Document and Entity Information
Document and Entity Information - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Nov. 14, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | American Church Mortgage Company | |
Entity Central Index Key | 934,543 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity's Reporting Status Current? | Yes | |
Is Entity Emerging Growth Company? | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Public Float | $ 1,677,798 | |
Entity Common Stock, Shares Outstanding | 1,677,798 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 |
Balance Sheets
Balance Sheets - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Cash and cash equivalents | $ 2,675,119 | $ 502,490 |
Accounts receivable | 268,670 | 260,785 |
Interest receivable | 184,218 | 176,365 |
Investments | 2,410 | 2,410 |
Current maturities of mortgage loans receivable, net of allowance for loan losses of $84,838 and $88,113 and deferred origination fees of $20,642 and $28,956 at September 30, 2018 and December 31, 2017, respectively | 1,057,362 | 1,373,463 |
Current maturities of bond portfolio, at fair value | 154,000 | 139,000 |
Prepaid expenses | 15,121 | 2,598 |
Total current assets | 4,356,900 | 2,457,111 |
Mortgage Loans Receivable, net of current maturities, allowance of $1,561,045 and $1,340,042 and deferred origination fess of $264,892 and $256,578 at September 30, 2018 and December 31, 2017, respectively | 19,570,699 | 21,071,635 |
Bond Portfolio, at fair value, net of current maturities | 15,211,807 | 14,090,755 |
Real Estate Held for Sale | 225,872 | 225,872 |
Deferred Offering Costs, net of accumulated amortization of $1,032,371 and $1,222,243 at September 30, 2018 and December 31, 2017, respectively | 871,926 | 839,377 |
Total Assets | 40,237,204 | 38,684,750 |
Current Liabilities | ||
Current maturities of secured investor certificates | 4,259,000 | 4,116,000 |
Accounts payable | 92,262 | 30,216 |
Management fee payable | 25,548 | 26,631 |
Dividends payable | 67,112 | 117,446 |
Total current liabilities | 4,443,922 | 4,290,293 |
Secured Investor Certificates, Series B, net of current maturities | 8,281,000 | 8,825,000 |
Secured Investor Certificates, Series C, net of current maturities | 6,126,000 | 6,148,000 |
Secured Investor Certificates, Series D | 8,234,000 | 8,234,000 |
Secured Investor Certificates, Series E | 2,320,000 | |
Total liabilities | 29,404,922 | 27,497,293 |
Stockholders' Equity | ||
Common stock, par value $.01 per share, Authorized, 30,000,000 shares, Issued and outstanding, 1,677,798 shares at September 30, 2018 and December 31, 2017, respectively | 16,778 | 16,778 |
Additional paid-in capital | 19,113,458 | 19,113,458 |
Accumulated deficit | (8,297,954) | (7,942,779) |
Total stockholders' equity | 10,832,282 | 11,187,457 |
Total Liabilities and Stockholders' Equity | $ 40,237,204 | $ 38,684,750 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Current Assets | ||
Current allowance for current maturities of mortgage loans recievable | $ (1,584,889) | $ (1,428,155) |
Current deferred origination fees for current mortgage loans recievable | 20,642 | 28,956 |
Allowance for mortgage loans recievable | 1,561,045 | 1,340,042 |
Deferred origination fees for mortgage loans recievable | 264,892 | 256,578 |
Accumulated amortization deferred offering costs | $ 1,032,371 | $ 1,222,243 |
Stockholders' Equity | ||
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, Authorized | 30,000,000 | 30,000,000 |
Common Stock, Issued | 1,677,798 | 1,677,798 |
Common Stock, Outstanding | 1,677,798 | 1,677,798 |
Statements of Operations
Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Interest and Other Income | $ 637,133 | $ 677,065 | $ 1,942,501 | $ 2,059,857 |
Interest Expense | 498,619 | 480,351 | 1,467,597 | 1,436,104 |
Net Interest Income | 138,514 | 196,714 | 474,904 | 623,753 |
Provision for losses on mortgage loans receivable | 60,994 | 28,524 | 217,728 | 80,323 |
Net Interest Income after Provision for Mortgage Losses | 77,520 | 168,190 | 257,175 | 543,430 |
Operating expenses | 113,322 | 106,616 | 394,237 | 449,921 |
Net (loss) Income | $ (35,802) | $ 61,574 | $ (137,061) | $ 93,509 |
Basic and Diluted (Loss) Income Per Share | $ (.02) | $ .04 | $ (.08) | $ .06 |
Dividends Declared Per Share | $ .04 | $ .07 | $ .13 | $ .21 |
Weighted Average Common Shares Outstanding - Basic and Diluted | 1,677,798 | 1,677,798 | 1,677,798 | 1,677,798 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows from Operating Activities | ||
Net (loss) income | $ (137,061) | $ 93,509 |
Adjustments to reconcile net (loss) income to net cash from operating activites: | ||
Net loss on sales and impairment on real estate held for sale | 66,971 | |
Provision for losses on mortgage loans receivable | 217,728 | 80,323 |
Accretion of deferred origination fees | 18,562 | |
Amortization of deferred offering costs | 83,188 | 90,460 |
Accounts receivable | (7,885) | (51,124) |
Interest receivable | (7,853) | (2,181) |
Prepaid expenses | (15,523) | (5,364) |
Accounts payable | 60,963 | 43,184 |
Net cash provided by operating activities | 196,577 | 334,340 |
Cash Flows from Investing Activities | ||
Investment in mortgage loans | (3,110,103) | |
Collections of mortgage loans | 1,599,309 | 2,895,195 |
Investment purchased | 48,029 | |
Investment in bonds | (1,238,052) | (1,702,000) |
Proceeds from bonds | 102,000 | 143,000 |
Net cash provided by (used for) investing activities | 463,257 | (1,725,879) |
Cash Flows from Financing Activities | ||
Proceeds from the sale of secured investor certificates | 2,320,000 | 930,000 |
Payments on secured investor certificate maturities | (423,000) | (1,320,000) |
Payments for deferred costs | (115,737) | (65,041) |
Dividends paid | (268,448) | (335,560) |
Net cash provided by (used for) financing activities | 1,512,815 | (790,601) |
Net Increase (Decrease) in Cash and Cash Equivalents | 2,172,629 | (2,182,140) |
Cash and Cash Equivalents - Beginning Period | 502,490 | 3,382,994 |
Cash and Equivalents - Ending Period | $ 2,675,119 | $ 1,200,854 |
Statements of Cash Flows (Paren
Statements of Cash Flows (Parenthetical) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Cash Flows [Abstract] | ||
Dividends payable | $ 33,556 | $ 117,446 |
Interest paid | $ 911,946 | $ 896,108 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with the instructions for interim statements and, therefore, do not include all information and disclosures necessary for fair presentation of results of operations, financial position, and changes in cash flow in conformity with generally accepted accounting principles in the United States of America. However, in the opinion of management, such statements reflect all adjustments (which include only normal recurring adjustments) necessary for fair presentation of financial position, results of operations, and cash flows for the period presented. The unaudited financial statements of the Company should be read in conjunction with the December 31, 2017 audited financial statements included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission for the year ended December 31, 2017. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. Nature of Business American Church Mortgage Company, a Minnesota corporation, was incorporated on May 27, 1994. The Company was organized to engage primarily in the business of making mortgage loans to churches and other nonprofit religious organizations throughout the United States, on terms established for individual organizations. Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with accounting principles generally accepted in the United States of America. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. The most sensitive estimates relate to the realizability of the mortgage loans receivable, the valuation of the bond portfolio and real estate held for sale. It is at least reasonably possible that these estimates could change in the near term and that the effect of the change, if any, may be material to the financial statements. Concentration of Credit Risk The Company's loans have been granted to churches and other non-profit religious organizations. The ability of the Company’s debtors to honor their contracts is dependent on member contributions and the involvement in the church or organization of its senior pastor. Cash and Equivalents The Company considers all highly liquid debt instruments purchased with maturities of three months or less to be cash equivalents. The Company maintains accounts primarily at two financial institutions. At times throughout the year, the Company’s cash and equivalents balances may exceed amounts insured by the Federal Deposit Insurance Corporation. Cash in money market funds is not federally insured. The Company had $628,048 and $15,428 in money market fund accounts at September 30, 2018 and December 31, 2017, respectively. The Company has not experienced any losses in such accounts. Bond Portfolio The Company accounts for the bond portfolio under the Accounting Standards Codification (ASC) 320. The Company classifies the bond portfolio as “available-for-sale” and measures the portfolio at fair value. While the bonds are generally held until contractual maturity, the Company classifies them as available-for-sale as the bonds may be used to repay secured investor certificates or provide additional liquidity or working capital in the short term. The Company has classified $154,000 and $139,000 in bonds as current assets as of September 30, 2018 and December 31, 2017, respectively, based on management’s estimates for liquidity requirements and contractual maturities of certain bonds maturing in 2018 and 2017, respectively. Allowance for Mortgage Loans Receivable The Company records mortgage loans receivable at estimated net realizable value, which is the unpaid principal balances of the mortgage loans receivable, less the allowance for mortgage loans. The Company’s loan loss policy provides an allowance for estimated uncollectible loans based on an evaluation of the current status of the loan portfolio. This policy provides for principal amounts outstanding on a particular loan if cumulative interruptions occur in the normal payment schedule of a loan; therefore, the Company recognizes a provision for losses and an allowance for the outstanding principal amount of a loan in the Company’s portfolio if the amount is in doubt of collection. Additionally, no additional interest income is recognized on impaired loans that are declared to be in default and are in the foreclosure process. At September 30, 2018, the Company provided $1,645,883 for eighteen A summary of transactions in the allowance for credit losses for the nine months ended September 30, 2018 is as follows: Balance at December 31, 2017 $ 1,428,155 Provision for additional losses 217,728 Balance at September 30, 2018 $ 1,645,883 The total impaired loans, which are loans that are in the foreclosure process or are declared to be in default, were approximately $1,611,000 and $2,044,000 at September 30, 2018 and December 31, 2017, respectively, which the Company believes are adequately secured by the underlying collateral and the allowance for mortgage loans. Approximately $827,000 and $723,000 of the Company’s allowance for mortgage loans was allocated to impaired loans at September 30, 2018 and December 31, 2017, respectively. The Company will declare a loan to be in default and will place the loan on non-accrual status when the following thresholds have been met: (i) the borrower has missed three consecutive mortgage payments; (ii) the borrower has not communicated to the Company any legitimate reason for delinquency in its payments to the Company and has not arranged for the re-continuance of payments; (iii) lines of communication to the borrower have broken down such that any reasonable prospect of rehabilitating the loan and return of regular payments is gone. The Company’s policies on payments received and interest accrued on non-accrual loans are as follows: (i) The Company will accept payments on loans that are currently on non-accrual status when a borrower has communicated to us that they intend to meet their mortgage obligations. A payment made on a non-accrual loan is considered a good faith deposit as to the intent to resume their mortgage payment obligation. This good faith deposit is credited back to interest first then principal as stated in the mortgage loan documentation. (ii) A letter outlining the re-payment terms or the restructure terms (if any) of the loan is provided to the borrower. This letter will be signed by the Senior Pastor and all board members of the borrower. This letter resumes the obligation to make payments on non-accrual loans. (iii) The borrower must meet all its payment obligations for the next 120 days without interruption in order to be removed from non-accrual status. When a loan is declared in default according to the Company’s policy or deemed to be doubtful of collection, the loan committee of the Advisor to the Company will direct the staff to charge-off the uncollectable receivables. Loans totaling approximately $3,998,000 and $3,364,000 exceeded 90 days past due but continued to accrue interest at September 30, 2018 and December 31, 2017, respectively. The Company believes that the loans are well secured, not deemed to be in default and the Company is actively pursuing collection of past due payments. Real Estate Held for Sale As of September 30, 2018, the Company had one property located in Pine Bluff, Arkansas acquired via deed in lieu of foreclosure, with an outstanding loan balance totaling $225,872. The Church is still occupying this property and paying rent while trying to either sell the building or obtain refinancing. The Company records real estate held for sale at the estimated fair value, which is net of the expected expenses related to the sale of the real estate. The fair value of our real estate held for sale, which represents the carrying value, is $225,872 both at September 30, 2018 and December 31, 2017. Carrying Value of Long-Lived Assets The Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that the carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed of significantly before the end of the estimated useful life. Recoverability is assessed based on the carrying amount of the asset compared to the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An allowance for losses is recognized when the carrying amount is deemed not recoverable and exceeds fair value as determined through various valuation techniques including, but not limited to, discounted cash flow models, quoted market values, and third party independent appraisals. Revenue Recognition Interest income on mortgage loans receivable and the bond portfolio is recognized as earned. Other income included with interest represents cash received for loan origination fees, which are recognized over the life of the loan as an adjustment to the yield on the loan. As of January 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers- Topic 606 The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. The main types of revenue contracts included in non-interest income within the consolidated statements of operations are as follows: Gain/Losses on Sale of OREO The Company records a gain or loss from the sale of OREO 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 OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determine the gain or loss on the sale, the Company adjusts the transaction prices and related gain (loss) on sale if a significant financing component is present. Deferred Financing Costs The Company defers the costs related to obtaining financing. These costs are amortized over the life of the financing using the straight line method, which approximates the effective interest method. Income (Loss) Per Common Share No adjustments were made to income for the purpose of calculating income (loss) per share, as there were no potential dilutive shares outstanding. Recent Accounting Pronouncements In June, 2016 the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 is intended to provide financial statement users with more decision-useful information about the excepted credit losses on financial instruments and other commitments to extend credit. For public entities, ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has not yet fully evaluated the potential effects of adopting ASU 2016-13 on the Company’s results of operations, financial position or cash flows. Recent Accounting Pronouncements-Adopted In the first quarter of 2018, the Company adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606). |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 2. FAIR VALUE MEASUREMENTS The Company measures certain financial instruments at fair value in our balance sheets. The fair value of these instruments is based on valuations that include inputs that can be classified within one of the three levels of a hierarchy. Level 1 inputs include quoted market prices in an active market for identical assets or liabilities. Level 2 inputs are market data, other than Level 1, that are observable either directly or indirectly. Level 2 inputs include quoted market prices for similar assets or liabilities, quoted market prices in an inactive market, and other observable information that can be corroborated by market data. Level 3 inputs are unobservable and corroborated by little or no market data. Except for the bond portfolio, which is required by authoritative accounting guidance to be recorded at fair value in our Balance Sheets, the Company elected not to record any other financial assets or liabilities at fair value on a recurring basis. We recorded an aggregate allowance for losses on our Agape bonds (see Note 3), which totaled $458,000 for both periods ended September 30, 2018 and December 31, 2017. The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring basis: Fair Value Measurement September 30, 2018 Fair Value Level 3 Bond portfolio $15,365,807 $15,365,807 Fair Value Measurement December 31, 2017 Fair Value Level 3 Bond portfolio $ 14,229,755 $ 14,229,755 We determine the fair value of the bond portfolio shown in the table above by comparing it with similar instruments in inactive markets. The analysis reflects the contractual terms of the bonds, which are callable at par by the issuer at any time, and the anticipated cash flows of the bonds, and uses observable and unobservable market-based inputs. Unobservable inputs include our internal credit rating and selection of similar bonds for valuation. The change in Level 3 assets measured at fair value on a recurring basis is summarized as follows: Bond Portfolio Balance at December 31, 2017 $ 14,229,755 Purchases 1,238,052 Proceeds (102,000 ) Balance at September 30, 2018 $ 15,365,807 Real estate held for sale and impaired loans are recorded at fair value on a nonrecurring basis. The fair value of real estate held for sale was based upon the listed sales price less expected selling costs, which is a Level 3 input. The resulting impairment charges were $0 for both the periods ended September 30, 2018 and December 31, 2017. The following table summarizes the Company’s financial instruments that were measured at fair value on a nonrecurring basis: September 30, 2018 Level 1 Level 2 Level 3 Fair Value at Impaired Loans $ — $ — $ 784,602 $ 784,602 Real estate held for resale — — 225,872 225,872 $ — $ — $ 1,010,474 $ 1,010,474 December 31, 2017 Level 1 Level 2 Level 3 Fair Value at December 31, Impaired Loans $ — $ — $ 1,321,500 $ 1,321,500 Real estate held for resale — — 225,872 225,872 $ — $ — $ 1,547,372 $ 1,547,372 The change in Level 3 assets measured at fair value on a nonrecurring basis is summarized as follows: Impaired Loans Real Estate Held for Sale Balance at December 31, 2017 $ 1,321,500 $ 225,872 Dispositions/Proceeds (432,961 ) — Impairment (103,937 ) — Balance at September 30, 2018 $ 784,602 $ 225,872 |
Mortgage Loans Receivable And B
Mortgage Loans Receivable And Bond Portfolio | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Mortgage Loans Receivable And Bond Portfolio | 3. MORTGAGE LOANS RECEIVABLE AND BOND PORTFOLIO At September 30, 2018, the Company had mortgage loans receivable totaling $22,559,478. The loans bear interest ranging from 0% to 10.25% with a weighted average of approximately 8.22% at September 30, 2018. The Company had mortgage loans receivable totaling $24,158,787 that bore interest ranging from 0% to 10.25% with a weighted average of approximately 8.19% at December 31, 2017. The Company has a portfolio of secured church bonds at September 30, 2018 and December 31, 2017, which are carried at fair value. The bonds pay quarterly interest ranging from 3.25% to 9.75%. The aggregate value of secured church bonds equaled approximately $15,842,000 at September 30, 2018 with a weighted average interest rate of 6.82% and approximately $14,688,000 at December 31, 2017 with a weighted average interest rate of 6.82%. These bonds are due at various maturity dates through May 2046. The contractual maturity schedule for mortgage loans receivable and the bond portfolio as of September 30, 2018, is as follows: Mortgage Loans Bond Portfolio October 1, 2018 through September 30, 2019 $ 1,162,842 $ 154,000 October 1, 2019 through December 31, 2019 179,555 59,000 2020 875,857 228,000 2021 756,395 254,000 2022 1,554,461 176,000 Thereafter 18,030,368 14,952,807 22,559,478 15,823,807 Less loan and bond loss other than temporary impairment (1,645,883) (458,000) Less deferred origination income (285,534 ______-__ Totals $ 20,628,061 $ 15,365,807 The Company currently owns $529,000 First Mortgage Bonds and $497,000 Second Mortgage Bonds issued by Agape Assembly Baptist Church located in Orlando, Florida. The total principal amount of First Mortgage Bonds issued by Agape is $7,200,000, and the total principal amount of Second Mortgage Bonds issued is $715,000. Agape defaulted on its payment obligations to bondholders in September 2010. The church subsequently commenced a Chapter 11 bankruptcy reorganization proceeding regarding the property that secures the First Mortgage Bonds in December 2010. In October 2014, a minimum of 80% of the bondholders of Agape agreed to a modification in the terms of their bonds which resulted in the temporary resumption of both principal and interest payments to both the first and second mortgage bond holders. Both the First Mortgage Bonds and Second Mortgage Bonds were modified to a fully amortized fixed rate, quarterly interest payment of 6.25% with a new maturity date of September 2037 for all the issued and outstanding bonds. The Company, along with all other bondholders, has a superior lien over all other creditors. The Company has an aggregate other than temporary impairment of $458,000 for the First and Second Mortgage Bonds at September 30, 2018 and December 31, 2017, which effectively reduces the bonds to the fair value amount management believes will be recovered. The Church subsequently defaulted on their modification agreement in 2016 and no interest payments were made to bondholders during the period ended September 30, 2018. However, the trustee made a distribution to bondholders during 2017 of $18.75 per $1,000 bond as a repayment of principal only, effectively reducing the outstanding balance of each $1,000 bond to approximately $826. The Company restructured one mortgage loan during the nine month period ended September 30, 2018. The restructured loan was a $669,544 first mortgage loan located in Indianapolis, Indiana. The Church was unable to meet its monthly debt obligations. The Company reduced the Church’s monthly mortgage obligation to interest only payments for a period of three years. After the three year period, the Church will resume its regular monthly mortgage payments. The Church accepted the restructured loan terms. The modification had no effect on the Company’s financial statements. |
Secured Investor Certificates
Secured Investor Certificates | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Secured Investor Certificates | 4. SECURED INVESTOR CERTIFICATES Secured investor certificates are collateralized by certain mortgage loan receivables or secured church bonds of approximately the same value as the certificates. The weighted average interest rate on the certificates was 6.43% and 6.45% at September 30, 2018 and December 31, 2017, respectively. Holders of the secured investor certificates may renew certificates at the current rates and terms upon maturity at the Company’s discretion. Renewals upon maturity are considered neither proceeds from nor issuance of secured investor certificates. Renewals totaled approximately $136,000 and $656,000 for the three months ended September 30, 2018 and December 31, 2017, respectively. The secured investor certificates have certain financial and non-financial covenants identified in the respective series’ trust indentures. The estimated maturity schedule for the secured investor certificates at September 30, 2018 is as follows: October 1, 2018 through September 30, 2019 $ 4,259,000 October 1, 2019 through December 31, 2019 1,291,000 2020 4,167,000 2021 2,056,000 2022 952,000 Thereafter 16,495,000 Totals $ 29,220,000 In July 2014, the Company filed a registration statement with the Securities and Exchange Commission to offer $10,000,000 worth of Series D secured investor certificates. The offering was declared effective by the SEC on August 12, 2014. The offering was renewed with an effective date of September 23, 2016. The certificates were offered in multiples of $1,000 with interest rates ranging from 4.00% to 6.50%, subject to changing market rates and maturities from 5 and 7 to 15 years. The certificates are collateralized by certain mortgage loans receivables and church bonds of approximately the same value. At September 30, 2018, approximately 8,234 Series D certificates had been issued and were outstanding for $8,234,000. The offering terminated in August 2017. In September 2017, the Company filed a registration statement with the Securities and Exchange Commission to offer $10,000,000 worth of Series E secured investor certificates. The offering was declared effective by the SEC on November 6, 2017. The certificates are being offered in multiples of $1,000 with interest rates ranging from 4.00% to 6.50%, subject to changing market rates, and maturities from 5 to 15 years. The certificates are collateralized by certain mortgage loan receivables and church bonds of approximately the same value. At September 30, 2018, approximately 2,320 Series E certificates had been issued and were outstanding for $2,320,000. |
Transactions With Affiliates
Transactions With Affiliates | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Transactions With Affiliates | 5. TRANSACTIONS WITH AFFILIATES The Company has an Advisory Agreement with Church Loan Advisors, Inc. (the “Advisor”). The Advisor is responsible for the day-to-day operations of the Company and provides office space and administrative services. The Advisor and the Company are related through common ownership and common management. A majority of the independent board members approve the advisory agreement on an annual basis. The Company paid the Advisor management fees of approximately $242,000 and $162,000 during the nine months ended September 30, 2018 and 2017, respectively. |
Line of Credit
Line of Credit | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Line of Credit | 6. LINE OF CREDIT On April 9, 2018, the Company entered into a Loan and Security agreement (the “Loan Agreement”) with Alerus Financial, N.A., as lender (the “Lender”), and a Revolving Note (the “Note”) evidencing a $4,000,000 revolving loan (the “Revolving Loan”). The Lender agrees to make loans to the Company from time to time and after the date of the loan agreement and the Company may repay and reborrow pursuant to the terms and conditions of the Revolving Loan as long as no borrowing causes that dollar limit to be exceeded and the Company is not otherwise in default on the Revolving Loan. The Revolving Loan is secured by a first priority security interest in substantially all of the Company’s assets other than collateral pledged to secure the Company’s secured investor certificates, both those currently issued and any potentially issued in the future. The Company has not yet borrowed against the line of credit as of September 30, 2018. The maturity date of the Note is April 9, 2019 and the interest rate is the prevailing London Interbank Offering Rate (LIBOR) plus 2.70% adjusted monthly. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Fair Value Of Financial Instruments | 7. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company is required to disclose the fair value information about financial instruments, where it is practicable to estimate that value. Because assumptions used in these valuation techniques are inherently subjective in nature, the estimated fair values cannot always be substantiated by comparison to independent market quotes and, in many cases, the estimated fair values could not necessarily be realized in an immediate sale or settlement of the instrument. The fair value estimates presented herein are based on relevant information available to management as of September 30, 2018 and December 31, 2017, respectively. Management is not aware of any factors that would significantly affect these estimated fair value amounts. As these reporting requirements exclude certain financial instruments and all non-financial instruments, the aggregate fair value amounts presented herein do not represent management’s estimate of the underlying value of the Company. The estimated fair values of the Company’s financial instruments, none of which are held for trading purposes, are as follows: September 30, 2018 December 31, 2017 Carrying Fair Carrying Fair Amount Value Amount Value Cash and equivalents $ 2,675,119 $ 2,675,119 $ 502,490 $ 502,490 Accounts receivable 268,670 268,670 260,785 260,785 Interest receivable 184,218 184,218 176,365 176,365 Mortgage loans receivable 22,559,478 21,943,917 24,158,787 25,353,731 Bond portfolio 15,823,807 15,823,807 14,687,775 14,687,775 Secured investor certificates 29,220,000 36,201,383 27,323,000 34,811,519 The following methods and assumptions were used by the Company to estimate the fair value of each class of financial instrument for which it is practicable to estimate that value: Cash and equivalents Due to their short-term nature, the carrying amount of cash and cash equivalents approximates fair value. Accounts receivable Due to the short term nature, the carrying amount of accounts receivable approximates fair value. Interest receivable Due to the short term nature, the carrying amount of interest receivable approximates fair value. Mortgage loans receivable The fair value of the mortgage loans receivable is currently less than the carrying value as the portfolio is currently yielding less than similar mortgages with similar terms for borrowers with similar credit quality. Bond portfolio We determine the fair value of the bond portfolio shown in the table above by comparing with similar instruments in inactive markets. The analysis reflects the contractual terms of the bonds, which are callable at par by the issuer at any time, and the anticipated cash flows of the bonds and uses observable and unobservable market-based inputs. Unobservable inputs include our internal credit rating and selection of similar bonds for valuation. Secured investor certificates The fair value of the secured investor certificates is currently greater than the carrying value due to higher interest rates than current market rates. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with the instructions for interim statements and, therefore, do not include all information and disclosures necessary for fair presentation of results of operations, financial position, and changes in cash flow in conformity with generally accepted accounting principles in the United States of America. However, in the opinion of management, such statements reflect all adjustments (which include only normal recurring adjustments) necessary for fair presentation of financial position, results of operations, and cash flows for the period presented. The unaudited financial statements of the Company should be read in conjunction with the December 31, 2017 audited financial statements included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission for the year ended December 31, 2017. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. |
Nature of Business | Nature of Business American Church Mortgage Company, a Minnesota corporation, was incorporated on May 27, 1994. The Company was organized to engage primarily in the business of making mortgage loans to churches and other nonprofit religious organizations throughout the United States, on terms established for individual organizations. |
Accounting Estimates | Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with accounting principles generally accepted in the United States of America. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. The most sensitive estimates relate to the realizability of the mortgage loans receivable, the valuation of the bond portfolio and real estate held for sale. It is at least reasonably possible that these estimates could change in the near term and that the effect of the change, if any, may be material to the financial statements. |
Concentration of Credit Risk | Concentration of Credit Risk The Company's loans have been granted to churches and other non-profit religious organizations. The ability of the Company’s debtors to honor their contracts is dependent on member contributions and the involvement in the church or organization of its senior pastor. |
Cash and Equivalents | Cash and Equivalents The Company considers all highly liquid debt instruments purchased with maturities of three months or less to be cash equivalents. The Company maintains accounts primarily at two financial institutions. At times throughout the year, the Company’s cash and equivalents balances may exceed amounts insured by the Federal Deposit Insurance Corporation. Cash in money market funds is not federally insured. The Company had $628,048 and $15,428 in money market fund accounts at September 30, 2018 and December 31, 2017, respectively. The Company has not experienced any losses in such accounts. |
Bond Portfolio | Bond Portfolio The Company accounts for the bond portfolio under the Accounting Standards Codification (ASC) 320. The Company classifies the bond portfolio as “available-for-sale” and measures the portfolio at fair value. While the bonds are generally held until contractual maturity, the Company classifies them as available-for-sale as the bonds may be used to repay secured investor certificates or provide additional liquidity or working capital in the short term. The Company has classified $154,000 and $139,000 in bonds as current assets as of September 30, 2018 and December 31, 2017, respectively, based on management’s estimates for liquidity requirements and contractual maturities of certain bonds maturing in 2018 and 2017, respectively. |
Allowance for Mortgage Loans Receivable | Allowance for Mortgage Loans Receivable The Company records mortgage loans receivable at estimated net realizable value, which is the unpaid principal balances of the mortgage loans receivable, less the allowance for mortgage loans. The Company’s loan loss policy provides an allowance for estimated uncollectible loans based on an evaluation of the current status of the loan portfolio. This policy provides for principal amounts outstanding on a particular loan if cumulative interruptions occur in the normal payment schedule of a loan; therefore, the Company recognizes a provision for losses and an allowance for the outstanding principal amount of a loan in the Company’s portfolio if the amount is in doubt of collection. Additionally, no additional interest income is recognized on impaired loans that are declared to be in default and are in the foreclosure process. At September 30, 2018, the Company provided $1,645,883 for eighteen A summary of transactions in the allowance for credit losses for the nine months ended September 30, 2018 is as follows: Balance at December 31, 2017 $ 1,428,155 Provision for additional losses 217,728 Balance at September 30, 2018 $ 1,645,883 The total impaired loans, which are loans that are in the foreclosure process or are declared to be in default, were approximately $1,611,000 and $2,044,000 at September 30, 2018 and December 31, 2017, respectively, which the Company believes are adequately secured by the underlying collateral and the allowance for mortgage loans. Approximately $827,000 and $723,000 of the Company’s allowance for mortgage loans was allocated to impaired loans at September 30, 2018 and December 31, 2017, respectively. The Company will declare a loan to be in default and will place the loan on non-accrual status when the following thresholds have been met: (i) the borrower has missed three consecutive mortgage payments; (ii) the borrower has not communicated to the Company any legitimate reason for delinquency in its payments to the Company and has not arranged for the re-continuance of payments; (iii) lines of communication to the borrower have broken down such that any reasonable prospect of rehabilitating the loan and return of regular payments is gone. The Company’s policies on payments received and interest accrued on non-accrual loans are as follows: (i) The Company will accept payments on loans that are currently on non-accrual status when a borrower has communicated to us that they intend to meet their mortgage obligations. A payment made on a non-accrual loan is considered a good faith deposit as to the intent to resume their mortgage payment obligation. This good faith deposit is credited back to interest first then principal as stated in the mortgage loan documentation. (ii) A letter outlining the re-payment terms or the restructure terms (if any) of the loan is provided to the borrower. This letter will be signed by the Senior Pastor and all board members of the borrower. This letter resumes the obligation to make payments on non-accrual loans. (iii) The borrower must meet all its payment obligations for the next 120 days without interruption in order to be removed from non-accrual status. When a loan is declared in default according to the Company’s policy or deemed to be doubtful of collection, the loan committee of the Advisor to the Company will direct the staff to charge-off the uncollectable receivables. Loans totaling approximately $3,998,000 and $3,364,000 exceeded 90 days past due but continued to accrue interest at September 30, 2018 and December 31, 2017, respectively. The Company believes that the loans are well secured, not deemed to be in default and the Company is actively pursuing collection of past due payments. |
Real Estate Held for Sale | Real Estate Held for Sale As of September 30, 2018, the Company had one property located in Pine Bluff, Arkansas acquired via deed in lieu of foreclosure, with an outstanding loan balance totaling $225,872. The Church is still occupying this property and paying rent while trying to either sell the building or obtain refinancing. The Company records real estate held for sale at the estimated fair value, which is net of the expected expenses related to the sale of the real estate. The fair value of our real estate held for sale, which represents the carrying value, is $225,872 both at September 30, 2018 and December 31, 2017. |
Carrying Value of Long-Lived Assets | Carrying Value of Long-Lived Assets The Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that the carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed of significantly before the end of the estimated useful life. Recoverability is assessed based on the carrying amount of the asset compared to the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An allowance for losses is recognized when the carrying amount is deemed not recoverable and exceeds fair value as determined through various valuation techniques including, but not limited to, discounted cash flow models, quoted market values, and third party independent appraisals. |
Revenue Recognition | Revenue Recognition Interest income on mortgage loans receivable and the bond portfolio is recognized as earned. Other income included with interest represents cash received for loan origination fees, which are recognized over the life of the loan as an adjustment to the yield on the loan. As of January 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers- Topic 606 The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. The main types of revenue contracts included in non-interest income within the consolidated statements of operations are as follows: |
Gain/Losses on Sale of OREO | Gain/Losses on Sale of OREO The Company records a gain or loss from the sale of OREO 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 OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determine the gain or loss on the sale, the Company adjusts the transaction prices and related gain (loss) on sale if a significant financing component is present. |
Deferred Financing Costs | Deferred Financing Costs The Company defers the costs related to obtaining financing. These costs are amortized over the life of the financing using the straight line method, which approximates the effective interest method. |
Income (Loss) Per Common Share | Income (Loss) Per Common Share No adjustments were made to income for the purpose of calculating income (loss) per share, as there were no potential dilutive shares outstanding. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June, 2016 the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 is intended to provide financial statement users with more decision-useful information about the excepted credit losses on financial instruments and other commitments to extend credit. For public entities, ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has not yet fully evaluated the potential effects of adopting ASU 2016-13 on the Company’s results of operations, financial position or cash flows. |
Recent Accounting Pronouncements-Adopted | Recent Accounting Pronouncements-Adopted In the first quarter of 2018, the Company adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606). |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Allowance for Credit Losses | Balance at December 31, 2017 $ 1,428,155 Provision for additional losses 217,728 Balance at September 30, 2018 $ 1,645,883 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement Bond Portfolio | Fair Value Measurement September 30, 2018 Fair Value Level 3 Bond portfolio $15,365,807 $15,365,807 Fair Value Measurement December 31, 2017 Fair Value Level 3 Bond portfolio $ 14,229,755 $ 14,229,755 |
Fair Value Bond Portfolio | Bond Portfolio Balance at December 31, 2017 $ 14,229,755 Purchases 1,238,052 Proceeds (102,000 ) Balance at September 30, 2018 $ 15,365,807 |
Fair Value Impaired Loans and Real Estate Held For Sale | September 30, 2018 Level 1 Level 2 Level 3 Fair Value at Impaired Loans $ — $ — $ 784,602 $ 784,602 Real estate held for resale — — 225,872 225,872 $ — $ — $ 1,010,474 $ 1,010,474 December 31, 2017 Level 1 Level 2 Level 3 Fair Value at December 31, Impaired Loans $ — $ — $ 1,321,500 $ 1,321,500 Real estate held for resale — — 225,872 225,872 $ — $ — $ 1,547,372 $ 1,547,372 |
Change in Fair Value Impaired Loans & Real Estate Held for Sale | Impaired Loans Real Estate Held for Sale Balance at December 31, 2017 $ 1,321,500 $ 225,872 Dispositions/Proceeds (432,961 ) — Impairment (103,937 ) — Balance at September 30, 2018 $ 784,602 $ 225,872 |
Mortgage Loans Receivable And_2
Mortgage Loans Receivable And Bond Portfolio (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Mortgage Loans Receivable And Bond Portfolio | Mortgage Loans Bond Portfolio October 1, 2018 through September 30, 2019 $ 1,162,842 $ 154,000 October 1, 2019 through December 31, 2019 179,555 59,000 2020 875,857 228,000 2021 756,395 254,000 2022 1,554,461 176,000 Thereafter 18,030,368 14,952,807 22,559,478 15,823,807 Less loan and bond loss other than temporary impairment (1,645,883) (458,000) Less deferred origination income (285,534 ______-__ Totals $ 20,628,061 $ 15,365,807 |
Secured Investor Certificates (
Secured Investor Certificates (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Maturity Schedule Secured Investor Certificates | October 1, 2018 through September 30, 2019 $ 4,259,000 October 1, 2019 through December 31, 2019 1,291,000 2020 4,167,000 2021 2,056,000 2022 952,000 Thereafter 16,495,000 Totals $ 29,220,000 |
Fair Value Of Financial Instr_2
Fair Value Of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Fair Value and Carrying Value Of Financial Instruments | September 30, 2018 December 31, 2017 Carrying Fair Carrying Fair Amount Value Amount Value Cash and equivalents $ 2,675,119 $ 2,675,119 $ 502,490 $ 502,490 Accounts receivable 268,670 268,670 260,785 260,785 Interest receivable 184,218 184,218 176,365 176,365 Mortgage loans receivable 22,559,478 21,943,917 24,158,787 25,353,731 Bond portfolio 15,823,807 15,823,807 14,687,775 14,687,775 Secured investor certificates 29,220,000 36,201,383 27,323,000 34,811,519 |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies - Allowance for Credit Losses (Details) | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Accounting Policies [Abstract] | |
Balance at December 31, 2017 | $ 1,428,155 |
Provision for additional losses | 156,734 |
Balance at September 30, 2018 | $ 1,584,889 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurement Bond Portfolio (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Gross Bond portfolio | $ 15,365,807 | $ 14,229,755 |
Impaired Loans | ||
Gross Bond portfolio | $ 15,365,807 | $ 14,229,755 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value Bond Portfolio (Details) | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Fair Value Disclosures [Abstract] | |
Balance at December 31, 2017 | $ 14,229,755 |
Bond Purchases | 1,238,052 |
Bond Proceeds | (102,000) |
Balance at September 30, 2018 | $ 15,365,807 |
Fair Value Measurements - Fai_3
Fair Value Measurements - Fair Value Impaired Loans and Real Estate Held For Sale (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Impaired Loans | $ 784,602 | $ 1,321,500 |
Real estate held for resale | 225,872 | 225,872 |
Total Fair Value Measurement | 1,010,474 | 1,547,372 |
Fair Value Impaired Loans & Real Estate Held For Sale Level 1 | ||
Impaired Loans | ||
Real estate held for resale | ||
Total Fair Value Measurement | ||
Fair Value Impaired Loans & Real Estate Held For Sale Level 2 | ||
Impaired Loans | ||
Real estate held for resale | ||
Total Fair Value Measurement | ||
Impaired Loans | ||
Impaired Loans | 784,602 | 1,321,500 |
Real estate held for resale | 225,872 | 225,872 |
Total Fair Value Measurement | $ 1,010,474 | $ 1,547,372 |
Fair Value Measurements - Chang
Fair Value Measurements - Change in Fair Value Impaired Loans & Real Estate Held for Sale (Details) | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Impaired Loans | |
Balance at December 31, 2017 | $ 1,321,500 |
Dispositions/Proceeds | (432,961) |
Impairment | (103,937) |
Balance at September 30, 2018 | 784,602 |
Real Estate Held For Sale | |
Balance at December 31, 2017 | 225,872 |
Dispositions/Proceeds | |
Impairment | |
Balance at September 30, 2018 | $ 225,872 |
Mortgage Loans Receivable And_3
Mortgage Loans Receivable And Bond Portfolio - Mortgage Loans Receivable And Bond Portfolio (Details) | Sep. 30, 2018USD ($) |
Mortgage Loans | |
October 1, 2018 through September 30, 2019 | $ 1,162,842 |
October 1, 2019 through December 31, 2019 | 179,555 |
2,020 | 875,857 |
2,021 | 756,395 |
2,022 | 1,554,461 |
Thereafter | 18,030,368 |
Subtotal | 22,559,478 |
Less loan and bond loss other than temporary impairment | (1,645,883) |
Less deferred origination income | (285,534) |
Totals | 20,628,061 |
Bond Portfolio | |
October 1, 2018 through September 30, 2019 | 154,000 |
October 1, 2019 through December 31, 2019 | 59,000 |
2,020 | 228,000 |
2,021 | 254,000 |
2,022 | 176,000 |
Thereafter | 14,952,807 |
Subtotal | 15,823,807 |
Less loan and bond loss other than temporary impairment | (458,000) |
Less deferred origination income | |
Totals | $ 15,365,807 |
Secured Investor Certificates -
Secured Investor Certificates - Maturity Schedule Secured Investor Certificates (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 126 Months Ended | |||
Dec. 31, 2019 | Sep. 30, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2033 | |
Secured Investor Certificate Maturity Schedule | $ 29,220,000 | ||||||
Secured Investor Certificates | |||||||
Secured Investor Certificate Maturity Schedule | $ 1,291,000 | $ 952,000 | $ 2,056,000 | $ 4,167,000 | $ 4,259,000 | $ 16,945,000 |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies (Details Narrative) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Money Market Funds | $ 628,048 | $ 15,428 |
Bond Portfolio | 154,000 | 139,000 |
Allowance for Mortgage Loans Receivable | 1,645,883 | 1,428,000 |
Loans Exceeding 90 Days Past Due | 3,998,000 | 3,364,000 |
Real Estate Held for Sale Carrying Value | 225,872 | 225,872 |
Allowance Allocated to Impaired Loans | 827,000 | 723,000 |
Total Loans On Nonaccrual Status | 1,611,000 | 2,044,000 |
Loans In Default | 1,271,000 | 1,403,000 |
Loans In Foreclosure | 773,000 | 641,000 |
Impaired Loans | $ 827,000 | $ 723,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details Narrative) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Loan Loss Reserve Church Bonds | $ 458,000 | $ 458,000 |
Real Estate Impairement Charge |
Mortgage Loans Receivable And_4
Mortgage Loans Receivable And Bond Portfolio (Details Narrative) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Notes to Financial Statements | ||
Mortgage Loans Receivable Gross | $ 22,559,478 | $ 24,158,787 |
Church Bonds Owned Gross | 15,842,000 | 14,688,000 |
Bond Reserve Fund | 458,000 | 458,000 |
Agape First Mortgage Bonds | 429,000 | 429,000 |
Agape Second Mortgage Bonds | 497,000 | 497,000 |
Agape First Mortgage Bonds Gross | 7,200,000 | 7,200,000 |
Agape Second Mortgage Bonds Gross | 715,000 | 715,000 |
Agape Distribution to Bondholders | 19 | 19 |
Principal Balance Agape Bonds | $ 826 | $ 826 |
Secured Investor Certificates_2
Secured Investor Certificates (Details Narrative) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Notes to Financial Statements | ||
Renewals Secured Investor Certificates | $ 136,000 | $ 656,000 |
Secured Investor Certificatee Offering | 10,000,000 | |
Certificate Offering Minimal Investment | 1,000 | |
Total Secured Investor Certificates Issued Series D | 8,234 | |
Outstanding Debt Secured Investor Certificates Issued Series D | 8,234,000 | |
Total Secured Investor Certificates Series E | 2,320 | |
Outstanding Debt Secured Investor Certificates Issued Series E | $ 2,320,000 |
Transactions With Affiliates (D
Transactions With Affiliates (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2017 | |
Notes to Financial Statements | ||
Advisor Managment Fees | $ 242,000 | $ 162,000 |
Line of Credit (Details Narrati
Line of Credit (Details Narrative) - USD ($) | Sep. 30, 2018 | Apr. 09, 2018 |
Notes to Financial Statements | ||
Line Of Credit | $ 4,000,000 | $ 4,000,000 |
Fair Value Of Financial Instr_3
Fair Value Of Financial Instruments - Fair Value and Carrying Value Of Financial Instruments (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 30, 2017 |
Interest receivable | $ 184,218 | $ 176,365 | |
Fair Value | |||
Cash and equivalents | 2,675,119 | 502,490 | |
Accounts receivable | 268,670 | 260,785 | |
Interest receivable | 184,218 | 176,365 | |
Mortgage loans receivable | 21,943,917 | 25,353,731 | |
Bond portfolio | 15,823,807 | 14,687,775 | |
Secured investor certificates | 36,201,383 | $ 34,811,519 | |
Carrying Amount | |||
Cash and equivalents | 2,675,119 | $ 502,490 | |
Accounts receivable | 268,670 | 260,785 | |
Interest receivable | 184,218 | 176,365 | |
Mortgage loans receivable | 22,559,478 | 24,158,787 | |
Bond portfolio | 15,823,807 | 14,687,775 | |
Secured investor certificates | $ 29,220,000 | $ 27,323,000 |