this Report on Form 10-K, there have been no cybersecurity incidents we believe have had a material effect on our operations, business, results of operations or financial condition.

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| | |
|:---|:---|
| **ITEM 2.** | **PROPERTIES** |

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### Corporate Offices
As of December 31, 2025, the Company conducted most of its operations from its main corporate office at 1 Pointe Drive, Suite 205, Brea, California. In addition, the Company has a branch office in Fresno, California. The Brea corporate office and Fresno branch locations have operating leases. Ministry Partners Securities, LLC also keeps networking agreement office locations in Glendora, California; Brentwood, Tennessee; and Nampa, Idaho.

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| | |
|:---|:---|
| **ITEM 3.** | **LEGAL PROCEEDINGS** |

---

Given the nature of our investments made in mortgage loans, we may from time to time have an interest in, or be involved in, litigation arising out of our loan portfolio. We consider litigation related to our loan portfolio to be routine to the conduct of our business. As of December 31, 2025, we are not involved in any litigation matters that could have a material adverse effect on our financial position, results of operations, or cash flows.

## **Table of Contents**

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| | |
|:---|:---|
| **ITEM 4.** | **MINE SAFETY DISCLOSURES** |

---

Not applicable.

**PART II**

### ITEM 5. MARKET FOR OUR COMMON EQUITY, RELATED MEMBER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

### Price Range of Common Units
There is no public market for our Class A Units and Series A Preferred Units. As of December 31, 2025, a total of 146,522 Class A Units were issued, with 11 holders of record, and a total of 117,100 Series A Preferred Units were issued, with 11 holders of record.

### Sale of Equity Securities by Issuer
None.

### Purchases of Equity Securities by Issuer
None.

### Dividends and Distributions
The Series A Preferred Unit holders are entitled to receive two types of dividend distributions. First, they are entitled to receive a quarterly cash dividend at the rate of one-year LIBOR plus 25 basis points (the "**Series A Dividend**"). On July 1, 2023, the LIBOR index was replaced by the one-year Secured Overnight Financing Rate ("SOFR"). The Federal Reserve Bank of New York establishes the SOFR, with adjustments made as deemed appropriate. Payment of the Series A Dividend will have priority over all other distributions to equity owners. In addition, the Company must pay any accrued and undistributed Series A Dividend before we can distribute other dividends.

Our Series A Preferred Unit holders are also entitled to receive 10% of our net profits after subtracting the amount of quarterly Series A Dividends paid earned for any fiscal year. This payment will be made to holders of the Series A Preferred Units on a pro rata basis ("**Net Profits Dividend**"). The Company had a net loss after dividends in 2025 and 2024, therefore no Net Profits Dividend was accrued.

For 2025, we made no distributions to the holders of our Class A Units.

## **Table of Contents**
During the years ended December 31, 2025 and 2024, we declared distributions on our Series A Preferred Units as follows:

**SERIES A UNITS**

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| | | |
|:---|:---|:---|
| | **Distributions Declared per Unit** | **Distributions Declared per Unit** |
| <br>**Quarter** | **2025** | **2024** |
| First | $1.050 | $1.309 |
| Second | 1.032 | 1.319 |
| Third | 0.986 | 1.016 |
| Fourth | 0.925 | 1.117 |
| Total distributions per unit | $3.993 | $4.761 |

---

In the event of a loss, our operating agreement provides that losses will be allocated first to the holders of common units and then to the Series A Preferred Units holders until their respective capital accounts have been reduced to zero. If the capital accounts of the members cannot offset the entire loss, the balance will be allocated, pro rata, to the holders of common units in proportion to their respective ownership interest in our common equity units.

### Equity Compensation Plans
None.

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| | |
|:---|:---|
| **ITEM 6.** | **[RESERVED]** |

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## **Table of Contents**

### ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion on our financial statements should be read in conjunction with the consolidated financial statements and notes thereto in this Report beginning at page F-1.

### OVERVIEW
We generate our revenue through our lending portfolio and through fees generated from our investment and insurance products and services. While we generate most of our revenue through interest income, our strategic aim is to diversify our revenue sources so that non-interest income becomes a larger percentage of total income. Producing revenue from multiple sources reduces risk to the Company in the event of a decrease in interest income. We also strive to improve operating efficiency by increasing the revenue generated for each dollar of expense incurred to run the business, which helps us improve our capital position. Increased capital helps mitigate risk in economic down cycles. In addition, we seek to grow our loan portfolio in order to grow our operating revenue.

To continue to achieve our goals, protect the investment made by our debt certificate holders, and maximize the value of our equity holders' investments, we will continue to focus on:

● expanding the distribution channels for the Company's debt securities offerings with strategic partners that share the Company's desire to enhance Christian stewardship through Biblically responsible investments;

● growing non-interest income generated by our broker-dealer services and loan servicing and products;

● investing in technology to enhance our customer experience while creating operating efficiencies;

● growing our client base of borrowers, investors, and faith-based strategic partners;

● expanding our broker-dealer sales staff;

● serving the needs of credit union and CUSO clients through revenue producing strategic partnerships;

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● finding new strategic partnership opportunities with like-minded organizations that can help grow our client base, expand our balance sheet, and generate revenue;

● expanding revenue through the sale of loan participation interests;

● managing the size and cost structure of our business to match our operating environment and capital funding efforts;

● strengthening our capital through growth in earnings;

● growing the size of our balance sheet by originating profitable new ministry and commercial loans as we seek to increase revenue from our loan investments;

● strengthening our loan portfolio through aggressive and proactive efforts to resolve problems in our non-performing assets;

● expanding the sale of our investor debt certificates to diversify our funding sources; and

● maintaining adequate liquidity levels.

### Discussion and Analysis of Financial Condition and Results of Operations
The following discussion compares the results of operations for the twelve months ended December 31, 2025 and 2024, along with other financial information and statistical data we believe are important to understand our financial condition, cash flows and other changes in financial condition and results of operations. This analysis should be read in conjunction with the accompanying consolidated financial statements and notes thereto.

### Summary of our December 31, 2025, Financial Results
For this period, Company management has identified the following key trends and strategic objectives that have been reported in its financial statements:

## **Table of Contents**
**Return to Profitability.** After incurring losses in the previous two years, the Company returned to profitability in 2025. For the year ended December 31, 2025, the Company earned $30 thousand, as compared to a net loss of $607 thousand in 2024. With the successful implementation of expense reductions, investments in our technology platforms, and focus on reducing risk in our mortgage loan investments, the Company is focused on improving its net interest margin, growing its balance sheet and aligning with new faith-based investors in our debt securities.

**Improve Net Interest Income on Loan Investments.** During the period from 2020 through 2023, the Company pursued a strategy of reducing its balance sheet, including the repayment and elimination of borrowings under its credit facility. This strategy contributed to a decline in interest income from the Company's commercial loan portfolio. Additionally, incremental repayments of the Company's term debt facility during this period reduced total assets and contributed to lower net interest income.

For the year ended December 31, 2025, net interest income increased 27% as compared to the previous year. After adjusting for loan losses, net interest income increased 22% in 2025. In addition, the Company also received $895 thousand of interest payments from delinquent borrowers that reduced the principal balance of the loan rather than being reported as interest income. The primary driver behind this figure relates to a borrower that has a pattern of being late on its loan payments but consistently continues to meet its debt obligation. See "Non accrual, Past Due, Nonperforming Modified Loan and Foreclosed Assets table on page 48 of this Report."

![Graphic](mpic-20251231x10k005.jpg)

As we incrementally paid off our term debt facility, total assets declined, and our net interest income was subsequently reduced.

![Graphic](mpic-20251231x10k006.jpg)

Although rising interest rates contributed to increases in net interest income in 2024 and 2025, the primary driver of the increase from the past two years was interest income recovered from a borrower whose loan had been previously modified. In March 2025, the Company received a $670 thousand payment from the proceeds of the sale of 77.9 acres of investment property by a joint venture real estate project held by one of our borrowers. We hold a loan that was the subject of a plan of reorganization under a U.S. Bankruptcy proceeding. $648 thousand of this payment was treated as the recovery of accrued interest, which had previously been written off due to their uncertain collectability. The Company recognized an additional $147 thousand in other lending income that represented the recovery of fees and costs related to this loan.

Management anticipated that the Company's debt reduction strategy would result in a short-term decline in net interest income, due both to a reduction in interest-earning assets and to the repayment of borrowings under the Company's term debt facility, which represented the Company's lowest cost source of funds. However, management believed that the long-term benefits of strengthening the Company's capital position, increasing stockholders' equity, and eliminating debt at a discount outweighed the near-term reduction in net interest income.

In 2026, the Company intends to continue to expand its loan investment portfolio. Management expects that the yield on the Company's portfolio may increase in future periods as loans originated in 2021 and 2022 at interest rates of approximately 5% to 6% reach their five-year rate reset dates and adjust to rates currently estimated to be in the 7% to 8% range. Management also intends to seek to improve net interest income from its loan investments by adjusting, as appropriate, the interest rates offered on new loan originations and by closely monitoring the rates offered on the Company's debt certificates.

In addition, the Company anticipates that continued management and resolution of impaired assets within its loan portfolio may contribute to increased interest income.

**Reducing the Company's Operating Expenses.** As a result of the Company's debt reduction strategy and the related decline in interest-earning assets, net operating income was insufficient to cover operating expenses in 2023 and 2024, resulting in net losses during those periods. In response, the Company implemented a series of initiatives intended to reduce operating expenses and improve operating efficiency.

Operating expenses totaled approximately $5.7 million in 2022. Through various cost reduction measures, including changes to the Company's loan servicing strategy, relocation to new office space, active management of office-related expenses, streamlining of information technology services, and adjustments to staffing levels, operating expenses were reduced to approximately $4.2 million in 2024 and $3.9 million in 2025.

Management believes that these reductions in operating expenses position the Company to focus on expanding its loan investment portfolio, increasing the issuance of investor notes, and growing its advisory business.

**Improving Core Business Profitability.** From 2020 to 2022, the Company's net income from operations primarily relied upon income generated through gains reported from principal paydowns made on our term debt facility at a discount. The Company's intentional strategy of using available cash resources to incrementally reduce our term debt resulted in having less cash resources available to make loan investments. As noted above, we began to rebuild our loan portfolio in 2023, and our loan interest income has grown over the last two years due both to the increase in loans receivable and to an increase in the interest rates of existing adjustable-rate loans. Non-interest income in 2024 included $215 thousand related to our application for and expected receipt of an Employee Retention Credit ("**ERC**") provided by the Coronavirus Aid, Relief, and Economic Security Act (the "**CARES Act**"). Non-interest income in 2025 included $182 thousand in gains on the sale of foreclosed assets. After accounting for these non-recurring sources of other income, our non-interest income generated by our lending and broker-dealer services increased by $74 thousand over 2024, and we expect to grow those sources of revenue further in 2026.

**Strategic Objectives.** Now that the Company has paid off our term debt credit facility, we are focusing on improving the profitability of our core business operations through making profitable commercial loans and growing our non-interest generating sources of income from our faith-based investment advisory services. In 2026, the Company intends to focus on the following objectives:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Investing in and growing our commercial loan investments through loan originations, purchase of loan participation interests, and cooperative efforts with our strategic partners to increase the commercial loans we make to non-profit organizations and faith-based businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Develop and launch one or more new investment products to serve as a cash management investment to be offered to faith-based organizations, ministries, institutions, and Christian businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Continuing our efforts to reduce non-interest expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Increasing the sale of our debt certificates to finance the growth in the Company's balance sheet;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Effectively managing pressures on the Company's net interest margin on its loan investments in response to an inverted yield curve in financial markets that results in higher short-term costs on our debt certificates while the Company makes longer term investments with the commercial loans it originates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Expanding the revenues earned by the investment advisory, broker-dealer, and insurance operations at Ministry Partners Securities, LLC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) With improving net interest margins on its loan investments, the elimination of the Company's REO property, completion of its core processing system, and its operating expense reduction program, the Company plans to restructure its investor notes program in 2026 to provide new incentives to attract interest from faith-based strategic partners and investors. By expanding investor note sales, the Company can once again increase its mortgage loan investments and total assets, and improve its core operating net income.

### Two Year Comparison of Financial Condition as of December 31,:

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| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | **Comparison** | **Comparison** |
|  | **2025** | **2024** | **$ Difference** | **% Difference** |
|  | (dollars in thousands) | (dollars in thousands) |  |  |
| **Assets:** |  |  |  |  |
| Cash | $9793 | $9014 | $779 | 9% |
| Restricted cash | 1771 | 1757 | 14 | 1% |
| Certificates of deposit | 1519 | 1304 | 215 | 16% |
| Loans receivable, net of allowance for loan losses of $1,122 and $1,156 as of December 31, 2025 and 2024, respectively | 90827 | 93171 | (2344) | (3%) |
| Accrued interest receivable | 439 | 447 | (8) | (2%) |
| Investments in joint venture | 875 | 873 | 2 | 0% |
| Other investments | 1098 | 1082 | 16 | 1% |
| Property and equipment, net | 64 | 84 | (20) | (24%) |
| Foreclosed assets, net |  | 301 | (301) | (100%) |
| Servicing assets | 161 | 177 | (16) | (9%) |
| Other assets | 1065 | 1040 | 25 | 2% |
| Total assets | $107612 | $109250 | $(1638) | (1%) |
| **Liabilities and members' equity** |  |  |  |  |
| **Liabilities:** |  |  |  |  |
| Other secured borrowings | 6 | 6 |  | —% |
| Debt certificates payable, net of debt issuance costs of $72 and $88 as of December 31, 2025 and 2024, respectively | 94438 | 95073 | (635) | (1%) |
| Accrued interest payable |  | 348 | (348) | (100%) |
| Other liabilities  | 1674 | 1892 | (218) | (12%) |
| Total liabilities  | 96118 | 97319 | (1201) | (1%) |
| **Members' Equity:** |  |  |  |  |
| Series A preferred units | 11715 | 11715 |  | —% |
| Class A common units  | 1510 | 1509 | 1 | 0% |
| Accumulated earnings | (1731) | (1293) | (438) | 34% |
| **Total members' equity**  | 11494 | 11931 | (437) | (4%) |
| **Total liabilities and members' equity** | $107612 | $109250 | $(1638) | (1%) |

---

Total assets decreased by 1% due to the net payoff or sale of $2.3 million in loans receivable. Part of these funds were used to increase our liquidity and to invest in certificates of deposit. $635 thousand was used to pay for maturing debt certificates that were not renewed.

#### Loan Portfolio
Our loan portfolio provides the majority of our revenue; however, it also presents the most risk to future earnings through both interest rate risk and credit risk. Additional information regarding risk to our loans is included in "[Part I, Item 1A, Risk Factors](#ITEM1ARISKFACTORS_926843)". Our portfolio consists mostly of loans made to evangelical churches and ministries with approximately 99.6% real estate secured loans.

## **Table of Contents**

#### Loan Types

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, (dollars in thousands)** | **Year Ended December 31, (dollars in thousands)** | **Year Ended December 31, (dollars in thousands)** | **Year Ended December 31, (dollars in thousands)** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Amount** | **% ofPortfolio** | **Amount** | **% ofPortfolio** |
| Non-profit commercial loans: |  |  |  |  |
| &nbsp;&nbsp;Real estate secured | $83651 | 90.7% | $83724 | 88.5% |
| &nbsp;&nbsp;Construction | 385 | 0.4% | 188 | 0.2% |
| &nbsp;&nbsp;Unsecured | 325 | 0.4% | 48 | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-profit commercial loans: | $84361 | 91.4% | $83960 | 88.7% |
| For-profit commercial loans: |  |  |  |  |
| &nbsp;&nbsp;Real estate secured | $7915 | 8.6% | 10678 | 11.3% |
| &nbsp;&nbsp;Construction |  | —% |  | —% |
| Total for-profit commercial loans | $7915 | 8.6% | $10678 | 11.3% |
| Total loans | $92276 | 100.0% | $94638 | 100.0% |

---

#### Maturities and Sensitivities of Loans to Changes in Interest Rates

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Dollar Amount of Loans Receivable Maturing (in thousands)** | **Dollar Amount of Loans Receivable Maturing (in thousands)** | **Dollar Amount of Loans Receivable Maturing (in thousands)** | **Dollar Amount of Loans Receivable Maturing (in thousands)** |
| <br>**As of** | **Due 1 Yr or Less** | **Due 1yr to 5 Yrs** | **Due After 5 Yrs** | **Total** |
| December 31, 2025 | $28730 | 40439 | 23107 | $92276 |

---

Included in the table above are 78 adjustable-rate loans totaling 56% of the total balance. Adjustable-rate loans reduce the interest rate risk compared to fixed rate loans with similar cash flow characteristics.

**Nonaccrual, Past Due, Non-performing Modified Loans, and Foreclosed Assets**

● Non-accrual loans: loans on which management has discontinued interest accruals. In most circumstances, loans 90 days past due are placed on non-accrual status. In addition, management may place a loan on a non-accrual status at its discretion if other circumstances surrounding the loan and the borrower indicate it is prudent to do so.

● Past due loans: loans 90 days or more past due and still accruing.

● Non-performing modified loans: loans in which the Company has granted the borrower a concession due to financial distress. Concessions are usually a reduction of the interest rate or a change in the original repayment terms.

● Loans where the borrowers have defaulted on contractual terms of their loan agreement: this could include loans where the borrower has failed to provide required financial information, has violated a covenant, or has otherwise failed to comply with the terms of the loan agreement.

● Foreclosed assets: real properties for which we have taken title and possession upon the completion of foreclosure proceedings.

## **Table of Contents**
We closely watch these non-performing assets on an ongoing basis. Management evaluates the potential risk of loss on these loans and foreclosed assets in one of three ways:

● the present value of expected future cash flows discounted at the loan's effective interest rate;

● the obtainable market price; or

● the fair value of the collateral if the loan is collateral-dependent.

The following table presents our non-performing assets:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Nonaccrual, Past Due, Non-performing Modified Loans, and Foreclosed Assets** | **Nonaccrual, Past Due, Non-performing Modified Loans, and Foreclosed Assets** | **Nonaccrual, Past Due, Non-performing Modified Loans, and Foreclosed Assets** | **Nonaccrual, Past Due, Non-performing Modified Loans, and Foreclosed Assets** | **Nonaccrual, Past Due, Non-performing Modified Loans, and Foreclosed Assets** |
| *($ in thousands)* | *($ in thousands)* | *($ in thousands)* | *($ in thousands)* | *($ in thousands)* |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2025** | **2024** | **2025** | **2025** |
|  | **Total Recorded Balance** | **Total Recorded Balance** | **Interest Earned** | **Interest that should have been Earned\*** |
| Non-accrual loans\*\* | $10551 | $11520 | $866 | $895 |
| Accruing loans which are contractually past due 90 days or more as to principal or interest payments\*\*\* | 59 |  | 5 | 5 |
| Loans not included above which are non-performing modified loans | 5408 | 5408 | 297 | 297 |
| Foreclosed Assets, net of valuation allowance |  | 301 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total  | $16018 | $17229 | $1168 | $1197 |

---

\*the gross interest income that would have been recorded in the period if the loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination

\*\* $6.1 million is included in total non-accrual loans as of December 31, 2025 related to a loan that has been put on non-accrual due to prior delinquency but is making regular principal and interest payments.

\*\*\* This balance is related to a borrower whose loan was in the process of being refinanced. It paid off in January 2026.

#### Allowance for Loan Losses
For information on our allowance for loan losses and how it is calculated please see the header ["Allowance for Loan Losses" in Note 2](#Allowance_Note2) as well as ["Allowance for Loan Losses" in Note 4](#Allowance_Note4) in the consolidated financial statements and notes thereto in this Report beginning at page F1.

## **Table of Contents**
The following chart details our allowance for loan losses:

---

| | | |
|:---|:---|:---|
|  | **Allowance for Loan Losses** | **Allowance for Loan Losses** |
|  | **Twelve months ended** | **Twelve months ended** |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  | ($ in thousands) | ($ in thousands) |
| **Balances:** |  |  |
| Average total loans outstanding during period | $93309 | $97957 |
| Total non-performing loans outstanding at end of the period | 15959 | 16928 |
| Total loans outstanding at end of the period | 92276 | 94638 |
| **Allowance for loan losses:** |  |  |
| Balance at the beginning of period | $1156 | $1501 |
| Provision credit to expense | (34) | (126) |
| Charge-offs |  |  |
| &nbsp;&nbsp;Non-profit, Wholly-Owned First Amortizing |  | (219) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total |  | (219) |
| Recoveries |  |  |
| &nbsp;&nbsp;Non-profit, Wholly-Owned First Amortizing |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total |  |  |
| Net loan charge-offs |  | (219) |
| Accretion of allowance related to restructured loans |  |  |
| **Balance** | $1122 | $1156 |
| **Ratios:** |  |  |
| Net loan (charge-offs) / recoveries to average total loans | 0.00% | (0.22)% |
| Provision credit for loan losses to average total loans | (0.04)% | (0.13)% |
| Allowance for loan losses to non-performing loans at the end of the period | 7.03% | 6.83% |
| Allowance for loan losses to total loans at the end of the period | 1.22% | 1.22% |
| Net loan recoveries to credit for allowance for loan losses at the end of the period | —% |  |
| Net loan (charge-off) / recoveries to credit for loan losses | 0.00% | 173.81% |

---

See the header "[Provision](#MDA_Provision)" further on in the Management's Discussion and Analysis in the section titled "Results of Operations" for information on factors which influenced the amount of the allowance credited to operating expense.

The following table shows the Company's allocation of allowance for loan losses by loan categories as of December 31, 2025 (dollars in thousands):

---

| | | |
|:---|:---|:---|
| <br>**Loan Categories** | <br><br>**Amount** | **Percent of loans**<br>**in each category**<br>**to total loans** |
| Non-profit commercial loans: |  |  |
| &nbsp;&nbsp;Real estate secured | $1095 | 91% |
| &nbsp;&nbsp;Construction | 2 | 0% |
| &nbsp;&nbsp;Other secured |  | 0% |
| &nbsp;&nbsp;Unsecured | 3 | 0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-profit commercial loans: | $1100 | 91% |
| For-profit commercial loans: |  |  |
| &nbsp;&nbsp;Real estate secured | 22 | 9% |
| &nbsp;&nbsp;Construction |  | 0% |
| Total for-profit commercial loans | $22 | 9% |
| Total loans | $1122 | 100% |

---

At this time management is not able to approximate an anticipated amount of charge-offs in 2026.

#### Debt Certificates Payable
Our debt certificates are sold under both publicly registered and private placement security offerings. Over the last several years, we have expanded the number of investors in our debt certificates, and we have broadened the type of investors we serve by building relationships with other faith-based organizations which has allowed us to offer our debt certificates to these organizations and their clients. Concurrently, MP Securities and its staff of financial advisors have increased our customer base through marketing efforts made to individual investors.

Our 2021 Class A Offering expired December 31, 2023. We began selling our new offering, the 2024 Class A Debt Certificates, on February 6, 2024. This offering will expire on December 31, 2026 and will need to be renewed for 2027.

## **Table of Contents**
The balances of our outstanding debt certificates are as follows (dollars in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **As of**  | **As of**  | **As of**  | **As of**  |
| | | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| <br>**SEC Registered Public Offerings** | <br>**Offering Type** | **Amount** | **WeightedAverageInterestRate** | **Amount** | **WeightedAverageInterestRate** |
| &nbsp;&nbsp;Class 1A Offering | Unsecured | $— | —% | $5979 | 3.91% |
| &nbsp;&nbsp;2021 Class A Offering | Unsecured | 21463 | 4.68% | 33336 | 4.75% |
| &nbsp;&nbsp;2024 Class A Offering | Unsecured | 45591 | 4.77% | 31247 | 4.95% |
| Public offering total |  | $67054 | 4.74% | $70562 | 4.77% |
| **Private Offerings** |  |  |  |  |  |
| &nbsp;&nbsp;Subordinated Notes | Unsecured | $27456 | 5.24% | $24599 | 5.15% |
| Private offering total |  | $27456 | 5.24% | $24599 | 5.15% |
| Total debt certificates payable |  | $94510 | 4.89% | $95161 | 4.87% |

---

#### Members' Equity
During the year ended December 31, 2025, total members' equity decreased by $437 thousand attributable to income of $30 thousand and dividend distributions of $467 thousand. We did not repurchase or sell any membership equity units during the year ended December 31, 2025.

### Liquidity and Capital Resources
Holding adequate liquidity requires that sufficient resources be always available to meet our cash flow needs. We use cash to obtain new mortgage loans, repay term-debt, make interest payments to our note investors, and pay general operating expenses. Our primary sources of liquidity are:

● cash;

● sales of debt certificates;

● cash flows from operations;

● maturing loans;

● payments of principal and interest on loans; and

● loan sales.

Our management team regularly prepares cash flow forecasts that we rely upon to ensure that we have sufficient liquidity to conduct our business. While we believe that these expected cash inflows and outflows are reasonable, we can give no assurances that our

## **Table of Contents**
forecasts or assumptions will prove to be correct. Management believes that we hold adequate sources of liquidity to meet our liquidity needs and have the means to generate more liquidity if necessary.

While our liquidity sources that include cash, reserves, and cash flows from operations are generally available on an immediate basis, our ability to sell mortgage loan assets and raise additional debt or equity capital is less certain and less immediate. Material liquidity events that would adversely affect our business include, but are not limited to, the following:

● we become unable to continue offering our debt certificates in public and private offerings for any reason;

● we incur sudden withdrawals by multiple investors in our debt certificates;

● a substantial portion of our debt certificates that mature during the next twelve months is not renewed; or

● we are unable to obtain capital from sales of our mortgage loan assets or other sources.

Withdrawal requests made by holders of high dollar securities can also adversely affect our liquidity. We believe that our available cash, cash flows from operations, net interest income, and other fee income will be sufficient to meet our cash needs. Should our liquidity needs exceed our available sources of liquidity, we believe we could sell a part of our mortgage-loan investments at par as well as sell debt certificates to raise more cash. However, we also must keep adequate collateral, consisting of loans receivable and cash, to secure our lines of credit. We have substantially reduced this risk in the last two years by retiring our term-debt as the Company now has more unencumbered loans available to sell.

Our Board of Managers approves our liquidity policy. The policy sets a minimum liquidity ratio and has a contingency protocol if our liquidity falls below the minimum. Our liquidity ratio was 14% at December 31, 2025, which is above the minimum set by our policy.

#### Liquidity Sources
In response to the economic uncertainty created from the COVID-19 pandemic, management began to generate liquidity by selling participation interests in its loans receivable during 2020 and throughout 2021. After selling fewer loans in 2022 and 2023, the Company began selling loan participations in 2024 in order to rely less on high interest rate lines of credit. During the period ended December 31, 2025, we generated $1.1 million

## **Table of Contents**
in cash from the sale of loan participation interests after generating $8.4 million during the period ended December 31, 2024.

The Company has one revolving lines of credit. The Company has a revolving $5.0 million short-term demand credit facility ("**ACCU LOC**") with America's Christian Credit Union. The ACCU LOC has a one-year term with a maturity date of November 28, 2026. The ACCU LOC will automatically renew for a one-year term unless either party furnishes written notice at least thirty (30) days prior to the termination date that it does not intend to renew the agreement. As of December 31, 2025, we had no outstanding balance due on this facility and did not draw on it at any point during the year. The Company does not have any restrictions on how the funds may be used for this facility.

Management believes, if necessary, we will be able to raise additional cash through loan and debt certificate sales to keep sufficient levels of cash available to meet our debt obligations to investors. Because the Company was successful in raising cash from loan repayments, sales of loan participations, and its use of short-term credit facilities, we were able to take advantage of the opportunity to pay down our term debt facility at a discount, as described above. Despite this paydown, the Company is still operating with cash levels above its Board-approved policy. Cash, restricted cash, and certificates of deposit were $13.1 million as of December 31, 2025.

#### Debt Certificates
The sale of our debt certificates contributes significantly to funding our mortgage loan investments. Through sales of our publicly offered debt certificates and privately placed debt certificates, we expect to fund new loans. We also use the cash we receive from our debt certificates sales to fund general operating activities.

As of December 31, 2025, our investor debt certificates had future maturities during the following twelve-month periods ending December 31, (dollars in thousands):

---

| | |
|:---|:---|
| 2026 | $46423 |
| 2027 | 18767 |
| 2028 | 10765 |
| 2029 | 9808 |
| 2030 | 8747 |
|  | 94510 |
| Less: debt issuance costs | 72 |
| Debt certificates payable, net of debt issuance costs | $94438 |

---

## **Table of Contents**
Historically, we have been successful in generating reinvestments by our debt certificate holders when the securities they hold mature. The table below shows the renewal rates of our maturing securities over the last three years.

---

| | |
|:---|:---|
| 2025 | 76% |
| 2024 | 75% |
| 2023 | 82% |

---

#### Credit Facilities and Other Borrowings
The table below is a summary of the Company's debt instruments as of December 31, 2025 (dollars in thousands):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Nature ofBorrowing** | **InterestRate** | **Interest RateType** | **AmountOutstanding** | **MonthlyPayment** | **MaturityDate** | **Loan CollateralPledged** | **CashPledged** |
| ACCU LOC | 8.000% | Variable | $— | $— | 11/28/2026 | $6071 | $— |
| ACCU Secured | Various | Fixed | 6 |  | Various |  | 6 |

---

Note: Disclosed cash pledged and collateral balances will get pledged once and if the LOC is drawn on.

The ACCU secured borrowing is a loan participation sold with recourse that is classified as a secured borrowing.

#### Debt Covenants
Under our line of credit agreements and our debt certificate documents, we are bound to follow certain affirmative and negative covenants. Failure to follow our covenants could require all interest and principal to become due. As of December 31, 2025, we are in compliance with the covenants on our securities payable and lines of credit.

● For more information regarding our debt certificates payable, refer to "Note 11. Debt Certificates Payable of Part II, Item 8. of this Report.

● For more information on our credit facilities, refer to "Note 10. Credit Facilities and Other Debt", to Part II, Item 8. of this Report.

## **Table of Contents**

### Results of Operations:

### For the year ended December 31, 2025

#### Net Interest Income and Net Interest Margin
Historically, our earnings have primarily depended upon our net interest income.

**Net interest income** is the difference between the interest income we receive from our loans and cash on deposit and the interest paid on our debt certificates and term debt.

**Net interest margin** is net interest income expressed as a percentage of average total interest-earning assets.

The following table provides information, for average outstanding balances for each major category of interest earnings assets and interest-bearing liabilities, the interest income or interest expense, and the average yield or rate for the periods indicated:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Average Balances and Rates/Yields** | **Average Balances and Rates/Yields** | **Average Balances and Rates/Yields** | **Average Balances and Rates/Yields** | **Average Balances and Rates/Yields** | **Average Balances and Rates/Yields** |
|  | **For the Twelve Months Ended December 31,** | **For the Twelve Months Ended December 31,** | **For the Twelve Months Ended December 31,** | **For the Twelve Months Ended December 31,** | **For the Twelve Months Ended December 31,** | **For the Twelve Months Ended December 31,** |
|  | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **AverageBalance** | **InterestIncome/Expense** | **AverageYield/Rate** | **AverageBalance** | **InterestIncome/Expense** | **AverageYield/Rate** |
| **Assets:** |  |  |  |  |  |  |
| Interest-earning accounts with other financial institutions | $12736 | $454 | 3.56% | $12887 | $579 | 4.48% |
| Interest-earning loans<sup>[1][2]</sup> | 91894 | 7087 | 7.71% | 96773 | 6700 | 6.90% |
| **Total interest-earning assets** | 104630 | 7541 | 7.21% | 109660 | 7279 | 6.62% |
| Non-interest-earning assets | 3994 |  | —% | 3540 |  | —% |
| **Total Assets** | $108624 | $7541 | 6.94% | $113200 | $7279 | 6.41% |
| **Liabilities:** |  |  |  |  |  |  |
| Debt certificates payable gross of debt issuance costs | $94542 | $4594 | 4.86% | $94447 | $4569 | 4.82% |
| Other debt | 6 |  | —% | 4369 | 393 | 8.97% |
| **Total interest-bearing liabilities** | $94548 | $4594 | 4.86% | $98816 | $4962 | 5.01% |
| Debt issuance cost |  | 99 |  |  | 75 |  |
| **Total interest-bearing liabilities net of debt issuance cost** | $94548 | 4693 | 4.96% | $98816 | 5037 | 5.08% |
| Net interest income |  | $2848 |  |  | $2242 |  |
| Net interest margin |  |  | 2.72% |  |  | 2.04% |

---

[1] Loans are net of deferred fees and before the allowance for loan losses. Non-accrual loans are considered non-interest earning assets for this analysis.

[2] Interest income on loans includes deferred fee amortization of $30 thousand and $111 thousand for the years ended years ended December 31, 2025 and 2024, respectively.

## **Table of Contents**

---

| | | | |
|:---|:---|:---|:---|
| **Rate/Volume Analysis of Net Interest Income** | **Rate/Volume Analysis of Net Interest Income** | **Rate/Volume Analysis of Net Interest Income** | **Rate/Volume Analysis of Net Interest Income** |
|  | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
|  | **December 31, 2025 vs. 2024** | **December 31, 2025 vs. 2024** | **December 31, 2025 vs. 2024** |
|  | **Increase (Decrease) Due to Change in:** | **Increase (Decrease) Due to Change in:** | **Increase (Decrease) Due to Change in:** |
|  | **Volume** | **Rate** | **Total** |
|  | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| **Increase (Decrease) in Interest Income:** |  |  |  |
| Interest-earning accounts with other financial institutions | $(7) | $(118) | $(125) |
| Interest-earning loans | (371) | 758 | 387 |
| &nbsp;&nbsp;Total interest-earning assets | (378) | 640 | 262 |
| **Increase (Decrease) in Interest Expense:** |  |  |  |
| Debt certificates payable gross of debt issuance costs | 41 | (16) | 25 |
| Other debt | (196) | (197) | (393) |
| Debt issuance cost |  | 24 | 24 |
| &nbsp;&nbsp;Total interest-bearing liabilities | (155) | (189) | (344) |
| Change in net interest income | $(223) | $829 | $606 |

---

Net interest income increased 27% during the year ended December 31, 2025. This was due to a $670 thousand payment received on a loan during March 2025. $648 thousand of this payment was recognized as interest income that had previously been written off.

The yield on interest-earning accounts with other financial institutions decreased as rates offered by financial institutions declined during 2025 along with federal interest rates. Interest on our interest-earning loans increased by $387 thousand due to the one-time interest payment referenced above. While the weighted average rate of our loan portfolio increased from 6.88% to 6.97%, the increase in interest income from loans was offset by a decrease in average interest-earning loans of $4.9 million.

Total interest expense decreased primarily due to a decrease in the interest paid on other debt, as we were able to avoid borrowing on lines of credit for the entirety of 2025. Average rates and average balances on our debt certificates stayed relatively stable from the prior year.

The Company's net interest margin increased due to the changes described above. The Company intends to grow its loan portfolio in 2026 and beyond in order to increase net interest income.

#### Provision and non-interest income and expense

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Twelve months ended** | **Twelve months ended** |  |  |
|  | **December 31,** | **December 31,** | **Comparison** | **Comparison** |
|  | **(dollars in thousands)** | **(dollars in thousands)** | | |
|  | **2025** | **2024** | <br>**$ Change** | <br>**% Change** |
| Net interest income | $2848 | $2242 | $606 | 27% |
| Provision (credit) for loan losses | (34) | (126) | 92 | (73%) |
| &nbsp;&nbsp;Net interest income after provision (credit) for loan losses | 2882 | 2368 | 514 | 22% |
| Non-interest income |  |  |  |  |
| Broker-dealer commissions and fees | 756 | 743 | 13 | 2% |
| Other lending income | 542 | 514 | 28 | 5% |
| Gain on debt extinguishment |  |  |  | —% |
| Total non-interest income | 1298 | 1257 | 41 | 3% |
| Total non-interest expenses  | 4133 | 4212 | (79) | (2%) |
| &nbsp;&nbsp;Income (loss) before provision for income taxes | 47 | (587) | 634 | (108%) |
| Provision for income taxes and state LLC fees | 17 | 20 | (3) | (15%) |
| &nbsp;&nbsp;Net income (loss) | $30 | $(607) | $637 | (105%) |

---

#### Provision
In 2025, the Company recorded a credit to provision for loan losses due to paydowns in the loan portfolio.

#### Non-interest income
Non-interest income was higher in 2025 due to the recognition of $182 thousand in gains on the sale of foreclosed assets. The Company sold its investment in a foreclosed asset in October of 2025. As compared to 2024, non-interest income from other sources varied. Broker-dealer fees and commissions increased by $13 thousand, gains on loan sales decreased by $85 thousand as the Company sold fewer loans, and the Company also recorded $147 thousand in fee income related to a borrower who made a $670 thousand payment from a sale of real property under a confirmed bankruptcy plan. The sale of the foreclosed asset and the fee income is non-recurring, but the Company anticipates continuing to supplement its interest income with increased revenue from lending activities and broker-dealer services.

#### Non-interest expenses
Non-interest expense was lower in 2025 due to lower office operations expenses, as some of the measures the Company has taken in the prior two years to reduce technology costs has taken effect. In addition, consulting fees decreased by $70 thousand as we terminated our consulting agreement with our former Chief Executive Officer in the last half of 2024.

## **Table of Contents**

### For the year ended December 31, 2024

#### Net Interest Income and Net Interest Margin
The following table provides information, for average outstanding balances for each major category of interest earnings assets and interest-bearing liabilities, the interest income or interest expense, and the average yield or rate for the periods indicated:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Average Balances and Rates/Yields** | **Average Balances and Rates/Yields** | **Average Balances and Rates/Yields** | **Average Balances and Rates/Yields** | **Average Balances and Rates/Yields** | **Average Balances and Rates/Yields** |
|  | **For the Twelve Months Ended December 31,** | **For the Twelve Months Ended December 31,** | **For the Twelve Months Ended December 31,** | **For the Twelve Months Ended December 31,** | **For the Twelve Months Ended December 31,** | **For the Twelve Months Ended December 31,** |
|  | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
|  | **2024** | **2024** | **2024** | **2023** | **2023** | **2023** |
|  | **AverageBalance** | **InterestIncome/Expense** | **AverageYield/Rate** | **AverageBalance** | **InterestIncome/Expense** | **AverageYield/Rate** |
| **Assets:** |  |  |  |  |  |  |
| Interest-earning accounts with other financial institutions | $12887 | $579 | 4.48% | $15492 | $621 | 4.02% |
| Interest-earning loans<sup>[1][2]</sup> | 96773 | 6700 | 6.90% | 91536 | 5800 | 6.35% |
| **Total interest-earning assets** | 109660 | 7279 | 6.62% | 107028 | 6421 | 6.02% |
| Non-interest-earning assets | 3540 |  | —% | 2801 |  | —% |
| **Total Assets** | $113200 | $7279 | 6.41% | $109829 | $6421 | 5.86% |
| **Liabilities:** |  |  |  |  |  |  |
| Debt certificates payable gross of debt issuance costs | $94447 | $4569 | 4.82% | $90553 | $4111 | 4.55% |
| Other debt | 4369 | 393 | 8.97% | 3016 | 246 | 8.18% |
| **Total interest-bearing liabilities** | $98816 | $4962 | 5.01% | $93569 | $4357 | 4.67% |
| Debt issuance cost |  | 75 |  |  | 128 |  |
| **Total interest-bearing liabilities net of debt issuance cost** | $98816 | 5037 | 5.08% | $93569 | 4485 | 4.81% |
| Net interest income |  | $2242 |  |  | $1936 |  |
| Net interest margin |  |  | 2.04% |  |  | 1.81% |

---

[1] Loans are net of deferred fees and before the allowance for loan losses. Non-accrual loans are considered non-interest earning assets for this analysis.

[2] Interest income on loans includes deferred fee amortization of $111 thousand and $231 thousand for the years ended December 31, 2024 and 2023, respectively.

---

| | | | |
|:---|:---|:---|:---|
| **Rate/Volume Analysis of Net Interest Income** | **Rate/Volume Analysis of Net Interest Income** | **Rate/Volume Analysis of Net Interest Income** | **Rate/Volume Analysis of Net Interest Income** |
|  | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
|  | **December 31, 2024 vs. 2023** | **December 31, 2024 vs. 2023** | **December 31, 2024 vs. 2023** |
|  | **Increase (Decrease) Due to Change in:** | **Increase (Decrease) Due to Change in:** | **Increase (Decrease) Due to Change in:** |
|  | **Volume** | **Rate** | **Total** |
|  | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| **Increase (Decrease) in Interest Income:** |  |  |  |
| Interest-earning accounts with other financial institutions | $(108) | $66 | $(42) |
| Interest-earning loans | 379 | 521 | 900 |
| &nbsp;&nbsp;Total interest-earning assets | 271 | 587 | 858 |
| **Increase (Decrease) in Interest Expense:** |  |  |  |
| Debt certificates payable gross of debt issuance costs | 421 | 37 | 458 |
| Other debt | 121 | 26 | 147 |
| Debt issuance cost |  | (53) | (53) |
| &nbsp;&nbsp;Total interest-bearing liabilities | 542 | 10 | 552 |
| Change in net interest income | $(271) | $577 | $306 |

---

## **Table of Contents**
Net interest income increased 16% during the year ended December 31, 2024. This was due both to an increase in interest-earning assets over 2023, as well as a larger increase in the average yield earned by assets as compared to the average rate paid on debt certificates and other debt.

The yield on interest-earning accounts with other financial institutions increased as we closely managed our funds to take advantage of the high interest rate environment driven by high rates on Federal Reserve Board funds. Interest on our interest-earning loans increased by $900 thousand due to an increase in both the volume of average loans receivable and in the interest rates we receive on new and renewed loans. The volume variance is a result of increased lending activity as the Company funded $8.7 million in loans during the year. While some of these loans paid off or were sold in the later part of the year, they were outstanding for long enough to drive up the average balance for the year. The rate variance is due to new and renewed loans receiving a higher interest rate in the current rate environment. The weighted average rate on the loan portfolio increased 25 basis points from 6.53% to 6.88% during the year ended December 31, 2024.

Total interest expense increased mostly due to a rate variance on debt certificates payable. The rate variances were due to higher offering rates on new note sales as well as our lines of credit as U.S. Treasury rates were higher than in 2023 for most of 2024.

The Company's net interest margin increased due to the changes described above. The Company intends to grow its loan portfolio in 2025 and beyond in order to increase net interest income.

#### Provision and non-interest income and expense

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Twelve months ended** | **Twelve months ended** |  |  |
|  | **December 31,** | **December 31,** | **Comparison** | **Comparison** |
|  | **(dollars in thousands)** | **(dollars in thousands)** | | |
|  | **2024** | **2023** | <br>**$ Change** | <br>**% Change** |
| Net interest income | $2242 | $1936 | $306 | 16% |
| Provision (credit) for loan losses | (126) | (142) | 16 | (11%) |
| &nbsp;&nbsp;Net interest income after provision (credit) for loan losses | 2368 | 2078 | 290 | 14% |
| Total non-interest income | 1257 | 2584 | (1327) | (51%) |
| Total non-interest expenses  | 4212 | 5399 | (1187) | (22%) |
| &nbsp;&nbsp;Income (loss) before provision for income taxes | (587) | (737) | 150 | (20%) |
| Provision for income taxes and state LLC fees | 20 | 20 |  | —% |
| &nbsp;&nbsp;Net income (loss) | $(607) | $(757) | $150 | (20%) |

---

#### Provision
In 2024, the Company recorded a credit to provision for loan losses due to transfers from collectively reviewed loans to individually reviewed loans which were either fully covered by collateral or did not require additional provision for using a discounted cash flow analysis.

## **Table of Contents**

#### Non-interest income
Non-interest income was lower in 2024 mostly due to a non-recurring charitable contribution made to MPC, our not-for-profit foundation that makes charitable grants to Christian organizations. MPC received a grant of $1.7 million in 2023, but the funds are restricted and must be used for charitable purposes. As compared to 2023, non-interest income from other sources mostly increased. Broker-dealer fees and commissions increased by $92 thousand, gains on loan sales increased by $87 thousand, and the Company also recorded a $215 thousand Employee Retention Credit. The latter is non-recurring, but the Company anticipates continuing to supplement its interest income with increased revenue from lending activities and broker-dealer services.

#### Non-interest expenses
Non-interest expense was lower in 2024 due to lower salaries and benefits of $1.2 million. In 2023, we paid retirement benefits to our former Chief Executive Officer under a Supplemental Executive Retirement Plan. See Item II. "Executive and Board of Manager Compensation of the Report."

### Summary of Critical Accounting Policies and Estimates
The preparation of financial statements in conformity with Generally Accepted Accounting Principles ("**GAAP**") requires management to make estimates and assumptions that influence amounts reported in the financial statements. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses generated during the reporting period. Various elements of our accounting policies are inherently subject to estimation techniques, valuation assumptions, and other subjective assessments.

Management has identified certain accounting policies that rely on judgments, estimates, and assumptions and are critical to an understanding of our financial statements. These policies govern such areas as the allowance for credit losses and the fair value of financial instruments and foreclosed assets. Management believes the judgments, estimates, and assumptions used in the accounting policies governing these areas are appropriate based on the factual circumstances at the time they were made. However, given the sensitivity of the financial statements to these critical accounting policies, changes in management's judgments, estimates, and assumptions could result in material differences in our results of operations or financial condition. Further, subsequent changes in economic or market conditions could have a significant impact on these estimates as well as on our financial condition and operating results in future periods.

The determination of the allowance for loan losses involves critical estimates made in accordance with GAAP. Further on in Management's Discussion and Analysis, we provide

## **Table of Contents**
additional details regarding the factors involved in determining the allowance, the nature of the uncertainty involved in the calculation, and the impact of the allowance on the Company's financial position and results of operations.

### ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
We are a "smaller reporting company" as defined by Regulation S-K and as such, are not providing the information contained in this item pursuant to Regulation S-K

## **Table of Contents**

### ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

### Included herewith are the following financial statements:
**Table of Contents**

---

| | |
|:---|:---|
|  | **Page** |
| [**Report of Independent Registered Public Accounting Firm**](#ReportofIndependentRegisteredPublic) **(PCAOB ID: 261)** | F-1 |
| **Financial Statements** |  |
| [Consolidated Balance Sheets](#ConsolidatedBalanceSheets_326447) | F-4 |
| [Consolidated Statements of Operations](#ConsolidatedStatementsofIncome_386026) | F-5 |
| [Consolidated Statements of Equity](#ConsolidatedStatementsofEquity_936628) | F-6 |
| [Consolidated Statements of Cash Flows](#ConsolidatedStatementsofCashFlows_849335) | F-7 |
| [Notes to Consolidated Financial Statements](#NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS_7) | F-8 – F-59 |

---

## **Table of Contents**
**Report of Independent Registered Public Accounting Firm**

To the Unitholders of

Ministry Partners Investment Company, LLC

Brea, California

#### Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Ministry Partners Investment Company, LLC and its subsidiaries (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of operations, members' equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements (collectively, the financial statements). In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

#### Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits ,we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

## **Table of Contents**

#### Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

#### Assessment of the Allowance for Credit Losses Related to the Loan Portfolio
As discussed in Note 1 and Note 4 to the consolidated financial statements, the Company's allowance for credit losses on loans was $1.1 million as of December 31, 2025, a portion of which related to the allowance for credit losses (ACL) on loans evaluated on a collective basis (the "Collective ACL"), while the other portion related to loans evaluated individually.

The Company estimates the Collective ACL using a current expected credit losses methodology which is based on relevant information about historical losses, current conditions, and reasonable and supportable forecasts of economic conditions that affect the collectability of loan balances.

The Collective ACL is a product of multiplying the Company's estimates of probability of default to the estimated amount of loss that the Company would incur in a default scenario. The Company uses historical information combined with macroeconomic variables to estimate the probability of default. The Company utilizes assumptions that incorporate a reasonable forecast of various macroeconomic variables over the remaining life of the assets. Adjustments are made to the Collective ACL to reflect certain qualitative factors that are not incorporated into the quantitative models and related estimate.

We identified the assessment of the December 31, 2025 ACL on the Company's loans as a critical audit matter. A high degree of audit effort, and subjective and complex auditor judgment was involved in the assessment due to significant measurement uncertainty. Specifically, the assessment encompassed the evaluation of the December 31, 2025 Collective ACL methodology, including the significant assumptions used to estimate the probability of default. Such significant assumptions included portfolio segmentation, risk ratings, and macroeconomic variables. The assessment also included the evaluation of the qualitative factors by portfolio class. Further, the assessment required evaluation of a specific reserve for the loans evaluated individually. In addition, auditor judgment was required to evaluate the sufficiency of audit evidence obtained.

## **Table of Contents**
The following are the primary procedures we performed to address this critical audit matter.

We evaluated the Company's process to develop the December 2025 Collective ACL on the Company's loans by testing certain sources of data, factors, and assumptions that the Company used, and considered the relevance and reliability of such data, factors, and assumptions. In addition, we:

● Evaluated the Company's collective ACL methodology for compliance with U.S. generally accepted accounting principles;

● Evaluated the selection of the underlying macroeconomic variables by comparing them to the Company's business environment and relevant industry practices;

● Determined whether the loan portfolio is segmented by similar risk characteristics by comparing to the Company's business environment;

● Performed credit file reviews on a selection of loans to assess loan characteristics or risk ratings by evaluating the financial performance of the borrower, sources of repayment, and underlying collateral;

● Evaluated the qualitative factors and the effect of those factors on the allowance for credit losses on the Company's loans compared with relevant credit risk factors and consistency with credit trends;

● Assessed the reasonableness of specific allowances on certain impaired loans;

● Evaluated the accuracy and completeness of disclosures in the consolidated financial statements.

/s/ Hutchinson and Bloodgood LLP

We have served as the Company's auditor since 2005.

Glendale, California

March 31, 2026

**Ministry Partners Investment Company, LLC and Subsidiaries**

**Consolidated Balance Sheets**

**As of December 31, 2025 and 2024**

**(dollars in thousands except unit data)**

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| **Assets:** |  |  |
| Cash and cash equivalents | $9793 | $9014 |
| Restricted cash | 1771 | 1757 |
| Certificates of deposit | 1519 | 1304 |
| Loans receivable, net of allowance for loan losses of $1,122 and $1,156 as of December 31, 2025 and 2024, respectively | 90827 | 93171 |
| Accrued interest receivable | 439 | 447 |
| Investments in joint venture | 875 | 873 |
| Other investments | 1098 | 1082 |
| Property and equipment, net | 64 | 84 |
| Foreclosed assets, net |  | 301 |
| Servicing assets | 161 | 177 |
| Other assets | 1065 | 1040 |
| Total assets | $107612 | $109250 |
| **Liabilities and members' equity** |  |  |
| **Liabilities:** |  |  |
| Lines of credit | $— | $— |
| Other secured borrowings | 6 | 6 |
| Debt certificates payable, net of debt issuance costs of $72 and $88 as of December 31, 2025 and 2024, respectively | 94438 | 95073 |
| Accrued interest payable |  | 348 |
| Other liabilities  | 1674 | 1892 |
| Total liabilities  | 96118 | 97319 |
| **Members' Equity:** |  |  |
| Series A preferred units, 1,000,000 units authorized, 117,100 units issued and outstanding at December 31, 2025 and 2024 (liquidation preference of $100 per unit); See Note 14 | 11715 | 11715 |
| Class A common units, 1,000,000 units authorized, 146,522 units issued and outstanding at December 31, 2025 and 2024; See Note 14 | 1510 | 1509 |
| Accumulated deficit | (1731) | (1293) |
| **Total members' equity**  | 11494 | 11931 |
| **Total liabilities and members' equity** | $107612 | $109250 |

---

The accompanying notes are an integral part of these consolidated financial statements.

**Ministry Partners Investment Company, LLC and Subsidiaries**

**Consolidated Statements of Operations**

**For the years ended December 31, 2025 and 2024**

**(dollars in thousands)**

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Interest income: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest on loans | $7087 | $6700 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest on interest-bearing accounts | 454 | 579 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest income | 7541 | 7279 |
| Interest expense: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other debt |  | 393 |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt certificates | 4693 | 4644 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 4693 | 5037 |
| Net interest income | 2848 | 2242 |
| Credit for loan losses | (34) | (126) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest income after credit for loan losses | 2882 | 2368 |
| Non-interest income: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Broker-dealer commissions and fees | 756 | 743 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income | 542 | 514 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest income | 1298 | 1257 |
| Non-interest expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Salaries and benefits | 2005 | 1975 |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketing and promotion | 64 | 66 |
| &nbsp;&nbsp;&nbsp;&nbsp;Office occupancy | 114 | 124 |
| &nbsp;&nbsp;&nbsp;&nbsp;Office operations and other expenses | 1547 | 1600 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreclosed assets, net | 19 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Legal and accounting | 384 | 436 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest expenses  | 4133 | 4212 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) before provision for income taxes and state LLC fees | 47 | (587) |
| &nbsp;&nbsp;Provision for income taxes and state LLC fees | 17 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | $30 | $(607) |

---

The accompanying notes are an integral part of these consolidated financial statements.

**Ministry Partners Investment Company, LLC and Subsidiaries**

**Consolidated Statements of Equity**

**For the years ended December 31, 2025 and 2024**

**(dollars in thousands)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Series A Preferred Units** | **Series A Preferred Units** | **Class A Common Units** | **Class A Common Units** | **Class A Common Units** | **Class A Common Units** |
|  | **Number ofUnits** | **Amount** | **Number ofUnits** | **Amount** | **AccumulatedDeficit** | **Total** |
| **Balance, December 31, 2023** | 117100 | $11715 | 146522 | $1509 | $(129) | $13095 |
| Net loss |  |  |  |  | (607) | (607) |
| Dividends on preferred units |  |  |  |  | (557) | (557) |
| **Balance, December 31, 2024** | 117100 | $11715 | 146522 | $1509 | $(1293) | $11931 |
| Net income |  |  |  |  | 30 | 30 |
| Dividends on preferred units |  |  |  |  | (467) | (467) |
| **Balance, December 31, 2025** | 117100 | $11715 | 146522 | $1509 | $(1730) | $11494 |

---

The accompanying notes are an integral part of these consolidated financial statements.

**Ministry Partners Investment Company, LLC and Subsidiaries**

**Consolidated Statements of Cash Flows**

**For the years ended December 31, 2025 and 2024** 

**(dollars in thousands)**

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |
| Net income (loss) | $30 | $(607) |
| Adjustments to reconcile net income (loss) to net cash used by operating activities: |  |  |
| &nbsp;&nbsp;Depreciation | 22 | 33 |
| &nbsp;&nbsp;Amortization of deferred loan fees, net | (30) | (111) |
| &nbsp;&nbsp;Amortization of debt issuance costs | 99 | 74 |
| &nbsp;&nbsp;Credit for loan losses | (34) | (126) |
| &nbsp;&nbsp;Accretion of loan discount | (11) | (17) |
| &nbsp;&nbsp;Gain on sale of loans | (12) | (96) |
| &nbsp;&nbsp;Loss on retirement of property and equipment |  | 2 |
| &nbsp;&nbsp;Gain on sale of foreclosed assets | (182) |  |
| &nbsp;&nbsp;Gain on other investments | (16) | (30) |
| &nbsp;&nbsp;Changes in: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest receivable | 8 | (15) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | 23 | 378 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest payable | (348) | (34) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | (196) | 225 |
| Net cash used by operating activities | (647) | (324) |
| CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |
| Loan purchases | (4113) | (66) |
| Loan originations | (3141) | (8721) |
| Loan sales | 1100 | 8370 |
| Loan principal collections | 8552 | 6045 |
| Purchase of certificates of deposit | (215) | (26) |
| Sale of foreclosed assets | 483 |  |
| Purchase of property and equipment | (2) | (63) |
| Net cash provided by investing activities | 2664 | 5539 |
| CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |
| Principal payments on term debt |  |  |
| Borrowings, net of repayments on lines of credit |  | (4500) |
| Net change in secured borrowings |  |  |
| Net change in debt certificates payable | (651) | (1870) |
| Debt issuance costs | (83) | (110) |
| Dividends paid on preferred units | (490) | (575) |
| Net cash used by financing activities | (1224) | (7055) |
| Net increase (decrease) in cash and restricted cash | 793 | (1840) |
| Cash, cash equivalents, and restricted cash at beginning of period | 10771 | 12611 |
| Cash, cash equivalents, and restricted cash at end of period | $11564 | $10771 |
| Supplemental disclosures of cash flow information |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest paid | $5041 | $5071 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid | 16 | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;Leased assets obtained in exchange of new operating lease liabilities | 82 | 387 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities recorded | 82 | 387 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends declared to preferred unit holders | 107 | 130 |

---

The accompanying notes are an integral part of these consolidated financial statements.

### MINISTRY PARTNERS INVESTMENT COMPANY, LLC

### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

### Note 1. Nature of Business and Summary of Significant Accounting Policies

#### Nature of Business
Throughout these notes to consolidated financial statements, we refer to Ministry Partners Investment Company, LLC and its subsidiaries as "the Company." The Company was formed in California in 1991. The Company's primary operations are financing commercial real property secured loans and providing investment services for the benefit of Christian churches, ministries, and individuals. The Company funds its operations primarily through the sale of debt certificates.

The Company's wholly-owned subsidiaries are:

● Ministry Partners Funding, LLC, a Delaware limited liability company ()"**MPF** ");

● MP Realty Services, Inc., a California corporation ()"**MP Realty** ");

● Ministry Partners Securities, LLC, a Delaware limited liability company ()"**MP Securities** "); and

● Ministry Partners for Christ, Inc., a not-for-profit Delaware corporation ()"**MPC** ").

The Company formed MPF in 2007 and then deactivated the subsidiary on November 30, 2009. In December 2014, the Company reactivated MPF to enable it to serve as collateral agent for loans held as collateral for its Secured Investment Certificates.

The Company formed MP Realty in November 2009, and obtained a license to operate as a corporate real estate broker through the California Department of Real Estate on February 23, 2010. MP Realty has conducted limited operations to date.

The Company formed MP Securities on April 26, 2010, to provide investment and financial planning solutions for individuals, churches, charitable institutions, and faith-based organizations. MP Securities acts as the selling agent for the Company's public and private placement debt certificates.

The Company formed MPC on December 28, 2018, to be used exclusively for religious and charitable purposes within the meaning of Section 501(c)(3) of the U.S. Internal Revenue Code of 1986 ("**IRC**"). MPC is a not-for-profit corporation formed and organized under Delaware law. MPC

## **Table of Contents**
makes charitable grants to Christian educational organizations, and provides accounting, consulting, and financial expertise to aid Christian ministries. On August 23, 2019, the Internal Revenue Service granted MPC tax-exempt status as a private foundation under Section 501(c)(3) of the IRC. The MPC Board of Directors approved its first charitable grants during the year ended December 31, 2020.

#### Principles of Consolidation
The consolidated financial statements include the accounts of Ministry Partners Investment Company, LLC and its wholly-owned subsidiaries. Management eliminates all significant inter-company balances and transactions in consolidation.

#### Conversion to LLC
Effective December 31, 2008, the Company converted from a corporation organized under California law to a California limited liability company. After this conversation, the separate existence of Ministry Partners Investment Corporation ceased and the entity continued by operation of law under the name Ministry Partners Investment Company, LLC. As an LLC, a group of managers provides oversight of the Company's affairs. The managers have full, exclusive, and complete discretion, power, and authority to oversee the management of Company affairs. An Operating Agreement governs the Company's management structure and governance procedures.

#### Risks and Uncertainties
Recent military conflict involving Iran, including recent hostilities between Iran and a coalition led by the United States and Israel, has created significant geopolitical uncertainty in the Middle East and globally. The situation remains fluid and could escalate further or broaden geographically, potentially resulting in additional military action, cyberattacks against U.S. or allied businesses, sanctions, trade restrictions, supply chain disruptions, or significant fluctuations in commodity prices and foreign exchange rates. Because the scope, duration, and outcome of the conflict remain uncertain, the ultimate impact on our business, financial condition, and results of operations cannot be predicted and could be material.

In addition, Russia's invasion of Ukraine, increased levels of inflation, the disruption of global supply chains, the Iran conflict's impact on global oil supplies, and uncertainty over the Federal Reserve Board's interest policies are putting strain on the U.S. economy and the U.S. consumer. While it is not possible to know the full extent of the long-term impact of these current events, the Company is disclosing potentially material factors that could impact our business of which it is aware.

## **Table of Contents**

#### Cash and Cash Equivalents
Cash equivalents include time deposits and all highly liquid debt instruments with original maturities of three months or less. The Company had demand deposits and money market deposit accounts as of December 31, 2025 and December 31, 2024.

The National Credit Union Share Insurance Fund insures a portion of the Company's cash held at credit unions and the Federal Deposit Insurance Corporation insures a portion of cash held by the Company at other financial institutions. The Company holds cash deposits that may exceed insured limits. Management does not expect to incur losses in these cash accounts.

The Company maintains cash accounts with Royal Bank of Canada Dain Rauscher ("**RBC Dain**") as part of its clearing agreement for its securities-related activities, and with the Central Registration Depository ("**CRD**") for regulatory purposes in connections with its investment advisory and securities-related business. The Company also maintains cash in an account with America's Christian Credit Union ("**ACCU**") as collateral for its secured borrowings. The Company classifies these accounts as restricted cash on its balance sheet.

#### Certificates of Deposit
Certificates of deposit include investments in certificates of deposit held at financial institutions that carry original maturities of greater than three months. The Company had $1.5 million and $1.3 million, respectively, in certificates with terms greater than three months as of December 31, 2025 and December 31, 2024.

#### Use of Estimates
The Company's creation of consolidated financial statements that conform to United States Generally Accepted Accounting Principles ("**GAAP**") requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates govern areas such as the allowance for credit losses and the fair value of financial instruments and foreclosed assets. Actual results could differ from these estimates.

#### Investments in Joint Venture
In 2016, the Company entered into a joint venture agreement to develop and sell property we acquired as part of a Deed in Lieu of Foreclosure agreement reached with one of our borrowers. The joint venture owns a property located in Santa Clarita, California.

## **Table of Contents**
The Company accounts for its investment in the joint venture using the equity method of accounting. Under this method, the Company records its proportionate share of the joint venture's net income or loss in the statement of operations.

On a periodic basis, or whenever events or circumstances arise that would necessitate analysis, management analyzes the Company's investment in the joint venture for impairment. In this analysis, management compares the carrying value of the investment to the estimated value of the underlying real property. The Company records any impairment charges as a valuation allowance against the value of the asset. Management records these valuation changes as realized gains or losses on investment on the Company's consolidated statements of operations. Management determined that the investment in the joint venture was not impaired as of December 31, 2025.

#### Other Investments
In June 2022, MP Securities purchased two ten-year fixed annuities from insurance companies. These annuities each carry unique features, including guaranteed fixed income components, variable income components, premium bonuses, and potential withdrawal charges. The Company carries these investments at cost and adjusts for guaranteed income when such income is realized. The principal balances of these annuities are guaranteed but are not insured; however, management determined that the annuities were not impaired at December 31, 2025 and December 31, 2024, and does not anticipate losses.

#### Loans Receivable
The Company reports loans that management has the intent and ability to hold for the foreseeable future at their outstanding unpaid principal balance adjusted for an allowance for loan losses, deferred loan fees and costs, and loan discounts.

#### Interest Accrual on Loans Receivable
The Company accrues loan interest income daily. Management defers loan origination fees and costs generated in making a loan. The Company amortizes these fees and costs as an adjustment to the related loan yield using the interest method or the straight-line method to approximate the interest method.

Loan discounts can arise from interest accrued and unpaid which the Company adds to loan principal balances when it modifies the loan. The Company does not accrete discounts to income on impaired loans. However, when management determines that a previously impaired loan is no longer impaired, the Company begins accreting loan discounts to interest income over the term of the modified loan. For loans purchased from third parties, loan discounts include differences between

## **Table of Contents**
the purchase price and the recorded principal balance of the loan. The Company accretes these discounts to interest income over the term of the loan using the interest method.

Management considers a loan impaired if it concludes that the collection of principal or interest according to the terms of the loan agreement is doubtful. The Company stops the accrual of interest when management determines the loan is impaired.

For loans that the Company places on non-accrual status, management reverses all uncollected accrued interest against interest income. Management accounts for the interest on these loans on the cash basis or cost-recovery method until the loan qualifies for return to accrual status. It is not until all the principal and interest amounts contractually due are brought current and future payments are reasonably assured that the Company returns a loan to accrual status.

#### Allowance for Loan Losses
The Company sets aside an allowance for loan losses by charging the provision for loan losses account on the Company's consolidated statements of operations. This charge decreases the Company's earnings. Management charges off the part of loan balances it believes it will not collect against the allowance. The Company credits subsequent recoveries, if any, to the allowance.

Loan Portfolio Segments and Classes

Management separates the loan portfolio into portfolio segments for purposes of evaluating the allowance for loan losses. A portfolio segment is defined as the level at which the Company develops and documents a systematic method for determining its allowance for loan losses. The Company segments the loan portfolio based on loan types and the underlying risk factors present in each loan type. Management periodically reviews and revises such risk factors, as it considers appropriate.

The Company's loan portfolio comprises two segments: ministry-related non-profit loans and commercial loans. The risk characteristics of the Company's portfolio segments are as follows:

Non-profit Commercial Loans: Loans made to Christian ministries are underwritten based on the cash flows and other key financial performance indicators of the borrower, other qualitative aspects of the borrower, and the value of the collateral securing the loan. Unlike for-profit commercial borrowers, the cash flows generated by these borrowers often depend on contributions rather than cash flows generated by the operation of a business. In addition, collateral values can fluctuate as many church properties have limited commercial use outside of the ministry sector.

## **Table of Contents**
For-profit Commercial Loans: Loans made to for-profit commercial borrowers are underwritten based on the cash flows and other key financial performance indicators of the borrower and its guarantor, if applicable, as well as the value of the collateral securing the loan. Repayment of these loans is generally dependent on the success of the business operated on the property being used to secure the loan.

The Company has also altered the way it segregates its segments into classes to more accurately apply the quantitative assumptions and qualitative risk factors necessary to properly calculate the allowance under the expected credit loss methodology required by CECL. In conjunction with the CECL changes adopted effective as of January 1, 2023, the Company has segregated its portfolio into the following classes:

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| | |
|:---|:---|
| Management has segregated the loan portfolio into the following portfolio classes:<br>|  |
| **Loan Class** | **Class Description** |
| *Wholly Owned First Collateral Position, Amortizing* | Wholly owned loans and the retained portion of loans originated by the Company and sold for which the Company possesses a senior lien on the collateral underlying the loan. This class contains only those loans that amortize based on an agreed upon contractual principal and interest payments. |
| *Wholly Owned Other Collateral Position, Amortizing* | Wholly owned loans and the retained portion of loans originated by the Company and sold for which the Company possesses a lien on the underlying collateral that is superseded by another lien on the same collateral or that is secured by collateral other than real property. This class contains only those loans that amortize based on an agreed upon contractual principal and interest payments. These loans present higher credit risk than loans for which the Company possesses a senior lien due to the increased risk of loss should the loan default. |
| *Wholly Owned Unsecured, Amortizing* | Wholly owned loans and the retained portion of loans originated by the Company and sold for which the Company does not possess an interest in collateral securing the loan. This class contains only those loans that amortize based on an agreed upon contractual principal and interest payments. These loans present higher credit risk than loans for which the Company possesses a lien due to the increased risk of loss should the loan default. |
| *Wholly Owned Other Collateral Position, Lines of Credit* | Wholly owned loans and the retained portion of loans originated by the Company and sold for which the Company possesses a lien on the underlying collateral that is superseded by another lien on the same collateral or that is secured by collateral other than real property. This class contains only line of credit agreements. |
| *Wholly Owned Unsecured, Lines of Credit* | Wholly owned loans and the retained portion of loans originated by the Company and sold for which the Company does not possess an interest in collateral securing the loan. This class contains only line of credit agreements. |
| *Wholly Owned, Construction* | Wholly owned loans and the retained portion of loans originated by the Company and sold which have been made for the purpose of constructing real property to be used for the borrower's ministry. These loans present different risks due to the nature of construction projects and the underlying collateral. |
| *Participations First Collateral Position* | Participated loans purchased from another financial entity for which the Company possesses a senior lien on the collateral underlying the loan. Loan participations purchased may present higher credit risk than wholly owned loans because disposition and direction of actions regarding the management and collection of the loans must be coordinated and negotiated with the other participants, whose best interests regarding the loan may not align with those of the Company. |
| *Participations Construction* | Loan participations purchased in loans made for the purpose of constructing commercial real property and where the collateral securing the property comprises the construction project. These loans present different risks due to the nature of construction projects and the underlying collateral. |

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Finally, the company segregates each class by risk rating, as loans determined to have lower credit quality present different and greater risk than those of higher credit quality. The Company's credit quality grading system is described in detail below in the section titled "**Credit Quality Indicators**."

Allowance for Loan Loss Evaluation

The Company adopted CECL on January 1, 2023. CECL replaces the previous methodology for measuring credit losses, which involved estimated allowances for current known and inherent losses within the portfolio. The CECL methodology requires the Company to implement an expected loss model for measuring credit losses, which encompasses allowances for losses expected to be incurred over the life of the borrowings in its portfolio. The allowance for loan loss model used under CECL requires the measurement of all expected credit losses for financial assets at amortized cost, as well as certain off-balance sheet credit exposures based on historical experiences, current conditions, and reasonable and supportable forecasts.

In accordance with FASB Accounting Standards Update (ASU) No. 2019-04, *Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments*, the Company has made the accounting policy election not to measure an allowance for credit losses on accrued interest receivable amounts. This is allowable if the Company writes off uncollectible accrued interest receivable when a loan is 90 days past due or interest is otherwise considered uncollectible, which is its current policy and practice. The Company has also elected to continue to present accrued interest on its loans receivable separately on its consolidated balance sheet.

CECL Model

The CECL methodology does not prescribe any specific model for determining expected losses. Management has determined that, due to the nature of the borrowings in its portfolio and the nature of the collateral securing a significant portion of its borrowings, it would use a "probability of default" calculation as the basis for estimating expected losses. This methodology uses information about the borrower, the loan, and the collateral securing the loan to determine a borrower's ability to meet the contractual requirements of the loan agreement. It then applies a calculated probability that the borrower will default to the estimated amount of loss the Company would incur in a default scenario. To perform this calculation, the methodology requires management to collect and analyze certain data for the loans in its portfolio including:

● the value of collateral securing the loan, as supported by third-party appraisals or other valuations;

● adjustments to the collateral value related to geographical and economic trends, and estimated costs to sell; and

● the borrower's ability to meet its contractual obligations as determined by financial information collected regularly from borrowers.

As under the previous methodology, the allowance consists of collectively reviewed and specifically reviewed components. The collectively reviewed component covers non-classified loans. All loans included in the collectively reviewed pool are subject to the probability of default calculation described above. In addition, management has determined that there are qualitative factors affecting expected credit losses for which the probability of default model cannot account. These qualitative factors represent significant issues that management considers likely to cause estimated credit losses associated with the Company's existing portfolio to differ from the probability of default calculation. These factors are applied in varying degrees depending on a loan's segment, class, and credit quality. Management adjusts these factors on an on-going basis, some of which include:

● changes in national, regional, and local economic and industry conditions that affect the collectability of the portfolio;

● changes in the volume and severity of past due loans, the volume of non-accrual loans, and the volume and severity of adversely classified loans;

● changes in the value of collateral, including the limitations of using commercial price indices to adjust collateral value;

● the inherent risk in borrowings with high loan-to-value figures; and

● broad trends in the Christian church industry in which the Company primarily lends.

Loans that management has classified as non-performing and impaired receive a specific reserve. For such loans, an allowance is established when the carrying value of that loan is higher than the amount management expects to collect. Management uses multiple approaches to determine the amount the Company expects to collect. These include the discounted cash flow method, using the loan's underlying collateral value reduced by expected selling costs, or using the observable market price of the impaired loan.

Specifically Reviewed

The Company reviews its loan portfolio monthly by examining several data points. This process includes reviewing delinquency reports, any new information related to the financial condition of its borrowers, and any new appraisal or other collateral valuation. Throughout this process, the Company identifies potential impaired loans. Management generally deems a loan is impaired when current facts and circumstances indicate that it is probable a borrower will be unable to make payments according to the loan agreement. If management has not already deemed a loan impaired, it will classify the loan as non-accrual when it becomes 90 days or more past due. All loans in the loan portfolio are subject to impairment analysis. The Company monitors impaired loans on an ongoing basis as part of management's loan review and work out process.

Any loans that management has determined are non-performing and impaired are individually analyzed for potential losses. These loans include non-accrual loans, loans 90 days or more past due and still accruing, non-performing modified loans, and loans where the borrowers have defaulted on contractual terms of their loan agreement.

● Non-accrual loans are loans on which management has discontinued interest accruals.

● Modified loans are loans in which the Company has granted the borrower a concession due to financial distress. Concessions are usually a reduction of the interest rate or a change in the original repayment terms.

● Loans that have defaulted on other contractual terms could include loans where the borrower has failed to provide required financial information, has violated a covenant, or has otherwise failed to comply with the terms of the loan agreement.

Management considers several factors when determining impairment status. These factors include the loan's payment status, the value of any secured collateral, and the probability of collecting scheduled payments when due. Management generally does not classify loans that experience minor payment delays or shortfalls as impaired. Management determines the significance of payment delays or shortfalls on a case-by-case basis, taking into consideration all the circumstances surrounding the loan and the borrower. These circumstances include the length and reasons for the delay, the borrower's payment history, and the amount of the shortfall in relation to the principal and interest owed.

Management measures impairment on a loan-by-loan basis using one of three methods:

● the present value of expected future cash flows discounted at the loan's effective interest rate;

● the obtainable market price; or

● the fair value of the collateral if the loan is collateral-dependent.

Loan Modifications

A loan modification is a loan for which the Company, for reasons related to a borrower's financial difficulties, grants a concession to a borrower that the Company would not otherwise consider. A modification of a loan usually involves an interest rate reduction, extension of the maturity date, payment reduction, or reduction of accrued interest owed on the loan on a contingent or absolute basis.

Management considers loans that it renews at below-market terms to be loan modifications if the below-market terms represent a concession due to the borrower's troubled financial condition. The Company classifies loan modifications as impaired loans. For the loans that are not considered to be collateral-dependent, management measures loan modifications at the present value of estimated future cash flows using the loan's effective rate prior to the loan's initial modification. The Company reports the change in the present value of cash flows related to the passage of time as interest income. If management considers the loan to be collateral-dependent, impairment is measured based on the fair value of the collateral.

In accordance with industry standards, the Company classifies a loan as impaired if management has modified it as part of a loan modification. However, loan modifications, upon meeting certain performance conditions, are eligible to receive non-classified loan ratings (pass or watch) and to be moved out of non-accrual status. These loans continue to be classified as impaired loans but not necessarily as non-accrual or collateral-dependent loans. Modified loans can be included in the collectively reviewed pool of loans if they return to performing status.

Loan Charge-offs

Management charges off loans or portions thereof when it determines the loans or portions of the loans are uncollectible. The Company evaluates collectability periodically on all loans classified as "Loans of Lesser Quality." Key factors management uses in assessing a loan's collectability are the financial condition of the borrower, the value of any secured collateral, and the terms of any workout agreement between the Company and the borrower. In workout situations, the Company charges off the amount deemed uncollectible due to the terms of the workout, the inability of the borrower to make agreed upon payments, and the value of the collateral securing the loan.

Credit Quality Indicators

The Company has established a loan grading system to assist its management in analyzing and monitoring the loan portfolio. The Company classifies loans it considers lesser quality ("**classified loans**") as watch, special mention, substandard, doubtful, or loss assets. The loan grading system is as follows:

Pass:

The borrower has sufficient cash to fund debt services. The borrower may be able to obtain similar financing from other lenders with comparable terms. The risk of default is considered low.

Watch:

These loans exhibit potential or developing weaknesses that deserve extra attention from credit management personnel. If the developing weakness is not corrected or mitigated, there may be deterioration in the ability of the borrower to repay the debt in the future. Management must report loans graded Watch to executive management and the Board of Managers ("**Board**"). The potential for loss under adverse circumstances is elevated, but not foreseeable. Watch loans are considered pass loans.

Special mention:

These credit facilities exhibit potential or actual weaknesses that present a higher potential for loss under adverse circumstances and deserve management's close attention. If uncorrected, these weaknesses may result in deterioration of the repayment prospects for the loan at some future date.

Substandard:

Management considers loans and other credit extensions bearing this grade to be inadequately protected by the current net worth and debt service capacity of the borrower or of any pledged collateral. These obligations, even if apparently protected by collateral value, have well-defined weaknesses related to adverse financial, managerial, economic, ministry, or environmental conditions which have clearly jeopardized repayment of principal and interest as originally intended. Furthermore, there is the possibility that some future loss will be sustained if such weaknesses are not corrected.

Doubtful:

This classification consists of loans that display the properties of substandard loans with the added characteristic that the severity of the weaknesses makes collection or liquidation in full highly questionable or improbable based upon currently existing facts, conditions, and values. The probability of some loss is very high, but because of certain important and reasonably specific factors, the amount of loss cannot be exactly determined. Such pending factors could include a merger or liquidation, additional capital injection, refinancing plans, or perfection of liens on additional collateral.

Loss:

Loans in this classification are considered uncollectible and cannot be justified as a viable asset. This classification does not mean the loan has absolutely no recovery value, but that it is neither practical nor desirable to defer writing off this loan even though partial recovery may be obtained in the future.

#### Revenue Recognition
The Company recognizes two primary types of revenue: interest income and non-interest income.

#### Interest Income
The Company's principal source of revenue is interest income from loans, which is not within the scope of ASU 2014-09, Revenue from Contracts with Customers and all subsequent amendments to the ASU (collectively, "**ASC 606**"). Refer to the discussion in "Loans Receivable" above to understand the Company's recognition of interest income.

#### Non-interest Income
Non-interest income includes revenue from various types of transactions and services provided to customers. Contracts with customers can include multiple services, which are accounted for as separate "performance obligations" if they are determined to be distinct. Our performance obligations to our customers are generally satisfied when we transfer the promised good or service to our customer, either at a point in time or over time. Revenue from a performance obligation transferred at a point in time is recognized at the time that the customer obtains control over the promised good or service. Revenue from our performance obligations satisfied over time are recognized in a manner that depicts our performance in transferring control of the good or service, which is generally measured based on time elapsed, as our customers simultaneously receive and consume the benefit of our services as they are provided.

Payment for the majority of our services is variable consideration, as the amount of revenues we expect to receive is subject to factors outside of our control, including market conditions. Variable consideration is only included in revenue when amounts are not subject to significant reversal, which is generally when uncertainty around the amount of revenue to be received is resolved.

Wealth advisory fees

Generally, management recognizes wealth advisory fees over time as the Company renders services to its clients. The Company receives these fees either based on a percentage of the market value of the assets under management, or as a fixed fee based on the services the Company provides to the client. The Company's delivery of these services represents its related performance obligations. The Company typically collects the wealth advisory fees at the beginning of each quarter from the client's account. Management recognizes these fees ratably over the related billing period as the Company fulfills its performance obligation. In addition, management recognizes any commissions or referral fees paid related to this revenue ratably over the related billing period as the Company fulfills its performance obligation.

## **Table of Contents**
Investment brokerage fees

Investment brokerage fees arise from the selling, distribution, and trade execution services. The Company's execution of these services fulfills its related performance obligations.

The Company also offers sales and distribution services and earns commissions through the sale of annuity and mutual fund products. The Company acts as an agent in these transactions and recognizes revenue at a point in time when the customer executes a contract with a product carrier. The Company may also receive trailing commissions and 12b-1 fees related to mutual fund and annuity products. Management recognizes this revenue in the period when it is earned, estimating the revenue, if necessary, based on the balance of the investment and the commission rate on the product.

The Company earns and recognizes trade execution commissions on the trade date, which is when the Company fulfills its performance obligation. Payment for the trade execution is due on the settlement date.

Lending fees

Lending fees represent charges earned for services we provide as part of the lending process, such as late charges, servicing fees, and documentation fees. The Company recognizes late charges as earned when they are paid. The Company recognizes revenue on other lending fees in the period in which the Company has performed the service.

Gains on sales of loans receivable

From time to time, the Company sells participation interests in loans receivable that it originates. Upon completion of the loan sale, the Company recognizes a gain based on certain factors including the maturity date of the loan, the percentage of the loan sold and retained, and the servicing rate charged to the participant on the sold portion.

Gains on debt extinguishment

Gains on debt extinguishment arise from agreements reached with the Company's lenders to reduce the principal amount on outstanding debt. The amount of the gain is determined by the difference between the cash paid and the amount of principal and interest that is relieved as stipulated by the agreement.

Charitable contributions

Charitable contributions include amounts that were donated by a not-for-profit charitable ministry to the Company's not-for-profit subsidiary, MPC. This revenue comprises donations analyzed by

management and determined to be unconditional, non-exchange transactions. Contributions are measured at their fair value at the date of contribution. All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. Amounts received that are designated for future periods or restricted by the donor for specific purposes are reported as carrying donor restrictions. The $1.7 million in charitable contributions recognized during 2023 were permanently restricted by the donor as part of a designated fund agreement that allows for limited annual distributions. These funds are included in the restricted net assets of MPC and are presented on the balance sheet as part of retained earnings.

Gains/losses on sales of foreclosed assets

The Company records a gain or loss from the sale of foreclosed assets when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of a foreclosed asset to the buyer, the Company assesses whether the buyer is committed to perform their obligation under the contract and whether collectability of the transaction price is probable, among other factors. Once these criteria are met, the foreclosed asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present.

Other non-interest income

Other non-interest income includes fees earned based on service contracts the Company has entered into with credit unions. The Company recognizes the revenue monthly based on the terms of the contracts, which require monthly payments for services the Company performs. Other non-interest income also includes realized income and gains on other investments.

#### Foreclosed Assets
Management records assets acquired through foreclosure or other proceedings at fair market value less estimated costs of disposal. Management determines the fair value at the date of foreclosure, which establishes a new cost for the asset. After foreclosure, the Company carries the asset at the lower of cost or fair value, less estimated costs of disposal. Management evaluates these real estate assets regularly to ensure that the asset's fair value supports the recorded amount is. If necessary, management also ensures that valuation allowances reduce the carrying amount to fair value less estimated costs of disposal. Revenue and expense from the operation of the Company's foreclosed assets and changes in the valuation allowance are included in net expenses from foreclosed assets. When the Company sells the foreclosed property, it recognizes a gain or loss on the sale equal to the difference between the net sales proceeds received and the carrying amount of the property.

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#### Transfers of Financial Assets
Management accounts for transfers of financial assets as sales when the Company has surrendered control over the asset. Management deems the Company has surrendered control over transferred assets when:

● the assets have been isolated from the Company;

● the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred asset; and

● the Company does not maintain effective control over the transferred asset through an agreement to repurchase it before its maturity.

The Company, from time to time, sells participation interests in loans it has originated or acquired. To recognize the transfer of a portion of a financial asset as a sale, the transferred portion, and any portion that the transferor continues to hold must represent a participating interest. In addition, the transfer of the participating interest must meet the conditions for surrender of control. To qualify as a participating interest:

● each portion of a financial asset must represent a proportionate ownership interest in an entire financial asset;

● from the date of transfer, all cash flows received from the entire financial asset must be divided proportionately among the participating interest holders in an amount equal to their respective share of ownership;

● the transfer must be made on a non-recourse basis (other than standard representations and warranties made under the loan participation sale agreement);

● the transfer may not be subordinate to any other participating interest holder; and

● no party has the right to pledge or exchange the entire financial asset.

If the transaction does not meet either the participating interest or surrender of control criteria, management accounts for it as a secured borrowing arrangement.

Under some circumstances, when the Company sells a participation in a wholly owned loan receivable that it services, it retains loan-servicing rights, and records a servicing asset that is initially measured at fair value. As quoted market prices are generally not available for these assets, the Company estimates fair value based on the present value of future expected cash flows associated with the loan receivable. The Company amortizes servicing assets over the life of the

## **Table of Contents**
associated receivable using the interest method. Any gain or loss recognized on the sale of a loan receivable depends in part on both the previous carrying amount of the financial asset involved in the sale, allocated between the asset sold and the interest that continues to be held by the Company based on its relative fair value at the date of transfer, and the proceeds received.

#### Property and Equipment
The Company states its furniture, fixtures, equipment, and leasehold improvements at cost, less accumulated depreciation and amortization. Management computes depreciation on a straight-line basis over the estimated useful lives of the assets. The useful lives of the Company's assets range from three to seven years.

#### Debt Issuance Costs
The Company's debt consists of borrowings from financial institutions and obligations to investors incurred through the sale of investor debt certificates. Management presents debt net of debt issuance costs and amortizes debt issuance costs into interest expense over the contractual terms of the debt using the straight-line method.

#### Employee Benefit Plans
The Company records contributions to the qualified employee retirement plan as compensation cost in the period incurred. The Company has also entered into a Supplemental Executive Retirement Plan (the "**SERP**") with its former President and Chief Executive Officer, Joseph W. Turner, Jr. All the payments associated with the SERP vested prior to Mr. Turner's retirement in December 2023 and are recognized as payable on the balance sheet.

#### Leases
We recognize right-of-use ("**ROU**") assets and lease liabilities on the balance sheet for leases with lease terms longer than 12 months. The recognition, measurement and presentation of lease expenses and cash flows depend on the lease classification as a finance or operating lease.

The Company has operating leases for real estate and a vehicle. Its leases have remaining lease terms of up to five years, including the lease agreement entered into in February 2024 (see Note 21, Subsequent Events). Our real estate lease agreements may include renewal or termination options for varying periods that are generally at our discretion. In our lease term, we only include those periods related to renewal options we are reasonably certain to exercise. However, we generally do not include these renewal options as we are not reasonably certain to renew at the lease commencement date. This determination is based on our consideration of certain economic, strategic, and other factors that we evaluate at the lease commencement date and reevaluate throughout the lease term.

## **Table of Contents**
Some leases also include options to terminate the leases and we only include those periods beyond the termination date if we are reasonably certain not to exercise the termination option.

Some leasing arrangements require variable payments that are dependent on usage or may vary for other reasons, such as payments for insurance and tax payments. The variable part of lease payments is not included in our ROU assets or lease liabilities. Rather, variable payments, other than those dependent upon an index or rate, are expensed when the obligation for those payments is incurred and are included in lease expenses recorded in selling and administrative expenses on the Consolidated Statements of Operations.

If any of the lease agreements have both lease and non-lease components, we treat those as a single lease component for all underlying asset classes. Accordingly, all expenses associated with a lease contract are accounted for as lease expenses.

Leases with a term of 12 months or less are not recognized on the balance sheet, but rather expensed on a straight-line basis over the lease term.

#### Income Taxes
The Company has elected to be treated as a partnership for income tax purposes. Therefore, the Company passes through its income and expenses to its members for tax reporting purposes.

Tesoro Hills, LLC, is a joint venture in which the Company has an investment. Tesoro Hills, according to its operating agreement, has elected to be treated as a partnership for income tax purposes.

The Company and MP Securities are subject to a California LLC fee.

The Company uses a recognition threshold and a measurement attribute for the consolidated financial statement recognition and measurement of a tax position taken in a tax return. The Company recognizes benefits from tax positions in the consolidated financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold are recognized in the first subsequent financial reporting period in which that threshold is met. Management derecognizes previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold in the first subsequent financial reporting period in which that threshold is no longer met.

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#### New Accounting Guidance

#### Recently Adopted Accounting Standards
The Company adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, effective for the annual period beginning January 1, 2025. The amendments primarily enhance the transparency of income tax disclosures, including additional disaggregation of income taxes paid (net of refunds received) by federal, state, and foreign jurisdictions and further disaggregation for significant jurisdictions, as well as enhanced effective tax rate reconciliation disclosures, consistent with the requirements of ASC 740, including ASC 740-10-50 and ASC 740-10-50-12A, and related cash flow disclosure guidance in ASC 230-10-50-2A. The adoption of ASU 2023-09 did not have a material impact on the Company's consolidated financial statements.

The Company adopted ASU 2025-02, Liabilities (Topic 405): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 122, effective for the annual period beginning January 1, 2025. The amendments update certain SEC paragraphs within ASC 405 related to the application of SEC Staff Accounting Bulletin No. 122 and did not change the Company's accounting policies for liabilities under ASC 405. The adoption of ASU 2025-02 did not have a material impact on the Company's consolidated financial statements.

### Note 2. Pledged Cash and Restricted Cash
Under the terms of its debt agreements, the Company can pledge cash as collateral for its borrowings. At December 31, 2025 and December 31, 2024, the Company did not pledge cash for its term-debt or lines of credit. At December 31, 2025 and December 31, 2024, the Company had $6 thousand in cash pledged as collateral for its secured borrowings. See Note 3: Related Party Transactions for additional details. This amount is included in restricted cash in the table below.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position to the amounts reported in the statements of cash flows (dollars in thousands):

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Cash and cash equivalents | $9793 | $9014 |
| Restricted cash | 1771 | 1757 |
| Total cash, cash equivalents, and restricted cash shown in the statements of cash flows | $11564 | $10771 |

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Restricted cash includes $1.7 million donated to MPC as permanently restricted funds under a designated fund agreement. The agreement allows for limited annual distributions of the funds. Other amounts included in restricted cash represent those required to be set aside in the CRD

## **Table of Contents**
account with Financial Industry Regulation Authority ("FINRA"), funds the Company has deposited with RBC Dain as clearing deposits, and the $6 thousand in cash maintained in an account with ACCU as collateral for the Company's secured borrowings as described above. The Company may only use the CRD funds for certain fees charged by FINRA. These fees are to maintain the membership status of the Company or are related to the licensing of registered and associated persons of the Company.

**Note 3. Related Party Transactions**

This disclosure describes the nature, description, and amounts of related party transactions.

#### Transactions with Subsidiaries
The Company has entered into several agreements with its subsidiary, MP Securities. The Company eliminates the income and expense related to these agreements in the consolidated financial statements.

#### Related Party Transaction Policy
The Board has adopted a Related Party Transaction Policy to assist in evaluating transactions the Company may enter into with a related party. Under this policy, a majority of the members of the Company's Board and majority of its independent Board members must approve a material transaction that it enters into with a related party.

#### Related Party Transactions with Owners
The Company has entered into several transactions with its equity owners. The following table (dollars in thousands) describes the nature and dollar amounts of the related party transactions with these owners:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| **Balance Sheet Items** |  |  |
| &nbsp;&nbsp;Cash and cash equivalents held at related parties | $5698 | $5153 |
| &nbsp;&nbsp;Certificates of deposit held at related parties |  |  |
| &nbsp;&nbsp;Lines of credit payable to related parties |  |  |
| **Off Balance Sheet Items** |  |  |
| &nbsp;&nbsp;Loans serviced for the related parties | $5826 | $5977 |

---

## **Table of Contents**

---

| | | |
|:---|:---|:---|
|  | **Year ended** | **Year ended** |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| **Income Statement Items** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Detail |  |  |
| &nbsp;&nbsp;Interest income on loans purchased from related parties | $— | $83 |
| &nbsp;&nbsp;Interest income on interest-bearing accounts held at related parties | 160 | 153 |
| &nbsp;&nbsp;Interest expense on other debt due to related parties |  | 200 |
| &nbsp;&nbsp;Networking fees paid to related parties for referring business to the Company | 96 | 118 |
| &nbsp;&nbsp;Income from broker services provided to related parties | 22 | 30 |

---

#### Related Party Transactions with Non-Owner Organizations
The Company has entered into several transactions with Kane County Teacher's Credit Union ("**KCT**"), whose former Chief Executive Officer and President, Mr. R. Michael Lee, serves as our Chairman of the Board and therefore possessed the ability to significantly influence the management of both parties. On April 3, 2024, KCT and Consumers Credit Union announced their intent to merge. This merger transaction was completed on December 1, 2024. Mr. Lee no longer holds a position with Consumers Credit Union. The Company does not consider Consumers Credit Union a related party, and therefore no related party items are disclosed as of and for the year ended December 31, 2025.

The following table describes the nature and dollar amounts of the related party transactions with KCT through December 31, 2024:

---

| | |
|:---|:---|
|  | **December 31,** |
| **Balance Sheet Items** | **2024** |
| &nbsp;&nbsp;Cash and cash equivalents held at related parties | $— |
| &nbsp;&nbsp;Certificates of deposit held at related parties | 1305 |
| **Off Balance Sheet Items** |  |
| &nbsp;&nbsp;Loans serviced for the related parties | $3386 |

---

---

| | |
|:---|:---|
|  | **Year ended**<br>**December 31,** |
|  | **2024** |
| **Income Statement Items** |  |
| &nbsp;&nbsp;Interest on interest-bearing accounts held at related parties | $61 |
| &nbsp;&nbsp;Interest expense on other debt due related parties | 193 |
| &nbsp;&nbsp;Networking fees paid to related parties for referring business to the Company | 212 |

---

#### Related Party Transactions with Management
From time to time, the Company's Board and members of its executive management team have purchased debt certificates from the Company or have purchased investment products through MP

## **Table of Contents**
Securities. The following table (dollars in thousands) describes the nature and dollar amounts of these related party transactions with its management:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| Outstanding public offering debt certificates payable to officers and managers | $2278 | $2276 |

---

**Note 4. Loans Receivable and Allowance for Loan Losses**

The Company's loan portfolio comprises two segments, Non-profit commercial loans to Christian churches and ministries, and for-profit commercial loans. See "Note 1 – Loan Portfolio Segments and Classes" to Part I "Financial Information" of this Report. The loans fall into eight classes:

● wholly owned amortizing loans for which the Company possesses the first collateral position;

● wholly owned amortizing loans for which the Company possesses security other than a first collateral position on real property;

● wholly owned amortizing loans that are unsecured;

● wholly owned lines of credit for which the Company possesses security other than a first collateral position on real property;

● wholly owned lines of credit that are unsecured;

● wholly owned construction loans

● participated amortizing loans purchased for which the Company possesses the first collateral position; and

● participated construction loans purchased.

The Company primarily makes or purchases participations in loans that are made to Christian non-profit organizations and churches. The purpose of these loans is to purchase, construct, or improve facilities. Occasionally the company originates for-profit commercial loans to meet the Company's revenue and yield goals, as well as to diversify the Company's loan portfolio. Maturities on the loan portfolio extend through 2038. The loan portfolio had a weighted average rate of 6.97% and 6.88% as of December 31, 2025 and December 31, 2024, respectively. Loans receivable at December 31,

2025 and December 31, 2024, include $6 thousand in loan participations transferred under a recourse agreement.

The table below is a summary of the Company's mortgage loans owned (dollars in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| **Non-profit commercial loans:** |  |  |
| &nbsp;&nbsp;Real estate secured | $83651 | $83912 |
| &nbsp;&nbsp;Construction | 385 |  |
| &nbsp;&nbsp;Unsecured | 325 | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-profit commercial loans: | 84361 | 83960 |
| **For-profit commercial loans:** |  |  |
| &nbsp;&nbsp;Real estate secured | 7915 | 10678 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total loans | 92276 | 94638 |
| Deferred loan fees, net | (106) | (100) |
| Loan discount | (221) | (211) |
| Allowance for loan losses | (1122) | (1156) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans, net | $90827 | $93171 |

---

#### Allowance for Loan Losses
Management believes it has properly calculated the allowance for loan losses using CECL methodology as of December 31, 2025.

The following table shows the changes in the allowance for loan losses for the years ended years ended December 31, 2025 and 2024 (dollars in thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| Segment: | **Non-profit Commercial**  | **For-profit Commercial** | **Total** | **Non-profit Commercial**  | **For-profit Commercial** | **Total** |
| Balance, beginning of period | $1119 | $37 | $1156 | $1471 | $30 | $1501 |
| &nbsp;&nbsp;Provision (credit) for loan loss | (19) | (15) | (34) | (133) | 7 | (126) |
| &nbsp;&nbsp;Charge-offs |  |  |  | (219) |  | (219) |
| &nbsp;&nbsp;Recoveries |  |  |  |  |  |  |
| Balance, end of period | $1100 | $22 | $1122 | $1119 | $37 | $1156 |

---

## **Table of Contents**
The table below presents loans by portfolio segment and the related allowance for loan losses. In addition, the table segregates loans and the allowance for loan losses by impairment methodology (dollars in thousands):

---

| | | |
|:---|:---|:---|
|  | ***Loans and Allowancefor Loan Losses (by segment)*** | ***Loans and Allowancefor Loan Losses (by segment)*** |
|  | ***As of***  | ***As of***  |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| **Non-profit Commercial Loans:** |  |  |
| &nbsp;&nbsp;Individually evaluated for impairment | $14965 | $14855 |
| &nbsp;&nbsp;Collectively evaluated for impairment  | 69396 | 69105 |
| Total Non-profit Commercial Loans | 84361 | 83960 |
| **For-profit Commercial Loans:** |  |  |
| &nbsp;&nbsp;Individually evaluated for impairment |  |  |
| &nbsp;&nbsp;Collectively evaluated for impairment  | 7915 | 10678 |
| Total For-profit Commercial Loans | 7915 | 10678 |
| Total Balance | $92276 | $94638 |
| Allowance for loan losses: |  |  |
| **Non-profit Commercial Loans:** |  |  |
| &nbsp;&nbsp;Individually evaluated for impairment | $589 | $463 |
| &nbsp;&nbsp;Collectively evaluated for impairment  | 511 | 656 |
| Total Non-profit Commercial Loan Allowance | 1100 | 1119 |
| **For-profit Commercial Loans:** |  |  |
| &nbsp;&nbsp;Individually evaluated for impairment |  |  |
| &nbsp;&nbsp;Collectively evaluated for impairment  | 22 | 37 |
| Total For-profit Commercial Loan Allowance | 22 | 37 |
| Balance | $1122 | $1156 |

---

The Company has established a loan grading system to assist management in their analysis and supervision of the loan portfolio. The following tables summarize the credit quality indicators by loan class (dollars in thousands):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| ***Credit Quality Indicators (by class)*** | ***Credit Quality Indicators (by class)*** | ***Credit Quality Indicators (by class)*** | ***Credit Quality Indicators (by class)*** | ***Credit Quality Indicators (by class)*** | ***Credit Quality Indicators (by class)*** | ***Credit Quality Indicators (by class)*** | ***Credit Quality Indicators (by class)*** |
| ***As of December 31, 2025*** | ***As of December 31, 2025*** | ***As of December 31, 2025*** | ***As of December 31, 2025*** | ***As of December 31, 2025*** | ***As of December 31, 2025*** | ***As of December 31, 2025*** | ***As of December 31, 2025*** |
|  | **Pass** | **Watch** | **Special Mention** | **Substandard** | **Doubtful** | **Loss** | **Total** |
| **Non-profit Commercial Loans** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Wholly Owned First Amortizing | $48590 | $16525 | $5408 | $8248 | $— | $— | $78771 |
| &nbsp;&nbsp;Wholly Owned Other Amortizing | 1307 |  |  | 1309 |  |  | 2616 |
| &nbsp;&nbsp;Wholly Owned Unsecured Amortizing | 12 | 25 |  |  |  |  | 37 |
| &nbsp;&nbsp;Wholly Owned Unsecured LOC | 300 |  |  |  |  |  | 300 |
| &nbsp;&nbsp;Wholly Owned Construction | 385 |  |  |  |  |  | 385 |
| &nbsp;&nbsp;Participation First | 1180 |  |  |  |  |  | 1180 |
| &nbsp;&nbsp;Participation Construction | 1072 |  |  |  |  |  | 1072 |
| Total Non-profit Commercial Loans | 52846 | 16550 | 5408 | 9557 |  |  | 84361 |
| **For-profit Commercial Loans** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Wholly Owned First Amortizing | 4164 | 807 |  |  |  |  | 4971 |
| &nbsp;&nbsp;Participation First | 1339 | 129 |  |  |  |  | 1468 |
| &nbsp;&nbsp;Participation Construction | 1476 |  |  |  |  |  | 1476 |
| Total For-profit Commercial Loans | 6979 | 936 |  |  |  |  | 7915 |
| Total Loans | $59825 | $17486 | $5408 | $9557 | $— | $— | $92276 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| ***Credit Quality Indicators (by class)*** | ***Credit Quality Indicators (by class)*** | ***Credit Quality Indicators (by class)*** | ***Credit Quality Indicators (by class)*** | ***Credit Quality Indicators (by class)*** | ***Credit Quality Indicators (by class)*** | ***Credit Quality Indicators (by class)*** | ***Credit Quality Indicators (by class)*** |
| ***As of December 31, 2024*** | ***As of December 31, 2024*** | ***As of December 31, 2024*** | ***As of December 31, 2024*** | ***As of December 31, 2024*** | ***As of December 31, 2024*** | ***As of December 31, 2024*** | ***As of December 31, 2024*** |
|  | **Pass** | **Watch** | **Special Mention** | **Substandard** | **Doubtful** | **Loss** | **Total** |
| **Non-profit Commercial Loans** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Wholly Owned First Amortizing | $41686 | $24565 | $5408 | $8042 | $— | $— | $79701 |
| &nbsp;&nbsp;Wholly Owned Other Amortizing | 1357 |  |  | 1405 |  |  | 2762 |
| &nbsp;&nbsp;Wholly Owned Unsecured Amortizing | 19 | 27 |  |  |  |  | 46 |
| &nbsp;&nbsp;Wholly Owned Unsecured LOC | 22 |  |  |  |  |  | 22 |
| &nbsp;&nbsp;Wholly Owned Construction | 188 |  |  |  |  |  | 188 |
| &nbsp;&nbsp;Participation First | 1241 |  |  |  |  |  | 1241 |
| Total Non-profit Commercial Loans | 44513 | 24592 | 5408 | 9447 |  |  | 83960 |
| **For-profit Commercial Loans** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Wholly Owned First Amortizing | 6741 | 816 |  |  |  |  | 7557 |
| &nbsp;&nbsp;Participation First | 1497 | 130 |  |  |  |  | 1627 |
| &nbsp;&nbsp;Participation Construction | 1494 |  |  |  |  |  | 1494 |
| Total For-profit Commercial Loans | 9732 | 946 |  |  |  |  | 10678 |
| Total Loans | $54245 | $25538 | $5408 | $9447 | $— | $— | $94638 |

---

The following table sets forth certain information with respect to the Company's loan portfolio delinquencies by loan class and amount (dollars in thousands):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| ***Age Analysis of Past Due Loans (by class)*** | ***Age Analysis of Past Due Loans (by class)*** | ***Age Analysis of Past Due Loans (by class)*** | ***Age Analysis of Past Due Loans (by class)*** | ***Age Analysis of Past Due Loans (by class)*** | ***Age Analysis of Past Due Loans (by class)*** | ***Age Analysis of Past Due Loans (by class)*** | ***Age Analysis of Past Due Loans (by class)*** |
| ***As of December 31, 2025*** | ***As of December 31, 2025*** | ***As of December 31, 2025*** | ***As of December 31, 2025*** | ***As of December 31, 2025*** | ***As of December 31, 2025*** | ***As of December 31, 2025*** | ***As of December 31, 2025*** |
|  | **30-59 Days Past Due** | **60-89 Days Past Due** | **Greater Than 90 Days** | **Total PastDue** | **Current** | **Total Loans** | **RecordedInvestment 90Days or moreand Accruing**  |
| **Non-profit Commercial Loans** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Wholly Owned First Amortizing | $7336 | $— | $1981 | $9317 | $69454 | $78771 | $— |
| &nbsp;&nbsp;Wholly Owned Other Amortizing |  |  |  |  | 2616 | 2616 |  |
| &nbsp;&nbsp;Wholly Owned Unsecured Amortizing |  |  |  |  | 37 | 37 |  |
| &nbsp;&nbsp;Wholly Owned Unsecured LOC |  |  |  |  | 300 | 300 |  |
| &nbsp;&nbsp;Wholly Owned Construction | 53 |  |  | 53 | 332 | 385 |  |
| &nbsp;&nbsp;Participation First |  |  | 59 | 59 | 1121 | 1180 | 59 |
| &nbsp;&nbsp;Participation Construction |  |  |  |  | 1072 | 1072 |  |
| Total Non-profit Commercial Loans | 7389 |  | 2040 | 9429 | 74932 | 84361 | 59 |
| **For-profit Commercial Loans** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Wholly Owned First Amortizing |  |  |  |  | 4971 | 4971 |  |
| &nbsp;&nbsp;Participation First |  |  |  |  | 1468 | 1468 |  |
| &nbsp;&nbsp;Participation Construction |  |  |  |  | 1476 | 1476 |  |
| Total For-profit Commercial Loans |  |  |  |  | 7915 | 7915 |  |
| Total Loans | $7389 | $— | $2040 | $9429 | $82847 | $92276 | $— |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| ***Age Analysis of Past Due Loans (by class)*** | ***Age Analysis of Past Due Loans (by class)*** | ***Age Analysis of Past Due Loans (by class)*** | ***Age Analysis of Past Due Loans (by class)*** | ***Age Analysis of Past Due Loans (by class)*** | ***Age Analysis of Past Due Loans (by class)*** | ***Age Analysis of Past Due Loans (by class)*** | ***Age Analysis of Past Due Loans (by class)*** |
| ***As of December 31, 2024*** | ***As of December 31, 2024*** | ***As of December 31, 2024*** | ***As of December 31, 2024*** | ***As of December 31, 2024*** | ***As of December 31, 2024*** | ***As of December 31, 2024*** | ***As of December 31, 2024*** |
|  | **30-59 DaysPast Due** | **60-89Days Past Due** | **GreaterThan 90Days** | **Total PastDue** | **Current** | **Total Loans** | **RecordedInvestment 90Days or moreand Accruing**  |
| **Non-profit Commercial Loans** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Wholly Owned First Amortizing | $6745 | $1215 | $910 | $8870 | $70831 | $79701 | $— |
| &nbsp;&nbsp;Wholly Owned Other Amortizing |  |  |  |  | 2762 | 2762 |  |
| &nbsp;&nbsp;Wholly Owned Unsecured Amortizing |  |  |  |  | 46 | 46 |  |
| &nbsp;&nbsp;Wholly Owned Unsecured LOC |  |  |  |  | 22 | 22 |  |
| &nbsp;&nbsp;Wholly Owned Construction |  |  |  |  | 188 | 188 |  |
| &nbsp;&nbsp;Participation First |  |  |  |  | 1241 | 1241 |  |
| Total Non-profit Commercial Loans | 6745 | 1215 | 910 | 8870 | 75090 | 83960 |  |
| **For-profit Commercial Loans** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Wholly Owned First Amortizing |  |  |  |  | 7557 | 7557 |  |
| &nbsp;&nbsp;Participation First |  |  |  |  | 1627 | 1627 |  |
| &nbsp;&nbsp;Participation Construction |  |  |  |  | 1494 | 1494 |  |
| Total For-profit Commercial Loans |  |  |  |  | 10678 | 10678 |  |
| Total Loans | $6745 | $1215 | $910 | $8870 | $85768 | $94638 | $— |

---

#### Impaired Loans
The following tables are summaries of impaired loans by loan class as of and for the years ended years ended December 31, 2025 and 2024, respectively. The unpaid principal balance reflects the contractual principal outstanding on the loan. Included in the balance of impaired loans are loan modifications that performed according to contractual terms and that the Company has upgraded to pass or watch since the date of the modification. The recorded investment reflects the unpaid principal balance less any interest payments that management has recorded against principal and less discounts taken. No loans in the Company's for-profit commercial loan segment were classified as impaired or non-accrual at December 31, 2025 or at December 31, 2024. The tables below represent the breakdown by class of the non-profit loan portfolio segment only (dollars in thousands):

---

| | | |
|:---|:---|:---|
| | **For the years ended** | **For the years ended** |
| <br>***Impaired Non-profit Commercial Loans (by class)*** | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| **Wholly Owned First Amortizing** |  |  |
| &nbsp;&nbsp;Average recorded investment | $19849 | $20154 |
| &nbsp;&nbsp;Interest income recognized | 2051 | 1326 |
| **Wholly Owned Other Amortizing** |  |  |
| &nbsp;&nbsp;Average recorded investment | 1357 | 703 |
| &nbsp;&nbsp;Interest income recognized | 97 |  |
| **Total Impaired Loans** |  |  |
| &nbsp;&nbsp;Average recorded investment | $21206 | $20857 |
| &nbsp;&nbsp;Interest income recognized | 2148 | 1326 |

---

## **Table of Contents**

---

| | | |
|:---|:---|:---|
| ***Impaired Non-profit Commercial Loans (by class)*** | **As of** | **As of**  |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| **Wholly Owned First Amortizing** |  |  |
| &nbsp;&nbsp;Recorded investment with specific allowance | $7569 | $7364 |
| &nbsp;&nbsp;Recorded with no specific allowance | 11987 | 12777 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total recorded investment | $19556 | $20141 |
| &nbsp;&nbsp;Unpaid principal balance | $20021 | $20675 |
| **Wholly Owned Other Amortizing** |  |  |
| &nbsp;&nbsp;Recorded investment with specific allowance | $1309 | $1405 |
| &nbsp;&nbsp;Recorded with no specific allowance |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total recorded investment | $1309 | $1405 |
| &nbsp;&nbsp;Unpaid principal balance | $1685 | $1685 |
| **Total Impaired Loans** |  |  |
| &nbsp;&nbsp;Recorded investment with specific allowance | $8878 | $8769 |
| &nbsp;&nbsp;Recorded with no specific allowance | 11987 | 12777 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total recorded investment | $20865 | $21546 |
| &nbsp;&nbsp;Unpaid principal balance | $21706 | $22360 |

---

A summary of nonaccrual loans by loan class is as follows (dollars in thousands):

---

| | | |
|:---|:---|:---|
| ***Loans on Nonaccrual Status (by class)***  | ***Loans on Nonaccrual Status (by class)***  | ***Loans on Nonaccrual Status (by class)***  |
|  | **December 31, 2025** | **December 31, 2024** |
| **Non-profit Commercial Loans:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Wholly Owned First Amortizing | $9242 | $10114 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wholly Owned Other Amortizing | 1309 | 1405 |
| Total | $10551 | $11519 |

---

The Company modified three loans during the year ended December 31, 2025. The Company modified six loans during the year ended December 31, 2024.

A summary of loans the Company modified during the years ended December 31, 2025 and 2024 is as follows (dollars in thousands):

---

| | | |
|:---|:---|:---|
| ***Loan Modifications (by class)*** | ***Loan Modifications (by class)*** | ***Loan Modifications (by class)*** |
|  | ***For the twelve months ended*** | ***For the twelve months ended*** |
|  | **December 31, 2025** | **December 31, 2024** |
| **Non-profit Commercial Loans:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Wholly Owned First Amortizing** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Number of Loans | 3 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-Modification Outstanding Recorded Investment | $1372 | $5566 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Post-Modification Outstanding Recorded Investment | 1372 | 5566 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recorded Investment At Period End | 1371 | 5311 |
| &nbsp;&nbsp;**Total** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Number of Loans | 3 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-Modification Outstanding Recorded Investment | $1372 | $5566 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Post-Modification Outstanding Recorded Investment | 1372 | 5566 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recorded Investment At Period End | 1371 | 5311 |

---

Of the three loans modified during the year ended December 31, 2025, all three were granted short-term extensions of their maturity dates and two of the three modifications changed the loan's payment type to interest-only. Of the six loans modified during the year ended December 31, 2024, all six were granted short-term extensions of their maturity dates. Five of the six loans had modifications that changed their payment type to interest-only.

The Company had four previously restructured loans that were past maturity as of December 31, 2025. One of these loans has been completely written off as of December 31, 2025. For the other loans, the Company has entered into a forbearance agreement with the borrower and is evaluating what actions it should undertake to protect its investment on the loan. The forbearance agreement includes reduced monthly payment amounts and additional reporting requirements.

As of December 31, 2025, no additional funds were committed to be advanced in connection with modified loans.

### Note 5. Investments

#### Investments in Joint Venture
In December 2015, the Company finalized an agreement with Intertex Property Management, Inc., a California corporation, to enter into a joint venture to form Tesoro Hills, LLC (the "**Valencia Hills Project**"). Intertex is a managing member of the LLC, with authority to direct operations. The Company is a non-managing member with no authority beyond limited rights granted to the Company by the operating agreement. The Valencia Hills Project is a joint venture that will develop and market property formerly classified by the Company as a foreclosed asset. In January 2016, the Company transferred ownership in the foreclosed asset to the Valencia Hills Project. In addition, the Company reclassified the carrying value of the property from foreclosed assets to an investment in a joint venture. The Company's initial investment in the joint venture was $900 thousand and represented 100% of the ownership of the joint venture. Under the terms of the operating agreement, the members of the joint venture are entitled to receive their respective capital contributions until the balance is reduced to zero. After these payments are made, the Company is entitled to receive 30% of the profits generated by the operation of the joint venture or disposition of the property. The Company's ownership percentage in the joint venture was 73% as of December 31, 2025, and December 31, 2024.

## **Table of Contents**
The value of the Company's investment in the joint venture was $875 thousand and $873 thousand, as of December 31, 2025 and 2024, respectively. Management's impairment analysis of the investment as of December 31, 2025, has determined that the investment is not impaired.

#### Certificates of Deposit
The Company held an investment in a certificate of deposit with an original maturity greater than three months at December 31, 2025 and 2024.

Details of certificates with original maturities of greater than three months owned by the Company as of December 31, 2025 and 2024, are as follows (dollars in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Certificate** | **Open Date** | **Certificate Amount** | **Interest Rate** | **Maturity Date** |
| CD 1 | 9/23/2025 | $1519 | 4.65% | 6/24/2026 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Certificate** | **Open Date** | **Certificate Amount** | **Interest Rate** | **Maturity Date** |
| CD 2 | 3/15/2024 | $1305 | 5.37% | 3/15/2025 |

---

CD 1 was purchased from ACCU and is pledged as a compensating balance under the terms of the ACCU LOC. CD 2 was purchased from KCT and was pledged as a compensating balance under the terms of the KCT Warehouse LOC as of December 31, 2024. Neither CD 2 nor the KCT Warehouse LOC were renewed when they matured. See "[Note 10: Credit Facilities and Other Debt](#Note10_Credit)" for additional terms and conditions of these credit facilities.

#### Other Investments
In June 2022, the Company entered into two indexed annuity insurance contracts whereby an insurance company guarantees a fixed rate of return in exchange for holding a deposit from the Company for the contracted period of ten years. The Company recognized $16 thousand and $30 thousand, respectively, in income on these investments during the years ended December 31, 2025 and 2024.

Additional information related to these investments is as follows (dollars in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | | **Income for the year ended** | **Income for the year ended** |
| <br>**Investment Type** | <br>**Maturity Date** | <br>**Original Cost** | <br>**Net Carrying Amount** | **December 31, 2025** | **December 31, 2024** |
| Fixed annuity | June 2032 | $1000 | $1098 | $16 | $30 |

---

## **Table of Contents**

### Note 6. Revenue Recognition
The Company recognizes two primary types of revenue: interest income and non-interest income. The following tables reflect the Company's non-interest income disaggregated by financial statement line item. Items outside of scope of ASC 606 are noted as such (dollars in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Non-interest income, in scope of ASC 606 |  |  |
| &nbsp;&nbsp;Broker-dealer fees and commissions | $756 | $743 |
| &nbsp;&nbsp;Gains on loan sales | 16 | 101 |
| &nbsp;&nbsp;Gain on sale of foreclosed assets | 182 |  |
| &nbsp;&nbsp;Other investment income | 16 | 30 |
| &nbsp;&nbsp;Other non-interest income |  | 215 |
| Non-interest income, out of scope, ASC 606 |  |  |
| &nbsp;&nbsp;Lending fees | 328 | 168 |
| &nbsp;&nbsp;Gain on debt extinguishment |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-interest income | $1298 | $1257 |

---

#### Employee Retention Credit
On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") to provide certain relief as a result of the COVID-19 pandemic. The CARES Act provides tax relief, along with other stimulus measures, including a provision for an Employee Retention Credit ("ERC"), which allows for employers to claim a refundable tax credit against the employer share of Social Security tax equal to 70% of the qualified wages paid to employees after December 31, 2020 through September 30, 2021 up to a maximum quarterly credit of $7,000 per employee. Employers are eligible for the credit if they experienced full or partial suspension or modification of operations during any calendar quarter because of governmental orders due to the pandemic, or a significant decline in gross receipts based on a comparison of quarterly revenue results for 2020 and/or 2021 with the comparable quarter in 2019. The statute of limitations on applying for the ERC is five years.

As there is no authoritative guidance under U.S. GAAP on accounting for government assistance to for-profit business entities, we account for the ERC by analogy to International Accounting Standard ("IAS") 20, Accounting for Government Grants and Disclosure of Government Assistance. In accordance with IAS 20, management determined it has reasonable assurance for receipt of the ERC and recorded the ERC benefit of $215 thousand within other income in its Consolidated Statements of Operation for the year ended December 31, 2024. The $215 thousand in ERC income is included in other non-interest income in the table above. We recorded a corresponding accrual for the benefit expected to be received within other assets on the Condensed Consolidated Balance Sheet as of December 31, 2024. The ERC receivable is still outstanding as of December 31, 2025.

## **Table of Contents**

#### Revenue from Contracts with Customers
In accordance with our accounting policies as governed by ASC 606, Revenue from Contracts with Customers, the following table separates revenue from contracts with customers into categories that are based on the nature, amount, timing, and uncertainty of revenue and cash flows associated with each product and distribution channel. Non-interest revenue earned by the Company's broker-dealer subsidiary, MP Securities, comprises securities commissions, sale of investment company shares, insurance product revenue, and advisory fee income. Securities commission revenue represents the sale of over-the-counter stock, unit investment trusts, and variable annuities. The revenue earned from the sale of these products is recognized upon satisfaction of performance obligations, which occurs on the trade date and is considered transactional revenue. The Company also earns revenue from the management of invested assets, which is recognized monthly, as earned, based on the average asset value, and is referred to as Assets Under Management revenue ("**AUM**").

---

| | | |
|:---|:---|:---|
|  | **For the twelve months ended** | **For the twelve months ended** |
| (dollars in thousands) | **December 31, 2025** | **December 31, 2024** |
| **Broker-dealer revenue** |  |  |
| &nbsp;&nbsp;**Securities commissions** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transactional | $34 | $59 |
| &nbsp;&nbsp;&nbsp;&nbsp;AUM | 50 | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 84 | 120 |
| &nbsp;&nbsp;**Sale of investment company shares** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transactional | 5 | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;AUM | 64 | 72 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 69 | 87 |
| &nbsp;&nbsp;**Other insurance product revenue** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transactional | 106 | 101 |
| &nbsp;&nbsp;&nbsp;&nbsp;AUM | 42 | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 148 | 149 |
| &nbsp;&nbsp;**Advisory fee income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transactional |  | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;AUM | 455 | 384 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 455 | 387 |
| **Total broker-dealer revenue** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transactional | 145 | 178 |
| &nbsp;&nbsp;&nbsp;&nbsp;AUM | 611 | 565 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total broker-dealer revenue | $756 | $743 |

---

## **Table of Contents**
**Note 7. Loan Sales**

A summary of loan participation sales and servicing assets are as follows (dollars in thousands):

---

| | | |
|:---|:---|:---|
|  | **As of and for the years ended** | **As of and for the years ended** |
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| Participation loan interests sold by the Company during the year | $1100 | $8370 |
| Total participation interests sold and serviced by the Company | 29388 | 32475 |
| Servicing income | 117 | 126 |
| **Servicing Assets** |  |  |
| Balance, beginning of period | $177 | $98 |
| Additions: |  |  |
| &nbsp;&nbsp;Servicing obligations from sale of loan participations | 33 | 123 |
| Subtractions: |  |  |
| &nbsp;&nbsp;Amortization | (49) | (44) |
| Balance, end of period | $161 | $177 |

---

#### ACCU Loan Participation Agreement (Secured Borrowings)
As detailed in Note 3: Related Party Transactions, effective August 9, 2021, the Company entered into a Master Loan Participation Purchase and Sale Agreement with ACCU. Sales made under the Master LP Agreement are on a recourse basis, requiring the Company to repurchase the participation interest in the event of default by the borrower.

During the year ended December 31, 2022, the Company sold loan participations to ACCU under the provisions of the Master LP Agreement that totaled $7 thousand. Due to the recourse provisions of the agreement, the participation sales made under the agreement are classified as secured borrowings and are presented as part of other secured borrowings on the Company's consolidated balance sheets. The Company did not sell any loan participations to ACCU under the provisions of the Master LP Agreement during the years ended December 31, 2025 or December 31, 2024.

### Note 8: Foreclosed Assets
In September 2025, the Company reached an agreement to sell its investment in foreclosed assets for $483 thousand, realizing a gain on the sale of $182 thousand. As of December 31, 2025, the Company does not own any investments in foreclosed assets.

At December 31, 2024, the Company's investment in foreclosed assets consisted of one property that was valued at $301 thousand. There was no allowance for losses on foreclosed assets at December 31, 2024. The Company did not record any loss provisions on foreclosed assets during the years ended December 31, 2025 and 2024.

## **Table of Contents**
Expenses applicable to foreclosed assets include the following (dollars in thousands):

---

| | | |
|:---|:---|:---|
|  | **Foreclosed Asset Expensesfor the years endedDecember 31,** | **Foreclosed Asset Expensesfor the years endedDecember 31,** |
|  | **2025** | **2024** |
| Operating expenses | $19 | $11 |
| Total expenses | $19 | $11 |

---

### Note 9. Premises and Equipment
The tables below summarize our premises and equipment (dollars in thousands):

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| Furniture and office equipment | $454 | $452 |
| Computer system | 226 | 226 |
| Leasehold improvements | 43 | 43 |
| &nbsp;&nbsp;Total premises and equipment | 723 | 721 |
| &nbsp;&nbsp;Less accumulated depreciation and amortization | (659) | (637) |
| Premises and equipment, net | $64 | $84 |

---

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Depreciation and amortization expense for the years ended December 31, | $22 | $33 |

---

### Note 10. Credit Facilities and Other Debt
Details of the Company's debt facilities as of December 31, 2025, are as follows (dollars in thousands):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Nature ofBorrowing** | **InterestRate** | **Interest RateType** | **AmountOutstanding** | **MonthlyPayment** | **MaturityDate** | **Loan CollateralPledged** | **CashPledged** |
| ACCU LOC | 8.000% | Variable | $— | $— | 11/28/2026 | $6071 | $— |
| ACCU Secured | Various | Fixed | 6 |  | Various |  | 6 |

---

Note: Disclosed cash pledged and collateral balances will get pledged once and if the LOC is drawn on.

#### KCT Lines of Credit
On September 30, 2020, Ministry Partners Investment Company, LLC, entered into a Loan and Security Agreement with KCT Credit Union, an Illinois state chartered financial institution. On June 6, 2022, the Company and KCT mutually agreed to terminate this facility and entered into two new facilities. The first facility, the KCT Warehouse LOC, is a $5.0 million short-term demand credit

## **Table of Contents**
facility with a one-year maturity date ending on June 6, 2025. In addition, on June 6, 2022, the Company entered into an Operating Line of Credit Loan and Security Agreement with the KCT, the KCT Operating LOC. The KCT Operating LOC is a $5.0 million short-term demand credit facility with a one-year maturity date ending on June 6, 2025. Neither facility was renewed when it matured on June 6, 2025. Both facilities had no outstanding balance at December 31, 2024.

#### ACCU Line of Credit
On September 23, 2021, Ministry Partners Investment Company, LLC, entered into a Loan and Security Agreement with ACCU ("**ACCU LOC**"). The ACCU LOC is a revolving $5.0 million short-term demand credit facility with a one-year maturity date of November 28, 2026. The facility carried an outstanding balance of $0.0 million at December 31, 2025 and December 31, 2024. The interest rate on the facility is equal to the Prime Rate as published in the Wall Street Journal plus 0.50%. This rate will be adjusted on January 10<sup>th</sup> each year to account for the current Prime Rate but cannot be adjusted below 4.00%. The interest rate on the ACCU LOC was 8.00% on December 31, 2025. The ACCU LOC will automatically renew for one additional one-year term unless either party furnishes written notice at least thirty (30) days prior to the termination date that it does not intend to renew the agreement.

The Company may draw funds on the ACCU LOC at any time until the line is fully drawn. All outstanding principal and interest amounts are due on the maturity date. To secure its obligations under the ACCU LOC, the Company has agreed to grant a priority first lien and security interest in certain of its mortgage loan investments and maintain a minimum collateralization ratio measured by taking outstanding balance of mortgage notes pledged under the facility as compared to the total amount of principal owed on the ACCU LOC. The minimum ratio must equal at least 120%. The Company must also maintain minimum liquidity that equals or exceeds $10.0 million at all times during the term of the loan. The ACCU LOC contains typical affirmative covenants for a credit facility of this nature. The Company was in compliance with these covenants at years ended December 31, 2025 and 2024. A total of $6.1 million and $7.0 million, respectively, in loans were pledged on this facility as of December 31, 2025 and December 31, 2024.

#### ACCU Secured Borrowings
As detailed in Note 3: Related Party Transactions, on August 9, 2021, the Company entered into a Master Loan Participation Purchase and Sale Agreement with ACCU. The participations sold under the Master LP Agreement are considered secured borrowings and are presented as such on the Company's balance sheet. $6 thousand in secured borrowings were outstanding under the Master LP Agreement as of December 31, 2025 and December 31, 2024.

## **Table of Contents**

### Note 11. Debt Certificates Payable
The table below provides information on the Company's debt certificates payable (dollars in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **As of**  | **As of**  | **As of**  | **As of**  |
| | | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| <br>**SEC Registered Public Offerings** | <br>**Offering Type** | **Amount** | **WeightedAverageInterestRate** | **Amount** | **WeightedAverageInterestRate** |
| &nbsp;&nbsp;Class 1A Offering | Unsecured | $— | —% | $5979 | 3.91% |
| &nbsp;&nbsp;2021 Class A Offering | Unsecured | 21463 | 4.68% | 33336 | 4.75% |
| &nbsp;&nbsp;2024 Class A Offering | Unsecured | 45591 | 4.77% | 31247 | 4.95% |
| Public offering total |  | $67054 | 4.74% | $70562 | 4.77% |
| **Private Offerings** |  |  |  |  |  |
| &nbsp;&nbsp;Subordinated Notes | Unsecured | $27456 | 5.24% | $24599 | 5.15% |
| Private offering total |  | $27456 | 5.24% | $24599 | 5.15% |
| Total debt certificates payable |  | $94510 | 4.89% | $95161 | 4.87% |

---

Future maturities for the Company's debt certificates during the twelve-month periods ending December 31, are as follows (dollars in thousands):

---

| | |
|:---|:---|
| 2026 | $46423 |
| 2027 | 18767 |
| 2028 | 10765 |
| 2029 | 9808 |
| 2030 | 8747 |
|  | 94510 |
| Less: debt issuance costs | 72 |
| Debt certificates payable, net of debt issuance costs | $94438 |

---

Debt issuance costs related to the Company's debt certificates payable were $72 thousand and $88 thousand at December 31, 2025 and December 31, 2024, respectively.

The debt certificates are payable to investors who have purchased the securities. Debt certificates pay interest at stated spreads over an index rate. The investor may reinvest the interest or have the interest paid to them at their option. The Company may repurchase all or a portion of debt certificates at any time at its sole discretion. In addition, the Company may allow investors to redeem their debt certificates prior to maturity at its sole discretion.

## **Table of Contents**

#### SEC Registered Public Offerings
Class 1A Offering

In February 2018, the Company launched its Class 1A Notes Offering. Pursuant to a Registration Statement declared effective on February 27, 2018, the Company registered $90 million of its Class 1A Notes in two series – fixed and variable debt certificates. The Class 1A Notes are unsecured. The interest rate paid on the Fixed Series Notes is determined in reference to a Constant Maturity Treasury Index published by the U.S. Department of Treasury ("**CMT Index**") in effect on the date that the note is issued plus a rate spread as described in the Company's Class 1A Prospectus. The variable index in effect on the date the interest rate is set determines the interest rate paid on a Variable Series Note. The CMT Index refers to the Constant Maturity Treasury rates published by the U.S. Department of Treasury for actively traded Treasury securities. The variable index is equal to the 3-month LIBOR rate. The Company issued the Class 1A Notes under a Trust Indenture entered into between the Company and U.S. Bank. As of December 31, 2025, there were no Class 1A Notes outstanding.

2021 Class A Offering

In January 2021, the Company launched its 2021 Class A Notes Offering. Pursuant to a Registration Statement declared effective on January 8, 2021, the Company registered $125 million of its 2021 Class A Notes in two series – fixed and variable debt certificates. The 2021 Class A Notes are unsecured. Like the Class 1A Notes Offering, the interest rate paid on the Fixed Series Notes is determined in reference to a CMT Index published by the U.S. Department of Treasury in effect on the date that the note is issued plus a rate spread as described in the Company's 2021 Class A Prospectus. The variable index in effect on the date the interest rate is set determines the interest rate paid on a Variable Series Note. The CMT Index refers to the Constant Maturity Treasury rates published by the U.S. Department of Treasury for actively traded Treasury securities. The variable index is equal to the Secured Overnight Financing Rate ("**SOFR**") for three-month financial obligations. The Company issued the 2021 Class A Notes under a Trust Indenture entered into by and between the Company and U.S. Bank.

## **Table of Contents**
2024 Class A Offering

In February 2024, the Company launched its 2024 Class A Debt Certificates Offering. Pursuant to a Registration Statement declared effective on February 5, 2024, the Company registered $200 million of its 2024 Class A Debt Certificates in two series – fixed and variable debt certificates. The 2024 Class A Debt Certificates are unsecured. The interest rate paid on the Fixed Series Debt Certificates is determined in reference to a CMT Index published by the U.S. Department of Treasury in effect as of the first business day of the month in which the note is issued plus a rate spread as described in the Company's 2024 Class A Prospectus. The CMT Index refers to the Constant Maturity Treasury rates published by the U.S. Department of Treasury for actively traded Treasury securities. The variable index in effect on the date the interest rate is set determines the interest rate paid on a Variable Series Debt Certificate. The variable index is equal to the SOFR for three-month financial obligations. The Company issued the 2024 Class A Debt Certificates under a Trust Indenture entered into between the Company and U.S. Bank.

#### Private Offerings
Series 1 Subordinated Capital Notes ("Subordinated Notes")

In June 2018, the Company renewed the offer and sale of its Subordinated Notes initially launched in February 2013. The Company offers the debt certificates pursuant to a limited private offering to qualified investors that meet the requirements of Rule 506 of Regulation D. The Company offers the Subordinated Notes with maturity terms from 12 to 60 months at an interest rate fixed on the date of issuance, as determined by the then current seven-day average rate reported by the U.S. Federal Reserve Board for interest rate swaps.

Under the Subordinated Notes offering, the Company is subject to certain covenants, including limitations on restricted payments, limitations on the amount of debt certificates that it can sell, restrictions on mergers and acquisitions, and proper maintenance of books and records. The Company was in compliance with these covenants at December 31, 2025 and December 31, 2024.

### Note 12. Commitments and Contingencies

#### Unfunded Commitments
The Company is a party to credit-related financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include undisbursed loans, un-advanced lines of credit, and standby letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet.

## **Table of Contents**
The contractual amount of these commitments represents the Company's exposure to credit loss. The Company uses the same credit policies in making commitments as it does for on-balance-sheet instruments.

The table below shows the outstanding financial instruments whose contract amounts represent credit risk (dollars in thousands):

---

| | | |
|:---|:---|:---|
|  | **Contract Amount at:** | **Contract Amount at:** |
|  | **December 31, 2025** | **December 31, 2024** |
| Undisbursed loans | $75 | $292 |

---

Undisbursed loans are commitments for possible future extensions of credit to existing customers. These loans are sometimes unsecured and the borrower may not necessarily draw upon the line the total amount of the commitment. Commitments to extend credit are generally at variable rates.

#### Operating Leases
On December 31, 2023, the Company's lease agreement with Imperial Mariner to lease facilities in Brea expired. In February 2024, the Company reached an agreement with Olen Pointe Brea Corp. to lease new office space in Brea. The lease agreement began on March 15, 2024. The agreement expires on July 31, 2029. The agreement provides for rent payments beginning at $6,790 per month with annual increases, as well as provisions for proportional share of operating costs. The agreement also includes one option to extend the lease for an additional five-year term.

The Company also leases office space in Fresno, California, where its wholly-owned subsidiary, MP Securities, maintains a branch office. In June 2025, the Company reached an agreement to extend its lease of office space in Fresno, California, for 38 months, terminating in July 2028. The Company recorded $82 thousand in right-of-use assets and lease liabilities related to this agreement. The agreement provides for rent payments beginning at $2,526 per month with an increase in January 2027, as well as provisions for proportional share of operating costs.

The Company has determined that these leases are operating leases.

## **Table of Contents**
The table below presents information regarding our existing operating leases (dollars in thousands):

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended** | **For the Year Ended** |
|  | **2025** | **2024** |
| Lease cost |  |  |
| &nbsp;&nbsp;Operating lease cost | $111 | $119 |
| Other information |  |  |
| &nbsp;&nbsp;Cash paid for operating leases | $193 | $537 |
| &nbsp;&nbsp;Right-of-use assets obtained in exchange for operating lease liabilities | $82 | $387 |
| &nbsp;&nbsp;Lease liabilities recorded | $82 | $387 |
| &nbsp;&nbsp;Weighted average remaining lease term (in years) | 2.85 | 4.46 |
| &nbsp;&nbsp;Weighted-average discount rate | 5.07% | 4.53% |

---

Future minimum lease payments and lease costs for the twelve months ending December 31 are as follows (dollars in thousands):

---

| | | |
|:---|:---|:---|
|  | **Lease Payments** | **Lease Costs** |
| 2026 | $116 | $112 |
| 2027 | 120 | 112 |
| 2028 | 109 | 99 |
| 2029 | 55 | 48 |
| Total | $400 | $371 |

---

### Note 13. Office Operations and Other Expenses
Office operations and other expenses comprise the following (dollars in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** |
| Technology and communication expenses | $557 | $471 |
| Insurance | 313 | 333 |
| Lease and occupancy expense | 125 | 152 |
| Outsourced operations | 265 | 252 |
| Staff and travel expense | 58 | 66 |
| Loan expenses | 99 | 72 |
| Clearing firm fees | 60 | 60 |
| Other | 70 | 194 |
| Total | $1547 | $1600 |

---

### Note 14. Preferred and Common Units Under LLC Structure
Holders of the Series A Preferred Units are entitled to receive a quarterly cash dividend that is 25 basis points higher than the one-year LIBOR rate in effect on the last day of the calendar month for which the preferred return is approved. The Company has also agreed to set aside an annual amount equal to 10% of its net profits earned for any year, after subtracting from profits the

## **Table of Contents**
quarterly Series A Preferred Unit dividends paid, for distribution to its Series A Preferred Unit holders.

The Series A Preferred Units have a liquidation preference of $100 per unit and have no voting rights. They are also subject to redemption in whole or in part at the Company's election on December 31 of any year for an amount equal to the liquidation preference of each unit, plus any accrued and declared but unpaid quarterly dividends and preferred distributions on such units. The Series A Preferred Units have priority as to earnings and distributions over the Common Units. The resale of the Company's Series A Preferred Units and Common Units are subject to the Company's first right of refusal to purchase units proposed to be transferred. Upon the Company's failure to pay quarterly dividends for four consecutive quarters, the holders of the Series A Preferred Units have the right to appoint two managers to its Board of Managers.

The Class A Common Units have voting rights, but have no liquidation preference or rights to dividends, unless declared.

### Note 15. Retirement Plans

#### 401(k)
All of the Company's employees are eligible to participate in the Automated Data Processing, Inc. ("**ADP**") 401(k) plan effective as of the date their employment commences. No minimum service is required and the minimum age is 21. Each employee may elect voluntary contributions not to exceed 86% of salary, subject to certain limits based on U.S. tax law. The plan has a matching program, which qualifies as a Safe Harbor 401(k) plan. As a Safe Harbor Section 401(k) plan, the Company matches each eligible employee's contribution, dollar for dollar, up to 3% of the employee's compensation, and 50% of the employee's contribution that exceeds 3% of their compensation, up to a maximum contribution of 5% of the employee's compensation. Company matching contributions for the years ended December 31, 2025 and 2024 were $48 thousand and $58 thousand, respectively.

#### Profit Sharing
The profit sharing plan is for all employees who, at the end of the calendar year, are at least 21 years old, still employed, and have at least 900 hours of service during the plan year. The Company's Board of Managers determines the amount annually contributed on behalf of each qualified employee. The Company determines the amount by calculating it as a percentage of the eligible employee's annual earnings. Plan forfeitures are used to reduce the Company's annual contribution. The Company did not make or approve a profit sharing contribution to the plan during the years ended December 31, 2025 and 2024.

## **Table of Contents**

#### Supplemental Executive Retirement Plan
On March 30, 2022, the Company entered into a Supplemental Executive Retirement Plan (the "**SERP**") with its President and Chief Executive Officer, Joseph W. Turner, Jr. The SERP is an unfunded non-qualified plan that is intended to provide Mr. Turner with a fixed benefit over a ten-year period after Mr. Turner incurs a separation from service with the Company. The SERP has been established as a supplemental retirement and death benefits arrangement that conforms with the provisions of Section 409(A) of the Internal Revenue Code. In August 2024, Mr. Turner began receiving payments of $60,000 per year over a ten-year period, payable in equal monthly installments.

### Note 16. Fair Value Measurements

#### Fair Value Measurements Using Fair Value Hierarchy
The Company classifies measurements of fair value within a hierarchy based upon inputs that give the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The Company did not change its methodology in measuring fair value during the year ended December 31, 2025. The fair value hierarchy is as follows:

● Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets.

● Level 2 inputs include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o quoted prices for similar assets and liabilities in active markets,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o quoted prices for identical assets and liabilities in inactive markets,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o inputs that are observable for the asset or liability (such as interest rates, prepayment speeds, credit risks, etc.); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o inputs that are derived principally from or corroborated by observable market data by correlation or by other means.

● Level 3 inputs are unobservable and reflect an entity's own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value

## **Table of Contents**
measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

#### Fair Value of Financial Instruments
The following tables show the carrying amounts and estimated fair values of the Company's financial instruments (dollars in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **Fair Value Measurements at December 31, 2025 using** | **Fair Value Measurements at December 31, 2025 using** | **Fair Value Measurements at December 31, 2025 using** | **Fair Value Measurements at December 31, 2025 using** |
|  | <br>**CarryingValue** | **Quoted Pricesin ActiveMarkets forIdentical Assets (Level 1)** | **SignificantOtherObservableInputs(Level 2)** | **SignificantUnobservableInputs(Level 3)** | **Fair Value** |
| FINANCIAL ASSETS: |  |  |  |  |  |
| Cash and restricted cash | $11564 | $11564 | $— | $— | $11564 |
| Certificates of deposit | 1519 |  | 1524 |  | 1524 |
| Loans, net | 90827 |  |  | 89013 | 89013 |
| Investments in joint venture | 875 |  |  | 875 | 875 |
| Other investments | 1098 |  |  | 1098 | 1098 |
| Accrued interest receivable | 439 |  |  | 439 | 439 |
| Servicing assets | 161 |  |  | 161 | 161 |
| FINANCIAL LIABILITIES: |  |  |  |  |  |
| Other secured borrowings | $6 | $— | $— | $6 | $6 |
| Debt certificates payable | 94438 |  |  | 93880 | 93880 |
| Other financial liabilities | 108 |  |  | 108 | 108 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **Fair Value Measurements at December 31, 2024 using** | **Fair Value Measurements at December 31, 2024 using** | **Fair Value Measurements at December 31, 2024 using** | **Fair Value Measurements at December 31, 2024 using** |
|  | <br>**CarryingValue** | **Quoted Pricesin ActiveMarkets forIdenticalAssets(Level 1)** | **SignificantOtherObservableInputs(Level 2)** | **SignificantUnobservableInputs(Level 3)** | **Fair Value** |
| FINANCIAL ASSETS: |  |  |  |  |  |
| Cash and restricted cash | $10771 | $10771 | $— | $— | $10771 |
| Certificates of deposit | 1304 |  | 1308 |  | 1308 |
| Loans, net | 93171 |  |  | 90684 | 90684 |
| Investments in joint venture | 873 |  |  | 873 | 873 |
| Other investments | 1082 |  |  | 1082 | 1082 |
| Accrued interest receivable | 447 |  |  | 447 | 447 |
| Servicing assets | 177 |  |  | 177 | 177 |
| FINANCIAL LIABILITIES: |  |  |  |  |  |
| Other secured borrowings | 6 | $— | $— | $6 | $6 |
| Debt certificates payable | 95073 |  |  | 94031 | 94031 |
| Other financial liabilities | 479 |  |  | 479 | 479 |

---

Management uses judgment in estimating the fair value of the Company's financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all

## **Table of Contents**
financial instruments, the fair value estimates presented herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction at December 31, 2025 and 2024.

The Company used the following methods and assumptions to estimate the fair value of financial instruments:

● Cash – The carrying amounts reported in the balance sheets approximate fair value for cash.

● Certificates of deposit – Management estimates fair value by using a present value discounted cash flow with a discount rate approximating the current market rate for similar assets. Management classifies certificates of deposits as Level 2 of the fair value hierarchy.

● Loans (other than collateral-dependent impaired loans) – Management estimates fair value by discounting the future cash flows of the loans. The discount rate the Company uses is the current average rates at which it would make loans to borrowers with similar credit ratings and for the same remaining maturities. Also included is $6 thousand of loan participations transferred under a recourse agreement.

● Investments in joint venture – Management estimates fair value by analyzing the operations and marketability of the underlying investment to determine if the investment is other-than-temporarily impaired.

● Other investments – Management estimates fair value by determining the whether there is an indication of potential lack of performance on the part of the insurance companies in which the investments are made, and whether those indications would impair the investments.

● Debt certificates payable – Management estimates the fair value of fixed maturity debt certificates by discounting the future cash flows of the debt certificates. The discount rate the Company uses is the rate currently offered for debt certificates payable of similar remaining maturities. Company management estimates the discount rate by using market rates that reflect the interest rate risk inherent in the debt certificates.

● Accrued interest receivable - The carrying amounts reported in the balance sheets approximate fair value for accrued interest receivable. The Company has made the accounting policy election not to measure an allowance for credit losses on accrued interest receivable amounts as the Company writes off accrued interest receivable when a loan is 90 days past due or interest is otherwise considered uncollectible.

● Servicing assets – Servicing assets are included in other assets on the balance sheets. The carrying amounts reported in the balance sheets approximate fair value for servicing assets.

● Lines of credit, term-debt, other secured borrowings – Management estimates the fair value of borrowings from financial institutions discounting the future cash flows of the borrowings. The discount rate the Company uses is the current incremental borrowing rate for similar types of borrowing arrangements.

● Off-balance sheet instruments – Management determines the fair value of loan commitments on fees currently charged to enter into similar agreements, taking into account the remaining term of the agreements and the counterparties' credit standing. The fair value of loan commitments is insignificant at December 31, 2025 and 2024.

#### Fair Value Measured on a Nonrecurring Basis
The Company measures certain assets at fair value on a nonrecurring basis. On these assets, the Company only makes fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following table presents the fair value of assets measured on a nonrecurring basis (dollars in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurements Using:** | **Fair Value Measurements Using:** | **Fair Value Measurements Using:** | |
|  | **Quoted Pricesin ActiveMarkets forIdenticalAssets(Level 1)** | **SignificantOtherObservableInputs(Level 2)** | **SignificantUnobservableInputs(Level 3)** | <br>**Total** |
| Assets at December 31, 2025: |  |  |  |  |
| Collateral-dependent loans (net of allowance and discount) | $— | $— | $8474 | $8474 |
| Investments in joint venture |  |  | 875 | 875 |
| Other investments |  |  | 1098 | 1098 |
| Total | $— | $— | $10447 | $10447 |
| Assets at December 31, 2024: |  |  |  |  |
| Collateral-dependent loans (net of allowance and discount) | $— | $— | $9535 | $9535 |
| Investments in joint venture |  |  | 873 | 873 |
| Other investments |  |  | 1082 | 1082 |
| Foreclosed assets (net of allowance) |  |  | 301 | 301 |
| Total | $— | $— | $11791 | $11791 |

---

There was no activity during the years ended December 31, 2025 and December 31, 2024 in Level 3 assets for those assets in which there were purchases or sales, or in which assets were transferred between levels.

#### Impaired Loans
The fair value of collateral-dependent impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. Such fair values are obtained using

## **Table of Contents**
independent appraisals, which the Company may discount due to age or other factors, which the Company considers to be Level 3 inputs. The range of these discounts is shown in the table below.

The Company also estimates the fair value of non-collateral-dependent impaired loans using the discounted cash flow method. This method uses estimates of the future cash flows of the loan and discounts those cash flows using the loan's interest rate.

#### Foreclosed Assets
At the date of foreclosure, the Company initially records real estate acquired through foreclosure or other proceedings (foreclosed assets) at fair value less estimated costs of disposal, which establishes a new cost. After foreclosure, management periodically performs valuations on foreclosed assets. The company carries foreclosed assets held for sale at the lower of cost or fair value, less estimated costs of disposal. The fair values of real properties initially are determined based on appraisals. In some cases, management adjusts the appraised values for various factors including age of the appraisal, age of comparable properties included in the appraisal, and known changes in the market or in the collateral. The Company makes subsequent valuations of the real properties based either on management estimates or on updated appraisals. If management makes significant adjustments to appraised values based on unobservable inputs, the Company categorizes foreclosed assets under Level 3. Otherwise, if management bases the foreclosed assets' value on recent appraisals and the only adjustments made are for known contractual selling costs, the Company will categorize the foreclosed assets under Level 2.

#### Other Investments
Other investments comprise two indexed annuity insurance contracts. The Company measures fair value on its annuity investments on a nonrecurring basis. On these assets, the Company only makes fair value adjustments when there is evidence of impairment. As the principal amounts and recognized income on the annuities is guaranteed, only impairment of the assets would indicate a degradation in their fair value. The Company concluded that no impairment of the annuity investments existed at December 31, 2025. As such, the Company has determined that the carrying value of its other investments equals its fair value at December 31, 2025.

The table below summarizes the valuation methodologies used to measure the fair value adjustments for Level 3 assets recorded at fair value on a nonrecurring basis (dollars in thousands):

## **Table of Contents**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Assets** | **Fair Value(in thousands)** | **ValuationTechniques** | **UnobservableInput** | **Range(Weighted Average)** |
| Impaired loans | $8474 | Discounted appraised value | Selling cost / Estimated market decrease | 10% (10%) |
| Investments in joint venture | 875 | Internal evaluations | Estimated future market value | 0% (0%) |
| Other investments | 1098 | Internal evaluations | Indications of non-performance by insurance companies | 0% (0%) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Assets** | **Fair Value(in thousands)** | **ValuationTechniques** | **UnobservableInput** | **Range(Weighted Average)** |
| Impaired loans | $9535 | Discounted appraised value | Selling cost / Estimated market decrease | 10% (10%) |
| Investments in joint venture | 873 | Internal evaluations | Estimated future market value | 0% (0%) |
| Other investments | 1082 | Internal evaluations | Indications of non-performance by insurance companies | 0% (0%) |
| Foreclosed assets | 301 | Internal evaluations | Selling cost  | 6% (6%) |

---

### Note 17. Income Taxes and State LLC Fees
MPIC is subject to a California gross receipts LLC fee of approximately $12,000 per year, and the state minimum franchise tax of $800 per year. MP Securities is subject to a California gross receipts LLC fee of approximately $6,000 and the state minimum franchise tax of $800 per year.

MP Realty incurred a tax loss for the years ended December 31, 2025 and 2024, and recorded a provision of $800 per year for the state minimum franchise tax. For the years ended December 31, 2025 and 2024, MP Realty has federal and state net operating loss carryforwards of approximately $433 thousand and $432 thousand, respectively, which begin to expire in the year 2032. Management assessed the realizability of the deferred tax asset and determined that a 100% valuation against the deferred tax asset was appropriate at years ended December 31, 2025 and 2024.

Tax years ended December 31, 2020, through December 31, 2025 remain subject to examination by the Internal Revenue Service and the tax years ended December 31, 2019 through December 31, 2025 remain subject to examination by the California Franchise Tax Board.

## **Table of Contents**

### Note 18. Segment Information
The Company's reportable segments are strategic business units that offer different products and services. The Company manages the segments separately because each business requires different management, personnel proficiencies, and marketing strategies.

The Company has two reportable segments that represent the primary businesses reported in the consolidated financial statements: the finance company (the parent company), and the investment advisor and insurance firm (MP Securities). The finance company segment uses funds from the sale of debt certificates, income from operations, and the sale of loan participations to originate or purchase mortgage loans. The finance company also services loans. MP Securities generates fee income by selling debt certificates and other investment and insurance products, as well as providing investment advisory and financial planning services. Although charitable activities of MPC are not considered primary business activities, due to the amount of revenue recognized in prior years, the Company has disclosed its activities separately in the tables below.

The accounting policies applied to determine the segment information are the same as those described in the summary of significant accounting policies. Management accounts for intersegment revenues and expenses at amounts that assume the Company entered into the transaction with unrelated third parties at the current market prices at the time of the transaction. Management evaluates the performance of each segment based on net income or loss before provision for income taxes and LLC fees.

Financial information with respect to the reportable segments is as follows (dollars in thousands):

## **Table of Contents**

---

| | | |
|:---|:---|:---|
|  | **Twelve months ended** | **Twelve months ended** |
|  | **December 31, 2025** | **December 31, 2024** |
| **Revenue from external sources** |  |  |
| &nbsp;&nbsp;Finance Company | $7913 | $7438 |
| &nbsp;&nbsp;Broker Dealer | 847 | 1012 |
| &nbsp;&nbsp;Charitable Organization | 77 | 84 |
| &nbsp;&nbsp;Other Segments | 2 | 2 |
| &nbsp;&nbsp;Adjustments / Eliminations |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $8839 | $8536 |
| **Revenue from internal sources** |  |  |
| &nbsp;&nbsp;Finance Company | $— | $— |
| &nbsp;&nbsp;Broker Dealer | 1193 | 1192 |
| &nbsp;&nbsp;Charitable Organization |  |  |
| &nbsp;&nbsp;Other Segments |  |  |
| &nbsp;&nbsp;Adjustments / Eliminations | (1193) | (1192) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $— | $— |
| **Interest expense** |  |  |
| &nbsp;&nbsp;Finance Company | $5882 | $6366 |
| &nbsp;&nbsp;Broker-Dealer |  |  |
| &nbsp;&nbsp;Charitable Organization |  |  |
| &nbsp;&nbsp;Other Segments |  |  |
| &nbsp;&nbsp;Adjustments / Eliminations | (1189) | (1329) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $4693 | $5037 |
| **Total non-interest expense and provision for tax** |  |  |
| &nbsp;&nbsp;Finance Company | $2823 | $2697 |
| &nbsp;&nbsp;Broker Dealer | 1323 | 1533 |
| &nbsp;&nbsp;Charitable Organization | 24 | 52 |
| &nbsp;&nbsp;Other Segments |  |  |
| &nbsp;&nbsp;Adjustments / Eliminations | (20) | (50) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $4150 | $4232 |
| **Net profit (loss)** |  |  |
| &nbsp;&nbsp;Finance Company | $(758) | $(1498) |
| &nbsp;&nbsp;Broker Dealer | 717 | 671 |
| &nbsp;&nbsp;Charitable Organization | 53 | 32 |
| &nbsp;&nbsp;Other Segments | 2 | 2 |
| &nbsp;&nbsp;Adjustments / Eliminations | 16 | 186 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $30 | $(607) |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  | **(Unaudited)** | **(Audited)**  |
| **Total assets** |  |  |
| &nbsp;&nbsp;Finance Company | $99080 | $101563 |
| &nbsp;&nbsp;Broker Dealer | 3350 | 2591 |
| &nbsp;&nbsp;Charitable Organization | 2196 | 2140 |
| &nbsp;&nbsp;Other Segments | 59 | 58 |
| &nbsp;&nbsp;Adjustments / Eliminations | 2927 | 2898 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $107612 | $109250 |

---

### Note 19. Condensed Financial Statements of Parent Company
Financial information pertaining only to the parent company, Ministry Partners Investment Company, LLC, is as follows (dollars in thousands):

#### Ministry Partners Investment Company, LLC Balance Sheet

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2024** |
| **Assets:** |  |  |
| Cash | $7337 | $7307 |
| Certificates of deposit | 1519 | 1305 |
| Loans receivable, net of allowance for loan losses | 90827 | 93171 |
| Investment in subsidiaries | 3854 | 3065 |
| Other assets | 2959 | 3340 |
| Total assets | $106496 | $108188 |
| **Liabilities and members' equity** |  |  |
| **Liabilities:** |  |  |
| Other borrowings | $6 | $6 |
| Debt certificates, net of debt issuance costs | 93818 | 94456 |
| Other liabilities  | 1178 | 1795 |
| Total liabilities  | 95002 | 96257 |
| Equity | 11494 | 11931 |
| **Total liabilities and members' equity** | $106496 | $108188 |

---

#### Ministry Partners Investment Company, LLC Statement of Operations

---

| | | |
|:---|:---|:---|
|  | **For the years ended** | **For the years ended** |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Income: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest Income | $7388 | $7016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income | 525 | 422 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total income | 7913 | 7438 |
| Interest expense: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other borrowings |  | 393 |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt certificates | 5882 | 5973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 5882 | 6366 |
| Credit for loan losses | (34) | (126) |
| Other operating expenses | 2813 | 2683 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income (loss) before provision for income taxes | (748) | (1485) |
| Provision for income taxes and state LLC fees | 10 | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income (loss) before equity in undistributed net income of subsidiaries | (758) | (1498) |
| Equity in undistributed net income of subsidiaries | 788 | 891 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | $30 | $(607) |

---

## **Table of Contents**

#### Ministry Partners Investment Company, LLC Statement of Cash Flows

---

| | | |
|:---|:---|:---|
|  | **For the years ended** | **For the years ended** |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |
| Net income (loss) | $30 | $(607) |
| Adjustments to reconcile net income (loss) to net cash used by operating activities: |  |  |
| &nbsp;&nbsp;Equity in undistributed net income of subsidiaries | (788) | (891) |
| &nbsp;&nbsp;Depreciation | 25 | 32 |
| &nbsp;&nbsp;Amortization of deferred loan fees, net | (30) | (111) |
| &nbsp;&nbsp;Amortization of debt issuance costs | 781 | 897 |
| &nbsp;&nbsp;Provision for loan losses | (34) | (126) |
| &nbsp;&nbsp;Accretion of loan discount | (11) | (17) |
| &nbsp;&nbsp;Gain on sale of loans | (12) | (96) |
| &nbsp;&nbsp;Gain on sale of foreclosed assets | (182) |  |
| &nbsp;&nbsp;Loss on sale of fixed assets |  | 2 |
| &nbsp;&nbsp;Changes in: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | 110 | 411 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | (617) | 163 |
| Net cash used by operating activities | (728) | (343) |
| CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |
| Loan purchases | (4113) | (66) |
| Loan originations | (3141) | (8721) |
| Loan sales | 1100 | 8370 |
| Loan principal collections | 8552 | 6045 |
| Withdrawal of capital from subsidiary |  | 3000 |
| Purchase of certificates of deposit | (214) | (26) |
| Foreclosed property sales | 483 |  |
| Purchase of property and equipment |  | (62) |
| Net cash provided by investing activities | 2667 | 8540 |
| CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |
| Borrowings, net of repayments on lines of credit |  | (4500) |
| Net change in debt certificates | (650) | (1871) |
| Debt issuance costs | (769) | (796) |
| Dividends paid on preferred units | (490) | (575) |
| Net cash used by financing activities | (1909) | (7742) |
| Net increase in cash and restricted cash | 30 | 455 |
| Cash, cash equivalents, and restricted cash at beginning of period | 7307 | 6852 |
| Cash, cash equivalents, and restricted cash at end of period | $7337 | $7307 |
| Supplemental disclosures of cash flow information |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest paid | $5041 | $5071 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid | 16 | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;Leased assets obtained in exchange of new operating lease liabilities | 387 | 387 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities recorded | 387 | 387 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends declared to preferred unit holders | 108 | 130 |

---

## **Table of Contents**

### Note 20. Not-for-Profit Subsidiary Activities
The following represent required disclosures related to the activities of MPC, the Company's wholly owned, not-for-profit organization.

At December 31, 2025 and December 31, 2024, the Company had $322 thousand and $304 thousand, respectively, in cash held in a checking account available to meet general expenditure needs for the next twelve months. This does not include $1.7 million in cash that carries permanent donor restrictions. At December 31, 2025, there were $75 thousand in funds accrued to distribute related to the designated fund agreement reached between MPC and a donor. Management believes the cash available for use by MPC is sufficient to cover its expenses.

At December 31, 2025 and December 31, 2024, MPC had $2.1 million in net assets. At December 31, 2025 and December 31, 2024, $1.7 million of those net assets was permanently restricted by donors. MPC earned interest income of $77 thousand during the year ended December 31, 2025. MPC earned $84 thousand in interest income during the year ended December 31, 2024.

A breakdown of expenses for MPC for the years ended December 31, 2025 and 2024 is as follows (dollars in thousands):

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** |
| **Expenses** |  |  |
| &nbsp;&nbsp;Charitable grants | $20 | $50 |
| &nbsp;&nbsp;General and administrative expenses | 4 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $24 | $52 |

---

The change in net assets for MPC for the years ended December 31, 2025 and 2024 is as follows (dollars in thousands):

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** |
| &nbsp;&nbsp;Change in net assets | $53 | $32 |

---

## **Table of Contents**
**ITEM 9.&nbsp;&nbsp;&nbsp;&nbsp; CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE**

None.

**ITEM 9A.** **CONTROLS AND PROCEDURES**

### Evaluation of Disclosure Controls and Procedures
Our Principal Executive Officer and Principal Financial Officer have evaluated the effectiveness of our disclosure controls and procedures as of the fiscal period ending December 31, 2025, covered by this Report on Form 10-K. The officers performed this evaluation as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. From this evaluation, our Principal Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures were effective as of and for the year ended December 31, 2025. This conclusion by our Principal Executive Officer and Principal Financial Officer does not relate to reporting periods after December 31, 2025.

### Management's Report on Internal Control over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over our financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America.

Our internal controls over financial reporting include those policies and procedures that:

● pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;

● provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and that our receipts and expenditures are being made only in accordance with authorizations of management and the Board; and

## **Table of Contents**
● provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on our financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Management assessed the effectiveness of our internal control over financial reporting as of and for the year ended December 31, 2025. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission Internal Control-Integrated Framework. Based on this assessment, management believes that, as of and for the year ended December 31, 2025, our internal control over financial reporting is effective.

This Report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by our registered public accounting firm pursuant to rules of the SEC that permit us to provide only management's report in this Report on Form 10-K.

**ITEM 9B.** **OTHER INFORMATION**

None.

**ITEM 9C.** **DISCLOSURE REGARDING FOREIGN JURISDICTONS THAT PREVENT INSPECTIONS**

None.

### PART III

### ITEM 10. MANAGERS AND EXECUTIVE OFFICERS OF THE REGISTRANT

### Summary of the business experience of our executive officers and managers
Set forth below are the members of our Board of Managers and executive officers:

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Managers/Executive Officers** |
| R. Michael Lee | 67 | Chairman of the Board, Manager |
| Van C. Elliott | 88 | Corporate Secretary, Manager |
| Juli Anne Molinaro | 73 | ALCO Committee Chairperson, Credit Committee Chairperson, Manager |
| Nicolette Harms | 56 | Audit Committee Chairperson, Manager |
| Darren Thompson | 45 | Chief Executive Officer and President |
| Daniel Cerio | 50 | Chief Financial Officer and Principal Accounting Officer  |
| Daniel Flude | 43 | Vice President of Finance |
| Jerrod Foresman | 57 | Manager |
| Tim Newell | 62 | Manager |

---

As a limited liability company, we are governed by a Board of Managers that supervises our affairs (hereinafter referred to as the "**Board**").

R. MICHAEL LEE

Mr. Lee has served as a member of our Board since January 2009. He was appointed Chairman of the Board in May 2015. Mr. Lee currently serves as President Emeritus for Consumers Credit Union in Illinois. Previously, Mr. Lee served at President/CEO for KCT Credit Union, Vice President Member Relations for Alloya Corporate Federal Credit Union, President of Midwest Region for Members United Federal Credit Union, Chief Membership Officer for Mid-States Corporate Federal Credit Union, Senior Vice President US Central Federal Credit Union, SVP Corporate Network eCom, SVP Corporate One Federal Credit Union and Vice President of Sales for a national insurance agency. In the insurance industry, Mr. Lee spent 15 years in different positions that led him to managing a national sales force that served the needs of business owners. He attended Southern Illinois University, CUNA's Financial Management School, and completed numerous industry training sessions throughout his career. Mr. Lee adds special expertise to our Board with his years of experience as an executive of several large financial institutions and with his deep knowledge of both the insurance and financial industries. Mr. Lee currently serves as Chairman of

## **Table of Contents**
the Board, Chairman of the Executive/Governance Committee, Chairman of the ALCO Committee and serves as the Chairman of the Board for MP Securities.

#### VAN C. ELLIOTT
Mr. Elliott has served as a member of our Board since 1991. He has served as a director for AdelFi Credit Union ("**AdelFi**") from 1988 until 2022 (except for the periods from March 1997 to March 1998 and March 2004 to March 2005). Mr. Elliott served as associate director of the Conservative Baptist Association of Southern California from 1980 to 1994, where he was responsible for the general administrative oversight of the association's activities. Since that time, he has been self-employed as a consultant providing organizational, financial, and fund-raising consultation services to church and church-related organizations. He received his Bachelor's and Master's degrees in mathematics and speech from Purdue University and spent seven years in the computer industry. Mr. Elliott holds a Master of Divinity from Denver Seminary and has spent fourteen years in local church ministries serving in the area of Christian education and administration. He has completed post-graduate instruction at the College for Financial Planning. Mr. Elliott is a member of the Financial Planning Association and holds the professional designation of Certified Financial Planner. Mr. Elliott brings to our Board his extensive experience as a credit union board member and intimate knowledge of church and ministry financial operations. In addition to being the Secretary of the Board, he serves on our Executive /Governance Committee, Board Credit Committee and Audit Committee. In addition he serves on the Board of Ministry Partners for Christ, a wholly-owned foundation of Ministry Partners Investment Company and chairs its Grant Committee.

#### JULI ANNE MOLINARO
Mrs. Molinaro has served as a member of our Board since 2007. She is currently a member of the Board of Directors of the Eastern Pregnancy Information Clinic ("**EPIC**") that provides pregnancy consulting resources to women in North Carolina. She previously served as a Chief Judge on the Chatham County Board of Elections and an independent Strategy Consultant. Prior to her current engagement, Mrs. Molinaro served as the Chief Strategy Officer of Raoust + Partners, a Hampton, Virginia based strategic planning and marketing firm for credit unions. Mrs. Molinaro previously also served as Senior Vice President of Research and Development for Western Bancorp in San Jose, California. Prior to that engagement, she served as President and Chief Executive Officer of the National Institute of Health Federal Credit Union, a Rockville, Maryland credit union. Prior to that, she was Executive Vice President and Chief Operating Officer of KeyPoint Credit Union, a Silicon Valley California credit union and the President of its subsidiary, KeyPoint Financial Services. Before joining KeyPoint Credit Union, Mrs. Molinaro served as Vice President for Business Development, Marketing and Legislative Affairs from 1988-1995 at Langley Federal Credit Union, a Hampton Roads, Virginia credit union. Prior to joining the credit union industry, Mrs. Molinaro served as the Director of Sales for the US Navy Mid-Atlantic Region, which included

## **Table of Contents**
the direct responsibility for public relations and sales for all Navy Exchange and Commissary Operations in the Mid-Atlantic States, Europe, Iceland, and Bermuda. Mrs. Molinaro received her Bachelor of Science degree in Community Health and Education from East Carolina University and received a Master's degree in Organizational Development from the University of San Francisco. Mrs. Molinaro served as the Chairwoman on the Board of Directors for the George Washington Institute of Health and Women in BIO. She also previously served as Chair for the Executive Committee of the Open Solutions Client Association and serves currently as a Trustee of the International Mission Board of the Southern Baptist Convention. Mrs. Molinaro provides our Board with the benefit of her extensive experience in financial institution operations and technology and especially, her asset-liability management expertise. Mrs. Molinaro serves on the Company's Executive Committee and Chair of the Board Credit Committee, and is a member of the Asset-Liability Committee.

#### Nicolette Harms
Mrs. Harms was appointed to serve as a member of the Company's Board of Managers on November 9, 2023, effective December 15, 2023. Ms. Harms currently serves as Senior Vice President and Chief Accounting Officer of AdelFi, a Division of Christian Community Credit Union, a San Dimas, California state-chartered credit union. The Company was formed by AdelFi as a wholly-owned credit union service organization and was spun off and recapitalized as an independent credit union service organization in 2006. AdelFi remains, however, the Company's largest equity owner. Ms. Harms is responsible for overseeing the Credit Union's accounting and financial reporting and is a member of the credit union's ALCO, pricing, credit, and enterprise risk committees. Previously, Ms. Harms served in various management and executive roles for 28 years in ACCU's finance and accounting department, including serving as Senior Vice President and Chief Financial Officer from 2008 – 2023. Ms. Harms has a bachelor's degree in accounting from Azusa Pacific University and is also a Certified Public Accountant. Ms. Harms has also served in various roles including as a Finance Committee member and Treasurer for faith-based ministries located in southern California.

#### DARREN THOMPSON
Effective as of December 15, 2023, Mr. Thompson was appointed as the Company's Chief Executive Officer and President. Mr. Thompson previously served as the Company's Executive Vice President and Chief Operating Officer. The Board appointed Mr. Thompson to the position of Chief Executive Officer and President of both the Company and Ministry Partners Securities, LLC, effective December 15, 2023, as detailed in the section titled "Chief Executive Officer and President Succession Plan" below. Mr. Thompson previously served as the Chief Lending Officer at America's Christian Credit Union ("**ACCU**") and had been with the credit union since 2011. In his role as Chief Lending Officer, Mr. Thompson oversaw all of lending, including origination,

## **Table of Contents**
servicing, collection, and loan participations for both consumer and business loans. At ACCU, Mr. Thompson was a member of the Chief Officer Group and the Asset-Liability Committee. He also led the Loan Review Committee and attended monthly meetings of the Board of Directors. Prior to his work at ACCU, he served as a Treasury & Funding Trader for Western Corporate Federal Credit Union, assisting in the management of a $32 billion portfolio. Mr. Thompson holds the FINRA Series 7, 24, and 66 licenses.

#### DANIEL CERIO
On January 5, 2026, Ministry Partners Investment Company, LLC (the "Company") hired Daniel M. Cerio as its Senior Vice-President and Chief Financial Officer, as well as it Principal Accounting Officer. Mr. Cerio has 30 years of finance experience in a variety of industries including financial services, healthcare, and manufacturing. He most recently served as the Vice President of Finance at Boomerang Healthcare, a private equity-sponsored company that offers pain management and functional restoration services for workers' compensation, personal injury, Medicare, and commercial insurance patients. Mr. Cerio was responsible for all aspects of the finance and accounting function including internal and external financial reporting, treasury, budgeting and forecasting, taxation, regulatory compliance, data analysis, and strategic investment. Prior to his work at Boomerang Healthcare, he served as Vice President of Finance for Gatekeeper Systems, a private equity-sponsored company that specializes in the manufacture and installation of loss prevention solutions for domestic and international retailers. Mr. Cerio has a bachelor's degree in accounting from Azusa Pacific University and has been a Certified Public Accountant in the state of California since 1998. Mr. Cerio has also served as a Board Member and Treasurer for two faith-based ministries in Southern California.

#### DANIEL FLUDE
Effective as of January 3, 2025, Mr. Flude was appointed as the Company's Principal Accounting Officer. While not an executive officer, Mr. Flude has served as the Company's Controller since 2018 and Vice President of Finance since 2022. Mr. Flude has worked in the finance department at the Company since 2008. Mr. Flude is a Certified Public Accountant and holds a Bachelor of Science in Accounting from the University of Oregon, Cum Laude. Mr. Flude also serves as the Finance Operations Principal for Ministry Partners Securities and holds the FINRA Series 28 and 99 licenses.

#### JERROD FORESMAN
Mr. Foresman has served as a Company Board Member since May 2012 and MP Securities since November 2018. Mr. Foresman is Founder and CEO of Myrias Financial Management, Inc., which is an Office of Supervisory Jurisdiction for Osaic Institutions, Inc. Jerrod is registered with Osaic

## **Table of Contents**
Institutions as a financial advisor and the OSJ Principal managing bank and credit union investment programs for over 70 branch locations in the mid-west. He is also the President of Senior Plan Resources, LLC, a subsidiary of Myrias Financial Management. Senior Plan Resources provides Medicare Advantage and Medicare Supplement plans. Jerrod is also President & Co-Owner of Virtue Financial Advisors, LLC. an insurance agency providing annuities, life insurance and long-term care. Formerly President, Chief Compliance Officer, and FINOP of Bankers & Investors Company Inc., a Registered Broker/Dealer, Investment Advisor, and Insurance Agency in Kansas City, Jerrod ran compliance and operations for over 11 years and built the Investment Advisory firm in 2009. Bankers & Investors Co. provided investment services for 7 banks (48 branches) and 4 credit unions (12 branches) in Missouri and Kansas. Mr. Foresman has been serving as a financial advisor since 1990 and has managed and owned financial advisory/marketing firms specializing in working with credit unions and community banks since 1993. Mr. Foresman holds the FINRA Series 7, 24, 27, 63, 65, 66, and 99 licenses as well as life, health, property & casualty insurance licenses. Mr. Foresman serves on the Company's Audit Committee, Asset-Liability Committee,and on the Board of MP Securities.

#### TIM NEWELL
Mr. Newell was appointed to serve as a member of the Company's Board of Managers in February 2025. Mr. Newell is the Founder and CEO of the HIS Group of Companies, a collective of mission-aligned stewardship companies that manage financial resources with Biblically Responsible Investments (BRI). Mr. Newell's leadership extends across both the non-profit and for-profit faith-forward sectors, offering custom-designed 403(b)(9), 403(b)(7) & 401(k)plans to ministries and nonprofits, and HIS Envoys Faith-Based funds giving BRI-integrated retirement options to businesses. Mr. Newell is a Certified Financial Planner, Master Certified Estate Planner, and Certified Kingdom Advisor, and he holds an Accredited Investment Fiduciary designation. Mr. Newell serves on the Company's Credit Committee and on the Board of Managers of MP Securities.

### Our Board of Managers
The Operating Agreement charges our Board and officers with governing and conducting our business and affairs. The Operating Agreement charges our Board with essentially the same duties, obligations, and responsibilities as a board of directors of a corporation. The Board establishes our policies and periodically reviews them and has authorized designated officers and our President the authority to carry out those policies. As of December 31, 2025, our Board consists of seven managers, a majority of which are independent managers.

## **Table of Contents**

### Board Committees
Our Board may from time to time establish and empower board committees to perform various functions on its behalf. Each committee consists of at least three persons. Currently, the Board has established the following committees:

● Our Executive Committee is charged with responsibility for determining the President's compensation and undertaking other matters of an executive and strategic oversight nature;

● Our Audit Committee is chartered to oversee the annual audit of our financial reports, oversee the establishment and maintenance of internal controls and oversee compliance with our Ethics Policy;

● Our Board Credit Committee is authorized to oversee compliance with our Loan Policy and to review the performance and management of our loan portfolio and to approve loan originations over a certain dollar amount or loans that have fallen outside of the parameters of the Loan Policy;

● Our Credit Review Committee reviews and implements our Loan Policy and reviews most of the loan applications we receive;

● Our Asset Liability Committee is chartered to oversee the maintenance of our asset liability strategy and process, as well as our asset liability, liquidity and other policies relating to the mitigation of risks to our earnings and capital; and

● Our Governance Committee is charged with responsibility for the Board Governance Policies, including our Related Parties Transaction Policy, and with the periodic task of nominating persons for election to the Board.

### Code of Ethics
On November 6, 2009, our Board adopted a Code of Ethics for our principal officers and members of the Board.

### Indemnification of Our Managers and Officers
We may indemnify any of our Managers, officers, Members, employees or agents, provided the agent seeking indemnification acted in good faith and in a manner that the person reasonably believed to be in our best interests and provided that the acts do not constitute gross negligence, intentional misconduct or a knowing violation of law. To the extent we are successful on the merits

## **Table of Contents**
in defense of our agent's actions, the agent will be indemnified for all reasonable expenses incurred. In all other instances, a majority of the Members must approve indemnification. We can advance our agent's defense costs if approved by Managers who are not seeking indemnification or, if there are none, by a majority of our Members. Our Managers who are not otherwise involved in the action can approve the advancement of our agent's defense costs if they receive an undertaking from the person to repay such amount in the event that it is ultimately determined that the person is not entitled to indemnification.

It is the position of some federal and state agencies, including the Pennsylvania Department of Banking and Securities, that indemnification with violations of Securities Law is against public policy and void.

### Audit Committee
As authorized within the operating agreement for Ministry Partners Investment Company LLC, the Board of Managers established the Audit Committee in 2005 with the adoption of its formal charter. The primary purpose of the Audit Committee, as designated in its formal charter, is to oversee the Company's accounting policies and practice, financial reporting procedures and audits of the Company's financial statements. For the year ended December 31, 2025, the Audit Committee comprises three members, including Nicolette Harms, Van Elliott, and Jerrod Foresman. Mrs. Harms is a CPA and the Chief Financial Officer of AdelFi and brings 30 plus years of experience in finance and accounting practices as the Chairperson of the Audit Committee. Mr. Elliott, Certified Financial Planner and church leadership consultant, is a member of the Audit Committee and also serves as the Corporate Secretary of the overall Board of Managers. Mr. Elliott brings extensive experience as a credit union board member and has intimate knowledge of the Company's financial operations as he has served as the Company's Interim Chief Executive Officer on several occasions over the last 30 plus years since the Company's inception. Mr. Foresman has over 30 years of experience in the financial services industry as an Executive, Compliance Officer, and Operations Principal. His knowledge of the financial operations of broker-dealers, advisory firms, and insurance agencies benefits the Audit Committee in its role of overseeing the operations of both the Company and MP Securities, the Company's wholly-owned subsidiary.

## **Table of Contents**
**ITEM 11.** **EXECUTIVE AND BOARD OF MANAGER COMPENSATION**

### Executive Compensation
The following table sets forth certain information regarding compensation we paid for services rendered to us during the years ended December 31, 2025 and 2024 by our senior executive officers.

**Summary Annual Compensation Table**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| <br>**Name** | <br>**Principal Position** | **Salary** | **Bonus** | **All OtherCompensation (1)** | **Salary** | **Bonus** | **All OtherCompensation (1)** |
| Darren M. Thompson | Chief Executive Officer and President | 269448 | 16476 | 41159 | 261525 | 1000 | 39817 |
| Brian S. Barbre (2) | Sr. Vice President, Chief Financial Officer and Principal Accounting Officer | 28106 |  | 4429 | 194027 | 3000 | 47348 |
| Daniel Flude | Vice President of Finance and Principal Accounting Officer | 164434 | 5000 | 36939 | 133495 | 8500 | 33516 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) This includes the aggregate amount we contributed to the Company's 401(k) retirement plan, for medical benefits, and life and disability insurance for the Company's officers in each year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Mr. Barbre left the Company to pursue other career objectives effective January 3, 2025.

### Board of Managers Compensation
The following table provides a summary of the compensation paid to our Managers for the year ended December 31, 2025:

---

| | | | |
|:---|:---|:---|:---|
| **Name** |  | **Principal Position** | **Compensation**<sup>(1)</sup>  |
| Michael Lee |  | Chairman of the Board of Managers | $14250 |
| Van Elliott |  | Secretary and Manager | 10500 |
| Juli Anne Molinaro |  | Manager | 9750 |
| Jerrod Foresman |  | Manager | 9500 |
| Nicolette Harms | (1) | Manager |  |
| Tim Newell |  | Manager | 4750 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Mrs. Harms elected not to receive compensation for the year ended December 31, 2025.

## **Table of Contents**
**ITEM 12.** **SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED MEMBER MATTERS**

The following table sets forth information available to us, as of December 31, 2025, with respect to our Class A Units owned by each of our executive officers and our managers, and by our managers and executive officers as a group, and by each person who is known to us to be the beneficial owner of more than 5.0% of our Class A Units.

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Address** | **BeneficialOwnership** | **PercentageOwned**<sup>(1)</sup> |
| R. Michael Lee | (1) | $— | —% |
| Van C. Elliott | (1) |  | —% |
| Juli Anne Molinaro | (1) |  | —% |
| Jerrod L. Foresman | (1) |  | —% |
| Nicolette Harms | (1) |  | —% |
| Tim Newell | (1) |  | —% |
| Darren M. Thompson | (1) |  | —% |
| Daniel Cerio | (1) |  | —% |
| All officers and members of the Board as a group |  | $— | —% |
| 1 Pointe Dr, Ste 205, Brea, CA, 92821 | 1 Pointe Dr, Ste 205, Brea, CA, 92821 | 1 Pointe Dr, Ste 205, Brea, CA, 92821 | 1 Pointe Dr, Ste 205, Brea, CA, 92821 |

---

**Other 5% or greater beneficial owners (seven):**

---

| | | |
|:---|:---|:---|
| <br>**Name** | **Beneficial**<br>**Ownership** | **Percentage**<br>**Owned**<sup>(1)</sup> |
| AdelFi Credit Union | 62000 | 42.31% |
| America's Christian Credit Union | 12000 | 8.19% |
| Navy Federal Credit Union (2) ("**NFCU")** | 11905 | 8.13% |
| UNIFY Financial Credit Union ("**UFCU**") | 11905 | 8.13% |
| Wescom Credit Union | 11905 | 8.13% |
| Credit Union of Southern California | 11900 | 8.12% |
| Keypoint Credit Union | 8000 | 5.46% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Based on 146,522 Class A Units outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;(2) NFCU is a non-voting equity member in the Company, but holds a beneficial interest in 11,905 Class A Common Units. As the holder of an economic interest in the Company, NFCU holds a beneficial interest in the Company.

**ITEM 13.** **CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE**

The following table provides disclosures required by Regulation S-K Item 404 and Item 407(a), "Certain Relationships and Related Transactions."

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Transactions by related parties in the amount that exceeds $120,000 (dollars in thousands)** | **Transactions by related parties in the amount that exceeds $120,000 (dollars in thousands)** | **Transactions by related parties in the amount that exceeds $120,000 (dollars in thousands)** | **Transactions by related parties in the amount that exceeds $120,000 (dollars in thousands)** | **Transactions by related parties in the amount that exceeds $120,000 (dollars in thousands)** |
| | | | **Amount oftransaction** | **Amount oftransaction** |
| <br>**Related Party Name** | <br>**Related Interest** | <br>**Transaction description** | **2025** | **2024** |
| Mendell Thompson | Relative of executive officer | Purchase of the Company's debt certificates | $158 | $150 |
| AdelFi | 43.1% equity owner | Total funds held on deposit at AdelFi | 3321 | 4126 |
| ACCU | 8.19% equity owner | Loans purchased from ACCU | 1072 |  |
| ACCU | 8.19% equity owner | Total funds held on deposit at ACCU  | 2377 | 1027 |
| ACCU | 8.19% equity owner | Draws on ACCU line of credit |  | 3000 |
| ACCU | 8.19% equity owner | Loan participations sold to ACCU and serviced by the Company | 1354 | 1360 |
| KCTCU | The Company's Board Chair served as the Chief Executive Officer and President of KCT | Draws on KCT line of credit |  | 4500 |

---

### ACCU Line of Credit
On September 23, 2021, the Company entered into a Loan and Security Agreement with ACCU for a $5.0 million short-term demand credit facility which is further detailed in the Management's Discussion and Analysis under the section "[Liquidity Sources](#MDA_Liquidity_Sources_LOCs)" and ["Note 3" In the notes to the Consolidated Financial Statements](#Note3_ACCU_Trans) on page F-27. ACCU is an owner of the Company.

### KCT Line of Credit
The Company had two lines of credit facilities with KCT Credit Union. The Chief Executive Officer of KCT is the Company's Chairman of its Board of Managers and was the Chief Executive Officer of KCT until December 2024. The lines of credit were closed in 2025 and KCT, which merged with and is now part of Consumers Credit Union, was not considered a related party in 2025. These facilities and the relationship of KCT to the Company are detailed further in ["Note 3" In the notes to the Consolidated Financial Statements](#Note3_KCTCU_Trans) on page F-27.

## **Table of Contents**

### Related Party Transaction Policy
The Board has adopted a Related Party Transaction Policy to assist in evaluating transactions the Company may enter into with a related party. Under this policy, a majority of the members of the Company's Board and majority of its independent Board members must approve a material transaction that it enters into with a related party. As a result, all transactions that the Company undertakes with an affiliate or a related party are entered into on terms believed by management to be no less favorable than are available from unaffiliated third parties.

**ITEM 14.** **PRINCIPAL ACCOUNTANT FEES AND SERVICES**

Before we engage our principal accountant to render audit or non-audit services, our Audit Committee approves the engagement if SEC rules and regulations require it.

The aggregate fees billed by our accounting firm, Hutchinson and Bloodgood LLP, for the years ended December 31 were as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Audit and audit-related fees | $103500 | $105500 |
| Tax fees | 15000 | 13480 |
| All other fees |  | 8940 |
| Total | $118500 | $127920 |

---

Our Audit Committee has considered whether the provision of the non-audit services described above is compatible with maintaining our auditors' independence and determined that such services are appropriate.

## **Table of Contents**
**ITEM 15.** **EXHIBITS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | Incorporated by Reference | Incorporated by Reference | Incorporated by Reference |  |
| Exhibit No. | Description | Form | Exhibit | Filing Date | Filed herewith |
| 3.1 | [Articles of Organization - Conversion, dated as of December 31, 2008](https://www.sec.gov/Archives/edgar/data/944130/000143209308000286/ex2-2.htm) | 8-K | 2.2 | 12/22/2008 |  |
| 3.2 | [Operating Agreement, dated as of December 31, 2008](https://www.sec.gov/Archives/edgar/data/944130/000143209308000286/ex2-3.htm)  | 8-K | 2.3 | 12/22/2008 |  |
| 3.3 | [Plan of Conversion, dated September 18, 2008](https://www.sec.gov/Archives/edgar/data/944130/000143209308000286/ex2-1.htm)  | 8-K | 2.1 | 12/22/2008 |  |
| 3.4 | [Series A Preferred Unit Certificate, dated as of December 31, 2008](https://www.sec.gov/Archives/edgar/data/944130/000143209308000286/ex2-4.htm)  | 8-K | 2.4 | 12/22/2008 |  |
| 3.5 | [First Amendment to the Operating Agreement, effective as of February 11, 2010](https://www.sec.gov/Archives/edgar/data/944130/000143209310000185/ex3-16.htm)  | 10-K | 3.16 | 3/31/2010 |  |
| 3.6 | [Amended and Restated, Series A Preferred Unit Certificate, effective as of May 22, 2013](https://www.sec.gov/Archives/edgar/data/944130/000156650613000107/ex3-7.htm)  | 8-K | 3.7 | 5/23/2013 |  |
| 10.9 | [Form of Individual Manager Indemnification Agreement](https://www.sec.gov/Archives/edgar/data/944130/000101968711002047/ministry_s1-ex1020.htm)  | S-1 | 10.20 | 6/24/2011 |  |
| 10.23 | [Networking Agreement by and between MP Securities and ACCU dated July 30, 2014 and Addendum related thereto dated December 1, 2016.](https://www.sec.gov/Archives/edgar/data/944130/000094413017000039/c130-20171208xex10_23.htm)  | S-1 | 10.23 | 12/8/2017 |  |
| 10.38 | [Master Loan Participation Purchase and Sale Agreement by and between the Company and ACCU, dated August 9, 2021](https://www.sec.gov/Archives/edgar/data/944130/000094413021000046/c130-20210630xex10_38.htm)  | 10-Q | 10.38 | 8/12/2021 |  |
| 10.39 | [Loan Agreement by and between the Company and ACCU, dated September 23, 2021](https://www.sec.gov/Archives/edgar/data/944130/000094413021000049/c130-20210923xex10_39.htm)  | 8-K | 10.39 | 9/28/2021 |  |
| 10.40 | [Supplemental Executive Retirement Plan](https://www.sec.gov/Archives/edgar/data/944130/000094413022000019/c130-20220330xex10_40.htm) | 8-K | 10.40 | 4/6/2022 |  |
| 10.41 | [Warehouse LOC Loan and Security Agreement by and between the Company and KCT dated June 6, 2022.](https://www.sec.gov/Archives/edgar/data/944130/000094413022000027/c130-20220606xex10_41.htm) | 8-K | 10.41 | 6/9/2022 |  |
| 10.42 | [Operating LOC Loan and Security Agreement by and between the Company and KCT dated June 6, 2022.](https://www.sec.gov/Archives/edgar/data/944130/000094413022000027/c130-20220606xex10_42.htm) | 8-K | 10.42 | 6/9/2022 |  |
| 10.45 | [Servicing Agreement between the Company and AmeriNational Community Services, LLC effective as of February 14, 2023.](https://www.sec.gov/Archives/edgar/data/944130/000094413023000014/tmb-20230214xex10d45.htm) | 8-K | 10.45 | 2/21/2023 |  |
| 10.48 | [Client Referrals Agreement](https://www.sec.gov/Archives/edgar/data/944130/000094413023000098/mpic-20231211xex10d48.htm) | S-1/A | 10.48 | 12/12/2023 |  |
| 10.49 | [Trust Indenture by and between the Company and U.S. Bank Trust Company, National Association, as Trustee dated December 28, 2023](https://www.sec.gov/Archives/edgar/data/944130/000094413024000005/mpic-20240124xs1a.htm#_Toc150329426) | S-1/A | A | 1/24/2024 |  |
| 10.50 | [Managing Broker Dealer Agreement by and between the Company and MP Securities, dated January 23, 2024](https://www.sec.gov/Archives/edgar/data/944130/000094413024000005/mpic-20240124xex10d50.htm) | S-1/A | 10.50 | 1/24/2024 |  |
| 10.51 | [Executive Separation Agreement, dated as of November 9, 2023, between the Company and Mr. Turner](https://www.sec.gov/Archives/edgar/data/944130/000094413023000069/mpic-20231109xex10d1.htm) | 8-K | 10.1 | 11/14/2023 |  |
| 10.53 | [Admin. Services Agreement by and between the Company and MP Securities dated January 23, 2024](https://www.sec.gov/Archives/edgar/data/944130/000094413024000005/mpic-20240124xex10d53.htm) | S-1/A | 10.53 | 1/24/2024 |  |
| 14.1 | [Code of Ethics, effective as of February 11, 2010](https://www.sec.gov/Archives/edgar/data/944130/000143209310000185/ex3-17.htm)  | 10-K | 3.17 | 3/31/2010 |  |
| 21.1 | [List of Subsidiaries](mpic-20251231xex21d1.htm) |  |  |  | X |
| 23.1 | [Consent of Hutchinson and Bloodgood LLP](mpic-20251231xex23d1.htm) |  |  |  | X |
| 31.1 | [Cert. of Principal Executive Officer pursuant to Rule 13a-14(a) or Rule 15(d)-14(a)](mpic-20251231xex31d1.htm) |  |  |  | X |
| 31.2 | [Cert. of Principal Financial and Accounting Officer pursuant to Rule 13a-14(a) or Rule 15(d)-14(a)](mpic-20251231xex31d2.htm) |  |  |  | X |
| 32.1 | [Cert. of Principal Executive Officer and Principal Accounting Officer pursuant to 18 U.S.C. §1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](mpic-20251231xex32d1.htm) |  |  |  | X |
| 101.ins | XBRL Taxonomy Extension Definition Linkbase Document \*\* |  |  |  |  |
| 101.sch | XBRL Taxonomy Extension Schema Document \*\* |  |  |  |  |
| 101.def | XBRL Taxonomy Extension Definition Linkbase Document \*\* |  |  |  |  |
| 101.cal | XBRL Taxonomy Extension Calculation Linkbase Document \*\* |  |  |  |  |
| 101.lab | XBRL Taxonomy Extension Label Linkbase Document \*\* |  |  |  |  |
| 101.pre | XBRL Taxonomy Extension Presentation Linkbase Document \*\* |  |  |  |  |

---

\*\* Furnished, not filed, herewith.

### ITEM 16. FORM 10-K SUMMARY
Not applicable.

## **Table of Contents**

### SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  |  | MINISTRY PARTNERS INVESTMENT |
|  |  | COMPANY, LLC |
| Dated: March 31, 2026 | By: | /s/ *Darren Thompson* |
|  |  | Darren Thompson, |
|  |  | Chief Executive Officer |
|  |  | (Principal Executive Officer) |
|  |  | MINISTRY PARTNERS INVESTMENT |
|  |  | COMPANY, LLC |
| Dated: March 31, 2026 | By: | /s/ *Daniel Cerio* |
|  |  | Daniel Cerio, |
|  |  | Chief Financial Officer |
|  |  | (Principal Accounting Officer) |

---

## **Table of Contents**
Each person whose signature appears below on this Form 10-K hereby constitutes and appoints Darren Thompson, as his true and lawful attorney-in-fact and agent, with full power of substitution for him and in his name, place and stead, in any and all capacities (until revoked in writing) to sign this Report of Ministry Partners Investment Company, LLC and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission. Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed by the following persons on behalf of the Company and in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| /s/ R. Michael Lee | Chairman of the Board of Managers | March 31, 2026 |
| R. Michael Lee<br>by Darren Thompson, his attorney-in-fact |  |  |
| /s/ Darren Thompson | Chief Executive Officer, President | March 31, 2026 |
| Darren Thompson |  |  |
| /s/ Daniel Cerio | Chief Financial Officer, Principal Accounting Officer | March 31, 2026 |
| Daniel Cerio |  |  |
| /s/ Van C. Elliott  | Secretary, Manager | March 31, 2026 |
| Van C. Elliott<br>by Darren Thompson, his attorney-in-fact |  |  |
| /s/ Juli Anne Molinaro | Manager | March 31, 2026 |
| Juli Anne Molinaro<br>by Darren Thompson, her attorney-in-fact |  |  |
| /s/ Jerrod L. Foresman  | Manager | March 31, 2026 |
| Jerrod L. Foresman<br>by Darren Thompson, his attorney-in-fact |  |  |
| /s/ Nicolette Harms  | Manager | March 31, 2026 |
| Nicolette Harms<br>by Darren Thompson, his attorney-in-fact |  |  |
| /s/ Tim Newell  | Manager | March 31, 2026 |
| Tim Newell<br>by Darren Thompson, his attorney-in-fact |  |  |

---

## Exhibit 21.1

**EXHIBIT 21.1**

**LIST OF SUBSIDIARIES**

1. Ministry Partners Funding, LLC

2. MP Realty Services, Inc.

3. Ministry Partners Securities, LLC

4. Ministry Partners for Christ, Inc.

------

## Exhibit 23.1

#### CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Managers

Ministry Partners Investment Company, LLC

Brea, California

We hereby consent to the use, in the Form 10-K for Ministry Partners Investment Company, LLC and Subsidiaries for 2025, of our issued report dated March 31, 2026, relating to the consolidated financial statements of Ministry Partners Investment Company, LLC and Subsidiaries as of December 31, 2025 and 2024 and for the years then ended.

/s/ Hutchinson and Bloodgood LLP

Glendale, California

March 31, 2026

------

## Exhibit 31.1

**EXHIBIT 31.1**

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND

PRINCIPAL FINANCIAL OFFICER PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Darren M. Thompson, certify that:

1. I have reviewed this Annual Report on Form 10-K of Ministry Partners Investment Company, LLC (the **"Company**");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the Company as of, and for, the periods presented in this report;

4. The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) for the Company and we have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the Company's internal control over financial reporting that occurred during the Company's most recent fiscal quarter (the Company's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and

5. The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company's auditors and the Audit Committee of the Company's managers (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.

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| | | |
|:---|:---|:---|
| Date: March 31, 2026 | By: | /s/ *Darren M. Thompson* |
|  |  | Darren M. Thompson, |
|  |  | Chief Executive Officer  |

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## Exhibit 31.2

**EXHIBIT 31.2**

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND

PRINCIPAL FINANCIAL OFFICER PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Daniel Cerio, certify that:

1. I have reviewed this Annual Report on Form 10-K of Ministry Partners Investment Company, LLC (the **"Company**");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the Company as of, and for, the periods presented in this report;

4. The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) for the Company and we have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the Company's internal control over financial reporting that occurred during the Company's most recent fiscal quarter (the Company's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company's auditors and the Audit Committee of the Company's managers (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.

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| | | |
|:---|:---|:---|
| Date: March 31, 2026 | By: | /s/ *Daniel Cerio* |
|  |  | Daniel Cerio, |
|  |  | Principal Accounting Officer |

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## Exhibit 32.1

**EXHIBIT 32.1**

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

Each of the undersigned hereby certifies, pursuant to 18 U.S.C. Section 1350, in his or her capacity as an officer of Ministry Partners Investment Company, LLC, (the "Company") that, to his or her knowledge, this Annual Report on Form 10-K for the period ended December 31, 2025 (the "Report") fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition of the Company at the end of such period and the results of operations of the Company for such period.

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| | | |
|:---|:---|:---|
| Date: March 31, 2026 | By: | /s/ *Darren M. Thompson* |
|  |  | Darren M. Thompson, |
|  |  | Chief Executive Officer |
| Date: March 31, 2026 | By: | /s/ *Daniel Cerio* |
|  |  | Daniel Cerio, |
|  |  | Principal Accounting Officer |

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