Borrowings (Tables)

3 Months Ended

Mar. 31, 2025

The following table displays our borrowings and a ranking of priority:

Schedule of Borrowings

	Priority Rank	March 31, 2025			December 31, 2024
Borrowing Source
Purchase and sale agreements and other secured borrowings	1	$	19,278		$	20,359
Secured line of credit from affiliates	2		768			743
Unsecured line of credit (senior)	3		750			750
Other unsecured debt (senior subordinated)	4		1,812			1,812
Unsecured Notes through our public offering, gross	5		19,226			19,968
Other unsecured debt (subordinated)	5		11,500			11,707
Other unsecured debt (junior subordinated)	6		1,126			1,126
Less deferred financing fees			(130	)		(150	)
Total		$	54,330		$	56,315

Schedule of Maturity of Debt

The following table shows the maturity of outstanding debt as of March 31, 2025:

Schedule of Maturity of Debt

Year Maturing	Total Amount Maturing		Public Offering		Other Unsecured		Secured Borrowings
2025	$	26,049	$	4,864	$	3,533	$	17,652
2026		4,609		1,618		2,991		–
2027		11,067		6,421		2,371		2,275
2028		8,672		5,593		3,079		–
2029		3,944		730		3,214		–
2030 and thereafter		119		–		–		119
Total	$	54,460	$	19,226	$	15,188	$	20,046

Schedule of Secured Borrowings

Borrowings secured by loan assets are summarized below:

Schedule of Secured Borrowings

	March 31, 2025				December 31, 2024
	Book Value of Loans which Served as Collateral		Due from Shepherd’s Finance to Loan Purchaser or Lender		Book Value of Loans which Served as Collateral		Due from Shepherd’s Finance to Loan Purchaser or Lender
Loan Purchaser
Builder Finance	$	8,304	$	2,343	$	7,485	$	4,418
S.K. Funding		5,837		6,500		8,229		6,500

Lender
Shuman		541		125		236		125
Jeff Eppinger		3,246		250		4,028		1,500
R. Scott Summers		1,148		903		1,361		903
John C. Solomon		639		563		649		563
Judith Swanson		8,745		6,200		10,626		6,000
Total	$	28,460	$	16,884	$	32,614	$	20,009

Schedule of Roll Forward of Notes Outstanding

The following table is a roll forward of our Notes Program:

	Three Months Ended March 31, 2025			Year Ended December 31, 2024			Three Months Ended March 31, 2024

Gross Notes outstanding, beginning of period	$	19,968		$	20,854		$	20,854
Notes issued		417			5,257			1,349
Note repayments / redemptions		(1,159	)		(6,143	)		(393	)

Gross Notes outstanding, end of period	$	19,226		$	19,968		$	21,810

Less deferred financing costs, net		(114	)		(150	)		(197	)

Notes outstanding, net	$	19,112		$	19,818		$	21,613

Schedule of Roll Forward of Deferred Financing Costs

The following is a roll forward of deferred financing costs:

	Three Months Ended March 31, 2025			Year Ended December 31, 2024			Three Months Ended March 31, 2024

Deferred financing costs, beginning balance	$	1,060		$	939		$	939
Additions		18			121			16
Deferred financing costs, ending balance		1,078			1,060			955
Less accumulated amortization		(964	)		(910	)		(758	)
Deferred financing costs, net	$	114		$	150		$	197

Schedule of Roll Forward of Accumulated Amortization of Deferred Financing Costs

The following is a roll forward of the accumulated amortization of deferred financing costs:

	Three Months Ended March 31, 2025		Year Ended December 31, 2024		Three Months Ended March 31, 2024

Accumulated amortization, beginning balance	$	910	$	703	$	703
Additions		54		207		55
Accumulated amortization, ending balance	$	964	$	910	$	758

Schedule of Other Unsecured Loans

Our other unsecured debts are detailed below:

Schedule of Other Unsecured Loans

Loan	Maturity Date	Interest Rate⁽¹⁾			March 31, 2025		December 31, 2024
Unsecured Line of Credit from Judith Swanson	March 2026		10.0	%		800		1,000
Unsecured Line of Credit from Judith Swanson	July 2026		10.0	%		500		500
Unsecured Line of Credit from Builder Finance, Inc. Senior Subordinated	January 2027		10.0	%		750		750
Subordinated Promissory Note	February 2027		9.0	%		600		600
Subordinated Promissory Note	March 2026		9.75	%		500		500
Subordinated Promissory Note	December 2027		10.0	%		20		20
Subordinated Promissory Note	January 2029		9.0	%		15		15
Subordinated Promissory Note	February 2027		8.5	%		200		200
Subordinated Promissory Note	March 2027		10.0	%		26		26
Subordinated Promissory Note	November 2026		9.5	%		200		200
Subordinated Promissory Note	March 2027		9.5	%		1,000		–
Subordinated Promissory Note	April 2025		10.0	%		202		202
Subordinated Promissory Note	July 2025		8.0	%		100		100
Subordinated Promissory Note	September 2027		10	%		108		108
Subordinated Promissory Note	October 2025		8.0	%		100		100
Subordinated Promissory Note	December 2025		8.0	%		180		180
Subordinated Promissory Note	August 2026		8.0	%		291		291
Senior Subordinated Promissory Note	July 2026⁽²⁾		1.0	%		740		740
Junior Subordinated Promissory Note	July 2026⁽²⁾		20.0	%		460		460
Junior Subordinated Promissory Note	October 2028⁽²⁾		1.0	%		1,072		1,072
Junior Subordinated Promissory Note	October 2028⁽²⁾		20.0	%		666		666
Subordinated Promissory Note	March 2029		10.0	%		1,200		1,200
Subordinated Promissory Note	May 2027		10.0	%		97		97
Subordinated Promissory Note	November 2027		10.0	%		120		120
Subordinated Promissory Note	June 2025		10.0	%		1,000		1,000
Subordinated Promissory Note	April 2028		10.0	%		149		149
Subordinated Promissory Note	April 2029		11.0	%		2,000		2,000
Subordinated Promissory Note	January 2025		11.0	%		–		1,007
Subordinated Promissory Note	October 2027		8.50	%		200		200
Subordinated Promissory Note	October 2028		10.0	%		1,043		1,043
Subordinated Promissory Note	December 2028		10.0	%		149		149
Subordinated Promissory Note	Varies ⁽³⁾		10.0	%		700		700
Total Other Unsecured Debt					$	15,188	$	15,395

(1)		Interest rate per annum, based upon actual days outstanding and a 365/366-day year.

(2)		These notes were issued to the same holder and, when calculated together, yield a blended rate of 10% per annum.

(3)		Lender may elect to terminate, effective semi-annually as of August 16 and/or February 16 of any given year. As of December 31, 2024 the rate was Prime + 1.5%.

Shepherd's Finance, LLC 10-Q