Shepherd's Finance Earnings 2020-03-31

Balance Sheet	Income Statement	Cash Flow

10-Q 1 form10-q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended March 31, 2020

[ ] 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 333-224557

SHEPHERD’S FINANCE, LLC

(Exact name of registrant as specified on its charter)

Delaware		36-4608739
(State or other jurisdiction of		(I.R.S. Employer
Incorporation or organization)		Identification No.)

13241 Bartram Park Blvd., Suite 2401, Jacksonville, Florida 32258

(Address of principal executive offices)

(302) 752-2688

(Registrant’s telephone number including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class		Trading Symbol(s)		Name of Each Exchange on Which Registered
None		None		None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 [X] 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 such files). Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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 filer	[ ]	Accelerated filer	[ ]
Non-accelerated filer	[X]	Smaller reporting company	[X]
Emerging growth company	[X]

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 revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [X]

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

FORM 10-Q

SHEPHERD’S FINANCE, LLC

TABLE OF CONTENTS

	Page

Cautionary Note Regarding Forward-Looking Statements	3

PART I. FINANCIAL INFORMATION	4

Item 1. Financial Statements	4

Interim Condensed Consolidated Balance Sheets as of March 31, 2020 (Unaudited) and December 31, 2019	4

Interim Condensed Consolidated Statements of Operations (Unaudited) for the Three Months Ended March 31, 2020 and 2019	5

Interim Condensed Consolidated Statement of Changes in Members’ Capital (Unaudited) for the Three Months Ended March 31, 2020 and 2019	6

Interim Condensed Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 31, 2020 and 2019	7

Notes to Interim Condensed Consolidated Financial Statements (Unaudited)	8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	19

Item 3. Quantitative and Qualitative Disclosure About Market Risk	35

Item 4. Controls and Procedures	35

PART II. OTHER INFORMATION	36

Item 1. Legal Proceedings	36

Item 1A. Risk Factors	36

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	36

Item 3. Defaults upon Senior Securities	37

Item 4. Mine Safety Disclosures	37

Item 5. Other Information	37

Item 6. Exhibits	37

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this Form 10-Q of Shepherd’s Finance, LLC, other than historical facts, may be considered forward-looking statements within the meaning of the federal securities laws. Words such as “may,” “will,” “expect,” “anticipate,” “believe,” “estimate,” “continue,” “predict,” or other similar words identify forward-looking statements. Forward-looking statements appear in a number of places in this report, including without limitation, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and include statements regarding our intent, belief or current expectation about, among other things, trends affecting the markets in which we operate, our business, financial condition and growth strategies. Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, forward-looking statements are not guarantees of future performance and involve risks and uncertainties. These risks and uncertainties include, but are not limited to: uncertainties relating to the effects of COVID-19; the length of the COVID-19 pandemic and severity of such outbreak nationally and across the globe; the pace of recovery following the COVID-19 pandemic; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the rate and the pace of economic recovery following economic downturns; and those other risks described in other risk factors as outlined in our Registration Statement on Form S-1, as amended, and our Annual Report on Form 10-K. If any of the events described in “Risk Factors” occur, they could have an adverse effect on our business, consolidated financial condition, results of operations, and cash flows. For further information regarding risks and uncertainties associated with our business, and important factors that could cause our actual results to vary materially from those expressed or implied in such forward-looking statements, please refer to the factors set forth in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of the documents we file from time to time with the U.S. Securities and Exchange Commission, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2019.

When considering forward-looking statements, you should keep these risk factors, as well as the other cautionary statements in this report and in our Annual Report on Form 10-K for the year ended December 31, 2019 in mind. You should not place undue reliance on any forward-looking statement. We are not obligated to update forward-looking statements.

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Shepherd’s Finance, LLC

Interim Condensed Consolidated Balance Sheets

(in thousands of dollars)	March 31, 2020		December 31, 2019
	(Unaudited)
Assets
Cash and cash equivalents	$	3,341	$	1,883
Accrued interest receivable		1,162		1,031
Loans receivable, net		54,197		55,369
Foreclosed assets		5,031		4,916
Premises and equipment		928		936
Other assets		210		202
Total assets	$	64,869	$	64,337
Liabilities and Members’ Capital
Customer interest escrow	$	681	$	643
Accounts payable and accrued expenses		304		466
Accrued interest payable		2,414		2,533
Notes payable secured, net of deferred financing costs		26,054		26,991
Notes payable unsecured, net of deferred financing costs		28,416		26,520
Due to preferred equity member		37		37
Total liabilities	$	57,906	$	57,190

Commitments and Contingencies (Note 9)

Redeemable Preferred Equity
Series C preferred equity	$	3,036	$	2,959

Members’ Capital
Series B preferred equity		1,470		1,470
Class A common equity		2,457		2,718
Members’ capital	$	3,927	$	4,188

Total liabilities, redeemable preferred equity and members’ capital	$	64,869	$	64,337

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

Shepherd’s Finance, LLC

Interim Condensed Consolidated Statements of Operations - Unaudited

For the Three Months ended March 31, 2020 and 2019

	Three Months Ended
	March 31,
(in thousands of dollars)	2020			2019

Net Interest Income
Interest and fee income on loans	$	2,574		$	2,432
Interest expense:
Interest related to secured borrowings		817			681
Interest related to unsecured borrowings		767			625
Interest expense	$	1,584		$	1,306

Net interest income		990			1,126

Less: Loan loss provision		35			47
Net interest income after loan loss provision		955			1,079

Non-Interest Income
Gain on foreclosure of assets	$	-		$	-
Total non-interest income		-			-

Income		955			1,079

Non-Interest Expense
Selling, general and administrative	$	708		$	624
Depreciation and amortization		21			23
Loss on the sale of foreclosed assets		35			-
Impairment loss on foreclosed assets		109			80
Total non-interest expense		873			727

Net income	$	82		$	352

Earned distribution to preferred equity holders		126			105

Net income attributable to common equity holders	$	(44	)	$	247

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

Shepherd’s Finance, LLC

Interim Condensed Consolidated Statements of Changes in Members’ Capital - Unaudited

For the Three Months Ended March 31, 2020 and 2019

(in thousands of dollars)	March 31, 2020			March 31, 2019

Members’ capital, beginning balance	$	4,188		$	3,697
Net income less distributions to Series C preferred equity holders of $89 and $72		(7	)		280
Contributions from Series B preferred equity holders		-			60
Earned distributions to Series B preferred equity holders		(37	)		(33	)
Distributions to common equity holders		(217	)		-

Members’ capital, ending balance	$	3,927		$	4,004

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

Shepherd’s Finance, LLC

Interim Condensed Consolidated Statements of Cash Flows - Unaudited

For the Three Months Ended March 31, 2020 and 2019

	Three Months Ended March 31,
(in thousands of dollars)	2020			2019

Cash flows from operations
Net income	$	82		$	352
Adjustments to reconcile net income to net cash provided by operating activities
Amortization of deferred financing costs		40			65
Provision for loan losses		35			47
Change in loan origination fees, net		(191	)		59
Loss on sale of foreclosed assets		35			-
Impairment of foreclosed assets		109			80
Depreciation and amortization		21			20
Net change in operating assets and liabilities:
Other assets		(21	)		58
Accrued interest receivable		(131	)		(129	)
Customer interest escrow		1			350
Accrued interest payable		(119	)		(48	)
Accounts payable and accrued expenses		(162	)		(137	)

Net cash (used in) provided by operating activities		(302	)		717

Cash flows from investing activities
Loan additions and principal collections, net		1,328			(3,606	)
Investment in foreclosed assets		(444	)		(176	)
Proceeds from the sale of foreclosed assets		185			-

Net cash provided by (used in) investing activities		1,069			(3,782	)

Cash flows from financing activities
Contributions from preferred equity holders		-			60
Distributions to preferred equity holders		(12	)		(32	)
Distributions to common equity holders		(217	)		-
Proceeds from secured note payable		4,084			5,262
Repayments of secured note payable		(4,390	)		(2,459	)
Proceeds from unsecured notes payable		5,261			3,925
Redemptions/repayments of unsecured notes payable		(3,959	)		(3,087	)
Deferred financing costs paid		(77	)		(93	)

Net cash provided by financing activities		691			3,576

Net increase in cash and cash equivalents		1,458			511

Cash and cash equivalents
Beginning of period		1,883			1,401
End of period	$	3,341		$	1,912

Supplemental disclosure of cash flow information
Cash paid for interest	$	1,703		$	1,348

Non-cash investing and financing activities
Reinvested earnings of Series B preferred equity held in interest escrow	$	37		$	34
Earned but not paid distributions of Series C preferred equity holders	$	89		$	72
Secured transferred to unsecured notes payable	$	631		$	-
Reclassification of deferred financing costs from other assets	$	-		$	189

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

Shepherd’s Finance, LLC

Notes to Interim Condensed Consolidated Financial Statements (unaudited)

Information presented throughout these notes to the interim condensed consolidated financial statements (unaudited) is in thousands of dollars.

1. Description of Business and Basis of Presentation

Description of Business

Shepherd’s Finance, LLC and subsidiary (the “Company”) was originally formed as a Pennsylvania limited liability company on May 10, 2007. The Company is the sole member of a consolidating subsidiary, 84 REPA, LLC. The Company operates pursuant to its Second Amended and Restated Operating Agreement, as amended, by and among Daniel M. Wallach and the other members of the Company effective as of March 16, 2017.

As of March 31, 2020, the Company extends commercial loans to residential homebuilders (in 21 states) to:

	●	construct single family homes,
	●	develop undeveloped land into residential building lots, and
	●	purchase and improve for sale older homes.

Basis of Presentation

The accompanying (a) interim condensed consolidated balance sheet as of March 31, 2020, which has been derived from audited consolidated financial statements, and (b) unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 8 of Regulation S-X. While certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), management believes that the disclosures herein are adequate to make the unaudited interim condensed consolidated information presented not misleading. In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of the consolidated financial position, results of operations, and cash flows for the periods presented. Such adjustments are of a normal, recurring nature. The consolidated results of operations for any interim period are not necessarily indicative of results expected for the fiscal year ending December 31, 2020. These unaudited interim condensed consolidated financial statements should be read in conjunction with the 2019 consolidated financial statements and notes thereto (the “2019 Financial Statements”) included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Form 10-K”). The accounting policies followed by the Company are set forth in Note 2 – Summary of Significant Accounting Policies in the 2019 Financial Statements.

Accounting Standards to be Adopted

Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments”. The amendments in ASU 2016-13 introduce a new current expected credit loss (“CECL”) model for certain financial assets, including mortgage loans and reinsurance receivables. The new model will not apply to debt securities classified as available-for-sale. For assets within the scope of the new model, an entity will recognize as an allowance against earnings its estimate of the contractual cash flows not expected to be collected on day one of the asset’s acquisition. The allowance may be reversed through earnings if a security recovers in value. This differs from the current impairment model, which requires recognition of credit losses when they have been incurred and recognizes a security’s subsequent recovery in value in other comprehensive income. ASU 2016-13 also makes targeted changes to the current impairment model for available-for-sale debt securities, which comprise the majority of the Company’s invested assets. Similar to the CECL model, credit loss impairments will be recorded in an allowance against earnings that may be reversed for subsequent recoveries in value. The amendments in ASU 2016-13, along with related amendments in ASU No. 2018-19 - Codification Improvements to Topic 326, Financial Instruments-Credit Losses, are effective for annual and interim periods beginning after December 15, 2019 on a modified retrospective basis. For smaller reporting companies, the effective date for annual and interim periods is January 1, 2023. The Company is reviewing its policies and processes to ensure compliance with the requirements in ASU 2016-13.

FASB ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU amends the disclosure requirements of Topic 820, Fair Value Measurement, to remove disclosure of transfers between Level 1 and Level 2 of the fair value hierarchy and to include disclosure of the range and weighted average used in Level 3 fair value measurements, among other amendments. The ASU applies to all entities that are required to provide disclosures about recurring or non-recurring fair value measurements. Amendments should be applied retrospectively to all periods presented, except for certain amendments, which should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. The effective date for the additional disclosures for calender year-end public companies is January 1, 2020.

Reclassifications

Certain prior year amounts have been reclassified for consistency with current period presentation.

2. Fair Value

The Company had no financial instruments measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019.

The following tables present the balances of non-financial instruments measured at fair value on a non-recurring basis as of March 31, 2020 and December 31, 2019.

					Quoted Prices in Active Markets for		Significant Other		Significant
	March 31, 2020				Identical		Observable		Unobservable
	Carrying		Estimated		Assets		Inputs		Inputs
	Amount		Fair Value		Level 1		Level 2		Level 3

Foreclosed assets	$	5,031	$	5,031	$	–	$	–	$	5,031
Impaired loans, net		1,531		1,531		–		–		1,531
Total	$	6,562	$	6,562	$	–	$	–	$	6,562

Quoted Prices

in Active

Significant

Markets for

Other

Significant

December 31, 2019

Identical

Observable

Unobservable

Carrying

Estimated

Assets

Inputs

Amount

Fair Value

Level 1

Level 2

Level 3

Foreclosed assets

4,916

–

4,916

Impaired loans, net

1,487

–

1,487

Total

6,403

–

6,403

The table below is a summary of fair value estimates for financial instruments:

	March 31, 2020				December 31, 2019
	Carrying		Estimated		Carrying		Estimated
	Amount		Fair Value		Amount		Fair Value
Financial Assets
Cash and cash equivalents	$	3,341	$	3,341	$	1,883	$	1,883
Loans receivable, net		54,197		54,197		55,369		55,369
Accrued interest on loans		1,162		1,162		1,031		1,031
Financial Liabilities
Customer interest escrow		681		681		643		643
Notes payable secured, net		26,054		26,054		26,991		26,991
Notes payable unsecured, net		28,416		28,416		26,520		26,520
Accrued interest payable		2,414		2,414		2,533		2,533

3. Financing Receivables

Financing receivables are comprised of the following as of March 31, 2020 and December 31, 2019:

	March 31, 2020			December 31, 2019

Loans receivable, gross	$	56,077		$	57,608
Less: Deferred loan fees		(676	)		(856	)
Less: Deposits		(1,149	)		(1,352	)
Plus: Deferred origination costs		215			204
Less: Allowance for loan losses		(270	)		(235	)

Loans receivable, net	$	54,197		$	55,369

The allowance for loan losses at March 31, 2020 is $270, of which $224 related to loans without specific reserves. At December 31, 2019, the allowance was $235, of which $230 related to loans without specific reserves. No charge-offs occurred during the quarter ended March 31, 2020. During the year ended December 31, 2019, we incurred $173 in direct charge-offs.

Commercial Construction and Development Loans

Commercial Loans – Construction Loan Portfolio Summary

As of March 31, 2020, the Company’s portfolio consisted of 218 commercial construction and nine development loans with 67 borrowers in 21 states.

The following is a summary of the loan portfolio to builders for home construction loans as of March 31, 2020 and December 31, 2019:

Year

Number of

States

Number
of

Borrowers

Number of

Loans

Value of Collateral⁽¹⁾

Commitment Amount

Gross

Amount

Outstanding

Loan to Value

Ratio⁽²⁾

Loan Fee

2020

218

86,958

61,420

46,161

%⁽³⁾

2019

241

93,211

65,273

48,611

%⁽³⁾

⁽¹⁾	The value is determined by the appraised value.

⁽²⁾	The loan to value ratio is calculated by taking the commitment amount and dividing by the appraised value.

⁽³⁾	Represents the weighted average loan to value ratio of the loans.

Commercial Loans – Real Estate Development Loan Portfolio Summary

The following is a summary of our loan portfolio to builders for land development as of March 31, 2020 and December 31, 2019:

Year

Number of
States

Number
of
Borrowers

Number

of
Loans

Gross Value
of
Collateral⁽¹⁾

Commitment Amount⁽³⁾

Gross Amount

Outstanding

Loan to Value

Ratio⁽²⁾

Interest Spread

2020

12,151

11,066

9,916

%⁽⁴⁾

2019

13,007

9,866

8,997

%⁽⁴⁾

⁽¹⁾	The value is determined by the appraised value adjusted for remaining costs to be paid. For both March 31, 2020 and December 31, 2019, a portion of this collateral is $1,470 of preferred equity in our Company. In the event of a foreclosure on the property securing these loans, the portion of our collateral that is preferred equity might be difficult to sell, which may impact our ability to recover the loan balance. In addition, a portion of the collateral value is estimated based on the selling prices anticipated for the homes.

⁽²⁾	The loan to value ratio is calculated by taking the outstanding amount and dividing by the appraised value calculated as described above.

⁽³⁾	The commitment amount does not include letters of credit and cash bonds.

⁽⁴⁾	Represents the weighted average loan to value ratio of the loans.

Credit Quality Information

The following tables present credit-related information at the “class” level in accordance with FASB ASC 310-10-50, “Disclosures about the Credit Quality of Finance Receivables and the Allowance for Credit Losses.” See our 2019 Form 10-K, as filed with the SEC, for more information.

Gross finance receivables – By risk rating:

	March 31, 2020		December 31, 2019

Pass	$	50,809	$	53,542
Special mention		3,687		2,571
Classified – accruing		–		–
Classified – nonaccrual		1,581		1,495

Total	$	56,077	$	57,608

Finance Receivables – Method of impairment calculation:

	March 31, 2020		December 31, 2019

Performing loans evaluated individually	$	27,732	$	26,233
Performing loans evaluated collectively		26,764		29,880
Non-performing loans without a specific reserve		1,063		1,467
Non-performing loans with a specific reserve		518		28

Total evaluated collectively for loan losses	$	56,077	$	57,608

As March 31, 2020 and December 31, 2019, there were no loans acquired with deteriorated credit quality.

Impaired Loans

The following is a summary of our impaired nonaccrual commercial construction loans as of March 31, 2020 and December 31, 2019.

	March 31, 2020			December 31, 2019

Unpaid principal balance (contractual obligation from customer)	$	1,581		$	1,495
Charge-offs and payments applied		-			-
Gross value before related allowance		1,581			1,495
Related allowance		(50	)		(8	)
Value after allowance	$	1,531		$	1,487

Concentrations

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of loans receivable. Our concentration risks for our top three customers listed by geographic real estate market are summarized in the table below:

March 31, 2020

December 31, 2019

Percent of

Borrower

Loan

Borrower

Loan

City

Commitments

City

Commitments

Highest concentration risk

Pittsburgh, PA

Second highest concentration risk

Orlando, FL

Third highest concentration risk

Cape Coral, FL

4. Foreclosed Assets

The following table is a roll forward of foreclosed assets:

	Three Months Ended March 31, 2020			Year Ended December 31, 2019			Three Months Ended March 31, 2019

Beginning balance	$	4,916		$	5,973		$	5,973
Additions from loans		-			3,352			-
Additions for construction/development		444			763			176
Sale proceeds		(185	)		(4,543	)		-
Loss on sale		(35	)		(274	)		-
Gain on foreclosure		-			203			-
Impairment loss on foreclosed assets		(109	)		(558	)		(80	)
Ending balance	$	5,031		$	4,916		$	6,069

5. Borrowings

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

	Priority Rank	March 31, 2020		December 31, 2019
Borrowing Source
Purchase and sale agreements and other secured borrowings	1	$	25,445	$	26,806
Secured line of credit from affiliates	2		614		189
Unsecured line of credit (senior)	3		500		500
Other unsecured debt (senior subordinated)	4		1,407		1,407
Unsecured Notes through our public offering, gross	5		21,070		20,308
Other unsecured debt (subordinated)	5		5,302		4,131
Other unsecured debt (junior subordinated)	6		590		590

Total		$	54,928	$	53,931

The following table shows the maturity of outstanding debt as of March 31, 2020:

Year Maturing	Total Amount Maturing		Public Offering		Other Unsecured		Secured Borrowings
2020	$	31,813	$	1,949	$	4,424	$	25,439
2021		13,006		11,570		1,420		16
2022		5,225		3,463		1,746		16
2023		1,027		821		189		17
2024 and thereafter		3,857		3,267		20		571
Total	$	54,928	$	21,070	$	7,799	$	26,059

Secured Borrowings

Lines of Credit

As of March 31, 2020, the Company had borrowed $614 on its lines of credit from affiliates, which have a total limit of $2,500.

Summary

Borrowings secured by loan assets are summarized below:

	March 31, 2020				December 31, 2019
	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	$	12,593	$	8,428	$	13,711	$	9,375
S.K. Funding		10,004		6,771		10,394		6,771

Lender
Shuman		1,798		1,325		1,785		1,325
Jeff Eppinger		1,941		1,000		1,821		1,000
Hardy Enterprises, Inc.		1,852		1,000		1,684		1,000
Gary Zentner		611		250		472		250
R. Scott Summers		1,210		847		841		628
Paul Swanson		6,105		5,193		8,377		5,824
Total	$	36,114	$	24,814	$	39,085	$	26,173

Unsecured Borrowings

Unsecured Notes through the Public Offering (“Notes Program”)

On March 22, 2019, the Company terminated its second public offering and commenced its third public offering of fixed rate subordinated notes (the “Notes”). The effective interest rate on borrowings through our Notes Program at March 31, 2020 and December 31, 2019 was 10.68% and 10.56%, respectively, not including the amortization of deferred financing costs. We generally offer four durations at any given time, ranging from 12 to 48 months from the date of issuance. There are limited rights of early redemption. Our 36-month Note has a mandatory early redemption option, subject to certain conditions. The following table shows the roll forward of our Notes Program:

	Three Months Ended March 31, 2020			Year Ended December 31, 2019			Three Months Ended March 31, 2019

Gross Notes outstanding, beginning of period	$	20,308		$	17,348		$	17,348
Notes issued		4,722			11,127			3,532
Note repayments / redemptions		(3,960	)		(8,167	)		(2,049	)

Gross Notes outstanding, end of period	$	21,070		$	20,308		$	18,831

Less deferred financing costs, net		453			416			454

Notes outstanding, net	$	20,617		$	19,892		$	18,377

The following is a roll forward of deferred financing costs:

	Three Months Ended March 31, 2020			Year Ended December 31, 2019			Three Months Ended March 31, 2019

Deferred financing costs, beginning balance	$	786		$	1,212		$	1,212
Additions		77			365			282
Disposals		-			(791	)		–
Deferred financing costs, ending balance		863			786			1,494
Less accumulated amortization		(410	)		(370	)		(1,040	)
Deferred financing costs, net	$	453		$	416		$	454

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

	Three Months		Year			Three Months
	Ended March 31, 2020		Ended December 31, 2019			Ended March 31, 2019

Accumulated amortization, beginning balance	$	370	$	1,000		$	1,000
Additions		40		161			40
Disposals		-		(791	)		-
Accumulated amortization, ending balance	$	410	$	370		$	1,040

Other Unsecured Debts

Our other unsecured debts are detailed below:

					Principal Amount Outstanding as of
Loan	Maturity Date	Interest Rate⁽¹⁾			March 31, 2020		December 31, 2019
Unsecured Note with Seven Kings Holdings, Inc.	Demand⁽²⁾		9.5	%	$	500	$	500
Unsecured Line of Credit from Builder Finance, Inc.	March 2021		10.0	%		500		-
Unsecured Line of Credit from Paul Swanson	June 2020⁽⁶⁾		10.0	%		1,807		1,176
Subordinated Promissory Note	September 2020		9.5	%		563		563
Subordinated Promissory Note	December 2021		10.5	%		146		146
Subordinated Promissory Note	April 2020		10.0	%		100		100
Subordinated Promissory Note	April 2021		10.0	%		174		174
Subordinated Promissory Note	August 2022		11.0	%		200		200
Subordinated Promissory Note	March 2023		11.0	%		169		169
Subordinated Promissory Note	April 2020		6.5	%		500		500
Subordinated Promissory Note	February 2021		11.0	%		600		600
Subordinated Promissory Note	Demand		5.0	%		500		500
Subordinated Promissory Note	Demand		5.0	%		3		3
Subordinated Promissory Note	December 2023		11	%		20		-
Subordinated Promissory Note	February 2024		11	%		20		-
Senior Subordinated Promissory Note	March 2022⁽³⁾		10.0	%		400		400
Senior Subordinated Promissory Note	March 2022⁽⁴⁾		1.0	%		728		728
Junior Subordinated Promissory Note	March 2022⁽⁴⁾		22.5	%		417		417
Senior Subordinated Promissory Note	October 2020⁽⁵⁾		1.0	%		279		279
Junior Subordinated Promissory Note	October 2020⁽⁵⁾		20.0	%		173		173
					$	7,799	$	6,628

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

⁽²⁾	Due six months after lender gives notice.

⁽³⁾	Lender may require us to repay $20 of principal and all unpaid interest with 10 days’ notice.

⁽⁴⁾	These notes were issued to the same holder and, when calculated together, yield a blended return of 11% per annum.

⁽⁵⁾	These notes were issued to the same holder and, when calculated together, yield a blended return of 10% per annum.

⁽⁶⁾	Amount due in June 2020 is $1,000 with the remainder due November 2020.

6. Redeemable Preferred Equity

The following is a roll forward of our Series C cumulative preferred equity (“Series C Preferred Units”):

	Three Months Ended March 31, 2020			Year Ended December 31, 2019			Three Months Ended March 31, 2019

Beginning balance	$	2,959		$	2,385		$	2,385
Additions from new investment		-			300			-
Distributions		(12	)		(42	)
Additions from reinvestment		89			316			72

Ending balance	$	3,036		$	2,959		$	2,457

The following table shows the earliest redemption options for investors in our Series C Preferred Units as of March 31, 2020:

Year Maturing	Total Amount Redeemable

2024	$	2,719
2025		317

Total	$	3,036

7. Members’ Capital

There are currently two classes of equity units outstanding that the Company classifies as Members’ Capital: Class A common units (“Class A Common Units”) and Series B cumulative preferred units (“Series B Preferred Units”). As of March 31, 2020, the Class A Common Units are held by eight members, all of whom have no personal liability. All Class A common members have voting rights in proportion to their capital account. There were 2,629 Class A Common Units outstanding as of March 31, 2020 and December 31, 2019.

The Series B Preferred Units were issued to the Hoskins Group through a reduction in a loan issued by the Hoskins Group to the Company. In December 2015, the Hoskins Group agreed to purchase 0.1 Series B Preferred Units for $10 at each closing of a lot to a third party in the Hamlets and Tuscany subdivisions. As of March 31, 2020, the Hoskins Group owned a total of 14.7 Series B Preferred Units, which were issued for a total of $1,470.

8. Related Party Transactions

As of March 31, 2020, the Company had $1,250, $250, and $386 available to borrow against the line of credit from Daniel M. Wallach (our Chief Executive Officer and chairman of the board of managers) and his wife, the line of credit from the 2007 Daniel M. Wallach Legacy Trust, and the line of credit from William Myrick (our Executive Vice President of Sales), respectively. A more detailed description is included in Note 6 of our 2019 Financial Statements. These borrowings are in notes payable secured, net of deferred financing costs on the interim condensed consolidated balance sheet.

9. Commitments and Contingencies

Unfunded commitments to extend credit, which have similar collateral, credit risk, and market risk to our outstanding loans, were $15,259 and $16,662 at March 31, 2020 and December 31, 2019, respectively.

10. Selected Quarterly Condensed Consolidated Financial Data (Unaudited)

Summarized unaudited quarterly condensed consolidated financial data for the quarters of 2020 and 2019 are as follows:

	Quarter 1		Quarter 4		Quarter 3		Quarter 2		Quarter 1
	2020		2019		2019		2019		2019

Net interest income after loan loss provision	$	955	$	1,117	$	1,115	$	818	$	1,079
Non-interest income		-		22		86		95		-
SG&A expense		708		447		703		620		624
Depreciation and amortization		21		26		21		22		23
Loss on sale of foreclosed assets		35		–		274		–		–
Impairment loss on foreclosed assets		109		282		–		196		80
Net income	$	82	$	384	$	203	$	75	$	352

11. Non-Interest Expense Detail

The following table displays our selling, general and administrative (“SG&A”) expenses:

	For the Three Months Ended March 31,
	2020		2019
Selling, general and administrative expenses
Legal and accounting	$	139	$	127
Salaries and related expenses		278		362
Board related expenses		25		16
Advertising		21		19
Rent and utilities		13		9
Loan and foreclosed asset expenses		135		20
Travel		59		32
Other		38		39
Total SG&A	$	708	$	624

12. Subsequent Events

Management of the Company has evaluated subsequent events through May 11, 2020, the date these interim condensed consolidated financial statements were issued.

In March 2020, the Company told all of its borrowers that it would fund all loans where the underlying house was already under construction, and advised the customers to build as quickly as possible to bring the houses on the market as soon as possible. For loans where the borrower had not yet begun construction of the underlying house, the Company told the borrowers that it would not fund construction and that they should therefore not start construction. As described below, the Company is now beginning to fund additional loans in certain limited circumstances.

The Company continues to monitor market conditions overall and in the specific markets in which it lends. Most non-bank competitors are no longer making new loans and some are not funding existing loans. Some markets have had little to no impact from a housing perspective as a result of COVID-19, while other markets have been impacted. Borrowers in Pennsylvania and Michigan have been most impacted by COVID-19 due to the government shutting down home construction completely in those states (Pennsylvania has announced reopening construction on May 1, 2020). Opportunities for home sales for our borrowers in their markets are impacted to varying degrees. The Company is now funding new loans to borrowers in stronger markets for the purpose of developing presold homes, which loans have reduced (60%) loan-to-value ratios. The Company is also considering funding spec loans in those same markets on a case-by-case basis for loans with reduced loan-to-value ratios (50-60%).

Changes in home buyer FICO scores and other requirements by end user lenders is expected to impact the Company’s builders who focus on lower priced homes, and some real estate markets where the primary business is entertainment will be more impacted than most other markets. The Company has some customers in Orlando, Florida, and is working through issues with two of those customers. Some of those customers may have their credit quality downgraded in future quarters, and the Company is working to mitigate any losses it may incur as a result of the virus for those customers and others as they become known.

As of April 20, 2020, the Company informed some of those builders located in stronger markets to begin construction. As a result, the committed amount on the remaining loans that the Company has not released for construction to begin was $4,200 with $3,000 unfunded.

On May 7, 2020, the Company made the decision to reopen lending under normal, pre-COVID-19 terms for a limited group of certain of its customers. In addition, the decision was made to allow rehab loans to builders at terms that are less conservative than the 50% loan to value established in April 2020 but more conservative than terms prior to the arrival of COVID-19.

Management is also contemplating purchasing debt from other similar lending companies at deep discounts, but does not have any serious prospects at this time.

On May 5, 2020, we entered into an agreement to borrow approximately $362 pursuant to the Paycheck Protection Program (“PPP”), created under the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act. The PPP is intended to provide loans to qualified businesses to cover payroll and certain other identified costs. The loan has an interest rate of 1.0% and a term of 24 months. No payments are due for the first 6 months, although interest accrues, and monthly payments, which include interest, are due over the next 18 months to pay off the loan. Funds from the loan may only be used for certain purposes, including payroll, benefits, rent, and utilities. All or a portion of the loan may be forgivable, as provided by the terms of the PPP. The loan is evidenced by a promissory note, which contains customary events of default relating to, among other things, payment defaults and breaches of representations. We may prepay the loan at any time prior to maturity with no prepayment penalties.

The Company is continuously monitoring the markets, builders, and the COVID-19 situation for the remaining loans which the Company has not yet released for construction. Management anticipates revisiting these lending parameters in May 2020 as the COVID-19 situation continues to develop. Management also notes that while demand for its lending products declined in 2019 due increases in competition, demand during the pandemic is increasing.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(All dollar [$] amounts shown in thousands.)

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our interim condensed consolidated financial statements and the notes thereto contained elsewhere in this report. The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should also be read in conjunction with our audited annual consolidated financial statements and related notes and other consolidated financial data (the “2019 Financial Statements”) included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Form 10-K”). See also “Cautionary Note Regarding Forward-Looking Statements” preceding Part I.

Overview

The Company faces risks related to COVID-19, which has caused significant disruptions to the economy. COVID-19 has spread globally and the outbreak has caused significant disruptions to the economy, including in the United States and in all of the markets in which the Company lends. The Company’s operating results depend significantly on the homebuilding industry.

During March 2020, the Company made the decision due to the potential impact of COVID-19 to inform its borrowers that the Company would fund all loans where the underlying asset was currently under construction. For borrowers who currently have loans where the underlying asset was at a non-start position, they were informed to not start construction until told to do so by the Company.

During April 2020, as the Company continued to monitor market conditions overall and in the specific markets in which the Company lends, the Company observed that some markets had little to no impact from a housing perspective as a result of COVID-19; however, the Company’s borrowers in Pennsylvania and Michigan were significantly impacted due to the government shutting down home construction completely. The Company made the decision to fund new loans to borrowers in stronger markets for the purpose of developing presold homes, which loans have reduced loan-to-value ratios. In addition, the Company will continue to monitor funding spec loans in some markets on a case-by-case basis for loans with reduced loan -to-value ratios.

Net income for the first quarter of 2020 decreased by $270 when compared to the same period of 2019. The decrease in net income was primarily due to the following:

	●	Fee income decreased $236 or 33% to $484 compared to the same period of 2019. Originations for the quarter ended March 31, 2020 were $7,771 compared to $18,982 for the same period of 2019; The decrease in originations was primarily due to competition and COVID-19.
	●	Loss on the sale and impairment of foreclosed assets increased $64 due to one certain asset being sold and additional costs incurred to complete construction of additional properties.

We had $54,197 and $55,369 in loan assets as of March 31, 2020 and December 31, 2019, respectively. In addition, as of March 31, 2020, we had 218 construction loans in 21 states with 67 borrowers and nine development loans in four states with five borrowers.

Cash used in operations decreased $1,019 for three months ended March 31, 2020 as compared to the same period of 2019. Our decrease in operating cash flow was due primarily to a decrease in interest escrow of $349, net income of $270 and change in loan origination fees, net of $250.

Critical Accounting Estimates

To assist in evaluating our interim condensed consolidated financial statements, we describe below the critical accounting estimates that we use. We consider an accounting estimate to be critical if: (1) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made, and (2) changes in the estimate that are reasonably likely to occur from period to period, or use of different estimates that we reasonably could have used, would have a material impact on our consolidated financial condition or results of operations. See our 2019 Form 10-K, as filed with the SEC, for more information on our critical accounting estimates. No material changes to our critical accounting estimates have occurred since December 31, 2019 unless listed below.

Loan Losses

Fair value of collateral has the potential to impact the calculation of the loan loss provision (the amount we have expensed over time in anticipation of loan losses we have not yet realized). Specifically, relevant to the allowance for loan loss reserve is the fair value of the underlying collateral supporting the outstanding loan balances. Fair value measurements are an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Due to a rapidly changing economic market, an erratic housing market, the various methods that could be used to develop fair value estimates, and the various assumptions that could be used, determining the collateral’s fair value requires significant judgment.

	March 31, 2020
	Loan Loss
	Provision
Change in Fair Value Assumption	Higher/(Lower)
Increasing fair value of the real estate collateral by 35%*	$	-
Decreasing fair value of the real estate collateral by 35%**	$	(6,528	)

* Increases in the fair value of the real estate collateral do not impact the loan loss provision, as the value generally is not “written up.”

** Assumes the loans were nonperforming and a book amount of the loans outstanding of $54,197.

Foreclosed Assets

The fair value of real estate will impact our foreclosed asset value, which is recorded at 100% of fair value (after selling costs are deducted).

	March 31, 2020
	Foreclosed
	Assets
Change in Fair Value Assumption	Higher/(Lower)
Increasing fair value of the foreclosed asset by 35%*	$	-
Decreasing fair value of the foreclosed asset by 35%**	$	(1,761	)

* Increases in the fair value of the foreclosed assets do not impact the carrying value, as the value generally is not “written up.” Those gains would be recognized at the sale of the asset.

** Assumes a book amount of the foreclosed assets of $5,031.

Interest Spread

The following table displays a comparison of our interest income, expense, fees, and spread:

	Three Months Ended
	March 31,
	2020				2019
Interest Income			*				*
Interest income on loans	$	2,090	14	%	$	1,712	13	%
Fee income on loans		484	4	%		720	6	%
Interest and fee income on loans		2,574	18	%		2,432	19	%
Interest expense unsecured		727	5	%		585	5	%
Interest expense secured		817	6	%		681	5	%
Amortization of offering costs		40	-	%		40	-	%
Interest expense		1,584	11	%		1,306	10	%
Net interest income (spread)	$	990	7	%	$	1,126	9	%

Weighted average outstanding loan asset balance	$	57,756			$	50,886

*annualized amount as percentage of weighted average outstanding gross loan balance

There are three main components that can impact our interest spread:

● Difference between the interest rate received (on our loan assets) and the interest rate paid (on our borrowings). The loans we have originated have interest rates which are based on our cost of funds, with a minimum cost of funds of 7%. For most loans, the margin is fixed at 3%; however, for our development loans the margin is fixed at 7%. This component is also impacted by the lending of money with no interest cost (our equity).

Interest income on loans increased 1% for the quarter ended March 31, 2020 compared to the same period of 2019 due primarily to our cost of funds. During the quarter ended March 31, 2020 and 2019, our cost of funds was 10.69% and 10.45%, respectively. In addition, loans receivables, net increased $4,206 to $54,197 as of March 31, 2020 compared to $49,991 as of March 31, 2019. The difference between interest rate received on loans and the interest paid was 3% for both the periods ended March 31, 2020 and 2019 which is our standard margin.

We currently anticipate that the difference between our interest income and interest expense will continue to be 3% for the remainder of 2020, however our margin could be compressed as a result of COVID-19. We anticipate our standard margin to be 3% on all future construction loans and 7% on all development loans which yields a blended margin of approximately 3.4%.

● Fee income. Our construction loan fee is 5% on the amount we commit to lend, which is amortized over the expected life of each loans. In addition, our development loans do not recognize a loan fee. When loans terminate before than their expected life, the remaining fee is recognized at the termination of the loan. During the quarter ended March 31, 2019, our fee income included a modification charge to our largest customer of $125. Excluding the modification charge, fee income on loans for the quarter ended March 31, 2019 was 5%. During the first quarter of 2020, our lower origination of new loans (partly due to competition and partly due to the COVID-19) caused the reduction to 4% for fee income in that quarter. Higher originations or a reduction in the balance of old loans will result in the fee income returning to 5%.

● Amount of nonperforming assets. Generally, we can have two types of nonperforming assets that negatively affect interest spread: loans not paying interest and foreclosed assets.

As of March 31, 2020 and 2019, $1,581 and $2,617 loans were not paying interest, respectively. As of late April 2020, and directly related to COVID-19, one of our customers in default located in Orlando, Florida entered into negotiations to sell half of his loans to another of our customers. We are working with the customer with respect to the remainder of his loans either through a deed in lieu of foreclosure or a foreclosure.

Foreclosed assets do not provide a monthly interest return. As of March 31, 2020 and 2019, foreclosed assets were $5,031 and $6,069, respectively, which resulted in a negative impact on our interest spread in both years.

The amount of nonperforming assets is expected to increase over the next quarter due to some of the nonperforming loans becoming foreclosed assets, and will decrease as we continue to sell our assets where construction is complete.

SG&A Expenses

The following table displays our SG&A expenses:

	For the Three Months Ended March 31,
	2020		2019
Selling, general and administrative expenses
Legal and accounting	$	139	$	127
Salaries and related expenses		278		362
Board related expenses		25		16
Advertising		21		19
Rent and utilities		13		9
Loan and foreclosed asset expenses		135		20
Travel		59		32
Other		38		39
Total SG&A	$	708	$	624

Our SG&A expense increased $84 for the quarter ended March 31, 2020 compared to the same period of 2019 due significantly to the following:

	●	Loan and foreclosed asset expenses increased $115 due to additional construction costs incurred to complete properties. The Company had 15 foreclosed assets under construction as of March 31, 2020 compared to three for the same period of 2019;
	●	Legal and accounting fees increased $12 due to additional costs incurred related to the amendment of our third Indenture;
	●	Board related expenses increased $9 due to the addition of one board member in April 2019;
	●	Travel increased $27 due to timing of field travel; and
	●	These items were offset by a decrease in salaries and related expenses which resulted from the reduction of two employees and lower Company quota bonuses.

Impairment Loss on Foreclosed Assets

As of March 31, 2020 and 2019, impaired loss on foreclosed assets was $109 and $80, respectively. The increase in foreclosed assets was directly related to properties acquired back due to the death of a borrower in 2018. During the quarter ended March 31, 2019, we finished our largest foreclosed asset in Sarasota, Florida and recorded an impairment of $80 during the quarter on that property.

We do not anticipate losses on the sale of foreclosed assets in the future; however, this may be subject to change based on the final selling price of the foreclosed assets.

Loan Loss Provision

Our loan loss provision decreased $12 for the quarter ended March 31, 2020, compared to the same periods of 2019. The decrease in loan loss provision was primarily due to the reduction in loan loss provision for our collective reserve of $46, which was offset by an increase in loans with a specific reserve of $34. The increase in our specific researve related to additional impairment on two of our assets.

Consolidated Financial Position

Loans Receivable

Commercial Loans – Construction Loan Portfolio Summary

We anticipate that the aggregate balance of our construction loan portfolio will increase as loans near maturity and as we have new loan originations.

The following is a summary of our loan portfolio to builders for home construction loans as of March 31, 2020:

State	Number of Borrowers		Number of Loans		Value of Collateral ⁽¹⁾		Commitment Amount		Amount Outstanding		Loan to Value Ratio⁽²⁾			Loan Fee
Arizona		1		1	$	1,345	$	807	$	269		60	%		5	%
Connecticut		1		2		683		450		179		66	%		5	%
Colorado		1		1		630		425		425		67	%		5	%
Florida		16		107		32,293		24,079		18,847		75	%		5	%
Georgia		3		4		2,085		1,343		942		64	%		5	%
Illinois		1		1		1,245		747		367		60	%		5	%
Indiana		2		3		1,687		1,083		554		64	%		5	%
Michigan		4		6		2,145		1,480		1,298		69	%		5	%
New Jersey		3		5		1,676		1,255		1,245		74	%		5	%
New York		2		4		1,740		1,199		979		69	%		5	%
North Carolina		5		14		3,875		2,691		1,506		69	%		5	%
Ohio		3		8		3,463		2,206		1,814		64	%		5	%
Oregon		2		4		1,887		1,252		798		66	%		5	%
Pennsylvania		3		20		17,129		11,557		10,403		67	%		5	%
South Carolina		8		20		6,583		4,907		2,734		75	%		5	%
Tennessee		3		4		1,367		1,069		547		78	%		5	%
Texas		4		6		3,009		1,987		946		66	%		5	%
Utah		2		4		2,307		1,701		1,210		74	%		5	%
Virginia		1		2		820		535		520		65	%		5	%
Washington		1		1		450		315		293		70	%		5	%
Wisconsin		1		1		539		332		285		62	%		5	%
Total		67		218	$	86,958	$	61,420	$	46,161		71	%⁽³⁾		5	%

	⁽¹⁾	The value is determined by the appraised value.

	⁽²⁾	The loan to value ratio is calculated by taking the commitment amount and dividing by the appraised value.

	⁽³⁾	Represents the weighted average loan to value ratio of the loans.

The following is a summary of our loan portfolio to builders for home construction loans as of December 31, 2019:

State	Number of Borrowers		Number of Loans		Value of Collateral⁽¹⁾		Commitment Amount		Gross Amount Outstanding		Loan to Value Ratio⁽²⁾			Loan Fee
Colorado		1		1	$	630	$	425	$	424		67	%		5	%
Connecticut		1		1		340		224		55		66	%		5	%
Florida		17		112		32,259		24,031		16,826		74	%		5	%
Georgia		3		4		2,085		1,343		917		64	%		5	%
Idaho		1		1		310		217		173		70	%		5	%
Indiana		2		3		1,687		1,083		383		64	%		5	%
Michigan		4		11		3,696		2,566		1,820		69	%		5	%
New Jersey		3		6		1,925		1,471		1,396		76	%		5	%
New York		2		3		1,370		940		743		69	%		5	%
North Carolina		6		20		5,790		4,009		2,471		69	%		5	%
Ohio		3		9		4,117		2,664		2,153		65	%		5	%
Oregon		1		2		1,137		796		739		70	%		5	%
Pennsylvania		3		24		20,791		13,322		11,772		64	%		5	%
South Carolina		11		25		8,809		6,419		4,786		73	%		5	%
Tennessee		3		4		1,367		1,069		503		78	%		5	%
Texas		3		4		1,984		1,270		843		64	%		5	%
Utah		2		4		1,862		1,389		1,000		75	%		5	%
Virginia		1		3		1,245		815		734		65	%		5	%
Washington		1		2		1,040		728		445		70	%		5	%
Wisconsin		1		1		539

Price	1.00	EPS	-565,000
Shares	-0	P/E	-0
MCap	-0	P/FCF	-0
Net Debt	-2	EBIT	5
TEV	-2	TEV/EBIT	-1
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-03-31	Filed 2020-05-11
10-K	2019-12-31	Filed 2020-03-13
10-Q	2019-09-30	Filed 2019-11-07
10-Q	2019-06-30	Filed 2019-08-14
10-Q	2019-03-31	Filed 2019-05-09
10-K	2018-12-31	Filed 2019-03-25
10-Q	2018-09-30	Filed 2018-11-08
10-Q	2018-06-30	Filed 2018-08-09
S-1	2018-05-01	Public Filing
10-Q	2018-03-31	Filed 2018-05-10
10-K	2017-12-31	Filed 2018-03-23
10-Q	2017-09-30	Filed 2017-11-02
10-Q	2017-06-30	Filed 2017-08-03
10-Q	2017-03-31	Filed 2017-04-27
10-K	2016-12-31	Filed 2017-03-02
10-Q	2016-09-30	Filed 2016-11-03
10-Q	2016-06-30	Filed 2016-07-28
10-Q	2016-03-31	Filed 2016-05-05
10-K	2015-12-31	Filed 2016-03-03
10-Q	2015-09-30	Filed 2015-11-05
10-Q	2015-06-30	Filed 2015-07-30
10-Q	2015-03-31	Filed 2015-05-05
10-K	2014-12-31	Filed 2015-03-04
10-Q	2014-09-30	Filed 2014-11-05
10-Q	2014-06-30	Filed 2014-07-31
10-Q	2014-03-31	Filed 2014-05-01
10-K	2013-12-31	Filed 2014-02-26
10-Q	2013-09-30	Filed 2013-10-31
10-Q	2013-06-30	Filed 2013-08-08
10-Q	2013-03-31	Filed 2013-05-13
10-K	2012-12-31	Filed 2013-03-08
10-Q	2012-09-30	Filed 2012-11-13

8-K	2020-05-19
8-K	2020-04-23
8-K	2020-03-28
8-K	2020-02-04
8-K	2019-11-19
8-K	2019-08-26
8-K	2019-08-13
8-K	2019-07-08
8-K	2019-06-07
8-K	2019-05-09
8-K	2019-04-03
8-K	2019-03-29
8-K	2019-01-10
8-K	2018-12-27
8-K	2018-11-14
8-K	2018-10-31
8-K	2018-08-30
8-K	2018-08-14
8-K	2018-08-01
8-K	2018-06-13
8-K	2018-04-27
8-K	2018-04-13
8-K	2018-04-12
8-K	2018-03-01
8-K	2018-01-02

EX-10.1	ex10-1.htm
EX-10.2	ex10-2.htm
EX-31.1	ex31-1.htm
EX-31.2	ex31-2.htm
EX-32.1	ex32-1.htm
EX-32.2	ex32-2.htm

SHEPH 10Q Quarterly Report

Shepherd's Finance Earnings 2020-03-31